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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 8, 2001
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PATTERSON-UTI ENERGY, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-22664 75-2504748
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
4510 LAMESA HIGHWAY, SNYDER, TEXAS 79549
(Address of principal executive offices) Zip Code
915-573-1104
(Registrant's telephone number, including area code)
NO CHANGE
(Former name or former address, if changed since last report.)
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
a. Financial statements of business acquired.
The required financial statements of the business acquired are
incorporated by reference from the Registrant's Joint Proxy Statement/Prospectus
dated March 14, 2001.
b. Pro forma financial information.
The required pro forma financial information as of and for the year
ended December 31, 2000 is incorporated by reference from the Registrant's Joint
Proxy Statement/Prospectus dated March 14, 2001.
Included herein are selected unaudited pro forma combined financial
statements as of and for the three month period ended March 31, 2001, to give
effect to the merger of Patterson Energy, Inc. ("Patterson") and UTI Energy
Corp. ("UTI") using the pooling of interests method of accounting at the
exchange ratio of one share of Patterson common stock for each share of UTI
common stock. The unaudited pro forma balance sheet data included in the tables
below are presented as though the merger was effective as of March 31, 2001. The
unaudited pro forma statements of income data included in the tables below are
presented as though the merger was effective as of January 1, 2000. The
unaudited pro forma combined statements of income exclude charges directly
attributable to the merger (estimated at $10 million), substantially all of
which were charged to operations in the quarter ended June 30, 2001.
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PATTERSON-UTI ENERGY, INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
March 31, 2001
(Unaudited, in thousands)
Pro Forma
Patterson UTI -------------------------------
Energy, Inc. Energy Corp. Adjustments Combined
------------ ------------ ------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 60,514 $ 5,885 $ -- $ 66,399
Accounts receivable:
Trade 96,066 68,582 (1,947)(a) 162,701
Oil and natural gas sales 1,482 -- -- 1,482
Inventory 11,861 783 -- 12,644
Deferred income taxes 6,346 2,142 -- 8,488
Other 3,930 4,875 1,479(a) 10,284
------------ ------------ ------------ ------------
Total current assets 180,199 82,267 (468) 261,998
Property and equipment, at cost, net 256,878 269,728 -- 526,606
Intangible assets, net 37,995 17,351 -- 55,346
Other 4,432 1,446 -- 5,878
------------ ------------ ------------ ------------
Total assets $ 479,504 $ 370,792 $ (468) $ 849,828
============ ============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of notes payable $ 5,697 $ -- $ -- $ 5,697
Accounts payable:
Trade 34,264 47,883 -- 82,147
Revenue distribution 3,624 -- -- 3,624
Other 8,720 -- -- 8,720
Accrued federal income taxes payable 4,514 -- 10(a) 4,524
Accrued expenses 14,931 21,829 -- 36,760
------------ ------------ ------------ ------------
Total current liabilities 71,750 69,712 10 141,472
Deferred income taxes, net 42,258 41,672 -- 83,930
Other 735 438 -- 1,173
Notes payable, net of current maturities 17,499 64,000 -- 81,499
------------ ------------ ------------ ------------
Total liabilities 132,242 175,822 10 308,074
------------ ------------ ------------ ------------
Stockholders' equity:
Preferred stock -- -- -- --
Common stock 384 38 350(b) 772
Additional paid-in capital 269,365 153,931 (350)(b) 422,946
Retained earnings 79,163 52,598 (478)(a) 131,283
Equity adjustments from foreign currency translation -- (1,592) -- (1,592)
Treasury stock (1,650) (10,005) -- (11,655)
------------ ------------ ------------ ------------
Total stockholders' equity 347,262 194,970 (478) 541,754
------------ ------------ ------------ ------------
Total liabilities & stockholders' equity $ 479,504 $ 370,792 $ (468) $ 849,828
============ ============ ============ ============
(See accompanying notes to unaudited pro forma combined financial statements.)
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PATTERSON-UTI ENERGY, INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME
For the Quarter Ended March 31, 2001
(Unaudited, in thousands except per share data)
PRO FORMA
PATTERSON UTI -------------------------------
ENERGY, INC. ENERGY CORP. ADJUSTMENTS COMBINED
------------ ------------ ------------ ------------
Operating revenues:
Drilling $ 104,803 $ 100,996 $ 260(a) $ 206,059
Drilling and completion fluids 19,670 -- -- 19,670
Pressure pumping -- 7,337 -- 7,337
Oil and gas sales 4,910 -- -- 4,910
Well operation fees 553 -- -- 553
Other -- 57 -- 57
------------ ------------ ------------ ------------
129,936 108,390 260 238,586
------------ ------------ ------------ ------------
Operating costs and expenses:
Direct operating expenses 80,848 70,892 233(a) 151,973
Exploration cost, dry holes and abandonments 212 -- -- 212
Depreciation, depletion and amortization 11,341 7,979 -- 19,320
General and administrative 4,846 3,205 -- 8,051
------------ ------------ ------------ ------------
97,247 82,076 233 179,556
------------ ------------ ------------ ------------
Operating income 32,689 26,314 27 59,030
------------ ------------ ------------ ------------
Other income (expense):
Net gain on sale of assets 13 117 -- 130
Interest income 796 55 -- 851
Interest expense (567) (963) -- (1,530)
Other 35 33 -- 68
------------ ------------ ------------ ------------
277 (758) -- (481)
------------ ------------ ------------ ------------
Income before income taxes 32,966 25,556 27 58,549
Income tax expense 12,422 9,506 10(a) 21,938
------------ ------------ ------------ ------------
Net income $ 20,544 $ 16,050 $ 17 $ 36,611
============ ============ ============ ============
Net income per common share:
Basic $ 0.54 $ 0.43 $ 0.48
============ ============ ============
Diluted $ 0.52 $ 0.41 $ 0.46
============ ============ ============
Weighted average number of common shares outstanding:
Basic 38,295 37,599 -- 75,894
============ ============ ============ ============
Diluted 39,514 39,520 24(c) 79,058
============ ============ ============ ============
(See accompanying notes to unaudited pro forma combined financial statements.)
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PATTERSON-UTI ENERGY, INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF INCOME
For the Quarter Ended March 31, 2000
(Unaudited, in thousands except per share data)
PRO FORMA
PATTERSON UTI -------------------------------
ENERGY, INC. ENERGY CORP. ADJUSTMENTS COMBINED
------------ ------------ ------------ ------------
Operating revenues:
Drilling $ 51,157 $ 50,044 $ (248)(a) $ 100,953
Drilling and completion fluids 4,365 -- -- 4,365
Pressure pumping -- 4,180 -- 4,180
Oil and gas sales 2,484 -- -- 2,484
Well operation fees 560 -- -- 560
Other -- 49 -- 49
------------ ------------ ------------ ------------
58,566 54,273 (248) 112,591
------------ ------------ ------------ ------------
Operating costs and expenses:
Direct operating expenses 46,014 43,439 (124)(a) 89,329
Exploration cost, dry holes and abandonments 168 -- -- 168
Depreciation, depletion and amortization 7,717 6,631 -- 14,348
General and administrative 2,196 2,781 -- 4,977
------------ ------------ ------------ ------------
56,095 52,851 (124) 108,822
------------ ------------ ------------ ------------
Operating income 2,471 1,422 (124) 3,769
------------ ------------ ------------ ------------
Other income (expense):
Net gain on sale of assets 43 95 -- 138
Interest income 113 145 -- 258
Interest expense (1,193) (1,208) -- (2,401)
Other (20) 36 -- 16
------------ ------------ ------------ ------------
(1,057) (932) -- (1,989)
------------ ------------ ------------ ------------
Income before income taxes 1,414 490 (124) 1,780
Income tax expense (benefit) 503 186 (47)(a) 642
------------ ------------ ------------ ------------
Net income $ 911 $ 304 $ (77) $ 1,138
============ ============ ============ ============
Net income per common share:
Basic $ 0.03 $ 0.01 $ 0.02
============ ============ ============
Diluted $ 0.03 $ 0.01 $ 0.02
============ ============ ============
Weighted average number of common shares outstanding:
Basic 32,553 36,116 -- 68,669
============ ============ ============ ============
Diluted 33,972 38,434 309(c) 72,715
============ ============ ============ ============
(See accompanying notes to unaudited pro forma combined financial statements.)
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PATTERSON-UTI ENERGY, INC
NOTES TO UNAUDITED PRO FORMA
COMBINED FINANCIAL STATEMENTS
1. UNAUDITED PRO FORMA FINANCIAL STATEMENTS
The accompanying unaudited pro forma combined financial statements have
been prepared using the pooling-of-interests method of accounting to present the
merger between Patterson and UTI. The basis of the unaudited pro forma combined
balance sheet reflects the conversion of each outstanding share of UTI common
stock into one share of Patterson common stock (an exchange ratio of 1:1). The
unaudited pro forma combined statements of income reflect the conversion of the
historical number of shares of UTI common stock outstanding used in computing
earnings per share into Patterson common stock using the exchange ratio of 1:1.
The merger agreement obligates Patterson to assume UTI stock options outstanding
under UTI stock option plans in effect on the date of the merger agreement and
also to assume UTI warrants outstanding at that time. Common stock equivalents
have been considered in the net income per common share calculation for the
three months ended March 31, 2001.
2. PERIODS PRESENTED
The unaudited pro forma combined financial statements were prepared
using the consolidated financial statements of both Patterson and UTI. The
unaudited pro forma combined balance sheet assumes the merger had been
consummated on March 31, 2001. The unaudited pro forma combined statements of
income for the three month period ended March 31, 2001 and 2000 assumes that the
merger had been consummated on January 1, 2000.
3. PRO FORMA ADJUSTMENTS
The following adjustments were made to conform the accounting methods
of Patterson and UTI.
a. To adjust for certain differences between the two companies'
relative methods of accounting for the recognition of revenue under turnkey
drilling contact arrangements. Patterson applies the completed contract method
to turnkey drilling contracts which requires revenue and costs associated with
drilling the well to be deferred until drilling is complete. UTI accounts for
its turnkey arrangements using the percentage-of-completion method in which
revenue is recognized as costs are incurred relative to the expected total cost
of drilling the well.
b. To adjust for the difference in the par value per share for the
common stock issued upon consummation of the merger. Patterson's par value of
common stock is $0.01 per share and UTI's par value is $0.001 per share.
c. To adjust diluted shares outstanding using Patterson's average
market price for the respective three months ended March 31, 2001 and 2000.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PATTERSON-UTI ENERGY, INC.
Date: July 23, 2001 By: /s/ Jonathan D. Nelson
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Jonathan D. Nelson
Vice President-Finance,
Chief Financial Officer
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