8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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) February 26, 2008

PARKER DRILLING COMPANY

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

1-7573	73-0618660
(Commission File Number)	(IRS Employer Identification No.)

1401 Enclave Parkway, Suite 600, Houston, Texas	77077
(Address of Principal Executive Offices)	(Zip Code)

(281) 406-2000

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

     On February 26, 2008, Parker Drilling Company (the “Registrant”) issued a press release announcing results of operations for the 4th quarter and full-year 2007.

     A copy of this press release is attached as Exhibit 99 to this Report on Form 8-K. This information is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

     (d)      Exhibits.

     The following exhibit is furnished herewith:

     99      Press release dated February 26, 2008, issued by the Company

SIGNATURES

     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.

	Parker Drilling Company
Date:   February 26, 2008	By:	/s/ W. Kirk Brassfield
		W. Kirk Brassfield
		Senior Vice President and Chief Financial Officer

2

Index to Exhibits

99 Press release dated February 26, 2008 issued by the Company.

3

EX-99

Exhibit 99

FOR IMMEDIATE RELEASE	Investor Contact:       David Tucker 281-406-2370
February 26, 2008

Parker Drilling Reports Company-Record Results for 2007
EBITDA Up 28% on 12% Revenue Growth

HOUSTON, February 26, 2008 — Parker Drilling Company (NYSE: PKD), a global drilling contractor and service provider, today reported strong financial and operating results for the three and twelve months ended December 31, 2007. Highlights for 2007 include:

• Record company revenues of $654.6 million, a 12 percent increase over the prior year;

• Record earnings before interest, taxes, depreciation and amortization (EBITDA) of $261.8 million, a 28 percent increase over the prior year;

• Record net income of $104.1 million, a 28 percent increase over the prior year;

• Record EBITDA for U.S. barge rig operations of $128.7 million, a 23 percent increase over 2006;

• Record EBITDA for Quail Tools of $83.7 million for the year, an 11 percent increase over 2006, and record quarterly EBITDA of $25.0 million;

• Fourth quarter 2007 international land rig utilization of 83 percent, nearly double the 46 percent in the fourth quarter last year; and

• A company-best safety mark of 0.81 Total Recordable Incident Rate (TRIR) for 2007, below last year's record 0.86 TRIR. TRIR is a workplace safety indicator standard used in the drilling industry.

Robert L. Parker Jr., chairman and chief executive officer of Parker Drilling, said: "Parker delivered another solid quarter and outstanding results for the year 2007, our fifth consecutive year of rising revenues, net income and EBITDA, driven by strong performances across our diverse businesses of contract drilling, project management and rental tool services. Our ability to anticipate the geographic and technological needs of our customers continues to be a key contributing factor in our success, and will be the principal driver of our long-term strategies.";

For the year ended December 31, 2007, Parker reported revenues of $654.6 million and net income of $104.1 million or $0.94 per diluted share. This compares to revenues of $586.4 million and net income of $81.0 million or $0.75 per diluted share for the year ended December 31, 2006. Non-routine items in 2007 resulted in a net benefit of $9.1 million or $0.08 per diluted share and included after–tax gain of $0.07 per diluted share from the sale of two workover barge rigs in January, a non-cash FIN 48 tax benefit of $0.18 per diluted share related to the Kazakhstan tax payment in December, a $0.16 per diluted share reserve relating to the joint venture operations in Saudi Arabia and after-tax charges of $0.01 per diluted share for debt extinguishment and other items. Net income for 2006 included income from non-routine items of $0.14 per diluted share. The details of the non-routine items for the year and the quarter

are available on Parker's website and can be viewed or downloaded by going to "Investor Relations" and then to "Reconciliation of Non-Routine Items".

For the year ended December 31, 2007 total EBITDA was $261.8 million, a 28 percent increase over the $205.0 million reported for 2006. The details of the EBITDA calculation, a non-GAAP financial measure, for the current and prior periods are defined and reconciled later in this press release to their most directly comparable GAAP financial measure.

Capital expenditures for the year ended December 31, 2007 totaled $242.1 million. The Company's cash and cash equivalents totaled $60.1 million and total debt was $373.7 million at December 31, 2007.

Fourth Quarter Earnings and Financial Review

For the three months ended December 31, 2007, Parker reported earnings of $34.6 million, or $0.31 per diluted share, on revenues of $180.8 million. This compares to revenues of $146.3 million and net income of $37.2 million or $0.34 per diluted share for the fourth quarter of 2006. Net income in the fourth quarter 2007 included a loss of $8.4 million or $0.07 per diluted share related to the financial results from operations of the Saudi Arabia joint venture. It also included net non-routine income of $0.08 per diluted share or $8.6 million, consisting of a $17.6 million reserve relating to the joint venture operations in Saudi Arabia and a $25.6 million FIN 48 tax benefit. Net income in the fourth quarter of 2006 included net non-routine income of $0.12 per diluted share or $12.8 million, of which $12.6 million was non-cash deferred taxes.

EBITDA was $69.7 million for the fourth quarter of 2007, 35 percent higher than the $51.7 million reported in the fourth quarter of 2006. Higher utilization and dayrates resulted in a 91 percent EBITDA improvement for international operations. Quail Tools, Parker's drilling and production rental tools subsidiary, achieved record EBITDA of $25.0 million, which exceeded the record set in the third quarter of 2007 by 20 percent. Average utilization for barge rigs drilling in the Gulf of Mexico transition zone for the fourth quarter 2007 of 83 percent remained unchanged from the third quarter 2007 and was a substantial increase from the 68 percent reported for the fourth quarter 2006. Current barge rig utilization is 81 percent, as an intermediate barge rig entered the shipyard in December for modification and upgrades. The Company's deep drilling barge dayrates in the Gulf of Mexico averaged $43,900 per day for the fourth quarter 2007, down nine percent from the third quarter. (Average dayrates for each classification of barge by quarter are available on Parker's website and can be viewed or downloaded by going to "Investor Relations" and then to "Dayrates — GOM.")

The average utilization of international land rigs for the fourth quarter 2007 increased to 83 percent, up from the 75 percent reported for the third quarter 2007 and nearly doubling the 46 percent in the fourth quarter 2006. Current international utilization is 79 percent.

As previously disclosed in our periodic filings, the joint venture operations in Saudi Arabia have experienced delays and unanticipated costs. Due to these issues, contractual deadlines regarding the commencement of drilling operations for the rigs have not been met.  In addition, the joint venture has incurred and continues to incur significant capital costs and equipment rental fees to expedite commissioning and continued operation of the rigs and is in discussions with its customer, Saudi Aramco, to resolve the timing and cost issues associated with the project.

Kazakhstan Tax Update

Parker's Kazakhstan subsidiary received notice yesterday of a decision from the Atyrau Economic Court canceling the previous assessment of approximately $33 million of interest dating back to 2000 and requiring a recalculation of the interest assessment from October 12, 2005, through December 12, 2007, the date the principal amount of the tax was paid.  Although the subsidiary believes that there is factual and legal support for this decision, it is anticipated that the Ministry of Finance will appeal this decision.

Summary

Parker continued, "We continue to realize the substantial benefits of repositioning our international land fleet to long-term contracts with strong margins in markets with long-term visibility for growth. Demand in international land markets is solid, and we expect continued strength from this business, considering the fourth quarter announcement of new contracts in Mexico and Kazakhstan.

"Quail Tools continued its outstanding performance, as fourth quarter EBITDA significantly exceeded third quarter's record results. Quail is reaping substantial benefits from the increasing deepwater activity in the Gulf of Mexico, and is also seeing an upswing in contributions from its Williston Basin and Barnett Shale markets. We continue to remain confident in the strength of this segment.

"Our U.S. barge rig segment completed the fourth quarter of 2007 with strong results. In the near term, we expect our U.S. barge segment to remain active. Deep barge dayrates have leveled off and 90 percent of the deep barge fleet is committed through the first quarter. We expect our intermediate barge rig segment to experience some weakness in the first half of 2008.

As we enter 2008, we will continue to lead the industry in innovation with our new rig designs, will push our operational performance to new heights in efficiency and safety, and will grow in accordance with our disciplined strategic plan. This constant evolution of our high-performance drilling solutions is the hallmark of Parker Drilling's ability to anticipate the needs of our customers around the world. I am confident that this level of performance will result in strong returns from across our operating segments."

Parker Drilling has scheduled a conference call at 9 a.m. CST (10 a.m. EST) on Tuesday, Feb. 26, 2008 to discuss fourth quarter and year-end 2007 results. Those interested in participating in the call may dial

in at 303-262-2075. The conference call replay can be accessed from Feb. 26 through March 4 by dialing (800) 405-2236 and using the access code 11107527#. Alternatively, the call can be accessed live through the investor relations section of the Company's website at http://www.parkerdrilling.com and will be archived on the site for 12 months.

This release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of the Securities Acts. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including earnings per share guidance, the outlook for rig utilization and dayrates, general industry conditions including demand for drilling and customer spending, competitive advantages including cost effective integrated solutions, future technological innovation, future operating results of the Company's rigs and rental tool operations, capital expenditures, expansion and growth opportunities, asset sales, successful negotiation of contracts, strengthening of financial position, increase in market share and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this release are based on reasonable assumptions, actual results may differ materially from those expressed or implied in the forward-looking statements. For a detailed discussion of risk factors that could cause actual results to differ materially from the Company's expectations, please refer to the Company's reports filed with the SEC, and in particular, the report on Form 10-K for the year ended December 31, 2006. Each forward-looking statement speaks only as of the date of this release, and the Company undertakes no obligation to publicly update or revise any forward- looking statement.

PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)

	December 31, 2007			December 31, 2006
	(Dollars in Thousands)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	$	60,124		$	92,203
Marketable Securities		—			62,920
Accounts and Notes Receivable, Net		166,706			112,359
Rig Materials and Supplies		24,264			15,000
Deferred Costs		7,795			6,662
Deferred Income Taxes		9,423			17,307
Other Current Assets		54,871			11,123
TOTAL CURRENT ASSETS		323,183			317,574
PROPERTY, PLANT AND EQUIPMENT, NET		585,888			435,473
OTHER ASSETS
Goodwill		100,315			100,315
Deferred Taxes		40,121			13,405
Other Assets		19,663			34,534
TOTAL OTHER ASSETS		160,099			148,254
TOTAL ASSETS	$	1,069,170		$	901,301
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current Debt	$	20,000		$	—
Accounts Payable and Accrued Liabilities		104,180			101,903
TOTAL CURRENT LIABILITIES		124,180			101,903
LONG-TERM DEBT		353,721			329,368
LONG-TERM DEFERRED TAXES		227			—
OTHER LIABILITIES		56,318			10,931
STOCKHOLDERS' EQUITY		534,724			459,099
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,069,170		$	901,301
Current Ratio		2.60			3.12
Total Debt as a Percent of Capitalization		41	%		42	%
Book Value Per Common Share	$	4.78		$	4.21

PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
(Unaudited)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2007			2006			2007			2006
	(Dollars in Thousands)						(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling	$	52,164		$	55,928		$	231,139		$	191,225
International Drilling		87,536			58,809			285,403			273,216
Rental Tools		41,126			31,593			138,031			121,994
TOTAL DRILLING AND RENTAL REVENUES		180,826			146,330			654,573			586,435
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling		21,453			25,234			98,393			83,462
International Drilling		67,261			48,204			215,279			219,710
Rental Tools		16,114			12,666			54,377			46,454
Depreciation and Amortization		25,059			17,605			85,803			69,270
TOTAL DRILLING AND RENTAL OPERATING EXPENSES		129,887			103,709			453,852			418,896
DRILLING AND RENTAL OPERATING INCOME		50,939			42,621			200,721			167,539
General and Administrative Expense		(6,328	)		(8,525	)		(24,708	)		(31,786	)
Provision for Reduction in Carrying Value of Certain Assets		(371	)		—			(1,462	)		—
Gain on Disposition of Assets, Net		(784	)		672			16,432			7,573
TOTAL OPERATING INCOME		43,456			34,768			190,983			143,326
OTHER INCOME AND (EXPENSE)
Interest Expense		(5,266	)		(6,375	)		(25,157	)		(31,598	)
Change in Fair Value of Derivative Position		—			(126	)		(671	)		40
Interest Income		902			1,997			6,478			7,963
Loss on Extinguishment of Debt		—			—			(2,396	)		(1,912	)
Equity in Loss of Unconsolidated Joint Venture, Net of Taxes		(25,978	)		—			(27,101	)		—
Other Income (Expense) — Net		78			950			(335	)		(384	)
TOTAL OTHER INCOME AND (EXPENSE)		(30,264	)		(3,554	)		(49,182	)		(25,891	)
INCOME BEFORE INCOME TAXES		13,192			31,214			141,801			117,435
INCOME TAX EXPENSE (BENEFIT)
Current Tax Expense (Benefit)		(25,621	)		9,962			17,602			20,654
Deferred Tax Expense (Benefit)		4,242			(15,916	)		20,121			15,755
TOTAL INCOME TAX EXPENSE (BENEFIT)		(21,379	)		(5,954	)		37,723			36,409
NET INCOME	$	34,571		$	37,168		$	104,078		$	81,026
EARNINGS PER SHARE — BASIC
Net Income	$	.31		$	0.35		$	0.95		$	0.76
EARNINGS PER SHARE — DILUTED
Net Income	$	.31		$	0.34		$	0.94		$	0.75
AVERAGE COMMON SHARES OUTSTANDING
Basic		110,350,218			107,379,371			109,542,364			106,552,015
Diluted		111,392,786			108,751,555			110,856,694			108,138,384

PARKER DRILLING COMPANY AND SUBSIDIARIES
Selected Financial Data
(Unaudited)

	Three Months Ended
	December 31,						September 30,
	2007			2006			2007
	(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Offshore Drilling	$	52,164		$	51,128		$	58,197
U.S. Land Drilling		—			4,800			1,503
International Land Drilling		79,393			49,146			66,976
International Offshore Drilling		8,143			9,663			10,021
Rental Tools		41,126			31,593			35,500
Total Drilling and Rental Revenues		180,826			146,330			172,197
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Offshore Drilling		21,453			22,491			24,457
U.S. Land Drilling		—			2,743			1,106
International Land Drilling		61,819			40,508			44,966
International Offshore Drilling		5,442			7,696			6,652
Rental Tools		16,114			12,666			14,579
Total Drilling and Rental Operating Expenses		104,828			86,104			91,760
DRILLING AND RENTAL OPERATING INCOME
U.S. Offshore Drilling		30,711			28,637			33,740
U.S. Land Drilling		—			2,057			397
International Land Drilling		17,574			8,638			22,010
International Offshore Drilling		2,701			1,967			3,369
Rental Tools		25,012			18,927			20,921
Depreciation and Amortization		(25,059	)		(17,605	)		(23,043	)
Total Drilling and Rental Operating Income		50,939			42,621			57,394
General and Administrative Expense		(6,328	)		(8,525	)		(6,246	)
Provision for Reduction in Carrying Value of Certain Assets		(371	)		—			(1,091	)
Gain on Disposition of Assets, Net		(784	)		672			543
TOTAL OPERATING INCOME	$	43,456		$	34,768		$	50,600

Marketable Rig Count Summary
As of December 31, 2007

	Total
U.S. Gulf of Mexico Barge Rigs
Workover		3
Intermediate		3
Deep		10
Total U.S. Gulf of Mexico Barge Rigs		16
International Land Rigs
Asia Pacific		9
Africa — Middle East		3
Latin America		8
CIS		8
Total International Land Rigs		28
International Barge Rigs
Mexico		1
Caspian Sea		1
Total International Barge Rigs		2
Total Marketable Rigs		46

Adjusted EBITDA
(Unaudited)

	Three Months Ending
	December 31, 2007			September 30, 2007			June 30, 2007			March 31, 2007			December 31, 2006			September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005			September 30, 2005			June 30, 2005
Income from Continuing Operations	$	34,571		$	22,653		$	16,860		$	29,994		$	37,168		$	18,639		$	13,761		$	11,458		$	56,707		$	18,073		$	20,194
Adjustments:
Income Tax Expense (Benefit)		(19,230	)		19,180			15,813			24,109			(5,954	)		13,173			14,694			14,496			(39,087	)		2,165			3,486
Total Other Income and Expense		30,264			8,767			4,231			5,920			3,554			8,741			5,731			7,865			10,251			9,627			15,140
Loss/(Gain) on Disposition of Assets, Net		784			(543	)		(269	)		(16,404	)		(672	)		(4,328	)		(2,125	)		(448	)		(3,185	)		(5,943	)		(15,898	)
Depreciation and Amortization		25,059			23,043			19,642			18,059			17,605			16,993			17,715			16,957			16,619			16,563			17,146
Provision for Reduction in Carrying Value		371			1,091			—			—			—			—			—			—			2,584			2,300			—
Adjusted EBITDA	$	69,670		$	74,191		$	56,277		$	61,678		$	51,701		$	53,218		$	49,776		$	50,328		$	43,889		$	42,785		$	40,068