-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RgyYs2SNP+R8D0gIAN3CYQ/t/zo+kACsr0244vfoCicLN0/a3mD5j+55UytrGaFe TtPhzf4dZekngMG0M1/UXw== 0000950134-01-504277.txt : 20010724 0000950134-01-504277.hdr.sgml : 20010724 ACCESSION NUMBER: 0000950134-01-504277 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010508 ITEM INFORMATION: FILED AS OF DATE: 20010723 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PATTERSON UTI ENERGY INC CENTRAL INDEX KEY: 0000889900 STANDARD INDUSTRIAL CLASSIFICATION: DRILLING OIL & GAS WELLS [1381] IRS NUMBER: 752504748 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-22664 FILM NUMBER: 1686326 BUSINESS ADDRESS: STREET 1: 4510 LAMESA HWY STREET 2: P O DRAWER 1416 CITY: SNYDER STATE: TX ZIP: 79549 BUSINESS PHONE: 9155731104 MAIL ADDRESS: STREET 1: P O DRAWER 1416 CITY: SNYDER STATE: TX ZIP: 79550 FORMER COMPANY: FORMER CONFORMED NAME: PATTERSON ENERGY INC DATE OF NAME CHANGE: 19940228 8-K 1 d89232e8-k.txt FORM 8-K 1 - -------------------------------------------------------------------------------- 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 ----------- 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.) - -------------------------------------------------------------------------------- 2 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. 2 3 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.) 3 4 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.) 4 5 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.) 5 6 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. 6 7 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 ---------------------------------------- Jonathan D. Nelson Vice President-Finance, Chief Financial Officer 7 -----END PRIVACY-ENHANCED MESSAGE-----