10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2013

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                     to                        

Commission file number 0-22664

Patterson-UTI Energy, Inc.

(Exact name of registrant as specified in its charter)

DELAWARE	75-2504748
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
450 GEARS ROAD, SUITE 500
HOUSTON, TEXAS	77067
(Address of principal executive offices)	(Zip Code)

(281) 765-7100

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year,

if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  x    No   ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

146,889,903 shares of common stock, $0.01 par value, as of April 25, 2013

PATTERSON-UTI ENERGY, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

		Page
PART I — FINANCIAL INFORMATION
ITEM 1.	Financial Statements
	Unaudited consolidated balance sheets		1
	Unaudited consolidated statements of operations		2
	Unaudited consolidated statements of comprehensive income		3
	Unaudited consolidated statements of changes in stockholders’ equity		4
	Unaudited consolidated statements of cash flows		5
	Notes to unaudited consolidated financial statements		6
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk		25
ITEM 4.	Controls and Procedures		25
PART II — OTHER INFORMATION
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds		25
ITEM 6.	Exhibits		26
Signature			27

PART I — FINANCIAL INFORMATION

ITEM 1. Financial Statements

The following unaudited consolidated financial statements include all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented.

PATTERSON-UTI ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except share data)

	March 31, 2013			December 31, 2012
ASSETS
Current assets:
Cash and cash equivalents	$	144,031		$	110,723
Accounts receivable, net of allowance for doubtful accounts of $3,582 and $3,513 at March 31, 2013 and December 31, 2012, respectively		491,230			465,517
Inventory		22,954			26,889
Deferred tax assets, net		42,505			52,959
Other		40,593			43,903
Total current assets		741,313			699,991
Property and equipment, net		3,682,750			3,615,383
Goodwill and intangible assets		170,435			171,463
Deposits on equipment purchases		35,913			43,776
Other		26,821			26,298
Total assets	$	4,657,232		$	4,556,911
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	233,576		$	188,823
Federal and state income taxes payable		7,261			6,158
Accrued expenses		141,517			158,632
Current portion of long-term debt		7,500			6,250
Total current liabilities		389,854			359,863
Long-term debt		690,000			692,500
Deferred tax liabilities, net		871,403			857,302
Other		6,642			6,589
Total liabilities		1,957,899			1,916,254
Commitments and contingencies (see Note 9)
Stockholders’ equity:
Preferred stock, par value $.01; authorized 1,000,000 shares, no shares issued		—			—
Common stock, par value $.01; authorized 300,000,000 shares with 185,212,330 and 184,059,900 issued and 146,427,968 and 145,913,162 outstanding at March 31, 2013 and December 31, 2012, respectively		1,852			1,841
Additional paid-in capital		890,809			863,558
Retained earnings		2,597,460			2,548,542
Accumulated other comprehensive income		19,464			21,767
Treasury stock, at cost, 38,784,362 shares and 38,146,738 shares at March 31, 2013 and December 31, 2012, respectively		(810,252	)		(795,051	)
Total stockholders’ equity		2,699,333			2,640,657
Total liabilities and stockholders’ equity	$	4,657,232		$	4,556,911

The accompanying notes are an integral part of these unaudited consolidated financial statements.

1

PATTERSON-UTI ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended March 31,
	2013			2012
Operating revenues:
Contract drilling	$	419,094		$	489,482
Pressure pumping		231,160			241,722
Oil and natural gas		16,785			14,717
Total operating revenues		667,039			745,921
Operating costs and expenses:
Contract drilling		247,072			282,649
Pressure pumping		168,156			166,857
Oil and natural gas		2,922			2,730
Depreciation, depletion, amortization and impairment		136,435			122,953
Selling, general and administrative		17,397			13,868
Net (gain) loss on asset disposals		125			(2,400	)
Provision for bad debts		—			1,600
Total operating costs and expenses		572,107			588,257
Operating income		94,932			157,664
Other income (expense):
Interest income		173			54
Interest expense		(6,766	)		(4,582	)
Other		19			55
Total other expense		(6,574	)		(4,473	)
Income before income taxes		88,358			153,191
Income tax expense:
Current		7,573			7,510
Deferred		24,555			48,407
Total income tax expense		32,128			55,917
Net income	$	56,230		$	97,274
Net income per common share:
Basic	$	0.38		$	0.62
Diluted	$	0.38		$	0.62
Weighted average number of common shares outstanding:
Basic		144,827			154,625
Diluted		146,783			155,401
Cash dividends per common share	$	0.05		$	0.05

The accompanying notes are an integral part of these unaudited consolidated financial statements.

2

PATTERSON-UTI ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited, in thousands)

	Three Months Ended March 31,
	2013			2012
Net income	$	56,230		$	97,274
Other comprehensive income (loss), net of taxes of $0 and $0, respectively:
Foreign currency translation adjustment		(2,303	)		2,554
Total comprehensive income	$	53,927		$	99,828

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3

PATTERSON-UTI ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(unaudited, in thousands)

											Accumulated
	Common Stock					Additional					Other
	Number of					Paid-in		Retained			Comprehensive			Treasury
	Shares			Amount		Capital		Earnings			Income			Stock			Total
Balance, December 31, 2012		184,060		$	1,841	$	863,558	$	2,548,542		$	21,767		$	(795,051	)	$	2,640,657
Net income		—			—		—		56,230			—			—			56,230
Foreign currency translation adjustment		—			—		—		—			(2,303	)		—			(2,303	)
Issuance of restricted stock		18			—		—		—			—			—			—
Forfeitures of restricted stock		(16	)		—		—		—			—			—			—
Exercise of stock options		1,150			11		18,611		—			—			—			18,622
Stock-based compensation		—			—		5,903		—			—			—			5,903
Tax benefit related to stock-based compensation		—			—		2,737		—			—			—			2,737
Payment of cash dividends		—			—		—		(7,312	)		—			—			(7,312	)
Purchase of treasury stock		—			—		—		—			—			(15,201	)		(15,201	)
Balance, March 31, 2013		185,212		$	1,852	$	890,809	$	2,597,460		$	19,464		$	(810,252	)	$	2,699,333

The accompanying notes are an integral part of these unaudited consolidated financial statements.

4

PATTERSON-UTI ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

	Three Months Ended March 31,
	2013			2012
Cash flows from operating activities:
Net income	$	56,230		$	97,274
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, amortization and impairment		136,435			122,953
Provision for bad debts		—			1,600
Dry holes and abandonments		10			56
Deferred income tax expense		24,555			48,407
Stock-based compensation expense		5,903			5,458
Net (gain) loss on asset disposals		125			(2,400	)
Changes in operating assets and liabilities:
Accounts receivable		(25,220	)		(38,109	)
Income taxes receivable/payable		1,267			5,807
Inventory and other assets		6,672			5,332
Accounts payable		21,385			30,418
Accrued expenses		(17,698	)		(12,234	)
Other liabilities		53			(897	)
Net cash provided by operating activities		209,717			263,665
Cash flows from investing activities:
Purchase of property and equipment		(174,161	)		(263,403	)
Proceeds from disposal of assets		707			4,651
Net cash used in investing activities		(173,454	)		(258,752	)
Cash flows from financing activities:
Purchase of treasury stock		(15,201	)		(15	)
Dividends paid		(7,312	)		(7,788	)
Tax benefit related to stock-based compensation		2,737			166
Repayment of long-term debt		(1,250	)		(2,500	)
Proceeds from borrowing under revolving credit facility		—			54,500
Repayment of borrowing under revolving credit facility		—			(56,000	)
Proceeds from exercise of stock options		18,622			195
Net cash used in financing activities		(2,404	)		(11,442	)
Effect of foreign exchange rate changes on cash		(551	)		408
Net increase (decrease) in cash and cash equivalents		33,308			(6,121	)
Cash and cash equivalents at beginning of period		110,723			23,946
Cash and cash equivalents at end of period	$	144,031		$	17,825
Supplemental disclosure of cash flow information:
Net cash paid during the period for:
Interest, net of capitalized interest of $2,281 in 2013 and $1,968 in 2012	$	—		$	(364	)
Income taxes	$	(3,543	)	$	(1,390	)
Supplemental investing and financing information:
Net increase in current liabilities for purchase of property and equipment	$	24,039		$	2,553
Net decrease in deposits on equipment purchases	$	7,863		$	1,900

The accompanying notes are an integral part of these unaudited consolidated financial statements.

5

PATTERSON-UTI ENERGY, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Consolidation and Presentation

The unaudited interim consolidated financial statements include the accounts of Patterson-UTI Energy, Inc. (the “Company”) and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Except for wholly-owned subsidiaries, the Company has no controlling financial interests in any entity which would require consolidation.

The unaudited interim consolidated financial statements have been prepared by management of the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations, although the Company believes the disclosures included either on the face of the financial statements or herein are sufficient to make the information presented not misleading. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair statement of the information in conformity with accounting principles generally accepted in the United States of America have been included. The Unaudited Consolidated Balance Sheet as of December 31, 2012, as presented herein, was derived from the audited consolidated balance sheet of the Company, but does not include all disclosures required by accounting principles generally accepted in the United States of America. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. The results of operations for the three months ended March 31, 2013 are not necessarily indicative of the results to be expected for the full year.

The U.S. dollar is the functional currency for all of the Company’s operations except for its Canadian operations, which uses the Canadian dollar as its functional currency. The effects of exchange rate changes are reflected in accumulated other comprehensive income, which is a separate component of stockholders’ equity.

The carrying values of cash and cash equivalents, trade receivables and accounts payable approximate fair value.

The Company provides a dual presentation of its net income per common share in its unaudited consolidated statements of operations: Basic net income per common share (“Basic EPS”) and diluted net income per common share (“Diluted EPS”).

Basic EPS excludes dilution and is computed by first allocating earnings between common stockholders and holders of non-vested shares of restricted stock. Basic EPS is then determined by dividing the earnings attributable to common stockholders by the weighted average number of common shares outstanding during the period, excluding non-vested shares of restricted stock.

Diluted EPS is based on the weighted average number of common shares outstanding plus the dilutive effect of potential common shares, including stock options, non-vested shares of restricted stock and restricted stock units. The dilutive effect of stock options and restricted stock units is determined using the treasury stock method. The dilutive effect of non-vested shares of restricted stock is based on the more dilutive of the treasury stock method or the two-class method, assuming a reallocation of undistributed earnings to common stockholders after considering the dilutive effect of potential common shares other than non-vested shares of restricted stock.

6

The following table presents information necessary to calculate net income per share for the three months ended March 31, 2013 and 2012 as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive (in thousands, except per share amounts):

	Three Months Ended March 31,
	2013			2012
BASIC EPS:
Net income	$	56,230		$	97,274
Adjust for income attributed to holders of non-vested restricted stock		(482	)		(742	)
Income attributed to common stockholders	$	55,748		$	96,532
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock		144,827			154,625
Basic net income per common share	$	0.38		$	0.62
DILUTED EPS:
Income attributed to common stockholders	$	55,748		$	96,532
Add incremental earnings related to potential common shares		6			—
Adjusted income attributed to common stockholders	$	55,754		$	96,532
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock		144,827			154,625
Add dilutive effect of potential common shares		1,956			776
Weighted average number of diluted common shares outstanding		146,783			155,401
Diluted net income per common share	$	0.38		$	0.62
Potentially dilutive securities excluded as anti-dilutive		1,874			3,229

2. Stock-based Compensation

The Company uses share-based payments to compensate employees and non-employee directors. The Company recognizes the cost of share-based payments under the fair-value-based method. Share-based awards consist of equity instruments in the form of stock options, restricted stock or restricted stock units and have included service and, in certain cases, performance conditions. The Company’s share-based awards have also included both cash-settled and share-settled performance unit awards. Cash-settled performance unit awards are accounted for as liability awards. Share-settled performance unit awards are accounted for as equity awards. The Company issues shares of common stock when vested stock options are exercised, when restricted stock is granted and when restricted stock units and share-settled performance unit awards vest.

Stock Options. The Company estimates the grant date fair values of stock options using the Black-Scholes-Merton valuation model. Volatility assumptions are based on the historic volatility of the Company’s common stock over the most recent period equal to the expected term of the options as of the date the options are granted. The expected term assumptions are based on the Company’s experience with respect to employee stock option activity. Dividend yield assumptions are based on the expected dividends at the time the options are granted. The risk-free interest rate assumptions are determined by reference to United States Treasury yields. Weighted-average assumptions used to estimate the grant date fair values for stock options granted for the three month periods ended March 31, 2013 and 2012 follow:

	Three Months Ended March  31,
	2013			2012
Volatility		46.19	%		48.72	%
Expected term (in years)		5.00			5.00
Dividend yield		1.07	%		1.00	%
Risk-free interest rate		0.72	%		0.83	%

7

Stock option activity from January 1, 2013 to March 31, 2013 follows:

	Underlying Shares			Weighted Average Exercise Price
Outstanding at January 1, 2013		7,827,195		$	20.35
Granted		60,000		$	18.63
Exercised		(1,150,000	)	$	16.19
Cancelled		—		$	—
Expired		—		$	—
Outstanding at March 31, 2013		6,737,195		$	21.04
Exercisable at March 31, 2013		5,738,036		$	21.49

Restricted Stock. For all restricted stock awards to date, shares of common stock were issued when the awards were made. Non-vested shares are subject to forfeiture for failure to fulfill service conditions and, in certain cases, performance conditions. Non-forfeitable dividends are paid on non-vested shares of restricted stock. The Company uses the straight-line method to recognize periodic compensation cost over the vesting period.

Restricted stock activity from January 1, 2013 to March 31, 2013 follows:

	Shares			Weighted Average Grant Date Fair Value
Non-vested restricted stock outstanding at January 1, 2013		1,279,146		$	20.03
Granted		18,000		$	18.63
Vested		(56,668	)	$	22.20
Forfeited		(15,570	)	$	19.68
Non-vested restricted stock outstanding at March 31, 2013		1,224,908		$	19.92

Restricted Stock Units. For all restricted stock unit awards made to date, shares of common stock are not issued until the units vest. Restricted stock units are subject to forfeiture for failure to fulfill service conditions. Non-forfeitable cash dividend equivalents are paid on non-vested restricted stock units. The Company uses the straight-line method to recognize periodic compensation cost over the vesting period.

Restricted stock unit activity from January 1, 2013 to March 31, 2013 follows:

	Shares		Weighted Average Grant Date Fair Value
Non-vested restricted stock units outstanding at January 1, 2013		17,670	$	20.08
Granted		—	$	—
Vested		—	$	—
Forfeited		—	$	—
Non-vested restricted stock units outstanding at March 31, 2013		17,670	$	20.08

Performance Unit Awards. In 2010, 2011 and 2012, the Company granted stock-settled performance unit awards to certain executive officers (the “Stock-Settled Performance Units”). The Stock-Settled Performance Units provide for the recipients to receive a grant of shares of stock upon the achievement of certain performance goals established by the Compensation Committee during the performance period. The performance period for the Stock-Settled Performance Units is the three year period commencing on April 1 of the year of grant, but can extend for an additional two years in certain circumstances. The performance goals for the Stock-Settled Performance Units are tied to the Company’s total shareholder return for the performance period as compared to total shareholder return for a peer group determined by the Compensation Committee. These goals are considered to be market conditions under the relevant accounting standards and the market conditions were factored into the determination of the fair value of the performance units. Generally, the recipients will receive a target number of shares if the Company’s total shareholder return is positive and, when compared to the peer group, is at the 50^th percentile and two times the target if at the 75^th percentile or higher. If the Company’s total shareholder return is positive, and, when compared to the peer group, is at the 25^th percentile, the recipients will only receive one-half of the target number of shares. The grant of shares when achievement is between the 25^th and 75^th percentile will be determined on a

8

pro-rata basis. The target number of shares with respect to the 2010 Stock-Settled Performance Units was 178,750. The performance period for the 2010 Stock-Settled Performance Units ended on March 31, 2013 and the Company’s total shareholder return was at the 93^rd percentile. In April 2013, 357,500 shares were issued to settle the 2010 Stock-Settled Performance Units.

The total target number of shares with respect to the Stock-Settled Performance Units is set forth below:

	2012 Performance Unit Awards		2011 Performance Unit Awards		2010 Performance Unit Awards
Target number of shares		192,000		144,375		178,750

Because the Stock-Settled Performance Units are stock-settled awards, they are accounted for as equity awards and measured at fair value on the date of grant using a Monte Carlo simulation model. The fair value of the Stock-Settled Performance Units is set forth below (in thousands):

	2012 Performance Unit Awards		2011 Performance Unit Awards		2010 Performance Unit Awards
Fair value at date of grant	$	3,065	$	5,569	$	3,117

These fair value amounts are charged to expense on a straight-line basis over the performance period. Compensation expense associated with the Stock-Settled Performance Units is shown below (in thousands):

	2012 Performance Unit Awards		2011 Performance Unit Awards		2010 Performance Unit Awards
Three months ended March 31, 2013	$	255	$	464	$	260
Three months ended March 31, 2012		NA	$	464	$	260

3. Property and Equipment

Property and equipment consisted of the following at March 31, 2013 and December 31, 2012 (in thousands):

	March 31, 2013			December 31, 2012
Equipment	$	5,545,029		$	5,387,490
Oil and natural gas properties		164,824			156,834
Buildings		67,585			66,490
Land		11,899			10,413
		5,789,337			5,621,227
Less accumulated depreciation and depletion		(2,106,587	)		(2,005,844	)
Property and equipment, net	$	3,682,750		$	3,615,383

9

4. Business Segments

The Company’s revenues, operating profits and identifiable assets are primarily attributable to three business segments: (i) contract drilling of oil and natural gas wells, (ii) pressure pumping services and (iii) the investment, on a non-operating working interest basis, in oil and natural gas properties. Each of these segments represents a distinct type of business. These segments have separate management teams which report to the Company’s chief operating decision maker. The results of operations in these segments are regularly reviewed by the chief operating decision maker for purposes of determining resource allocation and assessing performance. Separate financial data for each of our business segments is provided in the table below (in thousands):

	Three Months Ended March 31,
	2013			2012
Revenues:
Contract drilling	$	420,233		$	490,703
Pressure pumping		231,160			241,722
Oil and natural gas		16,785			14,717
Total segment revenues		668,178			747,142
Elimination of intercompany revenues (a)		(1,139	)		(1,221	)
Total revenues	$	667,039		$	745,921
Income before income taxes:
Contract drilling	$	72,549		$	111,771
Pressure pumping		28,515			46,787
Oil and natural gas		6,241			7,518
		107,305			166,076
Corporate and other		(12,248	)		(10,812	)
Net gain (loss) on asset disposals (b)		(125	)		2,400
Interest income		173			54
Interest expense		(6,766	)		(4,582	)
Other		19			55
Income before income taxes	$	88,358		$	153,191

	March 31, 2013		December 31, 2012
Identifiable assets:
Contract drilling	$	3,607,349	$	3,538,289
Pressure pumping		802,050		784,128
Oil and natural gas		55,212		54,188
Corporate and other (c)		192,621		180,306
Total assets	$	4,657,232	$	4,556,911

(a)	Consists of contract drilling intercompany revenues for drilling services provided to the oil and natural gas exploration and production segment.
(b)	Net gains or losses associated with the disposal of assets relate to corporate strategy decisions of the executive management group. Accordingly, the related gains or losses have been separately presented and excluded from the results of specific segments.
(c)	Corporate and other assets primarily include cash on hand and certain deferred tax assets.

10

5. Goodwill and Intangible Assets

Goodwill — Goodwill by operating segment as of March 31, 2013 and changes for the three months then ended are as follows (in thousands):

	Contract Drilling		Pressure Pumping		Total
Balance December 31, 2012	$	86,234	$	67,575	$	153,809
Changes to goodwill		—		—		—
Balance March 31, 2013	$	86,234	$	67,575	$	153,809

There were no accumulated impairment losses as of March 31, 2013 or December 31, 2012.

Goodwill is evaluated at least annually on December 31, or when circumstances require, to determine if the fair value of recorded goodwill has decreased below its carrying value. For purposes of impairment testing, goodwill is evaluated at the reporting unit level. The Company’s reporting units for impairment testing have been determined to be its operating segments. The Company first determines whether it is more likely than not that the fair value of a reporting unit is less than its carrying value after considering qualitative, market and other factors. If so, then goodwill impairment is determined using a two-step impairment test. The first step is to compare the fair value of an entity’s reporting units to the respective carrying value of those reporting units. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed whereby the fair value of the reporting unit is allocated to its identifiable tangible and intangible assets and liabilities with any remaining fair value representing the fair value of goodwill. If this resulting fair value of goodwill is less than the carrying value of goodwill, an impairment loss would be recognized in the amount of the shortfall.

Intangible Assets — Intangible assets were recorded in the pressure pumping operating segment in connection with the fourth quarter 2010 acquisition of the assets of a pressure pumping business. As a result of the purchase price allocation, the Company recorded intangible assets related to a non-compete agreement and the customer relationships acquired. These intangible assets were recorded at fair value on the date of acquisition.

The non-compete agreement has a term of three years from October 1, 2010. The value of this agreement was estimated using a with and without scenario where cash flows were projected through the term of the agreement assuming the agreement is in place and compared to cash flows assuming the non-compete agreement was not in place. The intangible asset associated with the non-compete agreement is being amortized on a straight-line basis over the three-year term of the agreement. Amortization expense of approximately $117,000 was recorded in the three months ended March 31, 2013 and 2012.

The value of the customer relationships was estimated using a multi-period excess earnings model to determine the present value of the projected cash flows associated with the customers in place at the time of the acquisition and taking into account a contributory asset charge. The resulting intangible asset is being amortized on a straight-line basis over seven years. Amortization expense of approximately $911,000 was recorded in the three months ended March 31, 2013 and 2012 associated with customer relationships.

The following table presents the gross carrying amount and accumulated amortization of intangible assets as of March 31, 2013 and December 31, 2012 (in thousands):

	March 31, 2013							December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Non-compete agreement	$	1,400	$	(1,167	)	$	233	$	1,400	$	(1,050	)	$	350
Customer relationships		25,500		(9,107	)		16,393		25,500		(8,196	)		17,304
Total intangible assets	$	26,900	$	(10,274	)	$	16,626	$	26,900	$	(9,246	)	$	17,654

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6. Accrued Expenses

Accrued expenses consisted of the following at March 31, 2013 and December 31, 2012 (in thousands):

	March 31, 2013		December 31, 2012
Salaries, wages, payroll taxes and benefits	$	39,276	$	55,430
Workers’ compensation liability		66,755		68,441
Property, sales, use and other taxes		7,211		9,749
Insurance, other than workers’ compensation		6,104		10,419
Accrued interest payable		14,518		7,664
Deferred revenue—current		—		1,523
Other		7,653		5,406
	$	141,517	$	158,632

Deferred revenue was recorded in the fourth quarter of 2010 in the purchase price allocation associated with the Company’s acquisition of a pressure pumping business. The deferred revenue related to out-of-market pricing agreements that were in place at the acquired business at the time of the acquisition. The deferred revenue was recognized as pressure pumping revenue over the term of the pricing agreements, which have now expired. Deferred revenue of approximately $1.5 million and $1.8 million was recognized in the three months ended March 31, 2013 and 2012, respectively, related to these pricing agreements.

7. Asset Retirement Obligation

The Company records a liability for the estimated costs to be incurred in connection with the abandonment of oil and natural gas properties in the future. This liability is included in the caption “other” in the liabilities section of the consolidated balance sheet. The following table describes the changes to the Company’s asset retirement obligations during the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended March  31,
	2013			2012
Balance at beginning of year	$	4,422		$	3,455
Liabilities incurred		71			106
Liabilities settled		(13	)		(68	)
Accretion expense		41			37
Revision in estimated costs of plugging oil and natural gas wells		—			550
Asset retirement obligation at end of period	$	4,521		$	4,080

8. Long Term Debt

Credit Facilities - On September 27, 2012, the Company entered into a Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, N.A., as administrative agent, letter of credit issuer, swing line lender and lender, and each of the other lenders party thereto. The Credit Agreement is a committed senior unsecured credit facility that includes a revolving credit facility and a term loan facility.

The revolving credit facility permits aggregate borrowings of up to $500 million outstanding at any time. The revolving credit facility contains a letter of credit facility that is limited to $150 million and a swing line facility that is limited to $40 million, in each case outstanding at any time.

The term loan facility provides for a loan of $100 million, which was drawn on December 24, 2012. The term loan facility is payable in quarterly principal installments, which commenced December 27, 2012. The installment amounts vary from 1.25% of the original principal amount for each of the first four quarterly installments, 2.50% of the original principal amount for each of the subsequent eight quarterly installments, 5.00% of the original principal amount for the subsequent four quarterly installments and 13.75% of the original principal amount for the final four quarterly installments.

Subject to customary conditions, the Company may request that the lenders’ aggregate commitments with respect to the revolving credit facility and/or the term loan facility be increased by up to $100 million, not to exceed total commitments of $700 million. The maturity date under the Credit Agreement is September 27, 2017 for both the revolving facility and the term facility.

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Loans under the Credit Agreement bear interest by reference, at the Company’s election, to the LIBOR rate or base rate, provided, that swing line loans bear interest by reference only to the base rate. The applicable margin on LIBOR rate loans varies from 2.25% to 3.25% and the applicable margin on base rate loans varies from 1.25% to 2.25%, in each case determined based upon the Company’s debt to capitalization ratio. As of March 31, 2013, the applicable margin on LIBOR rate loans was 2.25% and the applicable margin on base rate loans was 1.25%. A letter of credit fee is payable by the Company equal to the applicable margin for LIBOR rate loans times the daily amount available to be drawn under outstanding letters of credit. The commitment fee rate payable to the lenders for the unused portion of the credit facility is 0.50%.

Each domestic subsidiary of the Company other than immaterial subsidiaries has unconditionally guaranteed all existing and future indebtedness and liabilities of the other guarantors and the Company arising under the Credit Agreement and other loan documents. Such guarantees also cover obligations of the Company and any subsidiary of the Company arising under any interest rate swap contract with any person while such person is a lender under the Credit Agreement.

The Credit Agreement requires compliance with two financial covenants. The Company must not permit its debt to capitalization ratio to exceed 45%. The Credit Agreement generally defines the debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the last day of the most recently ended fiscal quarter. The Company also must not permit the interest coverage ratio as of the last day of a fiscal quarter to be less than 3.00 to 1.00. The Credit Agreement generally defines the interest coverage ratio as the ratio of earnings before interest, taxes, depreciation and amortization (“EBITDA”) of the four prior fiscal quarters to interest charges for the same period. The Company was in compliance with these covenants at March 31, 2013. The Credit Agreement also contains customary representations, warranties and affirmative and negative covenants.

Events of default under the Credit Agreement include failure to pay principal or interest when due, failure to comply with the financial and operational covenants, as well as a cross default event, loan document enforceability event, change of control event and bankruptcy and other insolvency events. If an event of default occurs and is continuing, then a majority of the lenders have the right, among others, to (i) terminate the commitments under the Credit Agreement, (ii) accelerate and require the Company to repay all the outstanding amounts owed under any loan document (provided that in limited circumstances with respect to insolvency and bankruptcy of the Company, such acceleration is automatic), and (iii) require the Company to cash collateralize any outstanding letters of credit.

As of March 31, 2013, the Company had $97.5 million principal amount outstanding under the term loan facility at an interest rate of 2.625% and no amounts outstanding under the revolving credit facility. The Company had $39.8 million in letters of credit outstanding at March 31, 2013 and, as a result, had available borrowing capacity of approximately $460 million at that date.

Senior Notes – On October 5, 2010, the Company completed the issuance and sale of $300 million in aggregate principal amount of its 4.97% Series A Senior Notes due October 5, 2020 (the “Series A Notes”) in a private placement. The Series A Notes bear interest at a rate of 4.97% per annum. The Company will pay interest on the Series A Notes on April 5 and October 5 of each year. The Series A Notes will mature on October 5, 2020.

On June 14, 2012, the Company completed the issuance and sale of $300 million in aggregate principal amount of its 4.27% Series B Senior Notes due June 14, 2022 (the “Series B Notes”) in a private placement. The Series B Notes bear interest at a rate of 4.27% per annum. The Company will pay interest on the Series B Notes on April 5 and October 5 of each year. The Series B Notes will mature on June 14, 2022.

The Series A Notes and Series B Notes are senior unsecured obligations of the Company which rank equally in right of payment with all other unsubordinated indebtedness of the Company. The Series A Notes and Series B Notes are guaranteed on a senior unsecured basis by each of the existing domestic subsidiaries of the Company other than immaterial subsidiaries.

The Series A Notes and Series B Notes are prepayable at the Company’s option, in whole or in part, provided that in the case of a partial prepayment, prepayment must be in an amount not less than 5% of the aggregate principal amount of the notes then outstanding, at any time and from time to time at 100% of the principal amount prepaid, plus accrued and unpaid interest to the prepayment date, plus a “make-whole” premium as specified in the note purchase agreements. The Company must offer to prepay the notes upon the occurrence of any change of control. In addition, the Company must offer to prepay the notes upon the occurrence of certain asset dispositions if the proceeds therefrom are not timely reinvested in productive assets. If any offer to prepay is accepted, the purchase price of each prepaid note is 100% of the principal amount thereof, plus accrued and unpaid interest thereon to the prepayment date.

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The respective note purchase agreements require compliance with two financial covenants. The Company must not permit its debt to capitalization ratio to exceed 50% at any time. The note purchase agreements generally define the debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the last day of the most recently ended fiscal quarter. The Company also must not permit the interest coverage ratio as of the last day of a fiscal quarter to be less than 2.50 to 1.00. The note purchase agreements generally define the interest coverage ratio as the ratio of EBITDA for the four prior fiscal quarters to interest charges for that same period. The Company was in compliance with these covenants at March 31, 2013.

Events of default under the note purchase agreements include failure to pay principal or interest when due, failure to comply with the financial and operational covenants, a cross default event, a judgment in excess of a threshold event, the guaranty agreement ceasing to be enforceable, the occurrence of certain ERISA events, a change of control event and bankruptcy and other insolvency events. If an event of default under the note purchase agreements occurs and is continuing, then holders of a majority in principal amount of the respective notes have the right to declare all the notes then-outstanding to be immediately due and payable. In addition, if the Company defaults in payments on any note, then until such defaults are cured, the holder thereof may declare all the notes held by it pursuant to the note purchase agreement to be immediately due and payable.

The Company incurred approximately $10.8 million in debt issuance costs during 2010 in connection with the previous credit agreement and the Series A Notes. During the third quarter of 2012, $978,000 of these costs were charged to interest expense due to the early termination of the previous credit agreement. The Company incurred approximately $7.6 million in debt issuance costs during 2012 in connection with the Series B Notes and the Credit Agreement. These costs were deferred and are recognized as interest expense over the term of the underlying debt. Interest expense related to the amortization of debt issuance costs was approximately $547,000 and $604,000 for the three months ended March 31, 2013 and 2012.

Presented below is a schedule of the principal repayment requirements of long-term debt by fiscal year as of March 31, 2013 (in thousands):

Year ending December 31,
2013	$	5,000
2014		10,000
2015		12,500
2016		28,750
2017		41,250
Thereafter		600,000
Total	$	697,500

9. Commitments, Contingencies and Other Matters

As of March 31, 2013, the Company maintained letters of credit in the aggregate amount of $39.8 million for the benefit of various insurance companies as collateral for retrospective premiums and retained losses which could become payable under the terms of the underlying insurance contracts. These letters of credit expire annually at various times during the year and are typically renewed. As of March 31, 2013, no amounts had been drawn under the letters of credit.

As of March 31, 2013, the Company had commitments to purchase approximately $128 million of major equipment for its drilling and pressure pumping businesses.

The Company’s pressure pumping business has entered into agreements to purchase minimum quantities of proppants and chemicals from certain vendors. These agreements expire in 2016 and 2017. As of March 31, 2013, the remaining obligation under these agreements is approximately $35.0 million, of which materials with a total purchase price of approximately $7.2 million are expected to be delivered during the last three quarters of 2013. In the event that the required minimum quantities are not purchased during any contract year, the Company would be required to make a liquidated damages payment to the respective vendor for any shortfall.

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In November of 2011, the Company’s pressure pumping business entered into an agreement with a proppant vendor to advance, on a non-revolving basis, up to $12.0 million to such vendor to finance the construction of certain processing facilities. This advance is secured by the underlying processing facilities and bears interest at an annual rate of 5.0%. Repayment of the advance is to be made through discounts applied to purchases from the vendor and repayment of all amounts advanced must be made no later than October 1, 2017. As of March 31, 2013, advances of approximately $11.8 million had been made under this agreement and repayments of approximately $531,000 had been received resulting in a balance outstanding of approximately $11.2 million.

The Company is party to various legal proceedings arising in the normal course of its business. The Company does not believe that the outcome of these proceedings, either individually or in the aggregate, will have a material adverse effect on its financial condition, results of operations or cash flows.

10. Stockholders’ Equity

Cash Dividends—The Company paid cash dividends during the three months ended March 31, 2012 and 2013 as follows:

2012:	Per Share		Total
			(in thousands)
Paid on March 30, 2012	$	0.05	$	7,788

2013:	Per Share		Total
			(in thousands)
Paid on March 29, 2013	$	0.05	$	7,312

On April 24, 2013, the Company’s Board of Directors approved a cash dividend on its common stock in the amount of $0.05 per share to be paid on June 28, 2013 to holders of record as of June 14, 2013. The amount and timing of all future dividend payments, if any, are subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of the Company’s credit facilities and other factors.

On July 25, 2012, the Company’s Board of Directors approved a stock buyback program authorizing purchases of up to $150 million of the Company’s common stock in open market or privately negotiated transactions. During the three months ended March 31, 2013, no shares were purchased under the stock buyback program. As of March 31, 2013, the Company has remaining authorization to purchase approximately $51.1 million of the Company’s outstanding common stock under the stock buyback program. Shares purchased under the buyback programs are accounted for as treasury stock.

The Company purchased 637,624 shares of treasury stock from employees during the three months ended March 31, 2013. These shares were purchased at fair market value upon the exercise of stock options to provide the employees with the funds necessary to pay the exercise price of the stock option and to satisfy payroll tax withholding obligations. The total purchase price for these shares was approximately $15.2 million. These purchases were made pursuant to the terms of the Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan and not pursuant to the stock buyback program.

Accumulated other comprehensive income is composed solely of amounts related to foreign currency translation.

11. Income Taxes

On January 1, 2010, the Company converted its Canadian operations from a Canadian branch to a controlled foreign corporation for Federal income tax purposes. Because the statutory tax rates in Canada are lower than those in the United States, this transaction triggered a $5.1 million reduction in the Company’s deferred tax liabilities, which is being amortized as a reduction to deferred income tax expense over the weighted average remaining useful life of the Canadian assets.

As a result of the above conversion, the Company’s Canadian assets are no longer directly subject to United States taxation, provided that the related unremitted earnings are permanently reinvested in Canada. Effective January 1, 2010, the Company has elected to permanently reinvest these unremitted earnings in Canada, and intends to do so for the foreseeable future. As a result, no deferred United States federal or state income taxes have been provided on such unremitted foreign earnings, which totaled approximately $33.7 million as of March 31, 2013. The unrecognized deferred tax liability associated with these earnings was approximately $5.1 million, net of available foreign tax credits. This liability would be recognized if the Company received a dividend of these unremitted earnings.

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12. Fair Values of Financial Instruments

The carrying values of cash and cash equivalents, trade receivables and accounts payable approximate fair value due to the short-term maturity of these items. These fair value estimates are considered Level 1 fair value estimates in the fair value hierarchy of fair value accounting.

The estimated fair value of the Company’s outstanding debt balances (including current portion) as of March 31, 2013 and December 31, 2012 is set forth below (in thousands):

	March 31, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
Borrowings under Credit Agreement:
Term loan facility	$	97,500	$	97,500	$	98,750	$	98,750
4.97% Series A Senior Notes		300,000		321,743		300,000		329,281
4.27% Series B Senior Notes		300,000		303,342		300,000		310,591
Total debt	$	697,500	$	722,585	$	698,750	$	738,622

The carrying values of the balances outstanding under the term loan approximate their fair values as this instrument has a floating interest rate. The fair value of the 4.97% Series A Senior Notes and the 4.27% Series B Senior Notes at March 31, 2013 and December 31, 2012 are based on discounted cash flows associated with the respective notes using current market rates of interest at those respective dates. For the 4.97% Series A Senior Notes, the current market rates used in measuring this fair value were 3.49% at March 31, 2013 and 3.36% at December 31, 2012. For the 4.27% Series B Senior Notes, the current market rate used in measuring this fair value was 3.85% at March 31, 2013 and 3.70% at December 31, 2012. These fair value estimates are based on observable market inputs and are considered Level 2 fair value estimates in the fair value hierarchy of fair value accounting.

13. Recently Issued Accounting Standards

In February 2013, the FASB issued an accounting standards update that requires additional disclosures regarding reclassifications out of accumulated other comprehensive income. This requirement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012, and became effective for the Company in the quarter ended March 31, 2013. The adoption of this update did not have a material impact on the Company’s disclosures included in its consolidated financial statements. The Company includes in accumulated other comprehensive income the cumulative translation adjustment of its foreign subsidiary.

In February 2013, the FASB issued an accounting standards update to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the update is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The requirements in this update are effective during interim and annual periods beginning after December 15, 2013. The adoption of this update is not expected to have a material impact on the Company’s consolidated financial statements.

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DISCLOSURE REGARDING FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Report”) and other public filings and press releases by us contain “forward-looking statements” within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995, as amended. These “forward-looking statements” involve risk and uncertainty. These forward-looking statements include, without limitation, statements relating to: liquidity; revenue expectations and backlog; financing of operations; continued volatility of oil and natural gas prices; source and sufficiency of funds required for building new equipment and additional acquisitions (if further opportunities arise); impact of inflation; demand for our services; and other matters. Our forward-looking statements can be identified by the fact that they do not relate strictly to historic or current facts and often use words such as “believes,” “budgeted,” “continue,” “expects,” “estimates,” “project,” “will,” “could,” “may,” “plans,” “intends,” “strategy,” or “anticipates,” or the negative thereof and other words and expressions of similar meaning. The forward-looking statements are based on certain assumptions and analyses we make in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate in the circumstances. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. Forward-looking statements may be made orally or in writing, including, but not limited to, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this Report and other sections of our filings with the United States Securities and Exchange Commission (the “SEC”) under the Exchange Act and the Securities Act.

Forward-looking statements are not guarantees of future performance and a variety of factors could cause actual results to differ materially from the anticipated or expected results expressed in or suggested by these forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, global economic conditions, volatility in customer spending and in oil and natural gas prices that could adversely affect demand for our services and their associated effect on rates, utilization, margins and planned capital expenditures, excess availability of land drilling rigs and pressure pumping equipment, including as a result of reactivation or construction, adverse industry conditions, adverse credit and equity market conditions, difficulty in integrating acquisitions, shortages of labor, equipment, supplies and materials, weather, loss of key customers, liabilities from operations for which we do not have and receive full indemnification or insurance, governmental regulation and ability to retain management and field personnel. Refer to “Risk Factors” contained in Part 1 of our Annual Report on Form 10-K for the year ended December 31, 2012 for a more complete discussion of these and other factors that might affect our performance and financial results. You are cautioned not to place undue reliance on any of our forward-looking statements. These forward-looking statements are intended to relay our expectations about the future, and speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, changes in internal estimates or otherwise, except as required by law.

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management Overview — We are a leading provider of services to the North American oil and natural gas industry. Our services primarily involve the drilling, on a contract basis, of land-based oil and natural gas wells and pressure pumping services. In addition to the aforementioned services, we also invest, on a non-operating working interest basis, in oil and natural gas properties.

We have a drilling fleet that consists of more than 300 marketable land-based drilling rigs. There continues to be uncertainty with respect to the global economic environment and crude oil and natural gas prices remain volatile. During the first quarter of 2013, our average number of rigs operating in the United States was 188, compared to an average of 224 drilling rigs operating during the same period in 2012. During the first quarter of 2013, our average number of rigs operating in Canada was 11 compared to 13 drilling rigs operating during the first quarter of 2012.

We have addressed our customers’ needs for drilling wells in the newer horizontal shale and other unconventional resource plays by expanding our areas of operation and improving the capabilities of our drilling fleet during the last several years. As of March 31, 2013, we have completed 117 new APEX^® rigs and made performance and safety improvements to existing high capacity rigs. We have plans to complete 9 additional new APEX^® rigs in the remainder of 2013. In connection with the newer horizontal shale and other unconventional resource plays, we have added equipment to perform service intensive fracturing jobs. As of March 31, 2013, we had more than 750,000 hydraulic horsepower in our pressure pumping fleet. Low natural gas prices and the industry-wide addition of new pressure pumping equipment to the marketplace has led to an excess supply of pressure pumping equipment in North America.

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We maintain a backlog of commitments for contract drilling revenues under term contracts, which we define as contracts with a fixed term of six months or more. Our backlog as of March 31, 2013 was approximately $1.14 billion. We expect approximately $626 million of our backlog to be realized in the remainder of 2013. We calculate our backlog by multiplying the day rate under our term drilling contracts by the number of days remaining under the contract. The calculation does not include any revenues related to other fees such as for mobilization, demobilization and customer reimbursables, nor does it include potential reductions in rates for unscheduled standby or during periods in which the rig is moving, on standby or incurring maintenance and repair time in excess of what is permitted under the drilling contract. In addition, generally our term drilling contracts are subject to termination by the customer on short notice and provide for an early termination payment to us in the event that the contract is terminated by the customer.

For the three months ended March 31, 2013 and 2012, our operating revenues consisted of the following (dollars in thousands):

	Three Months Ended March 31,
	2013				2012
Contract drilling	$	419,094	63	%	$	489,482	66	%
Pressure pumping		231,160	35			241,722	32
Oil and natural gas		16,785	2			14,717	2
	$	667,039	100	%	$	745,921	100	%

Generally, the profitability of our business is impacted most by two primary factors in our contract drilling segment: our average number of rigs operating and our average revenue per operating day. During the first quarter of 2013, our average number of rigs operating was 188 in the United States and 11 in Canada compared to 224 in the United States and 13 in Canada in the first quarter of 2012. Our average revenue per operating day was $23,410 in the first quarter of 2013 compared to $22,650 in the first quarter of 2012. Due primarily to reduced revenues in our contract drilling and pressure pumping segments, as well as higher depreciation, depletion and amortization expense, consolidated net income for the first quarter of 2013 was $56.2 million compared to consolidated net income of $97.3 million for the first quarter of 2012.

Our revenues, profitability and cash flows are highly dependent upon prevailing prices for oil and natural gas. During periods of improved commodity prices, the capital spending budgets of oil and natural gas operators tend to expand, which generally results in increased demand for our services. Conversely, in periods when these commodity prices deteriorate, the demand for our services generally weakens and we experience downward pressure on pricing for our services. Oil and natural gas prices and our monthly average number of rigs operating have declined from historic highs. In March 2013, our average number of rigs operating was 199.

We are highly impacted by competition, the availability of excess equipment, labor issues, weather and various other factors that could materially adversely affect our business, financial condition, cash flows and results of operations. Please see “Risk Factors” included in Part I of our Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

We believe that our liquidity as of March 31, 2013, which includes approximately $351 million in working capital, approximately $460 million available under our $500 million revolving credit facility, together with cash expected to be generated from operations, should provide us with sufficient ability to fund our current plans to build new equipment, make improvements to our existing equipment, service our debt and pay cash dividends. If we pursue opportunities for growth that require capital, we believe we would be able to satisfy these needs through a combination of working capital, cash flows from operating activities, borrowing capacity under our revolving credit facility or additional debt or equity financing. However, there can be no assurance that such capital will be available on reasonable terms, if at all.

Commitments and Contingencies — As of March 31, 2013, we maintained letters of credit in the aggregate amount of $39.8 million for the benefit of various insurance companies as collateral for retrospective premiums and retained losses which could become payable under the terms of the underlying insurance contracts. These letters of credit expire annually at various times during the year and are typically renewed. As of March 31, 2013, no amounts had been drawn under the letters of credit.

As of March 31, 2013, we had commitments to purchase approximately $128 million of major equipment for our drilling and pressure pumping businesses.

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Our pressure pumping business has entered into agreements to purchase minimum quantities of proppants and chemicals from certain vendors. These agreements expire in 2016 and 2017. As of March 31, 2013, the remaining obligation under these agreements is approximately $35.0 million, of which materials with a total purchase price of approximately $7.2 million are expected to be delivered during the last three quarters of 2013. In the event that the required minimum quantities are not purchased during any contract year, the Company would be required to make a liquidated damages payment to the respective vendor for any shortfall.

In November 2011, our pressure pumping business entered into an agreement with a proppant vendor to advance, on a non-revolving basis, up to $12.0 million to such vendor to finance its construction of certain processing facilities. This advance is secured by the underlying processing facilities and other assets and bears interest at an annual rate of 5.0%. Repayment of the advance is to be made through discounts applied to purchases from the vendor and repayment of all amounts advanced must be made no later than October 1, 2017. As of March 31, 2013, advances of approximately $11.8 million had been made under this agreement and repayments of approximately $531,000 had been received resulting in a balance outstanding of approximately $11.2 million.

Trading and Investing — We have not engaged in trading activities that include high-risk securities, such as derivatives and non-exchange traded contracts. We invest cash primarily in highly liquid, short-term investments such as overnight deposits and money market accounts.

Description of Business — We conduct our contract drilling operations primarily in the continental United States, Alaska and western and northern Canada. We have more than 300 marketable land-based drilling rigs. We provide pressure pumping services to oil and natural gas operators primarily in Texas and the Appalachian Basin. Pressure pumping services are primarily well stimulation and cementing for completion of new wells and remedial work on existing wells. We also invest in oil and natural gas assets as a non-operating working interest owner. Our oil and natural gas working interests are located primarily in Texas and New Mexico.

The North American oil and natural gas services industry has experienced downturns in demand during the last decade. During these periods, there have been substantially more drilling rigs and pressure pumping equipment available than necessary to meet demand. As a result, drilling and pressure pumping contractors have had difficulty sustaining profit margins and, at times, have incurred losses during the downturn periods.

In addition, unconventional resource plays have substantially increased and some drilling rigs are not capable of drilling these wells efficiently. Accordingly, the utilization of some older technology drilling rigs may be hampered by their lack of capability to efficiently compete for this work. Other ongoing factors which could continue to adversely affect utilization rates and pricing, even in an environment of high oil and natural gas prices and increased drilling activity, include:

• movement of drilling rigs from region to region,

• reactivation of land-based drilling rigs, or

• construction of new technology drilling rigs.

Construction of new technology drilling rigs increased in recent years. The addition of new technology drilling rigs to the market, combined with a reduction in the drilling of vertical wells, has resulted in excess capacity of conventional drilling rigs. Similarly, the substantial increase in unconventional resource plays has led to higher demand for pressure pumping services, and there has been a significant increase in the construction of new pressure pumping equipment across the industry. As a result of relatively low natural gas prices and the construction of new equipment, there is currently an excess of pressure pumping equipment available. In circumstances of excess capacity, providers of pressure pumping services have difficulty sustaining profit margins and may sustain losses during downturn periods. We cannot predict either the future level of demand for our contract drilling or pressure pumping services or future conditions in the oil and natural gas contract drilling or pressure pumping businesses.

Critical Accounting Policies

In addition to established accounting policies, our consolidated financial statements are impacted by certain estimates and assumptions made by management. No changes in our critical accounting policies have occurred since the filing of our Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

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Liquidity and Capital Resources

As of March 31, 2013, we had working capital of $351 million, including cash and cash equivalents of $144 million, compared to working capital of $340 million and cash and cash equivalents of $111 million at December 31, 2012.

During the three months ended March 31, 2013, our sources of cash flow included:

• $210 million from operating activities,

• $21.4 million from the exercise of stock options and related tax benefits associated with stock-based compensation, and

• $707,000 in proceeds from the disposal of property and equipment.

During the three months ended March 31, 2013, we used $15.2 million to repurchase shares of our common stock, $7.3 million to pay dividends on our common stock, $1.3 million to repay long-term debt and $174 million:

• to build new drilling rigs and pressure pumping equipment,

• to make capital expenditures for the betterment and refurbishment of our drilling rigs and pressure pumping equipment,

• to acquire and procure equipment and facilities to support our drilling and pressure pumping operations, and

• to fund investments in oil and natural gas properties on a working interest basis.

We paid cash dividends during the three months ended March 31, 2013 as follows:

	Per Share		Total
			(in thousands)
Paid on March 29, 2013	$	0.05	$	7,312

On April 24, 2013, our Board of Directors approved a cash dividend on our common stock in the amount of $0.05 per share to be paid on June 28, 2013 to holders of record as of June 14, 2013. The amount and timing of all future dividend payments, if any, is subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of our credit facilities and other factors.

On July 25, 2012, our Board of Directors approved a stock buyback program authorizing purchases of up to $150 million of our common stock in open market or privately negotiated transactions. During the three months ended March 31, 2013, no shares were purchased under the stock buyback program. As of March 31, 2013, we had remaining authorization to purchase approximately $51.1 million of our outstanding common stock under the stock buyback program.

On September 27, 2012, we entered into a Credit Agreement (the “Credit Agreement”). The Credit Agreement is a committed senior unsecured credit facility that includes a revolving credit facility and a term loan facility.

The revolving credit facility permits aggregate borrowings of up to $500 million outstanding at any time. The revolving credit facility contains a letter of credit facility that is limited to $150 million and a swing line facility that is limited to $40 million, in each case outstanding at any time.

The term loan facility provides for a loan of $100 million, which was drawn on December 24, 2012. The term loan facility is payable in quarterly principal installments, which commenced December 27, 2012. The installment amounts vary from 1.25% of the original principal amount for each of the first four quarterly installments, 2.50% of the original principal amount for each of the subsequent eight quarterly installments, 5.00% of the original principal amount for the subsequent four quarterly installments and 13.75% of the original principal amount for the final four quarterly installments.

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Subject to customary conditions, we may request that the lenders’ aggregate commitments with respect to the revolving credit facility and/or the term loan facility be increased by up to $100 million, not to exceed total commitments of $700 million. The maturity date under the Credit Agreement is September 27, 2017 for both the revolving facility and the term facility.

Loans under the Credit Agreement bear interest by reference, at our election, to the LIBOR rate or base rate, provided, that swing line loans bear interest by reference only to the base rate. The applicable margin on LIBOR rate loans varies from 2.25% to 3.25% and the applicable margin on base rate loans varies from 1.25% to 2.25%, in each case determined based upon our debt to capitalization ratio. As of March 31, 2013, the applicable margin on LIBOR rate loans was 2.25% and the applicable margin on base rate loans was 1.25%. A letter of credit fee is payable by us equal to the applicable margin for LIBOR rate loans times the daily amount available to be drawn under outstanding letters of credit. The commitment fee rate payable to the lenders for the unused portion of the credit facility is 0.50%.

Each of our domestic subsidiaries other than immaterial subsidiaries has unconditionally guaranteed all of our existing and future indebtedness and liabilities of the other guarantors arising under the Credit Agreement and other loan documents. Such guarantees also cover our obligations and those of any of our subsidiaries arising under any interest rate swap contract with any person while such person is a lender under the Credit Agreement.

The Credit Agreement also requires compliance with two financial covenants. We must not permit our debt to capitalization ratio to exceed 45%. The Credit Agreement generally defines the debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the last day of the most recently ended fiscal quarter. We also must not permit the interest coverage ratio as of the last day of a fiscal quarter to be less than 3.00 to 1.00. The Credit Agreement generally defines the interest coverage ratio as the ratio of EBITDA of the four prior fiscal quarters to interest charges for the same period. We were in compliance with these financial covenants as of March 31, 2013. The Credit Agreement also contains customary representations, warranties, indemnities and affirmative and negative covenants. We do not expect that the restrictions and covenants will impair, in any material respect, our ability to operate or react to opportunities that might arise.

Events of default under the Credit Agreement include failure to pay principal or interest when due, failure to comply with the financial and operational covenants, as well as a cross default event, loan document enforceability event, change of control event and bankruptcy and other insolvency events. If an event of default occurs and is continuing, then a majority of the lenders have the right, among others, to (i) terminate the commitments under the Credit Agreement, (ii) accelerate and require us to repay all the outstanding amounts owed under any loan document (provided that in limited circumstances with respect to insolvency and bankruptcy, such acceleration is automatic), and (iii) requires us to cash collateralize any outstanding letters of credit.

As of March 31, 2013, we had $97.5 million principal amount outstanding under the term loan facility at an interest rate of 2.625% and no amounts outstanding under the revolving credit facility. We had $39.8 million in letters of credit outstanding at March 31, 2013 and, as a result, we had available borrowing of approximately $460 million at that date.

On October 5, 2010, we completed the issuance and sale of $300 million in aggregate principal amount of our 4.97% Series A Senior Notes due October 5, 2020 (the “Series A Notes”) in a private placement. The Series A Notes bear interest at a rate of 4.97% per annum. We pay interest on the Series A Notes on April 5 and October 5 of each year. The Series A Notes will mature on October 5, 2020.

On June 14, 2012, we completed the issuance and sale of $300 million in aggregate principal amount of our 4.27% Series B Senior Notes due June 14, 2022 (the “Series B Notes”) in a private placement. The Series B Notes bear interest at a rate of 4.27% per annum. We pay interest on the Series B Notes on April 5 and October 5 of each year. The Series B Notes will mature on June 14, 2022.

The Series A Notes and Series B Notes are senior unsecured obligations which rank equally in right of payment with all of our other unsubordinated indebtedness. The Series A Notes and Series B Notes are guaranteed on a senior unsecured basis by each of our existing domestic subsidiaries other than immaterial subsidiaries.

The Series A Notes and Series B Notes are prepayable at our option, in whole or in part, provided that in the case of a partial prepayment, prepayment must be in an amount not less than 5% of the aggregate principal amount of the notes then outstanding, at any time and from time to time at 100% of the principal amount prepaid, plus accrued and unpaid interest to the prepayment date, plus a “make-whole” premium as specified in the note purchase agreements. We must offer to prepay the notes upon the occurrence of any change of control. In addition, we must offer to prepay the notes upon the occurrence of certain asset dispositions if the proceeds therefrom are not timely reinvested in productive assets. If any offer to prepay is accepted, the purchase price of each prepaid note is 100% of the principal amount thereof, plus accrued and unpaid interest thereon to the prepayment date.

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The respective note purchase agreements require compliance with two financial covenants. We must not permit our debt to capitalization ratio to exceed 50% at any time. The note purchase agreements generally define the debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the last day of the most recently ended fiscal quarter. We also must not permit the interest coverage ratio as of the last day of a fiscal quarter to be less than 2.50 to 1.00. The note purchase agreements generally define the interest coverage ratio as the ratio of EBITDA for the four prior fiscal quarters to interest charges for the same period. We were in compliance with these financial covenants as of March 31, 2013. We do not expect that the restrictions and covenants will impair, in any material respect, our ability to operate or react to opportunities that might arise.

Events of default under the note purchase agreements include failure to pay principal or interest when due, failure to comply with the financial and operational covenants, a cross default event, a judgment in excess of a threshold event, the guaranty agreement ceasing to be enforceable, the occurrence of certain ERISA events, a change of control event and bankruptcy and other insolvency events. If an event of default under a note purchase agreement occurs and is continuing, then holders of a majority in principal amount of the respective notes have the right to declare all the notes then-outstanding to be immediately due and payable. In addition, if we default in payments on any note, then until such defaults are cured, the holder thereof may declare all the notes held by it pursuant to the note purchase agreement to be immediately due and payable.

We believe that our liquidity as of March 31, 2013, which included approximately $351 million in working capital, and approximately $460 million available under our $500 million revolving credit facility, together with cash expected to be generated from operations, should provide us with sufficient ability to fund our current plans to build new equipment, make improvements to our existing equipment, service our debt and pay cash dividends. If we pursue opportunities for growth that require capital, we believe we would be able to satisfy these needs through a combination of working capital, cash flows from operating activities, borrowing capacity under our revolving credit facility or additional debt or equity financing. However, there can be no assurance that such capital will be available on reasonable terms, if at all.

Results of Operations

The following tables summarize operations by business segment for the three months ended March 31, 2013 and 2012:

Contract Drilling	2013		2012		% Change
	(Dollars in thousands)
Revenues	$	419,094	$	489,482		(14.4	)%
Direct operating costs	$	247,072	$	282,649		(12.6	)%
Selling, general and administrative	$	1,851	$	1,336		38.5	%
Depreciation and impairment	$	97,622	$	93,726		4.2	%
Operating income	$	72,549	$	111,771		(35.1	)%
Operating days		17,903		21,610		(17.2	)%
Average revenue per operating day	$	23.41	$	22.65		3.4	%
Average direct operating costs per operating day	$	13.80	$	13.08		5.5	%
Average rigs operating		199		237		(16.0	)%
Capital expenditures	$	134,383	$	200,607		(33.0	)%

Revenues and direct operating costs decreased in 2013 compared to 2012 as a result of fewer operating days. A greater number of APEX^® rigs working combined with fewer total rigs working caused an increase in the average revenue per operating day. We received a $2.9 million early termination payment for one rig that also caused an increase in the average revenue per operating day in 2013. Average direct operating costs per operating day increased in 2013 due primarily to higher labor and related costs. Capital expenditures were incurred in 2013 and 2012 to build new drilling rigs, to modify and upgrade our drilling rigs and to acquire additional related equipment such as top drives, drill pipe, drill collars, engines, fluid circulating systems, rig hoisting systems and safety enhancement equipment. Depreciation expense increased primarily as a result of capital expenditures.

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Pressure Pumping	2013		2012		% Change
	(Dollars in thousands)
Revenues	$	231,160	$	241,722		(4.4	)%
Direct operating costs	$	168,156	$	166,857		0.8	%
Selling, general and administrative	$	4,253	$	4,275		(0.5	)%
Depreciation and amortization	$	30,236	$	23,803		27.0	%
Operating income	$	28,515	$	46,787		(39.1	)%
Fracturing jobs		266		330		(19.4	)%
Other jobs		1,142		1,659		(31.2	)%
Total jobs		1,408		1,989		(29.2	)%
Average revenue per fracturing job	$	784.60	$	625.98		25.3	%
Average revenue per other job	$	19.66	$	21.19		(7.2	)%
Average revenue per total job	$	164.18	$	121.53		35.1	%
Average direct operating costs per total job	$	119.43	$	83.89		42.4	%
Capital expenditures	$	30,234	$	54,574		(44.6	)%

Our customers have increased their activities in the development of unconventional reservoirs resulting in an increase in larger multi-stage fracturing jobs associated therewith. We have added additional equipment through construction and acquisition to meet this demand and expand our area of operations. As a result, although total fracturing jobs have decreased, we have continued to experience an increase in the number of these larger multi-stage fracturing jobs as a proportion of the total fracturing jobs we performed. Average revenue per fracturing job increased primarily as a result of this increase in the number of larger multi-stage fracturing jobs in 2013 as compared to 2012. Average revenue per other job decreased as a result of a change in job mix. Average direct operating costs per total job increased primarily as a result of increased costs of materials, higher labor and related costs and higher repairs and maintenance costs. Depreciation and amortization expense increased in 2013 due to significant capital expenditures incurred in recent years to add capacity.

Oil and Natural Gas Production and Exploration	2013		2012		% Change
	(Dollars in thousands)
Revenues—Oil	$	15,395	$	13,813		11.5	%
Revenues – Natural gas and liquids	$	1,390	$	904		53.8	%
Revenues—Total	$	16,785	$	14,717		14.1	%
Direct operating costs	$	2,922	$	2,730		7.0	%
Depletion and impairment	$	7,622	$	4,469		70.6	%
Operating income	$	6,241	$	7,518		(17.0	)%
Capital expenditures	$	8,664	$	7,429		16.6	%

Total revenues increased primarily as a result of increased production of oil and higher average oil prices. Oil production increased due to the addition of new wells. Depletion and impairment expense in 2013 includes approximately $1.9 million of oil and natural gas property impairments compared to approximately $292,000 of oil and natural gas property impairments in 2012. Depletion expense increased approximately $1.5 million in 2013 compared to 2012 primarily due to increased oil production.

Corporate and Other	2013			2012		% Change
	(Dollars in thousands)
Selling, general and administrative	$	11,293		$	8,257		36.8	%
Depreciation	$	955		$	955		0.0	%
Net gain (loss) on asset disposals	$	(125	)	$	2,400		NA
Provision for bad debts	$	—		$	1,600		(100.0	)%
Interest income	$	173		$	54		220.4	%
Interest expense	$	6,766		$	4,582		47.7	%
Other income	$	19		$	55		(65.5	)%
Capital expenditures	$	880		$	793		11.0	%

Selling, general and administrative expense in the first quarter of 2012 included a reduction in personnel costs related to the final determination of payouts under the 2009 Performance Unit Awards upon the completion of the performance period. There was no similar reduction in the first quarter of 2013. Gains and losses on the disposal of assets are treated as part of our corporate activities because such transactions relate to corporate strategy decisions of our executive management group. A provision for bad debts was recorded in the first quarter of 2012; we determined that no provision was needed in the first quarter of 2013. Interest expense increased in 2013 due primarily to interest charges related to the $300 million of Series B Senior Notes issued and sold on June 14, 2012.

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Income Taxes

On January 1, 2010, we converted our Canadian operations from a Canadian branch to a controlled foreign corporation for federal income tax purposes. Because the statutory tax rates in Canada are lower than those in the United States, this transaction triggered a $5.1 million reduction in deferred tax liabilities, which is being amortized as a reduction to deferred income tax expense over the weighted average remaining useful life of the Canadian assets.

As a result of the above conversion, our Canadian assets are no longer directly subject to United States taxation, provided that the related unremitted earnings are permanently reinvested in Canada. Effective January 1, 2010, we have elected to permanently reinvest these unremitted earnings in Canada, and we intend to do so for the foreseeable future. As a result, no deferred United States federal or state income taxes have been provided on such unremitted foreign earnings, which totaled approximately $33.7 million as of March 31, 2013. The unrecognized deferred tax liability associated with these earnings was approximately $5.1 million, net of available foreign tax credits. This liability would be recognized if we received a dividend of these unremitted earnings.

Recently Issued Accounting Standards

In February 2013, the FASB issued an accounting standards update that requires additional disclosures regarding reclassifications out of accumulated other comprehensive income. This requirement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012, and became effective for us in the quarter ended March 31, 2013. The adoption of this update did not have a material impact on the disclosures included in our consolidated financial statements. We include in accumulated other comprehensive income the cumulative translation adjustment of our foreign subsidiary.

In February 2013, the FASB issued an accounting standards update to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the update is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The requirements in this update are effective during interim and annual periods beginning after December 15, 2013. The adoption of this update is not expected to have a material impact on our consolidated financial statements.

Volatility of Oil and Natural Gas Prices and its Impact on Operations and Financial Condition

Our revenue, profitability and cash flows are highly dependent upon prevailing prices for oil and natural gas and expectations about future prices. For many years, oil and natural gas prices and markets have been extremely volatile. Prices are affected by factors such as market supply and demand, international military, political and economic conditions, the ability of OPEC to set and maintain production and price targets, technical advances affecting energy consumption and the price and availability of alternative fuels. All of these factors are beyond our control. After experiencing low levels of activity in late 2008 through 2009, drilling activities increased in 2010 as did the prices for oil and natural gas. The increased drilling activity was largely attributed to increased development of unconventional oil and natural gas reservoirs and an improvement in the price of oil. Drilling for oil and liquids rich targets continued to increase in 2011 as oil averaged $94.86 per barrel for the year (WTI spot price as reported by the United States Energy Information Administration). Natural gas prices decreased in 2011 to an average of $4.00 per Mcf (Henry Hub spot price as reported by the United States Energy Information Administration). This decrease continued into 2012 where natural gas prices fell below $2.00 per Mcf in April and averaged $2.75 per Mcf for the year resulting in continued low levels of drilling activity for natural gas in 2012. The increase in drilling activity in oil rich basins absorbed some of the decrease in demand for natural gas drilling activities in 2012. During the first quarter of 2013, natural gas prices averaged $3.49 per Mcf and oil prices averaged $94.34 per barrel. Our average number of rigs operating remains well below the number of our available rigs. Construction of new land drilling rigs in the United States during the last decade has significantly contributed to excess capacity in total available drilling rigs. As a result of decreased drilling activity and excess capacity, our average number of rigs operating has declined from historic highs. We expect oil and natural gas prices to continue to be volatile and to affect our financial condition, operations and ability to access sources of capital. Low market prices for oil and natural gas would likely result in lower

24

demand for our drilling rigs and pressure pumping services and could adversely affect our operating results, financial condition and cash flows. Even during periods of high prices for oil and natural gas, companies exploring for oil and natural gas may cancel or curtail programs, or reduce their levels of capital expenditures for exploration and production for a variety of reasons, which could reduce demand for our drilling and pressure pumping services.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

We currently have exposure to interest rate market risk associated with any borrowings that we have under our revolving credit facility and term loan facility. Interest is paid on the outstanding principal amount of borrowings at a floating rate based on, at our election, LIBOR or a base rate. The margin on LIBOR loans ranges from 2.25% to 3.25% and the margin on base rate loans ranges from 1.25% to 2.25%, based on our debt to capitalization ratio. At March 31, 2013, the margin on LIBOR loans was 2.25% and the margin on base rate loans was 1.25%. As of March 31, 2013, we had no balances outstanding under our revolving credit facility and $97.5 million outstanding under our term loan facility at an interest rate of 2.625%. The interest rate on the borrowings outstanding under our credit facilities is variable and adjusts at each interest payment date based on our election of LIBOR or the base rate.

We conduct a portion of our business in Canadian dollars through our Canadian land-based drilling operations. The exchange rate between Canadian dollars and U.S. dollars has fluctuated during the last several years. If the value of the Canadian dollar against the U.S. dollar weakens, revenues and earnings of our Canadian operations will be reduced and the value of our Canadian net assets will decline when they are translated to U.S. dollars. This currency risk is not material to our results of operations or financial condition.

The carrying values of cash and cash equivalents, trade receivables and accounts payable approximate fair value due to the short-term maturity of these items.

ITEM 4. Controls and Procedures

Disclosure Controls and Procedures — We maintain disclosure controls and procedures (as such terms are defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act), designed to ensure that the information required to be disclosed in the reports that we file with the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our CEO and CFO, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of March 31, 2013.

Changes in Internal Control Over Financial Reporting —There were no changes in our internal control over financial reporting during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting, as defined in Rule 13a-15(f) under the Exchange Act.

PART II — OTHER INFORMATION

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

The table below sets forth the information with respect to purchases of our common stock made by us during the quarter ended March 31, 2013.

Period Covered	Total Number of  Shares Purchased		Average Price Paid per Share		Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in thousands)(1)
January 1-31, 2013		—	$	—		—	$	51,108
February 1-28, 2013		—	$	—		—	$	51,108
March 1-31, 2013 (2)		637,624	$	23.84		—	$	51,108
Total		637,624	$	23.84		—	$	51,108

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(1)

On July 26, 2012, we announced that our Board of Directors approved a stock buyback program authorizing purchases of up to $150 million of our common stock in open market or privately negotiated transactions.

(2)

We purchased 637,624 shares of treasury stock from employees during March 2013. These shares were purchased at fair market value upon the exercise of stock options to provide the employees with the funds necessary to pay the exercise price of the stock option and to satisfy payroll tax withholding obligations. The total purchase price for these shares was approximately $15.2 million. These purchases were made pursuant to the terms of the Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan and not pursuant to the stock buyback program.

ITEM 6. Exhibits

The following exhibits are filed herewith or incorporated by reference, as indicated:

3.1	Restated Certificate of Incorporation, as amended (filed August 9, 2004 as Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2004 and incorporated herein by reference).
3.2	Amendment to Restated Certificate of Incorporation, as amended (filed August 9, 2004 as Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2004 and incorporated herein by reference).
3.3	Second Amended and Restated Bylaws (filed August 6, 2007 as Exhibit 3.3 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007 and incorporated herein by reference).
31.1*	Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended.
31.2*	Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended.
32.1*	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 USC Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101 *	The following materials from Patterson-UTI Energy, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statement of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.

* filed herewith

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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 thereunto duly authorized.

PATTERSON-UTI ENERGY, INC.
By:	/s/ John E. Vollmer III
	John E. Vollmer III
	Senior Vice President – Corporate Development,
	Chief Financial Officer and Treasurer
	(Principal Financial and Accounting Officer and
	Duly Authorized Officer)

Date: May 1, 2013

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EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, William Andrew Hendricks, Jr., certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Patterson-UTI Energy, Inc.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ William Andrew Hendricks, Jr.

William Andrew Hendricks, Jr.

President and Chief Executive Officer

Date: May 1, 2013

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, John E. Vollmer III, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Patterson-UTI Energy, Inc.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ John E. Vollmer III

John E. Vollmer III

Senior Vice President — Corporate

Development, Chief Financial Officer

and Treasurer

Date: May 1, 2013

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

NOT FILED PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934

In connection with the quarterly report of Patterson-UTI Energy, Inc. (the “Company”) on Form 10-Q for the period ending March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), William Andrew Hendricks, Jr., Chief Executive Officer, and John E. Vollmer III, Chief Financial Officer, of the Company, each certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission upon request. The foregoing is being furnished solely pursuant to said Section 906 and Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and is not being filed as part of the Report or as a separate disclosure document.

/s/ William Andrew Hendricks, Jr.

William Andrew Hendricks, Jr.

Chief Executive Officer

May 1, 2013

/s/ John E. Vollmer III

John E. Vollmer III

Chief Financial Officer

May 1, 2013

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Stock-Settled Performance Units (Detail)	3 Months Ended
	Mar. 31, 2013
Performance Unit Awards 2012
Schedule of Share based Compensation Arrangements by Share based Payment Award, Performance Options [Line Items]
Target number of shares	192,000
Performance Unit Awards 2011
Schedule of Share based Compensation Arrangements by Share based Payment Award, Performance Options [Line Items]
Target number of shares	144,375
Performance Unit Awards 2010
Schedule of Share based Compensation Arrangements by Share based Payment Award, Performance Options [Line Items]
Target number of shares	178,750

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Schedule of Principal Repayment Requirements of Long Term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Long Term Debt Maturities Repayments Of Principal [Line Items]
2013	$ 5,000
2014	10,000
2015	12,500
2016	28,750
2017	41,250
Thereafter	600,000
Total	$ 697,500	$ 698,750

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Goodwill and Intangible Assets - Additional Information (Detail) (USD $)			1 Months Ended	3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Oct. 31, 2010 Non-compete Agreement	Mar. 31, 2013 Non-compete Agreement	Mar. 31, 2012 Non-compete Agreement	Mar. 31, 2013 Customer Relationships	Mar. 31, 2012 Customer Relationships
Goodwill and Intangible Assets Disclosure [Line Items]
Accumulated impairment losses	$ 0	$ 0
Contract term			3 years
Amortization period (in years)				3 years		7 years
Amortization expense				$ 117,000	$ 117,000	$ 911,000	$ 911,000

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Commitments, Contingencies and Other Matters - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013
Commitments and Contingencies Disclosure [Line Items]
Letters of credit, collateral for retrospective premiums and retained losses	$ 39,800,000
Commitments to purchase major equipment	128,000,000
Current obligation	35,000,000
Obligation for remainder of the year	7,200,000
Non Revolving Senior Secured Term Loan
Commitments and Contingencies Disclosure [Line Items]
Advance to non-affiliates	12,000,000
Notes receivable interest rate	5.00%
Notes receivable	11,800,000
Repayment of notes receivable	531,000
Notes receivable outstanding	$ 11,200,000

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Business Segments - Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013		Dec. 31, 2012
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 4,657,232		$ 4,556,911
Operating Segments | Contract Drilling
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	3,607,349		3,538,289
Operating Segments | Pressure Pumping
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	802,050		784,128
Operating Segments | Oil and Natural Gas
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	55,212		54,188
Corporate and other
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 192,621	[1]	$ 180,306	[1]

[1] Corporate and other assets primarily include cash on hand and certain deferred tax assets.

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Calculation of Basic and Diluted Net Income Per Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
BASIC EPS:
Net income	$ 56,230	$ 97,274
Adjust for income attributed to holders of non-vested restricted stock	(482)	(742)
Income attributed to common stockholders	55,748	96,532
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock	144,827	154,625
Basic net income per common share	$ 0.38	$ 0.62
DILUTED EPS:
Income attributed to common stockholders	55,748	96,532
Add incremental earnings related to potential common shares	6
Adjusted income attributed to common stockholders	$ 55,754	$ 96,532
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock	144,827	154,625
Add dilutive effect of potential common shares	1,956	776
Weighted average number of diluted common shares outstanding	146,783	155,401
Diluted net income per common share	$ 0.38	$ 0.62
Potentially dilutive securities excluded as anti-dilutive	1,874	3,229

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Stockholders' Equity - Additional Information (Detail) (USD $)	3 Months Ended				1 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013 Employees	Mar. 31, 2013 Stock Repurchase Plan	Jul. 25, 2012 Stock Repurchase Plan Maximum	Apr. 24, 2013 Dividend Declared Subsequent Event
Stockholders Equity Note [Line Items]
Dividend declaration date						Apr. 24, 2013
Dividend per share, declared						$ 0.05
Dividend payment date	Mar. 29, 2013	Mar. 30, 2012				Jun. 28, 2013
Dividend record date						Jun. 14, 2013
Amount approved for repurchases under stock buyback program				$ 51,100,000	$ 150,000,000
Treasury stock shares acquired			637,624	0
Purchase price for treasury stock acquired	$ 15,201,000		$ 15,200,000

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Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2013

Property and Equipment

Property and equipment consisted of the following at March 31, 2013 and December 31, 2012 (in thousands):

	March 31, 2013			December 31, 2012
Equipment	$	5,545,029		$	5,387,490
Oil and natural gas properties		164,824			156,834
Buildings		67,585			66,490
Land		11,899			10,413
		5,789,337			5,621,227
Less accumulated depreciation and depletion		(2,106,587	)		(2,005,844	)
Property and equipment, net	$	3,682,750		$	3,615,383

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Summary of Accrued Expenses (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Schedule of Accrued Liabilities [Line Items]
Salaries, wages, payroll taxes and benefits	$ 39,276	$ 55,430
Workers' compensation liability	66,755	68,441
Property, sales, use and other taxes	7,211	9,749
Insurance, other than workers' compensation	6,104	10,419
Accrued interest payable	14,518	7,664
Deferred revenue-current		1,523
Other	7,653	5,406
Accrued expenses	$ 141,517	$ 158,632

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Property and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Equipment	$ 5,545,029	$ 5,387,490
Oil and natural gas properties	164,824	156,834
Buildings	67,585	66,490
Land	11,899	10,413
Property, Plant and Equipment, Gross, Total	5,789,337	5,621,227
Less accumulated depreciation and depletion	(2,106,587)	(2,005,844)
Property and equipment, net	$ 3,682,750	$ 3,615,383

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Restricted Stock Unit Activity (Detail) (Restricted Stock Units (RSUs), USD $)	3 Months Ended
	Mar. 31, 2013
Restricted Stock Units (RSUs)
Shares
Outstanding at beginning of period	17,670
Granted
Vested
Forfeited
Outstanding at end of period	17,670
Weighted Average Grant Date Fair Value
Outstanding at beginning of period	$ 20.08
Granted
Vested
Forfeited
Outstanding at end of period	$ 20.08

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Changes to Company's Asset Retirement Obligations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Reconciliation of Changes in Asset Retirement Obligations [Line Items]
Balance at beginning of period	$ 4,422	$ 3,455
Liabilities incurred	71	106
Liabilities settled	(13)	(68)
Accretion expense	41	37
Revision in estimated costs of plugging oil and natural gas wells		550
Asset retirement obligation at end of period	$ 4,521	$ 4,080

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Goodwill by Operating Segment (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Goodwill [Line Items]
Beginning Balance	$ 153,809
Changes to goodwill
Ending Balance	153,809
Contract Drilling
Goodwill [Line Items]
Beginning Balance	86,234
Changes to goodwill
Ending Balance	86,234
Pressure Pumping
Goodwill [Line Items]
Beginning Balance	67,575
Changes to goodwill
Ending Balance	$ 67,575

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Consolidated Statements Of Cash Flows (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Interest expense, capitalized interest	$ 2,281	$ 1,968

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Business Segments - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2013 Segment
Segment Reporting Disclosure [Line Items]
Number of reportable business segments	3

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Asset Retirement Obligation (Tables)

3 Months Ended

Mar. 31, 2013

Changes to Company's Asset Retirement Obligations

The following table describes the changes to the Company’s asset retirement obligations during the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended March  31,
	2013			2012
Balance at beginning of year	$	4,422		$	3,455
Liabilities incurred		71			106
Liabilities settled		(13	)		(68	)
Accretion expense		41			37
Revision in estimated costs of plugging oil and natural gas wells		—			550
Asset retirement obligation at end of period	$	4,521		$	4,080

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Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2013

Accrued Expenses

Accrued expenses consisted of the following at March 31, 2013 and December 31, 2012 (in thousands):

	March 31, 2013		December 31, 2012
Salaries, wages, payroll taxes and benefits	$	39,276	$	55,430
Workers’ compensation liability		66,755		68,441
Property, sales, use and other taxes		7,211		9,749
Insurance, other than workers’ compensation		6,104		10,419
Accrued interest payable		14,518		7,664
Deferred revenue—current		—		1,523
Other		7,653		5,406
	$	141,517	$	158,632

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Cash Dividends (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Stockholders Equity Note [Line Items]
Cash dividends paid, date	Mar. 29, 2013	Mar. 30, 2012
Cash dividends paid, per share	$ 0.05	$ 0.05
Cash dividends paid	$ 7,312	$ 7,788

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Business Segments - Revenues (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Segment Reporting, Revenue Reconciling Item [Line Items]
Oil and natural gas	$ 16,785		$ 14,717
Revenues	667,039		745,921
Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Oil and natural gas	16,785		14,717
Revenues	668,178		747,142
Operating Segments | Contract Drilling
Segment Reporting, Revenue Reconciling Item [Line Items]
Oil and gas services	420,233		490,703
Operating Segments | Pressure Pumping
Segment Reporting, Revenue Reconciling Item [Line Items]
Oil and gas services	231,160		241,722
Intersegment Elimination
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ (1,139)	[1]	$ (1,221)	[1]

[1] Consists of contract drilling intercompany revenues for drilling services provided to the oil and natural gas exploration and production segment.

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Long Term Debt (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Principal Repayment Requirements of Long Term Debt

Presented below is a schedule of the principal repayment requirements of long-term debt by fiscal year as of March 31, 2013 (in thousands):

Year ending December 31,
2013	$	5,000
2014		10,000
2015		12,500
2016		28,750
2017		41,250
Thereafter		600,000
Total	$	697,500

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2013

Cash Dividends

The Company paid cash dividends during the three months ended March 31, 2012 and 2013 as follows:

2012:	Per Share		Total
			(in thousands)
Paid on March 30, 2012	$	0.05	$	7,788

2013:	Per Share		Total
			(in thousands)
Paid on March 29, 2013	$	0.05	$	7,312

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Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Cash flows from operating activities:
Net income	$ 56,230		$ 97,274
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, amortization and impairment	136,435		122,953
Provision for bad debts			1,600
Dry holes and abandonments	10		56
Deferred income tax expense	24,555		48,407
Stock-based compensation expense	5,903		5,458
Net (gain) loss on asset disposals	125	[1]	(2,400)	[1]
Changes in operating assets and liabilities:
Accounts receivable	(25,220)		(38,109)
Income taxes receivable/payable	1,267		5,807
Inventory and other assets	6,672		5,332
Accounts payable	21,385		30,418
Accrued expenses	(17,698)		(12,234)
Other liabilities	53		(897)
Net cash provided by operating activities	209,717		263,665
Cash flows from investing activities:
Purchase of property and equipment	(174,161)		(263,403)
Proceeds from disposal of assets	707		4,651
Net cash used in investing activities	(173,454)		(258,752)
Cash flows from financing activities:
Purchase of treasury stock	(15,201)		(15)
Dividends paid	(7,312)		(7,788)
Tax benefit related to stock-based compensation	2,737		166
Repayment of long-term debt	(1,250)		(2,500)
Proceeds from borrowing under revolving credit facility			54,500
Repayment of borrowing under revolving credit facility			(56,000)
Proceeds from exercise of stock options	18,622		195
Net cash used in financing activities	(2,404)		(11,442)
Effect of foreign exchange rate changes on cash	(551)		408
Net increase (decrease) in cash and cash equivalents	33,308		(6,121)
Cash and cash equivalents at beginning of period	110,723		23,946
Cash and cash equivalents at end of period	144,031		17,825
Net cash paid during the period for:
Interest, net of capitalized interest of $2,281 in 2013 and $1,968 in 2012			(364)
Income taxes	(3,543)		(1,390)
Supplemental investing and financing information:
Net increase in current liabilities for purchase of property and equipment	24,039		2,553
Net decrease in deposits on equipment purchases	$ 7,863		$ 1,900

[1] Net gains or losses associated with the disposal of assets relate to corporate strategy decisions of the executive management group. Accordingly, the related gains or losses have been separately presented and excluded from the results of specific segments.

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Fair Values of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Estimated Fair Value of Outstanding Debt Balances

The estimated fair value of the Company’s outstanding debt balances (including current portion) as of March 31, 2013 and December 31, 2012 is set forth below (in thousands):

	March 31, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
Borrowings under Credit Agreement:
Term loan facility	$	97,500	$	97,500	$	98,750	$	98,750
4.97% Series A Senior Notes		300,000		321,743		300,000		329,281
4.27% Series B Senior Notes		300,000		303,342		300,000		310,591
Total debt	$	697,500	$	722,585	$	698,750	$	738,622

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Fair Value of Stock Settled Performance Units (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Performance Unit Awards 2012
Schedule of Share based Compensation Arrangements by Share based Payment Award, Performance Options [Line Items]
Fair value at date of grant	$ 3,065
Performance Unit Awards 2011
Schedule of Share based Compensation Arrangements by Share based Payment Award, Performance Options [Line Items]
Fair value at date of grant	5,569
Performance Unit Awards 2010
Schedule of Share based Compensation Arrangements by Share based Payment Award, Performance Options [Line Items]
Fair value at date of grant	$ 3,117

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Long Term Debt - Additional Information (Detail) (USD $)	3 Months Ended			12 Months Ended	1 Months Ended						1 Months Ended							1 Months Ended						1 Months Ended		1 Months Ended		1 Months Ended				12 Months Ended		1 Months Ended
	Mar. 31, 2013	Sep. 30, 2012	Mar. 31, 2012	Dec. 31, 2010	Sep. 27, 2012 Credit Agreement LegalMatter	Sep. 27, 2012 Credit Agreement First Four Quarterly Installments	Sep. 27, 2012 Credit Agreement Subsequent Eight Quarterly Installments	Sep. 27, 2012 Credit Agreement Subsequent Four Quarterly Installments	Sep. 27, 2012 Credit Agreement Amount For The Final Four Quarterly Installments	Sep. 27, 2012 Credit Agreement Minimum Point	Sep. 27, 2012 Credit Agreement Maximum	Mar. 31, 2013 Credit Agreement LIBOR	Sep. 27, 2012 Credit Agreement LIBOR Minimum	Sep. 27, 2012 Credit Agreement LIBOR Maximum	Mar. 31, 2013 Credit Agreement Base Rate	Sep. 27, 2012 Credit Agreement Base Rate Minimum	Sep. 27, 2012 Credit Agreement Base Rate Maximum	Sep. 27, 2012 Credit Agreement Revolving Credit Facility	Mar. 31, 2013 Credit Agreement Revolving Credit Facility	Mar. 31, 2013 Credit Agreement Revolving Credit Facility Letter of Credit	Sep. 27, 2012 Credit Agreement Revolving Credit Facility Letter of Credit	Sep. 27, 2012 Credit Agreement Revolving Credit Facility Swing Line Facility	Sep. 27, 2012 Credit Agreement Revolving Credit Facility Term Loan	Sep. 27, 2012 Credit Agreement Term Loan Facility	Mar. 31, 2013 Credit Agreement Term Loan Facility	Oct. 05, 2010 Series A, Senior Notes, 4.97 Percent, Due October 5th 2020 LegalMatter	Oct. 05, 2010 Series A, Senior Notes, 4.97 Percent, Due October 5th 2020 Minimum Point	Oct. 05, 2010 Series A, Senior Notes, 4.97 Percent, Due October 5th 2020 Maximum	Oct. 05, 2010 Series A, Senior Notes, 4.97 Percent, Due October 5th 2020 Semi Annual Payment, First Payment	Oct. 05, 2010 Series A, Senior Notes, 4.97 Percent, Due October 5th 2020 Semi Annual Payment, Second Payment	Jun. 14, 2012 Series B, Senior Notes, 4.27 Percent, Due June 14th 2022 LegalMatter	Dec. 31, 2012 Series B, Senior Notes, 4.27 Percent, Due June 14th 2022	Jun. 14, 2012 Series B, Senior Notes, 4.27 Percent, Due June 14th 2022 Minimum Point	Jun. 14, 2012 Series B, Senior Notes, 4.27 Percent, Due June 14th 2022 Maximum	Jun. 14, 2012 Series B, Senior Notes, 4.27 Percent, Due June 14th 2022 Semi Annual Payment, First Payment	Jun. 14, 2012 Series B, Senior Notes, 4.27 Percent, Due June 14th 2022 Semi Annual Payment, Second Payment
Debt Disclosure [Line Items]
Current aggregate borrowing capacity																		$ 500,000,000			$ 150,000,000	$ 40,000,000	$ 100,000,000
Line of credit facility, frequency of payment and payment terms																								The term loan facility is payable in quarterly principal installments commencing December 27, 2012. The installment amounts vary from 1.25% of the original principal amount for each of the first four quarterly installments, 2.50% of the original principal amount for each of the subsequent eight quarterly installments, 5.00% of the original principal amount for the subsequent four quarterly installments and 13.75% of the original principal amount for the final four quarterly installments.
Line of credit facility, frequency of payments					Quarterly
Commencement date of principal payments					Dec. 27, 2012
Installment amounts percentage of the original principal amount						1.25%	2.50%	5.00%	13.75%
Aggregate amount by which the revolving credit facility can be increased																		100,000,000
Credit facility, maximum borrowing capacity					700,000,000
Debt maturity date																		Sep. 27, 2017								Oct. 05, 2020					Jun. 14, 2022
Applicable margin												2.25%	2.25%	3.25%	1.25%	1.25%	2.25%
Commitment fee payable to the lenders for the unused portion of the credit facility					0.50%
Financial covenant description					The Company must not permit its debt to capitalization ratio to exceed 45%. The Credit Agreement generally defines the debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the last day of the most recently ended fiscal quarter. The Company also must not permit the interest coverage ratio as of the last day of a fiscal quarter to be less than 3.00 to 1.00. The Credit Agreement generally defines the interest coverage ratio as the ratio of earnings before interest, taxes, depreciation and amortization (“EBITDA”) of the four prior fiscal quarters to interest charges for the same period. The Company was in compliance with these covenants at March 31, 2013.
Number of compliance covenants					2																					2					2
Debt to capitalization ratio, percentage the Company must not exceed at any time											45.00%																	50.00%						50.00%
Interest coverage ratio that the Company must exceed on the last day of the fiscal quarter										3.00																	2.50						2.50
Line of credit, amount outstanding																									97,500,000
Line of credit facility, interest rate																									2.625%
Unfunded letters of credit, amount outstanding	39,800,000																			39,800,000
Line of credit, available borrowing capacity																			460,000,000
Notes issuance date																										Oct. 05, 2010					Jun. 14, 2012
Long-term debt, aggregate principal amount																										300,000,000					300,000,000
Debt interest rate																										4.97%					4.27%
Interest pay date																													April 5	October 5					April 5	October 5
Description of the prepayment terms																										Notes are prepayable at the Company's option, in whole or in part, provided that in the case of a partial prepayment, prepayment must be in an amount not less than 5% of the aggregate principal amount of the notes then outstanding, at any time and from time to time at 100% of the principal amount prepaid, plus accrued and unpaid interest to the prepayment date					Notes are prepayable at the Company's option, in whole or in part, provided that in the case of a partial prepayment, prepayment must be in an amount not less than 5% of the aggregate principal amount of the notes then outstanding, at any time and from time to time at 100% of the principal amount prepaid, plus accrued and unpaid interest to the prepayment date
Prepayment terms, percent of principal before accrued and unpaid interest and "make-whole" premium																											100.00%						100.00%
Description of the acceptance terms																										If any offer to prepay is accepted, the purchase price of each prepaid note is 100% of the principal amount thereof, plus accrued and unpaid interest thereon to the prepayment date.					If any offer to prepay is accepted, the purchase price of each prepaid note is 100% of the principal amount thereof, plus accrued and unpaid interest thereon to the prepayment date.
Acceptance terms, percent of principal before accrued and unpaid interest																										100.00%					100.00%
Financial covenant description																										The Company must not permit its debt to capitalization ratio to exceed 50% at any time. The note purchase agreements generally define the debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the last day of the most recently ended fiscal quarter. The Company also must not permit the interest coverage ratio as of the last day of a fiscal quarter to be less than 2.50 to 1.00. The note purchase agreements generally define the interest coverage ratio as the ratio of EBITDA for the four prior fiscal quarters to interest charges for that same period. The Company was in compliance with these covenants at March 31, 2013.					The Company must not permit its debt to capitalization ratio to exceed 50% at any time. The note purchase agreements generally define the debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the last day of the most recently ended fiscal quarter. The Company also must not permit the interest coverage ratio as of the last day of a fiscal quarter to be less than 2.50 to 1.00. The note purchase agreements generally define the interest coverage ratio as the ratio of EBITDA for the four prior fiscal quarters to interest charges for that same period. The Company was in compliance with these covenants at March 31, 2013.
Debt issuance costs				10,800,000																												7,600,000
Interest expense on debt extinguishment		978,000
Interest expense related to amortization of debt issuance costs	$ 547,000		$ 604,000

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 144,031	$ 110,723
Accounts receivable, net of allowance for doubtful accounts of $3,582 and $3,513 at March 31, 2013 and December 31, 2012, respectively	491,230	465,517
Inventory	22,954	26,889
Deferred tax assets, net	42,505	52,959
Other	40,593	43,903
Total current assets	741,313	699,991
Property and equipment, net	3,682,750	3,615,383
Goodwill and intangible assets	170,435	171,463
Deposits on equipment purchases	35,913	43,776
Other	26,821	26,298
Total assets	4,657,232	4,556,911
Current liabilities:
Accounts payable	233,576	188,823
Federal and state income taxes payable	7,261	6,158
Accrued expenses	141,517	158,632
Current portion of long-term debt	7,500	6,250
Total current liabilities	389,854	359,863
Long-term debt	690,000	692,500
Deferred tax liabilities, net	871,403	857,302
Other	6,642	6,589
Total liabilities	1,957,899	1,916,254
Commitments and contingencies (see Note 9)
Stockholders' equity:
Preferred stock, par value $.01; authorized 1,000,000 shares, no shares issued
Common stock, par value $.01; authorized 300,000,000 shares with 185,212,330 and 184,059,900 issued and 146,427,968 and 145,913,162 outstanding at March 31, 2013 and December 31, 2012, respectively	1,852	1,841
Additional paid-in capital	890,809	863,558
Retained earnings	2,597,460	2,548,542
Accumulated other comprehensive income	19,464	21,767
Treasury stock, at cost, 38,784,362 shares and 38,146,738 shares at March 31, 2013 and December 31, 2012, respectively	(810,252)	(795,051)
Total stockholders' equity	2,699,333	2,640,657
Total liabilities and stockholders' equity	$ 4,657,232	$ 4,556,911

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Business Segments - Income (loss) from Continuing Operations Before Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	$ 94,932		$ 157,664
Net gain (loss) on asset disposals	(125)	[1]	2,400	[1]
Interest income	173		54
Interest expense	(6,766)		(4,582)
Other	19		55
Income before income taxes	88,358		153,191
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	107,305		166,076
Operating Segments | Contract Drilling
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	72,549		111,771
Operating Segments | Pressure Pumping
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	28,515		46,787
Operating Segments | Oil and Natural Gas
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	6,241		7,518
Corporate and other
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income (loss)	$ (12,248)		$ (10,812)

[1] Net gains or losses associated with the disposal of assets relate to corporate strategy decisions of the executive management group. Accordingly, the related gains or losses have been separately presented and excluded from the results of specific segments.

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Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Other comprehensive income (loss), taxes	$ 0	$ 0

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Estimated Fair Value of Outstanding Debt Balances (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying value of Debt	$ 697,500	$ 698,750
Fair value of Debt	722,585	738,622
Term Loan Facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying value of Debt	97,500	98,750
Fair value of Debt	97,500	98,750
Series A Senior Notes, 4.97 Percent
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying value of Debt	300,000	300,000
Fair value of Debt	321,743	329,281
Series B Senior Notes, 4.27 Percent
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying value of Debt	300,000	300,000
Fair value of Debt	$ 303,342	$ 310,591

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Stock Option Activity (Detail) (USD $)	3 Months Ended
	Mar. 31, 2013
Underlying Shares
Outstanding at beginning of period	7,827,195
Granted	60,000
Exercised	(1,150,000)
Cancelled
Expired
Outstanding at end of period	6,737,195
Exercisable at end of period	5,738,036
Weighted Average Exercise Price
Outstanding at beginning of period	$ 20.35
Granted	$ 18.63
Exercised	$ 16.19
Cancelled
Expired
Outstanding at end of period	$ 21.04
Exercisable at end of period	$ 21.49

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Recently Issued Accounting Standards

3 Months Ended

Mar. 31, 2013

Recently Issued Accounting Standards

13. Recently Issued Accounting Standards

In February 2013, the FASB issued an accounting standards update that requires additional disclosures regarding reclassifications out of accumulated other comprehensive income. This requirement is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012, and became effective for the Company in the quarter ended March 31, 2013. The adoption of this update did not have a material impact on the Company’s disclosures included in its consolidated financial statements.The Company includes in accumulated other comprehensive income the cumulative translation adjustment of its foreign subsidiary.

In February 2013, the FASB issued an accounting standards update to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the update is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The requirements in this update are effective during interim and annual periods beginning after December 15, 2013. The adoption of this update is not expected to have a material impact on the Company’s consolidated financial statements.

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Restricted Stock Activity (Detail) (Restricted Stock Awards, USD $)	3 Months Ended
	Mar. 31, 2013
Restricted Stock Awards
Shares
Outstanding at beginning of period	1,279,146
Granted	18,000
Vested	(56,668)
Forfeited	(15,570)
Outstanding at end of period	1,224,908
Weighted Average Grant Date Fair Value
Outstanding at beginning of period	$ 20.03
Granted	$ 18.63
Vested	$ 22.20
Forfeited	$ 19.68
Outstanding at end of period	$ 19.92

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Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2013

Weighted-Average Assumptions Used to Estimate Grant Date Fair Values for Stock Options Granted

Weighted-average assumptions used to estimate the grant date fair values for stock options granted for the three month periods ended March 31, 2013 and 2012 follow:

	Three Months Ended March  31,
	2013			2012
Volatility		46.19	%		48.72	%
Expected term (in years)		5.00			5.00
Dividend yield		1.07	%		1.00	%
Risk-free interest rate		0.72	%		0.83	%

Stock Option Activity

Stock option activity from January 1, 2013 to March 31, 2013 follows:

	Underlying Shares			Weighted Average Exercise Price
Outstanding at January 1, 2013		7,827,195		$	20.35
Granted		60,000		$	18.63
Exercised		(1,150,000	)	$	16.19
Cancelled		—		$	—
Expired		—		$	—
Outstanding at March 31, 2013		6,737,195		$	21.04
Exercisable at March 31, 2013		5,738,036		$	21.49

Restricted Stock Activity

Restricted stock activity from January 1, 2013 to March 31, 2013 follows:

	Shares			Weighted Average Grant Date Fair Value
Non-vested restricted stock outstanding at January 1, 2013		1,279,146		$	20.03
Granted		18,000		$	18.63
Vested		(56,668	)	$	22.20
Forfeited		(15,570	)	$	19.68
Non-vested restricted stock outstanding at March 31, 2013		1,224,908		$	19.92

Restricted Stock Unit Activity

Restricted stock unit activity from January 1, 2013 to March 31, 2013 follows:

	Shares		Weighted Average Grant Date Fair Value
Non-vested restricted stock units outstanding at January 1, 2013		17,670	$	20.08
Granted		—	$	—
Vested		—	$	—
Forfeited		—	$	—
Non-vested restricted stock units outstanding at March 31, 2013		17,670	$	20.08

Stock-Settled Performance Units

The total target number of shares with respect to the Stock-Settled Performance Units is set forth below:

	2012 Performance Unit Awards		2011 Performance Unit Awards		2010 Performance Unit Awards
Target number of shares		192,000		144,375		178,750

Fair value of Stock-Settled Performance Units

The fair value of the Stock-Settled Performance Units is set forth below (in thousands):

	2012 Performance Unit Awards		2011 Performance Unit Awards		2010 Performance Unit Awards
Fair value at date of grant	$	3,065	$	5,569	$	3,117

Compensation Expense Associated with Stock-Settled Performance Units

Compensation expense associated with the Stock-Settled Performance Units is shown below (in thousands):

	2012 Performance Unit Awards		2011 Performance Unit Awards		2010 Performance Unit Awards
Three months ended March 31, 2013	$	255	$	464	$	260
Three months ended March 31, 2012		NA	$	464	$	260

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Consolidated Statement Of Changes In Stockholders' Equity (USD $) In Thousands, except Share data	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Stock
Beginning Balance at Dec. 31, 2012	$ 2,640,657	$ 1,841	$ 863,558	$ 2,548,542	$ 21,767	$ (795,051)
Beginning Balance (in shares) at Dec. 31, 2012	184,059,900	184,060,000
Net income	56,230			56,230
Foreign currency translation adjustment	(2,303)				(2,303)
Issuance of restricted stock (in shares)		18,000
Issuance of restricted stock	0
Forfeitures of restricted stock (in shares)		(16,000)
Forfeitures of restricted stock	0
Exercise of stock options (in shares)	1,150,000	1,150,000
Exercise of stock options	18,622	11	18,611
Stock-based compensation	5,903		5,903
Tax benefit related to stock-based compensation	2,737		2,737
Payment of cash dividends	(7,312)			(7,312)
Purchase of treasury stock	(15,201)					(15,201)
Ending Balance at Mar. 31, 2013	$ 2,699,333	$ 1,852	$ 890,809	$ 2,597,460	$ 19,464	$ (810,252)
Ending Balance (in shares) at Mar. 31, 2013	185,212,330	185,212,000

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Accounts receivable, allowance for doubtful accounts	$ 3,582	$ 3,513
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	300,000,000	300,000,000
Common stock, issued	185,212,330	184,059,900
Common stock, outstanding	146,427,968	145,913,162
Treasury stock, shares	38,784,362	38,146,738

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Long Term Debt

3 Months Ended

Mar. 31, 2013

Long Term Debt

8. Long Term Debt

Credit Facilities - On September 27, 2012, the Company entered into a Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, N.A., as administrative agent, letter of credit issuer, swing line lender and lender, and each of the other lenders party thereto. The Credit Agreement is a committed senior unsecured credit facility that includes a revolving credit facility and a term loan facility.

The revolving credit facility permits aggregate borrowings of up to $500 million outstanding at any time. The revolving credit facility contains a letter of credit facility that is limited to $150 million and a swing line facility that is limited to $40 million, in each case outstanding at any time.

The term loan facility provides for a loan of $100 million, which was drawn on December 24, 2012. The term loan facility is payable in quarterly principal installments which commenced December 27, 2012. The installment amounts vary from 1.25% of the original principal amount for each of the first four quarterly installments, 2.50% of the original principal amount for each of the subsequent eight quarterly installments, 5.00% of the original principal amount for the subsequent four quarterly installments and 13.75% of the original principal amount for the final four quarterly installments.

Subject to customary conditions, the Company may request that the lenders’ aggregate commitments with respect to the revolving credit facility and/or the term loan facility be increased by up to $100 million, not to exceed total commitments of $700 million. The maturity date under the Credit Agreement is September 27, 2017 for both the revolving facility and the term facility.

Loans under the Credit Agreement bear interest by reference, at the Company’s election, to the LIBOR rate or base rate, provided, that swing line loans bear interest by reference only to the base rate. The applicable margin on LIBOR rate loans varies from 2.25% to 3.25% and the applicable margin on base rate loans varies from 1.25% to 2.25%, in each case determined based upon the Company’s debt to capitalization ratio. As of March 31, 2013, the applicable margin on LIBOR rate loans was 2.25% and the applicable margin on base rate loans was 1.25%. A letter of credit fee is payable by the Company equal to the applicable margin for LIBOR rate loans times the daily amount available to be drawn under outstanding letters of credit. The commitment fee rate payable to the lenders for the unused portion of the credit facility is 0.50%.

Each domestic subsidiary of the Company other than immaterial subsidiaries has unconditionally guaranteed all existing and future indebtedness and liabilities of the other guarantors and the Company arising under the Credit Agreement and other loan documents. Such guarantees also cover obligations of the Company and any subsidiary of the Company arising under any interest rate swap contract with any person while such person is a lender under the Credit Agreement.

The Credit Agreement requires compliance with two financial covenants. The Company must not permit its debt to capitalization ratio to exceed 45%. The Credit Agreement generally defines the debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the last day of the most recently ended fiscal quarter. The Company also must not permit the interest coverage ratio as of the last day of a fiscal quarter to be less than 3.00 to 1.00. The Credit Agreement generally defines the interest coverage ratio as the ratio of earnings before interest, taxes, depreciation and amortization (“EBITDA”) of the four prior fiscal quarters to interest charges for the same period. The Company was in compliance with these covenants at March 31, 2013. The Credit Agreement also contains customary representations, warranties and affirmative and negative covenants.

Events of default under the Credit Agreement include failure to pay principal or interest when due, failure to comply with the financial and operational covenants, as well as a cross default event, loan document enforceability event, change of control event and bankruptcy and other insolvency events. If an event of default occurs and is continuing, then a majority of the lenders have the right, among others, to (i) terminate the commitments under the Credit Agreement, (ii) accelerate and require the Company to repay all the outstanding amounts owed under any loan document (provided that in limited circumstances with respect to insolvency and bankruptcy of the Company, such acceleration is automatic), and (iii) require the Company to cash collateralize any outstanding letters of credit.

As of March 31, 2013, the Company had $97.5 million principal amount outstanding under the term loan facility at an interest rate of 2.625% and no amounts outstanding under the revolving credit facility. The Company had $39.8 million in letters of credit outstanding at March 31, 2013 and, as a result, had available borrowing capacity of approximately $460 million at that date.

Senior Notes – On October 5, 2010, the Company completed the issuance and sale of $300 million in aggregate principal amount of its 4.97% Series A Senior Notes due October 5, 2020 (the “Series A Notes”) in a private placement. The Series A Notes bear interest at a rate of 4.97% per annum. The Company will pay interest on the Series A Notes on April 5 and October 5 of each year. The Series A Notes will mature on October 5, 2020.

On June 14, 2012, the Company completed the issuance and sale of $300 million in aggregate principal amount of its 4.27% Series B Senior Notes due June 14, 2022 (the “Series B Notes”) in a private placement. The Series B Notes bear interest at a rate of 4.27% per annum. The Company will pay interest on the Series B Notes on April 5 and October 5 of each year. The Series B Notes will mature on June 14, 2022.

The Series A Notes and Series B Notes are senior unsecured obligations of the Company which rank equally in right of payment with all other unsubordinated indebtedness of the Company. The Series A Notes and Series B Notes are guaranteed on a senior unsecured basis by each of the existing domestic subsidiaries of the Company other than immaterial subsidiaries.

The Series A Notes and Series B Notes are prepayable at the Company’s option, in whole or in part, provided that in the case of a partial prepayment, prepayment must be in an amount not less than 5% of the aggregate principal amount of the notes then outstanding, at any time and from time to time at 100% of the principal amount prepaid, plus accrued and unpaid interest to the prepayment date, plus a “make-whole” premium as specified in the note purchase agreements. The Company must offer to prepay the notes upon the occurrence of any change of control. In addition, the Company must offer to prepay the notes upon the occurrence of certain asset dispositions if the proceeds therefrom are not timely reinvested in productive assets. If any offer to prepay is accepted, the purchase price of each prepaid note is 100% of the principal amount thereof, plus accrued and unpaid interest thereon to the prepayment date.

The respective note purchase agreements require compliance with two financial covenants. The Company must not permit its debt to capitalization ratio to exceed 50% at any time. The note purchase agreements generally define the debt to capitalization ratio as the ratio of (a) total borrowed money indebtedness to (b) the sum of such indebtedness plus consolidated net worth, with consolidated net worth determined as of the last day of the most recently ended fiscal quarter. The Company also must not permit the interest coverage ratio as of the last day of a fiscal quarter to be less than 2.50 to 1.00. The note purchase agreements generally define the interest coverage ratio as the ratio of EBITDA for the four prior fiscal quarters to interest charges for that same period. The Company was in compliance with these covenants at March 31, 2013.

Events of default under the note purchase agreements include failure to pay principal or interest when due, failure to comply with the financial and operational covenants, a cross default event, a judgment in excess of a threshold event, the guaranty agreement ceasing to be enforceable, the occurrence of certain ERISA events, a change of control event and bankruptcy and other insolvency events. If an event of default under the note purchase agreements occurs and is continuing, then holders of a majority in principal amount of the respective notes have the right to declare all the notes then-outstanding to be immediately due and payable. In addition, if the Company defaults in payments on any note, then until such defaults are cured, the holder thereof may declare all the notes held by it pursuant to the note purchase agreement to be immediately due and payable.

The Company incurred approximately $10.8 million in debt issuance costs during 2010 in connection with the previous credit agreement and the Series A Notes. During the third quarter of 2012, $978,000 of these costs were charged to interest expense due to the early termination of the previous credit agreement. The Company incurred approximately $7.6 million in debt issuance costs during 2012 in connection with the Series B Notes and the Credit Agreement. These costs were deferred and are recognized as interest expense over the term of the underlying debt. Interest expense related to the amortization of debt issuance costs was approximately $547,000 and $604,000 for the three months ended March 31, 2013 and 2012.

Presented below is a schedule of the principal repayment requirements of long-term debt by fiscal year as of March 31, 2013 (in thousands):

Year ending December 31,
2013	$	5,000
2014		10,000
2015		12,500
2016		28,750
2017		41,250
Thereafter		600,000
Total	$	697,500

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Document and Entity Information	3 Months Ended
	Mar. 31, 2013	Apr. 25, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Trading Symbol	PTEN
Entity Registrant Name	PATTERSON UTI ENERGY INC
Entity Central Index Key	0000889900
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		146,889,903

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Commitments, Contingencies and Other Matters

3 Months Ended

Mar. 31, 2013

Commitments, Contingencies and Other Matters

9. Commitments, Contingencies and Other Matters

As of March 31, 2013, the Company maintained letters of credit in the aggregate amount of $39.8 million for the benefit of various insurance companies as collateral for retrospective premiums and retained losses which could become payable under the terms of the underlying insurance contracts. These letters of credit expire annually at various times during the year and are typically renewed. As of March 31, 2013, no amounts had been drawn under the letters of credit.

As of March 31, 2013, the Company had commitments to purchase approximately $128 million of major equipment for its drilling and pressure pumping businesses.

The Company’s pressure pumping business has entered into agreements to purchase minimum quantities of proppants and chemicals from certain vendors. These agreements expire in 2016 and 2017. As of March 31, 2013, the remaining obligation under these agreements is approximately $35.0 million, of which materials with a total purchase price of approximately $7.2 million are expected to be delivered during the last three quarters of 2013. In the event that the required minimum quantities are not purchased during any contract year, the Company would be required to make a liquidated damages payment to the respective vendor for any shortfall.

In November of 2011, the Company’s pressure pumping business entered into an agreement with a proppant vendor to advance, on a non-revolving basis, up to $12.0 million to such vendor to finance the construction of certain processing facilities. This advance is secured by the underlying processing facilities and bears interest at an annual rate of 5.0%. Repayment of the advance is to be made through discounts applied to purchases from the vendor and repayment of all amounts advanced must be made no later than October 1, 2017. As of March 31, 2013, advances of approximately $11.8 million had been made under this agreement and repayments of approximately $531,000 had been received resulting in a balance outstanding of approximately $11.2 million.

The Company is party to various legal proceedings arising in the normal course of its business. The Company does not believe that the outcome of these proceedings, either individually or in the aggregate, will have a material adverse effect on its financial condition, results of operations or cash flows.

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Consolidated Statements Of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Operating revenues:
Oil and natural gas	$ 16,785		$ 14,717
Total operating revenues	667,039		745,921
Operating costs and expenses:
Contract drilling	247,072		282,649
Pressure pumping	168,156		166,857
Oil and natural gas	2,922		2,730
Depreciation, depletion, amortization and impairment	136,435		122,953
Selling, general and administrative	17,397		13,868
Net (gain) loss on asset disposals	125	[1]	(2,400)	[1]
Provision for bad debts			1,600
Total operating costs and expenses	572,107		588,257
Operating income	94,932		157,664
Other income (expense):
Interest income	173		54
Interest expense	(6,766)		(4,582)
Other	19		55
Total other expense	(6,574)		(4,473)
Income before income taxes	88,358		153,191
Income tax expense:
Current	7,573		7,510
Deferred	24,555		48,407
Total income tax expense	32,128		55,917
Net income	56,230		97,274
Net income per common share:
Basic	$ 0.38		$ 0.62
Diluted	$ 0.38		$ 0.62
Weighted average number of common shares outstanding:
Basic	144,827		154,625
Diluted	146,783		155,401
Cash dividends per common share	$ 0.05		$ 0.05
Contract Drilling
Operating revenues:
Oil and gas services	419,094		489,482
Pressure Pumping
Operating revenues:
Oil and gas services	$ 231,160		$ 241,722

[1] Net gains or losses associated with the disposal of assets relate to corporate strategy decisions of the executive management group. Accordingly, the related gains or losses have been separately presented and excluded from the results of specific segments.

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Property and Equipment

3 Months Ended

Mar. 31, 2013

Property and Equipment

3. Property and Equipment

Property and equipment consisted of the following at March 31, 2013 and December 31, 2012 (in thousands):

	March 31, 2013			December 31, 2012
Equipment	$	5,545,029		$	5,387,490
Oil and natural gas properties		164,824			156,834
Buildings		67,585			66,490
Land		11,899			10,413
		5,789,337			5,621,227
Less accumulated depreciation and depletion		(2,106,587	)		(2,005,844	)
Property and equipment, net	$	3,682,750		$	3,615,383

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Stock-based Compensation

3 Months Ended

Mar. 31, 2013

Stock-based Compensation

2. Stock-based Compensation

The Company uses share-based payments to compensate employees and non-employee directors. The Company recognizes the cost of share-based payments under the fair-value-based method. Share-based awards consist of equity instruments in the form of stock options, restricted stock or restricted stock units and have included service and, in certain cases, performance conditions. The Company’s share-based awards have also included both cash-settled and share-settled performance unit awards. Cash-settled performance unit awards are accounted for as liability awards. Share-settled performance unit awards are accounted for as equity awards. The Company issues shares of common stock when vested stock options are exercised, when restricted stock is granted and when restricted stock units and share-settled performance unit awards vest.

Stock Options. The Company estimates the grant date fair values of stock options using the Black-Scholes-Merton valuation model. Volatility assumptions are based on the historic volatility of the Company’s common stock over the most recent period equal to the expected term of the options as of the date the options are granted. The expected term assumptions are based on the Company’s experience with respect to employee stock option activity. Dividend yield assumptions are based on the expected dividends at the time the options are granted. The risk-free interest rate assumptions are determined by reference to United States Treasury yields. Weighted-average assumptions used to estimate the grant date fair values for stock options granted for the three month periods ended March 31, 2013 and 2012 follow:

	Three Months Ended March  31,
	2013			2012
Volatility		46.19	%		48.72	%
Expected term (in years)		5.00			5.00
Dividend yield		1.07	%		1.00	%
Risk-free interest rate		0.72	%		0.83	%

Stock option activity from January 1, 2013 to March 31, 2013 follows:

	Underlying Shares			Weighted Average Exercise Price
Outstanding at January 1, 2013		7,827,195		$	20.35
Granted		60,000		$	18.63
Exercised		(1,150,000	)	$	16.19
Cancelled		—		$	—
Expired		—		$	—
Outstanding at March 31, 2013		6,737,195		$	21.04
Exercisable at March 31, 2013		5,738,036		$	21.49

Restricted Stock. For all restricted stock awards to date, shares of common stock were issued when the awards were made. Non-vested shares are subject to forfeiture for failure to fulfill service conditions and, in certain cases, performance conditions. Non-forfeitable dividends are paid on non-vested shares of restricted stock. The Company uses the straight-line method to recognize periodic compensation cost over the vesting period.

Restricted stock activity from January 1, 2013 to March 31, 2013 follows:

	Shares			Weighted Average Grant Date Fair Value
Non-vested restricted stock outstanding at January 1, 2013		1,279,146		$	20.03
Granted		18,000		$	18.63
Vested		(56,668	)	$	22.20
Forfeited		(15,570	)	$	19.68
Non-vested restricted stock outstanding at March 31, 2013		1,224,908		$	19.92

Restricted Stock Units. For all restricted stock unit awards made to date, shares of common stock are not issued until the units vest. Restricted stock units are subject to forfeiture for failure to fulfill service conditions. Non-forfeitable cash dividend equivalents are paid on non-vested restricted stock units. The Company uses the straight-line method to recognize periodic compensation cost over the vesting period.

Restricted stock unit activity from January 1, 2013 to March 31, 2013 follows:

	Shares		Weighted Average Grant Date Fair Value
Non-vested restricted stock units outstanding at January 1, 2013		17,670	$	20.08
Granted		—	$	—
Vested		—	$	—
Forfeited		—	$	—
Non-vested restricted stock units outstanding at March 31, 2013		17,670	$	20.08

Performance Unit Awards. In 2010, 2011 and 2012, the Company granted stock-settled performance unit awards to certain executive officers (the “Stock-Settled Performance Units”). The Stock-Settled Performance Units provide for the recipients to receive a grant of shares of stock upon the achievement of certain performance goals established by the Compensation Committee during the performance period. The performance period for the Stock-Settled Performance Units is the three year period commencing on April 1 of the year of grant, but can extend for an additional two years in certain circumstances. The performance goals for the Stock-Settled Performance Units are tied to the Company’s total shareholder return for the performance period as compared to total shareholder return for a peer group determined by the Compensation Committee. These goals are considered to be market conditions under the relevant accounting standards and the market conditions were factored into the determination of the fair value of the performance units. Generally, the recipients will receive a target number of shares if the Company’s total shareholder return is positive and, when compared to the peer group, is at the 50^th percentile and two times the target if at the 75^th percentile or higher. If the Company’s total shareholder return is positive, and, when compared to the peer group, is at the 25^th percentile, the recipients will only receive one-half of the target number of shares. The grant of shares when achievement is between the 25^th and 75^th percentile will be determined on a pro-rata basis. The target number of shares with respect to the 2010 Stock-Settled Performance Units was 178,750. The performance period for the 2010 Stock-Settled Performance Units ended on March 31, 2013 and the Company’s total shareholder return was at the 93^rd percentile. In April 2013, 357,500 shares were issued to settle the 2010 Stock-Settled Performance Units.

The total target number of shares with respect to the Stock-Settled Performance Units is set forth below:

	2012 Performance Unit Awards		2011 Performance Unit Awards		2010 Performance Unit Awards
Target number of shares		192,000		144,375		178,750

Because the Stock-Settled Performance Units are stock-settled awards, they are accounted for as equity awards and measured at fair value on the date of grant using a Monte Carlo simulation model. The fair value of the Stock-Settled Performance Units is set forth below (in thousands):

	2012 Performance Unit Awards		2011 Performance Unit Awards		2010 Performance Unit Awards
Fair value at date of grant	$	3,065	$	5,569	$	3,117

These fair value amounts are charged to expense on a straight-line basis over the performance period. Compensation expense associated with the Stock-Settled Performance Units is shown below (in thousands):

	2012 Performance Unit Awards		2011 Performance Unit Awards		2010 Performance Unit Awards
Three months ended March 31, 2013	$	255	$	464	$	260
Three months ended March 31, 2012		NA	$	464	$	260

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Basis of Consolidation and Presentation (Tables)

3 Months Ended

Mar. 31, 2013

Calculation of Basic and Diluted Net Income Per Share

The following table presents information necessary to calculate net income per share for the three months ended March 31, 2013 and 2012 as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive (in thousands, except per share amounts):

	Three Months Ended March 31,
	2013			2012
BASIC EPS:
Net income	$	56,230		$	97,274
Adjust for income attributed to holders of non-vested restricted stock		(482	)		(742	)
Income attributed to common stockholders	$	55,748		$	96,532
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock		144,827			154,625
Basic net income per common share	$	0.38		$	0.62
DILUTED EPS:
Income attributed to common stockholders	$	55,748		$	96,532
Add incremental earnings related to potential common shares		6			—
Adjusted income attributed to common stockholders	$	55,754		$	96,532
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock		144,827			154,625
Add dilutive effect of potential common shares		1,956			776
Weighted average number of diluted common shares outstanding		146,783			155,401
Diluted net income per common share	$	0.38		$	0.62
Potentially dilutive securities excluded as anti-dilutive		1,874			3,229

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Stockholders' Equity

3 Months Ended

Mar. 31, 2013

Stockholders' Equity

10. Stockholders’ Equity

Cash Dividends—The Company paid cash dividends during the three months ended March 31, 2012 and 2013 as follows:

2012:	Per Share		Total
			(in thousands)
Paid on March 30, 2012	$	0.05	$	7,788

2013:	Per Share		Total
			(in thousands)
Paid on March 29, 2013	$	0.05	$	7,312

On April 24, 2013, the Company’s Board of Directors approved a cash dividend on its common stock in the amount of $0.05 per share to be paid on June 28, 2013 to holders of record as of June 14, 2013. The amount and timing of all future dividend payments, if any, are subject to the discretion of the Board of Directors and will depend upon business conditions, results of operations, financial condition, terms of the Company’s credit facilities and other factors.

On July 25, 2012, the Company’s Board of Directors approved a stock buyback program authorizing purchases of up to $150 million of the Company’s common stock in open market or privately negotiated transactions. During the three months ended March 31, 2013, no shares were purchased under the stock buyback program. As of March 31, 2013, the Company has remaining authorization to purchase approximately $51.1 million of the Company’s outstanding common stock under the stock buyback program. Shares purchased under the buyback programs are accounted for as treasury stock.

The Company purchased 637,624 shares of treasury stock from employees during the three months ended March 31, 2013. These shares were purchased at fair market value upon the exercise of stock options to provide the employees with the funds necessary to pay the exercise price of the stock option and to satisfy payroll tax withholding obligations. The total purchase price for these shares was approximately $15.2 million. These purchases were made pursuant to the terms of the Patterson-UTI Energy, Inc. 2005 Long-Term Incentive Plan and not pursuant to the stock buyback program.

Accumulated other comprehensive income is composed solely of amounts related to foreign currency translation.

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Accrued Expenses

3 Months Ended

Mar. 31, 2013

Accrued Expenses

6. Accrued Expenses

Accrued expenses consisted of the following at March 31, 2013 and December 31, 2012 (in thousands):

	March 31, 2013		December 31, 2012
Salaries, wages, payroll taxes and benefits	$	39,276	$	55,430
Workers’ compensation liability		66,755		68,441
Property, sales, use and other taxes		7,211		9,749
Insurance, other than workers’ compensation		6,104		10,419
Accrued interest payable		14,518		7,664
Deferred revenue—current		—		1,523
Other		7,653		5,406
	$	141,517	$	158,632

Deferred revenue was recorded in the fourth quarter of 2010 in the purchase price allocation associated with the Company’s acquisition of a pressure pumping business. The deferred revenue related to out-of-market pricing agreements that were in place at the acquired business at the time of the acquisition. The deferred revenue was recognized as pressure pumping revenue over the term of the pricing agreements, which have now expired. Deferred revenue of approximately $1.5 million and $1.8 million was recognized in the three months ended March 31, 2013 and 2012, respectively, related to these pricing agreements.

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Fair Values of Financial Instruments - Additional Information (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Series A, Senior Notes, 4.97 Percent, Due October 5th 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Current market rates used in measuring fair value	3.49%	3.36%
Series B, Senior Notes, 4.27 Percent, Due June 14th 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Current market rates used in measuring fair value	3.85%	3.70%

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Business Segments

3 Months Ended

Mar. 31, 2013

Business Segments

4. Business Segments

The Company’s revenues, operating profits and identifiable assets are primarily attributable to three business segments: (i) contract drilling of oil and natural gas wells, (ii) pressure pumping services and (iii) the investment, on a non-operating working interest basis, in oil and natural gas properties. Each of these segments represents a distinct type of business. These segments have separate management teams which report to the Company’s chief operating decision maker. The results of operations in these segments are regularly reviewed by the chief operating decision maker for purposes of determining resource allocation and assessing performance. Separate financial data for each of our business segments is provided in the table below (in thousands):

	Three Months Ended March 31,
	2013			2012
Revenues:
Contract drilling	$	420,233		$	490,703
Pressure pumping		231,160			241,722
Oil and natural gas		16,785			14,717
Total segment revenues		668,178			747,142
Elimination of intercompany revenues (a)		(1,139	)		(1,221	)
Total revenues	$	667,039		$	745,921
Income before income taxes:
Contract drilling	$	72,549		$	111,771
Pressure pumping		28,515			46,787
Oil and natural gas		6,241			7,518
		107,305			166,076
Corporate and other		(12,248	)		(10,812	)
Net gain (loss) on asset disposals (b)		(125	)		2,400
Interest income		173			54
Interest expense		(6,766	)		(4,582	)
Other		19			55
Income before income taxes	$	88,358		$	153,191

	March 31, 2013		December 31, 2012
Identifiable assets:
Contract drilling	$	3,607,349	$	3,538,289
Pressure pumping		802,050		784,128
Oil and natural gas		55,212		54,188
Corporate and other (c)		192,621		180,306
Total assets	$	4,657,232	$	4,556,911

(a)	Consists of contract drilling intercompany revenues for drilling services provided to the oil and natural gas exploration and production segment.
(b)	Net gains or losses associated with the disposal of assets relate to corporate strategy decisions of the executive management group. Accordingly, the related gains or losses have been separately presented and excluded from the results of specific segments.
(c)	Corporate and other assets primarily include cash on hand and certain deferred tax assets.

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Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets

5. Goodwill and Intangible Assets

Goodwill — Goodwill by operating segment as of March 31, 2013 and changes for the three months then ended are as follows (in thousands):

	Contract Drilling		Pressure Pumping		Total
Balance December 31, 2012	$	86,234	$	67,575	$	153,809
Changes to goodwill		—		—		—
Balance March 31, 2013	$	86,234	$	67,575	$	153,809

There were no accumulated impairment losses as of March 31, 2013 or December 31, 2012.

Goodwill is evaluated at least annually on December 31, or when circumstances require, to determine if the fair value of recorded goodwill has decreased below its carrying value. For purposes of impairment testing, goodwill is evaluated at the reporting unit level. The Company’s reporting units for impairment testing have been determined to be its operating segments. The Company first determines whether it is more likely than not that the fair value of a reporting unit is less than its carrying value after considering qualitative, market and other factors. If so, then goodwill impairment is determined using a two-step impairment test. The first step is to compare the fair value of an entity’s reporting units to the respective carrying value of those reporting units. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed whereby the fair value of the reporting unit is allocated to its identifiable tangible and intangible assets and liabilities with any remaining fair value representing the fair value of goodwill. If this resulting fair value of goodwill is less than the carrying value of goodwill, an impairment loss would be recognized in the amount of the shortfall.

Intangible Assets — Intangible assets were recorded in the pressure pumping operating segment in connection with the fourth quarter 2010 acquisition of the assets of a pressure pumping business. As a result of the purchase price allocation, the Company recorded intangible assets related to a non-compete agreement and the customer relationships acquired. These intangible assets were recorded at fair value on the date of acquisition.

The non-compete agreement has a term of three years from October 1, 2010. The value of this agreement was estimated using a with and without scenario where cash flows were projected through the term of the agreement assuming the agreement is in place and compared to cash flows assuming the non-compete agreement was not in place. The intangible asset associated with the non-compete agreement is being amortized on a straight-line basis over the three-year term of the agreement. Amortization expense of approximately $117,000 was recorded in the three months ended March 31, 2013 and 2012.

The value of the customer relationships was estimated using a multi-period excess earnings model to determine the present value of the projected cash flows associated with the customers in place at the time of the acquisition and taking into account a contributory asset charge. The resulting intangible asset is being amortized on a straight-line basis over seven years. Amortization expense of approximately $911,000 was recorded in the three months ended March 31, 2013 and 2012 associated with customer relationships.

The following table presents the gross carrying amount and accumulated amortization of intangible assets as of March 31, 2013 and December 31, 2012 (in thousands):

	March 31, 2013							December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Non-compete agreement	$	1,400	$	(1,167	)	$	233	$	1,400	$	(1,050	)	$	350
Customer relationships		25,500		(9,107	)		16,393		25,500		(8,196	)		17,304
Total intangible assets	$	26,900	$	(10,274	)	$	16,626	$	26,900	$	(9,246	)	$	17,654

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Asset Retirement Obligation

3 Months Ended

Mar. 31, 2013

Asset Retirement Obligation

7. Asset Retirement Obligation

The Company records a liability for the estimated costs to be incurred in connection with the abandonment of oil and natural gas properties in the future. This liability is included in the caption “other” in the liabilities section of the consolidated balance sheet. The following table describes the changes to the Company’s asset retirement obligations during the three months ended March 31, 2013 and 2012 (in thousands):

	Three Months Ended March  31,
	2013			2012
Balance at beginning of year	$	4,422		$	3,455
Liabilities incurred		71			106
Liabilities settled		(13	)		(68	)
Accretion expense		41			37
Revision in estimated costs of plugging oil and natural gas wells		—			550
Asset retirement obligation at end of period	$	4,521		$	4,080

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Weighted-Average Assumptions Used to Estimate Grant Date Fair Values for Stock Options Granted (Detail) (Stock Options)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Stock Options
Share based Compensation Arrangement by Share based Payment Award, Fair Value Assumptions, Method Used [Line Items]
Volatility	46.19%	48.72%
Expected term (in years)	5 years	5 years
Dividend yield	1.07%	1.00%
Risk-free interest rate	0.72%	0.83%

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Accrued Expenses - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Schedule of Accrued Liabilities [Line Items]
Deferred revenue recognized	$ 1.5	$ 1.8

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Fair Values of Financial Instruments

3 Months Ended

Mar. 31, 2013

Fair Values of Financial Instruments

12. Fair Values of Financial Instruments

The carrying values of cash and cash equivalents, trade receivables and accounts payable approximate fair value due to the short-term maturity of these items. These fair value estimates are considered Level 1 fair value estimates in the fair value hierarchy of fair value accounting.

The estimated fair value of the Company’s outstanding debt balances (including current portion) as of March 31, 2013 and December 31, 2012 is set forth below (in thousands):

	March 31, 2013				December 31, 2012
	Carrying Value		Fair Value		Carrying Value		Fair Value
Borrowings under Credit Agreement:
Term loan facility	$	97,500	$	97,500	$	98,750	$	98,750
4.97% Series A Senior Notes		300,000		321,743		300,000		329,281
4.27% Series B Senior Notes		300,000		303,342		300,000		310,591
Total debt	$	697,500	$	722,585	$	698,750	$	738,622

The carrying values of the balances outstanding under the term loan approximate their fair values as this instrument has a floating interest rate. The fair value of the 4.97% Series A Senior Notes and the 4.27% Series B Senior Notes at March 31, 2013 and December 31, 2012 are based on discounted cash flows associated with the respective notes using current market rates of interest at those respective dates. For the 4.97% Series A Senior Notes, the current market rates used in measuring this fair value were 3.49% at March 31, 2013 and 3.36% at December 31, 2012. For the 4.27% Series B Senior Notes, the current market rate used in measuring this fair value was 3.85% at March 31, 2013 and 3.70% at December 31, 2012. These fair value estimates are based on observable market inputs and are considered Level 2 fair value estimates in the fair value hierarchy of fair value accounting.

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Business Segments (Tables)

3 Months Ended

Mar. 31, 2013

Business Segments - Financial Information

Separate financial data for each of our business segments is provided in the table below (in thousands):

	Three Months Ended March 31,
	2013			2012
Revenues:
Contract drilling	$	420,233		$	490,703
Pressure pumping		231,160			241,722
Oil and natural gas		16,785			14,717
Total segment revenues		668,178			747,142
Elimination of intercompany revenues (a)		(1,139	)		(1,221	)
Total revenues	$	667,039		$	745,921
Income before income taxes:
Contract drilling	$	72,549		$	111,771
Pressure pumping		28,515			46,787
Oil and natural gas		6,241			7,518
		107,305			166,076
Corporate and other		(12,248	)		(10,812	)
Net gain (loss) on asset disposals (b)		(125	)		2,400
Interest income		173			54
Interest expense		(6,766	)		(4,582	)
Other		19			55
Income before income taxes	$	88,358		$	153,191

	March 31, 2013		December 31, 2012
Identifiable assets:
Contract drilling	$	3,607,349	$	3,538,289
Pressure pumping		802,050		784,128
Oil and natural gas		55,212		54,188
Corporate and other (c)		192,621		180,306
Total assets	$	4,657,232	$	4,556,911

(a)	Consists of contract drilling intercompany revenues for drilling services provided to the oil and natural gas exploration and production segment.
(b)	Net gains or losses associated with the disposal of assets relate to corporate strategy decisions of the executive management group. Accordingly, the related gains or losses have been separately presented and excluded from the results of specific segments.
(c)	Corporate and other assets primarily include cash on hand and certain deferred tax assets.

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Gross Carrying Amount and Accumulated Amortization of Intangible Assets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 26,900	$ 26,900
Accumulated Amortization	(10,274)	(9,246)
Net Carrying Amount	16,626	17,654
Non-compete Agreement
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,400	1,400
Accumulated Amortization	(1,167)	(1,050)
Net Carrying Amount	233	350
Customer Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	25,500	25,500
Accumulated Amortization	(9,107)	(8,196)
Net Carrying Amount	$ 16,393	$ 17,304

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Compensation Expense Associated with Stock-Settled Performance Units (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Performance Unit Awards 2012
Unrecognized Share Based Compensation Expense [Line Items]
Stock-based compensation expense associated with Stock-Settled Performance Units	$ 255
Performance Unit Awards 2011
Unrecognized Share Based Compensation Expense [Line Items]
Stock-based compensation expense associated with Stock-Settled Performance Units	464	464
Performance Unit Awards 2010
Unrecognized Share Based Compensation Expense [Line Items]
Stock-based compensation expense associated with Stock-Settled Performance Units	$ 260	$ 260

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Consolidated Statements Of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Net income	$ 56,230	$ 97,274
Other comprehensive income (loss), net of taxes of $0 and $0, respectively:
Foreign currency translation adjustment	(2,303)	2,554
Total comprehensive income	$ 53,927	$ 99,828

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Basis of Consolidation and Presentation

3 Months Ended

Mar. 31, 2013

Basis of Consolidation and Presentation

1. Basis of Consolidation and Presentation

The unaudited interim consolidated financial statements include the accounts of Patterson-UTI Energy, Inc. (the “Company”) and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. Except for wholly-owned subsidiaries, the Company has no controlling financial interests in any entity which would require consolidation.

The unaudited interim consolidated financial statements have been prepared by management of the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations, although the Company believes the disclosures included either on the face of the financial statements or herein are sufficient to make the information presented not misleading. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair statement of the information in conformity with accounting principles generally accepted in the United States of America have been included. The Unaudited Consolidated Balance Sheet as of December 31, 2012, as presented herein, was derived from the audited consolidated balance sheet of the Company, but does not include all disclosures required by accounting principles generally accepted in the United States of America. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012. The results of operations for the three months ended March 31, 2013 are not necessarily indicative of the results to be expected for the full year.

The U.S. dollar is the functional currency for all of the Company’s operations except for its Canadian operations, which uses the Canadian dollar as its functional currency. The effects of exchange rate changes are reflected in accumulated other comprehensive income, which is a separate component of stockholders’ equity.

The carrying values of cash and cash equivalents, trade receivables and accounts payable approximate fair value.

The Company provides a dual presentation of its net income per common share in its unaudited consolidated statements of operations: Basic net income per common share (“Basic EPS”) and diluted net income per common share (“Diluted EPS”).

Basic EPS excludes dilution and is computed by first allocating earnings between common stockholders and holders of non-vested shares of restricted stock. Basic EPS is then determined by dividing the earnings attributable to common stockholders by the weighted average number of common shares outstanding during the period, excluding non-vested shares of restricted stock.

Diluted EPS is based on the weighted average number of common shares outstanding plus the dilutive effect of potential common shares, including stock options, non-vested shares of restricted stock and restricted stock units. The dilutive effect of stock options and restricted stock units is determined using the treasury stock method. The dilutive effect of non-vested shares of restricted stock is based on the more dilutive of the treasury stock method or the two-class method, assuming a reallocation of undistributed earnings to common stockholders after considering the dilutive effect of potential common shares other than non-vested shares of restricted stock.

The following table presents information necessary to calculate net income per share for the three months ended March 31, 2013 and 2012 as well as potentially dilutive securities excluded from the weighted average number of diluted common shares outstanding because their inclusion would have been anti-dilutive (in thousands, except per share amounts):

	Three Months Ended March 31,
	2013			2012
BASIC EPS:
Net income	$	56,230		$	97,274
Adjust for income attributed to holders of non-vested restricted stock		(482	)		(742	)
Income attributed to common stockholders	$	55,748		$	96,532
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock		144,827			154,625
Basic net income per common share	$	0.38		$	0.62
DILUTED EPS:
Income attributed to common stockholders	$	55,748		$	96,532
Add incremental earnings related to potential common shares		6			—
Adjusted income attributed to common stockholders	$	55,754		$	96,532
Weighted average number of common shares outstanding, excluding non-vested shares of restricted stock		144,827			154,625
Add dilutive effect of potential common shares		1,956			776
Weighted average number of diluted common shares outstanding		146,783			155,401
Diluted net income per common share	$	0.38		$	0.62
Potentially dilutive securities excluded as anti-dilutive		1,874			3,229

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended
	Jan. 01, 2010	Mar. 31, 2013
Income Taxes [Line Items]
Reduction in deferred tax liabilities due to statutory tax rates in Canada being lower than those in the United States	$ (5.1)
Deferred tax liabilities that have not been provided on such unremitted foreign earnings for United States Federal or state income taxes		33.7
Unrecognized deferred tax liability associated with undistributed foreign earnings		$ 5.1

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2013

Goodwill by Operating Segment

Goodwill — Goodwill by operating segment as of March 31, 2013 and changes for the three months then ended are as follows (in thousands):

	Contract Drilling		Pressure Pumping		Total
Balance December 31, 2012	$	86,234	$	67,575	$	153,809
Changes to goodwill		—		—		—
Balance March 31, 2013	$	86,234	$	67,575	$	153,809

Gross Carrying Amount and Accumulated Amortization of Intangible Assets

The following table presents the gross carrying amount and accumulated amortization of intangible assets as of March 31, 2013 and December 31, 2012 (in thousands):

	March 31, 2013							December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Non-compete agreement	$	1,400	$	(1,167	)	$	233	$	1,400	$	(1,050	)	$	350
Customer relationships		25,500		(9,107	)		16,393		25,500		(8,196	)		17,304
Total intangible assets	$	26,900	$	(10,274	)	$	16,626	$	26,900	$	(9,246	)	$	17,654

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Stock-based Compensation - Additional Information (Detail) (Performance Unit Awards 2010)	3 Months Ended	1 Months Ended
	Mar. 31, 2013	Apr. 30, 2013 Scenario, Forecast
Compensation Related Costs Share Based Payments Disclosure [Line Items]
Performance period	3 years
Award description	Generally, the recipients will receive a target number of shares if the Company's total shareholder return is positive and, when compared to the peer group, is at the 50thpercentile and two times the target if at the 75thpercentile or higher.
Base number of shares	178,750
Shares issued		357,500

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Income Taxes

3 Months Ended

Mar. 31, 2013

Income Taxes

11. Income Taxes

On January 1, 2010, the Company converted its Canadian operations from a Canadian branch to a controlled foreign corporation for Federal income tax purposes. Because the statutory tax rates in Canada are lower than those in the United States, this transaction triggered a $5.1 million reduction in the Company’s deferred tax liabilities, which is being amortized as a reduction to deferred income tax expense over the weighted average remaining useful life of the Canadian assets.

As a result of the above conversion, the Company’s Canadian assets are no longer directly subject to United States taxation, provided that the related unremitted earnings are permanently reinvested in Canada. Effective January 1, 2010, the Company has elected to permanently reinvest these unremitted earnings in Canada, and intends to do so for the foreseeable future. As a result, no deferred United States federal or state income taxes have been provided on such unremitted foreign earnings, which totaled approximately $33.7 million as of March 31, 2013. The unrecognized deferred tax liability associated with these earnings was approximately $5.1 million, net of available foreign tax credits. This liability would be recognized if the Company received a dividend of these unremitted earnings.