Patterson-UTI 1Q earnings hurt by job postponements
HOUSTON—Patterson-UTI Energy Inc. on Thursday said net income dropped as bad weather postponed a number of drilling operations in Appalachia.
Earnings declined to $77.4 million, or 50 cents per share, from $115.8 million, or 73 cents per share.
Revenue slipped to $504.6 million from $547.1 million.
Analysts surveyed by Thomson Financial had forecast earnings of 50 cents per share on revenue of $503 million.
Average revenue per operating day for the first three months of 2008 was $18,900, compared to $19,250 for the final three months of 2007.
The company, which provides drilling services to oil and gas companies operating in Texas, New Mexico, Pennsylvania and other states, said a number of jobs in Appalachia were postponed during the quarter "by wet locations that resulted from a lack of consistently cold weather."
Like other drillers, the company noted a recent pickup in North American activity. Noting a recent increase in natural gas prices, Mark S. Siegel, Patterson-UTI's chairman, said, "if natural gas prices remain at current levels, we expect to see the activation of additional rigs and an increase in the number of wells drilled."
