Patterson-UTI Energy Inc. (NASDAQ:PTEN) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 26, 2018 • 10:00 am ET

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Patterson-UTI Energy Inc. (NASDAQ:PTEN) Q1 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good morning. My name is Jamie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Patterson-UTI Energy, Inc. First Quarter 2018 Earnings Conference Call. (Operator Instructions) Mike Drickamer, Vice President of Investor Relations, you may begin your conference.

Executive
Mike Drickamer

Thank you, Jamie. Good morning, and on behalf of Patterson-UTI Energy, I'd like to welcome you to today's conference call to discuss the results of the three months ended March 31, 2018. Participating in today's call will be Mark Siegel, Chairman; Andy Hendricks, Chief Executive Officer; and Andy Smith, Chief Financial Officer.

A quick reminder that statements made in this conference call that state the company's or management's plans, intentions, beliefs, expectations or predictions for the future are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to risks and uncertainties as disclosed in the company's Annual Report on Form 10-K and other filings with the SEC.

These risks and uncertainties could cause the company's actual results to differ materially from those suggested in such forward-looking statements or what the company expects. The company undertakes no obligation to publicly update or revise any forward-looking statement. The company's SEC filings may be obtained by contacting the company or the SEC and are available through the company's website and through the SEC's EDGAR system.

Statements made in this conference call include non-GAAP financial measures. The required reconciliations to GAAP financial measures are included on our website, www.patenergy.com, and in the company's press release issued prior to this conference call.

And now, it's my pleasure to turn the call over to Mark Siegel for some opening remarks. Mark?

Executive
Mark S. Siegel

Thanks Mike. Good morning, and welcome to Patterson-UTI's conference call for the first quarter of 2018. We are pleased that you're able to join us today.

This morning, I'll turn the call over to Andy Smith who will review the financial results for the quarter ended March 31. He will then turn the call over to Andy Hendricks, who will share some comments on our operational highlights as well as our outlook. After Andy's comments, I will provide some closing remarks before turning the call over to questions. Andy?

Executive
C. Andrew Smith

Thanks, Mark, and good morning. As set forth in our earnings press release issued this morning, we reported a net loss of $34.4 million, or $0.16 per share on revenues of $809 million. Our operational results were largely in line with our expectations. However, the financial results were negatively impacted by a non-cash valuation allowance recorded against certain deferred tax assets and larger-than-expected permanent book versus tax differences, which combined to result in a small book tax expense for the quarter. Despite these book adjustments, our expectation is still that we will have a negligible amount of cash taxes paid in 2018.

Adjusted EBITDA for the first quarter of 2018 was $188 million. Cash flow during