Patterson-UTI Energy Inc. (NASDAQ:PTEN) Q2 2019 Earnings Conference Call Transcript

Jul 25, 2019 • 10:00 am ET

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Patterson-UTI Energy Inc. (NASDAQ:PTEN) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning. My name is Bonita, and I will be your conference operator today. At this time, I will like to welcome everyone to the Patterson-UTI Energy Second Quarter 2019 Earnings Call. [Operator Instructions] I will now like to turn the call over to Mike Drickamer. Sir, please continue.

Executive
James Michael Drickamer

Thank you, Bonita. 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 and six months ended June 30, 2019.

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 and 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 adjusted to such forward-looking statements for 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 second quarter of 2019. We are pleased that you can join us today. This morning, I will turn the call over to Andy Smith, who will review the financial results for the quarter ended June 30. 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.

Executive
William A. Hendricks

Thanks, Mark. As set forth in our earnings press release issued this morning, for the second quarter, we reported a net loss of $49.4 million or $0.24 per share, which includes certain charges totaling $16.3 million pretax or $13.5 million after-tax. Excluding these charges, the net loss for the quarter would have been $35.9 million or $0.17 per share. Included in these charges is $3.6 million of bad debt expense, first time we've recognized bad debt expense since 2012 and a charge of $12.7 million to reduce the carrying value of deposit placed in 2017 on future sand purchases.

As you may remember, in 2017, the sand market was much tighter than it