Patterson-UTI Energy Inc. (NASDAQ:PTEN) Q3 2019 Earnings Conference Call - Final Transcript

Oct 24, 2019 • 10:00 am ET

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Patterson-UTI Energy Inc. (NASDAQ:PTEN) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to Patterson-UTI Energy Third Quarter 2019 Earnings Conference Call. [Operator instructions]

I would now like to hand the conference over to your speaker today, Mike Drickamer, Vice President, Investor Relations. Thank you. Please go ahead.

Executive
Mike Drickamer

Thank you, Mariama. 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 nine months ended September 30, 2019. Participating in today's call will be Mark Siegel, Executive 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 US 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 and 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 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 third 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 September 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
C. Andrew Smith

Thanks, Mark, and good morning. As set forth in our earnings press release issued this morning, for the third quarter, we reported a net loss of $262 million or $1.31 per share, which included charges totaling $260 million pre-tax or $209 million after-tax. Excluding these charges, the net loss for the third quarter would have been $52.9 million or $0.27 per share.

I'd like to provide some additional information to help you better understand these charges. They're primarily driven by the current market environment and, in particular, the fact that we do not have visibility to a major upturn in the near term. Included in our depreciation, depletion, amortization and impairment expense is a $203 million