UDRL » Topics » 2009 SECOND QUARTER RESULTS

This excerpt taken from the UDRL 8-K filed Nov 2, 2009.

2009 THIRD QUARTER RESULTS

FORT WORTH, TX – November 2, 2009 – Union Drilling, Inc. (NASDAQ: UDRL) announced today financial and operating results for the three and nine months ended September 30, 2009.

Revenues for the third quarter of 2009 were $35.2 million compared to $82.4 million in the third quarter of 2008. Union Drilling reported a net loss of $4.0 million for the quarter, or $0.17 per share, compared to net income of $5.9 million, or $0.27 per diluted share, during the third quarter of 2008.

EBITDA for the third quarter of 2009 totaled $6.8 million compared to $22.6 million reported in the same period last year. For additional information regarding EBITDA as a non-GAAP financial measure, please refer to the disclosures contained at the end of this release.

Christopher D. Strong, Union Drilling’s President and Chief Executive Officer, commented, “Union Drilling continues to operate as efficiently as possible given the challenging industry environment. We have aggressively cut costs, enabling the Company to generate positive cash flow and pay down debt. As a result, I’m pleased to report that our debt-to-capital ratio was below 5% as of September 30th. Operationally, utilization appears to have bottomed in July, and we expect it to continue to rise in the fourth quarter. However, the current pricing environment means that an increase in utilization is unlikely to produce any near-term increase in earnings.”

This excerpt taken from the UDRL 8-K filed Aug 3, 2009.

2009 SECOND QUARTER RESULTS

FORT WORTH, TX – August 3, 2009 – Union Drilling, Inc. (NASDAQ: UDRL) announced today financial and operating results for the three and six months ended June 30, 2009.

Revenues for the second quarter of 2009 were $38.9 million compared to $75.4 million in the second quarter of 2008. Union Drilling reported a net loss of $4.9 million for the quarter, or $0.24 per share, compared to net income of $3.4 million, or $0.15 per diluted share, during the second quarter of 2008. Second quarter 2009 results include a $1.6 million, or $0.06 per diluted share, non-cash charge for the impairment of assets.

EBITDA for the second quarter of 2009 totaled $7.3 million compared to $17.4 million reported in the same period last year. The Company’s calculation of EBITDA excludes the non-cash impairment charge. For additional information regarding EBITDA as a non-GAAP financial measure, please refer to the disclosures contained at the end of this release.

During the quarter, Union Drilling completed a 3 million share (at a price of $8.25 per share) stock offering that generated proceeds of approximately $23.2 million net of fees.

Christopher D. Strong, Union Drilling’s President and Chief Executive Officer, commented, “As expected, the second quarter was quite challenging for Union Drilling and the entire industry. Our smaller rigs in Appalachia did not experience their typical seasonal uptick, and activity in Texas and the Arkoma basin remained subdued. In this environment, we have successfully reduced operating expenses at nearly the same rate as revenues have fallen. We also significantly reduced our total debt-to-total capital ratio to about 10 percent as of June 30th as a result of our equity offering and reduced capital expenditures during the quarter. While dialogue is picking up with current and potential customers about rig needs for programs in development, I do not expect the third quarter to show significant improvement compared to the second quarter.”


This excerpt taken from the UDRL 8-K filed Apr 30, 2009.

2009 FIRST QUARTER RESULTS

FORT WORTH, TX – April 30, 2009 – Union Drilling, Inc. (NASDAQ: UDRL) announced today financial and operating results for the three months ended March 31, 2009.

Revenues for the first quarter of 2009 were $54.3 million compared to $64.1 million in the first quarter of 2008. Union Drilling reported a net loss of $271,000 for the quarter, or $0.01 per share, compared to net income of $2.1 million, or $0.10 per diluted share, during the first quarter of 2008. First quarter 2009 results include a non-cash charge for the impairment of one drilling rig totaling $1.3 million, or $0.06 per share.

EBITDA for the first quarter of 2009 totaled $11.9 million compared to $14.1 million reported in the same period last year. The Company’s calculation of EBITDA excludes the non-cash impairment charge. For additional information regarding EBITDA as a non-GAAP financial measure, please refer to the disclosures contained at the end of this release.

As previously announced, the Company repurchased approximately 300,000 shares of its common stock at the beginning of the quarter to conclude its two million share repurchase authorization. Share repurchase expenditures during the first quarter totaled $1.6 million.

Christopher D. Strong, Union Drilling’s President and Chief Executive Officer, commented, “The drilling industry started the new year poorly and grew progressively worse throughout the first quarter. We’ve aggressively cut costs in an effort to keep pace with declining revenues. As a result, we maintained a steady EBITDA margin compared to the first quarter of 2008 despite a 15% decrease in revenues.

“We expect results early in the second quarter to be a near-term bottom for Union Drilling. May and June will benefit from the contribution of our new rigs as well as a firming of utilization and earnings in Appalachia as the weather improves. We are in a solid financial


position and do not expect to experience any liquidity problems, even if industry conditions do not improve until early 2010. The balance on our revolving credit facility has not exceeded $50 million and the final payments on new rigs are behind us.”

This excerpt taken from the UDRL 8-K filed Oct 30, 2008.

2008 THIRD QUARTER RESULTS

FORT WORTH, Texas – October 30, 2008 – Union Drilling, Inc. (NASDAQ: UDRL) announced today financial and operating results for the third quarter ended September 30, 2008.

Revenues for the third quarter of 2008 were $82.4 million, an increase of 7% compared to revenues of $76.9 million in the third quarter of 2007. Net income in the third quarter of 2008 was $5.9 million, or $0.27 per diluted share, a 36% decline compared to net income of $9.3 million, or $0.42 per diluted share, during the third quarter of 2007. EBITDA for the third quarter of 2008 decreased 14% to $22.6 million compared to $26.3 million reported in the same period last year. For additional information regarding EBITDA as a non-GAAP financial measure, please refer to the disclosures contained at the end of this release.

Earnings were adversely affected by an increase in general and administrative expenses during the quarter which included a $1.3 million increase in the provision for doubtful accounts. Results for the quarter also included a $1.2 million pre-tax gain on disposal of assets in the third quarter of 2008, compared to a $200,000 gain in the third quarter of 2007.

Christopher D. Strong, Union Drilling’s President and Chief Executive Officer, commented, “We’re pleased with the steady improvement we’ve seen throughout 2008. In the third quarter we produced record revenues and saw a significant increase in drilling margin and earnings compared to the previous three quarters. All three of our geographic operating divisions experienced strong utilization during the quarter. We added two rigs in the Marcellus Shale during the quarter, contributing an average of a month and a half each to the quarter’s results. These rigs replaced two older, lower margin rigs in our fleet-wide rig count.


“Many experts are anticipating an industry slowdown over the next several quarters. I believe that our particular markets, term contract coverage and minimal leverage should provide some insulation from the effects of a downturn. It’s typically the smaller, lower-end rigs that get released first when drilling activity slows. Over the past year, we have added several new rigs and upgraded numerous existing rigs. Substantially all of these capital expenditures have been associated with new term contracts or contract extensions with additional dayrate to provide an attractive return on the incremental capital. Also, several of our rigs that were delivered in 2006 and 2007 will continue to be under term contract in 2009. In addition, we have a track record of maintaining a conservative balance sheet and I’m convinced that this helped us secure the recent extension of our revolving line of credit into 2012.

“Going forward, we will continue to have a disciplined approach to the deployment of capital and will remain focused on opportunities that create long-term value for our shareholders. Given the significant decline in our share price over the last few months, share repurchases are a distinct possibility.”

This excerpt taken from the UDRL 8-K filed Jul 31, 2008.

2008 SECOND QUARTER RESULTS

FORT WORTH, Texas – July 31, 2008 – Union Drilling, Inc. (NASDAQ: UDRL) announced today financial and operating results for the second quarter ended June 30, 2008.

Revenues for the second quarter of 2008 were $75.4 million, an increase of 2% compared to revenues of $74.2 million in the second quarter of 2007. Net income in the second quarter of 2008 was $3.4 million, or $0.15 per diluted share, a 63% decline compared to net income of $9.2 million, or $0.42 per diluted share, during the second quarter of 2007. EBITDA for the second quarter of 2008 decreased 32% to $17.4 million compared to $25.5 million reported in the same period last year. For additional information regarding EBITDA as a non-GAAP financial measure, please refer to the disclosures contained at the end of this release.

Results for the quarter were negatively impacted by a $1 million loss on disposal of assets in the second quarter of 2008, compared to a $1 million gain in the second quarter of 2007.

Christopher D. Strong, Union Drilling’s President and Chief Executive Officer, stated, “Second quarter results were mixed. We’re pleased with the turnaround in rig utilization and revenue compared to the previous two quarters, but rising costs for materials, supplies and labor cut into our margins. Increased competition in the market made it difficult to pass those costs on to customers through higher dayrates.

“Looking forward, we are encouraged by the increased demand for drilling services in each of our core areas. This presents an opportunity to increase earnings through investments in new equipment and improvements to our existing fleet. We continue to be focused on upgrading our rigs and transitioning our employees to newer, larger equipment designed for long-reach horizontal shale drilling. In addition to the upgrades and two Marcellus Shale rigs previously announced, we recently purchased a 1,000 horsepower rig that is working under a term contract


in the Barnett Shale and are ordering two new DC electric rigs, each of which will be on two-year contracts in the Fayetteville Shale upon their delivery at the end of 2008 or beginning of 2009.”

This excerpt taken from the UDRL 8-K filed Apr 30, 2008.

FIRST QUARTER RESULTS

FT. WORTH, TX – April 30, 2008 – Union Drilling, Inc. (NASDAQ: UDRL) announced today financial and operating results for the first quarter ended March 31, 2008.

Revenues for the first quarter of 2008 were $64.1 million, a decrease of 9% compared to revenues of $70.5 million in the first quarter of 2007. Net income in the first quarter of 2008 was $2.1 million, or $0.10 per diluted share, a 75% decline compared to net income of $8.5 million, or $0.39 per diluted share, during the first quarter of 2007. EBITDA for the first quarter of 2008 decreased 41% to $14.1 million compared to $23.9 million reported in the same period last year. For additional information regarding EBITDA as a non-GAAP financial measure, please refer to the disclosures contained at the end of this release.

Christopher D. Strong, Union Drilling’s President and Chief Executive Officer, stated, “First quarter results were primarily impacted by the same issues we faced during the fourth quarter of 2007. Specifically, utilization was down significantly due to weather issues in Appalachia and reduced demand for certain of our smaller rigs across the fleet. While weather was more of an issue for us than in the prior two mild winters, natural gas storage has returned to normal levels and shoulder season gas prices are providing the impetus for increased drilling activity.

“Despite two consecutive challenging quarters for our Company, I am upbeat about our outlook. Based upon customer inquiries for rigs and our fleet utilization, it appears that February was a ‘bottom’ for us. We experienced a moderate increase in utilization in March, and preliminary operating statistics for April indicate that this trend is continuing. If the period of low utilization turns out to have been short-lived, the decision not to implement widespread layoffs will benefit the company going forward. As I look toward the remainder of 2008 and


into 2009, we are going to be more aggressive in the deployment of capital to meet customer demands. We have ordered four new 1,000 horsepower drawworks and two new derricks to upgrade the capacity of several existing rigs and we recently purchased a 1,000 horsepower portable rig that was built in 2007 for work in the Marcellus Shale play in Pennsylvania. It is very fortuitous that there is rapid growth in deep horizontal drilling near or below areas where we have large, well-trained labor forces drilling shallower wells with smaller equipment. We have opportunities, both in the Fayetteville and Marcellus Shale plays, to transition our people to larger, purpose-built rigs as these plays take off.”

This excerpt taken from the UDRL 8-K filed Aug 2, 2007.

SECOND QUARTER RESULTS

Company reports diluted EPS of $0.42 on revenues of $74.2 million

FT. WORTH, TX – August 1, 2007 – Union Drilling, Inc. (NASDAQ: UDRL) announced today financial and operating results for the quarter and six months ended June 30, 2007.

Revenues for the second quarter of 2007 were $74.2 million, up 26% compared to revenues of $58.8 million in the second quarter of 2006. Net income in the second quarter of 2007 was $9.2 million, or $0.42 per diluted share, versus net income of $6.5 million, or $0.30 per diluted share, during the second quarter of 2006. EBITDA for the second quarter of 2007 was $25.5 million compared to $16.5 million reported in the same period last year. For additional information regarding EBITDA as a non-GAAP financial measure, please refer to the disclosures contained at the end of this release.

Christopher D. Strong, Union Drilling’s President and Chief Executive Officer, commented, “We are very pleased with this quarter and the new records that we have achieved in revenues, margin, and EBITDA. We maintained consistent average dayrates across most of our fleet with only a slight decline in utilization compared to the first quarter. While repricing some of our rigs in the Barnett Shale resulted in moderately lower dayrates, this was more than offset by a full quarter’s contribution from our three Ideal rigs that were delivered during the first quarter. Going forward, instability in the natural gas market is clearly a concern for our business, but so far in the third quarter, we have not seen a decline in drilling activity in our markets.”

 

 


Operating Statistics

The Company’s average revenue per revenue day was $16,641 for the second quarter of 2007 compared to $13,444 for the second quarter of 2006. Revenue days totaled 4,459 days compared to 4,375 days for the same period last year. Drilling margins totaled $31.4 million, or 42% of revenues, for the second quarter of 2007 versus $21.3 million, or 36% of revenues, in the second quarter of 2006. For additional information regarding drilling margin as a non-GAAP financial measure, please refer to the disclosures contained at the end of this release. Average marketed rig utilization for the second quarter was 69.0%, down from 76.1% in the same period last year.

Year-to-Date Results

For the six months ended June 30, 2007, Union Drilling reported net income of $17.7 million, or $0.81 per diluted share, on revenues of $144.7 million, compared to net income of $13.4 million, or $0.62 per diluted share, on revenues of $115.4 million for the same period of 2006. This represents 25% year-to-date growth in total sales and 32% year-to-date growth in profit compared to 2006. EBITDA for the first half of 2007 was $49.4 million compared to $33.5 million reported in the same period last year.

Drilling margin for the first six months increased to $60.6 million, or 42% of revenues, compared to $42.9 million, or 37% of revenues last year. The Company totaled 8,803 revenue days on 69.8% utilization for the first half of 2007 versus 8,699 revenue days on 76.5% utilization for the first half of 2006. The year-over-year reduction in utilization was most pronounced in the Company’s Arkoma Basin operations where low gas prices led to program curtailments by smaller operators. The Barnett Shale operations experienced some decline as well. New rig deliveries led to more intermittent demand for some of the Company’s lower horsepower rigs in this market. Revenue and drilling margin averaged $16,441 and $6,888 respectively per revenue day in the first six months of 2007 compared to $13,265 and $4,935 during the same period in 2006.

Conference Call

Union Drilling’s management team will be holding a conference call on Thursday, August 2, 2007, at 11:00 a.m. eastern time. To participate in the call, dial (303) 262-2130 at least ten minutes before the conference call begins and ask for the Union Drilling conference call. To listen to the live call on the internet, please visit Union Drilling’s web site at least

 

 


fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live call, a telephonic replay will be available through August 9, 2007 and may be accessed by calling (303) 590-3000 and using the pass code 11092919#. Also, an archive of the webcast will be available after the call for a period of 60 days on the “Investor Relations” section of the Company’s website at www.uniondrilling.com.

About Union Drilling

Union Drilling, Inc., headquartered in Ft. Worth, Texas, provides contract land drilling services and equipment, primarily to natural gas producers, in the United States. Union Drilling currently owns 71 marketed rigs and specializes in unconventional drilling techniques.

UDRL-E

This press release contains various forward-looking statements and information that are based on management’s belief as well as assumptions made by and information currently available to management. Forward-looking information includes statements regarding the Company’s anticipated growth, demand from the Company’s customers, capital spending by oil and gas companies and the Company’s expectations regarding its new rigs and the U. S. land drilling sector. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including, among other matters: general and regional economic conditions and industry trends; the continued strength or weakness of the contract land drilling industry in the geographic areas where the Company operates; decisions about onshore exploration and development projects to be made by oil and gas companies; the highly competitive nature of the contract land drilling business; the Company’s future financial performance, including availability, terms and deployment of capital; the continued availability of qualified personnel; and changes in governmental regulations, including those relating to the environment. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. These risks, as well as others, are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission, including the Company’s 10-K.

- Tables to follow -

 

 


This excerpt taken from the UDRL 8-K filed May 14, 2007.

FIRST QUARTER RESULTS

 

Company reports diluted EPS of $0.39 on revenues of $70.5 million

FT. WORTH, TX – May 3, 2007 – Union Drilling, Inc. (NASDAQ: UDRL) announced today financial and operating results for the three months ended March 31, 2007.

Revenues for the first quarter of 2007 were $70.5 million, up 25% compared to revenues of $56.6 million in the first quarter of 2006. EBITDA for the first quarter of 2007 was $23.9 million, compared to $17.0 million reported in the same period last year. For additional information regarding EBITDA as a non-GAAP financial measure, please refer to the disclosures contained at the end of this release. Net income in the first quarter of 2007 was $8.5 million, or $0.39 per diluted share, versus net income of $7.0 million, or $0.32 per diluted share, during the first quarter of 2006.

Christopher D. Strong, Union Drilling’s President and Chief Executive Officer, stated, “In the first quarter, results from the Company’s Texas and Appalachian divisions were mostly in line with our expectations. In Texas, we received the last three of our six Ideal rigs during the first quarter with the final rig delivered at the end of March. In the Appalachian Basin, after a very dry and mild start to 2007, the region reverted to a more typical pattern of significant snow and rainfall at the end of the first quarter and into April. In spite of these challenging conditions and mostly due to increased activity in the area, rig utilization was actually slightly higher than it was in the first quarter of 2006 when the weather was much more favorable. On a sequential basis, average rig margin per day increased in both divisions over the fourth quarter of 2006.

“Results of operations in the Arkoma Basin were significantly below our expectations. Some of our smaller, privately held customers curtailed their programs and were probably waiting for more clarity on end of winter natural gas storage and shoulder season pricing.

 


Overall, utilization in this division was significantly below the first quarter of 2006 and the prior quarter. While pricing did not decline, margins fell sequentially as long-term variable costs often become fixed during short periods of off hire. Early second quarter contracts and revenue days have picked up, so the worst of this poor performance in the Arkoma Basin appears to be behind us.

“Looking forward, we’re seeing some pricing weakness emerging in the Barnett Shale as the rig supply continues to grow. In the Appalachian division, utilization will increase heading into the drier summer months after some of the weather related delays that persisted through April diminish. By the end of the second quarter, there should be three more rigs running in this market compared to last year with higher average rates as well. Arkoma Basin activity is expected to pick up, although we still need to place one of the rigs that was moved into the Fayetteville Shale play from the Rockies and we have two rigs temporarily down for maintenance.”

Operating Statistics

The Company’s average revenue per revenue day was $16,237 for the first quarter of 2007 compared to $13,085 for the first quarter of 2006. Revenue days totaled 4,344 days, compared to 4,324 days for the same period last year. Drilling margins totaled $29.3 million, or 42% of revenues, for the first quarter of 2007, versus $21.6 million, or 38% of revenues, in the first quarter of 2006. For additional information regarding drilling margin as a non-GAAP financial measure, please refer to the disclosures contained at the end of this release. Average marketed rig utilization for the first quarter was 70.5%, down from 77.0% in the same period last year.

Conference Call

Union Drilling’s management team will be holding a conference call on Friday, May 4, 2007, at 9:30 a.m. eastern time. To participate in the call, dial (303) 262-2140 at least ten minutes before the conference call begins and ask for the Union Drilling conference call. To listen to the live call on the internet, please visit Union Drilling’s web site at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live call, a telephonic replay will be available through May 11, 2007 and may be accessed by calling (303) 590-3000 and using the pass code 11088677#. Also, an archive of the webcast

 


will be available after the call for a period of 60 days on the “Investor Relations” section of the Company’s website at www.uniondrilling.com.

About Union Drilling

Union Drilling, Inc., headquartered in Ft. Worth, Texas, provides contract land drilling services and equipment, primarily to natural gas producers, in the United States. Union Drilling currently owns 77 rigs and specializes in unconventional drilling techniques.

UDRL-E

This press release contains various forward-looking statements and information that are based on management’s belief as well as assumptions made by and information currently available to management. Forward-looking information includes statements regarding the Company’s anticipated growth, demand from the Company’s customers, capital spending by oil and gas companies and the Company’s expectations regarding its new rigs and the U. S. land drilling sector. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including, among other matters: general and regional economic conditions and industry trends; the continued strength or weakness of the contract land drilling industry in the geographic areas where the Company operates; decisions about onshore exploration and development projects to be made by oil and gas companies; the highly competitive nature of the contract land drilling business; the Company’s future financial performance, including availability, terms and deployment of capital; the continued availability of qualified personnel; and changes in governmental regulations, including those relating to the environment. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. These risks, as well as others, are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission, including the Company’s 10-K.

 

- Tables to follow -

 


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