Patterson-UTI Energy Comments On Expected Q1 2014 Results

(RTTNews) - Patterson-UTI Energy Inc. (PTEN) said that its pressure pumping operations in the Appalachian region have been hurt by unusually severe weather in the first quarter. For the first quarter of 2014, the firm currently expects pressure pumping revenues of about $240 million, with a margin percentage of nearly 17%.

The margin percentage is lower than that of the company's projection, as a result of having crews and equipment on location that were unable to provide revenue generating services during the unusually severe weather, according to the company. While on location, the firm continued to incur labor, demurrage and other costs, including fuel costs to run our equipment to protect it in these extraordinary weather conditions.

The severe weather has not impacted significantly its other operations, and demand remains strong for both its pressure pumping and drilling services even in the areas impacted by weather.

The firm defined margin as revenues less direct operating costs, excluding depreciation, amortization and impairment and selling, general and administrative expenses. Margin percentage is defined as margin divided by revenues.