Pantera Drilling Income Trust Announces Results for the Second Quarter Ended June 30, 2009 And Declares August Distribution



    
    /NOT FOR DISSEMINATION INTO THE UNITED STATES/

    (TSX: RIG.UN)
    

    CALGARY, Aug. 13 /CNW/ - Pantera Drilling Income Trust ("Pantera" or the
"Trust") is pleased to release its second quarter 2009 financial and operating
results. Additional information relating to the Trust, including the Trust's
financial statements and management's discussion and analysis for the three
and six months ended June 30, 2009 is available under the Trust's profile on
SEDAR at www.sedar.com or the Trust's website at www.panteradrilling.com.

    
    -------------------------------------------------------------------------
    HIGHLIGHTS
                     Three months ended June 30,    Six months ended June 30,

    FINANCIAL          2009       2008    Change       2009      2008 Change
    -------------------------------------------------------------------------
    (000s, except for                        (%)                         (%)
     units and per
     unit amounts)
    -------------------------------------------------------------------------
    Revenue               920      3,289     (72)     10,148     11,343  (11)
    -------------------------------------------------------------------------
    Gross margin(1)      (719)       740    (197)      3,133      3,808  (18)
    -------------------------------------------------------------------------
    Net earnings
     (loss)            (1,672)      (780)   (114)        360        483  (26)
    -------------------------------------------------------------------------
      Per unit - basic
       and diluted       (.19)      (.12)    (58)        .04        .07  (43)
    -------------------------------------------------------------------------
    Cash flow from
     operating
     activities         3,077      3,204      (4)      5,848      3,284   78
    -------------------------------------------------------------------------
      Per unit - basic    .34        .48     (29)        .66        .50   32
               - diluted  .34        .46     (28)        .64        .49   31
    -------------------------------------------------------------------------
    Cash distributions
     declared per basic
     unit                 .09        .09       -         .18        .18    -
    -------------------------------------------------------------------------
    EBITDA(2)          (1,351)      (118) (1,045)      1,824      2,274  (20)
    -------------------------------------------------------------------------
    Total assets
     (end of
     period)           57,151     56,572       1      57,151     56,572    1
    -------------------------------------------------------------------------
    Total long-term
     financial
     liabilities
     (end of
     period)           18,000     23,754     (24)     18,000     23,754  (24)
    -------------------------------------------------------------------------
    Units
     outstanding
     (end of
     period)        9,114,876  6,664,017      37   9,114,876  6,664,017   37
    -------------------------------------------------------------------------
    OPERATING
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
     Number of rigs
      (end of
      period)               7          7       -           7          7    -
    -------------------------------------------------------------------------
     Operating
      days(3)              49        111     (56)        357        433  (18)
    -------------------------------------------------------------------------
    Industry
     utilization
     average(4)            7%        19%     (63)        21%        37%  (43)
    -------------------------------------------------------------------------
    Pantera
     utilization
     rate                  4%        18%     (78)        26%        34%  (24)
    -------------------------------------------------------------------------

    Notes:
    (1)    Gross margin represents revenue less operating expenses. Readers
           are cautioned that gross margin does not have a standardized
           meaning prescribed by GAAP and therefore may not be comparable to
           similar measures presented by other issuers. However, Pantera does
           compute gross margin on a consistent basis for each reporting
           period. Management believes gross margin is a useful supplemental
           measure of operating performance and is particularly relevant to
           readers within the investment community. Refer to "Non-GAAP
           Measures" later in this discussion for a quantitative
           reconciliation of these numbers.
    (2)    EBITDA means net earnings before interest, taxes, depreciation,
           amortization, and gain or loss on disposal of property and
           equipment. Readers are cautioned that EBITDA does not have a
           standardized meaning prescribed by GAAP and therefore may not be
           comparable to similar measures presented by other issuers.
           However, Pantera does compute EBITDA on a consistent basis for
           each reporting period. Management believes that, in addition to
           net earnings, EBITDA is a significant indication of success for
           Pantera and is particularly relevant to readers within the
           investment community. Refer to "Non-GAAP Measures" later in this
           discussion for a quantitative reconciliation of these numbers.
    (3)    Operating days is the total of all drilling days from spud to
           release and excludes stand-by, moving, rig-up and rig-out days.
    (4)    Source: Canadian Association of Oilwell Drilling Contractors
           (CAODC).
    

    Pantera recorded a net loss of $1.7 million for the quarter ended June
30, 2009 as compared to a net loss of $780,100 for the same period in 2008.
For the six months ended June 30, 2009, net earnings decreased to $359,700
from $483,100 in 2008, a decrease of 26%.
    Rig activity in the second quarter is typically the lowest in the year.
2009 was no exception, with Pantera recording 49 operating days for the
quarter. Load weight restrictions placed on secondary roads in the spring
restrict rig movement until at least May. The large amount of snowfall this
winter extended the break-up period into June, and Operators were not
motivated to start up rig activities early, risking weather related costs and
delays. As a result, second quarter utilization rates were negatively
affected.
    On July 7, 2009, the Canadian Association of Oilwell Drilling Contractors
(CAODC) released a revised forecast of drilling activity for 2009. The CAODC
now expects 8,787 wells to be drilled in 2009, as compared to the 16,844 wells
drilled in 2008 and 19,167 wells drilled in 2007. This was a further downgrade
in the outlook for 2009 from the unprecedented mid-winter forecast correction,
issued on February 20, 2009 of 11,176 wells for 2009. This projected decline,
driven by the dramatic weakening of the global economic environment and the
resulting drop in commodity prices, is forecasted by CAODC to result in an
expected average industry drilling utilization rate of 26% in 2009, down from
the 40% rate experienced in 2008. An average of 219 rigs will be drilling in
2009 out of the 858 available.
    The surplus availability of rigs in Western Canada has created tremendous
downward pressure to day rates. The decrease in day rates coupled with lower
utilization has and is expected to continue to negatively impact revenue.
    Pantera has a fleet of seven drilling rigs and management expects to have
five of its rigs working under term contracts for the remainder of 2009. Three
of the Trust's six telescopic double rigs have been relocated to Mexico;
drilling operations commenced in late June for one of the rigs and early July
for the other two. The contracts provide guaranteed revenue with minimum day
requirements, achieving more stability of the Trust's revenue stream in a time
of lower industry activity and greater uncertainty than experienced in recent
years. Of the Trust's three telescopic double rigs that remain in Western
Canada, two are under term contracts that also provide guaranteed revenue with
minimum day requirements. One of the contracts was recently extended into
January 2011 at a lower day rate. Of the two remaining open market rigs, one
(the Trusts only telescopic single) is being utilized in Ontario primarily
drilling gas storage wells for two major gas distribution companies, and one
rig is in Peace River being bid on projects in the Western Alberta and NE BC
areas.
    The Trust today declared a cash distribution relating to the period
August 1, 2009 to August 31, 2009, in the amount of $0.03 per trust unit
payable on September 15, 2009 to unitholders of record on August 31, 2009.
    Cash distributions are not guaranteed and will fluctuate with the
performance of its operating entity, Pantera Drilling LP, which is dependent
upon oil and natural gas prices, the level of activity in the oil and gas
industry, seasonal weather patterns, competition, major customers, third party
suppliers, key personnel and workforce availability, among other risk factors.
    Certain statements included in this release constitute forward-looking
statements including, without limitation, such things as revenue expectations,
capital expenditures, legislative changes, changes in industry conditions, the
impact of weather and other seasonal factors that affect business operations,
fluctuations in prevailing commodity prices, the competitive environment to
which Pantera is, or may be, exposed in all aspects of its business and
expected future availability and utilization of Pantera's rigs. Such
forward-looking statements that involve unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements of Pantera,
or industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such factors include, but are not limited to, general economic and
business conditions, the ability of Pantera to implement its business
strategy, and changes in, or failure to comply with government regulations,
especially health, safety and environment laws, regulations and guidelines.
Additional information on these and other factors that could affect Pantera's
operations and financial results are included in reports on file with Canadian
securities regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com) under Pantera's profile. Forward-looking statements in
this release may include, but are not limited to, revenue, commodity prices,
rig utilization and availability, capital expenditures and legislative
changes. For this purpose, any statements that are contained in this
discussion that are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements often contain terms
such as "may", "will", "should", "anticipate", "expects", "intends", and
similar expressions. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance should not
be placed on forward-looking statements. Furthermore, the forward-looking
statements contained herein are made as at the date hereof and Pantera does
not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable securities
laws.

    The Trust is an open-ended, investment trust governed by the laws of the
Province of Alberta pursuant to the Deed of Trust. The Trust was established
for the purpose of investing in property, including the securities of Pantera
Drilling Limited Partnership and Pantera Drilling Inc. The beneficiaries of
the Trust are the holders of the trust units. The business of Pantera involves
the provision of contract drilling services to oil and natural gas exploration
and production companies operating in Canada.

    %SEDAR: 00023106E




For further information:

For further information: Terry Rosentreter, President and Chief
Executive Officer or Lorna Pollock, Chief Financial Officer at: Ph: (403)
515-8400, Fax: (403) 515-8405, E-mail: terryr@panteradrilling.com,
lpollock@panteradrilling.com

Organization Profile

PANTERA DRILLING INCOME TRUST

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890