Company Quick10K Filing
Quick10K
Parker Drilling
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$21.88 15 $329
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-08-05 Earnings, Exhibits
8-K 2019-07-15 Officers, Regulation FD, Exhibits
8-K 2019-06-13 Enter Agreement, Officers, Exhibits
8-K 2019-05-23 Regulation FD, Exhibits
8-K 2019-05-07 Earnings, Exhibits
8-K 2019-04-22 Regulation FD, Exhibits
8-K 2019-03-26 Enter Agreement, Leave Agreement, Off-BS Arrangement, Sale of Shares, Shareholder Rights, Control, Officers, Amend Bylaw, Regulation FD, Exhibits
8-K 2019-03-21 Regulation FD, Exhibits
8-K 2019-03-07 Bankruptcy, Exhibits
8-K 2019-02-20 Regulation FD, Exhibits
8-K 2019-01-28 Enter Agreement, Exhibits
8-K 2019-01-23 Regulation FD
8-K 2019-01-23 Regulation FD
8-K 2018-12-13 Shareholder Rights, Other Events, Exhibits
8-K 2018-12-12 Bankruptcy, Enter Agreement, Off-BS Arrangement, Off-BS Arrangement, Regulation FD, Other Events, Exhibits
8-K 2018-12-12 Regulation FD, Exhibits
8-K 2018-11-05 Earnings, Exhibits
8-K 2018-11-05 Regulation FD, Exhibits
8-K 2018-08-23 Enter Agreement, Shareholder Rights, Regulation FD, Exhibits
8-K 2018-08-01 Earnings, Exhibits
8-K 2018-07-12 Enter Agreement, Shareholder Rights, Amend Bylaw, Regulation FD, Exhibits
8-K 2018-06-21 Officers, Exhibits
8-K 2018-05-10 Shareholder Vote
8-K 2018-04-02 Officers, Exhibits
8-K 2018-03-15 Regulation FD, Exhibits
8-K 2018-02-15 Enter Agreement
8-K 2018-01-05 Regulation FD, Exhibits
RE Everest RE Group 10,020
MIDD Middleby 7,530
ESNT Essent Group 4,600
ENDP Endo 1,790
MAXR Maxar Technologies 400
GLMD Galmed Pharmaceuticals 154
BKEP Blueknight Energy Partners 47
FHLBI Federal Home Loan Bank of Indianapolis 0
MCCX McorpCX 0
PCFG Pacific Gold & Royalty 0
PKD 2019-06-30
Part I. Financial Information
Item 1. Financial Statements
Note 1 - Summary of Significant Accounting Policies
Note 2 - Chapter 11 Emergence
Note 3 - Fresh Start Accounting
Note 4 - Intangible Assets
Note 5 - Operating Leases
Note 6 - Debt
Note 7 - Fair Value of Measurements
Note 8 - Income Taxes
Note 9 - Commitments and Contingencies
Note 10 - Earnings (Loss) per Common Share ("Eps")
Note 11 - Revenue
Note 12 - Reportable Segments
Note 13 - Recent Accounting Pronouncements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 q2-6302019xexx311.htm
EX-31.2 q2-6302019xexx312.htm
EX-32.1 q2-6302019xexx321.htm
EX-32.2 q2-6302019xexx322.htm

Parker Drilling Earnings 2019-06-30

PKD 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Document
false--12-31Q220190000076321PARKER DRILLING CO /DE/P60MP2M21P180DP20DP1Y12695179800018742000776700026900010.16670.0118666667500000000938466915044739938466915044739SuccessorPredecessorSuccessorP3Y222100000011942000500000500000P6MP1YP1Y 0000076321 2019-01-01 2019-06-30 0000076321 2019-08-01 0000076321 2018-12-31 0000076321 2019-06-30 0000076321 2019-04-01 2019-06-30 0000076321 2018-04-01 2018-06-30 0000076321 2018-01-01 2018-06-30 0000076321 2019-01-01 2019-03-31 0000076321 2018-06-30 0000076321 2019-03-31 0000076321 2017-12-31 0000076321 us-gaap:CommonStockMember 2018-06-30 0000076321 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000076321 2018-01-01 2018-03-31 0000076321 us-gaap:PreferredStockMember 2018-03-31 0000076321 us-gaap:RetainedEarningsMember 2017-12-31 0000076321 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000076321 us-gaap:RetainedEarningsMember 2018-06-30 0000076321 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000076321 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000076321 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000076321 us-gaap:PreferredStockMember 2017-12-31 0000076321 us-gaap:TreasuryStockMember 2018-06-30 0000076321 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0000076321 us-gaap:RetainedEarningsMember 2018-03-31 0000076321 us-gaap:TreasuryStockMember 2017-12-31 0000076321 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0000076321 us-gaap:TreasuryStockMember 2018-03-31 0000076321 2018-03-31 0000076321 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0000076321 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0000076321 us-gaap:CommonStockMember 2017-12-31 0000076321 us-gaap:CommonStockMember 2018-01-01 2018-03-31 0000076321 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000076321 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000076321 us-gaap:CommonStockMember 2018-03-31 0000076321 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000076321 us-gaap:PreferredStockMember 2018-06-30 0000076321 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000076321 us-gaap:TreasuryStockMember 2019-03-30 2019-03-30 0000076321 us-gaap:TreasuryStockMember 2019-03-31 0000076321 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-30 0000076321 us-gaap:CommonStockMember 2019-03-30 0000076321 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-30 0000076321 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-30 0000076321 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000076321 us-gaap:PreferredStockMember 2019-06-30 0000076321 us-gaap:AdditionalPaidInCapitalMember 2019-03-30 2019-03-30 0000076321 2019-03-30 0000076321 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 2019-03-31 0000076321 us-gaap:CommonStockMember 2019-03-31 0000076321 us-gaap:TreasuryStockMember 2019-06-30 0000076321 2019-01-01 2019-03-30 0000076321 us-gaap:RetainedEarningsMember 2019-03-31 0000076321 2019-03-30 2019-03-30 0000076321 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000076321 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000076321 us-gaap:CommonStockMember 2019-06-30 0000076321 us-gaap:RetainedEarningsMember 2019-03-30 0000076321 us-gaap:CommonStockMember 2019-03-31 2019-03-31 0000076321 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000076321 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000076321 us-gaap:CommonStockMember 2018-12-31 0000076321 us-gaap:PreferredStockMember 2019-03-30 0000076321 us-gaap:RetainedEarningsMember 2018-12-31 0000076321 us-gaap:CommonStockMember 2019-03-31 2019-03-31 0000076321 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000076321 us-gaap:TreasuryStockMember 2019-03-30 0000076321 us-gaap:CommonStockMember 2019-03-30 2019-03-30 0000076321 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-30 2019-03-30 0000076321 2019-03-31 2019-03-31 0000076321 us-gaap:PreferredStockMember 2018-12-31 0000076321 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000076321 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-30 0000076321 us-gaap:PreferredStockMember 2019-03-30 2019-03-30 0000076321 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000076321 us-gaap:RetainedEarningsMember 2019-06-30 0000076321 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000076321 us-gaap:RetainedEarningsMember 2019-03-30 2019-03-30 0000076321 us-gaap:AdditionalPaidInCapitalMember 2019-03-30 0000076321 us-gaap:TreasuryStockMember 2018-12-31 0000076321 us-gaap:PreferredStockMember 2019-03-31 0000076321 srt:MaximumMember 2019-01-01 2019-06-30 0000076321 pkd:ExxonNeftegasLimitedMember pkd:ReimbursableRevenueMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-04-01 2019-06-30 0000076321 pkd:CompensatingBalancesMember 2018-12-31 0000076321 pkd:ExxonNeftegasLimitedMember pkd:ReimbursableRevenueMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-03-31 0000076321 pkd:ExxonNeftegasLimitedMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-04-01 2019-06-30 0000076321 pkd:ExxonNeftegasLimitedMember pkd:ReimbursableRevenueMember 2019-01-01 2019-03-31 0000076321 pkd:CollateralOnLettersOfCreditMember 2018-12-31 0000076321 pkd:ExxonNeftegasLimitedMember pkd:ReimbursableRevenueMember 2019-04-01 2019-06-30 0000076321 pkd:ExxonNeftegasLimitedMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2019-01-01 2019-03-31 0000076321 srt:MinimumMember 2019-01-01 2019-06-30 0000076321 pkd:A6.75SeniorNotesMember 2019-06-30 0000076321 pkd:A7.50SeniorNotesdueAugust2020Member 2018-12-31 0000076321 us-gaap:SeniorNotesMember 2019-06-30 0000076321 pkd:A6.75SeniorNotesMember 2018-12-31 0000076321 us-gaap:SeniorNotesMember 2018-12-31 0000076321 pkd:A7.50SeniorNotesdueAugust2020Member 2019-06-30 0000076321 pkd:A6.75SeniorNotesMember 2014-01-22 0000076321 us-gaap:SeriesAPreferredStockMember 2018-12-12 2018-12-12 0000076321 pkd:PredecessorCommonStockHoldersMember us-gaap:CommonStockMember 2019-03-26 2019-03-26 0000076321 pkd:A7.50NoteHoldersMember us-gaap:CommonStockMember 2019-03-26 2019-03-26 0000076321 pkd:PredecessorPreferredStockHoldersMember us-gaap:CommonStockMember 2019-03-26 0000076321 pkd:A7.50SeniorNotesdueAugust2020Member 2013-07-30 0000076321 pkd:PredecessorCommonStockHoldersMember us-gaap:CommonStockMember 2019-03-26 0000076321 pkd:PredecessorPreferredStockHoldersMember us-gaap:CommonStockMember 2019-03-26 2019-03-26 0000076321 us-gaap:CommonStockMember pkd:BackstopCommitmentAgreementUnsubscribedSharesMember 2019-03-26 2019-03-26 0000076321 us-gaap:CommonStockMember pkd:BackstopCommitmentAgreementRightsOfferingMember 2019-03-26 2019-03-26 0000076321 pkd:A6.75NoteHoldersMember us-gaap:CommonStockMember 2019-03-26 2019-03-26 0000076321 us-gaap:CommonStockMember pkd:BackstopCommitmentAgreementCommitmentPremiumMember 2019-03-26 2019-03-26 0000076321 srt:MinimumMember 2019-06-30 0000076321 2019-03-26 0000076321 srt:MaximumMember 2019-06-30 0000076321 pkd:FreshStartAdjustmentsMember 2019-03-31 0000076321 pkd:ReorganizationAdjustmentsMember 2019-03-30 0000076321 pkd:ReorganizationAdjustmentsMember 2019-03-31 0000076321 2019-04-01 2019-04-01 0000076321 us-gaap:TechnologyBasedIntangibleAssetsMember 2019-03-30 0000076321 us-gaap:TradeNamesMember 2019-03-31 0000076321 us-gaap:CustomerRelationshipsMember 2019-03-31 0000076321 us-gaap:TradeNamesMember 2019-03-30 0000076321 us-gaap:CustomerRelationshipsMember 2019-03-30 0000076321 us-gaap:TechnologyBasedIntangibleAssetsMember 2019-03-31 0000076321 pkd:SuccessorTermLoanMember 2019-03-31 0000076321 pkd:ReorganizationAdjustmentsMember 2019-01-01 2019-03-31 0000076321 pkd:SuccessorTermLoanMember 2019-03-26 0000076321 us-gaap:TrademarksAndTradeNamesMember 2019-06-30 0000076321 us-gaap:TrademarksAndTradeNamesMember 2019-01-01 2019-06-30 0000076321 us-gaap:CustomerRelationshipsMember 2019-06-30 0000076321 us-gaap:CustomerRelationshipsMember 2019-01-01 2019-06-30 0000076321 us-gaap:DevelopedTechnologyRightsMember 2019-06-30 0000076321 us-gaap:DevelopedTechnologyRightsMember 2019-01-01 2019-06-30 0000076321 2019-01-01 0000076321 pkd:SuccessorCreditFacilityMember 2019-03-26 0000076321 pkd:A2015SecuredCreditAgreementMember 2018-02-14 0000076321 pkd:SuccessorCreditFacilityMember 2019-06-30 0000076321 srt:MinimumMember pkd:SuccessorCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-03-26 2019-03-26 0000076321 pkd:SuccessorCreditFacilityMember 2019-06-30 0000076321 srt:MaximumMember pkd:SuccessorCreditFacilityMember us-gaap:LondonInterbankOfferedRateLIBORMember 2019-03-26 2019-03-26 0000076321 pkd:A2015SecuredCreditAgreementMember 2015-01-26 0000076321 pkd:A2015SecuredCreditAgreementMember 2018-12-31 0000076321 srt:MaximumMember pkd:SuccessorCreditFacilityMember us-gaap:BaseRateMember 2019-03-26 2019-03-26 0000076321 srt:MinimumMember pkd:SuccessorCreditFacilityMember us-gaap:BaseRateMember 2019-03-26 2019-03-26 0000076321 pkd:SuccessorCreditFacilityMember 2019-03-26 2019-03-26 0000076321 pkd:SuccessorTermLoanMember 2018-12-31 0000076321 pkd:SuccessorTermLoanMember 2019-06-30 0000076321 pkd:A2015SecuredCreditAgreementMember 2019-06-30 0000076321 pkd:SuccessorCreditFacilityMember 2018-12-31 0000076321 pkd:A2015SecuredCreditAgreementMember 2018-12-31 0000076321 us-gaap:EstimateOfFairValueFairValueDisclosureMember pkd:A7.50SeniorNotesdueAugust2020Member 2019-06-30 0000076321 us-gaap:CarryingReportedAmountFairValueDisclosureMember pkd:A7.50SeniorNotesdueAugust2020Member 2018-12-31 0000076321 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0000076321 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-06-30 0000076321 us-gaap:EstimateOfFairValueFairValueDisclosureMember pkd:SuccessorTermLoanMember 2018-12-31 0000076321 us-gaap:EstimateOfFairValueFairValueDisclosureMember pkd:A7.50SeniorNotesdueAugust2020Member 2018-12-31 0000076321 us-gaap:EstimateOfFairValueFairValueDisclosureMember pkd:SuccessorTermLoanMember 2019-06-30 0000076321 us-gaap:EstimateOfFairValueFairValueDisclosureMember pkd:A6.75SeniorNotesMember 2019-06-30 0000076321 us-gaap:EstimateOfFairValueFairValueDisclosureMember pkd:A6.75SeniorNotesMember 2018-12-31 0000076321 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000076321 us-gaap:CarryingReportedAmountFairValueDisclosureMember pkd:A6.75SeniorNotesMember 2019-06-30 0000076321 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-06-30 0000076321 us-gaap:CarryingReportedAmountFairValueDisclosureMember pkd:SuccessorTermLoanMember 2019-06-30 0000076321 us-gaap:CarryingReportedAmountFairValueDisclosureMember pkd:A6.75SeniorNotesMember 2018-12-31 0000076321 us-gaap:CarryingReportedAmountFairValueDisclosureMember pkd:SuccessorTermLoanMember 2018-12-31 0000076321 us-gaap:CarryingReportedAmountFairValueDisclosureMember pkd:A7.50SeniorNotesdueAugust2020Member 2019-06-30 0000076321 us-gaap:WarrantMember 2019-04-01 2019-06-30 0000076321 us-gaap:PreferredStockMember 2018-01-01 2018-06-30 0000076321 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-03-31 0000076321 us-gaap:PreferredStockMember 2019-04-01 2019-06-30 0000076321 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-03-31 0000076321 us-gaap:PreferredStockMember 2019-01-01 2019-03-31 0000076321 us-gaap:WarrantMember 2018-01-01 2018-06-30 0000076321 us-gaap:WarrantMember 2019-01-01 2019-03-31 0000076321 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-06-30 0000076321 us-gaap:EmployeeStockOptionMember 2019-04-01 2019-06-30 0000076321 us-gaap:RestrictedStockUnitsRSUMember 2019-04-01 2019-06-30 0000076321 us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-06-30 0000076321 us-gaap:ServiceMember 2019-06-30 0000076321 pkd:LeaseRevenueMember 2020-01-01 2019-06-30 0000076321 us-gaap:ServiceMember 2022-01-01 2019-06-30 0000076321 pkd:LeaseRevenueMember 2021-01-01 2019-06-30 0000076321 pkd:LeaseRevenueMember 2019-07-01 2019-06-30 0000076321 pkd:LeaseRevenueMember 2019-06-30 0000076321 us-gaap:ServiceMember 2020-01-01 2019-06-30 0000076321 us-gaap:ServiceMember 2019-07-01 2019-06-30 0000076321 us-gaap:ServiceMember 2021-01-01 2019-06-30 0000076321 pkd:LeaseRevenueMember 2022-01-01 2019-06-30 0000076321 us-gaap:ServiceMember 2019-01-01 2019-03-31 0000076321 us-gaap:ServiceMember 2019-04-01 2019-06-30 0000076321 pkd:LeaseRevenueMember 2019-01-01 2019-03-31 0000076321 pkd:LeaseRevenueMember 2019-04-01 2019-06-30 0000076321 pkd:ReimbursableRevenueMember 2019-04-01 2019-06-30 0000076321 pkd:ReimbursableRevenueMember 2018-01-01 2018-06-30 0000076321 pkd:ReimbursableRevenueMember 2019-01-01 2019-03-31 0000076321 2022-01-01 2019-06-30 0000076321 2019-07-01 2019-06-30 0000076321 2020-01-01 2019-06-30 0000076321 2021-01-01 2019-06-30 0000076321 pkd:ExxonNeftegasLimitedMember pkd:ReimbursableRevenueMember pkd:InternationalAlaskaDrillingMember 2019-04-01 2019-06-30 0000076321 pkd:ExxonNeftegasLimitedMember pkd:ReimbursableRevenueMember pkd:SalesRevenueNetOfReimbursableRevenuesMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-06-30 0000076321 pkd:ExxonNeftegasLimitedMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember pkd:InternationalAlaskaDrillingMember 2018-01-01 2018-06-30 0000076321 pkd:ExxonNeftegasLimitedMember pkd:SalesRevenueNetOfReimbursableRevenuesMember us-gaap:CustomerConcentrationRiskMember pkd:InternationalAlaskaDrillingMember 2018-01-01 2018-06-30 0000076321 pkd:ExxonNeftegasLimitedMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-06-30 0000076321 pkd:ExxonNeftegasLimitedMember pkd:SalesRevenueNetOfReimbursableRevenuesMember us-gaap:CustomerConcentrationRiskMember pkd:InternationalAlaskaDrillingMember 2019-01-01 2019-03-31 0000076321 pkd:ExxonNeftegasLimitedMember pkd:ReimbursableRevenueMember 2018-01-01 2018-06-30 0000076321 pkd:ExxonNeftegasLimitedMember pkd:InternationalAlaskaDrillingMember 2019-04-01 2019-06-30 0000076321 pkd:ExxonNeftegasLimitedMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember pkd:InternationalAlaskaDrillingMember 2019-01-01 2019-03-31 0000076321 pkd:U.S.RentalToolsAndInternationalRentalToolsMember 2018-04-01 2018-06-30 0000076321 pkd:U.S.Lower48DrillingandInternationalAndAlaskaDrillingSegmentsMember 2019-04-01 2019-06-30 0000076321 pkd:U.S.RentalToolsMember 2019-04-01 2019-06-30 0000076321 pkd:U.S.Lower48DrillingMember 2018-04-01 2018-06-30 0000076321 pkd:U.S.Lower48DrillingandInternationalAndAlaskaDrillingSegmentsMember 2018-04-01 2018-06-30 0000076321 pkd:InternationalRentalToolsMember 2018-04-01 2018-06-30 0000076321 pkd:U.S.RentalToolsMember 2018-04-01 2018-06-30 0000076321 pkd:InternationalAlaskaDrillingMember 2018-04-01 2018-06-30 0000076321 pkd:U.S.RentalToolsAndInternationalRentalToolsMember 2019-04-01 2019-06-30 0000076321 pkd:InternationalRentalToolsMember 2019-04-01 2019-06-30 0000076321 pkd:InternationalAlaskaDrillingMember 2019-04-01 2019-06-30 0000076321 pkd:U.S.Lower48DrillingMember 2019-04-01 2019-06-30 0000076321 pkd:InternationalRentalToolsMember 2019-01-01 2019-03-31 0000076321 pkd:InternationalRentalToolsMember 2018-01-01 2018-06-30 0000076321 pkd:U.S.RentalToolsAndInternationalRentalToolsMember 2018-01-01 2018-06-30 0000076321 pkd:InternationalAlaskaDrillingMember 2019-01-01 2019-03-31 0000076321 pkd:U.S.Lower48DrillingMember 2019-01-01 2019-03-31 0000076321 pkd:U.S.RentalToolsMember 2019-01-01 2019-03-31 0000076321 pkd:U.S.Lower48DrillingandInternationalAndAlaskaDrillingSegmentsMember 2018-01-01 2018-06-30 0000076321 pkd:U.S.RentalToolsAndInternationalRentalToolsMember 2019-01-01 2019-03-31 0000076321 pkd:U.S.RentalToolsMember 2018-01-01 2018-06-30 0000076321 pkd:InternationalAlaskaDrillingMember 2018-01-01 2018-06-30 0000076321 pkd:U.S.Lower48DrillingMember 2018-01-01 2018-06-30 0000076321 pkd:U.S.Lower48DrillingandInternationalAndAlaskaDrillingSegmentsMember 2019-01-01 2019-03-31 0000076321 pkd:EMEAAsiaMember 2019-04-01 2019-06-30 0000076321 pkd:OtherCISMember 2019-04-01 2019-06-30 0000076321 srt:LatinAmericaMember 2018-04-01 2018-06-30 0000076321 pkd:EMEAAsiaMember 2018-04-01 2018-06-30 0000076321 pkd:OtherCountriesMember 2019-04-01 2019-06-30 0000076321 country:US 2019-04-01 2019-06-30 0000076321 country:RU 2018-04-01 2018-06-30 0000076321 country:RU 2019-04-01 2019-06-30 0000076321 country:US 2018-04-01 2018-06-30 0000076321 pkd:OtherCountriesMember 2018-04-01 2018-06-30 0000076321 pkd:OtherCISMember 2018-04-01 2018-06-30 0000076321 srt:LatinAmericaMember 2019-04-01 2019-06-30 0000076321 pkd:OtherCountriesMember 2019-01-01 2019-03-31 0000076321 country:RU 2018-01-01 2018-06-30 0000076321 pkd:OtherCISMember 2019-01-01 2019-03-31 0000076321 pkd:OtherCountriesMember 2018-01-01 2018-06-30 0000076321 country:US 2019-01-01 2019-03-31 0000076321 country:US 2018-01-01 2018-06-30 0000076321 country:RU 2019-01-01 2019-03-31 0000076321 pkd:EMEAAsiaMember 2018-01-01 2018-06-30 0000076321 srt:LatinAmericaMember 2019-01-01 2019-03-31 0000076321 pkd:OtherCISMember 2018-01-01 2018-06-30 0000076321 pkd:EMEAAsiaMember 2019-01-01 2019-03-31 0000076321 srt:LatinAmericaMember 2018-01-01 2018-06-30 0000076321 srt:MaximumMember pkd:U.S.Lower48DrillingMember 2019-01-01 2019-06-30 0000076321 pkd:U.S.Lower48DrillingMember 2019-01-01 2019-06-30 0000076321 srt:MinimumMember pkd:U.S.Lower48DrillingMember 2019-01-01 2019-06-30 0000076321 pkd:InternationalAlaskaDrillingMember 2019-01-01 2019-06-30 xbrli:pure pkd:country iso4217:USD xbrli:shares iso4217:USD xbrli:shares utreg:ft pkd:business_line pkd:segment
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended June 30, 2019
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                         
Commission File Number 1-7573
PARKER DRILLING COMPANY
(Exact name of registrant as specified in its charter)
Delaware
 
73-0618660
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
5 Greenway Plaza, Suite 100, Houston, Texas 77046
(Address of principal executive offices) (Zip Code)

(281406-2000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol
Name of each exchange on which registered
Common Stock, par value $0.01 per share
PKD
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:
Large accelerated filer
 
Accelerated filer
 
Non-accelerated filer
 
Smaller reporting company
 
 
 
 
 
 
 
 
 
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes      No  
As of August 1, 2019 there were 15,044,739 common shares outstanding.    



Table of Contents


TABLE OF CONTENTS
 
 
Page
 
 
 
 


2


Table of Contents


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in Thousands, Except Per Share Data) 
 
Successor
 
 
Predecessor
 
June 30,
2019
 
 
December 31,
2018
 
(Unaudited)
 
 
 
ASSETS
 
Current assets:
 
 
 
 
Cash and cash equivalents
$
139,099

 
 
$
48,602

Restricted cash
2,024

 
 
10,389

Accounts and notes receivable, net of allowance for bad debts of $269 at June 30, 2019 and $7,767 at December 31, 2018
162,718

 
 
136,437

Rig materials and supplies
19,360

 
 
36,245

Other current assets
25,234

 
 
35,231

Total current assets
348,435

 
 
266,904

Property, plant and equipment, net of accumulated depreciation of $18,742 at June 30, 2019 and $951,798 at December 31, 2018
304,978

 
 
534,371

Intangible assets, net (Note 4)
16,558

 
 
4,821

Deferred income taxes
4,618

 
 
2,143

Other non-current assets
33,322

 
 
20,175

Total assets
$
707,911

 
 
$
828,414

LIABILITIES AND STOCKHOLDERS EQUITY
 
Current liabilities:


 
 


Debtor in possession financing (Note 2)
$

 
 
$
10,000

Accounts payable and accrued liabilities
121,245

 
 
75,063

Accrued income taxes
5,021

 
 
3,385

Total current liabilities
126,266

 
 
88,448

Long-term debt (Note 6)
211,132

 
 

Other long-term liabilities
16,801

 
 
11,544

Long-term deferred tax liability
4,554

 
 
510

Commitments and contingencies (Note 9)


 
 


Total liabilities not subject to compromise
358,753

 
 
100,502

Liabilities subject to compromise (Note 2)

 
 
600,996

Total liabilities
358,753

 
 
701,498





3


Table of Contents


PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Dollars in Thousands, Except Per Share Data) 
 
Successor
 
 
Predecessor
 
June 30,
2019
 
 
December 31,
2018
 
(Unaudited)
 
 
 
Stockholders' equity:
 
 
 
 
Predecessor preferred stock, $1.00 par value, 1,942,000 shares authorized, 500,000 shares issued and outstanding

 
 
500

Predecessor common stock, $0.16 2/3 par value, 18,666,667 shares authorized, 9,385,060 shares issued and outstanding (9,384,669 shares issued and outstanding in 2018)

 
 
1,398

Predecessor capital in excess of par value

 
 
766,347

Predecessor accumulated other comprehensive income (loss)

 
 
(6,879
)
Successor common stock, $0.01 par value, 500,000,000 shares authorized, 15,044,739 shares issued and outstanding
150

 
 

Successor capital in excess of par value
344,519

 
 

Successor accumulated other comprehensive income (loss)
(152
)
 
 

Retained earnings (accumulated deficit)
4,641

 
 
(634,450
)
Total stockholders’ equity
349,158

 
 
126,916

Total liabilities and stockholders’ equity
$
707,911

 
 
$
828,414


See accompanying notes to the unaudited consolidated condensed financial statements.

4


Table of Contents


PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Data)
(Unaudited)

 
Successor
 
 
Predecessor
 
Three Months Ended June 30,
 
 
Three Months Ended June 30,
 
2019
 
 
2018
Revenues
$
156,031

 
 
$
118,603

Expenses:
 
 
 
 
Operating expenses
112,649

 
 
91,634

Depreciation and amortization
20,391

 
 
27,136


133,040

 
 
118,770

Total operating gross margin (loss)
22,991

 
 
(167
)
General and administrative expense
(5,610
)
 
 
(8,288
)
Gain (loss) on disposition of assets, net
(53
)
 
 
(478
)
Reorganization items
(962
)
 
 

Total operating income (loss)
16,366

 
 
(8,933
)
Other income (expense):
 
 
 

Interest expense
(7,663
)
 
 
(11,197
)
Interest income
374

 
 
30

Other
(644
)
 
 
(1,191
)
Total other income (expense)
(7,933
)
 
 
(12,358
)
Income (loss) before income taxes
8,433

 
 
(21,291
)
Income tax expense
3,792

 
 
1,586

Net income (loss)
4,641

 
 
(22,877
)
Less: Predecessor preferred stock dividend

 
 
907

Net income (loss) available to common stockholders
$
4,641

 
 
$
(23,784
)
Basic earnings (loss) per common share:
$
0.31

 
 
$
(2.56
)
Diluted earnings (loss) per common share:
$
0.31

 
 
$
(2.56
)
Number of common shares used in computing earnings per share:
 
 
 
 
Basic
15,044,739

 
 
9,292,224

Diluted
15,044,739

 
 
9,292,224


See accompanying notes to the unaudited consolidated condensed financial statements.

5


Table of Contents


PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Data)
(Unaudited)

 
Successor
 
 
Predecessor
 
Three Months Ended June 30,
 
 
Three Months Ended March 31,
 
Six Months Ended June 30,
 
2019
 
 
2019
 
2018
Revenues
$
156,031

 
 
$
157,397

 
$
228,278

Expenses:
 
 
 
 
 
 
Operating expenses
112,649

 
 
120,871

 
183,168

Depreciation and amortization
20,391

 
 
25,102

 
55,685

 
133,040

 
 
145,973

 
238,853

Total operating gross margin (loss)
22,991

 
 
11,424

 
(10,575
)
General and administrative expense
(5,610
)
 
 
(8,147
)
 
(14,489
)
Gain (loss) on disposition of assets, net
(53
)
 
 
384

 
(135
)
Reorganization items
(962
)
 
 
(92,977
)
 

Total operating income (loss)
16,366

 
 
(89,316
)
 
(25,199
)
Other income (expense):
 
 
 
 
 
 
Interest expense
(7,663
)
 
 
(274
)
 
(22,437
)
Interest income
374

 
 
8

 
53

Other
(644
)
 
 
(10
)
 
(900
)
Total other income (expense)
(7,933
)
 
 
(276
)
 
(23,284
)
Income (loss) before income taxes
8,433

 
 
(89,592
)
 
(48,483
)
Income tax expense
3,792

 
 
656

 
3,190

Net income (loss)
4,641

 
 
(90,248
)
 
(51,673
)
Less: Predecessor preferred stock dividend

 
 

 
1,813

Net income (loss) available to common stockholders
$
4,641

 
 
$
(90,248
)
 
$
(53,486
)
Basic earnings (loss) per common share:
$
0.31

 
 
$
(9.63
)
 
$
(5.77
)
Diluted earnings (loss) per common share:
$
0.31

 
 
$
(9.63
)
 
$
(5.77
)
Number of common shares used in computing earnings per share:
 
 
 
 
 
 
Basic
15,044,739

 
 
9,368,322

 
9,271,759

Diluted
15,044,739

 
 
9,368,322

 
9,271,759


See accompanying notes to the unaudited consolidated condensed financial statements.


6


Table of Contents


PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)

 
Successor
 
 
Predecessor
 
Three Months Ended June 30,
 
 
Three Months Ended June 30,
 
2019
 
 
2018
Net income (loss)
$
4,641

 
 
$
(22,877
)
Other comprehensive income (loss), net of tax:
 
 
 
 
Currency translation difference on related borrowings
(80
)
 
 
(445
)
Currency translation difference on foreign currency net investments
(72
)
 
 
(1,802
)
Total other comprehensive income (loss), net of tax:
(152
)
 
 
(2,247
)
Comprehensive income (loss)
$
4,489

 
 
$
(25,124
)

See accompanying notes to the unaudited consolidated condensed financial statements.


PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)

 
Successor
 
 
Predecessor
 
Three Months Ended June 30,
 
 
Three Months Ended March 31,
 
Six Months Ended June 30,
 
2019
 
 
2019
 
2018
Net income (loss)
$
4,641

 
 
$
(90,248
)
 
$
(51,673
)
Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
Currency translation difference on related borrowings
(80
)
 
 
141

 
(169
)
Currency translation difference on foreign currency net investments
(72
)
 
 
(518
)
 
(2,378
)
Total other comprehensive income (loss), net of tax:
(152
)
 
 
(377
)
 
(2,547
)
Comprehensive income (loss)
$
4,489

 
 
$
(90,625
)
 
$
(54,220
)

See accompanying notes to the unaudited consolidated condensed financial statements.


7


Table of Contents


PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
Successor
 
 
Predecessor
 
Three Months Ended June 30,
 
 
Three Months Ended March 31,
 
Six Months Ended June 30,
 
2019
 
 
2019
 
2018
Cash flows from operating activities:
 
 
 
 
 
 
Net income (loss)
$
4,641

 
 
$
(90,248
)
 
$
(51,673
)
Adjustments to reconcile net income (loss):

 
 
 
 

Depreciation and amortization
20,391

 
 
25,102

 
55,685

(Gain) loss on disposition of assets, net
53

 
 
(384
)
 
135

Reorganization items

 
 
62,470

 

Deferred tax expense (benefit)
3,254

 
 
(1,685
)
 
(896
)
Expenses not requiring cash
3,680

 
 
2,575

 
4,030

Change in assets and liabilities:

 
 
 
 

Accounts and notes receivable
5,473

 
 
(32,842
)
 
(392
)
Other assets
(5,239
)
 
 
(6,542
)
 
8,112

Accounts payable and accrued liabilities
(12,731
)
 
 
55,780

 
(6,026
)
Accrued income taxes
(2,581
)
 
 
688

 
(944
)
Net cash provided by (used in) operating activities
16,941

 
 
14,914

 
8,031

Cash flows from investing activities:
 
 
 
 
 
 
Capital expenditures
(25,085
)
 
 
(9,231
)
 
(32,549
)
Proceeds from the sale of assets
257

 
 
101

 
851

Net cash provided by (used in) investing activities
(24,828
)
 
 
(9,130
)
 
(31,698
)
Cash flows from financing activities:
 
 
 
 
 
 
Payments of debt issuance costs
(275
)
 
 
(490
)
 
(1,440
)
Proceeds from rights offering

 
 
95,000

 

Payment of amounts borrowed under debtor in possession financing

 
 
(10,000
)
 

Predecessor preferred stock dividend

 
 

 
(1,813
)
Shares surrendered in lieu of tax

 
 

 
(170
)
Net cash provided by (used in) financing activities
(275
)
 
 
84,510

 
(3,423
)
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents and restricted cash
(8,162
)
 
 
90,294

 
(27,090
)
Cash and cash equivalents and restricted cash at beginning of period
149,285

 
 
58,991

 
141,549

Cash and cash equivalents and restricted cash at end of period
$
141,123

 
 
$
149,285

 
$
114,459

See accompanying notes to the unaudited consolidated condensed financial statements.

8


Table of Contents



PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Dollars and Shares in Thousands)
(Unaudited)
 
Shares
 
Preferred Stock
 
Common Stock 
 
Treasury Stock
 
Capital in
Excess of
Par Value
 
Accumulated
Deficit
 
Accumulated Other Comprehensive Income (Loss)
 
Total
Stockholders’
Equity
Balances, December 31, 2017 (Predecessor)
9,762

 
$
500

 
$
1,548

 
$
(170
)
 
$
766,508

 
$
(468,753
)
 
$
(3,512
)
 
$
296,121

Activity in employees’ stock plans
21

 

 
3

 

 
(126
)
 

 

 
(123
)
Amortization of stock-based awards

 

 

 

 
979

 

 

 
979

Predecessor preferred stock dividend

 

 

 

 
(906
)
 

 

 
(906
)
Comprehensive Income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Net income (loss)

 

 

 

 

 
(28,796
)
 

 
(28,796
)
Other comprehensive income (loss)

 

 

 

 

 

 
(300
)
 
(300
)
Balances, March 31, 2018 (Predecessor)
9,783

 
$
500

 
$
1,551

 
$
(170
)
 
$
766,455

 
$
(497,549
)
 
$
(3,812
)
 
$
266,975

Activity in employees’ stock plans
37

 

 
6

 

 
(53
)
 

 

 
(47
)
Amortization of stock-based awards

 

 

 

 
833

 

 

 
833

Predecessor preferred stock dividend

 

 

 

 
(907
)
 

 

 
(907
)
Comprehensive Income:


 


 


 


 


 


 


 


Net income (loss)

 

 

 

 

 
(22,877
)
 

 
(22,877
)
Other comprehensive income (loss)

 

 

 

 

 

 
(2,247
)
 
(2,247
)
Balances, June 30, 2018 (Predecessor)
9,820

 
$
500


$
1,557


$
(170
)

$
766,328


$
(520,426
)

$
(6,059
)
 
$
241,730


See accompanying notes to the unaudited consolidated condensed financial statements.


9


Table of Contents



PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Dollars and Shares in Thousands)
(Unaudited)
 
Shares 
 
Preferred Stock
 
Common Stock
 
Treasury Stock
 
Capital in
Excess of
Par Value
 
Accumulated
Deficit
 
Accumulated Other Comprehensive Income (Loss)
 
Total
Stockholders’
Equity
Balances, December 31, 2018 (Predecessor)
9,885

 
$
500

 
$
1,568

 
$
(170
)
 
$
766,347

 
$
(634,450
)
 
$
(6,879
)
 
$
126,916

Activity in employees’ stock plans

 

 

 

 

 

 

 

Amortization of stock-based awards

 

 

 

 
1,446

 

 

 
1,446

Predecessor preferred stock dividend

 

 

 

 

 

 

 

Comprehensive Income:


 


 


 


 


 


 


 


Net income (loss)

 

 

 

 

 
(90,248
)
 

 
(90,248
)
Other comprehensive income (loss)

 

 

 

 

 

 
(377
)
 
(377
)
Balances, March 31, 2019 (Predecessor)
9,885

 
500

 
1,568

 
(170
)
 
767,793

 
(724,698
)
 
(7,256
)
 
37,737

Cancellation of predecessor equity
(9,885
)
 
(500
)
 
(1,568
)
 
170

 
(767,793
)
 
724,698

 
7,256

 
(37,737
)
Balances, March 31, 2019 (Predecessor)

 

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuances of successor common stock
15,044

 

 
150

 

 
328,800

 

 

 
328,950

Issuances of successor warrants

 

 

 

 
14,687

 

 

 
14,687

Equity issuance costs

 

 

 

 
(837
)
 

 

 
(837
)
Balances, March 31, 2019 (Successor)
15,044

 

 
150

 

 
342,650

 

 

 
342,800

Amortization of stock-based awards

 

 

 

 
1,869

 

 

 
1,869

Comprehensive Income:


 


 


 


 


 


 


 


Net income (loss)

 

 

 

 

 
4,641

 

 
4,641

Other comprehensive income (loss)

 

 

 

 

 

 
(152
)
 
(152
)
Balances, June 30, 2019 (Successor)
15,044

 
$

 
$
150

 
$

 
$
344,519

 
$
4,641

 
$
(152
)
 
$
349,158


See accompanying notes to the unaudited consolidated condensed financial statements.

10


Table of Contents


PARKER DRILLING COMPANY AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Note 1 - Summary of Significant Accounting Policies
Organization and Nature of Operations
Unless otherwise indicated, the terms “Company,” “Parker,” “we,” “us” and “our” refer to Parker Drilling Company, incorporated in Delaware, together with its wholly-owned subsidiaries, and “Parker Drilling” refers solely to the parent, Parker Drilling Company. Parker is an international provider of contract drilling and drilling-related services, as well as, rental tools and services. We have operated in over 60 countries since beginning operations in 1934, making us among the most geographically experienced drilling contractors and rental tools providers in the world.
Basis of Presentation
The consolidated condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and are unaudited. In the opinion of the Company, these consolidated condensed financial statements include all adjustments which, unless otherwise disclosed, are of a normal recurring nature, necessary for their fair presentation for the periods presented. The results for interim periods are not necessarily indicative of results for the entire year. The consolidated condensed financial statements presented herein should be read in connection with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018.
Consolidation
The consolidated condensed financial statements include the accounts of the Company and subsidiaries in which we exercise control or have a controlling financial interest, including entities, if any, in which the Company is allocated a majority of the entity’s losses or returns, regardless of ownership percentage. If a subsidiary of Parker Drilling has a 50.0 percent or greater interest in an entity but Parker Drilling’s interest in the subsidiary or the entity does not meet the consolidation criteria described above, then that interest is accounted for under the equity method.
Reclassifications
Certain reclassifications have been made to prior period amounts to conform to the current period presentation. These reclassifications did not materially affect our consolidated financial results.
Use of Estimates
The preparation of our consolidated condensed financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect our reported amounts of assets and liabilities, our disclosure of contingent assets and liabilities at the date of the consolidated condensed financial statements, and our revenues and expenses during the periods reported. Estimates are typically used when accounting for certain significant items such as legal or contractual liability accruals, self-insured medical/dental plans, impairment, income taxes and valuation allowance, operating lease right-of-use assets, operating lease liabilities and other items requiring the use of estimates. Estimates are based on a number of variables, which may include third party valuations, historical experience, where applicable, and assumptions that we believe are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may differ from management estimates.
Cash, Cash equivalents and Restricted Cash
For purposes of the consolidated condensed balance sheets and the consolidated condensed statements of cash flows, the Company considers cash equivalents to be highly liquid debt instruments that have a remaining maturity of three months or less at the date of purchase.
 
Successor
 
 
Predecessor
Dollars in thousands
June 30,
2019
 
 
December 31,
2018
Cash and cash equivalents
$
139,099

 
 
$
48,602

Restricted cash
2,024

 
 
10,389

Cash, cash equivalents and restricted cash at end of period
$
141,123

 
 
$
58,991


The restricted cash balance as of June 30, 2019 is primarily related to our professional fees escrow account. The restricted cash was returned to cash and cash equivalents in August 2019 due to lower than expected payments for pre-emergence bankruptcy

11


Table of Contents


professional fees. The restricted cash balance as of December 31, 2018 includes $9.8 million in a cash collateral account to support the letters of credit outstanding and $0.6 million held as compensating balances in the ordinary course of business for purchases and utilities.
Impairment
We evaluate the carrying amounts of long-lived assets for potential impairment when events occur or circumstances change that indicate the carrying values of such assets may not be recoverable. We evaluate recoverability by determining the undiscounted estimated future net cash flows for the respective asset groups identified. If the sum of the estimated undiscounted cash flows is less than the carrying value of the asset group, we measure the impairment as the amount by which the assets’ carrying value exceeds the fair value of such assets. Management considers a number of factors such as estimated future cash flows from the assets, appraisals and current market value analysis in determining fair value. Assets are written down to fair value if the final estimate of current fair value is below the net carrying value. The assumptions used in the impairment evaluation are inherently uncertain and require management judgment.
Intangible Assets
Our intangible assets are related to customer relationships, developed technology and trade name, which are classified as definite lived intangibles, that are generally amortized over a weighted average period of approximately three to six years. We assess the recoverability of the unamortized balance of our intangible assets when indicators of impairment are present based on expected future profitability and undiscounted expected cash flows and their contribution to our overall operations. Should the review indicate that the carrying value is not fully recoverable, the excess of the carrying value over the fair value of the intangible assets would be recognized as an impairment loss. See Note 4 - Intangible Assets for further discussion.
Income Taxes
Income taxes are accounted for under the asset and liability method and have been provided for based upon tax laws and rates in effect in the countries in which operations are conducted and income or losses are generated. There is little or no expected relationship between the provision for or benefit from income taxes and income or loss before income taxes as the countries in which we operate have taxation regimes that vary not only with respect to nominal rate, but also in terms of the availability of deductions, credits, and other benefits. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which the temporary differences are expected to be recovered or settled and the effect of changes in tax rates is recognized in income in the period in which the change is enacted. Valuation allowances are established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. In order to determine the amount of deferred tax assets or liabilities, as well as the valuation allowances, we must make estimates and assumptions regarding future taxable income, where rigs will be deployed, and other matters. Changes in these estimates and assumptions, including changes in tax laws and other changes affecting our ability to recognize the underlying deferred tax assets, could require us to adjust the valuation allowances.
The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50.0 percent likely of being realized and changes in recognition or measurement are reflected in the period in which the change in judgment occurs. See Note 8 - Income Taxes for further details.
Leases
As lessee, our leases are primarily operating leases. See Note 5 - Operating Leases for further details.
As lessor, our leases are primarily operating leases which are included in revenue in our consolidated condensed statement of operations. See Note 11 - Revenue for further details.
Legal and Investigative Matters
We accrue estimates of the probable and estimable costs for the resolution of certain legal and investigative matters. We do not accrue any amounts for other matters for which the liability is not probable and reasonably estimable. Generally, the estimate of probable costs related to these matters is developed in consultation with our legal advisors. The estimates take into consideration factors such as the complexity of the issues, litigation risks and settlement costs. If the actual settlement costs, final judgments, or fines, after appeals, differ from our estimates, our future financial results may be adversely affected.

12


Table of Contents


Revenue Recognition
See Note 11 - Revenue for further discussion of our revenue recognition policy.
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade receivables with a variety of national and international oil and natural gas companies. We generally do not require collateral on our trade receivables. We depend on a limited number of significant customers. Our largest customer, Exxon Neftegas Limited (“ENL”), constituted approximately 26.9 percent of our consolidated revenues for the three months ended June 30, 2019. Excluding revenues from reimbursable costs (“reimbursable revenues”) of $16.9 million, ENL constituted approximately 18.3 percent of our total consolidated revenues for the three months ended June 30, 2019. For the three months ended March 31, 2019, ENL constituted approximately 31.2 percent of our total consolidated revenues. Excluding reimbursable revenues of $26.3 million, ENL constituted approximately 17.7 percent of our total consolidated revenues for the three months ended March 31, 2019.
The following table includes our deposits in domestic banks in excess of federally insured limits and uninsured deposits in foreign banks:
 
Successor
 
 
Predecessor
Dollars in thousands
June 30,
2019
 
 
December 31,
2018
Deposits in domestic banks in excess of federally insured limits
$
102,283

 
 
$
27,520

Uninsured deposits in foreign banks
41,293

 
 
32,907


Earnings (Loss) Per Share (EPS)
Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. The effects of dilutive securities such as Successor unvested restricted stock units, Successor unvested stock options, Successor warrants and Predecessor preferred stock are included in the diluted EPS calculation, when applicable. See Note 10 - Earnings (Loss) Per Common Share (“EPS”) for further details.
Bankruptcy
On December 12, 2018 (the “Petition Date”), Parker Drilling and certain of its U.S. subsidiaries (collectively, the “Debtors”) filed a prearranged plan of reorganization (the “Plan”) and commenced voluntary petitions under chapter 11 (the “Chapter 11 Cases”) of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Bankruptcy Court”). The Plan was confirmed by the Bankruptcy Court on March 7, 2019, and the Debtors emerged from the bankruptcy proceedings on March 26, 2019. The consolidated financial statements included herein have been prepared as if we were a going concern and in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 852 - Reorganizations (“Topic 852”). See Note 2 - Chapter 11 Emergence and Note 3 - Fresh Start Accounting for further details.

13


Table of Contents


Note 2 - Chapter 11 Emergence
On December 12, 2018, prior to the commencement of the Chapter 11 Cases, the Debtors entered into a restructuring support agreement (as amended on January 28, 2019, the “RSA”) with certain significant holders of (1) 7.50% Senior Notes, due 2020 (the “7.50% Note Holders”) issued pursuant to the indenture (the “7.50% Notes Indenture”) dated July 30, 2013 (the “7.50% Notes”), by and among Parker Drilling, the subsidiary guarantors party thereto and Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), (2) 6.75% Senior Notes, due 2022 (the “6.75% Note Holders”) issued pursuant to the indenture (the “6.75% Notes Indenture”) dated January 22, 2014 (the “6.75% Notes” and together with the 7.50% Notes, the “Senior Notes”), by and among Parker Drilling, the subsidiary guarantors party thereto and the Trustee, (3) Parker Drilling’s existing common stock (the “Predecessor Common Stock”) and (4) Parker Drilling’s 7.25% Series A Mandatory Convertible Preferred Stock (the “Predecessor Preferred Stock” and such holders to support a restructuring (the “Restructuring”) on the terms set forth in the Plan.
On the Petition Date, the Debtors filed voluntary petitions for reorganization under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas pursuant to a prearranged plan of reorganization. The Plan was confirmed by the Bankruptcy Court on March 7, 2019, and the Debtors emerged from the bankruptcy proceedings on March 26, 2019.
References to “Successor” relate to the consolidated condensed statement of operations or consolidated condensed balance sheet of the reorganized Company as of and subsequent to March 31, 2019. References to “Predecessor” relate to the consolidated condensed balance sheet of the Company prior to, and consolidated condensed statement of operations through and including, March 31, 2019.
On March 26, 2019:
(1)
the Company amended and restated its certificate of incorporation and bylaws;
(2)
the Company appointed new members to the Successor’s board of directors to replace directors of the Predecessor;
(3)
the Company issued:
2,827,323 shares of Successor Common Stock pro rata to 7.50% Note Holders;     
5,178,860 shares of Successor Common Stock pro rata to 6.75% Note Holders;     
90,558 shares of Successor Common Stock and 1,032,073 Successor warrants to purchase 1,032,073 shares of Successor Common Stock pro rata to holders of the Predecessor Preferred Stock;     
135,838 shares of Successor Common Stock and 1,548,109 Successor warrants to purchase 1,548,109 shares of Successor Common Stock pro rata to holders of the Predecessor Common Stock;
504,577 shares of Successor Common Stock to commitment parties under that certain Backstop Commitment Agreement, dated December 12, 2018 and amended and restated on January 28, 2019, (as amended and restated, the “Backstop Commitment Agreement”) in respect of the commitment premium due thereunder;
1,403,910 shares of Successor Common Stock to the commitment parties under the Backstop Commitment Agreement in connection with their backstop obligation thereunder to purchase unsubscribed shares of Successor Common Stock; and
4,903,308 shares of Successor Common Stock to participants in the rights offering extended by Parker to the applicable classes under the Plan (including to the commitment parties party to the Backstop Commitment Agreement).

14


Table of Contents


Reorganization Items
Any expenses, gains and losses that are realized or incurred subsequent to and as a direct result of the Chapter 11 Cases are recorded under reorganization items on our consolidated condensed statement of operations.
Reorganization items consisted of:
 
Successor
 
 
Predecessor

Three Months Ended June 30,
 
 
Three Months Ended March 31,
 
Six Months Ended June 30,
Dollars in thousands
2019
 
 
2019
 
2018
Gain on settlement of liabilities subject to compromise
$

 
 
$
(191,129
)
 
$

Fresh start valuation adjustments

 
 
242,567

 

Professional fees
962

 
 
30,107

 

Backstop premium on the rights offering paid in stock

 
 
11,033

 

Other

 
 
399

 

Reorganization items
$
962

 
 
$
92,977

 
$


Supplemental cash flow information related to reorganization items paid is as follows:
 
Successor
 
 
Predecessor
 
Three Months Ended June 30,
 
 
Three Months Ended March 31,
 
Six Months Ended June 30,
Dollars in thousands
2019
 
 
2019
 
2018
Reorganization items paid
$
20,132

 
 
$
8,617

 
$


Debtor in Possession Financing
Amounts outstanding against the debtor in possession financing facility were $10.0 million as of December 31, 2018. The debtor in possession financing facility was terminated as of March 26, 2019.
Liabilities Subject To Compromise
Pre-petition unsecured and under-secured obligations that could have been impacted by the Chapter 11 Cases have been classified as liabilities subject to compromise on our Predecessor consolidated condensed balance sheet. These liabilities were reported at the amounts allowed as claims by the Bankruptcy Court.
Liabilities subject to compromise consisted of:
 
Successor
 
 
Predecessor
Dollars in thousands
June 30,
2019
 
 
December 31,
2018
Predecessor 6.75% senior notes, due July 2022
$

 
 
$
360,000

Predecessor 7.50% senior notes, due August 2020

 
 
225,000

Accrued interest on predecessor senior notes

 
 
15,996

Liabilities subject to compromise
$

 
 
$
600,996


Contractual interest expense for the three months ended March 31, 2019, on our senior notes was $10.3 million; however, no interested expense was accrued on the senior notes, as they were impaired and extinguished upon emergence. See also Note 6 - Debt for further details.

15


Table of Contents


Note 3 - Fresh Start Accounting
Upon emergence from bankruptcy, we adopted fresh start accounting (“Fresh Start Accounting”) in accordance with Topic 852, which resulted in the Company becoming a new entity for financial reporting purposes. In accordance with Topic 852, the Company is required to adopt Fresh Start Accounting upon its emergence from bankruptcy because (1) the holders of the then existing common shares of the Predecessor received less than 50 percent of the new common shares of the Successor outstanding upon emergence and (2) the reorganization value of the Company’s assets immediately prior to confirmation of the Plan was less than the total of all post-petition liabilities and allowed claims.
Upon adoption of Fresh Start Accounting, the reorganization value derived from the enterprise value as disclosed in the Plan was allocated to the Company’s assets and liabilities based on their fair values (except for deferred income taxes) in accordance with FASB ASC Topic No. 805 - Business Combinations. The amount of deferred income taxes recorded was determined in accordance with FASB ASC Topic No. 740 - Income Taxes.
We evaluated the events between March 26, 2019 and March 31, 2019 and concluded that the use of an accounting convenience date of March 31, 2019 (“Fresh Start Reporting Date”) would not have a material impact on our consolidated condensed statement of operations or consolidated condensed balance sheet. As such, the application of fresh start accounting was reflected in our condensed consolidated balance sheet as of March 31, 2019 and fresh start accounting adjustments related thereto were included in our consolidated condensed statement of operations for the three months ended March 31, 2019.
As a result of the adoption of Fresh Start Accounting and the effects of the implementation of the Plan, the Company’s consolidated condensed financial statements of the Successor, are not comparable to its consolidated condensed financial statements of the Predecessor.
The Company’s consolidated condensed financial statements and related footnotes are presented with a “black line” division, which emphasizes the lack of comparability between amounts presented as of and after March 31, 2019 and amounts presented for all prior periods. The Company’s financial results for future periods following the application of Fresh Start Accounting will be different from historical trends and the differences may be material.
Reorganization Value
Under Topic 852, the Successor determined a value to be assigned to the equity of the emerging entity as of the date of adoption of Fresh Start Accounting. The Plan confirmed by the Bankruptcy Court estimated a range of enterprise values between $365.0 million and $485.0 million, with a midpoint of $425.0 million. The Company deemed it appropriate to use the midpoint between the low end and high end of the range to determine the final enterprise value of $425.0 million.
The following table reconciles the enterprise value to the estimated fair value of our Successor Common Stock as of the Fresh Start Reporting Date:
Dollars in thousands
 
Enterprise value
$
425,000

Cash and cash equivalents and other
127,800

Fair value of term loan
(210,000
)
Fair value of successor stockholders’ equity
$
342,800

The following table reconciles the enterprise value to the reorganization value of the Successor’s assets to be allocated to the Company’s individual assets as of the Fresh Start Reporting Date:
Dollars in thousands
 
Enterprise value
$
425,000

Cash and cash equivalents and other
127,800

Current liabilities
140,596

Non-current liabilities excluding long-term debt
20,985

Reorganization value of successor assets
$
714,381

With the assistance of financial advisors, we determined the enterprise and corresponding equity value of the Successor by calculating the present value of future cash flows based on our financial projections. The enterprise value and corresponding equity value are dependent upon achieving the future financial results set forth in our valuations, as well as the realization of

16


Table of Contents


certain other assumptions. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond our control. Accordingly, we cannot assure you that the estimates, assumptions, valuations or financial projections will be realized, and actual results could vary materially.
Valuation Process
The fair values of the Company’s principal assets, including drilling equipment, rental tools, real property, and intangible assets were estimated with the assistance of third party valuation advisors. The income approach, market approach, and the cost approach were considered for estimating the value of each individual asset. Although the income approach was not applied to value the machinery and equipment and real property assets individually, the Company did consider the earnings of the reporting unit within which each of these assets reside. Economic obsolescence related to machinery and equipment and real property was also considered and was applied to stacked and underutilized assets based upon the status of the asset. Economic obsolescence was also considered in situations in which the earnings of the applicable reporting unit in which the assets are employed suggest economic obsolescence. When penalizing assets for economic obsolescence, an additional economic obsolescence penalty was levied, while considering scrap value to be the floor value for an asset. Because more than one approach was used to develop a valuation, the various approaches were reconciled to determine a final value conclusion. The reorganization value was allocated to the Company’s individual assets and liabilities based on their fair values as follows:
Rig Materials and Supplies
The fair value of the rig materials and supplies was determined using the direct and indirect cost approaches. The rig materials and supplies were analyzed on a line-by-line basis and each asset was adjusted for age, physical depreciation, and obsolescence.
Property, Plant and Equipment
Building, Land and Improvements
The fair value of the land assets was estimated using the sales comparison (market) approach, which involved gathering data on comparable sales and current listings of land in each subject market, then adjusting the unit price (per acre or per square foot) of each comparable for differences in market conditions, location, size, and other factors. A per unit value conclusion was then determined based on the adjusted prices of the comparable sales and listings. Fair value of buildings and improvements was estimated using the direct cost approach, in which the estimated replacement cost new of the improvements was adjusted for accrued physical depreciation and any functional or external obsolescence. As a supporting approach, the total fair value of all real property assets for each location was estimated using the sales comparison (or market approach). Held for sale assets were included at their respective pending or listed prices. The fair value of the leasehold improvements was determined using the cost approach, adjusted as needed for asset type, age, physical deterioration and obsolescence.
Rental Tools
The fair value of the rental tools was determined using a combination of the cost approach and sales comparison (market) approach depending upon the asset type. The fair value utilizing the cost approach was adjusted as needed for asset type, age, physical deterioration, and obsolescence. For assets where an active secondary market exists, we utilized the sales comparison (market) approach to estimate the fair value of the assets, which involved gathering market data and analyzing comparable sales of similar assets.
Drilling Equipment
The fair value of the drilling equipment was determined using a combination of the discounted cash flow method (income approach), the cost approach, and the sales comparison (market) approach. The income approach was utilized to estimate the fair value of drilling equipment that generated positive returns on projected cash flows over the remaining economic useful life of the drilling equipment and compared to the fair value utilizing the cost approach, adjusted as needed for asset type, age, physical deterioration and obsolescence. For assets where an active secondary market exists we utilized the sales comparison (market) approach to estimate the fair value of the assets, which involved gathering market data and analyzing comparable sales of similar assets.
Intangible Assets
We applied the income approach methodology to estimate the value of the customer relationships, trade name, and developed technology. We determined the value of the customer relationships based on the present value of the incremental after-tax cash flows attributable only to the intangible asset. The