This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Union Drilling, Inc. Q2 2010 Earnings Call Transcript

These all represent slight improvements over the first quarter, but the bottom line is certainly not where we want or expect it to be. Utilization averaged 45% for the quarter, which represents an improvement over 39.6% in Q1 and 34.7% in last years second quarter.

Increases in utilization were driven primarily by the rapid ramp up in West Texas Oil Drilling and to a lesser extent by increased activity in the Arkoma Basil. This was some what offset by atypical weakness in Appalachia, driven by low gas prices, regulatory and permitting uncertainty and a well fire that put one of our rigs out of service.

Regarding that well fire, on June 7, rig 43 was in the early stages of drilling the Marcellus well in Northern West Virginia, prior to setting any casing, when it encountered a pocket of methane gas was ignited and caused a fire at the surface. Since no casing was set, there was no blow up preventer or well control equipment installed and the fire burned to a height of about 40 feet for five days.

Seven workers were injured, including five Union Drilling employees. I am thankful that the workers are progressing well in their recovery from second-degree burns to exposed areas such as their hands, neck and face.

As a result of this fire, the main components of the rig such as derrick, substructure and top drive were destroyed and the State of West Virginia suspended permitting. Given this fire and another substantial Marcellus gas leak in July that did not ignite, it is not surprising the permits are now requiring shallower surface casing strings, so that blow out preventors can be installed earlier in the drilling process.

As a result of that incident, and possibly several other high profile accidents by other operators, the Pennsylvania DEP undertook an investigation of union drillings operating there. We are please to report that this investigation concluded with no violations being found on those rigs. I’ll talk more about our safety programs in a few minutes.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.44 0.00%
FB $87.28 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%
YHOO $39.38 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs