Parker Drilling Company (PKD) Barclay’s CEO Conference Call September 6, 2012 11:45 am ET Executives Robert L. Parker Jr. – Executive Chairman, President and Chief Executive Officer W. Kirk Brassfield – Senior Vice President and Chief Financial Officer Presentation Unidentified Analyst
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I will start off today with forward-looking statement again, just to make sure you’re aware of this, and with our SEC filings, you’re aware of the risk statements and risk identifications that we have in there. I will go from there to quick look at our strategy for our company, obviously you can see across the top line what our strategy is, and then our competitive strength as listed down below is safety, which is primarily one of the strongest suits of our company. Training that ties into safety; technology, the things that we do around the world that we will talk about some, and then performance in terms of our drilling and value that we create for our customer and through our rental tool division, what we’re able to do again for our customers in those areas.Talk about our business segments, just as a highlight very quickly. We have five business segments with rental tools, which I will talk about U.S. barge drilling business, which is doing very well right now. Our Alaska division is listed under U.S. drilling and I’m going to talk about that today. Our international drilling, I’ll give a quick update there and then technical services. Those are our general business segments that we report on our company and then down below there you can comment on what’s up and what the definition of what those segments are. I’ll start with just brief update on international. International has still been a weak point for us. International has not recovered since the financial issues in late 2000s. We’re still working on getting the international utilization up, Kazakhstan in area that still is a issue for us, where we have nine rigs located and only two rigs working, and we talked about those selling rigs there and moving rigs out of the country to more active areas, and we’re continuing to pursue both of those but just continue to hamper our international utilization.
Our look forward there, just so that you’re aware of our utilization here for a while. You can see where it’s continuing to be weak and we actually don’t forecast much of improvement, in fact we have to forecast continued weakening into the first quarter next year still be aware of that. We have a new team on marketing they’re charged with turning this issue around addressing this issue.We’re seeing a record number of tenders coming right now, so we are optimistic on this turning around sometime during 2013 and just as a warning here in the near term that we’re seeing further weakening, but don’t think we’re not addressing the issue but we certainly are through our efforts and through our tenders that we receive and respond to. Today’s talk is going to be a little different. Outside of international, I’m going to talk about primarily Alaska, our AADU rigs for BP, and the status of those, and then our rental tool starts, a rental tool company, where we are there with the U.S. land drilling business. So we’ll start with Alaska. The AADU Prudhoe Bay rigs for BP, there is a picture of them right taken last Tuesday upon the slope, and showed you what status there or what they look like right now in our yard, these rigs are still in rig up, and I’m going to cover that. First, I want to make sure people are aware of where we’re talking about, so we’re going to go to Alaska here with the slide, and talk about Prudhoe Bay, which is the northern of the slope there shown in the orange color. The pipeline runs right up through there, and these rigs are really targeted for the main Prudhoe Bay operation for the BP side of the field, ConocoPhillips operates the other side of the field, this is oil, this is planned long-term drilling, so these rigs will have a lot of drilling to do once they get in the field and start working. Read the rest of this transcript for free on seekingalpha.com