****** NEWS FLASH ******
Company Press Release
UTI Energy Acquires Peterson Drilling Co.
Acquisition Provides UTI With Eight Additional Rigs and Immediate Entry
into Southeastern New Mexico
HOUSTON--(BUSINESS WIRE)--April 9, 1998--UTI Energy Corp. (AMEX: UTI - news)
today announced that it has acquired Peterson Drilling Co., a privately-owned drilling contractor
with principal operations in southeastern New Mexico, for approximately $20.4 million in cash.
Included in the acquisition are Peterson's eight drilling rigs, all of which are currently operating, and
approximately $3.3 million in cash.
''We are very honored to add Peterson Drilling to UTI's growing roster of operating units,'' said
Mark S. Siegel, UTI's Chairman. ''Working together as a team, Ray and Leroy Peterson have built
Peterson Drilling into one of the most successful companies in the land drilling industry. Ray
Peterson, President of Peterson Drilling, is recognized throughout the industry for his vision and
integrity. He currently serves as Chairman of the International Association of Drilling Contractors,
the trade association representing our entire industry.
''From a strategic standpoint, Peterson Drilling represents an ideal fit with UTI. It has a strong
owner/manager, up-to-date drilling equipment that is being fully utilized, excellent operating results,
with operating cash flow of approximately $6 million in 1997, outstanding relations with its
customers, many of whom are on continuous contracts with the company, and is a major player in its
market,'' Mr. Siegel added.
UTI's Chief Executive Officer, Vaughn E. Drum, said, ''Peterson Drilling provides UTI with an
immediate established presence in southeastern New Mexico, an important niche market that has
historically been difficult to enter. We are particularly pleased that both Ray and Leroy Peterson,
together with their entire management team, will continue to run the operations. Their knowledge of
the local drilling conditions, plus their long-standing customer relationships should make the transition
virtually seamless.''
Ray Peterson, President of Peterson Drilling, said, ''We were attracted to UTI Energy for two basic
reasons. First is their philosophy of having a decentralized management whereby we would continue
to be responsible for our company and meet the needs of our customers and employees. Second, as
a member of UTI's family, we will now have greater access to the resources that we need to
continue to build the business and take advantage of new opportunities. UTI is not only extremely
well capitalized with a very strong balance sheet, but they have the capability of supplying us with
additional drilling equipment as may be required. We believe that by joining the UTI team, we will
now have the financial and physical resources to capitalize on opportunities in New Mexico for
significant growth.''
UTI Energy Corp. is a leading provider of contract drilling and pressure pumping services in the
continental United States. With the addition of Peterson Drilling Co., the Company's subsidiaries
now own 97 drilling rigs that provide drilling services primarily in Texas, Oklahoma, New Mexico
and the Northeast. The Company's pressure pumping subsidiary provides stimulation and cementing
services in the Northeast.
Statements made in this press release that state the Company's or management intentions, beliefs,
expectations or predictions for the future are forward-looking statements. It is important to note that
the Company's actual results could differ materially from those projected in such forward-looking
statements. In addition to the factors set forth above, other important factors that could cause actual
results to differ materially include, but are not limited to, the impact of recent declines in prices of oil
and gas on the demand for the Company's services, and its associated effect on day rates and rig
utilization, industry conditions, integration of acquisitions, demand for oil and gas, and ability to retain
management and field personnel. Additional information concerning factors that could cause actual
results to differ materially from those in the forward-looking statements is contained from time to
time in the Company's SEC filings, including but not limited to the Company's report on Form 10-K
for the year ended December 31, 1997. Copies of these filings may be obtained by contacting the
Company or the SEC.
Contact:
UTI Energy Corp., Houston
P. Blake Dupuis, 281/873-4111
or
Sitrick and Co.
Jeffrey Lloyd, 310/788-2850
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