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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: jim_p who wrote (26580)	10/22/2003 6:13:51 PM
From: excardog	Read Replies (1) \| Respond to of 206085

And the army helmet! Could be fun.

To: jim_p who wrote (26580)	10/22/2003 6:20:36 PM
From: excardog	Respond to of 206085

The Wolf reports: Grey Wolf, Inc. Announces Operating Results for the Quarter Ended September 30, 2003 HOUSTON, Oct 22, 2003 /PRNewswire-FirstCall via COMTEX/ -- Grey Wolf, Inc. (Amex: GW) ("Grey Wolf" or the "Company"), reported a net loss of $7.0 million, or $0.04 per share on a diluted basis, for the three months ended September 30, 2003, compared with a net loss of $6.1 million, or $0.03 per share on a diluted basis, for the third quarter of 2002. Revenues for the third quarter of 2003 were $72.4 million compared with revenues for the third quarter of 2002 of $61.1 million. For the nine months ended September 30, 2003, the Company reported a net loss of $30.8 million, or $0.17 per share on a diluted basis, compared with a net loss of $12.4 million, or $0.07 per share on a diluted basis for the first nine months of 2002. The net loss for the nine months of 2003 includes approximately $8.5 million ($5.6 million after tax) in charges related to debt refinancing which was completed in the second quarter. Revenues for the first nine months of 2003 were $201.7 million compared with revenues for the first nine months of 2002 of $188.9 million. Tom Richards, Chairman, President and Chief Executive Officer commented, "Our third quarter operating margin of $7.9 million was up a half million dollars from the previous quarter, reflecting Grey Wolf's capabilities in turnkey drilling. Robust turnkey bid activity continues, and we expect this segment of our business to remain strong. The market for rigs working under daywork contracts remains highly competitive despite the increase in rig count. As the rig count has increased, deep drilling has lagged which has impacted Grey Wolf's daywork margins as the bias of Grey Wolf's rig fleet is towards deep gas drilling." Mr. Richards continued, "The fundamentals for natural gas remain positive and gas prices are at levels which should encourage both exploratory and developmental drilling. Leading edge bid rates in our core markets remain between $7,750 and $9,500 without fuel or top drives. As operators become more confident that current gas prices are sustainable, we believe their drilling programs will inevitably move to the deeper, more difficult geological plays which should improve our business in 2004. Nevertheless, we are working to improve operating margins by reducing overhead costs, and eliminating expenses that do not add essential value for our customers. We believe these cost cutting measures will further improve our operating margins." Grey Wolf averaged 62 rigs working in the third quarter of 2003, compared to 60 rigs in the second quarter of 2003 and 55 in the third quarter of 2002. The Company has averaged 64 rigs running to date in the fourth quarter. Total operating margin for the third quarter of 2003 was $7.9 million compared with $11.3 million a year ago and $7.4 million for the second quarter of 2003. Operating margin consists of revenues less drilling operations expenses. Grey Wolf's operating margin per rig day in the third quarter of 2003 was $1,389, compared to $2,225 per rig day for the third quarter a year ago and $1,350 for the second quarter of 2003. The lower operating margins compared to 2002 are primarily a result of the replacement of expiring term contracts with spot market contracts at lower rates. Capital expenditures were $7.6 million for the third quarter of 2003. Capital expenditures for all of 2003 are projected to be $33.0 million to $35.0 million, subject to the actual level of rig activity. The Company currently has 80 marketed rigs and 22 cold-stacked rigs that can be deployed quickly with relatively little capital outlay. In addition, 15 inventory rigs are available for refurbishment and reactivation as demand dictates. Based on currently anticipated levels of activity and dayrates, the Company expects to generate an operating margin of approximately $10.5 million, or $1,700 per rig day for the fourth quarter of 2003. Net loss per share is expected to be approximately $0.03 on a diluted basis, projecting an annual tax benefit rate of approximately 35%. The Company expects depreciation expense of approximately $12.9 million and interest expense of approximately $3.6 million in the fourth quarter of 2003. Grey Wolf has scheduled a conference call October 23, 2003 at 9:00 a.m. CT to discuss third quarter 2003 results. The call will be webcast live on the internet through the Investor Relations page on the Company's website at: