Annual report pursuant to Section 13 and 15(d)

Chapter 11 Cases (Tables)

v3.19.1
Chapter 11 Cases (Tables)
12 Months Ended
Dec. 31, 2018
Reorganizations [Abstract]  
Schedule of Expenses Incurred Subsequent to and as a Direct Result of Chapter 11 Cases Reorganization items were $9.8 million for the year ended December 31, 2018, which consisted of:
Dollars in thousands
December 31, 2018
6.75% Senior Notes, due July 2022 - unamortized debt issuance costs
$
3,775

7.50% Senior Notes, due August 2020 - unamortized debt issuance costs
1,580

2015 Secured Credit Agreement - unamortized debt issuance costs
1,208

Professional fees
2,251

DIP facility costs
975

Reorganization items
$
9,789

Schedule of Liabilities Subject to Compromise Liabilities subject to compromise as of December 31, 2018 were $601.0 million, which consisted of:
Dollars in thousands
December 31, 2018
6.75% Senior Notes, due July 2022

$
360,000

7.50% Senior Notes, due August 2020

225,000

Accrued interest on Senior Notes
15,996

Liabilities subject to compromise
$
600,996

Debtor in Possession Financial Statements Following are the consolidated financial statements of the entities included in the Chapter 11 Cases:
PARKER DRILLING COMPANY (DEBTOR IN POSSESSION)
CONSOLIDATED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
 
December 31,
 
2018
ASSETS
Current assets:

Cash and cash equivalents
$
15,226

Restricted cash
10,389

Accounts and Notes Receivable, net of allowance for bad debts of $808 at December 31, 2018 (1)
223,296

Rig materials and supplies
1,650

Deferred costs
975

Other tax assets
183,356

Other current assets
18,329

Total current assets
453,221

Property, plant and equipment, net of accumulated depreciation of $526,166 at December 31, 2018
369,510

Intangible assets, net
4,821

Rig materials and supplies
7,036

Deferred income taxes
23,576

Intra-group advances
549,460

Investment in subsidiaries
893,550

Other non-current assets
1,452

Total assets
$
2,302,626

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:

Debtor in possession financing
$
10,000

Accounts payable (2)
286,840

Accrued liabilities
28,184

Accrued income taxes
204,518

Total current liabilities
529,542

Other long-term liabilities (3)
728,218

Long-term deferred tax liability
36,463

Total liabilities not subject to compromise
1,294,223

Liabilities subject to compromise
600,996

Total stockholders’ equity
407,407

Total liabilities and stockholders’ equity
$
2,302,626


(1)
Includes intra-group receivables in the amount of $174.7 million.
(2)
Includes intra-group payables in the amount of $213.2 million.
(3)
Includes intra-group liabilities in the amount of $314.6 million.
PARKER DRILLING COMPANY (DEBTOR IN POSSESSION)
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
 
 
Year Ended
December 31,
2018
Revenues
$
203,585

Expenses:

Operating expenses
115,269

Depreciation and amortization
76,353


191,622

Total operating gross margin (loss)
11,963

General and administrative expense
(23,539
)
Loss on impairment
(40,917
)
Gain (loss) on disposition of assets, net
(1,347
)
Pre-petition restructuring charges
(21,820
)
Reorganization items
(9,789
)
Total operating income (loss)
(85,449
)
Other income (expense):

Interest expense
(45,488
)
Interest income
1,152

Other
6

Equity in net earnings of subsidiaries
(33,040
)
Total other income (expense)
(77,370
)
Income (loss) before income taxes
(162,819
)
Income tax expense (benefit):


Current tax expense
1,517

Deferred tax expense (benefit)
1,361

Total income tax expense (benefit)
2,878

Net income (loss)
(165,697
)
Less: Convertible preferred stock dividend
2,719

Net income (loss) attributable to debtor entities
$
(168,416
)



PARKER DRILLING COMPANY (DEBTOR IN POSSESSION)
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
Year Ended December 31,
 
2018
Cash flows from operating activities:

Net income (loss)
$
(165,697
)
Adjustments to reconcile net income (loss):

Depreciation and amortization
76,353

Gain (loss) on disposition of assets, net
1,347

Deferred tax expense (benefit)
1,361

Loss on impairment
40,917

Reorganization items
7,538

Expenses not requiring cash
4,224

Equity in net earnings of subsidiaries
33,040

Change in assets and liabilities:


Accounts and notes receivable
(2,189
)
Rig materials and supplies
(4,454
)
Other current assets
(41,564
)
Other non-current assets
2,586

Accounts payable and accrued liabilities
(559
)
Accrued income taxes
29,818

Net cash provided by (used in) operating activities
(17,279
)
Cash flows from investing activities:


Capital expenditures
(56,897
)
Proceeds from the sale of assets
87

Net cash provided by (used in) investing activities
(56,810
)
Cash flows from financing activities:


Proceeds from borrowing under DIP facility
10,000

Payment of DIP facility costs
(975
)
Convertible preferred stock dividend
(3,625
)
Payments of debt issuance costs
(1,443
)
Shares surrendered in lieu of tax
(251
)
Net cash provided by (used in) financing activities
3,706

Net increase (decrease) in cash and cash equivalents
(70,383
)
Cash, cash equivalents and restricted cash at beginning of period
95,998

Cash, cash equivalents and restricted cash at end of period
$
25,615