Parker Drilling Reports 2009 Third Quarter Earnings of $0.06 Per Share; Adjusted EPS of $0.04, Excluding Non-Routine Items

HOUSTON, Nov. 3 /PRNewswire-FirstCall/ -- Parker Drilling (NYSE: PKD), a global drilling contractor and service provider, today reported results for the quarter ended Sept. 30, 2009, including net income of $7.1 million or $0.06 per diluted share on revenues of $181.4 million, compared to net income of $17.8 million or $0.16 per diluted share on revenues of $227.5 million for the prior year's third quarter. Excluding the effect of non-routine items, the Company reported 2009 third quarter net income of $4.4 million or $0.04 per diluted share, compared to similarly adjusted 2008 third quarter net income of $21.6 million or $0.19 per diluted share.

"The results of this past quarter reflect the harsh conditions that prevailed in many of our markets as well as the durability and resilience of the Company's strategy, business balance and geographic diversity," said executive chairman Robert L. Parker Jr. "Through cost management actions we were able to moderate the adverse effects on our operations' results while employing our business strategy to advance our competitive position and strengthen our business."

Third Quarter Highlights:

    --  Revenues of $181.4 million were 20 percent below the prior year's third
        quarter revenues of $227.5 million.  Increased revenues related to
        project management and construction contracts partially offset declines
        in worldwide drilling and tool rental revenues;
    --  Gross margin as a percent of revenues increased for International
        Drilling and Project Management and Engineering Services, compared with
        the prior year's third quarter.  These improvements partially offset
        lower gross margin profitability from Parker's U.S. Barge Drilling and
        Rental Tools operations;
    --  The U.S. Barge Drilling segment recorded a positive gross margin for the
        third quarter, and improved its year-to-date gross margin to
        better-than-breakeven. This is a notable achievement in the industry,
        which has experienced a severe downturn in activity and declining
        dayrates;
    --  Parker successfully completed the sealift of the BP-owned "Liberty" rig
        to its operating site off Alaska's North Slope and has initiated rig-up
        and commissioning activities.  During the quarter Parker was awarded the
        operations and maintenance contract for the rig's initial drilling
        program;
    --  The construction of the two Parker-owned arctic land rigs continues on
        schedule for a 2010 deployment to the North Slope to begin drilling on
        five-year contracts for BP;

    --  The Company achieved a better-than-industry average safety performance. 
        Parker's September year-to-date Total Recordable Incident Rate (TRIR) of
        0.55 surpassed the Company's 2008 industry-leading TRIR of 0.66.

"Our recent results reflect the severe industry downturn of the past several quarters," said Mr. Parker. "The International Drilling, U.S. Gulf of Mexico Barge Drilling and Rental Tools segments experienced significant declines in revenues, compared to the prior year's third quarter. This was caused by lower utilization for the international rig fleet, lower utilization and lower dayrates for the barge drilling operation, and price discounts for rental tools. Meanwhile, Project Management & Engineering Services revenues grew due to the long-term nature of our customers' plans and programs; and Construction Contract revenues increased in line with progress on the Liberty rig. Each of these two operations achieved an increase in gross margin and gross margin as a percent of revenues.

"Despite these difficult and challenging market conditions, our operations overall were profitable, including the contribution from our barge drilling business which recorded a 19 percent gross margin as a percent of revenues this past quarter and has achieved a positive gross margin year-to-date.

"Business activity may have neared the bottom in the third quarter and there are tentative signs that improvement is underway," continued Mr. Parker. "Our U.S. Gulf of Mexico barge rig utilization rate increased sequentially in each of the last two quarters, rental tool placements have risen, the number of tenders for international drilling contracts has grown and project management opportunities have expanded. There are still areas of concern - dayrates remain under pressure, tool rental rates are heavily discounted, and contract commitments are slow to develop. Overall, though, the outlook is slowly improving. I believe these are times of opportunity, when Parker Drilling can make competitive and strategic gains based on the strength of our operations and business relationships," he concluded.

Financial Review

For the three months ended Sept. 30, 2009, Parker Drilling posted net income of $7.1 million, or $0.06 per diluted share, on revenues of $181.4 million, compared to net income of $17.8 million, or $0.16 per diluted share, on revenues of $227.5 million for the 2008 third quarter. Excluding the impact of non-routine items, adjusted net income for the 2009 third quarter was $4.4 million or $0.04 per diluted share, compared with 2008 third quarter adjusted net income of $21.6 million or $0.19 per diluted share. (The results for 2008 have been restated for the impact of the recently issued guidance related to accounting for convertible debt instruments). The results for the 2009 third quarter included non-routine net after-tax income of $2.7 million, or $0.02 per diluted share. This includes expenses related to previously disclosed investigations by the Department of Justice and the Securities and Exchange Commission regarding the Company's utilization of the services of a customs agent in certain countries and an internal investigation regarding U.S. economic sanctions related to the Company's operations in Turkmenistan and the write-off of a prepayment to an equipment supplier who went bankrupt. This was more than offset by income from the recovery of previously unutilized foreign tax credits. The results for the 2008 third quarter included non-routine net after-tax expense of $3.8 million, or $0.03 per diluted share, for non-routine items. (Details of the non-routine items are provided in the attached financial tables.)

U.S. Barge Drilling revenues for the 2009 third quarter declined 72 percent, to $12.4 million from $44.7 million for the 2008 third quarter, due to lower utilization and reduced dayrates for the Gulf of Mexico barge drilling fleet. International Drilling revenues fell 31 percent, to $64.0 million from $92.2 million, the result of lower average fleet utilization. Rental Tools revenues decreased 48 percent, to $23.9 million from $46.0 million, primarily from the decline in U.S. land and Gulf of Mexico shelf drilling activity and the impact of increased discounts. The declines were partially offset by increased demand for workover equipment, growing coverage in the active shale regions and additional offshore deep drilling accounts. Revenues for Project Management and Engineering Services increased 7 percent, to $25.9 million from $24.1 million, reflecting the contribution from a FEED (Front End Engineering & Design) study for a drilling package on the Arkutun-Dagi platform offshore Sakhalin Island, Russia and pre-operational revenues related to the BP-owned Liberty rig. Construction Contract segment revenues of $55.3 million, represents the Company's progress on delivering, rigging-up and commissioning the Liberty rig.

Adjusted EBITDA, after non-routine items, for the 2009 third quarter was $38.1 million compared to $76.0 million in the 2008 third quarter. (Adjusted EBITDA is a non-GAAP financial measure. The calculations of adjusted EBITDA and reconciliation to the most directly comparable GAAP measure are provided in the attached financial tables).

International Drilling's gross margin decreased 23 percent to $22.0 million from the prior year's third quarter gross margin of $28.5 million. Gross margin as a percent of revenues was 34.4 percent in the 2009 third quarter compared to 31.0 percent in the prior year's third quarter. The increase in gross margin percent was primarily the result of lower operating costs throughout the segment.

Project Management and Engineering Services' gross margin for the 2009 third quarter increased significantly to $6.4 million from $2.6 million for the prior year's third quarter. Gross margin as a percent of revenues was 24.9 percent for the 2009 third quarter compared to 11.0 percent in the prior year's third quarter. Much of this improvement was due to the contribution from the Arkutun-Dagi platform and Liberty rig projects and a lower level of reimbursables in the current quarter.

U.S. Barge Drilling reported a gross margin of $2.3 million for the 2009 third quarter, the result of cost management actions and fleet deployment initiatives put in place to counter the low level of activity in the market. The third quarter performance is in line with the Company's objective to enhance its position as the leading and preferred contractor in the U.S. Gulf of Mexico barge drilling market and achieve a better-than-breakeven cash flow for this segment this year.

The decline in gross margin for Rental Tools, to $11.7 million for the 2009 third quarter from $27.8 million for the prior year's third quarter, reflected a decline in overall demand due to reduced drilling activity in the U.S. land market and Gulf of Mexico shelf. This led to competitive discounting of rental rates that has impacted the segment's gross margin and gross margin as a percent of revenues.

For the first nine months of 2009, Parker reported a 7 percent decline in revenues, to $577.1 million from $617.5 million for the same period in the prior year. Adjusted EBITDA, excluding non-routine items, declined 37 percent, to $132.3 million from $210.0 million for the comparable period. Earnings per diluted share, excluding non-routine items, was $0.15, down from $0.56 for the same period of 2008.

Operations Review

    --  Average utilization of international rigs, both land and barge rigs, for
        the 2009 third quarter was 61 percent, compared to 84 percent for the
        prior year's third quarter and 68 percent for the 2009 second quarter. 
        (Average utilization for each international region's rig fleet by
        quarter is available in the "Rig Utilization Schedule" posted on
        Parker's website under "Investor Relations" at "Quarterly Support
        Materials".)
        --  The Company's Americas region operated at 75 percent average
            utilization, with eight of ten rigs having worked during the period,
            including one rig that began work in September on a multi-well
            contract.  Seven of the ten rigs in this region have commitments to
            work into 2010.
        --  Parker's twelve rigs located in the Commonwealth of Independent
            States / Africa Middle East (CIS / AME) region achieved average
            utilization of 69 percent, with nine rigs having worked during the
            period.  Seven of the twelve rigs in the CIS / AME region are
            operating under contracts that extend beyond 2009.
        --  The eight-rig Parker fleet located in the Asia Pacific region
            operated at 40 percent average utilization, with four of the eight
            rigs having worked during the period.  One rig began work in August
            under a new term contract.  While most contracts in this region are
            for short duration projects, three rigs are committed to programs
            that extend into 2010.
    --  Average utilization for the Company's Gulf of Mexico barge rigs for the
        2009 third quarter was 33 percent, compared to 79 percent for the prior
        year's third quarter and 30 percent for the 2009 second quarter. 
        Currently, barge rig utilization is 60 percent.  The Company's barge
        dayrates in the Gulf of Mexico averaged $26,200 during the 2009 third
        quarter, compared to $39,900 per day in the 2008 third quarter and
        $29,800 per day in the 2009 second quarter.  (Average dayrates for each
        classification of barge by quarter are available in the "Dayrates - GOM"
        schedule posted on Parker's website under "Investor Relations" at
        "Quarterly Support Materials".)
    --  Rental tool revenues slowed in all the established regions, partially
        offset by business from our new operation in Pennsylvania, serving the
        Marcellus shale play.  The greatest declines occurred in the regions
        serving primarily conventional oil or gas drilling operators while the
        downturn was less severe in the regions with major gas or oil shale
        plays, such as the Haynesville, Barnett, Fayetteville and Bakken shale
        areas.

    --  In Project Management and Engineering Services, rig-up and commissioning
        of the BP-owned Liberty rig in Alaska was underway following the rig's
        successful delivery to the satellite drilling island off the North Slope
        of Alaska.  In addition, we continued work on the FEED study for the
        Arkutun-Dagi platform's drilling package.

Capital expenditures for the three months ended Sept. 30, 2009 totaled $32.9 million, including $9.1 million for the construction of Parker's two newbuild arctic land rigs for Alaska, and $5.4 million for tubular goods and other rental equipment.

At the end of the period total debt was $425.7 million and the Company's total debt-to-capitalization ratio was 41.5 percent. Adjusted for the Company's cash and cash equivalents balance of $94.4 million, Parker's ratio of net-debt-to-net capitalization was 35.6 percent, compared to 31.6 percent at the end of 2008. The Company's $50 million term loan began to amortize on Sept. 30, 2009 at $3.0 million per quarter. The remaining components of the Company's debt do not mature until 2012 and 2013.

Conference Call

Parker Drilling has scheduled a conference call at 10:00 a.m. CST (11:00 a.m. EST) on Tuesday, November 3, 2009 to discuss 2009 third quarter results. Those interested in listening to the call by telephone may do so by dialing (480) 629-9722. Alternatively, the call can be accessed through the Investor Relations section of the Company's Web site at http://www.parkerdrilling.com. A replay of the call will be available by telephone from November 3 through November 11 by dialing (303) 590-3030 and using the access code 4171242#, and for 12 months on the Company's Web site.

This release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of the Securities Acts. All statements, other than statements of historical facts, that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future, including earnings per share guidance, the outlook for rig utilization and dayrates, general industry conditions including demand for drilling and customer spending and the factors affecting demand, competitive advantages including cost effective integrated solutions and technological innovation, future technological innovation, future operating results of the Company's rigs and rental tool operations, capital expenditures, expansion and growth opportunities, asset sales, successful negotiation and execution of contracts, strengthening of financial position, increase in market share and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this release are based on reasonable assumptions, actual results may differ materially from those expressed or implied in the forward-looking statements due to certain risk factors, including the ongoing credit crisis which has created volatility in oil and natural gas prices and could result in reduced demand for drilling services. For a detailed discussion of risk factors that could cause actual results to differ materially from the Company's expectations, please refer to the Company's reports filed with the SEC, and in particular, the report on Form 10-K for the year ended December 31, 2008. Each forward-looking statement speaks only as of the date of this release, and the Company undertakes no obligation to publicly update or revise any forward-looking statement.


                    PARKER DRILLING COMPANY AND SUBSIDIARIES
                      Consolidated Condensed Balance Sheets


                                         September 30, 2009  December 31, 2008
                                         ------------------  -----------------
                                              (Unaudited)
                  ASSETS                          (Dollars in Thousands)
    CURRENT ASSETS
        Cash and Cash Equivalents                $94,431           $172,298
        Accounts and Notes
         Receivable, Net                         196,039            186,164
        Rig Materials and Supplies                28,901             30,241
        Deferred Costs                             6,989              7,804
        Deferred Income Taxes                      9,735              9,735
        Other Current Assets                      76,669             67,049
                                                  ------             ------
            TOTAL CURRENT ASSETS                 412,764            473,291
                                                 -------            -------

    PROPERTY, PLANT AND
     EQUIPMENT, NET                              702,820            675,548

    OTHER ASSETS
        Deferred Income Taxes                     38,458             22,956
        Other Assets                              36,375             33,925
                                                  ------             ------
            TOTAL OTHER ASSETS                    74,833             56,881
                                                  ------             ------

    TOTAL ASSETS                              $1,190,417         $1,205,720
                                              ==========         ==========

             LIABILITIES AND STOCKHOLDERS' EQUITY
    CURRENT LIABILITIES
        Current  Portion of Long-Term
         Debt                                    $12,000             $6,000
        Accounts Payable and Accrued
         Liabilities                             137,483            152,528
                                                 -------            -------
            TOTAL CURRENT LIABILITIES            149,483            158,528
                                                 -------            -------

    LONG-TERM DEBT                               413,692            435,394

    LONG-TERM DEFERRED TAX
     LIABILITY                                     8,178              8,230

    OTHER LONG-TERM LIABILITIES                   19,719             21,396

    STOCKHOLDERS' EQUITY                         599,345            582,172

                                              ----------         ----------
    TOTAL LIABILITIES AND
     STOCKHOLDERS' EQUITY                     $1,190,417         $1,205,720
                                              ==========         ==========


    Current Ratio                                   2.76               2.99

    Total Debt as a  Percent of
     Capitalization                                   42%                43%

    Book Value Per Common Share                    $5.16              $5.13



                     PARKER DRILLING COMPANY AND SUBSIDIARIES
                  Consolidated Condensed Statements of Operations
                                    (Unaudited)


                              Three Months Ended         Nine Months Ended
                                 September 30,             September 30,
                              -------------------        -----------------
                                 2009         2008        2009         2008
                                 ----         ----        ----         ----
                            (Dollars in Thousands)    (Dollars in Thousands)
    REVENUES:
        International
         Drilling              $63,966      $92,226     $220,626     $238,885
        U.S. Drilling           12,350       44,743       35,095      139,999
        Project Management
         and Engineering
         Services               25,869       24,089       81,814       72,219
        Construction
         Contract               55,325       20,421      149,642       40,501
        Rental Tools            23,899       45,975       89,948      125,858
                                ------       ------       ------      -------
    TOTAL REVENUES             181,409      227,454      577,125      617,462
                               -------      -------      -------      -------

    OPERATING EXPENSES:
        International
         Drilling               41,964       63,682      140,628      172,915
        U.S. Drilling           10,057       21,850       34,821       65,502
        Project Management
         and Engineering
         Services               19,420       21,451       63,597       61,819
        Construction
         Contract               52,203       19,323      142,117       38,373
        Rental Tools            12,232       18,166       41,438       50,014
        Depreciation and
         Amortization           29,307       30,663       85,382       84,995
                                ------       ------       ------       ------
    TOTAL OPERATING
     EXPENSES                  165,183      175,135      507,983      473,618
                               -------      -------      -------      -------

    TOTAL OPERATING
     GROSS MARGIN               16,226       52,319       69,142      143,844
                                ------       ------       ------      -------

    General and
     Administrative
     Expense                    (9,812)      (9,271)     (33,998)     (24,420)
    Provision for
     Reduction in
     Carrying Value of
     Certain Assets             (2,757)           -       (2,757)           -
    Gain on Disposition
     of Assets, Net              1,225          799        2,007        2,014
                                 -----          ---        -----        -----

    TOTAL OPERATING
     INCOME                      4,882       43,847       34,394      121,438
                                 -----       ------       ------      -------

    OTHER INCOME AND
     (EXPENSE):
        Interest Expense        (7,093)      (7,026)     (22,663)     (20,908)
        Interest Income            435          383          895        1,121
        Equity in Loss of
         Unconsolidated
         Joint Venture
         and Related
         Charges, net of
         tax                         -            -            -       (1,105)
        Other Income
         (Expense)                (285)         299         (365)         503
                                  ----          ---         ----          ---
    TOTAL OTHER INCOME
     AND (EXPENSE)              (6,943)      (6,344)     (22,133)     (20,389)
                                ------       ------      -------      -------

    INCOME (LOSS)
     BEFORE INCOME
     TAXES                      (2,061)      37,503       12,261      101,049
                                ------       ------       ------      -------

    INCOME TAX EXPENSE
     (BENEFIT)
        Current                  1,325       14,179       14,224       13,024
        Deferred               (10,480)       5,494      (15,554)      25,096
                               -------        -----      -------       ------
    TOTAL INCOME TAX
     EXPENSE (BENEFIT)          (9,155)      19,673       (1,330)      38,120
                                ------       ------       ------       ------

    NET INCOME                  $7,094      $17,830      $13,591      $62,929
                                ======      =======      =======      =======


    EARNINGS PER SHARE
     - BASIC                     $0.06        $0.16        $0.12        $0.57
     - DILUTED                   $0.06        $0.16        $0.12        $0.56

    NUMBER OF COMMON
     SHARES USED IN
     COMPUTING EARNINGS
     PER SHARE
        Basic              113,263,123  111,756,322  112,905,172  111,243,745
        Diluted            115,237,348  112,647,450  114,604,108  112,324,566



                     PARKER DRILLING COMPANY AND SUBSIDIARIES
                             Selected Financial Data
                                   (Unaudited)

                                                   Three Months Ended
                                            --------------------------------
                                             September 30,          June 30,
                                            --------------          --------
                                             2009     2008            2009
                                             ----     ----            ----
                                                  (Dollars in Thousands)
    REVENUES:
      International Drilling               $63,966  $92,226          $79,279
      U.S. Drilling                         12,350   44,743           12,889
      Project Management and
       Engineering Services                 25,869   24,089           23,891
      Construction Contract                 55,325   20,421           77,572
      Rental Tools                          23,899   45,975           28,160
                                            ------   ------           ------
        Total Revenues                     181,409  227,454          221,791
                                           -------  -------          -------

    OPERATING EXPENSES:
      International Drilling                41,964   63,682           48,887
      U.S. Drilling                         10,057   21,850           11,628
      Project Management and
       Engineering Services                 19,420   21,451           18,283
      Construction Contract                 52,203   19,323           74,000
      Rental Tools                          12,232   18,166           12,752
                                            ------   ------           ------
        Total Operating Expenses           135,876  144,472          165,550
                                           -------  -------          -------

    OPERATING GROSS MARGIN:
      International Drilling                22,002   28,544           30,392
      U.S. Drilling                          2,293   22,893            1,261
      Project Management and
       Engineering Services                  6,449    2,638            5,608
      Construction Contract                  3,122    1,098            3,572
      Rental Tools                          11,667   27,809           15,408
      Depreciation and Amortization        (29,307) (30,663)         (28,951)
                                           -------  -------          -------
        Total Operating Gross Margin        16,226   52,319           27,290

      General and Administrative Expense    (9,812)  (9,271)         (11,126)
      Provision for Reduction in Carrying
       Value of Certain Assets              (2,757)       -                -
      Gain on Disposition of Assets, Net     1,225      799              704

                                            ------  -------          -------
    TOTAL OPERATING INCOME                  $4,882  $43,847          $16,868
                                            ======  =======          =======



                  Marketable Rig Count Summary
                    As of September 30, 2009

                                                        Total
                                                        -----

      U.S. Gulf of Mexico Barge Rigs
          Workover                                         2
          Intermediate                                     3
          Deep                                            10
                                                         ---
      Total U.S. Gulf of Mexico Barge Rigs                15

      International Land and Barge Rigs
          Asia Pacific                                     8
          Americas                                        10
          CIS/AME                                         12
          Other                                            1
                                                         ---
              Total International Land and Barge Rigs     31


                                                         ---
              Total Marketable Rigs                       46
                                                         ===



                                  Adjusted EBITDA
                                     (Unaudited)
                               (Dollars in Thousands)

                                     Three Months Ended
                 -------------------------------------------------------------
                 September 30,  June 30,  March 31, December 31, September 30,
                     2009        2009        2009      2008          2008
                 ------------  ---------- --------- ------------ -------------

     Previously
      Reported
      Net Income
      (Loss)            $7,094      $4,391     $2,106  $(39,477)    $18,551
     Restated
      Interest
      Expense,
      Net of Tax
      - Per APB
      14-1                   -           -          -      (724)       (721)
                           ---         ---        ---      ----        ----
     Restated Net
      Income
      (Loss)             7,094       4,391      2,106   (40,201)     17,830
      Adjustments:
        Income Tax
         (Benefit)
         Expense        (9,155)      5,079      2,746   (31,178)     19,673
        Total Other
         Income and
         Expense         6,943       7,398      7,792     9,121       6,344
        Loss/(Gain)
         on
         Disposition
         of Assets,
         Net            (1,225)       (704)       (78)     (683)       (799)
        Impairment
         of Goodwill         -           -          -   100,315
        Depreciation
         and
         Amortization   29,307      28,951     27,124    31,961      30,663
        Provision for
         Reduction in
         Carrying
         Value of
         Certain
         Assets          2,757           -          -         -           -
                         -----         ---        ---       ---         ---

    Adjusted
     EBITDA            $35,721     $45,115    $39,690   $69,335     $73,711
                       =======     =======    =======   =======     =======

    Adjustments:
      Non-routine Items  2,402       4,048      5,308     6,279       2,264
                         -----       -----      -----     -----       -----

    Adjusted
     EBITDA
     after Net
     Non-routine
     Items             $38,123     $49,163    $44,998   $75,614     $75,975
                       =======     =======    =======   =======     =======


                                         Three Months Ended
                        -----------------------------------------------------
                        June 30,   March 31,    December 31,   September 30,
                          2008       2008           2007           2007
                        ---------  ----------   -------------  --------------

     Previously
      Reported Net
      Income (Loss)      $22,596     $23,888        $34,571         $22,653
     Restated
      Interest
      Expense,
      Net of
      Tax - Per
      APB 14-1              (699)       (686)          (670)           (562)
                            ----        ----           ----            ----
     Restated
      Net Income
      (Loss)              21,897      23,202         33,901          22,091
      Adjustments:
        Income Tax
         (Benefit)
         Expense          13,762       4,685        (21,830)         18,803
        Total Other
         Income and
         Expense           6,531       7,514         31,385           9,706
        Loss/(Gain)
         on
         Disposition
         of Assets,
         Net                (636)       (579)           784            (543)
        Impairment
         of Goodwill
        Depreciation
         and
         Amortization     28,166      26,166         25,059          23,043
        Provision
         for
         Reduction
         in Carrying
         Value of
         Certain
         Assets                -           -            371           1,091
                             ---         ---            ---           -----

    Adjusted
     EBITDA              $69,720     $60,988        $69,670         $74,191
                         =======     =======        =======         =======

    Adjustments:
         Non-
          routine
          Items            2,885         441              -               -
                           -----         ---            ---             ---

    Adjusted
     EBITDA
     after Net
     Non-routine
     Items               $72,605     $61,429        $69,670         $74,191
                         =======     =======        =======         =======




                    PARKER DRILLING COMPANY AND SUBSIDIARIES
                      Reconciliation of Non-Routine Items *
                                   (Unaudited)
                    (Dollars in Thousands, except Per Share)


                                     Three Months Ending  Nine Months Ending
                                        September 30,       September 30,
                                             2009                2009
                                     -------------------  ------------------

     Net income                             $7,094             $13,591
     Earnings per diluted share              $0.06               $0.12

     Adjustments:
       Provision for reduction in
        carrying value                      $2,757              $2,757
       DOJ investigation                     2,402              11,758
                                             -----              ------
                 Total adjustments          $5,159             $14,515
       Tax effect of pre-tax non-
        routine adjustments                 (1,806)             (5,080)
       Income tax provision
        adjustment                          (6,053)             (6,053)
                                            ------              ------
                 Net non-routine
                  adjustments              $(2,700)             $3,382
                                           -------              ------

     Adjusted net income                    $4,394             $16,973
                                            ======             =======
     Adjusted earnings per diluted
      share                                  $0.04               $0.15
                                             =====               =====



                                     Three Months Ending  Nine Months Ending
                                         September 30,       September 30,
                                             2008                2008
                                     -------------------  ------------------
     Previously reported net
      income                               $18,551             $65,035
     Previously reported earnings
      per diluted share                      $0.16               $0.58

     Restated interest expense, net
      of tax - per APB 14-1                  $(721)            $(2,106)

     Restated net income                   $17,830             $62,929
     Restated earnings per share             $0.16               $0.56

     Adjustments:
       Saudi Arabia                             $-              $1,105
       FIN 48 tax benefit -
        Kazakhstan                               -             (10,560)
       PNG tax                                   -               4,127
       Other FIN 48 adjustments              2,407               2,407
       DOJ investigation                     2,264               5,590
                                             -----               -----
                 Total adjustments          $4,671              $2,669
       Tax effect of non-routine
        adjustments                           (899)             (2,219)
                                              ----              ------
                 Net non-routine
                  adjustments               $3,772                $450
                                            ------                ----

     Adjusted net income                   $21,602             $63,379
                                           =======             =======
     Adjusted earnings per diluted
      share                                  $0.19               $0.56
                                             =====               =====

    * Adjusted net income, a non-GAAP financial measure, excludes items that
      management believes are of a non-routine nature and which detract from
      an understanding of normal operating performance and comparisons with
      other periods. Management also believes that results excluding these
      items are more comparable to estimates provided by securities analysts
      and used by them in evaluating the Company's performance.

SOURCE Parker Drilling Company