Parker Drilling Third Quarter 2007 EBITDA Increases 39 Percent to $74 Million

HOUSTON, Nov. 7 /PRNewswire-FirstCall/ -- Parker Drilling Company (NYSE: PKD), a global drilling contractor and service provider, today reported strong financial and operating results for the third quarter 2007. Highlights include:

     *  Earnings before interest, taxes, depreciation and amortization
        (EBITDA) increased 39 percent over the third quarter 2006;

     *  Net income increased 22 percent over the third quarter 2006;

     *  EBITDA generated by Parker's international land drilling segment
        nearly tripled in comparison to the third quarter of 2006;

     *  Both U.S. barge rig operations and Quail Tools generated record
        EBITDA;

     *  International land rig utilization increased to 75 percent, up from
        55 percent in the third quarter last year;

     *  Remaining Floating Rate Notes of $100 million were redeemed;

     *  An Amended and Restated Credit Agreement was finalized, increasing
        available credit from $40 million to $60 million and extending the
        facility for five years.

Robert L. Parker Jr., chairman and chief executive officer of Parker Drilling, said: "All three of our operating segments turned in excellent performances during the third quarter. As forecast, these results were driven by dramatically increased contributions from our international operations and a record quarter for both Quail Tools and our U.S. barge rig operations."

Third Quarter Earnings and Financial Highlights

For the three months ended September 30, 2007, Parker reported earnings of $22.7 million, or $0.20 per diluted share, on revenues of $172.2 million for the third quarter ended September 30, 2007, compared to revenues of $146.8 million and net income of $18.6 million or $0.17 per diluted share for the third quarter of 2006. Net income in the third quarter of 2007 included net expense of $1.6 million or $0.02 per diluted share, which was the result of $2.4 million of debt extinguishment cost, $1.1 million provision for carrying value and a non-cash credit to tax expense of $0.5 million for potential interest and exchange rate fluctuations relating to a tax liability recorded on January 1, 2007, associated with the adoption of the Financial Accounting Standards Board (FASB) Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" ("FIN 48").

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $74.2 million for the third quarter of 2007, 39 percent higher than the $53.2 million reported in the third quarter of 2006. Higher dayrates and utilization resulted in a seven percent EBITDA improvement for Parker's U.S. Gulf of Mexico barge rigs over the prior year's quarter. Quail Tools, Parker's drilling and production rental tools subsidiary, also achieved record EBITDA of $20.9 million, which topped the record set in the third quarter of 2006. For the first nine months of 2007, total EBITDA was $192.1 million, a 25 percent increase over the $153.3 million for 2006. (The details of the EBITDA calculation, a non-GAAP financial measure, for the current and prior eight quarters are defined and reconciled later in this press release to their most directly comparable GAAP financial measure.)

For the first nine months of 2007, Parker reported revenues of $473.7 million and net income of $69.5 million or $0.63 per diluted share compared to revenues of $440.1 million and net income of $43.9 million or $0.41 per diluted share for the first nine months of 2006. Included in 2007 results is an after-tax gain of $0.07 per diluted share from the sale of two workover barge rigs in January, non-cash FIN 48 charges of $0.05 per diluted share and after-tax charges of $0.02 per diluted share for debt extinguishment and provision for carrying value. Included in 2006 results was net income of $0.02 per diluted share for gains recorded on the disposition of two Nigerian barges and US barge rig 57, offset by debt extinguishment costs.

Capital expenditures for the nine months ended September 30, 2007 totaled $191.4 million. Total debt increased to $354 million due to the issuance of $125 million of Convertible Notes and subsequent redemption of $100 million of our Floating Rate notes. The Company's cash, cash equivalents and marketable securities totaled $67.0 million at September 30, 2007.

Average utilization for barge rigs drilling in the Gulf of Mexico transition zone for the third quarter 2007 was 83 percent, up from the 72 percent reported for the third quarter 2006 and the 74 percent reported for the second quarter 2007. Current barge rig utilization is 81 percent. The Company's deep drilling barge dayrates in the Gulf of Mexico were up approximately $2,100 per day from the third quarter 2006, but decreased to $47,900 from the record level of $51,600 per day posted during the second quarter 2007. (Average dayrates for each classification of barge by quarter are available on Parker's website and can be viewed or downloaded by going to "Investor Relations" and then to "Dayrates - GOM.")

The average utilization of international land rigs for the third quarter 2007 increased to 75 percent, up from the 71 percent reported for the second quarter 2007 and 55 percent in the third quarter 2006. Current international utilization is 82 percent and is expected to further increase during 2007 as rigs continue to reposition to new contracts.

Summary

Parker continued, "Internationally, we began to realize the substantial benefits of repositioning our international fleet to long-term contracts with strong margins, and we anticipate this performance to continue, as demonstrated in today's announcement of new contracts in Mexico and Kazakhstan.

"North Africa/Middle East is a strategic, long-term growth market for us and the scope of our Saudi Arabian joint venture is significant. By early next year, we expect to have six rigs working under three-year initial commitments for drilling with the option to extend to a fourth year. The joint venture, however, has experienced delays and cost overruns during the construction and commissioning phase of the project and as a result, we recognized a $1.1 million non-cash charge. We also plan to invest an additional $20 to $25 million to finish construction and commissioning of the rigs and expect to have all six rigs operational by the second quarter of 2008, solidifying our initial presence in this strategic market.

"Quail Tools quickly rebounded from a flat second quarter with record- breaking third quarter results. The $50 million expansion of Quail was completed during the third quarter, and results reflect added rental tools and the impact of Quail's new facility in Texarkana, Texas. We continue to remain confident in the growth of this segment.

"We expect that fourth quarter and early 2008 contributions from our U.S. segment will remain substantial but slightly lower than previous quarters due to a moderate decline in dayrates and utilization, as one of our deep barge rigs was down in October and some intermediate barge rigs may experience gaps

between contracts in the fourth quarter. However, all of our deep barge rigs are now committed through the remainder of 2007.

"Demand is strong for our brand of high-performance drilling solutions that reduce the total cost of drilling and enable our customers to explore and develop oil and gas reserves in frontier environments. Looking ahead to the remainder of this year and into 2008, I am confident we will continue to deliver strong returns across our operating segments and execute our strategic growth plan."

Parker Drilling has scheduled a conference call at 10 a.m. CST (11 a.m. EST) November 7, 2007 to discuss third quarter 2007 results. Those interested in participating in the call may dial in at 303-262-2137. The conference call replay can be accessed from November 7 through November 14 by dialing (800) 405-2236 and using the access code 11099460#. Alternatively, the call can be accessed live through the Company's website at http://www.parkerdrilling.com and will be archived on the site for 12 months.

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, competitive advantages including cost effective integrated solutions, 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 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. 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, 2006. 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 Statements of Operations
                                   (Unaudited)

                                Three Months Ended        Nine Months Ended
                                  September 30,             September 30,
                                2007         2006         2007         2006
                              (Dollars in Thousands)    (Dollars in Thousands)
    DRILLING AND RENTAL
     REVENUES
    U.S. Drilling              $59,700      $52,347     $178,975     $135,297
    International Drilling      76,997       61,605      197,867      214,407
    Rental Tools                35,500       32,831       96,905       90,401
    TOTAL DRILLING AND
     RENTAL REVENUES           172,197      146,783      473,747      440,105

    DRILLING AND RENTAL
     OPERATING EXPENSES
    U.S. Drilling               25,563       20,944       76,940       58,228
    International Drilling      51,618       52,280      148,018      171,506
    Rental Tools                14,579       12,349       38,263       33,788
    Depreciation and
     Amortization               23,043       16,993       60,744       51,665
    TOTAL DRILLING AND
     RENTAL OPERATING
     EXPENSES                  114,803      102,566      323,965      315,187

    DRILLING AND RENTAL
     OPERATING INCOME           57,394       44,217      149,782      124,918

    General and Administrative
     Expense                    (6,246)      (7,992)     (18,380)     (23,261)
    Provision for Reduction
     in Carrying Value of
     Certain Assets             (1,091)         -         (1,091)         -
    Gain on Disposition of
     Assets, Net                   543        4,328       17,216        6,901

    TOTAL OPERATING INCOME      50,600       40,553      147,527      108,558

    OTHER INCOME AND (EXPENSE)
    Interest Expense            (7,576)      (7,923)     (19,891)     (25,223)
    Change in Fair Value
     of Derivative Position       (262)      (1,029)        (671)         166
    Interest Income              2,080        2,521        5,576        5,966
    Loss on Extinguishment
     of Debt                    (2,396)      (1,910)      (2,396)      (1,912)
    Equity in Loss of
     Unconsolidated Joint
     Venture, Net of Taxes      (1,123)         -         (1,123)         -
    Other Income (Expense)
     - Net                         510         (400)        (413)      (1,334)
    TOTAL OTHER INCOME AND
     (EXPENSE)                  (8,767)      (8,741)     (18,918)     (22,337)

    INCOME BEFORE INCOME TAXES  41,833       31,812      128,609       86,221

    INCOME TAX EXPENSE
    Current Tax Expense         14,598        1,166       43,223       10,692
    Deferred Tax Expense         4,582       12,007       15,879       31,671
    TOTAL INCOME TAX EXPENSE    19,180       13,173       59,102       42,363

    NET INCOME                 $22,653      $18,639      $69,507      $43,858


    EARNINGS PER SHARE - BASIC
    Net Income                   $0.21        $0.17        $0.64        $0.41

    EARNINGS PER SHARE - DILUTED
    Net Income                   $0.20        $0.17        $0.63        $0.41

    AVERAGE COMMON SHARES
     OUTSTANDING
    Basic                  110,270,207  107,233,881  109,269,867  106,272,123
    Diluted                111,278,430  108,211,580  110,522,914  107,766,841



                    PARKER DRILLING COMPANY AND SUBSIDIARIES
                      Consolidated Condensed Balance Sheets
                                   (Unaudited)

                                         September 30, 2007  December 31, 2006
                   ASSETS                       (Dollars in Thousands)
    CURRENT ASSETS
    Cash and Cash Equivalents                    $66,954          $92,203
    Marketable Securities                              -           62,920
    Accounts and Notes Receivable, Net           161,500          112,359
    Rig Materials and Supplies                    21,509           15,000
    Deferred Costs                                 9,872            6,662
    Deferred Income Taxes                         17,307           17,307
    Other Current Assets                          44,663           11,123
    TOTAL CURRENT ASSETS                         321,805          317,574

    PROPERTY, PLANT AND EQUIPMENT, NET           562,952          435,473

    OTHER ASSETS
    Goodwill                                     100,315          100,315
    Deferred Taxes                                21,179           13,405
    Other Assets                                  74,689           34,534
    TOTAL OTHER ASSETS                           196,183          148,254

    TOTAL ASSETS                              $1,080,940         $901,301

    LIABILITIES AND STOCKHOLDERS' EQUITY
    CURRENT LIABILITIES
    Current Portion of Long-Term Debt                 $-                $-
    Accounts Payable and Accrued
     Liabilities                                 104,282          101,903
    TOTAL CURRENT LIABILITIES                    104,282          101,903

    LONG-TERM DEBT                               353,882          329,368

    LONG-TERM DEFERRED TAXES                      15,181                 -

    OTHER LIABILITIES                            110,009           10,931

    STOCKHOLDERS' EQUITY                         497,586          459,099

    TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                   $1,080,940         $901,301

    Current Ratio                                   3.09             3.12

    Total Long-Term Debt as a Percent of
     Capitalization                                  42%              42%

    Book Value Per Common Share                    $4.45            $4.21



                    PARKER DRILLING COMPANY AND SUBSIDIARIES
                             Selected Financial Data
                                   (Unaudited)

                                                    Three Months Ended
                                                 September 30,       June 30,
                                               2007        2006       2007
    DRILLING AND RENTAL REVENUES                   (Dollars in Thousands)
      U.S. Offshore Drilling                 $58,197     $52,347     $54,316
      U.S. Land Drilling                       1,503         -         3,335
      International Land Drilling             66,976      48,146      52,268
      International Offshore Drilling         10,021      13,459       8,928
      Rental Tools                            35,500      32,831      31,430
        Total Drilling and Rental
         Revenues                            172,197     146,783     150,277

    DRILLING AND RENTAL OPERATING
     EXPENSES
      U.S. Offshore Drilling                  24,457      20,944      21,551
      U.S. Land Drilling                       1,106         -         3,065
      International Land Drilling             44,966      40,491      45,019
      International Offshore Drilling          6,652      11,789       5,598
      Rental Tools                            14,579      12,349      12,521
        Total Drilling and Rental
         Operating Expenses                   91,760      85,573      87,754

    DRILLING AND RENTAL OPERATING INCOME
      U.S. Offshore Drilling                  33,740      31,403      32,765
      U.S. Land Drilling                         397         -           270
      International Land Drilling             22,010       7,655       7,249
      International Offshore Drilling          3,369       1,670       3,330
      Rental Tools                            20,921      20,482      18,909
      Depreciation and Amortization          (23,043)    (16,993)    (19,642)
        Total Drilling and Rental
         Operating Income                     57,394      44,217      42,881

      General and Administrative Expense      (6,246)     (7,992)     (6,246)
      Provision for Reduction in Carrying
       Value of Certain Assets                (1,091)        -           -
      Gain on Disposition of Assets, Net         543       4,328         269

    TOTAL OPERATING INCOME                   $50,600     $40,553     $36,904



                           Marketable Rig Count Summary
                             As of September 30, 2007
                                                                         Total
      U.S. Land Rigs                                                        1

      U.S. Gulf of Mexico Barge Rigs
       Workover                                                             3
       Intermediate                                                         3
       Deep                                                                10
      Total U.S. Gulf of Mexico Barge Rigs                                 16

      International Land Rigs
       Asia Pacific                                                         9
       Africa - Middle East                                                 3
       Latin America                                                        7
       CIS                                                                  8
        Total International Land Rigs                                      27

      International Barge Rigs
       Mexico                                                               1
       Caspian Sea                                                          1
        Total International Barge Rigs                                      2

        Total Marketable Rigs                                              46



                              Adjusted EBITDA
                                (Unaudited)

                                                  Three Months Ending
                                          September 30,  June 30,   March 31,
                                               2007        2007        2007
    Income (Loss) from Continuing
     Operations                              $22,653     $18,103     $29,994
      Adjustments:
    Income Tax Expense                        19,179      14,570      24,109
    Total Other Income and Expense             8,768       4,231       5,920
    Loss/(Gain) on Disposition of Assets,
     Net                                        (543)       (269)    (16,404)
    Depreciation and Amortization             23,043      19,642      18,059
    Provision for Reduction in Carrying
     Value                                     1,091         -           -

    Adjusted EBITDA                          $74,191     $56,277     $61,678


                                                  Three Months Ending
                                          December 31,  September 30, June 30,
                                              2006          2006        2006
    Income (Loss) from Continuing
     Operations                              $37,168     $18,639     $13,761
      Adjustments:
    Income Tax Expense                        (5,954)     13,173      14,694
    Total Other Income and Expense             3,554       8,741       5,731
    Loss/(Gain) on Disposition of Assets,
     Net                                        (672)     (4,328)     (2,125)
    Depreciation and Amortization             17,605      16,993      17,715
    Provision for Reduction in Carrying
     Value                                       -           -           -

    Adjusted EBITDA                          $51,701     $53,218     $49,776


                                                 Three Months Ending
                                        March 31,  December 31,  September 30,
                                          2006        2005           2005
    Income (Loss) from Continuing
     Operations                           $11,458     $56,707      $18,073
      Adjustments:
    Income Tax Expense                     14,496     (39,087)       2,165
    Total Other Income and Expense          7,865      10,251        9,627
    Loss/(Gain) on Disposition of Assets,
     Net                                     (448)     (3,185)      (5,943)
    Depreciation and Amortization          16,957      16,619       16,563
    Provision for Reduction in Carrying
     Value                                      -       2,584        2,300

    Adjusted EBITDA                       $50,328     $43,889      $42,785


SOURCE Parker Drilling Company