Parker Drilling Company provides contract drilling and drilling-related services, as well as rental tools and services. The company has operations in 19 countries.
The company’s business includes two business lines, Rental Tools Services and Drilling Services.
Rental Tools Services
In this business, the company provides premium rental equipment and services to exploration and production companies, drilling contractors, and service companies on land and offshore in the U.S. and select internat...
Parker Drilling Company provides contract drilling and drilling-related services, as well as rental tools and services. The company has operations in 19 countries.
The company’s business includes two business lines, Rental Tools Services and Drilling Services.
Rental Tools Services
In this business, the company provides premium rental equipment and services to exploration and production companies, drilling contractors, and service companies on land and offshore in the U.S. and select international markets. Tools the company provides include standard and heavy-weight drill pipe, all of which are available with standard or high-torque connections, tubing, drill collars, pressure control equipment, including blowout preventers, and others. The company also provides well construction services, which include tubular running services and downhole tool rentals, well intervention services, which include whipstocks, fishing, and related services, as well as inspection and machine shop support. Rental tools are used during drilling and/or workover programs and are requested by the customer as needed, requiring it to keep an inventory of rental tools in stock. Rental tools are rented on a daily or monthly basis.
Segments
In this business, the company operates through two segments, U.S. Rental Tools and International Rental Tools.
U.S. Rental Tools
This segment maintains an inventory of rental tools for deepwater drilling, completion, workover, and production applications at facilities in Louisiana, Texas, Wyoming, North Dakota, and West Virginia. It also provides well construction and well intervention services. The company’s major single market for rental tools is U.S. land drilling, a cyclical market driven primarily by oil and natural gas prices and its customers’ access to project financing. A portion of its U.S. rental tools business supplies tubular goods and other equipment to offshore Gulf of Mexico (GOM) customers.
International Rental Tools
This segment maintains an inventory of rental tools and provides well construction, well intervention, and surface and tubular services to the company’s customers in the Middle East, Latin America, Europe, and Asia-Pacific regions.
Drilling Services
In this business, the company drills oil, natural gas, and geothermal wells for customers worldwide. The company provides this service with both company-owned rigs and customer-owned rigs. The company refers to the provision of drilling services with customer-owned rigs as its operations and management (O&M) service in which its customers own their drilling rigs, but choose the company to operate and manage the rigs for them. In addition, it provides project-related services, such as engineering, procurement, project management, commissioning of customer-owned drilling rig projects, operations execution, and quality and safety management.
Segments
In this business, the company operates through two segments, U.S. (lower 48) Drilling and International & Alaska Drilling.
U.S. (lower 48) Drilling
This segment provides drilling services with its GOM barge drilling rig fleet and markets its U.S. (lower 48) based O&M services. The company also provides O&M services for a customer-owned rig offshore California. Its GOM barge rigs drill for oil and natural gas in shallow waters in and along the inland waterways and coasts of Louisiana, Alabama, and Texas. The majority of these wells are drilled in shallow water depths ranging from 6 to 12 feet. The company’s rigs are suitable for various drilling programs, from inland coastal waters requiring shallow draft barges, to open water drilling in both state and federal waters. Contract terms consist of well-to-well or multi-well programs, commonly ranging from 20 to 180 days.
International & Alaska Drilling
This segment provides drilling services, using both company-owned rigs and O&M contracts, and project-related services. The drilling markets in which this segment operates have the following characteristics, such as customers are major, independent, or national oil and natural gas companies or integrated service providers; drilling programs in remote locations with little infrastructure, requiring an inventory of spare parts and other ancillary equipment and self-supported service capabilities; complex wells and/or harsh environments (such as high pressures, deep depths, hazardous or geologically challenging conditions and sensitive environments) requiring specialized equipment and considerable experience to drill; and O&M contracts that cover periods of one year or more.
The company has rigs under contract in Alaska, Kazakhstan, the Kurdistan region of Iraq, Guatemala, Mexico, and on Sakhalin Island, Russia. In addition, it has O&M and ongoing project-related services for customer-owned rigs in Alaska, Kuwait, Canada, Indonesia, and on Sakhalin Island, Russia.
Strategy
The company intends to compete in select energy services businesses that benefit its customers’ exploration, appraisal, and development programs, and in which operational execution is the key measure of success. The key elements of the company's strategy include consistently deliver innovative, reliable, and efficient results that help its customers reduce their operational risks and manage their operating costs; and over the longer-term, investing to improve and grow its existing business lines and to expand the scope of products and services it offers, both organically and through acquisitions.
Customers and Scope of Operations
The company’s customer base consists of major, independent, national oil and natural gas exploration and production companies, and other oil field service providers. In 2019, the company’s major customer, Exxon Neftegas Limited, accounted for approximately 29.3 percent of its total consolidated revenues for the nine months ended December 31, 2019.
Seasonality
The company’s rigs in the inland waters of the GOM are subject to severe weather during certain periods of the year, particularly during hurricane season from June through November.
Environmental Considerations
The company’s operations are also governed by laws and regulations related to workplace safety and worker health, primarily the Occupational Safety and Health Act and regulations promulgated thereunder.
History
Parker Drilling Company was founded in 1934. The company was incorporated in the state of Oklahoma in 1954.
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