OKLAHOMA CITY--(BUSINESS WIRE)--Nov. 6, 2009-- Bronco Drilling Company, Inc., (Nasdaq/GS:BRNC), announced today financial and operational results for the three months and nine months ended September 30, 2009.

Consolidated Results

Revenues for the third quarter of 2009 were $16.2 million compared to revenue of $27.5 million for the previous quarter and $73.0 million for the third quarter of 2008. Net loss for the third quarter of 2009 was $42.7 million compared to a net loss of $7.2 million for the previous quarter and a net loss of $0.9 million for the third quarter of 2008. The Company’s fully diluted earnings per share for the quarter ended September 30, 2009, were a loss of $1.60 based on 26.7 million shares.

Third quarter results include several non-recurring items. The company wrote down its investment in Challenger Limited by $21.2 million. The company recognized a loss of $24.0 million in conjunction with the company’s sale of a 60% ownership interest in Bronco Drilling MX, S. de R.L. de C.V. (“Bronco MX”) in the joint venture transaction with Carso Infraestructura y Constuccion, S.A.B. de C.V. The company also recognized expense of $1.3 million related to the drilling rigs contributed to Bronco MX in the joint venture transaction. The retirement of the company’s previous credit facility resulted in a loss on early debt extinguishment of $2.9 million. The new credit facility with Banco Inbursa, S.A. and the joint venture transaction, which were both entered into during the quarter, resulted in certain advisory fees of $1.0 million. Additionally, the company recorded a loss of $1.6 million related to the change in fair value of the warrants issued in conjunction with the new credit facility. Excluding all non-recurring items and the loss on the warrants would result in a fully diluted loss per share for the quarter of $0.37.

Land Drilling

Average marketed land rigs for the third quarter of 2009 were 45 compared to 45 for the previous quarter and 42 for the third quarter of 2008. Revenue days for the quarter decreased to 980 from 1,311 for the previous quarter and from 3,208 for the third quarter of 2008. Utilization for the third quarter of 2009 was 23% compared to 32% for the previous quarter and 84% for the third quarter of 2008. Excluding non-recurring items, average daily cash margins for our land drilling fleet for the quarter ended September 30, 2009, were $3,576 compared to $6,304 for the previous quarter and $7,582 for the third quarter of 2008.

About Bronco Drilling

Bronco Drilling Company, Inc., a publicly held company headquartered in Edmond, Oklahoma, is a provider of contract land drilling services and workover services to oil and natural gas exploration and production companies. Bronco’s common stock is quoted on The Nasdaq Global Select Market under the symbol “BRNC.” For more information about Bronco Drilling Company, Inc., visit http://www.broncodrill.com.

Non-GAAP Financial Measures

This press release includes a presentation of average daily cash margin for our land drilling fleet which is not a financial measure recognized under generally accepted accounting principles, or GAAP. Average daily cash margin is a non-GAAP financial measure equal to net income, the most directly comparable GAAP financial measure, minus well service revenue, plus well service expense, income tax expense, other non-recurring expense, general and administrative expense, depreciation and amortization and impairments divided by revenue days for the period. We have presented average daily cash margin because we use this metric as an integral part of our internal reporting to measure our performance and to evaluate the performance of our senior management. We consider this metric to be an important indicator of the operational strength of our business. A limitation of this metric, however, is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our business. Management evaluates the costs of such tangible and intangible assets through other financial measures, such as capital expenditures, investment spending and return on capital. Therefore, we believe that average daily cash margin provides useful information to our investors regarding our performance and overall results of operations. Average daily cash margin is not intended to be a performance measure that should be regarded as an alternative to, or more meaningful than, either net income as an indicator of operating performance or to cash flows from operating activities as a measure of liquidity. In addition, this metric not is intended to represent funds available for dividends, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. This non-GAAP financial measure may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in our various agreements.

The following presents a reconciliation of average daily cash margin to net income, the most directly comparable GAAP financial measure (in thousands, except revenue days and average daily cash margin):

Source: Bronco Drilling Company, Inc.

Bob Jarvis
Investor Relations
Bronco Drilling Company
(405) 242-4444 EXT: 102
bjarvis@broncodrill.com