8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

     Date of report (Date of earliest event reported) February 15, 2006

PARKER DRILLING COMPANY

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

1-7573	73-0618660
(Commission File Number)	(IRS Employer Identification No.)
1401 Enclave Parkway, Suite 600, Houston, Texas	77077
(Address of Principal Executive Offices)	(Zip Code)

(281) 406-2000

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02 Results of Operations and Financial Condition.
	Item 7.01 Regulation FD Disclosure.
	Item 9.01. Financial Statements and Exhibits.
SIGNATURES
Index to Exhibits
Fourth Quarter Earnings Press Release
Saudi Arabia Joint Venture Press Release

Item 2.02      Results of Operations and Financial Condition.

     On February 15, 2006, Parker Drilling Company (the “Registrant”) issued a press release announcing results of operations for the fourth quarter of 2005.

     A copy of this press release is attached as Exhibit 99.1 to this Report on Form 8-K. This information is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01      Regulation FD Disclosure.

     On February 15, 2006, the Registrant issued a press release announcing the formation of a joint venture in Saudi Arabia, the award of four drilling contracts to be performed by the joint venture company and the construction of four rigs to be utilized in performing the drilling contracts.

     A copy of this press release is attached as Exhibit 99.2 to this Report on Form 8-K. This information is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01      Financial Statements and Exhibits.

     (d) Exhibits.

     The following exhibits are furnished herewith:

99.1	Fourth Quarter Earnings press release dated February 15, 2006, issued by the Registrant.
99.2	Saudi Arabia Joint Venture press release dated February 15, 2006, issued by the Registrant.

2

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Parker Drilling Company
Date: February 15, 2006	By:	/s/ W. Kirk Brassfield
		W. Kirk Brassfield
		Senior Vice President and Chief Financial Officer

3

Index to Exhibits

99.1	Fourth Quarter Earnings press release dated February 15, 2006, issued by the Registrant.
99.2	Saudi Arabia Joint Venture press release dated February 15, 2006, issued by the Registrant.

4

EX-99.1

Exhibit 99.1

Investor Contact:	David Tucker
	281-406-2370
Media Contact:	Marianne Gooch
	281-406-2212

Parker Drilling Announces 41% Increase in Annual Revenues
* Eliminates Valuation Allowance

Houston, Feb. 15, 2006 — Parker Drilling Company (NYSE: PKD) today reported 2005 fourth quarter revenues of $149.6 million and net income of $56.7 million or $0.58 per diluted share, compared to 2004 fourth quarter revenues of $109.8 million and a net loss of $5.3 million or $0.06 per share. Net income for the fourth quarter of 2005 includes $44.6 million or $0.45 per diluted share from non-routine items, $44.9 million of which is a non-cash deferred tax benefit, related primarily to the elimination of the valuation allowance. (See detail below).

     For the year 2005, Parker Drilling reported revenues of $531.7 million and net income of $98.9 million, or $1.01 per diluted share. These revenues reflect a 41% increase while net income increased $146.0 million over 2004. For the year 2004, Parker Drilling reported revenues of $376.5 million and a net loss of $47.1 million, or $0.50 per share. Net income for 2005 includes non-routine items of $0.56 per diluted share. The details of the non-routine items for the year and the quarter are available on Parker’s website and can be viewed or downloaded by going to “Investor Relations” and then to “Reconciliation of Non-GAAP Measures.”

     “We experienced one of our best years ever in 2005. Our operations not only contributed strong financial results, but also a record year for safety. We exceeded our debt reduction goal during the fourth quarter and with proceeds from our recent equity offering, we have taken steps to continue growing the company in 2006,” said Robert L. Parker Jr., president and chief executive officer.

     The average utilization of international land rigs for the fourth quarter of 2005 was 84 percent, significantly higher than the 65 percent reported for the fourth quarter of 2004. Current utilization is 83 percent for international land rigs. Average utilization for the Gulf of Mexico barge rigs for the fourth quarter of 2005 was 73 percent, compared to 79 percent reported for the fourth quarter of 2004. Current utilization is 74 percent for Gulf of Mexico barge rigs. Our deep drilling barge dayrates in the Gulf of Mexico averaged

approximately $11,600 per day higher in the fourth quarter of 2005 when compared to the fourth quarter of 2004.

     Capital expenditures for the year 2005 totaled $69.5 million. Total debt was $380.0 million at December 31, 2005, a reduction of $101.0 million from the previous year. The Company’s cash, cash equivalents and marketable securities totaled $78.2 million at year end compared to $44.3 million at year end 2004.

     The Company is positioned to show improved results from operations for 2006 and expects net income to range from $0.30 to $0.40 per diluted share. This range includes an estimated deferred tax expense of approximately $0.25 per diluted share.

Elimination of Valuation Allowance

     The 2005 results reflect a non-cash benefit from the elimination of the valuation allowance related to net operating loss carryforwards and other deferred tax assets in the United States. The valuation allowance was originally recorded in accordance with Generally Accepted Accounting Principles (GAAP) as an offset to the Company’s deferred tax assets, which consisted primarily of net operating loss carryforwards. GAAP required the Company to recognize a valuation allowance unless it was “more likely than not” that the Company could realize the benefit of the net operating loss carryforwards and deferred tax assets in future periods. Because the expected earnings performance should enable the Company to benefit from the net operating loss carryforwards, the valuation allowance is no longer required. In 2006 the Company will begin to report deferred income tax expense. While this will reduce reportable net income, the Company will receive the benefit from not having to pay any significant U.S. cash taxes until the net operating loss has been fully utilized.

     Parker has scheduled a conference call at 9 a.m. CST (10 a.m. EST) Feb. 15, 2006 to discuss fourth quarter 2005 results. Those interested in participating in the call may dial in at (303) 205-0066. The conference call replay can be accessed from Feb. 15 through Feb. 22 by dialing (303) 590-3000, using the access code 11052446#. 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 the outlook for rig utilization and dayrates, general industry conditions including bidding activity, future operating results of the Company’s rigs and rental tools operations, capital expenditures, expansion and growth opportunities, asset sales 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 more detailed discussion of risk factors, 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, 2004. 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 December 31,						Twelve Months Ended December 31,
	2005			2004			2005			2004
	(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling	$	36,162		$	25,303		$	128,252		$	88,512
International Drilling		87,985			64,608			308,572			220,846
Rental Tools		25,413			19,889			94,838			67,167
TOTAL DRILLING AND RENTAL REVENUES		149,560			109,800			531,662			376,525
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling		18,423			15,530			66,827			54,126
International Drilling		68,514			46,233			237,161			168,451
Rental Tools		10,723			8,154			38,211			28,037
Depreciation and Amortization		16,619			18,642			67,204			69,241
TOTAL DRILLING AND RENTAL OPERATING EXPENSES		114,279			88,559			409,403			319,855
DRILLING AND RENTAL OPERATING INCOME		35,281			21,241			122,259			56,670
General and Administrative Expense		(8,011	)		(5,455	)		(27,830	)		(23,413	)
Gain on Disposition of Assets, Net		3,185			2,328			25,578			3,730
Provision for Reduction in Carrying Value of Certain Assets		(2,584	)		(6,562	)		(4,884	)		(13,120	)
TOTAL OPERATING INCOME		27,871			11,552			115,123			23,867
OTHER INCOME AND (EXPENSE)
Interest Expense		(10,473	)		(11,291	)		(42,113	)		(50,368	)
Change in Fair Value of Derivative Positions		550			586			2,076			(794	)
Loss on Extinguishment of Debt		(1,613	)		(24	)		(8,241	)		(8,753	)
Other Income (Expense) — Net		1,285			31			3,383			492
TOTAL OTHER INCOME AND (EXPENSE)		(10,251	)		(10,698	)		(44,895	)		(59,423	)
INCOME (LOSS) BEFORE INCOME TAXES		17,620			854			70,228			(35,556	)
INCOME TAX EXPENSE (BENEFIT)
Current Tax Expense		5,825			3,001			16,328			15,009
Deferred Tax Benefit		(44,912	)		—			(44,912	)		—
TOTAL INCOME TAX EXPENSE (BENEFIT)		(39,087	)		3,001			(28,584	)		15,009
INCOME (LOSS) FROM CONTINUING OPERATIONS		56,707			(2,147	)		98,812			(50,565	)
Discontinued Operations, Net of Taxes		—			(3,104	)		71			3,482
NET INCOME (LOSS)	$	56,707		$	(5,251	)	$	98,883		$	(47,083	)
EARNINGS (LOSS) PER SHARE — BASIC
Income (Loss) From Continuing Operations	$	0.59		$	(0.03	)	$	1.03		$	(0.54	)
Discontinued Operations, Net of Taxes	$	—		$	(0.03	)	$	—		$	0.04
Net Income (Loss)	$	0.59		$	(0.06	)	$	1.03		$	(0.50	)
EARNINGS (LOSS) PER SHARE — DILUTED
Income (Loss) From Continuing Operations	$	0.58		$	(0.03	)	$	1.01		$	(0.54	)
Discontinued Operations, Net of Taxes	$	—		$	(0.03	)	$	—		$	0.04
Net Income (Loss)	$	0.58		$	(0.06	)	$	1.01		$	(0.50	)
AVERAGE COMMON SHARES OUTSTANDING
Basic		96,562,584			94,615,448			95,818,893			94,113,257
Diluted		98,617,411			94,615,448			97,615,741			94,113,257

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

	December 31, 2005			December 31, 2004
ASSETS	(Dollars in Thousands)
CURRENT ASSETS
Cash and Cash Equivalents	$	60,176		$	44,267
Marketable Securities		18,000			—
Accounts and Notes Receivable, Net		104,681			99,315
Rig Materials and Supplies		18,179			19,206
Deferred Costs		4,223			13,546
Other Current Assets		76,076			9,818
TOTAL CURRENT ASSETS		281,335			186,152
PROPERTY, PLANT AND EQUIPMENT, NET		355,397			382,824
ASSETS HELD FOR SALE		—			23,665
OTHER ASSETS
Goodwill		107,606			107,606
Other Assets		59,252			26,343
TOTAL OTHER ASSETS		166,858			133,949
TOTAL ASSETS	$	803,590		$	726,590
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Current Portion of Long-Term Debt	$	—		$	24
Accounts Payable and Accrued Liabilities		151,100			87,329
TOTAL CURRENT LIABILITIES		151,100			87,353
LONG-TERM DEBT		380,015			481,039
OTHER LIABILITIES		12,646			9,281
STOCKHOLDERS’ EQUITY		259,829			148,917
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	803,590		$	726,590
Current Ratio		1.86			2.13
Total Long-Term Debt as a Percent of Capitalization		59	%		76	%
Book Value Per Common Share	$	2.66		$	1.57

PARKER DRILLING COMPANY AND SUBSIDIARIES
Selected Financial Data
(Unaudited)

	Three Months Ended
	December 31,						September 30,
	2005			2004			2005
DRILLING AND RENTAL REVENUES	(Dollars in Thousands)
U.S. Drilling	$	36,162		$	25,303		$	33,863
International Land Drilling		72,503			56,502			54,584
International Offshore Drilling		15,482			8,106			15,530
Rental Tools		25,413			19,889			23,928
Total Drilling and Rental Revenues		149,560			109,800			127,905
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling		18,423			15,530			15,178
International Land Drilling		55,315			40,727			39,734
International Offshore Drilling		13,199			5,506			13,413
Rental Tools		10,723			8,154			10,352
Drilling and Rental Operating Expenses		97,660			69,917			78,677
DRILLING AND RENTAL OPERATING INCOME
U.S. Drilling		17,739			9,773			18,685
International Land Drilling		17,188			15,775			14,850
International Offshore Drilling		2,283			2,600			2,117
Rental Tools		14,690			11,735			13,576
Depreciation and Amortization		(16,619	)		(18,642	)		(16,563	)
Total Drilling and Rental Operating Income		35,281			21,241			32,665
General and Administrative Expense		(8,011	)		(5,455	)		(6,443	)
Provision for Reduction in Carrying Value of Certain Assets		(2,584	)		(6,562	)		(2,300	)
Gain on Disposition of Assets, Net		3,185			2,328			5,943
TOTAL OPERATING INCOME	$	27,871		$	11,552		$	29,865

Marketable Rig Count Summary
As of December 31, 2005

	Total
U.S. Gulf of Mexico Barge Rigs
Workover		6
Intermediate		4
Deep		9
Total U.S. Gulf of Mexico Barge Rigs		19
International Land Rigs
Asia Pacific		9
Mexico		7
CIS		8
Total International Land Rigs		24
International Barge Rigs
Mexico		1
Nigeria		2
Caspian Sea		1
Total International Barge Rigs		4
Total International Rigs		28
Total Marketable Rigs		47

EX-99.2

Exhibit 99.2

Investor Contact
David Tucker:	281-406-2370
Media Contact
Marianne Gooch:	281-406-2212

PARKER DRILLING ANNOUNCES JOINT VENTURE AND NEW
CONTRACTS IN SAUDI ARABIA

Houston, February 15, 2006 — Parker Drilling Company (NYSE: PKD) (“Parker”) and Abdullah Rasheed Al-Rushaid Company for Drilling Oil and Gas Limited (“Al-Rushaid”) announced today the formation of a joint venture company which will perform four drilling contracts, each with a term of three years with a one year option, awarded by Saudi Aramco. The joint venture, Al-Rushaid Parker Drilling LLC, is a Saudi Arabian limited liability company in which Parker and Al-Rushaid will each own a 50% interest. These contracts represent Parker’s first entry into the Saudi Arabian land drilling market.

     Al-Rushaid Parker Drilling LLC, will utilize new build rigs to perform the contracts, with the first rig scheduled to arrive on location in Saudi Arabia in the third quarter of 2006, and the three remaining rigs to be delivered in the fourth quarter of 2006. Al-Rushaid Parker Drilling LLC has obtained asset-based financing to fund a substantial portion of the acquisition costs of the four new land rigs, with the balance of the acquisition cost, estimated at $20 million, funded equally by capital contributions of the joint venture partners.

     “This project is in line with our stated objective of seeking new growth opportunities in targeted markets with acceptable rates of return,” said Robert L. Parker, Jr., president and chief executive officer of Parker Drilling. “Although the financial impact to Parker should be minimal during initial years of the project, this market offers excellent opportunities for sustained growth for many years to come.”

     Abdullah Rasheed Al-Rushaid Company for Drilling Oil and Gas Limited is a subsidiary of Al-Rushaid Investment Company, which is a large well-diversified group with major operations in the oil and gas industry in Saudi Arabia.

     Parker Drilling is a Houston-based, global energy company specializing in offshore drilling and workover services in the Gulf of Mexico and international land and offshore markets. Parker also owns Quail Tools, a provider of premium industry rental tools. Parker Drilling employs approximately 3,000 people worldwide and has 47 marketed rigs.

###

This release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. 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 statements about growth opportunities in Saudi Arabia, rates of return, financing commitments, capital expenditures, the performance of new drilling contracts by the joint venture company, delivery dates for the new rigs to be utilized in Saudi Arabia 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 more detailed discussion of risk factors, 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, 2004. 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.