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) November 1, 2005

PARKER DRILLING COMPANY

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

1-7573 (Commission File Number)	73-0618660 (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))

Item 2.02 Results of Operations and Financial Condition

     On November 1, 2005, Parker Drilling Company (the “Registrant”) issued a press release announcing results of operations for the third quarter of 2005.

     A copy of this press release is attached as Exhibit 99 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, 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.

(c) Exhibits.

     The following exhibit is filed herewith:

99 Press release dated November 1, 2005, issued by the Company

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: November 1, 2005	By:	W. Kirk Brassfield
		W. Kirk Brassfield
		Senior Vice President and Chief Financial Officer

2

Index to Exhibits

Exhibit
Number		Description
	99	Press release dated November 1, 2005 issued by the Company.

EX-99

Exhibit 99

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

Parker Drilling Reports 45% Increase in Revenues for the Third Quarter and
Updates Guidance for 2005

HOUSTON, Nov. 1, 2005 — Parker Drilling Company (NYSE: PKD) today reported net income of $18.1 million, or $0.18 per diluted share, on revenues of $127.9 million for the third quarter ended September 30, 2005, compared to a net loss of $23.4 million or $0.25 per share on revenues of $87.9 million for the third quarter of 2004. Net income in the current quarter includes $3.2 million or $0.03 per diluted share related to the following non-routine items:

• $5.9 million gain on the sale of three South America land rigs,

• $1.5 million gain relating to the change in fair value of interest derivatives,

• ($1.9) million call premium expense paid on debt extinguishment, and,

• ($2.3) million impairment relating to a reduction in carrying value of a split-dollar life insurance policy.

     For the first nine months of 2005, Parker Drilling reported revenues of $382.1 million and net income of $42.2 million or $0.43 per diluted share compared to revenues of $266.7 million and a net loss of $41.8 million or $0.45 per share for the first nine months of 2004. Net income for the first nine months of 2005 includes non-routine items of $0.10 per diluted share. The detail of the non-routine items is available on Parker’s website and can be viewed or downloaded by going to “Investor Relations” and then to “Reconciliation of Non-GAAP Measures.”

     The average utilization of international land rigs for the third quarter of 2005 was 83 percent, which is significantly higher than the 61 percent reported for the third quarter of 2004. Current utilization is 84 percent for international land rigs. Average utilization for the Gulf of Mexico barge rigs for the third quarter of 2005 was 78 percent, which is a slight increase from the 74 percent reported for the third quarter of 2004. Current utilization is 79 percent for Gulf of Mexico barge rigs. Dayrates on Gulf of Mexico barges averaged approximately $6,200 per day higher in the third quarter of 2005 when compared to the third quarter of 2004.

     Capital expenditures for the nine months ended September 30, 2005, were $44.5 million. Total debt was $415.9 million and the Company’s cash balance was $91.7 million at September 30, 2005. Long-term debt has been reduced approximately $70 million during the current year,

net of premiums received. The Company has achieved $180 million of its $200 million debt reduction goal established in 2003 and anticipates reaching the goal by year end.

     “Our barge rigs in the Gulf of Mexico experienced record margins during the third quarter. These margins, along with continued improvement in our international operations and another strong quarter at Quail Tools, resulted in operational results exceeding last quarter’s results, despite the impact of two hurricanes on our US-based operations,” said Robert L. Parker Jr., president and chief executive officer.

     Parker is increasing its 2005 guidance to net income of $0.50 to $0.55 per diluted share, up from its second quarter estimate of $0.23 to $0.33 per diluted share. Both estimates include non-routine items.

     Parker has scheduled a conference call at 10 a.m. CST (11 a.m. EST) Nov. 1 to discuss third quarter 2005 results. Those interested in participating in the call may dial in at (303) 205-0033. The conference call replay can be accessed from Nov. 1, 2005 through Nov. 8, 2005, by dialing (303) 590-3000 and using the access code 11042099#. Alternatively, the call can be accessed live through the Company’s Web site at http://www.parkerdrilling.com. The archived call will be available on the Web for 12 months.

     Parker Drilling is a Houston-based, global energy company specializing in offshore drilling and work over 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 48 marketed rigs.

###

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 tool 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						Nine Months Ended
	September 30,						September 30,
	2005			2004			2005			2004
				(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling	$	33,863		$	22,788		$	92,090		$	63,209
International Drilling		70,114			49,686			220,587			156,238
Rental Tools		23,928			15,471			69,425			47,278
TOTAL DRILLING AND RENTAL REVENUES		127,905			87,945			382,102			266,725
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling		15,178			13,399			48,404			38,596
International Drilling		53,147			43,824			168,647			122,218
Rental Tools		10,352			6,558			27,488			19,883
Depreciation and Amortization		16,563			17,806			50,585			50,599
TOTAL DRILLING AND RENTAL OPERATING EXPENSES		95,240			81,587			295,124			231,296
DRILLING AND RENTAL OPERATING INCOME		32,665			6,358			86,978			35,429
General and Administrative Expense		(6,443	)		(4,924	)		(19,819	)		(17,958	)
Gain on Disposition of Assets, Net		5,943			333			22,393			1,402
Provision for Reduction in Carrying Value of Certain Assets		(2,300	)		—			(2,300	)		(6,558	)
TOTAL OPERATING INCOME		29,865			1,767			87,252			12,315
OTHER INCOME AND (EXPENSE)
Interest Expense		(9,825	)		(12,202	)		(31,640	)		(39,077	)
Change in Fair Value of Derivative Position		1,457			(1,380	)		1,526			(1,380	)
Loss on Extinguishment of Debt		(1,901	)		(8,151	)		(6,628	)		(8,729	)
Other Income (Expense) — Net		642			(294	)		2,098			461
TOTAL OTHER INCOME AND (EXPENSE)		(9,627	)		(22,027	)		(34,644	)		(48,725	)
INCOME (LOSS) BEFORE INCOME TAXES		20,238			(20,260	)		52,608			(36,410	)
INCOME TAX EXPENSE		2,165			4,542			10,503			12,008
INCOME (LOSS) FROM CONTINUING OPERATIONS		18,073			(24,802	)		42,105			(48,418	)
Discontinued Operations, Net of Taxes		(6	)		1,359			71			6,586
NET INCOME (LOSS)	$	18,067		$	(23,443	)	$	42,176		$	(41,832	)
EARNINGS (LOSS) PER SHARE — BASIC
Income (Loss) From Continuing Operations	$	0.19		$	(0.26	)	$	0.44		$	(0.52	)
Discontinued Operations, Net of Taxes	$	(0.00	)	$	0.01		$	0.00		$	0.07
Net Income (Loss)	$	0.19		$	(0.25	)	$	0.44		$	(0.45	)
EARNINGS (LOSS) PER SHARE — DILUTED
Income (Loss) From Continuing Operations	$	0.18		$	(0.26	)	$	0.43		$	(0.52	)
Discontinued Operations, Net of Taxes	$	(0.00	)	$	0.01		$	0.00		$	0.07
Net Income (Loss)	$	0.18		$	(0.25	)	$	0.43		$	(0.45	)
AVERAGE COMMON SHARES OUTSTANDING
Basic		96,053,414			94,196,255			95,568,331			93,944,927
Diluted		98,022,378			94,196,255			97,163,125			93,944,927

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

	September 30,			December 31,
	2005			2004
	(Dollars in Thousands)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents	$	91,700		$	44,267
Accounts and Notes Receivable, Net		110,408			99,315
Rig Materials and Supplies		16,866			19,206
Deferred Costs		7,148			13,546
Other Current Assets		67,746			9,818
TOTAL CURRENT ASSETS		293,868			186,152
PROPERTY, PLANT AND EQUIPMENT, NET		352,029			382,824
ASSETS HELD FOR SALE		—			23,665
OTHER ASSETS
Goodwill		107,606			107,606
Other Assets		22,263			26,343
TOTAL OTHER ASSETS		129,869			133,949
TOTAL ASSETS	$	775,766		$	726,590
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Current Portion of Long-Term Debt	$	—		$	24
Accounts Payable and Accrued Liabilities		153,595			87,329
TOTAL CURRENT LIABILITIES		153,595			87,353
LONG-TERM DEBT		415,863			481,039
OTHER LIABILITIES		8,194			9,281
STOCKHOLDERS’ EQUITY		198,114			148,917
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	775,766		$	726,590
Current Ratio		1.91			2.13
Total Long-Term Debt as a Percent of Capitalization		68	%		76	%
Book Value Per Common Share	$	2.03		$	1.57

PARKER DRILLING COMPANY AND SUBSIDIARIES
Selected Financial Data
(Unaudited)

	Three Months Ended
	September 30,						June 30,
	2005			2004			2005
	(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling	$	33,863		$	22,788		$	31,110
International Land Drilling		54,584			45,918			63,158
International Offshore Drilling		15,530			3,768			15,143
Rental Tools		23,928			15,471			24,543
Total Drilling and Rental Revenues		127,905			87,945			133,954
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling		15,178			13,399			18,838
International Land Drilling		39,734			33,553			45,765
International Offshore Drilling		13,413			10,271			13,932
Rental Tools		10,352			6,558			8,951
Drilling and Rental Operating Expenses		78,677			63,781			87,486
DRILLING AND RENTAL OPERATING INCOME
U.S. Drilling		18,685			9,389			12,272
International Land Drilling		14,850			12,365			17,393
International Offshore Drilling		2,117			(6,503	)		1,211
Rental Tools		13,576			8,913			15,592
Depreciation and Amortization		(16,563	)		(17,806	)		(17,146	)
Total Drilling and Rental Operating Income		32,665			6,358			29,322
General and Administrative Expense		(6,443	)		(4,924	)		(6,400	)
Provision for Reduction in Carrying Value of Certain Assets		(2,300	)		—			—
Gain on Disposition of Assets, Net		5,943			333			15,898
TOTAL OPERATING INCOME	$	29,865		$	1,767		$	38,820

Marketable Rig Count Summary
As of September 30, 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
Africa/Middle East		1
Mexico		7
CIS		8
Total International Land Rigs		25
International Barge Rigs
Mexico		1
Nigeria		2
Caspian Sea		1
Total International Barge Rigs		4
Total International Rigs		29
Total Marketable Rigs		48