HAMILTON, Bermuda, Dec. 15, 2017 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors") (NYSE: NBR) and Tesco Corporation ("Tesco") (NASDAQ:TESO) today announced the completion of the previously announced acquisition of Tesco by Nabors.   

Under the terms of the agreement, Nabors acquired all common shares of Tesco in an all-stock transaction. Tesco shareholders will receive 0.68 common shares of Nabors for each share of Tesco stock owned. With the completion of the transaction, Tesco common stock has ceased trading on the NASDAQ Stock Market.

"Both Nabors and Tesco share a long heritage of innovation, with inventions that have significantly enhanced the safety and efficiency of drilling operations over the past decade. Today marks a new milestone for the future of our company," said Nabors Chairman, President and Chief Executive Officer Anthony G. Petrello. "As we implement new levels of drilling automation and analytics, this combination of Tesco and Nabors' exceptional talent and technologies strengthens our ability to accelerate and scale deployment while continuing to innovate."

Petrello added, "I am proud of the individuals from both organizations that diligently worked to close this transaction in four months. We anticipate achieving substantial operational and commercial synergies in the same expeditious manner."

About Nabors Industries

Nabors Industries (NYSE: NBR) owns and operates the world's largest land-based drilling rig fleets and is a provider of offshore platform rigs in the United States and numerous international markets. Nabors also provides directional drilling services, performance tools, and innovative technologies for its own rig fleet and those of third parties. Leveraging our advanced drilling automation capabilities, Nabors highly skilled workforce continues to set new standards for operational excellence and transform our industry.

Media Contacts: 

Nabors - Dennis A. Smith, Vice President of Corporate Development & Investor Relations, +1 281-775-8038 or Nick Swyka, Director of Corporate Development & Investor Relations, +1 281-775-2407.  To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail at mark.andrews@nabors.com.

Forward-looking Statements

The information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. Risks and uncertainties related to the Arrangement include, but are not limited to: potential adverse reactions or changes to business relationships resulting from the completion of the transaction; competitive responses to the  transaction; costs and difficulties related to the integration of Tesco's businesses and operations with Nabors' business and operations; the inability to obtain, or delays in obtaining, cost savings and synergies from the transaction; unexpected costs, charges or expenses resulting from the transaction; litigation relating to the transaction; the inability to retain key personnel; and any changes in general economic and/or industry specific conditions. As a result of these and other factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements.

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SOURCE Nabors Industries Ltd.; Tesco Corporation

HAMILTON, Bermuda and HOUSTON, Dec. 1, 2017 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors") (NYSE: NBR) and Tesco Corporation ("Tesco") (NASDAQ:TESO) today jointly provided a status update of the previously announced acquisition (the "Arrangement") of Tesco by Nabors. 

At a Special Meeting of Shareholders held today (the "Meeting") in Canada, Tesco shareholders approved, by a large majority, the Arrangement pursuant to which Nabors will acquire all of Tesco's common shares in a stock-for-stock transaction.

Tesco President and Chief Executive Officer Fernando Assing, commented, "We are truly pleased with the strong support received from our shareholders which resulted in the approval of both management proposals during today's shareholder meeting. We are excited about the opportunities that the incorporation of Tesco in to Nabors will bring to our shareholders, our employees, and our technologies. We must now focus on the closing process." 

Nabors Chairman, President and CEO Anthony G. Petrello, commented, "We are gratified to have received approval of the transaction by such a large majority of Tesco shareholders and we anticipate closing by year end. The integration plan is substantially complete and ready to implement upon closing.  We are looking forward to welcoming the highly capable members of the Tesco organization to Nabors and effecting the expected synergies." 

The approval process with the Federal Antimonopoly Service of the Russian Federation, which was initiated on October 10, 2017, remains ongoing.  The companies expect the closing of the transaction to occur by year end. 

About Tesco Corporation

Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. The Company's strategy is to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and natural gas. Tesco^® is a registered trademark in the United States, Canada and the European Union.

About Nabors Industries

Nabors Industries (NYSE: NBR) owns and operates the world's largest land-based drilling rig fleet and is a provider of offshore platform rigs in the United States and numerous international markets. Nabors also provides directional drilling services, performance tools, and innovative technologies for its own rig fleet and those of third parties. Leveraging our advanced drilling automation capabilities, Nabors highly skilled workforce continues to set new standards for operational excellence and transform our industry.

Media Contacts: 

Tesco – Chris Boone, Senior Vice President and Chief Financial Officer, +1 713-359-7000

Nabors - Dennis A. Smith, Vice President of Corporate Development & Investor Relations, +1 281-775-8038 or Nick Swyka, Director of Corporate Development & Investor Relations, +1 281-775-2407.   To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail at mark.andrews@nabors.com.

Forward-looking Statements

The information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. Risks and uncertainties related to the Arrangement include, but are not limited to: the risk that the conditions to the closing of the proposed transaction are not satisfied; the risk that regulatory approvals required for the proposed transaction are not obtained or are obtained subject to conditions that are not anticipated; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; uncertainties as to the timing of the proposed transaction; competitive responses to the proposed transaction; costs and difficulties related to the integration of Tesco's businesses and operations with Nabors business and operations; the inability to obtain, or delays in obtaining, cost savings and synergies from the proposed transaction; unexpected costs, charges or expenses resulting from the proposed transaction; litigation relating to the proposed transaction; the inability to retain key personnel; and any changes in general economic and/or industry specific conditions. As a result of these factors, Nabors actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements.

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SOURCE Nabors Industries Ltd.; Tesco Corporation

HAMILTON, Bermuda and HOUSTON, Nov. 6, 2017 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors") (NYSE: NBR), and Tesco Corporation ("Tesco") (NASDAQ:TESO), today jointly provided a status update of the previously announced acquisition of Tesco Corporation by Nabors Industries Ltd.  The two companies have recently received anti-trust clearance from the U.S. Department of Justice and the Canada Competition Bureau.  In addition, the approval process with the Federal Antimonopoly Service of the Russian Federation was initiated, with its determination expected in the next few weeks.

The companies further stated that a joint integration team has been working since early September to plan the integration of Tesco and Nabors and assure rapid realization of the anticipated synergies.  The team remains committed to yielding the transaction synergies estimated at the time of the announcement.      

Nabors Chairman, President and CEO Anthony G. Petrello, commented, "I am pleased to have obtained anti-trust clearance in two of the key markets.  This clearance leaves the business intact and facilitates our timeline to closing.  The work of the integration team is proceeding and its initial analysis indicates we will achieve the projected synergies. This bolsters our confidence in realizing our targets for Nabors Drilling Solutions for the next three years."

Tesco President and CEO Fernando Assing commented, "We are pleased with the progress achieved on the transaction, including securing two of the key regulatory approvals. The Tesco team is excited about and remains committed to the integration with Nabors while maintaining focus on delivering results."

About Nabors:  Nabors Industries (NYSE: NBR) owns and operates the world's largest land-based drilling rig fleet and is a leading provider of offshore platform rigs in the United States and numerous international markets. Nabors also provides drilling equipment, directional drilling services, performance software, and other value added technologies for its own rig fleet and those of third parties.  Leveraging our advanced drilling automation capabilities, Nabors' highly skilled workforce continues to set new standards for operational excellence. 

About Tesco Corporation:  Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. The Company's strategy is to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and natural gas. TESCO^® is a registered trademark in the United States, Canada and the European Union.

Nabors Media Contact:  Dennis A. Smith, Vice President of Corporate Development & Investor Relations, +1 281-775-8038 or Nick Swyka, Director of Corporate Development & Investor Relations, +1 281-775-2407.   To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail at mark.andrews@nabors.com.

TESCO Media Contact:  Chris Boone – Chief Financial Officer, Tesco Corporation (713) 359-7000.

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SOURCE Nabors Industries Ltd.

HAMILTON, Bermuda, Aug. 14, 2017 /PRNewswire/ --

Transaction Highlights:

• Accelerates the automation and integration of tubular services into Nabors rigs and creates immediate global scale for Nabors Drilling Solutions
• Combines complementary portfolio of products, services and technologies to enhance Nabors position as a leading worldwide player in drilling equipment and performance software
• Strengthens Nabors financial position through substantial commercial and operational synergies
• Brings experienced Tesco management, employees, and technology into Nabors operations

Nabors Industries Ltd. ("Nabors") (NYSE: NBR) is pleased to announce that the company has signed an Arrangement Agreement ("Agreement") to acquire all of the issued and outstanding common shares of Tesco Corporation ("Tesco") (NASDAQ: TESO), with each outstanding share of common stock of Tesco being exchanged for 0.68 common shares of Nabors. This transaction will create a leading rig equipment and drilling automation provider by combining Canrig, Nabors rig equipment subsidiary, with Tesco's rig equipment manufacturing, rental and aftermarket service business. Additionally, Tesco operates a tubular services business in numerous key regions globally, which will immediately benefit Nabors Drilling Solutions' operation.

Nabors is uniquely positioned to automate and integrate tubular services into its global rig footprint. By combining its complementary products, tools and technologies, they will be able to offer customers more fit-for-purpose products, services and solutions. This expanded capability will enable them to further improve operational efficiency, accelerate and scale its development of new and innovative equipment on its new generations of rigs as well as upgrade older classes of rigs for a new age of drilling.

This transaction values Tesco common stock at $4.62 per share based on the closing price of Nabors shares on the New York Stock Exchange on August 11, 2017, which represents a 19% premium of the closing value of Tesco shares on the NASDAQ Stock Market on August 11, 2017. The transaction is subject to regulatory approval and customary closing conditions and is expected to close in the fourth quarter.

"The addition of Tesco to our company represents another step forward for both our rig equipment and Nabors Drilling Solutions business. Tesco is respected for the quality of their product offerings and aftermarket service levels. I am eager to realize the benefits to our combined customers and shareholder groups that this combination will provide," said Nabors Chairman, President and Chief Executive Officer Anthony G. Petrello.

Michael W. Sutherlin, Tesco's Non-Executive Chairman of the Board, said, "With this transaction, Tesco will now have an expanded platform, which will allow for acceleration of its strategy and increase the potential for market share gains around key industry trends. The combination will provide significant value to Tesco shareholders by participating in a stronger and broader offering of complementary rig equipment product lines and tubular services." 

Fernando Assing, Tesco's President and Chief Executive Officer, commented, "This is a very exciting opportunity to combine two world class companies that are highly focused on delivering best-in-class services to the oil and gas industry. This combination will further reinforce Nabors position as a leading rig equipment and drilling automation provider by integrating Tesco's advanced tubular services technology and products into the Nabors global rig footprint and NDS services. The new expanded platform also creates significant career opportunities for Tesco's employees as part of a much larger international organization."

Mr. Petrello concluded, "This transaction accelerates the strategy I presented at our Analyst Day in November of 2016. Several years ago we concluded that the drilling rig will serve as the delivery platform for future rig services. The early success of our service integrations efforts are substantiating this strategy. Now, with the largest land drilling fleet and with the automation features of our Rigtelligence® operating system, Nabors is uniquely positioned to further deploy Tesco's premium casing running tools and automation technologies globally. Additionally, the combination of our complementary rig equipment product lines and technologies will deliver enhanced value to both our customers and our shareholders. Finally, the incremental cash flow and the realization of expected synergies combined with Tesco's solid balance sheet will further strengthen our financial position. First year operating synergies are expected to approach $20 million with full run-rate operating synergies of $30 to $35 million. In addition, we expect to realize capital savings from facility rationalization and the planned build out of our casing running operation. We are excited about Tesco's respected management team and highly skilled employees joining Nabors and helping to deliver the benefits of this combination to our customers and shareholders."   

The transaction has been approved by the boards of directors of both companies and is subject to approval by Tesco shareholders and the satisfaction of customary closing conditions and regulatory approvals. Intrepid Partners served as exclusive financial advisor to Nabors. Milbank, Tweed, Hadley, & McCloy LLP and Stikeman Elliott LLP served as legal advisors to Nabors. 

About Nabors Industries

Nabors Industries (NYSE: NBR) owns and operates the world's largest land-based drilling rig fleet and is a leading provider of offshore platform rigs in the United States and numerous international markets. Nabors also provides directional drilling services, performance tools, and innovative technologies throughout many of the most significant oil and gas markets. Leveraging our advanced drilling automation capabilities, Nabors highly skilled workforce continues to set new standards for operational excellence and transform our industry.

MEDIA CONTACT:

Dennis A. Smith, Vice President of Corporate Development & Investor Relations, +1 281-775-8038 or Nick Swyka, Director of Corporate Development & Investor Relations, +1 281-775-2407.

To request investor materials, contact Nabors corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail at mark.andrews@nabors.com

Forward Looking Statements

The information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. Risks and uncertainties related to the Acquisition include, but are not limited to: the failure of the Tesco shareholders to approve the proposed transaction; the risk that the conditions to the closing of the proposed transaction are not satisfied; the risk that regulatory approvals required for the proposed transaction are not obtained or are obtained subject to conditions that are not anticipated; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; uncertainties as to the timing of the proposed transaction; competitive responses to the proposed transaction; costs and difficulties related to the integration of Tesco's businesses and operations with Nabors business and operations; the inability to obtain, or delays in obtaining, cost savings and synergies from the proposed transaction; unexpected costs, charges or expenses resulting from the proposed transaction; litigation relating to the proposed transaction; the inability to retain key personnel; and any changes in general economic and/or industry specific conditions. As a result of these factors, Nabors actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements. 

Additional Information About the Proposed Transaction

This release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of a vote or proxy. The proposed transaction anticipates that the sale of Nabors shares will be exempt from registration under the Securities Act, pursuant to Section 3(a)(10) of the Securities Act. Consequently, the Nabors shares will not be registered under the Securities Act or any state securities laws.

In connection with the proposed transaction, Tesco intends to file with the SEC a proxy statement in respect of the meeting of its shareholders to approve the Arrangement, and other relevant documents to be mailed by Tesco to its shareholders in connection with the Arrangement. Tesco's proxy statement will also be filed with the Canadian securities regulators. WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION about Tesco, Nabors and the proposed transaction. Investors and security holders will be able to obtain these materials (when they are available) and other documents filed with the SEC and the Canadian securities regulators free of charge at the SEC's website, www.sec.gov and at the System for Electronic Document Analysis and Retrieval (SEDAR) maintained by the Canadian Securities Administrators at www.sedar.com. In addition, a copy of Tesco's proxy statement (when it becomes available) may be obtained free of charge from Tesco's investor relations website at http://www.tescocorp.com. Investors and security holders may also read and copy any reports, statements and other information filed by Tesco, with the SEC, at the SEC public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 or visit the SEC's website for further information on its public reference room.

Participants in the Solicitation

Tesco and its directors, executive officers and certain other members of management and employees may be deemed to be participants in the solicitation of proxies for its security holder approvals to be obtained for the proposed transaction. Information regarding Tesco's directors and executive officers is available in its proxy statement filed with the SEC by Tesco on March 27, 2017 in connection with its 2017 annual meeting of shareholders. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC and the Canadian securities regulators when they become available. This release shall not constitute an offer to sell or the solicitation of any offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

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SOURCE Nabors Industries Ltd.

HOUSTON, March 27, 2017 /PRNewswire/ -- Tesco Corporation (NASDAQ: TESO) announced today that its management team will participate in the Scotia Howard Weil 45^th Annual Energy Conference to be held in New Orleans, Louisiana on March 26-29, 2017.

Fernando Assing, President and Chief Executive Officer, is scheduled to present on Wednesday, March 29 at approximately 1:15 p.m. CT (2:15 p.m. ET). The presentation will not be webcast, but related materials will be available in the Investor Relations section of the Tesco Corporation website at www.tescocorp.com and will be archived there for approximately 90 days.

ABOUT TESCO CORPORATION

Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. Tesco Corporation seeks to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and gas.

For more information please contact:
Chris Boone – Chief Financial Officer
Tesco Corporation
(713) 359-7000

SOURCE Tesco Corporation

HOUSTON, Feb. 28, 2017 /PRNewswire/ -- TESCO Corporation ("TESCO" or the "Company") (NASDAQ: TESO) today reported fourth quarter 2016 financial and operating results.

Fourth Quarter Operating Results

Fernando Assing, TESCO's Chief Executive Officer, commented, "We are encouraged by our improved sequential financial performance as activity levels respond to higher commodity prices and rig count. However, we remain cautious as we recognize that 2017 will still present challenges in international and offshore markets as well as increasing cost escalation risks and limited pricing power in North America."

TESCO reported revenue of $35.3 million for the fourth quarter ended December 31, 2016, up from $30.4 million, or 16% in the third quarter of 2016, and down from $52.2 million, or 32% for the fourth quarter of 2015. The sequential increase in revenue was primarily from higher aftermarket part sales and increased activity in both U.S. land and offshore tubular services markets.

TESCO reported a U.S. GAAP net loss of $20.1 million, or $(0.43) per diluted share, for the fourth quarter ended December 31, 2016. Adjusted net loss for the quarter was $13.3 million, or $(0.28) per share, excluding special items, consisting primarily of several charges related to receivables and restructuring costs. This compares to a U.S. GAAP net loss of $22.1 million, or $(0.48) per diluted share in the third quarter of 2016, and a U.S. GAAP net loss of $78.1 million, or $(2.00) per diluted share, for the fourth quarter of 2015. Adjusted net loss in the third quarter of 2016 was $17.3 million, or $(0.37) per diluted share, and in the fourth quarter of 2015 was $13.4 million, or $(0.33) per diluted share.

Adjusted EBITDA loss was $4.4 million for the fourth quarter compared to adjusted EBITDA loss of $9.1 million in the third quarter of 2016, an improvement of 52%. Fourth quarter 2016 U.S. GAAP operating loss was $18.9 million and adjusted operating loss was $13.1 million, which excludes the impact of $5.8 million of pre-tax charges. This compares to the third quarter 2016 U.S. GAAP operating loss of $21.9 million and adjusted operating loss of $17.4 million, which excluded $4.5 million of pre-tax charges.

Cash and cash equivalents as of December 31, 2016 increased from the third quarter by $1.4 million to $91.5 million primarily due to $3.5 million of positive operating cash flow.

Adjusted free cash flow was $2.5 million before approximately $0.4 million of restructuring payments, compared to negative adjusted free flow of $5.7 million in the prior quarter. The sequential increase was primarily caused by lower operating losses, inventory reductions, higher collections and tax refunds.

Products Segment

• Revenue for Q4 2016 was $18.8 million, a $1.8 million, or 11% increase from Q3 2016 and a $6.7 million, or 26% decrease from Q4 2015.
  • Product sales for Q4 2016 included 6 top drive units (4 new and 2 used) and 2 used catwalks, compared to 3 units (3 new and 0 used) sold in Q3 2016 and 17 units (6 new and 11 used) sold in Q4 2015.
  • There were 116 top drives in our rental fleet at the end of the fourth quarter with a utilization of 18%, down from 118 at the end of the third quarter.
• U.S. GAAP operating loss before adjustments in the Products segment for Q4 2016 was $5.3 million, or 28% of sales, a $2.1 million, or 28% improvement from Q3 2016. Fourth quarter operating loss and operating margin after adjustments were $1.6 million and (9)%, respectively. This sequential increase in profitability was due primarily to an increase in aftermarket sales and a more profitable mix of product sales.
• At December 31, 2016, top drive backlog was 10 units, with a total potential value of $9.3 million, compared to 9 units at September 30, 2016, with a potential value of $7.8 million. This compares to a backlog of 8 units at December 31, 2015, with a potential value of $7.2 million. Today, our top drive backlog stands at 9 units with a potential value of $8.1 million.

Tubular Services Segment

• Revenue for Q4 2016 was $16.5 million, a $3.1 million, or 23% increase from Q3 2016 and a $10.2 million, or 38% decrease from Q4 2015. This sequential increase was driven primarily by higher activity in both U.S. land and offshore markets.
• U.S. GAAP operating loss before adjustments in the Tubular Services segment for Q4 2016 was $6.9 million, a $1.1 million or 14% improvement from Q3 2016. Fourth quarter operating loss and operating margin after adjustments were $5.3 million and (32)%, respectively. Incremental profitability benefited from higher land accessory sales and higher offshore activity in the Gulf of Mexico.

Other Segments and Expenses

• Research and engineering U.S. GAAP costs for Q4 2016 were $1.5 million, compared to $1.2 million in Q3 2016 and $2.2 million in Q4 2015. We continue to invest in the development, commercialization, and enhancement of our proprietary technologies.
• Corporate and other U.S. GAAP costs for Q4 2016 were $5.2 million, flat from Q3 2016 and a $1.4 million, or 21%, decrease from Q4 2015. On an adjusted basis, the Q4 2016 costs decreased by $0.3 million and $0.9 million from Q3 2016 and Q4 2015, respectively.
• Net foreign exchange losses for Q4 2016 were $1.1 million, primarily from the devaluation of the Egyptian pound, compared to $0.4 million in Q3 2016 and $8.6 million in Q4 2015. The largest foreign exchange losses in Q4 2015 were from Latin America.
• The effective tax rate for Q4 2016 was a 1% benefit compared to a 2% benefit in each of Q3 2016 and Q4 2015.
• Total capital expenditures were $2.6 million in Q4 2016, primarily for offshore tubular services equipment, partially offset by asset sale proceeds of $1.2 million.

Outlook

While North America rig count is expected to continue to increase during 2017, weakness in international and offshore markets is anticipated to continue. We see some opportunities to start to increase pricing in North America, however prevalent overcapacity will likely limit pricing power throughout 2017. We are also facing risks that cost escalation, which includes labor inflation and shortages, incremental logistics and equipment reactivation will exceed price increases in the short term.

In the first quarter of 2017;

• Products revenue is expected to be higher sequentially from higher new top drive sales, partially offset by lower rental utilization in certain markets. Aftermarket revenue is expected to increase slightly following recent increases in quoting activity. Products adjusted operating loss is expected to be approximately flat sequentially.
• Tubular Services revenue and adjusted operating loss are expected to be flat to down sequentially as increased North America land activity is offset by reduced international land activity and lower offshore activity and the impact of cost escalation.
• Corporate and R&E expenses are expected to increase sequentially in the first quarter as we restore certain employee costs and benefit plans to remain competitive in a tightening labor market.
• As a result, adjusted EBITDA loss is expected to be slightly higher sequentially in the first quarter. We also expect cash levels to decline due to operating losses, U.S. property taxes and restructuring payments.

For the full year of 2017, our objective is to pursue opportunities for higher new product and aftermarket sales as well as increased land and offshore tubular services activity. However, our incremental profitability will be highly dependent on securing increased pricing, managing cost escalation risks and increasing the adoption of our higher margin new products and services.

"During the fourth quarter and through this quarter, we have made continued progress on several key initiatives, including CDS™ Evolution adoption, top drive performance upgrades and ARC™ contracts. Customer interest in offerings that reduce cost and improve drilling performance continues to increase," Mr. Assing said. "In addition, we committed to additional restructuring actions starting in the fourth quarter to reduce our fixed cost structure."

"Within Products, we recently performed our first field trial of the Pipe Drive system and are making certain enhancements as we prepare for the next upcoming field trial. With ARC, we continued to increase the number of contracted installations in established markets with customer trials in new international markets ongoing. Finally, we booked several top drive performance upgrade jobs that will begin shipping in the first quarter."

"In Tubular Services, we sequentially increased the revenue from CDS Evolution in our targeted trial U.S. markets. We also performed additional field trials of our new multi-plug launcher, which is planned to go into full production in the second quarter. Global markets are increasingly understanding the value proposition of automated casing running, growing our opportunities for new and used CDS sales along with our service offering."

"As the market begins to recover, we remain highly focused on returning to a quarterly breakeven EBITDA run rate while minimizing cash usage over the next several quarters. To accomplish this, our core strategic priority continues to be to leverage our existing platform by: 1) growing CDS land Evolution adoption and gaining offshore Tubular Services market share, 2) accelerating all AMSS offerings as rigs reactivate, 3) commercializing our new pipe handling products, and 4) increasing the market share and features of our ARC platform. At the same time, we must carefully manage the ramp-up risks related to safety, quality, cost escalation and working capital management. We are prepared to take on these challenges and again thank our shareholders for their support during this very difficult market," Mr. Assing concluded.

Conference Call

The Company will conduct a conference call to discuss its results for the fourth quarter of 2016 on February 28 at 9:00 a.m. Central Time. To participate in the conference call, dial 1-877-407-0672 inside the U.S. or 1-412-902-0003 outside the U.S. approximately 10 minutes prior to the scheduled start time. The conference call and all questions and answers will be recorded and made available until March 14. To listen to the replay, call 1-877-660-6853 inside the U.S. or 1-201-612-7415 outside the U.S. and enter conference ID 13654977#.

The conference call will be webcast live as well as by replay at the Company's web site, www.tescocorp.com. Listeners may access the call through the "Conference Calls" link in the Investors section of the site.

TESCO Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. The Company's strategy is to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and natural gas. TESCO^® is a registered trademark in the United States, Canada and the European Union.

For further information please contact:
Chris Boone (713) 359-7000
TESCO Corporation

Caution Regarding Forward-Looking Information and Risk Factors

This news release contains forward-looking statements within the meaning of Canadian and United States securities laws, including the United States Private Securities Litigation Reform Act of 1995. From time to time, our public filings, press releases and other communications (such as conference calls and presentations) will contain forward-looking statements. Forward-looking information is often, but not always identified by the use of words such as "anticipate," "believe," "expect," "plan," "intend," "forecast," "target," "project," "may," "will," "should," "could," "estimate," "predict" or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements in this press release include, but are not limited to, statements with respect to expectations of our prospects, future revenue, earnings, activities and technical results.

Forward-looking statements and information are based on current beliefs as well as assumptions made by, and information currently available to, us concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. The forward-looking statements in this news release are made as of the date it was issued and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that outcomes implied by forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements.

These risks and uncertainties include, but are not limited to, the impact of: levels and volatility of oil and gas prices; cyclical nature of the energy industry and credit risks of our customers; fluctuations of our revenue and earnings; operating hazards inherent in our operations; changes in governmental regulations, including those related to the climate and hydraulic fracturing; consolidation or loss of our customers; the highly competitive nature of our business; technological advancements and trends in our industry, and improvements in our competitors' products; global economic and political environment, and financial markets; terrorist attacks, natural disasters and pandemic diseases; our presence in international markets, including political or economic instability, currency restrictions and trade and economic sanctions; cybersecurity incidents; protecting and enforcing our intellectual property rights; changes in, or our failure to comply with, environmental regulations; restrictions under our credit facility that that may limit our ability to finance future operations or capital needs and could accelerate our debt payments; failure of our manufactured products and claims under our product warranties; availability of raw materials, component parts and finished products to produce our products, and our ability deliver the products we manufacture in a timely manner; retention and recruitment of a skilled workforce and key employees; and ability to identify and complete acquisitions. These risks and uncertainties may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. When relying on our forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.

Copies of our Canadian public filings are available through www.TESCOcorp.com and on SEDAR at www.sedar.com. Our U.S. public filings are available at www.sec.gov and through www.TESCOcorp.com.

The risks included here are not exhaustive. Refer to "Part I, Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K for further discussion regarding our exposure to risks. Additionally, new risk factors emerge from time to time and it is not possible for us to predict all such factors, nor to assess the impact such factors might have on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

Non-GAAP Measures

Our management reports our financial statements in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") but evaluates our performance based on non-GAAP measures as defined under the SEC's Regulation G. These measures may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Non-GAAP measures should not be considered in isolation or as substitutes for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP.

Our management uses Non-GAAP measures:

• to assess the performance of the Company's operations;
• as a method used to evaluate potential acquisitions;
• in presentations to our Board of Directors to enable them to have the same consistent measurement basis of operating performance used by management; and
• in communications with investors, analysts, lenders, and others concerning our financial performance.

We believe Adjusted EBITDA is useful to an investor in evaluating our operating performance because:

• it is widely used by investors in our industry to measure a company's operating performance without regard to items such as interest expense, income tax expense (benefit), depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, severance and restructuring charges, financing methods, capital structure and the method by which assets were acquired;
• it helps investors more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest), merger and acquisition transactions (primarily gains/losses on sale of a business), and asset base (primarily depreciation and amortization) and actions that do not affect liquidity (stock compensation expense and non-cash impairments) from our operating results; and
• it helps investors identify items that are within our operational control. Depreciation and amortization charges, while a component of operating income, are fixed at the time of the asset purchase in accordance with the depreciable lives of the related asset and as such are not a directly controllable period operating charge.

We believe adjusted net income (loss) is useful to an investor in evaluating our operating performance because:

• it is a consistent measure of the underlying results of the Company's business by excluding items that could mask the Company's operating performance;
• it is widely used by investors in our industry to measure a company's operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluding items to be outside of the Company's normal operating results; and
• it helps investors identify and analyze underlying trends in the business.

We believe adjusted operating income (loss) is useful to an investor in evaluating our operating performance because:

• it is a consistent measure of the underlying results of the Company's business by excluding items that could mask the Company's operating performance;
• it is widely used by investors in our industry to measure a company's operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluding items to be outside of the Company's normal operating results; and
• it helps investors identify and analyze underlying trends in the business.

We believe free cash flow is useful to an investor in evaluating our operating performance because:

• it measures the Company's ability to generate cash;
• it is widely used by investors in our industry to measure a company's cash flow performance; and
• it helps investors identify and analyze underlying trends in the business.

SOURCE Tesco Corporation

HOUSTON, Feb. 7, 2017 /PRNewswire/ -- Tesco Corporation (NASDAQ: TESO) announced today that it will release its fourth quarter and full year 2016 financial results on Tuesday, February 28, 2017 before the market opens.  In conjunction with the news release, Tesco has scheduled a conference call that same day at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). 

ABOUT TESCO CORPORATION

Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. The Company's strategy is to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and natural gas. TESCO^® is a registered trademark in the United States, Canada and the European Union.

For more information please contact:
Chris Boone – Chief Financial Officer
Tesco Corporation
(713) 359-7000

SOURCE Tesco Corporation

HOUSTON, Dec. 5, 2016 /PRNewswire/ -- Tesco Corporation (NASDAQ: TESO) announced today that its management team will be participating at two institutional investor conferences during the first week of December 2016.

Fernando R. Assing, President and Chief Executive Officer, is scheduled to participate in a panel discussion during the Cowen and Company Energy & Natural Resources Conference to be held in New York City on December 6 - 8, 2016.  The panel is titled "Evolving Large Cap Service Model – From the Perspective of Small Cap Competitors" and will take place on Tuesday, December 6 at 2:25 p.m. ET (1:25 p.m. CT). 

Chris L. Boone, Senior Vice President and Chief Financial Officer, is scheduled to make a presentation at the Capital One Securities 11^th Annual Energy Conference to be held in New Orleans on December 6 - 8, 2016. The Company's presentation will take place on Wednesday, December 7 at 10:20 a.m. CT (11:20 a.m. ET).

The presentations will not be webcast, but related materials will be available in the Investor Relations section of the Tesco Corporation website at www.tescocorp.com and will be archived there for approximately 90 days.

ABOUT TESCO CORPORATION

Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. Tesco Corporation seeks to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and gas.

For more information please contact:
Chris Boone – Chief Financial Officer
Tesco Corporation
(713) 359-7000

SOURCE Tesco Corporation

HOUSTON, Nov. 30, 2016 /PRNewswire/ -- Tesco Corporation ("TESCO" or the "Company") (NASDAQ: TESO) today announced the appointment of Doug Ramsay to the Board of Directors. Mr. Ramsay has been appointed to sit on both the Compensation and the Corporate Governance and Nominating Committees. His appointment is effective immediately and he will serve until the next annual general meeting.

"We are pleased that Doug has agreed to join the Tesco Board of Directors," stated Michael Sutherlin, Tesco's Chairman. "Doug has over thirty years of experience in key leadership positions in the energy services industry, including with Canadian based companies Calfrac Well Services Ltd. and Fracmaster Ltd.  We believe his international experience in key markets where Tesco operates and his knowledge of the energy services industry will be a major asset to our Company.  The Board of Directors and our management team look forward to his contributions to the organization."

Mr. Ramsay has 34 years of experience in the energy services industry.  He is currently Vice Chairman of the Board of Calfrac Well Services Ltd., a position he has held since January 2014. He was a founder of Calfrac Well Services Ltd., and retired as Chief Executive Officer of that Company in December 2013, a position he held since the company's inception in September 1999.  Earlier, Mr. Ramsay held several management roles with Fracmaster Ltd., most recently as President and member of the board of directors from 1992 to 1994, and Vice President of Sales and Marketing in Canada from 1989 until 1992. 

Mr. Ramsay holds a Petroleum Engineering Technologies diploma from the Southern Alberta Institute of Technology.

About Tesco
Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. The Company's strategy is to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and natural gas. TESCO^® is a registered trademark in the United States, Canada and the European Union. Casing Drive System™, CDS™ is a trademark in the United States and Canada.

For further information please contact:
Chris Boone – Chief Financial Officer
Tesco Corporation
(713) 359-7000

SOURCE Tesco Corporation

HOUSTON, Nov. 14, 2016 /PRNewswire/ -- Tesco Corporation ("TESCO" or the "Company") (NASDAQ: TESO) today announced the appointment of John Gatlin as Senior Vice President and Chief Operating Officer, effective immediately. In this role, Mr. Gatlin will lead both the Products and Tubular Services segments and be responsible for Tesco's QHSE, global manufacturing and supply chain management. He will report directly to Fernando Assing, Tesco's President and Chief Executive Officer.

"We are pleased that John has agreed to join the Tesco team. John brings two decades of diverse leadership experience in the energy services industry, from building strong operational teams that deliver results to exploiting new international market opportunities. This included designing and implementing new business processes that improve quality, performance and cost efficiencies. In addition, John brings significant experience in integrating strategic acquisitions," Mr. Assing said.

"We are reinventing and repositioning Tesco to meet the new realities of an increasingly competitive market. We are doing this through initiatives that integrate drilling services into rig operations, particularly around automating pipe handling, mechanizing rig floors and developing plug and play tools that can easily move between rigs. John's strategic thinking and strong operational acumen will help us successfully accelerate that transformation to put Tesco back onto a path of sustained top-line growth and profitability."

Mr. Gatlin has 20 years of experience in the energy services and consulting businesses. He joins Tesco from a position as Senior Advisor to the Chairman of Chemeor Inc. and previously served as Chemeor's President and Chief Executive Officer from April 2014 to April 2016.  Earlier, Mr. Gatlin held several management roles with National Oilwell Varco, most recently as President of the Pressure Pumping Equipment division from March 2012 to April 2014 and President of the NOV IntelliServ joint venture between National Oilwell Varco and Schlumberger from June 2009 until March 2012. Previously, he worked with McKinsey & Co.'s Corporate Finance and Strategy practice.

Mr. Gatlin holds a Bachelor of Science degree in Petroleum Engineering from the University of Texas at Austin and a Masters of Business Administration from the Wharton School at the University of Pennsylvania.

About Tesco

Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. The Company's strategy is to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and natural gas. TESCO^® is a registered trademark in the United States, Canada and the European Union. Casing Drive System™, CDS™ is a trademark in the United States and Canada.

For further information please contact:
Chris Boone – Chief Financial Officer
Tesco Corporation
(713) 359-7000

SOURCE Tesco Corporation

HOUSTON, Nov. 4, 2016 /PRNewswire/ -- Tesco Corporation ("TESCO" or the "Company") (NASDAQ: TESO) today reported third quarter 2016 financial and operating results.

Third Quarter Operating Results

Fernando Assing, Tesco's Chief Executive Officer, commented, "With global energy markets signaling the formation of an oilfield services activity bottom late in 2016, we are well positioned competitively and have a liquidity position that will allow us to take advantage of opportunities to start growing our business and deploying our new technologies."

Tesco reported revenue of $30.4 million for the third quarter ended September 30, 2016, down from $33.6 million, or 10%, in the second quarter of 2016, and down from $61.4 million, or 50%, for the third quarter of 2015. The sequential decline in revenue was primarily from expected lower new product sales.

Tesco reported a U.S. GAAP net loss of $22.1 million, or $(0.48) per share, for the third quarter ended September 30, 2016. Our adjusted net loss for the quarter was $17.3 million, or $(0.37) per share, excluding special items, consisting primarily of several charges related to inventory and restructuring costs. This compares to a U.S. GAAP net loss of $18.9 million, or $(0.47) per diluted share, in the second quarter of 2016, and a U.S. GAAP net loss of $19.9 million, or $(0.51) per diluted share, for the third quarter of 2015. Adjusted net loss in the second quarter of 2016 was $15.8 million, or $(0.39) per diluted share, and in the third quarter of 2015 was $12.5 million, or $(0.32) per diluted share.

Adjusted EBITDA loss was $9.1 million for the third quarter compared to adjusted EBITDA loss of $7.5 million in the second quarter of 2016 on a 10% revenue decline. For the third quarter of 2016, U.S. GAAP operating loss was $21.9 million and adjusted operating loss was $17.4 million, which excludes the impact of $4.5 million of charges. This compares to the second quarter 2016 U.S. GAAP operating loss of $19.2 million and adjusted operating loss of $16.0 million, which excludes $3.2 million of charges.

Cash and cash equivalents as of September 30, 2016 decreased from the second quarter by $7.3 million to $90.1 million primarily due to restructuring payments of $0.8 million, $3 million of certain international receivables not collected until October and the cash collateralization of $2 million of letters of credit due to the non-renewal of the credit facility. During the quarter, Tesco elected not to proceed with a credit facility replacement as the costs and restrictions were not proportional to the borrowing availability.

Free cash flow was a use of cash of $5.7 million before approximately $0.8 million of restructuring payments. The sequential decline was primarily caused by the $3 million in collection delays, higher capital spending of over $1 million and lower used equipment sales of over $1 million. However, inventory declined by approximately $5 million, excluding reserves, from product sales and improved supply chain management.

 Products Segment

• Revenue for Q3 2016 was $17.0 million, a $4 million, or 17%, decrease from Q2 2016 and an $11.8 million, or 41%, decrease from Q3 2015.
  • Product sales for Q3 2016 included three top drive units (3 new and 0 used), compared to six units (3 new and 3 used) sold in Q2 2016 and five units (5 new and 0 used) sold in Q3 2015. During the third quarter, the carrying value of inventory associated with new hydraulic top drives was determined to be above current market prices due to availability of used equipment in the market.
  • There were 118 top drives in our rental fleet at the end of the third quarter with a utilization of 21%. While the rental fleet remained flat, utilization improved from 15% in the prior quarter.
• U.S. GAAP operating loss before adjustments in the Products segment for Q3 2016 was $7.4 million, or (44)% of sales, a $4.7 million, or 174%, a decrease from Q2 2016. Third quarter operating loss and operating margin after adjustments were $3.8 million and (22)%, respectively, with sequential decremental margins of 39%. This sequential decline in profitability was due to lower sales and a less profitable mix of product sales.
• At September 30, 2016, top drive backlog was nine units, with a total potential value of $7.8 million, compared to nine units at June 30, 2016, with a potential value of $8.5 million. This compares to a backlog of 20 units at September 30, 2015, with a potential value of $20.0 million. Today, our top drive backlog stands at 12 units with a potential value of $11.5 million.

Tubular Services Segment

• Revenue for Q3 2016 was $13.4 million, a $0.4 million, or 3%, increase from Q2 2016 and a $19.2 million, or 59%, decrease from Q3 2015. This sequential increase was driven primarily by higher sales of accessories and used CDS equipment that offset weakness in offshore markets. While activity in U.S. land increased during the quarter, unsustainable pricing by smaller competitors continued but is slowly leading to attrition.
• U.S. GAAP operating loss before adjustments in the Tubular Services segment for Q3 2016 was $8.0 million, a $1.3 million improvement from Q2 2016. Third quarter operating loss and operating margin after adjustments were $7.2 million and (54)%, respectively. This slight sequential decrease was primarily due to the lower mix of offshore revenue and ramp-up costs for reactivating U.S. land crews for expected fourth quarter activity.

Other Segments and Expenses

• Research and engineering U.S. GAAP costs for Q3 2016 were $1.2 million, compared to $1.4 million in Q2 2016 and $2.1 million in Q3 2015. We continue to invest in the development, commercialization, and enhancement of our proprietary technologies.
• Corporate and other U.S. GAAP costs for Q3 2016 were $5.3 million, a $0.5 million, or 9%, decrease from Q2 2016 and a $0.9 million, or 15%, decrease from Q3 2015. On an adjusted basis, the Q3 2016 costs decreased by $0.5 million and $0.6 million from Q2 2016 and Q3 2015, respectively.
• Net foreign exchange losses for Q3 2016 were $0.4 million, compared to $0.0 million in Q2 2016 and $2.0 million in Q3 2015.
• The effective tax rate for Q3 2016 was a 2% benefit compared to a 1% benefit in Q2 2016 and an 11% expense in Q3 2015.
• Total capital expenditures were $2.6 million in Q3 2016, primarily for tubular services equipment, a $1.5 million increase from Q2 2016 and a $0.5 million, or 24%, increase from Q3 2015.

Outlook

While U.S. rig count is expected to continue to increase in the fourth quarter of 2016, weakness in international markets and pricing pressure in most markets is expected to continue. We do not expect any pricing improvement in the near-term given the excess service capacity in the market.

Products revenue is expected to be flat to slightly down sequentially as rental utilization in certain markets is expected to decline and the mix of new products has a lower average selling price. Aftermarket Sales and Services revenue is expected to increase slightly following recent increases in quoting activity. Products adjusted operating loss is expected to be flat to slightly improved sequentially as higher-margin product sales and aftermarket activity offset lower rental utilization.

Tubular Services revenue is expected to increase slightly sequentially from increased U.S. land activity and market share gains. Offshore activity is expected to run at levels similar to the third quarter. Adjusted operating loss is expected to be flat sequentially as improved profitability in U.S. land is offset by lower profits from accessory and used CDS sales.

Sequential Corporate and R&E expenses are expected to decrease slightly in the fourth quarter. Depreciation expense in the fourth quarter should remain flat sequentially.

As a result of these factors, adjusted EBITDA loss is expected to slightly improve sequentially in the fourth quarter. We also expect cash usage to decline but at a reduced pace compared with the third quarter as collections improve.

"During the third quarter we completed key short-term restructuring activities. We continue to look for cost optimization opportunities and to evaluate the effectiveness of our global footprint, with further actions identified for implementation before the end of 2016," Mr. Assing said. "We made progress on our initiatives and investments to add volume and improve our operating efficiencies. These initiatives are aligned with our long-term strategy and will focus on reduced costs, service offering integration and drilling performance, that deliver operational and well improvements and clear cost advantages."

"Within Products, we made progress on our new pipe-handling technologies for both newbuilds and rig upgrades. During the quarter we completed in-house testing of the Pipe Drive System and expect the first field trials to begin in the fourth quarter. We shipped our first offshore catwalk and are seeing increased demand for high-end automated land catwalks in the Middle East, especially for rentals. We also commercialized our first generation automated rig-control software ("ARC") that provides advanced drilling functionalities through the top drive. We have six ARC contracts primarily in North America with growing customer interest in international markets."

"In Tubular Services, we were pleased with the pace of CDS Evolution conversion in our targeted trial U.S. markets, with revenue doubling sequentially to almost one third of the total in those markets. We are performing field trials of the new multi-plug launcher, which will round out our cementing accessories portfolio. By incorporating cementing accessories with our CDS Evolution offering, the value proposition for the customer and quality of the cementing job is greatly enhanced and costs significantly reduced. The combined offering should allow us to continue to increase the conversion adoption rate next year while gaining market share and improving profitability even as prices remain under pressure. Offshore, we have developed several new customer relationships, an indication Tesco is increasingly considered a clear alternative to the two dominant players in the market."

"Finally, as we commercialize the R&E projects developed over the last few years, we will continue to invest in drilling performance innovation in 2017. Our focus will be on shorter development time rig mechanization products and rig controls that provide clear economic benefits to our customers."

"Looking ahead, we see signs that our markets are beginning to bottom. North America rig count has been steadily improving and international rig count in our key markets has started to stabilize. However, it is likely pricing will remain challenged until excess capacity is reduced and some pricing power returns. As a result, we continue to plan for a lower-for-longer market environment while we begin to make investments to gain market share and scale to leverage the eventual recovery," Mr. Assing concluded.

Conference Call

The Company will conduct a conference call to discuss its results for the third quarter 2016 on November 4 at 9:00 a.m. Central Time. To participate in the conference call, dial 1-877-407-0672 inside the U.S. or 1-412-902-0003 outside the U.S. approximately 10 minutes prior to the scheduled start time. The conference call and all questions and answers will be recorded and made available until November 18. To listen to the replay, call 1-877-660-6853 inside the U.S. or 1-201-612-7415 outside the U.S. and enter conference ID 13648080#.

The conference call will be webcast live as well as by replay at the Company's web site, www.tescocorp.com. Listeners may access the call through the "Conference Calls" link in the Investors section of the site.

Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. The Company's strategy is to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and natural gas. TESCO^® is a registered trademark in the United States, Canada and the European Union. Casing Drive System™, CDS™ is a trademark in the United States and Canada.

For further information please contact:
Chris Boone (713) 359-7000
Tesco Corporation

Caution Regarding Forward-Looking Information and Risk Factors

This news release contains forward-looking statements within the meaning of Canadian and United States securities laws, including the United States Private Securities Litigation Reform Act of 1995. From time to time, our public filings, press releases and other communications (such as conference calls and presentations) will contain forward-looking statements. Forward-looking information is often, but not always identified by the use of words such as "anticipate," "believe," "expect," "plan," "intend," "forecast," "target," "project," "may," "will," "should," "could," "estimate," "predict" or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements in this press release include, but are not limited to, statements with respect to expectations of our prospects, future revenue, earnings, activities and technical results.

Forward-looking statements and information are based on current beliefs as well as assumptions made by, and information currently available to, us concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. The forward-looking statements in this news release are made as of the date it was issued and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that outcomes implied by forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements.

These risks and uncertainties include, but are not limited to, the impact of: levels and volatility of oil and gas prices; cyclical nature of the energy industry and credit risks of our customers; fluctuations of our revenue and earnings; operating hazards inherent in our operations; changes in governmental regulations, including those related to the climate and hydraulic fracturing; consolidation or loss of our customers; the highly competitive nature of our business; technological advancements and trends in our industry, and improvements in our competitors' products; global economic and political environment, and financial markets; terrorist attacks, natural disasters and pandemic diseases; our presence in international markets, including political or economic instability, currency restrictions and trade and economic sanctions; cybersecurity incidents; protecting and enforcing our intellectual property rights; changes in, or our failure to comply with, environmental regulations; restrictions under our credit facility that that may limit our ability to finance future operations or capital needs and could accelerate our debt payments; failure of our manufactured products and claims under our product warranties; availability of raw materials, component parts and finished products to produce our products, and our ability deliver the products we manufacture in a timely manner; retention and recruitment of a skilled workforce and key employees; and ability to identify and complete acquisitions. These risks and uncertainties may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. When relying on our forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.

Copies of our Canadian public filings are available through www.tescocorp.com and on SEDAR at www.sedar.com. Our U.S. public filings are available at www.sec.gov and through www.tescocorp.com.

The risks included here are not exhaustive. Refer to "Part I, Item 1A - Risk Factors" in our Annual Report on Form 10-K filed for the year ended December 31, 2015 for further discussion regarding our exposure to risks. Additionally, new risk factors emerge from time to time and it is not possible for us to predict all such factors, nor to assess the impact such factors might have on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.