Allis-Chalmers Energy Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net loss attributed to common stockholders of $10,280,000 or $0.14 per diluted common share on revenues of $120,016,000 against net income attributed to common stockholders of $12,312,000 or $0.35 per diluted common share on revenues of $178,265,000 in the same period of last year. Loss from operations was $3,070,000 against income from operations of $29,033,000 in the same period of last year. Net loss before income taxes was $13,758,000 against net income before income taxes of $18,439,000 in the same period of last year. Adjusted EBITDA was $20,600,000 against $48,300,000 in the same period of last year. The decrease in revenues and net income in the third quarter and the first nine months of 2009 as compared to the third quarter and the first nine months of 2008 was due primarily to the drop in the U.S. rig count, equipment utilization and pricing. For the nine months ended September 30, 2009, the company reported net loss attributed to common stockholders of $13,010,000 or $0.27 per diluted common share on revenues of $377,624,000 against net income attributed to common stockholders of $30,920,000 or $0.87 per diluted common share on revenues of $494,582,000 in the same period of last year. Loss from operations was $7,842,000 against income from operations of $80,283,000 in the same period of last year. Net loss before income taxes was $19,147,000 against net income before income taxes of $48,778,000 in the same period of last year. Adjusted EBITDA was $67,800,000 against $136,900,000 in the same period of last year.

Allis-Chalmers Energy, Inc., Q3 2009 Earnings Call, Nov-03 2009

On October 13, 2009, Allis-Chalmers Energy, Inc. and certain of its subsidiaries entered into a Fifth Amendment to its existing Second Amended and Restated Credit Agreement dated as of April 26, 2007 with Royal Bank of Canada, as administrative agent and collateral agent, and the lenders party thereto. The Fifth Amendment, among other things, permits the Company to invest up to $30 million in the aggregate in foreign subsidiaries and foreign joint ventures, of which no more than $5,000,000 shall be cash and the remainder of which will be equipment and inventory. In addition, certain provisions were amended to allow the Company to dispose of equipment and inventory by (i) transferring equipment and inventory to foreign subsidiaries and foreign joint ventures or (ii) entering into lease agreements with foreign persons of equipment or inventory moved from the U.S. to a foreign jurisdiction, subject to the $30 million cap described above.