IPAA2004 Oil & Gas Investment Symposium

April 19, 2004

IPAA2004 Oil & Gas Investment Symposium

April 19, 2004

Robert L. Parker Jr. James W. WhalenPresident and CEO Senior Vice President - CFO

Robert L. Parker Jr. James W. WhalenPresident and CEO Senior Vice President - CFO

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Forward Looking StatementsForward Looking Statements

The following presentation 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, 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, asset sales, expansion and growth opportunities, financing activities, debt repayment and other such matters, are forward-looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ 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, 2003. Each forward-looking statement speaks only as of the date of this presentation, and the Company undertakes no obligation to publicly update or revise any forward-looking statement.

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Investment HighlightsInvestment Highlights

Geographic and asset diversification

Significant presence in core international markets

High margin rental tool business

Outstanding safety record

Favorable industry outlook

Experienced management team

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Parker Drilling OverviewParker Drilling Overview

Leading worldwide provider of contract drilling and related services Among the most geographically diverse drilling contractors in

the world – operated in 50 countries and U.S. since inception in 1934

Reputation for operational expertise and experience in drilling in unique and challenging environments

Core operating areas include: International land drilling focused in CIS and Asia Pacific region International offshore drilling focused in Caspian Sea and

Nigerian transition zones U.S. barge drilling in GOM

Quail Tools provides premium rental tools for land and offshore drilling and workover activities

High margin business serving major and independent producers in the GOM, West Texas and Rockies

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Non-Core AssetsNon-Core Assets

Non-core assets comprised of GOM jackups and platforms and Latin America rigs

GOM jackups and platforms 6 shallow water jackups capable of drilling in 9 to 215 feet of water

4 platform rigs

Latin America land rigs 16 rigs located in Colombia, Peru, Bolivia and Argentina

Non-core assets written down to $145.6 million in 2003

Parker may sell other assets in addition to non-core assets

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Geographic and Asset DiversificationGeographic and Asset Diversification

Gulf of MexicoGulf of Mexico

ColombiaColombiaColombiaColombia

PeruPeru

BoliviaBolivia

NigeriaNigeria

ChadChad

KazakhstanKazakhstan

RussiaRussia

SakhalinSakhalin

ChinaChina

TurkmenistanTurkmenistan

KuwaitKuwait

IndonesiIndonesiaa

New New ZealandZealand

Papua Papua New New GuineaGuinea

BangladeshBangladesh

Rig Key

Land Platform Jackup Project Barge Management

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Status of GOM BusinessStatus of GOM Business

Jackup Rigs 4/6 $ 23,300 $ 21,800 $ 20,200

Deep Barges 8/9* $ 20,300 $ 18,500 $ 18,400

Interm. Barges 1/5 $ 15,500 $ 14,400 $ 14,000

Workover Barges 3/7 $ 11,100 $ 10,400 $ 10,700

Platform Rigs 1/4 $ 20,500 $ 17,400 $ 13,300

17/31 = 55% Utilization

* Rig 53B currently in shipyard preparing to move to Mexico

Rig Type Utilization Current 4Q03 3Q03

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Revenues and Operating Income SourcesRevenues and Operating Income Sources

2003 Operating Income2003 Revenues

Total = $385.9 million (includes Discontinued Operations)

Total = $122.2 million (includes Discontinued Operations)

US Offshore18%

US Offshore16%

Quail14%

Quail26%

Int’l Offshore20% Int’l Offshore

19%

CIS 21%

CIS 24%

Asia Pacific

8%

Asia Pacific – 6%

Discontinued Ops. - 19%

Discontinued Ops - 9%

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High Margin Rental Tool BusinessHigh Margin Rental Tool Business

Quail Tools provides premium rental tools for deep water and land drilling operations Consistent high margin business even during down cycles Significant contributor to Parker Drilling’s cash flow

Four locations in Louisiana, South Texas, West Texas and Wyoming

Quail Tools

12%

U.S. Offshore 29%

International Land 29%

International Offshore

19%

Project Mgmt.

11%

Fiscal Year Ended December 31, 2000 2001 2002 2003

Revenues $42,833 $65,629 $47,510 $54,637

Gross Profit $26,839 $42,624 $25,700 $31,586

Gross Margins 62.7% 64.9% 54.1% 57.8%

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Outstanding Safety RecordOutstanding Safety Record

Quail Tools

12%

U.S. Offshore 29%

International Land 29%

International Offshore

19%

Project Mgmt.

11%

0

1

2

3

4

5

6

1997 1998 1999 2000 2001 2002 2003

IADC

Parker

(1) TRIR = Recordable Incidents/100 Workers per Year

Total Recordable Incidence Rate (1)

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Business StrategiesBusiness Strategies

Today:

Significantly reduce debt and enhance liquidity

Increase utilization of barge and land rigs

Control costs / minimize capital expenditures

Tomorrow:

Pursue strategic growth opportunities

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Significantly Reduce DebtSignificantly Reduce Debt

Goal: debt reduction of $200 million

Asset sales, cash on hand, operating cash flow

Term Loan provides additional flexibility

Near-Term target: debt to capital ratio of 55-60%

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Increase UtilizationIncrease Utilization

Utilization rates have been at historically low levels

Parker has restructured management and marketing infrastructure for its various operating segments

Relocated personnel closer to customers’ key decision makers

Each operating segment held accountable for its profitability

Revised compensation structure

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Control Costs / Minimize CapexControl Costs / Minimize Capex

Continue ongoing cost reduction programs Below $20 million for 2003 G&A expense (compared to $24.7

million in 2002)

Minimize capital expenditures Spent $35 million in 2003, well below budget of $50 million Budget of $50 million in 2004 Limit spending to maintenance and high return projects Active preventive maintenance program

Only after balance sheet has been stabilized and operations are in order, pursue a prudent growth plan

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Favorable Industry OutlookFavorable Industry Outlook

Despite continued strength in oil and gas prices, day rates and utilizations in most of the Company’s drilling markets were at historically low levels in 2003

E&P companies addressing a number of issues including debt reduction and lack of acceptable well prospects

E&P expenditures are expected to increase in 2004 Industry research projects 2004 expenditures to increase 4-10%

Continued strength in commodity prices and increase in worldwide rig count should lead to rebound in the near-term

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Historical Commodity PricesHistorical Commodity Prices

Oil and gas prices continue to remain strong relative to historical levels

Source: Bloomberg

$0

$5

$10

$15

$20

$25

$30

$35

$40

Mar-94

Mar-95

Mar-96

Mar-97

Mar-98

Mar-99

Mar-00

Mar-01

Mar-02

Mar-03

Mar-04

Oil

Pric

e

$0

$2

$4

$6

$8

$10

$12

Gas

Pric

e

Oil Price Gas Price

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Historical Utilization RatesHistorical Utilization Rates

As seen by the utilization rates below, Parker’s sector of the drilling industry is in a down cycle

2000 2001 2002 2003Transition Zone Rigs

U.S. Barge Deep Drilling 92% 93% 78% 78%

U.S. Barge Intermediate Drilling 93% 80% 38% 30%

U.S. Barge Workover & Shallow Drilling 44% 53% 32% 31%

International Barge Drilling 97% 97% 85%

Offshore Rigs

Jackup Rigs 86% 78% 80% 82%

Platform Rigs 53% 47% 9% 18%

Land Rig Data

International Rigs 35% 49% 42% 32%

76%

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Parker GOM Utilization vs. IndustryParker GOM Utilization vs. Industry

As of 4/9/2004 2003 2002Parker Industry Parker Industry Parker Industry

Workover Barges 34% 27% 33% 34% 40% 40%

Intermediate Barges 26% 37% 30% 50% 38% 54%

Deep Barges 89% 65% 77% 62% 78% 57%

Jackups < 250' 73% 54% 79% 55% 74% 41%

Platforms < 1000HP 25% 34% 18% 34% 10% 27%

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Historical Financial PerformanceHistorical Financial Performance

Quail Tools

12%

U.S. Offshore 29%

International Land 29%

International Offshore

19%

Project Mgmt.

11%

($ in millions) 2001

2002

2003

Revenues $532.7 $427.5 $385.9

Drilling & Rental Operating Income (1)

198.0 137.7 122.2

Interest Expense 53.0 52.4 53.8

Net Income 11.1 (114.1) (109.7)

Capex 122.0 45.2 35.0

Total Assets 1,105.8 953.3 847.6

Net Debt 531.8 537.9 503.9

Revenues and Operating Income includes Discontinued Operations(1) Drilling & Rental Operating Income excludes Depreciation

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OutlookOutlook

Asset sales process is ongoing Remain committed to reduce debt by $200 million

GOM market should improve in 2004 Increase in utilization expected with a number of new contracts

beginning by mid-January International markets expected to continue to improve

CIS experiencing increased activity; Parker’s presence growing Asia-Pacific activity improving Opportunities in Middle East

Outlook for Quail Tools is positive Recent improvements in GOM rental activity Rocky Mountain location continues to grow