Superior Energy Services, Inc. Announces First Quarter 2009 Results
Factors impacting the first quarter include the following:
- Well Intervention Segment revenue of
$288.1 million increased 23% over the first quarter of 2008 ("year-over-year") and decreased 5% as compared with the fourth quarter of 2008 ("sequential"). The sequential decrease was due to lower demand for production-related services, primarily in domestic land market areas. - Rental Tools Segment revenue was
$125.9 million , a 3% decrease year-over-year and 16% decrease sequentially, primarily due to decreased rentals of accommodations and stabilization equipment. - Marine Segment revenue of
$23.1 million was unchanged year-over-year and decreased 39% sequentially. The sequential decrease is primarily due to lower utilization. - Earnings from equity-method investments of
$2.3 million include unrealized earnings of$3.2 million from hedging contracts. - The Company's interest expense includes a non-cash component of
$4.4 million and$4.1 million for the first quarter of 2009 and first quarter of 2008, respectively. InJanuary 2009 , the Company adopted Financial Accounting Standards Board Staff Position APB 14-1 which changed the accounting for the Company's 1.5% senior exchangeable notes. - Gulf of
Mexico revenue was approximately$261 million , revenue from domestic land market areas was approximately$103 million and international revenue was approximately$73 million , as compared with fourth quarter 2008 revenue of approximately$270 million from the Gulf ofMexico ,$141 million from domestic land market areas and$81 million from the international market areas.
Well Intervention Segment
First quarter revenue for the Well Intervention Segment was
Rental Tools Segment
Quarterly revenue for the Rental Tools Segment was
Marine Segment
Marine Segment revenue was
During the second quarter, the 245-ft. class Superior Gale will perform an 80-day project in the Bay of Campeche, marking the first time in Company history that one of the Company's liftboats will work in Mexican waters.
Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended March 31, 2009
($ actual)
Average
Class Liftboats Dayrate Utilization
----- --------- ------- -----------
145'-155' 10 $8,468 36.1%
160'-175' 8 10,931 48.8%
200' 5 17,396 54.9%
230'-245' 3 27,531 47.0%
250' 2 38,090 88.9%
Equity-Method Investments
The
Conference Call Information
The Company will host a conference call at
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 which involve
known and unknown risks, uncertainties and other factors. Among the factors
that could cause actual results to differ materially are: volatility of the
oil and gas industry, including the level of exploration, production and
development activity; risks associated with the uncertainty of macroeconomic
and business conditions worldwide, as well as the global credit markets; risks
associated with the Company's rapid growth; changes in competitive factors and
other material factors that are described from time to time in the Company's
filings with the
FOR FURTHER INFORMATION CONTACT:
Terence Hall , CEO; Robert Taylor , CFO;
Greg Rosenstein , VP of Investor Relations, (504) 587-7374
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Three Months Ended March 31, 2009 and 2008
(in thousands, except earnings per share amounts)
(unaudited)
Three Months Ended
March 31,
---------
2009 2008
---- ----
As Adjusted
(Note 1)
Oilfield service and rental revenues $437,109 $386,319
Oil and gas revenues - 55,072
--- ------
Total revenues 437,109 441,391
------- -------
Cost of oilfield services and rentals 222,465 191,132
Cost of oil and gas sales - 12,986
Total cost of services, rentals and sales 222,465 204,118
------- -------
Depreciation, depletion, amortization and
accretion 49,868 41,879
General and administrative expenses 64,986 69,606
Gain on sale of businesses - 37,888
--- ------
Income from operations 99,790 163,676
Other income (expense):
Interest expense, net (12,420) (12,138)
Interest income 51 905
Other expense (919) (950)
Earnings from equity-method investments,
net 2,256 3,957
Income before income taxes 88,758 155,450
Income taxes 31,953 55,921
------ ------
Net income $56,805 $99,529
======= =======
Basic earnings per share $0.73 $1.23
===== =====
Diluted earnings per share $0.72 $1.21
===== =====
Weighted average common shares used
in computing earnings per share:
Basic 78,032 80,776
====== ======
Diluted 78,428 82,086
====== ======
Note 1
On January 1, 2009 , we adopted Financial Accounting Standards
Board Staff Position APB 14-1 which changed the accounting
for the Company's 1.5% senior exchangeable notes. The
comparative Statement of Operations for the months ended March
31, 2008 has been adjusted to comply with FSP APB 14-1 on a
retrospective basis.
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2009 AND DECEMBER 31, 2008
(in thousands)
3/31/2009 12/31/2008
(unaudited) (audited)
----------- ---------
As Adjusted
(Note 1)
ASSETS
Current assets:
Cash and cash equivalents $110,374 $44,853
Accounts receivable, net 353,429 360,357
Income taxes receivable 3,092 -
Prepaid expenses 30,912 18,041
Other current assets 293,286 223,598
------- -------
Total current assets 791,093 646,849
------- -------
Property, plant and equipment, net 1,144,486 1,114,941
Goodwill, net 477,189 477,860
Equity-method investments 119,400 122,308
Intangible and other long-term assets, net 127,150 128,187
Total assets $2,659,318 $2,490,145
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $59,586 $87,207
Accrued expenses 146,437 152,536
Income taxes payable - 20,861
Deferred income taxes 67,815 36,830
Current maturities of long-term debt 810 810
--- ---
Total current liabilities 274,648 298,244
------- -------
Deferred income taxes 241,969 246,824
Long-term debt, net 792,204 654,199
Other long-term liabilities 36,968 36,605
Total stockholders' equity 1,313,529 1,254,273
--------- ---------
Total liabilities and stockholders'
equity $2,659,318 $2,490,145
========== ==========
Note 1
On January 1, 2009 , we adopted Financial Accounting Standards
Board Staff Position APB 14-1 which changed the accounting for the
Company's 1.5% senior exchangeable notes. The comparative Balance
Sheet as of December 31, 2008 has been adjusted to comply with FSP
APB 14-1 on a retrospective basis.
Superior Energy Services, Inc. and Subsidiaries
Segment Highlights
Three months ended March 31, 2009, December 31, 2008
and March 31, 2008
(Unaudited)
(in thousands)
Three months ended,
----------------------------------------------
Revenue March 31, December 31, March 31,
2009 2008 2008
----------------------------------------------
Well Intervention $288,057 $304,417 $234,115
Rental Tools 125,944 149,239 130,327
Marine 23,108 38,140 23,089
Oil and Gas - - 55,072
Less: Oil and Gas
Eliminations (2) - - (1,212)
--- --- ------
Total Revenues $437,109 $491,796 $441,391
======== ======== ========
Three months ended,
----------------------------------------------
Gross Profit (1) March 31, December 31, March 31,
2009 2008 2008
----------------------------------------------
Well Intervention $122,568 $134,073 $101,716
Rental Tools 83,908 102,533 86,227
Marine 8,168 19,721 7,244
Oil and Gas - - 42,086
--- --- ------
Total Gross Profit $214,644 $256,327 $237,273
======== ======== ========
Three months ended,
----------------------------------------------
Income from Operations March 31, December 31, March 31,
2009 2008 2008
----------------------------------------------
Well Intervention $61,700 $67,474 $50,778
Rental Tools 35,309 50,709 45,757
Marine 2,781 13,146 2,578
Oil and Gas - - 64,563
--- --- ------
Total Income from
Operations $99,790 $131,329 $163,676
======= ======== ========
(1) Gross profit is calculated by subtracting cost of services
(exclusive of depreciation, depletion, amortization and accretion)
from revenue for each of the Company's segments.
(2) Oil and gas eliminations represent products and services from the
Company's segments provided to the Oil and Gas Segment.
SOURCE
CEO,
or
CFO,
or
VP of Investor Relations,
all of
+1-504-587-7374
Web Site: http://www.superiorenergy.com
(SPN)
