Superior Energy Services, Inc. Reports Third Quarter 2009 Results
Excluding non-cash, pre-tax charges of
Operational factors impacting the third quarter include the following:
-- Total revenue decreased 21% as compared with the third quarter of 2008
("year-over-year") and increased 7% as compared with the second quarter
of 2009 ("sequential"). The sequential change was primarily due to
increased demand for production-related services and rental tools in
international markets, and increased demand for well intervention
services and liftboats in the Gulf of Mexico .
-- Well Intervention Segment revenue of $254.3 million decreased 20%
year-over-year and increased 10% sequentially. Rental Tools Segment
revenue was $100.8 million , a 26% decrease year-over-year and a 2%
decrease sequentially. Marine Segment revenue of $31.3 million decreased
8% year-over-year and increased 14% sequentially.
-- Gulf of Mexico revenue was approximately $222.9 million , or 3% higher
sequentially; domestic land revenue was approximately $71.4 million , a
sequential decline of 4%; and international revenue was approximately
$92.1 million , a sequential increase of 30%.
Well Intervention Segment
Third quarter revenue for the Well Intervention Segment was
This segment experienced sequential increases in production-related service activity in all three major geographic regions. In the domestic land market, the biggest activity increases were in hydraulic workover and snubbing services. In the
Rental Tools Segment
Quarterly revenue for the Rental Tools Segment was
Marine Segment
Marine Segment revenue was
Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended September 30, 2009
($ actual)
Class Liftboats Average Dayrate Utilization
----- --------- --------------- -----------
145'-155' 10 $6,385 35.5%
160'-175' 8 8,555 61.7%
200' 5 11,329 84.1%
230'-245' 3 27,330 92.4%
250' 2 30,691 83.7%
265' 2 41,247 78.3%
Equity-Method Investments
The Company's third quarter 2009 loss in its equity-method investments includes the aforementioned unrealized losses from hedging contracts of
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. Accuracy of the forward-looking statements depends on assumptions about events that change over time and is thus susceptible to periodic change based on actual experience and new developments. 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 risk factors that are described in the Company's Annual Report on Form 10-K for the year ended
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Three and Nine Months Ended September 30, 2009 and 2008
(in thousands, except earnings per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
As Adjusted As Adjusted
(Note 1) (Note 1)
Oilfield service and
rental revenues $386,455 $490,282 $1,184,725 $1,334,256
Oil and gas revenues - - - 55,072
--- --- --- ------
Total revenues 386,455 490,282 1,184,725 1,389,328
------- ------- --------- ---------
Cost of oilfield
services and rentals 215,674 236,610 635,407 649,839
Cost of oil and
gas sales - - - 12,986
--- --- --- ------
Total cost of services,
rentals and sales
(exclusive of items
shown separately below) 215,674 236,610 635,407 662,825
------- ------- ------- -------
Depreciation, depletion,
amortization and
accretion 52,720 44,842 153,566 128,675
General and administrative
expenses 63,425 68,379 188,694 204,411
Reduction in value of
intangible assets - - 92,683 -
Gain on sale of businesses - - - 40,946
--- --- --- ------
Income from operations 54,636 140,451 114,375 434,363
Other income (expense):
Interest expense, net (12,320) (11,659) (37,328) (34,865)
Earnings (losses)
from equity-method
investments, net (4,161) 23,167 (21,331) 19,359
Reduction in value
of equity-method
investment - - (36,486) -
--- --- ------- ---
Income before income taxes 38,155 151,959 19,230 418,857
Income taxes 13,736 54,665 6,923 150,667
------ ------ ----- -------
Net income $24,419 $97,294 $12,307 $268,190
======= ======= ======= ========
Basic earnings per share $0.31 $1.21 $0.16 $3.32
===== ===== ===== =====
Diluted earnings per share $0.31 $1.19 $0.16 $3.27
===== ===== ===== =====
Weighted average common
shares used in computing
earnings per share:
Basic 78,188 80,538 78,126 80,691
====== ====== ====== ======
Diluted 78,812 81,845 78,684 82,041
====== ====== ====== ======
Note 1
On January 1, 2009 , we adopted the provisions of a new accounting standard
which changed the accounting for the Company's 1.5% senior exchangeable
notes. The comparative Statements of Operations for the three and nine
months ended September 30, 2008 have been adjusted to comply with this
standard on a retrospective basis.
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2009 AND DECEMBER 31, 2008
(in thousands)
9/30/2009 12/31/2008
--------- ----------
(Unaudited) As Adjusted
(Note 1)
ASSETS
Current assets:
Cash and cash equivalents $34,282 $44,853
Accounts receivable, net 354,902 360,357
Income taxes receivable 8,506 -
Prepaid expenses 27,511 18,041
Other current assets 379,106 223,598
------- -------
Total current assets 804,307 646,849
------- -------
Property, plant and equipment, net 1,208,819 1,114,941
Goodwill 481,021 477,860
Equity-method investments 55,678 122,308
Intangible and other long-term assets, net 37,139 128,187
------ -------
Total assets $2,586,964 $2,490,145
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $69,847 $87,207
Accrued expenses 143,756 152,536
Income taxes payable - 20,861
Deferred income taxes 66,478 36,830
Current maturities of long-term debt 810 810
--- ---
Total current liabilities 280,891 298,244
------- -------
Deferred income taxes 241,899 246,824
Long-term debt, net 724,560 654,199
Other long-term liabilities 48,967 36,605
Total stockholders' equity 1,290,647 1,254,273
--------- ---------
Total liabilities and stockholders'
equity $2,586,964 $2,490,145
========== ==========
Note 1
On January 1, 2009 , we adopted the provisions of a new accounting
standard 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 this standard
on a retrospective basis.
Superior Energy Services, Inc. and Subsidiaries
Segment Highlights
Three months ended September 30, 2009, June 30, 2009
and September 30, 2008
(Unaudited)
(in thousands)
Three months ended,
-------------------
Revenue September 30, 2009 June 30, 2009 September 30, 2008
------------------ ------------- ------------------
Well Intervention $254,335 $231,121 $319,798
Rental Tools 100,832 102,533 136,600
Marine 31,288 27,507 33,884
------ ------ ------
Total Revenues $386,455 $361,161 $490,282
======== ======== ========
----------------------------------------------------
Gross Profit (1) September 30, 2009 June 30, 2009 September 30, 2008
------------------ ------------- ------------------
Well Intervention $94,098 $83,607 $150,895
Rental Tools 64,621 69,231 90,178
Marine 12,062 11,055 12,599
------ ------ ------
Total Gross Profit $170,781 $163,893 $253,672
======== ======== ========
----------------------------------------------------
Income from
Operations September 30, 2009 June 30, 2009 September 30, 2008
------------------ ------------- ------------------
Well Intervention (2) $31,563 $(65,094) $90,349
Rental Tools 17,940 20,123 43,628
Marine 5,133 4,920 6,474
----- ----- -----
Total Income (Loss)
from Operations $54,636 $(40,051) $140,451
======= ======== ========
FOR FURTHER INFORMATION CONTACT:
Terence Hall , CEO; Robert Taylor , CFO;
Greg Rosenstein , VP of Investor Relations, (504) 587-7374
SOURCE
Terence Hall, CEO, or Robert Taylor, CFO, or Greg Rosenstein, VP of Investor Relations, all of Superior Energy Services, Inc., +1-504-587-7374
