Superior Energy Services, Inc. Announces Second Quarter 2013 Results
HOUSTON,
These results compare with the second quarter of 2012 net income from continuing operations of
For the six months ended
"We were able to slightly increase profit margins for the second consecutive quarter in the Onshore Completions and Workover segment despite downtime in pressure pumping related to equipment relocation and downtime for most services impacted by poor weather in
"Gulf of
Finally, our international revenue for the first six months of 2013 has increased 13% over the first half of 2012 as growth plans in
U.S. land market revenue was approximately
Drilling Products and Services Segment
Drilling Products and Services segment revenue was
The primary factor driving the higher sequential revenue in this segment was a 12% increase in international market revenue to
Onshore Completion and Workover Services Segment
Onshore Completion and Workover Services segment revenue in the second quarter was
On a sequential basis, revenue declined in pressure pumping due to the relocation of equipment from
Income from operations as a percentage of revenue was 11.8% as compared with 11.7% in the first quarter of 2013, resulting from increased service intensity in pressure pumping.
Production Services Segment
Production Services segment revenue was
U.S. land market revenue increased 7% sequentially to
Subsea and Technical Solutions Segment
Subsea and Technical Solutions segment revenue was
International revenue increased 48% sequentially to
2013 Earnings Guidance Update
The Company's earnings per share guidance for 2013 has narrowed to a range of
Dunlap commented, "The changes to our earnings guidance reflect our belief that completions and production-related services activity in the U.S. will not change materially during the last half of 2013. We have adjusted our capital spending plans downward by lowering capital expenditures in the U.S. We don't believe this reduction will inhibit our long-term market position.
"We are on pace to achieve and quite possibly exceed our Gulf of
Conference Call Information
The Company will host a conference call at
Statements in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections or strategies for the future, may be "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections and strategies reflected in or suggested by the forward-looking statements. Among the factors that could cause actual results to differ materially are the cyclical nature and volatility of the oil and gas industry, including the level of exploration, production and development activity and the volatility of oil and gas prices; risks associated with the uncertainty of macroeconomic and business conditions worldwide; the effect of regulatory programs and environmental matters on our performance, including the risk that future changes in the regulation of hydraulic fracturing could reduce or eliminate demand for our pressure pumping services; risks associated with business growth outpacing the capabilities of the Company's infrastructure and workforce;; risks associated with the integration of the
FOR FURTHER INFORMATION CONTACT:
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES | ||||||||
Consolidated Statements of Operations | ||||||||
Three and Six Months Ended June 30, 2013 and 2012 | ||||||||
(in thousands, except earnings per share amounts) | ||||||||
(unaudited) | ||||||||
Three Months Ended |
Six Months Ended | |||||||
June 30, |
June 30, | |||||||
2013 |
2012 |
2013 |
2012 | |||||
Revenues |
$ 1,159,713 |
$ 1,243,319 |
$ 2,295,192 |
$ 2,210,156 | ||||
Cost of services (exclusive of items shown separately below) |
711,883 |
711,284 |
1,419,370 |
1,258,051 | ||||
Depreciation, depletion, amortization and accretion |
154,987 |
135,516 |
304,621 |
238,112 | ||||
General and administrative expenses |
156,967 |
157,519 |
307,131 |
333,540 | ||||
Income from operations |
135,876 |
239,000 |
264,070 |
380,453 | ||||
Other income (expense): |
||||||||
Interest expense, net |
(26,942) |
(29,871) |
(54,482) |
(60,365) | ||||
Other |
773 |
(306) |
1,273 |
95 | ||||
Loss on early extinguishment of debt |
(884) |
- |
(884) |
- | ||||
Gain on sale of equity method investment |
- |
17,880 |
- |
17,880 | ||||
Income from continuing operations before income taxes |
108,823 |
226,703 |
209,977 |
338,063 | ||||
Income taxes |
40,264 |
83,880 |
77,691 |
125,083 | ||||
Net income from continuing operations |
68,559 |
142,823 |
132,286 |
212,980 | ||||
Loss from discontinued operations, net of income tax |
- |
(970) |
- |
(17,207) | ||||
Net income |
$ 68,559 |
$ 141,853 |
$ 132,286 |
$ 195,773 | ||||
Basic earnings per share: |
||||||||
Net income from continuing operations |
$ 0.43 |
$ 0.91 |
$ 0.83 |
$ 1.51 | ||||
Loss from discontinued operations |
- |
(0.01) |
- |
(0.12) | ||||
Net income |
$ 0.43 |
$ 0.90 |
$ 0.83 |
$ 1.39 | ||||
Diluted earnings per share: |
||||||||
Net income from continuing operations |
$ 0.43 |
$ 0.90 |
$ 0.82 |
$ 1.49 | ||||
Loss from discontinued operations |
- |
(0.01) |
- |
(0.12) | ||||
Net income |
$ 0.43 |
$ 0.89 |
$ 0.82 |
$ 1.37 | ||||
Weighted average common shares used in computing earnings per share: |
||||||||
Basic |
159,337 |
157,017 |
159,142 |
141,282 | ||||
Diluted |
160,930 |
158,632 |
160,768 |
143,092 |
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
JUNE 30, 2013 AND DECEMBER 31, 2012 | ||||
(in thousands) | ||||
6/30/2013 |
12/31/2012 | |||
(Unaudited) |
(Audited) | |||
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
$ 65,399 |
$ 91,199 | ||
Accounts receivable, net |
1,031,325 |
1,027,218 | ||
Deferred income taxes |
20,732 |
34,120 | ||
Prepaid expenses |
93,319 |
93,190 | ||
Inventory and other current assets |
245,164 |
214,630 | ||
Total current assets |
1,455,939 |
1,460,357 | ||
Property, plant and equipment, net |
3,229,781 |
3,255,220 | ||
Goodwill |
2,547,700 |
2,532,065 | ||
Notes receivable |
46,290 |
44,838 | ||
Intangible and other long-term assets, net |
492,737 |
510,406 | ||
Total assets |
$ 7,772,447 |
$ 7,802,886 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Current liabilities: |
||||
Accounts payable |
$ 216,173 |
$ 252,363 | ||
Accrued expenses |
328,789 |
346,490 | ||
Income taxes payable |
36,826 |
153,212 | ||
Current maturities of long-term debt |
20,000 |
20,000 | ||
Total current liabilities |
601,788 |
772,065 | ||
Deferred income taxes |
759,514 |
745,144 | ||
Decommissioning liabilities |
96,320 |
93,053 | ||
Long-term debt, net |
1,780,000 |
1,814,500 | ||
Other long-term liabilities |
169,309 |
147,045 | ||
Total stockholders' equity |
4,365,516 |
4,231,079 | ||
Total liabilities and stockholders' equity |
$ 7,772,447 |
$ 7,802,886 |
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES SEGMENT HIGHLIGHTS THREE MONTHS ENDED JUNE 30, 2013, MARCH 31, 2013, AND JUNE 30, 2012 (unaudited) (in thousands) | ||||||
Three months ended, | ||||||
Revenue |
June 30, 2013 |
March 31, 2013 |
June 30, 2012 | |||
Drilling Products and Services |
$ 205,422 |
$ 193,979 |
$ 198,150 | |||
Onshore Completion and Workover Services |
398,216 |
425,983 |
475,369 | |||
Production Services |
369,066 |
367,397 |
413,740 | |||
Subsea and Technical Solutions |
187,009 |
148,120 |
156,060 | |||
Total Revenues |
$ 1,159,713 |
$ 1,135,479 |
$ 1,243,319 | |||
Gross Profit (1) |
June 30, 2013 |
March 31, 2013 |
June 30, 2012 | |||
Drilling Products and Services |
$ 138,438 |
$ 129,334 |
$ 131,665 | |||
Onshore Completion and Workover Services |
136,159 |
144,244 |
172,191 | |||
Production Services |
116,742 |
114,342 |
168,822 | |||
Subsea and Technical Solutions |
56,491 |
40,072 |
59,357 | |||
Total Gross Profit |
$ 447,830 |
$ 427,992 |
$ 532,035 | |||
Income from Continuing Operations |
June 30, 2013 |
March 31, 2013 |
June 30, 2012 | |||
Drilling Products and Services |
$ 59,635 |
$ 56,597 |
$ 59,316 | |||
Onshore Completion and Workover Services |
46,809 |
49,708 |
84,984 | |||
Production Services |
20,845 |
28,347 |
79,435 | |||
Subsea and Technical Solutions |
8,587 |
(6,458) |
15,265 | |||
Total Income from Continuing Operations |
$ 135,876 |
$ 128,194 |
$ 239,000 |
(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. |
SOURCE