Superior Energy Services, Inc. Announces First Quarter 2014 Results
These results compare with the first quarter of 2013 net income from continuing operations of
During 2014, the Company has repurchased and retired approximately 2.8 million shares of its common stock for a total purchase price of
"Overall, the quarter finished up strong and should serve as a foundation to achieve further growth as the year progresses, particularly in the U.S. land markets, driven by higher utilization across various products and services.
"We continue to focus on operational efficiency and returning cash to shareholders. We have repurchased about
First Quarter 2014 Geographic Breakdown
U.S. land market revenue was
Discontinued Operations
Discontinued operations include the Company's subsea construction and conventional decommissioning businesses. As a result, the Subsea and Technical Solutions segment has been renamed Technical Solutions.
Drilling Products and Services Segment
Drilling Products and Services segment revenue was
On a sequential basis, Gulf of
Onshore Completion and Workover Services Segment
Onshore Completion and Workover Services segment revenue in the first quarter was
On a sequential basis, revenue increased in fluid management services, which more than offset small declines in revenue from pressure pumping and well service rigs. The increase in fluid management revenue was primarily associated with increased demand for heating-related activity.
Production Services Segment
Production Services segment revenue was
U.S. land market revenue declined 6% sequentially to
Technical Solutions Segment
Technical Solutions segment revenue, which includes revenue from continuing operations only, was
Gulf of
Conference Call Information
The Company will host a conference call at
The press release contains certain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Generally, the words "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements involve risks and uncertainties. Such forward-looking statements are subject to uncertainties that could cause actual results to differ materially from such statements. Such uncertainties include, but are not limited to: risks inherent in acquiring businesses, the effect of regulatory programs and environmental matters on the Company's performance, including the risk that future changes in the regulation of hydraulic fracturing could reduce or eliminate demand for the Company's pressure pumping services; risks associated with business growth outpacing the capabilities of the Company's infrastructure and workforce; risks associated with the uncertainty of macroeconomic and business conditions worldwide; 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; changes in competitive factors affecting the Company's operations; political, economic and other risks and uncertainties associated with international operations; the impact that unfavorable or unusual weather conditions could have on the Company's operations; the potential shortage of skilled workers; the Company's dependence on certain customers; the risks inherent in long-term fixed-price contracts; and, operating hazards, including the significant possibility of accidents resulting in personal injury or death, property damage or environmental damage. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, the Company can give no assurance that such expectations will prove to be correct. Investors are cautioned that many of the assumptions on which the Company's forward-looking statements are based are likely to change after the forward-looking statements are made, including for example the market prices of oil and natural gas and regulations affecting oil and gas operations, which the Company cannot control or anticipate. Further, the Company may make changes to its business plans that could or will affect the Company's results. The Company undertakes no obligation to update any of its forward-looking statements and it does not intend to update its forward-looking statements more frequently than quarterly, notwithstanding any changes in the assumptions, changes in the Company's business plans, our actual experience, or other changes.
FOR FURTHER INFORMATION CONTACT:
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES |
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Consolidated Statements of Operations |
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Three Months Ended March 31, 2014 and 2013 |
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(in thousands, except earnings per share amounts) |
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(unaudited) |
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Three Months Ended |
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March 31, |
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2014 |
2013 |
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Revenues |
$ 1,061,418 |
$ 1,086,872 |
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Cost of services (exclusive of items shown separately below) |
651,605 |
651,594 |
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Depreciation, depletion, amortization and accretion |
162,318 |
144,964 |
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General and administrative expenses |
155,919 |
145,896 |
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Income from operations |
91,576 |
144,418 |
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Other income (expense): |
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Interest expense, net |
(23,881) |
(28,261) |
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Other income (expense) |
(35) |
4,575 |
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Income from continuing operations before income taxes |
67,660 |
120,732 |
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Income taxes |
25,034 |
40,114 |
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Net income from continuing operations |
42,626 |
80,618 |
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Loss from discontinued operations, net of income tax |
(5,954) |
(16,891) |
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Net income |
$ 36,672 |
$ 63,727 |
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Basic earnings (losses) per share: |
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Net income from continuing operations |
$ 0.27 |
$ 0.51 |
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Loss from discontinued operations |
(0.04) |
(0.11) |
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Net income |
$ 0.23 |
$ 0.40 |
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Diluted earnings (losses) per share: |
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Net income from continuing operations |
$ 0.27 |
$ 0.51 |
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Loss from discontinued operations |
(0.04) |
(0.11) |
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Net income |
$ 0.23 |
$ 0.40 |
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Weighted average common shares used |
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in computing earnings per share: |
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Basic |
158,212 |
158,946 |
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Diluted |
160,912 |
160,433 |
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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MARCH 31, 2014 AND DECEMBER 31, 2013 |
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(in thousands) |
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3/31/2014 |
12/31/2013 |
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(Unaudited) |
(Audited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ 145,848 |
$ 196,047 |
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Accounts receivable, net |
906,235 |
937,195 |
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Deferred income taxes |
6,367 |
8,785 |
||
Income taxes receivable |
- |
5,532 |
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Prepaid expenses |
69,031 |
70,421 |
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Inventory and other current assets |
202,027 |
258,449 |
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Assets held for sale |
321,484 |
- |
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Total current assets |
1,650,992 |
1,476,429 |
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Property, plant and equipment, net |
2,779,345 |
3,002,194 |
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Goodwill |
2,458,409 |
2,458,109 |
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Notes receivable |
24,073 |
23,708 |
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Intangible and other long-term assets, net |
435,209 |
450,867 |
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Total assets |
$ 7,348,028 |
$ 7,411,307 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
$ 205,029 |
$ 216,029 |
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Accrued expenses |
310,282 |
376,049 |
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Income taxes payable |
3,034 |
- |
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Current portion of decommissioning liabilities |
27,322 |
27,322 |
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Current maturities of long-term debt |
20,000 |
20,000 |
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Liabilities held for sale |
84,453 |
- |
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Total current liabilities |
650,120 |
639,400 |
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Deferred income taxes |
734,842 |
736,080 |
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Decommissioning liabilities |
57,330 |
56,197 |
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Long-term debt, net |
1,641,242 |
1,646,535 |
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Other long-term liabilities |
168,816 |
201,651 |
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Total stockholders' equity |
4,095,678 |
4,131,444 |
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Total liabilities and stockholders' equity |
$ 7,348,028 |
$ 7,411,307 |
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES |
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SEGMENT HIGHLIGHTS |
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THREE MONTHS ENDED MARCH 31, 2014, DECEMBER 31, 2013, AND MARCH 31, 2013 (2) |
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(unaudited) |
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(in thousands) |
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Three months ended, |
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Revenue |
March 31, 2014 |
December 31, 2013 |
March 31, 2013 |
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Drilling Products and Services |
$ 220,210 |
$ 223,591 |
$ 193,979 |
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Onshore Completion and Workover Services |
389,877 |
374,489 |
425,983 |
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Production Services |
321,235 |
349,370 |
367,397 |
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Technical Solutions |
130,096 |
128,194 |
99,513 |
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Total Revenues |
$ 1,061,418 |
$ 1,075,644 |
$ 1,086,872 |
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Gross Profit (1) |
March 31, 2014 |
December 31, 2013 |
March 31, 2013 |
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Drilling Products and Services |
$ 153,058 |
$ 152,963 |
$ 129,334 |
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Onshore Completion and Workover Services |
105,642 |
110,467 |
144,244 |
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Production Services |
94,010 |
94,391 |
114,342 |
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Technical Solutions |
57,103 |
54,163 |
47,358 |
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Total Gross Profit |
$ 409,813 |
$ 411,984 |
$ 435,278 |
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Income (Loss) from Continuing Operations |
March 31, 2014 |
December 31, 2013 |
March 31, 2013 |
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Drilling Products and Services |
$ 66,881 |
$ 68,294 |
$ 56,194 |
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Onshore Completion and Workover Services |
6,070 |
(3,613) |
49,235 |
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Production Services |
5,014 |
(26,840) |
23,694 |
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Technical Solutions |
13,611 |
(246,550) |
15,296 |
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Total Income (Loss) from Continuing Operations |
$ 91,576 |
$ (208,709) |
$ 144,419 |
(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) |
Income (loss) from Continuing Operations for all prior periods has been adjusted for discontinued operations from the Technical Solutions segment. No portion of the goodwill impairment for the three months ended December 31, 2013 has been allocated to discontinued operations. |
SOURCE