Superior Energy Services Announces First Quarter 2015 Results
These results compare with net income from continuing operations of
"Oil and gas activity levels and pricing for our services declined at an exceptional pace throughout the first quarter of 2015," commented
"Our U.S. customers initiated a series of budget reductions, beginning in December, and continuing during the first quarter in response to their reduced cash flow. We expect that, as activity levels begin to stabilize, we will have the opportunity to further adjust our cost base and improve our competitive position in the available market. Our focus is on retaining our operational presence with our customer base, aggressively managing our costs, and delivering high quality operational execution, with the understanding that it may be quite some time before oil and gas activity returns to 2014 levels.
"We expect that our commitment to geographic expansion, combined with our strong balance sheet, will ensure that we have significant operating leverage when this cycle reverses and allow us to emerge from this downturn in a stronger competitive position. We will continue to adjust our cost structure to reflect current activity levels and also be selective in evaluating opportunities to expand our service offerings through acquisition."
First Quarter 2015 Geographic Breakdown
U.S. land revenue was
Drilling Products and Services Segment
Drilling Products and Services segment revenue in the first quarter of 2015 was
U.S. land revenue decreased 29% sequentially to
Onshore Completion and Workover Services Segment
Onshore Completion and Workover Services revenue was
Production Services Segment
Production Services segment revenue was
U.S. land revenue decreased 35% sequentially during the quarter to
Technical Solutions Segment
Technical Solutions revenue in the first quarter of 2015 was
U.S. land revenue decreased 25% sequentially to
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" and "estimates," variations of such words and similar expressions identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact regarding the Company's financial position, financial performance, liquidity, strategic alternatives, market outlook, future capital needs, capital allocation plans, business strategies and other plans and objectives of the Company's management for future operations and activities are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company's management in light of its experience and prevailing circumstances on the date such statements are made. Such forward-looking statements, and the assumptions on which they are based, are inherently speculative and are subject to a number of risks and uncertainties that could cause the Company's actual results to differ materially from such statements. Such uncertainties include, but are not limited to: the cyclicality and volatility of the oil and gas industry, including changes in prevailing levels of exploration, production and development activity; changes in prevailing oil and gas prices or expectations about future prices; operating hazards, including the significant possibility of accidents resulting in personal injury or death, property damage or environmental damage for which the Company may have limited or no insurance coverage or indemnification rights; the effect of regulatory programs and environmental matters on the Company's operations or prospects, 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 the uncertainty of macroeconomic and business conditions worldwide; changes in competitive and technological factors affecting the Company's operations; the potential shortage of skilled workers; risks inherent in acquiring businesses; risks associated with business growth outpacing the capabilities of the Company's infrastructure and workforce; political, economic and other risks and uncertainties associated with the Company's international operations; the Company's continued access to credit markets on favorable terms; the impact that unfavorable or unusual weather conditions could have on the Company's operations; the risks inherent in long-term fixed-price contracts; and other risks disclosed in our periodic reports filed with the
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES |
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Consolidated Statements of Operations |
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Three Months Ended March 31, 2015 and 2014 |
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(in thousands, except earnings per share amounts) |
|||||
(unaudited) |
|||||
Three Months Ended |
|||||
March 31, |
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2015 |
2014 |
||||
Revenues |
$ 917,235 |
$ 1,061,418 |
|||
Cost of services and rentals (exclusive of items shown separately below) |
582,246 |
651,605 |
|||
Depreciation, depletion, amortization and accretion |
162,220 |
162,318 |
|||
General and administrative expenses |
150,962 |
155,919 |
|||
Income from operations |
21,807 |
91,576 |
|||
Other income (expense): |
|||||
Interest expense, net |
(23,209) |
(23,881) |
|||
Other income (expense) |
(971) |
(35) |
|||
Income (loss) from continuing operations before income taxes |
(2,373) |
67,660 |
|||
Income taxes |
(878) |
25,034 |
|||
Net income (loss) from continuing operations |
(1,495) |
42,626 |
|||
Loss from discontinued operations, net of income tax |
(9,640) |
(5,954) |
|||
Net income (loss) |
$ (11,135) |
$ 36,672 |
|||
Basic earnings (losses) per share: |
|||||
Net income (loss) from continuing operations |
$ (0.01) |
$ 0.27 |
|||
Loss from discontinued operations |
(0.06) |
(0.04) |
|||
Net income (loss) |
$ (0.07) |
$ 0.23 |
|||
Diluted earnings (losses) per share: |
|||||
Net income (loss) from continuing operations |
$ (0.01) |
$ 0.27 |
|||
Loss from discontinued operations |
(0.06) |
(0.04) |
|||
Net income (loss) |
$ (0.07) |
$ 0.23 |
|||
Weighted average common shares used in computing earnings per share: |
|||||
Basic |
149,881 |
158,212 |
|||
Diluted |
149,881 |
160,912 |
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
||||
March 31, 2015 and December 31, 2014 |
||||
(in thousands) |
||||
3/31/2015 |
12/31/2014 |
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ASSETS |
(unaudited) |
(audited) |
||
Current assets: |
||||
Cash and cash equivalents |
$ 414,829 |
$ 393,046 |
||
Accounts receivable, net |
770,846 |
926,768 |
||
Deferred income taxes |
25,064 |
32,138 |
||
Prepaid expenses |
69,772 |
74,750 |
||
Inventory and other current assets |
203,412 |
185,429 |
||
Assets held for sale |
144,905 |
116,680 |
||
Total current assets |
1,628,828 |
1,728,811 |
||
Property, plant and equipment, net |
2,690,491 |
2,733,839 |
||
Goodwill |
2,465,646 |
2,468,409 |
||
Notes receivable |
26,387 |
25,970 |
||
Intangible and other long-term assets, net |
411,806 |
420,360 |
||
Total assets |
$ 7,223,158 |
$ 7,377,389 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Current liabilities: |
||||
Accounts payable |
$ 212,609 |
$ 225,306 |
||
Accrued expenses |
337,273 |
363,747 |
||
Income taxes payable |
8,723 |
40,213 |
||
Current maturities of long-term debt |
21,533 |
20,941 |
||
Liabilities held for sale |
17,999 |
61,840 |
||
Total current liabilities |
598,137 |
712,047 |
||
Deferred income taxes |
693,123 |
702,996 |
||
Decommissioning liabilities |
91,485 |
88,000 |
||
Long-term debt, net |
1,622,713 |
1,627,842 |
||
Other long-term liabilities |
163,396 |
166,766 |
||
Total stockholders' equity |
4,054,304 |
4,079,738 |
||
Total liabilities and stockholders' equity |
$ 7,223,158 |
$ 7,377,389 |
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES |
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SEGMENT HIGHLIGHTS |
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THREE MONTHS ENDED MARCH 31, 2015, DECEMBER 31, 2014, AND MARCH 31, 2014 |
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(unaudited) |
||||||
(in thousands) |
||||||
Three months ended, |
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Revenue |
March 31, 2015 |
December 31, 2014 |
March 31, 2014 |
|||
Drilling Products and Services |
$ 199,459 |
$ 238,453 |
$ 220,210 |
|||
Onshore Completion and Workover Services |
350,992 |
469,130 |
389,877 |
|||
Production Services |
251,469 |
342,153 |
321,235 |
|||
Technical Solutions |
115,315 |
128,890 |
130,096 |
|||
Total Revenues |
$ 917,235 |
$ 1,178,626 |
$ 1,061,418 |
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Income (Loss) from Operations |
March 31, 2015 |
December 31, 2014 |
March 31, 2014 |
|||
Drilling Products and Services |
$ 47,164 |
$ 78,138 |
$ 66,881 |
|||
Onshore Completion and Workover Services |
(1,226) |
41,003 |
6,070 |
|||
Production Services |
(22,687) |
9,818 |
5,014 |
|||
Technical Solutions |
(1,444) |
14,307 |
13,611 |
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Total Income from Operations |
$ 21,807 |
$ 143,266 |
$ 91,576 |
FOR FURTHER INFORMATION CONTACT:
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