Superior Energy Services Announces Second Quarter Results, Posts Another Record Quarter
HARVEY, La.--(BUSINESS WIRE)--Aug. 2, 2001--Superior Energy Services, Inc. (NYSE:SPN) today announced results for the second quarter ended June 30, 2001. For the period, revenues were a record $109.6 million resulting in record net income of $14.3 million or $0.21 diluted earnings per share, as compared to revenue of $57.6 million and net income of $3.8 million or $0.06 diluted earnings per share for the second quarter of 2000. On a sequential basis, revenue increased 20% and EBITDA increased 30%.
Well Intervention Group Segment (including mechanical wireline)
Revenue for Superior's Well Intervention Group was $41.6 million, 30% higher than the preceding quarter. Demand increased for coiled tubing, pumping and stimulation, hydraulic drilling and workover services. Demand for coiled tubing was particularly strong in the south and east Texas market areas. In May, Superior added 21 coiled tubing units from the Reeled Tubing acquisition, giving Superior 36 coiled tubing units in the Gulf of Mexico and along the Gulf Coast - more than any other service company in those market areas. Additionally, mechanical wireline revenue increased 12% and the gross margin increased over the prior quarter as a result of higher activity and additional higher margin projects.
Rental Tools Segment
Revenue for the Rental Tools segment was $29.1 million, a 7% increase over the first quarter. The segment was driven by increased rentals of stabilizers, drill pipe and accessories, gravel packs, high-pressure connecting iron and on-site accommodations. International rentals comprised 6% of this segment's revenue, up from 4% in the first quarter, as the Company continues to expand its Canadian and South American operations with rentals of stabilizers and high-pressure connecting iron.
Marine Segment
Superior's marine revenue increased 42% over the preceding quarter to $18.5 million as dayrates and utilization for most liftboat classes moved higher. The fleet's average dayrate increased 16% and utilization improved to 83% from 81% in the first quarter. The Company also benefited from eight additional liftboats added in May through the Power Offshore acquisition, including a 250-ft. class liftboat that generated a $28,000 dayrate since it was acquired.
Liftboat Average Dayrates and Utilization by Class Size Three Months Ended June 30, 2001 ($ actual) Class Average Dayrate Utilization -------- --------------- ----------- 105' $ 3,191 73.1% 120-135' 3,578 92.2% 145-155' 5,679 78.0% 160' 8,412 82.3% 170' 8,999 100.0% 200' 11,715 92.9% 250' 28,000 100.0%
Note: | Utilization for Power Offshore liftboats reflects 39 possible |
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days of activity - from the date of the acquisition -- during the | |
quarter. |
Field Management Segment
Field Management revenue was $14.4 million, a 10% increase over the first quarter. This segment experienced increased activity for offshore construction and fabrication services as well as higher demand for supplemental labor.
Environmental and Other Segment
Revenue from this segment increased 5% to $6.0 million over the prior quarter driven mainly by increased offshore tank and vessel services, the highest gross margin business for the environmental segment.
President and CEO Terry Hall Comments
President and CEO Terry Hall commented, "I am extremely pleased with the results of the second quarter. By any measure, it was an excellent period for Superior as the Company again established records for revenue and profits. The acquisitions we made bolstered strong performances in our core coiled tubing and marine businesses. The Company also experienced strong internal growth, particularly in the Well Intervention Group and Marine Segment.
We believe our strategy to operate primarily in the production-services arena should result in strong demand for the remainder of the year. We believe current commodity prices still support well intervention, maintenance and remediation projects. Our balance sheet provides us the capacity to capitalize on opportunities and the flexibility to manage through changing market conditions."
The Company will host a conference call at 10 a.m. Central Time today. The call can be accessed from Superior's website at www.superiorenergy.com, or by telephone at 800/763-5557. The replay telephone number is 800/642-1687 and the passcode for the replay call is 1472038.
Superior Energy Services, Inc. provides a broad range of specialized oilfield services and equipment primarily to major and independent oil and gas companies engaged in the exploration, production and development of oil and natural gas properties offshore in the Gulf of Mexico and throughout the Gulf Coast region. These services and equipment include the rental of liftboats, rental of specialized oilfield equipment, electric and mechanical wireline services, well plug and abandonment services, coiled tubing services and engineering services. Additional services provided include contract operating and supplemental labor, offshore construction and maintenance services, offshore and dockside environmental cleaning services, the manufacture and sale of drilling instrumentation and the manufacture and sale of oil spill containment equipment.
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 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 Securities and Exchange Commission. Actual events, circumstances, effects and results may be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Consequently, the forward-looking statements contained herein should not be regarded as representations by Superior or any other person that the projected outcomes can or will be achieved.
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidated Statements of Operations Three and Six Months Ended June 30, 2001 and 2000 (in thousands, except earnings per share amounts) (unaudited) Three Months Ended Six Months Ended June 30, June 30, -------------------- -------------------- 2001 2000 2001 2000 --------- --------- --------- --------- Revenues $ 109,639 $ 57,592 $ 200,895 $ 104,866 --------- --------- --------- --------- Costs and expenses: Cost of services 55,719 33,931 104,037 61,693 Depreciation and amortization 8,129 4,935 14,898 9,672 General and administrative 17,108 9,673 31,726 18,984 --------- --------- --------- --------- Total costs and expenses 80,956 48,539 150,661 90,349 --------- --------- --------- --------- Income from operations 28,683 9,053 50,234 14,517 Other income (expense): Interest expense (4,976) (3,068) (8,546) (5,988) Interest income 592 641 1,052 834 --------- --------- --------- --------- Income before income taxes and cumulative effect of change in accounting principle 24,299 6,626 42,740 9,363 Income taxes 9,963 2,783 17,524 3,932 --------- --------- --------- --------- Income before cumulative effect of change in accounting principle 14,336 3,843 25,216 5,431 Cumulative effect of change in accounting principle, net of income tax expense -- -- 2,589 -- --------- --------- --------- --------- Net income $ 14,336 $ 3,843 $ 27,805 $ 5,431 ========= ========= ========= ========= Basic earnings per share: Earnings before cumulative effect of change in accounting principle $ 0.21 $ 0.06 $ 0.37 $ 0.09 Cumulative change in accounting principle -- -- 0.04 -- --------- --------- --------- --------- Earnings per share $ 0.21 $ 0.06 $ 0.41 $ 0.09 ========= ========= ========= ========= Diluted earnings per share: Earnings before cumulative effect of change in accounting principle $ 0.21 $ 0.06 $ 0.36 $ 0.09 Cumulative change in accounting principle -- -- 0.04 -- --------- --------- --------- --------- Earnings per share $ 0.21 $ 0.06 $ 0.40 $ 0.09 ========= ========= ========= ========= Weighted average common shares used in computing earnings per share: Basic 68,287 64,643 68,126 62,250 ========= ========= ========= ========= Diluted 69,199 65,205 69,037 62,404 ========= ========= ========= ========= Condensed Consolidated Balance Sheets June 30, 2001 and December 31, 2000 (in thousands) 6/30/2001 12/31/2000 (unaudited) (audited) --------- --------- ASSETS Current assets $ 122,170 $ 88,770 Property, plant and equipment - net 305,559 202,498 Goodwill - net 124,320 114,650 Note receivable 21,228 19,213 Other assets - net 10,264 5,545 ---------- --------- Total assets $ 583,541 $ 430,676 ========== ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 62,217 $ 53,732 Long-term debt, less current portion 254,630 146,393 Deferred income taxes 29,180 24,304 Stockholders' equity 237,514 206,247 ---------- --------- Total liabilities and stockholders' equity $ 583,541 $ 430,676 ========= ========= Superior Energy Services, Inc. Segment Highlights Three months ended June 30, 2001 and 2000, and March 31, 2001 (Unaudited) ($ in thousands) Revenue June 2001 March 2001 June 2000 --------- ---------- --------- Well Intervention Group $41,604 $32,066 $20,499 Marine 18,483 13,007 7,792 Rental Tools 29,141 27,339 15,370 Field Management 14,433 13,124 8,733 Environmental & Other 5,978 5,720 5,198 --------- ---------- --------- Total $ 109,639 $ 91,256 $57,592 Gross Profit Well Intervention Group $20,002 $14,012 $6,748 Marine 10,600 6,857 3,298 Rental Tools 18,580 17,577 10,398 Field Management 1,892 1,920 1,030 Environmental & Other 2,846 2,572 2,187 --------- ---------- --------- Total $ 53,920 $ 42,938 $23,661
CONTACT: | Superior Energy Services, Inc., Harvey |
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Terence Hall, Robert Taylor or Greg Rosenstein | |
504/362-4321 | |