UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

Date of Report (Date of earliest event reported):   March 4, 2004

 

 

SUPERIOR ENERGY SERVICES, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware (State or other jurisdiction of incorporation)

0-20310 (Commission File Number)

75-2379388 (IRS Employer Identification No.)

 

 

 

1105 Peters Road, Harvey, Louisiana (Address of principal executive offices)

70058 (Zip Code)

 

 

 

 

 

(504) 362-4321

(Registrant's telephone number, including area code)

 

 

 

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Item 5.     Other Events and Regulation FD Disclosure.

            On March 4, 2004, Superior Energy Services, Inc. issued the press release attached hereto as Exhibit 99.

Item 7.    Financial Statements and Exhibits.

            (c)    Exhibits.

99

Press release issued by Superior Energy Services, Inc. on March 4, 2004, announcing results for the fourth quarter ended December 31, 2003.

 

 

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SIGNATURES

            Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	SUPERIOR ENERGY SERVICES, INC.
	By:	/s/ Robert S. Taylor
		Robert S. Taylor
		Chief Financial Officer

 

Dated:     March 4, 2004

Exhibit 99

1105 Peters Road
Harvey, Louisiana  70058
(504) 362-4321
Fax (504) 362-4966
NYSE:  SPN

FOR IMMEDIATE RELEASE	FOR FURTHER INFORMATION CONTACT:
	Terence Hall, CEO; Robert Taylor, CFO;
	Greg Rosenstein, VP of Investor Relations, 504-362-4321

Superior Energy Services, Inc. Announces Fourth Quarter 2003 Results

41:

(Harvey, La., Thursday, March 4, 2004) Superior Energy Services, Inc. (NYSE:SPN) today announced results for the fourth quarter ended December 31, 2003. For the quarter, revenues were $120.3 million resulting in net income of $5.9 million or $0.08 diluted earnings per share, as compared to revenues of $118.4 million and net income of $5.6 million or $0.08 diluted earnings per share for the fourth quarter of 2002.

For the year ended December 31, 2003, revenues were a record $500.6 million and net income was $30.5 million or $0.41 diluted earnings per share, as compared to revenues of $443.1 million and net income of $21.9 million or $0.30 diluted earnings per share for the year ended December 31, 2002.

President and CEO Terry Hall Comments

President and CEO Terry Hall commented, "During the fourth quarter, well intervention and liftboat activity in our core Gulf of Mexico market remained solid until late November, at which time activity slowed dramatically and did not pick up for the rest of the year. In our rental tool segment, rentals were down from the third quarter as the Gulf of Mexico rig count remained at low levels. Despite only modest increases in Gulf of Mexico activity, Superior was able to post a record year in terms of revenue, and generate cash that was more than sufficient to service debt and maintain the company's capital expenditure budget.

"While visibility for 2004 is still unclear, we are encouraged by the ability to put assets to work on our own properties through SPN Resources, which allows us to deploy production-related services and liftboats to enhance our own production. We believe we are gaining momentum in this business as evidenced by our ability to close on multiple transactions since December 2003. This will help us keep well intervention and liftboat assets working when demand from our traditional customer base slows. As a result, our growth will be driven to a large extent by Gulf of Mexico activity levels, our growing international business and our backlog of work as a result of properties owned and operated by SPN Resources."

Well Intervention Group Segment

Fourth quarter revenues for the Well Intervention Group were $49.9 million, basically flat from the third quarter of 2003. Activity increased in electric line, pumping and stimulation, hydraulic workover and well control services, offset by decreased activity in coiled tubing, well services and mechanical wireline.

Rental Tools Segment

Revenues for the Rental Tools segment were $35.0 million, basically flat as compared to the third quarter of 2003. Rentals of stabilizers and on-site accommodations increased, particularly on land in the Texas market. However, rentals of drill pipe, connecting iron and handling tools decreased as deepwater activity slowed toward year end.

Marine Segment

Superior's Marine Segment revenues were $16.0 million, a decrease of 8% as compared to the third quarter of 2003. Average fleet utilization was flat compared to the third quarter of 2003, and the average fleet dayrate was $5,993 in the fourth quarter as compared to $6,238 for the third quarter of 2003.
 

Liftboat Average Dayrates and Utilization by Class Size

Three Months Ended December 31, 2003

($ actual)

 

 

 

(a)   Does not include two 105-foot class liftboats and one 120-foot class liftboat that were stacked.

Other Oilfield Services Segment

Revenues in this segment were $19.4 million, a 24% decrease as compared to the third quarter of 2003 due primarily to the third quarter sale of the company's construction assets and a decrease in environmental services and field management. The sale of the construction assets in the third quarter accounted for 85% of the decrease in revenues for the oilfield services segment.

The Company will host a conference call at 10:30 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 replay passcode is 5468139. The replay is available beginning two hours after the call and ending March 11, 2004.

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, well control, hydraulic workover, coiled tubing services and engineering services. Additional services provided include contract operating and supplemental labor, 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 Twelve Months Ended December 31, 2003 and 2002

(in thousands, except earnings per share amounts)

(unaudited)

 

		Three Months Ended				Twelve Months Ended
		December 31,				December 31,
		2003		2002		2003		2002
Revenues		$    120,257		$      118,378		$  500,625		$  443,147
Costs and expenses:
Cost of services		69,710		69,820		289,607		258,334
Depreciation and amortization		12,852		11,322		48,853		41,595
General and administrative		23,249		22,279		94,822		86,197
Total costs and expenses		105,811		103,421		433,282		386,126
Income from operations		14,446		14,957		67,343		57,021
Other income (expense):
Interest expense		(5,673)		(5,597)		(22,477)		(21,884)
Interest income		98		100		209		530
Other income		-		-		2,762		-
Equity in income (loss) of affiliates		493		(338)		985		(80)
Income before income taxes		9,364		9,122		48,822		35,587
Income taxes		3,511		3,512		18,308		13,701
Net income		$        5,853		$          5,610		$    30,514		$    21,886
Basic earnings per share		$          0.08		$            0.08		$        0.41		$        0.30
Diluted earnings per share		$          0.08		$            0.08		$        0.41		$        0.30
Weighted average common shares used
in computing earnings per share:
Basic		74,079		73,784		73,970		72,912
Diluted		74,759		74,480		74,648		73,872

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2003 AND DECEMBER 31, 2002

(in thousands)

 

		12/31/2003		12/31/2002
		(Unaudited)		(Audited)
ASSETS
Current assets:
Cash and cash equivalents		$        19,794		$         3,480
Accounts receivable - net		112,775		108,352
Income taxes receivable		-		6,087
Notes receivable		19,212		-
Prepaid insurance and other		14,059		11,663
Total current assets		165,840		129,582
Property, plant and equipment - net		427,360		418,047
Goodwill - net		204,727		160,366
Notes receivable		15,145		-
Investments in affiliates		13,224		12,343
Other assets - net		6,567		7,282
Total assets		$      832,863		$     727,620
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$        20,817		$       21,010
Accrued expenses		48,949		33,871
Income taxes payable		138		-
Decommissioning liabilities		20,097		-
Current maturities of long-term debt		14,210		13,730
Total current liabilities		104,211		68,611
Deferred income taxes		86,251		67,333
Decommissioning liabilities		18,756		-
Long-term debt		255,516		256,334
Total stockholders' equity		368,129		335,342
Total liabilities and stockholders' equity		$      832,863		$     727,620

 

Superior Energy Services, Inc. and Subsidiaries

Segment Highlights

Three months ended December 31, 2003 and 2002

(Unaudited)

(in thousands)

  

Revenue	December 2003		December 2002
Well Intervention Group	$49,933		$36,081
Marine	15,958		21,212
Rental Tools	35,015		33,409
Other Oilfield Services	19,351		27,676
Total	$120,257		$118,378
Gross Profit (1)
Well Intervention Group	$21,166		$12,096
Marine	3,420		8,530
Rental Tools	22,901		22,794
Other Oilfield Services	3,060		5,138
Total	$50,547		$48,558

 

(1)	Gross profit is calculated by subtracting cost of services from revenue for each of the Company's four segments.