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):   April 29, 2004

 

 

SUPERIOR ENERGY SERVICES, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware (State or other jurisdiction)

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)

 

 

 

---

 

Item 5.     Other Events and Regulation FD Disclosure.

            On April 29, 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 April 29, 2004, announcing results for the first quarter ended March 31, 2004.

 

 

---

 

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: April 29, 2004

Exhibit 99

1105 Peters Road Harvey, Lousiana 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 First Quarter 2004 Results

(Harvey, La., Thursday, April 29, 2004) Superior Energy Services, Inc. (NYSE: SPN) today announced results for the first quarter ended March 31, 2004. For the quarter, revenues were $116.5 million resulting in net income of $3.6 million or $0.05 diluted earnings per share, as compared to revenues of $123.2 million and net income of $7.5 million or $0.10 diluted earnings per share for the first quarter of 2003.

 

 

President and CEO Terry Hall Comments

President and CEO Terry Hall commented, "Gulf of Mexico activity levels through much of the first quarter remained weak before bottoming in late February. In March, however, we benefited significantly from employing our bundled services concept to abandon wells owned by SPN Resources and from an improving production-related services market. Our average liftboat utilization rebounded in March to its highest level since this past October, with utilization of more than 70% for the month. Also, in rental tools, we again set a quarterly record for revenue as deepwater projects and increased land drilling drove demand for drill pipe and stabilizers.

"Clearly, we are entering the second quarter on much stronger footing than we experienced for most of the first quarter. Well intervention activity and tool rentals are higher in April as compared to March. Although the liftboat market still remains highly competitive, we are experiencing longer-term projects for some of our liftboats, which should help utilization in certain classes."

 

 

Well Intervention Group Segment

 

First quarter revenues for the Well Intervention Group were $44.3 million, an 11% decrease from the fourth quarter of 2003. On a sequential basis, activity decreased for most production-related services, with the exception of mechanical wireline services, which benefited from several high pressure projects.

 

 

Rental Tools Segment

 

Revenues for the Rental Tools segment were a record $38.7 million, 11% higher than the fourth quarter of 2003, and 6% higher than the prior record of $36.4 million established in the second quarter of 2003. Rentals of stabilizers, drill pipe and accessories to customers in the U.S. land and Gulf of Mexico deepwater markets steadily increased throughout the quarter. The company rented its first drill pipe and handling tools in the West Africa market area. In addition, demand increased for rentals and services associated with refinery and plant projects, including bolting, torque services and on-site machining.

 

 

Marine Segment

 

Superior’s marine revenues were $13.6 million, a 15% decrease as compared to the fourth quarter of 2003. Average fleet utilization was 64% as compared to 66% for the fourth quarter of 2003. Liftboat utilization showed improvement beginning in mid-February and increased for the remainder of the quarter. Average liftboat dayrates decreased approximately 5% as compared to the fourth quarter of 2003.

 

 

Liftboat Average Dayrates and Utilization by Class Size

Three Months Ended March 31, 2004

($ actual)

 

 

Class		Liftboats		Average Dayrate		Utilization
105’		6		$2,708		49.8%
120-135’		8		3,384		67.0%
145-155’		11		4,190		67.8%
160’-175’		6		5,739		61.9%
200’		2		8,957		60.4%
230’-245’		3		11,318		72.8%
250'		2		16,105		78.0%

 

Other Oilfield Services Segment

 

Revenues in this segment were $19.9 million, a 3% increase as compared to the fourth quarter of 2003. The sequential improvement was due primarily to increased activity for waste disposal, dockside cleaning and other environmental services.

The Company will host a conference call at 10 a.m. Central Time on Friday, April 30. 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 6854774. The replay is available beginning two hours after the call and ending May 7, 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 Months Ended March 31, 2004 and 2003

(in thousands, except earnings per share amounts)

(unaudited)

 

		2004				2003
Revenues		$	116,459			$	123,195
Costs and expenses:
	Cost of services		66,705				70,157
	Depreciation, depletion, amortization and accretion		14,774				11,755
	General and administrative		24,192				23,689
Total costs and expenses			105,671				105,601
Income from operations			10,788				17,594
Other Income (expenses)
	Interest expense		(5,550)				(5,603)
	Interest income		441				88
	Equity in income of affiliates		23				127
Income before taxes			5,702				12,206
Income taxes			2,138				4,669
Net income		$	3,564			$	7,507
Basic earnings per share		$	0.05			$	0.10
Diluted earnings per share		$	0.05			$	0.10
Weighted average common shares used
in computing earnings per share:
	Basic		74,213				73,826
	Diluted		74,961				74,595

 

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2004 AND DECEMBER 31, 2003

(in thousands)

 

			3/31/2004				12/31/2003
			(unaudited)				(Audited)
ASSETS
Current assets:
	Cash and cash equivalents	$	15,241			$	19,794
	Accounts receivable - net		118,473				112,775
	Notes receivable		16,143				19,212
	Prepaid insurance and other		15,066				14,059
Total current assets			164,923				165,840
Property, plant and equipment - net			435,395				427,360
Goodwill - net			208,926				204,727
Notes receivable			25,817				15,145
Investments in affiliates			13,246				13,224
Other assets - net			6,890				6,567
Total assets			855,197				832,863
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable	$	21,895				20,817
	Accrued expenses		49,131				48,949
	Income taxes payable		189				138
	Current portion of decommissioning liabilities		18,081				20,097
	Current maturities of long-term debt		14,210				14,210
Total current liabilities			103,506				104,211
Deferred income taxes			89,576				86,251
Decommissioning liabilities			32,463				18,756
Long-term debt			252,166				255,516
Total stockholders' equity			377,486				368,129
Total liabilities and stockholders' equity		$	855,197				832,863

 

 

 

 

Superior Energy Services, Inc. and Subsidiaries

Segment Highlights

Three months ended March 31, 2004 and 2003

(Unaudited)

(in thousands)

 

Revenue			March 2004		March 2003
Well Intervention Group			$44,258		$41,399
Marine			13,611		18,665
Rental Tools			38,732		34,600
Other Oilfield Services			19,858		28,531
Total			$116,459		$123,195
Gross Profit (1)
Well Intervention Group			$18,924		$16,645
Marine			1,982		5,998
Rental Tools			26,119		23,486
Other Oilfield Services			2,729		6,909
Total			$49,754		$53,038

 

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