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spn-20210630x10q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



	FORM 10-Q

(Mark One)

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from to

Commission File No. 001-34037

Commission Company Name: SUPERIOR ENERGY SERVICES INC

SUPERIOR ENERGY SERVICES, INC.

(Exact name of registrant as specified in its charter)


	Delaware		75-2379388
	(State or other jurisdiction of		(I.R.S. Employer
	incorporation or organization)		Identification No.)

	1001 Louisiana Street, Suite 2900		77002
	Houston, TX		(Zip Code)
	(Address of principal executive offices)

Registrant’s telephone number, including area code: (713) 654-2200

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
None	N/A	None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ¨ No x

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated filer ¨		Accelerated filer ¨
Non-accelerated filer x		Smaller reporting company ¨
		Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ¨ No x

The number of shares of the registrant’s Class A common stock outstanding on October 28, 2021 was 19,998,695.

The number of shares of the registrant’s Class B common stock outstanding on October 28, 2021 was 76,269.

‎

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

Quarterly Report on Form 10-Q for

the Quarterly Period Ended June 30, 2021

TABLE OF CONTENTS



		Page
PART I.	FINANCIAL INFORMATION

Item 1.	Unaudited Condensed Consolidated Financial Statements and Notes
	Unaudited Condensed Consolidated Balance Sheets	3
	Unaudited Condensed Consolidated Statements of Operations	4
	Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)	6
	Unaudited Condensed Consolidated Statements of Cash Flows	7
	Unaudited Consolidated Statements of Changes in Stockholders' Equity (Deficit)	8
	Notes to Unaudited Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	46
Item 4.	Controls and Procedures	46

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities	48
Item 6.	Exhibits	49

SIGNATURES		50

‎

PART I. FINANCIAL INFORMATION

Item 1. Unaudited Condensed Consolidated Financial Statements and Notes


SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share data)
(unaudited)
	Successor		Predecessor
ASSETS	June 30, 2021		December 31, 2020
Current assets:
Cash and cash equivalents	$	205,748	$	188,006
Accounts receivable, net of allowance for doubtful accounts of $515 and $24,629 at ‎June 30, 2021 and December 31, 2020, respectively		171,480		158,516
Income taxes receivable		-		8,891
Prepaid expenses		34,540		31,793
Inventory		86,064		77,027
Other current assets		7,762		9,171
Assets held for sale		170,194		242,104
Total current assets		675,788		715,508

Property, plant and equipment, net		455,079		408,107
Operating lease right-of-use assets		30,755		33,317
Goodwill		-		138,677
Notes receivable		74,370		72,129
Restricted cash		80,159		80,179
Intangible and other long-term assets, net		24,436		53,162
Total assets	$	1,340,587	$	1,501,079

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	60,735	$	50,330
Accrued expenses		115,069		114,777
Income taxes payable		4,829		-
Liabilities held for sale		35,730		46,376
Total current liabilities		216,363		211,483
Decommissioning liabilities		171,744		134,436
Operating lease liabilities		21,353		29,464
Deferred income taxes		43,227		5,288
Other long-term liabilities		72,758		123,261
Total non-current liabilities		309,082		292,449
Liabilities Subject to Compromise		-		1,335,794
Total liabilities		525,445		1,839,726

Stockholders’ equity (deficit):
Predecessor common stock $0.001 par value; Authorized - 25,000,000, Issued - 15,799,318, Outstanding - 14,826,906 at December 31, 2020		-		16
Successor Class A common stock $0.01 par value; Authorized - 50,000,000 shares 19,998,695 shares issued and outstanding at June 30, 2021		200		-
Successor Class B common stock $0.01 par value; Authorized - 2,000,000 shares 113,840 shares issued and 76,269 shares outstanding at June 30, 2021		1		-
Class A Additional paid-in capital		902,486		2,756,889
Class B Additional paid-in capital		84		-
Predecessor Treasury stock at cost, 972,412 shares at December 31, 2020		-		(4,290)
Accumulated other comprehensive loss, net		-		(67,947)
Accumulated deficit		(87,629)		(3,023,315)
Total stockholders’ equity (deficit)		815,142		(338,647)
Total liabilities and stockholders’ equity (deficit)	$	1,340,587	$	1,501,079

See accompanying notes to unaudited condensed consolidated financial statements.



SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)

	Successor		Predecessor
	For the Three Months Ended June 30, 2021		For the Three Months Ended June 30, 2020
Revenues:
Services	$	79,787	$	59,919
Rentals		53,238		51,758
Product sales		32,867		39,905
Total revenues		165,892		151,582
Costs and expenses:
Cost of services		54,176		47,685
Cost of rentals		24,750		19,307
Cost of sales		24,653		26,434
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		103,579		93,426
Depreciation, depletion, amortization and accretion - services		28,384		11,483
Depreciation, depletion, amortization and accretion - rentals		18,940		9,761
Depreciation, depletion, amortization and accretion - sales		11,694		7,464
General and administrative expenses		32,308		55,528
Restructuring and other expense		7,438		-
Loss from operations		(36,451)		(26,080)

Other income (expense):
Interest income (expense), net		535		(24,757)
Other income:		2,570		821
Loss from continuing operations before income taxes		(33,346)		(50,016)
Income tax (expense) benefit		1,747		4,324
Net loss from continuing operations		(31,599)		(45,692)
Loss from discontinued operations, net of income tax		(19,400)		(19,414)
Net loss	$	(50,999)	$	(65,106)

Loss per share -basic and diluted
Loss from continuing operations	$	(1.58)	$	(3.08)
Loss from discontinued operations, net of income tax		(0.97)		(1.31)
Net loss	$	(2.55)	$	(4.39)

Weighted-average shares outstanding - basic and diluted		19,999		14,826

See accompanying notes to condensed consolidated financial statements.



SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)

	Successor		Predecessor
	For the Period February 3, 2021 through June 30, 2021		For the Period January 1, 2021 through February 2, 2021		For the Six Months Ended June 30, 2020

Revenues:
Services	$	123,466	$	19,234	$	163,722
Rentals		84,552		14,434		141,085
Product sales		63,717		12,260		81,014
Total revenues		271,735		45,928		385,821
Costs and expenses:
Cost of services		95,478		15,080		122,867
Cost of rentals		34,949		5,876		50,234
Cost of sales		41,020		8,817		57,838
Cost of revenues (exclusive of depreciation, depletion, amortization and accretion)		171,447		29,773		230,939
Depreciation, depletion, amortization and accretion - services		44,748		3,500		25,831
Depreciation, depletion, amortization and accretion - rentals		30,841		2,627		22,266
Depreciation, depletion, amortization and accretion - sales		23,459		2,231		12,792
General and administrative expenses		50,746		11,052		114,804
Restructuring and other expenses		15,821		1,270		-
Reduction in value of assets		-		-		16,522
Loss from operations		(65,327)		(4,525)		(37,333)

Other income (expense):
Interest income (expense), net		747		202		(49,898)
Reorganization items, net		-		335,560		-
Other expense		(275)		(2,105)		(3,411)
Income (loss) from continuing operations before income taxes		(64,855)		329,132		(90,642)
Income tax (expense) benefit		6,032		(60,003)		14,160
Net income (loss) from continuing operations		(58,823)		269,129		(76,482)
Loss from discontinued operations, net of income tax		(28,806)		(352)		(68,088)
Net income (loss)	$	(87,629)	$	268,777	$	(144,570)

Income (loss) per share -basic
Net income (loss) from continuing operations	$	(2.94)	$	18.13	$	(5.18)
Loss from discontinued operations, net of income tax		(1.44)		(0.02)		(4.61)
Net income (loss)	$	(4.38)	$	18.11	$	(9.79)

Income (loss) per share - diluted:
Net income (loss) from continuing operations	$	(2.94)	$	18.05	$	(5.18)
Loss from discontinued operations, net of income tax		(1.44)		(0.02