8-K
NONE0000886835false00008868352022-05-042022-05-04

 

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): May 04, 2022

 

 

SUPERIOR ENERGY SERVICES INC

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-34037

75-2379388

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

1001 Louisiana Street

 

Houston, Texas

 

77002

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 713 654-2200

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

None

 

N/A

 

N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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.

 

 


Item 2.02 Results of Operations and Financial Condition.

On May 4, 2022, Superior Energy Services, Inc., a Delaware corporation, announced, among other things, its financial results for the fiscal quarter ended March 31, 2022 and a conference call with its shareholders. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated by reference. The information contained in this Item 2.02 (including the exhibit hereto) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 7.01 Regulation FD Disclosure.

 

The information from Item 2.02 of this Current Report on Form 8-K is hereby incorporated into this Item 7.01 by reference.
 

 

The information contained in this Item 7.01 (including the exhibit hereto) shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit Number

 

Exhibit Description

99.1

 

Press release dated May 4, 2022

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 


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 thereunto duly authorized.

 

 

 

Superior Energy Services, Inc.

 

 

 

 

Date:

May 5, 2022

By:

/s/ James W. Spexarth

 

 

 

James W. Spexarth
Executive Vice President, Chief Financial Officer and Treasurer

 


EX-99.1

 

 

Exhibit 99.1

https://cdn.kscope.io/455ac84b81371a5ecf932dcc4fd06b2a-img148250388_0.jpg 

FOR FURTHER INFORMATION CONTACT:

Wendell York, VP – IR, Corporate Development & Treasury

1001 Louisiana St., Suite 2900

Houston, TX 77002

Investor Relations, ir@superiorenergy.com, (713) 654-2200

SUPERIOR ENERGY SERVICES ANNOUNCES
FIRST QUARTER 2022 RESULTS AND CONFERENCE CALL

 

Houston, May 4, 2022 – Superior Energy Services, Inc. (the “Company”) filed its Form 10-Q for the period ending March 31, 2022 on May 4, 2022. In accordance with the Company’s Shareholders Agreement, it will host a conference call with shareholders on Wednesday, May 11, 2022.

 

The Company reported net income from continuing operations for the first quarter of 2022 of $24.0 million, or $1.20 per share, on revenue of $197.9 million. This compares to a net loss from continuing operations of $23.2 million, or $1.16 per share, for the fourth quarter of 2021, on revenues of $198.4 million. Net income from continuing operations includes $13.9 million of “Other income” primarily related to favorable foreign exchange rate changes during the quarter totaling $5.6 million and both realized and unrealized gains of $8.2 million on the value of our stock holdings in Select Energy Services.

 

The Company’s Adjusted EBITDA (a non-GAAP measure) was $53.0 million for the quarter, an increase of 32% compared to $40.1 million in fourth quarter 2021. Refer to page 10 for a Reconciliation of Adjusted EBITDA to GAAP results.

 

Brian Moore, Chief Executive Officer, commented, “Our positive first quarter results showcase the strength of our brands, their leaders, and teams as well as our continued execution of last year’s transformation initiatives. These efforts narrowed our operational focus to businesses with strong market positions, particularly in our Rentals segment, and enabled us to significantly reduce our cost structure, which has had a meaningful impact on margin expansion in these times of labor and supply chain costs inflation. We remain encouraged by our prospects for near-term and longer-term market opportunities and will continue to increase pricing as market capacity is absorbed, while remaining disciplined in our capital expenditure and market participation decisions.”

 

“The strategic transformation resulting from our Business Unit Review in 2021 weighted our product offerings toward businesses critical to our customer’s oil and gas operations. These businesses have limited competition with the three largest global oilfield service companies; require deep technical expertise, specifically in premium drill pipe and bottom hole assembly rentals; and have strong cash flow generating capacity as was delivered in our first quarter results.”

 

First Quarter 2022 Geographic Breakdown

U.S. land revenue was $38.5 million in the first quarter of 2022, an increase of 12% compared to revenue of $34.5 million in the fourth quarter of 2021 driven by both increased utilization and pricing in our Rentals Segment. Our premium drill pipe and downhole assemblies businesses benefited from increased customer demand and a

1

 


 

tightening of the tool rental market where the most desirable assets within our substantial tool inventories were near full utilization.

 

U.S. offshore revenue was $61.1 million in the first quarter of 2022, up 17% compared to revenue of $52.0 million in the fourth quarter of 2021. U.S. offshore results were positively impacted by increased activity and pricing for both our premium drill pipe and hydraulic workover and snubbing businesses. We look forward to increased activity levels where we have the capacity for the highly specialized equipment required for deep water drilling and completion applications.

 

International revenue was $98.3 million in the first quarter of 2022, a decrease of 12% compared to revenue of $111.9 million in the fourth quarter of 2021. International results were negatively impacted by the completion of a project in Brazil and generally lower levels of activity in certain key geographies. We continue to assess our international footprint and will be focusing our efforts on servicing those markets where we can generate a competitive return and support longstanding customer relationships.

Segment Reporting

The Rentals segment revenue in the first quarter of 2022 was $88.8 million, a 7% increase compared to revenue of $82.8 million in the fourth quarter of 2021. Adjusted EBITDA of $49.7 million contributed 75% of the Company’s total Adjusted EBITDA before including Corporate costs. First quarter Adjusted EBITDA Margin (a non-GAAP measure further defined on page 9) within Rentals was 56% benefiting from increasing pricing and higher utilization.

 

The Well Services segment revenue in the first quarter of 2022 was $109.2 million, a 6% decrease compared to revenue of $115.6 million in the fourth quarter of 2021. Adjusted EBITDA for the first quarter was $16.5 million for an Adjusted EBITDA Margin of 15%. Although revenues were lower sequentially, our margins increased primarily due to the revenue mix in our hydraulic workover and snubbing business, with higher margin service revenue replacing mobilization revenue and pass-through work with lower margins. Also, the strategic shift of our more labor-intensive service businesses to U.S. offshore and International operations reduces our exposure to the most significant wage inflation pressures in this segment given our lower U.S. Land headcount.

 

Both segments are experiencing supply chain tightness and inflation, particularly for raw materials associated with downhole completion and drilling bottom hole accessory components. This primarily impacts our ability to bring new tools to market in late 2022 and beyond as we experience long delivery lead times and increased pricing for capital expenditures.

Liquidity

As of March 31, 2022, the Company had cash, cash equivalents, and restricted cash of approximately $439.1 million and the availability remaining under our ABL Credit Facility was approximately $84.4 million, assuming continued compliance with the covenants under our ABL Credit Facility. The Board of Directors continues to evaluate optimal uses of cash on hand, including potential returns of capital to shareholders.

 

Total cash proceeds received from the sale of non-core assets during the quarter were $13.4 million. Additionally, at March 31, 2022, the Company owned 3.1 million shares of Select Energy Services Class A common stock (NYSE: WTTR).

 

First quarter capital expenditures were $11.3 million. The Company expects total capital expenditures for 2022 to be approximately $75 million with substantially all of the remaining spend occurring in the second and third quarters. Approximately 65% of total 2022 capital expenditures are targeted for the replacement of existing assets. Of the total capital expenditures, over 60% will be invested in the Rentals segment.

 

2

 


 

 

Engagement of Strategic Advisor

The Company has engaged Evercore to review potential strategic alternatives focused on maximizing shareholder value.

 

The Board has not set a timetable for the conclusion of this review, nor has it made any decisions related to any further actions or potential strategic alternatives at this time. There can be no assurance that the review will result in any transaction or other strategic change or outcome. The Company does not intend to comment further unless and until it determines that further disclosure is appropriate or necessary.

 

Conference Call Information

The Company will host a conference call on Wednesday, May 11, 2022 at 10:00 a.m. Eastern Time. To listen to the call via a live webcast, please visit Superior’s website at ir.superiorenergy.com and use access code 2779221. You may also listen to the call by dialing in at 1-877-800-3682 in the United States and Canada or 1-615-622-8047 for International calls and using access code 2779221. The call will be available for replay until June 3, 2022 on Superior’s website at ir.superiorenergy.com. If you are a shareholder and would like to submit a question, please email your question beforehand to Wendell York at ir@superiorenergy.com.

 

About Superior Energy Services

Superior Energy Services serves the drilling, completion and production-related needs of oil and gas companies worldwide through a diversified portfolio of specialized oilfield services and equipment that are used throughout the economic life cycle of oil and gas wells. For more information, visit: www.superiorenergy.com.

 

Non-GAAP Financial Measure

To supplement Superior’s consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also uses Adjusted EBITDA and Adjusted EBITDA Margin. Management uses Adjusted EBITDA and Adjusted EBITDA Margin internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company also believes these non-GAAP measures provide investors useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. Non-GAAP financial measures are not recognized measures for financial statement presentation under U.S. GAAP and do not have standardized meanings and may not be comparable to similar measures presented by other public companies. Adjusted EBITDA and Adjusted EBITDA Margin should be considered as supplements to, and not as substitutes for, or superior to, the corresponding measures calculated in accordance with GAAP. We define Adjusted EBITDA as net income (loss) before net interest expense, income tax expense (benefit) and depreciation, amortization and depletion, adjusted for reduction in value of assets and other charges, which management does not consider representative of our ongoing operations. We define Adjusted EBITDA Margin as Adjusted EBITDA by segment as a percentage of segment revenues. For a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure, please see the tables under “―Superior Energy Services, Inc. and Subsidiaries Reconciliation of Adjusted EBITDA” included on pages 10 through 11 of this press release.

 

3

 


 

 

Forward-Looking Statements

This press release contains, and future oral or written statements or press releases by the Company and its management may contain, 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, depreciation expense, liquidity, strategic alternatives (including dispositions and the timing thereof), market outlook, future capital needs, capital allocation plans, business strategies and other plans and objectives of our 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, including but not limited to conditions in the oil and gas industry and the availability of third party

buyers, that could cause the Company’s actual results to differ materially from such statements. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside the control of the Company, which could cause actual results to differ materially from such statements.

 

While the Company believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business.

 

These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in the Company’s Form 10-K for the year ended December 31, 2021 and Form 10-Q filed on May 4, 2022 and those set forth from time to time in the Company’s other periodic filings with the Securities and Exchange Commission, which are available at www.superiorenergy.com. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

###

 

 

 

 

4

 


 

 

 

 

 

 

 

 

 

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(in thousands, except earnings per share amounts)

 

(unaudited)

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2022

 

 

2021

 

 

2021(1)

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

197,930

 

 

$

198,436

 

 

$

151,771

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

112,380

 

 

 

125,099

 

 

 

97,810

 

Depreciation, depletion, amortization and accretion

 

 

34,085

 

 

 

61,603

 

 

 

48,388

 

General and administrative expenses

 

 

32,018

 

 

 

33,158

 

 

 

29,490

 

Restructuring expenses

 

 

1,555

 

 

 

2,419

 

 

 

9,653

 

Other (gains) and losses, net

 

 

1,147

 

 

 

17,459

 

 

 

(169

)

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

16,745

 

 

 

(41,302

)

 

 

(33,401

)

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 Interest income, net

 

 

1,179

 

 

 

937

 

 

 

414

 

 Reorganization items, net

 

 

-

 

 

 

-

 

 

 

335,560

 

 Other income (expense)

 

 

13,947

 

 

 

(629

)

 

 

(4,950

)

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

 

31,871

 

 

 

(40,994

)

 

 

297,623

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit (expense)

 

 

(7,884

)

 

 

17,748

 

 

 

(55,718

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

 

23,987

 

 

 

(23,246

)

 

 

241,905

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations, net of income tax

 

 

1,739

 

 

 

(6,102

)

 

 

(9,758

)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

25,726

 

 

$

(29,348

)

 

$

232,147

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Income (loss) per share -basic

 

 

 

 

 

 

 

 

 

 Net income (loss) from continuing operations

 

$

1.20

 

 

$

(1.16

)

 

 

 

 Income (loss) from discontinued operations, net of income tax

 

 

0.09

 

 

 

(0.31

)

 

 

 

 Net income (loss)

 

$

1.29

 

 

$

(1.47

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per share - diluted:

 

 

 

 

 

 

 

 

 

 Net income (loss) from continuing operations

 

$

1.20

 

 

$

(1.16

)

 

 

 

 Income (loss) from discontinued operations, net of income tax

 

 

0.08

 

 

 

(0.31

)

 

 

 

 Net income (loss)

 

$

1.28

 

 

$

(1.47

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding - basic

 

 

19,999

 

 

 

19,999

 

 

 

 

Weighted-average shares outstanding - diluted

 

 

20,056

 

 

 

19,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Combines results from Predecessor periods prior to our emergence from bankruptcy on February 2, 2021 and Successor periods subsequent to emergence which is a non-GAAP financial measure. For further information regarding the breakdown of results, see our Annual Report on see our Quarterly Report on Form 10-Q for the three months ended March 31, 2022.

 

 

 

 

 

 

 

5

 


 

 

 

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

 

CONSOLIDATED BALANCE SHEETS

 

 

(in thousands)

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

3/31/2022

 

 

12/31/2021

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

359,511

 

 

$

314,974

 

 

Accounts receivable, net

 

 

197,602

 

 

 

182,432

 

 

Income taxes receivable

 

 

5,578

 

 

 

5,099

 

 

Prepaid expenses

 

 

16,037

 

 

 

15,861

 

 

Inventory

 

 

59,830

 

 

 

60,603

 

 

Investment in equity securities

 

 

26,605

 

 

 

25,735

 

 

Other current assets

 

 

5,748

 

 

 

6,701

 

 

Assets held for sale

 

 

28,491

 

 

 

37,528

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 

699,402

 

 

 

648,933

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

331,499

 

 

 

356,274

 

 

Notes receivable

 

 

61,566

 

 

 

60,588

 

 

Restricted cash

 

 

79,561

 

 

 

79,561

 

 

Other long-term assets, net

 

 

52,331

 

 

 

54,152

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,224,359

 

 

$

1,199,508

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

$

43,573

 

 

$

43,080

 

 

Accrued expenses

 

 

107,027

 

 

 

108,610

 

 

Income taxes payable

 

 

12,990

 

 

 

8,272

 

 

Liabilities held for sale

 

 

3,678

 

 

 

5,607

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

167,268

 

 

 

165,569

 

 

 

 

 

 

 

 

 

 

Decommissioning liabilities

 

 

193,041

 

 

 

190,380

 

 

Deferred income taxes

 

 

9,725

 

 

 

12,441

 

 

Other long-term liabilities

 

 

86,281

 

 

 

89,385

 

 

Total Liabilities

 

 

456,315

 

 

 

457,775

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity (deficit)

 

 

768,044

 

 

 

741,733

 

 

Total liabilities and stockholders' equity

 

$

1,224,359

 

 

$

1,199,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 


 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

(in thousands)

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

March 31,

 

 

 

 

2022

 

 

2021(1)

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net income

 

$

25,726

 

 

$

232,147

 

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

 

 Depreciation, depletion, amortization and accretion

 

 

34,085

 

 

 

63,304

 

 

 Reorganization items, net

 

 

-

 

 

 

(354,279

)

 

 Other non-cash items

 

 

(17,251

)

 

 

43,840

 

 

 Changes in operating assets and liabilities

 

 

(7,470

)

 

 

41,772

 

 

 Net cash from operating activities

 

 

35,090

 

 

 

26,784

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 Payments for capital expenditures

 

 

(11,297

)

 

 

(7,154

)

 

 Proceeds from sales of assets

 

 

13,379

 

 

 

7,923

 

 

 Proceeds from sales of equity securities

 

 

7,365

 

 

 

-

 

 

 Net cash from investing activities

 

 

9,447

 

 

 

769

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 Other

 

 

-

 

 

 

(1,934

)

 

 Net cash from financing activities

 

 

-

 

 

 

(1,934

)

 

 Effect of exchange rate changes on cash

 

 

-

 

 

 

311

 

 

Net change in cash, cash equivalents and restricted cash

 

 

44,537

 

 

 

25,930

 

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

394,535

 

 

 

268,184

 

 

Cash, cash equivalents and restricted cash at end of period

 

$

439,072

 

 

$

294,114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Combines results from Predecessor periods prior to our emergence from bankruptcy on February 2, 2021 and Successor periods subsequent to emergence which is a non-GAAP financial measure. For further information regarding the breakdown of results, see our Quarterly Report on Form 10-Q for the three months ended March 31, 2022.

 

 

 

7

 


 

 

 

 

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

 

REVENUE BY GEOGRAPHIC REGION BY SEGMENT

 

 

(in thousands, except per share data)

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

 

2022

 

 

2021

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. land

 

 

 

 

 

 

 

 

 

 

 Rentals

 

$

33,962

 

 

$

29,907

 

 

$

16,026

 

 

 Well Services

 

 

4,548

 

 

 

4,588

 

 

 

5,505

 

 

Total U.S. land

 

 

38,510

 

 

 

34,495

 

 

 

21,531

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. offshore

 

 

 

 

 

 

 

 

 

 

 Rentals

 

 

32,753

 

 

 

27,356

 

 

 

28,599

 

 

 Well Services

 

 

28,321

 

 

 

24,661

 

 

 

26,792

 

 

Total U.S. offshore

 

 

61,074

 

 

 

52,017

 

 

 

55,391

 

 

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 

 Rentals

 

 

22,041

 

 

 

25,530

 

 

 

16,162

 

 

 Well Services

 

 

76,305

 

 

 

86,394

 

 

 

58,687

 

 

Total International

 

 

98,346

 

 

 

111,924

 

 

 

74,849

 

 

Total Revenues

 

$

197,930

 

 

$

198,436

 

 

$

151,771

 

 

 

8

 


 

 

 

 

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

 

SEGMENT HIGHLIGHTS

 

 

(in thousands)

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

 

2022

 

 

2021

 

 

2021

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 Rentals

 

$

88,756

 

 

$

82,793

 

 

$

60,787

 

 

 Well Services

 

 

109,174

 

 

 

115,643

 

 

 

90,984

 

 

 Corporate and other

 

 

-

 

 

 

-

 

 

 

-

 

 

Total Revenues

 

$

197,930

 

 

$

198,436

 

 

$

151,771

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Operations

 

 

 

 

 

 

 

 

 

 

 Rentals

 

$

28,785

 

 

$

2,311

 

 

$

(180

)

 

 Well Services

 

 

4,135

 

 

 

(25,560

)

 

 

(10,898

)

 

 Corporate and other

 

 

(16,175

)

 

 

(18,053

)

 

 

(22,323

)

 

Total Income (Loss) from Operations

 

$

16,745

 

 

$

(41,302

)

 

$

(33,401

)

 

 

 

 

 

 

 

 

 

 

 

 

 Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

 Rentals

 

$

49,774

 

 

$

44,179

 

 

$

32,149

 

 

 Well Services

 

 

16,502

 

 

 

9,511

 

 

 

3,931

 

 

 Corporate and other

 

 

(13,252

)

 

 

(13,581

)

 

 

(11,440

)

 

Total Adjusted EBITDA

 

$

53,024

 

 

$

40,109

 

 

$

24,640

 

 

 

 

 

 

 

 

 

 

 

 

 

 Adjusted EBITDA Margin

 

 

 

 

 

 

 

 

 

 

 Rentals

 

 

56

%

 

 

53

%

 

 

53

%

 

 Well Services

 

 

15

%

 

 

8

%

 

 

4

%

 

 Corporate and other

 

n/a

 

 

n/a

 

 

n/a

 

 

Total Adjusted EBITDA

 

 

27

%

 

 

20

%

 

 

16

%

 

 

 

 

 

 

 

 

 

 

 

 

We define EBITDA as income (loss) from continuing operations excluding the impact of depreciation, depletion, amortization and accretion, interest and income taxes. Additionally, our definition of Adjusted EBITDA adjusts for the impact of restructuring expenses, other gains and losses, other (income) expenses and other adjustments.

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin represents Adjusted EBITDA by segment as a percentage of segment revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9

 


 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

RECONCILIATION OF ADJUSTED EBITDA

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2022

 

 

2021

 

 

2021(1)

 

 

 

 

 

 

 

 

 

 

 

 Net income (loss) from continuing operations

 

$

23,987

 

 

$

(23,246

)

 

$

241,905

 

 Depreciation, depletion, amortization and accretion

 

 

34,085

 

 

 

61,603

 

 

 

48,388

 

 Interest income, net

 

 

(1,179

)

 

 

(937

)

 

 

(414

)

 Income taxes

 

 

7,884

 

 

 

(17,748

)

 

 

55,718

 

 Reorganization items, net

 

 

-

 

 

 

-

 

 

 

(335,560

)

 Restructuring expenses

 

 

1,555

 

 

 

2,419

 

 

 

9,653

 

 Other (gains) and losses, net (2)

 

 

1,147

 

 

 

17,459

 

 

 

(169

)

 Other (income) expense

 

 

(13,947

)

 

 

629

 

 

 

4,950

 

 Other adjustments (3)

 

 

(508

)

 

 

(70

)

 

 

169

 

 Adjusted EBITDA

 

$

53,024

 

 

$

40,109

 

 

$

24,640

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

We define EBITDA as income (loss) from continuing operations excluding the impact of depreciation, depletion, amortization and accretion, interest and income taxes. Additionally, our definition of Adjusted EBITDA adjusts for the impact of restructuring expenses, other gains and losses, other (income) expenses and other adjustments.

 

 

 

 

 

 

 

 

 

 

 

(1) Combines results from Predecessor periods prior to our emergence from bankruptcy on February 2, 2021 and Successor periods subsequent to emergence. For further information regarding the breakdown of results, see our Quarterly Report on Form 10-Q for the three months ended March 31, 2022.

 

 

 

 

 

 

 

 

 

 

 

(2) Other gains and losses for the fourth quarter comprised $15.2 million related to our Wells Services segment, which includes approximately $11.7 million from exit activities related to SES Energy Services India Pvt. Ltd, and $2.3 million related to our Rentals segment. Other gains and losses primarily relate to charges recorded as part of our strategic disposal of low margin assets in line with our Transformation Project strategy and includes gains/losses on asset sales, as well as impairments primarily related to long-lived assets.

 

 

 

 

 

 

 

 

 

 

 

(3) Other adjustments relate to costs associated with our Transformation Project which are included in cost of revenues in our condensed consolidated statements of operations. These costs primarily relate to shut down costs incurred at certain locations and include severance of personnel and the write-down of inventory.

 

 

10

 


 

 

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2022

 

 

 

 

 

 

Well

 

 

Corporate

 

 

Consolidated

 

 

 

Rentals

 

 

Services

 

 

and Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Income (loss) from operations

 

$

28,785

 

 

$

4,135

 

 

$

(16,175

)

 

$

16,745

 

 Depreciation, depletion, amortization and accretion

 

 

20,989

 

 

 

11,728

 

 

 

1,368

 

 

 

34,085

 

 Restructuring expenses

 

 

-

 

 

 

-

 

 

 

1,555

 

 

 

1,555

 

 Other gains and losses (1)

 

 

-

 

 

 

639

 

 

 

-

 

 

 

639

 

Adjusted EBITDA

 

$

49,774

 

 

$

16,502

 

 

$

(13,252

)

 

$

53,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31, 2021

 

 

 

 

 

 

Well

 

 

Corporate