8-K
0000886835NONEfalse00008868352022-08-042022-08-04

 

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): August 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 August 4, 2022, Superior Energy Services, Inc., a Delaware corporation, announced, among other things, its financial results for the fiscal quarter ended June 30, 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.

 

 Exhibit No.

 

Exhibit Description

99.1

 

Press release dated August 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:

August 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/bda3d84ac32fe0a06a877db898144291-img148250388_0.jpg 

FOR FURTHER INFORMATION CONTACT:

Jamie Spexarth, Chief Financial Officer

1001 Louisiana St., Suite 2900

Houston, TX 77002

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

 

SUPERIOR ENERGY SERVICES ANNOUNCES
SECOND QUARTER 2022 RESULTS AND CONFERENCE CALL

 

Houston, August 4, 2022 – Superior Energy Services, Inc. (the “Company”) filed its Form 10-Q for the period ending June 30, 2022 on August 4, 2022. In accordance with the Company’s Shareholders Agreement, it will host a conference call with shareholders on Tuesday, August 9, 2022.

 

The Company reported net income from continuing operations for the second quarter of 2022 of $43.6 million, or $2.17 per diluted share, on revenue of $224.6 million. This compares to a net income from continuing operations of $24.0 million, or $1.20 per diluted share, for the first quarter of 2022, on revenues of $197.9 million.

 

Net income from continuing operations includes a gain of $17.4 million in Other (gains) and losses within operating income related to a gain from revisions to our estimated Decommissioning Liability in the second quarter. This gain was offset by an expense of $13.5 million in Other income (expense) primarily related to unfavorable foreign exchange rate changes and both realized gains and unrealized losses on the value of our stock holdings in Select Energy Services.

 

The Company’s Adjusted EBITDA (a non-GAAP measure) was $74.0 million for the quarter, an increase of 40% compared to $53.0 million in first quarter 2022. Refer to page 10 for a Reconciliation of Adjusted EBITDA to GAAP results.

 

Brian Moore, Chief Executive Officer, commented, “Our performance and margin expansion demonstrated by second quarter results further validates the strength of our brands, their leaders, and teams as well as our strategy. Our continued execution of last year’s transformation initiatives has changed our competitive position and our operational focus to businesses with strong market positions, particularly in our Rentals segment. The significantly reduced cost structure was apparent in the second quarter as our pricing leverage and high utilization of desirable assets outpaced inflation despite challenges relating to the labor market and our supply chain costs. Our significantly reduced cost structure further enabled solid margin expansion in the second quarter. We will continue to leverage our sustainable lower cost structure and leading market positions to deliver compelling margins and returns. In addition, we will remain committed to converting operating margin to free cash flow generation with continued discipline in our capital expenditure and market participation decisions.

 

We remain encouraged by our prospects for near-term and long-term market opportunities and will continue to be opportunistic in maintaining and enhancing our strong market positions. The second quarter performance reflects not only our strategy and focus on businesses critical to our customers' operations but also showcases the capabilities of our business unit leaders and their teams. We appreciate the contributions and dedication of our approximately 2,300 employees and continue to implement compensation programs that motivate, reward and retain our people while striving to grow shareholder value.”

 

1

 


Second Quarter 2022 Geographic Breakdown

 

U.S. land revenue was $47.9 million in the second quarter of 2022, an increase of 24% compared to revenue of $38.5 million in the first quarter of 2022 driven by increased utilization, activity, and pricing in our Rentals Segment. Our premium drill pipe and downhole assemblies businesses continue to benefit from increased market activity and need for ancillary services coupled with a tight tool rental market where the most desirable assets within our substantial tool inventories were near full utilization.

 

U.S. offshore revenue was $68.9 million in the second quarter of 2022, up 13% compared to revenue of $61.1 million in the first quarter of 2022. U.S. offshore results were positively impacted by increased completions activity in both our Well Services and Rentals segments.

 

International revenue was $107.8 million in the second quarter of 2022, an increase of 10% compared to revenue of $98.3 million in the first quarter of 2022. International results were positively impacted by an improvement in the Latin American market, particularly within our Well Services segment, offset by the wind-down of a Well Services project in the Middle East. Targeting markets with core customers and long-term contracts ensures development of competitive returns while limiting participation in low-margin and sub-scale markets.

 

Segment Reporting

 

The Rentals segment revenue in the second quarter of 2022 was $103.7 million, a 17% increase compared to revenue of $88.8 million in the first quarter of 2022. Adjusted EBITDA of $61.1 million contributed 70% of the Company’s total Adjusted EBITDA before including corporate costs. Second quarter Adjusted EBITDA Margin (a non-GAAP measure further defined on page 9) within Rentals was 59% benefiting from increased activity with improved revenue mix.

 

The Well Services segment revenue in the second quarter of 2022 was $120.9 million, an 11% increase compared to revenue of $109.2 million in the first quarter of 2022. Adjusted EBITDA for the second quarter was $25.4 million for an Adjusted EBITDA Margin of 21%. Savings realized from the strategic shift of our more labor-intensive service businesses to U.S. offshore and international operations improved revenue mix, with completions applications, and increased Latin American activity have driven margins higher.

 

Decommissioning Liability Revision

 

In the second quarter of 2022, the Company changed our decommissioning program, whereby we intend to convert the offshore platform to an artificial reef (“reef in place”) and no longer expect to fully decommission the platform. Based on this change, the Company revised the timing and cost estimates under the reef-in-place program, resulting in a decrease of $53 million in our decommissioning liability. Please see the Company’s Form 10-Q filed on August 4, 2022 for further details.

 

Liquidity

 

As of June 30, 2022, the Company had cash, cash equivalents, and restricted cash of approximately $470.8 million and the availability remaining under our ABL Credit Facility was approximately $85.6 million, assuming continued compliance with the covenants under our ABL Credit Facility.

 

Total cash proceeds received from the sale of non-core assets during the quarter were $1.8 million and proceeds from the sale of equity securities were $6.0 million. Additionally, at June 30, 2022, the Company owned approximately 2.4 million shares of Select Energy Services Class A common stock (NYSE: WTTR).

 

The Company remains focused on cash conversion. Year to date net cash provided by operating activities was $68.2 million, offset by a capital expenditure spend of $20.5 million.

2

 


 

Second quarter capital expenditures were $9.2 million. The Company expects total capital expenditures for 2022 to be between $75 - $85 million with a substantial portion of the remaining spend occurring in the third quarter. Approximately 70% of total 2022 capital expenditures are targeted for the replacement of existing assets. Of the total capital expenditures, over 70% will be invested in the Rentals segment.

 

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. We continue to be diligent and are working with our suppliers to ensure delivery of necessary materials.

 

2022 Guidance

 

Based on our strong performance in the second quarter, and increased visibility into the remainder of 2022, we now expect revenue for 2022 to come in between $840 million and $900 million. Full year EBITDA (a Non-GAAP measure) is now expected to be in a range of $250 million to $280 million.

 

Strategic Initiatives

 

As noted in our First Quarter Earnings Release, the Company has engaged Evercore to review potential strategic alternatives focused on maximizing shareholder value.

 

The Board has continued to evaluate strategic alternatives in the second quarter. We now expect to pay a distribution and return of capital to shareholders in the second half of 2022.

 

Conference Call Information

 

The Company will host a conference call on Tuesday, August 9, 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 10170151. You may also listen to the call by dialing in at 1-877-870-4263 in the United States and Canada or 1-412-317-0790 for International calls and using access code 10170151. The call will be available for replay until September 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 Jamie Spexarth 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.

 

 

3

 


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.

 

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 August 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

 


The Company is unable to provide a reconciliation of the forward-looking non-GAAP financial measure, EBITDA, contained in this Current Report on Form 8-K to its most directly comparable GAAP financial measure, net income (loss), because the information necessary for a quantitative reconciliation of the forward-looking non-GAAP financial measure to its respective most directly comparable GAAP financial measure is not (and was not, when prepared) available to the Company without unreasonable efforts due to the inherent difficulty and impracticability of predicting certain amounts required by GAAP with a reasonable degree of accuracy. Net income (loss) includes the impact of depreciation, income taxes and certain other items that impact comparability between periods, which may be significant and are difficult to project with a reasonable degree of accuracy. In addition, we believe such reconciliation could imply a degree of precision that might be confusing or misleading to investors. The probable significance of providing this forward-looking non-GAAP financial measure without the directly comparable GAAP financial measure is that such GAAP financial measure may be materially different from the corresponding non-GAAP financial measure.

 

 

5

 


 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(in thousands, except earnings per share amounts)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021 (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

224,640

 

 

$

197,930

 

 

$

165,892

 

 

$

422,570

 

 

$

317,663

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Cost of revenues

 

 

120,968

 

 

 

112,380

 

 

 

103,045

 

 

 

233,348

 

 

 

200,855

 

 Depreciation, depletion, amortization and accretion

 

 

23,346

 

 

 

34,085

 

 

 

59,018

 

 

 

57,431

 

 

 

107,406

 

 General and administrative expenses

 

 

30,231

 

 

 

32,018

 

 

 

32,308

 

 

 

62,249

 

 

 

61,798

 

 Restructuring expenses

 

 

1,663

 

 

 

1,555

 

 

 

7,438

 

 

 

3,218

 

 

 

17,091

 

 Other (gains) and losses, net

 

 

(18,013

)

 

 

1,147

 

 

 

534

 

 

 

(16,866

)

 

 

365

 

 Income (loss) from operations

 

 

66,445

 

 

 

16,745

 

 

 

(36,451

)

 

 

83,190

 

 

 

(69,852

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Interest income, net

 

 

1,459

 

 

 

1,179

 

 

 

535

 

 

 

2,638

 

 

 

949

 

 Reorganization items, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

335,560

 

 Other income (expense)

 

 

(13,471

)

 

 

13,947

 

 

 

2,570

 

 

 

476

 

 

 

(2,380

)

Income (loss) from continuing operations before income taxes

 

 

54,433

 

 

 

31,871

 

 

 

(33,346

)

 

 

86,304

 

 

 

264,277

 

 Income tax benefit (expense)

 

 

(10,871

)

 

 

(7,884

)

 

 

1,747

 

 

 

(18,755

)

 

 

(53,971

)

Net income (loss) from continuing operations

 

 

43,562

 

 

 

23,987

 

 

 

(31,599

)

 

 

67,549

 

 

 

210,306

 

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

 

 

(1,944

)

 

 

1,739

 

 

 

(19,400

)

 

 

(205

)

 

 

(29,158

)

Net income (loss)

 

$

41,618

 

 

$

25,726

 

 

$

(50,999

)

 

$

67,344

 

 

$

181,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Income (loss) per share -basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net income (loss) from continuing operations

 

$

2.18

 

 

$

1.20

 

 

 

 

 

$

3.38

 

 

 

 

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

 

 

(0.10

)

 

 

0.09

 

 

 

 

 

 

(0.01

)

 

 

 

 Net income (loss)

 

$

2.08

 

 

$

1.29

 

 

 

 

 

$

3.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per share - diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net income (loss) from continuing operations

 

$

2.17

 

 

$

1.20

 

 

 

 

 

$

3.37

 

 

 

 

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

 

 

(0.10

)

 

 

0.08

 

 

 

 

 

 

(0.01

)

 

 

 

 Net income (loss)

 

$

2.07

 

 

$

1.28

 

 

 

 

 

$

3.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding - basic

 

 

20,024

 

 

 

19,999

 

 

 

 

 

 

20,011

 

 

 

 

Weighted-average shares outstanding - diluted

 

 

20,076

 

 

 

20,056

 

 

 

 

 

 

20,065

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Combines results from periods prior to our emergence from bankruptcy on February 2, 2021 and 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 quarterly period ended June 30, 2022.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 


SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

 

(in thousands)

 

(unaudited)

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 Cash and cash equivalents

 

$

391,219

 

 

$

314,974

 

 Accounts receivable, net

 

 

211,014

 

 

 

182,432

 

 Income taxes receivable

 

 

5,091

 

 

 

5,099

 

 Prepaid expenses

 

 

18,513

 

 

 

15,861

 

 Inventory

 

 

67,201

 

 

 

60,603

 

 Investment in equity securities

 

 

16,524

 

 

 

25,735

 

 Other current assets

 

 

5,349

 

 

 

6,701

 

 Assets held for sale

 

 

25,629

 

 

 

37,528

 

 Total current assets

 

 

740,540

 

 

 

648,933

 

Property, plant and equipment, net

 

 

286,927

 

 

 

356,274

 

Notes receivable

 

 

65,140

 

 

 

60,588

 

Restricted cash

 

 

79,595

 

 

 

79,561

 

Other long-term assets, net

 

 

50,374

 

 

 

54,152

 

 Total assets

 

$

1,222,576

 

 

$

1,199,508

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 Accounts payable

 

$

44,334

 

 

$

43,080

 

 Accrued expenses

 

 

111,839

 

 

 

108,610

 

 Income taxes payable

 

 

10,449

 

 

 

8,272

 

 Liabilities held for sale

 

 

4,200

 

 

 

5,607

 

 Total current liabilities

 

 

170,822

 

 

 

165,569

 

Decommissioning liabilities

 

 

142,740

 

 

 

190,380

 

Deferred income taxes

 

 

16,225

 

 

 

12,441

 

Other long-term liabilities

 

 

82,169

 

 

 

89,385

 

 Total liabilities

 

 

411,956

 

 

 

457,775

 

Total stockholders' equity

 

 

810,620

 

 

 

741,733

 

 Total liabilities and stockholders' equity

 

$

1,222,576

 

 

$

1,199,508

 

 

 

7

 


SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2022

 

 

2021(1)

 

Cash flows from operating activities

 

 

 

 

 

 

Net income

 

$

67,344

 

 

$

181,148

 

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

 

 

 

 

 

 

 Depreciation, depletion, amortization and accretion

 

 

57,431

 

 

 

140,903

 

 Reorganization items, net

 

 

-

 

 

 

(354,279

)

 Other non-cash items

 

 

(22,358

)

 

 

48,304

 

 Changes in operating assets and liabilities

 

 

(34,173

)

 

 

1,810

 

 Net cash from operating activities

 

 

68,244

 

 

 

17,886

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 Payments for capital expenditures

 

 

(20,514

)

 

 

(14,030

)

 Proceeds from sales of assets

 

 

15,183

 

 

 

16,975

 

 Proceeds from sales of equity securities

 

 

13,366

 

 

 

-

 

 Net cash from investing activities

 

 

8,035

 

 

 

2,945

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 Other

 

 

-

 

 

 

(3,419

)

 Net cash from financing activities

 

 

-

 

 

 

(3,419

)

 Effect of exchange rate changes on cash

 

 

-

 

 

 

311

 

Net change in cash, cash equivalents and restricted cash

 

 

76,279

 

 

 

17,723

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

394,535

 

 

 

268,184

 

Cash, cash equivalents and restricted cash at end of period

 

$

470,814

 

 

$

285,907

 

 

 

 

 

 

 

 

(1) Combines results from periods prior to our emergence from bankruptcy on February 2, 2021 and 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 quarterly period ended June 30, 2022.

 

 

 

8

 


SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

REVENUE BY GEOGRAPHIC REGION BY SEGMENT

 

(in thousands, except per share data)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

 

2022

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

U.S. land

 

 

 

 

 

 

 

 

 

 Rentals

 

$

43,791

 

 

$

33,962

 

 

$

20,789

 

 Well Services

 

 

4,151

 

 

 

4,548

 

 

 

6,781

 

Total U.S. land

 

 

47,942

 

 

 

38,510

 

 

 

27,570

 

 

 

 

 

 

 

 

 

 

 

U.S. offshore

 

 

 

 

 

 

 

 

 

 Rentals

 

 

36,331

 

 

 

32,753

 

 

 

26,890

 

 Well Services

 

 

32,569

 

 

 

28,321

 

 

 

26,574

 

Total U.S. offshore

 

 

68,900

 

 

 

61,074

 

 

 

53,464

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 Rentals

 

 

23,607

 

 

 

22,041

 

 

 

19,558

 

 Well Services

 

 

84,191

 

 

 

76,305

 

 

 

65,300

 

Total International

 

 

107,798

 

 

 

98,346

 

 

 

84,858

 

Total Revenues

 

$

224,640

 

 

$

197,930

 

 

$

165,892

 

 

 

9

 


SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

SEGMENT HIGHLIGHTS

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

 

2022

 

 

2022

 

 

2021

 

Revenues

 

 

 

 

 

 

 

 

 

 Rentals

 

$

103,729

 

 

$

88,756

 

 

$

67,237

 

 Well Services

 

 

120,911

 

 

 

109,174

 

 

 

98,655

 

 Corporate and other

 

 

-

 

 

 

-

 

 

 

-

 

Total Revenues

 

$

224,640

 

 

$

197,930

 

 

$

165,892

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Operations

 

 

 

 

 

 

 

 

 

 Rentals

 

$

48,559

 

 

$

28,785

 

 

$

(9,232

)

 Well Services

 

 

33,147

 

 

 

4,135

 

 

 

(5,226

)

 Corporate and other

 

 

(15,261

)

 

 

(16,175

)

 

 

(21,993

)

Total Income (Loss) from Operations

 

$

66,445

 

 

$

16,745

 

 

$

(36,451

)

 

 

 

 

 

 

 

 

 

 

 Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 Rentals

 

$

61,115

 

 

$

49,774

 

 

$

32,851

 

 Well Services

 

 

25,400

 

 

 

16,502

 

 

 

9,987

 

 Corporate and other

 

 

(12,470

)

 

 

(13,252

)

 

 

(12,833

)

Total Adjusted EBITDA

 

$

74,045

 

 

$

53,024

 

 

$

30,005

 

 

 

 

 

 

 

 

 

 

 

 Adjusted EBITDA Margin

 

 

 

 

 

 

 

 

 

 Rentals

 

 

59

%

 

 

56

%

 

 

49

%

 Well Services

 

 

21

%

 

 

15

%

 

 

10

%

 Corporate and other

 

n/a

 

 

n/a

 

 

n/a

 

Total Adjusted EBITDA Margin

 

 

33

%

 

 

27

%

 

 

18

%

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

10

 


SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

RECONCILIATION OF ADJUSTED EBITDA

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

 

2022

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 Net income (loss) from continuing operations

 

$

43,562

 

 

$

23,987

 

 

$

(31,599

)

 Depreciation, depletion, amortization and accretion

 

 

23,346

 

 

 

34,085

 

 

 

59,018

 

 Interest income, net

 

 

(1,459

)

 

 

(1,179

)

 

 

(535

)

 Income taxes

 

 

10,871

 

 

 

7,884

 

 

 

(1,747

)

 Restructuring expenses

 

 

1,663

 

 

 

1,555

 

 

 

7,438

 

 Other (gains) and losses, net

 

 

(18,013

)

 

 

1,147

 

 

 

-

 

 Other (income) expense

 

 

13,471

 

 

 

(13,947

)

 

 

(2,570

)

 Other adjustments (1)

 

 

604

 

 

 

(508

)

 

 

-

 

 Adjusted EBITDA

 

$

74,045

 

 

$

53,024

 

 

$

30,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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) Adjustments for exit activities related to SES Energy Services India Pvt. Ltd.

 

 

11

 


SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 2022

 

 

 

 

 

 

Well

 

 

Corporate

 

 

Consolidated

 

 

 

Rentals

 

 

Services

 

 

and Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Income (loss) from operations

 

$

48,559

 

 

$

33,147

 

 

$

(15,261

)

 

$

66,445

 

 Depreciation, depletion, amortization and accretion

 

 

12,556

 

 

 

9,662

 

 

 

1,128

 

 

 

23,346

 

 Restructuring expenses

 

 

-

 

 

 

-

 

 

 

1,663

 

 

 

1,663

 

 Other adjustments (1)

 

 

-

 

 

 

(17,409

)

 

 

-

 

 

 

(17,409

)

Adjusted EBITDA

 

$

61,115

 

 

$

25,400

 

 

$

(12,470

)

 

$

74,045

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31, 2022