8-K
falseNONE000088683500008868352022-11-022022-11-02

 

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): November 02, 2022

 

 

SUPERIOR ENERGY SERVICES INC

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-34037

87-4613576

(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 November 2, 2022, Superior Energy Services, Inc., a Delaware corporation, announced, among other things, its financial results for the fiscal quarter ended September 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 November 2, 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:

November 2, 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/42955078d9113d6bcdc6befe1b567ea0-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
THIRD QUARTER 2022 RESULTS AND CONFERENCE CALL

 

Houston, November 2, 2022 – Superior Energy Services, Inc. (the “Company”) filed its Form 10-Q for the period ending September 30, 2022 on November 2, 2022. In accordance with the Company’s Shareholders Agreement, it will host a conference call with shareholders on Tuesday, November 8, 2022.

 

For the third quarter of 2022, the Company reported net income from continuing operations of $48.5 million, or $2.41 per diluted share, and revenue of $222.3 million. This compares to net income from continuing operations of $43.6 million, or $2.17 per diluted share, and revenue of $224.6 million, for the second quarter of 2022.

 

Net income from continuing operations includes a gain of $13.4 million in Other (gains) and losses within operating income primarily related to net gains from divestitures of non-core businesses within our Well Services segment. This gain was offset by an expense of $6.8 million in Other income (expense) primarily related to unfavorable foreign exchange rate changes.

 

The Company’s Adjusted EBITDA (a non-GAAP measure) was $75.1 million for the quarter, an increase of 1% compared to $74.0 million in the second quarter of 2022. Refer to page 11 for a Reconciliation of Adjusted EBITDA to GAAP results.

 

The Company divested non-core businesses and assets during the third quarter of 2022 for cash proceeds of $31.2 million. The divestitures collectively generated $20.6 million of revenue and $3.4 million of Adjusted EBITDA during the first two quarters of 2022.

 

Brian Moore, Chief Executive Officer, commented, “I’m extremely proud of our team’s execution during the quarter. Commodity prices remained elevated despite the Fed’s rapid interest rate increases that drove the US dollar higher. The market continued to tighten for oilfield products, driving pricing higher for our businesses while maintaining near full capacity levels of utilization.

 

Our team has continued to execute the Transformation Project, divesting many low-margin, asset and labor-intensive businesses, with low barriers to entry, in regions and product lines where we do not have and do not wish to achieve scale. The value derived from these sales is evident in the near-term as the increase to our earnings guidance is driven by higher margins.”

 

 

 

1

 


 

Third Quarter 2022 Geographic Breakdown

 

U.S. land revenue was $49.5 million in the third quarter of 2022, an increase of 3% compared to revenue of $47.9 million in the second quarter of 2022. This increase was driven by increased pricing for our premium drill pipe rentals business and increased utilization and pricing for our bottom hole assembly rentals business.

 

U.S. offshore revenue was $61.4 million in the third quarter of 2022, a decrease of 11% compared to revenue of $68.9 million in the second quarter of 2022. This decrease was driven by lower project activity in our completion services business and the impact of our exit from non-core businesses in the Well Services segment.

 

International revenue was $111.4 million in the third quarter of 2022, an increase of 3% compared to revenue of $107.8 million in the second quarter of 2022. This increase was driven by increased activity in premium drill pipe, international completions services, and increased production services activity in Argentina.

 

Segment Reporting

 

The Rentals segment revenue in the third quarter of 2022 was $104.6 million, a 1% increase compared to revenue of $103.7 million in the second quarter of 2022. Adjusted EBITDA of $64.1 million contributed 72% of the Company’s total Adjusted EBITDA before including corporate costs. Third quarter Adjusted EBITDA Margin (a non-GAAP measure further defined on page 9) within Rentals was 61%, a 4% increase relative to the second quarter driven by price increases on land and increased utilization offshore.

 

The Well Services segment revenue in the third quarter of 2022 was $117.7 million, a 3% decrease compared to revenue of $120.9 million in the second quarter of 2022. Adjusted EBITDA for the third quarter of 2022 was $25.2 million for an Adjusted EBITDA Margin of 21%, roughly equal to the second quarter. Lower margin international completions projects were offset by higher activity and pricing in Latin America.

 

Liquidity

 

As of September 30, 2022, the Company had cash, cash equivalents, and restricted cash of approximately $533.4 million and the availability remaining under our ABL Credit Facility was approximately $79.7 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 $31.2 million. Additionally, at September 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. Free cash flow (net cash from operating activities less payments for capital expenditures) for the third quarter totaled $31.4 million and totaled $79.1 million on a year-to-date basis.

 

Third quarter capital expenditures were $22.4 million. The Company expects total capital expenditures for 2022 to be between $65 - $75 million, a reduction to prior guidance as some previously planned spending within the Well Services segment has been curtailed. Approximately 77% of total 2022 capital expenditures are targeted for the replacement of existing assets. Of the total capital expenditures, over 75% of which will be invested in the Rentals segment.

 

 

 

2

 


 

2022 & 2023 Guidance

 

Based on our continued strong performance in the third quarter, we now expect Adjusted EBITDA for 2022 between $270 million and $290 million. Revenue is expected to be in the $860 to $900 million range.

 

We are currently in our 2023 planning cycle. As we look forward, we expect activity and results in 2023 to be in line with results from the second half of 2022 with some moderate growth generated primarily by our international rental operations.

 

Strategic Initiatives

 

The Board has continued to evaluate strategic alternatives in the third quarter. We now expect to pay a distribution, and are pursuing a return of capital, with an expected range between $225 million and $250 million to shareholders in December 2022.

 

Our Transformation Project is now substantially complete, as evidenced by solid cash flow conversions and margins over the last few quarters. Management will continue to execute the remaining initiatives and attempt to further our consistent performance.

 

With a narrowed focus and simplified structure, the Company is well-positioned to move forward efficiently and purposefully with the evaluation of strategic consolidation opportunities aligned with our objectives in an effort to create value for stakeholders.

 

Conference Call Information

 

The Company will host a conference call on Tuesday, November 8, 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 10172654. You may also listen to the call by dialing in at 1-833-816-1366 in the United States and Canada or 1-412-317-0461 for International calls and using access code 10172654. The call will be available for replay until November 15, 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.

 

Free cash flow is considered a non-GAAP financial measure under the SEC’s rules. Management believes, however, that free cash flow is an important financial measure for use in evaluating the Company’s financial performance, as it measures our ability to generate additional cash from our business operations. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as supplemental to our entire statement of cash flows.

 

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

4

 


 

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, Form 10-Q for any subsequent interim period, and those set forth from time to time in the Company’s other current or 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.

 

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

 

 

Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

September 30,

 

 

 

2022

 

 

2022

 

 

2021

 

 

2022

 

 

2021 (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

222,287

 

 

$

224,640

 

 

$

178,583

 

 

$

644,857

 

 

$

496,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Cost of revenues

 

 

116,081

 

 

 

120,968

 

 

 

126,070

 

 

 

349,429

 

 

 

326,925

 

 Depreciation, depletion, amortization and accretion

 

 

20,508

 

 

 

23,346

 

 

 

59,208

 

 

 

77,939

 

 

 

166,614

 

 General and administrative expenses

 

 

31,841

 

 

 

30,231

 

 

 

33,671

 

 

 

94,090

 

 

 

95,469

 

 Restructuring expenses

 

 

1,223

 

 

 

1,663

 

 

 

4,712

 

 

 

4,441

 

 

 

21,803

 

 Other (gains) and losses, net

 

 

(13,397

)

 

 

(18,013

)

 

 

(1,097

)

 

 

(30,263

)

 

 

(732

)

 Income (loss) from operations

 

 

66,031

 

 

 

66,445

 

 

 

(43,981

)

 

 

149,221

 

 

 

(113,833

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Interest income, net

 

 

3,373

 

 

 

1,459

 

 

 

647

 

 

 

6,011

 

 

 

1,596

 

 Reorganization items, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

335,560

 

 Other income (expense)

 

 

(6,838

)

 

 

(13,471

)

 

 

(6,224

)

 

 

(6,362

)

 

 

(8,604

)

Income (loss) from continuing operations before income taxes

 

 

62,566

 

 

 

54,433

 

 

 

(49,558

)

 

 

148,870

 

 

 

214,719

 

 Income tax benefit (expense)

 

 

(14,058

)

 

 

(10,871

)

 

 

9,518

 

 

 

(32,813

)

 

 

(44,453

)

Net income (loss) from continuing operations

 

 

48,508

 

 

 

43,562

 

 

 

(40,040

)

 

 

116,057

 

 

 

170,266

 

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

 

 

17

 

 

 

(1,944

)

 

 

(5,161

)

 

 

(188

)

 

 

(34,319

)

Net income (loss)

 

$

48,525

 

 

$

41,618

 

 

$

(45,201

)

 

$

115,869

 

 

$

135,947

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Income (loss) per share -basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net income (loss) from continuing operations

 

$

2.42

 

 

$

2.18

 

 

 

 

 

$

5.80

 

 

 

 

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

 

 

-

 

 

 

(0.10

)

 

 

 

 

 

(0.01

)

 

 

 

 Net income (loss)

 

$

2.42

 

 

$

2.08

 

 

 

 

 

$

5.79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per share - diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net income (loss) from continuing operations

 

$

2.41

 

 

$

2.17

 

 

 

 

 

$

5.78

 

 

 

 

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

 

 

0.01

 

 

 

(0.10

)

 

 

 

 

 

(0.01

)

 

 

 

 Net income (loss)

 

$

2.42

 

 

$

2.07

 

 

 

 

 

$

5.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding - basic

 

 

20,024

 

 

 

20,024

 

 

 

 

 

 

20,016

 

 

 

 

Weighted-average shares outstanding - diluted

 

 

20,090

 

 

 

20,076

 

 

 

 

 

 

20,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 September 30, 2022.

 

 

 

 

 

 

 

6

 


 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

 

(in thousands)

 

(unaudited)

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 Cash and cash equivalents

 

$

453,682

 

 

$

314,974

 

 Accounts receivable, net

 

 

222,646

 

 

 

182,432

 

 Income taxes receivable

 

 

5,527

 

 

 

5,099

 

 Prepaid expenses

 

 

16,029

 

 

 

15,861

 

 Inventory

 

 

69,962

 

 

 

60,603

 

 Investment in equity securities

 

 

16,888

 

 

 

25,735

 

 Other current assets

 

 

5,790

 

 

 

6,701

 

 Assets held for sale

 

 

18,314

 

 

 

37,528

 

 Total current assets

 

 

808,838

 

 

 

648,933

 

Property, plant and equipment, net

 

 

283,906

 

 

 

356,274

 

Notes receivable

 

 

66,078

 

 

 

60,588

 

Restricted cash

 

 

79,757

 

 

 

79,561

 

Other long-term assets, net

 

 

48,636

 

 

 

54,152

 

 Total assets

 

$

1,287,215

 

 

$

1,199,508

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 Accounts payable

 

$

51,398

 

 

$

43,080

 

 Accrued expenses

 

 

107,972

 

 

 

108,610

 

 Income taxes payable

 

 

15,900

 

 

 

8,272

 

 Liabilities held for sale

 

 

3,666

 

 

 

5,607

 

 Total current liabilities

 

 

178,936

 

 

 

165,569

 

Decommissioning liabilities

 

 

144,781

 

 

 

190,380

 

Deferred income taxes

 

 

21,761

 

 

 

12,441

 

Other long-term liabilities

 

 

80,616

 

 

 

89,385

 

 Total liabilities

 

 

426,094

 

 

 

457,775

 

Total stockholders' equity

 

 

861,121

 

 

 

741,733

 

 Total liabilities and stockholders' equity

 

$

1,287,215

 

 

$

1,199,508

 

 

 

7

 


 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

 

2022

 

 

2022

 

Cash flows from operating activities

 

 

 

 

 

 

Net income

 

$

48,525

 

 

$

41,618

 

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

 

 

 

 

 

 

 Depreciation, depletion, amortization and accretion

 

 

20,508

 

 

 

23,346

 

 Reorganization items, net

 

 

-

 

 

 

-

 

 Other non-cash items

 

 

(5,807

)

 

 

(5,107

)

 Changes in operating assets and liabilities

 

 

(9,445

)

 

 

(26,703

)

 Net cash from operating activities

 

 

53,781

 

 

 

33,154

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 Payments for capital expenditures

 

 

(22,387

)

 

 

(9,217

)

 Proceeds from sales of assets

 

 

31,231

 

 

 

1,804

 

 Proceeds from sales of equity securities

 

 

-

 

 

 

6,001

 

 Net cash from investing activities

 

 

8,844

 

 

 

(1,412

)

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 Other

 

 

-

 

 

 

-

 

 Net cash from financing activities

 

 

-

 

 

 

-

 

 Effect of exchange rate changes on cash

 

 

-

 

 

 

-

 

Net change in cash, cash equivalents and restricted cash

 

 

62,625

 

 

 

31,742

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

470,814

 

 

 

439,072

 

Cash, cash equivalents and restricted cash at end of period

 

$

533,439

 

 

$

470,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 September 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

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

 

2022

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

U.S. land

 

 

 

 

 

 

 

 

 

 Rentals

 

$

39,673

 

 

$

43,791

 

 

$

25,627

 

 Well Services

 

 

9,808

 

 

 

4,151

 

 

 

6,638

 

Total U.S. land

 

 

49,481

 

 

 

47,942

 

 

 

32,265

 

 

 

 

 

 

 

 

 

 

 

U.S. offshore

 

 

 

 

 

 

 

 

 

 Rentals

 

 

37,829

 

 

 

36,331

 

 

 

28,997

 

 Well Services

 

 

23,609

 

 

 

32,569

 

 

 

22,756

 

Total U.S. offshore

 

 

61,438

 

 

 

68,900

 

 

 

51,753

 

 

 

 

 

 

 

 

 

 

 

International

 

 

 

 

 

 

 

 

 

 Rentals

 

 

27,055

 

 

 

23,607

 

 

 

21,593

 

 Well Services

 

 

84,313

 

 

 

84,191

 

 

 

72,972

 

Total International

 

 

111,368

 

 

 

107,798

 

 

 

94,565

 

Total Revenues

 

$

222,287

 

 

$

224,640

 

 

$

178,583

 

 

 

9

 


 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

SEGMENT HIGHLIGHTS

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

 

2022

 

 

2022

 

 

2021

 

Revenues

 

 

 

 

 

 

 

 

 

 Rentals

 

$

104,557

 

 

$

103,729

 

 

$

76,217

 

 Well Services

 

 

117,730

 

 

 

120,911

 

 

 

102,366

 

 Corporate and other

 

 

-

 

 

 

-

 

 

 

-

 

Total Revenues

 

$

222,287

 

 

$

224,640

 

 

$

178,583

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Operations

 

 

 

 

 

 

 

 

 

 Rentals

 

$

56,291

 

 

$

48,559

 

 

$

(6,046

)

 Well Services

 

 

26,249

 

 

 

33,147

 

 

 

(18,229

)

 Corporate and other

 

 

(16,509

)

 

 

(15,261

)

 

 

(19,706

)

Total Income (Loss) from Operations

 

$

66,031

 

 

$

66,445

 

 

$

(43,981

)

 

 

 

 

 

 

 

 

 

 

 Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 Rentals

 

$

64,141

 

 

$

61,115

 

 

$

35,595

 

 Well Services

 

 

25,179

 

 

 

25,400

 

 

 

8,894

 

 Corporate and other

 

 

(14,232

)

 

 

(12,470

)

 

 

(13,042

)

Total Adjusted EBITDA

 

$

75,088

 

 

$

74,045

 

 

$

31,447

 

 

 

 

 

 

 

 

 

 

 

 Adjusted EBITDA Margin

 

 

 

 

 

 

 

 

 

 Rentals

 

 

61

%

 

 

59

%

 

 

47

%

 Well Services

 

 

21

%

 

 

21

%

 

 

9

%

 Corporate and other

 

n/a

 

 

n/a

 

 

n/a

 

Total Adjusted EBITDA Margin

 

 

34

%

 

 

33

%

 

 

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

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

 

2022

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 Net income (loss) from continuing operations

 

$

48,508

 

 

$

43,562

 

 

$

(40,040

)

 Depreciation, depletion, amortization and accretion

 

 

20,508

 

 

 

23,346

 

 

 

59,208

 

 Interest income, net

 

 

(3,373

)

 

 

(1,459

)

 

 

(647

)

 Income taxes

 

 

14,058

 

 

 

10,871

 

 

 

(9,518

)

 Restructuring expenses

 

 

1,223

 

 

 

1,663

 

 

 

4,712

 

 Other (gains) and losses, net

 

 

(13,397

)

 

 

(18,013

)

 

 

(1,097

)

 Other (income) expense

 

 

6,838

 

 

 

13,471

 

 

 

6,224

 

 Other adjustments (1)

 

 

723

 

 

 

604

 

 

 

12,605

 

 Adjusted EBITDA

 

$

75,088

 

 

$

74,045

 

 

$

31,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.