8-K
0000886835falseNONE00008868352023-08-022023-08-02

 

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): August 02, 2023

 

 

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, Suite 2900

 

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 2, 2023, Superior Energy Services, Inc., a Delaware corporation, announced, among other things, its financial results for the fiscal quarter ended June 30, 2023 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 2, 2023

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 2, 2023

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/9dabbce1024c927a8846c086eedeba7e-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 2023 RESULTS AND CONFERENCE CALL

Houston, August 2, 2023 – Superior Energy Services, Inc. (the “Company”) filed its Form 10-Q for the period ending June 30, 2023. In accordance with the Company’s Shareholders Agreement, it will host a conference call with shareholders on August 3, 2023.

For the second quarter of 2023, the Company reported net income from continuing operations of $67.4 million, or $3.35 per diluted share, and revenue of $244.5 million. This compares to net income from continuing operations of $29.9 million or $1.49 per diluted share, and revenue of $220.1 million, for the first quarter of 2023. Net income from continuing operations for the second quarter of 2023 was favorably impacted by approximately $14.9 million in income tax benefits arising from reversals of uncertain tax positions related to foreign jurisdictions and adjustments to valuation allowances on foreign operations. Net income from continuing operations for the first quarter of 2023 was unfavorably impacted by the elimination of net operating losses of approximately $7.6 million.

 

The Company’s Adjusted EBITDA (a non-GAAP measure defined on page 4) was $92.5 million for the second quarter of 2023 compared to $72.8 million in the first quarter of 2023. Refer to pages 11 and 12 for a Reconciliation of Adjusted EBITDA to GAAP results.

 

Brian Moore, Chief Executive Officer, commented, “I’m pleased to report Superior’s strong financial performance for the second quarter of 2023 with Adjusted EBITDA of $92.5 million compared to $72.8 million in the first quarter of 2023. These results reflect our ongoing strategy to focus our sustainable and strong brand’s participation in the strengthening Gulf of Mexico and international offshore markets. With continued confidence in the longer-term outlook for global oil prices, our customers choose Superior for our responsive people, capabilities and desirable assets as they pursue evermore technically challenging targets in offshore markets. Our performance is also the culmination of consistent and disciplined capital investments over time, fleet optimization, and an engineering approach in the early stages of well planning with our customers, especially with our premium drill pipe business, enabling Superior to continue to deliver outstanding performance, both operationally and financially, in the markets where we are focused. By leveraging our strengths, we have positioned ourselves to take advantage of both near-term and longer-term market opportunities and will continue our strategy focused on free cash flow and shareholder returns.”


 

 

1

 


 

Second Quarter 2023 Geographic Breakdown

U.S. land revenue was $50.5 million in the second quarter of 2023, a 2% decrease compared to revenue of $51.5 million in the first quarter of 2023 and was driven primarily by modest declines in our bottom hole assembly accessory rentals.

U.S. offshore revenue was $60.9 million in the second quarter of 2023, an increase of 17% compared to revenue of $52.0 million in the first quarter of 2023. This change was primarily driven by our completion services business unit with some additional increases from our rental businesses.

International revenue was $133.0 million in the second quarter of 2023, an increase of 14% compared to revenue of $116.7 million in the first quarter of 2023 as rentals for premium drill pipe increased, as well as activity from our well control service line in the Well Services segment.

 

Second Quarter 2023 Segment Reporting

The Rentals segment revenue in the second quarter of 2023 was $112.4 million, a 3% increase compared to revenue of $108.8 million in the first quarter of 2023, driven by increases in international activity. Adjusted EBITDA was $70.7 million, an 8% increase over the first quarter of 2023. Adjusted EBITDA Margin (a non-GAAP measure defined on page 4) was 63%, a 5% increase from the first quarter of 2023. The increase in both Adjusted EBITDA and Adjusted EBITDA Margin for the second quarter of 2023 was driven by improved results from our premium drill pipe product line in international markets.

The Well Services segment revenue in the second quarter of 2023 was $132.1 million, a 19% increase compared to revenue of $111.3 million in the first quarter of 2023. Adjusted EBITDA for the second quarter of 2023 was $34.6 million with an Adjusted EBITDA Margin of 26%, as compared to Adjusted EBITDA of $19.9 million with an Adjusted EBITDA Margin of 18% in the first quarter of 2023. The increase in both Adjusted EBITDA and Adjusted EBITDA Margin for the second quarter of 2023 was driven by better than anticipated results from our well control and completion services business units.

 

Liquidity

As of June 30, 2023, the Company had cash, cash equivalents, and restricted cash of approximately $410.4 million and the availability remaining under our ABL Credit Facility was approximately $85.3 million, assuming continued compliance with the covenants under our ABL Credit Facility. We had no balances outstanding under the Credit Facility on June 30, 2023.

 

Total cash proceeds received during the second quarter of 2023 from the sale of non-core assets were $3.6 million compared to total cash proceeds received during the first quarter of 2023 of $11.6 million.

The Company remains focused on cash conversion. Free Cash Flow (a non-GAAP measure defined on page 4) for the second quarter of 2023 totaled $2.1 million compared to $55.2 million for the first quarter of 2023. Free Cash Flow during the second quarter of 2023 was negatively impacted by our payment of the $27.1 million use tax assessment levied against us by the Washington State Department of Revenue related to a discontinued business unit. Additionally, we incurred approximately $2.9 million in decommissioning costs associated with our oil and gas platform in the Gulf of Mexico. Refer to page 8 for a reconciliation of Free Cash Flow to Net Cash from Operating Activities.

 

2

 


 

Second quarter capital expenditures were $27.5 million. The Company expects total capital expenditures for 2023 to be approximately $80 to $90 million. Approximately 80% of total 2023 capital expenditures are targeted for the replacement of existing assets. Of the total capital expenditures, approximately 75% is expected to be invested in the Rentals segment.

 

2023 Guidance

 

In looking at full year guidance a couple of factors are important to note. First, as noted in our earlier commentary, our increase in earnings for the second quarter of 2023 was largely driven by our Well Services segment, which tends to be project oriented and more uneven than our Rentals segment. Secondly, earnings for the second half of 2023 are expected to be more heavily weighted to the fourth quarter of 2023, as similar to last year a significant amount of completion deliveries are scheduled for December 2023. Based on this, the Company’s full year 2023 guidance will continue to have a wide range. We currently expect revenue to come in at a range of $870 million to $930 million with Adjusted EBITDA in a range of $300 million to $340 million for 2023. The Company will provide updated guidance in our third quarter 2023 earnings release as we gain further clarity on the timing of activity.

 

Conference Call Information

The Company’s management team will host a conference call on Thursday, August 3, 2023, at 10:00 a.m. Eastern Time. The call will be available via live webcast in the “Events” section at ir.superiorenergy.com. To access via phone, participants can register for the call here, where they will be provided a phone number and access code. The call will be available for replay until August 3, 2024 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 Measures

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, accretion 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 11 and 12 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.

The Company is unable to provide a reconciliation of the forward-looking non-GAAP financial measure, Adjusted EBITDA, contained in this press release to its most directly comparable GAAP financial measure, net income, as 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 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.

 

 

4

 


 

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, acquisitions, 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 or other strategic partners, 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, 2022 and Form 10-Q’s for the quarters ended March 31 and June 30, 2023 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.

 

 

5

 


 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2023

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Rentals

 

$

112,411

 

 

$

108,821

 

 

$

103,729

 

 

$

221,232

 

 

$

192,485

 

 Well Services

 

 

132,062

 

 

 

111,316

 

 

 

120,911

 

 

 

243,378

 

 

 

230,085

 

 Total revenues

 

 

244,473

 

 

 

220,137

 

 

 

224,640

 

 

 

464,610

 

 

 

422,570

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Cost of revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Rentals

 

 

35,021

 

 

 

36,468

 

 

 

35,860

 

 

 

71,489

 

 

 

67,612

 

 Well Services

 

 

85,733

 

 

 

81,253

 

 

 

85,108

 

 

 

166,986

 

 

 

165,736

 

 Total cost of revenues

 

 

120,754

 

 

 

117,721

 

 

 

120,968

 

 

 

238,475

 

 

 

233,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Depreciation, depletion, amortization and accretion

 

 

20,621

 

 

 

20,139

 

 

 

23,346

 

 

 

40,760

 

 

 

57,431

 

 General and administrative expenses

 

 

31,177

 

 

 

30,990

 

 

 

30,231

 

 

 

62,167

 

 

 

62,249

 

 Restructuring expenses

 

 

-

 

 

 

1,983

 

 

 

1,663

 

 

 

1,983

 

 

 

3,218

 

 Other (gains) and losses, net

 

 

47

 

 

 

(1,398

)

 

 

(18,013

)

 

 

(1,351

)

 

 

(16,866

)

 Income from operations

 

 

71,874

 

 

 

50,702

 

 

 

66,445

 

 

 

122,576

 

 

 

83,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Interest income, net

 

 

6,513

 

 

 

5,439

 

 

 

1,459

 

 

 

11,952

 

 

 

2,638

 

 Other income (expense)

 

 

(1,836

)

 

 

(2,152

)

 

 

(13,471

)

 

 

(3,988

)

 

 

476

 

 Income from continuing operations before income taxes

 

 

76,551

 

 

 

53,989

 

 

 

54,433

 

 

 

130,540

 

 

 

86,304

 

 Income tax expense

 

 

(9,147

)

 

 

(24,065

)

 

 

(10,871

)

 

 

(33,212

)

 

 

(18,755

)

 Net income from continuing operations

 

 

67,404

 

 

 

29,924

 

 

 

43,562

 

 

 

97,328

 

 

 

67,549

 

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

 

 

(9

)

 

 

289

 

 

 

(1,944

)

 

 

280

 

 

 

(205

)

 Net income

 

$

67,395

 

 

$

30,213

 

 

$

41,618

 

 

$

97,608

 

 

$

67,344

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Income (loss) per share - basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net income from continuing operations

 

$

3.35

 

 

$

1.49

 

 

$

2.18

 

 

$

4.84

 

 

$

3.38

 

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

 

 

-

 

 

 

0.01

 

 

 

(0.10

)

 

 

0.01

 

 

 

(0.01

)

 Net income

 

$

3.35

 

 

$

1.50

 

 

$

2.08

 

 

$

4.85

 

 

$

3.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Income (loss) per share - diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net income from continuing operations

 

$

3.35

 

 

$

1.49

 

 

$

2.17

 

 

$

4.83

 

 

$

3.37

 

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

 

 

-

 

 

 

0.01

 

 

 

(0.10

)

 

 

0.02

 

 

 

(0.01

)

 Net income

 

$

3.35

 

 

$

1.50

 

 

$

2.07

 

 

$

4.85

 

 

$

3.36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Weighted-average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Basic

 

 

20,126

 

 

 

20,107

 

 

 

20,024

 

 

 

20,116

 

 

 

20,011

 

 Diluted

 

 

20,143

 

 

 

20,131

 

 

 

20,076

 

 

 

20,136

 

 

 

20,065

 

 

6

 


 

SUPERIOR ENERGY SERVICES, INC.

 

CONSOLIDATED BALANCE SHEETS

 

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 ASSETS

 

 

 

 

 

 

 Current assets

 

 

 

 

 

 

 Cash and cash equivalents

 

$

330,129

 

 

$

258,999

 

 Accounts receivable, net

 

 

249,479

 

 

 

249,808

 

 Income taxes receivable

 

 

4,541

 

 

 

6,665

 

 Prepaid expenses

 

 

19,291

 

 

 

17,299

 

 Inventory

 

 

82,897

 

 

 

65,587

 

 Other current assets

 

 

6,104

 

 

 

6,276

 

 Assets held for sale

 

 

1,369

 

 

 

11,978

 

 Total current assets

 

 

693,810

 

 

 

616,612

 

 Property, plant and equipment, net

 

 

298,567

 

 

 

282,376

 

 Note receivable

 

 

71,581

 

 

 

69,679

 

 Restricted cash

 

 

80,318

 

 

 

80,108

 

 Deferred tax assets

 

 

73,362

 

 

 

97,492

 

 Other assets, net

 

 

42,978

 

 

 

44,745

 

 Total assets

 

$

1,260,616

 

 

$

1,191,012

 

 

 

 

 

 

 

 LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 Current liabilities:

 

 

 

 

 

 

 Accounts payable

 

$

58,865

 

 

$

31,570

 

 Accrued expenses

 

 

100,416

 

 

 

116,575

 

 Income taxes payable

 

 

11,687

 

 

 

11,682

 

 Decommissioning liability

 

 

26,329

 

 

 

9,770

 

 Liabilities held for sale

 

 

3,090

 

 

 

3,349

 

 Total current liabilities

 

 

200,387

 

 

 

172,946

 

 Decommissioning liability

 

 

133,591

 

 

 

150,901

 

 Other liabilities

 

 

45,186

 

 

 

84,281

 

 Total liabilities

 

 

379,164

 

 

 

408,128

 

 Total stockholders' equity

 

 

881,452

 

 

 

782,884

 

 Total liabilities and stockholders' equity

 

$

1,260,616

 

 

$

1,191,012

 

 

7

 


 

SUPERIOR ENERGY SERVICES, INC.

 

STATEMENTS OF CASH FLOWS

 

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2023

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net income

 

$

67,395

 

 

$

30,213

 

 

$

41,618

 

 

$

97,608

 

 

$

67,344

 

 Adjustments to reconcile net income to net cash from operating activities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 Depreciation, depletion, amortization and accretion

 

 

20,621

 

 

 

20,139

 

 

 

23,346

 

 

 

40,760

 

 

 

57,431

 

 Other non-cash items

 

 

8,392

 

 

 

14,399

 

 

 

(5,107

)

 

 

22,791

 

 

 

(22,358

)

 Washington State Tax Payment

 

 

(27,068

)

 

 

-

 

 

 

-

 

 

 

(27,068

)

 

 

-

 

 Decommissioning Costs

 

 

(2,878

)

 

 

-

 

 

 

-

 

 

 

(2,878

)

 

 

-

 

 Changes in operating assets and liabilities

 

 

(36,780

)

 

 

8,502

 

 

 

(26,703

)

 

 

(28,278

)

 

 

(34,173

)

 Net cash from operating activities

 

 

29,682

 

 

 

73,253

 

 

 

33,154

 

 

 

102,935

 

 

 

68,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Payments for capital expenditures

 

 

(27,540

)

 

 

(18,086

)

 

 

(9,217

)

 

 

(45,626

)

 

 

(20,514

)

 Proceeds from sales of assets

 

 

3,578

 

 

 

11,569

 

 

 

1,804

 

 

 

15,147

 

 

 

15,183

 

 Proceeds from sales of equity securities

 

 

-

 

 

 

-

 

 

 

6,001

 

 

 

-

 

 

 

13,366

 

 Net cash from investing activities

 

 

(23,962

)

 

 

(6,517

)

 

 

(1,412

)

 

 

(30,479

)

 

 

8,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Distributions to Shareholders

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 Other

 

 

-

 

 

 

(1,116

)

 

 

-

 

 

 

(1,116

)

 

 

-

 

 Net cash from financing activities

 

 

-

 

 

 

(1,116

)

 

 

-

 

 

 

(1,116

)

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net change in cash, cash equivalents and restricted cash

 

 

5,720

 

 

 

65,620

 

 

 

31,742

 

 

 

71,340

 

 

 

76,279

 

 Cash, cash equivalents and restricted cash at beginning of period

 

 

404,727

 

 

 

339,107

 

 

 

439,072

 

 

 

339,107

 

 

 

394,535

 

 Cash, cash equivalents and restricted cash at end of period

 

$

410,447

 

 

$

404,727

 

 

$

470,814

 

 

$

410,447

 

 

$

470,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Reconciliation of Free Cash Flow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Net cash from operating activities

 

$

29,682

 

 

$

73,253

 

 

$

33,154

 

 

$

102,935

 

 

$

68,244

 

 Payments for capital expenditures

 

 

(27,540

)

 

 

(18,086

)

 

 

(9,217

)

 

 

(45,626

)

 

 

(20,514

)

 Free Cash Flow

 

$

2,142

 

 

$

55,167

 

 

$

23,937

 

 

$

57,309

 

 

$

47,730

 

 

8

 


 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

REVENUE BY GEOGRAPHIC REGION BY SEGMENT

 

(in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

March 31,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2023

 

 

2023

 

 

 

2022

 

 

2023

 

 

 

2022

 

 U.S. land

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Rentals

 

$

44,730

 

 

$

45,133

 

 

$

43,791

 

 

$

89,863

 

 

$

77,753

 

 Well Services

 

 

5,806

 

 

 

6,355

 

 

 

4,151

 

 

 

12,161

 

 

 

8,699

 

 Total U.S. land

 

 

50,536

 

 

 

51,488

 

 

 

47,942

 

 

 

102,024

 

 

 

86,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 U.S. offshore

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Rentals

 

 

37,516

 

 

 

35,670

 

 

 

36,331

 

 

 

73,186

 

 

 

69,084

 

 Well Services

 

 

23,405

 

 

 

16,321

 

 

 

32,569

 

 

 

39,726

 

 

 

60,890

 

 Total U.S. offshore

 

 

60,921

 

 

 

51,991

 

 

 

68,900

 

 

 

112,912

 

 

 

129,974

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 International

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Rentals

 

 

30,165

 

 

$

28,018

 

 

 

23,607

 

 

 

58,183

 

 

 

45,648

 

 Well Services

 

 

102,851

 

 

 

88,640

 

 

 

84,191

 

 

 

191,491

 

 

 

160,496

 

 Total International

 

 

133,016

 

 

 

116,658

 

 

 

107,798

 

 

 

249,674

 

 

 

206,144

 

 Total Revenues

 

$

244,473

 

 

$

220,137

 

 

$

224,640

 

 

$

464,610

 

 

$

422,570

 

 

9

 


 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

 

SEGMENT HIGHLIGHTS

 

(in thousands, unaudited)