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 6, 2001
SUPERIOR ENERGY SERVICES, INC.
(Exact name of registrant as
specified in its charter)
Delaware |
0-20310 | 75-2379388 |
(State or other jurisdiction |
(Commission File Number) |
(IRS Employer Identification No.) |
|
1105 Peters Road, Harvey, Louisiana |
70058
|
|
(504) 362-4321
(Registrant's telephone number, including area code)
Item 5. Other Events.
On November 6, 2001, Superior Energy Services, Inc. issued the press release attached hereto as Exhibit 99.
Item 7. Financial Statements and Exhibits.
(b) Exhibits.
|
99 |
Press release issued by Superior Energy
Services, Inc. on November 6, 2001 announcing |
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 hereunto duly authorized.
| SUPERIOR ENERGY SERVICES, INC. | |||
| By: /s/Robert Taylor | |||
|
Robert S. Taylor |
|||
|
Chief Financial Officer |
|||
Dated: November 6, 2001
Exhibit 99
Superior Energy Services Announces Record Third Quarter Results
HARVEY, La.--(BUSINESS WIRE)--Nov. 6, 2001--Superior Energy Services, Inc. (NYSE: SPN) today announced results for the third quarter ended September 30, 2001. For the period, revenues were a record $128.6 million resulting in record net income of $15.3 million, or $0.22 diluted earnings per share, as compared to revenue of $71.3 million and net income of $6.0 million, or $0.09 diluted earnings per share for the third quarter of 2000.
Well Intervention Group Segment (including mechanical wireline)
Revenue for Superior's Well Intervention Group was $52.2 million, 25% higher than the second quarter of 2001. Demand increased for mechanical wireline, electric line and well control services. The group benefited from additional activity related to the Wild Well Control acquisition and from 21 coiled tubing units added through the Power Offshore/Reeled Tubing acquisition. International Snubbing Services ("ISS"), the Company's hydraulic workover and snubbing subsidiary, renewed its contract with ESSO in Australia. The two-year contract calls for ISS to provide ESSO with hydraulic workover services and equipment. ISS has provided its equipment and rigs to ESSO in that market for 13 consecutive years.
Rental Tools Segment
Revenue for the Rental Tools segment was $32.6 million, a 12% increase over the second quarter of 2001. The segment was driven by increased rentals of drill pipe and accessories, gravel packs, high-pressure connecting iron and on-site accommodations. Increased demand in the deepwater Gulf of Mexico market area offset decreased activity in the shallow water rental market. Revenue from Canada was bolstered by the acquisition of Workstrings, LLC, in the third quarter. Workstrings provides drill pipe and landing strings to the eastern deepwater Canadian drilling market area as well as to customers in the Gulf of Mexico.
Marine Segment
Superior's marine revenue increased 16% sequentially over the second quarter to $21.4 million. Dayrates and utilization for most of the Company's smaller liftboat classes increased as compared to the second quarter. The gross margin was impacted by reduced dayrates and utilization for the Company's four, 200-ft. class liftboats and its one 250-ft. class liftboat as well as higher maintenance costs and U.S. Coast Guard inspections.
Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended September 30, 2001
($ actual)
Class Liftboats Average Dayrate Utilization
------ --------- --------------- -----------
105' 8 $ 3,140 86.1%
120-135' 9 3,584 82.9%
145-155' 11 6,374 81.9%
160' 3 8,681 88.8%
170' 3 9,641 71.0%
200' 4 10,908 83.2%
250' 1 25,975 64.1%
Superior expects to take delivery of a new 230-ft. class liftboat by November 15. The liftboat, named the Superior Champion, will be able to operate in up to 180 ft. of water, has an open deck area of 6,500 square feet and a deck load of more than 1 million pounds, and is equipped with two cranes, including one capable of 200-ton lifts. The Champion will house up to 43 people.
Field Management Segment
Field Management revenue was $16.5 million, a 14% increase over the second quarter. Higher revenue and improved gross margin are attributable to increased activity for offshore construction and fabrication services.
Environmental and Other Segment
Revenue from this segment was $6.0 million, the same revenue recorded in the prior quarter. An increase in maintenance cleaning and offshore services was offset by lower dockside services revenue, which was affected by weather and reduced drilling activity.
President and CEO Terry Hall Comments
President and CEO Terry Hall commented, "Our business grew despite changing market conditions and poor weather. We benefited from increased demand in our rental tools segment due in part to our focus on the deepwater Gulf of Mexico and eastern Canada market areas, strong dayrates and utilization for our smaller liftboat classes, and continued market acceptance of our bundling of well intervention services."
"Although short-term forecasts for Gulf of Mexico activity remain uncertain, we believe we are well positioned in long-term growth markets - the shallow water production and deepwater drilling market areas of the Gulf of Mexico. We have built a strong market presence in these areas because of our bundling of well intervention services, our cost-effective solutions and our diverse inventory of rental tools and accessories."
The Company will host a conference call at 10 a.m. Central Time today. The call can be accessed from Superior's website at www.superiorenergy.com, or by telephone at 800/763-5557. The replay telephone number is 800/642-1687 and the replay passcode is 2124928.
Superior Energy Services, Inc. provides a broad range of specialized oilfield services and equipment primarily to major and independent oil and gas companies engaged in the exploration, production and development of oil and natural gas properties offshore in the Gulf of Mexico and throughout the Gulf Coast region. These services and equipment include the rental of liftboats, rental of specialized oilfield equipment, electric and mechanical wireline services, well plug and abandonment services, coiled tubing services and engineering services. Additional services provided include contract operating and supplemental labor, offshore construction and maintenance services, offshore and dockside environmental cleaning services, the manufacture and sale of drilling instrumentation and the manufacture and sale of oil spill containment equipment.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which involve known and unknown risks, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: volatility of the oil and gas industry, including the level of exploration, production and development activity; risks associated with the Company's rapid growth; changes in competitive factors and other material factors that are described from time to time in the Company's filings with the Securities and Exchange Commission. Actual events, circumstances, effects and results may be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Consequently, the forward-looking statements contained herein should not be regarded as representations by Superior or any other person that the projected outcomes can or will be achieved.
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(in thousands, except earnings per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- -------------------
2001 2000 2001 2000
---------- --------- --------- ---------
Revenues $ 128,606 $ 71,251 $ 329,501 $ 176,117
---------- --------- --------- ---------
Costs and expenses:
Cost of services 67,876 40,203 171,913 101,896
Depreciation and amortization 8,966 6,302 23,864 15,974
General and administrative 20,265 11,842 51,991 30,826
---------- --------- --------- ---------
Total costs and expenses 97,107 58,347 247,768 148,696
---------- --------- --------- ---------
Income from operations 31,499 12,904 81,733 27,421
Other income (expense):
Interest expense (6,035) (3,145) (14,581) (9,133)
Interest income 431 561 1,483 1,395
---------- --------- --------- ---------
Income before income taxes and
cumulative effect of change in
accounting principle 25,895 10,320 68,635 19,683
Income taxes 10,616 4,335 28,140 8,267
---------- --------- --------- ---------
Income before cumulative effect
of change in accounting
principle 15,279 5,985 40,495 11,416
Cumulative effect of change
in accounting principle,
net of income tax expense - - 2,589 -
---------- --------- --------- ---------
Net income $ 15,279 $ 5,985 $ 43,084 $ 11,416
========== ========= ========= =========
Basic earnings per share:
Earnings before cumulative effect
of change in
accounting principle $ 0.22 $ 0.09 $ 0.59 $ 0.18
Cumulative change in accounting
principle - - 0.04 -
---------- --------- --------- ---------
Earnings per share $ 0.22 $ 0.09 $ 0.63 $ 0.18
========== ========= ========= =========
Diluted earnings per share:
Earnings before cumulative
effect of change in
accounting principles $ 0.22 $ 0.09 $ 0.58 $ 0.18
Cumulative change in accounting
principle - - 0.04 -
---------- --------- --------- ---------
Earnings per share $ 0.22 $ 0.09 $ 0.62 $ 0.18
========== ========= ========= =========
Weighted average common shares
used in computing earnings
per share:
Basic 68,668 67,616 68,309 64,052
========== ========= ========= =========
Diluted 69,379 68,672 69,460 64,972
========== ========= ========= =========
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
(in thousands)
09/30/01 12/31/00
(Unaudited) (Audited)
--------- -------
ASSETS
Current assets:
Cash and cash equivalents $ 10,871 $ 4,254
Accounts receivable - net 119,213 74,010
Deferred tax asset 1,590 3,506
Prepaid insurance and other 9,680 7,000
--------- ---------
Total current assets 141,354 88,770
Property, plant and equipment - net 330,865 202,498
Goodwill - net 149,839 114,650
Notes receivable 22,777 19,213
Other assets - net 10,981 5,545
--------- ---------
Total assets $ 655,816 $ 430,676
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 30,698 $ 22,670
Accrued expenses 35,101 14,660
Income taxes payable 9,794 -
Current maturities of long-term debt 10,111 16,402
--------- ---------
Total current liabilities 85,704 53,732
--------- ---------
Deferred income taxes 34,760 24,304
Long-term debt 280,543 146,393
Total stockholders' equity 254,809 206,247
--------- ---------
Total liabilities and stockholders' equity $ 655,816 $ 430,676
========= =========
Superior Energy Services, Inc.
Segment Highlights
Three months ended September 30, 2001 and 2000, and June 30, 2001
(Unaudited)
($ in thousands)
Revenue September June September
2001 2001 2000
--------- ------ ---------
Well Intervention Group $52,179 $41,604 $24,477
Marine 21,351 18,483 10,074
Rental Tools 32,635 29,141 21,485
Field Management 16,466 14,433 9,989
Environmental & Other 5,975 5,978 5,226
-------- -------- -------
Total $128,606 $109,639 $71,251
Gross Profit
Well Intervention Group $23,972 $20,002 $9,298
Marine 10,970 10,600 4,690
Rental Tools 21,081 18,580 14,097
Field Management 2,197 1,892 1,077
Environmental & Other 2,510 2,846 1,886
------- ------- -------
Total $60,730 $53,920 $31,048
Contact:
Superior Energy Services Inc., Harvey
Terence Hall, 504/362-4321
or
Robert Taylor, 504/362-4321
or
Greg Rosenstein, 504/362-4321