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) February 28, 2002
SUPERIOR ENERGY SERVICES, INC.
(Exact name of registrant as
specified in its charter)
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Delaware |
0-20310 | 75-2379388 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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1105 Peters Road, Harvey, Louisiana |
70058 | |
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(Address of principal executive offices) |
(Zip Code) | |
(504) 362-4321
(Registrant's telephone number, including area code)
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Item 5. |
Other Events. |
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| On February 28, 2002, Superior Energy Services, Inc. issued the press release attached hereto as | |
| Exhibit 99. | |
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Item 7. |
Financial Statements and Exhibits. | |
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(b) |
Exhibits. | |
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99 | Press release issued by Superior Energy Services, Inc. on February 28, 2002 announcing earnings for the fourth quarter ended December 31, 2001. |
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. | |
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| By: /s/Robert Taylor | |
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Robert S. Taylor |
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Chief Financial Officer |
Dated: February 28, 2002
4:
Exhibit 99
Superior Energy Services Announces Fourth Quarter and Record Year 2001 Results
HARVEY, La.--(BUSINESS WIRE)--Feb. 28, 2002--Superior Energy Services, Inc. (NYSE: - - SPN) today announced results for the fourth quarter ended December 31, 2001. For the quarter, revenues were $119.5 million resulting in net income from operations of $10.7 million or $0.15 diluted earnings per share, as compared to revenue of $81.4 million and net income from operations of $8.5 million or $0.12 diluted earnings per share for the fourth quarter of 2000.
For the year ended December 31, 2001, the Company posted record revenues of $449.0 million and record net income from operations of $51.2 million or $0.73 diluted earnings per share, as compared to revenues of $257.5 million and net income from operations of $19.9 million or $0.30 diluted earnings per share for the same period a year ago.
Well Intervention Group Segment (including mechanical wireline)
Fourth quarter revenues for the Well Intervention Group were $45.4 million, a 13% decrease from the third quarter of 2001. Activity levels remained strong for hydraulic workover, snubbing and non-discretionary services such as mechanical wireline and rig-less plug and abandonments. This was offset by lower demand for coiled tubing, electric line and well control services.
Rental Tools Segment
Revenues for the Rental Tools segment were $32.6 million, approximately the same as the third quarter of 2001. Rentals of drill pipe and accessories, gravel packs and high-pressure connecting iron to customers in the deepwater Gulf of Mexico were key drivers during the fourth quarter. The segment benefited from additional rentals related to the third quarter acquisition of Workstrings, LLC, which provides drill pipe and landing strings to customers in the Gulf of Mexico and eastern deepwater Canadian drilling market areas.
Marine Segment
Superior's marine revenues decreased 13% as compared to the third quarter to $18.6 million. Utilization decreased for most of the Company's liftboat classes as activity levels were impacted by weaker demand and seasonal weather-related factors. This was offset by additional revenues generated by the Company's 230-ft. class liftboat, the Superior Champion, which was added to the fleet in mid-November. The Superior Champion has been contracted for the full year 2002 supporting a multi-well well servicing project.
Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended December 31, 2001
($ actual)
Class Liftboats Average Dayrate Utilization
- ---------- --------- --------------- -----------
105' 8 $ 2,961 66.2%
120-135' 9 3,190 64.5%
145-155' 11 6,459 74.6%
160'-175' 6 8,768 63.8%
200' 4 11,687 62.5%
230'(1) 1 15,882 53.1%
250' 1 20,546 89.1%
(1) 230-ft. class liftboat entered fleet in mid-November 2001.
Field Management Segment
Field Management revenues were $17.3 million, a 5% increase over the third quarter. This segment benefited from increased offshore construction and fabrication services. Contract operations were relatively flat versus the third quarter.
Environmental and Other Segment
Revenues from this segment were $5.7 million, a decrease of 5% as compared to the prior quarter. Demand diminished slightly for maintenance cleaning, offshore and dockside services, which were impacted by reduced drilling activity.
President and CEO Terry Hall Comments
President and CEO Terry Hall commented, "Decreasing Gulf of Mexico activity levels impacted several aspects of our business as the fourth quarter progressed. The largest impact was on discretionary services and rental tool businesses with exposure to the shallow water Gulf of Mexico and certain land market areas. Our liftboats, non-discretionary services such as mechanical wireline and rig-less plug and abandonment, and deepwater rental tool businesses were not as adversely impacted, but did show flat or slightly lower results. We anticipate the trend of lower Gulf of Mexico activity levels to continue through at least the first half of 2002."
The Company will host a conference call at 10:30 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 3092683. The replay is available beginning two hours after the call and ending March 5, 2002.
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 Months and Years Ended December 31, 2001 and 2000
(in thousands, except earnings per share amounts)
Three Months Ended Year Ended
December 31, December 31,
------------------- -------------------
2001 2000 2001 2000
-------- -------- -------- --------
Revenues $119,541 $ 81,385 $449,042 $257,502
-------- -------- -------- --------
Costs and expenses:
Cost of services 65,442 45,705 237,355 147,601
Depreciation and
amortization 9,582 6,281 33,446 22,255
General and
administrative 21,297 13,461 73,288 44,287
-------- -------- -------- --------
Total costs and
expenses 96,321 65,447 344,089 214,143
-------- -------- -------- --------
Income from operations 23,220 15,938 104,953 43,359
Other income (expense):
Interest expense (5,506) (2,945) (20,087) (12,078)
Interest income 409 503 1,892 1,898
-------- -------- -------- --------
Income before income
taxes, extraordinary
loss and cumulative
effect of change in
accounting principle 18,123 13,496 86,758 33,179
Income taxes 7,431 5,031 35,571 13,298
-------- -------- -------- --------
Income before
extraordinary loss and
cumulative effect of
change in accounting
principle 10,692 8,465 51,187 19,881
Extraordinary loss, net
of income tax benefit -- (1,557) -- (1,557)
Cumulative effect of
change in accounting
principle, net of
income tax expense -- -- 2,589 --
-------- -------- -------- --------
Net income $ 10,692 $ 6,908 $ 53,776 $ 18,324
======== ======== ======== ========
Basic earnings per share:
Earnings before
extraordinary loss and
cumulative effect
of change in
accounting principle $ 0.15 $ 0.12 $ 0.74 $ 0.30
Extraordinary loss -- (0.02) -- (0.02)
Cumulative change in
accounting principle -- -- 0.04 --
-------- -------- -------- --------
Earnings per share $ 0.15 $ 0.10 $ 0.78 $ 0.28
======== ======== ======== ========
Diluted earnings
per share:
Earnings before
extraordinary loss and
cumulative effect of
change in accounting
principle $ 0.15 $ 0.12 $ 0.73 $ 0.30
Extraordinary loss -- (0.02) -- (0.02)
Cumulative change in
accounting principle -- -- 0.04 --
-------- -------- -------- --------
Earnings per share $ 0.15 $ 0.10 $ 0.77 $ 0.28
======== ======== ======== ========
Weighted average common
shares used in computing
earnings per share:
Basic 69,246 67,787 68,545 64,991
======== ======== ======== ========
Diluted 69,895 68,743 69,592 65,921
======== ======== ======== ========
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2001 AND 2000
(in thousands)
12/31/2001 12/31/2000
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 3,769 $ 4,254
Accounts receivable - net 109,835 74,010
Deferred income taxes 975 3,506
Income taxes receivable 6,428 48
Prepaid insurance and other 10,181 6,952
-------- --------
Total current assets 131,188 88,770
Property, plant and equipment - net 345,878 202,498
Goodwill - net 148,729 114,650
Notes receivable 23,062 19,213
Other assets - net 12,372 5,545
-------- --------
Total assets $661,229 $430,676
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 34,843 $ 22,670
Accrued expenses 26,841 14,660
Current maturities of long-term debt 16,727 16,402
-------- --------
Total current liabilities 78,411 53,732
-------- --------
Deferred income taxes 43,609 24,304
Long-term debt 269,633 146,393
Total stockholders' equity 269,576 206,247
-------- --------
Total liabilities and
stockholders' equity $661,229 $430,676
======== ========
Superior Energy Services, Inc. and Subsidiaries
Segment Highlights
Three months ended December 31, 2001 and 2000, and September 30, 2001
(Unaudited)
(in thousands)
Revenue December 2001 September 2001 December 2000
------------- -------------- -------------
Well Intervention Group $45,374 $52,179 $27,760
Marine 18,565 21,351 11,269
Rental Tools 32,627 32,635 25,526
Field Management 17,288 16,466 11,688
Environmental & Other 5,687 5,975 5,142
------------- -------------- -------------
Total $119,541 $128,606 $81,385
Gross Profit
Well Intervention Group $17,688 $23,972 $10,687
Marine 8,506 10,970 5,759
Rental Tools 23,575 21,081 16,122
Field Management 1,990 2,197 1,260
Environmental & Other 2,340 2,510 1,852
------------- -------------- -------------
Total $54,099 $60,730 $35,680
Contact:
Superior Energy Services Inc., Harvey
Terence Hall or Greg Rosenstein, 504/362-4321