Exhibit 99
 

Superior Energy Services, Inc. Announces Third Quarter 2002 Results

 

HARVEY, La.--(BUSINESS WIRE)--Nov. 6, 2002--Superior Energy Services, Inc. (NYSE: SPN) today announced results for the third quarter ended September 30, 2002. For the quarter, revenues were $107.2 million resulting in net income of $1.9 million or $0.03 diluted earnings per share, as compared to revenues of $128.6 million and net income of $16.3 million or $0.24 diluted earnings per share, exclusive of goodwill amortization, for the third quarter of 2001.

 

For the nine months ended September 30, 2002, revenues were $324.8 million and net income was $16.3 million or $0.22 diluted earnings per share, as compared to revenues of $329.5 million and net income before cumulative effect of change in accounting principle of $43.5 million or $0.62 diluted earnings per share, exclusive of goodwill amortization, for the nine months ended September 30, 2001.

 

President and CEO Terry Hall Comments

 

President and CEO Terry Hall commented, "As we previously announced, third quarter activity was impacted by four tropical weather systems, which shut down a significant part of our operations in September, effectively negating much of the earnings from the prior months during the quarter. In October, most of our businesses returned to pre-storm activity levels. In addition, we have seen incremental activity as a result of storm-related projects, particularly for liftboats. We expect the fourth quarter to be substantially better than the third quarter, assuming storm-related work continues throughout the period."

 

Well Intervention Group Segment

 

Third quarter revenues for the Well Intervention Group were $36.1 million, a 10% decrease from the second quarter of 2002. Activity decreased for most well intervention services, including well control, hydraulic workover and mechanical wireline services as compared to the second quarter of 2002. This was partially offset by increased activity for electric line, pumping and stimulation and plug and abandonment services.

 

Rental Tools Segment

 

Revenues for the Rental Tools segment were $29.4 million, unchanged as compared to the second quarter of 2002. Rentals for stabilizers and handling tools increased slightly relative to the second quarter of 2002, while drill pipe, on-site accommodations and other downhole related tools were relatively flat.

 

Marine Segment

 

Superior's marine revenues were $14.3 million, a 19% decrease as compared to the second quarter of 2002. Utilization was down across all classes as a result of weather. September utilization was 38%. By contrast, utilization in July was 66% and in August it was 73%.

 

 

Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended September 30, 2002
($ actual)
Class	Liftboats	Average Dayrate	Utilization
105'	8	$2,611	69.3%
120-135'	8	3,216	69.2%
145-155'	11	5,662	54.4%
160'-175'	6	6,474	56.0%
200'	4	8,629	55.6%
230'-245'	2	14,771	11.4%
250'	2	15,807	76.0%

Other Oilfield Services Segment

 

Revenues in this segment were $27.4 million, a 7% increase as compared to the second quarter of 2002 due primarily to increased activity for waste disposal, field management, and construction and fabrication projects.

 

The Company will host a conference call at 10 a.m. Central Time (11 a.m. Eastern 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 6447217. The replay is available beginning two hours after the call and ending November 11, 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 and Nine Months Ended September 30, 2002 and 2001
(in thousands, except earnings per share amounts)
(unaudited)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2002			2001(A)				2002			2001(A)
Revenues	$	107,213		$	128,606			$	324,769		$	329,501
Costs and expenses:
Cost of services		67,136			67,876				188,514			171,913
Depreciation and
amortization		10,295			8,966				30,273			23,864
General and administrative		21,279			20,265				63,918			51,991
Total costs and expenses		98,710			97,107				282,705			247,768
Income from operations		8,503			31,499				42,064			81,733
Other income (expense):
Interest expense		(5,557)			(6,035)				(16,287)			(14,581)
Interest income		105			431				430			1,483
Equity in income of
affiliates		113			-				258			-
Income before income taxes  and cumulative effect of change in principle
		3,164			25,895				26,465			68,635
Income taxes		1,218			10,616				10,189			28,140
Income before cumulative
effect of change in
accounting principle		1,946			15,279				16,276			40,495
Cumulative effect of change  in accounting principle, net  of income tax expense
		-			-				-			2,589
Net income	$	1,946		$	15,279			$	16,276		$	43,084
Basic earnings per share:  Earnings before cumulative effect of change in accounting principle
	$	0.03		$	0.22			$	0.22		$	0.59
Cumulative effect of change in accounting principle
		-			-				-			0.04
Earnings per share	$	0.03		$	0.22			$	0.22		$	0.63
Diluted earnings per share:
Earnings before cumulative
effect of change in
accounting principle	$	0.03		$	0.22			$	0.22		$	0.58
Cumulative effect of change
in accounting principle		-			-				-			0.04
Earnings per share	$	0.03		$	0.22			$	0.22		$	0.62
Weighted average common shares used in computing  earnings per share: Basic
		73,765			68,668				72,615			68,309
Diluted		74,543			69,379				73,634			69,460

---

 

(A)   Earnings per diluted share before cumulative effect of change in accounting principal, excluding goodwill amortization, net of taxes, was $0.24 and $0.62 for the three and nine months ended September 30, 2001, respectively (SFAS 142)
 

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
(in thousands)
	09/30/2002 (Unaudited)			12/31/2001 (Audited)
ASSETS
Current assets:
Cash and cash equivalents	$	4,666		$	3,769
Accounts receivable - net		96,499			109,835
Income taxes receivable		5,575			11,694
Escrowed funds		10,734			-
Prepaid insurance and other		14,821			10,181
Total current assets		132,295			135,479
Property, plant and equipment - net		403,932			345,878
Goodwill - net		156,716			148,729
Notes receivable		-			23,062
Investments in affiliates		12,756			-
Other assets - net		7,432			12,372
Total assets	$	713,131		$	665,520
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	18,861		$	34,843
Accrued expenses		33,861			26,841
Deferred income taxes		102			510
Current maturities of long-term debt		14,168			16,727
Total current liabilities		66,992			78,921
Deferred income taxes		63,850			47,390
Long-term debt		253,304			269,633
Total stockholders' equity		328,985			269,576
Total liabilities and stockholders'
equity	$	713,131		$	665,520

Superior Energy Services, Inc. and Subsidiaries
Segment Highlights
Three months ended September 30, 2002 and 2001, and June 30, 2002
(Unaudited)
(in thousands)
Revenue		September 2002			June 2002			September 2001
Well Intervention Group		$	36,115		$	40,186		$	52,179
Marine			14,326			17,760			21,351
Rental Tools			29,401			29,310			32,635
Other Oilfield Services			27,371			25,474			22,441
Total		$	107,213		$	112,730		$	128,606
Gross Profit
Well Intervention Group		$	11,701		$	17,904		$	23,972
Marine			2,870			6,799			10,970
Rental Tools			20,028			20,110			21,081
Other Oilfield Services			5,478			5,777			4,707
Total	$		40,077	$		50,590	$		60,730

Contact:

	Superior Energy Services Inc., Harvey
	Terence Hall, Robert Taylor, or Greg Rosenstein
	504/362-4321
	www.superiorenergy.com