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 27, 2003


SUPERIOR ENERGY SERVICES, INC.
(Exact name of registrant as specified in its charter)
 

Delaware	0-20310			75-2379388
(State or other jurisdiction	(Commission			(IRS Employer
of incorporation)	File Number)			Identification No.)
1105 Peters Road, Harvey, Louisiana				70058
(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.

            On February 27, 2003, Superior Energy Services, Inc. issued the press release attached hereto as Exhibit 99.

 

Item 7.		Financial Statements and Exhibits.
	(a)	Exhibits.
		99	Press release issued by Superior Energy Services, Inc. on February 27, 2003 announcing results for the fourth quarter ended December 31, 2002.

 

 
 

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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 S. Taylor
		Robert S. Taylor
		Chief Financial Officer
Dated: February 27, 2003

 

 

 

Exhibit 99
 

Superior Energy Services, Inc. Announces Fourth Quarter 2002 Results
 
HARVEY, La.--(BUSINESS WIRE)--Feb. 27, 2003--Superior Energy Services, Inc. (NYSE: SPN) today announced results for the fourth quarter ended December 31, 2002. For the quarter, revenues were $118.4 million resulting in net income of $5.6 million or $0.08 diluted earnings per share, as compared to revenues of $119.5 million and net income of $11.8 million or $0.17 diluted earnings per share, exclusive of goodwill amortization, for the fourth quarter of 2001.

For the year ended December 31, 2002, revenues were $443.1 million and net income was $21.9 million or $0.30 diluted earnings per share, as compared to revenues of $449.0 million and net income before cumulative effect of change in accounting principle of $55.4 million or $0.79 diluted earnings per share, exclusive of goodwill amortization, for the year ended December 31, 2001.

President and CEO Terry Hall Comments

President and CEO Terry Hall commented, "After a slow start to the fourth quarter due to tropical weather systems, our marine services group benefited from work created by those same systems. Activity in our well intervention group was mixed, with some services benefiting from storm-related opportunities. Although most storm-related work was completed by year-end, liftboat utilization during the first two months of the first quarter has been slightly higher than what we typically experience at this time of year. In addition, Gulf of Mexico activity is moderately increasing for certain well intervention services and rental tools. Although it is too early in the year to determine if the improving market conditions we're seeing will be sustained, we remain optimistic that activity and utilization will increase in 2003, allowing us to benefit from our increased asset base and operational leverage."

Well Intervention Group Segment

Fourth quarter revenues for the Well Intervention Group were $36.1 million, unchanged from the third quarter of 2002. Activity increased in mechanical wireline and pumping and stimulation, which was offset by decreased activity in electric line and plug and abandonment services.

Rental Tools Segment

Revenues for the Rental Tools segment were $33.4 million, a 14% increase as compared to the third quarter of 2002. Rentals of drill pipe increased sharply due to additional demand in the deepwater Gulf of Mexico. In addition, rentals of on-site accommodations and ancillary items increased.

Marine Segment

Superior's marine revenues were $21.2 million, a 48% increase as compared to the third quarter of 2002. Dayrates and utilization increased across all classes as the marine segment posted its best quarter of the year in terms of revenue and EBITDA (earnings before interest, taxes, depreciation and amortization). The Company's 200-ft. class liftboat in Venezuela was idle most of the quarter due to the strike-led activity decline.

In December, the Company took delivery of the 245-foot class Superior Gale, an ABS-classed, U.S. Coast Guard inspected vessel equipped with a 250-ton crane, a useable deck space of approximately 8,400 square feet and accommodations for up to 46 people. Superior now owns five liftboats with leg lengths of 230-ft. and greater.

 

Liftboat Average Dayrates and Utilization by Class Size Three Months Ended December 31, 2002 ($ actual)
Class	Liftboats	Average Dayrate	Utilization
--------	---------	---------------	-----------
105'	8	$3,234	87.6%
120-135'	8	3,527	76.4%
145-155'	11	5,838	63.8%
160'-175'	6	7,725	90.9%
200'	3	8,875	75.4%
230'-245'	3	12,652	93.5%
250'	2	18,691	88.0%

Other Oilfield Services Segment

Revenues in this segment were $27.7 million, a 1% increase as compared to the third quarter of 2002 due primarily to increased activity for waste disposal and field management offset by seasonal decreases in 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 the following link: www.corporate-ir.net/ireye/ir_site.zhtml?ticker=SPN&script=1010&item_id=710593 or by telephone at 800-763-5557. The replay telephone number is 800-642-1687 (available 2 hours after call and ending March 5, 2003) and the replay passcode is 8047421.

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 Year Ended December 31, 2002 and 2001 (in thousands, except earnings per share amounts)
(unaudited)
	Three Months Ended December 31,				Year Ended December 31,
	----------------------				-------------------
	2002		2001(A)		2002		2001(A)
	-----------		---------		---------		--------
Revenues	$118,378		$119,541		$443,147		$449,042
	-----------		---------		---------		--------
Costs and expenses:
Cost of services	69,820		65,442		258,334		237,355
Depreciation and
amortization	11,322		9,582		41,595		33,446
General and
administrative	22,279		21,297		86,197		73,288
	-----------		---------		---------		--------
Total costs and
expenses	103,421		96,321		386,126		344,089
	-----------		---------		---------		--------
Income from operations	14,957		23,220		57,021		104,953
Other income (expense):
Interest expense	(5,597)		(5,506)		(21,884)		(20,087)
Interest income	100		409		530		1,892
Equity in loss of
affiliates	(338)		-		(80)		-
	-----------		---------		---------		--------
Income before income
taxes and cumulative
effect of change in
accounting principle	9,122		18,123		35,587		86,758
Income taxes	3,512		7,431		13,701		35,571
	-----------		---------		---------		--------
Income before cumulative
effect of change
in accounting principle	5,610		10,692		21,886		51,187
Cumulative effect of change
in accounting principle,
net of income tax expense	-		-		-		2,589
	-----------		---------		---------		--------
Net income	$5,610		$10,692		$21,886		$53,776
	===========		=========		=========		========
Basic earnings per share:
Earnings before
cumulative effect of
change in accounting
principle	$0.08		$0.15		$0.30		$0.74
Cumulative effect of
change in accounting
principle	-		-		-		0.04
	-----------		---------		---------		---------
Earnings per share	$0.08		$0.15		$0.30		$0.78
	===========		=========		=========		=========
Diluted earnings per share:
Earnings before
cumulative effect
of change in
accounting principle	$0.08		$0.15		$0.30		$0.73
Cumulative effect of
change in accounting
principle	-		-		-		0.04
	-----------		---------		---------		---------
Earnings per share	$0.08		$0.15		$0.30		$0.77
	===========		=========		=========		=========
Weighted average common
shares used in computing
earnings per share:
Basic	73,784		69,246		72,912		68,545
	===========		=========		=========		=========
Diluted	74,480		69,895		73,872		69,592
	===========		=========		=========		=========
(A) Earnings per diluted share before cumulative effect of change in accounting principal, excluding goodwill amortization, net of taxes, was $0.17 and $0.79 for the three months and year ended December 31, 2001, respectively (SFAS 142).

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2002 AND 2001 (in thousands)
	12/31/2002		12/31/2001
	-----------		-----------
ASSETS
Current assets:
Cash and cash equivalents	$3,480		$3,769
Accounts receivable - net	108,352		109,835
Income taxes receivable	6,087		11,694
Prepaid insurance and other	11,663		10,181
	-----------		-----------
Total current assets	129,582		135,479
Property, plant and equipment - net	418,047		345,878
Goodwill - net	160,366		148,729
Notes receivable	-		23,062
Investments in affiliates	12,343		-
Other assets - net	7,282		12,372
	-----------		-----------
Total assets	$727,620		$665,520
	===========		===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$21,010		$21,591
Accrued expenses	33,871		40,093
Deferred income taxes	-		510
Current maturities of long-term debt	13,730		16,727
	-----------		-----------
Total current liabilities	68,611		78,921
	-----------		-----------
Deferred income taxes	67,333		47,390
Long-term debt	256,334		269,633
Total stockholders' equity	335,342		269,576
	-----------		-----------
Total liabilities and stockholders' equity	$727,620		$665,520
	===========		===========

 

 

Superior Energy Services, Inc. and Subsidiaries Segment Highlights Three months ended December 31, 2002 and 2001, and September 30, 2002 (Unaudited) (in thousands)
Revenue		December 2002			September 2002			December 2001
		-------------			-------------			-------------
Well Intervention Group		$	36,081		$	36,115		$	45,374
Marine		21,212				14,326			18,565
Rental Tools		33,409			29,401			32,627
Other Oilfield Services		27,676			27,371			22,975
		------------			-------------			------------
Total		$	118,378		$	107,213		$	119,541
Gross Profit
Well Intervention Group		$	12,096		$	11,701		$	17,688
Marine		8,529			2,870				8,506
Rental Tools		22,795			20,028			23,575
Other Oilfield Services		5,138			5,478			4,330
		------------			-------------			------------
Total		$	48,558		$	40,077		$	54,099

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Contact:

Superior Energy Services, Inc.

Terence Hall, Robert Taylor, or Greg Rosenstein,

504/362-4321