Superior Energy Services, Inc. (the “Company”) filed its Form 10-Q
for the period ending June 30, 2022 on August 4, 2022. In
accordance with the Company’s Shareholders Agreement, it will host
a conference call with shareholders on Tuesday, August 9,
2022.
The Company reported net income from continuing
operations for the second quarter of 2022 of $43.6 million, or
$2.17 per diluted share, on revenue of $224.6 million. This
compares to a net income from continuing operations of $24.0
million, or $1.20 per diluted share, for the first quarter of 2022,
on revenues of $197.9 million.
Net income from continuing operations includes a
gain of $17.4 million in Other (gains) and losses within operating
income related to a gain from revisions to our estimated
Decommissioning Liability in the second quarter. This gain
was offset by an expense of $13.5 million in Other income (expense)
primarily related to unfavorable foreign exchange rate changes and
both realized gains and unrealized losses on the value of our stock
holdings in Select Energy Services.
The Company’s Adjusted EBITDA (a non-GAAP
measure) was $74.0 million for the quarter, an increase of 40%
compared to $53.0 million in first quarter 2022. Refer to page 10
for a Reconciliation of Adjusted EBITDA to GAAP results.
Brian Moore, Chief Executive Officer, commented,
“Our performance and margin expansion demonstrated by second
quarter results further validates the strength of our brands, their
leaders, and teams as well as our strategy. Our continued execution
of last year’s transformation initiatives has changed our
competitive position and our operational focus to businesses with
strong market positions, particularly in our Rentals segment. The
significantly reduced cost structure was apparent in the second
quarter as our pricing leverage and high utilization of desirable
assets outpaced inflation despite challenges relating to the labor
market and our supply chain costs. Our significantly reduced
cost structure further enabled solid margin expansion in the second
quarter. We will continue to leverage our sustainable lower cost
structure and leading market positions to deliver compelling
margins and returns. In addition, we will remain committed to
converting operating margin to free cash flow generation with
continued discipline in our capital expenditure and market
participation decisions.
We remain encouraged by our prospects for
near-term and long-term market opportunities and will continue to
be opportunistic in maintaining and enhancing our strong market
positions. The second quarter performance reflects not only our
strategy and focus on businesses critical to our customers'
operations but also showcases the capabilities of our business unit
leaders and their teams. We appreciate the contributions and
dedication of our approximately 2,300 employees and continue to
implement compensation programs that motivate, reward and retain
our people while striving to grow shareholder value.”
Second Quarter 2022 Geographic Breakdown
U.S. land revenue was $47.9 million in the
second quarter of 2022, an increase of 24% compared to revenue of
$38.5 million in the first quarter of 2022 driven by increased
utilization, activity, and pricing in our Rentals Segment. Our
premium drill pipe and downhole assemblies businesses continue to
benefit from increased market activity and need for ancillary
services coupled with a tight tool rental market where the most
desirable assets within our substantial tool inventories were near
full utilization.
U.S. offshore revenue was $68.9 million in the
second quarter of 2022, up 13% compared to revenue of $61.1 million
in the first quarter of 2022. U.S. offshore results were
positively impacted by increased completions activity in both our
Well Services and Rentals segments.
International revenue was $107.8 million in the
second quarter of 2022, an increase of 10% compared to revenue of
$98.3 million in the first quarter of 2022. International
results were positively impacted by an improvement in the Latin
American market, particularly within our Well Services segment,
offset by the wind-down of a Well Services project in the Middle
East. Targeting markets with core customers and
long-term contracts ensures development of competitive returns
while limiting participation in low-margin and sub-scale
markets.
Segment Reporting
The Rentals segment revenue in the second
quarter of 2022 was $103.7 million, a 17% increase compared to
revenue of $88.8 million in the first quarter of 2022.
Adjusted EBITDA of $61.1 million contributed 70% of the
Company’s total Adjusted EBITDA before including corporate
costs. Second quarter Adjusted EBITDA Margin (a non-GAAP
measure further defined on page 9) within Rentals was 59%
benefiting from increased activity with improved revenue mix.
The Well Services segment revenue in the second
quarter of 2022 was $120.9 million, an 11% increase compared to
revenue of $109.2 million in the first quarter of 2022.
Adjusted EBITDA for the second quarter was $25.4 million for an
Adjusted EBITDA Margin of 21%. Savings realized from the strategic
shift of our more labor-intensive service businesses to U.S.
offshore and international operations improved revenue mix, with
completions applications, and increased Latin American activity
have driven margins higher.
Decommissioning Liability
Revision
In the second quarter of 2022, the Company
changed our decommissioning program, whereby we intend to convert
the offshore platform to an artificial reef (“reef in place”) and
no longer expect to fully decommission the platform. Based on
this change, the Company revised the timing and cost estimates
under the reef-in-place program, resulting in a decrease of $53
million in our decommissioning liability. Please see the Company’s
Form 10-Q filed on August 4, 2022 for further details.
Liquidity
As of June 30, 2022, the Company had cash, cash
equivalents, and restricted cash of approximately $470.8 million
and the availability remaining under our ABL Credit Facility was
approximately $85.6 million, assuming continued compliance with the
covenants under our ABL Credit Facility.
Total cash proceeds received from the sale of
non-core assets during the quarter were $1.8 million and proceeds
from the sale of equity securities were $6.0 million.
Additionally, at June 30, 2022, the Company owned approximately 2.4
million shares of Select Energy Services Class A common stock
(NYSE: WTTR).
The Company remains focused on cash
conversion. Year to date net cash provided by operating
activities was $68.2 million, offset by a capital expenditure spend
of $20.5 million.
Second quarter capital expenditures were $9.2
million. The Company expects total capital expenditures for
2022 to be between $75 - $85 million with a substantial portion of
the remaining spend occurring in the third quarter.
Approximately 70% of total 2022 capital expenditures are targeted
for the replacement of existing assets. Of the total capital
expenditures, over 70% will be invested in the Rentals segment.
Both segments are experiencing supply chain
tightness and inflation, particularly for raw materials associated
with downhole completion and drilling bottom hole accessory
components. This primarily impacts our ability to bring new tools
to market in late 2022 and beyond as we experience long delivery
lead times and increased pricing for capital expenditures. We
continue to be diligent and are working with our suppliers to
ensure delivery of necessary materials.
2022 Guidance
Based on our strong performance in the second
quarter, and increased visibility into the remainder of 2022, we
now expect revenue for 2022 to come in between $840 million and
$900 million. Full year EBITDA (a Non-GAAP measure) is now
expected to be in a range of $250 million to $280 million.
Strategic Initiatives
As noted in our First Quarter Earnings Release,
the Company has engaged Evercore to review potential strategic
alternatives focused on maximizing shareholder value.
The Board has continued to evaluate strategic
alternatives in the second quarter. We now expect to pay a
distribution and return of capital to shareholders in the second
half of 2022.
Conference Call Information
The Company will host a conference call on
Tuesday, August 9, 2022 at 10:00 a.m. Eastern Time. To listen to
the call via a live webcast, please visit Superior’s website at
ir.superiorenergy.com and use access code 10170151. You may also
listen to the call by dialing in at 1-877-870-4263 in the United
States and Canada or 1-412-317-0790 for International calls and
using access code 10170151. The call will be available for replay
until September 3, 2022 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.
Non-GAAP Financial Measure
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 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 10 through 11 of this press
release.
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 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,
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, 2021 and Form 10-Q filed on August
4, 2022 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.
The Company is unable to provide a
reconciliation of the forward-looking non-GAAP financial measure,
EBITDA, contained in this Current Report on Form 8-K to its most
directly comparable GAAP financial measure, net income (loss),
because 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 (loss) 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.
SUPERIOR ENERGY SERVICES, INC. AND
SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(in thousands, except earnings per share amounts) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
224,640 |
|
|
$ |
197,930 |
|
|
$ |
165,892 |
|
|
$ |
422,570 |
|
|
$ |
317,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
120,968 |
|
|
|
112,380 |
|
|
|
103,045 |
|
|
|
233,348 |
|
|
|
200,855 |
|
Depreciation, depletion, amortization and accretion |
|
23,346 |
|
|
|
34,085 |
|
|
|
59,018 |
|
|
|
57,431 |
|
|
|
107,406 |
|
General and administrative expenses |
|
30,231 |
|
|
|
32,018 |
|
|
|
32,308 |
|
|
|
62,249 |
|
|
|
61,798 |
|
Restructuring expenses |
|
1,663 |
|
|
|
1,555 |
|
|
|
7,438 |
|
|
|
3,218 |
|
|
|
17,091 |
|
Other (gains) and losses, net |
|
(18,013 |
) |
|
|
1,147 |
|
|
|
534 |
|
|
|
(16,866 |
) |
|
|
365 |
|
Income (loss) from
operations |
|
66,445 |
|
|
|
16,745 |
|
|
|
(36,451 |
) |
|
|
83,190 |
|
|
|
(69,852 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
1,459 |
|
|
|
1,179 |
|
|
|
535 |
|
|
|
2,638 |
|
|
|
949 |
|
Reorganization items, net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
335,560 |
|
Other income (expense) |
|
(13,471 |
) |
|
|
13,947 |
|
|
|
2,570 |
|
|
|
476 |
|
|
|
(2,380 |
) |
Income (loss) from continuing
operations before income taxes |
|
54,433 |
|
|
|
31,871 |
|
|
|
(33,346 |
) |
|
|
86,304 |
|
|
|
264,277 |
|
Income tax benefit (expense) |
|
(10,871 |
) |
|
|
(7,884 |
) |
|
|
1,747 |
|
|
|
(18,755 |
) |
|
|
(53,971 |
) |
Net income (loss) from
continuing operations |
|
43,562 |
|
|
|
23,987 |
|
|
|
(31,599 |
) |
|
|
67,549 |
|
|
|
210,306 |
|
Income (loss) from discontinued operations, net of income tax |
|
(1,944 |
) |
|
|
1,739 |
|
|
|
(19,400 |
) |
|
|
(205 |
) |
|
|
(29,158 |
) |
Net income (loss) |
$ |
41,618 |
|
|
$ |
25,726 |
|
|
$ |
(50,999 |
) |
|
$ |
67,344 |
|
|
$ |
181,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share
-basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations |
$ |
2.18 |
|
|
$ |
1.20 |
|
|
|
|
|
$ |
3.38 |
|
|
|
|
Income (loss) from discontinued operations, net of income tax |
|
(0.10 |
) |
|
|
0.09 |
|
|
|
|
|
|
(0.01 |
) |
|
|
|
Net income (loss) |
$ |
2.08 |
|
|
$ |
1.29 |
|
|
|
|
|
$ |
3.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share -
diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations |
$ |
2.17 |
|
|
$ |
1.20 |
|
|
|
|
|
$ |
3.37 |
|
|
|
|
Income (loss) from discontinued operations, net of income tax |
|
(0.10 |
) |
|
|
0.08 |
|
|
|
|
|
|
(0.01 |
) |
|
|
|
Net income (loss) |
$ |
2.07 |
|
|
$ |
1.28 |
|
|
|
|
|
$ |
3.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding - basic |
|
20,024 |
|
|
|
19,999 |
|
|
|
|
|
|
20,011 |
|
|
|
|
Weighted-average shares
outstanding - diluted |
|
20,076 |
|
|
|
20,056 |
|
|
|
|
|
|
20,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Combines results
from periods prior to our emergence from bankruptcy on February 2,
2021 and periods subsequent to emergence which is a non-GAAP
financial measure. For further information regarding the
breakdown of results, see our Quarterly Report on Form 10-Q for the
quarterly period ended June 30, 2022. |
|
SUPERIOR ENERGY SERVICES, INC. AND
SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(in thousands) |
|
(unaudited) |
|
|
June 30, |
|
|
December 31, |
|
|
2022 |
|
|
2021 |
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
391,219 |
|
|
$ |
314,974 |
|
Accounts receivable, net |
|
211,014 |
|
|
|
182,432 |
|
Income taxes receivable |
|
5,091 |
|
|
|
5,099 |
|
Prepaid expenses |
|
18,513 |
|
|
|
15,861 |
|
Inventory |
|
67,201 |
|
|
|
60,603 |
|
Investment in equity securities |
|
16,524 |
|
|
|
25,735 |
|
Other current assets |
|
5,349 |
|
|
|
6,701 |
|
Assets held for sale |
|
25,629 |
|
|
|
37,528 |
|
Total current assets |
|
740,540 |
|
|
|
648,933 |
|
Property, plant and equipment,
net |
|
286,927 |
|
|
|
356,274 |
|
Notes receivable |
|
65,140 |
|
|
|
60,588 |
|
Restricted cash |
|
79,595 |
|
|
|
79,561 |
|
Other long-term assets,
net |
|
50,374 |
|
|
|
54,152 |
|
Total assets |
$ |
1,222,576 |
|
|
$ |
1,199,508 |
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
44,334 |
|
|
$ |
43,080 |
|
Accrued expenses |
|
111,839 |
|
|
|
108,610 |
|
Income taxes payable |
|
10,449 |
|
|
|
8,272 |
|
Liabilities held for sale |
|
4,200 |
|
|
|
5,607 |
|
Total current liabilities |
|
170,822 |
|
|
|
165,569 |
|
Decommissioning
liabilities |
|
142,740 |
|
|
|
190,380 |
|
Deferred income taxes |
|
16,225 |
|
|
|
12,441 |
|
Other long-term
liabilities |
|
82,169 |
|
|
|
89,385 |
|
Total liabilities |
|
411,956 |
|
|
|
457,775 |
|
Total stockholders'
equity |
|
810,620 |
|
|
|
741,733 |
|
Total liabilities and stockholders' equity |
$ |
1,222,576 |
|
|
$ |
1,199,508 |
|
SUPERIOR ENERGY SERVICES, INC. AND
SUBSIDIARIES |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
June 30, |
|
|
2022 |
|
|
2021(1) |
|
Cash flows from operating
activities |
|
|
|
|
|
Net income |
$ |
67,344 |
|
|
$ |
181,148 |
|
Adjustments to reconcile net
income to net cash provided by operating activities |
|
|
|
|
|
Depreciation, depletion, amortization and accretion |
|
57,431 |
|
|
|
140,903 |
|
Reorganization items, net |
|
- |
|
|
|
(354,279 |
) |
Other non-cash items |
|
(22,358 |
) |
|
|
48,304 |
|
Changes in operating assets and liabilities |
|
(34,173 |
) |
|
|
1,810 |
|
Net cash from operating activities |
|
68,244 |
|
|
|
17,886 |
|
|
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
|
Payments for capital expenditures |
|
(20,514 |
) |
|
|
(14,030 |
) |
Proceeds from sales of assets |
|
15,183 |
|
|
|
16,975 |
|
Proceeds from sales of equity securities |
|
13,366 |
|
|
|
- |
|
Net cash from investing activities |
|
8,035 |
|
|
|
2,945 |
|
|
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
|
Other |
|
- |
|
|
|
(3,419 |
) |
Net cash from financing activities |
|
- |
|
|
|
(3,419 |
) |
Effect of exchange rate changes on cash |
|
- |
|
|
|
311 |
|
Net change in cash, cash
equivalents and restricted cash |
|
76,279 |
|
|
|
17,723 |
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
394,535 |
|
|
|
268,184 |
|
Cash, cash equivalents and
restricted cash at end of period |
$ |
470,814 |
|
|
$ |
285,907 |
|
|
|
|
|
|
|
(1)Combines results
from periods prior to our emergence from bankruptcy on February 2,
2021 and periods subsequent to emergence which is a non-GAAP
financial measure. For further information regarding the
breakdown of results, see our Quarterly Report on Form 10-Q for the
quarterly period ended June 30, 2022. |
|
SUPERIOR ENERGY SERVICES, INC. AND
SUBSIDIARIES |
|
REVENUE BY GEOGRAPHIC REGION BY SEGMENT |
|
(in thousands, except per share data) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
U.S.
land |
|
|
|
|
|
|
|
|
Rentals |
$ |
43,791 |
|
|
$ |
33,962 |
|
|
$ |
20,789 |
|
Well Services |
|
4,151 |
|
|
|
4,548 |
|
|
|
6,781 |
|
Total U.S.
land |
|
47,942 |
|
|
|
38,510 |
|
|
|
27,570 |
|
|
|
|
|
|
|
|
|
|
U.S.
offshore |
|
|
|
|
|
|
|
|
Rentals |
|
36,331 |
|
|
|
32,753 |
|
|
|
26,890 |
|
Well Services |
|
32,569 |
|
|
|
28,321 |
|
|
|
26,574 |
|
Total U.S.
offshore |
|
68,900 |
|
|
|
61,074 |
|
|
|
53,464 |
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
Rentals |
|
23,607 |
|
|
|
22,041 |
|
|
|
19,558 |
|
Well Services |
|
84,191 |
|
|
|
76,305 |
|
|
|
65,300 |
|
Total
International |
|
107,798 |
|
|
|
98,346 |
|
|
|
84,858 |
|
Total
Revenues |
$ |
224,640 |
|
|
$ |
197,930 |
|
|
$ |
165,892 |
|
SUPERIOR ENERGY SERVICES, INC. AND
SUBSIDIARIES |
|
SEGMENT HIGHLIGHTS |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
Revenues |
|
|
|
|
|
|
|
|
Rentals |
$ |
103,729 |
|
|
$ |
88,756 |
|
|
$ |
67,237 |
|
Well Services |
|
120,911 |
|
|
|
109,174 |
|
|
|
98,655 |
|
Corporate and other |
|
- |
|
|
|
- |
|
|
|
- |
|
Total Revenues |
$ |
224,640 |
|
|
$ |
197,930 |
|
|
$ |
165,892 |
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Operations |
|
|
|
|
|
|
|
|
Rentals |
$ |
48,559 |
|
|
$ |
28,785 |
|
|
$ |
(9,232 |
) |
Well Services |
|
33,147 |
|
|
|
4,135 |
|
|
|
(5,226 |
) |
Corporate and other |
|
(15,261 |
) |
|
|
(16,175 |
) |
|
|
(21,993 |
) |
Total Income (Loss) from
Operations |
$ |
66,445 |
|
|
$ |
16,745 |
|
|
$ |
(36,451 |
) |
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
Rentals |
$ |
61,115 |
|
|
$ |
49,774 |
|
|
$ |
32,851 |
|
Well Services |
|
25,400 |
|
|
|
16,502 |
|
|
|
9,987 |
|
Corporate and other |
|
(12,470 |
) |
|
|
(13,252 |
) |
|
|
(12,833 |
) |
Total Adjusted EBITDA |
$ |
74,045 |
|
|
$ |
53,024 |
|
|
$ |
30,005 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin |
|
|
|
|
|
|
|
|
Rentals |
|
59 |
% |
|
|
56 |
% |
|
|
49 |
% |
Well Services |
|
21 |
% |
|
|
15 |
% |
|
|
10 |
% |
Corporate and other |
n/a |
|
|
n/a |
|
|
n/a |
|
Total Adjusted EBITDA
Margin |
|
33 |
% |
|
|
27 |
% |
|
|
18 |
% |
|
|
|
|
|
|
|
|
|
We define EBITDA as
income (loss) from continuing operations excluding the impact of
depreciation, depletion, amortization and accretion, interest and
income taxes. Additionally, our definition of Adjusted EBITDA
adjusts for the impact of restructuring expenses, other gains and
losses, other (income) expenses and other adjustments. |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin represents Adjusted EBITDA by segment as a percentage of
segment revenues |
|
SUPERIOR ENERGY SERVICES, INC. AND
SUBSIDIARIES |
|
RECONCILIATION OF ADJUSTED EBITDA |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations |
$ |
43,562 |
|
|
$ |
23,987 |
|
|
$ |
(31,599 |
) |
Depreciation, depletion, amortization and accretion |
|
23,346 |
|
|
|
34,085 |
|
|
|
59,018 |
|
Interest income, net |
|
(1,459 |
) |
|
|
(1,179 |
) |
|
|
(535 |
) |
Income taxes |
|
10,871 |
|
|
|
7,884 |
|
|
|
(1,747 |
) |
Restructuring expenses |
|
1,663 |
|
|
|
1,555 |
|
|
|
7,438 |
|
Other (gains) and losses, net |
|
(18,013 |
) |
|
|
1,147 |
|
|
|
- |
|
Other (income) expense |
|
13,471 |
|
|
|
(13,947 |
) |
|
|
(2,570 |
) |
Other adjustments(1) |
|
604 |
|
|
|
(508 |
) |
|
|
- |
|
Adjusted EBITDA |
$ |
74,045 |
|
|
$ |
53,024 |
|
|
$ |
30,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We define EBITDA as income (loss) from continuing operations
excluding the impact of depreciation, depletion, amortization and
accretion, interest and income taxes. Additionally, our
definition of Adjusted EBITDA adjusts for the impact of
restructuring expenses, other gains and losses, other (income)
expenses and other adjustments. |
|
|
|
|
|
|
|
|
|
|
(1)Adjustments for
exit activities related to SES Energy Services India Pvt. Ltd. |
|
SUPERIOR ENERGY SERVICES, INC. AND
SUBSIDIARIES |
|
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2022 |
|
|
|
|
|
Well |
|
|
Corporate |
|
|
Consolidated |
|
|
Rentals |
|
|
Services |
|
|
and Other |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
$ |
48,559 |
|
|
$ |
33,147 |
|
|
$ |
(15,261 |
) |
|
$ |
66,445 |
|
Depreciation, depletion, amortization and accretion |
|
12,556 |
|
|
|
9,662 |
|
|
|
1,128 |
|
|
|
23,346 |
|
Restructuring expenses |
|
- |
|
|
|
- |
|
|
|
1,663 |
|
|
|
1,663 |
|
Other adjustments(1) |
|
- |
|
|
|
(17,409 |
) |
|
|
- |
|
|
|
(17,409 |
) |
Adjusted EBITDA |
$ |
61,115 |
|
|
$ |
25,400 |
|
|
$ |
(12,470 |
) |
|
$ |
74,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2022 |
|
|
|
|
|
Well |
|
|
Corporate |
|
|
Consolidated |
|
|
Rentals |
|
|
Services |
|
|
and Other |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
$ |
28,785 |
|
|
$ |
4,135 |
|
|
$ |
(16,175 |
) |
|
$ |
16,745 |
|
Depreciation, depletion, amortization and accretion |
|
20,989 |
|
|
|
11,728 |
|
|
|
1,368 |
|
|
|
34,085 |
|
Restructuring expenses |
|
- |
|
|
|
- |
|
|
|
1,555 |
|
|
|
1,555 |
|
Other adjustments(1) |
|
- |
|
|
|
639 |
|
|
|
- |
|
|
|
639 |
|
Adjusted EBITDA |
$ |
49,774 |
|
|
$ |
16,502 |
|
|
$ |
(13,252 |
) |
|
$ |
53,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2021 |
|
|
|
|
|
Well |
|
|
Corporate |
|
|
Consolidated |
|
|
Rentals |
|
|
Services |
|
|
and Other |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
$ |
(9,232 |
) |
|
$ |
(5,226 |
) |
|
$ |
(21,993 |
) |
|
$ |
(36,451 |
) |
Depreciation, depletion, amortization and accretion |
|
42,083 |
|
|
|
15,213 |
|
|
|
1,722 |
|
|
|
59,018 |
|
Restructuring expenses |
|
- |
|
|
|
- |
|
|
|
7,438 |
|
|
|
7,438 |
|
Other adjustments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted EBITDA |
$ |
32,851 |
|
|
$ |
9,987 |
|
|
$ |
(12,833 |
) |
|
$ |
30,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We define EBITDA as
income (loss) from continuing operations excluding the impact of
depreciation, depletion, amortization and accretion, interest and
income taxes. Additionally, our definition of Adjusted EBITDA
adjusts for the impact of restructuring expenses, other gains and
losses, other (income) expenses and other adjustments. |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjustments
for exit activities related to SES Energy Services India Pvt. Ltd
and the residual gain from revisions to our estimated
decommissioning liability |
|
FOR FURTHER INFORMATION CONTACT:Jamie Spexarth, Chief Financial
Officer1001 Louisiana St., Suite 2900Houston, TX 77002Investor
Relations, ir@superiorenergy.com, (713) 654-2200
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