NEW ORLEANS, April 27, 2011 /PRNewswire/ -- Superior Energy
Services, Inc. (NYSE: SPN) today announced net income of
$15.5 million, or $0.19 per diluted share on revenue of
$414.0 million for the first quarter
of 2011.
These results are compared with net income of $21.5 million, or $0.27 per diluted share on revenue of
$364.5 million for the first quarter
of 2010.
The first quarter 2011 results include a pre-tax gain of
$2.7 million from the sale of three
145-155-ft. class liftboats, and $2.1
million in non-cash, unrealized pre-tax losses from hedging
contracts at the Company’s equity-method investments.
David Dunlap, CEO of Superior,
commented, “Although our Gulf of
Mexico revenue declined 18% sequentially due to the
well-documented slow pace in permitting, our first quarter results
came in toward the higher end of our guidance range due to the
continued strength of the U.S. land markets.
“U.S. land revenue was a record $179
million for the first quarter, which represents a 5%
sequential increase as compared with a 2% increase in the drilling
rig count. More importantly, demand for some of our core products
and services – coiled tubing, premium drill pipe and bottom hole
assemblies – increased approximately 12% from the fourth quarter of
2010. These products and services are the major focus of our 2011
domestic capital expenditures plan.
“While our overall international revenue declined 18% due to
reduced utilization of our subsea operating vessels, international
revenue within our drilling products and services segment increased
1%.”
2011 Earnings Guidance Update
The Company’s recent $500.0
million, 6.375% senior note offering is expected to increase
interest expense by approximately $22.0
million – or $0.18 per share –
for the remainder of 2011. As a result of this incremental
expense, the Company is lowering its earnings guidance range to
$1.62 and $2.02 per diluted share.
Mr. Dunlap commented, “With the exception of the increase in
interest expense, we are reaffirming full year guidance. Our
guidance assumes that we will benefit from our capital expenditures
plan during the remainder of the year, continued acceleration of
domestic land activity and from an increase in deepwater
Gulf of Mexico activity. We are
also encouraged by the number of deepwater permits that have been
issued and are hopeful that this permitting will soon result in
increased drilling activity.”
Geographic Breakdown
For the first quarter of 2011, Gulf of
Mexico revenue was approximately $131.1 million, domestic land revenue was
approximately $179.1 million, and
international revenue was approximately $103.8 million.
Subsea and Well Enhancement Segment
First quarter revenue for the Subsea and Well Enhancement
Segment was $262.0 million, as
compared with $232.8 million in the
first quarter of 2010 and $306.5
million in the fourth quarter of 2010, which represents a
13% year-over-year increase and a 15% sequential decrease.
Sequentially, domestic land revenue increased 3% due to a 10%
increase in coiled tubing revenue, as well as increased demand for
pumping services. These increases were partially offset by a
decline in demand for pressure control services. Gulf of Mexico revenue decreased 22%
sequentially due to seasonal issues, and the slow pace of
permitting for drilling, intervention, and end-of-life projects.
These factors led to reduced activity levels for pressure control,
marine engineering projects, completion tools, and coiled tubing.
Another factor impacting Gulf of
Mexico revenue was the sale of a saturation diving system in
the fourth quarter of 2010 that did not repeat. International
revenue decreased 27% due primarily to lower demand for vessels and
equipment used to support subsea inspection, repair and maintenance
work.
Drilling Products and Services Segment
First quarter revenue for the Drilling Products and Services
Segment was $128.3 million, as
compared with $114.3 million in the
first quarter of 2010 – a 12% year-over-year improvement – and
$120.4 million in the fourth quarter
of 2010, or 7% higher sequentially.
Domestic land revenue increased 10% sequentially primarily due
to increased rentals of premium drill pipe, accommodations,
specialty tubulars and accessories, and stabilization equipment.
Gulf of Mexico revenue increased
8% due to increased rentals of accommodations partially offset by a
decrease in rentals of specialty tubulars and accessories.
International revenue increased 1% primarily due to increased
rentals of premium drill pipe and accessories.
Marine Segment
Marine Segment revenue in the first quarter was $23.7 million, a 35% increase over the first
quarter of 2010 and a 21% decrease from fourth quarter of 2010.
Average fleet utilization in the first quarter of 2011 was 57% as
compared with 47% in the first quarter of 2010 and 72% in the
fourth quarter of 2010. The Company sold three liftboats from its
145-155 ft. class fleet during the first quarter.
Liftboat
Average Dayrates and Utilization by Class Size
Three Months
Ended March 31, 2011
($
actual)
|
|
|
|
Class
|
|
Liftboats
|
|
Average
Dayrate
|
|
Utilization
|
|
145'-155'
|
|
6
|
|
$6,147
|
|
51.9%
|
|
160'-175'
|
|
7
|
|
7,629
|
|
41.4%
|
|
200'
|
|
5
|
|
11,045
|
|
62.7%
|
|
230'-245'
|
|
3
|
|
23,619
|
|
64.8%
|
|
250'
|
|
2
|
|
28,570
|
|
76.1%
|
|
265'
|
|
2
|
|
36,985
|
|
83.3%
|
|
|
|
|
|
|
|
|
Conference Call Information
The Company will host a conference call at 10 a.m. Central Time on Thursday, April 28, 2011. The call can be
accessed from Superior’s website at www.superiorenergy.com, or by
telephone at 480-629-9644. For those who cannot listen to the
live call, a telephonic replay will be available through
Thursday, May 5, 2011 and may be
accessed by calling 303-590-3030 and using the pass code 4432547.
An archive of the webcast will be available after the call
for a period of 60 days on http://www.superiorenergy.com.
Superior Energy Services, Inc. serves the drilling and
production-related needs of oil and gas companies worldwide through
its brand name rental tools and its integrated well intervention
services and tools, supported by an engineering staff who plan and
design solutions for customers. Offshore projects are
delivered by the Company’s fleet of modern marine assets.
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 uncertainty of
macroeconomic and business conditions worldwide, as well as the
global credit markets; 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.
FOR FURTHER INFORMATION CONTACT:
David Dunlap, CEO; Robert Taylor, CFO;
Greg Rosenstein, VP of Investor
Relations, (504) 587-7374
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES
|
|
Consolidated
Statements of Operations
|
|
Three Months
Ended March 31, 2011 and 2010
|
|
(in
thousands, except earnings per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Revenues
|
|
$ 413,981
|
|
$ 364,511
|
|
|
|
|
|
|
|
Cost of services (exclusive of
items shown separately below)
|
|
233,845
|
|
199,052
|
|
Depreciation, depletion,
amortization and accretion
|
|
59,363
|
|
51,048
|
|
General and administrative
expenses
|
|
86,879
|
|
70,724
|
|
Gain on sale of
businesses
|
|
2,674
|
|
-
|
|
|
|
|
|
|
|
Income from
operations
|
|
36,568
|
|
43,687
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest expense,
net
|
|
(12,372)
|
|
(14,038)
|
|
Earnings from
equity-method investments, net
|
|
27
|
|
3,985
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
24,223
|
|
33,634
|
|
|
|
|
|
|
|
Income taxes
|
|
8,720
|
|
12,108
|
|
|
|
|
|
|
|
Net income
|
|
$ 15,503
|
|
$ 21,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
0.20
|
|
$
0.27
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
0.19
|
|
$
0.27
|
|
|
|
|
|
|
|
Weighted average common shares
used
|
|
|
|
|
|
in computing earnings per
share:
|
|
|
|
|
|
Basic
|
|
79,021
|
|
78,534
|
|
Diluted
|
|
80,759
|
|
79,353
|
|
|
|
|
|
|
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
MARCH 31,
2011 AND DECEMBER 31, 2010
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2011
|
|
12/31/2010
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
71,082
|
|
$
50,727
|
|
Accounts receivable,
net
|
|
375,228
|
|
452,450
|
|
Prepaid
expenses
|
|
31,974
|
|
25,828
|
|
Inventory and other
current assets
|
|
234,891
|
|
235,047
|
|
|
|
|
|
|
|
Total
current assets
|
|
713,175
|
|
764,052
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
|
1,361,412
|
|
1,313,150
|
|
Goodwill
|
|
589,967
|
|
588,000
|
|
Notes receivable
|
|
70,135
|
|
69,026
|
|
Equity-method
investments
|
|
59,350
|
|
59,322
|
|
Intangible and other long-term
assets, net
|
|
121,208
|
|
113,983
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 2,915,247
|
|
$ 2,907,533
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
105,753
|
|
$
110,276
|
|
Accrued
expenses
|
|
150,015
|
|
162,044
|
|
Income taxes
payable
|
|
-
|
|
2,475
|
|
Deferred income
taxes
|
|
23,158
|
|
29,353
|
|
Current portion of
decommissioning liabilities
|
|
17,063
|
|
16,929
|
|
Current maturities of
long-term debt
|
|
810
|
|
184,810
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
296,799
|
|
505,887
|
|
|
|
|
|
|
|
Deferred income taxes
|
|
228,107
|
|
223,936
|
|
Decommissioning
liabilities
|
|
102,321
|
|
100,787
|
|
Long-term debt, net
|
|
851,822
|
|
681,635
|
|
Other long-term
liabilities
|
|
118,073
|
|
114,737
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
1,318,125
|
|
1,280,551
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
|
$ 2,915,247
|
|
$ 2,907,533
|
|
|
|
|
|
|
Superior
Energy Services, Inc. and Subsidiaries
Segment
Highlights
Three months
ended March 31, 2011, December 31, 2010 and March 31,
2010
(Unaudited)
(in
thousands)
|
|
|
|
|
|
Three months
ended
|
|
Revenue
|
|
March 31,
2011
|
|
December 31,
2010
|
|
March 31,
2010
|
|
|
|
|
|
|
|
|
|
Subsea and Well
Enhancement
|
|
$
262,045
|
|
$
306,496
|
|
$
232,766
|
|
|
|
|
|
|
|
|
|
Drilling Products and
Services
|
|
128,270
|
|
120,366
|
|
114,277
|
|
|
|
|
|
|
|
|
|
Marine
|
|
23,666
|
|
30,034
|
|
17,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues
|
|
$
413,981
|
|
$
456,896
|
|
$
364,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit (1)
|
|
March 31,
2011
|
|
December 31,
2010
|
|
March 31,
2010
|
|
|
|
|
|
|
|
|
|
Subsea and Well
Enhancement
|
|
$
91,377
|
|
$
112,610
|
|
$
89,897
|
|
|
|
|
|
|
|
|
|
Drilling Products and
Services
|
|
81,573
|
|
73,835
|
|
74,182
|
|
|
|
|
|
|
|
|
|
Marine
|
|
7,186
|
|
13,014
|
|
1,380
|
|
|
|
|
|
|
|
|
|
Total Gross Profit
|
|
$
180,136
|
|
$
199,459
|
|
$
165,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Operations
|
|
March 31,
2011 (2)
|
|
December 31,
2010 (3)
|
|
March 31,
2010
|
|
|
|
|
|
|
|
|
|
Subsea and Well
Enhancement
|
|
$
10,979
|
|
$
23,689
|
|
$
23,697
|
|
|
|
|
|
|
|
|
|
Drilling Products and
Services
|
|
21,704
|
|
16,641
|
|
23,947
|
|
|
|
|
|
|
|
|
|
Marine
|
|
3,885
|
|
(25,191)
|
|
(3,957)
|
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total Income from
Operations
|
|
$
36,568
|
|
$
15,139
|
|
$
43,687
|
|
|
|
|
|
|
|
|
|
(1) Gross profit is calculated
by subtracting cost of services (exclusive of depreciation,
depletion, amortization and accretion) from revenue for each of the
Company's segments
|
|
(2) Includes a gain on sale of
liftboats of $2.7 million recorded in the Marine
Segment.
|
|
(3) Includes management
transition expenses of $12.2 million recorded in general and
administrative expenses, reduction of value of assets of $32.0
million recorded in the Marine Segment and a gain on sale of
liftboat of $1.1 million recorded in the Marine Segment.
|
|
|
|
|
|
|
|
|
SOURCE Superior Energy Services, Inc.