HOUSTON, Feb. 19, 2015 /PRNewswire/ -- Superior
Energy Services, Inc. (NYSE: SPN) today announced net income from
continuing operations of $73.4
million, or $0.48 per diluted
share, on revenue of $1,178.6 million
for the fourth quarter of 2014 and net income of $66.1 million, or $0.43 per diluted share.
These results compare with the fourth quarter of 2013 net loss
from continuing operations of $176.7
million, or $1.11 per share,
and net loss of $313.5 million, or a
$1.97 loss per share, on revenue of
$1,075.6 million. Included in
the results from continuing operations for the fourth quarter of
2013 were pre-tax charges of $305.7
million.
For the year ended December 31,
2014, the Company's net income from continuing operations
was $280.8 million, or $1.79 per diluted share, on revenue of
$4,556.6 million as compared with
income from continuing operations of $45.5
million, or $0.28 per diluted
share, on revenue of $4,350.1 million
for the year ended December 31,
2013.
David Dunlap, President and CEO
of the Company, commented, "The fourth quarter of 2014 concluded a
very successful year for our organization. Strong operating
performance in 2014 and our focus on capital and cost discipline
have our balance sheet in great shape heading into what appears to
be a challenging year for our industry.
"Record free cash flow generation and obtaining an investment
grade credit rating in 2014 were just two milestones that we
believe validate our approach to managing the business. We
expect to continue to generate free cash during 2015 and maintain
ample liquidity to be able to pursue further growth
opportunities.
"International expansion continues to be a core strategy for
Superior Energy. Our focus has been on several targeted
countries, and we believe we have set the stage during 2014 for
future growth in these areas. With the competitive landscape
in international markets set to change, and product lines
tailor-made for international expansion, we are very excited about
our opportunities overseas.
"Given the US rig count's rapid decline and an uncertain
commodity price environment, we currently anticipate cutting our
capital expenditures at least 35% from 2014. Our experienced
leadership team reacted quickly to changes in the market by
beginning the process of rationalizing costs during the fourth
quarter and will be responsive to any further shifts in these
markets."
During the fourth quarter of 2014, the Company repurchased and
retired approximately 4.4 million shares of its common stock for a
total purchase price of $114.3
million. Through December 31,
2014, the Company has repurchased and retired approximately
10.2 million shares for a total purchase price of approximately
$300 million.
Fourth Quarter 2014 Geographic Breakdown
U.S. land revenue was $805.2
million in the fourth quarter of 2014, as compared with
$673.1 million in the fourth quarter
of 2013 and $814.1 million in the
third quarter of 2014. Gulf of
Mexico revenue was $193.5
million, as compared with $218.0
million in the fourth quarter of 2013 and $210.8 million in the third quarter of 2014.
International revenue was $179.9
million, as compared with $184.5
million in the fourth quarter of 2013 and $184.1 million in the third quarter of 2014.
Drilling Products and Services Segment
Drilling Products and Services segment revenue in the fourth
quarter of 2014 was $238.5 million, a
7% increase from fourth quarter 2013 revenue of $223.6 million and a slight decrease from third
quarter 2014 revenue of $239.2
million.
U.S. land revenue increased 3% sequentially to $88.2 million and Gulf
of Mexico revenue increased 3% sequentially to $92.0 million due to increased rentals across all
product lines, including bottom hole assemblies, accommodations and
premium drill pipe. International revenue decreased 8% to
$58.3 million due to decreased
rentals of premium drill pipe and bottom hole
assemblies.
Onshore Completion and Workover Services Segment
Onshore Completion and Workover Services segment revenue was
$469.1 million in the fourth quarter
of 2014, a 25% increase from fourth quarter 2013 revenue of
$374.5 million, and essentially flat
with third quarter 2014 revenue of $470.8
million, even with seasonality and a declining US rig count.
Production Services Segment
Production Services segment revenue was $342.1 million, a 2% decrease from fourth quarter
2013 revenue of $349.4 million and a
2% decrease from third quarter 2014 revenue of $348.8 million.
U.S. land revenue decreased slightly during the quarter to
$223.9 million, as increased revenue
from remedial pumping services was offset by declines in revenues
from coiled tubing and wireline. Gulf of
Mexico revenue decreased 24% sequentially to $28.4 million, primarily due to seasonality and
declining drilling activity. International revenue increased
4% sequentially to $89.8 million,
primarily due to higher demand for workover and snubbing
services.
Technical Solutions Segment
Technical Solutions segment revenue in the fourth quarter of
2014 was $128.9 million, an increase
from fourth quarter 2013 revenue of $128.2
million and a 14% decrease from third quarter 2014 revenue
of $150.2 million.
U.S. land revenue decreased 26% sequentially to $23.9 million primarily due to decreases in well
control services and completion tools and products.
Gulf of Mexico revenue decreased
13% sequentially to $73.2 million
primarily due to seasonality. International revenue decreased 6%
sequentially to $31.8 million as a
result of decreased well control activity and reduced revenues from
completion tools and products.
Conference Call Information
The Company will host a conference call at 11:00 a.m. Eastern Standard Time on Friday, February 20, 2015. The call can be
accessed from the Company's website at www.superiorenergy.com, or
by telephone at 412-902-0030. For those who cannot listen to
the live call, a telephonic replay will be available through
March 6, 2015 and may be accessed by
calling 201-612-7415 and using the pass code 13598867#. An archive
of the webcast will be available after the call for a period of 60
days at www.superiorenergy.com.
Superior Energy Services, Inc. serves the drilling, completion
and production-related needs of oil and gas companies worldwide
through its brand name drilling products and its integrated
completion and well intervention services and tools, supported by
an engineering staff who plan and design solutions for
customers.
The press release contains 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 included in
this press release regarding the Company's financial position,
financial performance, liquidity, strategic alternatives, market
outlook, future capital needs, capital allocation plans, business
strategies and other plans and objectives of the Company's
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 that could cause the Company's
actual results to differ materially from such statements. Such
uncertainties include, but are not limited to: the cyclicality and
volatility of the oil and gas industry, including changes in
prevailing levels of exploration, production and development
activity; changes in prevailing oil and gas prices or expectations
about future prices; operating hazards, including the significant
possibility of accidents resulting in personal injury or death,
property damage or environmental damage for which the Company may
have limited or no insurance coverage or indemnification rights;
the effect of regulatory programs and environmental matters on the
Company's operations or prospects, including the risk that future
changes in the regulation of hydraulic fracturing could reduce or
eliminate demand for the Company's pressure pumping services; risks
associated with the uncertainty of macroeconomic and business
conditions worldwide; changes in competitive and technological
factors affecting the Company's operations; the potential shortage
of skilled workers; risks inherent in acquiring businesses; risks
associated with business growth outpacing the capabilities of the
Company's infrastructure and workforce; political, economic and
other risks and uncertainties associated with the Company's
international operations; the Company's continued access to credit
markets on favorable terms; the impact that unfavorable or unusual
weather conditions could have on the Company's operations; and the
risks inherent in long-term fixed-price contracts. Although
the Company believes that the expectations reflected in such
forward-looking statements are reasonable, management can give no
assurance that such expectations will prove to be correct.
Investors are cautioned that many of the assumptions on which these
forward-looking statements are based are likely to change after
such statements are made, including for example the market prices
of oil and gas and regulations affecting oil and gas operations,
which the Company cannot control or anticipate. Further, management
may make changes to the business strategies and plans (including
the Company's capital spending and capital allocation plans) at any
time and without notice, based on any changes in the above-listed
factors, the assumptions or otherwise, any of which could or will
affect the Company's results. For all these reasons, actual events
and results may differ materially from those anticipated,
estimated, projected or implied by the Company in the
forward-looking statements. The Company undertakes no obligation to
update any of the forward-looking statements for any reason and,
notwithstanding any changes in the assumptions, changes in the
business plans, actual experience, or other changes. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof.
FOR FURTHER INFORMATION CONTACT:
David Dunlap, President and CEO;
Robert Taylor, CFO, or
Paul Vincent, VP of Investor
Relations, (713) 654-2200
SUPERIOR ENERGY
SERVICES, INC. AND SUBSIDIARIES
|
Consolidated
Statements of Operations
|
Three and Twelve
Months Ended December 31, 2014 and 2013
|
(in thousands, except
earnings per share amounts)
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ 1,178,626
|
|
$ 1,075,644
|
|
$ 4,556,622
|
|
$ 4,350,057
|
|
|
|
|
|
|
|
|
|
Cost of services and
rentals (exclusive of items shown separately below)
|
|
711,243
|
|
663,660
|
|
2,734,833
|
|
2,633,590
|
Depreciation,
depletion, amortization and accretion
|
|
157,377
|
|
158,009
|
|
650,814
|
|
604,441
|
General and
administrative expenses
|
|
166,740
|
|
156,966
|
|
624,371
|
|
597,778
|
Reduction in value of
assets
|
|
-
|
|
300,078
|
|
-
|
|
300,078
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
143,266
|
|
(203,069)
|
|
546,604
|
|
214,170
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense, net
|
|
(24,124)
|
|
(26,292)
|
|
(96,734)
|
|
(107,902)
|
Other income
(expense)
|
|
(6,201)
|
|
(4,668)
|
|
(7,681)
|
|
(4,627)
|
Loss on early
extinguishment of debt
|
|
-
|
|
-
|
|
-
|
|
(884)
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
112,941
|
|
(234,029)
|
|
442,189
|
|
100,757
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
39,577
|
|
(57,348)
|
|
161,399
|
|
55,272
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
73,364
|
|
(176,681)
|
|
280,790
|
|
45,485
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations, net of income tax
|
|
(7,238)
|
|
(136,858)
|
|
(22,973)
|
|
(156,903)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ 66,126
|
|
$ (313,539)
|
|
$ 257,817
|
|
$ (111,418)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(losses) per share:
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
0.49
|
|
$ (1.11)
|
|
$
1.81
|
|
$
0.29
|
Income (loss) from
discontinued operations
|
|
(0.05)
|
|
(0.86)
|
|
(0.15)
|
|
(0.99)
|
Net income
(loss)
|
|
$
0.44
|
|
$ (1.97)
|
|
$
1.66
|
|
$ (0.70)
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(losses) per share:
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
0.48
|
|
$ (1.11)
|
|
$
1.79
|
|
$
0.28
|
Income (loss) from
discontinued operations
|
|
(0.05)
|
|
(0.86)
|
|
(0.14)
|
|
(0.97)
|
Net income
(loss)
|
|
$
0.43
|
|
$ (1.97)
|
|
$
1.65
|
|
$ (0.69)
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares used in computing
earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
151,287
|
|
159,228
|
|
155,154
|
|
159,206
|
Diluted
|
|
152,399
|
|
159,228
|
|
156,726
|
|
160,780
|
SUPERIOR ENERGY
SERVICES, INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
December 31, 2014
and 2013
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
12/31/2014
|
|
12/31/2013
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 393,046
|
|
$ 196,047
|
Accounts
receivable, net
|
|
926,768
|
|
937,195
|
Deferred
income taxes
|
|
32,138
|
|
8,785
|
Income taxes
receivable
|
|
-
|
|
5,532
|
Prepaid
expenses
|
|
74,750
|
|
70,421
|
Inventory and
other current assets
|
|
185,429
|
|
258,449
|
Assets held
for sale
|
|
116,680
|
|
-
|
|
|
|
|
|
Total
current assets
|
|
1,728,811
|
|
1,476,429
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
2,733,839
|
|
3,002,194
|
Goodwill
|
|
2,468,409
|
|
2,458,109
|
Notes
receivable
|
|
25,970
|
|
23,708
|
Intangible and other
long-term assets, net
|
|
420,360
|
|
450,867
|
|
|
|
|
|
Total
assets
|
|
$ 7,377,389
|
|
$ 7,411,307
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$ 225,306
|
|
$ 216,029
|
Accrued
expenses
|
|
363,747
|
|
376,049
|
Income taxes
payable
|
|
40,213
|
|
-
|
Current
portion of decommissioning liabilities
|
|
-
|
|
27,322
|
Current
maturities of long-term debt
|
|
20,941
|
|
20,000
|
Liabilities
held for sale
|
|
61,840
|
|
-
|
|
|
|
|
|
Total
current liabilities
|
|
712,047
|
|
639,400
|
|
|
|
|
|
Deferred income
taxes
|
|
702,996
|
|
736,080
|
Decommissioning
liabilities
|
|
88,000
|
|
56,197
|
Long-term debt,
net
|
|
1,627,842
|
|
1,646,535
|
Other long-term
liabilities
|
|
166,766
|
|
201,651
|
|
|
|
|
|
Total stockholders'
equity
|
|
4,079,738
|
|
4,131,444
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
|
$ 7,377,389
|
|
$ 7,411,307
|
SUPERIOR ENERGY
SERVICES, INC. AND SUBSIDIARIES
|
SEGMENT
HIGHLIGHTS
|
THREE MONTHS ENDED
DECEMBER 31, 2014, SEPTEMBER 30, 2014, AND DECEMBER 31,
2013
|
(unaudited)
|
|
|
|
|
Three months
ended,
|
|
|
Revenue
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
|
Drilling Products and
Services
|
|
$
238,453
|
|
$
239,204
|
|
$
223,591
|
|
|
Onshore Completion
and Workover Services
|
|
469,130
|
|
470,849
|
|
374,489
|
|
|
Production
Services
|
|
342,153
|
|
348,793
|
|
349,370
|
|
|
Technical
Solutions
|
|
128,890
|
|
150,180
|
|
128,194
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
|
$
1,178,626
|
|
$
1,209,026
|
|
$
1,075,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Operations (1)
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
|
Drilling Products and
Services
|
|
$
78,138
|
|
$
78,110
|
|
$
68,294
|
|
|
Onshore Completion
and Workover Services
|
|
41,003
|
|
54,782
|
|
(3,613)
|
|
|
Production
Services
|
|
9,818
|
|
13,374
|
|
(26,840)
|
|
|
Technical
Solutions
|
|
14,307
|
|
16,055
|
|
(240,914)
|
|
|
|
|
|
|
|
|
|
|
|
Total Income (Loss)
from Operations
|
|
$
143,266
|
|
$
162,321
|
|
$
(203,073)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Income from
Continuing Operations for all prior periods has been adjusted for
discontinued operations from the Technical Solutions segment.
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/superior-energy-services-announces-fourth-quarter-and-full-year-2014-results-300038797.html
SOURCE Superior Energy Services, Inc.