Superior Energy Services, Inc. (the “Company”) filed its Form 10-Q
for the period ended June 30, 2024. In accordance with the
Company’s Shareholders Agreement, it will host a conference call
with shareholders on August 16, 2024.
For the second quarter of 2024, the Company
reported net income from continuing operations of $29.5 million, or
$1.46 per diluted share, with revenue of $201.1 million. This
compares to net income from continuing operations of $37.9 million
or $1.88 per diluted share, with revenue of $208.6 million, for the
first quarter of 2024.
The Company’s Adjusted EBITDA (a non-GAAP
measure defined on page 4) was $60.0 million compared to $68.1
million for the first quarter of 2024. Refer to pages 11 and 12 for
a reconciliation of Adjusted EBITDA to GAAP results.
Brian Moore, Chief Executive Officer, commented,
“Superior Energy’s second quarter results were consistent with the
expectations indicated in our Q1 2024 Earnings Release. Recognizing
changing market conditions, particularly in US Land and Latin
America, our leaders and their teams’ nimble actions enabled us to
deliver expected results. In the second quarter we generated $39
million Free Cash Flow while continuing to support our businesses
with nearly $35 million in capital expenditures.”
Second Quarter 2024 Geographic
Breakdown
U.S. land revenue was $39.0 million for the
second quarter of 2024, a decrease of 16% compared to revenue of
$46.5 million for the first quarter of 2024. The decline in U.S.
land revenue was primarily driven by decreased activity from our
premium drill pipe product line within our Rentals segment,
consistent with a reduced U.S. land rig count.
U.S. offshore revenue was $53.8 million in the
second quarter of 2024, a decrease of 19% compared to revenue of
$66.1 million in the first quarter of 2024. U.S. offshore revenue
decreased across both our Rentals and Well Services segments, with
the most significant decline coming from our project based
completion services product line, which had a strong first quarter
of 2024.
International revenue was $108.4 million in the
second quarter of 2024, an increase of 13% compared to revenue of
$96.0 million in the first quarter of 2024. International revenue
was up across both our Rentals and Well Services segments, with the
increase being driven by our premium drill pipe business unit in
the Rentals segment, and our Kuwait based production services
business in the Well Services segment.
Second Quarter 2024 Segment
Reporting
The Rentals segment revenue in the second
quarter of 2024 was $99.9 million, an 8% decrease compared to
revenue of $108.1 million in the first quarter of 2024, primarily
due to decreases in U.S. land and U.S. offshore market activity for
our premium drill pipe product line. In the second quarter of 2024,
Rentals segment income from operations was $44.1 million as
compared to $51.2 million in the first quarter of 2024. Adjusted
EBITDA was $56.0 million, an 11% decrease from the first quarter of
2024. Adjusted EBITDA Margin (a non-GAAP measure defined on page 4)
was 56%, a 2% decrease from the first quarter of 2024.
The Well Services segment revenue in the second
quarter of 2024 was $101.2 million, a 1% increase compared to
revenue of $100.5 million in the first quarter of 2024. This
increase was primarily driven by improvements in our international
production services businesses, which were partially offset by a
decline in U.S. offshore completion service revenues. In the second
quarter of 2024, Well Services segment income from operations was
$10.7 million as compared to $13.4 million in the first quarter of
2024. Adjusted EBITDA for the second quarter of 2024 was $19.1
million with an Adjusted EBITDA Margin of 19%, as compared to
Adjusted EBITDA of $21.5 million with an Adjusted EBITDA Margin of
21% in the first quarter of 2024.
Liquidity
As of June 30, 2024, the Company had cash, cash
equivalents, and restricted cash of approximately $335.3 million.
As of June 30, 2024, our borrowing base, as defined in our
credit agreement, was approximately $89.4 million, and we had $36.7
million in letters of credit outstanding which reduced the
borrowing availability to $52.7 million. At June 30, 2024, we had
no outstanding borrowings under our credit facility.
Total cash proceeds received during the second
quarter of 2024 from the sale of non-core businesses and assets
were $0.7 million compared to total cash proceeds received during
the first quarter of 2024 of $2.6 million. Additionally, during the
first quarter of 2024, we paid a special cash dividend totaling
$250.4 million to our shareholders.
During the second quarter of 2024, net cash from
operating activities was $73.8 million. Free Cash Flow (a non-GAAP
measure defined on page 4) for the second quarter of 2024 totaled
$39.0 million as compared to $68.2 million for the first quarter of
2024. Refer to page 8 for a reconciliation of Free Cash Flow to Net
Cash from Operating Activities.
Second quarter 2024 capital expenditures were
$34.7 million. The Company expects total capital expenditures for
2024 to be approximately $100 to $110 million. Approximately 89% of
total 2024 capital expenditures are targeted for the replacement of
existing assets. Of the total estimated 2024 capital expenditures,
approximately 68% is expected to be invested in the Rentals
segment.
2024 Guidance
We expect the third quarter of 2024 revenue to
come in at a range of $190 million to $215 million with Adjusted
EBITDA in a range of $55 million to $70 million.
In regard to full year 2024 guidance, we expect
revenue to come in at a range of $780 million to $840 million with
Adjusted EBITDA in a range of $235 million to $265 million.
Conference Call Information
The Company’s management team will host a
conference call on Friday, August 16, 2024, at 10:00 a.m. Eastern
Time. The call will be available via live webcast in the “Events”
section at ir.superiorenergy.com. To access via phone, participants
can register for the call here, where they will be provided a phone
number and access code. The call will be available for replay until
August 16, 2025 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
Measures
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) from continuing activities before net interest
expense, income tax expense (benefit) and depreciation,
amortization, accretion and depletion, restructuring and
transaction expenses, adjusted for other gains and losses and other
expenses, net, 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 11 and 12 of
this press release.
Free Cash Flow is defined as net cash from
operating activities less payments for capital expenditures. Free
Cash Flow is considered a non-GAAP financial measure under the
SEC’s rules. Management believes, however, that Free Cash Flow is
an important financial measure for use in evaluating the Company’s
financial performance, as it measures our ability to generate
additional cash from our business operations. Free Cash Flow should
be considered in addition to, rather than as a substitute for, net
income as a measure of our performance or net cash provided by
operating activities as a measure of our liquidity. Additionally,
our definition of Free Cash Flow is limited and does not represent
residual cash flows available for discretionary expenditures due to
the fact that the measure does not deduct the payments required for
debt service and other obligations or payments made for business
acquisitions. Therefore, we believe it is important to view Free
Cash Flow as supplemental to our entire Statement of Cash
Flows.
The Company is unable to provide a
reconciliation of the forward-looking non-GAAP financial measure,
Adjusted EBITDA, contained in this press release to its most
directly comparable GAAP financial measure, net income, as 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 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.
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”, “will,” “could,” “may” 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 and
results, financial performance, liquidity, strategic alternatives
(including dispositions, acquisitions, 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, U.S. and global market and
economic conditions generally and macroeconomic conditions
worldwide, (including inflation, interest rates, supply chain
disruptions and capital and credit markets conditions) 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, 2023 and subsequent reports on Form
10-Qs 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.
|
|
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES |
|
CONSOLIDATED
STATEMENTS OF OPERATIONS |
|
(in thousands,
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentals |
|
$ |
99,851 |
|
|
$ |
108,091 |
|
|
$ |
112,411 |
|
|
$ |
207,942 |
|
|
$ |
221,232 |
|
Well Services |
|
|
101,230 |
|
|
|
100,543 |
|
|
|
132,062 |
|
|
|
201,773 |
|
|
|
243,378 |
|
Total revenues |
|
|
201,081 |
|
|
|
208,634 |
|
|
|
244,473 |
|
|
|
409,715 |
|
|
|
464,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentals |
|
|
36,596 |
|
|
|
37,766 |
|
|
|
35,021 |
|
|
|
74,362 |
|
|
|
71,489 |
|
Well Services |
|
|
71,672 |
|
|
|
68,873 |
|
|
|
85,733 |
|
|
|
140,545 |
|
|
|
166,986 |
|
Total cost of revenues |
|
|
108,268 |
|
|
|
106,639 |
|
|
|
120,754 |
|
|
|
214,907 |
|
|
|
238,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion, amortization and accretion |
|
|
20,868 |
|
|
|
20,447 |
|
|
|
20,621 |
|
|
|
41,315 |
|
|
|
40,760 |
|
General and administrative expenses |
|
|
33,404 |
|
|
|
34,975 |
|
|
|
31,177 |
|
|
|
68,379 |
|
|
|
62,167 |
|
Restructuring and transaction expenses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,983 |
|
Other (gains) and losses, net |
|
|
(614 |
) |
|
|
(1,082 |
) |
|
|
47 |
|
|
|
(1,696 |
) |
|
|
(1,351 |
) |
Income from operations |
|
|
39,155 |
|
|
|
47,655 |
|
|
|
71,874 |
|
|
|
86,810 |
|
|
|
122,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
5,760 |
|
|
|
6,840 |
|
|
|
6,513 |
|
|
|
12,600 |
|
|
|
11,952 |
|
Other expense |
|
|
(2,082 |
) |
|
|
(1,813 |
) |
|
|
(1,836 |
) |
|
|
(3,895 |
) |
|
|
(3,988 |
) |
Income from continuing operations before income
taxes |
|
|
42,833 |
|
|
|
52,682 |
|
|
|
76,551 |
|
|
|
95,515 |
|
|
|
130,540 |
|
Income tax expense |
|
|
(13,370 |
) |
|
|
(14,787 |
) |
|
|
(9,147 |
) |
|
|
(28,157 |
) |
|
|
(33,212 |
) |
Net income from continuing operations |
|
|
29,463 |
|
|
|
37,895 |
|
|
|
67,404 |
|
|
|
67,358 |
|
|
|
97,328 |
|
Income (loss) from discontinued operations, net of income tax |
|
|
1,896 |
|
|
|
- |
|
|
|
(9 |
) |
|
|
1,896 |
|
|
|
280 |
|
Net income |
|
$ |
31,359 |
|
|
$ |
37,895 |
|
|
$ |
67,395 |
|
|
$ |
69,254 |
|
|
$ |
97,608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share - basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
1.46 |
|
|
$ |
1.88 |
|
|
$ |
3.35 |
|
|
$ |
3.34 |
|
|
$ |
4.84 |
|
Income (loss) from discontinued operations, net of income tax |
|
|
0.09 |
|
|
|
- |
|
|
|
- |
|
|
|
0.09 |
|
|
|
0.01 |
|
Net income |
|
$ |
1.55 |
|
|
$ |
1.88 |
|
|
$ |
3.35 |
|
|
$ |
3.43 |
|
|
$ |
4.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share - diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
1.46 |
|
|
$ |
1.88 |
|
|
$ |
3.35 |
|
|
$ |
3.34 |
|
|
$ |
4.83 |
|
Income (loss) from discontinued operations, net of income tax |
|
|
0.09 |
|
|
|
- |
|
|
|
- |
|
|
|
0.09 |
|
|
|
0.02 |
|
Net income |
|
$ |
1.55 |
|
|
$ |
1.88 |
|
|
$ |
3.35 |
|
|
$ |
3.43 |
|
|
$ |
4.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
20,172 |
|
|
|
20,162 |
|
|
|
20,126 |
|
|
|
20,167 |
|
|
|
20,116 |
|
Diluted |
|
|
20,183 |
|
|
|
20,180 |
|
|
|
20,143 |
|
|
|
20,181 |
|
|
|
20,136 |
|
|
|
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES |
|
CONSOLIDATED
BALANCE SHEETS |
|
(in thousands,
unaudited) |
|
|
|
June
30, |
|
|
December
31, |
|
|
|
2024 |
|
|
2023 |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
281,254 |
|
|
$ |
391,684 |
|
Accounts receivable, net |
|
|
219,488 |
|
|
|
276,868 |
|
Inventory |
|
|
66,267 |
|
|
|
74,995 |
|
Income taxes receivable |
|
|
12,776 |
|
|
|
10,542 |
|
Prepaid expenses |
|
|
25,716 |
|
|
|
18,614 |
|
Other current assets |
|
|
7,148 |
|
|
|
7,922 |
|
Total current assets |
|
|
612,649 |
|
|
|
780,625 |
|
Property, plant and equipment, net |
|
|
309,994 |
|
|
|
294,960 |
|
Notes receivable |
|
|
71,443 |
|
|
|
69,005 |
|
Restricted cash |
|
|
54,003 |
|
|
|
85,444 |
|
Deferred tax assets |
|
|
55,790 |
|
|
|
67,241 |
|
Other assets, net |
|
|
42,114 |
|
|
|
43,718 |
|
Total assets |
|
$ |
1,145,993 |
|
|
$ |
1,340,993 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT) |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
38,515 |
|
|
$ |
38,214 |
|
Accrued expenses |
|
|
93,786 |
|
|
|
103,782 |
|
Income taxes payable |
|
|
19,841 |
|
|
|
20,220 |
|
Decommissioning liability |
|
|
27,485 |
|
|
|
21,631 |
|
Total current liabilities |
|
|
179,627 |
|
|
|
183,847 |
|
Decommissioning liability |
|
|
147,284 |
|
|
|
148,652 |
|
Other liabilities |
|
|
39,790 |
|
|
|
47,583 |
|
Total liabilities |
|
|
366,701 |
|
|
|
380,082 |
|
|
|
|
|
|
|
|
Total equity |
|
|
779,292 |
|
|
|
960,911 |
|
Total liabilities and equity |
|
$ |
1,145,993 |
|
|
$ |
1,340,993 |
|
|
|
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES |
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(in thousands,
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
31,359 |
|
|
$ |
37,895 |
|
|
$ |
67,395 |
|
|
$ |
69,254 |
|
|
$ |
97,608 |
|
Adjustments to reconcile net loss to net cash from operating
activities: |
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
Depreciation, depletion, amortization and accretion |
|
|
20,868 |
|
|
|
20,447 |
|
|
|
20,621 |
|
|
|
41,315 |
|
|
|
40,760 |
|
Other non-cash items |
|
|
4,205 |
|
|
|
3,235 |
|
|
|
8,392 |
|
|
|
7,440 |
|
|
|
22,791 |
|
Washington State Tax Settlement |
|
|
- |
|
|
|
- |
|
|
|
(27,068 |
) |
|
|
- |
|
|
|
(27,068 |
) |
Decommissioning costs |
|
|
(143 |
) |
|
|
(430 |
) |
|
|
(2,878 |
) |
|
|
(573 |
) |
|
|
(2,878 |
) |
Changes in operating assets and liabilities: |
|
|
17,487 |
|
|
|
27,747 |
|
|
|
(36,780 |
) |
|
|
45,234 |
|
|
|
(28,278 |
) |
Net cash from operating activities |
|
|
73,776 |
|
|
|
88,894 |
|
|
|
29,682 |
|
|
|
162,670 |
|
|
|
102,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for capital expenditures |
|
|
(34,744 |
) |
|
|
(20,698 |
) |
|
|
(27,540 |
) |
|
|
(55,442 |
) |
|
|
(45,626 |
) |
Proceeds from sales of assets |
|
|
669 |
|
|
|
2,616 |
|
|
|
3,578 |
|
|
|
3,285 |
|
|
|
15,147 |
|
Net cash from investing activities |
|
|
(34,075 |
) |
|
|
(18,082 |
) |
|
|
(23,962 |
) |
|
|
(52,157 |
) |
|
|
(30,479 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to shareholders |
|
|
- |
|
|
|
(250,417 |
) |
|
|
- |
|
|
|
(250,417 |
) |
|
|
- |
|
Repurchase of shares |
|
|
- |
|
|
|
(962 |
) |
|
|
- |
|
|
|
(962 |
) |
|
|
- |
|
Other |
|
|
- |
|
|
|
(1,005 |
) |
|
|
- |
|
|
|
(1,005 |
) |
|
|
(1,116 |
) |
Net cash from financing activities |
|
|
- |
|
|
|
(252,384 |
) |
|
|
- |
|
|
|
(252,384 |
) |
|
|
(1,116 |
) |
Net change in cash, cash equivalents, and restricted cash |
|
|
39,701 |
|
|
|
(181,572 |
) |
|
|
5,720 |
|
|
|
(141,871 |
) |
|
|
71,340 |
|
Cash, cash equivalents and restricted cash at beginning of
period |
|
|
295,556 |
|
|
|
477,128 |
|
|
|
404,727 |
|
|
|
477,128 |
|
|
|
339,107 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
335,257 |
|
|
$ |
295,556 |
|
|
$ |
410,447 |
|
|
$ |
335,257 |
|
|
$ |
410,447 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from operating activities |
|
$ |
73,776 |
|
|
$ |
88,894 |
|
|
$ |
29,682 |
|
|
$ |
162,670 |
|
|
$ |
102,935 |
|
Payments for capital expenditures |
|
|
(34,744 |
) |
|
|
(20,698 |
) |
|
|
(27,540 |
) |
|
|
(55,442 |
) |
|
|
(45,626 |
) |
Free Cash Flow |
|
$ |
39,032 |
|
|
$ |
68,196 |
|
|
$ |
2,142 |
|
|
$ |
107,228 |
|
|
$ |
57,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow is a Non-GAAP measure. See Non-GAAP Measures for our
definition of Free Cash Flow. |
|
|
|
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES |
|
REVENUE BY
GEOGRAPHIC REGION BY SEGMENT |
|
(in thousands,
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
Mar 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
U.S. land |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentals |
|
$ |
32,713 |
|
|
$ |
39,006 |
|
|
$ |
44,730 |
|
|
$ |
71,719 |
|
|
$ |
89,863 |
|
Well Services |
|
|
6,242 |
|
|
|
7,466 |
|
|
|
5,806 |
|
|
|
13,708 |
|
|
|
12,161 |
|
Total U.S. land |
|
|
38,955 |
|
|
|
46,472 |
|
|
|
50,536 |
|
|
|
85,427 |
|
|
|
102,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. offshore |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentals |
|
|
30,644 |
|
|
|
37,251 |
|
|
|
37,516 |
|
|
|
67,895 |
|
|
|
73,186 |
|
Well Services |
|
|
23,125 |
|
|
|
28,872 |
|
|
|
23,405 |
|
|
|
51,997 |
|
|
|
39,726 |
|
Total U.S. offshore |
|
|
53,769 |
|
|
|
66,123 |
|
|
|
60,921 |
|
|
|
119,892 |
|
|
|
112,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentals |
|
|
36,494 |
|
|
|
31,834 |
|
|
|
30,165 |
|
|
|
68,328 |
|
|
|
58,183 |
|
Well Services |
|
|
71,863 |
|
|
|
64,205 |
|
|
|
102,851 |
|
|
|
136,068 |
|
|
|
191,491 |
|
Total International |
|
|
108,357 |
|
|
|
96,039 |
|
|
|
133,016 |
|
|
|
204,396 |
|
|
|
249,674 |
|
Total Revenues |
|
$ |
201,081 |
|
|
$ |
208,634 |
|
|
$ |
244,473 |
|
|
$ |
409,715 |
|
|
$ |
464,610 |
|
|
|
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES |
|
SEGMENT
HIGHLIGHTS |
|
(in thousands,
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months
Ended |
|
|
|
June 30, |
|
|
Mar 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentals |
|
$ |
99,851 |
|
|
$ |
108,091 |
|
|
$ |
112,411 |
|
|
$ |
207,942 |
|
|
$ |
221,232 |
|
Well Services |
|
|
101,230 |
|
|
|
100,543 |
|
|
|
132,062 |
|
|
|
201,773 |
|
|
|
243,378 |
|
Total Revenues |
|
$ |
201,081 |
|
|
$ |
208,634 |
|
|
$ |
244,473 |
|
|
$ |
409,715 |
|
|
$ |
464,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentals |
|
$ |
44,061 |
|
|
$ |
51,211 |
|
|
$ |
58,106 |
|
|
$ |
95,272 |
|
|
$ |
111,120 |
|
Well Services |
|
|
10,686 |
|
|
|
13,392 |
|
|
|
27,425 |
|
|
|
24,078 |
|
|
|
40,279 |
|
Corporate and other |
|
|
(15,592 |
) |
|
|
(16,948 |
) |
|
|
(13,657 |
) |
|
|
(32,540 |
) |
|
|
(28,823 |
) |
Income from operations |
|
$ |
39,155 |
|
|
$ |
47,655 |
|
|
$ |
71,874 |
|
|
$ |
86,810 |
|
|
$ |
122,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentals |
|
$ |
56,023 |
|
|
$ |
63,021 |
|
|
$ |
70,659 |
|
|
$ |
119,044 |
|
|
$ |
135,841 |
|
Well Services |
|
|
19,078 |
|
|
|
21,523 |
|
|
|
34,629 |
|
|
|
40,601 |
|
|
|
54,560 |
|
Corporate and other |
|
|
(15,078 |
) |
|
|
(16,442 |
) |
|
|
(12,793 |
) |
|
|
(31,520 |
) |
|
|
(25,082 |
) |
Total Adjusted EBITDA |
|
$ |
60,023 |
|
|
$ |
68,102 |
|
|
$ |
92,495 |
|
|
$ |
128,125 |
|
|
$ |
165,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rentals |
|
|
56 |
% |
|
|
58 |
% |
|
|
63 |
% |
|
|
57 |
% |
|
|
61 |
% |
Well Services |
|
|
19 |
% |
|
|
21 |
% |
|
|
26 |
% |
|
|
20 |
% |
|
|
22 |
% |
Corporate and other |
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
Total Adjusted EBITDA Margin |
|
|
30 |
% |
|
|
33 |
% |
|
|
38 |
% |
|
|
31 |
% |
|
|
36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA is a
Non-GAAP measure. See Non-GAAP Measures for our definition of
Adjusted EBITDA and page 12 for a reconciliation to income (loss)
from operations |
|
|
|
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES |
|
RECONCILIATION OF ADJUSTED EBITDA |
|
(in thousands,
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
Mar 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
29,463 |
|
|
$ |
37,895 |
|
|
$ |
67,404 |
|
|
$ |
67,358 |
|
|
$ |
97,328 |
|
Depreciation, depletion, amortization and accretion |
|
|
20,868 |
|
|
|
20,447 |
|
|
|
20,621 |
|
|
|
41,315 |
|
|
|
40,760 |
|
Interest income, net |
|
|
(5,760 |
) |
|
|
(6,840 |
) |
|
|
(6,513 |
) |
|
|
(12,600 |
) |
|
|
(11,952 |
) |
Income tax expense |
|
|
13,370 |
|
|
|
14,787 |
|
|
|
9,147 |
|
|
|
28,157 |
|
|
|
33,212 |
|
Restructuring and transaction expenses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,983 |
|
Other losses, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
Other expense, net |
|
|
2,082 |
|
|
|
1,813 |
|
|
|
1,836 |
|
|
|
3,895 |
|
|
|
3,988 |
|
Adjusted EBITDA |
|
$ |
60,023 |
|
|
$ |
68,102 |
|
|
$ |
92,495 |
|
|
$ |
128,125 |
|
|
$ |
165,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA is a
Non-GAAP measure. See Non-GAAP Measures for our definition of
Adjusted EBITDA. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPERIOR
ENERGY SERVICES, INC. AND SUBSIDIARIES |
|
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT |
|
(in thousands,
unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
Mar 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Rentals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
44,061 |
|
|
$ |
51,211 |
|
|
$ |
58,106 |
|
|
$ |
95,272 |
|
|
$ |
111,120 |
|
Depreciation, depletion, amortization and accretion |
|
|
11,962 |
|
|
|
11,810 |
|
|
|
12,553 |
|
|
|
23,772 |
|
|
|
24,721 |
|
Adjusted EBITDA |
|
$ |
56,023 |
|
|
$ |
63,021 |
|
|
$ |
70,659 |
|
|
$ |
119,044 |
|
|
$ |
135,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Well Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
10,686 |
|
|
$ |
13,392 |
|
|
$ |
27,425 |
|
|
$ |
24,078 |
|
|
$ |
40,279 |
|
Depreciation, depletion, amortization and accretion |
|
|
8,392 |
|
|
|
8,131 |
|
|
|
7,204 |
|
|
|
16,523 |
|
|
|
14,281 |
|
Adjusted EBITDA |
|
$ |
19,078 |
|
|
$ |
21,523 |
|
|
$ |
34,629 |
|
|
$ |
40,601 |
|
|
$ |
54,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
$ |
(15,592 |
) |
|
$ |
(16,948 |
) |
|
$ |
(13,657 |
) |
|
$ |
(32,540 |
) |
|
$ |
(28,823 |
) |
Depreciation, depletion, amortization and accretion |
|
|
514 |
|
|
|
506 |
|
|
|
864 |
|
|
|
1,020 |
|
|
|
1,758 |
|
Restructuring and transaction expenses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,983 |
|
Other adjustments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted EBITDA |
|
$ |
(15,078 |
) |
|
$ |
(16,442 |
) |
|
$ |
(12,793 |
) |
|
$ |
(31,520 |
) |
|
$ |
(25,082 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
|
$ |
39,155 |
|
|
$ |
47,655 |
|
|
$ |
71,874 |
|
|
$ |
86,810 |
|
|
$ |
122,576 |
|
Depreciation, depletion, amortization and accretion |
|
|
20,868 |
|
|
|
20,447 |
|
|
|
20,621 |
|
|
|
41,315 |
|
|
|
40,760 |
|
Restructuring and transaction expenses |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,983 |
|
Other adjustments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjusted EBITDA |
|
$ |
60,023 |
|
|
$ |
68,102 |
|
|
$ |
92,495 |
|
|
$ |
128,125 |
|
|
$ |
165,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA is a
Non-GAAP measure. See Non-GAAP Measures for our definition of
Adjusted EBITDA. |
|
|
|
FOR FURTHER INFORMATION CONTACT: Jamie Spexarth, Chief Financial
Officer 1001 Louisiana St., Suite 2900 Houston, TX 77002 Investor
Relations, ir@superiorenergy.com, (713) 654-2200