[0] Superior Energy Services Announces Record Third Quarter Results.Business Editors & Energy Writers HARVEY Harvey, city (1990 pop. 29,771), Cook co., NE Ill., a suburb S of Chicago; inc. 1895. Its manufactures include steel castings, metal products, chemicals, machinery, and electronic equipment. Harvey has an oil research center. The city was founded by Turlington W. , La.--(BUSINESS WIRE)--Nov. 6, 2001 Superior Energy Services Superior Energy Services is an oil and gas company based in Harvey, Louisiana, USA with many other locations around the world. , Inc. (NYSE NYSE See: New York Stock Exchange :SPN SPN Symantec Protection Network SPN Supernatural (TV show) SPN Specifications (TMINS) SPn Streptococcus Pneumoniae SPN Society of Pediatric Nurses SPN solitary pulmonary nodule ) today announced results for the third quarter ended September September: see month. 30, 2001. For the period, revenues were a record $128.6 million resulting in record net income of $15.3 million, or $0.22 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , as compared to revenue of $71.3 million and net income of $6.0 million, or $0.09 diluted earnings per share for the third quarter of 2000. Well Intervention A well intervention, or 'well work', is an activity involving maintenance, modification, repair or completion of an oil or gas well. Types of well work Pumping
Revenue for Superior's Well Intervention Group was $52.2 million, 25% higher than the second quarter of 2001. Demand increased for mechanical wireline, electric line and well control services. The group benefited from additional activity related to the Wild Well Control acquisition and from 21 coiled tubing Coiled tubing refers to metal piping, normally 1" to 2" in diameter, used for interventions in oil and gas wells, which comes spooled on a large drum. The main benefits over wireline are the ability to pump chemicals through the coil and the ability to push it into hole rather than units added through the Power Offshore/Reeled Tubing acquisition. International Snubbing Snubbing is a type of heavy well intervention performed on oil and gas wells. It involves running the BHA on a pipe string using a hydraulic workover rig. Unlike wireline or coiled tubing, the pipe is not spooled off a drum but made up and broken up while running in and pulling Services ("ISS ISS See Institutional Shareholder Services (ISS). "), the Company's hydraulic workover and snubbing subsidiary, renewed its contract with ESSO ESSO Standard Oil ESSO Enterprise Single Sign-On ESSO Executive Support Staff Officer ESSO Eastern States Standard Oil (ExxonMobil) ESSO Every Saturday and Sunday Off (UK) ESSO Earth Science Support Office in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. . The two-year contract calls for ISS to provide ESSO with hydraulic workover services and equipment. ISS has provided its equipment and rigs to ESSO in that market for 13 consecutive years. Rental Tools Segment Revenue for the Rental Tools segment was $32.6 million, a 12% increase over the second quarter of 2001. The segment was driven by increased rentals of drill pipe and accessories, gravel gravel, particles of rock, i.e., stones and pebbles, usually round in form and intermediate in size between sand grains and boulders. Gravel is composed of various kinds of rock, the most common constituent being the mineral quartz. packs, high-pressure high-pres·sure adj. 1. Of or relating to pressures higher than normal, especially higher than atmospheric pressure. 2. Informal a. connecting iron and on-site accommodations. Increased demand in the deepwater Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east market area offset decreased activity in the shallow water See:
n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by the acquisition of Workstrings, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , in the third quarter. Workstrings provides drill pipe and landing strings to the eastern deepwater Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. drilling market area as well as to customers in the Gulf of Mexico. Marine Segment Superior's marine revenue increased 16% sequentially over the second quarter to $21.4 million. Dayrates and utilization for most of the Company's smaller liftboat classes increased as compared to the second quarter. The gross margin was impacted by reduced dayrates and utilization for the Company's four, 200-ft. class liftboats and its one 250-ft. class liftboat as well as higher maintenance costs and U.S. Coast Guard inspections.
Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended September 30, 2001
($ actual)
Class Liftboats Average Dayrate Utilization
------ --------- --------------- -----------
105' 8 $ 3,140 86.1%
120-135' 9 3,584 82.9%
145-155' 11 6,374 81.9%
160' 3 8,681 88.8%
170' 3 9,641 71.0%
200' 4 10,908 83.2%
250' 1 25,975 64.1%
Superior expects to take delivery of a new 230-ft. class liftboat by November 15. The liftboat, named the Superior Champion, will be able to operate in up to 180 ft. of water, has an open deck area of 6,500 square feet and a deck load of more than 1 million pounds, and is equipped with two cranes, including one capable of 200-ton lifts. The Champion will house up to 43 people. Field Management Segment Field Management revenue was $16.5 million, a 14% increase over the second quarter. Higher revenue and improved gross margin are attributable to increased activity for offshore construction and fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. services. Environmental and Other Segment Revenue from this segment was $6.0 million, the same revenue recorded in the prior quarter. An increase in maintenance cleaning and offshore services was offset by lower dockside services revenue, which was affected by weather and reduced drilling activity. President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Terry Hall Comments President and CEO Terry Hall commented, "Our business grew despite changing market conditions and poor weather. We benefited from increased demand in our rental tools segment due in part to our focus on the deepwater Gulf of Mexico and eastern Canada Eastern Canada (also the Eastern provinces) is the region of Canada generally considered to be east of Manitoba, consisting of the following provinces:
"Although short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. forecasts for Gulf of Mexico activity remain uncertain, we believe we are well positioned in long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth markets - the shallow water production and deepwater drilling market areas of the Gulf of Mexico. We have built a strong market presence in these areas because of our bundling of well intervention services, our cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. solutions and our diverse inventory of rental tools and accessories." The Company will host a conference call at 10 a.m. Central Time today. The call can be accessed from Superior's website at www.superiorenergy.com, or by telephone at 800/763-5557. The replay telephone number is 800/642-1687 and the replay passcode is 2124928. Superior Energy Services, Inc. provides a broad range of specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. 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 instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. and the manufacture and sale of oil spill oil spill: see water pollution. containment containment Strategic U.S. foreign policy of the late 1940s and early 1950s intended to check the expansionist designs of the Soviet Union through economic, military, diplomatic, and political means. It was conceived by George Kennan soon after World War II. equipment. This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , 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 AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(in thousands, except earnings per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- -------------------
2001 2000 2001 2000
---------- --------- --------- ---------
Revenues $ 128,606 $ 71,251 $ 329,501 $ 176,117
---------- --------- --------- ---------
Costs and expenses:
Cost of services 67,876 40,203 171,913 101,896
Depreciation and amortization 8,966 6,302 23,864 15,974
General and administrative 20,265 11,842 51,991 30,826
---------- --------- --------- ---------
Total costs and expenses 97,107 58,347 247,768 148,696
---------- --------- --------- ---------
Income from operations 31,499 12,904 81,733 27,421
Other income (expense):
Interest expense (6,035) (3,145) (14,581) (9,133)
Interest income 431 561 1,483 1,395
---------- --------- --------- ---------
Income before income taxes and
cumulative effect of change in
accounting principle 25,895 10,320 68,635 19,683
Income taxes 10,616 4,335 28,140 8,267
---------- --------- --------- ---------
Income before cumulative effect
of change in accounting
principle 15,279 5,985 40,495 11,416
Cumulative effect of change
in accounting principle,
net of income tax expense - - 2,589 -
---------- --------- --------- ---------
Net income $ 15,279 $ 5,985 $ 43,084 $ 11,416
========== ========= ========= =========
Basic earnings per share:
Earnings before cumulative effect
of change in
accounting principle $ 0.22 $ 0.09 $ 0.59 $ 0.18
Cumulative change in accounting
principle - - 0.04 -
---------- --------- --------- ---------
Earnings per share $ 0.22 $ 0.09 $ 0.63 $ 0.18
========== ========= ========= =========
Diluted earnings per share:
Earnings before cumulative
effect of change in
accounting principles $ 0.22 $ 0.09 $ 0.58 $ 0.18
Cumulative change in accounting
principle - - 0.04 -
---------- --------- --------- ---------
Earnings per share $ 0.22 $ 0.09 $ 0.62 $ 0.18
========== ========= ========= =========
Weighted average common shares
used in computing earnings
per share:
Basic 68,668 67,616 68,309 64,052
========== ========= ========= =========
Diluted 69,379 68,672 69,460 64,972
========== ========= ========= =========
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
(in thousands)
09/30/01 12/31/00
(Unaudited) (Audited)
--------- -------
ASSETS
Current assets:
Cash and cash equivalents $ 10,871 $ 4,254
Accounts receivable - net 119,213 74,010
Deferred tax asset 1,590 3,506
Prepaid insurance and other 9,680 7,000
--------- ---------
Total current assets 141,354 88,770
Property, plant and equipment - net 330,865 202,498
Goodwill - net 149,839 114,650
Notes receivable 22,777 19,213
Other assets - net 10,981 5,545
--------- ---------
Total assets $ 655,816 $ 430,676
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 30,698 $ 22,670
Accrued expenses 35,101 14,660
Income taxes payable 9,794 -
Current maturities of long-term debt 10,111 16,402
--------- ---------
Total current liabilities 85,704 53,732
--------- ---------
Deferred income taxes 34,760 24,304
Long-term debt 280,543 146,393
Total stockholders' equity 254,809 206,247
--------- ---------
Total liabilities and stockholders' equity $ 655,816 $ 430,676
========= =========
Superior Energy Services, Inc.
Segment Highlights
Three months ended September 30, 2001 and 2000, and June 30, 2001
(Unaudited)
($ in thousands)
Revenue September June September
2001 2001 2000
--------- ------ ---------
Well Intervention Group $52,179 $41,604 $24,477
Marine 21,351 18,483 10,074
Rental Tools 32,635 29,141 21,485
Field Management 16,466 14,433 9,989
Environmental & Other 5,975 5,978 5,226
-------- -------- -------
Total $128,606 $109,639 $71,251
Gross Profit
Well Intervention Group $23,972 $20,002 $9,298
Marine 10,970 10,600 4,690
Rental Tools 21,081 18,580 14,097
Field Management 2,197 1,892 1,077
Environmental & Other 2,510 2,846 1,886
------- ------- -------
Total $60,730 $53,920 $31,048
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion