CORRECTING and REPLACING Superior Energy Services, Inc. Announces Fourth Quarter 2003 Results.Energy Editors/Business Editors CORRECTION...by Business Wire 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)--March 4, 2004 In BW5126 issued March 4, 2004: The sixth graph titled "Rental Tools Segment" and the seventh graph titled "Marine Segment" have been replaced. The corrected release reads: 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 inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . ANNOUNCES FOURTH QUARTER 2003 RESULTS Superior Energy Services, 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 fourth quarter ended December December: see month. 31, 2003. For the quarter, revenues were $120.3 million resulting in net income of $5.9 million or $0.08 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 revenues of $118.4 million and net income of $5.6 million or $0.08 diluted earnings per share for the fourth quarter of 2002. For the year ended December 31, 2003, revenues were a record $500.6 million and net income was $30.5 million or $0.41 diluted earnings per share, as compared to revenues of $443.1 million and net income of $21.9 million or $0.30 diluted earnings per share for the year ended December 31, 2002. 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, "During the fourth quarter, 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
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 remained solid until late November November: see month. , at which time activity slowed dramatically and did not pick up for the rest of the year. In our rental tool segment, rentals were down from the third quarter as the Gulf of Mexico rig count remained at low levels. Despite only modest increases in Gulf of Mexico activity, Superior was able to post a record year in terms of revenue, and generate cash that was more than sufficient to service debt and maintain the company's capital expenditure budget. "While visibility for 2004 is still unclear, we are encouraged by the ability to put assets to work on our own properties through SPN Resources, which allows us to deploy production-related services and liftboats to enhance our own production. We believe we are gaining momentum in this business as evidenced by our ability to close on multiple transactions since December 2003. This will help us keep well intervention and liftboat assets working when demand from our traditional customer base slows. As a result, our growth will be driven to a large extent by Gulf of Mexico activity levels, our growing international business and our backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of work as a result of properties owned and operated by SPN Resources." Well Intervention Group Segment Fourth quarter revenues for the Well Intervention Group were $49.9 million, basically flat from the third quarter of 2003. Activity increased in electric line, pumping and stimulation, hydraulic workover and well control services, offset by decreased activity in 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 , well services Well services is a department within a petroleum production company through which matters concerning existing wells are handled. Having a shared well services department for all (or at least multiple) assets operated by a company is seen as advantageous as it allows the pooling of and mechanical wireline. Rental Tools Segment Revenues for the Rental Tools segment were $35.0 million, basically flat as compared to the third quarter of 2003. Rentals of stabilizers The Stabilizers were a pop/rock duo founded in the early 1980s by musicians Dave Christenson and Rich Nevens. With Christenson on lead vocals and Nevens on guitars and occasional keyboards, they spent the first few years touring the Pennsylvania area and recording original and on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. accommodations increased, particularly on land in the Texas market. However, rentals of drill pipe, connecting iron and handling tools decreased as deepwater Deepwater or Deep Water may refer to:
Marine Segment Superior's Marine Segment revenues were $16.0 million, a decrease of 8% as compared to the third quarter of 2003. Average fleet utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be was flat compared to the third quarter of 2003, and the average fleet dayrate was $5,993 in the fourth quarter as compared to $6,238 for the third quarter of 2003.
Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended December 31, 2003
($ actual)
Class Liftboats Average Dayrate Utilization
---------- -------------- ------------------- -------------
105' 6(a) $3,003 50.0%
120-135' 7(a) 3,457 73.1%
145-155' 11 4,399 57.9%
160'-175' 6 6,183 74.1%
200' 3 9,750 88.6%
230'-245' 3 10,652 65.6%
250' 2 16,858 79.4%
(a) Does not include two 105-foot class liftboats and one 120-foot
class liftboat that were stacked.
Other Oilfield Services Segment Revenues in this segment were $19.4 million, a 24% decrease as compared to the third quarter of 2003 due primarily to the third quarter sale of the company's construction assets and a decrease in environmental services The various combinations of scientific, technical, and advisory activities (including modification processes, i.e., the influence of manmade and natural factors) required to acquire, produce, and supply information on the past, present, and future states of space, atmospheric, and field management. The sale of the construction assets in the third quarter accounted for 85% of the decrease in revenues for the oilfield services segment. The Company will host a conference call at 10:30 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 5468139. The replay is available beginning two hours after the call and ending March 11, 2004. 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 abandonment, in law, voluntary, intentional, and absolute relinquishment of rights or property without conveying them to any other person. Abandonment also means willfully leaving one's spouse or children, intending not to return (see desertion). services, well control, hydraulic workover, coiled tubing services and engineering services. Additional services provided include contract operating and supplemental labor, 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 Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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 Twelve Months Ended December 31, 2003 and 2002
(in thousands, except earnings per share amounts)
(unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
------------------- -------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Revenues $120,257 $118,378 $500,625 $443,147
--------- --------- --------- ---------
Costs and expenses:
Cost of services 69,710 69,820 289,607 258,334
Depreciation and
amortization 12,852 11,322 48,853 41,595
General and administrative 23,249 22,279 94,822 86,197
--------- --------- --------- ---------
Total costs and expenses 105,811 103,421 433,282 386,126
--------- --------- --------- ---------
Income from operations 14,446 14,957 67,343 57,021
Other income (expense):
Interest expense (5,673) (5,597) (22,477) (21,884)
Interest income 98 100 209 530
Other income - - 2,762 -
Equity in income (loss) of
affiliates 493 (338) 985 (80)
--------- --------- --------- ---------
Income before income taxes 9,364 9,122 48,822 35,587
Income taxes 3,511 3,512 18,308 13,701
--------- --------- --------- ---------
Net income $5,853 $5,610 $30,514 $21,886
========= ========= ========= =========
Basic earnings per share $0.08 $0.08 $0.41 $0.30
========= ========= ========= =========
Diluted earnings per share $0.08 $0.08 $0.41 $0.30
========= ========= ========= =========
Weighted average common shares
used in computing earnings
per share:
Basic 74,079 73,784 73,970 72,912
========= ========= ========= =========
Diluted 74,759 74,480 74,648 73,872
========= ========= ========= =========
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2003 AND DECEMBER 31, 2002
(in thousands)
12/31/2003 12/31/2002
(Unaudited) (Audited)
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $19,794 $3,480
Accounts receivable - net 112,775 108,352
Income taxes receivable - 6,087
Notes receivable 19,212 -
Prepaid insurance and other 14,059 11,663
----------- -----------
Total current assets 165,840 129,582
Property, plant and equipment - net 427,360 418,047
Goodwill - net 204,727 160,366
Notes receivable 15,145 -
Investments in affiliates 13,224 12,343
Other assets - net 6,567 7,282
----------- -----------
Total assets $832,863 $727,620
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $20,817 $21,010
Accrued expenses 48,949 33,871
Income taxes payable 138 -
Decommissioning liabilities 20,097 -
Current maturities of long-term debt 14,210 13,730
----------- -----------
Total current liabilities 104,211 68,611
----------- -----------
Deferred income taxes 86,251 67,333
Decommissioning liabilities 18,756 -
Long-term debt 255,516 256,334
Total stockholders' equity 368,129 335,342
----------- -----------
Total liabilities and stockholders'
equity $832,863 $727,620
=========== ===========
Superior Energy Services, Inc. and Subsidiaries
Segment Highlights
Three months ended December 31, 2003 and 2002
(Unaudited)
(in thousands)
Revenue December 2003 December 2002
--------------- ---------------
Well Intervention Group $49,933 $36,081
Marine 15,958 21,212
Rental Tools 35,015 33,409
Other Oilfield Services 19,351 27,676
--------------- ---------------
Total $120,257 $118,378
Gross Profit (1)
Well Intervention Group $21,166 $12,096
Marine 3,420 8,530
Rental Tools 22,901 22,794
Other Oilfield Services 3,060 5,138
--------------- ---------------
Total $50,547 $48,558
(1) Gross profit is calculated by subtracting cost of services from
revenue for each of the Company's four segments.
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