Atwood Oceanics Announces Fourth Quarter Earnings

              Atwood Oceanics Announces Fourth Quarter Earnings

PR Newswire

HOUSTON, Nov. 15, 2012

HOUSTON, Nov. 15, 2012 /PRNewswire/ -- ATWOOD OCEANICS, INC., announced today
that the Company earned net income of $95.5 million or $1.45 per diluted
share, on revenues of $252.5 million for the quarter ended September30, 2012
compared to net income of $51.7 million or $0.79 per diluted share on revenues
of $178.6 million for the quarter ended June30, 2012 and compared to net
income of $72.9 million or $1.12 per diluted share, on revenues of $177.6
million for the quarter ended September30, 2011. For the twelve months ended
September30, 2012, the Company earned net income of $272.2 million or $4.14
per diluted share, on revenues of $787.4 million compared to net income of
$271.7 million or $4.15 per diluted share, on revenues of $645.1 million for
the twelve months ended September30, 2011.

Rob Saltiel, President & CEO, commented, "We had an outstanding fourth quarter
and full fiscal year, achieving record revenues and net income for our company
in both time periods. For the quarter, our rig teams achieved excellent
operational and safety performance that yielded strong revenue recognition,
while our fleet transformation progressed with the successful delivery and
start-up of the Atwood Mako and the successful delivery and mobilization of
the Atwood Condor to the Gulf of Mexico. We also secured our first drilling
services agreement for the Atwood Advantage, and we committed to build a third
ultra-deepwater drillship to join our growing high-specification rig fleet."



                            FOR THE THREE MONTHS ENDED
                                           (In thousands)
                            September30,  June30,        September30,

                            2012           2012            2011
Revenues                    $   252,525    $    178,603    $   177,558
Income before Income Taxes  109,891        61,990          83,918
Provision for Income Taxes  (14,365        (10,279         (10,991
Net Income                  $   95,526     $    51,711     $   72,927
Earnings per Common Share -
Basic                       1.46           0.79            1.13
Diluted                     1.45           0.79            1.12
Weighted Average Shares
Outstanding -
Basic                       65,407         65,362          64,754
Diluted                     65,982         65,823          65,403







ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)
                            Three months ended September  Twelve months ended
                            30,                           September 30,
                            2012             2011         2012       2011
REVENUES:
Contract drilling           $   252,525      $  177,558   $ 787,421  $ 645,076
COSTS AND EXPENSES:
Contract drilling           102,119          61,815       347,179    223,565
Depreciation                24,180           15,606       70,599     43,597
General and administrative  12,275           9,927        49,776     44,407
Other, net                  (680)            4,924        457        4,847
                            137,894          92,272       468,011    316,416
OPERATING INCOME            114,631          85,286       319,410    328,660
OTHER INCOME (EXPENSE)
Interest expense, net of    (4,837)          (1,493)      (6,460)    (4,530)
capitalized interest
Interest Income             97               125          354        717
                            (4,740)          (1,368)      (6,106)    (3,813)
INCOME BEFORE INCOME TAXES 109,891          83,918       313,304    324,847
PROVISION FOR INCOME TAXES  14,365           10,991       41,133     53,173
NET INCOME                  $   95,526       $  72,927    $ 272,171  $ 271,674
EARNINGS PER COMMON SHARE:
Basic                       1.46             1.13         4.17       4.20
Diluted                     1.45             1.12         4.14       4.15
AVERAGE COMMON SHARES
OUTSTANDING:
Basic                       65,407           64,754       65,267     64,754
Diluted                     65,982           65,403       65,781     65,403







ATWOOD OCEANICS, INC. AND SUBSIDIARIES

ANALYSIS OF REVENUES AND DRILLING COSTS

(Unaudited)
          REVENUES

          (In millions)
          ThreeMonthsEnded                      Twelve Months Ended
          September30,  June 30,  September30,  September30,  September30,

          2012           2012      2011           2012           2011
Atwood    $   36.1       $ —       $   —          $   36.1       $   —
Condor
Atwood    $   47.9       $ 45.0    $   43.5       $   172.2      $   59.9
Osprey
Atwood    33.4           31.6      35.4           135.6          139.8
Eagle
Atwood    37.2           18.3      35.0           99.8           153.4
Falcon
Atwood    51.5           48.2      43.3           195.0          183.4
Hunter
Atwood    14.9           14.9      0.6            55.5           29.2
Aurora
Atwood    17.6           10.8      11.1           51.5           45.1
Beacon
Atwood    4.2            —         —              4.3            —
Mako
Vicksburg 9.2            8.3       8.7            35.4           34.3
Other     0.5            1.5       —              2.0            —
          $   252.5      $ 178.6   $   177.6      $   787.4      $   645.1

           CONTRACT DRILLING COSTS

           (In millions)
           ThreeMonthsEnded                     Twelve Months Ended
           September30,  June     September30,  September30,  September30,
                          30,
           2012                    2011           2012           2011
                          2012
Atwood     $   15.2       $ 2.7    $   —          $   18.9       $   —
Condor
Atwood     $   17.8       $ 16.1   $   14.6       $   66.0       $   22.9
Osprey
Atwood     14.0           14.9     13.1           61.7           62.5
Eagle
Atwood     15.2           21.0     6.5            56.6           29.4
Falcon
Atwood     12.8           11.7     13.0           50.4           39.0
Hunter
Atwood     6.4            7.4      3.9            31.0           18.5
Aurora
Atwood     11.1           7.6      5.1            34.6           28.7
Beacon
Atwood     3.0            —        —              3.0            —
Mako
Vicksburg  5.6            4.8      4.5            20.8           16.4
Other      1.0            1.2      1.1            4.2            6.2
           $   102.1      $ 87.4   $   61.8       $   347.2      $   223.6





ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)
                                                  September30,  September30,

                                                  2012           2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                         $  77,871      $  295,002
Accounts receivable                               167,186        87,173
Income tax receivable                             5,750          5,631
Inventories of materials and supplies             80,290         58,263
Prepaid expenses and deferred costs               39,437         14,862
Total current assets                              370,534        460,931
PROPERTY AND EQUIPMENT, net                       2,537,340      1,887,321
LONG TERM ASSETS:
Other receivables                                 11,875         11,875
Deferred costs and other assets                   24,013         15,264
Total long-term assets                            35,888         27,139
Total assets                                      $  2,943,762   $  2,375,391
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable                                  $  83,592      $  113,021
Accrued liabilities                               24,478         30,680
Notes payable                                     5,148          5,461
Income tax payable                                9,711          8,461
Deferred credits                                  13,738         1,700
Total current liabilities                         136,667        159,323
LONG TERM LIABILITIES:
Long-term debt                                    830,000        520,000
Deferred income taxes                             8,791          9,780
Deferred credits                                  8,928          7,910
Other                                             19,954         25,591
Total long-term liabilities                       867,673        563,281
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, no par value;
1,000 shares authorized, none outstanding         —              —
Common Stock, $1.00 par value;
90,000 shares authorized with 65,452 and 64,960
issued and outstanding at September 30, 2012 and  65,452         64,960
2011, respectively
Paid-in capital                                   160,540        145,084
Retained earnings                                 1,716,441      1,444,270
Accumulated other comprehensive loss              (3,011)        (1,527)
Total shareholders' equity                        1,939,422      1,652,787
Total liabilities and shareholders' equity        $  2,943,762   $  2,375,391







Atwood Oceanics, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS
                                             Years Ended September30,
(In thousands)                               2012         2011       2010
Cash flows from operating activities:
Net income                                   $ 272,171    $ 271,674  $ 256,996
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation                                 70,599       43,597     37,030
Amortization of debt issuance costs          3,625        2,363      803
Amortization of deferred items               (4,337)      3,333      13,755
Provision for doubtful accounts              —            —          (65)
Provision for inventory obsolescence         765          735        1,123
Deferred income tax (benefit) expense        (989)        (1,065)    4,798
Share-based compensation expense             10,402       6,314      9,998
Other, net                                   457          4,847      (1,855)
Change in assets and liabilities:
(Increase) decrease in accounts receivable   (80,013)     13,214     26,187
Decrease in insurance receivable             —            —          281
(Increase) decrease in income tax receivable (119)        10,421     (7,746)
Increase in inventory                        (23,395)     (6,249)    (3,736)
(Increase) decrease in prepaid expenses      (6,386)      845        (179)
Increase in deferred costs and other assets  (32,597)     (10,379)   (10,321)
Increase (decrease) in accounts payable      27,536       (1,173)    4,735
Increase (decrease) in accrued liabilities   (7,096)      4,440      (854)
Increase (decrease) in income tax payable    1,250        (17,906)   (2,700)
Increase (decrease) in deferred credits and  23,730       14,777     (21,850
other liabilities
                                             (16,568)     68,114     49,404
Net Cash Provided by Operating Activities    255,603      339,788    306,400
Cash flows from investing activities:
Capital expenditures                         (785,083)    (514,858)  (187,094)
Collection of insurance receivable           —            —          3,607
Proceeds from sale of assets                 7,646        218        1,504
Net Cash Used by Investing Activities        (777,437)    (514,640)  (181,983)
Cash flows from financing activities:
Proceeds from issuance of bonds              450,000      —          —
Principal payments on bank credit facilities (450,000)    (55,000)   (45,000)
Proceeds from bank credit facilities         310,000      345,000    —
Principal payments on notes payable          (5,461)      (3,631)    —
Proceeds from notes payable                  5,148        9,092      —
Debt issuance costs paid                     (10,530)     (12,322)   —
Proceeds from exercise of stock options      5,546        6,192      847
Net Cash Provided (Used) by Financing        304,703      289,331    (44,153)
Activities
Net increase (decrease) in cash and cash     $ (217,131)  $ 114,479  $ 80,264
equivalents
Cash and cash equivalents, at beginning of   $ 295,002    $ 180,523  $ 100,259
period
Cash and cash equivalents, at end of period  $ 77,871     $ 295,002  $ 180,523



Atwood Oceanics, Inc. is a global offshore drilling contractor engaged in the
drilling and completion of exploratory and developmental oil and gas wells.
The company currently owns 12 mobile offshore drilling units and is
constructing three ultra-deepwater drillships and one high-specification
jackups. The company was founded in 1968 and is headquartered in Houston,
Texas. Atwood Oceanics, Inc. common stock is traded on the New York Stock
Exchange under the symbol "ATW."

SOURCE Atwood Oceanics, Inc.

Website: http://www.atwd.com
Contact: Mark L. Mey, +1-281-749-7902
 
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