Superior Energy Services, Inc. Announces Second Quarter 2014 Results

     Superior Energy Services, Inc. Announces Second Quarter 2014 Results

PR Newswire

HOUSTON, July 30, 2014

HOUSTON, July 30, 2014 /PRNewswire/ --Superior Energy Services, Inc. (NYSE:
SPN) today announced net income from continuing operations of $79.1 million,
or $0.50 per diluted share, and net income of $75.2 million, or $0.47 per
diluted share, on revenue of $1,107.6 million for the second quarter of 2014.

These results compare with the second quarter of 2013 net income from
continuing operations of $74.1 million, or $0.46 per diluted share, and net
income of $68.6 million, or $0.43 per diluted share, on revenue of $1,091.1
million.

For the six months ended June 30, 2014, the Company recorded net income from
continuing operations of $121.7 million, or $0.76 per diluted share, and net
income of $111.8 million, or $0.70 per diluted share, on revenue of $2,169.0
million. For the six months ended June 30, 2013, the Company recorded net
income from continuing operations of $154.7 million, or $0.96 per diluted
share, and net income of $132.3 million, or $0.82 per diluted share, on
revenue of $2,178.0 million.

During the second quarter of 2014, the Company repurchased and retired
approximately 1.7 million shares of its common stock for a total purchase
price of $34.3 million (average price of $31.09). Year-to-date, the Company
has repurchased and retired approximately 5.2 million shares of its common
stock for a total purchase price of $164.1 million (average price of $31.41).

David Dunlap, President and CEO of the Company, commented, "Our second quarter
results exceeded our expectations. We posted strong incremental operating
margins in three of our four segments, primarily due to ongoing increases in
U.S. land activity. These include improvements seen in horizontal well
fracturing and well service rigs in the Onshore Completion and Workover
Services segment, as well as in coiled tubing, pressure control, wireline, and
remedial pumping in the Production Services segment.

"Our U.S. land revenue increased 6% from the first quarter of 2014 as compared
to a 4% increase in the average number of rigs drilling in the U.S. land
market. Our Gulf of Mexico revenue was flat sequentially as seasonal increases
in service activity were offset by lower revenue from the Drilling Products
and Services segment. International revenue increased 3% sequentially mainly
driven by increases in production-related services."

Second Quarter 2014 Geographic Breakdown

U.S. land market revenue was approximately $721.3 million in the second
quarter of 2014, as compared with $723.3 million in the second quarter of 2013
and $681.3 million in the first quarter of 2014. Gulf of Mexico market revenue
was approximately $211.7 million, as compared with $208.1 million in the
second quarter of 2013 and $211.0 million in the first quarter of 2014.
International market revenue was approximately $174.6 million, as compared
with $159.7 million in the second quarter of 2013 and $169.1 million in the
first quarter of 2014.

Drilling Products and Services Segment

Drilling Products and Services segment revenue was $226.0 million, a 10%
increase from second quarter 2013 revenue of $205.4 million and a 3% increase
from first quarter 2014 revenue of $220.2 million.

The primary factor driving the higher sequential revenue in this segment was a
21% increase in U.S. land market revenue to $81.7 million due to increased
rentals of bottom hole assemblies and premium drill pipe. International market
revenue was essentially unchanged at $51.5 million as increased rentals of
premium drill pipe were offset by a decline in bottom hole assembly rentals.
Gulf of Mexico market revenue decreased 9% sequentially to $92.8 million due
to decreased rentals of premium drill pipe and surface rentals.

Onshore Completion and Workover Services Segment

Onshore Completion and Workover Services segment revenue in the second quarter
was $398.1 million, virtually unchanged from second quarter 2013 revenue of
$398.2 million, and a 2% increase from first quarter 2014 revenue of $389.9
million. Practically all of the revenue in this segment is generated from U.S.
land market areas.

On a sequential basis, revenue increases in pressure pumping and well service
rigs was partially offset by lower fluid management revenue as a result of
less heating-related activity.

Income from operations as a percentage of revenue improved significantly on a
sequential basis to 8% as compared with 2% in the first quarter of 2014,
resulting from increased utilization in pressure pumping.

Production Services Segment

Production Services segment revenue was $343.9 million, a 7% decrease from
second quarter 2013 revenue of $369.1 million and a 7% increase from first
quarter 2014 revenue of $321.2 million.

U.S. land market revenue increased 6% sequentially to $214.6 million,
primarily due to increased demand for coiled tubing, pressure control,
wireline and remedial pumping services. International market revenue increased
8% sequentially to $90.9 million primarily due to higher demand for pressure
control tools and snubbing services. Gulf of Mexico market revenue increased
11% to $38.4 million due to increases in coiled tubing and cased hole wireline
services.

Technical Solutions Segment

Technical Solutions segment revenue was $139.6 million, an 18% increase from
second quarter 2013 revenue of $118.4 million and a 7% increase from first
quarter 2014 revenue of $130.1 million.

Gulf of Mexico market revenue increased 7% sequentially to $80.4 million due
to seasonal increases in plug and abandonment services as well as completion
tools and services. U.S. land market revenue increased 24% sequentially to
$27.0 million primarily related to increases in well control services and
completion tools. International market revenue declined 4% to $32.2 million
as a result of a decrease in well control activity.

Conference Call Information

The Company will host a conference call at 11 a.m. Eastern Time on Thursday,
July 31, 2014. The call can be accessed from the Company's website at
www.superiorenergy.com, or by telephone at 785-424-1053. For those who cannot
listen to the live call, a telephonic replay will be available through August
14, 2014 and may be accessed by calling 719-457-0820 and using the pass code
9081717#. 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 certain forward-looking statements within the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Generally, the words "expects," "anticipates," "targets," "projects,"
"intends," "plans," "believes," "seeks," "estimates," variations of such words
and similar expressions identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Forward-looking
statements involve risks and uncertainties. Such forward-looking statements
are subject to uncertainties that could cause actual results to differ
materially from such statements. Such uncertainties include, but are not
limited to: risks inherent in acquiring businesses; the effect of regulatory
programs and environmental matters on the Company's performance, 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 business growth outpacing the capabilities of the Company's
infrastructure and workforce; risks associated with the uncertainty of
macroeconomic and business conditions worldwide; the cyclical nature and
volatility of the oil and gas industry, including the level of exploration,
production and development activity and the volatility of oil and gas prices;
changes in competitive factors affecting the Company's operations; political,
economic and other risks and uncertainties associated with international
operations; the impact that unfavorable or unusual weather conditions could
have on the Company's operations; the potential shortage of skilled workers;
the Company's dependence on certain customers; the risks inherent in long-term
fixed-price contracts; and, operating hazards, including the significant
possibility of accidents resulting in personal injury or death, property
damage or environmental damage. Although the Company believes that the
expectations reflected in such forward-looking statements are reasonable, the
Company can give no assurance that such expectations will prove to be correct.
Investors are cautioned that many of the assumptions on which the Company's
forward-looking statements are based are likely to change after the
forward-looking statements are made, including for example the market prices
of oil and natural gas and regulations affecting oil and gas operations, which
the Company cannot control or anticipate. Further, the Company may make
changes to its business plans that could or will affect the Company's results.
The Company undertakes no obligation to update any of its forward-looking
statements and it does not intend to update its forward-looking statements
more frequently than quarterly, notwithstanding any changes in the
assumptions, changes in the Company's business plans, its actual experience,
or other changes.

FOR FURTHER INFORMATION CONTACT:
David Dunlap, President and CEO, (713) 654-2200;
Robert Taylor, CFO, or Greg Rosenstein, EVP of Corporate Development, (504)
587-7374



SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Three and Six Months Ended June 30, 2014 and 2013
(in thousands, except earnings per share amounts)
(unaudited)
                        Three Months Ended          Six Months Ended
                        June 30,                    June 30,
                        2014           2013         2014          2013
Revenues                $ 1,107,552    $ 1,091,129  $ 2,168,970   $ 2,178,001
Cost of services and
rentals (exclusive of   650,293        646,704      1,301,898     1,298,298
items shown separately
below)
Depreciation,
depletion,              160,965        149,440      323,283       294,404
amortization and
accretion
General and
administrative          146,853        147,552      302,772       293,448
expenses
Income from operations  149,441        147,433      241,017       291,851
Other income
(expense):
 Interest expense,     (24,560)       (27,785)     (48,441)      (56,046)
net
 Other income          606            (2,837)      571           1,738
(expense)
 Loss on early         -              (884)        -             (884)
extinguishment of debt
Income from continuing
operations before       125,487        115,927      193,147       236,659
income taxes
Income taxes            46,430         41,848       71,464        81,962
Net income from         79,057         74,079       121,683       154,697
continuing operations
Loss from discontinued
operations, net of      (3,895)        (5,520)      (9,849)       (22,411)
income tax
Net income              $   75,162  $          $  111,834  $  132,286
                                       68,559
Basic earnings
(losses) per share:
Net income from         $          $        $         $    
continuing operations   0.51          0.46        0.77         0.97
Loss from discontinued  (0.03)         (0.03)       (0.06)        (0.14)
operations
Net income              $          $        $         $    
                        0.48          0.43        0.71         0.83
Diluted earnings
(losses) per share:
Net income from         $          $        $         $    
continuing operations   0.50          0.46        0.76         0.96
Loss from discontinued  (0.03)         (0.03)       (0.06)        (0.14)
operations
Net income              $          $        $         $    
                        0.47          0.43        0.70         0.82
Weighted average
common shares used in
computing earnings per
share:
 Basic               156,399        159,337      157,302       159,142
 Diluted             159,101        160,930      159,994       160,768



SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2014 AND DECEMBER 31, 2013
(in thousands)
                                                   6/30/2014      12/31/2013
                                                   (Unaudited)    (Audited)
ASSETS
Current assets:
 Cash and cash equivalents                        $   201,653  $  196,047
 Accounts receivable, net                         925,901        937,195
 Deferred income taxes                            11,717         8,785
 Income taxes receivable                          -              5,532
 Prepaid expenses                                 76,571         70,421
 Inventory and other current assets               178,470        258,449
 Assets held for sale                             325,153        -
 Total current assets                       1,719,465      1,476,429
Property, plant and equipment, net                2,754,244      3,002,194
Goodwill                                           2,459,137      2,458,109
Notes receivable                                   25,155         23,708
Intangible and other long-term assets, net         428,183        450,867
 Total assets                               $ 7,386,184   $ 7,411,307
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                                 $   175,294  $  216,029
 Accrued expenses                                 321,440        376,049
 Income taxes payable                            22,711         -
 Current portion of decommissioning liabilities   -              27,322
 Current maturities of long-term debt             20,000         20,000
 Liabilities held for sale                        89,117         -
 Total current liabilities                  628,562        639,400
Deferred income taxes                             719,287        736,080
Decommissioning liabilities                        85,620         56,197
Long-term debt, net                                1,636,229      1,646,535
Other long-term liabilities                        167,009        201,651
Total stockholders' equity                         4,149,477      4,131,444
 Total liabilities and stockholders'        $ 7,386,184   $ 7,411,307
equity



SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
SEGMENT HIGHLIGHTS
THREE MONTHS ENDED JUNE 30, 2014, MARCH 31, 2014, AND JUNE 30, 2013 ^(2)
(unaudited)
(in thousands)
                         Three months ended,
Revenue                  June 30, 2014     March 31, 2014     June 30, 2013
Drilling Products and    $    225,982   $              $    205,422
Services                                   220,210
Onshore Completion and   398,048           389,877            398,216
Workover Services
Production Services      343,876           321,235            369,066
Technical Solutions      139,646           130,096            118,425
Total Revenues           $  1,107,552    $    1,061,418  $  1,091,129
Gross Profit (1)         June 30, 2014     March 31, 2014     June 30, 2013
Drilling Products and    $    153,245   $              $    138,438
Services                                   153,058
Onshore Completion and   123,141           105,642            136,160
Workover Services
Production Services      112,757           94,010             116,742
Technical Solutions      68,116            57,103             53,086
Total Gross Profit       $    457,259   $              $    444,426
                                           409,813
Income from Operations   June 30, 2014     March 31, 2014     June 30, 2013
Drilling Products and    $     66,948  $             $     60,063
Services                                   66,881
Onshore Completion and   31,748            6,070              46,155
Workover Services
Production Services      27,334            5,014              22,968
Technical Solutions      23,411            13,611             18,249
Total Income from        $    149,441   $             $    147,435
Operations                                 91,576

    Gross profit is calculated by subtracting cost of services and rentals
(1) (exclusive of depreciation, depletion, amortization and accretion) from
    revenue for each of the Company's segments.
(2) Income from Continuing Operations for all prior periods has been adjusted
    for discontinued operations from the Technical Solutions segment.



SOURCE Superior Energy Services, Inc.

Website: http://www.superiorenergy.com
 
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