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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