Exhibit 99.1
Houston, Texas
February 3, 2015
FOR IMMEDIATE RELEASE - EARNINGS
HOUSTON, February 3, 2015 -- Atwood Oceanics, Inc. (NYSE: ATW) ("Company"), announced today that it had earned net income of $46.2 million or $0.71 per diluted share, on revenues of $351.7 million for the quarter ended December 31, 2014 compared to net income of $112.2 million or $1.72 per diluted share on revenues of $323.4 million for the quarter ended September 30, 2014 and compared to net income of $83.4 million or $1.28 per diluted share, on revenues of $284.7 million for the quarter ended December 31, 2013.
The Company recorded a non-cash impairment charge of approximately $60.8 million ($56.1 million, net of tax, or $0.86 per diluted share) related to the Atwood Hunter. In addition, during December 2014, the Company recorded a loss of approximately $8.0 million ($7.1 million, net of tax, or $0.11 per diluted share) for the sale of the Atwood Southern Cross and a loss of $1.8 million on the sale of other equipment.
|
| | | | | | | | | | | |
| | For the Three Months Ended |
| | (Unaudited) |
| (In thousands, except per share amounts) | December 31,
2014 | | September 30,
2014 | | December 31,
2013 |
| Revenues | $ | 351,726 |
| | $ | 323,373 |
| | $ | 284,706 |
|
| Income before Income Taxes | 55,340 |
| | 126,385 |
| | 94,260 |
|
| Provision for Income Taxes | (9,122 | ) | | (14,185 | ) | | (10,863 | ) |
| Net Income | $ | 46,218 |
| | $ | 112,200 |
| | $ | 83,397 |
|
| | | | | | |
| Earnings per Common Share - | | | | | |
| Basic | $ | 0.72 |
| | $ | 1.74 |
| | $ | 1.30 |
|
| Diluted | $ | 0.71 |
| | $ | 1.72 |
| | $ | 1.28 |
|
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
| | | | | | | |
| | Three Months Ended December 31, |
| (In thousands, except per share amounts) | 2014 | | 2013 |
| REVENUES: | | | |
| Contract drilling | $ | 336,761 |
| | $ | 273,557 |
|
| Revenues related to reimbursable expenses | 14,965 |
| | 11,149 |
|
| Total revenues | 351,726 |
| | 284,706 |
|
| | | | |
| COSTS AND EXPENSES: | | | |
| Contract drilling | 136,465 |
| | 123,162 |
|
| Reimbursable expenses | 11,907 |
| | 8,414 |
|
| Depreciation | 44,575 |
| | 32,544 |
|
| General and administrative | 17,409 |
| | 19,822 |
|
| Asset impairment | 60,777 |
| | — |
|
| (Gain) loss on sale of equipment | 9,806 |
| | (1,637 | ) |
| | 280,939 |
| | 182,305 |
|
| | | | |
| OPERATING INCOME | $ | 70,787 |
| | $ | 102,401 |
|
| | | | |
| OTHER INCOME (EXPENSE): | | | |
| Interest expense, net of capitalized interest | (15,504 | ) | | (8,211 | ) |
| Interest income | 57 |
| | 70 |
|
| | (15,447 | ) | | (8,141 | ) |
| | | | |
| INCOME BEFORE INCOME TAXES | 55,340 |
| | 94,260 |
|
| PROVISION FOR INCOME TAXES | 9,122 |
| | 10,863 |
|
| NET INCOME | $ | 46,218 |
| | $ | 83,397 |
|
| | | | |
| EARNINGS PER COMMON SHARE: | | | |
| Basic | $ | 0.72 |
| | $ | 1.30 |
|
| Diluted | $ | 0.71 |
| | $ | 1.28 |
|
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | | | |
| Basic | 64,405 |
| | 64,112 |
|
| Diluted | 65,015 |
| | 65,026 |
|
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS
|
| | | | | | | | | | | |
| | REVENUES |
| | Three Months Ended |
| (In millions) | December 31,
2014 | | September 30,
2014 | | December 31,
2013 |
| Ultra-Deepwater | $ | 167 |
| | $ | 137 |
| | $ | 87 |
|
| Deepwater | 98 |
| | 92 |
| | 108 |
|
| Jackups | 72 |
| | 76 |
| | 79 |
|
| Reimbursable | 15 |
| | 18 |
| | 11 |
|
| | $ | 352 |
| | $ | 323 |
| | $ | 285 |
|
|
| | | | | | | | | | | |
| | DRILLING COSTS |
| | Three Months Ended |
| (In millions) | December 31,
2014 | | September 30,
2014 | | December 31,
2013 |
| Ultra-Deepwater | $ | 63 |
| | $ | 42 |
| | $ | 35 |
|
| Deepwater | 41 |
| | 43 |
| | 49 |
|
| Jackups | 31 |
| | 30 |
| | 37 |
|
| Reimbursable | 12 |
| | 15 |
| | 8 |
|
| Other | 1 |
| | 3 |
| | 3 |
|
| | $ | 148 |
| | $ | 133 |
| | $ | 132 |
|
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
|
| | | | | | | |
| (In thousands, except par value) | December 31,
2014 | | September 30,
2014 |
| | (Unaudited) | | |
| ASSETS | | | |
| Cash | $ | 121,803 |
| | $ | 80,080 |
|
| Accounts receivable | 214,719 |
| | 242,684 |
|
| Income tax receivable | 6,977 |
| | 6,260 |
|
| Inventories of materials and supplies | 126,242 |
| | 132,368 |
|
| Prepaid expenses, deferred costs and other current assets | 31,103 |
| | 36,415 |
|
| Total current assets | 500,844 |
| | 497,807 |
|
| | | | |
| Property and equipment, net | 4,013,173 |
| | 3,967,028 |
|
| | | | |
| Other receivables | 11,831 |
| | 11,831 |
|
| Deferred income taxes | 278 |
| | 589 |
|
| Deferred costs and other assets | 23,905 |
| | 29,973 |
|
| Total assets | $ | 4,550,031 |
| | $ | 4,507,228 |
|
| | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | |
| Accounts payable | $ | 81,887 |
| | $ | 94,315 |
|
| Accrued liabilities | 18,012 |
| | 19,158 |
|
| Dividends payable | 16,090 |
| | 16,090 |
|
| Short-term debt | 5,954 |
| | 11,885 |
|
| Interest payable | 19,426 |
| | 8,099 |
|
| Income tax payable | 12,901 |
| | 14,234 |
|
| Deferred credits and other liabilities | 4,763 |
| | 3,596 |
|
| Total current liabilities | 159,033 |
| | 167,377 |
|
| | | | |
| Long-term debt | 1,741,834 |
| | 1,742,122 |
|
| Deferred income taxes | 1,022 |
| | 783 |
|
| Deferred credits | 4,036 |
| | 4,100 |
|
| Other | 36,531 |
| | 37,322 |
|
| Total long-term liabilities | 1,783,423 |
| | 1,784,327 |
|
| | | | |
| Commitments and contingencies | | | |
| | | | |
| Preferred stock, no par value, 1,000 shares authorized, none outstanding | — |
| | — |
|
| Common stock, $1.00 par value, 180,000 shares authorized with 64,551 issued and outstanding at December 31, 2014 and 180,000 shares authorized and 64,362 shares issued and outstanding at September 30, 2014 | 64,551 |
| | 64,362 |
|
| Paid-in capital | 206,083 |
| | 201,464 |
|
| Retained earnings | 2,332,355 |
| | 2,286,137 |
|
| Accumulated other comprehensive income (loss) | 4,586 |
| | 3,561 |
|
| Total shareholders' equity | 2,607,575 |
| | 2,555,524 |
|
| Total liabilities and shareholders' equity | $ | 4,550,031 |
| | $ | 4,507,228 |
|
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
|
| | | | | | | |
| | Three Months Ended December 31, |
| (In thousands) | 2014 | | 2013 |
| Cash flows from operating activities: | | | |
| Net income | $ | 46,218 |
| | $ | 83,397 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: | | | |
| Depreciation | 44,575 |
| | 32,544 |
|
| Amortization | 2,504 |
| | 1,172 |
|
| Provision for doubtful accounts and inventory obsolescence | — |
| | 430 |
|
| Deferred income tax provision (benefit) | (3,380 | ) | | 196 |
|
| Share-based compensation expense | 4,024 |
| | 3,354 |
|
| Asset impairment | 60,777 |
| | — |
|
| (Gain) loss on sale of assets | 9,806 |
| | (1,637 | ) |
| Changes in assets and liabilities: | | | |
| Accounts receivable | 27,965 |
| | 26,868 |
|
| Income tax receivable | (717 | ) | | (859 | ) |
| Inventories of materials and supplies | (6,771 | ) | | 10,842 |
|
| Prepaid expenses, deferred costs and other current assets | 5,095 |
| | 6,458 |
|
| Deferred costs and other assets | 62 |
| | (8,165 | ) |
| Accounts payable | (14,248 | ) | | (13,556 | ) |
| Accrued liabilities | 14,866 |
| | 11,223 |
|
| Income tax payable | (1,333 | ) | | (3,767 | ) |
| Deferred credits and other liabilities | 5,263 |
| | 9,695 |
|
| Net cash provided by operating activities | 194,706 |
| | 158,195 |
|
| | | | |
| Cash flows from investing activities: | | | |
| Capital expenditures | (149,042 | ) | | (462,620 | ) |
| Proceeds from sale of assets | 1,348 |
| | 13,277 |
|
| Net cash used in investing activities | (147,694 | ) | | (449,343 | ) |
| | | | |
| Cash flows from financing activities: | | | |
| Proceeds from issuance of long-term debt | — |
| | 340,000 |
|
| Repayments on short-term debt, net | (5,931 | ) | | (6,046 | ) |
| Proceeds from exercise of stock options | 784 |
| | 823 |
|
| Debt issuance costs paid | (142 | ) | | (72 | ) |
| Net cash (used) provided by financing activities | (5,289 | ) | | 334,705 |
|
| Net increase in cash and cash equivalents | 41,723 |
| | 43,557 |
|
| Cash and cash equivalents, at beginning of period | 80,080 |
| | 88,770 |
|
| Cash and cash equivalents, at end of period | $ | 121,803 |
| | $ | 132,327 |
|
| | | | |
| Non-cash activities: | | | |
| Decrease in accrued liabilities relate to capital expenditures | $ | (4,525 | ) | | $ | (11,092 | ) |
Atwood Oceanics, Inc. is a leading offshore drilling company engaged in the drilling and completion of exploration and development wells for the global oil and gas industry. The Company currently owns 12 mobile offshore drilling units and is constructing two ultra-deepwater drillships. 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."
As part of our ongoing commitment to our shareholders, Atwood Oceanics uses a variety of Social Networks sites to disseminate company information. For a full list of the official Social Media pages for Atwood Oceanics, please visit the Social Media Disclaimer page of our IR site at: http://ir.atwd.com/GenPage.aspx?IID=4010374&GKP=210376.
Conference Call
The Company has scheduled a conference call and webcast related to its first quarter 2015 results on Wednesday, February 4, 2015, at 10:00 a.m. U.S. Central Standard Time. Interested parties are invited to listen to the call by dialing 1-877-876-9177, or internationally 1-785-484-1666, Conference ID - Atwood. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company's Web site.
A replay of the conference call will be available on the Company's Web site following the end of the live call.
Contact: Mark L. Mey
(281) 749-7902
