Supplemental Guarantor Information | (12) Supplemental Guarantor Information SESI, L.L.C. (the Issuer), a 100% owned subsidiary of Superior Energy Services, Inc. (Parent), has $500 million of 7 3/4% senior unsecured notes due 2024. The Parent, along with certain of its 100% owned domestic subsidiaries, fully and unconditionally guaranteed such senior unsecured notes, and such guarantees are joint and several. SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Balance Sheets September 30, 2018 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ - $ 37,745 $ 547 $ 66,398 $ - $ 104,690 Accounts receivable, net - (235) 431,609 61,869 - 493,243 Intercompany accounts receivable - 10,232 67,417 3,139 (80,788) - Other current assets - 9,207 145,879 37,868 - 192,954 Total current assets - 56,949 645,452 169,274 (80,788) 790,887 Property, plant and equipment, net - 10,577 1,001,662 186,310 - 1,198,549 Goodwill - - 657,099 149,397 - 806,496 Notes receivable - - 63,009 - - 63,009 Long-term intercompany accounts receivable 2,236,472 - 2,047,835 182,529 (4,466,836) - Equity investments of consolidated subsidiaries (1,200,202) 4,477,064 6,122 - (3,282,984) - Restricted cash - - 8,632 45 - 8,677 Intangible and other long-term assets, net - 21,187 105,400 7,525 - 134,112 Total assets $ 1,036,270 $ 4,565,777 $ 4,535,211 $ 695,080 $ (7,830,608) $ 3,001,730 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ - $ 8,089 $ 106,867 $ 17,210 $ - $ 132,166 Accrued expenses 255 110,937 89,405 29,923 - 230,520 Income taxes payable - 555 - 1,564 - 2,119 Intercompany accounts payable - 724 6,095 73,969 (80,788) - Current portion of decommissioning liabilities - - 20,670 3,512 - 24,182 Total current liabilities 255 120,305 223,037 126,178 (80,788) 388,987 Deferred income taxes - (155,505) 185,496 3,473 - 33,464 Decommissioning liabilities - - 104,416 - - 104,416 Long-term debt, net - 1,282,014 - - - 1,282,014 Long-term intercompany accounts payable - 4,466,836 - - (4,466,836) - Other long-term liabilities - 52,329 78,324 26,181 - 156,834 Total stockholders' equity (deficit) 1,036,015 (1,200,202) 3,943,938 539,248 (3,282,984) 1,036,015 Total liabilities and stockholders' equity $ 1,036,270 $ 4,565,777 $ 4,535,211 $ 695,080 $ (7,830,608) $ 3,001,730 SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Balance Sheets December 31, 2017 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ - $ 126,533 $ 440 $ 45,027 $ - $ 172,000 Accounts receivable, net - - 332,402 70,889 (5,235) 398,056 Income taxes receivable - - (221) 1,180 - 959 Intercompany accounts receivable - 6,460 58,375 5,865 (70,700) - Other current assets - 11,895 129,970 34,295 - 176,160 Assets held for sale - - - 13,644 - 13,644 Total current assets - 144,888 520,966 170,900 (75,935) 760,819 Property, plant and equipment, net - 12,055 1,093,446 211,443 - 1,316,944 Goodwill - - 657,099 150,761 - 807,860 Notes receivable - - 60,149 - - 60,149 Long-term intercompany accounts receivable 2,221,697 - 2,032,056 177,842 (4,431,595) - Equity investments of consolidated subsidiaries (1,088,736) 4,481,702 6,590 - (3,399,556) - Restricted cash - - 20,483 - - 20,483 Intangible and other long-term assets, net - 22,118 113,632 8,220 - 143,970 Total assets $ 1,132,961 $ 4,660,763 $ 4,504,421 $ 719,166 $ (7,907,086) $ 3,110,225 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ - $ 14,339 $ 89,714 $ 20,898 $ (5,235) $ 119,716 Accrued expenses 532 116,767 80,825 23,633 - 221,757 Intercompany accounts payable - 724 7,918 62,058 (70,700) - Current portion of decommissioning liabilities - - 25,670 1,591 - 27,261 Liabilities held for sale - - - 6,463 - 6,463 Total current liabilities 532 131,830 204,127 114,643 (75,935) 375,197 Deferred income taxes - (147,116) 205,386 2,788 - 61,058 Decommissioning liabilities - - 101,293 1,843 - 103,136 Long-term debt, net - 1,279,771 - - - 1,279,771 Long-term intercompany accounts payable - 4,431,595 - - (4,431,595) - Other long-term liabilities - 53,419 79,061 26,154 - 158,634 Total stockholders' equity (deficit) 1,132,429 (1,088,736) 3,914,554 573,738 (3,399,556) 1,132,429 Total liabilities and stockholders' equity $ 1,132,961 $ 4,660,763 $ 4,504,421 $ 719,166 $ (7,907,086) $ 3,110,225 SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Operations Three Months Ended September 30, 2018 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ - $ - $ 511,510 66,428 (4,870) $ 573,068 Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion) - (793) 366,568 43,484 (4,870) 404,389 Depreciation, depletion, amortization and accretion - 965 87,973 10,954 - 99,892 General and administrative expenses - 23,959 34,726 10,210 - 68,895 Income (loss) from operations - (24,131) 22,243 1,780 - (108) Other income (expense): Interest expense, net - (26,024) 993 79 - (24,952) Other income (expense) - (356) 264 (185) - (277) Equity in earnings (losses) of consolidated subsidiaries (21,816) 19,182 (53) - 2,687 - Income (loss) from operations before income taxes (21,816) (31,329) 23,447 1,674 2,687 (25,337) Income taxes - (9,513) 5,260 732 - (3,521) Net income (loss) $ (21,816) $ (21,816) $ 18,187 $ 942 $ 2,687 $ (21,816) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statements of Comprehensive Loss Three Months Ended September 30, 2018 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (21,816) $ (21,816) $ 18,187 $ 942 $ 2,687 $ (21,816) Change in cumulative translation adjustment, net of tax (826) (826) - (826) 1,652 (826) Comprehensive income (loss) $ (22,642) $ (22,642) $ 18,187 $ 116 $ 4,339 $ (22,642) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Operations Three Months Ended September 30, 2017 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ - $ - $ 449,267 $ 60,311 $ (3,549) $ 506,029 Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion) - (2,505) 329,074 45,259 (3,549) 368,279 Depreciation, depletion, amortization and accretion - 1,033 94,829 12,889 - 108,751 General and administrative expenses - 23,960 38,247 12,165 - 74,372 Reduction in value of assets - - 1,835 8,118 - 9,953 Loss from operations - (22,488) (14,718) (18,120) - (55,326) Other income (expense): Interest expense, net - (30,216) 969 151 - (29,096) Other income (expense) - (282) 199 (887) - (970) Equity in losses of consolidated subsidiaries (59,049) (25,096) (250) - 84,395 - Loss from continuing operations before income taxes (59,049) (78,082) (13,800) (18,856) 84,395 (85,392) Income taxes - (19,033) (2,750) (6,420) - (28,203) Net loss from continuing operations (59,049) (59,049) (11,050) (12,436) 84,395 (57,189) Loss from discontinued operations, net of income tax - - - (1,860) - (1,860) Net loss $ (59,049) $ (59,049) $ (11,050) $ (14,296) $ 84,395 $ (59,049) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statements of Comprehensive Loss Three Months Ended September 30, 2017 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net loss $ (59,049) $ (59,049) $ (11,050) $ (14,296) $ 84,395 $ (59,049) Change in cumulative translation adjustment, net of tax 3,629 3,629 - 3,629 (7,258) 3,629 Comprehensive loss $ (55,420) $ (55,420) $ (11,050) $ (10,667) $ 77,137 $ (55,420) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Operations Nine Months Ended September 30, 2018 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ - $ - $ 1,420,368 $ 192,976 $ (22,410) $ 1,590,934 Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion) - (6,382) 1,011,801 134,650 (22,410) 1,117,659 Depreciation, depletion, amortization and accretion - 2,974 266,188 34,422 - 303,584 General and administrative expenses - 70,721 109,083 34,807 - 214,611 Income (loss) from operations - (67,313) 33,296 (10,903) - (44,920) Other income (expense): Interest expense, net - (77,778) 2,940 105 - (74,733) Other income (expense) - (608) 802 (4,588) - (4,394) Equity in earnings (losses) of consolidated subsidiaries (107,930) 13,073 (421) - 95,278 - Income (loss) from continuing operations before income taxes (107,930) (132,626) 36,617 (15,386) 95,278 (124,047) Income taxes - (24,696) 7,185 665 - (16,846) Net income (loss) from continuing operations (107,930) (107,930) 29,432 (16,051) 95,278 (107,201) Loss from discontinued operations, net of income tax - - - (729) - (729) Net income (loss) $ (107,930) $ (107,930) $ 29,432 $ (16,780) $ 95,278 $ (107,930) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statements of Comprehensive Loss Nine Months Ended September 30, 2018 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (107,930) $ (107,930) $ 29,432 $ (16,780) $ 95,278 $ (107,930) Change in cumulative translation adjustment, net of tax (3,491) (3,491) - (3,491) 6,982 (3,491) Comprehensive income (loss) $ (111,421) $ (111,421) $ 29,432 $ (20,271) $ 102,260 $ (111,421) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Operations Nine Months Ended September 30, 2017 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ - $ - $ 1,219,455 $ 168,810 $ (11,232) $ 1,377,033 Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion) - (245) 925,043 128,501 (11,232) 1,042,067 Depreciation, depletion, amortization and accretion - 3,114 289,428 38,609 - 331,151 General and administrative expenses - 75,843 113,123 37,607 - 226,573 Reduction in value of assets - - 1,835 8,118 - 9,953 Loss from operations - (78,712) (109,974) (44,025) - (232,711) Other income (expense): Interest expense, net - (79,827) 2,728 420 - (76,679) Other income (expense) - (1,004) 646 (2,119) - (2,477) Equity in losses of consolidated subsidiaries (214,514) (104,203) (458) - 319,175 - Loss from continuing operations before income taxes (214,514) (263,746) (107,058) (45,724) 319,175 (311,867) Income taxes - (49,232) (46,996) (6,750) - (102,978) Net loss from continuing operations (214,514) (214,514) (60,062) (38,974) 319,175 (208,889) Loss from discontinued operations, net of income tax - - - (5,625) - (5,625) Net loss $ (214,514) $ (214,514) $ (60,062) $ (44,599) $ 319,175 $ (214,514) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statements of Comprehensive Loss Nine Months Ended September 30, 2017 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net loss $ (214,514) $ (214,514) $ (60,062) $ (44,599) $ 319,175 $ (214,514) Change in cumulative translation adjustment, net of tax 11,375 11,375 - 11,375 (22,750) 11,375 Comprehensive loss $ (203,139) $ (203,139) $ (60,062) $ (33,224) $ 296,425 $ (203,139) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows Nine Months Ended September 30, 2018 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 18,290 $ (118,313) $ 174,198 $ 23,450 $ (14,269) $ 83,356 Cash flows from investing activities: Payments for capital expenditures - (1,509) (175,524) (9,250) - (186,283) Proceeds from sales of assets - - 16,226 13,369 - 29,595 Net cash used in investing activities - (1,509) (159,298) 4,119 - (156,688) Cash flows from financing activities: Intercompany dividends - - - (14,269) 14,269 - Changes in notes with affiliated companies, net (14,775) 31,469 (26,644) 9,950 - - Other (3,515) (435) - - - (3,950) Net cash provided by (used in) financing activities (18,290) 31,034 (26,644) (4,319) 14,269 (3,950) Effect of exchange rate changes on cash - - - (1,834) - (1,834) Net decrease in cash, cash equivalents, and restricted cash - (88,788) (11,744) 21,416 - (79,116) Cash, cash equivalents, and restricted cash at beginning of period - 126,533 20,923 45,027 - 192,483 Cash, cash equivalents, and restricted cash at end of period $ - $ 37,745 $ 9,179 $ 66,443 $ - $ 113,367 SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows Nine Months Ended September 30, 2017 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 20,316 $ (1,071) $ 46,999 $ (18,328) $ 47,916 Cash flows from investing activities: Payments for capital expenditures - (1,041) (94,884) (13,710) (109,635) Other - - 15,647 - 15,647 Net cash used in investing activities - (1,041) (79,237) (13,710) (93,988) Cash flows from financing activities: Proceeds from issuance of long-term debt - 500,000 - - 500,000 Principal payments on long-term debt - (500,000) - - (500,000) Payment of debt issuance costs - (9,091) - - (9,091) Changes in notes with affiliated companies, net (13,527) 6,037 1,336 6,154 - Other (6,789) - - - (6,789) Net cash used in financing activities (20,316) (3,054) 1,336 6,154 (15,880) Effect of exchange rate changes on cash - - - 3,294 3,294 Net decrease in cash, cash equivalents, and restricted cash - (5,166) (30,902) (22,590) (58,658) Cash, cash equivalents, and restricted cash at beginning of period - 127,445 51,789 66,858 246,092 Cash, cash equivalents, and restricted cash at end of period $ - $ 122,279 $ 20,887 $ 44,268 $ 187,434 |