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 the senior unsecured notes, and such guarantees are joint and several. SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Balance Sheets December 31, 2018 (in thousands) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ - $ 102,224 $ 707 $ 55,119 $ - $ 158,050 Accounts receivable, net - 160 367,497 79,696 - 447,353 Intercompany accounts receivable - 12,279 74,906 3,489 (90,674) - Other current assets - 12,805 111,560 43,137 - 167,502 Total current assets - 127,468 554,670 181,441 (90,674) 772,905 Property, plant and equipment, net - 10,129 920,978 178,019 - 1,109,126 Goodwill - - 80,544 56,244 - 136,788 Notes receivable - - 63,993 - - 63,993 Long-term intercompany accounts receivable 2,243,431 - 1,991,912 182,284 (4,417,627) - Equity investments of consolidated subsidiaries (1,952,647) 3,754,887 5,992 - (1,808,232) - Restricted cash - - 5,653 45 - 5,698 Intangible and other long-term assets, net - 19,255 100,847 7,350 - 127,452 Total assets $ 290,784 $ 3,911,739 $ 3,724,589 $ 605,383 $ (6,316,533) $ 2,215,962 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ - $ 8,807 $ 109,903 $ 20,615 $ - $ 139,325 Accrued expenses 45 102,845 86,926 29,364 - 219,180 Income taxes payable - 1,237 - (503) - 734 Intercompany accounts payable - 724 6,869 83,081 (90,674) - Current portion of decommissioning liabilities - - - 3,538 - 3,538 Total current liabilities 45 113,613 203,698 136,095 (90,674) 362,777 Decommissioning liabilities - - 126,558 - - 126,558 Long-term debt, net - 1,282,921 - - - 1,282,921 Long-term intercompany accounts payable - 4,417,627 - - (4,417,627) - Other long-term liabilities - 50,225 76,543 26,199 - 152,967 Total stockholders' equity (deficit) 290,739 (1,952,647) 3,317,790 443,089 (1,808,232) 290,739 Total liabilities and stockholders' equity $ 290,784 $ 3,911,739 $ 3,724,589 $ 605,383 $ (6,316,533) $ 2,215,962 SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Balance Sheets December 31, 2017 (in thousands) 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 Year Ended December 31, 2018 (in thousands) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ - $ - $ 1,889,751 271,769 (31,255) $ 2,130,265 Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion) - (13,265) 1,355,524 191,100 (31,255) 1,502,104 Depreciation, depletion, amortization and accretion - 3,945 351,974 44,929 - 400,848 General and administrative expenses - 95,725 142,451 51,076 - 289,252 Reduction in value of assets - - 647,441 92,284 - 739,725 Income (loss) from operations - (86,405) (607,639) (107,620) - (801,664) Other income (expense): Interest expense, net - (103,594) 3,950 167 - (99,477) Other income (expense) - 71 1,014 (2,763) - (1,678) Equity in earnings (losses) of consolidated subsidiaries (858,115) (707,348) (597) - 1,566,060 - Income (loss) from operations before income taxes (858,115) (897,276) (603,272) (110,216) 1,566,060 (902,819) Income taxes - (39,161) (6,554) 282 - (45,433) Net loss from continuing operations (858,115) (858,115) (596,718) (110,498) 1,566,060 (857,386) Loss from discontinued operations, net of income tax - - - (729) - (729) Net income (loss) $ (858,115) $ (858,115) $ (596,718) $ (111,227) $ 1,566,060 $ (858,115) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statements of Comprehensive Loss Year Ended December 31, 2018 (in thousands) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (858,115) $ (858,115) $ (596,718) $ (111,227) $ 1,566,060 $ (858,115) Change in cumulative translation adjustment, net of tax (5,750) (5,750) - (5,750) 11,500 (5,750) Comprehensive income (loss) $ (863,865) $ (863,865) $ (596,718) $ (116,977) $ 1,577,560 $ (863,865) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Operations Year Ended December 31, 2017 (in thousands) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ - $ - $ 1,655,114 $ 234,663 $ (15,701) $ 1,874,076 Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion) - (4,123) 1,242,486 176,033 (15,701) 1,398,695 Depreciation, depletion, amortization and accretion - 4,149 383,713 50,854 - 438,716 General and administrative expenses - 86,840 152,076 56,591 - 295,507 Reduction in value of assets - - 6,038 8,117 - 14,155 Loss from operations - (86,866) (129,199) (56,932) - (272,997) Other income (expense): Interest expense, net - (105,585) 4,451 (321) - (101,455) Other income (expense) - (1,350) 202 (2,151) - (3,299) Equity in losses of consolidated subsidiaries (205,921) (76,394) (964) - 283,279 - Loss from continuing operations before income taxes (205,921) (270,195) (125,510) (59,404) 283,279 (377,751) Income taxes - (64,274) (118,347) (8,119) - (190,740) Net loss from continuing operations (205,921) (205,921) (7,163) (51,285) 283,279 (187,011) Loss from discontinued operations, net of income tax - - - (18,910) - (18,910) Net loss $ (205,921) $ (205,921) $ (7,163) $ (70,195) $ 283,279 $ (205,921) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statements of Comprehensive Loss Year Ended December 31, 2017 (in thousands) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net loss $ (205,921) $ (205,921) $ (7,163) $ (70,195) $ 283,279 $ (205,921) Change in cumulative translation adjustment, net of tax 12,821 12,821 - 12,821 (25,642) 12,821 Comprehensive loss $ (193,100) $ (193,100) $ (7,163) $ (57,374) $ 257,637 $ (193,100) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Operations Year Ended December 31, 2016 (in thousands) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ - $ - $ 1,193,233 $ 281,310 $ (24,496) $ 1,450,047 Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion) - 6,582 944,349 196,839 (24,496) 1,123,274 Depreciation, depletion, amortization and accretion - 4,592 452,180 53,199 - 509,971 General and administrative expenses - 117,781 176,430 52,395 - 346,606 Reduction in value of assets - - 486,976 13,429 - 500,405 Loss from operations - (128,955) (866,702) (34,552) - (1,030,209) Other income (expense): Interest expense, net - (95,040) 3,425 (1,138) - (92,753) Other income (expense) - (4,345) 196 26,770 - 22,621 Equity in losses of consolidated subsidiaries (886,899) (738,047) (643) - 1,625,589 - Loss from continuing operations before income taxes (886,899) (966,387) (863,724) (8,920) 1,625,589 (1,100,341) Income taxes - (79,488) (189,850) 2,337 - (267,001) Net loss from continuing operations (886,899) (886,899) (673,874) (11,257) 1,625,589 (833,340) Loss from discontinued operations, net of income tax - - - (53,559) - (53,559) Net loss $ (886,899) $ (886,899) $ (673,874) $ (64,816) $ 1,625,589 $ (886,899) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statements of Comprehensive Loss Year Ended December 31, 2016 (in thousands) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net loss $ (886,899) $ (886,899) $ (673,874) $ (64,816) $ 1,625,589 $ (886,899) Change in cumulative translation adjustment, net of tax (34,554) (34,554) - (34,554) 69,108 (34,554) Comprehensive loss $ (921,453) $ (921,453) $ (673,874) $ (99,370) $ 1,694,697 $ (921,453) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2018 (in thousands) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 23,866 $ (2,013) $ 150,510 $ (4,023) $ (3,283) $ 165,057 Cash flows from investing activities: Payments for capital expenditures - (2,055) (207,640) (11,675) - (221,370) Proceeds from sales of assets - - 20,003 13,296 - 33,299 Net cash used in investing activities - (2,055) (187,637) 1,621 - (188,071) Cash flows from financing activities: Intercompany dividends - - - (3,283) 3,283 - Changes in notes with affiliated companies, net (21,734) (19,787) 22,564 18,957 - - Other (2,132) (454) - - - (2,586) Net cash provided by (used in) financing activities (23,866) (20,241) 22,564 15,674 3,283 (2,586) Effect of exchange rate changes on cash - - - (3,135) - (3,135) Net decrease in cash, cash equivalents, and restricted cash - (24,309) (14,563) 10,137 - (28,735) 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 $ - $ 102,224 $ 6,360 $ 55,164 $ - $ 163,748 SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2017 (in thousands) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 26,221 $ 3,369 $ 89,739 $ (22,903) $ 96,426 Cash flows from investing activities: Payments for capital expenditures - (1,041) (148,738) (15,154) (164,933) Other - - 23,485 4,784 28,269 Net cash used in investing activities - (1,041) (125,253) (10,370) (136,664) 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 - (11,967) - - (11,967) Changes in notes with affiliated companies, net (21,163) 8,727 4,648 7,788 - Other (5,058) - - - (5,058) Net cash provided by (used in) financing activities (26,221) (3,240) 4,648 7,788 (17,025) Effect of exchange rate changes on cash - - - 3,654 3,654 Net decrease in cash, cash equivalents, and restricted cash - (912) (30,866) (21,831) (53,609) 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 $ - $ 126,533 $ 20,923 $ 45,027 $ 192,483 SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows Year Ended December 31, 2016 (in thousands) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 29,149 $ (139,666) $ 248,627 $ (1,091) $ (75,767) $ 61,252 Cash flows from investing activities: Payments for capital expenditures - (405) (64,478) (15,665) - (80,548) Other - - 6,501 - - 6,501 Net cash used in investing activities - (405) (57,977) (15,665) - (74,047) Cash flows from financing activities: Proceeds from revolving credit facility - 325,123 - - - 325,123 Payments on revolving credit facility - (325,123) - - - (325,123) Payments on long-term debt - (325,000) - (12,576) - (337,576) Payment of debt issuance costs - (2,711) - - - (2,711) Intercompany dividends - - (73,017) (2,750) 75,767 - Changes in notes with affiliated companies, net (13,956) 185,950 (127,595) (44,399) - - Dividends paid (12,111) - - - - (12,111) Other (3,082) - - - - (3,082) Net cash provided by (used in) financing activities (29,149) (141,761) (200,612) (59,725) 75,767 (355,480) Effect of exchange rate changes on cash - - - (7,959) - (7,959) Net decrease in cash, cash equivalents, and restricted cash - (281,832) (9,962) (84,440) - (376,234) Cash, cash equivalents, and restricted cash at beginning of period - 409,277 61,751 151,298 - 622,326 Cash, cash equivalents, and restricted cash at end of period $ - $ 127,445 $ 51,789 $ 66,858 $ - $ 246,092 |