Supplemental Guarantor Information | (15) Supplemental Guarantor Information SESI, L.L.C. (the Issuer), a 100 % owned subsidiary of Superior Energy Services, Inc. (Parent), has $ 500 million of 7.75 % 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 June 30, 2019 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ - $ 171,636 $ 1,383 $ 61,113 $ - $ 234,132 Accounts receivable, net - 53 282,845 86,936 - 369,834 Intercompany accounts receivable - 16,634 74,813 4,623 ( 96,070 ) - Other current assets - 10,753 129,111 55,940 - 195,804 Total current assets - 199,076 488,152 208,612 ( 96,070 ) 799,770 Property, plant and equipment, net - 11,485 767,468 161,980 - 940,933 Operating lease right-of-use assets - 22,970 61,325 14,709 - 99,004 Goodwill - - 80,544 56,243 - 136,787 Notes receivable - - 66,010 - - 66,010 Long-term intercompany accounts receivable 2,252,636 - 2,296,357 186,844 ( 4,735,837 ) - Intercompany notes receivable - 600 - 6,000 ( 6,600 ) - Equity investments of consolidated subsidiaries ( 2,072,245 ) 3,709,645 6,668 - ( 1,644,068 ) - Restricted cash - - 2,694 45 - 2,739 Intangible and other long-term assets, net - 19,439 74,397 7,218 - 101,054 Total assets $ 180,391 $ 3,963,215 $ 3,843,615 $ 641,651 $ ( 6,482,575 ) $ 2,146,297 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ - $ 7,220 $ 64,473 $ 24,201 $ - $ 95,894 Accrued expenses - 86,167 96,837 35,878 - 218,882 Income taxes payable - ( 126 ) - 3,860 - 3,734 Intercompany accounts payable - 753 8,762 86,555 ( 96,070 ) - Current portion of decommissioning liabilities - - - 3,593 - 3,593 Total current liabilities - 94,014 170,072 154,087 ( 96,070 ) 322,103 Long-term debt, net - 1,284,814 - - - 1,284,814 Deferred income taxes - ( 156,259 ) 152,305 3,954 - - Decommissioning liabilities - - 129,604 - - 129,604 Operating lease liabilities - 23,564 44,875 10,534 - 78,973 Long-term intercompany accounts payable - 4,735,837 - - ( 4,735,837 ) - Intercompany notes payable - 6,000 - 600 ( 6,600 ) - Other long-term liabilities - 47,490 76,722 26,200 - 150,412 Total stockholders' equity (deficit) 180,391 ( 2,072,245 ) 3,270,037 446,276 ( 1,644,068 ) 180,391 Total liabilities and stockholders' equity $ 180,391 $ 3,963,215 $ 3,843,615 $ 641,651 $ ( 6,482,575 ) $ 2,146,297 SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Balance Sheets December 31, 2018 (in thousands) (unaudited) 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 Long-term debt, net - 1,282,921 - - - 1,282,921 Decommissioning liabilities - - 126,558 - - 126,558 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 Statements of Operations Three Months Ended June 30, 2019 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ - $ - $ 365,091 76,237 ( 5,013 ) $ 436,315 Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion) - ( 6,052 ) 257,675 49,818 ( 5,013 ) 296,428 Depreciation, depletion, amortization and accretion - 923 64,797 9,498 - 75,218 General and administrative expenses - 23,416 35,247 13,321 - 71,984 Reduction in value of assets - - 31,381 - - 31,381 Income (loss) from operations - ( 18,287 ) ( 24,009 ) 3,600 - ( 38,696 ) Other income (expense): Interest income (expense), net - ( 25,902 ) 1,245 7 - ( 24,650 ) Intercompany interest income (expense) - ( 25 ) - 25 - - Other income (expense) - ( 284 ) ( 1,308 ) 2,082 - 490 Equity in losses of consolidated subsidiaries ( 71,050 ) ( 36,551 ) ( 5 ) - 107,606 - Income (loss) from operations before income taxes ( 71,050 ) ( 81,049 ) ( 24,077 ) 5,714 107,606 ( 62,856 ) Income taxes - ( 9,999 ) 14,703 3,490 - 8,194 Net income (loss) ( 71,050 ) ( 71,050 ) ( 38,780 ) 2,224 107,606 ( 71,050 ) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statements of Comprehensive Income (Loss) Three Months Ended June 30, 2019 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ ( 71,050 ) $ ( 71,050 ) $ ( 38,780 ) $ 2,224 $ 107,606 $ ( 71,050 ) Change in cumulative translation adjustment, net of tax ( 1,916 ) ( 1,916 ) - ( 1,916 ) 3,832 ( 1,916 ) Comprehensive loss $ ( 72,966 ) $ ( 72,966 ) $ ( 38,780 ) $ 308 $ 111,438 $ ( 72,966 ) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Operations Three Months Ended June 30, 2018 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ - $ - $ 473,724 $ 73,289 $ ( 11,465 ) $ 535,548 Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion) - ( 2,963 ) 334,169 50,069 ( 11,465 ) 369,810 Depreciation, depletion, amortization and accretion - 990 85,501 11,482 - 97,973 General and administrative expenses - 21,098 35,668 13,130 - 69,896 Income (loss) from operations - ( 19,125 ) 18,386 ( 1,392 ) - ( 2,131 ) Other income (expense): Interest income (expense), net - ( 25,884 ) 980 10 - ( 24,894 ) Other income (expense) - ( 186 ) 264 ( 2,460 ) - ( 2,382 ) Equity in earnings (losses) of consolidated subsidiaries ( 26,390 ) 11,361 ( 200 ) - 15,229 - Income (loss) from continuing operations before income taxes ( 26,390 ) ( 33,834 ) 19,430 ( 3,842 ) 15,229 ( 29,407 ) Income taxes - ( 7,444 ) 3,001 473 - ( 3,970 ) Net income (loss) from continuing operations ( 26,390 ) ( 26,390 ) 16,429 ( 4,315 ) 15,229 ( 25,437 ) Loss from discontinued operations, net of income tax - - - ( 953 ) - ( 953 ) Net income (loss) $ ( 26,390 ) $ ( 26,390 ) $ 16,429 $ ( 5,268 ) $ 15,229 $ ( 26,390 ) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statements of Comprehensive Income (Loss) Three Months Ended June 30, 2018 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ ( 26,390 ) $ ( 26,390 ) $ 16,429 $ ( 5,268 ) $ 15,229 $ ( 26,390 ) Change in cumulative translation adjustment, net of tax ( 7,053 ) ( 7,053 ) - ( 7,053 ) 14,106 ( 7,053 ) Comprehensive income (loss) $ ( 33,443 ) $ ( 33,443 ) $ 16,429 $ ( 12,321 ) $ 29,335 $ ( 33,443 ) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Operations Six Months Ended June 30, 2019 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ - $ - $ 756,483 $ 158,136 $ ( 11,128 ) $ 903,491 Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion) - ( 6,871 ) 538,653 105,937 ( 11,128 ) 626,591 Depreciation, depletion, amortization and accretion - 1,873 136,360 19,424 - 157,657 General and administrative expenses - 47,738 74,663 23,428 - 145,829 Reduction in value of assets - - 31,381 - - 31,381 Income (loss) from operations - ( 42,740 ) ( 24,574 ) 9,347 - ( 57,967 ) Other income (expense): Interest income (expense), net - ( 52,284 ) 2,472 41 - ( 49,771 ) Intercompany interest income (expense) ( 25 ) - 25 Other income (expense) - ( 1,075 ) ( 1,210 ) 1,163 - ( 1,122 ) Equity in earnings (losses) of consolidated subsidiaries ( 118,755 ) ( 44,399 ) 724 - 162,430 - Income (loss) from continuing operations before income taxes ( 118,755 ) ( 140,523 ) ( 22,588 ) 10,576 162,430 ( 108,860 ) Income taxes - ( 21,768 ) 25,162 6,501 - 9,895 Net income (loss) $ ( 118,755 ) $ ( 118,755 ) $ ( 47,750 ) $ 4,075 $ 162,430 $ ( 118,755 ) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statements of Comprehensive Income (Loss) Six Months Ended June 30, 2019 (in thousands) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ ( 118,755 ) $ ( 118,755 ) $ ( 47,750 ) $ 4,075 $ 162,430 $ ( 118,755 ) Change in cumulative translation adjustment, net of tax ( 843 ) ( 843 ) - ( 843 ) 1,686 ( 843 ) Comprehensive income (loss) $ ( 119,598 ) $ ( 119,598 ) $ ( 47,750 ) $ 3,232 $ 164,116 $ ( 119,598 ) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Operations Six Months Ended June 30, 2018 (in thousands) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Revenues $ - $ - $ 908,858 $ 126,548 $ ( 17,540 ) $ 1,017,866 Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion) - ( 5,589 ) 645,233 91,166 ( 17,540 ) 713,270 Depreciation, depletion, amortization and accretion - 2,009 178,215 23,468 - 203,692 General and administrative expenses - 46,762 74,357 24,597 - 145,716 Loss from operations - ( 43,182 ) 11,053 ( 12,683 ) - ( 44,812 ) Other income (expense): Interest expense, net - ( 51,754 ) 1,947 26 - ( 49,781 ) Other income (expense) - ( 252 ) 538 ( 4,403 ) - ( 4,117 ) Equity in losses of consolidated subsidiaries ( 86,114 ) ( 6,109 ) ( 368 ) - 92,591 - Loss from continuing operations before income taxes ( 86,114 ) ( 101,297 ) 13,170 ( 17,060 ) 92,591 ( 98,710 ) Income taxes - ( 15,183 ) 1,925 ( 67 ) - ( 13,325 ) Net loss from continuing operations ( 86,114 ) ( 86,114 ) 11,245 ( 16,993 ) 92,591 ( 85,385 ) Loss from discontinued operations, net of income tax - - - ( 729 ) - ( 729 ) Net loss $ ( 86,114 ) $ ( 86,114 ) $ 11,245 $ ( 17,722 ) $ 92,591 $ ( 86,114 ) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidating Statements of Comprehensive Income (Loss) Six Months Ended June 30, 2018 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ ( 86,114 ) $ ( 86,114 ) $ 11,245 $ ( 17,722 ) $ 92,591 $ ( 86,114 ) Change in cumulative translation adjustment, net of tax ( 2,665 ) ( 2,665 ) - ( 2,665 ) 5,330 ( 2,665 ) Comprehensive income (loss) $ ( 88,779 ) $ ( 88,779 ) $ 11,245 $ ( 20,387 ) $ 97,921 $ ( 88,779 ) SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows Six Months Ended June 30, 2019 (in thousands) (unaudited) Parent Issuer Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 10,232 $ ( 246,583 ) $ 288,600 $ 16,581 $ 68,830 Cash flows from investing activities: Payments for capital expenditures - ( 3,290 ) ( 72,981 ) ( 2,865 ) ( 79,136 ) Proceeds from sales of assets - - 84,557 - 84,557 Net cash provided by (used in) investing activities - ( 3,290 ) 11,576 ( 2,865 ) 5,421 Cash flows from financing activities: Changes in notes with affiliated companies, net ( 9,206 ) 319,285 ( 302,459 ) ( 7,620 ) - Other ( 1,026 ) - - - ( 1,026 ) Net cash provided by (used in) financing activities ( 10,232 ) 319,285 ( 302,459 ) ( 7,620 ) ( 1,026 ) Effect of exchange rate changes on cash - - - ( 102 ) ( 102 ) Net change in cash, cash equivalents, and restricted cash - 69,412 ( 2,283 ) 5,994 73,123 Cash, cash equivalents, and restricted cash at beginning of period - 102,224 6,360 55,164 163,748 Cash, cash equivalents, and restricted cash at end of period $ - $ 171,636 $ 4,077 $ 61,158 $ 236,871 SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows Six Months Ended June 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 $ 12,342 $ ( 91,600 ) $ 131,729 $ ( 1,787 ) $ ( 11,269 ) $ 39,415 Cash flows from investing activities: Payments for capital expenditures - ( 549 ) ( 114,360 ) ( 4,932 ) - ( 119,841 ) Proceeds from sales of assets - - 10,150 13,147 - 23,297 Net cash provided by (used in) investing activities - ( 549 ) ( 104,210 ) 8,215 - ( 96,544 ) Cash flows from financing activities: Intercompany dividends - - - ( 11,269 ) 11,269 - Changes in notes with affiliated companies, net ( 8,834 ) 34,815 ( 35,613 ) 9,632 - - Other ( 3,508 ) ( 392 ) - - - ( 3,900 ) Net cash provided by (used in) financing activities ( 12,342 ) 34,423 ( 35,613 ) ( 1,637 ) 11,269 ( 3,900 ) Effect of exchange rate changes on cash - - - ( 1,311 ) - ( 1,311 ) Net change in cash, cash equivalents, and restricted cash - ( 57,726 ) ( 8,094 ) 3,480 - ( 62,340 ) 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 $ - $ 68,807 $ 12,829 $ 48,507 $ - $ 130,143 |