Exhibit 99
Superior Energy Services, Inc. Announces Fourth Quarter 2002 Results
HARVEY, La.--(BUSINESS WIRE)--Feb. 27, 2003--Superior Energy Services, Inc. (NYSE: SPN) today announced results for the fourth quarter ended December 31, 2002. For the quarter, revenues were $118.4 million resulting in net income of $5.6 million or $0.08 diluted earnings per share, as compared to revenues of $119.5 million and net income of $11.8 million or $0.17 diluted earnings per share, exclusive of goodwill amortization, for the fourth quarter of 2001.
For the year ended December 31, 2002, revenues were $443.1 million and net income was $21.9 million or $0.30 diluted earnings per share, as compared to revenues of $449.0 million and net income before cumulative effect of change in accounting principle of $55.4 million or $0.79 diluted earnings per share, exclusive of goodwill amortization, for the year ended December 31, 2001.
President and CEO Terry Hall Comments
President and CEO Terry Hall commented, "After a slow start to the fourth quarter due to tropical weather systems, our marine services group benefited from work created by those same systems. Activity in our well intervention group was mixed, with some services benefiting from storm-related opportunities. Although most storm-related work was completed by year-end, liftboat utilization during the first two months of the first quarter has been slightly higher than what we typically experience at this time of year. In addition, Gulf of Mexico activity is moderately increasing for certain well intervention services and rental tools. Although it is too early in the year to determine if the improving market conditions we're seeing will be sustained, we remain optimistic that activity and utilization will increase in 2003, allowing us to benefit from our increased asset base and operational leverage."
Well Intervention Group Segment
Fourth quarter revenues for the Well Intervention Group were $36.1 million, unchanged from the third quarter of 2002. Activity increased in mechanical wireline and pumping and stimulation, which was offset by decreased activity in electric line and plug and abandonment services.
Rental Tools Segment
Revenues for the Rental Tools segment were $33.4 million, a 14% increase as compared to the third quarter of 2002. Rentals of drill pipe increased sharply due to additional demand in the deepwater Gulf of Mexico. In addition, rentals of on-site accommodations and ancillary items increased.
Marine Segment
Superior's marine revenues were $21.2 million, a 48% increase as compared to the third quarter of 2002. Dayrates and utilization increased across all classes as the marine segment posted its best quarter of the year in terms of revenue and EBITDA (earnings before interest, taxes, depreciation and amortization). The Company's 200-ft. class liftboat in Venezuela was idle most of the quarter due to the strike-led activity decline.
In December, the Company took delivery of the 245-foot class Superior Gale, an ABS-classed, U.S. Coast Guard inspected vessel equipped with a 250-ton crane, a useable deck space of approximately 8,400 square feet and accommodations for up to 46 people. Superior now owns five liftboats with leg lengths of 230-ft. and greater.
Liftboat Average Dayrates and Utilization by Class Size Three Months Ended December 31, 2002 ($ actual) | |||
Class | Liftboats | Average Dayrate | Utilization |
-------- | --------- | --------------- | ----------- |
105' | 8 | $3,234 | 87.6% |
120-135' | 8 | 3,527 | 76.4% |
145-155' | 11 | 5,838 | 63.8% |
160'-175' | 6 | 7,725 | 90.9% |
200' | 3 | 8,875 | 75.4% |
230'-245' | 3 | 12,652 | 93.5% |
250' | 2 | 18,691 | 88.0% |
Other Oilfield Services Segment
Revenues in this segment were $27.7 million, a 1% increase as compared to the third quarter of 2002 due primarily to increased activity for waste disposal and field management offset by seasonal decreases in construction and fabrication projects.
The Company will host a conference call at 10 a.m. Central Time (11 a.m. Eastern Time) today.
The call can be accessed from the following link: www.corporate-ir.net/ireye/ir_site.zhtml?ticker=SPN&script=1010&item_id=710593 or by telephone at 800-763-5557. The replay telephone number is 800-642-1687 (available 2 hours after call and ending March 5, 2003) and the replay passcode is 8047421.
Superior Energy Services, Inc. provides a broad range of specialized oilfield services and equipment primarily to major and independent oil and gas companies engaged in the exploration, production and development of oil and natural gas properties offshore in the Gulf of Mexico and throughout the Gulf Coast region. These services and equipment include the rental of liftboats, rental of specialized oilfield equipment, electric and mechanical wireline services, well plug and abandonment services, coiled tubing services and engineering services. Additional services provided include contract operating and supplemental labor, offshore construction and maintenance services, offshore and dockside environmental cleaning services, the manufacture and sale of drilling instrumentation and the manufacture and sale of oil spill containment equipment.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which involve known and unknown risks, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: volatility of the oil and gas industry, including the level of exploration, production and development activity; risks associated with the Company's rapid growth; changes in competitive factors and other material factors that are described from time to time in the Company's filings with the Securities and Exchange Commission. Actual events, circumstances, effects and results may be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Consequently, the forward-looking statements contained herein should not be regarded as representations by Superior or any other person that the projected outcomes can or will be achieved.
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Consolidated Statements of Operations Three Months and Year Ended December 31, 2002 and 2001 (in thousands, except earnings per share amounts) | |||||||
(unaudited) | |||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||
---------------------- | ------------------- | ||||||
| 2002 | 2001(A) | 2002 | 2001(A) | ||||
| ----------- | --------- | --------- | -------- | ||||
Revenues | $118,378 |
| $119,541 |
| $443,147 |
| $449,042 |
| ----------- |
| --------- |
| --------- |
| -------- |
Costs and expenses: |
|
|
|
|
|
|
|
Cost of services | 69,820 |
| 65,442 |
| 258,334 |
| 237,355 |
Depreciation and |
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|
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|
|
|
|
amortization | 11,322 |
| 9,582 |
| 41,595 |
| 33,446 |
General and |
|
|
|
|
|
|
|
administrative | 22,279 |
| 21,297 |
| 86,197 |
| 73,288 |
| ----------- |
| --------- |
| --------- |
| -------- |
Total costs and |
|
|
|
|
|
|
|
expenses | 103,421 |
| 96,321 |
| 386,126 |
| 344,089 |
| ----------- |
| --------- |
| --------- |
| -------- |
Income from operations | 14,957 |
| 23,220 |
| 57,021 |
| 104,953 |
Other income (expense): |
|
|
|
|
|
|
|
Interest expense | (5,597) |
| (5,506) |
| (21,884) |
| (20,087) |
Interest income | 100 |
| 409 |
| 530 |
| 1,892 |
Equity in loss of |
|
|
|
|
|
|
|
affiliates | (338) |
| - |
| (80) |
| - |
| ----------- |
| --------- |
| --------- |
| -------- |
Income before income |
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taxes and cumulative |
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effect of change in |
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accounting principle | 9,122 |
| 18,123 |
| 35,587 |
| 86,758 |
Income taxes | 3,512 |
| 7,431 |
| 13,701 |
| 35,571 |
| ----------- |
| --------- |
| --------- |
| -------- |
Income before cumulative |
|
|
|
|
|
|
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effect of change |
|
|
|
|
|
|
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in accounting principle | 5,610 |
| 10,692 |
| 21,886 |
| 51,187 |
Cumulative effect of change |
|
|
|
|
|
|
|
in accounting principle, |
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|
|
|
|
net of income tax expense | - |
| - |
| - |
| 2,589 |
| ----------- |
| --------- |
| --------- |
| -------- |
Net income | $5,610 |
| $10,692 |
| $21,886 |
| $53,776 |
| =========== |
| ========= |
| ========= |
| ======== |
Basic earnings per share: |
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Earnings before |
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cumulative effect of |
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|
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change in accounting |
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|
|
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principle | $0.08 |
| $0.15 |
| $0.30 |
| $0.74 |
Cumulative effect of |
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|
|
|
|
|
change in accounting |
|
|
|
|
|
|
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principle | - |
| - |
| - |
| 0.04 |
| ----------- |
| --------- |
| --------- |
| --------- |
Earnings per share | $0.08 |
| $0.15 |
| $0.30 |
| $0.78 |
| =========== |
| ========= |
| ========= |
| ========= |
Diluted earnings per share: |
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|
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Earnings before |
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|
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cumulative effect |
|
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|
|
|
|
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of change in |
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|
|
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|
|
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accounting principle | $0.08 |
| $0.15 |
| $0.30 |
| $0.73 |
Cumulative effect of |
|
|
|
|
|
|
|
change in accounting |
|
|
|
|
|
|
|
principle | - |
| - |
| - |
| 0.04 |
| ----------- |
| --------- |
| --------- |
| --------- |
Earnings per share | $0.08 |
| $0.15 |
| $0.30 |
| $0.77 |
| =========== |
| ========= |
| ========= |
| ========= |
Weighted average common |
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shares used in computing |
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earnings per share: |
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|
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Basic | 73,784 |
| 69,246 |
| 72,912 |
| 68,545 |
| =========== |
| ========= |
| ========= |
| ========= |
Diluted | 74,480 |
| 69,895 |
| 73,872 |
| 69,592 |
| =========== |
| ========= |
| ========= |
| ========= |
(A) Earnings per diluted share before cumulative effect of change in accounting principal, excluding goodwill amortization, net of taxes, was $0.17 and $0.79 for the three months and year ended December 31, 2001, respectively (SFAS 142). | |||||||
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2002 AND 2001 (in thousands) | |||
| 12/31/2002 |
| 12/31/2001 |
| ----------- |
| ----------- |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents | $3,480 |
| $3,769 |
Accounts receivable - net | 108,352 |
| 109,835 |
Income taxes receivable | 6,087 |
| 11,694 |
Prepaid insurance and other | 11,663 |
| 10,181 |
| ----------- |
| ----------- |
Total current assets | 129,582 |
| 135,479 |
Property, plant and equipment - net | 418,047 |
| 345,878 |
Goodwill - net | 160,366 |
| 148,729 |
Notes receivable | - |
| 23,062 |
Investments in affiliates | 12,343 |
| - |
Other assets - net | 7,282 |
| 12,372 |
| ----------- |
| ----------- |
Total assets | $727,620 |
| $665,520 |
| =========== |
| =========== |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable | $21,010 |
| $21,591 |
Accrued expenses | 33,871 |
| 40,093 |
Deferred income taxes | - |
| 510 |
Current maturities of long-term debt | 13,730 |
| 16,727 |
| ----------- |
| ----------- |
Total current liabilities | 68,611 |
| 78,921 |
| ----------- |
| ----------- |
Deferred income taxes | 67,333 |
| 47,390 |
Long-term debt | 256,334 |
| 269,633 |
Total stockholders' equity | 335,342 |
| 269,576 |
| ----------- |
| ----------- |
Total liabilities and stockholders' equity | $727,620 |
| $665,520 |
| =========== |
| =========== |
Superior Energy Services, Inc. and Subsidiaries Segment Highlights Three months ended December 31, 2002 and 2001, and September 30, 2002 (Unaudited) (in thousands) | |||||||||
Revenue |
| December 2002 |
| September 2002 |
| December 2001 | |||
|
| ------------- |
| ------------- |
| ------------- | |||
Well Intervention Group |
| $ | 36,081 |
| $ | 36,115 |
| $ | 45,374 |
Marine |
| 21,212 |
|
| 14,326 |
|
| 18,565 | |
Rental Tools |
| 33,409 |
| 29,401 |
| 32,627 | |||
Other Oilfield Services |
| 27,676 |
| 27,371 |
| 22,975 | |||
|
| ------------ |
| ------------- |
| ------------ | |||
Total | $ | 118,378 |
| $ | 107,213 |
| $ | 119,541 | |
Gross Profit |
|
|
|
|
| ||||
Well Intervention Group |
| $ | 12,096 |
| $ | 11,701 |
| $ | 17,688 |
Marine |
| 8,529 |
| 2,870 |
|
| 8,506 | ||
Rental Tools |
| 22,795 |
| 20,028 |
| 23,575 | |||
Other Oilfield Services |
| 5,138 |
| 5,478 |
| 4,330 | |||
|
| ------------ |
| ------------- |
| ------------ | |||
Total |
| $ | 48,558 |
| $ | 40,077 |
| $ | 54,099 |
- -------------------------------------------------------------------------------
Contact:
Superior Energy Services, Inc.
Terence Hall, Robert Taylor, or Greg Rosenstein,
504/362-4321