Exhibit 99
| 1105 Peters Road Harvey, Lousiana 70058 (504) 362-4321 Fax (504)362-4966 NYSE: SPN |
FOR IMMEDIATE RELEASE | FOR FURTHER INFORMATION CONTACT: Terence Hall, CEO; Robert Taylor, CFO; |
Superior Energy Services, Inc. Announces First Quarter 2004 Results
(Harvey, La., Thursday, April 29, 2004) Superior Energy Services, Inc. (NYSE: SPN) today announced results for the first quarter ended March 31, 2004. For the quarter, revenues were $116.5 million resulting in net income of $3.6 million or $0.05 diluted earnings per share, as compared to revenues of $123.2 million and net income of $7.5 million or $0.10 diluted earnings per share for the first quarter of 2003.
President and CEO Terry Hall Comments
"Clearly, we are entering the second quarter on much stronger footing than we experienced for most of the first quarter. Well intervention activity and tool rentals are higher in April as compared to March. Although the liftboat market still remains highly competitive, we are experiencing longer-term projects for some of our liftboats, which should help utilization in certain classes."
Well Intervention Group Segment
First quarter revenues for the Well Intervention Group were $44.3 million, an 11% decrease from the fourth quarter of 2003. On a sequential basis, activity decreased for most production-related services, with the exception of mechanical wireline services, which benefited from several high pressure projects.
Rental Tools Segment
Revenues for the Rental Tools segment were a record $38.7 million, 11% higher than the fourth quarter of 2003, and 6% higher than the prior record of $36.4 million established in the second quarter of 2003. Rentals of stabilizers, drill pipe and accessories to customers in the U.S. land and Gulf of Mexico deepwater markets steadily increased throughout the quarter. The company rented its first drill pipe and handling tools in the West Africa market area. In addition, demand increased for rentals and services associated with refinery and plant projects, including bolting, torque services and on-site machining.
Marine Segment
Superior’s marine revenues were $13.6 million, a 15% decrease as compared to the fourth quarter of 2003. Average fleet utilization was 64% as compared to 66% for the fourth quarter of 2003. Liftboat utilization showed improvement beginning in mid-February and increased for the remainder of the quarter. Average liftboat dayrates decreased approximately 5% as compared to the fourth quarter of 2003.
Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended March 31, 2004
($ actual)
Class | Liftboats | Average Dayrate | Utilization | |||
105’ | 6 | $2,708 | 49.8% | |||
120-135’ | 8 | 3,384 | 67.0% | |||
145-155’ | 11 | 4,190 | 67.8% | |||
160’-175’ | 6 | 5,739 | 61.9% | |||
200’ | 2 | 8,957 | 60.4% | |||
230’-245’ | 3 | 11,318 | 72.8% | |||
250' | 2 | 16,105 | 78.0% |
Other Oilfield Services Segment
Revenues in this segment were $19.9 million, a 3% increase as compared to the fourth quarter of 2003. The sequential improvement was due primarily to increased activity for waste disposal, dockside cleaning and other environmental services.
The Company will host a conference call at 10 a.m. Central Time on Friday, April 30. The call can be accessed from Superior’s website at www.superiorenergy.com, or by telephone at 800-763-5557. The replay telephone number is 800-642-1687 and the replay passcode is 6854774. The replay is available beginning two hours after the call and ending May 7, 2004.
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, well control, hydraulic workover, coiled tubing services and engineering services. Additional services provided include contract operating and supplemental labor, 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.
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SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Three Months Ended March 31, 2004 and 2003
(in thousands, except earnings per share amounts)
(unaudited)
| 2004 |
| 2003 | |||||
Revenues | $ | 116,459 |
| $ | 123,195 |
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Costs and expenses: |
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| Cost of services |
| 66,705 |
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| 70,157 |
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| Depreciation, depletion, amortization and accretion |
| 14,774 |
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| 11,755 |
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| General and administrative |
| 24,192 |
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| 23,689 |
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Total costs and expenses |
| 105,671 |
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| 105,601 |
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Income from operations |
| 10,788 |
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| 17,594 |
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Other Income (expenses) |
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| Interest expense |
| (5,550) |
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| (5,603) |
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| Interest income |
| 441 |
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| 88 |
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| Equity in income of affiliates |
| 23 |
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| 127 |
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Income before taxes |
| 5,702 |
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| 12,206 |
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Income taxes |
| 2,138 |
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| 4,669 |
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Net income | $ | 3,564 |
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| $ | 7,507 |
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Basic earnings per share | $ | 0.05 |
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| $ | 0.10 |
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Diluted earnings per share | $ | 0.05 |
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| $ | 0.10 |
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Weighted average common shares used |
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in computing earnings per share: |
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| Basic |
| 74,213 |
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| 73,826 |
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| Diluted |
| 74,961 |
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| 74,595 |
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SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2004 AND DECEMBER 31, 2003
(in thousands)
3/31/2004 | 12/31/2003 | |||||||
(unaudited) | (Audited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 15,241 | $ | 19,794 | ||||
Accounts receivable - net | 118,473 | 112,775 | ||||||
Notes receivable | 16,143 | 19,212 | ||||||
Prepaid insurance and other | 15,066 | 14,059 | ||||||
Total current assets | 164,923 | 165,840 | ||||||
Property, plant and equipment - net | 435,395 | 427,360 | ||||||
Goodwill - net | 208,926 | 204,727 | ||||||
Notes receivable | 25,817 | 15,145 | ||||||
Investments in affiliates | 13,246 | 13,224 | ||||||
Other assets - net | 6,890 | 6,567 | ||||||
Total assets | 855,197 | 832,863 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 21,895 | 20,817 | |||||
Accrued expenses | 49,131 | 48,949 | ||||||
Income taxes payable | 189 | 138 | ||||||
Current portion of decommissioning liabilities | 18,081 | 20,097 | ||||||
Current maturities of long-term debt | 14,210 | 14,210 | ||||||
Total current liabilities | 103,506 | 104,211 | ||||||
Deferred income taxes | 89,576 | 86,251 | ||||||
Decommissioning liabilities | 32,463 | 18,756 | ||||||
Long-term debt | 252,166 | 255,516 | ||||||
Total stockholders' equity | 377,486 | 368,129 | ||||||
Total liabilities and stockholders' equity | $ | 855,197 | 832,863 |
Superior Energy Services, Inc. and Subsidiaries
Segment Highlights
Three months ended March 31, 2004 and 2003
(Unaudited)
(in thousands)
Revenue | March 2004 | March 2003 | |||
Well Intervention Group | $44,258 | $41,399 | |||
Marine | 13,611 | 18,665 | |||
Rental Tools | 38,732 | 34,600 | |||
Other Oilfield Services | 19,858 | 28,531 | |||
Total | $116,459 | $123,195 | |||
Gross Profit (1) | |||||
Well Intervention Group | $18,924 | $16,645 | |||
Marine | 1,982 | 5,998 | |||
Rental Tools | 26,119 | 23,486 | |||
Other Oilfield Services | 2,729 | 6,909 | |||
Total | $49,754 | $53,038 |
(1) | Gross profit is calculated by subtracting cost of services from revenue for each of the Company’s four segments. |