-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OgWV3XUEbkRRrWXusbj/bu5TQrgMqQP2sRLO2xC5CFzTHCvxi6rSQ/LzoXdOQuuX 7c196gr6l02yctOA8hyzRA== 0000950134-03-014975.txt : 20031112 0000950134-03-014975.hdr.sgml : 20031111 20031112124053 ACCESSION NUMBER: 0000950134-03-014975 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031112 ITEM INFORMATION: FILED AS OF DATE: 20031112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HELMERICH & PAYNE INC CENTRAL INDEX KEY: 0000046765 STANDARD INDUSTRIAL CLASSIFICATION: DRILLING OIL & GAS WELLS [1381] IRS NUMBER: 730679879 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04221 FILM NUMBER: 03992407 BUSINESS ADDRESS: STREET 1: UTICA AT 21ST ST CITY: TULSA STATE: OK ZIP: 74114 BUSINESS PHONE: 9187425531 MAIL ADDRESS: STREET 1: UTICA AT 21ST ST CITY: TULSA STATE: OK ZIP: 74114 8-K 1 d10547e8vk.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: November 12, 2003 HELMERICH & PAYNE, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-4221 73-0679879 - -------------------------------------------------------------------------------- (State or other (Commission File (I.R.S. Employer jurisdiction of Number) Identification incorporation) Number) Utica at Twenty-first Street, Tulsa, Oklahoma 74114 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (918) 742-5531 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) N/A - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On November 12, 2003, Helmerich & Payne, Inc. ("Registrant") issued a press release announcing its financial results for its fiscal year ended September 30, 2003. A copy of the press release is attached as Exhibit 99 to this Report on Form 8-K. This information is being furnished pursuant to Item 12 of Form 8-K and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HELMERICH & PAYNE, INC. By: /s/ STEVEN R. MACKEY ----------------------------- Name: Steven R. Mackey Title: Vice President Dated: November 12, 2003 EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION ------- ----------- 99 Helmerich & Payne, Inc. earnings press release dated November 12, 2003
EX-99 3 d10547exv99.txt EARNINGS PRESS RELEASE EXHIBIT 99 NOVEMBER 12, 2003 HELMERICH & PAYNE, INC. ANNOUNCES EARNINGS FOR FISCAL YEAR 2003 TULSA, OK - HELMERICH & PAYNE, INC. ANNOUNCED NET INCOME OF $18,730,000 ($0.37 PER DILUTED SHARE) FROM REVENUES OF $515,284,000 FOR ITS FISCAL YEAR ENDED SEPTEMBER 30, 2003. NET INCOME FROM CONTINUING OPERATIONS FOR THE PREVIOUS YEAR WAS $53,706,000 ($1.07 PER DILUTED SHARE) FROM REVENUES OF $551,879,000. NET INCOME INCLUDES GAINS FROM THE SALE OF PORTFOLIO SECURITIES OF $0.07 PER SHARE FOR 2003, AND $0.30 PER SHARE FOR 2002. NET INCOME ALSO INCLUDES A LOSS OF $0.01 PER SHARE, AND NET INCOME OF $0.06 PER SHARE FOR 2003 AND 2002, RESPECTIVELY, RESULTING FROM THE COMPANY'S SHARE OF LOSSES AND INCOME FROM ITS EQUITY AFFILIATES. FOURTH QUARTER NET INCOME WAS $7,387,000 ($0.15 PER DILUTED SHARE) FROM REVENUES OF $138,626,000, COMPARED WITH NET INCOME FROM CONTINUING OPERATIONS OF $4,899,000 ($0.10 PER DILUTED SHARE) FROM REVENUES OF $123,603,000 FOR LAST YEAR'S FOURTH QUARTER. INCLUDED IN FOURTH QUARTER NET INCOME WERE GAINS FROM THE SALE OF PORTFOLIO SECURITIES OF $0.06 PER SHARE FOR 2003, AND A LOSS OF $0.01 IN 2002. NET INCOME ALSO INCLUDES A LOSS OF $0.02 PER SHARE, AND INCOME OF $0.01 PER SHARE FOR FOURTH QUARTER 2003 AND 2002, RESPECTIVELY, RESULTING FROM THE COMPANY'S SHARE OF LOSSES AND INCOME FROM ITS EQUITY AFFILIATES. LAST YEAR'S NET INCOME FROM THE COMPANY'S FORMER EXPLORATION AND PRODUCTION COMPANY THAT WAS SPUN OFF SEPTEMBER 30, 2002 IS REPORTED AS INCOME FROM DISCONTINUED OPERATIONS OF AN ADDITIONAL $0.07 AND $0.19 PER DILUTED SHARE FOR THE THREE AND TWELVE MONTH PERIODS ENDED SEPTEMBER 30, 2002. TOTAL OPERATING PROFIT AND NET INCOME FROM CONTINUING OPERATIONS FOR THE COMPANY'S CURRENT YEAR'S FOURTH QUARTER WERE UP COMPARED TO LAST YEAR'S FOURTH QUARTER, BUT DECLINED COMPARED TO THE COMPANY'S PREVIOUS QUARTER ENDED JUNE 30, 2003. COMPARED WITH THE PREVIOUS QUARTER, FOURTH QUARTER OPERATING PROFIT, AND REVENUE AND MARGIN PER RIG DAY DECLINED IN ALL THREE OF THE COMPANY'S CONTRACT DRILLING BUSINESS SEGMENTS, WHILE OPERATING PROFIT INCREASED IN ITS REAL ESTATE SEGMENT DUE TO A GAIN FROM THE SALE OF UNDEVELOPED LAND. FOURTH QUARTER RIG UTILIZATIONS WERE FLAT TO DOWN IN ALL OF THE CONTRACT DRILLING BUSINESS SEGMENTS, COMPARED WITH THE PREVIOUS QUARTER. FOURTH QUARTER OPERATING PROFIT INCLUDES APPROXIMATELY $1.4 MILLION OF EARLY TERMINATION EARNINGS IN THE COMPANY'S OFFSHORE PLATFORM RIG SEGMENT. ADDITIONALLY, DURING THE FOURTH QUARTER, ONE OFFSHORE PLATFORM RIG WAS STACKED AND TWO RIGS THAT WERE WORKING AT FULL DAYRATE WHILE STILL ON CONTRACT WERE CHANGED TO STANDBY STATUS. CONSEQUENTLY, AVERAGE DAILY U.S. OFFSHORE PLATFORM RIG REVENUE AND PROFIT MARGIN WILL DECLINE IN THE FIRST QUARTER OF FISCAL 2004, WHICH WILL LIKELY REDUCE OPERATING PROFIT OF THE U.S. OFFSHORE PLATFORM RIG SEGMENT BY 50% FROM THAT OF THE FOURTH QUARTER OF FISCAL 2003. COMPANY PRESIDENT AND C.E.O., HANS HELMERICH COMMENTED; "WHILE INDUSTRY RIG COUNTS BEGAN TO IMPROVE IN THE LATTER PART OF OUR FISCAL YEAR, IT WAS NOT ENOUGH TO BRING A POSITIVE LIFT TO DAYRATES. IN FACT, THE RATE OF IMPROVEMENT SEEMED TO STALL DURING THE FOURTH QUARTER, CAUSING THE SLIGHTLY LOWER RESULTS WHEN COMPARED TO THE THIRD QUARTER. AS ANTICIPATED, OUR 2003 RESULTS WERE DOWN CONSIDERABLY FROM 2002. (OVER) PAGE 2 NOVEMBER 12, 2003 NEWS RELEASE MUCH HAS BEEN SAID AND WRITTEN THIS PAST YEAR ABOUT THE DISCONNECT BETWEEN HIGH OIL AND NATURAL GAS PRICES AND THE TEPID OILFIELD ACTIVITY. NEVERTHELESS, THE FUNDAMENTALS FOR IMPROVEMENT ARE SETTING UP FOR 2004 AND BEYOND. ENERGY PRICES CONTINUE TO SUPPORT ADDITIONAL CUSTOMER SPENDING AND POSITIVE REPORTS CONCERNING ECONOMIC RECOVERY POINT TO INCREASING DEMAND. A NORMAL WINTER WOULD PROVIDE AN IMPORTANT BOOST TO ACCELERATING NATURAL GAS DRILLING IN THE U.S., PARTICULARLY ON LAND. ALSO, WE HAVE BEGUN TO EXPERIENCE SOME IMPROVEMENT IN OUR INTERNATIONAL RIG ACTIVITY. WE CANNOT PREDICT HOW FAR INTO 2004 IT WILL TAKE TO ACHIEVE POSITIVE TRACTION, BUT WE ARE CONFIDENT THAT WE ARE WELL POSITIONED AS A COMPANY TO FULLY PARTICIPATE IN ANY UNFOLDING UP-CYCLE." REPORTING CHANGES AS DESCRIBED BELOW, THE COMPANY'S METHODOLOGY OF REPORTING BUSINESS SEGMENTS AND GENERAL AND ADMINISTRATIVE EXPENSES HAS BEEN CHANGED, WHICH SHOULD AID IN ANALYZING THE COMPANY. BUSINESS SEGMENT INFORMATION 1) THE NUMBER OF CONTRACT DRILLING BUSINESS SEGMENTS REPORTED HAVE INCREASED TO THREE TO REFLECT THE COMPANY'S U.S. OFFSHORE PLATFORM OPERATIONS SEPARATELY FROM THE U.S. LAND RIG OPERATIONS. FORMERLY, THE COMBINED U.S. SEGMENTS WERE REPORTED AS ONE SEGMENT. IT IS IMPORTANT TO NOTE THAT TOTAL OPERATING INCOME FOR U.S. OPERATIONS AND THE INTERNATIONAL CONTRACT DRILLING SEGMENT HAS NOT CHANGED. U.S. LAND AND OFFSHORE PLATFORM RIG SEGMENTS HAVE SIMPLY BEEN SEPARATED. 2) EXPENSES WITHIN THE COMPANY'S CONTRACT DRILLING BUSINESS SEGMENTS HAVE BEEN BROKEN OUT TO DELINEATE DIRECT OPERATING COSTS FROM ASSOCIATED GENERAL AND ADMINISTRATIVE COSTS. FORMERLY, BOTH COSTS WERE INCLUDED IN SEGMENT REPORTING CALCULATIONS BUT NOT SHOWN OR BROKEN OUT SEPARATELY. CONSOLIDATED STATEMENTS OF INCOME 3) SEGMENT-RELATED GENERAL AND ADMINISTRATIVE COSTS THAT WERE PREVIOUSLY INCLUDED IN OPERATING COSTS HAVE NOW BEEN RECLASSIFIED TO GENERAL AND ADMINISTRATIVE EXPENSE ON THE CONSOLIDATED STATEMENT OF INCOME. THE TOTAL AMOUNT OF THE RECLASSIFICATION IS EQUAL TO THE AMOUNTS INCLUDED IN BUSINESS SEGMENT REPORTING SHOWN AS ALLOCATED GENERAL AND ADMINISTRATIVE EXPENSE. NO OTHER NUMBERS ON THE CONSOLIDATED STATEMENTS OF INCOME WERE CHANGED OR AFFECTED BY THIS RECLASSIFICATION. (MORE) PAGE 3 NOVEMBER 12, 2003 NEWS RELEASE IN CONJUNCTION WITH THE SEPARATION OF THE U.S. LAND AND U.S. OFFSHORE PLATFORM SEGMENTS, THE COMPANY MADE MINOR CHANGES TO ITS METHOD OF ALLOCATING COSTS BETWEEN THOSE SEGMENTS. THOSE ALLOCATION ADJUSTMENTS RESULTED IN SLIGHT CHANGES IN THE HISTORICAL MARGINS FOR BOTH U.S. LAND AND OFFSHORE PLATFORM RIG OPERATIONS. FOR FISCAL YEARS 2001-2003, THE ADJUSTED HISTORICAL DAILY REVENUE, EXPENSES AND RESULTING PROFIT MARGIN PER RIG USING THE NEW METHODOLOGY, AS WELL AS BUSINESS SEGMENT REPORTING AND CONSOLIDATED STATEMENTS OF INCOME UNDER THE NEW FORMAT, CAN BE FOUND AT THE H&P WEBSITE AT WWW.HPINC.COM/INVESTOR UNDER SEGMENT INCOME, CONSOLIDATED STATEMENT OF INCOME AND OPERATING STATISTICS 2001-2003. HELMERICH & PAYNE, INC. (HP/NYSE) IS A CONTRACT DRILLING COMPANY THAT OWNS 85 U.S. LAND RIGS, 12 U.S. PLATFORM RIGS LOCATED IN THE GULF OF MEXICO, 30 RIGS LOCATED IN SOUTH AMERICA, ONE RIG IN HUNGARY AND ONE RIG IN CHAD, FOR A TOTAL OF 129 RIGS. THE COMPANY CURRENTLY OPERATES 47 H&P-DESIGNED FLEXRIGS(R) AND IS SCHEDULED TO COMPLETE THE CONSTRUCTION OF AN ADDITIONAL 3 FLEXRIGS TO BE PUT IN SERVICE BY MARCH 2004. HELMERICH AND PAYNE, INC.'S CONFERENCE CALL/WEBCAST IS SCHEDULED FOR THIS AFTERNOON AT 3:00 ET (2:00 CT). TO LISTEN, GO TO HTTP://WWW.FIRSTCALLEVENTS.COM/SERVICE/AJWZ392042520GF12.HTML. IF YOU ARE UNABLE TO PARTICIPATE DURING THE LIVE WEBCAST, THE CALL WILL BE ARCHIVED FOR 60 DAYS ON THE WEBSITE LISTED ABOVE AS WELL AS ON H&P'S WEBSITE AT WWW.HPINC.COM. THE INFORMATION TO BE DISCLOSED IN THE CONFERENCE CALL AND WEBCAST SHALL INCLUDE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE SECURITIES ACT OF 1933 AND THE SECURITIES EXCHANGE ACT OF 1934. SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES, AS DISCLOSED BY H&P FROM TIME TO TIME IN ITS FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. AS A RESULT OF THESE FACTORS, H&P'S ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE INDICATED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. CONTACT: DOUG FEARS (918) 588-5208 *FLEXRIG(R) HEREINAFTER REFERRED TO AS FLEXRIG (MORE) PAGE 4 NEWS RELEASE NOVEMBER 12, 2003 HELMERICH & PAYNE, INC. UNAUDITED (IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended Fiscal Year Ended ----------------------------------------- -------------------------- June 30 September 30 September 30 CONSOLIDATED STATEMENTS OF INCOME 2003 2003 2002 2003 2002 ---------- ---------- ---------- ---------- ---------- REVENUES Sales and other operating revenues $ 136,553 $ 132,815 $ 123,507 $ 507,331 $ 523,803 Income from investments and other 472 5,811 96 7,953 28,076 ---------- ---------- ---------- ---------- ---------- 137,025 138,626 123,603 515,284 551,879 ---------- ---------- ---------- ---------- ---------- COSTS AND EXPENSES Direct operating costs 88,720 88,408 86,468 345,537 361,669 Depreciation 21,517 22,817 17,320 82,513 61,447 General and administrative 9,368 9,119 10,323 41,003 36,563 Interest 3,247 3,240 712 12,289 980 ---------- ---------- ---------- ---------- ---------- 122,852 123,584 114,823 481,342 460,659 ---------- ---------- ---------- ---------- ---------- Income from continuing operations before income taxes and equity in income(loss) of affiliates 14,173 15,042 8,780 33,942 91,220 Provision for income taxes 6,144 6,473 4,416 14,649 40,573 Equity in income (loss) of affiliates net of income taxes 133 (1,182) 535 (563) 3,059 ---------- ---------- ---------- ---------- ---------- Income from continuing operations 8,162 7,387 4,899 18,730 53,706 Income from discontinued operations -- -- 3,924 -- 9,811 ---------- ---------- ---------- ---------- ---------- NET INCOME $ 8,162 $ 7,387 $ 8,823 $ 18,730 $ 63,517 ========== ========== ========== ========== ========== Basic earnings per common share: Income from continuing operations $ 0.16 $ 0.15 $ 0.10 $ 0.37 $ 1.08 Income from discontinued operations -- -- 0.08 -- 0.19 ---------- ---------- ---------- ---------- ---------- Net income $ 0.16 $ 0.15 $ 0.18 $ 0.37 $ 1.27 ========== ========== ========== ========== ========== Diluted earnings per common share: Income from continuing operations $ 0.16 $ 0.15 $ 0.10 $ 0.37 $ 1.07 Income from discontinued operations -- -- 0.07 -- 0.19 ---------- ---------- ---------- ---------- ---------- Net income $ 0.16 $ 0.15 $ 0.17 $ 0.37 $ 1.26 ========== ========== ========== ========== ========== Average common shares outstanding: Basic 50,045 50,108 49,921 50,039 49,825 Diluted 50,681 50,695 50,461 50,596 50,345
(more) PAGE 5 NEWS RELEASE NOVEMBER 12, 2003 HELMERICH & PAYNE, INC. UNAUDITED (IN THOUSANDS)
CONSOLIDATED CONDENSED BALANCE SHEETS 9/30/03 9/30/02 ------------ ------------ ASSETS Cash and cash equivalents $ 38,189 $ 46,883 Other current assets 159,342 131,868 ------------ ------------ Total current assets 197,531 178,751 ------------ ------------ Investments 160,152 150,175 Net property, plant, and equipment 1,058,205 897,445 Other assets 1,329 942 ------------ ------------ TOTAL ASSETS 1,417,217 $ 1,227,313 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Total current liabilities $ 88,617 $ 72,899 Total noncurrent liabilities 210,492 159,244 Long-term notes payable 200,000 100,000 Total Shareholders' Equity 918,108 895,170 ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,417,217 $ 1,227,313 ============ ============
(more) PAGE 6 NEWS RELEASE NOVEMBER 12, 2003
YEARS ENDED SEPTEMBER 30 CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS 2003 2002 ------------ ------------ (Amounts in thousands) OPERATING ACTIVITIES: Income from continuing operations $ 18,730 $ 53,706 Depreciation 82,513 61,447 Gain on sale of assets (9,218) (25,739) Changes in assets and liabilities 3,055 65,461 Other 1,424 (3,101) ------------ ------------ NET CASH PROVIDED BY OPERATING ACTIVITIES 96,504 151,774 ------------ ------------ INVESTING ACTIVITIES: Capital expenditures (246,301) (312,064) Proceeds from sale of assets 24,935 51,281 Purchase of investments -- (5,656) ------------ ------------ NET CASH USED IN INVESTING ACTIVITIES (221,366) (266,439) ------------ ------------ FINANCING ACTIVITIES: Net Proceeds from notes payable 130,000 50,000 Dividends paid (16,026) (15,221) Proceeds from exercise of stock options 2,194 3,554 ------------ ------------ NET CASH PROVIDED BY FINANCING ACTIVITIES 116,168 38,333 ------------ ------------ CASH USED IN DISCONTINUED OPERATIONS (5,611) NET DECREASE IN CASH AND CASH EQUIVALENTS (8,694) (81,943) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 46,883 128,826 ------------ ------------ CASH AND CASH EQUIVALENTS, END OF PERIOD $ 38,189 $ 46,883 ============ ============
(more) PAGE 7 NEWS RELEASE NOVEMBER 12, 2003
SEGMENT REPORTING THREE MONTHS ENDED FISCAL YEAR ENDED ------------------------------------------------ ------------------------------ JUNE 30 SEPTEMBER 30 SEPTEMBER 30 ------------ ------------------------------ ------------------------------ 2003 2003 2002 2003 2002 ------------ ------------ ------------ ------------ ------------ (Amounts in thousands except operating statistics) US LAND OPERATIONS Revenues $ 74,036 $ 75,507 $ 59,814 $ 273,993 $ 232,446 Intersegment elimination -- -- (127) -- (809) Direct operating expenses 52,327 54,079 44,699 201,398 165,394 Intersegment elimination -- -- (135) -- (648) General and administrative expense 2,108 1,711 3,497 9,304 10,087 Depreciation 11,936 13,356 7,768 44,726 26,311 ------------ ------------ ------------ ------------ ------------ Operating profit $ 7,665 $ 6,361 $ 3,858 $ 18,565 $ 30,493 Activity days 5,912 6,304 4,838 22,588 17,478 Average rig revenue per day $ 11,752 $ 11,236 $ 11,688 $ 11,436 $ 12,397 Average rig expense per day $ 8,080 $ 7,837 $ 8,564 $ 8,221 $ 8,561 Average rig margin per day $ 3,672 $ 3,399 $ 3,124 $ 3,215 $ 3,836 Rig utilization 82% 83% 85% 81% 84% US OFFSHORE OPERATIONS Revenues $ 30,596 $ 26,247 $ 30,767 $ 112,633 $ 132,249 Direct operating expenses 15,621 13,449 17,257 60,589 79,301 General and administrative expense 725 626 784 2,939 3,451 Depreciation 3,158 3,312 3,112 12,799 10,809 ------------ ------------ ------------ ------------ ------------ Operating profit $ 11,092 $ 8,860 $ 9,614 $ 36,306 $ 38,688 Activity days 592 529 723 2,233 3,286 Average rig revenue per day $ 41,058 $ 37,514 $ 31,651 $ 38,239 $ 30,424 Average rig expense per day $ 18,496 $ 17,067 $ 15,714 $ 17,822 $ 16,263 Average rig margin per day $ 22,562 $ 20,447 $ 15,937 $ 20,417 $ 14,161 Rig utilization 54% 48% 65% 51% 83%
(more) PAGE 8 NEWS RELEASE NOVEMBER 12, 2003
SEGMENT REPORTING THREE MONTHS ENDED FISCAL YEAR ENDED ------------------------------------------------ ------------------------------ JUNE 30 SEPTEMBER 30 SEPTEMBER 30 2003 2003 2002 2003 2002 ------------ ------------ ------------ ------------ ------------ (Amounts in thousands) INTERNATIONAL OPERATIONS Revenues $ 29,981 $ 26,856 $ 31,177 $ 109,812 $ 151,392 Direct operating expenses 20,280 20,429 23,561 81,461 115,294 General and administrative expense 705 723 842 3,110 2,634 Depreciation 5,112 5,095 5,486 20,092 20,336 ------------ ------------ ------------ ------------ ------------ Operating profit $ 3,884 $ 609 $ 1,288 $ 5,149 $ 13,128 Activity days 1,211 1,108 1,302 4,515 5,956 Average rig revenue per day $ 20,332 $ 19,820 $ 19,683 $ 19,603 $ 21,161 Average rig expense per day $ 13,970 $ 13,717 $ 13,475 $ 14,140 $ 14,599 Average rig margin per day $ 6,362 $ 6,103 $ 6,208 $ 5,463 $ 6,562 Rig utilization 43% 38% 43% 39% 51%
Per day calculations for international operations exclude gains and losses from translation of foreign currency transactions. Operating statistics exclude the effects of offshore platform management contracts, and do not include reimbursements of "out-of-pocket" expenses in revenue per day, expense per day and margin calculations. Reimbursed amounts were as follows: US Land Operations $ 4,557 $ 4,676 $ 3,265 $ 15,686 $ 15,780 US Offshore Operations $ 1,177 $ 1,537 $ 2,864 $ 7,304 $ 12,402 International Operations $ 1,991 $ 1,537 $ 2,197 $ 7,996 $ 12,769 REAL ESTATE Revenues $ 1,940 $ 4,205 $ 1,876 $ 10,893 $ 8,525 Direct operating expenses 436 429 478 1,789 1,617 Depreciation 693 544 407 2,535 1,844 ------------ ------------ ------------ ------------ ------------ Operating profit $ 811 $ 3,232 $ 991 $ 6,569 $ 5,064
(more) PAGE 9 NEWS RELEASE NOVEMBER 12, 2003
SEGMENT REPORTING THREE MONTHS ENDED FISCAL YEAR ENDED ------------------------------------------ -------------------------- JUNE 30 SEPTEMBER 30 SEPTEMBER 30 2003 2003 2002 2003 2002 ---------- ---------- ---------- ---------- ---------- The following table reconciles segment operating profit per the information above to income before income taxes and equity in income of affiliates as reported on the Consolidated Condensed Statements of Income (in thousands). OPERATING PROFIT US Land $ 7,665 $ 6,361 $ 3,858 $ 18,565 $ 30,493 US Offshore 11,092 8,860 9,614 36,306 38,688 International 3,884 609 1,288 5,149 13,128 Real Estate 811 3,232 991 6,569 5,064 ---------- ---------- ---------- ---------- ---------- SEGMENT OPERATING PROFITS 23,452 19,062 15,751 66,589 87,373 Unallocated amounts: Income from investments 472 5,811 96 7,953 28,076 Corporate general & administrative (5,830) (6,059) (5,200) (25,650) (20,391) Interest expense (3,247) (3,240) (712) (12,289) (980) Other depreciation (618) (510) (547) (2,361) (2,147) Other expense (56) (22) (608) (300) (711) ---------- ---------- ---------- ---------- ---------- Total unallocated amounts (9,279) (4,020) (6,971) (32,647) 3,847 ---------- ---------- ---------- ---------- ---------- INCOME BEFORE INCOME TAXES AND EQUITY IN INCOME OF AFFILIATES $ 14,173 $ 15,042 $ 8,780 $ 33,942 $ 91,220 ========== ========== ========== ========== ==========
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