UNITED STATES
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 EARLIEST EVENT REPORTED: July 29, 2011
HELMERICH & PAYNE, INC.
(Exact name of registrant as specified in its charter)
State of Incorporation: Delaware
COMMISSION FILE NUMBER 1-4221
Internal Revenue Service Employer Identification No. 73-0679879
1437 South Boulder Avenue, Suite 1400, Tulsa, Oklahoma 74119
(918) 742-5531
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On July 29, 2011, Helmerich & Payne, Inc. (Registrant) issued a press release announcing its financial results for its third quarter ended June 30, 2011. 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 2.02 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.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
Exhibit No. |
|
Description |
|
|
|
99 |
|
Helmerich & Payne, Inc. earnings press release dated July 29, 2011 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly authorized the undersigned to sign this report on its behalf.
|
HELMERICH & PAYNE, INC. |
|
(Registrant) |
|
|
|
|
|
/S/ Steven R. Mackey |
|
Steven R. Mackey |
|
Executive Vice President |
|
|
|
DATE: July 29, 2011 |
EXHIBIT INDEX
Exhibit No. |
|
Description |
|
|
|
99 |
|
Helmerich & Payne, Inc. earnings press release dated July 29, 2011 |
Exhibit 99
July 29, 2011
HELMERICH & PAYNE, INC. ANNOUNCES THIRD QUARTER EARNINGS AND 20 NEW
FLEXRIG® CONTRACTS
Helmerich & Payne, Inc. (NYSE: HP) reported income from continuing operations of $109,828,000 ($1.01 per diluted share) from operating revenues of $644,095,000 for its third fiscal quarter ended June 30, 2011, compared to income from continuing operations of $64,883,000 ($0.61 per diluted share) from operating revenues of $483,384,000 during last years third fiscal quarter ended June 30, 2010. Included in this years third fiscal quarter income from continuing operations are after-tax gains of $0.01 per share from the sale of portfolio securities and $0.02 per share from the sale of tubulars and other used drilling equipment. Also included in this years third fiscal quarter income from continuing operations are $0.02 per share of after-tax expenses unrelated to normal operations during the quarter and attributable to the settlement of a lawsuit. Included in income from continuing operations for the third fiscal quarter of 2010 were after-tax gains of $0.01 per share from the sale of tubulars and other used drilling equipment. Net income for the third fiscal quarter of 2011 was $109,826,000 ($1.01 per diluted share), compared to a net loss of $36,715,000 (-$0.34 per diluted share) during last years third fiscal quarter.
For the nine months ended June 30, 2011, the Company reported income from continuing operations of $313,154,000 ($2.87 per diluted share) from operating revenues of $1,843,143,000 compared with income from continuing operations of $202,790,000 ($1.89 per diluted share) from operating revenues of $1,316,205,000 during the nine months ended June 30, 2010. Included in income from continuing operations for the first nine months of fiscal 2011 are after-tax gains of $0.01 per share from the sale of portfolio securities and $0.06 per share from the sale of tubulars and other used drilling equipment. Also included in income from continuing operations for the first nine months of fiscal 2011 are $0.06 per share of after-tax expenses unrelated to normal operations. Included in income from continuing operations for the first nine months of fiscal 2010 were after-tax gains of $0.03 per share from the sale of tubulars and other used drilling equipment. Net income for the first nine months of fiscal 2011 was $312,766,000 ($2.87 per diluted share), compared to net income of $73,276,000 ($0.68 per diluted share) during the first nine months of fiscal 2010.
Helmerich & Payne, Inc. also announced today that, in addition to the 12 new FlexRig commitments announced earlier this month, the Company has entered into agreements to build and operate 20 additional FlexRigs. These 20 rigs will be built under multi-year term contracts with four exploration and production companies and are scheduled to be completed during fiscal 2012. The names of the customers and other terms were not disclosed.
The Company has now announced commitments during this fiscal year to build a total of 58 new FlexRigs, all under multi-year term contracts with attractive dayrates and economic returns. This represents a 28 percent increase in the number of FlexRigs in the Companys fleet. Including the new builds announced today, 42 remain under construction and are currently being completed at the rate of approximately three FlexRigs per month. In response to the significant increase in demand for FlexRigs, the Company is now planning to increase the production cadence to four FlexRigs per month beginning October 2011.
Consistent with the Companys long standing tradition of innovative leadership, Helmerich & Payne, Inc. also announced today the introduction of the FlexRig5 design, the fifth FlexRig generation. The FlexRig5 is ideally suited for long lateral drilling of multiple wells from a single location, which is increasingly in demand for plays such as unconventional shale reservoirs. The new design preserves the key performance
(over)
Page 2
News Release
July 29, 2011
features of H&Ps flagship FlexRig3 combined with a bi-directional pad drilling system and equipment capacities suitable for wells in excess of 24,000 feet of measured depth. The FlexRig5 will help the Company expand into new markets as it provides its customers with a broader offering. Upon completion of the announced rig orders, the Company will have produced eleven FlexRig5 rigs.
President and CEO Hans Helmerich commented, We are pleased with the Companys third quarter results and the announcement of 20 additional rig orders, bringing our quarterly total to 32 new builds. Our introduction of the FlexRig5 reflects our ongoing commitment to innovative design and driving enhanced rig capacity and performance. It promises to deliver all the FlexRig safety, performance and reliability features that our customers have come to rely upon in a greater depth capacity, multi-well pad drilling application.
Segment operating income for U.S. land operations was $176,832,000 for the third fiscal quarter of 2011, compared with $103,138,000 for last years third fiscal quarter and $164,289,000 for this years second fiscal quarter. The sequential increase in segment operating income was primarily attributable to increased drilling activity related to the delivery of new build FlexRigs. The Companys quarterly revenue days for the segment increased by approximately six percent to 18,912 revenue days during the third fiscal quarter of 2011, from 17,797 revenue days during the second fiscal quarter of 2011. The corresponding average rig revenue per day also sequentially increased by $330 to $25,970 during the third fiscal quarter of 2011. The $330 increase in average rig revenue per day was largely offset by a $291 increase in average rig expense per day, generating only a slight sequential increase in average rig margin per day, from $13,183 during this years second fiscal quarter to $13,222 during this years third fiscal quarter. However, the lawsuit settlement mentioned in the first paragraph (that was unrelated to normal operations during the quarter) resulted in approximately $189 per day that is included in the average rig expense per day of $12,748 during the third fiscal quarter. Rig utilization for the Companys U.S. land segment was 87% for this years third fiscal quarter, compared with 76% for last years third fiscal quarter and 85% for this years second fiscal quarter. At June 30, 2011, the Companys U.S. land segment had 213 contracted rigs and 32 idle rigs. The 213 contracted rigs included 140 rigs under term contracts.
Segment operating income for the Companys offshore operations was $12,944,000 for the third fiscal quarter of 2011, compared with $11,231,000 for last years third fiscal quarter and $11,476,000 for this years second fiscal quarter. The sequential increase in segment operating income was primarily a function of a higher average rig margin per day, which was $25,820 for this years third fiscal quarter as compared to $23,747 for this years second fiscal quarter.
The Companys international land operations reported a segment operating loss of $624,000 for this years third fiscal quarter, compared with operating income of $9,893,000 for last years third fiscal quarter and $2,443,000 for this years second fiscal quarter. The sequential decline in segment operating income was primarily a function of a lower average rig margin per day, which was $5,353 for this years third fiscal quarter as compared to $7,106 for this years second fiscal quarter.
Helmerich & Payne, Inc. is primarily a contract drilling company. As of July 29, 2011, the Companys existing fleet included 249 land rigs in the U.S., 24 international land rigs and nine offshore platform rigs. In addition, the Company is scheduled to complete by the end of fiscal 2012 another 42 new H&P-designed and operated FlexRigs under long-term contracts with customers. Upon completion of these commitments, the Companys global land fleet is expected to have a total of 315 rigs, including 267 FlexRigs.
Helmerich & Payne, Inc.s conference call/webcast is scheduled to begin this morning at 11:00 a.m. ET (10:00 a.m. CT) and can be accessed at http://www.hpinc.com under Investors. If you are unable to participate during the live webcast, the call will be archived on H&Ps website indicated above.
(more)
Page 3
News Release
July 29, 2011
This release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and such statements are based on current expectations and assumptions that are subject to risks and uncertainties. All statements other than statements of historical facts included in this release, including, without limitation, statements regarding the registrants future financial position, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward-looking statements. For information regarding risks and uncertainties associated with the Companys business, please refer to the Risk Factors and Managements Discussion & Analysis of Results of Operations and Financial Condition sections of the Companys SEC filings, including but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. As a result of these factors, Helmerich & Payne, Inc.s actual results may differ materially from those indicated or implied by such forward-looking statements. We undertake no duty to update or revise our forward-looking statements based on changes in internal estimates, expectations or otherwise, except as required by law.
*FlexRig® is a registered trademark of Helmerich & Payne, Inc.
Investor Relations Contact:
Mike Drickamer
(918) 588-5190
(more)
News Release
July 29, 2011
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
|
Three Months Ended |
|
Nine Months Ended |
| |||||||||||
|
|
March 31 |
|
June 30 |
|
June 30 |
| |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
2011 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating Revenues: |
|
|
|
|
|
|
|
|
|
|
| |||||
Drilling U.S. Land |
|
$ |
495,459 |
|
$ |
539,372 |
|
$ |
366,989 |
|
$ |
1,511,649 |
|
$ |
976,497 |
|
Drilling Offshore |
|
50,586 |
|
54,569 |
|
53,131 |
|
150,022 |
|
153,186 |
| |||||
Drilling International Land |
|
54,684 |
|
46,051 |
|
60,045 |
|
169,689 |
|
177,377 |
| |||||
Other |
|
3,677 |
|
4,103 |
|
3,219 |
|
11,783 |
|
9,145 |
| |||||
|
|
604,406 |
|
644,095 |
|
483,384 |
|
1,843,143 |
|
1,316,205 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
| |||||
Operating costs, excluding depreciation |
|
340,039 |
|
365,586 |
|
285,583 |
|
1,035,671 |
|
742,761 |
| |||||
Depreciation |
|
76,161 |
|
79,109 |
|
65,208 |
|
228,450 |
|
189,418 |
| |||||
General and administrative |
|
24,406 |
|
24,071 |
|
20,114 |
|
68,366 |
|
61,296 |
| |||||
Research and development |
|
3,640 |
|
4,399 |
|
3,254 |
|
11,509 |
|
8,411 |
| |||||
Income from asset sales |
|
(4,105 |
) |
(3,488 |
) |
(2,249 |
) |
(10,262 |
) |
(4,245 |
) | |||||
|
|
440,141 |
|
469,677 |
|
371,910 |
|
1,333,734 |
|
997,641 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating income |
|
164,265 |
|
174,418 |
|
111,474 |
|
509,409 |
|
318,564 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest and dividend income |
|
356 |
|
903 |
|
940 |
|
1,573 |
|
1,536 |
| |||||
Interest expense |
|
(5,513 |
) |
(3,221 |
) |
(3,961 |
) |
(13,185 |
) |
(12,693 |
) | |||||
Gain on sale of investment securities |
|
|
|
913 |
|
|
|
913 |
|
|
| |||||
Other |
|
232 |
|
(190 |
) |
215 |
|
208 |
|
253 |
| |||||
|
|
(4,925 |
) |
(1,595 |
) |
(2,806 |
) |
(10,491 |
) |
(10,904 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income from continuing operations before income taxes |
|
159,340 |
|
172,823 |
|
108,668 |
|
498,918 |
|
307,660 |
| |||||
Income tax provision |
|
60,379 |
|
62,995 |
|
43,785 |
|
185,764 |
|
104,870 |
| |||||
Income from continuing operations |
|
98,961 |
|
109,828 |
|
64,883 |
|
313,154 |
|
202,790 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Loss from discontinued operations, before income taxes |
|
(176 |
) |
(2 |
) |
(101,548 |
) |
(393 |
) |
(127,160 |
) | |||||
Income tax provision |
|
(5 |
) |
|
|
50 |
|
(5 |
) |
2,363 |
| |||||
Loss from discontinued operations |
|
(171 |
) |
(2 |
) |
(101,598 |
) |
(388 |
) |
(129,523 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
NET INCOME (LOSS) |
|
$ |
98,790 |
|
$ |
109,826 |
|
$ |
(36,715 |
) |
$ |
312,766 |
|
$ |
73,267 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Basic earnings per common share: |
|
|
|
|
|
|
|
|
|
|
| |||||
Income from continuing operations |
|
$ |
0.92 |
|
$ |
1.02 |
|
$ |
0.61 |
|
$ |
2.93 |
|
$ |
1.92 |
|
Loss from discontinued operations |
|
$ |
|
|
$ |
|
|
$ |
(0.96 |
) |
$ |
|
|
$ |
(1.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income (loss) |
|
$ |
0.92 |
|
$ |
1.02 |
|
$ |
(0.35 |
) |
$ |
2.93 |
|
$ |
0.69 |
|
(more)
News Release
July 29, 2011
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
|
Three Months Ended |
|
Nine Months Ended |
| |||||||||||
|
|
March 31 |
|
June 30 |
|
June 30 |
| |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
2011 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Diluted earnings per common share: |
|
|
|
|
|
|
|
|
|
|
| |||||
Income from continuing operations |
|
$ |
0.91 |
|
$ |
1.01 |
|
$ |
0.61 |
|
$ |
2.87 |
|
$ |
1.89 |
|
Loss from discontinued operations |
|
$ |
|
|
$ |
|
|
$ |
(0.95 |
) |
$ |
|
|
$ |
(1.21 |
) |
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income (loss) |
|
$ |
0.91 |
|
$ |
1.01 |
|
$ |
(0.34 |
) |
$ |
2.87 |
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
| |||||
Basic |
|
106,515 |
|
106,962 |
|
105,743 |
|
106,501 |
|
105,676 |
| |||||
Diluted |
|
108,595 |
|
108,784 |
|
107,444 |
|
108,550 |
|
107,400 |
|
(more)
News Release
July 29, 2011
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
CONSOLIDATED CONDENSED BALANCE SHEETS |
|
6/30/11 |
|
9/30/10 |
| ||
|
|
|
|
|
| ||
ASSETS |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
288,065 |
|
$ |
63,020 |
|
Other current assets |
|
586,913 |
|
579,514 |
| ||
Current assets of discontinued operations |
|
7,631 |
|
10,270 |
| ||
Total current assets |
|
882,609 |
|
652,804 |
| ||
Investments |
|
453,046 |
|
320,712 |
| ||
Net property, plant, and equipment |
|
3,553,743 |
|
3,275,020 |
| ||
Other assets |
|
21,638 |
|
16,834 |
| ||
TOTAL ASSETS |
|
$ |
4,911,036 |
|
$ |
4,265,370 |
|
|
|
|
|
|
| ||
LIABILITIES AND SHAREHOLDERS EQUITY |
|
|
|
|
| ||
Current liabilities |
|
$ |
256,739 |
|
$ |
224,646 |
|
Current liabilities of discontinued operations |
|
5,170 |
|
7,992 |
| ||
Total current liabilities |
|
261,909 |
|
232,638 |
| ||
Non-current liabilities |
|
1,076,428 |
|
862,989 |
| ||
Non-current liabilities of discontinued operations |
|
2,461 |
|
2,278 |
| ||
Long-term notes payable |
|
350,000 |
|
360,000 |
| ||
Total shareholders equity |
|
3,220,238 |
|
2,807,465 |
| ||
|
|
|
|
|
| ||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
|
$ |
4,911,036 |
|
$ |
4,265,370 |
|
(more)
News Release
July 29, 2011
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
|
|
Nine Months Ended |
| ||||
|
|
June 30 |
| ||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
|
2011 |
|
2010 |
| ||
|
|
|
|
|
| ||
OPERATING ACTIVITIES: |
|
|
|
|
| ||
Net income |
|
$ |
312,766 |
|
$ |
73,267 |
|
Adjustment for loss from discontinued operations |
|
388 |
|
129,523 |
| ||
Income from continuing operations |
|
313,154 |
|
202,790 |
| ||
Depreciation |
|
228,450 |
|
189,418 |
| ||
Changes in assets and liabilities |
|
157,282 |
|
(66,376 |
) | ||
Gain on sale of assets and investment securities |
|
(11,175 |
) |
(4,245 |
) | ||
Other |
|
9,120 |
|
12,957 |
| ||
Net cash provided by operating activities from continuing operations |
|
696,831 |
|
334,544 |
| ||
Net cash used in operating activities from discontinued operations |
|
(388 |
) |
(1,507 |
) | ||
Net cash provided by operating activities |
|
696,443 |
|
333,037 |
| ||
|
|
|
|
|
| ||
INVESTING ACTIVITIES: |
|
|
|
|
| ||
Capital expenditures |
|
(493,776 |
) |
(220,200 |
) | ||
Proceeds from sale of assets and investments |
|
25,670 |
|
18,813 |
| ||
Purchase of short-term investments |
|
|
|
(16 |
) | ||
Acquisition of TerraVici Drilling Solutions |
|
(4,000 |
) |
|
| ||
Net cash used in investing activities from continuing operations |
|
(472,106 |
) |
(201,403 |
) | ||
Net cash used in investing activities from discontinued operations |
|
|
|
(55 |
) | ||
Net cash used in investing activities |
|
(472,106 |
) |
(201,458 |
) | ||
|
|
|
|
|
| ||
FINANCING ACTIVITIES: |
|
|
|
|
| ||
Dividends paid |
|
(19,222 |
) |
(15,891 |
) | ||
Increase (decrease) in bank overdraft |
|
4,844 |
|
(2,038 |
) | ||
Exercise of stock options |
|
13,734 |
|
(391 |
) | ||
Net proceeds from (payments for) short-term and long-term debt |
|
(10,000 |
) |
(135,000 |
) | ||
Excess tax benefit from stock-based compensation |
|
11,352 |
|
3,316 |
| ||
Net cash provided by (used in) financing activities |
|
708 |
|
(150,004 |
) | ||
|
|
|
|
|
| ||
Net increase (decrease) in cash and cash equivalents |
|
225,045 |
|
(18,425 |
) | ||
Cash and cash equivalents, beginning of period |
|
63,020 |
|
96,142 |
| ||
Cash and cash equivalents, end of period |
|
$ |
288,065 |
|
$ |
77,717 |
|
(more)
News Release
July 29, 2011
|
|
Three Months Ended |
|
Nine Months Ended |
| |||||||||||
|
|
March 31 |
|
June 30 |
|
June 30 |
| |||||||||
SEGMENT REPORTING |
|
2011 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |||||
|
|
(in thousands, except days and per day amounts) |
| |||||||||||||
U.S. LAND OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
Revenues |
|
$ |
495,459 |
|
$ |
539,372 |
|
$ |
366,989 |
|
$ |
1,511,649 |
|
$ |
976,497 |
|
Direct operating expenses |
|
260,834 |
|
289,311 |
|
206,707 |
|
802,383 |
|
521,486 |
| |||||
General and administrative expense |
|
6,388 |
|
6,330 |
|
5,458 |
|
18,573 |
|
18,193 |
| |||||
Depreciation |
|
63,948 |
|
66,899 |
|
51,686 |
|
191,211 |
|
151,434 |
| |||||
Segment operating income |
|
$ |
164,289 |
|
$ |
176,832 |
|
$ |
103,138 |
|
$ |
499,482 |
|
$ |
285,384 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Revenue days |
|
17,797 |
|
18,912 |
|
14,374 |
|
53,958 |
|
38,748 |
| |||||
Average rig revenue per day |
|
$ |
25,640 |
|
$ |
25,970 |
|
$ |
23,690 |
|
$ |
25,536 |
|
$ |
23,708 |
|
Average rig expense per day |
|
$ |
12,457 |
|
$ |
12,748 |
|
$ |
12,539 |
|
$ |
12,391 |
|
$ |
11,965 |
|
Average rig margin per day |
|
$ |
13,183 |
|
$ |
13,222 |
|
$ |
11,151 |
|
$ |
13,145 |
|
$ |
11,743 |
|
Rig Utilization |
|
85 |
% |
87 |
% |
76 |
% |
85 |
% |
69 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
OFFSHORE OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
Revenues |
|
$ |
50,586 |
|
$ |
54,569 |
|
$ |
53,131 |
|
$ |
150,022 |
|
$ |
153,186 |
|
Direct operating expenses |
|
33,936 |
|
36,664 |
|
37,382 |
|
101,527 |
|
99,654 |
| |||||
General and administrative expense |
|
1,553 |
|
1,532 |
|
1,329 |
|
4,495 |
|
4,437 |
| |||||
Depreciation |
|
3,621 |
|
3,429 |
|
3,189 |
|
10,580 |
|
9,133 |
| |||||
Segment operating income |
|
$ |
11,476 |
|
$ |
12,944 |
|
$ |
11,231 |
|
$ |
33,420 |
|
$ |
39,962 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Revenue days |
|
618 |
|
638 |
|
638 |
|
1,843 |
|
1,998 |
| |||||
Average rig revenue per day |
|
$ |
52,507 |
|
$ |
54,417 |
|
$ |
46,138 |
|
$ |
50,889 |
|
$ |
49,218 |
|
Average rig expense per day |
|
$ |
28,760 |
|
$ |
28,597 |
|
$ |
25,356 |
|
$ |
28,234 |
|
$ |
26,240 |
|
Average rig margin per day |
|
$ |
23,747 |
|
$ |
25,820 |
|
$ |
20,782 |
|
$ |
22,655 |
|
$ |
22,978 |
|
Rig utilization |
|
76 |
% |
78 |
% |
78 |
% |
75 |
% |
81 |
% |
(more)
News Release
July 29, 2011
|
|
Three Months Ended |
|
Nine Months Ended |
| |||||||||||
|
|
March 31 |
|
June 30 |
|
June 30 |
| |||||||||
SEGMENT REPORTING |
|
2011 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |||||
|
|
(in thousands, except days and per day amounts) |
| |||||||||||||
INTERNATIONAL LAND OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
Revenues |
|
$ |
54,684 |
|
$ |
46,051 |
|
$ |
60,045 |
|
$ |
169,689 |
|
$ |
177,377 |
|
Direct operating expenses |
|
44,793 |
|
39,131 |
|
41,113 |
|
130,459 |
|
120,374 |
| |||||
General and administrative expense |
|
940 |
|
825 |
|
771 |
|
2,633 |
|
1,978 |
| |||||
Depreciation |
|
6,508 |
|
6,719 |
|
8,268 |
|
20,411 |
|
22,239 |
| |||||
Segment operating income (loss) |
|
$ |
2,443 |
|
$ |
(624 |
) |
$ |
9,893 |
|
$ |
16,186 |
|
$ |
32,786 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Revenue days |
|
1,421 |
|
1,437 |
|
1,881 |
|
4,781 |
|
5,278 |
| |||||
Average rig revenue per day |
|
$ |
33,043 |
|
$ |
29,201 |
|
$ |
30,669 |
|
$ |
32,188 |
|
$ |
32,173 |
|
Average rig expense per day |
|
$ |
25,937 |
|
$ |
23,848 |
|
$ |
20,477 |
|
$ |
23,791 |
|
$ |
21,337 |
|
Average rig margin per day |
|
$ |
7,106 |
|
$ |
5,353 |
|
$ |
10,192 |
|
$ |
8,397 |
|
$ |
10,836 |
|
Rig utilization |
|
64 |
% |
65 |
% |
76 |
% |
69 |
% |
68 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating statistics exclude the effects of offshore platform management contracts, gains and losses from translation of foreign currency transactions, 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: | ||||||||||||||||
| ||||||||||||||||
U.S. Land Operations |
|
$ |
39,143 |
|
$ |
48,236 |
|
$ |
26,474 |
|
$ |
133,798 |
|
$ |
57,847 |
|
Offshore Operations |
|
$ |
8,131 |
|
$ |
12,817 |
|
$ |
13,771 |
|
$ |
28,231 |
|
$ |
26,383 |
|
International Land Operations |
|
$ |
7,730 |
|
$ |
4,089 |
|
$ |
2,357 |
|
$ |
15,798 |
|
$ |
7,569 |
|
(more)
News Release
July 29, 2011
Segment operating income for all segments is a non-GAAP financial measure of the Companys performance, as it excludes general and administrative expenses, corporate depreciation, income from asset sales and other corporate income and expense. The Company considers segment operating income to be an important supplemental measure of operating performance for presenting trends in the Companys core businesses. This measure is used by the Company to facilitate period-to-period comparisons in operating performance of the Companys reportable segments in the aggregate by eliminating items that affect comparability between periods. The Company believes that segment operating income is useful to investors because it provides a means to evaluate the operating performance of the segments and the Company on an ongoing basis using criteria that are used by our internal decision makers. Additionally, it highlights operating trends and aids analytical comparisons. However, segment operating income has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect the Companys operating performance in future periods.
The following table reconciles operating income per the information above to income from continuing operations before income taxes as reported on the Consolidated Statements of Operations (in thousands).
|
|
Three Months Ended |
|
Nine Months Ended |
| |||||||||||
|
|
March 31 |
|
June 30 |
|
June 30 |
| |||||||||
|
|
2011 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |||||
Operating income |
|
|
|
|
|
|
|
|
|
|
| |||||
U.S. Land |
|
$ |
164,289 |
|
$ |
176,832 |
|
$ |
103,138 |
|
$ |
499,482 |
|
$ |
285,384 |
|
Offshore |
|
11,476 |
|
12,944 |
|
11,231 |
|
33,420 |
|
39,962 |
| |||||
International Land |
|
2,443 |
|
(624 |
) |
9,893 |
|
16,186 |
|
32,786 |
| |||||
Other |
|
(1,815 |
) |
(2,078 |
) |
(1,803 |
) |
(5,044 |
) |
(5,020 |
) | |||||
Segment operating income |
|
$ |
176,393 |
|
$ |
187,074 |
|
$ |
122,459 |
|
$ |
544,044 |
|
$ |
353,112 |
|
Corporate general and administrative |
|
(15,525 |
) |
(15,384 |
) |
(12,556 |
) |
(42,665 |
) |
(36,688 |
) | |||||
Other depreciation |
|
(1,349 |
) |
(1,423 |
) |
(1,295 |
) |
(4,153 |
) |
(3,966 |
) | |||||
Inter-segment elimination |
|
641 |
|
663 |
|
617 |
|
1,921 |
|
1,861 |
| |||||
Income from asset sales |
|
4,105 |
|
3,488 |
|
2,249 |
|
10,262 |
|
4,245 |
| |||||
Operating income |
|
$ |
164,265 |
|
$ |
174,418 |
|
$ |
111,474 |
|
$ |
509,409 |
|
$ |
318,564 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest and dividend income |
|
356 |
|
903 |
|
940 |
|
1,573 |
|
1,536 |
| |||||
Interest expense |
|
(5,513 |
) |
(3,221 |
) |
(3,961 |
) |
(13,185 |
) |
(12,693 |
) | |||||
Gain on sale of investment securities |
|
|
|
913 |
|
|
|
913 |
|
|
| |||||
Other |
|
232 |
|
(190 |
) |
215 |
|
208 |
|
253 |
| |||||
Total other income (expense) |
|
(4,925 |
) |
(1,595 |
) |
(2,806 |
) |
(10,491 |
) |
(10,904 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income from continuing operations before income taxes |
|
$ |
159,340 |
|
$ |
172,823 |
|
$ |
108,668 |
|
$ |
498,918 |
|
$ |
307,660 |
|
# # #