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: April 26, 2012
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 April 26, 2012, Helmerich & Payne, Inc. (Registrant) issued a press release announcing its financial results for its second quarter ended March 31, 2012. 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 |
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|
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99 |
|
Helmerich & Payne, Inc. earnings press release dated April 26, 2012 |
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 |
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Executive Vice President |
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|
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DATE: April 26, 2012 |
EXHIBIT INDEX
Exhibit No. |
|
Description |
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|
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99 |
|
Helmerich & Payne, Inc. earnings press release dated April 26, 2012 |
Exhibit 99
|
NEWS RELEASE |
HELMERICH & PAYNE, INC. / 1437 SOUTH BOULDER AVENUE / TULSA, OKLAHOMA
April 26, 2012
HELMERICH & PAYNE, INC. ANNOUNCES SECOND QUARTER EARNINGS
Helmerich & Payne, Inc. (NYSE: HP) reported income from continuing operations of $129,763,000 ($1.18 per diluted share) from operating revenues of $769,982,000 for its second fiscal quarter ended March 31, 2012, compared to income from continuing operations of $98,961,000 ($0.91 per diluted share) from operating revenues of $604,406,000 during last years second fiscal quarter ended March 31, 2011. Included in this years and last years second fiscal quarter income from continuing operations were $0.05 and $0.02 per share, respectively, of after-tax gains related to the sale of used drilling equipment. Net income for the second fiscal quarter of 2012 was $129,719,000 ($1.18 per diluted share), compared to net income of $98,790,000 ($0.91 per diluted share) during last years second fiscal quarter.
For the six months ended March 31, 2012, the Company reported income from continuing operations of $274,060,000 ($2.51 per diluted share) from operating revenues of $1,502,570,000 compared with income from continuing operations of $203,326,000 ($1.87 per diluted share) from operating revenues of $1,199,048,000 during the six months ended March 31, 2011. Included in income from continuing operations for the first six months of fiscal 2012 and 2011 were approximately $0.07 and $0.04 per share, respectively, of gains from the sale of used drilling equipment. Net income for the first six months of fiscal 2012 was $274,005,000 ($2.51 per diluted share), compared to net income of $202,940,000 ($1.87 per diluted share) during the first six months of fiscal 2011.
Segment operating income for U.S. land operations was $209,959,000 for the second fiscal quarter of 2012, compared with $164,289,000 for last years second fiscal quarter and $224,706,000 for this years first fiscal quarter. The sequential decline in segment operating income was mainly attributable to an increase in operating expenses, even though the segments rig activity level and average rig revenue per day continued to improve during the second fiscal quarter of 2012. Quarterly revenue days for the segment sequentially increased by approximately two percent to 21,444 revenue days during the second fiscal quarter of 2012. The corresponding average rig revenue per day also sequentially increased by $764 to $27,625 during the second fiscal quarter of 2012. Nonetheless, the increase in average rig revenue per day was more than offset by a $1,534 increase in average rig expense per day, generating a sequential decline of $770 in average rig margin per day, from $14,569 during this years first fiscal quarter to $13,799 during this years second fiscal quarter. Rig utilization for the Companys U.S. land segment was 91% for this years second fiscal quarter, compared with 85% for last years second fiscal quarter and 91% for this years first fiscal quarter. At March 31,
(over)
News Release
April 26, 2012
2012, the Companys U.S. land segment had 241 contracted rigs (including 159 under term contracts) and 25 idle rigs.
Chairman and CEO Hans Helmerich commented, The U.S. land market transition towards oil and liquids-rich-gas directed drilling continues, along with a clear trend towards more complex well designs and higher performance rig requirements. Our FlexRigs®*, combined with our premium service offering, are well positioned to make the transition. We are fortunate to have a customer roster with substantial multi-year drilling inventory that is capable of shifting targets and taking advantage of strong oil prices. These customers are also continuing to strive for added drilling efficiencies and allowed us to add nine previously announced new builds to our order book during the quarter. As we enter the second half of fiscal 2012, we continue to deliver four new rigs per month on time and on budget.
Segment operating income for the Companys offshore operations was $9,818,000 for the second fiscal quarter of 2012, compared with $11,476,000 for last years second fiscal quarter and $12,204,000 for this years first fiscal quarter. The sequential decline in segment operating income was primarily a function of a reduced level of activity and a lower average rig margin per day. The number of revenue days for this years second fiscal quarter sequentially declined by approximately ten percent, and the average rig margin per day for this years second fiscal quarter was $20,561 as compared to $22,171 for this years first fiscal quarter.
The Companys international land operations segment reported a loss of $974,000 for this years second fiscal quarter, compared with operating income of $2,443,000 for last years second fiscal quarter and operating income of $7,939,000 for this years first fiscal quarter. The sequential decline in segment operating income was mostly attributable to increased operating expenses during this years second fiscal quarter. As a result, average rig margin per day decreased to $4,884 in the second fiscal quarter of 2012 from $9,015 in the first fiscal quarter of 2012. Also as compared to this years first fiscal quarter, the number of revenue days for the second fiscal quarter increased by approximately two percent to 1,761.
Helmerich & Payne, Inc. is primarily a contract drilling company. As of April 26, 2012, the Companys existing fleet included 270 land rigs in the U.S., 26 international land rigs and nine offshore platform rigs. In addition, the Company is scheduled to complete another 34 new H&P-designed and operated FlexRigs under long-term contracts with customers. Upon completion of these commitments, the Companys global fleet is expected to have a total of 330 land rigs, including 293 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 for at least one year.
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
(more)
News Release
April 26, 2012
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.
Contact:
Investor Relations
investor.relations@hpinc.com
(918) 588-5207
(more)
News Release
April 26, 2012
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
|
Three Months Ended |
|
Six Months Ended |
| |||||||||||
CONSOLIDATED STATEMENTS OF |
|
December 31 |
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March 31 |
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March 31 |
| |||||||||
INCOME |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating Revenues: |
|
|
|
|
|
|
|
|
|
|
| |||||
Drilling U.S. Land |
|
$ |
617,779 |
|
$ |
658,804 |
|
$ |
495,459 |
|
$ |
1,276,583 |
|
$ |
972,277 |
|
Drilling Offshore |
|
50,792 |
|
43,421 |
|
50,586 |
|
94,213 |
|
95,453 |
| |||||
Drilling International Land |
|
60,735 |
|
64,088 |
|
54,684 |
|
124,823 |
|
123,638 |
| |||||
Other |
|
3,282 |
|
3,669 |
|
3,677 |
|
6,951 |
|
7,680 |
| |||||
|
|
732,588 |
|
769,982 |
|
604,406 |
|
1,502,570 |
|
1,199,048 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
| |||||
Operating costs, excluding depreciation |
|
391,032 |
|
448,208 |
|
340,039 |
|
839,240 |
|
670,085 |
| |||||
Depreciation |
|
86,288 |
|
90,934 |
|
76,161 |
|
177,222 |
|
149,341 |
| |||||
General and administrative |
|
26,163 |
|
27,805 |
|
24,406 |
|
53,968 |
|
44,295 |
| |||||
Research and development |
|
3,249 |
|
3,830 |
|
3,640 |
|
7,079 |
|
7,110 |
| |||||
Income from asset sales |
|
(4,683 |
) |
(7,820 |
) |
(4,105 |
) |
(12,503 |
) |
(6,774 |
) | |||||
|
|
502,049 |
|
562,957 |
|
440,141 |
|
1,065,006 |
|
864,057 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating income |
|
230,539 |
|
207,025 |
|
164,265 |
|
437,564 |
|
334,991 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest and dividend income |
|
336 |
|
356 |
|
356 |
|
692 |
|
670 |
| |||||
Interest expense |
|
(2,461 |
) |
(2,421 |
) |
(5,513 |
) |
(4,882 |
) |
(9,964 |
) | |||||
Other |
|
21 |
|
(42 |
) |
232 |
|
(21 |
) |
398 |
| |||||
|
|
(2,104 |
) |
(2,107 |
) |
(4,925 |
) |
(4,211 |
) |
(8,896 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income from continuing operations before income taxes |
|
228,435 |
|
204,918 |
|
159,340 |
|
433,353 |
|
326,095 |
| |||||
Income tax provision |
|
84,138 |
|
75,155 |
|
60,379 |
|
159,293 |
|
122,769 |
| |||||
Income from continuing operations |
|
144,297 |
|
129,763 |
|
98,961 |
|
274,060 |
|
203,326 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Loss from discontinued operations, before income taxes |
|
(11 |
) |
(44 |
) |
(176 |
) |
(55 |
) |
(391 |
) | |||||
Income tax provision |
|
|
|
|
|
(5 |
) |
|
|
(5 |
) | |||||
Loss from discontinued operations |
|
(11 |
) |
(44 |
) |
(171 |
) |
(55 |
) |
(386 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
NET INCOME |
|
$ |
144,286 |
|
$ |
129,719 |
|
$ |
98,790 |
|
$ |
274,005 |
|
$ |
202,940 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Basic earnings per common share: |
|
|
|
|
|
|
|
|
|
|
| |||||
Income from continuing operations |
|
$ |
1.34 |
|
$ |
1.20 |
|
$ |
0.92 |
|
$ |
2.54 |
|
$ |
1.90 |
|
Loss from discontinued operations |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income |
|
$ |
1.34 |
|
$ |
1.20 |
|
$ |
0.92 |
|
$ |
2.54 |
|
$ |
1.90 |
|
(more)
News Release
April 26, 2012
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
|
Three Months Ended |
|
Six Months Ended |
| |||||||||||
CONSOLIDATED STATEMENTS OF |
|
December 31 |
|
March 31 |
|
March 31 |
| |||||||||
INCOME |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Diluted earnings per common share: |
|
|
|
|
|
|
|
|
|
|
| |||||
Income from continuing operations |
|
$ |
1.32 |
|
$ |
1.18 |
|
$ |
0.91 |
|
$ |
2.51 |
|
$ |
1.87 |
|
Loss from discontinued operations |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income |
|
$ |
1.32 |
|
$ |
1.18 |
|
$ |
0.91 |
|
$ |
2.51 |
|
$ |
1.87 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
| |||||
Basic |
|
107,186 |
|
107,385 |
|
106,515 |
|
107,285 |
|
106,270 |
| |||||
Diluted |
|
108,788 |
|
109,042 |
|
108,595 |
|
108,925 |
|
108,375 |
|
(more)
News Release
April 26, 2012
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
|
|
March 31 |
|
September 30 |
| ||
CONSOLIDATED CONDENSED BALANCE SHEETS |
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
ASSETS |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
324,385 |
|
$ |
364,246 |
|
Other current assets |
|
667,413 |
|
584,538 |
| ||
Current assets of discontinued operations |
|
7,562 |
|
7,529 |
| ||
Total current assets |
|
999,360 |
|
956,313 |
| ||
Investments |
|
444,365 |
|
347,924 |
| ||
Net property, plant, and equipment |
|
3,975,239 |
|
3,677,070 |
| ||
Other assets |
|
22,108 |
|
22,584 |
| ||
TOTAL ASSETS |
|
$ |
5,441,072 |
|
$ |
5,003,891 |
|
|
|
|
|
|
| ||
LIABILITIES AND SHAREHOLDERS EQUITY |
|
|
|
|
| ||
Current liabilities |
|
$ |
380,526 |
|
$ |
411,750 |
|
Current liabilities of discontinued operations |
|
5,198 |
|
4,979 |
| ||
Total current liabilities |
|
385,724 |
|
416,729 |
| ||
Non-current liabilities |
|
1,215,888 |
|
1,079,565 |
| ||
Non-current liabilities of discontinued operations |
|
2,364 |
|
2,550 |
| ||
Long-term notes payable |
|
235,000 |
|
235,000 |
| ||
Total shareholders equity |
|
3,602,096 |
|
3,270,047 |
| ||
|
|
|
|
|
| ||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
|
$ |
5,441,072 |
|
$ |
5,003,891 |
|
(more)
News Release
April 26, 2012
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
|
|
Six Months Ended |
| ||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
OPERATING ACTIVITIES: |
|
|
|
|
| ||
Net income |
|
$ |
274,005 |
|
$ |
202,940 |
|
Adjustment for loss from discontinued operations |
|
55 |
|
386 |
| ||
Income from continuing operations |
|
274,060 |
|
203,326 |
| ||
Depreciation |
|
177,222 |
|
149,341 |
| ||
Changes in assets and liabilities |
|
(8,664 |
) |
100,094 |
| ||
Gain on sale of assets |
|
(12,503 |
) |
(6,774 |
) | ||
Other |
|
8,762 |
|
6,146 |
| ||
Net cash provided by operating activities from continuing operations |
|
438,877 |
|
452,133 |
| ||
Net cash used in operating activities from discontinued operations |
|
(55 |
) |
(386 |
) | ||
Net cash provided by operating activities |
|
438,822 |
|
451,747 |
| ||
|
|
|
|
|
| ||
INVESTING ACTIVITIES: |
|
|
|
|
| ||
Capital expenditures |
|
(492,701 |
) |
(286,251 |
) | ||
Proceeds from sale of assets |
|
25,543 |
|
17,022 |
| ||
Acquisition of TerraVici Drilling Solutions |
|
|
|
(4,000 |
) | ||
Net cash used in investing activities |
|
(467,158 |
) |
(273,229 |
) | ||
|
|
|
|
|
| ||
FINANCING ACTIVITIES: |
|
|
|
|
| ||
Dividends paid |
|
(15,070 |
) |
(12,784 |
) | ||
Exercise of stock options |
|
1,895 |
|
11,115 |
| ||
Tax withholdings related to net share settlements of restricted stock |
|
(1,514 |
) |
|
| ||
Net proceeds from (payments for) short-term and long-term debt |
|
|
|
(10,000 |
) | ||
Excess tax benefit from stock-based compensation |
|
3,164 |
|
10,816 |
| ||
Net cash used in financing activities |
|
(11,525 |
) |
(853 |
) | ||
|
|
|
|
|
| ||
Net increase (decrease) in cash and cash equivalents |
|
(39,861 |
) |
177,665 |
| ||
Cash and cash equivalents, beginning of period |
|
364,246 |
|
63,020 |
| ||
Cash and cash equivalents, end of period |
|
$ |
324,385 |
|
$ |
240,685 |
|
(more)
News Release
April 26, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
| |||||||||||
|
|
December 31 |
|
March 31 |
|
March 31 |
| |||||||||
SEGMENT REPORTING |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| |||||
|
|
(in thousands, except days and per day amounts) |
| |||||||||||||
U.S. LAND OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
Revenues |
|
$ |
617,779 |
|
$ |
658,804 |
|
$ |
495,459 |
|
$ |
1,276,583 |
|
$ |
972,277 |
|
Direct operating expenses |
|
312,306 |
|
362,898 |
|
260,834 |
|
675,204 |
|
513,072 |
| |||||
General and administrative expense |
|
7,298 |
|
8,195 |
|
6,388 |
|
15,493 |
|
12,243 |
| |||||
Depreciation |
|
73,469 |
|
77,752 |
|
63,948 |
|
151,221 |
|
124,312 |
| |||||
Segment operating income |
|
$ |
224,706 |
|
$ |
209,959 |
|
$ |
164,289 |
|
$ |
434,665 |
|
$ |
322,650 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Revenue days |
|
20,968 |
|
21,444 |
|
17,797 |
|
42,412 |
|
35,046 |
| |||||
Average rig revenue per day |
|
$ |
26,861 |
|
$ |
27,625 |
|
$ |
25,640 |
|
$ |
27,247 |
|
$ |
25,301 |
|
Average rig expense per day |
|
$ |
12,292 |
|
$ |
13,826 |
|
$ |
12,457 |
|
$ |
13,068 |
|
$ |
12,198 |
|
Average rig margin per day |
|
$ |
14,569 |
|
$ |
13,799 |
|
$ |
13,183 |
|
$ |
14,179 |
|
$ |
13,103 |
|
Rig utilization |
|
91 |
% |
91 |
% |
85 |
% |
91 |
% |
84 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
OFFSHORE OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
Revenues |
|
$ |
50,792 |
|
$ |
43,421 |
|
$ |
50,586 |
|
$ |
94,213 |
|
$ |
95,453 |
|
Direct operating expenses |
|
33,201 |
|
28,473 |
|
33,936 |
|
61,674 |
|
64,863 |
| |||||
General and administrative expense |
|
1,732 |
|
1,955 |
|
1,553 |
|
3,687 |
|
2,963 |
| |||||
Depreciation |
|
3,655 |
|
3,175 |
|
3,621 |
|
6,830 |
|
7,151 |
| |||||
Segment operating income |
|
$ |
12,204 |
|
$ |
9,818 |
|
$ |
11,476 |
|
$ |
22,022 |
|
$ |
20,476 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Revenue days |
|
697 |
|
627 |
|
618 |
|
1,324 |
|
1,205 |
| |||||
Average rig revenue per day |
|
$ |
53,644 |
|
$ |
49,514 |
|
$ |
52,507 |
|
$ |
51,688 |
|
$ |
49,021 |
|
Average rig expense per day |
|
$ |
31,473 |
|
$ |
28,953 |
|
$ |
28,760 |
|
$ |
30,280 |
|
$ |
28,042 |
|
Average rig margin per day |
|
$ |
22,171 |
|
$ |
20,561 |
|
$ |
23,747 |
|
$ |
21,408 |
|
$ |
20,979 |
|
Rig utilization |
|
84 |
% |
74 |
% |
76 |
% |
79 |
% |
74 |
% |
(more)
News Release
April 26, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
| |||||||||||
|
|
December 31 |
|
March 31 |
|
March 31 |
| |||||||||
SEGMENT REPORTING |
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| |||||
|
|
(in thousands, except days and per day amounts) |
| |||||||||||||
INTERNATIONAL LAND OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
Revenues |
|
$ |
60,735 |
|
$ |
64,088 |
|
$ |
54,684 |
|
$ |
124,823 |
|
$ |
123,638 |
|
Direct operating expenses |
|
45,164 |
|
56,637 |
|
44,793 |
|
101,801 |
|
91,328 |
| |||||
General and administrative expense |
|
778 |
|
795 |
|
940 |
|
1,573 |
|
1,808 |
| |||||
Depreciation |
|
6,854 |
|
7,630 |
|
6,508 |
|
14,484 |
|
13,692 |
| |||||
Segment operating income (loss) |
|
$ |
7,939 |
|
$ |
(974 |
) |
$ |
2,443 |
|
$ |
6,965 |
|
$ |
16,810 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Revenue days |
|
1,729 |
|
1,761 |
|
1,421 |
|
3,490 |
|
3,344 |
| |||||
Average rig revenue per day |
|
$ |
31,072 |
|
$ |
31,401 |
|
$ |
33,043 |
|
$ |
31,238 |
|
$ |
33,472 |
|
Average rig expense per day |
|
$ |
22,057 |
|
$ |
26,517 |
|
$ |
25,937 |
|
$ |
24,307 |
|
$ |
23,767 |
|
Average rig margin per day |
|
$ |
9,015 |
|
$ |
4,884 |
|
$ |
7,106 |
|
$ |
6,931 |
|
$ |
9,705 |
|
Rig utilization |
|
78 |
% |
75 |
% |
64 |
% |
77 |
% |
71 |
% |
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 |
|
$ |
54,562 |
|
$ |
66,419 |
|
$ |
39,143 |
|
$ |
120,981 |
|
$ |
85,562 |
|
Offshore Operations |
|
$ |
5,798 |
|
$ |
4,267 |
|
$ |
8,131 |
|
$ |
10,065 |
|
$ |
15,414 |
|
International Land Operations |
|
$ |
7,012 |
|
$ |
8,791 |
|
$ |
7,730 |
|
$ |
15,803 |
|
$ |
11,709 |
|
(more)
News Release
April 26, 2012
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 Income (in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
| |||||||||||
|
|
December 31 |
|
March 31 |
|
March 31 |
| |||||||||
|
|
2011 |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| |||||
Operating income |
|
|
|
|
|
|
|
|
|
|
| |||||
U.S. Land |
|
$ |
224,706 |
|
$ |
209,959 |
|
$ |
164,289 |
|
$ |
434,665 |
|
$ |
322,650 |
|
Offshore |
|
12,204 |
|
9,818 |
|
11,476 |
|
22,022 |
|
20,476 |
| |||||
International Land |
|
7,939 |
|
(974 |
) |
2,443 |
|
6,965 |
|
16,810 |
| |||||
Other |
|
(1,788 |
) |
(1,833 |
) |
(1,815 |
) |
(3,621 |
) |
(2,966 |
) | |||||
Segment operating income |
|
$ |
243,061 |
|
$ |
216,970 |
|
$ |
176,393 |
|
$ |
460,031 |
|
$ |
356,970 |
|
Corporate general and administrative |
|
(16,355 |
) |
(16,860 |
) |
(15,525 |
) |
(33,215 |
) |
(27,281 |
) | |||||
Other depreciation |
|
(1,556 |
) |
(1,668 |
) |
(1,349 |
) |
(3,224 |
) |
(2,730 |
) | |||||
Inter-segment elimination |
|
706 |
|
763 |
|
641 |
|
1,469 |
|
1,258 |
| |||||
Income from asset sales |
|
4,683 |
|
7,820 |
|
4,105 |
|
12,503 |
|
6,774 |
| |||||
Operating income |
|
$ |
230,539 |
|
$ |
207,025 |
|
$ |
164,265 |
|
$ |
437,564 |
|
$ |
334,991 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest and dividend income |
|
336 |
|
356 |
|
356 |
|
692 |
|
670 |
| |||||
Interest expense |
|
(2,461 |
) |
(2,421 |
) |
(5,513 |
) |
(4,882 |
) |
(9,964 |
) | |||||
Other |
|
21 |
|
(42 |
) |
232 |
|
(21 |
) |
398 |
| |||||
Total other income (expense) |
|
(2,104 |
) |
(2,107 |
) |
(4,925 |
) |
(4,211 |
) |
(8,896 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income from continuing operations before income taxes |
|
$ |
228,435 |
|
$ |
204,918 |
|
$ |
159,340 |
|
$ |
433,353 |
|
$ |
326,095 |
|
# # #
2&DV*1'DRI