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: January 28, 2016
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 January 28, 2016, Helmerich & Payne, Inc. (Registrant) issued a press release announcing its financial results for its first quarter ended December 31, 2015. 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 January 28, 2016 |
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/ Jonathan M. Cinocca |
|
Jonathan M. Cinocca |
|
Corporate Secretary |
|
|
|
DATE: January 28, 2016 |
Exhibit 99
HELMERICH & PAYNE, INC. / 1437 SOUTH BOULDER AVENUE / TULSA, OKLAHOMA
January 28, 2016
HELMERICH & PAYNE, INC. ANNOUNCES FIRST QUARTER RESULTS
Helmerich & Payne, Inc. (NYSE: HP) reported net income of $16 million ($0.15 per diluted share) from operating revenues of $488 million for the first quarter of fiscal 2016, compared to net income of $204 million ($1.86 per diluted share) from operating revenues of $1.06 billion during the first quarter of fiscal 2015, and net loss of $28 million (negative $0.25 per diluted share) from operating revenues of $554 million during the fourth quarter of fiscal 2015. Included in net income per diluted share for both this years first fiscal quarter and last years first fiscal quarter are approximately $0.10 and $0.07, respectively, in after-tax income related to a combination of select items as described in a separate section of this press release. Included in net loss per diluted share for last years fourth fiscal quarter are approximately $0.29 in after-tax losses related to a combination of select items.
President and CEO John Lindsay commented, Our first fiscal quarter results were better than expected primarily as a result of significantly reduced daily rig expenses in our U.S. Land segment. Unfortunately, as very low oil and gas prices force our customers to further reduce their drilling budgets, the U.S. land industry rig count has now declined to levels not seen since 1999. Although the market isnt expected to improve in the second fiscal quarter, we will continue to work on cost-effective measures across the organization while strengthening our ability to add value for our customers through innovation and productivity enhancements.
Given our unparalleled experience designing, building, operating and maintaining AC drive land rigs, we have the distinct advantage of being able to continuously upgrade our already best-in-class rigs to meet the needs of more complex well designs. This continuous learning and improvement culture, along with our relentless focus on customer service, should allow us to further help our customers reduce their total cost per well.
With a very strong and liquid balance sheet, a firm backlog of term contracts and the flexibility to significantly reduce spending levels during a soft market, our approach to capital allocation will remain prudent and should allow us to effectively manage our business through this downturn and emerge from it with even greater competitive advantages.
(over)
News Release
January 28, 2016
The Company also announced today that starting October 1, 2015 and during the quarter ended December 31, 2015, the Company eliminated a legacy one-month lag period between its U.S. fiscal year and its foreign subsidiaries fiscal years. In the past and for financial reporting purposes, fiscal years for the Companys foreign operations ended on August 31 instead of September 30 to facilitate reporting of consolidated results. While the previous method is considered acceptable, the Company believes this voluntary change in accounting principle is preferable because it provides the most current level of information available. As required, the Company is applying the elimination of the one-month lag retrospectively to all periods presented herein. The corresponding net impact on the first quarter of fiscal 2015 was an increase in net income of less than $1 million. The net impact on the fourth quarter of fiscal 2015 was an increase in net loss of approximately $6 million, which was primarily attributable to long-term contract early termination compensation revenue that shifted to the third quarter of fiscal 2015.
Operating Segment Results
Segment operating income for the Companys U.S. land operations was $56 million for the first quarter of fiscal 2016, compared with $318 million for last years first fiscal quarter and $34 million for last years fourth fiscal quarter. As compared to the fourth quarter of fiscal 2015, the increase in segment operating income was primarily attributable to a higher rig margin per day average as well as the absence of non-cash abandonment charges during the first quarter of fiscal 2016. The number of quarterly revenue days decreased sequentially by 11.5% to 11,945 days. Excluding the impact of $2,482 and $2,417 per day corresponding to revenues from early contract terminations during last years fourth fiscal quarter and this years first fiscal quarter, respectively, the average rig revenue per day increased sequentially by $16 to $26,234, and the average rig margin per day increased sequentially by $949 to $13,344. The average rig expense per day decreased sequentially by $933 to $12,890. Rig utilization for the segment was 39% for this years first fiscal quarter, compared with 89% and 43% for last years first and fourth fiscal quarters, respectively. At December 31, 2015, the Companys U.S. land segment had approximately 131 contracted rigs generating revenue (including 101 under long-term contracts) and 214 idle rigs.
Segment operating income for the Companys offshore operations was $7.7 million for the first quarter of fiscal 2016, compared with $21.7 million for last years first fiscal quarter and $12.6 million for last years fourth fiscal quarter. The sequential decrease in operating income was mostly attributable to a decline in the average rig margin per day, which decreased from $13,296 to $7,920. Quarterly revenue days remained flat sequentially at 736 days during the first fiscal quarter.
The Companys international land operations reported a segment operating loss of $6.7 million for this years first fiscal quarter, compared with operating income of $10.6 million for last years first fiscal quarter and an operating loss of $47.2 million for last years fourth fiscal quarter. The sequential decrease in operating loss was mostly attributable to the absence of impairment and other non-cash charges during the first fiscal quarter which was somewhat tempered by a currency exchange loss of $8.5 million primarily due to the devaluation of the Argentine Peso in December 2015. The sequential decline in operating loss was also attributable to an increase in the average rig margin per day. Excluding the impact of $3,128 per day corresponding to charges related to an
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News Release
January 28, 2016
allowance for doubtful accounts during last years fourth fiscal quarter, the average rig margin per day increased sequentially from $8,129 to $11,811. The number of quarterly revenue days decreased sequentially by approximately 12% to 1,411 days.
Drilling Operations Outlook for the Second Quarter of Fiscal 2016
In the U.S. land segment, the Company expects revenue days (activity) to decrease by roughly 20% during the second fiscal quarter as compared to the first fiscal quarter of 2016. Excluding any impact from early termination revenue, the average rig revenue per day is expected to be roughly flat, as compared to the first quarter of fiscal 2016, and the corresponding average rig expense per day is expected to increase to roughly $13,600. As of today, the U.S. land segment has approximately 121 contracted rigs that are generating revenue (including 93 under term contracts) and 226 idle rigs.
In the offshore segment, the Company expects the average rig margin per day to be approximately $8,250 during the second fiscal quarter of 2016 and revenue days to decrease by approximately 5% to 10% as compared to the first quarter of fiscal 2016.
In the international land segment, the Company expects revenue days to decline by roughly 5% to 10% as compared to the first quarter of fiscal 2016. The average rig margin per day is expected to be roughly $7,500 during the second quarter of fiscal 2016.
Select Items Included in Net Income (or Loss) per Diluted Share
Included in net income per diluted share corresponding to the first quarter of fiscal 2016 are approximately $0.10 in after-tax income related to a combination of the following: $0.17 of after-tax gains from long-term contract early termination compensation from customers; $0.03 of after-tax gains related to the sale of used drilling equipment; $0.05 of after-tax losses related to a currency exchange loss; and a negative $0.05 impact on income tax expense primarily due to a fiscal 2015 adjustment to the Domestic Production Deduction that resulted from a U.S. tax law change in December 2015 extending bonus depreciation allowances that had expired December 31, 2014.
Included in net income per diluted share corresponding to the first quarter of fiscal 2015 are approximately $0.07 in after-tax income related to a combination of the following: $0.14 of after-tax gains from long-term contract early termination compensation from customers; $0.02 of after-tax gains related to the sale of used drilling equipment; and a negative $0.09 impact on income tax expense primarily due to a fiscal 2014 adjustment to the Domestic Production Deduction that resulted from a U.S. tax law change in December 2014 extending bonus depreciation allowances that had expired December 31, 2013.
Included in net loss per diluted share corresponding to the fourth quarter of fiscal 2015 are approximately $0.29 in after-tax losses related to a combination of the following: $0.20 of after-tax gains from long-term contract early termination compensation from customers; $0.02 of after-tax gains related to the sale of used drilling equipment; $0.03 of after-tax losses related to an allowance for doubtful accounts; $0.18 of after-tax losses from abandonment charges related to the decommissioning of certain (SCR) land rigs and other used drilling equipment; $0.23 of after-tax losses from impairment charges for
(more)
News Release
January 28, 2016
certain (SCR) land rigs; and a negative $0.07 impact on income tax expense due primarily to limitations on foreign income tax credits.
About Helmerich & Payne, Inc.
Helmerich & Payne, Inc. is primarily a contract drilling company. As of January 28, 2016, the Companys existing fleet includes 347 land rigs in the U.S., 38 international land rigs, and nine offshore platform rigs. In addition, the Company is scheduled to deliver another three new H&P-designed and operated FlexRigs®*, all under long-term contracts with customers. Upon completion of these commitments, the Companys global fleet is expected to have a total of 388 land rigs, including 373 AC drive FlexRigs.
Forward-Looking Statements
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, operations outlook, 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 and Analysis of Financial Condition and Results of Operations 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) 588-5190
(more)
News Release
January 28, 2016
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
|
Three Months Ended |
| |||||||
|
|
September 30 |
|
December 31 |
| |||||
CONSOLIDATED STATEMENTS OF |
|
2015 |
|
|
|
2014 |
| |||
OPERATIONS |
|
(As adjusted) |
|
2015 |
|
(As adjusted) |
| |||
|
|
|
|
|
|
|
| |||
Operating Revenues: |
|
|
|
|
|
|
| |||
Drilling U.S. Land |
|
$ |
420,393 |
|
$ |
369,805 |
|
$ |
890,047 |
|
Drilling Offshore |
|
52,280 |
|
41,880 |
|
69,887 |
| |||
Drilling International Land |
|
78,069 |
|
72,194 |
|
96,673 |
| |||
Other |
|
3,058 |
|
3,968 |
|
4,180 |
| |||
|
|
$ |
553,800 |
|
$ |
487,847 |
|
$ |
1,060,787 |
|
|
|
|
|
|
|
|
| |||
Operating costs and expenses: |
|
|
|
|
|
|
| |||
Operating costs, excluding depreciation |
|
326,274 |
|
276,644 |
|
559,463 |
| |||
Depreciation |
|
174,594 |
|
142,129 |
|
138,232 |
| |||
Asset Impairment Charge |
|
39,242 |
|
|
|
|
| |||
General and administrative |
|
37,728 |
|
32,074 |
|
32,736 |
| |||
Research and development |
|
3,760 |
|
2,919 |
|
4,158 |
| |||
Income from asset sales |
|
(3,015 |
) |
(4,589 |
) |
(4,173 |
) | |||
|
|
578,583 |
|
449,177 |
|
730,416 |
| |||
|
|
|
|
|
|
|
| |||
Operating income (loss) |
|
(24,783 |
) |
38,670 |
|
330,371 |
| |||
|
|
|
|
|
|
|
| |||
Other income (expense): |
|
|
|
|
|
|
| |||
Interest and dividend income |
|
1,393 |
|
733 |
|
295 |
| |||
Interest expense |
|
(5,697 |
) |
(4,524 |
) |
(590 |
) | |||
Other |
|
(989 |
) |
(261 |
) |
314 |
| |||
|
|
(5,293 |
) |
(4,052 |
) |
19 |
| |||
|
|
|
|
|
|
|
| |||
Income (loss) from continuing operations |
|
|
|
|
|
|
| |||
before income taxes |
|
(30,076 |
) |
34,618 |
|
330,390 |
| |||
Income tax provision |
|
(2,486 |
) |
18,720 |
|
126,767 |
| |||
Income (loss) from continuing operations |
|
(27,590 |
) |
15,898 |
|
203,623 |
| |||
|
|
|
|
|
|
|
| |||
Income (loss) from discontinued operations before income taxes |
|
(6 |
) |
104 |
|
(15 |
) | |||
Income tax provision |
|
|
|
|
|
|
| |||
Income (loss) from discontinued operations |
|
(6 |
) |
104 |
|
(15 |
) | |||
|
|
|
|
|
|
|
| |||
NET INCOME (LOSS) |
|
$ |
(27,596 |
) |
$ |
16,002 |
|
$ |
203,608 |
|
|
|
|
|
|
|
|
| |||
Basic earnings per common share: |
|
|
|
|
|
|
| |||
Income (loss) from continuing operations |
|
$ |
(0.25 |
) |
$ |
0.15 |
|
$ |
1.87 |
|
Income from discontinued operations |
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
|
|
|
|
|
| |||
Net income |
|
$ |
(0.25 |
) |
$ |
0.15 |
|
$ |
1.87 |
|
(more)
News Release
January 28, 2016
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
|
Three Months Ended |
| |||||||
|
|
September 30 |
|
December 31 |
| |||||
CONSOLIDATED STATEMENTS OF |
|
2015 |
|
|
|
2014 |
| |||
OPERATIONS |
|
(As adjusted) |
|
2015 |
|
(As adjusted) |
| |||
|
|
|
|
|
|
|
| |||
Diluted earnings per common share: |
|
|
|
|
|
|
| |||
Income (loss) from continuing operations |
|
$ |
(0.25 |
) |
$ |
0.15 |
|
$ |
1.86 |
|
Income from discontinued operations |
|
$ |
|
|
$ |
|
|
$ |
|
|
|
|
|
|
|
|
|
| |||
Net income |
|
$ |
(0.25 |
) |
$ |
0.15 |
|
$ |
1.86 |
|
|
|
|
|
|
|
|
| |||
Weighted average shares outstanding: |
|
|
|
|
|
|
| |||
Basic |
|
107,740 |
|
107,852 |
|
107,973 |
| |||
Diluted |
|
107,740 |
|
108,409 |
|
108,843 |
|
(more)
News Release
January 28, 2016
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
|
|
December 31 |
|
September 30 |
| ||
CONSOLIDATED CONDENSED BALANCE SHEETS |
|
2015 |
|
(As adjusted) |
| ||
|
|
|
|
|
| ||
ASSETS |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
848,230 |
|
$ |
729,384 |
|
Short term investments |
|
47,708 |
|
45,543 |
| ||
Other current assets |
|
572,289 |
|
656,170 |
| ||
Current assets of discontinued operations |
|
8,449 |
|
8,097 |
| ||
Total current assets |
|
1,476,676 |
|
1,439,194 |
| ||
Investments |
|
85,276 |
|
104,354 |
| ||
Net property, plant, and equipment |
|
5,530,817 |
|
5,563,170 |
| ||
Other assets |
|
37,505 |
|
40,524 |
| ||
TOTAL ASSETS |
|
$ |
7,130,274 |
|
$ |
7,147,242 |
|
|
|
|
|
|
| ||
LIABILITIES AND SHAREHOLDERS EQUITY |
|
|
|
|
| ||
Current liabilities |
|
$ |
405,480 |
|
$ |
344,820 |
|
Current liabilities of discontinued operations |
|
3,310 |
|
3,377 |
| ||
Total current liabilities |
|
408,790 |
|
348,197 |
| ||
Non-current liabilities |
|
1,393,384 |
|
1,406,036 |
| ||
Non-current liabilities of discontinued operations |
|
5,139 |
|
4,720 |
| ||
Long-term notes payable |
|
492,668 |
|
492,443 |
| ||
Total shareholders equity |
|
4,830,293 |
|
4,895,846 |
| ||
|
|
|
|
|
| ||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
|
$ |
7,130,274 |
|
$ |
7,147,242 |
|
(more)
News Release
January 28, 2016
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
|
|
Three Months Ended |
| ||||
|
|
December 31 |
| ||||
|
|
|
|
2014 |
| ||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
|
2015 |
|
(As adjusted) |
| ||
|
|
|
|
|
| ||
OPERATING ACTIVITIES: |
|
|
|
|
| ||
Net income |
|
$ |
16,002 |
|
$ |
203,608 |
|
Adjustment for (income) loss from discontinued operations |
|
(104 |
) |
15 |
| ||
Income from continuing operations |
|
15,898 |
|
203,623 |
| ||
Depreciation |
|
142,129 |
|
138,232 |
| ||
Changes in assets and liabilities |
|
146,239 |
|
48,602 |
| ||
Gain on sale of assets |
|
(4,589 |
) |
(4,173 |
) | ||
Other |
|
8,415 |
|
7,040 |
| ||
Net cash provided by operating activities from continuing operations |
|
308,092 |
|
393,324 |
| ||
Net cash used in operating activities from discontinued operations |
|
104 |
|
(15 |
) | ||
Net cash provided by operating activities |
|
308,196 |
|
393,309 |
| ||
|
|
|
|
|
| ||
INVESTING ACTIVITIES: |
|
|
|
|
| ||
Capital expenditures |
|
(114,470 |
) |
(369,981 |
) | ||
Purchase of short-term investments |
|
(6,918 |
) |
|
| ||
Proceeds from sale of assets |
|
6,058 |
|
7,160 |
| ||
Proceeds from sales of short-term investments |
|
4,600 |
|
|
| ||
Net cash used in investing activities |
|
(110,730 |
) |
(362,821 |
) | ||
|
|
|
|
|
| ||
FINANCING ACTIVITIES: |
|
|
|
|
| ||
Dividends paid |
|
(74,560 |
) |
(74,822 |
) | ||
Repurchase of common stock |
|
|
|
(59,654 |
) | ||
Debt issuance costs |
|
(32 |
) |
|
| ||
Exercise of stock options, net of tax withholding |
|
(59 |
) |
(2,062 |
) | ||
Tax withholdings related to net share settlements of restricted stock |
|
(3,617 |
) |
(4,248 |
) | ||
Excess tax benefit from stock-based compensation |
|
(352 |
) |
2,723 |
| ||
Net cash used in financing activities |
|
(78,620 |
) |
(138,063 |
) | ||
|
|
|
|
|
| ||
Net increase (decrease) in cash and cash equivalents |
|
118,846 |
|
(107,575 |
) | ||
Cash and cash equivalents, beginning of period, restated |
|
729,384 |
|
360,307 |
| ||
Cash and cash equivalents, end of period |
|
$ |
848,230 |
|
$ |
252,732 |
|
(more)
News Release
January 28, 2016
|
|
Three Months Ended |
| |||||||
|
|
September 30 |
|
December 31 |
| |||||
SEGMENT REPORTING |
|
2015 |
|
2015 |
|
2014 |
| |||
|
|
(in thousands, except days and per day amounts) |
| |||||||
U.S. LAND OPERATIONS |
|
|
|
|
|
|
| |||
Revenues |
|
$ |
420,393 |
|
$ |
369,805 |
|
$ |
890,047 |
|
Direct operating expenses |
|
219,700 |
|
181,541 |
|
441,126 |
| |||
General and administrative expense |
|
15,984 |
|
12,373 |
|
11,715 |
| |||
Depreciation |
|
151,056 |
|
120,359 |
|
119,077 |
| |||
Segment operating income |
|
$ |
33,653 |
|
$ |
55,532 |
|
$ |
318,129 |
|
|
|
|
|
|
|
|
| |||
Revenue days |
|
13,490 |
|
11,945 |
|
27,355 |
| |||
Average rig revenue per day |
|
$ |
28,700 |
|
$ |
28,651 |
|
$ |
29,457 |
|
Average rig expense per day |
|
$ |
13,823 |
|
$ |
12,890 |
|
$ |
13,046 |
|
Average rig margin per day |
|
$ |
14,877 |
|
$ |
15,761 |
|
$ |
16,411 |
|
Rig utilization |
|
43 |
% |
39 |
% |
89 |
% | |||
|
|
|
|
|
|
|
| |||
OFFSHORE OPERATIONS |
|
|
|
|
|
|
| |||
Revenues |
|
$ |
52,280 |
|
$ |
41,880 |
|
$ |
69,887 |
|
Direct operating expenses |
|
35,738 |
|
30,293 |
|
44,475 |
| |||
General and administrative expense |
|
1,049 |
|
862 |
|
826 |
| |||
Depreciation |
|
2,877 |
|
3,003 |
|
2,924 |
| |||
Segment operating income |
|
$ |
12,616 |
|
$ |
7,722 |
|
$ |
21,662 |
|
|
|
|
|
|
|
|
| |||
Revenue days |
|
736 |
|
736 |
|
809 |
| |||
Average rig revenue per day |
|
$ |
31,422 |
|
$ |
27,539 |
|
$ |
55,341 |
|
Average rig expense per day |
|
$ |
18,126 |
|
$ |
19,619 |
|
$ |
34,609 |
|
Average rig margin per day |
|
$ |
13,296 |
|
$ |
7,920 |
|
$ |
20,732 |
|
Rig utilization |
|
89 |
% |
89 |
% |
98 |
% |
(more)
News Release
January 28, 2016
|
|
Three Months Ended |
| |||||||
|
|
September 30 |
|
December 31 |
| |||||
SEGMENT REPORTING |
|
2015 |
|
2015 |
|
2014 |
| |||
|
|
(in thousands, except days and per day amounts) |
| |||||||
INTERNATIONAL LAND OPERATIONS |
|
|
|
|
|
|
| |||
Revenues |
|
$ |
78,069 |
|
$ |
72,194 |
|
$ |
96,673 |
|
Direct operating expenses |
|
69,784 |
|
64,008 |
|
73,923 |
| |||
General and administrative expense |
|
892 |
|
718 |
|
516 |
| |||
Depreciation |
|
15,383 |
|
14,133 |
|
11,673 |
| |||
Asset impairment charge |
|
39,242 |
|
|
|
|
| |||
Segment operating income (loss) |
|
$ |
(47,232 |
) |
$ |
(6,665 |
) |
$ |
10,561 |
|
|
|
|
|
|
|
|
| |||
Revenue days |
|
1,608 |
|
1,411 |
|
2,069 |
| |||
Average rig revenue per day |
|
$ |
43,660 |
|
$ |
46,031 |
|
$ |
40,844 |
|
Average rig expense per day |
|
$ |
38,659 |
|
$ |
34,220 |
|
$ |
30,502 |
|
Average rig margin per day |
|
$ |
5,001 |
|
$ |
11,811 |
|
$ |
10,342 |
|
Rig utilization |
|
45 |
% |
40 |
% |
60 |
% |
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 |
|
$ |
33,225 |
|
$ |
27,571 |
|
$ |
84,262 |
|
Offshore Operations |
|
$ |
11,710 |
|
$ |
6,331 |
|
$ |
5,732 |
|
International Land Operations |
|
$ |
7,863 |
|
$ |
7,244 |
|
$ |
12,167 |
|
(more)
News Release
January 28, 2016
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 |
| |||||||
|
|
September 30 |
|
December 31 |
| |||||
|
|
2015 |
|
2015 |
|
2014 |
| |||
Operating income |
|
|
|
|
|
|
| |||
U.S. Land |
|
$ |
33,653 |
|
$ |
55,532 |
|
$ |
318,129 |
|
Offshore |
|
12,616 |
|
7,722 |
|
21,662 |
| |||
International Land |
|
(47,232 |
) |
(6,665 |
) |
10,561 |
| |||
Other |
|
(3,471 |
) |
(1,304 |
) |
(1,899 |
) | |||
Segment operating income (loss) |
|
$ |
(4,434 |
) |
$ |
55,285 |
|
$ |
348,453 |
|
Corporate general and administrative |
|
(19,803 |
) |
(18,121 |
) |
(19,679 |
) | |||
Other depreciation |
|
(3,803 |
) |
(3,610 |
) |
(3,881 |
) | |||
Inter-segment elimination |
|
242 |
|
527 |
|
1,305 |
| |||
Income from asset sales |
|
3,015 |
|
4,589 |
|
4,173 |
| |||
Operating income (loss) |
|
$ |
(24,783 |
) |
$ |
38,670 |
|
$ |
330,371 |
|
|
|
|
|
|
|
|
| |||
Other income (expense): |
|
|
|
|
|
|
| |||
Interest and dividend income |
|
1,393 |
|
733 |
|
295 |
| |||
Interest expense |
|
(5,697 |
) |
(4,524 |
) |
(590 |
) | |||
Other |
|
(989 |
) |
(261 |
) |
314 |
| |||
Total other income (expense) |
|
(5,293 |
) |
(4,052 |
) |
19 |
| |||
|
|
|
|
|
|
|
| |||
Income (loss) from continuing operations before income taxes |
|
$ |
(30,076 |
) |
$ |
34,618 |
|
$ |
330,390 |
|
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