Texas | 1-13167 | 74-1611874 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
15011 Katy Freeway, Suite 800, Houston, Texas | 77094 |
(Address of principal executive offices) | (Zip Code) |
N/A | ||
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) |
(d) | EXHIBITS |
99.1 | Press Release dated August 1, 2016. |
ATWOOD OCEANICS, INC. | |
(Registrant) | |
Date: August 1, 2016 | |
/s/ Mark W. Smith | |
Mark W. Smith | |
Senior Vice President and Chief Financial Officer |
EXHIBIT NO | DESCRIPTION | |
99.1 | Press Release dated August 1, 2016 |
For the Three Months Ended | |||||||||||
(Unaudited) | |||||||||||
(In thousands, except per share amounts) | June 30, 2016 | March 31, 2016 | June 30, 2015 | ||||||||
Revenues | $ | 227,797 | $ | 296,351 | $ | 330,562 | |||||
Income before Income Taxes | 120,116 | 136,426 | 122,539 | ||||||||
Provision for Income Taxes | (20,611 | ) | (13,989 | ) | (9,547 | ) | |||||
Net Income | $ | 99,505 | $ | 122,437 | $ | 112,992 | |||||
Earnings per Common Share - | |||||||||||
Basic | $ | 1.54 | $ | 1.89 | $ | 1.75 | |||||
Diluted | $ | 1.53 | $ | 1.89 | $ | 1.73 |
Nine Months Ended | |||||||||
(Unaudited) | |||||||||
(In thousands, except per share amounts) | June 30, 2016 | June 30, 2015 | |||||||
Revenues | $ | 831,967 | $ | 1,032,675 | |||||
Income before Income Taxes | 306,837 | 312,855 | |||||||
Provision for Income Taxes | (45,814 | ) | (30,976 | ) | |||||
Net Income | $ | 261,023 | $ | 281,879 | |||||
Earnings per Common Share - | |||||||||
Basic | $ | 4.03 | $ | 4.37 | |||||
Diluted | $ | 4.02 | $ | 4.33 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
(In thousands, except per share amounts) | 2016 | 2015 | 2016 | 2015 | |||||||||||
REVENUES: | |||||||||||||||
Contract drilling | $ | 217,818 | $ | 317,531 | $ | 794,979 | $ | 992,913 | |||||||
Revenues related to reimbursable expenses | 9,979 | 13,031 | 36,988 | 39,762 | |||||||||||
Total revenues | 227,797 | 330,562 | 831,967 | 1,032,675 | |||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Contract drilling | 80,524 | 134,258 | 301,094 | 401,847 | |||||||||||
Reimbursable expenses | 5,489 | 9,066 | 22,898 | 29,634 | |||||||||||
Depreciation | 41,084 | 42,534 | 124,964 | 129,637 | |||||||||||
General and administrative | 12,028 | 10,473 | 38,693 | 42,619 | |||||||||||
Asset impairment | (659 | ) | — | 64,773 | 60,777 | ||||||||||
Loss on sale of assets | — | 27 | 77 | 15,362 | |||||||||||
Other, net | 16 | — | (1,044 | ) | — | ||||||||||
138,482 | 196,358 | 551,455 | 679,876 | ||||||||||||
OPERATING INCOME | 89,315 | 134,204 | 280,512 | 352,799 | |||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Interest expense, net of capitalized interest | (19,674 | ) | (11,677 | ) | (50,533 | ) | (40,028 | ) | |||||||
Interest income | 9 | 12 | 19 | 84 | |||||||||||
Gains on extinguishment of debt | 50,466 | — | 58,863 | — | |||||||||||
Other income | — | — | 17,976 | — | |||||||||||
30,801 | (11,665 | ) | 26,325 | (39,944 | ) | ||||||||||
INCOME BEFORE INCOME TAXES | 120,116 | 122,539 | 306,837 | 312,855 | |||||||||||
PROVISION FOR INCOME TAXES | 20,611 | 9,547 | 45,814 | 30,976 | |||||||||||
NET INCOME | $ | 99,505 | $ | 112,992 | $ | 261,023 | $ | 281,879 | |||||||
EARNINGS PER COMMON SHARE (NOTE 2): | |||||||||||||||
Basic | $ | 1.54 | $ | 1.75 | $ | 4.03 | $ | 4.37 | |||||||
Diluted | $ | 1.53 | $ | 1.73 | $ | 4.02 | $ | 4.33 | |||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (NOTE 2): | |||||||||||||||
Basic | 64,795 | 64,649 | 64,750 | 64,557 | |||||||||||
Diluted | 64,847 | 65,130 | 64,852 | 65,063 |
REVENUES | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
(In millions) | June 30, 2016 | March 31, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||||
Ultra-Deepwater | $ | 182 | $ | 189 | $ | 174 | $ | 553 | $ | 524 | |||||||||
Deepwater | — | 59 | 77 | 131 | 257 | ||||||||||||||
Jackups | 36 | 34 | 67 | 111 | 212 | ||||||||||||||
Reimbursable | 10 | 14 | 13 | 37 | 40 | ||||||||||||||
$ | 228 | $ | 296 | $ | 331 | $ | 832 | $ | 1,033 |
DRILLING COSTS | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
(In millions) | June 30, 2016 | March 31, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||||
Ultra-Deepwater | $ | 54 | $ | 54 | $ | 75 | $ | 168 | $ | 206 | |||||||||
Deepwater | 10 | 19 | 29 | 71 | 102 | ||||||||||||||
Jackups | 16 | 19 | 29 | 62 | 91 | ||||||||||||||
Reimbursable | 5 | 9 | 9 | 23 | 30 | ||||||||||||||
Other | 1 | (2 | ) | 1 | — | 3 | |||||||||||||
$ | 86 | $ | 99 | $ | 143 | $ | 324 | $ | 432 |
(In thousands, except par value) | June 30, 2016 | September 30, 2015 | |||||
(Unaudited) | |||||||
ASSETS | |||||||
Cash | $ | 198,974 | $ | 113,983 | |||
Accounts receivable, net | 166,534 | 311,514 | |||||
Income tax receivable | 8,194 | 8,705 | |||||
Inventories of materials and supplies, net | 113,161 | 137,998 | |||||
Prepaid expenses, deferred costs and other current assets | 10,040 | 33,735 | |||||
Total current assets | 496,903 | 605,935 | |||||
Property and equipment, net | 4,198,069 | 4,172,132 | |||||
Other receivables | 11,831 | 11,831 | |||||
Deferred income taxes | 150 | 150 | |||||
Deferred costs and other assets | 8,174 | 11,285 | |||||
Total assets | $ | 4,715,127 | $ | 4,801,333 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Accounts payable | $ | 43,252 | $ | 70,161 | |||
Accrued liabilities | 12,496 | 23,572 | |||||
Dividends payable | — | 16,164 | |||||
Interest payable | 15,506 | 7,704 | |||||
Income tax payable | 13,530 | 13,906 | |||||
Deferred credits and other liabilities | 1,486 | 3,941 | |||||
Total current liabilities | 86,270 | 135,448 | |||||
Long-term debt | 1,374,780 | 1,678,268 | |||||
Deferred income taxes | 1,148 | 1,658 | |||||
Deferred credits | — | 800 | |||||
Other | 30,409 | 37,989 | |||||
Total long-term liabilities | 1,406,337 | 1,718,715 | |||||
Commitments and contingencies (Note 8) | |||||||
Preferred stock, no par value, 1,000 shares authorized, none outstanding | — | — | |||||
Common stock, $1.00 par value, 180,000 shares authorized with 64,798 issued and outstanding as of June 30, 2016 and 180,000 shares authorized and 64,654 shares issued and outstanding as of September 30, 2015 | 64,798 | 64,654 | |||||
Paid-in capital | 235,043 | 213,096 | |||||
Retained earnings | 2,925,589 | 2,670,148 | |||||
Accumulated other comprehensive income | (2,910 | ) | (728 | ) | |||
Total shareholders' equity | 3,222,520 | 2,947,170 | |||||
Total liabilities and shareholders' equity | $ | 4,715,127 | $ | 4,801,333 |
Nine Months Ended June 30, | |||||||
(In thousands) | 2016 | 2015 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 261,023 | $ | 281,879 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 124,964 | 129,637 | |||||
Amortization | 2,407 | 5,179 | |||||
Provision for doubtful accounts | 4,619 | 3,337 | |||||
Deferred income tax benefit | (378 | ) | (3,453 | ) | |||
Share-based compensation expense | 8,224 | 9,277 | |||||
Asset impairment | 64,753 | 60,777 | |||||
Loss on sale of assets | (71 | ) | 15,362 | ||||
(Gain) on extinguishment of debt | (58,863 | ) | — | ||||
Other, net | (1,137 | ) | — | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 121,964 | (17,917 | ) | ||||
Income tax receivable | 511 | (3,868 | ) | ||||
Inventories of materials and supplies | 12,988 | (16,917 | ) | ||||
Prepaid expenses, deferred costs and other current assets | 19,377 | 13,274 | |||||
Deferred costs and other assets | (1,019 | ) | (341 | ) | |||
Accounts payable | (33,674 | ) | (17,511 | ) | |||
Accrued liabilities | (3,274 | ) | 24,049 | ||||
Income tax payable | (376 | ) | (5,450 | ) | |||
Deferred credits and other liabilities | (6,623 | ) | 6,291 | ||||
Net cash provided by operating activities | 515,415 | 483,605 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (198,248 | ) | (420,077 | ) | |||
Proceeds from sale of assets | 20,813 | 2,339 | |||||
Net cash used in investing activities | (177,435 | ) | (417,738 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from borrowing of long-term debt | 45,000 | 225,000 | |||||
Principal repayments on long-term debt | (290,110 | ) | (250,000 | ) | |||
Repayments on short-term debt, net | — | (11,885 | ) | ||||
Debt issuance costs paid | — | — | |||||
Dividends paid | (21,746 | ) | (32,397 | ) | |||
Proceeds (payments) related to exercise of stock options | (930 | ) | 1,279 | ||||
Windfall tax benefits from share-based payment arrangements | 14,797 | — | |||||
Net cash used by financing activities | (252,989 | ) | (68,003 | ) | |||
Net increase in cash and cash equivalents | 84,991 | (2,136 | ) | ||||
Cash and cash equivalents, at beginning of period | 113,983 | 80,080 | |||||
Cash and cash equivalents, at end of period | $ | 198,974 | $ | 77,944 | |||
Non-cash activities: | |||||||
Increase (decrease) in accounts payable and accrued liabilities related to capital expenditures | $ | 7,902 | $ | (15,501 | ) |