Supplemental Guarantor Information

9 Months Ended

Sep. 30, 2019

Supplemental Guarantor Information [Abstract]

Supplemental Guarantor Information

(15) Supplemental Guarantor Information

SESI, L.L.C. (the Issuer), a 100% owned subsidiary of Superior Energy Services, Inc. (Parent), has $500 million of 7.75% senior unsecured notes due 2024. The Parent, along with certain of its 100% owned domestic subsidiaries, fully and unconditionally guaranteed such senior unsecured notes, and such guarantees are joint and several.

‎

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
September 30, 2019
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor ‎Subsidiaries		Non- ‎Guarantor ‎Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	187,979	$	1,341	$	70,569	$	-	$	259,889
Accounts receivable, net		-		30		280,704		87,796		-		368,530
Other current assets		-		8,592		133,669		62,339		-		204,600
Total current assets		-		196,601		415,714		220,704		-		833,019
Property, plant and equipment, net		-		11,372		722,830		157,338		-		891,540
Operating lease right-of-use assets		-		22,530		57,334		16,326		-		96,190
Goodwill		-		-		80,544		55,378		-		135,922
Notes receivable		-		-		67,042		-		-		67,042
Long-term intercompany accounts receivable		2,256,701		1,111,335		3,491,267		218,291		(7,077,594)		-
Intercompany notes receivable		-		1,200		-		6,000		(7,200)		-
Equity investments of consolidated subsidiaries		(2,113,614)		3,701,545		7,764		-		(1,595,695)		-
Restricted cash		-		-		2,708		45		-		2,753
Intangible and other long-term assets, net		-		19,203		71,239		6,843		-		97,285
Total assets	$	143,087	$	5,063,786	$	4,916,442	$	680,925	$	(8,680,489)	$	2,123,751
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	-	$	8,986	$	67,127	$	34,285	$	-	$	110,398
Accrued expenses		-		80,810		104,122		35,691		-		220,623
Income taxes payable		-		(717)		-		4,559		-		3,842
Current portion of decommissioning liabilities		-		-		-		3,621		-		3,621
Total current liabilities		-		89,079		171,249		78,156		-		338,484
Long-term debt, net		-		1,285,755		-		-		-		1,285,755
Deferred income taxes		-		(149,512)		145,416		4,096		-		-
Decommissioning liabilities		-		-		131,263		-		-		131,263
Operating lease liabilities		-		23,093		42,009		11,153		-		76,255
Long-term intercompany accounts payable		-		5,876,786		1,082,435		118,373		(7,077,594)		-
Intercompany notes payable		-		6,000		-		1,200		(7,200)		-
Other long-term liabilities		-		46,199		76,510		26,198		-		148,907
Total stockholders' equity (deficit)		143,087		(2,113,614)		3,267,560		441,749		(1,595,695)		143,087
Total liabilities and stockholders' equity	$	143,087	$	5,063,786	$	4,916,442	$	680,925	$	(8,680,489)	$	2,123,751

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
December 31, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor ‎Subsidiaries		Non- ‎Guarantor ‎Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	102,224	$	707	$	55,119	$	-	$	158,050
Accounts receivable, net		-		160		367,497		79,696		-		447,353
Intercompany accounts receivable		-		12,279		74,906		3,489		(90,674)		-
Other current assets		-		12,805		111,560		43,137		-		167,502
Total current assets		-		127,468		554,670		181,441		(90,674)		772,905
Property, plant and equipment, net		-		10,129		920,978		178,019		-		1,109,126
Goodwill		-		-		80,544		56,244		-		136,788
Notes receivable		-		-		63,993		-		-		63,993
Long-term intercompany accounts receivable		2,243,431		-		1,991,912		182,284		(4,417,627)		-
Equity investments of consolidated subsidiaries		(1,952,647)		3,754,887		5,992		-		(1,808,232)		-
Restricted cash		-		-		5,653		45		-		5,698
Intangible and other long-term assets, net		-		19,255		100,847		7,350		-		127,452
Total assets	$	290,784	$	3,911,739	$	3,724,589	$	605,383	$	(6,316,533)	$	2,215,962
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	-	$	8,807	$	109,903	$	20,615	$	-	$	139,325
Accrued expenses		45		102,845		86,926		29,364		-		219,180
Income taxes payable		-		1,237		-		(503)		-		734
Intercompany accounts payable		-		724		6,869		83,081		(90,674)		-
Current portion of decommissioning liabilities		-		-		-		3,538		-		3,538
Total current liabilities		45		113,613		203,698		136,095		(90,674)		362,777
Long-term debt, net		-		1,282,921		-		-		-		1,282,921
Decommissioning liabilities		-		-		126,558		-		-		126,558
Long-term intercompany accounts payable		-		4,417,627		-		-		(4,417,627)		-
Other long-term liabilities		-		50,225		76,543		26,199		-		152,967
Total stockholders' equity (deficit)		290,739		(1,952,647)		3,317,790		443,089		(1,808,232)		290,739
Total liabilities and stockholders' equity	$	290,784	$	3,911,739	$	3,724,589	$	605,383	$	(6,316,533)	$	2,215,962

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended September 30, 2019
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor ‎Subsidiaries		Non- ‎Guarantor ‎Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	352,158		80,018		(6,459)	$	425,717
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(1,373)		245,743		56,295		(6,459)		294,206
Depreciation, depletion, amortization and
accretion		-		907		57,143		9,339		-		67,389
General and administrative expenses		-		16,581		35,320		10,867		-		62,768
Reduction in value of assets		-		-		9,571		-		-		9,571
Income (loss) from operations		-		(16,115)		4,381		3,517		-		(8,217)
Other income (expense):
Interest income (expense), net		-		(25,911)		1,364		42		-		(24,505)
Intercompany interest income (expense)		-		(42)		-		42		-		-
Other income (expense)		-		(132)		411		(3,632)		-		(3,353)
Equity in losses of consolidated subsidiaries		(38,441)		(5,124)		(2,544)		-		46,109		-
Income (loss) from operations before income taxes		(38,441)		(47,324)		3,612		(31)		46,109		(36,075)
Income taxes		-		(8,883)		9,729		1,520		-		2,366
Net income (loss)		(38,441)		(38,441)		(6,117)		(1,551)		46,109		(38,441)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Income (Loss)
Three Months Ended September 30, 2019
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor ‎Subsidiaries		Non- ‎Guarantor ‎Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(38,441)	$	(38,441)	$	(6,117)	$	(1,551)	$	46,109	$	(38,441)
Change in cumulative translation adjustment, net of tax		(2,967)		(2,967)		-		(2,967)		5,934		(2,967)
Comprehensive loss	$	(41,408)	$	(41,408)	$	(6,117)	$	(4,518)	$	52,043	$	(41,408)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor ‎Subsidiaries		Non- ‎Guarantor ‎Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	511,510	$	66,428	$	(4,870)	$	573,068
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(793)		366,568		43,484		(4,870)		404,389
Depreciation, depletion, amortization and
accretion		-		965		87,973		10,954		-		99,892
General and administrative expenses		-		23,959		34,726		10,210		-		68,895
Income (loss) from operations		-		(24,131)		22,243		1,780		-		(108)
Other income (expense):
Interest income (expense), net		-		(26,024)		993		79		-		(24,952)
Other income (expense)		-		(356)		264		(185)		-		(277)
Equity in earnings (losses) of consolidated subsidiaries		(21,816)		19,182		(53)		-		2,687		-
Income (loss) from continuing operations before income taxes		(21,816)		(31,329)		23,447		1,674		2,687		(25,337)
Income taxes		-		(9,513)		5,260		732		-		(3,521)
Net income (loss)	$	(21,816)	$	(21,816)	$	18,187	$	942	$	2,687	$	(21,816)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Income (Loss)
Three Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor ‎Subsidiaries		Non- ‎Guarantor ‎Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(21,816)	$	(21,816)	$	18,187	$	942	$	2,687	$	(21,816)
Change in cumulative translation adjustment, net of tax		(826)		(826)		-		(826)		1,652		(826)
Comprehensive income (loss)	$	(22,642)	$	(22,642)	$	18,187	$	116	$	4,339	$	(22,642)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Nine Months Ended September 30, 2019
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor ‎Subsidiaries		Non- ‎Guarantor ‎Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	1,108,641	$	238,154	$	(17,587)	$	1,329,208
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(8,244)		784,396		162,232		(17,587)		920,797
Depreciation, depletion, amortization and
accretion		-		2,780		193,503		28,763		-		225,046
General and administrative expenses		-		64,319		109,983		34,295		-		208,597
Reduction in value of assets		-		-		40,952		-		-		40,952
Income (loss) from operations		-		(58,855)		(20,193)		12,864		-		(66,184)
Other income (expense):
Interest income (expense), net		-		(78,195)		3,836		84		-		(74,275)
Intercompany interest income (expense)				(67)		-		67
Other income (expense)		-		(1,207)		(799)		(2,470)		-		(4,476)
Equity in earnings (losses) of consolidated subsidiaries		(157,196)		(49,523)		(1,820)		-		208,539		-
Income (loss) from continuing operations before income taxes		(157,196)		(187,847)		(18,976)		10,545		208,539		(144,935)
Income taxes		-		(30,651)		34,891		8,021		-		12,261
Net income (loss)	$	(157,196)	$	(157,196)	$	(53,867)	$	2,524	$	208,539	$	(157,196)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Income (Loss)
Nine Months Ended September 30, 2019
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor ‎Subsidiaries		Non- ‎Guarantor ‎Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(157,196)	$	(157,196)	$	(53,867)	$	2,524	$	208,539	$	(157,196)
Change in cumulative translation adjustment, net of tax		(3,810)		(3,810)		-		(3,810)		7,620		(3,810)
Comprehensive income (loss)	$	(161,006)	$	(161,006)	$	(53,867)	$	(1,286)	$	216,159	$	(161,006)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Nine Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor ‎Subsidiaries		Non- ‎Guarantor ‎Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	1,420,368	$	192,976	$	(22,410)	$	1,590,934
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(6,382)		1,011,801		134,650		(22,410)		1,117,659
Depreciation, depletion, amortization and
accretion		-		2,974		266,188		34,422		-		303,584
General and administrative expenses		-		70,721		109,083		34,807		-		214,611
Loss from operations		-		(67,313)		33,296		(10,903)		-		(44,920)
Other income (expense):
Interest expense, net		-		(77,778)		2,940		105		-		(74,733)
Other income (expense)		-		(608)		802		(4,588)		-		(4,394)
Equity in losses of consolidated subsidiaries		(107,930)		13,073		(421)		-		95,278		-
Loss from continuing operations before income taxes		(107,930)		(132,626)		36,617		(15,386)		95,278		(124,047)
Income taxes		-		(24,696)		7,185		665		-		(16,846)
Net loss from continuing operations		(107,930)		(107,930)		29,432		(16,051)		95,278		(107,201)
Loss from discontinued operations, net of income taxes		-		-		-		(729)		-		(729)
Net loss	$	(107,930)	$	(107,930)	$	29,432	$	(16,780)	$	95,278	$	(107,930)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Income (Loss)
Nine Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor ‎Subsidiaries		Non- ‎Guarantor ‎Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(107,930)	$	(107,930)	$	29,432	$	(16,780)	$	95,278	$	(107,930)
Change in cumulative translation adjustment, net of tax		(3,491)		(3,491)		-		(3,491)		6,982		(3,491)
Comprehensive income (loss)	$	(111,421)	$	(111,421)	$	29,432	$	(20,271)	$	102,260	$	(111,421)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Nine Months Ended September 30, 2019
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor ‎Subsidiaries		Non- ‎Guarantor ‎Subsidiaries		Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	14,295	$	(272,879)	$	350,633	$	24,455	$	116,504
Cash flows from investing activities:
Payments for capital expenditures		-		(5,514)		(94,757)		(5,122)		(105,393)
Proceeds from sales of assets		-		-		90,696		-		90,696
Net cash provided by (used in) investing activities		-		(5,514)		(4,061)		(5,122)		(14,697)
Cash flows from financing activities:
Changes in notes with affiliated companies, net		(13,270)		364,179		(348,883)		(2,026)		-
Other		(1,025)		(31)		-		-		(1,056)
Net cash provided by (used in) financing activities		(14,295)		364,148		(348,883)		(2,026)		(1,056)
Effect of exchange rate changes on cash		-		-		-		(1,857)		(1,857)
Net change in cash, cash equivalents, and restricted cash		-		85,755		(2,311)		15,450		98,894
Cash, cash equivalents, and restricted cash at beginning of period		-		102,224		6,360		55,164		163,748
Cash, cash equivalents, and restricted cash at end of period	$	-	$	187,979	$	4,049	$	70,614	$	262,642

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Nine Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor ‎Subsidiaries		Non- ‎Guarantor ‎Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	18,290	$	(118,313)	$	174,198	$	23,450	$	(14,269)	$	83,356
Cash flows from investing activities:
Payments for capital expenditures		-		(1,509)		(175,524)		(9,250)		-		(186,283)
Proceeds from sales of assets		-		-		16,226		13,369		-		29,595
Net cash provided by (used in) investing activities		-		(1,509)		(159,298)		4,119		-		(156,688)
Cash flows from financing activities:
Intercompany dividends		-		-		-		(14,269)		14,269		-
Changes in notes with affiliated companies, net		(14,775)		31,469		(26,644)		9,950		-		-
Other		(3,515)		(435)		-		-		-		(3,950)
Net cash provided by (used in) financing activities		(18,290)		31,034		(26,644)		(4,319)		14,269		(3,950)
Effect of exchange rate changes on cash		-		-		-		(1,834)		-		(1,834)
Net change in cash, cash equivalents, and restricted cash		-		(88,788)		(11,744)		21,416		-		(79,116)
Cash, cash equivalents, and restricted cash at beginning of period		-		126,533		20,923		45,027		-		192,483
Cash, cash equivalents, and restricted cash at end of period	$	-	$	37,745	$	9,179	$	66,443	$	-	$	113,367