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Proc-Type: 2001,MIC-CLEAR
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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 Report (Date
of earliest event reported): February 23, 2005
SUPERIOR ENERGY SERVICES, INC.
(Exact name of registrant as specified in its
charter) Delaware (State or
other jurisdiction) 0-20310 (Commission File Number) 75-2379388 (IRS Employer Identification
No.) 1105 Peters Road, Harvey,
Louisiana (Address of
principal executive offices) 70058 (Zip Code) (504) 362-4321 (Registrant's
telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligations of the registrant under any of the
following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
On February 23, 2005, Superior
Energy Services, Inc. issued a press release announcing its earnings for the
fourth quarter ended December 31, 2004. A copy of the press release is
attached hereto as Exhibit 99.1 and incorporated herein by reference. In
accordance with General Instruction B.2. of Form 8-K, the information
presented herein shall not be deemed "filed" for purposes
of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall
it be deemed incorporated by reference in any filing under the Securities
Act of 1933, as amended, except as expressly set forth by specific reference
in such a filing. (c) SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized. SUPERIOR ENERGY
SERVICES, INC. By: /s/ Robert S.
Taylor Robert S. Taylor Chief Financial
Officer Dated: February 24, 2005 EXHIBIT 99.1
1105 Peters Road Harvey,
Louisiana 70058
(504) 362-4321
Fax (504) 362-4966
NYSE: SPN
FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT:
Terence Hall, CEO; Robert Taylor, CFO; Superior Energy Services, Inc. Announces Fourth Quarter 2004
Results (Harvey, La., Wednesday, February 23, 2005) Superior Energy
Services, Inc. (NYSE: SPN) today announced results for the fourth quarter ended
December 31, 2004. For the quarter, revenues were $157.8 million resulting in
net income of $12.3 million or $0.16 diluted earnings per share, as compared to
revenues of $120.3 million and net income of $5.9 million or $0.08 diluted
earnings per share for the fourth quarter of 2003. For the year ended December 31, 2004, revenues were a record
$564.3 million and net income was $35.9 million or $0.47 diluted earnings per
share, as compared to revenues of $500.6 million and net income of $30.5 million
or $0.41 diluted earnings per share for the year ended December 31, 2003. CEO Terry Hall Comments CEO Terry Hall commented, "The traditional fourth quarter
seasonal slowdown in the shallow water Gulf of Mexico for our services was not
as severe as in years past. Higher levels of remedial and production-related
work resulted in better results for our well intervention group and marine
segments. Weaker deepwater rentals of drill pipe due to ongoing project delays
from Hurricane Ivan were more than offset by continued diversification of our
rental tools segment domestically on land and internationally in the North Sea.
Fourth quarter financial performance was impacted by significant production
deferral from our oil and gas segment because of extended delays to third-party
pipeline and infrastructure repairs due to damage from Hurricane Ivan. "We believe the outlook for 2005 is favorable for several
reasons. First, our geographic markets appear to be more active entering this
year as compared to the start of 2004, which should bode well for our core
businesses. Production-related activity in the shallow water Gulf of Mexico is
improving and deepwater exploration projects are resuming following
storm-related downtime. Second, we should continue to gain rental tool market
share domestically on land and internationally in West Africa and the Middle
East. Third, we continue to build a backlog of service and decommissioning work
for our own properties which can be performed if activity levels slow. Finally,
we should benefit from increased levels of oil and gas production when compared
to 2004 production levels." Well Intervention Group Segment Fourth quarter revenues for the Well Intervention Group were
$62.8 million, a 28% increase over the fourth quarter of 2003 and a 5% increase
over the third quarter of 2004. Activity year-over-year was stronger in most of
the segment's service lines, including coiled tubing, pumping and stimulation,
plug and abandonment, mechanical wireline and well control services. Sequential
improvement was driven mainly by mechanical wireline activity in the Gulf of
Mexico and a large well control project in Egypt. Rental Tools Segment Revenues for the Rental Tools segment were $45.0 million, a
28% increase over the fourth quarter of 2003 and a 6% increase over the third
quarter of 2004. Improved results as compared to the fourth quarter of 2003 were
driven mainly by increased rentals of stabilizers and downhole tubulars, on-site
accommodations, and drill pipe and ancillary tools. Marine Segment Marine revenues were $20.5 million, an increase of 28% as
compared to the fourth quarter of 2003 and a 13% increase as compared to the
third quarter of 2004. Average fleet utilization was 76% as compared to 66% in
the fourth quarter of 2003 and 69% in the third quarter of 2004. Average daily
revenue in the fourth quarter was approximately $222,300, inclusive of
subsistence revenue. Liftboat Average Dayrates and Utilization by Class Size Three Months Ended December 31, 2004 ($ actual) 105' 6 $3,201 69.8% 120-135' 8 3,243 73.1% 145-155' 11 5,748 74.5% 160'-175' 6 7,310 70.8% 200' 2 11,239 94.6% 230'-245' 3 14,768 89.1% 250' 2 17,450 93.5% Other Oilfield Services Segment Revenues in this segment were $20.8 million, a 7% increase as
compared to the fourth quarter of 2003 and a 2% increase as compared to the
third quarter of 2004 primarily due to incremental demand for property
management and contract operations. Oil and Gas Segment Oil and gas revenues were $11.5 million as compared to $0.7
million in the fourth quarter of 2003 and $14.2 million in the third quarter of
2004. Fourth quarter production from SPN Resources was approximately 289,400
barrels of oil equivalent, net (boe) as compared to approximately 335,890 boe in
the third quarter of 2004. Fourth quarter production was lower due to production
deferral of approximately 260,500 boe as a result of downtime at South Pass 60
from Hurricane Ivan. The Company will host a conference call at 10 a.m. Central
Time on Thursday. The call can be accessed from Superior's website at
www.superiorenergy.com, or by
telephone at 800-763-5557. The replay telephone number is 800-642-1687 and the
replay passcode is 4027344. The replay is available beginning two hours after
the call and ending March 3, 2005. Superior Energy Services, Inc. provides a broad range of
specialized oilfield services and equipment primarily to major and independent
oil and gas companies engaged in the exploration, production and development of
oil and natural gas properties offshore in the Gulf of Mexico and throughout the
Gulf Coast region. These services and equipment include the rental of liftboats,
rental of specialized oilfield equipment, electric and mechanical wireline
services, well plug and abandonment services, well control, hydraulic workover,
coiled tubing services and engineering services. Additional services provided
include contract operating and supplemental labor, offshore and dockside
environmental cleaning services, the manufacture and sale of drilling
instrumentation and the manufacture and sale of oil spill containment equipment. This press release contains certain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 which involve known and unknown risks, uncertainties and other factors.
Among the factors that could cause actual results to differ materially are:
volatility of the oil and gas industry, including the level of exploration,
production and development activity; risks associated with the Company's rapid
growth; changes in competitive factors and other material factors that are
described from time to time in the Company's filings with the Securities and
Exchange Commission. Actual events, circumstances, effects and results may be
materially different from the results, performance or achievements expressed or
implied by the forward-looking statements. Consequently, the forward-looking
statements contained herein should not be regarded as representations by
Superior or any other person that the projected outcomes can or will be
achieved. # # # SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES Three and Twelve Months Ended December 31, 2004 and 2003 2004 2003 2004 2003 (audited) Revenues 157,835 120,257 564,339 500,625 Costs and expenses: Cost of services 83,848 69,710 310,108 289,607 Depreciation, depletion, amortization and accretion 18,891 12,852 67,337 48,853 General and administrative 30,980 23,249 110,605 94,822 Total costs and expenses 133,719 105,811 488,050 433,282 Income from operations 24,116 14,446 76,289 67,343 Other income (expense): Interest expense (5,752) (5,673) (22,476) (22,477) Interest income 401 98 1,766 209 Other income - - - 2,762 Equity in income of affiliates 437 493 1,329 985 Income before income taxes 19,202 9,364 56,908 48,822 Income taxes 6,916 3,511 21,056 18,308 Net income 12,286 5,853 35,852 30,514 Basic earnings per share 0.16 0.08 0.48 0.41 Diluted earnings per share 0.16 0.08 0.47 0.41 Weighted average common shares used in computing earnings per share: Basic 76,163 74,079 74,896 73,970 Diluted 77,618 74,759 75,900 74,648 SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES ASSETS Current assets: Cash and cash equivalents 15,281 19,794 Accounts receivable - net 156,235 112,775 Income taxes receivable 2,694 - Notes receivable 9,611 19,212 Prepaid insurance and other 28,203 14,059 Total current assets 212,024 165,840 Property, plant and equipment - net 515,151 427,360 Goodwill - net 226,593 204,727 Notes receivable 29,131 15,145 Investments in affiliates 14,496 13,224 Other assets - net 6,518 6,567 Total assets 1,003,913 832,863 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable 36,496 20,817 Accrued expenses 56,796 48,949 Income taxes payable - 138 Fair value of commodity derivative instruments 2,018 - Current portion of decommissioning liabilities 23,588 20,097 Current maturities of long-term debt 11,810 14,210 Total current liabilities 130,708 104,211 Deferred income taxes 103,372 86,251 Decommissioning liabilities 90,430 18,756 Long-term debt 244,906 255,516 Fair value of commodity derivative instruments 618 - Total stockholders' equity 433,879 368,129 Total liabilities and stockholders' equity 1,003,913 832,863 Superior Energy Services, Inc. and Subsidiaries Segment Highlights Three months ended December 31, 2004, September 30, 2004, and
December 31, 2003
Item
2.02.
Results of Operations and Financial
Condition.
Item 9.01
Financial Statements and Exhibits.
Exhibits:
99.1
Press release issued by Superior Energy Services, Inc.,
dated February 23, 2005.
Greg Rosenstein, VP of Investor Relations, 504-362-4321
Class
Liftboats
Average Dayrate
Utilization
Consolidated Statements of Operations
(in thousands, except earnings per share amounts)
(unaudited, except as noted)
Three Months Ended
December 31,
Year Ended
December 31,
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2004 AND 2003
(in thousands)
12/31/2004
(unaudited)
12/31/2003
(audited)
$
$
$
$
$
$
$
$
(Unaudited)
Three months ended, |
|||||||||
Revenue |
December 31, 2004 |
September 30, 2004 |
December 31, 2003 |
||||||
Well Intervention |
$ |
62,779 |
$ |
59,861 |
$ |
49,192 |
|||
|
|
|
|||||||
Rental tools |
44,971 |
42,530 |
35,015 |
||||||
|
|
|
|||||||
Marine |
20,456 |
18,049 |
15,958 |
||||||
|
|
|
|||||||
Other Oilfield Services |
20,789 |
20,354 |
19,351 |
||||||
|
|
|
|||||||
Oil and Gas |
11,462 |
14,190 |
741 |
||||||
|
|
|
|||||||
Less: Oil and Gas Eliminations (2) |
(2,622) |
(2,484) |
- |
||||||
|
|
|
|||||||
Total Revenues |
$ |
157,835 |
$ |
152,500 |
$ |
120,257 |
|||
|
|
|
|||||||
|
|
|
|||||||
Three months ended,
|
|||||||||
Gross Profit (1) |
December 31, 2004 |
September 30, 2004 |
December 31, 2003 |
||||||
Well Intervention |
$ |
29,154 |
$ |
25,519 |
$ |
20,756 |
|||
|
|
|
|||||||
Rental tools |
29,731 |
27,186 |
22,901 |
||||||
|
|
|
|||||||
Marine |
7,357 |
5,856 |
3,421 |
||||||
|
|
|
|||||||
Other Oilfield Services |
4,560 |
3,878 |
3,059 |
||||||
|
|
||||||||
Oil and Gas |
3,185 |
7,650 |
410 |
||||||
|
|
||||||||
Total Gross Profit |
$ |
73,987 |
$ |
70,089 |
$ |
50,547 |
(1) | Gross profit is calculated by subtracting cost of services from revenue
for each of the Company's five segments. |
(2) | Oil and gas eliminations represent products and services from the company's segments provided to the Oil and Gas Segment. |
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