===========================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-12797
CLIFFS DRILLING COMPANY
(Exact name of registrant as specified in its charter)
Delaware 76-0248934
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
901 Threadneedle, Houston, Texas 77079
(Address of principal executive offices)(Zip code)
(281) 496-5000
(Registrant's telephone number, including area code)
The registrant meets the conditions set forth in General Instruction
H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with the
reduced disclosure format.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes _X_ No ___
===========================================================================
Forward-Looking Statements and Assumptions
This Quarterly Report on Form 10-Q may contain or incorporate by
reference certain forward-looking statements, including by way of
illustration and not of limitation, statements relating to liquidity,
revenues, expenses, margins and contract rates and terms. The Company
strongly encourages readers to note that some or all of the assumptions,
upon which such forward-looking statements are based, are beyond the
Company's ability to control or estimate precisely, and may in some cases
be subject to rapid and material changes. Such assumptions include the
contract status of the Company's drilling units, general market conditions
prevailing in the contract drilling industry (including daily rates and
utilization) and various other trends affecting the contract drilling
industry, including world oil and gas prices, the exploration and
development programs of the Company's customers, the actions of the
Company's competitors and economic conditions generally.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Company or Group of Companies for Which Report is Filed:
Cliffs Drilling Company
The financial statements for the three months ended March 31, 2000 and
1999, include, in the opinion of the Company, all adjustments (which only
consist of normal recurring adjustments) necessary to present fairly the
financial position and results of operations for such periods. The
financial data for the three months ended March 31, 2000 included herein
have been prepared in accordance with generally accepted accounting
principles for interim financial information. Results of operations for
the three months ended March 31, 2000 are not necessarily indicative of
results of operations which will be realized for the year ending
December 31, 2000. The financial statements should be read in conjunction
with the Company's Form 10-K for the year ended December 31, 1999.
CLIFFS DRILLING COMPANY
CONSOLIDATED BALANCE SHEET
(in thousands)
MARCH 31, DECEMBER 31,
2000 1999
--------- ------------
(unaudited)
ASSETS
- ------
CURRENT ASSETS:
Cash and cash equivalents $ 81,189 $ 103,730
Accounts receivable:
Trade, net 41,319 38,734
Other 6,021 10,013
Materials and supplies inventory 8,348 7,684
Drilling contracts in progress 7,700 16,674
Other current assets 8,558 7,744
--------- ---------
Total current assets 153,135 184,579
--------- ---------
INVESTMENTS IN AND ADVANCES TO
UNCONSOLIDATED INVESTEES 4,922 4,657
--------- ---------
PROPERTY AND EQUIPMENT:
Drilling 564,906 558,286
Other 4,396 4,171
--------- ---------
Total property and equipment 569,302 562,457
Accumulated depreciation, depletion and
amortization since December 1, 1998 (59,097) (49,617)
--------- ---------
Net property and equipment 510,205 512,840
--------- ---------
GOODWILL, NET OF ACCUMULATED AMORTIZATION 87,250 84,795
--------- ---------
DEFERRED CHARGES AND OTHER ASSETS 6,768 6,755
--------- ---------
TOTAL ASSETS $ 762,280 $ 793,626
========= =========
LIABILITIES AND STOCKHOLDER'S EQUITY
- ------------------------------------
CURRENT LIABILITIES:
Accounts payable - trade $ 13,995 14,211
Accrued liabilities 73,234 75,466
--------- ---------
Total current liabilities 87,229 89,677
LONG-TERM OBLIGATIONS 201,769 201,936
OTHER NONCURRENT LIABILITIES 434 1,957
DEFERRED INCOME TAXES 39,816 43,050
PAYABLE TO PARENT 10,991 28,585
--------- ---------
Total liabilities 340,239 365,205
--------- ---------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDER'S EQUITY:
Common stock, $.01 par value - -
Capital in excess of par value 405,069 405,069
Retained earnings since December 1, 1998 16,972 23,352
--------- ---------
Total stockholder's equity 422,041 428,421
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 762,280 $ 793,626
========= =========
The accompanying notes are an integral part of the interim consolidated
financial statements.
CLIFFS DRILLING COMPANY
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands)
(unaudited)
THREE MONTHS ENDED
MARCH 31,
--------------------
2000 1999
-------- --------
OPERATING REVENUES $ 75,824 $ 84,470
-------- --------
COSTS AND EXPENSES:
Operating expenses 61,983 56,895
Depreciation, depletion and amortization 10,600 9,251
General and administrative 5,957 2,387
-------- --------
Total costs and expenses 78,540 68,533
-------- --------
OPERATING INCOME (LOSS) (2,716) 15,937
-------- --------
OTHER INCOME (EXPENSE):
Interest expense (5,172) (5,278)
Interest income 1,556 466
Income from equity investees - 160
Other, net (214) (4)
-------- --------
Total other income (expense) (3,830) (4,656)
-------- --------
INCOME (LOSS) BEFORE INCOME TAXES (6,546) 11,281
INCOME TAX EXPENSE (BENEFIT) (166) 3,695
-------- --------
NET INCOME (LOSS) $ (6,380) $ 7,586
======== ========
The accompanying notes are an integral part of the interim consolidated
financial statements.
CLIFFS DRILLING COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands) (unaudited)
THREE MONTHS ENDED
MARCH 31,
-------------------
2000 1999
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (6,380) $ 7,586
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation, depletion and amortization 10,600 9,251
Deferred income taxes (3,234) 4,531
Gain on disposition of assets - (173)
Income from equity investees - (160)
Amortization of debt issue costs 229 231
Amortization of debt premium (167) (168)
Other (816) 65
Changes in assets and liabilities:
Accounts receivable 1,407 (17,171)
Materials and supplies inventory (664) 292
Drilling contracts in progress 8,974 1,731
Prepaid insurance and other prepaid expenses (814) 875
Accounts payable and other accrued liabilities (6,972) 5,646
-------- --------
Net cash provided by operating activities 2,163 12,536
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (6,846) (5,092)
Proceeds from sale of property and equipment 1 512
Acquisition of rigs and related equipment, net of
cash acquired - 436
Investments in and advances to unconsolidated investees (265) (1,097)
-------- --------
Net cash used in investing activities (7,110) (5,241)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on borrowings - (328)
Payable to parent (17,594) (482)
-------- --------
Net cash used in financing activities (17,594) (810)
-------- --------
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (22,541) 6,485
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 103,730 36,276
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 81,189 $ 42,761
======== ========
The accompanying notes are an integral part of the interim consolidated
financial statements.
CLIFFS DRILLING COMPANY
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
A) SIGNIFICANT ACCOUNTING POLICIES
INDUSTRY CONDITIONS/LIQUIDITY - Activity in the contract drilling
industry and related oil and gas service businesses deteriorated
significantly in 1999 due primarily to decreased worldwide demand for
drilling rigs and related services resulting from a substantial decline in
crude oil prices experienced in 1998 through the first quarter of 1999. In
mid 1999, crude oil prices began a recovery, but there can be no assurance
that demand for drilling rigs and related services will recover in a
similar manner. To date, demand for drilling rigs has not recovered to the
levels experienced in 1996-1998. Oil and gas companies' demand for
drilling services are a function of: 1) current and projected oil and gas
prices, 2) government taxation and concession/leasing policies, 3) the oil
and gas company's lease inventory and existing drilling commitments on
leases held, 4) the oil and gas company's free cash flow and general
funding availability, 5) the oil and gas company's internal reserve
replacement requirements, 6) geopolitical factors (e.g., the drive for
national hydrocarbons self sufficiency). The first factor is generally the
most important. In particular, the domestic shallow water market tends to
be primarily driven by the price of natural gas. Changes in demand for
exploration and production services can impact the Company's liquidity as
supply and demand factors directly affect utilization and dayrates, which
are the primary determinants of cash flow from the Company's operations. In
late 1998 and early 1999, lower crude oil and gas prices reduced
exploration and production spending, which led to significantly lower
dayrates and utilization for drilling companies, particularly in the U.S.
Gulf of Mexico. Crude oil and natural gas prices have continued to
fluctuate over the last several years. If crude oil and gas prices decline
or a weakness in crude oil and gas prices continued for an extended period,
there could be a further deterioration in both rig utilization and dayrates
which could have a material adverse effect on the Company's liquidity,
financial position and results of operations.
The ability of the Company to fund working capital, capital
expenditures and debt service in excess of cash on hand will depend upon
the success of the Company's operations. The Company believes its projected
level of cash flows from operations, which assumes an industry recovery in
2000, and cash on hand will be sufficient to satisfy the Company's short-
term and long-term liquidity requirements. However, if the Company requires
additional funds, R&B Falcon Corporation will provide such funds through
additional investments in the Company, and the Company's management
believes such funds would be available if needed.
GOODWILL - Goodwill was recorded as a result of the merger of the
Company and R&B Falcon Corporation in December 1998. Goodwill has increased
$3.0 million since December 31, 1999 as the result of an income tax
contingency incurred by the Company prior to December 1998. For the three
months ended March 31, 2000 and 1999 amortization of goodwill was $.5
million and $.4 million, respectively.
OVERHEAD ALLOCATIONS - As of July 1, 1999, R&B Falcon Corporation
provided substantially all of the Company's general and administrative
services including personnel. General and administrative expenses including
payroll costs of R&B Falcon Corporation are allocated to the Company and
other subsidiaries of R&B Falcon Corporation based on revenues. General
and administrative expenses allocated to the Company were $5.3 million for
the three months ended March 31, 2000.
NEWLY ISSUED ACCOUNTING STANDARDS - In December 1999, SEC Staff
Accounting Bulletin: No. 101 - Revenue Recognition in Financial Statements
("SAB 101") was issued. SAB 101 summarizes certain of the staff's views in
applying generally accepted accounting principles to revenue recognition in
financial statements. In March 2000, an amendment to SAB 101 was issued
allowing the Company to extend its evaluation of SAB 101 by three months.
The Company believes its accounting practices are consistent with this rule
but will complete its evaluation in the second quarter of 2000.
RECLASSIFICATION - Certain prior period amounts in the consolidated
financial statements have been reclassified for comparative purposes. Such
reclassifications had no effect on net income or the overall financial
condition of the Company.
B) CONTINGENCIES
In March 1997, an action was filed by Mobil Exploration and Producing
U.S. Inc. and affiliates, St. Mary Land & Exploration Company and
affiliates and Samuel Geary and Associates, Inc. against the Company, its
underwriters and insurance broker in the 16th Judicial District Court of
St. Mary Parish, Louisiana. The plaintiffs alleged damages amounting to in
excess of $50.0 million in connection with the drilling of a turnkey well
in 1995 and 1996. The case was tried before a jury in January and February
2000, and the jury returned a verdict of approximately $30.0 million in
favor of the plaintiffs for excess drilling costs, loss of insurance
proceeds, loss of hydrocarbons and interest. However, the trial court has
not entered a judgment on the verdict, as there are a number of matters to
be ruled upon before doing so. If a judgment is entered on such verdict,
the Company intends to appeal and believes its efforts to do so will be
successful. The Company believes all but the portion of the verdict
representing excess drilling costs of approximately $4.7 million is covered
by relevant primary and excess liability insurance policies of the Company;
however, two insurers have denied coverage and the others have reserved
their rights. If necessary, the Company intends to take appropriate legal
action to enforce its rights with respect to such policies. At this time
the Company believes adequate reserves have been established to protect the
interests of the Company in this matter.
C) LONG-TERM OBLIGATIONS
Long-term debt at March 31, 2000 consists solely of 10.25% Senior Notes
due 2003 (the "Senior Notes") in the aggregate principal amount of $199.7
million and debt premium, net of amortization, of $2.1 million. Interest on
the Senior Notes is payable semi-annually during each May and November. The
Senior Notes do not require any payments of principal prior to their stated
maturity on May 15, 2003, but the Company is required to make offers to
purchase Senior Notes upon the occurrence of certain events as defined in
the indenture, such as asset sales or a change of control of the Company.
The Senior Notes are senior unsecured obligations of the Company,
ranking pari passu in right of payment with all senior indebtedness and
senior to all subordinated indebtedness. The Senior Notes are
unconditionally guaranteed (the "Subsidiary Guarantees") on a senior
unsecured basis by the Company's principal subsidiaries (the "Subsidiary
Guarantors"). Each Subsidiary Guarantor is 100% owned by the Company. R&B
Falcon Corporation is not a guarantor of the Senior Notes.
Separate financial statements and other disclosures concerning the
Subsidiary Guarantors are not presented because management has determined
such financial statements and other disclosures are not material to
investors. The assets, equity, income and cash flows of the non-guarantor
subsidiaries on an individual and combined basis are less than 1% of the
consolidated assets, equity, income and cash flows, respectively, of the
Company and are inconsequential. The combined condensed financial
information of the Company's Subsidiary Guarantors is as follows (in
thousands):
March 31, December 31,
2000 1999
-------- -----------
Current assets $ 7,373 $ 9,677
Noncurrent assets 83,434 75,584
-------- --------
Total assets $ 90,807 $ 85,261
======== ========
Current liabilities $ 2,446 $ 2,046
Noncurrent liabilities 76,382 71,131
Equity 11,979 12,084
-------- --------
Total liabilities and equity $ 90,807 $ 85,261
======== ========
Three Months Ended
March 31,
----------------------
2000 1999
-------- --------
Revenues $ 2,724 $ 4,602
Operating income $ 64 $ 867
Net income $ 60 $ 379
D) SEGMENT INFORMATION
The Company's operating results by business segment are as follows (in
thousands):
Three Months Ended
March 31,
----------------------
2000 1999
-------- --------
Revenues:
Daywork drilling $ 26,517 $ 44,692
Engineering services 56,963 48,992
MOPU operations 1,233 1,221
Oil and gas 54 66
Corporate office - -
Eliminations (1) (8,943) (10,501)
-------- --------
Consolidated $ 75,824 $ 84,470
======== ========
Operating income (loss):
Daywork drilling $ (6,386) $ 5,835
Engineering services 9,730 12,739
MOPU operations 470 355
Oil and gas 54 1
Corporate office (6,584) (2,993)
-------- --------
Consolidated $ (2,716) $ 15,937
======== ========
(1) Eliminations consist of intersegment sales between the daywork
drilling and engineering services business segments.
In April 1998, the Company entered into a turnkey contract with PDVSA
Exploration and Production ("PDVSA") to drill 60 turnkey wells in
Venezuela. The drilling program commenced in March 1998 and the program was
expected to extend over approximately three and one-half years and to
utilize seven of the Company's land drilling rigs. However, during the
first quarter of 1999, in response to the downturn in the market and
changes in both PDVSA's management and its operating policies, PDVSA and
the Company renegotiated prices at reduced margins and in the fourth
quarter of 1999, renegotiations were made at further reduced margins. As of
March 31, 2000, the Company had completed 34 of the 60 wells with one well
in progress, which was completed in April 2000. In February 2000, PDVSA
cancelled the turnkey contract for the remaining 25 wells. Although PDVSA
cancelled its turnkey contract, some of the rigs that were working on a
turnkey basis are expected to obtain work with PDVSA or other operators on
either a dayrate or integrated services contract basis. The Company is
currently bidding on dayrate contracts with PDVSA which could utilize up to
four rigs. Also, in December 1999, the Company commenced work under a new
one-year dayrate drilling contract with PDVSA utilizing Rig 55 which had
been previously stacked.
For the three months ended March 31, 2000, revenues from PDVSA of $32.5
million ($31.9 million reported in the engineering services segment and $.6
million reported in the daywork drilling segment) accounted for 42.9% of
the Company's consolidated operating revenues. For the three months ended
March 31, 1999, revenues from PDVSA of $43.4 million (reported in the
engineering services segment) accounted for 51.4% of the Company's
consolidated operating revenues.
Total assets by segment were as follows (in thousands):
March 31, December 31,
2000 1999
--------- -----------
Daywork drilling $ 618,916 $ 624,233
Engineering services 28,271 52,831
MOPU operations 27,423 28,192
Oil and gas 420 423
Corporate office 87,250 87,947
--------- ---------
Consolidated $ 762,280 $ 793,626
========= =========
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Industry Conditions and Liquidity
Activity in the contract drilling industry and related oil and gas
service businesses deteriorated significantly in 1999 due primarily to
decreased worldwide demand for drilling rigs and related services resulting
from a substantial decline in crude oil prices experienced in 1998 through
the first quarter of 1999. In mid 1999, crude oil prices began a recovery,
but there can be no assurance that demand for drilling rigs and related
services will recover in a similar manner. To date, demand for drilling
rigs has not recovered to the levels experienced in 1996-1998. Oil and gas
companies' demand for drilling services are a function of: 1) current and
projected oil and gas prices, 2) government taxation and concession/leasing
policies, 3) the oil and gas company's lease inventory and existing
drilling commitments on leases held, 4) the oil and gas company's free cash
flow and general funding availability, 5) the oil and gas company's
internal reserve replacement requirements, 6) geopolitical factors (e.g.,
the drive for national hydrocarbons self sufficiency). The first factor is
generally the most important. In particular, the domestic shallow water
market tends to be primarily driven by the price of natural gas. Changes in
demand for exploration and production services can impact the Company's
liquidity as supply and demand factors directly affect utilization and
dayrates, which are the primary determinants of cash flow from the
Company's operations. In late 1998 and early 1999, lower crude oil and gas
prices reduced exploration and production spending, which led to
significantly lower dayrates and utilization for drilling companies,
particularly in the U.S. Gulf of Mexico. Crude oil and natural gas prices
have continued to fluctuate over the last several years. If crude oil and
gas prices decline or a weakness in crude oil and gas prices continued for
an extended period, there could be a further deterioration in both rig
utilization and dayrates which could have a material adverse effect on the
Company's liquidity, financial position and results of operations.
In addition, the Company is subject to risks inherent in foreign
operations, principally in Venezuela. In April 1998, the Company entered
into a turnkey contract with PDVSA Exploration and Production ("PDVSA") to
drill 60 turnkey wells in Venezuela. The drilling program commenced in
March 1998 and the program was expected to extend over approximately three
and one-half years and to utilize seven of the Company's land drilling
rigs. However, during the first quarter of 1999, in response to the
downturn in the market and changes in both PDVSA's management and its
operating policies, PDVSA and the Company renegotiated prices at reduced
margins and in the fourth quarter of 1999, renegotiations were made at
further reduced margins. As of March 31, 2000, the Company had completed 34
of the 60 wells with one well in progress, which was completed in April
2000. In February 2000, PDVSA cancelled the turnkey contract for the
remaining 25 wells. Although PDVSA cancelled its turnkey contract, some of
the rigs that were working on a turnkey basis are expected to obtain work
with PDVSA or other operators on either a dayrate or integrated services
contract basis. The Company is currently bidding on dayrate contracts with
PDVSA which could utilize up to four rigs. Also, in December 1999, the
Company commenced work under a new one-year dayrate drilling contract with
PDVSA utilizing Rig 55 which had been previously stacked.
The ability of the Company to fund working capital, capital
expenditures and debt service in excess of cash on hand will depend upon
the success of the Company's operations. The Company believes its projected
level of cash flows from operations, which assumes an industry recovery in
2000, and cash on hand will be sufficient to satisfy the Company's short-
term and long-term liquidity requirements. However, if the Company requires
additional funds, R&B Falcon Corporation will provide such funds through
additional investments in the Company, and the Company's management
believes such funds would be available if needed.
Results of Operations
The Company recognized a net loss of $6.4 million for the three months
ended March 31, 2000 compared to net income of $7.6 million for the same
period in 1999. Such decrease in net income is primarily due to the
following: revenues decreased $8.6 million due to a decrease in daywork
drilling due to lower utilization and dayrates, offset by an increase in
engineering services due to an increase in the number of turnkey wells
completed in the period. The Company completed 14 turnkey wells for the
three months ended March 31, 2000 compared to six for the same period in
1999. Operating expenses increased $5.1 million primarily due to the
increase in the number of turnkey wells completed in the period, offset
partially by lower operating expenses for daywork drilling due to lower
utilization. Depreciation, depletion and amortization increased $1.3
million primarily due to a decrease in the amount of depreciation being
deferred at March 31, 2000 as compared to March 31, 1999. As the Company's
turnkey operations utilize the Company's land rigs, depreciation on such
land rigs is deferred until the well is completed. The Company had four
turnkey wells in progress at March 31, 2000 compared to eight turnkey wells
in progress at March 31, 1999. General and administrative expenses
increased $3.6 million despite reduced overhead costs as a result of the
merger with R&B Falcon Corporation primarily due to a $5.3 million overhead
allocation from R&B Falcon Corporation for the three months ended March 31,
2000. Interest income increased $1.1 million primarily due to increased
cash balances. Income tax expense decreased $3.9 million primarily due to
the Company incurring a pretax loss offset by the lack of creditability of
certain foreign tax credits and other revised tax estimates.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The Company is exposed to changes in interest rates with respect to
its debt obligation. The Company's debt obligation as of March 31, 2000
consists of Senior Notes in the aggregate principal amount of $199.7
million and debt premium, net of amortization, of $2.1 million at a fixed
rate of 10.25% due 2003. The estimated fair value of the Company's debt
obligation at March 31, 2000 was $199.7 million.
PART II OTHER INFORMATION
Item 1. Legal Proceedings
In March 1997, an action was filed by Mobil Exploration and Producing
U.S. Inc. and affiliates, St. Mary Land & Exploration Company and
affiliates and Samuel Geary and Associates, Inc. against the Company, its
underwriters and insurance broker in the 16th Judicial District Court of
St. Mary Parish, Louisiana. The plaintiffs alleged damages amounting to in
excess of $50.0 million in connection with the drilling of a turnkey well
in 1995 and 1996. The case was tried before a jury in January and February
2000, and the jury returned a verdict of approximately $30.0 million in
favor of the plaintiffs for excess drilling costs, loss of insurance
proceeds, loss of hydrocarbons and interest. However, the trial court has
not entered a judgment on the verdict, as there are a number of matters to
be ruled upon before doing so. If a judgment is entered on such verdict,
the Company intends to appeal and believes its efforts to do so will be
successful. The Company believes all but the portion of the verdict
representing excess drilling costs of approximately $4.7 million is covered
by relevant primary and excess liability insurance policies of the Company;
however, two insurers have denied coverage and the others have reserved
their rights. If necessary, the Company intends to take appropriate legal
action to enforce its rights with respect to such policies. At this time
the Company believes adequate reserves have been established to protect the
interests of the Company in this matter.
The Company is involved in various other legal actions arising in the
normal course of business. After taking into consideration the evaluation
of such actions by counsel for the Company, management is of the opinion
that the outcome of all known and potential claims and litigation will not
have a material adverse effect on the Company's business or consolidated
financial position or results of operations.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 - Financial Data Schedule. (Exhibit 27 is being submitted as an
exhibit only in the electronic format of this Quarterly Report on
Form 10-Q being submitted to the Securities and Exchange
Commission.)
(b) Reports on Form 8-K
There were no Current Reports on Form 8-K filed during the three
months ended March 31, 2000.
SIGNATURE
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 thereunto duly authorized.
CLIFFS DRILLING COMPANY
Date: May 12, 2000 By: /s/T. W. Nagle
------------------------
T. W. Nagle
Vice President
(Principal Accounting and
Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Statements of Operations and the Consolidated Balance Sheets and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-2000 DEC-31-1999
<PERIOD-START> JAN-01-2000 JAN-01-1999
<PERIOD-END> MAR-31-2000 MAR-31-1999
<CASH> 81,189 42,761
<SECURITIES> 0 0
<RECEIVABLES> 50,919 68,310
<ALLOWANCES> 3,579 472
<INVENTORY> 8,348 10,822
<CURRENT-ASSETS> 153,135 153,285
<PP&E> 569,302 529,878
<DEPRECIATION> 59,097 22,516
<TOTAL-ASSETS> 762,280 768,828
<CURRENT-LIABILITIES> 87,221 60,170
<BONDS> 201,769 202,439
0 0
0 0
<COMMON> 0 0
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<TOTAL-LIABILITY-AND-EQUITY> 762,280 768,828
<SALES> 75,824 84,470
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<CGS> 61,683 56,895
<TOTAL-COSTS> 78,540 68,533
<OTHER-EXPENSES> (1,342) (622)
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<INTEREST-EXPENSE> 5,172 5,278
<INCOME-PRETAX> (6,546) 11,281
<INCOME-TAX> (166) 3,695
<INCOME-CONTINUING> (6,380) 7,586
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (6,380) 7,586
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<EPS-DILUTED> 0 0
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