SUPERIOR ENERGY ANNOUNCES SECOND QUARTER 2000 RESULTS
COMPANY ACQUIRES ASSETS OF AMBAR, INC.'S PRODUCTION SERVICES DIVISION
HARVEY, La. -- July 27, 2000--Superior Energy Services, Inc.
(NASDAQ: SESI) today announced earnings for the second quarter ended June
30, 2000. For the quarter, revenues were $57.6 million resulting in net income
of $3.8 million or $0.06 diluted earnings per share, as compared to revenue of
$16.3 million and a net loss of $(4.4) million or $(0.75) per share for the
second quarter of 1999.
For the six months ended June 30, 2000, the Company recorded revenue of $104.9
million and net income of $5.4 million or $0.09 diluted earnings per share, as
compared to revenue of $35.2 million and a net loss of $(4.8) million or $(0.96)
diluted loss per share for the same period a year ago.
"As anticipated, activity levels were up across most divisions as compared to
the first quarter, led by a 48% increase in marine revenue and a 30% increase in
well services revenue," said Terry Hall, Superior Energy Services' President
and CEO. "These increases can be attributed to increased dayrates and
utilization for our liftboat fleet and greater demand for production-enhancement
services in the Gulf of Mexico. As our customers continue to focus on enhancing
recovery from existing shallow water reservoirs, we have seen demand rise for
our coiled tubing, pumping and stimulation, electric line and data acquisition
services."
As a result of the merger with Cardinal Holding Corp. in July 1999, and the
acquisition of Production Management Companies in November 1999, analysis and
comparison of the second quarter and six months 1999 results with the second
quarter and six months 2000 results will be difficult given the fact that all
historical numbers presented herein for periods prior to July 15, 1999 represent
the results of Cardinal on a stand alone basis.
Superior Acquires the Assets of AMBAR's Production Services Division
The Company also announced today the acquisition of the assets of AMBAR, Inc.'s
Production Services Division (PSD) for $9.5 million in cash. PSD provides coiled
tubing, pumping, stimulation, nitrogen, pipeline remediation and related
services to restore lost production from oil and gas wells in the Gulf of Mexico
and along the Gulf Coast.
Through this acquisition, Superior Energy Services will double its fleet of
coiled tubing units from seven to 14. PSD, which has operations facilities in
Lafayette, Louisiana and Alice, Texas, also owns and operates four thermal fluid
units which are used to heat stimulation chemicals and other fluids for a
variety of production-enhancing applications. In addition, PSD developed the
Startac(TM) system which encompasses mechanical, chemical and thermal technology
to provide efficient and mechanical pipeline cleaning services.
"Through its coiled tubing, nitrogen and pipeline remediation services, AMBAR's
Production Services Division has established a unique niche in the Gulf of
Mexico and Gulf Coast production services market," Hall said. "PSD's
foundation has been built on providing a full suite of products and services
that solve production-related problems. These products and services, coupled
with Superior's core well services operations, can be bundled to provide Gulf of
Mexico and Gulf Coast operators with a broad range of post wellhead
intervention, maintenance, evaluation and abandonment services."
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, coiled tubing services and engineering services.
Additional services provided include contract operating and supplemental labor,
offshore construction and maintenance services, 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.
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SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Three and Six Months Ended June 30, 2000 and 1999
(in thousands, except earnings per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues $ 57,592 $ 16,267 $104,866 $ 35,245
-------- -------- -------- --------
Costs and expenses:
Cost of services 33,931 13,429 61,693 23,935
Depreciation
and amortization 4,935 2,187 9,672 4,127
General and
administrative 9,673 3,671 18,984 7,348
-------- -------- -------- --------
Total costs
and expenses 48,539 19,287 90,349 35,410
-------- -------- -------- --------
Income (loss)
from operations 9,053 (3,020) 14,517 (165)
Other income (expense):
Interest expense (3,068) (3,508) (5,988) (6,914)
Interest income 641 -- 834 --
-------- -------- -------- --------
Income (loss) before
income taxes 6,626 (6,528) 9,363 (7,079)
Income taxes 2,783 (2,167) 3,932 (2,265)
-------- -------- -------- --------
Net income (loss) $ 3,843 $ (4,361) $ 5,431 $ (4,814)
======== ======== ======== ========
Basic earnings
(loss) per share $ 0.06 $ (0.75) $ 0.09 $ (0.96)
======== ======== ======== ========
Diluted earnings
(loss) per share $ 0.06 $ (0.75) $ 0.09 $ (0.96)
======== ======== ======== ========
Weighted average common
shares used in computing
earnings (loss) per
share:
Basic 64,643 6,728 62,250 6,409
======== ======== ======== ========
Diluted 65,205 6,728 62,404 6,409
======== ======== ======== ========
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<CAPTION>
Condensed Consolidated Balance Sheets
June 30, 2000 and December 31, 1999
(in thousands)
06/30/2000 12/31/1999
--------- ---------
<S> <C> <C>
ASSETS
Current assets $ 77,006 $ 56,122
Property, plant and equipment - net 164,725 134,723
Goodwill - net 85,754 78,641
Note receivable 18,598 8,898
Other assets - net 3,801 3,871
--------- ---------
Total assets $ 349,884 $ 282,255
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 29,413 $ 30,917
Long-term debt, less current portion 115,890 117,459
Deferred income taxes 13,236 12,392
Stockholders' equity 191,345 121,487
--------- ---------
Total liabilities
and stockholders' equity $ 349,884 $ 282,255
========= =========
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<CAPTION>
Superior Energy Services, Inc.
Revenue and Gross Profit Breakdown
(Unaudited)
Three Months Ended June 30, 2000
($ in millions) Revenue Gross Profit GP %
------- ------------ -----
<S> <C> <C> <C>
Well Services $ 12.6 $ 4.6 35.9%
Wireline 7.9 2.2 28.1%
Marine 7.8 3.3 42.3%
Rental Tools 15.4 10.4 67.7%
Environmental 4.5 1.9 41.5%
Field Management 8.7 1.0 11.8%
Other 0.7 0.3 46.1%
------- ------------ -----
Total $ 57.6 $ 23.7 41.1%
======= ============ =====
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<TABLE>
<CAPTION>
Superior Energy Services, Inc.
Revenue and Gross Profit Breakdown
(Unaudited)
Six Months Ended June 30, 2000
($ in millions) Revenue Gross Profit GP %
------- ------------ -----
<S> <C> <C> <C>
Well Services $ 22.3 $ 7.9 35.4%
Wireline 15.5 4.7 30.4%
Marine 13.0 5.0 38.4%
Rental Tools 28.8 19.8 68.6%
Environmental 8.1 3.3 40.6%
Field Management 14.8 1.4 9.8%
Other 2.3 1.1 46.8%
------- ------------ -----
Total $ 104.9 $ 43.2 41.2%
======= ============ =====
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Contact:
Superior Energy Services Inc., Harvey
Terence Hall/Robert Taylor/Greg Rosenstein, 504/362-4321
