HOUSTON, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Superior Energy Services, Inc. (the “Company”) filed its Form 10-Q for the period ended September 30, 2024. In accordance with the Company’s Shareholders Agreement, it will host a conference call with shareholders on November 1, 2024.
For the third quarter of 2024, the Company reported net income from continuing operations of $21.9 million, or $1.09 per diluted share, with revenue of $197.3 million. This compares to net income from continuing operations of $29.5 million or $1.46 per diluted share, with revenue of $201.1 million, for the second quarter of 2024.
The Company’s Adjusted EBITDA (a non-GAAP measure defined on page 4) was $57.8 million compared to $60.0 million for the second quarter of 2024. Refer to pages 11 and 12 for a reconciliation of Adjusted EBITDA to GAAP results.
Third Quarter 2024 Geographic Breakdown
U.S. land revenue was $36.0 million for the third quarter of 2024, a decrease of 8% compared to revenue of $39.0 million for the second quarter of 2024. The decline in U.S. land revenue was primarily driven by decreased activity from our premium drill pipe and bottom hole accessories product lines within our Rentals segment, consistent with a reduced U.S. land rig count.
U.S. offshore revenue was $49.7 million in the third quarter of 2024, a decrease of 8% compared to revenue of $53.8 million in the second quarter of 2024. U.S. offshore revenue decreased primarily in our Well Services segments, with the most significant decline coming from our project-based completion services product line. U.S. Offshore revenue in the Rentals segment for the third quarter of 2024 was up $1.6 million versus the second quarter of 2024, despite approximately $1.0 million of revenue slipping to the fourth quarter of 2024 due to hurricane activity in September.
International revenue was $111.6 million in the third quarter of 2024, an increase of 3% compared to revenue of $108.4 million in the second quarter of 2024. International revenue was up across both our Rentals and Well Services segments, with the increase being driven by our hydraulic snubbing and well control services product lines.
Third Quarter 2024 Segment Reporting
The Rentals segment revenue in the third quarter of 2024 was $97.9 million, a 2% decrease compared to revenue of $99.9 million in the second quarter of 2024, primarily driven by reduced activity in U.S. land and hurricane disruptions in the U.S. offshore market. In the third quarter of 2024, Rentals segment income from operations was $43.9 million as compared to $44.1 million in the second quarter of 2024. Adjusted EBITDA was $55.9 million, a decrease from $56.0 million in the second quarter of 2024. Adjusted EBITDA Margin (a non-GAAP measure defined on page 4) was 57%, a 1% increase from the second quarter of 2024.
The Well Services segment revenue in the third quarter of 2024 was $99.5 million, a 2% decrease compared to revenue of $101.2 million in the second quarter of 2024 and income from operations for the third quarter of 2024 was $3.8 million as compared to $10.7 million in the second quarter of 2024. Adjusted EBITDA for the third quarter of 2024 was $15.4 million with an Adjusted EBITDA Margin of 16%, as compared to Adjusted EBITDA of $19.1 million with an Adjusted EBITDA Margin of 19% in the second quarter of 2024. The Well Services segment sequential decline was primarily driven by lower activity in our project-based completion services product line.
Liquidity
As of September 30, 2024, the Company had cash, cash equivalents, and restricted cash of approximately $380.6 million. As of September 30, 2024, our borrowing base, as defined in our credit agreement, was approximately $89.9 million, and we had $39.5 million in letters of credit outstanding which reduced the borrowing availability to $50.4 million. At September 30, 2024, we had no outstanding borrowings under our credit facility.
During the third quarter of 2024, we utilized an indirect foreign exchange mechanism known as a Blue Chip Swap. The transactions were completed at implied exchange rates that were approximately 63.0% higher than the official exchange rate, resulting in a loss of approximately $5.1 million during the third quarter of 2024.
During the third quarter of 2024, net cash from operating activities was $62.5 million. Free Cash Flow (a non-GAAP measure defined on page 4) for the third quarter of 2024 totaled $50.5 million as compared to $39.0 million for the second quarter of 2024. Refer to page 8 for a reconciliation of Free Cash Flow to Net Cash from Operating Activities.
Third quarter 2024 capital expenditures were $12.0 million. The Company expects total capital expenditures for 2024 to be approximately $100 to $110 million. Approximately 91% of total 2024 capital expenditures are targeted for the replacement of existing assets. Of the total estimated 2024 capital expenditures, approximately 68% is expected to be invested in the Rentals segment.
2024 Guidance
Our full year 2024 guidance remains consistent from the second quarter 2024 guidance. We expect 2024 revenue to come in at a range of $780 million to $840 million with 2024 Adjusted EBITDA expected to be in a range of $235 million to $265 million.
Conference Call Information
The Company’s management team will host a conference call on Friday, November 1, 2024, at 10:00 a.m. Eastern Time. The call will be available via live webcast in the “Events” section at ir.superiorenergy.com. To access via phone, participants can register for the call here, where they will be provided a phone number and access code. The call will be available for replay until November 1, 2025 on Superior’s website at ir.superiorenergy.com. If you are a shareholder and would like to submit a question, please email your question beforehand to Jamie Spexarth at ir@superiorenergy.com.
About Superior Energy Services
Superior Energy Services serves the drilling, completion and production-related needs of oil and gas companies worldwide through a diversified portfolio of specialized oilfield services and equipment that are used throughout the economic life cycle of oil and gas wells. For more information, visit: www.superiorenergy.com.
Non-GAAP Financial Measures
To supplement Superior’s consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also uses Adjusted EBITDA and Adjusted EBITDA Margin. Management uses Adjusted EBITDA and Adjusted EBITDA Margin internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company also believes these non-GAAP measures provide investors useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. Non-GAAP financial measures are not recognized measures for financial statement presentation under U.S. GAAP and do not have standardized meanings and may not be comparable to similar measures presented by other public companies. Adjusted EBITDA and Adjusted EBITDA Margin should be considered as supplements to, and not as substitutes for, or superior to, the corresponding measures calculated in accordance with GAAP. We define Adjusted EBITDA as net income (loss) from continuing activities before net interest expense, income tax expense (benefit) and depreciation, amortization, accretion and depletion, restructuring and transaction expenses, adjusted for other gains and losses and other expenses, net, which management does not consider representative of our ongoing operations. We define Adjusted EBITDA Margin as Adjusted EBITDA by segment as a percentage of segment revenues. For a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure, please see the tables under “―Superior Energy Services, Inc. and Subsidiaries Reconciliation of Adjusted EBITDA” and “—Superior Energy Services, Inc. and Subsidiaries Reconciliation of Adjusted EBITDA by Segment” included on pages 11 and 12 of this press release.
Free Cash Flow is defined as net cash from operating activities less payments for capital expenditures. Free Cash Flow is considered a non-GAAP financial measure under the SEC’s rules. Management believes, however, that Free Cash Flow is an important financial measure for use in evaluating the Company’s financial performance, as it measures our ability to generate additional cash from our business operations. Free Cash Flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of Free Cash Flow is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Therefore, we believe it is important to view Free Cash Flow as supplemental to our entire Statement of Cash Flows. Please see table under “—Condensed Consolidated Statements of Cash Flows” included on page 8 of this press release.
The Company is unable to provide a reconciliation of the forward-looking non-GAAP financial measure, Adjusted EBITDA, contained in this press release to its most directly comparable GAAP financial measure, net income, as the information necessary for a quantitative reconciliation of the forward-looking non-GAAP financial measure to its respective most directly comparable GAAP financial measure is not (and was not, when prepared) available to the Company without unreasonable efforts due to the inherent difficulty and impracticability of predicting certain amounts required by GAAP with a reasonable degree of accuracy. Net income includes the impact of depreciation, income taxes and certain other items that impact comparability between periods, which may be significant and are difficult to project with a reasonable degree of accuracy. In addition, we believe such reconciliation could imply a degree of precision that might be confusing or misleading to investors. The probable significance of providing this forward-looking non-GAAP financial measure without the directly comparable GAAP financial measure is that such GAAP financial measure may be materially different from the corresponding non-GAAP financial measure.
Forward-Looking Statements
This press release contains, and future oral or written statements or press releases by the Company and its management may contain, certain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Generally, the words “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks”, “will,” “could,” “may” and “estimates,” variations of such words and similar expressions identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact regarding the Company’s financial position and results, financial performance, liquidity, market outlook, future capital needs, capital allocation plans, business strategies and other plans and objectives of our management for future operations and activities are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company’s management in light of its experience and prevailing circumstances on the date such statements are made. Such forward-looking statements, and the assumptions on which they are based, are inherently speculative and are subject to a number of risks and uncertainties, including but not limited to conditions in the oil and gas industry, U.S. and global market and economic conditions generally and macroeconomic conditions worldwide (including inflation, interest rates, supply chain disruptions and capital and credit markets conditions) and other uncertainties (such as the war in Ukraine and conflict in Israel and broader geopolitical tensions in the Middle East and eastern Europe) that could cause the Company’s actual results to differ materially from such statements. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside the control of the Company, which could cause actual results to differ materially from such statements.
While the Company believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business.
These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in the Company’s Form 10-K for the year ended December 31, 2023 and subsequent reports on Form 10-Qs and those set forth from time to time in the Company’s other periodic filings with the Securities and Exchange Commission, which are available at www.superiorenergy.com. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.
| SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Rentals | $ | 97,857 | $ | 99,851 | $ | 113,201 | $ | 305,799 | $ | 334,433 | |||||||||
| Well Services | 99,450 | 101,230 | 97,184 | 301,223 | 340,562 | ||||||||||||||
| Total revenues | 197,307 | 201,081 | 210,385 | 607,022 | 674,995 | ||||||||||||||
| Rentals | 35,227 | 36,596 | 37,769 | 109,589 | 109,258 | ||||||||||||||
| Well Services | 74,172 | 71,672 | 72,076 | 214,717 | 239,062 | ||||||||||||||
| Total cost of revenues | 109,399 | 108,268 | 109,845 | 324,306 | 348,320 | ||||||||||||||
| Depreciation, depletion, amortization and accretion | 21,077 | 20,868 | 20,490 | 62,392 | 61,250 | ||||||||||||||
| General and administrative expenses | 33,458 | 33,404 | 30,089 | 101,837 | 92,256 | ||||||||||||||
| Restructuring and transaction expenses | 5,891 | - | - | 5,891 | 1,983 | ||||||||||||||
| Other gains, net | (133 | ) | (614 | ) | (4,073 | ) | (1,829 | ) | (5,424 | ) | |||||||||
| Income from operations | 27,615 | 39,155 | 54,034 | 114,425 | 176,610 | ||||||||||||||
| Other income (expense): | |||||||||||||||||||
| Interest income, net | 5,032 | 5,760 | 6,629 | 17,632 | 18,581 | ||||||||||||||
| Loss on Blue Chip Swaps | (5,113 | ) | - | (12,120 | ) | (5,113 | ) | (12,120 | ) | ||||||||||
| Other income (expense) | 979 | (2,082 | ) | (4,520 | ) | (2,916 | ) | (8,508 | ) | ||||||||||
| Income from continuing operations before income taxes | 28,513 | 42,833 | 44,023 | 124,028 | 174,563 | ||||||||||||||
| Income tax expense | (6,597 | ) | (13,370 | ) | (11,403 | ) | (34,754 | ) | (44,615 | ) | |||||||||
| Net income from continuing operations | 21,916 | 29,463 | 32,620 | 89,274 | 129,948 | ||||||||||||||
| Income from discontinued operations, net of income tax | - | 1,896 | 128 | 1,896 | 408 | ||||||||||||||
| Net income | $ | 21,916 | $ | 31,359 | $ | 32,748 | $ | 91,170 | $ | 130,356 | |||||||||
| Income per share - basic: | |||||||||||||||||||
| Net income from continuing operations | $ | 1.09 | $ | 1.46 | $ | 1.62 | $ | 4.43 | $ | 6.46 | |||||||||
| Income from discontinued operations, net of income tax | - | 0.09 | 0.01 | 0.09 | 0.02 | ||||||||||||||
| Net income | $ | 1.09 | $ | 1.55 | $ | 1.63 | $ | 4.52 | $ | 6.48 | |||||||||
| Income per share - diluted | |||||||||||||||||||
| Net income from continuing operations | $ | 1.09 | $ | 1.46 | $ | 1.62 | $ | 4.42 | $ | 6.45 | |||||||||
| Income from discontinued operations, net of income tax | - | 0.09 | - | 0.10 | 0.02 | ||||||||||||||
| Net income | $ | 1.09 | $ | 1.55 | $ | 1.62 | $ | 4.52 | $ | 6.47 | |||||||||
| Weighted-average shares outstanding | |||||||||||||||||||
| Basic | 20,177 | 20,172 | 20,136 | 20,170 | 20,123 | ||||||||||||||
| Diluted | 20,186 | 20,183 | 20,159 | 20,182 | 20,144 | ||||||||||||||
| SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands, unaudited) | |||||||
| September 30, | December 31, | ||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 325,881 | $ | 391,684 | |||
| Accounts receivable, net | 200,106 | 276,868 | |||||
| Inventory | 70,293 | 74,995 | |||||
| Income taxes receivable | 13,383 | 10,542 | |||||
| Prepaid expenses | 23,363 | 18,614 | |||||
| Other current assets | 7,765 | 7,922 | |||||
| Total current assets | 640,791 | 780,625 | |||||
| Property, plant and equipment, net | 306,285 | 294,960 | |||||
| Note receivable | 72,694 | 69,005 | |||||
| Restricted cash | 54,707 | 85,444 | |||||
| Deferred tax assets | 59,555 | 67,241 | |||||
| Other assets, net | 42,319 | 43,718 | |||||
| Total assets | $ | 1,176,351 | $ | 1,340,993 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 38,897 | $ | 38,214 | |||
| Accrued expenses | 106,203 | 103,782 | |||||
| Income taxes payable | 20,100 | 20,220 | |||||
| Decommissioning liability | 30,747 | 21,631 | |||||
| Total current liabilities | 195,947 | 183,847 | |||||
| Decommissioning liability | 140,030 | 148,652 | |||||
| Other liabilities | 38,599 | 47,583 | |||||
| Total liabilities | 374,576 | 380,082 | |||||
| Total equity | 801,775 | 960,911 | |||||
| Total liabilities and equity | $ | 1,176,351 | $ | 1,340,993 | |||
| SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Cash flows from operating activities | |||||||||||||||||||
| Net income | $ | 21,916 | $ | 31,359 | $ | 32,748 | $ | 91,170 | $ | 130,356 | |||||||||
| Adjustments to reconcile net loss to net cash from operating activities: | |||||||||||||||||||
| Depreciation, depletion, amortization and accretion | 21,077 | 20,868 | 20,490 | 62,392 | 61,250 | ||||||||||||||
| Loss on Blue Chip Swaps | 5,113 | - | 12,120 | 5,113 | 12,120 | ||||||||||||||
| Washington State Tax Settlement | - | - | - | - | (27,068 | ) | |||||||||||||
| Decommissioning costs | (5,111 | ) | (143 | ) | (3,401 | ) | (5,684 | ) | (6,279 | ) | |||||||||
| Other non-cash items | (2,642 | ) | 4,205 | 566 | 4,798 | 23,357 | |||||||||||||
| Changes in operating assets and liabilities: | 22,162 | 17,487 | (10,112 | ) | 67,396 | (38,390 | ) | ||||||||||||
| Net cash from operating activities | 62,515 | 73,776 | 52,411 | 225,185 | 155,346 | ||||||||||||||
| Cash flows from investing activities | |||||||||||||||||||
| Payments for capital expenditures | (12,005 | ) | (34,744 | ) | (21,592 | ) | (67,447 | ) | (67,218 | ) | |||||||||
| Proceeds from sales of assets | 292 | 669 | 9,563 | 3,577 | 24,710 | ||||||||||||||
| Proceeds from sales of Blue Chip Swap securities | 8,121 | - | 9,656 | 8,121 | 9,656 | ||||||||||||||
| Purchases of Blue Chip Swap securities | (13,234 | ) | - | (21,776 | ) | (13,234 | ) | (21,776 | ) | ||||||||||
| Net cash from investing activities | (16,826 | ) | (34,075 | ) | (24,149 | ) | (68,983 | ) | (54,628 | ) | |||||||||
| Cash flows from financing activities | |||||||||||||||||||
| Distributions to shareholders | - | - | - | (250,417 | ) | - | |||||||||||||
| Repurchase of shares | - | - | - | (962 | ) | - | |||||||||||||
| Other | (358 | ) | - | - | (1,363 | ) | (1,116 | ) | |||||||||||
| Net cash from financing activities | (358 | ) | - | - | (252,742 | ) | (1,116 | ) | |||||||||||
| Net change in cash, cash equivalents, and restricted cash | 45,331 | 39,701 | 28,262 | (96,540 | ) | 99,602 | |||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 335,257 | 295,556 | 410,447 | 477,128 | 339,107 | ||||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 380,588 | $ | 335,257 | $ | 438,709 | $ | 380,588 | $ | 438,709 | |||||||||
| Reconciliation of Free Cash Flow | |||||||||||||||||||
| Net cash from operating activities | $ | 62,515 | $ | 73,776 | $ | 52,411 | $ | 225,185 | $ | 155,346 | |||||||||
| Payments for capital expenditures | (12,005 | ) | (34,744 | ) | (21,592 | ) | (67,447 | ) | (67,218 | ) | |||||||||
| Free Cash Flow | $ | 50,510 | $ | 39,032 | $ | 30,819 | $ | 157,738 | $ | 88,128 | |||||||||
| Free Cash Flow is a Non-GAAP measure. See Non-GAAP Financial Measures for our definition of Free Cash Flow. | |||||||||||||||||||
| SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||
| REVENUE BY GEOGRAPHIC REGION BY SEGMENT | |||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| U.S. land | |||||||||||||||||||
| Rentals | $ | 28,934 | $ | 32,713 | $ | 37,478 | $ | 100,653 | $ | 127,341 | |||||||||
| Well Services | 7,027 | 6,242 | 8,223 | 20,735 | 20,384 | ||||||||||||||
| Total U.S. land | 35,961 | 38,955 | 45,701 | 121,388 | 147,725 | ||||||||||||||
| U.S. offshore | |||||||||||||||||||
| Rentals | 32,228 | 30,644 | 44,681 | 100,123 | 117,867 | ||||||||||||||
| Well Services | 17,489 | 23,125 | 14,459 | 69,486 | 54,185 | ||||||||||||||
| Total U.S. offshore | 49,717 | 53,769 | 59,140 | 169,609 | 172,052 | ||||||||||||||
| International | |||||||||||||||||||
| Rentals | 36,695 | 36,494 | 31,042 | 105,023 | 89,225 | ||||||||||||||
| Well Services | 74,934 | 71,863 | 74,502 | 211,002 | 265,993 | ||||||||||||||
| Total International | 111,629 | 108,357 | 105,544 | 316,025 | 355,218 | ||||||||||||||
| Total Revenues | $ | 197,307 | $ | 201,081 | $ | 210,385 | $ | 607,022 | $ | 674,995 | |||||||||
| SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||
| SEGMENT HIGHLIGHTS | |||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Revenues | |||||||||||||||||||
| Rentals | $ | 97,857 | $ | 99,851 | $ | 113,201 | $ | 305,799 | $ | 334,433 | |||||||||
| Well Services | 99,450 | 101,230 | 97,184 | 301,223 | 340,562 | ||||||||||||||
| Total Revenues | $ | 197,307 | $ | 201,081 | $ | 210,385 | $ | 607,022 | $ | 674,995 | |||||||||
| Income (loss) from Operations | |||||||||||||||||||
| Rentals | $ | 43,856 | $ | 44,061 | $ | 56,253 | $ | 139,128 | $ | 167,373 | |||||||||
| Well Services | 3,789 | 10,686 | 10,581 | 27,867 | 50,860 | ||||||||||||||
| Corporate and other | (20,030 | ) | (15,592 | ) | (12,800 | ) | (52,570 | ) | (41,623 | ) | |||||||||
| Income from operations | $ | 27,615 | $ | 39,155 | $ | 54,034 | $ | 114,425 | $ | 176,610 | |||||||||
| Adjusted EBITDA | |||||||||||||||||||
| Rentals | $ | 55,915 | $ | 56,023 | $ | 68,791 | $ | 174,959 | $ | 204,632 | |||||||||
| Well Services | 15,427 | 19,078 | 15,137 | 56,028 | 69,697 | ||||||||||||||
| Corporate and other | (13,576 | ) | (15,078 | ) | (12,125 | ) | (45,096 | ) | (37,207 | ) | |||||||||
| Total Adjusted EBITDA | $ | 57,766 | $ | 60,023 | $ | 71,803 | $ | 185,891 | $ | 237,122 | |||||||||
| Adjusted EBITDA Margin | |||||||||||||||||||
| Rentals | 57 | % | 56 | % | 61 | % | 57 | % | 61 | % | |||||||||
| Well Services | 16 | % | 19 | % | 16 | % | 19 | % | 20 | % | |||||||||
| Corporate and other | n/a | n/a | n/a | n/a | n/a | ||||||||||||||
| Total Adjusted EBITDA Margin | 29 | % | 30 | % | 34 | % | 31 | % | 35 | % | |||||||||
| Adjusted EBITDA is a Non-GAAP measure. See Non-GAAP Financial Measures for our definition of Adjusted EBITDA and pages 11 and 12 for a reconciliation to income (loss) from operations. | |||||||||||||||||||
| SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||
| RECONCILIATION OF ADJUSTED EBITDA | |||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Net income from continuing operations | $ | 21,916 | $ | 29,463 | $ | 32,620 | $ | 89,274 | $ | 129,948 | |||||||||
| Depreciation, depletion, amortization and accretion | 21,077 | 20,868 | 20,490 | 62,392 | 61,250 | ||||||||||||||
| Interest income, net | (5,032 | ) | (5,760 | ) | (6,629 | ) | (17,632 | ) | (18,581 | ) | |||||||||
| Income tax expense | 6,597 | 13,370 | 11,403 | 34,754 | 44,615 | ||||||||||||||
| Restructuring expenses and other adjustments (1) | 9,074 | - | (2,721 | ) | 9,074 | (738 | ) | ||||||||||||
| Loss on Blue Chip Swap Securities | 5,113 | - | 12,120 | 5,113 | 12,120 | ||||||||||||||
| Other (income) expense, net | (979 | ) | 2,082 | 4,520 | 2,916 | 8,508 | |||||||||||||
| Adjusted EBITDA | $ | 57,766 | $ | 60,023 | $ | 71,803 | $ | 185,891 | $ | 237,122 | |||||||||
| Adjusted EBITDA is a Non-GAAP measure. See Non-GAAP Financial Measures for our definition of Adjusted EBITDA. | |||||||||||||||||||
| (1) Restructuring expenses and other adjustments for the three and nine months ended September 30, 2024 relate to costs associated with changes in our executive management and other restructuring costs. Adjustments for the three and nine months ended September 30, 2023 relate to exit and disposal activities related to non-core businesses and other restructuring costs. | |||||||||||||||||||
| SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES | |||||||||||||||||||
| RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT | |||||||||||||||||||
| (in thousands, unaudited) | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Rentals | |||||||||||||||||||
| Income from operations | $ | 43,856 | $ | 44,061 | $ | 56,253 | $ | 139,128 | $ | 167,373 | |||||||||
| Depreciation, depletion, amortization and accretion | 12,059 | 11,962 | 12,538 | 35,831 | 37,259 | ||||||||||||||
| Adjusted EBITDA | $ | 55,915 | $ | 56,023 | $ | 68,791 | $ | 174,959 | $ | 204,632 | |||||||||
| Well Services | |||||||||||||||||||
| Income from operations | $ | 3,789 | $ | 10,686 | $ | 10,581 | $ | 27,867 | $ | 50,860 | |||||||||
| Depreciation, depletion, amortization and accretion | 8,455 | 8,392 | 7,277 | 24,978 | 21,558 | ||||||||||||||
| Restructuring expenses and other adjustments(1) | 3,183 | - | (2,721 | ) | 3,183 | (2,721 | ) | ||||||||||||
| Adjusted EBITDA | $ | 15,427 | $ | 19,078 | $ | 15,137 | $ | 56,028 | $ | 69,697 | |||||||||
| Corporate | |||||||||||||||||||
| Loss from operations | $ | (20,030 | ) | $ | (15,592 | ) | $ | (12,800 | ) | $ | (52,570 | ) | $ | (41,623 | ) | ||||
| Depreciation, depletion, amortization and accretion | 563 | 514 | 675 | 1,583 | 2,433 | ||||||||||||||
| Restructuring expenses and other adjustments (1) | 5,891 | - | - | 5,891 | 1,983 | ||||||||||||||
| Adjusted EBITDA | $ | (13,576 | ) | $ | (15,078 | ) | $ | (12,125 | ) | $ | (45,096 | ) | $ | (37,207 | ) | ||||
| Total | |||||||||||||||||||
| Income from operations | $ | 27,615 | $ | 39,155 | $ | 54,034 | $ | 114,425 | $ | 176,610 | |||||||||
| Depreciation, depletion, amortization and accretion | 21,077 | 20,868 | 20,490 | 62,392 | 61,250 | ||||||||||||||
| Restructuring expenses and other adjustments (1) | 9,074 | - | (2,721 | ) | 9,074 | (738 | ) | ||||||||||||
| Adjusted EBITDA | $ | 57,766 | $ | 60,023 | $ | 71,803 | $ | 185,891 | $ | 237,122 | |||||||||
| Adjusted EBITDA is a Non-GAAP measure. See Non-GAAP Financial Measures for our definition of Adjusted EBITDA. | |||||||||||||||||||
| (1) Restructuring expenses and other adjustments for the three and nine months ended September 30, 2024 relate to costs associated with changes in our executive management and other restructuring costs. Adjustments for the three and nine months ended September 30, 2023 relate to exit and disposal activities related to non-core businesses and other restructuring costs. | |||||||||||||||||||
FOR FURTHER INFORMATION CONTACT:
Jamie Spexarth, Chief Financial Officer
1001 Louisiana St., Suite 2900
Houston, TX 77002
Investor Relations, ir@superiorenergy.com, (713) 654-2200
