Attached files
file | filename |
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8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - Helmerich & Payne, Inc. | a10-14756_18k.htm |
Exhibit 99
July 29, 2010
HELMERICH & PAYNE, INC. ANNOUNCES THIRD QUARTER RESULTS AND NINE NEW FLEXRIG® CONTRACTS
Helmerich & Payne, Inc. reported income from continuing operations of $64,883,000 ($0.61 per diluted share) from operating revenues of $483,384,000 for its third fiscal quarter ended June 30, 2010, compared with income from continuing operations of $68,021,000 ($0.64 per diluted share) from operating revenues of $384,359,000 during last years third fiscal quarter. As previously reported, on June 30, 2010, Venezuelan President Hugo Chavez signed a Decree authorizing the forceful acquisition of the Companys Venezuelan drilling assets. As a result, the corresponding operations, previously within the Companys International Land segment, have been reclassified as discontinued operations. Accordingly, the assets and liabilities corresponding to the Companys business in Venezuela, along with its results of operations, have been reclassified for all comparative periods presented. Considering an impairment charge of $102,721,000 related to the Venezuelan governmental action, the Company reported a third quarter loss from discontinued operations of $101,598,000 ($0.95 per diluted share). Including discontinued operations, the Company recorded a net loss of $36,715,000 for the third fiscal quarter of 2010 compared to net income of $53,044,000 for the third fiscal quarter of 2009. Included in both this years and last years third quarter income from continuing operations are gains of approximately $.01 per share from the sale of drilling equipment.
For the nine months ended June 30, 2010, the Company reported income from continuing operations of $202,790,000 ($1.89 per diluted share) from operating revenues of $1,316,205,000 compared with income from continuing operations of $325,570,000 ($3.05 per diluted share) from operating revenues of $1,485,464,000 during the nine months ended June 30, 2009. Including discontinued operations, total net income was $73,267,000 and $302,057,000 during the first nine months of fiscal 2010 and 2009, respectively. Included in the first nine months of both this years and last years income from continuing operations are gains of approximately $.03 per share from the sale of drilling equipment.
Segment operating income for U.S. land operations was $103,138,000 for this years third fiscal quarter, compared with $96,593,000 for last years third fiscal quarter and $90,723,000 for this years second fiscal quarter. The sequential increase was primarily attributable to the continuing recovery in U.S. land drilling activity, as revenue days increased to 14,374 from 13,114 during this years second fiscal quarter.
Approximately $700 per day of the average rig revenue and margin per day values, as reported in the attached tables corresponding to U.S. land operations for this years third fiscal quarter ($23,690 and $11,151, respectively), was a result of early contract termination revenue and of revenue related to customer requested delivery delays for new builds under long-term contracts. This compares to approximately $800 per day included in the rig revenue and margin per day averages corresponding to this years second fiscal quarter ($23,382 and $11,287, respectively) for the same type of revenue. Additional revenue of approximately $5 million corresponding to new build early terminations and to requested delivery delays is now expected to be recognized in the U.S. land segment during the fourth quarter of fiscal 2010.
(over)
News Release
July 29, 2010
Rig utilization for the Companys U.S. land segment was 76% for this years third fiscal quarter, compared with 51% for last years third fiscal quarter and 70% for this years second fiscal quarter. At June 30, 2010, the Companys U.S. land segment had 170 contracted rigs and 45 idle and available rigs. The 170 contracted rigs included 116 rigs under term contracts, four of which were new FlexRigs®* waiting on customers that requested delivery delays. (Delayed FlexRigs do not generate revenue days and are not considered for purposes of calculating and reporting rig utilization rates.)
Helmerich & Payne, Inc. also announced today that since its last related announcement on July 6, 2010, the Company has signed contracts to build and operate nine additional FlexRigs. These rigs will be built under multi-year term contracts with four exploration and production companies, and will operate in the U.S. with attractive dayrates and economic returns. The names of the customers and other terms were not disclosed. Considering these nine rigs, the Company has announced a total of 19 new build rigs during fiscal 2010, of which four have already been completed and 15 are under construction. The Company expects to continue to complete and deliver these new FlexRigs through early to mid calendar 2011.
President and CEO Hans Helmerich commented, We are encouraged by improved activity for the Companys FlexRigs. It confirms our earlier expectations for a bifurcated market where high performing rigs, and our FlexRigs in particular, would command better utilization and margins compared to the industry rig fleet. Our recent new build announcements further reinforce our long-held conviction that a growing number of customers are increasingly shaping their efforts in the field around efficient, high-performing rigs. Demand for enhanced field performance favors the Companys strengths and capabilities and bodes well for additional opportunities ahead.
Segment operating income for the Companys offshore operations was $11,231,000 for the third fiscal quarter of 2010, compared with $12,723,000 for last years third fiscal quarter and $13,625,000 for this years second fiscal quarter. Average rig utilization of the Companys nine platform rigs in the offshore segment was 78% for this years third fiscal quarter, compared with 93% during last years third fiscal quarter and 81% during this years second fiscal quarter. Average rig margins per day declined to $20,782 during this years third fiscal quarter from $23,023 during this years second fiscal quarter. The Company estimates that third quarter segment operating income was negatively impacted by approximately 3% due to lower standby rates received as a result of the government imposed deepwater drilling moratorium.
The Companys international land operations reported segment operating income of $9,893,000 for this years third fiscal quarter, compared with $6,492,000 for last years third fiscal quarter and $11,784,000 for the second fiscal quarter of 2010. Although rig utilization corresponding to continuing operations in the segment sequentially increased to 76% from 73%, the average rig margin per day declined to $10,192 during the third quarter from $11,167 during the second quarter of 2010.
(more)
News Release
July 29, 2010
Helmerich & Payne, Inc. is primarily a contract drilling company. As of July 29, 2010, the Companys existing fleet included 217 land rigs in the U.S., 28 international land rigs and nine offshore platform rigs. In addition, the Company is scheduled to complete another 15 new H&P-designed and operated FlexRigs under long-term contracts with customers. Upon completion of these commitments in fiscal 2011, the Companys global land fleet is expected to include a total of 209 FlexRigs.
Helmerich & Payne, Inc.s conference call/webcast is scheduled to begin this morning at 11:00 a.m. ET (10:00 a.m. CT) and can be accessed at http://www.hpinc.com under Investors. If you are unable to participate during the live webcast, the call will be archived on H&Ps website indicated above.
Statements in this release and information disclosed in the conference call and webcast that are forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 are based on current expectations and assumptions that are subject to risks and uncertainties. For information regarding risks and uncertainties associated with the Companys business, please refer to the Risk Factors and Managements Discussion & Analysis of Financial Condition and Results of Operations sections of the Companys SEC filings, including but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. As a result of these factors, Helmerich & Payne, Inc.s actual results may differ materially from those indicated or implied by such forward-looking statements.
*FlexRig® is a registered trademark of Helmerich & Payne, Inc.
Contact:
Mike Drickamer
(918) 588-5190
(more)
News Release
July 29, 2010
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||
|
|
March 31 |
|
June 30 |
|
June 30 |
|
|||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
2010 |
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Drilling U.S. Land |
|
$ |
324,439 |
|
$ |
366,989 |
|
$ |
282,358 |
|
$ |
976,497 |
|
$ |
1,172,076 |
|
Drilling Offshore |
|
47,765 |
|
53,131 |
|
55,605 |
|
153,186 |
|
157,424 |
|
|||||
Drilling International Land |
|
61,535 |
|
60,045 |
|
43,882 |
|
177,377 |
|
147,940 |
|
|||||
Other |
|
2,840 |
|
3,219 |
|
2,514 |
|
9,145 |
|
8,024 |
|
|||||
|
|
436,579 |
|
483,384 |
|
384,359 |
|
1,316,205 |
|
1,485,464 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating costs, excluding depreciation |
|
248,480 |
|
285,583 |
|
204,523 |
|
742,761 |
|
754,098 |
|
|||||
Depreciation |
|
63,493 |
|
65,208 |
|
58,737 |
|
189,418 |
|
166,082 |
|
|||||
General and administrative |
|
20,543 |
|
20,114 |
|
14,172 |
|
61,296 |
|
45,481 |
|
|||||
Research and development |
|
3,342 |
|
3,254 |
|
2,777 |
|
8,411 |
|
6,630 |
|
|||||
Gain from involuntary conversion of long-lived assets |
|
|
|
|
|
(264 |
) |
|
|
(541 |
) |
|||||
Income from asset sales |
|
(985 |
) |
(2,249 |
) |
(1,741 |
) |
(4,245 |
) |
(4,706 |
) |
|||||
|
|
334,873 |
|
371,910 |
|
278,204 |
|
997,641 |
|
967,044 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating income |
|
101,706 |
|
111,474 |
|
106,155 |
|
318,564 |
|
518,420 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and dividend income |
|
287 |
|
940 |
|
199 |
|
1,536 |
|
2,362 |
|
|||||
Interest expense |
|
(4,038 |
) |
(3,961 |
) |
(2,893 |
) |
(12,693 |
) |
(9,147 |
) |
|||||
Other |
|
23 |
|
215 |
|
(49 |
) |
253 |
|
51 |
|
|||||
|
|
(3,728 |
) |
(2,806 |
) |
(2,743 |
) |
(10,904 |
) |
(6,734 |
) |
|||||
Income from continuing operations before income taxes and equity in income of affiliate |
|
97,978 |
|
108,668 |
|
103,412 |
|
307,660 |
|
511,686 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income tax provision |
|
23,873 |
|
43,785 |
|
35,391 |
|
104,870 |
|
196,227 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Equity in income of affiliate net of income taxes |
|
|
|
|
|
|
|
|
|
10,111 |
|
|||||
Income from continuing operations |
|
74,105 |
|
64,883 |
|
68,021 |
|
202,790 |
|
325,570 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss from discontinued operations, before income taxes |
|
(22,744 |
) |
(101,548 |
) |
(13,717 |
) |
(127,160 |
) |
(18,451 |
) |
|||||
Income tax provision |
|
4,614 |
|
50 |
|
1,260 |
|
2,363 |
|
5,062 |
|
|||||
Loss from discontinued operations |
|
(27,358 |
) |
(101,598 |
) |
(14,977 |
) |
(129,523 |
) |
(23,513 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NET INCOME (LOSS) |
|
$ |
46,747 |
|
$ |
(36,715 |
) |
$ |
53,044 |
|
$ |
73,267 |
|
$ |
302,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Income from continuing operations |
|
$ |
0.70 |
|
$ |
0.61 |
|
$ |
0.64 |
|
$ |
1.92 |
|
$ |
3.08 |
|
Loss from discontinued operations |
|
$ |
(0.26 |
) |
$ |
(0.96 |
) |
$ |
(0.14 |
) |
$ |
(1.23 |
) |
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Income (loss) |
|
$ |
0.44 |
|
$ |
(0.35 |
) |
$ |
0.50 |
|
$ |
0.69 |
|
$ |
2.86 |
|
(more)
News Release
July 29, 2010
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||
|
|
March 31 |
|
June 30 |
|
June 30 |
|
|||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
2010 |
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Diluted earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Income from continuing operations |
|
$ |
0.68 |
|
$ |
0.61 |
|
$ |
0.64 |
|
$ |
1.89 |
|
$ |
3.05 |
|
Loss from discontinued operations |
|
$ |
(0.25 |
) |
$ |
(0.95 |
) |
$ |
(0.14 |
) |
$ |
(1.21 |
) |
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Income (loss) |
|
$ |
0.43 |
|
$ |
(0.34 |
) |
$ |
0.50 |
|
$ |
0.68 |
|
$ |
2.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
105,711 |
|
105,743 |
|
105,425 |
|
105,676 |
|
105,330 |
|
|||||
Diluted |
|
107,484 |
|
107,444 |
|
106,695 |
|
107,400 |
|
106,381 |
|
(more)
News Release
July 29, 2010
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
CONSOLIDATED CONDENSED BALANCE SHEETS |
|
6/30/10 |
|
9/30/09 |
|
||
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
77,717 |
|
$ |
96,142 |
|
Other current assets |
|
462,026 |
|
345,884 |
|
||
Current assets of discontinued operations |
|
9,507 |
|
80,906 |
|
||
Total current assets |
|
549,250 |
|
522,932 |
|
||
Investments |
|
274,620 |
|
356,404 |
|
||
Net property, plant, and equipment |
|
3,235,863 |
|
3,194,273 |
|
||
Other assets |
|
13,921 |
|
15,781 |
|
||
Non-current assets of discontinued operations |
|
|
|
71,634 |
|
||
TOTAL ASSETS |
|
$ |
4,073,654 |
|
$ |
4,161,024 |
|
|
|
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS EQUITY |
|
|
|
|
|
||
Current liabilities |
|
$ |
203,290 |
|
$ |
284,923 |
|
Current liabilities of discontinued operations |
|
7,688 |
|
16,983 |
|
||
Total current liabilities |
|
210,978 |
|
301,906 |
|
||
Non-current liabilities |
|
765,330 |
|
745,904 |
|
||
Non-current liabilities of discontinued operations |
|
1,819 |
|
10,205 |
|
||
Long-term notes payable |
|
390,000 |
|
420,000 |
|
||
Total shareholders equity |
|
2,705,527 |
|
2,683,009 |
|
||
|
|
|
|
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
|
$ |
4,073,654 |
|
$ |
4,161,024 |
|
(more)
News Release
July 29, 2010
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
|
|
Nine Months Ended |
|
||||
|
|
June 30 |
|
||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
|
2010 |
|
2009 |
|
||
|
|
|
|
|
|
||
OPERATING ACTIVITIES: |
|
|
|
|
|
||
Net income |
|
$ |
73,267 |
|
$ |
302,057 |
|
Adjustment for loss from discontinued operations |
|
129,523 |
|
23,513 |
|
||
Income from continuing operations |
|
202,790 |
|
325,570 |
|
||
Depreciation |
|
189,418 |
|
166,082 |
|
||
Changes in assets and liabilities |
|
(66,376 |
) |
256,690 |
|
||
Gain from involuntary conversion of long-lived assets |
|
|
|
(541 |
) |
||
Gain on sale of assets and investment securities |
|
(4,245 |
) |
(4,706 |
) |
||
Other |
|
12,957 |
|
(9,042 |
) |
||
Net cash provided by operating activities from continuing operations |
|
334,544 |
|
734,053 |
|
||
Net cash provided by (used in) operating activities from discontinued operations |
|
(1,507 |
) |
402 |
|
||
Net cash provided by operating activities |
|
333,037 |
|
734,455 |
|
||
|
|
|
|
|
|
||
INVESTING ACTIVITIES: |
|
|
|
|
|
||
Capital expenditures |
|
(220,200 |
) |
(734,506 |
) |
||
Insurance proceeds from involuntary conversion of long-lived assets |
|
|
|
541 |
|
||
Proceeds from sale of assets and short-term investments |
|
18,813 |
|
6,658 |
|
||
Purchase of short-term investments |
|
(16 |
) |
(12,500 |
) |
||
Other |
|
|
|
(16 |
) |
||
Net cash used in investing activities from continuing operations |
|
(201,403 |
) |
(739,823 |
) |
||
Net cash used in investing activities from discontinued operations |
|
(55 |
) |
(3,857 |
) |
||
Net cash used in investing activities |
|
(201,458 |
) |
(743,680 |
) |
||
|
|
|
|
|
|
||
FINANCING ACTIVITIES: |
|
|
|
|
|
||
Dividends paid |
|
(15,891 |
) |
(15,829 |
) |
||
Decrease in bank overdraft |
|
(2,038 |
) |
8,992 |
|
||
Proceeds from exercise of stock options |
|
(391 |
) |
710 |
|
||
Net proceeds from (payments for) short-term and long-term debt |
|
(135,000 |
) |
58,267 |
|
||
Excess tax benefit from stock-based compensation |
|
3,316 |
|
1,189 |
|
||
Net cash provided by (used in) financing activities |
|
(150,004 |
) |
53,329 |
|
||
|
|
|
|
|
|
||
Net increase (decrease) in cash and cash equivalents |
|
(18,425 |
) |
44,104 |
|
||
Cash and cash equivalents, beginning of period |
|
96,142 |
|
77,549 |
|
||
Cash and cash equivalents, end of period |
|
$ |
77,717 |
|
$ |
121,653 |
|
(more)
News Release
July 29, 2010
|
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||
|
|
March 31 |
|
June 30 |
|
June 30 |
|
|||||||||
SEGMENT REPORTING |
|
2010 |
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|||||
|
|
(in thousands, except days and per day amounts) |
|
|||||||||||||
U.S. LAND OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenues |
|
$ |
324,439 |
|
$ |
366,989 |
|
$ |
282,358 |
|
$ |
976,497 |
|
$ |
1,172,076 |
|
Direct operating expenses |
|
176,424 |
|
206,707 |
|
133,041 |
|
521,486 |
|
538,380 |
|
|||||
General and administrative expense |
|
6,074 |
|
5,458 |
|
4,133 |
|
18,193 |
|
12,834 |
|
|||||
Depreciation |
|
51,218 |
|
51,686 |
|
48,591 |
|
151,434 |
|
137,291 |
|
|||||
Segment operating income |
|
$ |
90,723 |
|
$ |
103,138 |
|
$ |
96,593 |
|
$ |
285,384 |
|
$ |
483,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue days |
|
13,114 |
|
14,374 |
|
9,302 |
|
38,748 |
|
38,153 |
|
|||||
Average rig revenue per day |
|
$ |
23,382 |
|
$ |
23,690 |
|
$ |
28,325 |
|
$ |
23,708 |
|
$ |
28,791 |
|
Average rig expense per day |
|
$ |
12,095 |
|
$ |
12,539 |
|
$ |
12,273 |
|
$ |
11,965 |
|
$ |
12,182 |
|
Average rig margin per day |
|
$ |
11,287 |
|
$ |
11,151 |
|
$ |
16,052 |
|
$ |
11,743 |
|
$ |
16,609 |
|
Rig utilization |
|
70 |
% |
76 |
% |
51 |
% |
69 |
% |
72 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
OFFSHORE OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenues |
|
$ |
47,765 |
|
$ |
53,131 |
|
$ |
55,605 |
|
$ |
153,186 |
|
$ |
157,424 |
|
Direct operating expenses |
|
29,696 |
|
37,382 |
|
38,854 |
|
99,654 |
|
102,019 |
|
|||||
General and administrative expense |
|
1,478 |
|
1,329 |
|
1,004 |
|
4,437 |
|
3,120 |
|
|||||
Depreciation |
|
2,966 |
|
3,189 |
|
3,024 |
|
9,133 |
|
9,015 |
|
|||||
Segment operating income |
|
$ |
13,625 |
|
$ |
11,231 |
|
$ |
12,723 |
|
$ |
39,962 |
|
$ |
43,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue days |
|
660 |
|
638 |
|
763 |
|
1,998 |
|
2,294 |
|
|||||
Average rig revenue per day |
|
$ |
48,225 |
|
$ |
46,138 |
|
$ |
45,531 |
|
$ |
49,218 |
|
$ |
48,994 |
|
Average rig expense per day |
|
$ |
25,202 |
|
$ |
25,356 |
|
$ |
26,976 |
|
$ |
26,240 |
|
$ |
27,516 |
|
Average rig margin per day |
|
$ |
23,023 |
|
$ |
20,782 |
|
$ |
18,555 |
|
$ |
22,978 |
|
$ |
21,478 |
|
Rig utilization |
|
81 |
% |
78 |
% |
93 |
% |
81 |
% |
93 |
% |
(more)
News Release
July 29, 2010
|
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||
|
|
March 31 |
|
June 30 |
|
June 30 |
|
|||||||||
SEGMENT REPORTING |
|
2010 |
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|||||
|
|
(in thousands, except days and per day amounts) |
|
|||||||||||||
INTERNATIONAL LAND OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenues |
|
$ |
61,535 |
|
$ |
60,045 |
|
$ |
43,882 |
|
$ |
177,377 |
|
$ |
147,940 |
|
Direct operating expenses |
|
41,980 |
|
41,113 |
|
32,051 |
|
120,374 |
|
112,722 |
|
|||||
General and administrative expense |
|
716 |
|
771 |
|
502 |
|
1,978 |
|
1,709 |
|
|||||
Depreciation |
|
7,055 |
|
8,268 |
|
4,837 |
|
22,239 |
|
13,043 |
|
|||||
Segment operating income |
|
$ |
11,784 |
|
$ |
9,893 |
|
$ |
6,492 |
|
$ |
32,786 |
|
$ |
20,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue days |
|
1,766 |
|
1,881 |
|
1,121 |
|
5,278 |
|
3,681 |
|
|||||
Average rig revenue per day |
|
$ |
33,283 |
|
$ |
30,669 |
|
$ |
36,519 |
|
$ |
32,173 |
|
$ |
37,046 |
|
Average rig expense per day |
|
$ |
22,116 |
|
$ |
20,477 |
|
$ |
24,098 |
|
$ |
21,337 |
|
$ |
27,007 |
|
Average rig margin per day |
|
$ |
11,167 |
|
$ |
10,192 |
|
$ |
12,421 |
|
$ |
10,836 |
|
$ |
10,039 |
|
Rig utilization |
|
73 |
% |
76 |
% |
69 |
% |
68 |
% |
80 |
% |
Operating statistics exclude the effects of offshore platform management contracts, gains and losses from translation of foreign currency transactions, and do not include reimbursements of out-of-pocket expenses in revenue per day, expense per day and margin
calculations.
Reimbursed amounts were as follows:
U.S. Land Operations |
|
$ |
17,813 |
|
$ |
26,474 |
|
$ |
18,877 |
|
$ |
57,847 |
|
$ |
73,621 |
|
Offshore Operations |
|
$ |
5,880 |
|
$ |
13,771 |
|
$ |
13,409 |
|
$ |
26,383 |
|
$ |
25,627 |
|
International Land Operations |
|
$ |
2,758 |
|
$ |
2,357 |
|
$ |
2,945 |
|
$ |
7,569 |
|
$ |
11,572 |
|
(more)
News Release
July 29, 2010
Segment operating income for all segments is a non-GAAP financial measure of the Companys performance, as it excludes general and administrative expenses, corporate depreciation, income from asset sales and other corporate income and expense. The Company considers segment operating income to be an important supplemental measure of operating performance for presenting trends in the Companys core businesses. This measure is used by the Company to facilitate period-to-period comparisons in operating performance of the Companys reportable segments in the aggregate by eliminating items that affect comparability between periods. The Company believes that segment operating income is useful to investors because it provides a means to evaluate the operating performance of the segments and the Company on an ongoing basis using criteria that are used by our internal decision makers. Additionally, it highlights operating trends and aids analytical comparisons. However, segment operating income has limitations and should not be used as an alternative to operating income or loss, a performance measure determined in accordance with GAAP, as it excludes certain costs that may affect the Companys operating performance in future periods.
The Companys Venezuelan operation, which was historically an operating segment within the International Land Segment, was discontinued in the third quarter of fiscal 2010. Consequently, its operating results are excluded from the segment data tables above.
The following table reconciles operating income per the information above to income from continuing operations before income taxes and equity in income of affiliates as reported on the Consolidated Statements of Operations (in thousands).
|
|
Three Months Ended |
|
Nine Months Ended |
|
|||||||||||
|
|
March 31 |
|
June 30 |
|
June 30 |
|
|||||||||
|
|
2010 |
|
2010 |
|
2009 |
|
2010 |
|
2009 |
|
|||||
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Land |
|
$ |
90,723 |
|
$ |
103,138 |
|
$ |
96,593 |
|
$ |
285,384 |
|
$ |
483,571 |
|
Offshore |
|
13,625 |
|
11,231 |
|
12,723 |
|
39,962 |
|
43,270 |
|
|||||
International Land |
|
11,784 |
|
9,893 |
|
6,492 |
|
32,786 |
|
20,466 |
|
|||||
Other |
|
(2,423 |
) |
(1,803 |
) |
(2,304 |
) |
(5,020 |
) |
(4,656 |
) |
|||||
Segment operating income |
|
$ |
113,709 |
|
$ |
122,459 |
|
$ |
113,504 |
|
$ |
353,112 |
|
$ |
542,651 |
|
Corporate general and administrative |
|
(12,275 |
) |
(12,556 |
) |
(8,533 |
) |
(36,688 |
) |
(27,818 |
) |
|||||
Other depreciation |
|
(1,335 |
) |
(1,295 |
) |
(1,305 |
) |
(3,966 |
) |
(3,775 |
) |
|||||
Inter-segment elimination |
|
622 |
|
617 |
|
484 |
|
1,861 |
|
2,115 |
|
|||||
Gain from involuntary conversion of long-lived assets |
|
|
|
|
|
264 |
|
|
|
541 |
|
|||||
Income from asset sales |
|
985 |
|
2,249 |
|
1,741 |
|
4,245 |
|
4,706 |
|
|||||
Operating income |
|
$ |
101,706 |
|
$ |
111,474 |
|
$ |
106,155 |
|
$ |
318,564 |
|
$ |
518,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and dividend income |
|
287 |
|
940 |
|
199 |
|
1,536 |
|
2,362 |
|
|||||
Interest expense |
|
(4,038 |
) |
(3,961 |
) |
(2,893 |
) |
(12,693 |
) |
(9,147 |
) |
|||||
Other |
|
23 |
|
215 |
|
(49 |
) |
253 |
|
51 |
|
|||||
Total other income (expense) |
|
(3,728 |
) |
(2,806 |
) |
(2,743 |
) |
(10,904 |
) |
(6,734 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income from continuing operations before income taxes and equity in income of affiliates |
|
$ |
97,978 |
|
$ |
108,668 |
|
$ |
103,412 |
|
$ |
307,660 |
|
$ |
511,686 |
|
# # #