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8-K - FORM 8-K - HERCULES OFFSHORE, INC. | h85226e8vk.htm |
Exhibit 99.1
Hercules Offshore Announces Third Quarter 2011 Results
HOUSTON, October 27, 2011 Hercules Offshore, Inc. (Nasdaq: HERO) today reported a loss from
continuing operations of $17.0 million, or $0.12 per diluted
share, on revenue of $163.0 million
for the third quarter 2011, compared with a loss from continuing operations of $16.1 million, or
$0.14 per diluted share, on revenue of $157.6 million for the third quarter 2010.
John T. Rynd, Chief Executive Officer and President of Hercules Offshore stated, Activity levels
in the U.S. Gulf of Mexico Shelf are on the rise, as operators increasingly focus on liquids rich
drilling opportunities. Concurrently, several jackup rigs have departed for international
opportunities, resulting in a tight environment for rig availability in the region. Hercules
Offshore has been the primary beneficiary of the improving fundamental trends in the shallow water
U.S. Gulf of Mexico, which have accelerated during the third quarter. Average dayrates in our
Domestic Offshore segment have increased by nearly $10,000 per day over the past year, with leading
edge rates suggesting further upside for our domestic jackup fleet.
Our International Offshore segment was recently successful at securing several contracts,
including attractive, long term extensions for the Hercules 261 and Hercules 262 in the Middle
East. These contracts are a testament to our strong performance and relationship with the customer,
Saudi Aramco. Tempering our international success was the recently announced damage to the Hercules
185, where we are anticipating approximately six months of downtime for repairs.
Offshore
Domestic Offshore revenue increased to $60.2 million in the third quarter 2011 from $25.1 million
in the comparable period in 2010. Approximately 70% of the revenue increase is attributable to the
acquisition of the Seahawk rigs, while higher utilization and dayrates on the legacy fleet
contributed to the remaining revenue growth. Average revenue per rig per day increased by $9,722
per rig per day to $49,060 in the third quarter 2011 compared to $39,338 in the prior year period.
Utilization in the third quarter 2011 increased to 74.2% from 62.9% in the third quarter 2010.
However, operating days rose by more than 90%, largely as a result of the acquisition of the
Seahawk rigs. Domestic Offshore operating expenses increased to $53.2 million in the third quarter
2011 from $38.7 million in the third quarter 2010, due to costs associated with the acquired
Seahawk rigs. Domestic Offshore recorded an operating loss of $12.8 million in the third quarter
2011 compared to an operating loss of $32.1 million for the respective prior year quarter.
International
Offshore revenue declined to $49.0 million in the third quarter 2011 from $74.4
million in the third quarter 2010. The decline was primarily driven by new contracts at lower
market rates on the Hercules 208, Hercules 258, Hercules 260 and Rig 3, as well as the downtime
related to transition between contracts. The reduction in revenue related to these aforementioned
rigs was partially offset by the increased utilization on the Hercules 185. Overall, average
revenue per rig per day declined to $96,388 in the third quarter 2011 from $138,344 in the third
quarter 2010, and operating days declined to 508 days from 538 days, in the respective periods.
Third quarter 2011 operating expenses were $29.1 million compared to $31.1 million in the third
quarter 2010, as lower costs associated with new contract terms on the Hercules 258 and Hercules
260 were partially offset by higher costs on the Hercules
185.
International Offshore general and administrative expenses during the
third quarter 2011 include an $8.0 million benefit, compared to a
$1.5 million benefit during the third quarter 2010, from the reversal of an
allowance for doubtful accounts related to payments received from a
customer in Angola.
Operating income decreased to $12.9
million in the third quarter 2011 from $26.9 million in the third quarter 2010.
Inland
Inland revenue for the third quarter 2011 increased to $8.1 million from $5.7 million in the third
quarter 2010, primarily driven by an increase in average revenue per rig per day to $31,008 in the
third quarter 2011 from $21,357 in the third quarter 2010. Utilization of 94.9% during the third
quarter 2011 is comparable to 97.5% for the prior year period. Third quarter 2011 operating
expenses were $3.5 million, which includes approximately $2.6 million in gains for asset sales,
compared to $8.3 million in the comparable period in 2010. Year ago results include an accrual of
approximately $3.0 million related to a multi-year state sales and use tax audit. Inland recorded
operating income of $0.9 million in the third quarter 2011 compared to an operating loss of $8.6
million in the third quarter 2010.
Liftboats
Domestic Liftboats generated revenue of $16.7 million in the third quarter 2011 compared to $24.6
million in the third quarter 2010. Year ago results were positively impacted by coastal remediation
work related to the BP-Macondo incident. The absence of the BP-Macondo related work led to a
decline in utilization to 69.8% during the third quarter 2011 from 91.6% for the prior year period.
Average revenue per liftboat per day was down slightly to $7,443 in the third quarter 2011 compared
to $7,684 in the third quarter 2010. Operating expenses were essentially flat at $11.4 million in
the third quarter 2011. Operating income for Domestic Liftboats was $0.6 million in the third
quarter 2011 compared to operating income of $9.4 million in the comparable prior year period.
International Liftboat revenue increased modestly to $28.9 million in the third quarter 2011
compared to $27.8 million in the third quarter 2010, largely due to higher utilization, which rose
to 64.1% in the third quarter 2011 from 56.6% in the prior year period. This was partially offset
by a decline in average revenue per liftboat per day to $21,325 from $23,176 in the same periods,
respectively. Operating expenses increased to $14.1 million in the third quarter 2011 versus $13.0
million in the prior year period due to higher labor and maintenance costs. Operating income for
International Liftboats was $8.5 million in the third quarter 2011, compared to $9.4 million in the
same period of the prior year.
Discovery Offshore S.A. Investment
Since Hercules Offshores initial $10 million investment in Discovery Offshore S.A. (Oslo Axess:
DISC), which gave the company an 8% ownership stake, the Company has completed
several purchases of Discovery common stock, totaling approximately $24.2 million. The most recent
purchase on September 13, 2011 increased Hercules holding in Discovery to 18.4 million shares,
corresponding to 28.0% of Discoverys share capital.
Conference Call Information
Hercules Offshore will conduct a conference call at 10:00 a.m. CDT (11:00 a.m. EDT) on October 27,
2011 to discuss its third quarter 2011 financial results. To participate in the call, dial
800-920-8624 (domestic) or 617-597-5430 (international) and reference access code
85202920 approximately 10 minutes prior to the start of the call. The conference call will also be
broadcast live via the Internet at http://www.herculesoffshore.com.
A replay of the conference call will be available by telephone on October 27, 2011, beginning at
1:00 p.m. CDT (2:00 p.m. EDT), through November 3, 2011. The phone number for the conference call
replay is 888-286-8010 (domestic) or 617-801-6888 (international) with access code 25383154.
Additionally, the recorded conference call will be accessible through our Web site at
http://www.herculesoffshore.com for 7 days after the conference call.
Additional Information
Headquartered in Houston, Hercules Offshore, Inc. operates a fleet of 49 jackup rigs, 17 barge
rigs, 65 liftboats, two submersible rigs, and one platform rig. The Company offers a range of
services to oil and gas producers to meet their needs during drilling, well service, platform
inspection, maintenance, and decommissioning operations in several key shallow water provinces
around the world. Hercules Offshore currently holds 28.0% of share capital in Discovery Offshore, a
pure play, ultra-high specification jackup rig company. For more information, please visit our
website at http://www.herculesoffshore.com.
The news release contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are
subject to a number of risks, uncertainties and assumptions, including the factors described in
Hercules Offshores most recent periodic reports and other documents filed with the Securities and
Exchange Commission, which are available free of charge at the SECs website at
http://www.sec.gov or the Companys website at http://www.herculesoffshore.com.
Hercules Offshore cautions you that forward-looking statements are not guarantees of future
performance and that actual results or developments may differ materially from those projected or
implied in these statements.
Contact Information:
Son P. Vann, CFA
Director, Investor Relations and Finance
Hercules Offshore, Inc.
713-350-8508
Director, Investor Relations and Finance
Hercules Offshore, Inc.
713-350-8508
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and Cash Equivalents |
$ | 127,274 | $ | 136,666 | ||||
Restricted Cash |
13,604 | 11,128 | ||||||
Accounts Receivable, Net |
163,780 | 143,796 | ||||||
Prepaids |
23,651 | 17,142 | ||||||
Current Deferred Tax Asset |
10,572 | 8,488 | ||||||
Other |
16,906 | 11,794 | ||||||
355,787 | 329,014 | |||||||
Property and Equipment, Net |
1,631,661 | 1,634,542 | ||||||
Equity Investment |
34,910 | | ||||||
Other Assets, Net |
31,667 | 31,753 | ||||||
$ | 2,054,025 | $ | 1,995,309 | |||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current Liabilities: |
||||||||
Short-term Debt and Current Portion of Long-term Debt |
$ | 4,768 | $ | 4,924 | ||||
Insurance Notes Payable |
12,987 | 5,984 | ||||||
Accounts Payable |
53,707 | 52,279 | ||||||
Accrued Liabilities |
57,973 | 59,861 | ||||||
Interest Payable |
18,585 | 6,974 | ||||||
Taxes Payable |
6,231 | | ||||||
Other Current Liabilities |
20,942 | 16,716 | ||||||
175,193 | 146,738 | |||||||
Long-term Debt, Net of Current Portion |
838,012 | 853,166 | ||||||
Other Liabilities |
21,869 | 6,716 | ||||||
Deferred Income Taxes |
90,301 | 135,557 | ||||||
Commitments and Contingencies |
||||||||
Stockholders Equity |
928,650 | 853,132 | ||||||
$ | 2,054,025 | $ | 1,995,309 | |||||
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(As Adjusted) | (As Adjusted) | |||||||||||||||
Revenue |
$ | 162,991 | $ | 157,609 | $ | 492,570 | $ | 460,067 | ||||||||
Costs and Expenses: |
||||||||||||||||
Operating Expenses |
111,372 | 102,310 | 332,081 | 307,626 | ||||||||||||
Depreciation and Amortization |
43,895 | 44,982 | 128,699 | 140,382 | ||||||||||||
General and Administrative |
10,757 | 14,158 | 40,403 | 40,595 | ||||||||||||
166,024 | 161,450 | 501,183 | 488,603 | |||||||||||||
Operating Loss |
(3,033 | ) | (3,841 | ) | (8,613 | ) | (28,536 | ) | ||||||||
Other Income (Expense): |
||||||||||||||||
Interest Expense |
(20,389 | ) | (20,752 | ) | (59,035 | ) | (62,437 | ) | ||||||||
Expense of Credit Agreement Fees |
| | (455 | ) | | |||||||||||
Equity in Losses of Equity Investment |
(34 | ) | | (225 | ) | | ||||||||||
Other, Net |
(1,561 | ) | (22 | ) | (2,583 | ) | 3,144 | |||||||||
Loss Before Income Taxes |
(25,017 | ) | (24,615 | ) | (70,911 | ) | (87,829 | ) | ||||||||
Income Tax Benefit |
7,973 | 8,478 | 25,921 | 38,267 | ||||||||||||
Loss from Continuing Operations |
(17,044 | ) | (16,137 | ) | (44,990 | ) | (49,562 | ) | ||||||||
Income (Loss) from Discontinued Operations, Net of Taxes |
52 | 1,076 | (9,651 | ) | (439 | ) | ||||||||||
Net Loss |
$ | (16,992 | ) | $ | (15,061 | ) | $ | (54,641 | ) | $ | (50,001 | ) | ||||
Basic Loss Per Share: |
||||||||||||||||
Loss from Continuing Operations |
$ | (0.12 | ) | $ | (0.14 | ) | $ | (0.35 | ) | $ | (0.43 | ) | ||||
Income (Loss) from Discontinued Operations |
| 0.01 | (0.08 | ) | (0.01 | ) | ||||||||||
Net Loss |
$ | (0.12 | ) | $ | (0.13 | ) | $ | (0.43 | ) | $ | (0.44 | ) | ||||
Diluted Loss Per Share: |
||||||||||||||||
Loss from Continuing Operations |
$ | (0.12 | ) | $ | (0.14 | ) | $ | (0.35 | ) | $ | (0.43 | ) | ||||
Income (Loss) from Discontinued Operations |
| 0.01 | (0.08 | ) | (0.01 | ) | ||||||||||
Net Loss |
$ | (0.12 | ) | $ | (0.13 | ) | $ | (0.43 | ) | $ | (0.44 | ) | ||||
Weighted Average Shares Outstanding: |
||||||||||||||||
Basic |
137,887 | 114,774 | 128,000 | 114,742 | ||||||||||||
Diluted |
137,887 | 114,774 | 128,000 | 114,742 |
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended September 30, | ||||||||
2011 | 2010 | |||||||
Cash Flows from Operating Activities: |
||||||||
Net Loss |
$ | (54,641 | ) | $ | (50,001 | ) | ||
Adjustments to Reconcile Net Loss to Net Cash Provided by
Operating Activities: |
||||||||
Depreciation and Amortization |
130,355 | 144,758 | ||||||
Stock-Based Compensation Expense |
3,898 | 2,799 | ||||||
Deferred Income Taxes |
(47,458 | ) | (38,639 | ) | ||||
Provision (Benefit) for Doubtful Accounts Receivable |
(12,240 | ) | 80 | |||||
Amortization of Deferred Financing Fees |
2,877 | 2,493 | ||||||
Amortization of Original Issue Discount |
3,305 | 3,041 | ||||||
Non-Cash Loss on Derivatives |
3,065 | 1,987 | ||||||
(Gain) Loss on Disposal of Assets and Businesses, Net |
5,495 | (10,180 | ) | |||||
Other |
(197 | ) | (381 | ) | ||||
Net Change in Operating Assets and Liabilities |
23,908 | (36,277 | ) | |||||
Net Cash Provided by Operating Activities |
58,367 | 19,680 | ||||||
Cash Flows from Investing Activities: |
||||||||
Acquisition of Seahawk Assets |
(25,000 | ) | | |||||
Additions of Property and Equipment |
(33,508 | ) | (16,353 | ) | ||||
Deferred Drydocking Expenditures |
(12,859 | ) | (10,972 | ) | ||||
Cash Paid for Equity Investment |
(34,155 | ) | | |||||
Proceeds from Sale of Assets and Businesses, Net |
58,440 | 15,764 | ||||||
Increase in Restricted Cash |
(2,476 | ) | (9,466 | ) | ||||
Net Cash Used in Investing Activities |
(49,558 | ) | (21,027 | ) | ||||
Cash Flows from Financing Activities: |
||||||||
Long-term Debt Repayments |
(18,615 | ) | (5,233 | ) | ||||
Payment of Debt Issuance Costs |
(2,109 | ) | | |||||
Other |
2,523 | 396 | ||||||
Net Cash Used in Financing Activities |
(18,201 | ) | (4,837 | ) | ||||
Net Decrease in Cash and Cash Equivalents |
(9,392 | ) | (6,184 | ) | ||||
Cash and Cash Equivalents at Beginning of Period |
136,666 | 140,828 | ||||||
Cash and Cash Equivalents at End of Period |
$ | 127,274 | $ | 134,644 | ||||
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL AND OPERATING DATA
(Dollars in thousands, except per day amounts)
(Unaudited)
SELECTED FINANCIAL AND OPERATING DATA
(Dollars in thousands, except per day amounts)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(As Adjusted) | (As Adjusted) | |||||||||||||||
Domestic Offshore: |
||||||||||||||||
Number of rigs (as of end of period) |
43 | 25 | 43 | 25 | ||||||||||||
Revenue |
$ | 60,246 | $ | 25,058 | $ | 142,688 | $ | 88,163 | ||||||||
Operating expenses |
53,184 | 38,701 | 140,390 | 115,082 | ||||||||||||
Depreciation and amortization expense |
17,977 | 17,277 | 49,920 | 50,986 | ||||||||||||
General and administrative expenses |
1,909 | 1,146 | 7,499 | 4,807 | ||||||||||||
Operating loss |
$ | (12,824 | ) | $ | (32,066 | ) | $ | (55,121 | ) | $ | (82,712 | ) | ||||
International Offshore: |
||||||||||||||||
Number of rigs (as of end of period) |
9 | 9 | 9 | 9 | ||||||||||||
Revenue |
$ | 48,965 | $ | 74,429 | $ | 196,131 | $ | 221,364 | ||||||||
Operating expenses |
29,098 | 31,065 | 99,803 | 98,394 | ||||||||||||
Depreciation and amortization expense |
12,913 | 14,404 | 39,469 | 43,808 | ||||||||||||
General and administrative expenses |
(5,992 | ) | 2,067 | (6,968 | ) | 5,546 | ||||||||||
Operating income |
$ | 12,946 | $ | 26,893 | $ | 63,827 | $ | 73,616 | ||||||||
Inland: |
||||||||||||||||
Number of barges (as of end of period) |
17 | 17 | 17 | 17 | ||||||||||||
Revenue |
$ | 8,124 | $ | 5,745 | $ | 21,251 | $ | 15,676 | ||||||||
Operating expenses |
3,535 | 8,279 | 16,693 | 20,359 | ||||||||||||
Depreciation and amortization expense |
3,310 | 4,991 | 11,338 | 18,736 | ||||||||||||
General and administrative expenses |
356 | 1,103 | 869 | (1,756 | ) | |||||||||||
Operating income (loss) |
$ | 923 | $ | (8,628 | ) | $ | (7,649 | ) | $ | (21,663 | ) | |||||
Domestic Liftboats: |
||||||||||||||||
Number of liftboats (as of end of period) |
41 | 41 | 41 | 41 | ||||||||||||
Revenue |
$ | 16,718 | $ | 24,612 | $ | 44,209 | $ | 53,950 | ||||||||
Operating expenses |
11,419 | 11,314 | 31,837 | 31,481 | ||||||||||||
Depreciation and amortization expense |
4,136 | 3,314 | 11,637 | 11,182 | ||||||||||||
General and administrative expenses |
548 | 560 | 1,579 | 1,436 | ||||||||||||
Operating income (loss) |
$ | 615 | $ | 9,424 | $ | (844 | ) | $ | 9,851 | |||||||
International Liftboats: |
||||||||||||||||
Number of liftboats (as of end of period) |
24 | 24 | 24 | 24 | ||||||||||||
Revenue |
$ | 28,938 | $ | 27,765 | $ | 88,291 | $ | 80,914 | ||||||||
Operating expenses |
14,136 | 12,951 | 43,358 | 42,310 | ||||||||||||
Depreciation and amortization expense |
4,905 | 4,199 | 14,379 | 13,258 | ||||||||||||
General and administrative expenses |
1,374 | 1,184 | 4,470 | 4,119 | ||||||||||||
Operating income |
$ | 8,523 | $ | 9,431 | $ | 26,084 | $ | 21,227 | ||||||||
Total Company: |
||||||||||||||||
Revenue |
$ | 162,991 | $ | 157,609 | $ | 492,570 | $ | 460,067 | ||||||||
Operating expenses |
111,372 | 102,310 | 332,081 | 307,626 | ||||||||||||
Depreciation and amortization |
43,895 | 44,982 | 128,699 | 140,382 | ||||||||||||
General and administrative |
10,757 | 14,158 | 40,403 | 40,595 | ||||||||||||
Operating loss |
(3,033 | ) | (3,841 | ) | (8,613 | ) | (28,536 | ) | ||||||||
Interest expense |
(20,389 | ) | (20,752 | ) | (59,035 | ) | (62,437 | ) | ||||||||
Expense of credit agreement fees |
| | (455 | ) | | |||||||||||
Equity in losses of equity investment |
(34 | ) | | (225 | ) | | ||||||||||
Other, net |
(1,561 | ) | (22 | ) | (2,583 | ) | 3,144 | |||||||||
Loss before income taxes |
(25,017 | ) | (24,615 | ) | (70,911 | ) | (87,829 | ) | ||||||||
Income tax benefit |
7,973 | 8,478 | 25,921 | 38,267 | ||||||||||||
Loss from continuing operations |
(17,044 | ) | (16,137 | ) | (44,990 | ) | (49,562 | ) | ||||||||
Income (Loss) from discontinued operations, net of taxes |
52 | 1,076 | (9,651 | ) | (439 | ) | ||||||||||
Net loss |
$ | (16,992 | ) | $ | (15,061 | ) | $ | (54,641 | ) | $ | (50,001 | ) | ||||
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL AND OPERATING DATA (Continued)
(Dollars in thousands, except per day amounts)
(Unaudited)
SELECTED FINANCIAL AND OPERATING DATA (Continued)
(Dollars in thousands, except per day amounts)
(Unaudited)
Three Months Ended September 30, 2011 | ||||||||||||||||||||
Average | ||||||||||||||||||||
Average | Operating | |||||||||||||||||||
Revenue per | Expense per | |||||||||||||||||||
Operating Days | Available Days | Utilization (1) | Day (2) | Day (3) | ||||||||||||||||
Domestic Offshore |
1,228 | 1,656 | 74.2 | % | $ | 49,060 | $ | 32,116 | ||||||||||||
International Offshore |
508 | 736 | 69.0 | % | 96,388 | 39,535 | ||||||||||||||
Inland |
262 | 276 | 94.9 | % | 31,008 | 12,808 | ||||||||||||||
Domestic Liftboats |
2,246 | 3,220 | 69.8 | % | 7,443 | 3,546 | ||||||||||||||
International Liftboats |
1,357 | 2,116 | 64.1 | % | 21,325 | 6,681 |
Three Months Ended September 30, 2010 | ||||||||||||||||||||
Average | ||||||||||||||||||||
Average | Operating | |||||||||||||||||||
Revenue per | Expense per | |||||||||||||||||||
Operating Days | Available Days | Utilization (1) | Day (2) | Day (3) | ||||||||||||||||
Domestic Offshore |
637 | 1,012 | 62.9 | % | $ | 39,338 | $ | 38,242 | ||||||||||||
International Offshore |
538 | 828 | 65.0 | % | 138,344 | 37,518 | ||||||||||||||
Inland |
269 | 276 | 97.5 | % | 21,357 | 29,996 | ||||||||||||||
Domestic Liftboats |
3,203 | 3,496 | 91.6 | % | 7,684 | 3,236 | ||||||||||||||
International Liftboats |
1,198 | 2,116 | 56.6 | % | 23,176 | 6,121 |
Nine Months Ended September 30, 2011 | ||||||||||||||||||||
Average | ||||||||||||||||||||
Average | Operating | |||||||||||||||||||
Revenue per | Expense per | |||||||||||||||||||
Operating Days | Available Days | Utilization (1) | Day (2) | Day (3) | ||||||||||||||||
Domestic Offshore |
3,075 | 4,099 | 75.0 | % | $ | 46,403 | $ | 34,250 | ||||||||||||
International Offshore |
1,654 | 2,184 | 75.7 | % | 118,580 | 45,697 | ||||||||||||||
Inland |
739 | 819 | 90.2 | % | 28,756 | 20,382 | ||||||||||||||
Domestic Liftboats |
5,676 | 9,855 | 57.6 | % | 7,789 | 3,231 | ||||||||||||||
International Liftboats |
4,022 | 6,279 | 64.1 | % | 21,952 | 6,905 |
Nine Months Ended September 30, 2010 | ||||||||||||||||||||
Average | ||||||||||||||||||||
Average | Operating | |||||||||||||||||||
Revenue per | Expense per | |||||||||||||||||||
Operating Days | Available Days | Utilization (1) | Day (2) | Day (3) | ||||||||||||||||
Domestic Offshore |
2,426 | 3,074 | 78.9 | % | $ | 36,341 | $ | 37,437 | ||||||||||||
International Offshore |
1,598 | 2,516 | 63.5 | % | 138,526 | 39,107 | ||||||||||||||
Inland |
759 | 819 | 92.7 | % | 20,653 | 24,858 | ||||||||||||||
Domestic Liftboats |
7,433 | 10,374 | 71.7 | % | 7,258 | 3,035 | ||||||||||||||
International Liftboats |
3,596 | 6,430 | 55.9 | % | 22,501 | 6,580 |
(1) | Utilization is defined as the total number of days our rigs or liftboats, as applicable, were under contract, known as operating days, in the period as a percentage of the total number of available days in the period. Days during which our rigs and liftboats were undergoing major refurbishments, upgrades or construction, and days during which our rigs and liftboats are cold-stacked, are not counted as available days. Days during which our liftboats are in the shipyard undergoing drydocking or inspection are considered available days for the purposes of calculating utilization. | |
(2) | Average revenue per rig or liftboat per day is defined as revenue earned by our rigs or liftboats, as applicable, in the period divided by the total number of operating days for our rigs or liftboats, as applicable, in the period. | |
(3) | Average operating expense per rig or liftboat per day is defined as operating expenses, excluding depreciation and amortization, incurred by our rigs or liftboats, as applicable, in the period divided by the total number of available days in the period. We use available days to calculate average operating expense per rig or liftboat per day rather than operating days, which are used to calculate average revenue per rig or liftboat per day, because we incur operating expenses on our rigs and liftboats even when they are not under contract and earning a dayrate. In addition, the operating expenses we incur on our rigs and liftboats per day when they are not under contract are typically lower than the per day expenses we incur when they are under contract. |