Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - Helmerich & Payne, Inc. | a11-29984_18k.htm |
Exhibit 99
|
|
NEWS RELEASE |
HELMERICH & PAYNE, INC. / 1437 SOUTH BOULDER AVENUE / TULSA, OKLAHOMA
November 17, 2011
HELMERICH & PAYNE, INC. ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS AND 17 NEW FLEXRIG® CONTRACTS
Helmerich & Payne, Inc. reported income from continuing operations of $434,668,000 ($3.99 per diluted share) from operating revenues of $2,543,894,000 for its fiscal year ended September 30, 2011, compared to income from continuing operations of $286,081,000 ($2.66 per diluted share) from operating revenues of $1,875,162,000 during the prior fiscal year ended September 30, 2010. Included in fiscal 2011 and fiscal 2010 income from continuing operations is non-operating income (after-tax) of $0.09 and $0.03 per diluted share, respectively. Non-operating items included income from the sale of used drilling equipment during 2011 and 2010, and gains on the sale of investment securities during 2011. Net income for fiscal 2011 was $434,186,000 ($3.99 per diluted share), compared to $156,312,000 ($1.45 per diluted share) for fiscal 2010.
Income from continuing operations for the fourth quarter of fiscal 2011 was $121,514,000 ($1.11 per diluted share) from operating revenues of $700,751,000, compared to income from continuing operations of $83,291,000 ($0.77 per diluted share) from operating revenues of $558,957,000 during the fourth fiscal quarter of 2010, and income from continuing operations of $109,828,000 ($1.01 per diluted share) from operating revenues of $644,095,000 during the third fiscal quarter of 2011. Included in income from continuing operations for the fourth and third fiscal quarters of 2011 is non-operating income (after-tax) of $0.02 and $0.03 per diluted share, respectively. Net income for the fourth quarter of fiscal 2011 was $121,420,000 ($1.11 per diluted share), compared to net income of $83,045,000 ($0.77 per diluted share) during the fourth fiscal quarter of 2010, and net income of $109,826,000 ($1.01 per diluted share) during the third fiscal quarter of 2011.
Helmerich & Payne, Inc. also announced today that the Company has entered into agreements with three exploration and production companies to build and operate 17 additional FlexRigs. These 17 rigs will be built under multi-year term contracts and are expected to generate attractive economic returns for the Company. Including new builds announced today and earlier this year, 47 contracted FlexRigs remain under construction and are currently being completed at the rate of approximately four per month. Once these rigs are completed, the Company’s global fleet is expected to include 284 FlexRigs.
Segment operating income for U.S. land operations was $192,133,000 for the fourth fiscal quarter of 2011, compared with $118,894,000 for last year’s fourth fiscal quarter and $176,832,000 for this year’s third fiscal quarter. The sequential increase in segment operating income was primarily attributable to increased drilling activity
(over)
Page 2
News Release
November 17, 2011
resulting from the deployment of new build FlexRigs. The Company’s quarterly revenue days for the segment increased sequentially by approximately five percent to 19,947 revenue days during the fourth fiscal quarter of 2011. The corresponding average rig revenue per day also increased sequentially by $579 to $26,549 during the fourth fiscal quarter of 2011. This $579 increase in average rig revenue per day was partially offset by a $187 increase in average rig expense per day, generating a sequential increase of $392 in average rig margin per day to $13,614 during this year’s fourth fiscal quarter. Rig utilization for the Company’s U.S. land segment was 87% for this year’s third and fourth fiscal quarters, compared with 82% for last year’s fourth fiscal quarter. At September 30, 2011, the Company’s U.S. land segment had 224 contracted rigs (including 149 under term contracts) and 24 idle rigs (including two conventional rigs that were sold in October 2011). Excluded from these 24 idle rigs are seven mechanical rigs that were decommissioned at the end of the fiscal year. The seven decommissioned rigs were the only mechanical rigs remaining in the Company’s global fleet.
President and CEO Hans Helmerich commented, “We are pleased to report all-time record levels in both quarterly revenue and rig activity during the most recent quarter. More importantly, we believe that we are very well positioned to continue to successfully compete in an environment that is increasingly focused on innovative technologies and productivity gains as key contributors to more cost-effective drilling programs. The shale revolution has transformed the U.S. land E&P industry, and the relative strength of crude oil prices has provided a solid foundation for continued drilling activity. Although this industry will continue to be cyclical and closely linked to the global macroeconomic outlook, we expect that our fleet will continue to benefit from premium margins and higher utilization levels as compared to that of our competitors. We believe that our strengths and competitive advantages are difficult to match, and we will remain focused on efforts to expand our lead in years to come.”
Segment operating income for the Company’s offshore operations was $11,871,000 for the fourth fiscal quarter of 2011, compared with $13,107,000 for last year’s fourth fiscal quarter and $12,944,000 for this year’s third fiscal quarter. The sequential decline in operating income was attributable to a lower average rig margin per day during the fourth fiscal quarter. The segment, however, experienced an increase in revenue days that led to an 85% rig utilization level during the fourth fiscal quarter, as compared to 78% during the immediately preceding quarter.
The Company’s international land operations reported segment operating income of $3,525,000 for this year’s fourth fiscal quarter, compared with $15,485,000 for last year’s fourth fiscal quarter and a loss of $624,000 for the third fiscal quarter of 2011. The number of revenue days for the fourth quarter increased by approximately 13 percent as compared to the third quarter. The average rig margin per day for the fourth quarter also increased sequentially, from $5,353 per day during the third quarter to $7,690 per day during the fourth quarter.
Helmerich & Payne, Inc. is primarily a contract drilling company. As of November 17, 2011, the Company’s existing fleet included 250 land rigs in the U.S., 25 international land rigs and nine offshore platform rigs. In addition, the Company is scheduled to complete another 47 new H&P-designed and operated FlexRigs under long-term contracts with customers. Upon completion of these commitments, the Company’s global land fleet is expected to have a total of 322 rigs, including 284 FlexRigs.
(more)
Page 3
News Release
November 17, 2011
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&P’s website indicated above. This release includes “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, and such statements are based on current expectations and assumptions that are subject to risks and uncertainties. All statements other than statements of historical facts included in this release, including, without limitation, statements regarding the registrant’s future financial position, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward-looking statements. For information regarding risks and uncertainties associated with the Company’s business, please refer to the “Risk Factors” and “Management’s Discussion & Analysis of Results of Operations and Financial Condition” sections of the Company’s 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. We undertake no duty to update or revise our forward-looking statements based on changes in internal estimates, expectations or otherwise, except as required by law.
*FlexRig® is a registered trademark of Helmerich & Payne, Inc.
Contact:
Investor Relations
investor.relations@hpinc.com
(918) 588-5207
(more)
Page 4
News Release
November 17, 2011
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
| |||||||||||
|
CONSOLIDATED STATEMENTS OF |
|
June 30 |
|
September 30 |
|
September 30 |
| |||||||||
|
INCOME |
|
2011 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Operating Revenues: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Drilling — U.S. Land |
|
$ |
539,372 |
|
$ |
588,859 |
|
$ |
435,998 |
|
$ |
2,100,508 |
|
$ |
1,412,495 |
|
|
Drilling — Offshore |
|
54,569 |
|
51,395 |
|
49,548 |
|
201,417 |
|
202,734 |
| |||||
|
Drilling — International Land |
|
46,051 |
|
57,160 |
|
69,802 |
|
226,849 |
|
247,179 |
| |||||
|
Other |
|
4,103 |
|
3,337 |
|
3,609 |
|
15,120 |
|
12,754 |
| |||||
|
|
|
644,095 |
|
700,751 |
|
558,957 |
|
2,543,894 |
|
1,875,162 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Operating costs, excluding depreciation |
|
365,586 |
|
396,931 |
|
329,198 |
|
1,432,602 |
|
1,071,959 |
| |||||
|
Depreciation |
|
79,109 |
|
87,018 |
|
73,240 |
|
315,468 |
|
262,658 |
| |||||
|
General and administrative |
|
24,071 |
|
23,086 |
|
20,183 |
|
91,452 |
|
81,479 |
| |||||
|
Research and development |
|
4,399 |
|
4,255 |
|
3,851 |
|
15,764 |
|
12,262 |
| |||||
|
Income from asset sales |
|
(3,488 |
) |
(3,641 |
) |
(747 |
) |
(13,903 |
) |
(4,992 |
) | |||||
|
|
|
469,677 |
|
507,649 |
|
425,725 |
|
1,841,383 |
|
1,423,366 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Operating income |
|
174,418 |
|
193,102 |
|
133,232 |
|
702,511 |
|
451,796 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Interest and dividend income |
|
903 |
|
378 |
|
275 |
|
1,951 |
|
1,811 |
| |||||
|
Interest expense |
|
(3,221 |
) |
(4,170 |
) |
(4,465 |
) |
(17,355 |
) |
(17,158 |
) | |||||
|
Gain on sale of investment securities |
|
913 |
|
— |
|
— |
|
913 |
|
— |
| |||||
|
Other |
|
(190 |
) |
(1,161 |
) |
1,534 |
|
(953 |
) |
1,787 |
| |||||
|
|
|
(1,595 |
) |
(4,953 |
) |
(2,656 |
) |
(15,444 |
) |
(13,560 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income from continuing operations before income taxes |
|
172,823 |
|
188,149 |
|
130,576 |
|
687,067 |
|
438,236 |
| |||||
|
Income tax provision |
|
62,995 |
|
66,635 |
|
47,285 |
|
252,399 |
|
152,155 |
| |||||
|
Income from continuing operations |
|
109,828 |
|
121,514 |
|
83,291 |
|
434,668 |
|
286,081 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Loss from discontinued operations, before income taxes |
|
(2 |
) |
(94 |
) |
1,216 |
|
(487 |
) |
(125,944 |
) | |||||
|
Income tax provision (benefit) |
|
— |
|
— |
|
1,462 |
|
(5 |
) |
3,825 |
| |||||
|
Loss from discontinued operations |
|
(2 |
) |
(94 |
) |
(246 |
) |
(482 |
) |
(129,769 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
NET INCOME |
|
$ |
109,826 |
|
$ |
121,420 |
|
$ |
83,045 |
|
$ |
434,186 |
|
$ |
156,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic earnings per common share: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income from continuing operations |
|
$ |
1.02 |
|
$ |
1.13 |
|
$ |
0.78 |
|
$ |
4.06 |
|
$ |
2.70 |
|
|
Loss from discontinued operations |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(1.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net income |
|
$ |
1.02 |
|
$ |
1.13 |
|
$ |
0.78 |
|
$ |
4.06 |
|
$ |
1.47 |
|
(more)
Page 5
News Release
November 17, 2011
HELMERICH & PAYNE, INC.
Unaudited
(in thousands, except per share data)
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
| |||||||||||
|
CONSOLIDATED STATEMENTS OF |
|
June 30 |
|
September 30 |
|
September 30 |
| |||||||||
|
INCOME |
|
2011 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Diluted earnings per common share: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income from continuing operations |
|
$ |
1.01 |
|
$ |
1.11 |
|
$ |
0.77 |
|
$ |
3.99 |
|
$ |
2.66 |
|
|
Loss from discontinued operations |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
(1.21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Net income |
|
$ |
1.01 |
|
$ |
1.11 |
|
$ |
0.77 |
|
$ |
3.99 |
|
$ |
1.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Basic |
|
106,962 |
|
107,066 |
|
105,814 |
|
106,643 |
|
105,711 |
| |||||
|
Diluted |
|
108,784 |
|
108,782 |
|
107,452 |
|
108,632 |
|
107,404 |
| |||||
(more)
Page 6
News Release
November 17, 2011
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
|
|
|
September 30 |
| ||||
|
CONSOLIDATED CONDENSED BALANCE SHEETS |
|
2011 |
|
2010 |
| ||
|
|
|
|
|
|
| ||
|
ASSETS |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
364,246 |
|
$ |
63,020 |
|
|
Other current assets |
|
584,538 |
|
579,514 |
| ||
|
Current assets of discontinued operations |
|
7,529 |
|
10,270 |
| ||
|
Total current assets |
|
956,313 |
|
652,804 |
| ||
|
Investments |
|
347,924 |
|
320,712 |
| ||
|
Net property, plant, and equipment |
|
3,677,070 |
|
3,275,020 |
| ||
|
Other assets |
|
22,584 |
|
16,834 |
| ||
|
TOTAL ASSETS |
|
$ |
5,003,891 |
|
$ |
4,265,370 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
| ||
|
Current liabilities |
|
$ |
411,750 |
|
$ |
224,646 |
|
|
Current liabilities of discontinued operations |
|
4,979 |
|
7,992 |
| ||
|
Total current liabilities |
|
416,729 |
|
232,638 |
| ||
|
Non-current liabilities |
|
1,079,565 |
|
862,989 |
| ||
|
Non-current liabilities of discontinued operations |
|
2,550 |
|
2,278 |
| ||
|
Long-term notes payable |
|
235,000 |
|
360,000 |
| ||
|
Total shareholders’ equity |
|
3,270,047 |
|
2,807,465 |
| ||
|
|
|
|
|
|
| ||
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
$ |
5,003,891 |
|
$ |
4,265,370 |
|
(more)
Page 7
News Release
November 17, 2011
HELMERICH & PAYNE, INC.
Unaudited
(in thousands)
|
|
|
Years Ended |
| ||||
|
|
|
September 30 |
| ||||
|
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
|
2011 |
|
2010 |
| ||
|
|
|
|
|
|
| ||
|
OPERATING ACTIVITIES: |
|
|
|
|
| ||
|
Net income |
|
$ |
434,186 |
|
$ |
156,312 |
|
|
Adjustment for loss from discontinued operations |
|
482 |
|
129,769 |
| ||
|
Income from continuing operations |
|
434,668 |
|
286,081 |
| ||
|
Depreciation |
|
315,468 |
|
262,658 |
| ||
|
Changes in assets and liabilities |
|
230,507 |
|
(93,237 |
) | ||
|
Gain on sale of assets and investment securities |
|
(14,816 |
) |
(4,992 |
) | ||
|
Other |
|
12,207 |
|
16,140 |
| ||
|
Net cash provided by operating activities from continuing operations |
|
978,034 |
|
466,650 |
| ||
|
Net cash used in operating activities from discontinued operations |
|
(482 |
) |
(4,362 |
) | ||
|
Net cash provided by operating activities |
|
977,552 |
|
462,288 |
| ||
|
|
|
|
|
|
| ||
|
INVESTING ACTIVITIES: |
|
|
|
|
| ||
|
Capital expenditures |
|
(694,264 |
) |
(329,572 |
) | ||
|
Proceeds from sale of assets and investments |
|
30,727 |
|
20,383 |
| ||
|
Purchase of short-term investments |
|
— |
|
(16 |
) | ||
|
Acquisition of TerraVici Drilling Solutions |
|
(4,000 |
) |
— |
| ||
|
Net cash used in investing activities from continuing operations |
|
(667,537 |
) |
(309,205 |
) | ||
|
Net cash used in investing activities from discontinued operations |
|
— |
|
(55 |
) | ||
|
Net cash used in investing activities |
|
(667,537 |
) |
(309,260 |
) | ||
|
|
|
|
|
|
| ||
|
FINANCING ACTIVITIES: |
|
|
|
|
| ||
|
Dividends paid |
|
(26,741 |
) |
(22,254 |
) | ||
|
Decrease in bank overdraft |
|
— |
|
(2,038 |
) | ||
|
Exercise of stock options |
|
15,441 |
|
(202 |
) | ||
|
Net proceeds from (payments for) short-term and long-term debt |
|
(10,000 |
) |
(165,000 |
) | ||
|
Excess tax benefit from stock-based compensation |
|
12,511 |
|
3,344 |
| ||
|
Net cash used in financing activities |
|
(8,789 |
) |
(186,150 |
) | ||
|
|
|
|
|
|
| ||
|
Net increase (decrease) in cash and cash equivalents |
|
301,226 |
|
(33,122 |
) | ||
|
Cash and cash equivalents, beginning of period |
|
63,020 |
|
96,142 |
| ||
|
Cash and cash equivalents, end of period |
|
$ |
364,246 |
|
$ |
63,020 |
|
(more)
Page 8
News Release
November 17, 2011
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
| |||||||||||
|
|
|
June 30 |
|
September 30 |
|
September 30 |
| |||||||||
|
SEGMENT REPORTING |
|
2011 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |||||
|
|
|
(in thousands, except days and per day amounts) |
| |||||||||||||
|
U.S. LAND OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Revenues |
|
$ |
539,372 |
|
$ |
588,859 |
|
$ |
435,998 |
|
$ |
2,100,508 |
|
$ |
1,412,495 |
|
|
Direct operating expenses |
|
289,311 |
|
317,317 |
|
251,280 |
|
1,119,700 |
|
772,766 |
| |||||
|
General and administrative expense |
|
6,330 |
|
6,493 |
|
5,606 |
|
25,066 |
|
23,799 |
| |||||
|
Depreciation |
|
66,899 |
|
72,916 |
|
60,218 |
|
264,127 |
|
211,652 |
| |||||
|
Segment operating income |
|
$ |
176,832 |
|
$ |
192,133 |
|
$ |
118,894 |
|
$ |
691,615 |
|
$ |
404,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Revenue days |
|
18,912 |
|
19,947 |
|
16,303 |
|
73,905 |
|
55,051 |
| |||||
|
Average rig revenue per day |
|
$ |
25,970 |
|
$ |
26,549 |
|
$ |
24,385 |
|
$ |
25,809 |
|
$ |
23,909 |
|
|
Average rig expense per day |
|
$ |
12,748 |
|
$ |
12,935 |
|
$ |
13,054 |
|
$ |
12,538 |
|
$ |
12,288 |
|
|
Average rig margin per day |
|
$ |
13,222 |
|
$ |
13,614 |
|
$ |
11,331 |
|
$ |
13,271 |
|
$ |
11,621 |
|
|
Rig utilization |
|
87 |
% |
87 |
% |
82 |
% |
86 |
% |
73 |
% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
OFFSHORE OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Revenues |
|
$ |
54,569 |
|
$ |
51,395 |
|
$ |
49,548 |
|
$ |
201,417 |
|
$ |
202,734 |
|
|
Direct operating expenses |
|
36,664 |
|
33,841 |
|
31,671 |
|
135,368 |
|
131,325 |
| |||||
|
General and administrative expense |
|
1,532 |
|
1,579 |
|
1,384 |
|
6,074 |
|
5,821 |
| |||||
|
Depreciation |
|
3,429 |
|
4,104 |
|
3,386 |
|
14,684 |
|
12,519 |
| |||||
|
Segment operating income |
|
$ |
12,944 |
|
$ |
11,871 |
|
$ |
13,107 |
|
$ |
45,291 |
|
$ |
53,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Revenue days |
|
638 |
|
701 |
|
644 |
|
2,544 |
|
2,642 |
| |||||
|
Average rig revenue per day |
|
$ |
54,417 |
|
$ |
54,176 |
|
$ |
42,312 |
|
$ |
51,794 |
|
$ |
47,534 |
|
|
Average rig expense per day |
|
$ |
28,597 |
|
$ |
32,393 |
|
$ |
19,731 |
|
$ |
29,379 |
|
$ |
24,653 |
|
|
Average rig margin per day |
|
$ |
25,820 |
|
$ |
21,783 |
|
$ |
22,581 |
|
$ |
22,415 |
|
$ |
22,881 |
|
|
Rig utilization |
|
78 |
% |
85 |
% |
78 |
% |
77 |
% |
80 |
% | |||||
(more)
Page 9
News Release
November 17, 2011
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
| |||||||||||
|
|
|
June 30 |
|
September 30 |
|
September 30 |
| |||||||||
|
SEGMENT REPORTING |
|
2011 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |||||
|
|
|
(in thousands, except days and per day amounts) |
| |||||||||||||
|
INTERNATIONAL LAND OPERATIONS |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Revenues |
|
$ |
46,051 |
|
$ |
57,160 |
|
$ |
69,802 |
|
$ |
226,849 |
|
$ |
247,179 |
|
|
Direct operating expenses |
|
39,131 |
|
45,269 |
|
45,647 |
|
175,728 |
|
166,021 |
| |||||
|
General and administrative expense |
|
825 |
|
759 |
|
971 |
|
3,392 |
|
2,949 |
| |||||
|
Depreciation |
|
6,719 |
|
7,607 |
|
7,699 |
|
28,018 |
|
29,938 |
| |||||
|
Segment operating income (loss) |
|
$ |
(624 |
) |
$ |
3,525 |
|
$ |
15,485 |
|
$ |
19,711 |
|
$ |
48,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Revenue days |
|
1,437 |
|
1,625 |
|
1,976 |
|
6,406 |
|
7,254 |
| |||||
|
Average rig revenue per day |
|
$ |
29,201 |
|
$ |
30,001 |
|
$ |
33,194 |
|
$ |
31,633 |
|
$ |
32,451 |
|
|
Average rig expense per day |
|
$ |
23,848 |
|
$ |
22,311 |
|
$ |
20,621 |
|
$ |
23,416 |
|
$ |
21,142 |
|
|
Average rig margin per day |
|
$ |
5,353 |
|
$ |
7,690 |
|
$ |
12,573 |
|
$ |
8,217 |
|
$ |
11,309 |
|
|
Rig utilization |
|
65 |
% |
74 |
% |
78 |
% |
70 |
% |
71 |
% | |||||
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 |
|
$ |
48,236 |
|
$ |
59,295 |
|
$ |
38,457 |
|
$ |
193,093 |
|
$ |
96,304 |
|
|
Offshore Operations |
|
$ |
12,817 |
|
$ |
5,487 |
|
$ |
11,211 |
|
$ |
33,718 |
|
$ |
37,594 |
|
|
International Land Operations |
|
$ |
4,089 |
|
$ |
8,409 |
|
$ |
4,210 |
|
$ |
24,207 |
|
$ |
11,779 |
|
(more)
Page 10
News Release
November 17, 2011
Segment operating income for all segments is a non-GAAP financial measure of the Company’s 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 Company’s core businesses. This measure is used by the Company to facilitate period-to-period comparisons in operating performance of the Company’s 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 Company’s operating performance in future periods.
The following table reconciles operating income per the information above to income from continuing operations before income taxes as reported on the Consolidated Statements of Income (in thousands).
|
|
|
Three Months Ended |
|
Fiscal Year Ended |
| |||||||||||
|
|
|
June 30 |
|
September 30 |
|
September 30 |
| |||||||||
|
|
|
2011 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
| |||||
|
Operating income |
|
|
|
|
|
|
|
|
|
|
| |||||
|
U.S. Land |
|
$ |
176,832 |
|
$ |
192,133 |
|
$ |
118,894 |
|
$ |
691,615 |
|
$ |
404,278 |
|
|
Offshore |
|
12,944 |
|
11,871 |
|
13,107 |
|
45,291 |
|
53,069 |
| |||||
|
International Land |
|
(624 |
) |
3,525 |
|
15,485 |
|
19,711 |
|
48,271 |
| |||||
|
Other |
|
(2,078 |
) |
(2,638 |
) |
(1,745 |
) |
(7,682 |
) |
(6,765 |
) | |||||
|
Segment operating income |
|
$ |
187,074 |
|
$ |
204,891 |
|
$ |
145,741 |
|
$ |
748,935 |
|
$ |
498,853 |
|
|
Corporate general and administrative |
|
(15,384 |
) |
(14,255 |
) |
(12,222 |
) |
(56,920 |
) |
(48,910 |
) | |||||
|
Other depreciation |
|
(1,423 |
) |
(1,676 |
) |
(1,309 |
) |
(5,829 |
) |
(5,275 |
) | |||||
|
Inter-segment elimination |
|
663 |
|
501 |
|
275 |
|
2,422 |
|
2,136 |
| |||||
|
Income from asset sales |
|
3,488 |
|
3,641 |
|
747 |
|
13,903 |
|
4,992 |
| |||||
|
Operating income |
|
$ |
174,418 |
|
$ |
193,102 |
|
$ |
133,232 |
|
$ |
702,511 |
|
$ |
451,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| |||||
|
Interest and dividend income |
|
903 |
|
378 |
|
275 |
|
1,951 |
|
1,811 |
| |||||
|
Interest expense |
|
(3,221 |
) |
(4,170 |
) |
(4,465 |
) |
(17,355 |
) |
(17,158 |
) | |||||
|
Gain on sale of investment securities |
|
913 |
|
— |
|
— |
|
913 |
|
— |
| |||||
|
Other |
|
(190 |
) |
(1,161 |
) |
1,534 |
|
(953 |
) |
1,787 |
| |||||
|
Total other income (expense) |
|
(1,595 |
) |
(4,953 |
) |
(2,656 |
) |
(15,444 |
) |
(13,560 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
Income from continuing operations before income taxes |
|
$ |
172,823 |
|
$ |
188,149 |
|
$ |
130,576 |
|
$ |
687,067 |
|
$ |
438,236 |
|
# # #