Superior Energy Services Announces Fourth Quarter 2023 Results and Conference Call
Published
HOUSTON, March 07, 2024 (GLOBE NEWSWIRE) -- Superior Energy Services, Inc. (the “Company”) reported its results for the fiscal quarter and full year ended December 31, 2023. In accordance with the Company’s Shareholders Agreement, it will host a conference call with shareholders on March 11, 2024.For the fourth quarter of 2023, the Company reported net income from continuing operations of $44.6 million, or $2.21 per diluted share, and revenue of $244.4 million. This compares to net income from continuing operations of $32.6 million or $1.62 per diluted share, and revenue of $210.4 million, for the third quarter of 2023. During the third and fourth quarters of 2023, we utilized an indirect foreign mechanism known as a Blue Chip Swap (“BCS”) to remit a total of $13.9 million U.S. dollars from Argentina through the purchase and sale of BCS securities. These transactions resulted in a net loss of $12.1 million and $7.8 million in the third and fourth quarter of 2023, respectively.
For the year ended December 31, 2023, net income from continuing operations was $174.6 million, or $8.66 per diluted share, with revenue of $919.4 million. Net income from continuing operations for 2023 was impacted by the purchase and sale of BCS securities, which resulted in a net loss of $19.9 million in 2023. For the year ended December 31, 2022, net income from continuing operations was $291.0 million, or $14.49 per diluted share, and revenue of $884.0 million. Net income from continuing operations for 2022 was impacted by recognition of a worthless stock deduction and valuation allowance releases with estimated net tax benefits of $104.0 million and $18.5 million, respectively. Additionally, an immaterial misstatement was identified and recorded during 2023 related to the worthless stock deduction, resulting in additional income tax expense of $7.6 million.
The Company’s Adjusted EBITDA (a non-GAAP measure defined on page 5) was $85.3 million for the fourth quarter of 2023 compared to $71.8 million in the third quarter of 2023. For the full year, Adjusted EBITDA was $322.4 million compared to $282.1 million in 2022. Refer to pages 13 and 14 for a Reconciliation of Adjusted EBITDA to GAAP results.
Brian Moore, Chief Executive Officer, commented, “I’m pleased to report Superior’s financial performance for the fourth quarter of 2023 was in line with expectations. Our results are illustrative of our responsive people and their leaders, our highly engineered and desirable assets, and established recognized brands with strong positions in their respective markets. We appreciate our people, customers and suppliers for their continued contributions, not only with our strong year-end, but throughout a very good 2023 at Superior Energy.”
*Fourth Quarter 2023 Geographic Breakdown *
U.S. land revenue was $44.8 million in the fourth quarter of 2023, a 2% decrease compared to revenue of $45.7 million in the third quarter of 2023 and was driven primarily by declines in our hydraulic workover and snubbing activities and well control services components within Well Services alongside a lower U.S. land rig count.
U.S. offshore revenue was $96.3 million in the fourth quarter of 2023, an increase of 63% compared to revenue of $59.1 million in the third quarter of 2023. The increase was driven by a large deepwater project in our completion services business unit.
International revenue was $103.4 million in the fourth quarter of 2023, a decrease of 2% compared to revenue of $105.5 million in the third quarter of 2023, primarily due to a decline in activity from well control services within our Well Services segment. This was partially offset by increases in international premium drill pipe activities within our Rental Services segment.
*Fourth Quarter 2023 Segment Reporting*
The Rentals segment revenue in the fourth quarter of 2023 was $117.8 million, an increase of 4% compared to revenue of $113.2 million in the third quarter of 2023 due to increases in premium drill pipe activity across all geographic locations. Adjusted EBITDA for the fourth quarter of 2023 was $69.8 million, a 1% increase from the third quarter of 2023. Adjusted EBITDA Margin (a non-GAAP measure defined on page 5) was 59%, a 2% decrease from the third quarter of 2023.
The Well Services segment revenue in the fourth quarter of 2023 was $126.6 million, a 30% increase compared to revenue of $97.2 million in the third quarter of 2023, primarily from completion services within our U.S. offshore markets. Adjusted EBITDA for the fourth quarter of 2023 was $31.2 million with an Adjusted EBITDA Margin of 25%, as compared to Adjusted EBITDA of $15.1 million with an Adjusted EBITDA Margin of 16% in the third quarter of 2023. The increase in both Adjusted EBITDA and Adjusted EBITDA Margin for the fourth quarter of 2023 was largely driven by improved results from our completion services business unit.
*Calendar Year 2023 Segment Reporting*
The Rentals segment revenue in 2023 was $452.2 million, a 12% increase compared to revenue of $402.9 million in 2022. This increase is primarily attributable to increased revenue across all rental product service lines, which include our premium drill pipe, accommodations and bottom hole assemblies. Adjusted EBITDA of $274.4 million contributed 73% of the Company’s total Adjusted EBITDA before including corporate costs. Full year 2023 Adjusted EBITDA Margin within Rentals was 61%, a 2% increase from the 2022 margin of 59%. The increase in margins was primarily driven by higher offshore and international rig counts that provided for greater utilization of these rentals.
The Well Services segment revenue in 2023 was $467.2 million, a 3% decrease compared to revenue of $481.0 million in 2022. Revenues in 2023 were impacted by the disposition of certain non-core businesses in second half of 2022 and 2023 which negatively affected revenues by $36.0 million in 2023. Excluding the impact of these dispositions, revenues in 2023 increased $22.2 million from improvements in our completion services and well control service lines. Adjusted EBITDA for 2023 was $100.9 million for an Adjusted EBITDA Margin of 22%, a 2% increase from the 2022 margin of 20%. This increase was driven by continued increases in service revenues with higher margins, such as our U.S. offshore and international completions and international well control services. Additionally, increased offshore and international rig counts allowed for higher activity in our U.S. offshore and international operations.
*Liquidity*
As of December 31, 2023, the Company had cash, cash equivalents, and restricted cash of approximately $477.1 million and the availability remaining under our ABL Credit Facility was approximately $108.5 million, assuming continued compliance with the covenants under our ABL Credit Facility. We had no balances outstanding under the Credit Facility on December 31, 2023.
Total cash proceeds received during the fourth quarter of 2023 from the sale of non-core businesses and assets were $6.4 million compared to $9.6 million received during the third quarter of 2023.
During the third and fourth quarters of 2023, we received cash proceeds from the utilization of an indirect foreign exchange mechanism known as a Blue Chip Swap (“BCS”). We received cash proceeds related to the sale of BCS securities of approximately $4.3 million during the fourth quarter of 2023 and $9.7 million during the third quarter of 2023. Additionally, during 2023, we paid $27.1 million to the Washington State Department of Revenue related to a use tax assessment from several years ago that we have appealed and is currently under review. During the third and fourth quarters of 2023, we incurred approximately $3.4 million and $4.5 million in decommissioning costs associated with our oil and gas platform in the Gulf of Mexico.
The Company remains focused on cash conversion. Free Cash Flow (a non-GAAP measure defined on page 5) for the fourth quarter of 2023 totaled $39.8 million compared to $30.8 million for the third quarter of 2023. Fourth quarter capital expenditures were $7.3 million, and capital expenditures for the year ended December 31, 2023 totaled $74.5 million. Refer to page 10 for a reconciliation of Free Cash Flow to Net Cash from Operating Activities.
In the fourth quarter of 2023, our Board declared a special cash dividend of $12.38 per share on our outstanding Class A Common Stock. The special dividend is expected to be paid on March 12, 2024 to shareholders of record as of February 27, 2024.
*2024 Guidance*
Regarding 2024 guidance, there are four key drivers that we expect to impact projected 2024 results with a decline in both revenue and Adjusted EBITDA as compared to 2023.
1. A reduced US Land rig count will create fewer opportunities for our premium drill pipe and bottom hole accessory business units.
2. A cyclical shift in activity in the Gulf of Mexico from completions oriented operations in 2023 to drilling oriented operations in 2024 will create a different mix of business for our premium drill pipe business unit, leading to both lower activity and lower margins.
3. Our completion services business unit, coming off of a very strong product delivery year in 2023 which reflects the long lead time, project nature of deep water development, will cycle to a higher mix of lower margin service revenue in 2024.
4. In 2023, our well control business unit benefited from a number of special projects, which we do not expect to repeat in 2024 as these types of projects are often contemplated by customers several years in advance.
Based on the previously noted factors, we expect first quarter 2024 revenue to come in between $210 million to $240 million and first quarter 2024 Adjusted EBITDA is expected to be between $65 million to $80 million.
For full year 2024 guidance, we expect revenue to come in at a range of $800 million to $875 million with Adjusted EBITDA in a range of $250 million to $310 million. Full year capital spending is expected to be in a range of $90 million to $110 million.
The Company’s 2024 outlook reflects its expectation for continued execution consistent with its 2023 results notwithstanding the shift in U.S. Gulf of Mexico rig operations from more completion oriented operations in 2023 to more drilling oriented operations in 2024. This is not necessarily driven by commodity prices or long-term development strategies, but by normal sequencing of operations as determined by our customers. This shift will likely negatively impact revenue mix and margins, but we believe rig operations are likely to cycle back toward completion oriented operations in 2025 with our consolidated revenue mix and margins expected to be similar to what we delivered in 2023.
*Strategic Outlook *
The Company’s positive performance in 2023 validates the strategy developed in 2021 with a sequential focus on product lines, geographic footprint and support cost rationalization. Over the last three years, we have met and overcome challenges and delivered on safety, service quality and financial performance. We have consistently demonstrated discipline and stewardship as evidenced by our return of cash to shareholders, with an approximately $250 million dividend in December 2022 and an additional approximately $250 million dividend expected in March 2024, all while retaining a strong capital structure.
In 2024, the Company will continue to explore alternatives to enhance shareholder value, including potential merger or acquisition opportunities. As part of this process, we remain in, and continue to pursue, preliminary or exploratory dialogue with various potential counterparties. In parallel, the Company will continue to seek opportunities to optimize its capital structure, including actions to facilitate additional return of capital to shareholders.
Our Board has not set a timetable or made any decisions related to further actions or potential strategic alternatives, including a future dividend, at this time. The declaration of dividends is at the discretion of the Company’s board of directors and will depend on the Company’s financial results, cash requirements, future prospects, contractual restrictions and other factors deemed relevant by the Company’s board of directors. Additionally, any potential transaction would depend upon entry into definitive agreements with a potential counterparty on terms acceptable to us. There can be no assurance that we will enter any such transaction or consummate or pursue any transaction or other strategic alternative.
*Conference Call Information*
The Company’s management team will host a conference call on Monday, March 11^th, 2024 at 1:00 PM CST. 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 March 11^th, 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 https://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) before net interest expense, income tax expense (benefit) and depreciation, amortization, accretion and depletion, adjusted for other gains and losses, 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” included on pages 13 and 14 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.
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” 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, the special dividend payable in 2024, strategic alternatives (including dispositions, acquisitions, and the timing thereof), 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 and the availability of strategic partners, 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, Form 10-Q for any subsequent interim period, and those set forth from time to time in the Company’s other current or 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.
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
*SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES*
*CONSOLIDATED STATEMENTS OF OPERATIONS*
(in thousands, unaudited) *Three Months Ended* *Year Ended* *December 31,* *September 30,* *December 31,* *December 31,* *2023* *2023* *2022* *2023* *2022*
Revenues
Rentals $ 117,816 $ 113,201 $ 105,900 $ 452,249 $ 402,942
Well Services 126,609 97,184 133,203 467,171 481,018
* Total revenues* 244,425 210,385 239,103 919,420 883,960
Cost of revenues
Rentals 40,577 37,769 36,380 149,835 137,626
Well Services 85,230 72,076 91,142 324,292 339,325
* Total cost of revenues* 125,807 109,845 127,522 474,127 476,951
Depreciation, depletion, amortization and accretion 19,818 20,490 20,121 81,068 98,060
General and administrative expenses 33,403 30,089 34,204 125,659 128,294
Restructuring and transaction expenses 1,311 - 1,934 3,294 6,375
Other (gains) and losses, net (1,125 ) (4,073 ) 1,129 (6,549 ) (29,134 )
* Income from operations* 65,211 54,034 54,193 241,821 203,414
Other income (expense):
Interest income, net 7,180 6,629 5,702 25,761 11,713
Loss on Blue Chip Swap securities (7,736 ) (12,120 ) - (19,856 ) -
Other income (expense), net (4,883 ) (4,520 ) 4,558 (13,391 ) (1,804 )
* Income from continuing operations before income taxes* 59,772 44,023 64,453 234,335 213,323
Income tax benefit (expense) (15,126 ) (11,403 ) 110,532 (59,741 ) 77,719
* Net income from continuing operations* 44,646 32,620 174,985 174,594 291,042
Income (loss) from discontinued operations, net of income tax 18 128 (4,389 ) 426 (4,577 )
* Net income* $ 44,664 $ 32,748 $ 170,596 $ 175,020 $ 286,465
* Income (loss) per share - basic:*
Net income from continuing operations $ 2.22 $ 1.62 $ 8.73 $ 8.68 $ 14.53
Income (loss) from discontinued operations, net of income tax - 0.01 (0.22 ) 0.02 (0.22 )
Net income $ 2.22 $ 1.63 $ 8.51 $ 8.70 $ 14.31
* Income (loss) per share - diluted:*
Net income from continuing operations $ 2.21 $ 1.62 $ 8.69 $ 8.66 $ 14.49
Income (loss) from discontinued operations, net of income tax - - (0.21 ) 0.02 (0.23 )
Net income $ 2.21 $ 1.62 $ 8.48 $ 8.68 $ 14.26
* Weighted-average shares outstanding*
Basic 20,136 20,136 20,049 20,126 20,024
Diluted 20,177 20,159 20,125 20,152 20,087
*SUPERIOR ENERGY SERVICES, INC.*
*CONSOLIDATED BALANCE SHEETS*
(in thousands, unaudited) *December 31,* *2023* *2022*
* ASSETS*
Current assets
Cash and cash equivalents $ 391,684 $ 258,999
Accounts receivable, net 276,868 249,808
Income taxes receivable 10,542 6,665
Prepaid expenses 18,614 17,299
Inventory 74,995 65,587
Other current assets 7,922 6,276
Assets held for sale - 11,978
Total current assets 780,625 616,612
Property, plant and equipment, net 294,960 282,376
Note receivable 69,005 69,679
Restricted cash 85,444 80,108
Deferred tax assets 67,241 97,492
Other assets, net 43,718 44,745
Total assets $ 1,340,993 $ 1,191,012
* LIABILITIES AND STOCKHOLDERS' EQUITY*
Current liabilities:
Accounts payable $ 38,214 $ 31,570
Accrued expenses 103,782 116,575
Income taxes payable 20,220 11,682
Decommissioning liability 21,631 9,770
Liabilities held for sale - 3,349
Total current liabilities 183,847 172,946
Decommissioning liability 148,652 150,901
Other liabilities 47,583 84,281
Total liabilities 380,082 408,128
Total stockholders' equity 960,911 782,884
Total liabilities and stockholders' equity $ 1,340,993 $ 1,191,012
*SUPERIOR ENERGY SERVICES, INC.*
*STATEMENTS OF CASH FLOWS*
(in thousands, unaudited) *Three Months Ended**
* *Year Ended**
* *December 31,* *September 30,* *December 31,**
* *2023* *2023* *2023*
* Cash flows from operating activities*
Net income $ 44,664 $ 32,748 $ 175,020
Adjustments to reconcile net income to net cash from operating activities -
Depreciation, depletion, amortization and accretion 19,818 20,490 81,068
Other non-cash items 517 566 23,874
Loss on Blue Chip Swap securities 7,736 12,120 19,856
Washington State Tax Payment - - (27,068 )
Decommissioning Costs (4,497 ) (3,401 ) (10,776 )
Changes in operating assets and liabilities (21,194 ) (10,112 ) (59,584 )
Net cash from operating activities 47,044 52,411 202,390
* Cash flows from investing activities*
Payments for capital expenditures (7,278 ) (21,592 ) (74,496 )
Proceeds from sales of assets 6,389 9,563 31,099
Proceeds from sales of Blue Chip Swap securities 4,256 9,656 13,912
Purchases of Blue Chip Swap securities (11,992 ) (21,776 ) (33,768 )
Net cash from investing activities (8,625 ) (24,149 ) (63,253 )
* Cash flows from financing activities*
Other - - (1,116 )
Net cash from financing activities - - (1,116 )
Net change in cash, cash equivalents and restricted cash 38,419 28,262 138,021
Cash, cash equivalents and restricted cash at beginning of period - 410,447 339,107
Cash, cash equivalents and restricted cash at end of period $ 38,419 $ 438,709 $ 477,128
Reconciliation of Free Cash Flow
Net cash from operating activities $ 47,044 $ 52,411 $ 202,390
Payments for capital expenditures (7,278 ) (21,592 ) (74,496 )
Free Cash Flow $ 39,766 $ 30,819 $ 127,894
Free Cash Flow is a Non-GAAP measure. See Non-GAAP 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* *Year Ended* *December 31,* *September 30,* *December 31,* *December 31,* *2023* *2023* *2022* *2023* *2022*
U.S. land
Rentals $ 39,597 $ 37,478 $ 43,316 $ 166,938 $ 160,742
Well Services 5,188 8,223 6,051 25,572 24,558
* Total U.S. land* 44,785 45,701 49,367 192,510 185,300
U.S. offshore
Rentals 43,904 44,681 33,968 161,771 140,881
Well Services 52,380 14,459 38,349 106,565 122,848
* Total U.S. offshore* 96,284 59,140 72,317 268,336 263,729
International
Rentals 34,315 $ 31,042 28,616 123,540 101,319
Well Services 69,041 74,502 88,803 335,034 333,612
* Total International* 103,356 105,544 117,419 458,574 434,931
* Total Revenues* $ 244,425 $ 210,385 $ 239,103 $ 919,420 $ 883,960
*SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES*
*SEGMENT HIGHLIGHTS*
(in thousands, unaudited) *Three Months Ended* *Year Ended* *December 31,* *September 30,* *December 31,* *December 31,* *2023* *2023* *2022* *2023* *2022*
* Revenues*
Rentals $ 117,816 $ 113,201 $ 105,900 $ 452,249 $ 402,942
Well Services 126,609 97,184 133,203 467,171 481,018
* Total Revenues* $ 244,425 $ 210,385 $ 239,103 $ 919,420 $ 883,960
* Income from Operations*
Rentals $ 57,647 $ 56,253 $ 50,001 $ 225,020 $ 183,636
Well Services 23,956 10,581 20,998 74,816 84,529
Corporate and other (16,392 ) (12,800 ) (16,806 ) (58,015 ) (64,751 )
* Total Income from Operations* $ 65,211 $ 54,034 $ 54,193 $ 241,821 $ 203,414
* Adjusted EBITDA*
Rentals $ 69,802 $ 68,791 $ 62,633 $ 274,434 $ 237,663
Well Services 31,194 15,137 28,738 100,891 95,819
Corporate and other (15,712 ) (12,125 ) (11,467 ) (52,919 ) (51,421 )
* Total Adjusted EBITDA* $ 85,284 $ 71,803 $ 79,904 $ 322,406 $ 282,061
* Adjusted EBITDA Margin*
Rentals 59 % 61 % 59 % 61 % 59 %
Well Services 25 % 16 % 22 % 22 % 20 %
Corporate and other n/a n/a n/a n/a n/a
* Total Adjusted EBITDA Margin* 35 % 34 % 33 % 35 % 32 %
Adjusted EBITDA is a Non-GAAP measure. See Non-GAAP Measures for our definition of Adjusted EBITDA.
*SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES*
*RECONCILIATION OF ADJUSTED EBITDA (Non-GAAP)*
(in thousands, unaudited) *Three Months Ended* *Year Ended* *December 31,* *September 30,* *December 31,* *December 31,* *2023* *2023* *2022* *2023* *2022*
* Net income from continuing operations* $ 44,646 $ 32,620 $ 174,985 $ 174,594 $ 291,042
Depreciation, depletion, amortization and accretion 19,818 20,490 20,121 81,068 98,060
Interest income, net (7,180 ) (6,629 ) (5,702 ) (25,761 ) (11,713 )
Income tax (benefit) expense 15,126 11,403 (110,532 ) 59,741 (77,719 )
Restructuring and transaction expenses 1,311 - 1,934 3,294 6,375
Other (gains) losses, net (1,056 ) (2,721 ) 3,656 (3,777 ) (25,788 )
Other (income) expense, net 4,883 4,520 (4,558 ) 13,391 1,804
Loss on Blue Chip Swap Securities 7,736 12,120 - 19,856 -
*Adjusted EBITDA* $ 85,284 $ 71,803 $ 79,904 $ 322,406 $ 282,061
Adjusted EBITDA is a Non-GAAP measure. See Non-GAAP Measures for our definition of Adjusted EBITDA.
*SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES*
*RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT*
(in thousands, unaudited) *Three Months Ended* *Year Ended* *December 31,* *September 30,* *December 31,* *December 31,* *2023* *2023* *2022* *2023* *2022*
* Rentals*
Income from operations $ 57,647 $ 56,253 $ 50,001 $ 225,020 $ 183,636
Depreciation, depletion, amortization and accretion 12,155 12,538 12,632 49,414 58,731
Other adjustments ^(1) - - - - (4,704 )
Adjusted EBITDA $ 69,802 $ 68,791 $ 62,633 $ 274,434 $ 237,663
* Wells Services*
Income from operations $ 23,956 $ 10,581 $ 20,998 $ 74,816 $ 84,529
Depreciation, depletion, amortization and accretion 7,238 7,277 6,551 28,796 34,841
Other adjustments ^(2) - (2,721 ) 1,189 (2,721 ) (23,551 )
Adjusted EBITDA $ 31,194 $ 15,137 $ 28,738 $ 100,891 $ 95,819
* Corporate*
Loss from operations $ (16,392 ) $ (12,800 ) (16,806 ) $ (58,015 ) $ (64,751 )
Depreciation, depletion, amortization and accretion 425 675 938 2,858 4,488
Restructuring expenses 1,311 - 1,934 3,294 6,375
Other adjustments ^(2) (1,056 ) - 2,467 (1,056 ) 2,467
Adjusted EBITDA $ (15,712 ) $ (12,125 ) $ (11,467 ) $ (52,919 ) $ (51,421 )
* Total*
Income from operations $ 65,211 $ 54,034 $ 54,193 $ 241,821 $ 203,414
Depreciation, depletion, amortization and accretion 19,818 20,490 20,121 81,068 98,060
Restructuring expenses 1,311 - 1,934 3,294 6,375
Other adjustments (1,056 ) (2,721 ) 3,656 (3,777 ) (25,788 )
Adjusted EBITDA $ 85,284 $ 71,803 $ 79,904 $ 322,406 $ 282,061
Adjusted EBITDA is a Non-GAAP measure. See Non-GAAP Measures for our definition of Adjusted EBITDA.
^(1) Adjustments for disposal activities related to non-core businesses
^(2) Adjustments for exit and disposal activities related to non-core businesses and the residual gain from revisions to our estimated decommissioning liability