HOUSTON - Superior Energy Services, Inc. (the 'Company') filed its Form 10-K for the period ending December 31, 2021 on March 21, 2022.
In accordance with the Company's Shareholders Agreement, it will host a conference call with shareholders on Friday, March 25, 2022.
Brian Moore, Chief Executive Officer, commented, 'In March 2021, we initiated a significant transformation effort which has positioned the Company to now build on a simplified business model which is delivering improved margins and returns through operational efficiencies and G&A cost controls, accompanied by increased pricing and utilization associated with higher activity levels. Our results for the fourth quarter reflect our focus on a more disciplined approach, both operationally and financially. Our well established, high quality products and services delivered from key locations positioned in our target markets continue to be attractive to our customers. We remain committed not only to the performance our people and equipment are known for delivering, but also to adding value for stakeholders.'
Mike McGovern, Executive Chairman of the Board, added 'Superior is well positioned to take advantage of the commodity price increases you're seeing in the market today. The Company emerged from bankruptcy without any debt, significant cash, and is generating free cash flow putting it in position to be a value-adding participant in the oilfield service sector. Our growing cash balance and industry leading brands provide the Company optionality to participate in further sector consolidation.'
Moore further commented, 'Demand is high and increasing for our less labor-intensive rental businesses, especially premium drill pipe and bottom hole drill assembly accessories, where we benefit from significant capacity accumulated through consistent investments over time. The availability of tools to the market is expected to be tested and we will continue to invest the majority of our 2022 capital spending into these businesses. Following our disciplined approach, our businesses will remain primarily focused on markets and geographies with a proven track record of success through the cycles.'
Fourth Quarter 2021 Results
The Company reported a loss from operations of $41.3 million for the fourth quarter of 2021 on revenue of $198.4 million. This compares to a loss from operations of $44.0 million for the third quarter of 2021 on revenues of $178.6 million. In the fourth quarter of 2020, the Company reported a loss from operations of $36.5 million on revenues of $145.5 million.
The Company's Adjusted EBITDA (a non-GAAP measure) was $40.1 million for the quarter, an increase compared to $31.4 million in third quarter 2021. Refer to page 10 for a Reconciliation of Adjusted EBITDA to GAAP results.
The valuation process under fresh start accounting caused certain fully depreciated assets to be assigned an estimated fair value of $197.5 million and remaining useful life of less than 36 months. Depreciation expense for the full year was $214.0 million. Depreciation expense for the years ended December 31, 2022 and 2023 is expected to be approximately $86.8 million and $57.8 million, respectively.
Full Year 2021 Results
For the year ended December 31, 2021, the Company's loss from operations was $155.1 million, on revenue of $694.7 million as compared with loss from operations of $133.3 million on revenue of $667.2 million for the year ended December 31, 2020. The Company's Adjusted EBITDA (a non-GAAP measure) for the full year was $126.2 million. Refer to page 10 for a Reconciliation of Adjusted EBITDA to GAAP results.
Fourth Quarter 2021 Geographic Breakdown
U.S. land revenue was $34.5 million in the fourth quarter of 2021, an increase of 7% compared to revenue of $32.3 million in the third quarter of 2021. U.S. offshore revenue was $52.0 million in the fourth quarter of
2021, generally flat compared to revenue of $51.8 million in the third quarter of 2021. International revenue was $111.9 million in the fourth quarter of 2021, an increase of 18% compared to revenue of $94.6 million in the third quarter of 2021.
Segment Reporting
The Rentals segment revenue in the fourth quarter of 2021 was $82.8 million, a 9% increase from third quarter 2021 revenue of $76.2 million. The Well Services segment revenue in the fourth quarter of 2021 was $115.6 million, a 13% increase from the third quarter 2021 revenue of $102.4 million.
Discontinued Operations
The Company reported a net loss from discontinued operations for the fourth quarter of 2021 of $6.1 million on revenue of $5.3 million. This compares to a net loss from discontinued operations for the third quarter of 2021 of $5.2 million on revenue of $17.0 million.
At the end of the fourth quarter 2021, assets held for sale totaled $37.5 million, which includes approximately $23.5 million of assets relating to various real estate holdings across US basins that we expect to monetize in 2022.
Total cash proceeds received from the sale of non-core assets through December 31, 2021 are $98.3 million. Additionally, at December 31, 2021 the Company owned 4.1 million shares of Select Energy Services Class A common stock (NYSE: WTTR).
Liquidity
As of February 28, 2022, the Company had cash, cash equivalents, and restricted cash of approximately $427.8 million and the availability remaining under our ABL Credit Facility was approximately $79.8 million, assuming continued compliance with the covenants under our ABL Credit Facility.
As of February 28, 2022, the Company owned 3.1 million shares of Select Energy Services Class A common stock (NYSE: WTTR).
Conference Call Information
The Company will host a conference call on Friday, March 25, 2022 at 10:00 a.m. Eastern Time. You may also listen to the call by dialing in at 1-877-800-3682 in the United States and Canada or 1-615-622-8047 for International calls and using access code 2473345. The call will be available for replay until April 18, 2022 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 Wendell York at ir@superiorenergy.com.
About Superior Energy Services
Superior Energy Services serves the drilling, completion and production-related needs of oil and gas companies worldwide through a diversified portfolio of specialized oilfield services and equipment that are used throughout the economic life cycle of oil and gas wells.
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' 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, financial performance, depreciation expense, liquidity, strategic alternatives (including dispositions 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 third party buyers, 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, 2021 and those set forth from time to time in the Company's other periodic filings with the Securities and Exchange Commission, which are available at www.superiorenergy.com.
Contact:
Tel: (713) 654-2200
Email: ir@superiorenergy.com
SELECT WATER SOLUTIONS, INC. 
