ATW
$8.09
Atwood Oceanics
$.32
4.12%
Earnings Details
1st Quarter December 2016
Friday, February 03, 2017 4:31:23 PM
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Summary

Atwood Oceanics (ATW) Recent Earnings

Atwood Oceanics (ATW) reported 1st Quarter December 2016 earnings of $0.15 per share on revenue of $157.6 million. The consensus earnings estimate was $0.12 per share on revenue of $155.2 million. Revenue fell 48.8% compared to the same quarter a year ago.

Atwood Oceanics Inc is an offshore drilling contractor, engaged in drilling and completion of exploratory and developmental oil and gas wells.

Results
Reported Earnings
$0.15
Earnings Whisper
-
Consensus Estimate
$0.12
Reported Revenue
$157.6 Mil
Revenue Estimate
$155.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Atwood Oceanics Announces Fiscal 2017 First Quarter Earnings

Exhibit 99.1

FOR IMMEDIATE RELEASE - EARNINGS

HOUSTON, February 3, 2017 - Atwood Oceanics, Inc. (ATW) ("Company"), announced today that it had earned net income of $9.7 million or $0.15 per diluted share, on revenues of $157.6 million for the quarter ended December 31, 2016, compared to net income of $4.2 million or $0.07 per diluted share on revenues of $188.7 million for the quarter ended September 30, 2016 and compared to net income of $39.1 million or $0.60 per diluted share on revenues of $307.8 million for the quarter ended December 31, 2015.

During the quarter ended December 31, 2015, the Company recorded a non-cash impairment charge of approximately $64.7 million ($64.7 million, net of tax, or $1.00 per diluted share) related to the Atwood Falcon. During the quarter ended December 31, 2016, the Company did not recognize any impairment.

During the quarter ended December 31, 2015, the Company recognized approximately $18.0 million ($18.0 million, net of tax, or $0.28 per diluted share) of expected insurance recoveries related to cyclone damage to the Atwood Osprey. This amount is included in Other income on the Unaudited Condensed Consolidated Statement of Operations and was subsequently collected.

In January 2017, the client for the Atwood Achiever exercised its option provided as part of the "blend and extend" agreement we entered into in October 2015 to revert the contract to the original operating day rate and original end date. Exercise of this option will result in a one-time payment to us of $48.1 million that includes the difference in day rates, taxes, and administrative fees covering the time periods for which the reduced day rate was previously invoiced. Effective February 1, 2017 and continuing until the contract end date of approximately November 12, 2017, the operating day rate is $595,000.

In February 2017, we amended our drilling services contract with Woodside Energy Ltd ("Woodside") to substitute the Atwood Condor for the Atwood Osprey for the Greater Enfield campaign. The contract is expected to commence between December 2017 and March 2018 at an operating rate of $222,295 per day for approximately 550 days. Depending on the commencement of the contract, Woodside will reimburse us for the mobilization of the Atwood Condor to Australia in an amount of either $34.5 million or $36.5 million. In addition, we entered into a new agreement with Woodside to utilize the Atwood Osprey for an additional exploration well with an estimated duration of approximately 100 days. The contract for the exploration well is expected to commence between March 2018 and May 2018 at an operating rate of $190,000 per day with a priced option for an additional well. We will receive a mobilization fee of $1.0 million if the option is exercised and a payment of $2.0 million if the option is not exercised.

For the Three Months Ended
(Unaudited)
(In thousands, except per share amounts) December 31,
September 30,
December 31,
2016
2016
2015
Revenues
$
157,556
$
188,677
$
307,819
Income before Income Taxes
12,064
5,918
50,295
Provision for Income Taxes
(2,393
)
(1,669
)
(11,214
)
Net Income
$
9,671
$
4,249
$
39,081
Earnings per Common Share -
Basic
$
0.15
$
0.07
$
0.60
Diluted
$
0.15
$
0.07
$
0.60

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended December 31,
(In thousands, except per share amounts)
2016
2015
(Unaudited)
REVENUES:
Contract drilling
$
149,863
$
294,615
Revenues related to reimbursable expenses
7,693
13,204
Total revenues
157,556
307,819
COSTS AND EXPENSES:
Contract drilling
65,670
130,652
Reimbursable expenses
6,602
8,286
Depreciation
41,808
42,827
General and administrative
15,190
15,177
Asset impairment
-
64,724
(Gain) loss on sale of assets
(67
)
77
129,203
261,743
OPERATING INCOME
28,353
46,076
OTHER INCOME (EXPENSE):
Interest expense, net of capitalized interest
(16,291
)
(13,761
)
Interest income
2
4
Other income
-
17,976
(16,289
)
4,219
INCOME BEFORE INCOME TAXES
12,064
50,295
PROVISION FOR INCOME TAXES
2,393
11,214
NET INCOME
$
9,671
$
39,081
EARNINGS PER COMMON SHARE (NOTE 3):
Basic
$
0.15
$
0.60
Diluted
$
0.15
$
0.60
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (NOTE 3):
Basic
64,879
64,765
Diluted
65,171
64,921

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS

REVENUES
Three Months Ended
(In millions)
December 31,
September 30,
December 31,
2016
2016
2015
Ultra-Deepwater
$
148
$
155
$
182
Deepwater
-
-
72
Jackups
2
27
41
Reimbursable
8
7
13
158
189
308
DRILLING COSTS
Three Months Ended
(In millions)
December 31,
September 30,
December 31,
2016
2016
2015
Ultra-Deepwater
$
50
$
58
$
61
Deepwater
-
2
43
Jackups
14
17
26
Reimbursable
7
5
8
Other
1
-
1
$
72
$
82
$
139

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)
December 31,
September 30,
2016
2016
(Unaudited)
ASSETS
Cash
$
160,110
$
145,427
Accounts receivable, net
95,464
113,091
Income tax receivable
6,471
6,095
Inventories of materials and supplies, net
110,462
109,925
Prepaid expenses, deferred costs and other current assets
15,745
18,504
Total current assets
388,252
393,042
Property and equipment, net
4,223,156
4,127,696
Other receivables
11,831
11,831
Deferred income taxes
165
165
Deferred costs and other assets
6,253
7,058
Total assets
$
4,629,657
$
4,539,792
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable
22,290
25,299
Accrued liabilities
9,076
7,868
Interest payable
14,896
7,096
Income tax payable
8,313
8,294
Deferred credits and other liabilities
285
799
Total current liabilities
54,860
49,356
Long-term debt
1,297,995
1,227,919
Deferred income taxes
1,403
1,202
Deferred credits
350
-
Other
30,613
30,929
Total long-term liabilities
1,330,361
1,260,050
Commitments and contingencies (Note 9)
Preferred stock, no par value, 1,000 shares authorized, none outstanding
$
-
$
-
Common stock, $1.00 par value, 180,000 shares authorized with 64,942 issued and outstanding as of December 31, 2016 and 180,000 shares authorized and 64,799 shares issued and outstanding as of September 30, 2016 $
64,942
$
64,799
Paid-in capital
$
241,558
$
237,542
Retained earnings
$
2,938,546
$
2,929,839
Accumulated other comprehensive loss
$
(610
)
$
(1,794
)
Total shareholders’ equity
3,244,436
3,230,386
Total liabilities and shareholders’ equity
$
4,629,657
$
4,539,792

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Three Months Ended December 31,
(In thousands)
2016
2015
Cash flows from operating activities:
Net income
$
9,671
$
39,081
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
41,808
42,827
Amortization
922
1,250
Provision for doubtful accounts
2,369
757
Deferred income tax benefit
(185
)
(714
)
Share-based compensation expense
3,655
2,371
Asset impairment
-
64,724
(Gain) loss on sale of assets
(67
)
77
Changes in assets and liabilities:
Accounts receivable
15,258
60,883
Income tax receivable
(376
)
(829
)
Inventories of materials and supplies
(537
)
11,023
Prepaid expenses, deferred costs and other current assets
2,759
7,462
Deferred costs and other assets
(496
)
(1,050
)
Accounts payable
(1,396
)
(17,615
)
Accrued liabilities
9,191
8,570
Income tax payable
19
(642
)
Deferred credits and other liabilities
902
1,973
Net cash provided by operating activities
83,497
220,148
Cash flows from investing activities:
Capital expenditures
(138,814
)
(131,547
)
Net cash used in investing activities
(138,814
)
(131,547
)
Cash flows from financing activities:
Proceeds from issuance of long-term debt
125,000
45,000
Principal payments on long-term debt
(55,000
)
(115,000
)
Dividends paid
-
(16,316
)
Payments related to exercise of stock options
-
(599
)
Net cash provided by (used in) or financing activities
70,000
(86,915
)
Net increase in cash and cash equivalents
14,683
1,686
Cash and cash equivalents, at beginning of period
145,427
113,983
Cash and cash equivalents, at end of period
160,110
115,669
Non-cash activities:
Decrease (increase) in accounts payable related to capital expenditures
$
(1,613 )
$
10,530
Dividends payable
$
-
$
4,858

Atwood Oceanics, Inc. is a leading offshore drilling company engaged in the drilling and completion of exploration and development wells for the global oil and gas industry. The Company currently owns 10 mobile offshore drilling units and is constructing 2 ultra-deepwater drillships. The Company was founded in 1968 and is headquartered in Houston, Texas. Atwood Oceanics, Inc. common stock is traded on the New York Stock Exchange under the symbol "ATW." For more information about the Company, please visit www.atwd.com.

Conference Call

The Company has scheduled a conference call and webcast related to its first quarter 2017 results on Monday, February 6, 2017, at 9:00 A.M. CDT (10:00 A.M. EDT). Interested parties are invited to listen to the call by dialing 1-800-894-5910, or internationally 1-785-424-1052, Conference ID - ATWOOD/ Password 25965. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company’s Web site.

A replay of the conference call will be available on the Company’s Web site following the end of the live call.

Contact: Mark W. Smith

Senior Vice President and Chief Financial Officer

(281) 749-7840

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Atwood Oceanics, Inc. via Globenewswire