Houston, Texas
July 30, 2014

FOR IMMEDIATE RELEASE - EARNINGS

ATWOOD OCEANICS, INC., announced today that the Company earned net income of $71.9 million or $1.11 per diluted share, on revenues of $292.8 million for the quarter ended June 30, 2014 compared to net income of $73.3 million or $1.13 per diluted share on revenues of $273.1 million for the quarter ended March 31, 2014 and compared to net income of $90.0 million or $1.37 per diluted share, on revenues of $272.7 million for the quarter ended June 30, 2013. For the nine months ended June 30, 2014, the Company earned net income of $228.6 million or $3.52 per diluted share, on revenues of $850.6 million compared to net income of $248.3 million or $3.75 per diluted share, on revenues of $770.9 million for the nine months ended June 30, 2013.

For the Three Months Ended
(Unaudited)
(In thousands, except per share amounts) June 30,
 2014		 March 31,
 2014		 June 30,
 2013
Revenues $ 292,777 $ 273,097 $ 272,688
Income before Income Taxes 79,365 97,283 105,130
Provision for Income Taxes (7,440 ) (23,983 ) (15,149 )
Net Income $ 71,925 $ 73,300 $ 89,981
Earnings per Common Share -
      Basic $ 1.12 $ 1.14 $ 1.38
      Diluted $ 1.11 $ 1.13 $ 1.37

For the Nine Months Ended
(Unaudited)
(In thousands, except per share amounts) June 30,
 2014		 June 30,
 2013
Revenues $ 850,580 $ 770,942
Income before Income Taxes 270,908 286,649
Provision for Income Taxes (42,286 ) (38,318 )
Net Income $ 228,622 $ 248,331
Earnings per Common Share -
      Basic $ 3.56 $ 3.79
      Diluted $ 3.52 $ 3.75

ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended June 30, Nine Months Ended June 30,
(In thousands, except per share amounts) 2014 2013 2014 2013
REVENUES:
Contract drilling $ 264,925 $ 261,489 $ 798,544 $ 738,604
Revenues related to reimbursable expenses 27,852 11,199 52,036 32,338
Total revenues 292,777 272,688 850,580 770,942
COSTS AND EXPENSES:
Contract drilling 128,586 109,502 388,715 314,001
Reimbursable expenses 23,493 8,461 41,095 23,351
Depreciation 37,601 30,352 107,376 86,412
General and administrative 12,844 13,663 47,688 44,152
(Gain)/loss on sale of equipment 7 - (34,072 ) -
Other, net (212 ) (55 ) (1,815 ) (68 )
202,319 161,923 548,987 467,848
OPERATING INCOME $ 90,458 $ 110,765 $ 301,593 $ 303,094
OTHER INCOME (EXPENSE)
Interest expense, net of capitalized interest (11,219 ) (5,692 ) (30,932 ) (16,647 )
Interest Income 126 57 247 202
(11,093 ) (5,635 ) (30,685 ) (16,445 )
INCOME  BEFORE INCOME TAXES 79,365 105,130 270,908 286,649
PROVISION FOR INCOME TAXES 7,440 15,149 42,286 38,318
NET INCOME $ 71,925 $ 89,981 $ 228,622 $ 248,331
EARNINGS PER COMMON SHARE:
Basic $ 1.12 $ 1.38 $ 3.56 $ 3.79
Diluted $ 1.11 $ 1.37 $ 3.52 $ 3.75
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 64,309 65,062 64,204 65,441
Diluted 65,060 65,858 65,023 66,180

ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS

REVENUES
Three Months Ended Nine Months Ended
(In millions) June 30,
 2014		 March 31,
 2014		 June 30,
 2013		 June 30,
 2014		 June 30,
 2013
Ultra-Deepwater $ 118.4 $ 119.9 $ 87.1 $ 325.6 $ 246.1
Deepwater 69.8 64.0 102.2 241.3 306.2
Jackups 76.7 76.2 72.2 231.7 186.3
Reimbursable 27.9 13.0 11.2 52.0 32.4
$ 292.8 $ 273.1 $ 272.7 $ 850.6 $ 771.0

DRILLING COSTS
Three Months Ended Nine Months Ended
(In millions) June 30,
 2014		 March 31,
 2014		 June 30,
 2013		 June 30,
 2014		 June 30,
 2013
Ultra-Deepwater $ 44.2 $ 45.9 $ 33.9 $ 125.2 $ 93.7
Deepwater 51.5 56.6 42.8 157.0 127.2
Jackups 32.0 33.3 31.4 101.9 89.8
Reimbursable 23.5 9.2 8.5 41.1 23.3
Other 0.9 1.2 1.4 4.6 3.4
$ 152.1 $ 146.2 $ 118.0 $ 429.8 $ 337.4

ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands) June 30,
 2014		 September 30,
 2013
ASSETS
Cash and cash equivalents $ 119,161 $ 88,770
Accounts receivable 204,079 199,689
Income tax receivable 6,097 4,672
Inventories of materials and supplies 123,184 121,833
Prepaid expenses and deferred costs 16,136 38,796
Total current assets 468,657 453,760
Property and equipment, net 3,586,049 3,164,724
Other receivables 11,831 11,831
Deferred costs and other assets 31,572 26,951
Deferred income taxes 518 -
Total assets $ 4,098,627 $ 3,657,266
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 70,312 $ 95,827
Accrued liabilities 21,977 17,653
Notes payable - 8,071
Interest payable 18,564 7,945
Income tax payable 22,586 16,554
Deferred credits 4,300 10,822
Total current liabilities 137,739 156,872
Long-term debt 1,467,406 1,263,232
Deferred income taxes 354 485
Deferred credits 4,588 1,176
Other 38,099 28,130
Total long-term liabilities 1,510,447 1,293,023
Commitments and contingencies
Preferred stock, no par value, 1,000 shares authorized, none outstanding - -
Common stock, $1.00 par value, 180,000 shares authorized with 64,338 issued and outstanding at June 30, 2014 and 90,000 shares authorized with 64,057 issued and outstanding at September 30, 2013 64,338 64,057
Paid-in capital 197,501 183,390
Retained earnings 2,190,027 1,961,405
Accumulated other comprehensive loss (1,425 ) (1,481 )
Total shareholders' equity 2,450,441 2,207,371
Total liabilities and shareholders' equity $ 4,098,627 $ 3,657,266

ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS

Nine Months Ended June 30,
(In thousands) 2014 2013
Cash flows from operating activities:
Net income $ 228,622 $ 248,331
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 107,376 86,412
Amortization of debt issuance costs and bond premium 3,389 3,083
Amortization of deferred items 2,487 1,227
Provision for doubtful accounts 679 3,510
Provision for inventory obsolescence 1,226 1,530
Deferred income tax benefit (649 ) (605 )
Share-based compensation expense 10,924 10,418
Gain on sale of assets (34,072 ) -
Other, net 1,990 (67 )
Change in assets and liabilities:
Accounts receivable (5,069 ) (18,297 )
Income tax receivable (1,425 ) (1,391 )
Inventory (8,816 ) (22,065 )
Prepaid expenses 14,100 12,788
Deferred costs and other assets (10,512 ) (9,519 )
Accounts payable (11,303 ) (10,970 )
Accrued liabilities 15,127 (6,745 )
Income tax payable 6,032 6,311
Deferred credits and other liabilities 21,141 9,989
Net cash provided by operating activities 341,247 322,440
Cash flows from investing activities:
Capital expenditures (564,119 ) (569,696 )
Installment proceeds from pending sale of asset - -
Proceeds from sale of assets 59,516 129
Net cash used in investing activities (504,603 ) (569,567 )
Cash flows from financing activities:
Proceeds from issuance of bonds - 200,000
Proceeds from bank credit facilities 370,000 400,000
Principal payments on bank credit facilities (165,000 ) (100,000 )
Principal payments on notes payable (8,071 ) (5,148 )
Repurchase and retirement of common shares - (107,260 )
Proceeds from exercise of stock options 3,468 6,451
Debt issuance costs paid (6,650 ) (2,910 )
Net cash provided by financing activities 193,747 391,133
Net increase in cash and cash equivalents $ 30,391 $ 144,006
Cash and cash equivalents, at beginning of period $ 88,770 $ 77,871
Cash and cash equivalents, at end of period $ 119,161 $ 221,877
Non-cash activities:
Changes in accounts payable and accrued liabilities related to capital expenditures $ (13,573 ) $ (15,011 )

Atwood Oceanics 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 12 mobile offshore drilling units and is constructing three 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."

As part of our ongoing commitment to our shareholders, Atwood Oceanics uses a variety of Social Networks sites to disseminate company information. For a full list of the official Social Media pages for Atwood Oceanics, please visit the Social Media Disclaimer page of our IR site at: http://ir.atwd.com/GenPage.aspx?IID=4010374&GKP=210376

Contact: Mark L. Mey
(281) 749-7902




This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX 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
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