Filed by Superior Energy Services, Inc.
(Commission File No. 001-34037)
Pursuant to Rule 425 under the Securities Act of 1933, as amended
and deemed filed Pursuant to Rule 14a-12
under the Securities Exchange Act of 1934, as amended
Subject Company: Superior Energy Services, Inc.
(Commission File No. 001-34037)
The
following is a press release issued by Superior Energy Services, Inc. on February 19, 2020.
FOR FURTHER INFORMATION CONTACT:
1001 Louisiana St., Suite 2900
Houston, TX 77002
NYSE: SPN
FOR FURTHER INFORMATION CONTACT:
Paul Vincent, VP of Treasury and Investor Relations, (713) 654-2200
SUPERIOR ENERGY SERVICES ANNOUNCES
FOURTH QUARTER AND FULL YEAR 2019 RESULTS
Recent operating highlights include:
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Entry into definitive agreement to divest certain U.S. land service lines into a new, publicly traded
consolidation platform for U.S. completion, production and water solutions in combination with Forbes Energy Services
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Discontinuation of hydraulic fracturing service line
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Houston, February 19, 2020 Superior Energy Services, Inc. (NYSE: SPN) (the Company) today announced a net loss
from continuing operations for the fourth quarter of 2019 of $6.2 million, or $0.42 per share, on revenue of $336.1 million. This compares to a net loss from continuing operations of $20.5 million, or $1.31 per share, for the third
quarter of 2019, on revenue of $356.6 million and a net loss from continuing operations of $317.0 million, or $20.51 per share for the fourth quarter of 2018, on revenue of $389.4 million.
As previously announced, during the fourth quarter of 2019, the Company exited its hydraulic fracturing operations. The financial results of this service line
have historically been included in the Onshore Completion and Workover Services segment, and are reflected in discontinued operations for the fourth quarter of 2019 and prior period results reported herein. Loss from discontinued operations was
$92.4 million, $17.9 million, and $433.2 million for the fourth quarter of 2019, third quarter of 2019, and fourth quarter of 2018, respectively.
The Company reported pre-tax charges of $2.9 million in restructuring costs and $3.1 million in connection
with the previously announced strategic transaction with Forbes Energy Services Ltd. (OTCQX: FLSS) (Forbes). The resulting adjusted net loss from continuing operations for the fourth quarter of 2019 was $1.6 million, or $0.11 per
share.
For the year ended December 31, 2019, the Companys net loss from continuing operations was $77.8 million, or $5.05 per share, on
revenue of $1,425.4 million as compared with a net loss from continuing operations of $427.4 million, or $27.69 per share, on revenue of $1,478.9 million for the year ended December 31, 2018. Loss from discontinued operations was
$178.0 million and $430.7 million for the year ended December 31, 2019 and 2018, respectively.
David Dunlap, President and CEO, commented,
Our fourth quarter results highlight the divergence of U.S. land markets, where declining activity resulted in lower revenue, and U.S. offshore and international markets, in which activity improved at a similar rate as we have observed for the
past several quarters.
We believe this divergence may be sustained for quite some time and have taken steps during the quarter to reorient our
business. In late December, we announced a strategic transaction in which the Company is combining its U.S. service rig, coiled tubing, wireline, pressure control, flowback, fluid management and accommodations service lines with Forbes
complimentary service lines creating a new publicly traded consolidation platform for U.S. completion production and water solutions.