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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
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Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF EARLIEST EVENT REPORTED: January 30, 2003
ATWOOD OCEANICS, INC.
(Exact name of registrant as specified in its charter)
COMMISSION FILE NUMBER 1-13167
TEXAS 74-1611874
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
15835 Park Ten Place Drive 77084
Houston, Texas (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code:
281-749-7800
N/A
(Former name or former address, if changed since last report.)
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ITEM 7. EXHIBITS
EXHIBIT 99.1 PRESS RELEASE DATED JANUARY 30, 2003
EXHIBIT 99.2 CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE
MONTHS ENDED DECEMBER 31, 2002 AND 2001
EXHIBIT 99.3 ANALYSIS OF CONTRACT REVENUES AND DRILLING COSTS FOR
THE QUARTER ENDED DECEMBER 31, 2002
EXHIBIT 99.4 CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, 2002 AND
SEPTEMBER 30, 2002
EXHIBIT 99.5 CONTRACT STATUS SUMMARY AT JANUARY 30, 2003
ITEM 9. REGULATION FD DISCLOSURE
On January 30, 2003, the Company announced its earnings for the Fiscal Year
2003 First Quarter ended December 31, 2002. A copy of the press release
summarizing these earnings is filed with this Form 8-K as exhibit 99.1 and is
incorporated herein by reference.
The RICHMOND has been awarded a contract by Ocean Energy, Inc. to drill
three firm wells plus options for four additional wells. This drilling program
will start immediately following completion of the rig's current contract
(estimated mid-February 2003) and provides for a dayrate of $24,000. The three
firm wells have an estimated duration of 90 to 120 days
The ATWOOD EAGLE continues on its tow to Angola, with its arrival expected
around February 18, 2003. The drilling contract with ESSO Exploration Angola is
now being formalized and should provide for a dayrate of around $85,000 and
include a $2.7 million mobilization payment. The drilling program which includes
three firm wells, plus options for four additional wells, could extend
approximately one year if all wells are drilled. Due to some limited final
upgrade commissioning work that has to be done to the rig upon arrival in
Angola, commencement of dayrate revenue may not occur until early to
mid-March 2003.
The ATWOOD FALCON continues on its commitment with Woodside Energy Ltd. in
Australia. The rig incurred six days of downtime in January between wells for
planned maintenance. The rig has one more well to drill, with options for two
additional wells, which if drilled could extend the rig's work in Australia into
April 2003.
The ATWOOD HUNTER'S current drilling program in Egypt is expected to be
completed in early to mid-February 2003. Contract opportunities for ongoing work
are being pursued in the Mediterranean area; however, it is possible that the
rig could be idle for the balance of the fiscal 2003 second quarter.
In the event that the ATWOOD EAGLE does not start drilling operations in
Angola until mid-March 2003 and the ATWOOD HUNTER incurs some idle time in the
fiscal 2003 second quarter, the Company could incur a loss for the quarter
ending March 31, 2003, but still be profitable for the year.
Additional information with respect to the Company's Consolidated
Statements of Operations for the three months ended December 31, 2002 and 2001,
an analysis of Contract Revenues and Drilling Costs for the quarter ended
December 31, 2002, Consolidated Balance Sheets at December 31, 2002 and
September 30, 2002 and Contract Status Summary at January 30, 2003 are attached
hereto as Exhibits 99.2, 99.3, 99.4 and 99.5, respectively, which are being
furnished in accordance with rule 101 (e)(1) under Regulation FD and should not
be deemed to be filed.
Statements contained in this report with respect to the future are
forward-looking statements. These statements reflect management's reasonable
judgment with respect to future events. Forward-looking statements involve risks
and uncertainties. Actual results could differ materially from those anticipated
as a result of various factors; the Company's dependence on the oil and gas
industry; the risks involved the construction of a rig; competition; operating
risks; risks involved in foreign operations; risks associated with possible
disruption in operations due to terrorism; risks associated with a possible
disruption in operations due to a war with Iraq; and governmental regulations
and environmental matters. A list of additional risk factors can be found in the
Company' annual report on Form 10-K for the year ended September 30, 2002, filed
with the Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ATWOOD OCEANICS, INC.
(Registrant)
/s/ James M. Holland
James M. Holland
Senior Vice President
DATE: January 30, 2003
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
99.1 Press Release dated January 30, 2003
99.2 Consolidated Statements of Operations for the Three Months
ended December 31, 2002 and 2001
99.3 Analysis of Contract Revenues and Drilling Costs for the
quarter ended December 31, 2002
99.4 Consolidated Balance Sheets at December 31, 2002 and
September 30, 2002
99.5 Contract Status Summary at January 30, 2003
EXHIBIT 99.1
Houston, Texas
30 January 2003
FOR IMMEDIATE RELEASE
Atwood Oceanics, Inc., Houston-based International Drilling Contractor,
announced today it earned net income of $950,000 or $.07 per diluted share, on
contract revenues of $29,841,000 for the quarter ended December 31, 2002,
compared to net income of $8,158,000 or $.59 per diluted share on contract
revenues of $37,234,000 for the quarter ended December 31, 2001.
FOR THE THREE MONTHS
ENDED DECEMBER 31,
2002 2001
---- ----
Contract Revenues $29,841,000 $37,234,000
=========== ===========
Income before Income Taxes 2,374,000 12,387,000
Provision for Income Taxes (1,424,000) (4,229,000)
----------- -----------
Net Income 950,000 8,158,000
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Earnings per Common Share -
Basic .07 .59
Diluted .07 .59
Weighted Average Shares
Outstanding -
Basic 13,845,000 13,832,000
Diluted 13,912,000 13,912,000
Contact: Jim Holland
(281) 749-7804
EXHIBIT 99.2
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
December 31,
---------------------------------
2002 2001
---- ----
(Unaudited)
REVENUES:
Contract drilling $29,841 $37,234
COSTS AND EXPENSES:
Contract drilling 19,345 16,214
Depreciation 5,392 5,823
General and administrative 2,680 2,670
------- -------
27,417 24,707
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OPERATING INCOME 2,424 12,527
------- -------
OTHER INCOME (EXPENSE)
Interest expense (113) (203)
Interest income 63 63
------- -------
( 50) (140)
------- -------
INCOME BEFORE INCOME TAXES 2,374 12,387
PROVISION FOR INCOME TAXES 1,424 4,229
------- -------
NET INCOME $ 950 $ 8,158
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EARNINGS PER COMMON SHARE:
Basic $ .07 $ .59
Diluted .07 .59
AVERAGE COMMON SHARES OUTSTANDING:
Basic 13,845 13,832
Diluted 13,912 13,912
EXHIBIT 99.3
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
ANALYSIS OF CONTRACT REVENUES
AND DRILLING COSTS
FOR THE QUARTER ENDED DECEMBER 31, 2002
(Unaudited)
CONTRACT CONTRACT
DRILLING DRILLING
REVENUES COSTS
--------- ---------
(In Millions)
ATWOOD FALCON $ 6.9 $ 4.1
VICKSBURG 6.4 2.5
ATWOOD HUNTER 6.4 3.5
SEAHAWK 5.3 2.4
ATWOOD SOUTHERN CROSS 2.3 3.8
RICHMOND 2.0 2.0
ATWOOD EAGLE 0.0 0.0
OTHER 0.5 1.0
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$29.8 $19.3
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EXHIBIT 99.4
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)
DEC. 31,2002 SEP. 30, 2002
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 15,631 $ 27,055
Accounts receivable 27,262 28,776
Inventories of materials and supplies
at lower of average cost or market 8,982 9,134
Deferred tax assets 223 223
Prepaid expenses 4,809 6,625
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Total Current Assets 56,907 71,813
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PROPERTY AND EQUIPMENT:
Drilling vessels, equipment and drill pipe 617,929 583,241
Other 9,173 9,156
-------- --------
627,102 592,397
Less-accumulated depreciation 229,362 224,000
-------- --------
Net Property and Equipment 397,740 368,397
-------- --------
DEFERRED COSTS AND OTHER ASSETS 8,109 4,320
-------- --------
$462,756 $444,530
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of notes payable $ 3,212 $ 5,023
Accounts payable 5,426 5,584
Accrued liabilities 12,971 13,809
-------- --------
Total Current Liabilities 21,609 24,416
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LONG-TERM NOTES PAYABLE,
net of current maturities: 135,000 115,000
-------- --------
135,000 115,000
-------- --------
DEFERRED CREDITS:
Income taxes 15,995 15,545
Other 13,069 13,436
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29,064 28,981
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SHAREHOLDER'S EQUITY
Preferred stock no par value;
1,000,000 shares authorized, none outstanding --- ---
Common stock, $1 par value, 20,000,000 shares
authorized with 13,845,000 issued
and outstanding at Dec. 31, 2002 and Sep. 30, 2002,
respectively 13,845 13,845
Paid-in capital 57,274 57,274
Retained earnings 205,964 205,014
-------- --------
Total Shareholders' Equity 277,083 276,133
-------- --------
$462,756 $444,530
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EXHIBIT 99.5
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONTRACT STATUS SUMMARY
AT JANUARY 30, 2003
NAME OF RIG LOCATION CUSTOMER CONTRACT STATUS
----------- -------- -------- ----------------
SEMISUBMERSIBLES -
------------------
ATWOOD FALCON AUSTRALIA WOODSIDE ENERGY LTD. The rig is drilling its third well for
("WOODSIDE") Woodside. Two additional option wells remain
on the contract, which, if exercised, could
extend the rig's work in Australia into April 2003.
ATWOOD HUNTER EGYPT GERMAN OIL & GAS EQYPT The rig is currently drilling one well for
("GERMAN OIL") German Oil expected to be completed in early
to mid-February 2003. Contract opportunities
for additional work are being pursued in the
Mediterranean Area.
ATWOOD EAGLE IN TOW TO ESSO EXPLORATION ANGOLA The Company has a commitment from ESSO to
ANGOLA (BLOCK 15) LIMITED enter into a contract for the use of the rig
("ESSO") to drill three firm wells, plus options for
four additional wells, off the coast of
Angola. The rig is expected to arrive Angola
around February 18, 2003; however, it may not
commence dayrate revenue until early to
mid- March 2003. If all seven wells are
drilled, it could take approximately one year
to complete the drilling program.
SEAHAWK MALAYSIA EXXONMOBIL EXPLORATION & The rig's current contract terminates in
PRODUCTION MALAYSIA INC. December 2003, with an option for the
Operator to extend.
ATWOOD SOUTHERN CROSS MEDITERRANEAN ENI S.P.A. - AGIP The rig commenced the AGIP contract in early
SEA DIVISION ("AGIP") December 2002, with the work expected to take
three to five months to complete.
SEASCOUT UNITED STATES The SEASCOUT was purchased in December 2000
GULF OF MEXICO for future conversion to a tender-assist
unit, similar to the SEAHAWK, once an
acceptable contract opportunity is secured.
CANTILEVER JACK-UPS -
---------------------
VICKSBURG MALAYSIA EXXONMOBIL EXPLORATION In early October 2002, the rig commenced a
AND PRODUCTION MALAYSIA two-year drilling program (with an option by
INC. ("EMEPMI") EMEPMI for one additional year), with EMEPMI
having the right to terminate the drilling
program after one year at any time with a
120 days notice period.
ATWOOD BEACON UNDER The Company expects the construction of this
CONSTRUCTION ultra-premium jack-up drilling unit to be
completed around June 2003.
SUBMERSIBLE -
--------------
RICHMOND UNITED STATES BURLINGTON RESOURCES OIL The rig is currently drilling one well for
GULF OF MEXICO & GAS COMPANY Burlington. Immediately upon completion of
("BURLINGTON") its current contract, the rig will commence
a three-firm wells, plus four-option wells
contract for Ocean Energy, Inc. The three
firm wells have an estimated duration of 90 to 120 days.
MODULAR PLATFORMS -
--------------------
GOODWYN 'A' /NORTH AUSTRALIA WOODSIDE ENERGY LTD. There is currently an indefinite planned
RANKIN 'A' break in drilling activity for the two
client-owned rigs managed by the Company.
The Company is involved in maintenance of the
two rigs for future drilling programs.