Exhibit 99.1
FOR IMMEDIATE RELEASE - EARNINGS

HOUSTON, February 3, 2017 - Atwood Oceanics, Inc. (NYSE: 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,
 2016
  September 30,
 2016
  December 31,
 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,
 2016
  September 30,
 2016
  December 31,
 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,
 2016
  September 30,
 2016
  December 31,
 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,
 2016
  September 30,
 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

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