UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 29, 2015

ATWOOD OCEANICS, INC.
(Exact name of registrant as specified in its charter)

Texas
1-13167
74-1611874
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)


15011 Katy Freeway, Suite 800, Houston, Texas
77094
(Address of principal executive offices)
(Zip Code)
 
 
 
 
 Registrant’s telephone number, including area code: (281) 749-7800
 
 
N/A
 
 
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
 


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 




Item 2.02    Results of Operations and Financial Condition.

Our press release dated April 29, 2015, concerning financial results for the second quarter ended March 31, 2015, furnished as Exhibit 99.1, is incorporated herein by reference.

Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits

The exhibits listed below are furnished pursuant to Item 9.01 of this Form 8-K.
Exhibit Number
 
Exhibit Description
99.1
 
Press Release dated April 29, 2015.

2

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)
Date: April 29, 2015


 
/s/ Mark L. Mey
 
Mark L. Mey
 
Executive Vice President and Chief Financial Officer


3

INDEX TO EXHIBIT

Exhibit Number
 
Exhibit Description
99.1
 
Press Release dated April 29, 2015.


4




Exhibit 99.1

FOR IMMEDIATE RELEASE - EARNINGS

HOUSTON, April 29, 2015 -- Atwood Oceanics, Inc. (NYSE: ATW) ("Company"), announced today that it had earned net income of $122.7 million or $1.89 per diluted share, on revenues of $350.4 million for the quarter ended March 31, 2015 compared to net income of $46.2 million or $0.71 per diluted share on revenues of $351.7 million for the quarter ended December 31, 2014 and 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. For the six months ended March 31, 2015, the Company earned net income of $168.9 million or $2.60 per diluted share, on revenues of $702.1 million compared to net income of $156.7 million or $2.41 per diluted share, on revenues of $557.8 million for the six months ended March 31, 2014.

During the quarter ended March 31, 2015, the Company recorded a loss of approximately $5.5 million ($5.5 million, net of tax, or $0.08 per diluted share) for the pending sale of the Atwood Hunter for recycling. During the quarter ended December 31, 2014, the Company recorded a non-cash impairment charge of approximately $60.8 million ($56.1 million, net of tax, or $0.86 per diluted share) related to the Atwood Hunter. In addition, during the quarter ended December 31, 2014, the Company recorded a loss of approximately $8.0 million ($7.1 million, net of tax, or $0.11 per diluted share) for the sale of the Atwood Southern Cross and a loss of $1.8 million on the sale of other equipment.

 
For the Three Months Ended
 
(Unaudited)
(In thousands, except per share amounts)
March 31,
2015
 
December 31,
2014
 
March 31,
2014
Revenues
$
350,387

 
$
351,726

 
$
273,097

 
 
 
 
 
 
Income before Income Taxes
$
134,976

 
$
55,340

 
$
97,283

Provision for Income Taxes
(12,307
)
 
(9,122
)
 
(23,983
)
Net Income
$
122,669

 
$
46,218

 
$
73,300

 
 
 
 
 
 
Earnings per Common Share -
 
 
 
 
 
Basic
$
1.90

 
$
0.72

 
$
1.14

Diluted
$
1.89

 
$
0.71

 
$
1.13



 
For the Six Months Ended
 
(Unaudited)
(In thousands, except per share amounts)
March 31,
2015
 
March 31,
2014
Revenues
$
702,113

 
$
557,803

 
 
 
 
Income before Income Taxes
$
190,316

 
$
191,543

Provision for Income Taxes
(21,429
)
 
(34,846
)
Net Income
$
168,887

 
$
156,697

 
 
 
 
Earnings per Common Share -
 
 
 
Basic
$
2.62

 
$
2.44

Diluted
$
2.60

 
$
2.41



5


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

 
Three Months Ended March 31,
 
Six Months Ended March 31,
(In thousands, except per share amounts)
2015
 
2014
 
2015
 
2014
REVENUES:
 
 
 
 
 
 
 
Contract drilling
$
338,621

 
$
260,062

 
$
675,382

 
$
533,619

Revenues related to reimbursable expenses
11,766

 
13,035

 
26,731

 
24,184

Total revenues
350,387

 
273,097

 
702,113

 
557,803

 
 
 
 
 
 
 
 
COSTS AND EXPENSES:
 
 
 
 
 
 
 
Contract drilling
131,124

 
136,966

 
267,589

 
260,128

Reimbursable expenses
8,661

 
9,188

 
20,568

 
17,602

Depreciation
42,528

 
37,231

 
87,103

 
69,775

General and administrative
14,737

 
15,022

 
32,146

 
34,844

Asset impairment
—

 
—

 
60,777

 
—

(Gain) loss on sale of assets
5,529

 
(32,442
)
 
15,335

 
(34,079
)
Other, net
—

 
(1,602
)
 
—

 
(1,602
)
 
202,579


164,363

 
483,518

 
346,668

 
 
 
 
 
 
 
 
OPERATING INCOME
$
147,808


$
108,734

 
$
218,595

 
$
211,135

 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
(12,847
)
 
(11,502
)
 
(28,351
)
 
(19,713
)
Interest income
15

 
51

 
72

 
121

 
(12,832
)

(11,451
)
 
(28,279
)
 
(19,592
)
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
134,976


97,283

 
190,316

 
191,543

PROVISION FOR INCOME TAXES
12,307

 
23,983

 
21,429

 
34,846

NET INCOME
$
122,669


$
73,300

 
$
168,887

 
$
156,697

 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE:
 
 
 
 
 
 
 
Basic
$
1.90

 
$
1.14

 
$
2.62

 
$
2.44

Diluted
$
1.89

 
$
1.13

 
$
2.60

 
$
2.41

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
Basic
64,620

 
64,238

 
64,513

 
64,175

Diluted
65,048

 
65,031

 
65,031

 
65,028


6


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

 
REVENUES
 
Three Months Ended
 
Six Months Ended
(In millions)
March 31,
2015
 
December 31,
2014
 
March 31,
2014
 
March 31,
2015
 
March 31,
2014
Ultra-Deepwater
$
183

 
$
167

 
$
120

 
$
350

 
$
207

Deepwater
82

 
98

 
64

 
181

 
172

Jackups
73

 
72

 
76

 
145

 
155

Reimbursable
12

 
15

 
13

 
26

 
24

 
$
350

 
$
352

 
$
273

 
$
702

 
$
558



 
CONTRACT DRILLING COSTS
 
Three Months Ended
 
Six Months Ended
(In millions)
March 31,
2015
 
December 31,
2014
 
March 31,
2014
 
March 31,
2015
 
March 31,
2014
Ultra-Deepwater
$
68

 
$
63

 
$
46

 
$
131

 
$
81

Deepwater
32

 
41

 
57

 
73

 
105

Jackups
30

 
31

 
33

 
61

 
70

Reimbursable
9

 
12

 
9

 
21

 
18

Other
1

 
1

 
1

 
2

 
4

 
$
140

 
$
148

 
$
146

 
$
288

 
$
278




7


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)
March 31,
2015
 
September 30,
2014
 
(Unaudited)
 
 
ASSETS
 
 
 
Cash
$
90,234

 
$
80,080

Accounts receivable
226,695

 
242,684

Income tax receivable
9,864

 
6,260

Inventories of materials and supplies
134,415

 
132,368

Prepaid expenses, deferred costs and other current assets
28,069

 
36,415

Total current assets
489,277

 
497,807

 
 
 
 
Property and equipment, net
4,010,691

 
3,967,028

 
 
 
 
Other receivables
11,831

 
11,831

Deferred income taxes
166

 
589

Deferred costs and other assets
24,317

 
29,973

Total assets
$
4,536,282

 
$
4,507,228

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Accounts payable
$
106,150

 
$
94,315

Accrued liabilities
20,194

 
19,158

Dividends payable
16,161

 
16,090

Short-term debt
—

 
11,885

Interest payable
8,424

 
8,099

Income tax payable
13,924

 
14,234

Deferred credits and other liabilities
4,145

 
3,596

Total current liabilities
168,998

 
167,377

 
 
 
 
Long-term debt
1,606,542

 
1,742,122

Deferred income taxes
822

 
783

Deferred credits
4,532

 
4,100

Other
37,439

 
37,322

Total long-term liabilities
1,649,335

 
1,784,327

 
 
 
 
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 64,644 issued and outstanding at March 31, 2015 and 180,000 shares authorized and 64,362 shares issued and outstanding at September 30, 2014
64,644

 
64,362

Paid-in capital
208,264

 
201,464

Retained earnings
2,438,790

 
2,286,137

Accumulated other comprehensive income
6,251

 
3,561

Total shareholders' equity
2,717,949

 
2,555,524

Total liabilities and shareholders' equity
$
4,536,282

 
$
4,507,228



8


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

 
Six Months Ended March 31,
(In thousands)
2015
 
2014
Cash flows from operating activities:
 
 
 
Net income
$
168,887

 
$
156,697

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation
87,103

 
69,775

Amortization
3,761

 
4,513

Provision for doubtful accounts and inventory obsolescence
160

 
1,539

Deferred income tax benefit
(3,512
)
 
(649
)
Share-based compensation expense
8,119

 
7,725

Asset impairment
60,777

 
—

(Gain) loss on sale of assets
15,335

 
(34,079
)
Changes in assets and liabilities:
 
 
 
Accounts receivable
15,829

 
(39,559
)
Income tax receivable
(3,604
)
 
(1,543
)
Inventories of materials and supplies
(17,110
)
 
(8,097
)
Prepaid expenses, deferred costs and other current assets
9,789

 
9,524

Deferred costs and other assets
(357
)
 
(26,568
)
Accounts payable
2,825

 
(8,617
)
Accrued liabilities
(3,691
)
 
(1,158
)
Income tax payable
(310
)
 
3,091

Deferred credits and other liabilities
5,747

 
34,910

Net cash provided by operating activities
349,748

 
167,504

 
 
 
 
Cash flows from investing activities:
 
 
 
Capital expenditures
(177,130
)
 
(497,634
)
Proceeds from sale of assets
2,524

 
57,517

Net cash used in investing activities
(174,606
)
 
(440,117
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Proceeds from issuance of long-term debt
—

 
340,000

Principal payments on long-term debt
(135,000
)
 
(90,000
)
Repayments on short-term debt, net
(11,885
)
 
(8,071
)
Dividends paid
(16,163
)
 
—

Proceeds from exercise of stock options
1,186

 
1,651

Debt issuance costs paid
(3,126
)
 
(102
)
Net cash (used) provided by financing activities
(164,988
)
 
243,478

Net increase (decrease) in cash and cash equivalents
10,154

 
(29,135
)
Cash and cash equivalents, at beginning of period
80,080

 
88,770

Cash and cash equivalents, at end of period
$
90,234

 
$
59,635

 
 
 
 
Non-cash activities:
 
 
 
Increase in accounts payable and accrued liabilities related to capital expenditures
$
3,020

 
$
1,375



9


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 12 mobile offshore drilling units and is constructing two 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.

Conference Call

The Company has scheduled a conference call and webcast related to its second quarter 2015 results on Thursday, April 30, 2015, at 9:00 a.m. U.S. Central Standard Time. Interested parties are invited to listen to the call by dialing 1-877-876-9177, or internationally 1-785-484-1666, Conference ID - Atwood. 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 L. Mey
(281) 749-7902


10
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