(Source: Shutterstock.com)
Superior Energy Services Inc. is exploring its options to grow shareholder value, including through potential consolidation.
The Houston-based drilling products and services provider continues to have conversations with various potential counterparties for potential merger or acquisition opportunities, Superior Energy Services said in the company’s fourth-quarter earnings in March.
Superior is also considering acquiring additional strategic product lines as an option to boost shareholder value.
“Resources will be allocated accordingly should strategic alternatives, including meaningful consolidation opportunities, become actionable in 2023,” CEO Brian Moore said in a call with analysts.
Superior engaged Evercore as financial advisor to explore potential strategic alternatives for the energy services firm, Superior divulged in its first-quarter 2022 earnings last year.
Related: Superior Energy Services CEO David Dunlap, CFO Westy Ballard Resign
The oilfield products and services company earned a net income of $286.47 million off of revenues of $883.96 million during 2022. That’s up from an annual net income of $106.6 million off of $694.68 million in revenues in 2021.
Superior has onshore and offshore business segments in the U.S., as well as international operations in Latin America, Asia-Pacific, the Middle East and North Africa. About 85% of the company’s U.S. onshore revenues were generated by premium drill pipe and bottom hole assembly accessories in 2023, Moore said.
“As 2023 progresses, we believe work stream to offshore premium drill pipe rental business will benefit from higher drilling and completion activity,” Moore said.
Superior previously filed for Chapter 11 bankruptcy in December 2020. The company later emerged from bankruptcy protections in February 2021, eliminating more than $1.3 billion of existing debt through the reorganization process.
The company announced the resignations of former CEO David Dunlap and CFO Westy Ballard in March 2021. Moore took over leadership duties for Superior in January 2022.
Recommended Reading
Hess Pushes Shareholders to Vote in Favor of $53B Chevron Merger
2024-04-01 - Hess Corp.’s board is unanimously recommending its shareholders vote in favor of the proposed $53 billion all-stock merger with Chevron Corp., according to Chevron’s March 28 Securities and Exchange Commission filing.
EIA: E&P Dealmaking Activity Soars to $234 Billion in ‘23
2024-03-19 - Oil and gas E&Ps spent a collective $234 billion on corporate M&A and asset acquisitions in 2023, the most in more than a decade, the U.S. Energy Information Administration reported.
Exxon Signals Potential Counter Offer for Hess’ Guyana Assets
2024-03-07 - Exxon Mobil has filed a contract arbitration claim related to Chevron’s proposed purchase of Hess Corp.’s interests in the Stabroek Block offshore Guyana.
CERAWeek: Exxon Mobil CEO Says Not Trying to Acquire Hess
2024-03-18 - CEO Darren Woods said Exxon Mobil is trying to secure preemption rights over Hess Corp.'s Guyana assets in its dispute with Chevron, not buy the company itself.
Chevron, Exxon in Dispute Over Hess Stake in Guyana Oil Block
2024-02-27 - Chevron’s $53 billion deal to buy Hess’ interests in the Stabroek Block offshore Guyana could be derailed as Exxon, CNOOC say they have first rights of refusal on the block’s interests.