Atwood Oceanics Announces Third Quarter Earnings

FOR THE THREE MONTHS ENDED

(In thousands)

June 30,

2012

March 31,

2012

June 30,

2011

Revenues

$

178,603

$

171,621

$

162,147

Income before Income Taxes

61,990

63,492

87,203

Provision for Income Taxes

(10,279)

(4,026)

(11,918)

Net Income

$

51,711

$

59,466

$

75,285

Earnings per Common Share -

Basic

0.79

0.91

1.16

Diluted

0.79

0.90

1.15

Weighted Average Shares

Outstanding -

Basic

65,362

65,276

64,820

Diluted

65,823

65,781

65,470

FOR THE NINE MONTHS ENDED

(In thousands)

June 30,

2012

June 30,

2011

Revenues

$

534,896

$

467,518

Income before Income Taxes

203,413

240,929

Provision for Income Taxes

(26,768)

(42,182)

Net Income

$

176,645

$

198,747

Earnings per Common Share -

Basic

2.71

3.07

Diluted

2.69

3.04

Weighted Average Shares

Outstanding -

Basic

65,221

64,689

Diluted

65,715

65,355

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

Three Months Ended June 30,

Nine Months Ended June 30,

2012

2011

2012

2011

REVENUES:

Contract drilling

$

178,603

$

162,147

$

534,896

$

467,518

COSTS AND EXPENSES:

Contract drilling

87,374

53,004

245,060

161,750

Depreciation

15,650

10,395

46,419

27,991

General and administrative

11,856

9,742

37,502

34,480

Other, net

274

—

1,137

(77)

115,154

73,141

330,118

224,144

OPERATING INCOME

63,449

89,006

204,778

243,374

OTHER INCOME (EXPENSE)

Interest expense, net of capitalized interest

(1,517)

(1,900)

(1,623)

(3,037)

Interest Income

58

97

258

592

(1,459)

(1,803)

(1,365)

(2,445)

INCOME  BEFORE INCOME TAXES

61,990

87,203

203,413

240,929

PROVISION FOR INCOME TAXES

10,279

11,918

26,768

42,182

NET INCOME

$

51,711

$

75,285

$

176,645

$

198,747

EARNINGS PER COMMON SHARE:

Basic

0.79

1.16

2.71

3.07

Diluted

0.79

1.15

2.69

3.04

AVERAGE COMMON SHARES OUTSTANDING:

Basic

65,362

64,820

65,221

64,689

Diluted

65,823

65,470

65,715

65,355

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

ANALYSIS OF REVENUES AND DRILLING COSTS

(Unaudited)

REVENUES

(In millions)

Three Months Ended

Nine Months Ended

June 30,

2012

March 31,

2012

June 30,

2011

June 30,

2012

June 30,

2011

Atwood Osprey

$

45.0

$

38.5

$

16.2

$

124.3

$

16.2

Atwood Eagle

31.6

35.1

39.6

102.2

104.6

Atwood Falcon

18.3

14.1

39.0

62.8

118.5

Atwood Hunter

48.2

50.6

40.4

143.5

140.2

Atwood Beacon

10.8

11.5

12.2

33.8

34.1

Atwood Aurora

14.9

13.0

6.1

40.6

28.5

Vicksburg

8.3

8.8

8.8

26.2

25.6

Other

1.5

—

(0.2)

1.5

(0.2)

$

178.6

$

171.6

$

162.1

$

534.9

$

467.5

CONTRACT DRILLING COSTS

(In millions)

Three Months Ended

Nine Months Ended

June 30,

2012

March 31,

2012

June 30,

2011

June 30,

2012

June 30,

2011

Atwood Osprey

$

16.1

$

16.3

$

6.5

$

48.2

$

8.4

Atwood Eagle

14.9

14.6

16.7

47.7

49.4

Atwood Falcon

21.0

12.2

7.9

41.4

23.0

Atwood Hunter

11.7

13.6

7.1

37.6

26.0

Atwood Beacon

7.6

8.5

7.2

23.5

23.6

Atwood Aurora

7.4

8.4

3.7

24.6

14.6

Vicksburg

4.8

5.1

3.7

15.2

11.9

Other

3.9

0.6

0.2

6.9

4.9

$

87.4

$

79.3

$

53.0

$

245.1

$

161.8

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

June 30,

2012

September 30,

2011

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$

78,980

$

295,002

Accounts receivable, net of allowance for doubtful accounts

84,380

87,173

Income tax receivable

4,741

5,631

Inventories of materials and supplies

72,848

58,263

Prepaid expenses and deferred costs

9,608

14,862

Total current assets

250,557

460,931

PROPERTY AND EQUIPMENT, net

2,372,446

1,887,321

LONG TERM ASSETS:

Other receivables

11,875

11,875

Deferred costs and other assets

29,367

15,264

Total long-term assets

41,242

27,139

Total assets

$

2,664,245

$

2,375,391

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

$

72,094

$

113,021

Accrued liabilities

33,549

30,680

Notes payable

—

5,461

Income tax payable

3,602

8,461

Deferred credits

26,473

1,700

Total current liabilities

135,718

159,323

LONG TERM LIABILITIES:

Long-term debt

655,000

520,000

Deferred income taxes

9,267

9,780

Deferred credits

6,686

7,910

Other

18,287

25,591

Total long-term liabilities

689,240

563,281

COMMITMENTS AND CONTINGENCIES (SEE NOTE 10)

SHAREHOLDERS' EQUITY:

Preferred stock, no par value;

1,000 shares authorized, none outstanding

—

—

Common Stock, $1 par value;

90,000 shares authorized with 65,363 and 64,960 issued and outstanding at June 30, 2012 and September 30, 2011, respectively

65,363

64,960

Paid-in capital

155,652

145,084

Retained earnings

1,620,915

1,444,270

Accumulated other comprehensive loss

(2,643)

(1,527)

Total shareholders' equity

1,839,287

1,652,787

Total liabilities and shareholders' equity

$

2,664,245

$

2,375,391