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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: July 28, 2006
ATWOOD OCEANICS, INC.
(Exact name of registrant as specified in its charter)
COMMISSION FILE NUMBER 1-13167
Internal Revenue Service - Employer Identification No. 74-1611874
15835 Park Ten Place Drive, Houston, Texas, 77084
(281) 749-7800
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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 (see General Instruction A.2. below):
[ ] 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))
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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On July 28, 2006, the Company announced its earnings for the Fiscal Year
2006 Third Quarter ended June 30, 2006. A copy of the press release summarizing
these earnings is furnished with this Form 8-K as Exhibit 99.1 and should
not be deemed to be filed under Section 18 of the Exchange Act.
Additional information with respect to the Company's consolidated
statements of operations for the three months and nine months ended June 30,
2006 and 2005 and an analysis of revenues and contract drilling costs for the
three months and nine months ended June 30, 2006 and 2005 are attached hereto as
Exhibits 99.2 and 99.3, respectively, which are being furnished; however, should
not be deemed to be filed under Section 18 of the Exchange Act.
ITEM 7.01 REGULATION FD DISCLOSURE
Additional information with respect to the Company's Fleet Status Report at
July 28, 2006 is attached hereto as Exhibit 99.4. Such information is being
furnished under Regulation FD and should not be deemed to be filed under Section
18 of the Exchange Act.
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 including; 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's annual report on Form 10-K for the year ended September
30, 2005, filed with the Securities and Exchange Commission.
ITEM 9.01 EXHIBITS
EXHIBIT 99.1 PRESS RELEASE DATED JULY 28, 2006
EXHIBIT 99.2 CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS AND
NINE MONTHS ENDED JUNE 30, 2006 AND 2005
EXHIBIT 99.3 ANALYSIS OF REVENUES AND CONTRACT DRILLING COSTS FOR
THE THREE MONTHS AND NINE MONTHS ENDED JUNE 30, 2006
EXHIBIT 99.4 FLEET STATUS REPORT AT JULY 28, 2006
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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: July 28, 2006
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EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
----------- -----------
99.1 Press Release dated July 28, 2006
99.2 Consolidated Statements of Operations for the Three Months and Nine
Months ended June 30, 2006 and 2005
99.3 Analysis of Revenues and Drilling Costs for the Three Months and Nine
Months ended June 30, 2006
99.4 Fleet Status Report at July 28, 2006
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EXHIBIT 99.1
Houston, Texas
28 July 2006
FOR IMMEDIATE RELEASE
ATWOOD OCEANICS, INC., Houston-based International Drilling Contractor,
announced today that the Company earned net income of $27,623,000 or $.87 per
diluted share, on revenues of $71,565,000 for the quarter ended June 30, 2006,
compared to net income of $5,989,000 or $.19 per diluted share, on revenues of
$43,589,000 for the quarter ended June 30, 2005. For the nine months ended June
30, 2006, the Company earned net income of $57,775,000 or $1.84 per diluted
share, on revenues of $194,508,000 compared to net income of $19,350,000 or $.62
per diluted share, on revenues of $130,032,000 for the nine months ended June
30, 2005.
Net income for the quarter and nine months ended June 30, 2006 was enhanced
by approximately $1.9 million or $.06 per diluted share from income tax benefits
discrete to the June 2006 quarter and by approximately $1.1 million or $0.03 per
diluted share from the gains on sales of excess equipment.
FOR THE THREE MONTHS ENDED JUNE 30,
2006 2005
------------ ------------
Revenues $ 71,565,000 $ 43,589,000
Income before Income Taxes 28,763,000 5,933,000
(Provision) benefit for Income Taxes (1,140,000) 56,000
Net Income 27,623,000 5,989,000
Earnings per Common Share -
Basic 0.89 0.20
Diluted 0.87 0.19
Weighted Average Shares
Outstanding -
Basic 31,037,000 30,484,000
Diluted 31,583,000 31,300,000
FOR THE NINE MONTHS ENDED JUNE 30,
2006 2005
-------------- -------------
Revenues $ 194,508,000 $ 130,032,000
Income before Income Taxes 64,108,000 20,176,000
Provision for Income Taxes (6,333,000) (826,000)
Net Income 57,775,000 19,350,000
Earnings per Common Share -
Basic 1.87 0.64
Diluted 1.84 0.62
Weighted Average Shares
Outstanding -
Basic 30,900,000 30,356,000
Diluted 31,412,000 31,144,000
Contact: Jim Holland
(281) 749-7804
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EXHIBIT 99.2
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
June 30, June 30,
--------------------------- ---------------------------
2006 2005 2006 2005
REVENUES:
Contract drilling $ 71,565 $ 43,589 $ 194,508 $ 122,376
Business interruption proceeds - - - 7,656
-------- -------- --------- ---------
71,565 43,589 194,508 130,032
-------- -------- --------- ---------
COSTS AND EXPENSES:
Contract drilling 31,679 25,863 102,719 74,667
Depreciation 6,192 6,764 18,789 19,929
General and administrative 4,830 3,224 15,428 9,814
-------- -------- --------- ---------
42,701 35,851 136,936 104,410
-------- -------- --------- ---------
OPERATING INCOME 28,864 7,738 57,572 25,622
-------- -------- --------- ---------
OTHER INCOME (EXPENSE)
Interest expense, net of capitalized interest (1,435) (1,913) (4,642) (5,658)
Gain on sale of equipment 1,075 - 10,350 -
Interest income 259 108 828 212
-------- -------- --------- ---------
(101) (1,805) 6,536 (5,446)
-------- -------- --------- ---------
INCOME BEFORE INCOME TAXES 28,763 5,933 64,108 20,176
PROVISION (BENEFIT) FOR INCOME TAXES 1,140 (56) 6,333 826
-------- -------- --------- ---------
NET INCOME $27,623 $5,989 $57,775 $19,350
======== ======== ========= =========
EARNINGS PER COMMON SHARE:
Basic 0.89 0.20 1.87 $0.64
Diluted 0.87 0.19 1.84 0.62
AVERAGE COMMON SHARES OUTSTANDING:
Basic 31,037 30,484 30,900 30,356
Diluted 31,583 31,300 31,412 31,144
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EXHIBIT 99.3
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
ANALYSIS OF REVENUES AND DRILLING COSTS
(Unaudited)
FOR THE THREE MONTHS ENDED
JUNE 30, 2006
CONTRACT
DRILLING
REVENUES COSTS
-------------- -----------
(In Millions)
ATWOOD HUNTER $ 20.7 $ 4.9
ATWOOD EAGLE 11.9 6.8
ATWOOD FALCON 8.4 4.1
ATWOOD BEACON 8.4 2.6
VICKSBURG 7.9 2.6
ATWOOD SOUTHERN CROSS 6.6 4.1
RICHMOND 4.7 2.5
SEAHAWK 0.1 0.3
AUSTRALIA MANAGEMENT CONTRACTS 2.9 2.1
OTHER - 1.7
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71.6 31.7
====== =====
FOR THE NINE MONTHS ENDED
JUNE 30, 2006
CONTRACT
DRILLING
REVENUES COSTS
--------------- -----------
(In Millions)
ATWOOD HUNTER $ 43.1 $ 12.6
ATWOOD EAGLE 33.3 19.0
ATWOOD SOUTHERN CROSS 23.3 20.2
VICKSBURG 22.3 8.6
ATWOOD FALCON 21.7 11.3
ATWOOD BEACON 21.4 7.8
RICHMOND 12.8 7.4
SEAHAWK 7.6 4.4
AUSTRALIA MANAGEMENT CONTRACTS 8.9 7.3
OTHER 0.1 4.1
----- -----
194.5 102.7
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EXHIBIT 99.4
ATWOOD OCEANICS, INC. AND SUBSIDIARIES FLEET STATUS REPORT
AS OF JULY 28, 2006
As used herein, "we", "us", and "our" refers to Atwood Oceanics, Inc. and its subsidiaries, except where the context
indicates otherwise. Statements contained in this Fleet Status Report, including information regarding our estimated
rig availability, contract duration, future dayrates, future daily operating costs, future effective tax rates, customer
or contract status 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 including: our dependence on the oil and gas industry;
the risks involved in upgrade, repair and construction of our rigs; competition; operating risks; risks involved in
foreign operations; risks associated with possible disruptions in operations due to terrorism; risks associated with a
possible disruption in operations due to the war with Iraq and governmental regulations and environmental matters. A
list of additional risk factors can be found in our annual report on Form 10-K for the year ended September 30, 2005,
filed with the Securities and Exchange Commission. All information in this Fleet Status Report is as of the date
indicated above. We undertake no duty to update the content of this Fleet Status Report or any forward-looking
statement contained herein to conform the statement to actual results or to reflect changes in our expectations.
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AVERAGE PER DAY
RATED ESTIMATED ESTIMATED OPERATING COSTS (NOT
RIG WATER CONTRACT CONTRACT INCLUDING TAX) FOR ADDITIONAL
NAME DEPTH LOCATION CUSTOMER END DATE DAYRATE THE THREE MONTHS COMMENTS
ENDED JUNE 30,
2006/MONTH OF JUNE
2006 ONLY
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SEMISUBMERSIBLES:
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ATWOOD 5,000' Australia WOODSIDE FIRM WORK - 1 well at $99,000 $75,000/$73,000 The $99,000 rate well is
EAGLE ENERGY LTD (2 wells) 1 well at $179,000 expected to be completed at
("WOODSIDE") August 2006 the end of July 2006.
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Australia BHP BILLITON FIRM WORK - 8 wells at $158,000 N/A Wells are subject to a
PETROLEUM PTY (10 wells) 1 well at $168,000 change in sequence and
("BHPB") August 2007 1 well at $150,000 dayrate is subject to some
change due to currency
exchange rate variance.
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Australia BHPB OPTIONS - $168,000 N/A Dayrate is subject to some
(3 wells) change due to currency
November 2007 (if all exchange rate variance.
three option wells
are drilled)
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AVERAGE PER DAY
RATED ESTIMATED ESTIMATED OPERATING COSTS (NOT
RIG WATER CONTRACT CONTRACT INCLUDING TAX) FOR ADDITIONAL
NAME DEPTH LOCATION CUSTOMER END DATE DAYRATE THE THREE MONTHS COMMENTS
ENDED JUNE 30,
2006/MONTH OF JUNE
2006 ONLY
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Australia ENI Spa AGIP FIRM WORK - $360,000 N/A We expect the well to take
EXPLORATION & (1 well) 40 to 45 days to complete.
PRODUCTION December 2007
DIVISION (assuming that all of
("ENI") the above option
wells are drilled)
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Australia WOODSIDE FIRM WORK - $420,000 N/A Woodside has an option
(1 year) (which expires October
December 2008 2006) to extend the
(assuming that all of drilling program from one
the above option year to two or three
wells are drilled and years. If either the two
that Woodside does or three year option period
not extend their is selected, the dayrate
program to two for the entire selected
or three years) period will be $405,000.
If a one year period is
selected, the dayrate will
be $420,000.
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Australia N/A N/A N/A N/A The rig could be off
dayrates for ten to
fourteen days during the
first quarter of fiscal
year 2008 for required
regulatory inspections and
maintenance.
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ATWOOD 5,000' Mauritania/ WOODSIDE FIRM WORK - $240,000 (Mauritania) $54,000/$63,000 Operating costs are
HUNTER Libya (2 years) $245,000 (Libya) expected to be $50,000 to
May 2008 $55,000 per day while
working in
Mauritania/Libya; however,
costs could be higher
during any relocation
period.
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Mauritania N/A N/A N/A N/A The rig is expected to be
off dayrate for ten to
fourteen days during the
first quarter of fiscal
year 2007 for required
regulatory inspections and
maintenance.
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AVERAGE PER DAY
RATED ESTIMATED ESTIMATED OPERATING COSTS (NOT
RIG WATER CONTRACT CONTRACT INCLUDING TAX) FOR ADDITIONAL
NAME DEPTH LOCATION CUSTOMER END DATE DAYRATE THE THREE MONTHS COMMENTS
ENDED JUNE 30,
2006/MONTH OF JUNE
2006 ONLY
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TBD WOODSIDE OPTIONS - TBD N/A
Two (2) six-month
options.
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ATWOOD 3,700' Malaysia SARAWAK FIRM WORK - $93,200 $45,000/$38,000
FALCON (to be SHELL August 2006
upgraded to BERHAD
5,000' at ("SHELL")
the end of
fiscal year
2006)
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Shipyard SHELL FIRM WORK - $90,000 N/A The rig is scheduled to
November 2006 (for up to undergo an estimated $32
85 days) million upgrade with Shell
paying $24 million of the
costs.
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Malaysia SHELL FIRM WORK - $93,200 N/A The rig should drill two
January 2007 wells at $93,200 following
the upgrade. (The $24
million Shell reimbursement
will be amortized as
revenues over the remaining
firm contract commitment
following the upgrade (33
months) which will increase
dayrate revenues by
approximately $24,000.)
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Malaysia SHELL FIRM WORK - $113,000 N/A
July 2007
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Malaysia SHELL FIRM WORK - $160,000/ N/A Most of the work during
(2 years) $200,000 (dayrate this period is expected to
July 2009 depends on water depth be at the $160,000 dayrate
of each well) level.
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Malaysia SHELL OPTION - TBD N/A
(1 year)
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-3-
AVERAGE PER DAY
RATED ESTIMATED ESTIMATED OPERATING COSTS (NOT
RIG WATER CONTRACT CONTRACT INCLUDING TAX) FOR ADDITIONAL
NAME DEPTH LOCATION CUSTOMER END DATE DAYRATE THE THREE MONTHS COMMENTS
ENDED JUNE 30,
2006/MONTH OF JUNE
2006 ONLY
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ATWOOD 2,000' Italy ENI FIRM WORK - $70,000 $45,000/$47,000
SOUTHERN September/
CROSS October 2006
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Mobilization MELROSE FIRM WORK - $100,000 N/A Operating costs are
to Black RSOURCES November 2006 expected to be $45,000 to
Sea - ("MELROSE") AND $50,000 per day during
Bulgaria/ TOREADOR mobilization and while
Turkey TURKEY LIMITED working in the Black Sea.
("TOREADOR")
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Bulgaria MELROSE FIRM WORK - $125,000 N/A There is a possibility that
(3 wells) MELROSE may let TOREADOR
February 2007 drill all or a part of
their drilling program
before the MELROSE
program. If the rig drills
for TOREADOR ahead of
MELROSE and if TOREADOR has
a well to be drilled after
completion of the MELROSE
work, the dayrate for that
well will be $135,000.
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Bulgaria MELROSE OPTIONS - $125,000 N/A See above
(2 wells)
April 2007 (if both
option wells are
drilled)
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Turkey TOREADOR FIRM WORK - $125,000 N/A See above
(3 wells)
July 2007
(assuming Melrose
option wells are
drilled)
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Turkey TURKIYE FIRM WORK - $290,000 N/A
PETROLLERI (3 wells)
A.O. October 2007
("TPAO") (assuming above
option wells are
drilled)
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AVERAGE PER DAY
RATED ESTIMATED ESTIMATED OPERATING COSTS (NOT
RIG WATER CONTRACT CONTRACT INCLUDING TAX) FOR ADDITIONAL
NAME DEPTH LOCATION CUSTOMER END DATE DAYRATE THE THREE MONTHS COMMENTS
ENDED JUNE 30,
2006/MONTH OF JUNE
2006 ONLY
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Turkey TPAO OPTIONS - $320,000 N/A If TPAO exercises their
(3 wells) options, the well sequence
January 2008 for TPAO option wells and
(assuming MELROSE VANCO wells could change.
option wells drilled
and TPAO exercises
options to drill all
three option wells)
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Ukraine VANCO FIRM WORK - $305,000 N/A See above
INTERN- (1 well)
NATIONAL March 2008 (assuming
LTD. MELROSE and TPAO
("VANCO") options are exercised)
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Ukraine VANCO OPTIONS - $325,000 N/A See above
(1 well)
April 2008 (assuming
MELROSE, TPAO and
VANCO options are all
exercised)
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CANTILEVER JACK-UPS:
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ATWOOD 400' Vietnam HOANG FIRM WORK - $110,000 $29,000/$27,000
BEACON LONG September 2006
AND
HOAN VU
JOINT
OPERATING
COMPANIES
("HOANG LONG")
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Mobilization GUJARAT STATE FIRM WORK - $110,000 N/A
to Singapore PETROLEUM October 2006
CORPORATION (Mobilization is
LTD. ("GSPC") expected to take one
week.)
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AVERAGE PER DAY
RATED ESTIMATED ESTIMATED OPERATING COSTS (NOT
RIG WATER CONTRACT CONTRACT INCLUDING TAX) FOR ADDITIONAL
NAME DEPTH LOCATION CUSTOMER END DATE DAYRATE THE THREE MONTHS COMMENTS
ENDED JUNE 30,
2006/MONTH OF JUNE
2006 ONLY
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Singapore N/A October 2006 $70,000 N/A Loss of hire insurance
(The rig is expected coverage
to be in Singapore
about two weeks to
reattach its last leg
section.)
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Mobilization GSPC FIRM WORK - $110,000 N/A
to India November 2006
(Mobilization is
expected to take 17
days.)
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India GSPC FIRM WORK - $113,000 N/A
(13 months)
December 2007
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India GSPC FIRM WORK - $133,500 N/A
(12 months)
December 2008
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India GSPC OPTIONS - (1 year) TBD N/A
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VICKSBURG 300' Malaysia PETROFAC FIRM WORK - $82,000 $29,000/$27,000
(MALAYSIA - (4 wells)
PM304), September/October 2006
LTD.
("PETROFAC")
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Malaysia PETROFAC OPTIONS - $87,000 N/A
(3 wells)
October/November 2006
(assuming all three
option wells are
drilled)
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Mobilization CHEVRON FIRM WORK - $89,775 (95% of N/A
to Thailand OVERSEAS November 2006 operating rate)
PETROLEUM (Mobilization is
("CHEVRON") expected to take
three days.)
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Thailand CHEVRON FIRM WORK - $94,500 N/A
(8 months)
June 2007
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AVERAGE PER DAY
RATED ESTIMATED ESTIMATED OPERATING COSTS (NOT
RIG WATER CONTRACT CONTRACT INCLUDING TAX) FOR ADDITIONAL
NAME DEPTH LOCATION CUSTOMER END DATE DAYRATE THE THREE MONTHS COMMENTS
ENDED JUNE 30,
2006/MONTH OF JUNE
2006 ONLY
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Thailand CHEVRON FIRM WORK - $154,000 N/A
(2 years)
June 2009
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Thailand N/A N/A N/A N/A The rig could be off
dayrate for ten to fourteen
days during the first
quarter of fiscal year 2008
for required regulatory
inspections and
maintenance.
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SEMISUBMERSIBLE TENDER ASSIST UNIT:
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SEAHAWK 1,800' Mobilization AMERADA HESS FIRM WORK - $5.5 Million in fees $3,000/ Following the rig's
to EQUATORIAL August 2006 to be received during $3,000 relocation to Equatorial
Equatorial GUINEA, (Mobilization is the mobilization period Guinea, operating costs are
Guinea INC. ("HESS") expected to take expected to be $45,000 to
approximately one $50,000 per day; however,
month to complete.) costs could be higher
during the initial start-up
period.
Fees received during the
mobilization period are
expected to cover
mobilization costs. (All
fees received during the
mobilization period along
with all mobilization costs
will be amortized over the
firm two year period of the
contract; which is expected
to increase per day
revenues and costs by
approximately $7,500.)
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Equatorial HESS FIRM WORK - $51,322 (75% of N/A
Guinea September 2006 operating rate)
(Rig-up is expected
to take three to four
weeks.)
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Equatorial HESS FIRM WORK - $68,430 N/A
Guinea (2 years)
September 2008
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AVERAGE PER DAY
RATED ESTIMATED ESTIMATED OPERATING COSTS (NOT
RIG WATER CONTRACT CONTRACT INCLUDING TAX) FOR ADDITIONAL
NAME DEPTH LOCATION CUSTOMER END DATE DAYRATE THE THREE MONTHS COMMENTS
ENDED JUNE 30,
2006/MONTH OF JUNE
2006 ONLY
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Equatorial HESS OPTIONS - $68,430 N/A
Guinea (2 years)
September 2010
(if all four
six-month options are
exercised)
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SUBMERSIBLE:
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RICHMOND 70' US Gulf of HELIS OIL AND FIRM WORK - $80,000 $27,000/$27,000
Mexico GAS ("HELIS") (7 wells)
July 2007
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US Gulf of HELIS OPTIONS - TBD N/A
Mexico October/November 2007
(one option for four
additional wells)
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US Gulf of N/A N/A N/A N/A The rig could be off
Mexico dayrate for ten to fourteen
days during the first
quarter of fiscal year 2008
for required regulatory
inspections and maintenance.
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MANAGEMENT CONTRACT
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NORTH N/A Australia WOODSIDE FIRM WORK - Daily margin of $5,000 The management contract
RANKIN 'A' September 2006 to $7,000 could terminate upon
completion of the current
drilling program for the
NORTH RANKIN 'A' platform.
This work is expected to be
completed in September 2006.
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NOTE - EXPECTED TAX RATE
An effective tax rate of 10% to 12% is expected for fiscal year 2006 and 20% to 25% for fiscal year 2007.
Virtually all of the Company's tax provision for fiscal year 2006 and expected tax provision for fiscal year 2007
relates to taxes in foreign jurisdictions. Working in foreign jurisdictions with nontaxable or deemed profit tax
systems contribute to the effective tax rate being significantly less than the United States statutory rate.
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