dfb9ed93-85b5-4754-a875-e17622bf2603.pdf ATWOOD OCEANICS ANNOUNCES FISCAL 2016 SECOND QUARTER EARNINGS FOR IMMEDIATE RELEASE - EARNINGS HOUSTON, May 5, 2016 -- Atwood Oceanics, Inc. (NYSE: ATW) ("Company"), announced today that it had earned net income of $122.4 million or $1.89 per diluted share, on revenues of $296.4 million for the quarter ended March 31, 2016 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 and compared to 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. For the six months ended March 31, 2016, the Company earned net income of $161.5 million or $2.49 per diluted share, on revenues of $604.2 million compared to net income of $168.9 million or $2.60 per diluted share, on revenues of $702.1 million for the six months ended March 31, 2015.

During the three months ended March 31, 2016, we repurchased, through open market transactions, $13.5 million aggregate principal of our Senior Notes at an aggregate cost of $5.1 million, including a minimal amount of accrued interest, representing an average discount of 62.2%. As a result of the repurchases, we recognized a gain on debt retirement, net of the related debt issuance costs, of $8.4 million (or $0.13 per diluted share) in Gains on extinguishment of debt on the Condensed Consolidated Statement of Operations for the three and six months ended March 31, 2016. In April 2016, we completed additional repurchases of $140.7 million aggregate principal amount of our Senior Notes for $94.0 million, including $2.3 million of accrued interest, representing an average discount of 34.8%.

These repurchases, both in the period ended March 31, 2016 and in April 2016, allowed us to reduce our outstanding indebtedness and related interest expense at a significant discount to the face value of our Senior Notes. The gain associated with the repurchases is subject to tax and will increase our effective tax rate. However, due to the availability of operating loss carry-forwards the actual cash tax impact will be minimal. The repurchases were made using available cash balances. Following these repurchases, the Company has $495.8 million Senior Notes outstanding.

On April 13, 2016, the Atwood Falcon sale and recycling transaction closed and title of the vessel and associated equipment and machinery transferred to the buyer. The estimated loss on sale of the Atwood Falcon of $0.7 million is recognized in the three and six months ended March 31, 2016.

For the Three Months Ended (Unaudited) March 31, December 31, March 31,

(In thousands, except per share amounts)

2016 2015

2015

Revenues

$ 296,351

$ 307,819

$ 350,387

Income before Income Taxes

136,426

50,295

134,976

Provision for Income Taxes (13,989)

(11,214)

(12,307)

Basic $ 1.89

$ 0.60

$ 1.90

Net Income $ 122,437 $ 39,081 $ 122,669 Earnings per Common Share -

Diluted $ 1.89 $ 0.60 $ 1.89

For the Six Months Ended (Unaudited)

(In thousands, except per share amounts)

March 31,

2016

March 31, 2015

Revenues $ 604,170 $ 702,113

Income before Income Taxes 186,721 190,316

Provision for Income Taxes

(25,203)

(21,429)

Net Income $ 161,518 $ 168,887

Earnings per Common Share -

Basic

$ 2.49

$ 2.62

Diluted $ 2.49 $ 2.60

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

Revenues related to reimbursable expenses 13,805

11,766

27,009

26,731

Contract drilling 89,918

131,124

220,570

267,589

Depreciation 41,053

42,528

83,880

87,103

Asset impairment 708

-

65,432

60,777

Other, net (1,137)

-

(1,060)

-

Three Months Ended March 31, Six Months Ended March 31,

(In thousands, except per share amounts)

2016 2015 2016

2015

REVENUES:

Contract drilling

$ 282,546 $ 338,621 $ 577,161

$ 675,382

Total revenues

296,351

350,387

604,170

702,113

COSTS AND EXPENSES:

Reimbursable expenses General and administrative Loss on sale of assets

9,123

11,488

77

151,230

8,661

14,737

5,529

202,579

17,409

26,665

77

412,973

20,568

32,146

15,335

483,518

OPERATING INCOME

145,121

147,808

191,197

218,595

OTHER INCOME (EXPENSE):

Interest income

6

15

10

72

Other income

-

-

17,976

-

(8,695)

(12,832)

(4,476)

(28,279)

PROVISION FOR INCOME TAXES

13,989

12,307

25,203

21,429

EARNINGS PER COMMON SHARE

(NOTE 2):

Interest expense, net of capitalized interest (17,098)

(12,847)

(30,859)

(28,351)

Gains on extinguishment of debt 8,397

-

8,397

-

INCOME BEFORE INCOME TAXES 136,426

134,976

186,721

190,316

NET INCOME $ 122,437

$ 122,669

$ 161,518

$ 168,887

Basic $ 1.89 $ 1.90 $ 2.49 $ 2.62

Diluted $ 1.89

$ 1.89

$ 2.49

$ 2.60

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (NOTE 2):

Basic 64,781

64,620

64,739

64,513

Diluted 64,825 65,048 64,870 65,031

ATWOOD OCEANICS, INC. AND SUBSIDIARIES UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS REVENUES Three Months Ended Six Months Ended

(In millions)

March 31,

2016

December 31,

2015

March 31,

2015

March 31,

2016

March 31,

2015

Ultra-Deepwater

$ 189

$ 182

$ 183

$ 371

$ 350

Deepwater

59

72

82

131

181

Jackups 34

41

73

75

145

Reimbursable 14 13 12 27 26

$ 296

$ 308

$ 350

$ 604

$ 702

DRILLING COSTS Three Months Ended Six Months Ended

(In millions)

March 31,

2016

December 31,

2015

March 31,

2015

March 31,

2016

March 31,

2015

Ultra-Deepwater

$ 54

$ 61

$ 68

$ 115

$ 131

Deepwater

19

43

32

62

73

Jackups 19

26

30

45

61

Other (2)

1

1

(1)

2

Reimbursable 9 8 9 17 21 $ 99 $ 139 $ 140 $ 238 $ 288

Atwood Oceanics Inc. published this content on 05 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 05 May 2016 21:56:06 UTC.

Original documenthttp://ir.atwd.com/file.aspx?IID=4010374&FID=1001210038

Public permalinkhttp://www.publicnow.com/view/5C9F6456606D122D6A1F12C339A01B61B9235C47