Houston, Texas
July 31, 2013

FOR IMMEDIATE RELEASE - EARNINGS

ATWOOD OCEANICS, INC., announced today that the Company earned net income of $90.0 million or $1.37 per diluted share, on revenues of $272.7 million for the quarter ended June 30, 2013 compared to net income of $85.5 million or $1.28 per diluted share on revenues of $253.2 million for the quarter ended March 31, 2013 and compared to net income of $51.7 million or $0.79 per diluted share, on revenues of $178.6 million for the quarter ended June 30, 2012.  For the nine months ended June 30, 2013, the Company earned net income of $248.3 million or $3.75 per diluted share, on revenues of $770.9 million compared to net income of $176.6 million or $2.69 per diluted share, on revenues of $534.9 million for the nine months ended June 30, 2012.

For the Three Months Ended
(In thousands, except per share amounts) June 30,
2013
March 31,
2013
June 30,
2012
Revenues $ 272,688 $ 253,161 $ 178,603
Income before Income Taxes 105,130 97,432 61,990
Provision for Income Taxes (15,149 ) (11,913 ) (10,279 )
Net Income $ 89,981 $ 85,519 $ 51,711
Earnings per Common Share -
Basic $ 1.38 $ 1.30 $ 0.79
Diluted $ 1.37 $ 1.28 $ 0.79
Weighted Average Shares
Outstanding -
Basic 65,062 65,733 65,362
Diluted 65,858 66,589 65,823

For the Nine Months Ended
(In thousands, except per share amounts) June 30,
2013
June 30,
2012
Revenues $ 770,942 $ 534,896
Income before Income Taxes 286,649 203,413
Provision for Income Taxes (38,318 ) (26,768 )
Net Income $ 248,331 $ 176,645
Earnings per Common Share -
Basic $ 3.79 $ 2.71
Diluted $ 3.75 $ 2.69
Weighted Average Shares
Outstanding -
Basic 65,441 65,221
Diluted 66,180 65,715

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

Three Months Ended June 30, Nine Months Ended June 30,
(In thousands, except per share amounts) 2013 2012 2013 2012
REVENUES:
Contract drilling $ 272,688 $ 178,603 $ 770,942 $ 534,896
COSTS AND EXPENSES:
Contract drilling 117,963 87,374 337,352 245,060
Depreciation 30,352 15,650 86,412 46,419
General and administrative 13,663 11,856 44,152 37,502
Other, net (55 ) 274 (68 ) 1,137
161,923 115,154 467,848 330,118
OPERATING INCOME $ 110,765 $ 63,449 $ 303,094 $ 204,778
OTHER INCOME (EXPENSE)
Interest expense, net of capitalized interest (5,692 ) (1,517 ) (16,647 ) (1,623 )
Interest Income 57 58 202 258
(5,635 ) (1,459 ) (16,445 ) (1,365 )
INCOME  BEFORE INCOME TAXES 105,130 61,990 286,649 203,413
PROVISION FOR INCOME TAXES 15,149 10,279 38,318 26,768
NET INCOME $ 89,981 $ 51,711 $ 248,331 $ 176,645
EARNINGS PER COMMON SHARE:
Basic $ 1.38 $ 0.79 $ 3.79 $ 2.71
Diluted $ 1.37 $ 0.79 $ 3.75 $ 2.69
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 65,062 65,362 65,441 65,221
Diluted 65,858 65,823 66,180 65,715

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

REVENUES
Three Months Ended Nine Months Ended
(In millions) June 30,
2013
March 31,
2013
June 30,
2012
June 30,
2013
June 30,
2012
Atwood Condor $ 42.5 $ 39.3 $ - $ 122.3 $ -
Atwood Osprey 44.5 36.9 43.5 123.8 120.5
Atwood Eagle 31.5 35.0 31.1 93.9 100.2
Atwood Falcon 32.1 34.0 17.6 101.5 58.1
Atwood Hunter 38.7 35.0 47.4 110.8 140.1
Atwood Aurora 12.2 11.8 14.2 36.4 39.3
Atwood Beacon 14.0 14.8 10.3 42.8 31.0
Atwood Mako 13.2 13.1 - 39.5 -
Atwood Manta 13.0 12.5 - 28.8 -
Atwood Orca 9.9 - - 9.9 -
Vicksburg 9.9 9.9 8.1 29.0 25.4
Reimbursable 11.2 10.9 6.4 32.3 20.3
$ 272.7 $ 253.2 $ 178.6 $ 771.0 $ 534.9

CONTRACT DRILLING COSTS
Three Months Ended Nine Months Ended
(In millions) June 30,
2013
March 31,
2013
June 30,
2012
June 30,
2013
June 30,
2012
Atwood Condor $ 16.4 $ 14.6 $ - $ 45.3 $ -
Atwood Osprey 16.8 15.4 15.3 47.5 46.6
Atwood Eagle 15.5 15.2 14.5 50.5 46.3
Atwood Falcon 16.3 13.4 20.5 44.0 38.3
Atwood Hunter 11.0 10.1 11.5 32.6 35.0
Atwood Aurora 6.1 6.2 7.1 18.7 23.8
Atwood Beacon 7.0 8.4 7.4 25.6 21.4
Atwood Mako 4.8 5.4 - 15.4 -
Atwood Manta 4.8 5.1 - 12.0 -
Atwood Orca 3.7 - - 4.0 -
Vicksburg 4.9 4.6 4.7 14.2 14.8
Reimbursable 8.5 8.9 2.5 23.4 11.9
Other 2.2 0.2 3.9 4.2 6.9
$ 118.0 $ 107.5 $ 87.4 $ 337.4 $ 245.0

ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands) June 30,
2013
September 30,
2012
ASSETS
Cash and cash equivalents $ 221,877 $ 77,871
Accounts receivable, net of allowance for doubtful accounts of $4,000 and $0 at June 30, 2013 and September 30, 2012, respectively 179,980 167,186
Income tax receivable 7,141 5,750
Inventories of materials and supplies 100,825 80,290
Prepaid expenses and deferred costs 23,226 39,437
Total current assets 533,049 370,534
Property and equipment, net 3,035,572 2,537,340
Other receivables 11,869 11,875
Deferred costs and other assets 22,823 24,013
Total assets $ 3,603,313 $ 2,943,762
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 72,622 $ 83,592
Accrued liabilities 32,340 24,478
Notes payable - 5,148
Income tax payable 16,022 9,711
Deferred credits 13,773 13,738
Total current liabilities 134,757 136,667
Long-term debt 1,338,500 830,000
Deferred income taxes 8,186 8,791
Deferred credits 1,322 8,928
Other 21,867 19,954
Total long-term liabilities 1,369,875 867,673
Commitments and contingencies
Preferred stock, no par value, 1,000 shares authorized, none outstanding - -
Common stock, $1.00 par value, 90,000 shares authorized with 63,952 and 65,452 issued and outstanding at June 30, 2013 and September 30, 2012, respectively 63,952 65,452
Paid-in capital 176,909 160,540
Retained earnings 1,859,512 1,716,441
Accumulated other comprehensive loss (1,692 ) (3,011 )
Total shareholders' equity 2,098,681 1,939,422
Total liabilities and shareholders' equity $ 3,603,313 $ 2,943,762

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

Nine Months Ended June 30,
(In thousands) 2013 2012
Cash flows from operating activities:
Net income $ 248,331 $ 176,645
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 86,412 46,419
Amortization of debt issuance costs and bond premium 3,083 2,590
Amortization of deferred items 1,227 3,736
Provision for doubtful accounts 3,510 540
Provision for inventory obsolescence 1,530 615
Deferred income tax benefit (605 ) (513 )
Share-based compensation expense 10,418 7,709
Other, net (67 ) 1,137
Change in assets and liabilities:
Accounts receivable (18,297 ) 2,253
Income tax receivable (1,391 ) 890
Inventory (22,065 ) (15,200 )
Prepaid expenses 12,788 6,186
Deferred costs and other assets (9,519 ) (22,343 )
Accounts payable (10,970 ) 20,467
Accrued liabilities (6,745 ) 2,356
Bond premium 8,500 -
Income tax payable 6,311 (4,859 )
Deferred credits and other liabilities 9,989 10,006
Net cash provided by operating activities 322,440 238,634
Cash flows from investing activities:
Capital expenditures (569,696 ) (594,789 )
Proceeds from sale of assets 129 7,513
Net cash used in investing activities (569,567 ) (587,276 )
Cash flows from financing activities:
Proceeds from issuance of bonds 200,000 450,000
Proceeds from bank credit facilities 400,000 135,000
Principal payments on bank credit facilities (100,000 ) (450,000 )
Principal payments on notes payable (5,148 ) (5,461 )
Repurchase and retirement of common shares (107,260 ) -
Proceeds from exercise of stock options 6,451 3,262
Debt issuance costs paid (2,910 ) (181 )
Net cash provided by financing activities 391,133 132,620
Net increase (decrease) in cash and cash equivalents $ 144,006 $ (216,022 )
Cash and cash equivalents, at beginning of period $ 77,871 $ 295,002
Cash and cash equivalents, at end of period $ 221,877 $ 78,980

Atwood Oceanics, Inc. is a global offshore drilling contractor engaged in the drilling and completion of exploratory and developmental oil and gas wells. The company currently owns 13 mobile offshore drilling units and is constructing four 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."

Contact: Mark L. Mey
(281) 749-7902





This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Atwood Oceanics, Inc. via Thomson Reuters ONE

HUG#1720335

© GlobeNewswire - 2013