Complete Production Services Ups 2007 Revenue to $1.66 Billion
Complete Production Services, Inc. reported 2007 revenue of $1.66 billion versus $1.21 billion in 2006. Net income from continuing operations was $174.7 million before a $13.1 million goodwill impairment charge in Canada, up 27% compared to the prior year. Earnings per diluted share from continuing operations was $2.38 before the impairment charge of $0.18 per share versus $2.02 in 2006.
Fourth quarter revenue was $424.5 million, up 17% over the fourth quarter of 2006. Earnings before interest, taxes, depreciation, amortization and impairment charge (EBITDA, as defined below) totaled $114.2 million in the fourth quarter, an increase of 11% over the prior year. Fourth quarter income from continuing operations was $41.9 million, or $0.57 per diluted share before the Canadian goodwill impairment charge of $13.1 million or $0.18 per share. This compares with income from continuing operations of $44.1 million, or $0.61 per diluted share for the fourth quarter of 2006.
Revenue for the Completion and Production Services segment during the fourth quarter of 2007 was $330.1 million, up 23% over the prior year, with EBITDA of $102.5 million compared to $80.7 million for the same period in 2006. EBITDA margins for the segment were 31.0%, up from 30.0% for the fourth quarter of the prior year. Results in this segment benefited from the impact of investments in capital equipment and acquisitions offset somewhat by lower utilization and pricing in certain areas and lower activity levels in Canada.
Drilling Services revenue was $61.2 million for the fourth quarter of 2007, down slightly from the same quarter of the prior year and EBITDA margins of 25.9% were down from 37.3%. Lower utilization, lower pricing and higher costs negatively impacted contract drilling revenue. Rig logistics operations were also impacted by lower pricing and utilization in some markets and the effects of relocating an operation to more attractive markets.
Product Sales revenue was $33.2 million for the fourth quarter of 2007, with EBITDA margins of 11.9%.
"While we experienced some softness in the second half of the year, particularly in our Drilling Services and Products segments, we finished the year with a 37% increase in revenue and a 39% increase in EBITDA. We are proud of our accomplishments in 2007 and in the way our people responded to ever changing market conditions. We also made meaningful investments in our operations that will benefit Complete for years to come while lowering our leverage ratio," commented Joe Winkler, Chairman and Chief Executive Officer. "While we may see some near-term continued softness due to additional capacity, many of our customers have indicated that activity levels in 2008 should remain healthy and we remain optimistic about the long-term fundamentals of North American natural gas."