Superior Energy Services Unveils Record Capex Budget
Superior Energy Services, Inc. said that its Board of Directors has approved a record-high capital expenditures budget of approximately $362 million for 2007. The capital expenditures budget is expected to be funded entirely by internally generated cash flows. Some of the significant capital expenditures are as follows:
--The rental tools segment has a capital expenditures budget of approximately $135 million with the emphasis being on continuing the Company's international growth. The plan includes $67 million for drill pipe and specialty tubulars, primarily in international markets; $38 million for accommodations and ancillary equipment, primarily in the Rocky Mountains market area; and $24 million for continued growth in the stabilization and drill collars markets. --The well intervention segment has a capital expenditures budget of approximately $123 million. Some of the larger capital expenditure items include $53 million allocated to the recently acquired Warrior Energy Services for, among other things, 14 coiled tubing spreads and 10 electric line units for the domestic land markets; $26 million in connection with the construction of the previously announced 880-ton derrick barges; $14 million for offshore production-related equipment; and $10 million for well control assets. --The Company's oil and gas subsidiary SPN Resources has a capital expenditures budget of approximately $90 million, primarily for re-completions and workovers. --Of the remaining $14 million of capital expenditures, about $3 million will be spent by the marine segment and the remainder is allocated for facilities and other miscellaneous projects.
Chairman and CEO Terry Hall said:
"We believe our capital expenditures program will help us fulfill our geographic diversification strategy in a manner that creates value long-term. Our capital expenditure plan, which is primarily for expansionary purposes, also reflects our belief that the Warrior acquisition provides us a platform to deploy capital and a footprint to grow our premium well intervention service offerings."
Superior Energy Services, Inc. is a leading provider of specialized oilfield services and equipment focused on serving the production-related needs of oil and gas companies primarily in the Gulf of Mexico and the drilling-related needs of oil and gas companies in the Gulf of Mexico and select international market areas. The company uses its production-related assets to enhance, maintain and extend production and, at the end of an offshore property's economic life, plug and decommission wells. Superior also owns and operates mature oil and gas properties in the Gulf of Mexico.
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