Superior Energy Buys Out Hallin

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    hallin marine
    Hallin Marine

    Superior Energy paid about $162 million to buy out Hallin’s equity and another $55 million to settle about $55 million debt.

    Superior had previously said it plans to use its debt financing arranged by JP Morgan Chase Bank to pay for the takeover.

    Superior expects to incur pre-tax charges of about $16 million ($0.13 per share) associated with the Hallin acquisition, a write-down of components from its marine assets and projected bad debts from its contracts in Venezuela.

    The New Orleans-based outfit warns of a $69 million ($0.56 per share) cost hike, but maintained its gross profit guidance on a wreck removal project.

    Fourth quarter earnings will also be affected by a non-cash, pre-tax impairment charge of up to about $120 million ($0.98 per share) related to domestic land well intervention assets.

    Superior said its earnings per share for 2010 will fall between $1.50 and $1.70.

    Superior’s chief Terry Hall said, “We believe providing earnings guidance for 2010 will be helpful to investors as we wind down the wreck removal project, ramp up activity associated with Bullwinkle and expand our international and subsea presence with Hallin.

    “The earnings guidance provided includes those transactions and reflects our current geographic and product/services outlook. Due to the seasonal nature of the Gulf of Mexico and the fact that many of our well intervention services lag a recovery in the rig count, we anticipate that our 2010 earnings will be weighted more toward the second half of the year.”

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