EX-99.2 4 h66883exv99w2.htm EX-99.2 exv99w2
Exhibit 99.2
ITEM 6. SELECTED FINANCIAL DATA
                                         
    Year Ended December 31,  
Operating Data (1)(2)(3)   2008     2007     2006     2005     2004  
(In thousands, except per share amounts and ratio data)                                        
Revenues and other income:
                                        
Operating revenues
   $ 5,511,896     $ 4,938,848     $ 4,707,289     $ 3,394,472     $ 2,351,571  
Earnings (losses) from unconsolidated affiliates
     (229,834 )     17,724       20,545       5,671       4,057  
Investment income (loss)
     21,726       (15,891 )     102,007       85,428       50,044  
 
                              
Total revenues and other income
     5,303,788       4,940,681       4,829,841       3,485,571       2,405,672  
 
                              
Costs and other deductions:
                                        
Direct costs
     3,110,316       2,764,559       2,511,392       1,958,538       1,542,364  
General and administrative expenses
     479,984       436,282       416,610       247,129       192,692  
Depreciation and amortization
     614,367       469,669       365,357       285,054       248,057  
Depletion
     46,979       72,182       38,580       46,894       45,460  
Interest expense
     196,718       154,920       120,507       44,849       48,507  
Losses (gains) on sales, retirements and impairments of long-lived assets and other expense (income), net
     18,954       10,895       24,118       45,952       (5,036 )
Goodwill and intangible asset impairment
     154,586       —       —       —       —  
 
                              
Total costs and other deductions
     4,621,904       3,908,507       3,476,564       2,628,416       2,072,044  
 
                              
Income from continuing operations before income taxes
     681,884       1,032,174       1,353,277       857,155       333,628  
Income tax expense
     206,147       201,496       407,282       219,000       32,660  
 
                              
Income from continuing operations, net of tax
     475,737       830,678       945,995       638,155       300,968  
Income from discontinued operations, net of tax
     —       35,024       27,727       10,540       1,489  
 
                              
Net income
   $ 475,737     $ 865,702     $ 973,722     $ 648,695     $ 302,457  
 
                              
Earnings per share:
                                        
Basic from continuing operations
   $ 1.69     $ 2.96     $ 3.25     $ 2.04     $ 1.01  
Basic from discontinued operations
     —       .12       .10       .03       .01  
 
                              
Total Basic
   $ 1.69     $ 3.08     $ 3.35     $ 2.07     $ 1.02  
 
                              
 
                                        
Diluted from continuing operations
   $ 1.65     $ 2.88     $ 3.15     $ 1.97     $ .96  
Diluted from discontinued operations
     —       .12       .09       .03       —  
 
                              
Total Diluted
   $ 1.65     $ 3.00     $ 3.24     $ 2.00     $ .96  
 
                              
 
                                        
Weighted-average number of common shares outstanding:
                                        
Basic
     281,622       281,238       291,267       312,667       297,872  
Diluted
     288,236       288,226       300,677       323,712       328,060  
 
                                        
Capital expenditures and acquisitions of businesses (4)
   $ 1,578,241     $ 1,945,932     $ 2,006,286     $ 1,003,269     $ 544,429  
Interest coverage ratio (5)
     20.7:1       32.5:1       38.1:1       25.6:1       12.9:1  

 

 

                                         
    As of December 31,
Balance Sheet Data (2)(3)   2008   2007   2006   2005   2004
(In thousands, except ratio data)                                        
Cash, cash equivalents, short-term and long-term investments and other receivables (6)
   $ 826,063     $ 1,179,639     $ 1,653,285     $ 1,646,327     $ 1,411,047  
Working capital
     1,037,734       719,674       1,650,496       1,264,852       821,120  
Property, plant and equipment, net
     7,331,959       6,669,013       5,423,729       3,886,924       3,275,495  
Total assets
     10,517,899       10,139,783       9,155,931       7,230,407       5,862,609  
Long-term debt
     3,600,533       2,894,659       3,457,675       1,251,751       1,201,686  
Shareholders’ equity
   $ 4,904,106     $ 4,801,579     $ 3,889,100     $ 3,758,140     $ 2,929,393  
Funded debt to capital ratio:
                                        
Gross (7)
     0.41:1       0.39:1       0.43:1       0.32:1       0.38:1  
Net (8)
     0.35:1       0.30:1       0.28:1       0.08:1       0.15:1  
 
(1)   All periods present the Sea Mar business as a discontinued operation.
 
(2)   The operating data for the years ended December 31, 2005 and 2004 and the balance sheet data at December 31, 2005 and 2004 do not reflect the adoption of FSP APB No. 14-1.
 
(3)   Our acquisitions’ results of operations and financial position have been included beginning on the respective dates of acquisition and include Pragma Drilling Equipment Ltd. assets (May 2006), 1183011 Alberta Ltd. (January 2006), Sunset Well Service, Inc. (August 2005), Alexander Drilling, Inc. assets (June 2005), Phillips Trucking, Inc. assets (June 2005), and Rocky Mountain Oil Tools, Inc. assets (March 2005).
 
(4)   Represents capital expenditures and the portion of the purchase price of acquisitions allocated to fixed assets and goodwill based on their fair market value.
 
(5)   The interest coverage ratio from continuing operations is computed by calculating the sum of income from continuing operations before income taxes, interest expense, depreciation and amortization, depletion expense, goodwill and intangible asset impairments and our proportionate share of non-cash pre-tax full cost ceiling writedowns from our oil and gas joint ventures less investment income (loss) and then dividing by interest expense. This ratio is a method for calculating the amount of operating cash flows available to cover interest expense. The “interest coverage ratio from continuing operations” is not a measure of operating performance or liquidity defined by accounting principles generally accepted in the United States of America (“GAAP”) and may not be comparable to similarly titled measures presented by other companies.
 
(6)   The December 31, 2008 and 2007 amounts include $1.9 million and $53.1 million, respectively, in cash proceeds receivable from brokers from the sale of certain long-term investments that are included in other current assets and $224.2 million and $123.3 million, respectively, in oil and gas financing receivables that are included in long-term investments and other receivables.
 
(7)   The gross funded debt to capital ratio is calculated by dividing funded debt by funded debt plus deferred tax liabilities, net of deferred tax assets plus capital. Funded debt is defined as the sum of (1) short-term borrowings, (2) current portion of long-term debt and (3) long-term debt. Capital is defined as shareholders’ equity. The “gross funded debt to capital ratio” is not a measure of operating performance or liquidity defined by GAAP and may not be comparable to similarly titled measures presented by other companies.
 
(8)   The net funded debt to capital ratio is calculated by dividing net funded debt by net funded debt plus deferred tax liabilities, net of deferred tax assets plus capital. Net funded debt is defined as the sum of (1) short-term borrowings, (2) current portion of long-term debt and (3) long-term debt reduced by the sum of cash and cash equivalents and short-term and long-term investments and other receivables. Capital is defined as shareholders’ equity. The “net funded debt to capital ratio” is not a measure of operating performance or liquidity defined by GAAP and may not be comparable to similarly titled measures presented by other companies.

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