Superior Energy Services Inc (NYSE:SPN) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 09:00 am ET

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Superior Energy Services Inc (NYSE:SPN) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, and welcome to the Superior Energy Services Third Quarter 2019 Earnings Conference Call. [Operator Instructions].

I would now like to turn the conference over to Paul Vincent. Please go ahead.

Executive
Paul Vincent

Good morning, and thank you for joining Superior Energy's Third Quarter 2019 Conference Call. With me today are Superior's President and CEO, Dave Dunlap, our CFO, Westy Ballard and our CAO, Jamie Spexarth. During this conference call, management may make forward-looking statements regarding future expectations about the company's business, management's plans for future operations or similar matters. The company's actual results could differ materially due to several important factors including those described in the company's filings with the Securities and Exchange Commission. Management will refer to non-GAAP financial measures during this call. In accordance with Regulation G, the company provides a reconciliation of these measures on its website.

With that, I'll turn the call over to Dave Dunlap.

Executive
David D. Dunlap

Thank you, Paul, and good morning to everyone listening to our call today. We'll begin with a brief review of our third quarter activity. Westy will discuss segment results and I'll offer thoughts on our outlook before turning the call over for Q&A. Before discussing our quarterly results. It is important to address the action taken by the New York Stock Exchange to commence proceedings to delist our company's common stock during the quarter. On September 26, during market hours, we received notice that trading of our stock had been suspended on the New York Stock Exchange and that the exchange intended to commence delisting proceedings as a result of an abnormally low share price for an extremely short period of time.

Since the intraday low on September 27, the first full day of trading after the NYSE took this extraordinary action, our share price increased more than 560% through November 3. We have publicly disclosed that we are appealing this ruling. Additionally, we continue to take measures to regain listing compliance with the exchange within the original six-month cure period we were granted by the exchange when we received a non-compliance letter in August. These measures include improving the results of our operations, divesting non-core assets and conducting a reverse stock split of our shares.

I want to be clear that while there are very understandable concerns about our ability to reduce, repay and refinance our debt due in December 2021, approximately 26 months from now, our primary objective today and every day is to do what we believe is best for our shareholders.

As such, we believe it is in the best interests of our shareholders for Superior Energy to be listed on a major national securities exchange, whether that be the NYSE or one of its competitors. Immediately following the NYSE suspension of trading in our stock, we opened a special one-week purchase window and a number of our directors and executive officers purchase shares. After additional discussions with our Board of Directors on October 1, we announced authorization to repurchase up to $15 million of our common