The Baker Hughes US land rig count declined by 49 rigs from the week ending 4 October 2019 through the week ending 27 December 2019. This rig count decline is greater than what the company expected, and the company believes it is impacting the company's industry generally. The industry slowdown will primarily impact the company's drilling products and services segment results for 4Q19 and the company now expects revenue in this segment to decrease by 10% to 15% sequentially lower than initial expectations of a 5% to 10% decline. Additionally, certain completion tools projects, which were anticipated to occur during 4Q19 have shifted to 2020. The company now expects its technical solutions segment revenue to be approximately flat sequentially, which is lower than the company's initial expectations of as much as a 10% increase.
The indicative trends noted above are based on preliminary data and Superior Energy's knowledge of trends in its industry affecting industry participants. Superior Energy is in the process of commencing its closing procedures for the year ended 31 December 2019, and Superior Energy's final audited results may show trends materially different from the ranges and estimates indicated above, including as a result of closing procedures review adjustments, additional analysis of Superior Energy's actual results and other developments that may arise between the date of this press release and the finalisation of Superior Energy's results for fiscal year 2019.
Also during 4Q19, as previously announced, on 10 December 2019, Superior Energy discontinued its hydraulic fracturing operations.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/07012020/superior-energy-services-provides-4q19-activity-update/
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The well was drilled by the ‘Deepsea Stavanger’ drilling rig, about 25 km southwest of the Oseberg field in the North Sea and 150 km west of Bergen.