SOURCE: Pride International

Pride International

February 18, 2010 07:38 ET

Pride International, Inc. Reports Fourth Quarter and Full Year 2009 Financial Results

HOUSTON, TX--(Marketwire - February 18, 2010) - Pride International, Inc. (NYSE: PDE) today reported a loss from continuing operations, net of tax, for the three months ended December 31, 2009 of $23.2 million, or $0.13 per diluted share. Results for the quarter included the previously announced accrual of $56.2 million relating to the possible resolution with the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) of potential liability under the U.S. Foreign Corrupt Practices Act and a tax benefit of $5.1 million resulting from a change in the interpretation of foreign tax law. Excluding these items, the company had income from continuing operations, net of tax, for the three months ended December 31, 2009 of $27.9 million, or $0.16 per diluted share. The fourth quarter 2009 results compared to income from continuing operations, net of tax, for the corresponding three months in 2008 of $172.4 million, or $0.99 per diluted share. Revenues for the fourth quarter of 2009 totaled $316.7 million compared to $490.2 million during the corresponding three months in 2008.

A net loss was reported for the three months ended December 31, 2009 of $32.8 million, or $0.19 per diluted share, including a loss from discontinued operations of $9.6 million, or $0.06 per diluted share. Net income for the three months ended December 31, 2008 totaled $234.7 million, or $1.35 per diluted share, including income from discontinued operations of $62.3 million, or $0.36 per diluted share.

For the year ended December 31, 2009, income from continuing operations, net of tax, totaled $340.3 million, or $1.92 per diluted share, while net income totaled $285.8 million, or $1.61 per diluted share, including a loss from discontinued operations of $54.5 million, or $0.31 per diluted share. For the year ended December 31, 2008, income from continuing operations, net of tax, was $508.7 million, or $2.89 per diluted share. Net income for 2008 was $851.1 million, or $4.83 per diluted share, including income from discontinued operations of $342.4 million, or $1.94 per diluted share. Revenues for the year ended December 31, 2009 totaled $1,594.2 million compared to $1,702.6 million for 2008.

Louis A. Raspino, President and Chief Executive Officer of Pride International, Inc., commented, "Fourth quarter 2009 operating results were in line with our expectations, reflecting the impact of planned fleet out-of-service time, with the continuation of shipyard projects from the third quarter on the Pride North America and Pride South Pacific, and the mobilization of the Sea Explorer to Brazil. These events contributed to lower utilization for the Deepwater and Midwater segments of 75% and 55%, respectively, in the fourth quarter, below the average utilization for both segments during the first nine months of 2009. Our earnings level in the fourth quarter of 2009 is expected to represent a quarterly trough as 2010 benefits from lower planned out-of-service days, especially in our deepwater fleet, and the earnings contribution for a portion of 2010 from the first of our four ultra-deepwater drillships."

Continuing on the financial results, Raspino noted, "The $56.2 million accrual reflected in the fourth quarter reported results is our best estimate of an amount that could be necessary to settle financial obligations to the DOJ and SEC. We voluntarily disclosed this matter to the DOJ and SEC in 2006 and have cooperated with their investigations ever since. Although the timing of a final settlement is difficult to predict, the accrual is a good indication of progress toward this long-awaited outcome."

"The company enters 2010 with excellent contract coverage for our floating rig fleet, including 100% of available days under contract for our eight deepwater rigs, a revenue backlog of $6.9 billion, representing revenues of approximately $1.4 billion in 2010, an improving mix of earnings before interest, taxes, depreciation and amortization (EBITDA) with our Deepwater Segment contributing 69% of total EBITDA in the fourth quarter, an effective tax rate that is expected to remain between 17% to 20% for the foreseeable future and significant balance sheet flexibility supporting prospects for future growth."

In commenting on the company's deepwater drillships under construction, Raspino added, "Our strategic decision in 2005 to focus and expand our presence in the deepwater sector will reach a significant milestone during the first quarter of 2010 with the delivery of the Deep Ocean Ascension, the first of four ultra-deepwater drillships under construction. The rig is expected to exit the shipyard in Korea on time and on budget and begin mobilization to the U.S. Gulf of Mexico where it is scheduled to commence a five-year program with BP during the third quarter of 2010 following field testing and client acceptance. The arrival of the rig will mark the company's entry into the strategically important deepwater Gulf of Mexico. The company's second ultra-deepwater drillship, the Deep Ocean Clarion, is expected to exit the yard in Korea in August 2010, commencing a five-year contract with BP in the U.S. Gulf of Mexico during January 2011."

In closing, Raspino commented on the industry's deepwater sector, stating, "Despite the low level of client tendering activity that has characterized all offshore sectors since late-2008, including deepwater, the company believes the deepwater sector continues to offer the best prospects for growth over the long term. Deepwater geologic success remains strong, with a record number of 25 discoveries announced by operators in water depths of 4,500 feet and greater during 2009. More than 30% of the announced discoveries were made in basins outside of the traditional areas of deepwater exploration and production drilling in the U.S. Gulf of Mexico, Brazil and Angola. As activity and geologic success of these established areas continues to grow, the new basins support the expanding nature and long-term visibility of the deepwater sector. Operator interest is growing as deepwater geologic potential is better understood, supported in part by improved offshore technologies and more accessibility to larger reserves. The combination of strong hydrocarbon potential and increasingly stable crude oil prices, which have remained above $60 per barrel since mid-July 2009 and have averaged just under $75 per barrel since that time, should continue to support client confidence around long-term planning horizons and higher exploration and development spending. However, the potential spending increase is most likely to occur beyond 2010, with several recent tenders and inquiries from clients implying a growing number of projects with commencement dates in 2011 and beyond.

"Given our positive long-term outlook, we will continue to evaluate opportunities to expand our presence in the deepwater sector, both in terms of fleet size and geographic reach, while remaining focused on strong safety, operations and project management performance."

The company maintained a solid balance sheet through 2009 with cash and cash equivalents at December 31, 2009 of $763.1 million, while total debt was $1.2 billion. The debt to total capital ratio was 22%, residing at the low end of the company's target range of 20% to 40%.

Net cash flows from operating activities were $95 million during the fourth quarter of 2009 and totaled $627 million for the year ended December 31, 2009. Capital expenditures during the fourth quarter were $296 million and reached $994 million in 2009, including $198 million and $635 million, respectively, of capital expenditures relating to the company's construction of four ultra-deepwater drillships. Capital expenditures for 2010 are expected to total $1.1 billion, including $793 million associated with the four drillships under construction. At December 31, 2009, approximately $1.4 billion of capital expenditures remained to complete the construction program.

Deepwater Segment

Revenues for the three months ended December 31, 2009 from the company's Deepwater Segment, consisting of two drillships and six semisubmersible rigs, were $178.1 million compared to $191.8 million during the third quarter of 2009. Segment earnings from operations and EBITDA were $47.4 million and $67.3 million, respectively, for the fourth quarter of 2009. The results compared to $71.8 million and $90.8 million, respectively, during the preceding quarter in 2009. A decline in average daily revenues to $322,700 during the fourth quarter of 2009 from $343,200 in the preceding quarter was the primary contributor to the reduced financial performance. This decline resulted in part from lower demobilization revenues associated with the Pride South Pacific following the rig's relocation from Congo during the third quarter of 2009, partially offset by a $16,500 per day rate increase on the drillship Pride Angola in accordance with a cost adjustment feature in the current contract. Out-of-service time on the semisubmersible rig Pride South Pacific, to complete planned maintenance and upgrades ahead of the commencement in January 2010 of a one-year drilling program offshore Equatorial Guinea (at a dayrate of $321,000), contributed to a slight decrease in utilization during the fourth quarter of 2009 to 75% compared to 76% in the preceding quarter of the year. The out-of-service time on the unit was significantly offset by improved utilization on the Pride Portland and Pride Carlos Walter, as well as on the Pride North America, which recommenced operations in the eastern Mediterranean in late November following the completion of maintenance and upgrades that consumed 58 days in the fourth quarter. At January 1, 2010, the company had 100% of the available rig days under contract in 2010, 80% in 2011, 67% in 2012 and 55% in 2013.

The resilience of the global deepwater sector is expected to be tested in 2010 as new uncommitted capacity enters the fleet at a time when many customers remain cautious regarding incremental deepwater rig commitments. As customers continue to reassess exploration and production spending plans in light of uncertain global economic conditions and oil market fundamentals, a total of 22 uncommitted deepwater rigs are expected to enter the industry by the end of 2011, with five of these rigs expected to be available during 2010. Tendering activity has improved slightly since mid-2009, with deepwater rig needs noted in the U.S. Gulf of Mexico and Angola, as well as in Brazil, where up to four units may be immediately required and as many as 28 additional units are needed to address the country's massive subsalt exploration and development program through 2017. Utilization of the fleet is expected to remain at or around 90% during 2010, with the industry's highest specification rigs, or those with the capability to operate in water depths of 7,000 feet and greater, possessing large variable deck loads, dynamic positioning and advanced well construction features, near 100%. The near- to intermediate-term outlook for conventionally moored deepwater semisubmersibles is expected to be increasingly challenging in 2010 as four of the industry's rigs are currently idle worldwide with another 12 units expected to conclude contracts during 2010. The company continues to identify numerous prospects for the deepwater sector in 2011 and beyond, as strong geologic results, an increasing number of multi-year field development programs, global deepwater expansion and improving crude oil fundamentals support an anticipated long-term rise in exploration and production spending by our customers.

Midwater Segment

The company's Midwater Segment, consisting of six semisubmersible rigs, reported revenues of $75.7 million during the fourth quarter of 2009 compared to $98.2 million during the preceding quarter of the year. Earnings from operations and EBITDA were $7.9 million and $19.1 million, respectively, during the fourth quarter compared to $25.7 million and $37.0 million, respectively, during the preceding quarter of the year. The lower financial results were due in part to segment utilization of 55% in the fourth quarter compared to 67% in the preceding quarter of the year. The lower utilization was primarily the result of reduced activity on the Pride South Seas, which was idle in the quarter following the completion of a contract in August 2009 and the Sea Explorer, which completed a mobilization to Brazil, commencing a two year contract on November 14 at a dayrate of $335,000, up from $255,000 per day. Average daily revenues declined to $249,100 during the fourth quarter of 2009 compared to $264,100 in the preceding quarter, as the dayrate increase on the Sea Explorer was more than offset by the absence of deferred revenue received in the third quarter of 2009 by the Pride South Atlantic. At January 1, 2010, the company had 67% of the available rig days under contract in 2010, 65% in 2011, 35% in 2012 and 14% in 2013.

Entering 2010, 14 of the industry's midwater rigs were idle around the world, including the company's semisubmersible rigs Pride South Seas and Pride Venezuela, with another 33 expected to complete contracts during the year. Sector utilization for the industry has declined to approximately 80% and could experience further weakness over the course of the year. Although customer tenders and inquiries have improved since last year, leading to some contract awards, especially in the North Sea, contract durations are short and existing contract backlogs continue to decline. The sector is also experiencing pressure from more capable conventionally moored deepwater rigs, which frequently pursue contract opportunities in shallower water depths during periods of declining activity, resulting in increased competition for client drilling programs.

Independent Leg Jackup Segment

Revenues from the company's seven independent leg jackup rigs were $43.9 million during the fourth quarter compared to $72.8 million during the preceding quarter of the year. Financial results reflected a reduced level of activity, especially for the Pride Tennessee, Pride Wisconsin and Pride Pennsylvania, resulting in utilization for the fourth quarter of 56% compared to 92% during the preceding quarter of the year. All three rigs remain idle, with the Pride Wisconsin cold stacked in the U.S. Gulf of Mexico, the Pride Pennsylvania in a Middle East shipyard awaiting word on a potential drilling assignment later in the year, and the Pride Tennessee in the U.S. Gulf of Mexico while the company evaluates prospects for work in and outside of the U.S. region. The segment reported earnings from operations of $3.1 million during the fourth quarter of 2009, while EBITDA totaled $10.8 million. The results compared to earnings from operations of $32.6 million and EBITDA of $39.9 million during the third quarter of the year. Average daily revenues in the fourth quarter decreased slightly to $122,500 from $123,100 in the preceding quarter, due principally to the idle status of the Pride Tennessee. At January 1, 2010, the company had 26% of the available rig days under contract in 2010, 7% in 2011 and no rig days under contract beyond 2011.

The company remains cautious regarding the near-term outlook for the jackup rig sector, with the combination of new rig supply and growing rig availability in the existing fleet currently exceeding a modest increase in tendering activity. A total of 33 jackup rigs are expected to complete construction programs in 2010, with an additional 17 units in 2011. An estimated 85% of these new rigs are currently uncommitted. In addition, approximately 47% of the active fleet worldwide should complete contracts during the year.

Pride International, Inc., headquartered in Houston, Texas, operates a fleet of 23 rigs, including two deepwater drillships, 12 semisubmersible rigs, seven jackups and two managed deepwater rigs. The company also has four ultra-deepwater drillships under construction. The company's floating rig fleet operates primarily offshore Brazil and Angola, and in 2010, will expand into the U.S. Gulf of Mexico deepwater region.

Pride International, Inc. will host a conference call at 11:00 a.m. Eastern time on Thursday, February 18, 2010 to discuss results for the fourth quarter of 2009, recent events and management's operational and marketing outlook. Individuals who wish to participate in the conference call should dial 913-312-0945 and refer to confirmation code 8401491 approximately five to 10 minutes before the scheduled start of the call. In addition, the conference call will be simulcast through a listen-only broadcast over the Internet and can be accessed by selecting the Investor Relations link at www.prideinternational.com. A telephonic replay of the conference call should be available after 2:00 p.m. Eastern time on February 18 and can be accessed by dialing 719-457-0820 and referring to pass code 8401491. Also, a replay will be available through the Internet and can be accessed by visiting the company's worldwide web address. The replay options will be available for approximately 30 days.

The company has provided adjusted income from continuing operations in order to provide meaningful comparisons between current results and prior operating periods. Management believes that adjusted income from continuing operations included in this release is an appropriate measure of the continuing and normal operations of the company. However, it should be considered in addition to, and not as a substitute, or superior to, income (loss) from continuing operations, net income (loss) or other measures of financial performance prepared in accordance with GAAP. For purposes of the calculation of adjusted income from continuing operations per share for the three months ended December 31, 2009, the weighted average shares outstanding -- diluted was increased by 566,000 shares to a total of 174,917,000 shares. Such additional shares are not included in the weighted average shares outstanding -- diluted prepared on a GAAP basis because their effect is antidilutive.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements.



                         Pride International, Inc.
                  Consolidated Statements of Operations
                  (In millions, except per share amounts)


                                                   Three Months Ended
                                                       December 31,
                                              ----------------------------
                                                  2009          2008(1)
                                              -------------  -------------
                                                             (As Adjusted)
REVENUES
    Revenues excluding reimbursable revenues  $       310.4  $       483.3
    Reimbursable revenues                               6.3            6.9
                                              -------------  -------------
                                                      316.7          490.2
                                              -------------  -------------

COSTS AND EXPENSES
   Operating costs, excluding depreciation
    and amortization                                  212.3          200.8
   Reimbursable costs                                   5.7            5.1
   Depreciation and amortization                       40.7           37.6
   General and administrative, excluding
    depreciation and amortization                      25.2           31.2
   Department of Justice and Securities and
    Exchange Commission fines                          56.2              -
   Loss (gain) on sales of assets, net                  0.1           (0.4)
                                              -------------  -------------
                                                      340.2          274.3
                                              -------------  -------------
EARNINGS (LOSS) FROM OPERATIONS                       (23.5)         215.9

OTHER INCOME (EXPENSE), NET
   Interest expense, net of amounts
    capitalized                                           -           (0.1)
   Refinancing charges                                    -           (1.1)
   Interest income                                      0.4            1.7
   Other income (expense), net                         (0.9)           4.9
                                              -------------  -------------
INCOME (LOSS) FROM CONTINUING OPERATIONS
 BEFORE INCOME TAXES                                  (24.0)         221.3
INCOME TAXES                                            0.8          (48.9)
                                              -------------  -------------
INCOME (LOSS) FROM CONTINUING OPERATIONS, NET
 OF TAX                                               (23.2)         172.4
INCOME (LOSS) FROM DISCONTINUED OPERATIONS,
 NET OF TAX                                            (9.6)          62.3
                                              -------------  -------------
NET INCOME (LOSS)                                     (32.8)         234.7
LESS: INCOME ATTRIBUTABLE TO NONCONTROLLING
 INTERESTS                                                -              -
                                              -------------  -------------
NET INCOME (LOSS) ATTRIBUTABLE TO PRIDE       $       (32.8) $       234.7
                                              =============  =============

BASIC EARNINGS PER SHARE:
   Income (loss) from continuing operations   $       (0.13) $        0.99
   Income (loss) from discontinued operations         (0.06)          0.36
                                              -------------  -------------
     Net income                               $       (0.19) $        1.35
                                              =============  =============
DILUTED EARNINGS PER SHARE:
   Income (loss) from continuing operations   $       (0.13) $        0.99
   Income (loss) from discontinued operations         (0.06)          0.36
                                              -------------  -------------
     Net income                               $       (0.19) $        1.35
                                              =============  =============
SHARES USED IN PER SHARE CALCULATIONS
   Basic                                              174.4          172.8
   Diluted                                            174.4          172.8

(1) Amounts include the retrospective adoption of FSP APB 14-1
    (now codified principally in ASC 470) implemented in the first quarter
    of 2009.




                        Pride International, Inc.
                  Consolidated Statements of Operations
                  (In millions, except per share amounts)


                                          Year Ended December 31,
                               -------------------------------------------
                                   2009          2008(1)        2007(1)
                               -------------  -------------  -------------
                                              (As Adjusted)  (As Adjusted)
REVENUES
    Revenues excluding
     reimbursable revenues     $     1,563.5  $     1,664.7  $     1,294.2
    Reimbursable revenues               30.7           37.9           34.8
                               -------------  -------------  -------------
                                     1,594.2        1,702.6        1,329.0
                               -------------  -------------  -------------

COSTS AND EXPENSES
   Operating costs, excluding
    depreciation and
    amortization                       828.3          766.5          618.6
   Reimbursable costs                   27.3           34.9           30.8
   Depreciation and
    amortization                       159.0          147.3          153.1
   General and administrative,
    excluding depreciation and
    amortization                       110.5          126.7          138.1
   Department of Justice and
    Securities and Exchange
    Commission fines                    56.2              -              -
   Loss (gain) on sales of
    assets, net                         (0.4)           0.1          (29.8)
                               -------------  -------------  -------------
                                     1,180.9        1,075.5          910.8
                               -------------  -------------  -------------
EARNINGS FROM OPERATIONS               413.3          627.1          418.2

OTHER INCOME (EXPENSE), NET
   Interest expense, net of
    amounts capitalized                 (0.1)         (20.0)         (83.1)
   Refinancing charges                     -           (2.3)             -
   Interest income                       3.0           16.8           14.3
   Other income (expense), net          (4.1)          20.6           (2.7)
                               -------------  -------------  -------------
INCOME FROM CONTINUING
 OPERATIONS BEFORE INCOME
 TAXES                                 412.1          642.2          346.7
INCOME TAXES                           (71.8)        (133.5)         (86.9)
                               -------------  -------------  -------------
INCOME FROM CONTINUING
 OPERATIONS, NET OF TAX                340.3          508.7          259.8
INCOME (LOSS) FROM
 DISCONTINUED OPERATIONS, NET
 OF TAX                                (54.5)         342.4          522.0
                               -------------  -------------  -------------
NET INCOME                             285.8          851.1          781.8
LESS: INCOME ATTRIBUTABLE TO
 NONCONTROLLING INTERESTS                  -              -           (3.5)
                               -------------  -------------  -------------
NET INCOME ATTRIBUTABLE TO
 PRIDE                         $       285.8  $       851.1  $       778.3
                               =============  =============  =============

BASIC EARNINGS PER SHARE:
   Income from continuing
    operations                 $        1.93  $        2.95  $        1.54
   Income (loss) from
    discontinued operations            (0.31)          1.99           3.12
                               -------------  -------------  -------------
     Net income                $        1.62  $        4.94  $        4.66
                               =============  =============  =============
DILUTED EARNINGS PER SHARE:
   Income from continuing
    operations                 $        1.92  $        2.89  $        1.51
   Income (loss) from
    discontinued operations            (0.31)          1.94           2.90
                               -------------  -------------  -------------
     Net income                $        1.61  $        4.83  $        4.41
                               =============  =============  =============

SHARES USED IN PER SHARE
 CALCULATIONS
   Basic                               173.7          170.6          165.6
   Diluted                             174.0          175.2          178.1

(1) Amounts include the retrospective adoption of FSP APB 14-1 (now
    codified principally in ASC 470) implemented in the first quarter of
    2009.




                        Pride International, Inc.
                        Consolidated Balance Sheets
                              (In millions)


                                                      December 31,
                                              ----------------------------
                                                  2009          2008(1)
                                              -------------  -------------
                    ASSETS                                   (As Adjusted)
CURRENT ASSETS:
  Cash and cash equivalents                   $       763.1  $       712.5
  Trade receivables, net                              256.2          438.8
  Deferred income taxes                                21.6           90.5
  Prepaid expenses and other current assets           123.3          177.4
  Assets held for sale                                    -            1.4
                                              -------------  -------------
     Total current assets                           1,164.2        1,420.6

PROPERTY AND EQUIPMENT                              6,091.0        6,067.8
  Less: accumulated depreciation                    1,200.7        1,474.9
                                              -------------  -------------
     Property and equipment, net                    4,890.3        4,592.9
INTANGIBLE AND OTHER ASSETS                            88.4           55.5
                                              -------------  -------------
     Total assets                             $     6,142.9  $     6,069.0
                                              =============  =============
    LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Current portion of long-term debt           $        30.3  $        30.3
  Accounts payable                                    132.4          137.3
  Accrued expenses and other current
   liabilities                                        339.7          403.4
                                              -------------  -------------
     Total current liabilities                        502.4          571.0

OTHER LONG-TERM LIABILITIES                           118.3          146.2

LONG-TERM DEBT, NET OF CURRENT PORTION              1,161.7          692.9

DEFERRED INCOME TAXES                                 102.7          258.9

STOCKHOLDERS' EQUITY:
  Preferred stock                                         -              -
  Common stock                                          1.8            1.7
  Paid-in capital                                   2,058.7        2,002.6
  Treasury stock, at cost                             (16.4)         (13.3)
  Retained earnings                                 2,210.8        2,408.2
  Accumulated other comprehensive income                2.9            0.8
                                              -------------  -------------
     Total stockholders' equity                     4,257.8        4,400.0
                                              -------------  -------------
       Total liabilities and stockholders'
        equity                                $     6,142.9  $     6,069.0
                                              =============  =============


(1) Amounts include the retrospective adoption of FSP APB 14-1 (now
    codified principally in ASC 470) implemented in the first quarter of
    2009.




                        Pride International, Inc.
                  Consolidated Statements of Cash Flows
                              (In millions)


                                          Year Ended December 31,
                               -------------------------------------------
                                   2009          2008(1)        2007(1)
                               -------------  -------------  -------------
CASH FLOWS FROM (USED IN)                     (As Adjusted)  (As Adjusted)
 OPERATING ACTIVITIES:
Net income                     $       285.8  $       851.1  $       778.3
Adjustments to reconcile net
 income to net cash from
 operating activities:
    Gain on sale of Eastern
     Hemisphere land rigs               (5.4)          (6.2)             -
    Gain on sale of
     tender-assist rigs                    -         (121.4)             -
    Gain on sale of Latin
     America and E&P Services
     segments                              -          (56.8)        (268.6)
    Gain on sale of equity
     method investment                     -          (11.4)             -
    Depreciation and
     amortization                      196.5          210.8          269.7
    Amortization and
     write-offs of deferred
     financing costs                     2.4            5.2            4.0
    Amortization of deferred
     contract liabilities              (53.8)         (59.0)         (57.3)
    Impairment charges                  33.4              -              -
    Gain on sales of assets,
     net                                (0.4)         (24.0)         (31.5)
    Deferred income taxes              (13.2)          78.1           49.8
    Excess tax benefits from
     stock-based compensation           (1.5)          (7.7)          (7.2)
    Stock-based compensation            35.9           24.8           23.0
    Other, net                           0.9            2.2           16.5
Net effect of changes in
 operating accounts                    142.8          (26.9)        (152.0)
Change in deferred gain on
 asset sales and retirements             4.9          (12.3)             -
Increase (decrease) in
 deferred revenue                       13.8           (8.7)          35.3
Decrease (increase) in
 deferred expense                      (15.0)           6.3           25.0
                               -------------  -------------  -------------
NET CASH FLOWS FROM (USED IN)
 OPERATING ACTIVITIES                  627.1          844.1          685.0
CASH FLOWS FROM (USED IN)
 INVESTING ACTIVITIES:
    Purchases of property and
     equipment                        (994.4)        (984.0)        (656.4)
    Reduction of cash from
     spin-off of Seahawk               (82.4)             -              -
    Purchase of net assets of
     acquired entities,
     including acquisition
     costs, less cash acquired             -              -          (45.0)
    Proceeds from dispositions
     of property and equipment           7.4           65.8           53.4
    Proceeds from the sale of
     Eastern Hemisphere land
     rigs, net                           9.6           84.9              -
    Proceeds from sale of
     tender-assist rigs, net               -          210.8              -
    Proceeds from sale of
     equity method investment              -           15.0              -
    Proceeds from disposition
     of Latin America Land and
     E&P Services segments,
     net of cash disposed                  -              -          947.1
    Proceeds from insurance                -           25.0              -
                               -------------  -------------  -------------
NET CASH FLOWS FROM (USED IN)
 INVESTING ACTIVITIES               (1,059.8)        (582.5)         299.1
CASH FLOWS FROM (USED IN)
 FINANCING ACTIVITIES:
    Repayments of borrowings           (30.3)        (537.2)        (599.5)
    Proceeds from debt
     borrowings                        498.2           68.0          403.0
    Debt finance costs                  (6.2)          (2.7)             -
    Decrease in restricted
     cash                                  -              -            1.8
    Net proceeds from employee
     stock transactions                 20.1           24.7           29.7
    Excess tax benefits from
     stock-based compensation            1.5            7.7            7.2
                               -------------  -------------  -------------
NET CASH FLOWS FROM (USED IN)
 FINANCING ACTIVITIES                  483.3         (439.5)        (157.8)
Increase (decrease) in cash
 and cash equivalents                   50.6         (177.9)         826.3
CASH AND CASH EQUIVALENTS,
 BEGINNING OF PERIOD                   712.5          890.4           64.1
                               -------------  -------------  -------------
CASH AND CASH EQUIVALENTS, END
 OF PERIOD                     $       763.1  $       712.5  $       890.4
                               =============  =============  =============

(1) Amounts include the retrospective adoption of FSP APB 14-1 (now
    codified principally in ASC 470) implemented in the first quarter of
    2009.




                        Pride International, Inc.
            Quarterly Continuing Operating Results by Segment
                              (In millions)


                                           Three Months Ended
                               -------------------------------------------
                               December 31,   September 30,  December 31,
                                   2009           2009           2008
                               -------------  -------------  -------------
Deepwater revenues:
  Revenues excluding
   reimbursables               $       176.0  $       189.9  $       236.9
  Reimbursable revenues                  2.1            1.9            1.1
                               -------------  -------------  -------------
Total Deepwater revenues               178.1          191.8          238.0

Midwater revenues:
  Revenues excluding
   reimbursables                        74.0           96.8          142.5
  Reimbursable revenues                  1.7            1.4            2.6
                               -------------  -------------  -------------
Total Midwater revenues                 75.7           98.2          145.1

Independent Leg Jackup
 revenues:
  Revenues excluding
   reimbursables                        43.2           72.6           81.5
  Reimbursable revenues                  0.7            0.2            1.0
                               -------------  -------------  -------------
Total Independent Leg Jackup
 revenues                               43.9           72.8           82.5

Other                                   17.4           21.7           24.5
Corporate                                1.6            1.6            0.1
                               -------------  -------------  -------------
Total revenues                 $       316.7  $       386.1  $       490.2
                               =============  =============  =============

Earnings (loss) from
 continuing operations:
Deepwater                      $        47.4  $        71.8  $       135.1
Midwater                                 7.9           25.7           70.9
Independent Leg Jackups                  3.1           32.6           42.5
Other                                    0.9            1.6            0.9
Corporate                              (82.8)         (31.6)         (33.5)
                               -------------  -------------  -------------
Total                          $       (23.5) $       100.1  $       215.9
                               =============  =============  =============




                        Pride International, Inc.
              Annual Continuing Operating Results by Segment
                              (In millions)


                                               Year Ended December 31,
                                           -------------------------------
                                             2009       2008       2007
                                           ---------  ---------  ---------
Deepwater revenues:
  Revenues excluding reimbursables         $   810.3  $   874.6  $   636.5
  Reimbursable revenues                         12.8        7.6        7.3
                                           ---------  ---------  ---------
Total Deepwater revenues                       823.1      882.2      643.8

Midwater revenues:
  Revenues excluding reimbursables             412.9      419.5      329.5
  Reimbursable revenues                          6.5        6.0        5.0
                                           ---------  ---------  ---------
Total Midwater revenues                        419.4      425.5      334.5

Independent Leg Jackup revenues:
  Revenues excluding reimbursables             264.0      273.9      220.4
  Reimbursable revenues                          1.3        1.3        1.4
                                           ---------  ---------  ---------
Total Independent Leg Jackup revenues          265.3      275.2      221.8

Other                                           83.0      119.2      127.9
Corporate                                        3.4        0.5        1.0
                                           ---------  ---------  ---------
Total revenues                             $ 1,594.2  $ 1,702.6  $ 1,329.0
                                           =========  =========  =========

Earnings (loss) from continuing
 operations:
Deepwater                                  $   348.3  $   454.7  $   267.4
Midwater                                       129.0      163.6      141.4
Independent Leg Jackups                        105.4      133.2       92.5
Other                                            4.8        7.8       59.3
Corporate                                     (174.2)    (132.2)    (142.4)
                                           ---------  ---------  ---------
Total                                      $   413.3  $   627.1  $   418.2
                                           =========  =========  =========




                        Pride International, Inc.
          Quarterly Selected Offshore Drilling Services Metrics


                      Q4 2009             Q3 2009             Q4 2008
                ------------------- ------------------- -------------------
                Average             Average             Average
                  Daily               Daily               Daily
                Revenues  Utiliza-  Revenues  Utiliza-  Revenues  Utiliza-
                  (1)     tion(2)     (1)     tion(2)     (1)     tion(2)
                --------- --------  --------- --------  --------- --------
Deepwater       $ 322,700       75% $ 343,200       76% $ 331,300       97%
Midwater        $ 249,100       55% $ 264,100       67% $ 279,500       94%
Jackups -
 Independent
 Leg            $ 122,500       56% $ 123,100       92% $ 130,200       98%

(1) Average daily revenues are based on total revenues for each type of rig
    divided by actual days worked by all rigs of that type. Average daily
    revenues will differ from average contract dayrate due to billing
    adjustments for any non-productive time, mobilization fees,
    demobilization fees, performance bonuses and charges to the customer
    for ancillary services.

(2) Utilization is calculated as the total days worked divided by the total
    days in the period.




                        Pride International, Inc.
            Annual Selected Offshore Drilling Services Metrics


                                  Year Ended December 31,
                       2009                2008                2007
                ------------------- ------------------- -------------------
                Average             Average             Average
                  Daily               Daily               Daily
                Revenues  Utiliza-  Revenues  Utiliza-  Revenues  Utiliza-
                  (1)     tion(2)     (1)     tion(2)     (1)     tion(2)
                --------- --------  --------- --------  --------- --------
Deepwater       $ 335,100       84% $ 310,100       97% $ 230,800       96%
Midwater        $ 258,700       74% $ 249,400       78% $ 192,200       79%
Jackups -
 Independent
 Leg            $ 123,000       84% $ 121,100       89% $ 100,600       86%

(1) Average daily revenues are based on total revenues for each type of rig
    divided by actual days worked by all rigs of that type. Average daily
    revenues will differ from average contract dayrate due to billing
    adjustments for any non-productive time, mobilization fees,
    demobilization fees, performance bonuses and charges to the customer
    for ancillary services.

(2) Utilization is calculated as the total days worked divided by the total
    days in the period.




                        Pride International, Inc.
  Reconciliation of Earnings before Interest, Taxes and Depreciation and
                          Amortization (EBITDA)
                              (In millions)


We believe that this non-GAAP financial measure for EBITDA is meaningful
information that our management considers when making investment decisions.
We believe it also provides supplemental information regarding our
operating results with respect to both the performance of our fundamental
business activities and our ability to meet our future debt service,
capital expenditures and working capital requirements. We also believe
investors and analysts commonly use EBITDA as a widely accepted financial
indicator to analyze and compare companies on the basis of operating
performance that have different financing and capital structures and tax
rates. EBITDA is not a substitute for the U.S. GAAP measures of earnings or
of cash flow and is not necessarily a measure of the company's ability to
fund its cash needs.

                                                 -------------------------
                                                 Q4 2009  Q3 2009  Q4 2008
                                                 -------  -------  -------
Deepwater
Income (loss) from continuing operations         $  47.4  $  71.8  $ 135.1
Plus: Total interest expense, net                      -        -        -
Plus: Income tax provision                             -        -        -
Plus: Depreciation and amortization                 19.9     19.0     18.4
                                                 -------  -------  -------
EBITDA                                              67.3     90.8    153.5

Midwater
Income (loss) from continuing operations             7.9     25.7     70.9
Plus: Total interest expense, net                      -        -        -
Plus: Income tax provision                             -        -        -
Plus: Depreciation and amortization                 11.2     11.3     11.0
                                                 -------  -------  -------
EBITDA                                              19.1     37.0     81.9

Independent Leg Jackups
Income (loss) from continuing operations             3.1     32.6     42.5
Plus: Total interest expense, net                      -        -        -
Plus: Income tax provision                             -        -        -
Plus: Depreciation and amortization                  7.7      7.3      6.9
                                                 -------  -------  -------
EBITDA                                              10.8     39.9     49.4

Other & Corporate
Income (loss) from continuing operations, net of
 tax                                               (81.6)   (50.2)   (76.1)
Plus: Total interest expense, net                   (0.4)    (0.6)    (1.6)
Plus: Income tax provision                          (0.8)    18.1     48.9
Plus: Depreciation and amortization                  1.9      1.9      1.3
                                                 -------  -------  -------
EBITDA                                             (80.9)   (30.8)   (27.5)

Total Pride International Inc.
Income (loss) from continuing operations, net of
 tax                                               (23.2)    79.9    172.4
Plus: Total interest expense, net                   (0.4)    (0.6)    (1.6)
Plus: Income tax provision                          (0.8)    18.1     48.9
Plus: Depreciation and amortization                 40.7     39.5     37.6
                                                 -------  -------  -------
EBITDA                                           $  16.3  $ 136.9  $ 257.3
                                                 =======  =======  =======

Contact Information

  • Analyst Contact:
    Jeffrey L. Chastain
    (713) 917-2020

    Media Contact:
    Kate Perez
    (713) 917-2343