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 February 2, 2016 - 4:36 PM EST
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Atwood Oceanics Announces Fiscal 2016 First Quarter Earnings

Houston, Texas
February 2, 2016

FOR IMMEDIATE RELEASE - EARNINGS

HOUSTON, February 2, 2016 -- Atwood Oceanics, Inc. (NYSE: ATW) ("Company"), announced today that it had earned net income of $39.1 million or $0.60 per diluted share, on revenues of $307.8 million for the quarter ended December 31, 2015, compared to net income of $150.7 million or $2.32 per diluted share on revenues of $363.2 million for the quarter ended September 30, 2015 and compared to net income of $46.2 million or $0.71 per diluted share, on revenues of $351.7 million for the quarter ended December 31, 2014.

During the quarter ended December 31, 2015, the Company recorded a non-cash impairment charge of approximately $64.7 million ($64.7 million, net of tax, or $1.00 per diluted share) related to the Atwood Falcon.  During the quarter ended December 31, 2014, the Company recorded a non-cash impairment charge of approximately $60.8 million ($56.1 million, net of tax, or $0.86 per diluted share) related to the Atwood Hunter. Additionally, during the quarter ended December 31, 2015, we recorded other income of approximately $18 million ($18 million, net of tax, or $0.28 per diluted share) for expected insurance recoveries related to cyclone damage to the Atwood Osprey.

  For the Three Months Ended
  (Unaudited)
(In thousands, except per share amounts) December 31,
 2015
  September 30,
 2015
  December 31,
 2014
Revenues $ 307,819     $ 363,176     $ 351,726  
Income before Income Taxes 50,295     166,115     55,340  
Provision for Income Taxes (11,214 )   (15,421 )   (9,122 )
Net Income $ 39,081     $ 150,694     $ 46,218  
           
Earnings per Common Share -          
Basic $ 0.60     $ 2.33     $ 0.72  
Diluted $ 0.60     $ 2.32     $ 0.71  

ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

  Three Months Ended December 31,
(In thousands, except per share amounts) 2015   2014
REVENUES:      
Contract drilling $ 294,615     $ 336,761  
Revenues related to reimbursable expenses 13,204     14,965  
Total revenues 307,819     351,726  
       
COSTS AND EXPENSES:      
Contract drilling 130,652     136,465  
Reimbursable expenses 8,286     11,907  
Depreciation 42,827     44,575  
General and administrative 15,177     17,409  
Asset impairment 64,724     60,777  
Loss on sale of equipment 77     9,806  
  261,743     280,939  
       
OPERATING INCOME $ 46,076     $ 70,787  
       
OTHER INCOME (EXPENSE):      
Interest expense, net of capitalized interest (13,761 )   (15,504 )
Interest income 4     57  
Other income 17,976     -  
  4,219     (15,447 )
       
INCOME  BEFORE INCOME TAXES 50,295     55,340  
PROVISION FOR INCOME TAXES 11,214     9,122  
NET INCOME $ 39,081     $ 46,218  
       
EARNINGS PER COMMON SHARE:      
Basic $ 0.60     $ 0.72  
Diluted $ 0.60     $ 0.71  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:      
Basic 64,765     64,405  
Diluted 64,921     65,015  

ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS

  REVENUES
  Three Months Ended
(In millions) December 31,
 2015
  September 30,
 2015
  December 31,
 2014
Ultra-Deepwater $ 182     $ 197     $ 167  
Deepwater 72     79     98  
Jackups 41     73     72  
Reimbursable 13     14     15  
  $ 308     $ 363     $ 352  

  DRILLING COSTS
  Three Months Ended
(In millions) December 31,
 2015
  September 30,
 2015
  December 31,
 2014
Ultra-Deepwater $ 61     $ 58     $ 63  
Deepwater 43     25     41  
Jackups 26     35     31  
Reimbursable 8     9     12  
Other 1     -     1  
  $ 139     $ 127     $ 148  

ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value) December 31,
 2015
  September 30,
 2015
  (Unaudited)    
ASSETS      
Cash $ 115,669     $ 113,983  
Accounts receivable, net 249,874     311,514  
Income tax receivable 9,534     8,705  
Inventories of materials and supplies, net 117,703     137,998  
Prepaid expenses, deferred costs and other current assets 24,461     33,735  
Total current assets 517,241     605,935  
       
Property and equipment, net 4,208,091     4,172,132  
       
Other receivables 11,831     11,831  
Deferred income taxes 150     150  
Deferred costs and other assets 11,133     11,285  
Total assets $ 4,748,446     $ 4,801,333  
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
Accounts payable $ 55,313     $ 70,161  
Accrued liabilities 20,528     23,572  
Dividends payable 4,858     16,164  
Interest payable 19,042     7,704  
Income tax payable 13,264     13,906  
Deferred credits and other liabilities 3,284     3,941  
Total current liabilities 116,289     135,448  
       
Long-term debt 1,608,399     1,678,268  
Deferred income taxes 988     1,658  
Deferred credits 309     800  
Other 38,922     37,989  
Total long-term liabilities 1,648,618     1,718,715  
       
Commitments and contingencies      
       
Preferred stock, no par value, 1,000 shares authorized, none outstanding -     -  
Common stock 64,768     64,654  
Paid-in capital 214,754     213,096  
Retained earnings 2,704,219     2,670,148  
Accumulated other comprehensive loss (202 )   (728 )
Total shareholders' equity 2,983,539     2,947,170  
Total liabilities and shareholders' equity $ 4,748,446     $ 4,801,333  

ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

  Three Months Ended December 31,
(In thousands) 2015   2014
Cash flows from operating activities:      
Net income $ 39,081     $ 46,218  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation 42,827     44,575  
Amortization 1,250     2,504  
Provision for doubtful accounts 757     -  
Deferred income tax benefit (714 )   (3,380 )
Share-based compensation expense 2,371     4,024  
Asset impairment 64,724     60,777  
Loss on sale of assets 77     9,806  
Changes in assets and liabilities:      
Accounts receivable 60,883     27,965  
Income tax receivable (829 )   (717 )
Inventories of materials and supplies 1,628     (6,771 )
Prepaid expenses, deferred costs and other current assets 7,462     5,095  
Deferred costs and other assets (1,050 )   62  
Accounts payable (8,220 )   (14,248 )
Accrued liabilities 8,570     14,866  
Income tax payable (642 )   (1,333 )
Deferred credits and other liabilities 1,973     5,263  
Net cash provided by operating activities 220,148     194,706  
       
Cash flows from investing activities:      
Capital expenditures (131,547 )   (149,042 )
Proceeds from sale of assets -     1,348  
Net cash used in investing activities (131,547 )   (147,694 )
       
Cash flows from financing activities:      
Proceeds from issuance of long-term debt 45,000     -  
Principal payments on long-term debt (115,000 )   -  
Repayments on short-term debt, net -     (5,931 )
Dividends paid (16,316 )   -  
Proceeds (payments) related to exercise of stock options (599 )   784  
Debt issuance costs paid -     (142 )
Net cash used by financing activities (86,915 )   (5,289 )
Net increase in cash and cash equivalents 1,686     41,723  
Cash and cash equivalents, at beginning of period 113,983     80,080  
Cash and cash equivalents, at end of period $ 115,669     $ 121,803  
       
Non-cash activities:      
Increase decrease in accrued liabilities relate to capital expenditures $ 10,530     $ (4,525 )
Change in dividends payable 4,858     -  

Atwood Oceanics, Inc. is a leading offshore drilling company engaged in the drilling and completion of exploration and development wells for the global oil and gas industry. The Company currently owns 11 mobile offshore drilling units and is constructing two ultra-deepwater drillships. The Company was founded in 1968 and is headquartered in Houston, Texas. Atwood Oceanics, Inc. common stock is traded on the New York Stock Exchange under the symbol "ATW." For more information about the Company, please visit www.atwd.com.

Conference Call

The Company has scheduled a conference call and webcast related to its first quarter 2016 results on Wednesday, February 3, 2016, at 10:00 A.M EDT. Interested parties are invited to listen to the call by dialing 1-800-894-5910, or internationally 1-785-424-1052, Conference ID - Atwood, Password 46118. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company's Web site.

A replay of the conference call will be available on the Company's Web site following the end of the live call.

Contact: Mark W. Smith
Senior Vice President and Chief Financial Officer
(281) 749-7840





This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Atwood Oceanics, Inc. via Globenewswire

HUG#1983253

Source: Thomson Reuters ONE (February 2, 2016 - 4:36 PM EST)

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