OREANDA-NEWS. April 30, 2015. Atwood Oceanics, Inc. (NYSE: ATW) ("Company"), announced today that it had earned net income of \\$122.7 million or \\$1.89 per diluted share, on revenues of \\$350.4 million for the quarter ended March 31, 2015 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 and compared to net income of \\$73.3 million or \\$1.13 per diluted share, on revenues of \\$273.1 million for the quarter ended March 31, 2014. For the six months ended March 31, 2015, the Company earned net income of \\$168.9 million or \\$2.60 per diluted share, on revenues of \\$702.1 million compared to net income of \\$156.7 million or \\$2.41 per diluted share, on revenues of \\$557.8 million for the six months ended March 31, 2014.

During the quarter ended March 31, 2015, the Company recorded a loss of approximately \\$5.5 million (\\$5.5 million, net of tax, or \\$0.08 per diluted share) for the pending sale of the Atwood Hunter for recycling. 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. In addition, during the quarter ended December 31, 2014, the Company recorded a loss of approximately \\$8.0 million (\\$7.1 million, net of tax, or \\$0.11 per diluted share) for the sale of the Atwood Southern Cross and a loss of \\$1.8 million on the sale of other equipment.

  For the Three Months Ended
  (Unaudited)
(In thousands, except per share amounts) March 31,
 2015 		  December 31,
 2014 		  March 31,
 2014
Revenues \\$ 350,387     \\$ 351,726     \\$ 273,097  
           
Income before Income Taxes \\$ 134,976     \\$ 55,340     \\$ 97,283  
Provision for Income Taxes (12,307 )   (9,122 )   (23,983 )
Net Income \\$ 122,669     \\$ 46,218     \\$ 73,300  
           
Earnings per Common Share -          
Basic \\$ 1.90     \\$ 0.72     \\$ 1.14  
Diluted \\$ 1.89     \\$ 0.71     \\$ 1.13  

  For the Six Months Ended
  (Unaudited)
(In thousands, except per share amounts) March 31,
 2015 		  March 31,
 2014
Revenues \\$ 702,113     \\$ 557,803  
       
Income before Income Taxes \\$ 190,316     \\$ 191,543  
Provision for Income Taxes (21,429 )   (34,846 )
Net Income \\$ 168,887     \\$ 156,697  
       
Earnings per Common Share -      
Basic \\$ 2.62     \\$ 2.44  
Diluted \\$ 2.60     \\$ 2.41  

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

  Three Months Ended March 31,   Six Months Ended March 31,
(In thousands, except per share amounts) 2015   2014   2015   2014
REVENUES:              
Contract drilling \\$ 338,621     \\$ 260,062     \\$ 675,382     \\$ 533,619  
Revenues related to reimbursable expenses 11,766     13,035     26,731     24,184  
Total revenues 350,387     273,097     702,113     557,803  
               
COSTS AND EXPENSES:              
Contract drilling 131,124     136,966     267,589     260,128  
Reimbursable expenses 8,661     9,188     20,568     17,602  
Depreciation 42,528     37,231     87,103     69,775  
General and administrative 14,737     15,022     32,146     34,844  
Asset impairment -     -     60,777     -  
(Gain) loss on sale of assets 5,529     (32,442 )   15,335     (34,079 )
Other, net -     (1,602 )   -     (1,602 )
  202,579     164,363     483,518     346,668  
               
OPERATING INCOME \\$ 147,808     \\$ 108,734     \\$ 218,595     \\$ 211,135  
               
OTHER INCOME (EXPENSE):              
Interest expense, net of capitalized interest (12,847 )   (11,502 )   (28,351 )   (19,713 )
Interest income 15     51     72     121  
  (12,832 )   (11,451 )   (28,279 )   (19,592 )
               
INCOME  BEFORE INCOME TAXES 134,976     97,283     190,316     191,543  
PROVISION FOR INCOME TAXES 12,307     23,983     21,429     34,846  
NET INCOME \\$ 122,669     \\$ 73,300     \\$ 168,887     \\$ 156,697  
               
EARNINGS PER COMMON SHARE:              
Basic \\$ 1.90     \\$ 1.14     \\$ 2.62     \\$ 2.44  
Diluted \\$ 1.89     \\$ 1.13     \\$ 2.60     \\$ 2.41  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:              
Basic 64,620     64,238     64,513     64,175  
Diluted 65,048     65,031     65,031     65,028  

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

  REVENUES
  Three Months Ended   Six Months Ended
(In millions) March 31,
 2015 		  December 31,
 2014 		  March 31,
 2014 		  March 31,
 2015 		  March 31,
 2014
Ultra-Deepwater \\$ 183     \\$ 167     \\$ 120     \\$ 350     \\$ 207  
Deepwater 82     98     64     181     172  
Jackups 73     72     76     145     155  
Reimbursable 12     15     13     26     24  
  \\$ 350     \\$ 352     \\$ 273     \\$ 702     \\$ 558  

  CONTRACT DRILLING COSTS
  Three Months Ended   Six Months Ended
(In millions) March 31,
 2015 		  December 31,
 2014 		  March 31,
 2014 		  March 31,
 2015 		  March 31,
 2014
Ultra-Deepwater \\$ 68     \\$ 63     \\$ 46     \\$ 131     \\$ 81  
Deepwater 32     41     57     73     105  
Jackups 30     31     33     61     70  
Reimbursable 9     12     9     21     18  
Other 1     1     1     2     4  
  \\$ 140     \\$ 148     \\$ 146     \\$ 288     \\$ 278  

ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value) March 31,
 2015 		  September 30,
 2014
  (Unaudited)    
ASSETS      
Cash \\$ 90,234     \\$ 80,080  
Accounts receivable 226,695     242,684  
Income tax receivable 9,864     6,260  
Inventories of materials and supplies 134,415     132,368  
Prepaid expenses, deferred costs and other current assets 28,069     36,415  
Total current assets 489,277     497,807  
       
Property and equipment, net 4,010,691     3,967,028  
       
Other receivables 11,831     11,831  
Deferred income taxes 166     589  
Deferred costs and other assets 24,317     29,973  
Total assets \\$ 4,536,282     \\$ 4,507,228  
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
Accounts payable \\$ 106,150     \\$ 94,315  
Accrued liabilities 20,194     19,158  
Dividends payable 16,161     16,090  
Short-term debt -     11,885  
Interest payable 8,424     8,099  
Income tax payable 13,924     14,234  
Deferred credits and other liabilities 4,145     3,596  
Total current liabilities 168,998     167,377  
       
Long-term debt 1,606,542     1,742,122  
Deferred income taxes 822     783  
Deferred credits 4,532     4,100  
Other 37,439     37,322  
Total long-term liabilities 1,649,335     1,784,327  
       
Commitments and contingencies      
       
Preferred stock, no par value, 1,000 shares authorized, none outstanding -     -  
Common stock, \\$1.00 par value, 180,000 shares authorized with 64,644 issued and outstanding at March 31, 2015 and 180,000 shares authorized and 64,362 shares issued and outstanding at September 30, 2014 64,644     64,362  
Paid-in capital 208,264     201,464  
Retained earnings 2,438,790     2,286,137  
Accumulated other comprehensive income 6,251     3,561  
Total shareholders' equity 2,717,949     2,555,524  
Total liabilities and shareholders' equity \\$ 4,536,282     \\$ 4,507,228  

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

  Six Months Ended March 31,
(In thousands)   2015     2014
Cash flows from operating activities:      
Net income \\$ 168,887     \\$ 156,697  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation 87,103     69,775  
Amortization 3,761     4,513  
Provision for doubtful accounts and inventory obsolescence 160     1,539  
Deferred income tax benefit (3,512 )   (649 )
Share-based compensation expense 8,119     7,725  
Asset impairment 60,777     -  
(Gain) loss on sale of assets 15,335     (34,079 )
Changes in assets and liabilities:      
Accounts receivable 15,829     (39,559 )
Income tax receivable (3,604 )   (1,543 )
Inventories of materials and supplies (17,110 )   (8,097 )
Prepaid expenses, deferred costs and other current assets 9,789     9,524  
Deferred costs and other assets (357 )   (26,568 )
Accounts payable 2,825     (8,617 )
Accrued liabilities (3,691 )   (1,158 )
Income tax payable (310 )   3,091  
Deferred credits and other liabilities 5,747     34,910  
Net cash provided by operating activities 349,748     167,504  
       
Cash flows from investing activities:      
Capital expenditures (177,130 )   (497,634 )
Proceeds from sale of assets 2,524     57,517  
Net cash used in investing activities (174,606 )   (440,117 )
       
Cash flows from financing activities:      
Proceeds from issuance of long-term debt -     340,000  
Principal payments on long-term debt (135,000 )   (90,000 )
Repayments on short-term debt, net (11,885 )   (8,071 )
Dividends paid (16,163 )   -  
Proceeds from exercise of stock options 1,186     1,651  
Debt issuance costs paid (3,126 )   (102 )
Net cash (used) provided by financing activities (164,988 )   243,478  
Net increase (decrease) in cash and cash equivalents 10,154     (29,135 )
Cash and cash equivalents, at beginning of period 80,080     88,770  
Cash and cash equivalents, at end of period \\$ 90,234     \\$ 59,635  
       
Non-cash activities:      
Increase in accounts payable and accrued liabilities related to capital expenditures \\$ 3,020     \\$ 1,375  

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 12 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."

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Conference Call

The Company has scheduled a conference call and webcast related to its second quarter 2015 results on Thursday, April 30, 2015, at 9:00 a.m. U.S. Central Standard Time. Interested parties are invited to listen to the call by dialing 1-877-876-9177, or internationally 1-785-484-1666, Conference ID - Atwood. 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.