OREANDA-NEWS. November 11, 2015. Atwood Oceanics, Inc. (NYSE: ATW) ("Company"), announced today that it had earned 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 compared to net income of \\$113.0 million or \\$1.73 per diluted share on revenues of \\$330.6 million for the quarter ended June 30, 2015 and compared to net income of \\$112.2 million or \\$1.72 per diluted share, on revenues of \\$323.4 million for the quarter ended September 30, 2014.

 For the twelve months ended September 30, 2015, the Company earned net income of \\$432.6 million or \\$6.65 per diluted share, on revenues of \\$1.40 billion compared to net income of \\$340.8 million or \\$5.24 per diluted share, on revenues of \\$1.17 billion for the twelve months ended September 30, 2014. During the twelve months ended September 30, 2015, 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, the Company recorded a loss of approximately \\$5.5 million (\\$5.5 million, net of tax, or \\$0.08 per diluted share) for the sale of the Atwood Hunter and 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.

  For the Three Months Ended
  (Unaudited)
(In thousands, except per share amounts) September 30,
 2015 		  June 30,
 2015 		  September 30,
 2014
Revenues \\$ 363,176     \\$ 330,562     \\$ 323,373  
           
Income before Income Taxes \\$ 166,115     \\$ 122,539     \\$ 126,385  
Provision for Income Taxes (15,421 )   (9,547 )   (14,185 )
Net Income \\$ 150,694     \\$ 112,992     \\$ 112,200  
           
Earnings per Common Share -          
Basic \\$ 2.33     \\$ 1.75     \\$ 1.74  
Diluted \\$ 2.32     \\$ 1.73     \\$ 1.72  

  For the Twelve Months Ended
  (Unaudited)
(In thousands, except per share amounts) September 30,
 2015 		  September 30,
 2014
Revenues \\$ 1,395,851     \\$ 1,173,953  
       
Income before Income Taxes \\$ 478,970     \\$ 397,293  
Provision for Income Taxes (46,397 )   (56,471 )
Net Income \\$ 432,573     \\$ 340,822  
       
Earnings per Common Share -      
Basic \\$ 6.70     \\$ 5.31  
Diluted \\$ 6.65     \\$ 5.24  

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

  Three Months Ended September 30,   Twelve Months Ended September 30,
(In thousands, except per share amounts) 2015   2014   2015   2014
REVENUES:              
Contract drilling \\$ 349,139     \\$ 304,853     \\$ 1,342,052     \\$ 1,103,397  
Revenues related to reimbursable expenses 14,037     18,520     53,799     70,556  
Total revenues 363,176     323,373     1,395,851     1,173,953  
               
COSTS AND EXPENSES:              
Contract drilling 118,574     117,413     520,421     506,128  
Reimbursable expenses 9,110     15,130     38,744     56,225  
Depreciation 42,310     39,982     171,947     147,358  
General and administrative 14,610     13,773     57,229     61,461  
Asset impairment -     -     60,777     -  
(Gain) loss on sale of assets (59 )   (67 )   15,303     (34,139 )
Other, net -     (49 )   -     (1,864 )
  184,545     186,182     864,421     735,169  
               
OPERATING INCOME \\$ 178,631     \\$ 137,191     \\$ 531,430     \\$ 438,784  
               
OTHER INCOME (EXPENSE):              
Interest expense, net of capitalized interest (12,523 )   (10,871 )   (52,551 )   (41,803 )
Interest income 7     65     91     312  
  (12,516 )   (10,806 )   (52,460 )   (41,491 )
               
INCOME  BEFORE INCOME TAXES 166,115     126,385     478,970     397,293  
PROVISION FOR INCOME TAXES 15,421     14,185     46,397     56,471  
NET INCOME \\$ 150,694     \\$ 112,200     \\$ 432,573     \\$ 340,822  
               
EARNINGS PER COMMON SHARE:              
Basic \\$ 2.33     \\$ 1.74     \\$ 6.70     \\$ 5.31  
Diluted \\$ 2.32     \\$ 1.72     \\$ 6.65     \\$ 5.24  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:              
Basic 64,654     64,352     64,581     64,240  
Diluted 64,932     65,229     65,030     65,074  

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

  REVENUES
  Three Months Ended   Twelve Months Ended
(In millions) September 30,
 2015 		  June 30,
 2015 		  September 30,
 2014 		  September 30,
 2015 		  September 30,
 2014
Ultra-Deepwater \\$ 197     \\$ 174     \\$ 137     \\$ 721     \\$ 462  
Deepwater 79     77     92     336     333  
Jackups 73     67     76     285     308  
Reimbursable 14     13     18     54     71  
  \\$ 363     \\$ 331     \\$ 323     \\$ 1,396     \\$ 1,174  

  DRILLING COSTS
  Three Months Ended   Twelve Months Ended
(In millions) September 30,
 2015 		  June 30,
 2015 		  September 30,
 2014 		  September 30,
 2015 		  September 30,
 2014
Ultra-Deepwater \\$ 58     \\$ 75     \\$ 42     \\$ 264     \\$ 167  
Deepwater 25     29     43     127     201  
Jackups 35     29     30     126     132  
Reimbursable 9     9     15     39     56  
Other -     1     3     3     6  
  \\$ 127     \\$ 143     \\$ 133     \\$ 559     \\$ 562  

ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value) September 30,
 2015 		  September 30,
 2014
  (Unaudited)    
ASSETS      
Cash \\$ 113,983     \\$ 80,080  
Accounts receivable 311,514     242,684  
Income tax receivable 8,705     6,260  
Inventories of materials and supplies 137,998     132,368  
Prepaid expenses, deferred costs and other current assets 35,475     36,415  
Total current assets 607,675     497,807  
       
Property and equipment, net 4,172,132     3,967,028  
       
Other receivables 11,831     11,831  
Deferred income taxes 150     589  
Deferred costs and other assets 17,223     29,973  
Total assets \\$ 4,809,011     \\$ 4,507,228  
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
Accounts payable \\$ 70,161     \\$ 94,315  
Accrued liabilities 23,572     19,158  
Dividends payable 16,164     16,090  
Short-term debt -     11,885  
Interest payable 7,704     8,099  
Income tax payable 13,906     14,234  
Deferred credits and other liabilities 3,941     3,596  
Total current liabilities 135,448     167,377  
       
Long-term debt 1,685,946     1,742,122  
Deferred income taxes 1,658     783  
Deferred credits 800     4,100  
Other 37,989     37,322  
Total long-term liabilities 1,726,393     1,784,327  
       
Commitments and contingencies      
       
Preferred stock -     -  
Common stock 64,654     64,362  
Paid-in capital 213,096     201,464  
Retained earnings 2,670,148     2,286,137  
Accumulated other comprehensive income (728 )   3,561  
Total shareholders' equity 2,947,170     2,555,524  
Total liabilities and shareholders' equity \\$ 4,809,011     \\$ 4,507,228  

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

  Twelve Months Ended September 30,
(In thousands) 2015   2014
Cash flows from operating activities:      
Net income \\$ 432,573     \\$ 340,822  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation 171,947     147,358  
Amortization 6,299     8,634  
Provision for doubtful accounts and inventory obsolescence 4,286     2,826  
Deferred income tax benefit (2,747 )   (1,270 )
Share-based compensation expense 12,828     14,691  
Asset impairment 60,777     -  
(Gain) loss on sale of assets 15,303     (34,139 )
Changes in assets and liabilities:      
Accounts receivable (72,575 )   (43,965 )
Income tax receivable (2,445 )   (1,588 )
Inventories of materials and supplies (19,068 )   (17,220 )
Prepaid expenses, deferred costs and other current assets (3,655 )   15,463  
Deferred costs and other assets 5,917     (11,682 )
Accounts payable (11,967 )   1,932  
Accrued liabilities 1,637     1,647  
Income tax payable (328 )   (2,320 )
Deferred credits and other liabilities 5,505     21,431  
Net cash provided by operating activities 604,287     442,620  
       
Cash flows from investing activities:      
Capital expenditures (448,019 )   (975,731 )
Net proceeds from sale of assets (4,402 )   61,516  
Net cash used in investing activities (452,421 )   (914,215 )
       
Cash flows from financing activities:      
Borrowings from credit facilities 225,000     700,000  
Repayments on credit facilities (280,000 )   (220,000 )
Repayments on short-term debt, net (11,885 )   (13,979 )
Dividends paid (48,562 )   -  
Proceeds from exercise of stock options 1,064     3,688  
Debt issuance costs paid (3,580 )   (6,804 )
Net cash (used) provided by financing activities (117,963 )   462,905  
Net increase (decrease) in cash and cash equivalents 33,903     (8,690 )
Cash and cash equivalents, at beginning of period 80,080     88,770  
Cash and cash equivalents, at end of period \\$ 113,983     \\$ 80,080  

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."

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