Superior Well Services 3Q profit rises 28 percent

NEW YORK - Shares Superior Well Services Inc. rose Tuesday after the oil field services company said increased drilling activity drove up profit 28 percent in the third quarter, beating analyst estimates.

The company, based in Indiana, Pa., said net income rose to $14.9 million, or 64 cents per share, compared with $11.6 million, or 50 cents a share, in the year-earlier period. Analysts polled by Thomson Reuters on average were expecting earnings of 48 cents per share.

Revenue totaled $146 million, up 55 percent from $94.3 million the previous year.

The company said EBITDA — or earnings before interest, tax, depreciation and amortization — climbed 39 percent from a year earlier to $35.6 million.

Shares of Superior Well Services rose $2.05, or 13 percent, to $17.97 in afternoon trading.

"Our third-quarter results reflect an improved market environment, as operators increased their drilling activity, which in turn increased demand for our high-quality well completion services," said company Chief Executive David Wallace.

Wallace said Superior's service centers are strategically positioned in the country's most active resource regions.

"Activity in these plays is expected to remain strong despite uncertainty related to commodity price forecasts and the credit markets," he said.

After the earnings release, KeyBanc Capital Markets analyst Jack Aydin issued a note affirming his "hold" rating for the company.

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