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Superior Energy Services Posts Record Second Quarter 2007 Results

Diluted EPS Increases 77% from the Second Quarter of 2006 as 50% of Revenue Derived from Non-Gulf of Mexico Markets

HARVEY, La., July 30 /PRNewswire-FirstCall/ -- Superior Energy Services, Inc. (NYSE: SPN) today announced record net income of $70.1 million and diluted earnings per share of $0.85 on revenues of $396.8 million, as compared to net income of $38.7 million, or $0.48 diluted earnings per share on revenues of $261.8 million for the second quarter of 2006. The results also compare favorably to the first quarter of 2007, in which net income was $64.0 million and diluted earnings per share was $0.78, on revenues of $362.9 million.

Factors impacting the quarter as compared to the most recent quarter include the following:

    *  Well Intervention revenues increased 8% from the first quarter of 2007
       primarily due to increased hydraulic workover and snubbing activity as
       well as higher coiled tubing, mechanical wireline and electric line
       revenues.
    *  Rental Tool revenues increased 7% from the first quarter of 2007,
       largely due to increased rentals of stabilizers, drill collars and
       on-site accommodations.
    *  Marine revenues decreased 2% from the first quarter of 2007 due to
       lower utilization for some of the Company's larger liftboats as a
       result of increased shipyard days.
    *  Oil and Gas revenues increased 30% from the first quarter of 2007 due
       mainly to higher oil and gas production.
    *  Revenues from non-Gulf of Mexico market areas were approximately
       $199 million, or 50% of total revenue, as compared to approximately
       $175 million, or 48% of total revenue in the first quarter of 2007 and
       approximately $100 million, or 38% of total revenue in the second
       quarter of 2006.

Terence Hall, Chairman and CEO of Superior, stated, "The diversity of our products and services combined with our expanding geographical exposure continue to be the drivers for our strong earnings growth these past several quarters. While activity increased in all of our geographic markets, the second quarter represents the first time in company history that at least 50% of our revenues were derived from market areas outside the Gulf of Mexico. Our operating units are committed to driving shareholder value by executing upon this integrated growth strategy."

For the six months ended June 30, 2007, revenues were $759.7 million and net income was $134.1 million or $1.63 diluted earnings per share, as compared to revenues of $484.2 million and net income of $70.9 million or $0.87 diluted earnings per share for the six months ended June 30, 2006.

Well Intervention Group Segment

Second quarter revenues for the Well Intervention Group were a record $190.5 million, an 8% increase from the first quarter of 2007 and a 71% increase from the second quarter of 2006. Income from operations was $42.1 million, or 22% of segment revenue as compared to $46.1 million, or 26% of segment revenue, in the first quarter of 2007. The primary drivers for the sequential growth in revenues were higher international activity for hydraulic workover and snubbing services and increased domestic land activity for coiled tubing, mechanical wireline and electric line services. Gross profit and operating margins sequentially were adversely impacted by changes in business mix due to the completion of certain well control and engineering projects.

Rental Tools Segment

Revenues for the Rental Tools Segment were a record $123.7 million, 7% higher than the first quarter of 2007 and 43% higher than the second quarter of 2006. Income from operations was $46.6 million, or 38% of segment revenue, up from $45.1 million, or 39% of segment revenue in the first quarter of 2007. Demand increased for rentals of stabilizers, drill collars, connecting iron and on-site accommodations. The operating margin was slightly lower due to business mix.

Marine Segment

Superior's marine revenues were $35.2 million, a 2% decrease from the first quarter of 2007 and a 4% increase from the second quarter of 2006. Income from operations was $15.2 million, or 43% of segment revenue, down from $16.5 million, or 46% of segment revenue in the first quarter of 2007. Average daily revenue in the second quarter was approximately $386,000, inclusive of subsistence revenue, as compared to $399,000 per day in the first quarter of 2007. Average fleet utilization was 77% as compared to 74% in the first quarter of 2007 and 83% in the second quarter of 2006. However, utilization for the 245-ft. class and 250-ft. class liftboats was lower due to additional shipyard days for inspections and maintenance.



           Liftboat Average Dayrates and Utilization by Class Size
                       Three Months Ended June 30, 2007
                                  ($ actual)



                                                  Average
                   Class          Liftboats       Dayrate      Utilization
                145'-155'                11       $10,469            74.3%
                160'-175'                 6        14,482            70.5%
                200'                      5        20,166            91.7%
                230'-245'                 3        27,589            85.0%
                250'                      2        39,463            64.8%



    Oil and Gas Segment

Oil and gas revenues were $48.2 million, a 30% increase from first quarter 2007 levels and a 43% increase over the second quarter of 2006. Income from operations was $11.9 million, or 25% of segment revenue, up from $5.1 million, or 14% of segment revenue, in the first quarter of 2007. Second quarter production was approximately 875,000 barrels of oil equivalent (boe), or about 9,600 boe per day, up from approximately 711,000 boe, or 7,900 boe per day in the first quarter of 2007. Production increased during the quarter due to a successful sidetrack drilling operation.

Conference Call Information

The Company will host a conference call at 10 a.m. Central Time on Tuesday, July 31, 2007. The call can be accessed from Superior's website at http://www.superiorenergy.com, or by telephone at 303-262-2175. For those who cannot listen to the live call, a telephonic replay will be available through Tuesday, August 7, 2007 and may be accessed by calling 303-590-3000 and using the pass code 11093868#. An archive of the webcast will be available after the call for a period of 60 days on http://www.superiorenergy.com.

Superior Energy Services, Inc. serves the drilling-related needs of oil and gas companies primarily through its rental tools segment and the production-related needs of oil and gas companies through its well intervention, rental tools and marine segments. The Company uses its production-related assets to enhance, maintain and extend existing production and, at the end of a property's economic life, plug and abandon wells and decommission platforms and structures. Superior also owns and operates mature oil and gas properties in the Gulf of Mexico.

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which involve known and unknown risks, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: volatility of the oil and gas industry, including the level of exploration, production and development activity; risks associated with the Company's rapid growth; changes in competitive factors and other material factors that are described from time to time in the Company's filings with the Securities and Exchange Commission. Actual events, circumstances, effects and results may be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Consequently, the forward-looking statements contained herein should not be regarded as representations by Superior or any other person that the projected outcomes can or will be achieved.



               SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
                    Consolidated Statements of Operations
              Three and Six Months Ended June 30, 2007 and 2006
              (in thousands, except earnings per share amounts)
                                 (unaudited)

                                     Three Months Ended      Six Months Ended
                                          June 30,              June 30,
                                       2007      2006        2007      2006


    Oilfield service and rental
     revenues                        $348,589  $228,134    $674,484  $435,132
    Oil and gas revenues               48,164    33,625      85,193    49,096
      Total revenues                  396,753   261,759     759,677   484,228

    Cost of oilfield services and
     rentals                          162,973   101,286     305,402   194,541
    Cost of oil and gas sales          18,833    18,702      36,891    32,907
      Total cost of services,
       rentals and sales              181,806   119,988     342,293   227,448

    Depreciation, depletion,
     amortization and accretion        45,242    25,727      84,086    48,642
    General and administrative
     expenses                          53,824    40,088     104,683    77,739

    Income from operations            115,881    75,956     228,615   130,399

    Other income (expense):
      Interest expense, net            (8,463)   (5,556)    (16,741)  (10,400)
      Interest income                     929     1,559       1,508     2,222
      Loss on early extinguishment of
       debt                                 -   (12,596)          -   (12,596)
      Earnings (losses) from equity-
       method investments               1,164     1,148      (3,842)    1,148

    Income before income taxes        109,511    60,511     209,540   110,773

    Income taxes                       39,424    21,784      75,434    39,878

    Net income                        $70,087   $38,727    $134,106   $70,895


    Basic earnings per share            $0.86     $0.49       $1.66     $0.89

    Diluted earnings per share          $0.85     $0.48       $1.63     $0.87

    Weighted average common shares
     used in computing earnings per
     share:
        Basic                          81,047    79,798      80,841    79,719
        Diluted                        82,562    81,324      82,379    81,177



               SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                     JUNE 30, 2007 AND DECEMBER 31, 2006
                                (in thousands)

                                             6/30/2007         12/31/2006
                                            (unaudited)         (audited)
    ASSETS

    Current assets:
      Cash and cash equivalents                $36,529           $38,970
      Accounts receivable, net                 346,200           303,800
      Income taxes receivable                        -             2,630
      Current portion of notes receivable       15,254            14,824
      Prepaid insurance and other               47,139            59,563

            Total current assets               445,122           419,787

    Property, plant and equipment, net         958,915           804,228
    Goodwill                                   482,798           444,687
    Notes receivable                            16,259            16,137
    Equity-method investments                   60,241            64,603
    Intangible and other long-term
     assets, net                               134,683           125,036

            Total assets                    $2,098,018        $1,874,478

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
      Accounts payable                         $75,456           $65,451
      Accrued expenses                         139,902           141,684
      Income taxes payable                       8,857                 -
      Current portion of decommissioning
       liabilities                              36,504            35,150
      Current maturities of long-term
       debt                                        810               810

            Total current liabilities          261,529           243,095

    Deferred income taxes                      122,311           112,011
    Decommissioning liabilities                 86,787            87,046
    Long-term debt                             746,324           711,505
    Other long-term liabilities                 13,989            10,133

    Total stockholders' equity                 867,078           710,688

            Total liabilities and
             stockholders' equity           $2,098,018        $1,874,478



               SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
                              SEGMENT HIGHLIGHTS
      THREE MONTHS ENDED JUNE 30, 2007, MARCH 31, 2007 AND JUNE 30, 2006
                                 (Unaudited)
                                (in thousands)

                                                 Three months ended,
                                           June 30,   March 31,    June 30,
    Revenue                                  2007        2007        2006

    Well Intervention                     $190,542    $176,931    $111,675

    Rental tools                           123,736     116,180      86,593

    Marine                                  35,162      35,866      33,951

    Oil and Gas                             48,164      37,029      33,625

      Less: Oil and Gas Eliminations (2)      (851)     (3,082)     (4,085)

    Total Revenues                        $396,753    $362,924    $261,759


                                                 Three months ended,
    Gross Profit (1)                       June 30,   March 31,    June 30,
                                             2007        2007        2006

    Well Intervention                      $81,093     $81,424     $48,320

    Rental tools                            84,718      80,664      58,370

    Marine                                  19,805      21,377      20,158

    Oil and Gas                             29,331      18,972      14,923

    Total Gross Profit                    $214,947    $202,437    $141,771


    (1) Gross profit is calculated by subtracting cost of services from
        revenue for each of the Company's four segments.
    (2) Oil and gas eliminations represent products and services from the
        company's segments provided to the Oil and Gas Segment.


    FOR FURTHER INFORMATION CONTACT:
    Terence Hall, CEO; Robert Taylor, CFO;
    Greg Rosenstein, VP of Investor Relations,
    504-362-4321

SOURCE Superior Energy Services, Inc.

/CONTACT: Terence Hall, CEO, or Robert Taylor, CFO, or Greg Rosenstein, VP of Investor Relations, all of Superior Energy Services, Inc., +1-504-362-4321

/Web site: http://www.superiorenergy.com /