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Superior Energy Services Announces Second Quarter Results, Posts Another Record Quarter

HARVEY, La.--(BUSINESS WIRE)--Aug. 2, 2001--Superior Energy Services, Inc. (NYSE:SPN) today announced results for the second quarter ended June 30, 2001. For the period, revenues were a record $109.6 million resulting in record net income of $14.3 million or $0.21 diluted earnings per share, as compared to revenue of $57.6 million and net income of $3.8 million or $0.06 diluted earnings per share for the second quarter of 2000. On a sequential basis, revenue increased 20% and EBITDA increased 30%.

Well Intervention Group Segment (including mechanical wireline)

Revenue for Superior's Well Intervention Group was $41.6 million, 30% higher than the preceding quarter. Demand increased for coiled tubing, pumping and stimulation, hydraulic drilling and workover services. Demand for coiled tubing was particularly strong in the south and east Texas market areas. In May, Superior added 21 coiled tubing units from the Reeled Tubing acquisition, giving Superior 36 coiled tubing units in the Gulf of Mexico and along the Gulf Coast - more than any other service company in those market areas. Additionally, mechanical wireline revenue increased 12% and the gross margin increased over the prior quarter as a result of higher activity and additional higher margin projects.

Rental Tools Segment

Revenue for the Rental Tools segment was $29.1 million, a 7% increase over the first quarter. The segment was driven by increased rentals of stabilizers, drill pipe and accessories, gravel packs, high-pressure connecting iron and on-site accommodations. International rentals comprised 6% of this segment's revenue, up from 4% in the first quarter, as the Company continues to expand its Canadian and South American operations with rentals of stabilizers and high-pressure connecting iron.

Marine Segment

Superior's marine revenue increased 42% over the preceding quarter to $18.5 million as dayrates and utilization for most liftboat classes moved higher. The fleet's average dayrate increased 16% and utilization improved to 83% from 81% in the first quarter. The Company also benefited from eight additional liftboats added in May through the Power Offshore acquisition, including a 250-ft. class liftboat that generated a $28,000 dayrate since it was acquired.

        Liftboat Average Dayrates and Utilization by Class Size
                   Three Months Ended June 30, 2001
                              ($ actual)

Class                     Average Dayrate            Utilization
--------                  ---------------            -----------
105'                              $ 3,191                  73.1%
120-135'                            3,578                  92.2%
145-155'                            5,679                  78.0%
160'                                8,412                  82.3%
170'                                8,999                 100.0%
200'                               11,715                  92.9%
250'                               28,000                 100.0%

Note: Utilization for Power Offshore liftboats reflects 39 possible
days of activity - from the date of the acquisition -- during the
quarter.

Field Management Segment

Field Management revenue was $14.4 million, a 10% increase over the first quarter. This segment experienced increased activity for offshore construction and fabrication services as well as higher demand for supplemental labor.

Environmental and Other Segment

Revenue from this segment increased 5% to $6.0 million over the prior quarter driven mainly by increased offshore tank and vessel services, the highest gross margin business for the environmental segment.

President and CEO Terry Hall Comments

President and CEO Terry Hall commented, "I am extremely pleased with the results of the second quarter. By any measure, it was an excellent period for Superior as the Company again established records for revenue and profits. The acquisitions we made bolstered strong performances in our core coiled tubing and marine businesses. The Company also experienced strong internal growth, particularly in the Well Intervention Group and Marine Segment.

We believe our strategy to operate primarily in the production-services arena should result in strong demand for the remainder of the year. We believe current commodity prices still support well intervention, maintenance and remediation projects. Our balance sheet provides us the capacity to capitalize on opportunities and the flexibility to manage through changing market conditions."

The Company will host a conference call at 10 a.m. Central Time today. The call can be accessed from Superior's website at www.superiorenergy.com, or by telephone at 800/763-5557. The replay telephone number is 800/642-1687 and the passcode for the replay call is 1472038.

Superior Energy Services, Inc. provides a broad range of specialized oilfield services and equipment primarily to major and independent oil and gas companies engaged in the exploration, production and development of oil and natural gas properties offshore in the Gulf of Mexico and throughout the Gulf Coast region. These services and equipment include the rental of liftboats, rental of specialized oilfield equipment, electric and mechanical wireline services, well plug and abandonment services, coiled tubing services and engineering services. Additional services provided include contract operating and supplemental labor, offshore construction and maintenance services, offshore and dockside environmental cleaning services, the manufacture and sale of drilling instrumentation and the manufacture and sale of oil spill containment equipment.

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, 2001 and 2000
          (in thousands, except earnings per share amounts)
                              (unaudited)

                             Three Months Ended     Six Months Ended
                                  June 30,              June 30,
                            --------------------  --------------------
                              2001       2000       2001        2000
                            ---------  ---------  ---------  ---------

Revenues                    $ 109,639  $  57,592  $ 200,895  $ 104,866
                            ---------  ---------  ---------  ---------

Costs and expenses:
  Cost of services             55,719     33,931    104,037     61,693
  Depreciation and
    amortization                8,129      4,935     14,898      9,672
  General and administrative   17,108      9,673     31,726     18,984
                            ---------  ---------  ---------  ---------

     Total costs
       and expenses            80,956     48,539    150,661     90,349
                            ---------  ---------  ---------  ---------

Income from operations         28,683      9,053     50,234     14,517

Other income (expense):
  Interest expense             (4,976)    (3,068)    (8,546)    (5,988)
  Interest income                 592        641      1,052        834
                            ---------  ---------  ---------  ---------

Income before income
  taxes and cumulative
  effect of change in
  accounting principle         24,299      6,626     42,740      9,363

Income taxes                    9,963      2,783     17,524      3,932
                            ---------  ---------  ---------  ---------

Income before cumulative
  effect of change in
  accounting principle         14,336      3,843     25,216      5,431

Cumulative effect of change
  in accounting principle,
  net of income tax expense        --         --      2,589         --

                            ---------  ---------  ---------  ---------
Net income                  $  14,336  $   3,843  $  27,805  $   5,431
                            =========  =========  =========  =========

Basic earnings per share:
  Earnings before cumulative
    effect of  change in
    accounting principle    $    0.21  $    0.06  $    0.37  $    0.09
  Cumulative change
    in accounting principle        --         --       0.04         --
                            ---------  ---------  ---------  ---------
  Earnings per share        $    0.21  $    0.06  $    0.41  $    0.09
                            =========  =========  =========  =========

Diluted earnings per share:
  Earnings before cumulative
    effect of change in 
    accounting principle    $    0.21  $    0.06  $    0.36  $    0.09
  Cumulative change in
    accounting principle           --         --       0.04         --
                            ---------  ---------  ---------  ---------
  Earnings per share        $    0.21  $    0.06  $    0.40  $    0.09
                            =========  =========  =========  =========

Weighted average common
  shares used in computing
  earnings per share:
    Basic                      68,287     64,643     68,126     62,250
                            =========  =========  =========  =========
    Diluted                    69,199     65,205     69,037     62,404
                            =========  =========  =========  =========



                 Condensed Consolidated Balance Sheets
                  June 30, 2001 and December 31, 2000
                            (in thousands)
                                                  6/30/2001  12/31/2000
                                                 (unaudited)  (audited)
                                                  ---------  ---------
ASSETS
Current assets                                    $ 122,170  $  88,770
Property, plant and equipment - net                 305,559    202,498
Goodwill - net                                      124,320    114,650
Note receivable                                      21,228     19,213
Other assets - net                                   10,264      5,545
                                                  ---------- ---------
        Total assets                              $ 583,541  $ 430,676
                                                  ========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                               $  62,217  $  53,732
Long-term debt, less current portion                254,630    146,393
Deferred income taxes                                29,180     24,304
Stockholders' equity                                237,514    206,247
                                                  ---------- ---------
        Total liabilities and stockholders'
         equity                                   $ 583,541  $ 430,676
                                                  =========  =========



                    Superior Energy Services, Inc.
                          Segment Highlights
     Three months ended June 30, 2001 and 2000, and March 31, 2001
                              (Unaudited)

                           ($ in thousands)


Revenue                                June 2001 March 2001  June 2000
                                       --------- ----------  ---------

Well Intervention Group                  $41,604    $32,066    $20,499

Marine                                    18,483     13,007      7,792

Rental Tools                              29,141     27,339     15,370

Field Management                          14,433     13,124      8,733

Environmental & Other                      5,978      5,720      5,198
                                       --------- ----------  ---------
Total                                  $ 109,639   $ 91,256    $57,592


Gross Profit

Well Intervention Group                  $20,002    $14,012     $6,748

Marine                                    10,600      6,857      3,298

Rental Tools                              18,580     17,577     10,398

Field Management                           1,892      1,920      1,030

Environmental & Other                      2,846      2,572      2,187
                                       --------- ----------  ---------
Total                                   $ 53,920   $ 42,938    $23,661

CONTACT: Superior Energy Services, Inc., Harvey
Terence Hall, Robert Taylor or Greg Rosenstein
504/362-4321