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Superior Energy Services, Inc. Announces Fourth Quarter 2002 Results
HARVEY, La., Feb 27, 2003 (BUSINESS WIRE) -- Superior Energy Services, Inc. (NYSE: SPN) today announced results for the fourth quarter ended December 31, 2002. For the quarter, revenues were $118.4 million resulting in net income of $5.6 million or $0.08 diluted earnings per share, as compared to revenues of $119.5 million and net income of $11.8 million or $0.17 diluted earnings per share, exclusive of goodwill amortization, for the fourth quarter of 2001.

For the year ended December 31, 2002, revenues were $443.1 million and net income was $21.9 million or $0.30 diluted earnings per share, as compared to revenues of $449.0 million and net income before cumulative effect of change in accounting principle of $55.4 million or $0.79 diluted earnings per share, exclusive of goodwill amortization, for the year ended December 31, 2001.

President and CEO Terry Hall Comments

President and CEO Terry Hall commented, "After a slow start to the fourth quarter due to tropical weather systems, our marine services group benefited from work created by those same systems. Activity in our well intervention group was mixed, with some services benefiting from storm-related opportunities. Although most storm-related work was completed by year-end, liftboat utilization during the first two months of the first quarter has been slightly higher than what we typically experience at this time of year. In addition, Gulf of Mexico activity is moderately increasing for certain well intervention services and rental tools. Although it is too early in the year to determine if the improving market conditions we're seeing will be sustained, we remain optimistic that activity and utilization will increase in 2003, allowing us to benefit from our increased asset base and operational leverage."

Well Intervention Group Segment

Fourth quarter revenues for the Well Intervention Group were $36.1 million, unchanged from the third quarter of 2002. Activity increased in mechanical wireline and pumping and stimulation, which was offset by decreased activity in electric line and plug and abandonment services.

Rental Tools Segment

Revenues for the Rental Tools segment were $33.4 million, a 14% increase as compared to the third quarter of 2002. Rentals of drill pipe increased sharply due to additional demand in the deepwater Gulf of Mexico. In addition, rentals of on-site accommodations and ancillary items increased.

Marine Segment

Superior's marine revenues were $21.2 million, a 48% increase as compared to the third quarter of 2002. Dayrates and utilization increased across all classes as the marine segment posted its best quarter of the year in terms of revenue and EBITDA (earnings before interest, taxes, depreciation and amortization). The Company's 200-ft. class liftboat in Venezuela was idle most of the quarter due to the strike-led activity decline.

In December, the Company took delivery of the 245-foot class Superior Gale, an ABS-classed, U.S. Coast Guard inspected vessel equipped with a 250-ton crane, a useable deck space of approximately 8,400 square feet and accommodations for up to 46 people. Superior now owns five liftboats with leg lengths of 230-ft. and greater.


        Liftboat Average Dayrates and Utilization by Class Size
                 Three Months Ended December 31, 2002
                              ($ actual)
Class            Liftboats         Average Dayrate       Utilization
--------         ---------         ---------------       -----------
105'                     8                  $3,234             87.6%
120-135'                 8                   3,527             76.4%
145-155'                11                   5,838             63.8%
160'-175'                6                   7,725             90.9%
200'                     3                   8,875             75.4%
230'-245'                3                  12,652             93.5%
250'                     2                  18,691             88.0%

Other Oilfield Services Segment

Revenues in this segment were $27.7 million, a 1% increase as compared to the third quarter of 2002 due primarily to increased activity for waste disposal and field management offset by seasonal decreases in construction and fabrication projects.

The Company will host a conference call at 10 a.m. Central Time (11 a.m. Eastern Time) today.

The call can be accessed from the following link: www.corporate-ir.net/ireye/ ir_site.zhtml?ticker=SPN&script=1010&item_id=710593 or by telephone at 800-763-5557. The replay telephone number is 800-642-1687 (available 2 hours after call and ending March 5, 2003) and the replay passcode is 8047421.

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 Months and Year Ended December 31, 2002 and 2001
          (in thousands, except earnings per share amounts)
                                 (unaudited)
                             Three Months Ended       Year Ended
                                December 31,         December 31,
                            --------------------- -------------------
                               2002      2001(A)    2002     2001(A)
                            ----------- --------- --------- ---------
Revenues                      $118,378  $119,541  $443,147  $449,042
                            ----------- --------- --------- ---------
Costs and expenses:
  Cost of services              69,820    65,442   258,334   237,355
  Depreciation and
   amortization                 11,322     9,582    41,595    33,446
  General and
   administrative               22,279    21,297    86,197    73,288
                            ----------- --------- --------- ---------
     Total costs and
      expenses                 103,421    96,321   386,126   344,089
                            ----------- --------- --------- ---------
Income from operations          14,957    23,220    57,021   104,953
Other income (expense):
  Interest expense              (5,597)   (5,506)  (21,884)  (20,087)
  Interest income                  100       409       530     1,892
  Equity in loss of
   affiliates                     (338)        -       (80)        -
                            ----------- --------- --------- ---------
Income before income
 taxes and cumulative
 effect of change in
 accounting principle            9,122    18,123    35,587    86,758
Income taxes                     3,512     7,431    13,701    35,571
                            ----------- --------- --------- ---------
Income before cumulative
 effect of change
 in accounting principle         5,610    10,692    21,886    51,187
Cumulative effect of change
 in accounting principle,
 net of income tax expense           -         -         -     2,589
                            ----------- --------- --------- ---------
Net income                      $5,610   $10,692   $21,886   $53,776
                            =========== ========= ========= =========
Basic earnings per share:
  Earnings before
   cumulative effect of
   change in accounting
   principle                     $0.08     $0.15     $0.30     $0.74
  Cumulative effect of
   change in accounting
   principle                         -         -         -      0.04
                            ----------- --------- --------- ---------
  Earnings per share             $0.08     $0.15     $0.30     $0.78
                            =========== ========= ========= =========
Diluted earnings per share:
  Earnings before
   cumulative effect
   of change in
   accounting principle          $0.08     $0.15     $0.30     $0.73
  Cumulative effect of
   change in accounting
   principle                         -         -         -      0.04
                            ----------- --------- --------- ---------
  Earnings per share             $0.08     $0.15     $0.30     $0.77
                            =========== ========= ========= =========
Weighted average common
 shares used in computing
 earnings per share:
    Basic                       73,784    69,246    72,912    68,545
                            =========== ========= ========= =========
    Diluted                     74,480    69,895    73,872    69,592
                            =========== ========= ========= =========
(A) Earnings per diluted share before cumulative effect of change in
accounting principal, excluding goodwill amortization, net of taxes,
was $0.17 and $0.79 for the three months and year ended December 31,
2001, respectively (SFAS 142).


           SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS
                      DECEMBER 31, 2002 AND 2001
                            (in thousands)
                                               12/31/2002  12/31/2001
                                               ----------- -----------
ASSETS
Current assets:
  Cash and cash equivalents                        $3,480      $3,769
  Accounts receivable - net                       108,352     109,835
  Income taxes receivable                           6,087      11,694
  Prepaid insurance and other                      11,663      10,181
                                               ----------- -----------
    Total current assets                          129,582     135,479
Property, plant and equipment - net               418,047     345,878
Goodwill - net                                    160,366     148,729
Notes receivable                                        -      23,062
Investments in affiliates                          12,343           -
Other assets - net                                  7,282      12,372
                                               ----------- -----------
    Total assets                                 $727,620    $665,520
                                               =========== ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                                $21,010     $21,591
  Accrued expenses                                 33,871      40,093
  Deferred income taxes                                 -         510
  Current maturities of long-term debt             13,730      16,727
                                               ----------- -----------
    Total current liabilities                      68,611      78,921
                                               ----------- -----------
Deferred income taxes                              67,333      47,390
Long-term debt                                    256,334     269,633
Total stockholders' equity                        335,342     269,576
                                               ----------- -----------
    Total liabilities and stockholders' equity   $727,620    $665,520
                                               =========== ===========

           Superior Energy Services, Inc. and Subsidiaries
                          Segment Highlights
           Three months ended December 31, 2002 and 2001,
                        and September 30, 2002
                             (Unaudited)
                            (in thousands)
Revenue                   December 2002  September 2002  December 2001
                          -------------  --------------  -------------
Well Intervention Group   $     36,081   $      36,115   $     45,374
Marine                          21,212          14,326         18,565
Rental Tools                    33,409          29,401         32,627
Other Oilfield Services         27,676          27,371         22,975
                           ------------   -------------   ------------
Total                     $    118,378   $     107,213   $    119,541
Gross Profit
Well Intervention Group   $     12,096   $      11,701   $     17,688
Marine                           8,529           2,870          8,506
Rental Tools                    22,795          20,028         23,575
Other Oilfield Services          5,138           5,478          4,330
                           ------------   -------------   ------------
Total                     $     48,558   $      40,077   $     54,099
CONTACT:
Superior Energy Services, Inc.
Terence Hall, Robert Taylor, or Greg Rosenstein, 504/362-4321