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Superior Energy Services, Inc. Announces First Quarter 2003 Results

Superior Energy Services, Inc. (NYSE:SPN) today announced results for the first quarter ended March 31, 2003. For the quarter, revenues were $123.2 million resulting in net income of $7.5 million or $0.10 diluted earnings per share, as compared to revenues of $104.8 million and net income of $5.8 million or $0.08 diluted earnings per share for the first quarter of 2002.

President and CEO Terry Hall Comments

President and CEO Terry Hall commented, "In the first quarter, we saw indications of increasing activity in several areas. Demand for certain production-related services and equipment in the Gulf of Mexico was at its strongest level since the fourth quarter of 2001. In addition, rentals of stabilizers, tubulars and on-site accommodations in Texas were higher as drilling activity in that market area increased. While liftboat utilization returned to typical first quarter levels, dayrates across most classes remained at fourth quarter 2002 levels. Although the timing is unclear, overall we believe the stage is set for a broader upturn in the Gulf of Mexico, given the improving performance of our production-related service businesses, relatively stable pricing for our liftboats and higher demand for certain rental tools."

Well Intervention Group Segment

First quarter revenues for the Well Intervention Group were $41.4 million, a 14% increase from the first quarter of 2002 and a 15% increase from the fourth quarter of 2002. On a sequential basis, activity increased for most production-related services despite seasonality often associated with the first quarter. A key driver was demand for discretionary services such as coiled tubing, electric line, and pumping and stimulation.

Rental Tools Segment

Revenues for the Rental Tools segment were $34.6 million, 8% higher than the first quarter of 2002 and 4% higher than the fourth quarter of 2002. Rentals of stabilizers, drill pipe and accessories to customers in the Gulf of Mexico and in certain international market areas remained strong throughout the period. Also, rentals in south and west Texas increased as compared to the fourth quarter of 2002.

Marine Segment

Superior's marine revenues were $18.7 million, a 28% increase as compared to the first quarter of 2002 and a 12% decrease as compared to the fourth quarter of 2002. Average fleet utilization was 67% as compared to 67% for the first quarter of 2002 and 79% for the fourth quarter of 2002. After starting the quarter at unseasonally high utilization, the Company's liftboat fleet returned to more normal utilization levels in February and March.


        Liftboat Average Dayrates and Utilization by Class Size
                   Three Months Ended March 31, 2003
                              ($ actual)

       Class        Liftboats    Average Dayrate    Utilization
       ---------    ---------    ---------------    -----------
       105'                 8           $  3,147          71.0%
       120-135'             9              3,581          70.7%
       145-155'            11              5,890          60.1%
       160'-175'            6              7,854          59.8%
       200'                 3             10,561          73.3%
       230'-245'            3             13,456          84.6%
       250'                 2             17,827          57.8%

Other Oilfield Services Segment

Revenues in this segment were $28.5 million, a 30% increase as compared to the first quarter of 2002 and a 3% increase as compared to the fourth quarter of 2002. The sequential improvement was due primarily to increased sales of oil spill response equipment and increased activity for waste disposal, offset by seasonal decreases in other environmental services and construction and fabrications projects.

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 replay passcode is 9960168. The replay is available beginning two hours after the call and ending May 9, 2003.

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 Ended March 31, 2003 and 2002
           (in thousands, except earnings per share amounts)
                              (unaudited)


                                                 Three Months Ended
                                                      March 31,
                                             ------------------------
                                                 2003        2002
                                             -----------  -----------

Revenues                                     $   123,195  $   104,826
                                             -----------  -----------

Costs and expenses:
  Cost of services                                70,157       59,238
  Depreciation and amortization                   11,755        9,522
  General and administrative                      23,689       21,213
                                             -----------  -----------

     Total costs and expenses                    105,601       89,973
                                             -----------  -----------

Income from operations                            17,594       14,853

Other income (expense):
  Interest expense, net                           (5,515)      (5,224)
  Equity in income of affiliates                     127            -
                                             -----------  -----------

Income before income taxes                        12,206        9,629

Income taxes                                       4,699        3,804
                                             -----------  -----------

Net income                                   $     7,507  $     5,825
                                             ===========  ===========


Basic earnings per share                     $      0.10  $      0.08
                                             ===========  ===========

Diluted earnings per share                   $      0.10  $      0.08
                                             ===========  ===========

Weighted average common shares used
  in computing earnings per share:
    Basic                                         73,826       70,305
                                             ===========  ===========
    Diluted                                       74,595       71,310
                                             ===========  ===========


            SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS
                 MARCH 31, 2003 AND DECEMBER 31, 2002
                            (in thousands)

                                              3/31/2003    12/31/2002
                                             (Unaudited)   (Audited)
                                             -----------  -----------
ASSETS

Current assets:
  Cash and cash equivalents                  $     5,565  $     3,480
  Accounts receivable - net                      110,052      108,352
  Income taxes receivable                          6,459        6,087
  Prepaid insurance and other                     14,608       11,663
                                             -----------  -----------

        Total current assets                     136,684      129,582

Property, plant and equipment - net              417,544      418,047
Goodwill - net                                   162,366      160,366
Investments in affiliates                         12,471       12,343
Other assets - net                                 6,935        7,282
                                             -----------  -----------

        Total assets                         $   736,000  $   727,620
                                             ===========  ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                           $    16,827  $    21,010
  Accrued expenses                                37,181       33,871
  Current maturities of long-term debt            13,723       13,730
                                             -----------  -----------

        Total current liabilities                 67,731       68,611
                                             -----------  -----------

Deferred income taxes                             73,360       67,333
Long-term debt                                   251,879      256,334

Total stockholders' equity                       343,030      335,342
                                             -----------  -----------

        Total liabilities and stockholders'
         equity                              $   736,000  $   727,620
                                             ===========  ===========


            Superior Energy Services, Inc. and Subsidiaries
                          Segment Highlights
   Three months ended March 31, 2003 and 2002, and December 31, 2002
                              (Unaudited)
                            (in thousands)


Revenue                     March 2003    December 2002    March 2002
                            ----------    -------------    ----------
Well Intervention Group       $ 41,399        $ 36,081       $ 36,288
Marine                          18,665          21,212         14,586
Rental Tools                    34,600          33,409         31,965
Other Oilfield Services         28,531          27,676         21,987
                            ----------    -------------    ----------
Total                         $123,195        $118,378       $104,826

Gross Profit
Well Intervention Group       $ 16,645        $ 12,096       $ 13,495
Marine                           5,998           8,529          5,038
Rental Tools                    23,486          22,795         22,777
Other Oilfield Services          6,909           5,138          4,278
                            ----------    -------------    ----------
Total                         $ 53,038        $ 48,558       $ 45,588

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

SOURCE: Superior Energy Services Inc.