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Superior Energy Services, Inc. Announces Third Quarter 2003 Results

Superior Energy Services, Inc. (NYSE: SPN) today announced results for the third quarter ended September 30, 2003. For the quarter, revenues were $128.3 million resulting in net income of $8.8 million or $0.12 diluted earnings per share, as compared to revenues of $107.2 million and net income of $1.9 million or $0.03 diluted earnings per share for the third quarter of 2002.

For the nine months ended September 30, 2003, revenues were $380.4 million and net income was $24.7 million or $0.33 diluted earnings per share, as compared to revenues of $324.8 million and net income of $16.3 million or $0.22 diluted earnings per share for the nine months ended September 30, 2002.

President and CEO Terry Hall Comments

President and CEO Terry Hall commented, "Demand for production-related services increased, resulting in higher revenue and gross profits in our Well Intervention segment as compared to the second quarter of this year. However, this was offset by decreases in drilling-related activity, which impacted our drilling-related rental tools and environmental services businesses. In our Marine segment, increases in production-related work were more than offset by higher-than-anticipated downtime due to weather and the loss of the 200-foot class Superior Challenge. The opportunity cost associated with losing the Challenge is high as it operated in our most highly utilized liftboat class.

"We do not expect much change in Gulf of Mexico activity in the near term. Longer term, we believe our focus on production enhancement will continue to benefit operators in both the shallow water and deepwater Gulf, as well as international operators as we continue to expand our geographic reach."

Well Intervention Group Segment

Third quarter revenues for the Well Intervention Group were $50.3 million, an 39 percent increase from the third quarter of 2002 and an 8 percent increase from the second quarter of 2003. Most well intervention activity increased due to rising demand for production-related services in the shallow water Gulf of Mexico. On a sequential basis, activity increased in coiled tubing, hydraulic workover, mechanical wireline and well control services, which were offset by decreases in plug and abandonment and electric line services.

Rental Tools Segment

Revenues for the Rental Tools segment were $35.4 million, 20 percent higher than the third quarter of 2002 and 3 percent lower than the second quarter of 2003. Rental activity was lower sequentially as a result of lower drilling and completion activity and changes in timing on certain deepwater Gulf of Mexico projects, which resulted in fewer rentals of drill pipe, stabilizers and related equipment.

Marine Segment

Superior's marine revenues were $17.3 million, a 20 percent increase as compared to the third quarter of 2002 and a 7 percent decrease as compared to the second quarter of 2003. Average fleet utilization was 66 percent as compared to 63 percent for the third quarter of 2002 and 66 percent for the second quarter of 2003.

Although production-related activity increased - a primary driver of liftboat activity - the segment was adversely impacted by the loss of the 200-foot class Superior Challenge and the unusually high number of weather downtime days due to multiple tropical storm systems in the Gulf of Mexico. The 200-foot class Superior Challenge liftboat sunk on June 30 due to a tropical storm. The Company recorded a gain from insurance proceeds of $2.8 million in other income.

        Liftboat Average Dayrates and Utilization by Class Size
                 Three Months Ended September 30, 2003
                              ($ actual)

Class Liftboats Average Dayrate Utilization

--------- --------- -------------- -----------

105' 8 $ 2,866 55.6%

120-135' 9 3,399 66.6%

145-155' 11 5,080 61.7%

160'-175' 6 7,047 74.1%

200' 2 10,439 95.7%

230'-245' 3 11,820 69.6%

250' 2 17,609 72.8% *T

Other Oilfield Services Segment

Revenues in this segment were $25.4 million, a 7 percent decrease as compared to the third quarter of 2002 and an 8 percent decrease as compared to the second quarter of 2003. Lower revenue is attributable to the sale of the Company's construction division and lower activity for drilling-related environmental services such as non-hazardous oilfield waste treatment.

During the quarter, the Company sold its construction-related assets for $1.25 million. There was no gain or loss recorded on the sale.

The Company will host a conference call at 10:30 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 3306581. The replay is available beginning two hours after the call and ending November 11, 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, well control, 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 Nine Months Ended September 30, 2003 and 2002
           (in thousands, except earnings per share amounts)
                              (unaudited)


                               Three Months Ended   Nine Months Ended
                                  September 30,       September 30,
                               ------------------- -------------------
                                 2003       2002      2003      2002
                                --------  --------  --------  --------

Revenues                       $128,316  $107,213  $380,368  $324,769
                                --------  --------  --------  --------

Costs and expenses:
  Cost of services               75,449    67,136   219,897   188,514
  Depreciation and
   amortization                  12,174    10,295    36,001    30,273
  General and administrative     24,195    21,279    71,573    63,918
                                --------  --------  --------  --------

    Total costs and expenses    111,818    98,710   327,471   282,705
                                --------  --------  --------  --------

Income from operations           16,498     8,503    52,897    42,064

Other income (expense):
  Interest expense, net          (5,611)   (5,452)  (16,693)  (15,857)
  Other income                    2,762         -     2,762         -
  Equity in income of
   affiliates                        60       113       492       258
                                --------  --------  --------  --------

Income before income taxes       13,709     3,164    39,458    26,465

Income taxes                      4,883     1,218    14,797    10,189
                                --------  --------  --------  --------

Net income                     $  8,826  $  1,946  $ 24,661  $ 16,276
                                ========  ========  ========  ========


Basic earnings per share       $   0.12  $   0.03  $   0.33  $   0.22
                                ========  ========  ========  ========

Diluted earnings per share     $   0.12  $   0.03  $   0.33  $   0.22
                                ========  ========  ========  ========

Weighted average common shares
 used in computing earnings per
 share:
    Basic                        74,035    73,765    73,933    72,615
                                ========  ========  ========  ========
    Diluted                      75,169    74,543    74,952    73,634
                                ========  ========  ========  ========


            SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS
               SEPTEMBER 30, 2003 AND DECEMBER 31, 2002
                            (in thousands)


                                               9/30/2003   12/31/2002
                                              (Unaudited)   (Audited)
                                              ----------- ------------
ASSETS

Current assets:
  Cash and cash equivalents                   $   20,732  $     3,480
  Accounts receivable - net                      117,204      108,352
  Income taxes receivable                              -        6,087
  Prepaid insurance and other                     15,807       11,663
                                               ----------  -----------

        Total current assets                     153,743      129,582

Property, plant and equipment - net              425,070      418,047
Goodwill - net                                   202,305      160,366
Investments in affiliates                         12,772       12,343
Other assets - net                                 7,429        7,282
                                               ----------  -----------

        Total assets                          $  801,319  $   727,620
                                               ==========  ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                            $   20,306  $    21,010
  Accrued expenses                                61,273       33,871
  Income taxes payable                             1,401            -
  Current maturities of long-term debt            14,210       13,730
                                               ----------  -----------

        Total current liabilities                 97,190       68,611
                                               ----------  -----------

Deferred income taxes                             82,755       67,333
Long-term debt                                   259,271      256,334

Total stockholders' equity                       362,103      335,342
                                               ----------  -----------

        Total liabilities and stockholders'
         equity                               $  801,319  $   727,620
                                               ==========  ===========


            Superior Energy Services, Inc. and Subsidiaries
                          Segment Highlights
            Three months ended September 30, 2003 and 2002
                              (Unaudited)
                            (in thousands)

Revenue                                 September 2003  September 2002
                                        --------------  --------------
Well Intervention Group                       $ 50,264       $ 36,115
Marine                                          17,260         14,326
Rental Tools                                    35,351         29,401
Other Oilfield Services                         25,441         27,371
                                               --------       --------
Total                                         $128,316       $107,213

Gross Profit (1)
Well Intervention Group                       $ 20,453       $ 11,701
Marine                                           4,817          2,870
Rental Tools                                    23,842         20,028
Other Oilfield Services                          3,755          5,478
                                               --------       --------
Total                                         $ 52,867       $ 40,077

(1)  Gross profit is calculated by subtracting cost of services from
     revenue for each of the Company's four segments.

SOURCE: Superior Energy Services, Inc.

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