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Superior Energy Services, Inc. Announces Fourth Quarter 2003 Results

HARVEY, La.--(BUSINESS WIRE)--March 4, 2004--In BW5126 issued March 4, 2004: The sixth graph titled "Rental Tools Segment" and the seventh graph titled "Marine Segment" have been replaced.

The corrected release reads:

SUPERIOR ENERGY SERVICES, INC. ANNOUNCES FOURTH QUARTER 2003 RESULTS

Superior Energy Services, Inc. (NYSE:SPN) today announced results for the fourth quarter ended December 31, 2003. For the quarter, revenues were $120.3 million resulting in net income of $5.9 million or $0.08 diluted earnings per share, as compared to revenues of $118.4 million and net income of $5.6 million or $0.08 diluted earnings per share for the fourth quarter of 2002.

For the year ended December 31, 2003, revenues were a record $500.6 million and net income was $30.5 million or $0.41 diluted earnings per share, as compared to revenues of $443.1 million and net income of $21.9 million or $0.30 diluted earnings per share for the year ended December 31, 2002.

President and CEO Terry Hall Comments

President and CEO Terry Hall commented, "During the fourth quarter, well intervention and liftboat activity in our core Gulf of Mexico market remained solid until late November, at which time activity slowed dramatically and did not pick up for the rest of the year. In our rental tool segment, rentals were down from the third quarter as the Gulf of Mexico rig count remained at low levels. Despite only modest increases in Gulf of Mexico activity, Superior was able to post a record year in terms of revenue, and generate cash that was more than sufficient to service debt and maintain the company's capital expenditure budget.

"While visibility for 2004 is still unclear, we are encouraged by the ability to put assets to work on our own properties through SPN Resources, which allows us to deploy production-related services and liftboats to enhance our own production. We believe we are gaining momentum in this business as evidenced by our ability to close on multiple transactions since December 2003. This will help us keep well intervention and liftboat assets working when demand from our traditional customer base slows. As a result, our growth will be driven to a large extent by Gulf of Mexico activity levels, our growing international business and our backlog of work as a result of properties owned and operated by SPN Resources."

Well Intervention Group Segment

Fourth quarter revenues for the Well Intervention Group were $49.9 million, basically flat from the third quarter of 2003. Activity increased in electric line, pumping and stimulation, hydraulic workover and well control services, offset by decreased activity in coiled tubing, well services and mechanical wireline.

Rental Tools Segment

Revenues for the Rental Tools segment were $35.0 million, basically flat as compared to the third quarter of 2003. Rentals of stabilizers and on-site accommodations increased, particularly on land in the Texas market. However, rentals of drill pipe, connecting iron and handling tools decreased as deepwater activity slowed toward year end.

Marine Segment

Superior's Marine Segment revenues were $16.0 million, a decrease of 8% as compared to the third quarter of 2003. Average fleet utilization was flat compared to the third quarter of 2003, and the average fleet dayrate was $5,993 in the fourth quarter as compared to $6,238 for the third quarter of 2003.


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

 Class         Liftboats        Average Dayrate         Utilization
----------   --------------   -------------------      -------------
105'                6(a)              $3,003               50.0%
120-135'            7(a)               3,457               73.1%
145-155'           11                  4,399               57.9%
160'-175'           6                  6,183               74.1%
200'                3                  9,750               88.6%
230'-245'           3                 10,652               65.6%
250'                2                 16,858               79.4%

(a) Does not include two 105-foot class liftboats and one 120-foot
    class liftboat that were stacked.

Other Oilfield Services Segment

Revenues in this segment were $19.4 million, a 24% decrease as compared to the third quarter of 2003 due primarily to the third quarter sale of the company's construction assets and a decrease in environmental services and field management. The sale of the construction assets in the third quarter accounted for 85% of the decrease in revenues for the oilfield services segment.

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 5468139. The replay is available beginning two hours after the call and ending March 11, 2004.

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, hydraulic workover, coiled tubing services and engineering services. Additional services provided include contract operating and supplemental labor, 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 Twelve Months Ended December 31, 2003 and 2002
           (in thousands, except earnings per share amounts)
                              (unaudited)

                                  Three Months       Twelve Months
                                      Ended               Ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2003      2002      2003      2002
                               --------- --------- --------- ---------
Revenues                       $120,257  $118,378  $500,625  $443,147
                               --------- --------- --------- ---------

Costs and expenses:
  Cost of services               69,710    69,820   289,607   258,334
  Depreciation and
   amortization                  12,852    11,322    48,853    41,595
  General and administrative     23,249    22,279    94,822    86,197
                               --------- --------- --------- ---------

     Total costs and expenses   105,811   103,421   433,282   386,126
                               --------- --------- --------- ---------

Income from operations           14,446    14,957    67,343    57,021

Other income (expense):
  Interest expense               (5,673)   (5,597)  (22,477)  (21,884)
  Interest income                    98       100       209       530
  Other income                        -         -     2,762         -
  Equity in income (loss) of
   affiliates                       493      (338)      985       (80)
                               --------- --------- --------- ---------

Income before income taxes        9,364     9,122    48,822    35,587

Income taxes                      3,511     3,512    18,308    13,701
                               --------- --------- --------- ---------

Net income                       $5,853    $5,610   $30,514   $21,886
                               ========= ========= ========= =========

Basic earnings per share          $0.08     $0.08     $0.41     $0.30
                               ========= ========= ========= =========

Diluted earnings per share        $0.08     $0.08     $0.41     $0.30
                               ========= ========= ========= =========
Weighted average common shares
 used in computing earnings
 per share:
    Basic                        74,079    73,784    73,970    72,912
                               ========= ========= ========= =========
    Diluted                      74,759    74,480    74,648    73,872
                               ========= ========= ========= =========



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

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

Current assets:
  Cash and cash equivalents                       $19,794      $3,480
  Accounts receivable - net                       112,775     108,352
  Income taxes receivable                               -       6,087
  Notes receivable                                 19,212           -
  Prepaid insurance and other                      14,059      11,663
                                               ----------- -----------
        Total current assets                      165,840     129,582

Property, plant and equipment - net               427,360     418,047

Goodwill - net                                    204,727     160,366
Notes receivable                                   15,145           -
Investments in affiliates                          13,224      12,343
Other assets - net                                  6,567       7,282
                                               ----------- -----------
        Total assets                             $832,863    $727,620
                                               =========== ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                                $20,817     $21,010
  Accrued expenses                                 48,949      33,871
  Income taxes payable                                138           -
  Decommissioning liabilities                      20,097           -
  Current maturities of long-term debt             14,210      13,730
                                               ----------- -----------

        Total current liabilities                 104,211      68,611
                                               ----------- -----------

Deferred income taxes                              86,251      67,333
Decommissioning liabilities                        18,756           -
Long-term debt                                    255,516     256,334

Total stockholders' equity                        368,129     335,342
                                               ----------- -----------

     Total liabilities and stockholders'
      equity                                     $832,863    $727,620
                                               =========== ===========


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


Revenue                     December 2003       December 2002
                           ---------------     ---------------
Well Intervention Group           $49,933             $36,081
Marine                             15,958              21,212
Rental Tools                       35,015              33,409
Other Oilfield Services            19,351              27,676
                           ---------------     ---------------
Total                            $120,257            $118,378

Gross Profit (1)
Well Intervention Group           $21,166             $12,096
Marine                              3,420               8,530
Rental Tools                       22,901              22,794
Other Oilfield Services             3,060               5,138
                           ---------------     ---------------
Total                             $50,547             $48,558

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

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

SOURCE: Superior Energy Services, Inc.