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Superior Energy Services Posts Record First Quarter 2006 Results; Diluted EPS Increases 82% to $0.40; Oil and Gas Production Fully Restored in April; Company Closes on Acquisition of Mature Oil and Gas Properties

HARVEY, La., April 26 /PRNewswire-FirstCall/ -- Superior Energy Services, Inc. (NYSE: SPN) today announced record first quarter net income of $32.2 million, or $0.40 diluted earnings per share, on record revenues of $222.5 million. The record results were due to strong performances from the well intervention, rental tools and marine segments and were generated in spite of an operating loss incurred by the company's oil and gas segment. While first quarter oil and gas production was slow to recover due to continuing repairs to third party pipelines, full production was restored to pre-Hurricanes Katrina and Rita levels at all producing properties by mid-April.

"Our record first quarter results indicate the operating leverage and earnings power of our core products and services segments (well intervention, rental tools and marine segments) and our ability to capitalize on growing demand in certain domestic and international market areas," stated Terry Hall, president and CEO. "Activity improved each month, particularly in the Gulf of Mexico market where demand for well intervention services steadily increased throughout the period.

"While first quarter results were at record levels, we expect the second quarter to be even stronger," added Hall. "This is based upon current market conditions, our ability to execute as we did in the first quarter, the full resumption of our oil and gas production, and the incremental production from the mature property acquisition we closed today."

Well Intervention Group Segment

Beginning with the first quarter of 2006, results from businesses that comprised the other oilfield services segment -- contract operations, environmental services and manufactured products -- are now included in the Well Intervention Group segment.

First quarter revenues for the Well Intervention Group were a record $102.1 million, a 15% increase from the fourth quarter of 2005. The biggest increases were in plug and abandonment, well control, mechanical wireline and coiled tubing services, reflecting the resumption of pre-hurricane production- related projects and the transition to post-hurricane, production-related recovery and well abandonment work. The company continued to play an active role in managing and participating in many post-hurricane recovery projects and also benefited from performing several small well control projects domestically and internationally.

Rental Tools Segment

Revenues for the Rental Tools segment were a record $77.8 million, 14% higher than the fourth quarter of 2005. The primary factors leading to the record quarter were increased rentals of stabilizers, drill collars, drill pipe, connecting iron and other tubular products. Increased production- related work in the Gulf of Mexico and higher drilling rig counts domestically and internationally were the key drivers of these increases.

Marine Segment

Superior's marine revenues were $30.2 million, down slightly from the fourth quarter of 2005 due to an increase in shipyard days related to planned mandatory inspections and repairs, primarily in the company's 200-foot class fleet. Average fleet utilization was 85% as compared to 90% in the fourth quarter of 2005. Average daily revenue in the first quarter was approximately $336,000, inclusive of subsistence revenue, as compared to $334,000 per day in the fourth quarter of 2005.

This segment should continue to benefit from record high dayrates and increased utilization as the 200-foot class comes back from drydock into service. Day rates were increased on March 1, 2006 by an average of 20%, reflecting the strong demand for liftboats in support of construction and well intervention work.

           Liftboat Average Dayrates and Utilization by Class Size
                      Three Months Ended March 31, 2006
                                  ($ actual)

      Class          Liftboats      Dayrate     Utilization
     145-155'               11       $9,461           92.6%
     160'-175'               6       12,649           91.1%
     200'                    4       15,262           50.6%
     230'-245'               3       24,667           81.5%
     250'                    2       29,699           98.9%

    Oil and Gas Segment

Oil and gas revenues were $15.5 million, a significant increase over fourth quarter 2005 levels. However, oil and gas production returned slowly during the quarter as repairs to pipelines owned by third parties were completed later than originally estimated. First quarter production from SPN Resources averaged approximately 4,000 barrels of oil equivalent (boe) per day, net, as compared to average daily production of approximately 1,100 boe in the fourth quarter of 2005. In addition, the oil and gas segment incurred approximately $1.9 million in repair expenses. As discussed above, full production was restored to pre-Hurricanes Katrina and Rita levels at all producing properties in mid-April. April oil and gas production has averaged approximately 6,800 boe per day.

Superior Acquires Mature Properties from Explore Offshore, LLC

The company today also announced it has acquired from Explore Offshore, LLC approximately 16.2 billion cubic feet equivalent of net proved reserves (as of the December 1, 2005 effective date) for $46.6 million in cash and the assumption of an estimated $3.7 million in decommissioning liabilities.

This acquisition includes five leases located on the Outer Continental Shelf of the Gulf of Mexico encompassing four fields, nine structures, 13 operated wells and one well operated by a third party.

The properties are on blocks that span from Matagorda Island to Ship Shoal, and all are in less than 230 feet of water. Approximately 85% of the proved reserves are natural gas and 55% are proved developed reserves. Current production is approximately 1.6 million cubic feet equivalent per day, with another 5.1 million cubic feet equivalent per day expected by the end of the second quarter, pending hurricane-related repairs to third party pipelines.

"We acquired mature properties in this transaction that can be produced economically for several years with the benefit of our production-enhancement services," added Hall. "We also have the decommissioning assets to retire the properties at the end of their economic life. By adding these properties, we create more work for our services at a time of our choosing and at a relatively low incremental cost."

Conference Call Information

The Company will host a conference call at 10 a.m. Central Time on Thursday, April 27. The call can be accessed from Superior's website at , or by telephone at 800-763-5557. The replay telephone number is 800-642-1687 and the replay passcode is 7753584. The replay is available beginning two hours after the call and ending May 4, 2006.

Superior Energy Services, Inc. is a leading provider of specialized oilfield services and equipment focused on serving the production-related needs of oil and gas companies primarily in the Gulf of Mexico and the drilling-related needs of oil and gas companies in the Gulf of Mexico and select international market areas. The Company uses its production-related assets to enhance, maintain and extend production and, at the end of an offshore property's economic life, plug and decommission wells. Superior also owns and operates mature oil and gas properties in the Gulf of Mexico.

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.

     Terence Hall, CEO; Robert Taylor, CFO;
     Greg Rosenstein, VP of Investor Relations, 504-362-4321

                    Consolidated Statements of Operations
                  Three Months Ended March 31, 2006 and 2005
              (in thousands, except earnings per share amounts)
                         (unaudited, except as noted)

                                                    2006              2005

    Oilfield service and rental revenues          $206,998          $147,292
    Oil and gas revenues                            15,471            25,955
      Total revenues                               222,469           173,247

    Cost of oilfield services and rentals           93,255            73,613
    Cost of oil and gas sales                       14,205            12,805
      Total cost of services and sales             107,460            86,418

    Depreciation, depletion, amortization
     and accretion                                  22,915            22,397
    General and administrative expenses             37,651            32,384

    Income from operations                          54,443            32,048

    Other income (expense):
      Interest expense                              (4,844)           (5,575)
      Interest income                                  663               324
      Equity in income of affiliates                   ---               519

    Income before income taxes                      50,262            27,316

    Income taxes                                    18,094            10,107

    Net income                                     $32,168           $17,209

    Basic earnings per share                         $0.40             $0.22

    Diluted earnings per share                       $0.40             $0.22

    Weighted average common shares used
     in computing earnings per share:
        Basic                                       79,639            77,381
        Diluted                                     80,988            78,973

                         CONSOLIDATED BALANCE SHEETS
                     MARCH 31, 2006 AND DECEMBER 31, 2005
                                (in thousands)

                                               03/31/2006         12/31/2005
                                               (unaudited)         (audited)

    Current assets:
      Cash and cash equivalents                    $68,574           $54,457
      Accounts receivable - net                    212,891           196,365
      Notes receivable                               4,621             2,364
      Prepaid insurance and other                   66,335            51,116

          Total current assets                     352,421           304,302

    Property, plant and equipment - net            541,323           534,962
    Goodwill - net                                 217,532           220,064
    Notes receivable                                25,874            29,483
    Other assets - net                               9,551             8,439

          Total assets                          $1,146,701        $1,097,250


    Current liabilities:
      Accounts payable                             $37,553           $42,035
      Accrued expenses                              77,460            69,926
      Income taxes payable                          25,797            11,353
      Fair value of commodity derivative
       instruments                                   9,119            10,792
      Current portion of decommissioning
       liabilities                                  13,749            14,268
      Current maturities of long-term debt             810               810

          Total current liabilities                164,488           149,184

    Deferred income taxes                           99,671            97,987
    Decommissioning liabilities                    102,020           107,641
    Long-term debt                                 216,596           216,596
    Other long-term liabilities                      3,308             1,468

    Total stockholders' equity                     560,618           524,374

          Total liabilities and
             stockholders' equity               $1,146,701        $1,097,250

               Superior Energy Services, Inc. and Subsidiaries
                              Segment Highlights
   Three months ended March 31, 2006, December 31, 2005 and March 31, 2005
                                (in thousands)

                                                 Three months ended,
                                           March 31,  December 31,   March 31,
    Revenue                                  2006         2005         2005

    Well Intervention                      $102,073      $88,626      $80,116

    Rental tools                             77,774       68,101       52,627

    Marine                                   30,207       30,717       19,798

    Oil and Gas                              15,471        1,714       25,955

      Less: Oil and Gas Eliminations (B)     (3,056)      (1,172)      (5,249)

    Total Revenues                         $222,469     $187,986     $173,247

                                                  Three months ended,
                                           March 31,  December 31,  March 31,
    Gross Profit (A)                         2006          2005        2005

    Well Intervention                       $42,073      $36,370      $30,718

    Rental tools                             53,476       43,942       35,093

    Marine                                   18,194       18,963        7,868

    Oil and Gas                               1,266       (8,826)      13,150

    Total Gross Profit                     $115,009      $90,449      $86,829

     (A)  Gross profit is calculated by subtracting cost of services from
          revenue for each of the Company's four segments.
     (B)  Oil and gas eliminations represent products and services from the
          company's segments provided to the Oil and Gas Segment.

SOURCE Superior Energy Services, Inc.
CONTACT: Terence Hall, CEO, or Robert Taylor, CFO, or Greg Rosenstein, VP of Investor Relations, all of Superior Energy Services, Inc., +1-504-362-4321