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Superior Energy Services, Inc. Posts Record Fourth Quarter 2006 Results
Diluted EPS of $0.76 is Three Times Higher Than the Fourth Quarter of 2005 and 13% Greater Than the Third Quarter of 2006

HARVEY, La., Feb. 26 /PRNewswire-FirstCall/ -- Superior Energy Services, Inc. (NYSE: SPN) today announced record net income of $62.2 million and diluted earnings per share of $0.76, on revenues of $319.1 million, as compared to net income of $16.2 million, or $0.20 diluted earnings per share on revenues of $188.0 million for the fourth quarter of 2005. The fourth quarter of 2005 was negatively impacted by Hurricanes Katrina and Rita, which significantly curtailed Gulf of Mexico activity for most of our services during the quarter.

As compared to the third quarter of 2006, revenues increased 10%, income from operations increased 11% and earnings per share increased 13%.

    Highlights for the quarter include the following:

      *  Well Intervention revenues increased 9% from the third quarter of
         2006 primarily due to increases in domestic land activity for
         production-related services and increases in international revenues
         from the company's derrick barge charter.

      *  Rental Tool revenues increased 10% from the third quarter of 2006,
         largely due to increased rental activity in domestic land markets and
         certain international markets, including the North Sea, Venezuela and
         West Africa market areas.

      *  Marine revenues increased 11% from the third quarter of 2006 as
         dayrates increased.

      *  Oil and Gas revenues increased 6% from the third quarter of 2006 due
         mainly to increased oil and gas production.

      *  Revenues from non-Gulf of Mexico market areas were approximately
         $139 million as compared to approximately $112 million in the third
         quarter of 2006 and approximately $88 million in the fourth quarter
         of 2005.

      *  The Company's effective annual tax rate was lowered from 36.0% to
         35.5%, resulting in an effective tax rate for the fourth quarter of
         34.5%.

Terence Hall, Chairman and CEO of Superior, commented, "We are very pleased with our operating and financial performance during this seasonally challenging period. We continued to grow earnings both year-over-year and sequentially, and we believe that the combination of our expanding international and domestic land operations with our diversified portfolio of products and services provides our shareholders a cushion to fluctuations in commodity prices."

For the year ended December 31, 2006, revenues were $1,093.8 million and net income was $188.2 million or $2.32 diluted earnings per share, as compared to revenues of $735.3 million and net income of $67.9 million or $0.85 diluted earnings per share for the year ended December 31, 2005.

Well Intervention Group Segment

Fourth quarter revenues for the Well Intervention Group were a record $133.2 million, a 9% increase from the third quarter of 2006 and a 50% increase from the fourth quarter of 2005. Income from operations was $28.7 million, or 22% of segment revenue as compared to $28.8 million, or 24% of segment revenue, in the third quarter of 2006. International revenue increased as a result of a full quarter of revenue from the company's derrick barge that is currently on charter in the Asia Pacific region, as well as increases in hydraulic workover and snubbing services. Domestic land revenue increased for coiled tubing, electric line, engineering services and hydraulic workover and snubbing services. Partially offsetting these increases was lower Gulf of Mexico activity for some services due to typical seasonal weakness (weather and holidays) toward the end of the quarter. Profit margins were slightly lower due to business mix, including fewer high pressure well projects for the mechanical wireline division.

Rental Tools Segment

Revenues for the Rental Tools segment were a record $108.5 million, 10% higher than the third quarter of 2006 and a 59% increase from the fourth quarter of 2005. Income from operations was $41.7 million, or 38% of segment revenue, up from $35.1 million, or 36% of segment revenue in the third quarter of 2006. The primary factors leading to the record quarter were increased rentals of on-site accommodations, specialty tubulars, drill pipe and associated handling tools. The biggest activity increases were in the Rocky Mountains, the North Sea, Venezuela and West Africa.

Marine Segment

Superior's marine revenues were $39.9 million, an 11% increase over the third quarter of 2006 and a 30% increase from the fourth quarter of 2005. Income from operations was $19.2 million, or 48% of segment revenue, up from $16.2 million, or 45% of segment revenue in the third quarter of 2006. Average daily revenue in the fourth quarter was approximately $434,000, inclusive of subsistence revenue, as compared to $391,000 per day in the third quarter of 2006, reflecting a full quarter of higher dayrates which were put into place late in the third quarter. Average fleet utilization was 80% as compared to 78% in the third quarter of 2006 and 90% in the fourth quarter of 2005. The 200-ft. class fleet now has five liftboats following the refurbishment and addition of the Superior Intervention in October.



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

                                         Average
            Class           Liftboats    Dayrate    Utilization
           145-155'             11       $11,977       74.6%
           160'-175'             6        16,317       80.3%
           200'                  5        20,791       86.4%
           230'-245'             3        29,153       76.1%
           250'                  2        39,690       99.4%


    Oil and Gas Segment

Oil and gas revenues were $40.4 million, a 6% increase over third quarter 2006 levels and a significant improvement over the fourth quarter of 2005. Income from operations was $8.6 million, or 21% of segment revenue, up from $8.1 million, or 21% of segment revenue, in the third quarter of 2006. Fourth quarter production was approximately 772,000 barrels of oil equivalent (boe), or about 8,400 boe per day, up from approximately 739,000 boe, or 8,000 boe per day in the third quarter of 2006.

Conference Call Information

The Company will host a conference call at 10 a.m. Central Time on Tuesday, February 27, 2007. The call can be accessed from Superior's website at http://www.superiorenergy.com , or by telephone at 303-262-2211. For those who cannot listen to the live call, a telephonic replay will be available through Tuesday, March 6, 2007 and may be accessed by calling 303-590-3000 and using the pass code 11083293#. An archive of the webcast will be available after the call for a period of 60 days on http://www.superiorenergy.com .

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.



               SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
                    Consolidated Statements of Operations
           Three Months and Years Ended December 31, 2006 and 2005
              (in thousands, except earnings per share amounts)
                         (unaudited, except as noted)

                                      Three Months Ended      Years Ended
                                         December 31,         December 31,
                                        2006      2005      2006       2005
                                                                    (audited)

    Oilfield service and rental
     revenues                         $278,698  $186,272   $966,139  $656,423
    Oil and gas revenues                40,378     1,714    127,682    78,911
    Total revenues                     319,076   187,986  1,093,821   735,334

    Cost of oilfield services and
     rentals                           123,411    86,997    427,477   330,200
    Cost of oil and gas sales           17,559    10,540     70,028    45,804
    Total cost of services, rentals
     and sales                         140,970    97,537    497,505   376,004

    Depreciation, depletion,
     amortization and accretion         33,538    20,428    111,011    89,288
    General and administrative
     expenses                           46,292    37,856    168,416   140,989
    Reduction in value of assets           ---     3,750        ---     6,994
    Gain on sale of liftboats              ---       275        ---     3,544

    Income from operations              98,276    28,690    316,889   125,603

    Other income (expense):
      Interest expense, net             (6,561)   (5,332)   (22,950)  (21,862)
      Interest income                    1,135       731      4,612     2,201
      Loss on early extinguishment of
       debt                                ---       ---    (12,596)      ---
      Earnings from equity-method
       investments                       2,039         3      5,891     1,339
      Reduction in value of equity-
       method investment                   ---       ---        ---    (1,250)

    Income before income taxes          94,889    24,092    291,846   106,031

    Income taxes                        32,701     7,854    103,605    38,172

    Net income                         $62,188   $16,238   $188,241   $67,859


    Basic earnings per share             $0.78     $0.20      $2.36     $0.87

    Diluted earnings per share           $0.76     $0.20      $2.32     $0.85

    Weighted average common shares
     used
      in computing earnings per
       share:
        Basic                           79,941    79,464     79,801    78,321
        Diluted                         81,460    80,621     81,289    79,735



               SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                          DECEMBER 31, 2006 AND 2005
                                (in thousands)

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

    Current assets:
      Cash and cash equivalents                    $38,970           $54,457
      Accounts receivable, net                     303,800           196,365
      Income taxes receivable                        2,630               ---
      Current portion of notes receivable           14,824             2,364
      Prepaid insurance and other                   59,563            51,116

            Total current assets                   419,787           304,302

    Property, plant and equipment, net             804,228           534,962
    Goodwill                                       444,687           220,064
    Notes receivable                                16,137            29,483
    Equity-method investments                       64,603               953
    Intangible and other long-term
     assets, net                                   125,036             7,486

            Total assets                        $1,874,478        $1,097,250

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
      Accounts payable                             $65,451           $42,035
      Accrued expenses                             141,684            69,926
      Income taxes payable                             ---            11,353
      Fair value of commodity derivative
       instruments                                     ---            10,792
      Current portion of decommissioning
       liabilities                                  35,150            14,268
      Current maturities of long-term
       debt                                            810               810

            Total current liabilities              243,095           149,184

    Deferred income taxes                          112,011            91,899
    Decommissioning liabilities                     87,046           107,641
    Long-term debt                                 711,505           216,596
    Other long-term liabilities                     10,133             7,556

    Total stockholders' equity                     710,688           524,374

            Total liabilities and
             stockholders' equity               $1,874,478        $1,097,250



               Superior Energy Services, Inc. and Subsidiaries
                              Segment Highlights
Three months ended December 31, 2006, September 30, 2006 and December 31, 2005
                                 (Unaudited)
                                (in thousands)

                                                  Three months ended,
                                      December 31, September 30, December 31,
    Revenue                                2006         2006        2005

    Well Intervention                    $133,157    $122,205     $88,626

    Rental tools                          108,526      98,262      68,101

    Marine                                 39,944      36,013      30,717

    Oil and Gas                            40,378      38,208       1,714

      Less: Oil and Gas Eliminations (2)   (2,929)     (4,171)     (1,172)

    Total Revenues                       $319,076    $290,517    $187,986



                                                 Three months ended,
                                      December 31, September 30, December 31,
    Gross Profit (1)                       2006         2006       2005

    Well Intervention                     $55,319     $53,767    $36,370

    Rental tools                           75,935      67,476     43,942

    Marine                                 24,033      21,541     18,963

    Oil and Gas                            22,819      18,646     (8,826)

    Total Gross Profit                   $178,106    $161,430    $90,449


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

     FOR FURTHER INFORMATION CONTACT:
     Terence Hall, CEO; Robert Taylor, CFO;
     Greg Rosenstein, VP of Investor Relations, 504-362-4321