Investors News Release Details

Superior Energy Services Announces Second Quarter 2023 Results and Conference Call

August 2, 2023

HOUSTON, Aug. 02, 2023 (GLOBE NEWSWIRE) --

 

 

Houston, August 2, 2023 – Superior Energy Services, Inc. (the “Company”) filed its Form 10-Q for the period ending June 30, 2023. In accordance with the Company’s Shareholders Agreement, it will host a conference call with shareholders on August 3, 2023.

For the second quarter of 2023, the Company reported net income from continuing operations of $67.4 million, or $3.35 per diluted share, and revenue of $244.5 million. This compares to net income from continuing operations of $29.9 million or $1.49 per diluted share, and revenue of $220.1 million, for the first quarter of 2023. Net income from continuing operations for the second quarter of 2023 was favorably impacted by approximately $14.9 million in income tax benefits arising from reversals of uncertain tax positions related to foreign jurisdictions and adjustments to valuation allowances on foreign operations. Net income from continuing operations for the first quarter of 2023 was unfavorably impacted by the elimination of net operating losses of approximately $7.6 million.

The Company’s Adjusted EBITDA (a non-GAAP measure defined on page 4) was $92.5 million for the second quarter of 2023 compared to $72.8 million in the first quarter of 2023. Refer to pages 11 and 12 for a Reconciliation of Adjusted EBITDA to GAAP results.

Brian Moore, Chief Executive Officer, commented, “I’m pleased to report Superior’s strong financial performance for the second quarter of 2023 with Adjusted EBITDA of $92.5 million compared to $72.8 million in the first quarter of 2023. These results reflect our ongoing strategy to focus our sustainable and strong brand’s participation in the strengthening Gulf of Mexico and international offshore markets. With continued confidence in the longer-term outlook for global oil prices, our customers choose Superior for our responsive people, capabilities and desirable assets as they pursue evermore technically challenging targets in offshore markets. Our performance is also the culmination of consistent and disciplined capital investments over time, fleet optimization, and an engineering approach in the early stages of well planning with our customers, especially with our premium drill pipe business, enabling Superior to continue to deliver outstanding performance, both operationally and financially, in the markets where we are focused. By leveraging our strengths, we have positioned ourselves to take advantage of both near-term and longer-term market opportunities and will continue our strategy focused on free cash flow and shareholder returns.”

 

Second Quarter 2023 Geographic Breakdown

U.S. land revenue was $50.5 million in the second quarter of 2023, a 2% decrease compared to revenue of $51.5 million in the first quarter of 2023 and was driven primarily by modest declines in our bottom hole assembly accessory rentals.

U.S. offshore revenue was $60.9 million in the second quarter of 2023, an increase of 17% compared to revenue of $52.0 million in the first quarter of 2023. This change was primarily driven by our completion services business unit with some additional increases from our rental businesses.

International revenue was $133.0 million in the second quarter of 2023, an increase of 14% compared to revenue of $116.7 million in the first quarter of 2023 as rentals for premium drill pipe increased, as well as activity from our well control service line in the Well Services segment.

Second Quarter 2023 Segment Reporting

The Rentals segment revenue in the second quarter of 2023 was $112.4 million, a 3% increase compared to revenue of $108.8 million in the first quarter of 2023, driven by increases in international activity.  Adjusted EBITDA was $70.7 million, an 8% increase over the first quarter of 2023. Adjusted EBITDA Margin (a non-GAAP measure defined on page 4) was 63%, a 5% increase from the first quarter of 2023. The increase in both Adjusted EBITDA and Adjusted EBITDA Margin for the second quarter of 2023 was driven by improved results from our premium drill pipe product line in international markets.

The Well Services segment revenue in the second quarter of 2023 was $132.1 million, a 19% increase compared to revenue of $111.3 million in the first quarter of 2023. Adjusted EBITDA for the second quarter of 2023 was $34.6 million with an Adjusted EBITDA Margin of 26%, as compared to Adjusted EBITDA of $19.9 million with an Adjusted EBITDA Margin of 18% in the first quarter of 2023. The increase in both Adjusted EBITDA and Adjusted EBITDA Margin for the second quarter of 2023 was driven by better than anticipated results from our well control and completion services business units.

Liquidity

As of June 30, 2023, the Company had cash, cash equivalents, and restricted cash of approximately $410.4 million and the availability remaining under our ABL Credit Facility was approximately $85.3 million, assuming continued compliance with the covenants under our ABL Credit Facility. We had no balances outstanding under the Credit Facility on June 30, 2023.

Total cash proceeds received during the second quarter of 2023 from the sale of non-core assets were $3.6 million compared to total cash proceeds received during the first quarter of 2023 of $11.6 million.

The Company remains focused on cash conversion. Free Cash Flow (a non-GAAP measure defined on page 4) for the second quarter of 2023 totaled $2.1 million compared to $55.2 million for the first quarter of 2023. Free Cash Flow during the second quarter of 2023 was negatively impacted by our payment of the $27.1 million use tax assessment levied against us by the Washington State Department of Revenue related to a discontinued business unit.  Additionally, we incurred approximately $2.9 million in decommissioning costs associated with our oil and gas platform in the Gulf of Mexico.  Refer to page 8 for a reconciliation of Free Cash Flow to Net Cash from Operating Activities.

Second quarter capital expenditures were $27.5 million.  The Company expects total capital expenditures for 2023 to be approximately $80 to $90 million. Approximately 80% of total 2023 capital expenditures are targeted for the replacement of existing assets.  Of the total capital expenditures, approximately 75% is expected to be invested in the Rentals segment.

2023 Guidance

In looking at full year guidance a couple of factors are important to note. First, as noted in our earlier commentary, our increase in earnings for the second quarter of 2023 was largely driven by our Well Services segment, which tends to be project oriented and more uneven than our Rentals segment.  Secondly, earnings for the second half of 2023 are expected to be more heavily weighted to the fourth quarter of 2023, as similar to last year a significant amount of completion deliveries are scheduled for December 2023.  Based on this, the Company’s full year 2023 guidance will continue to have a wide range. We currently expect revenue to come in at a range of $870 million to $930 million with Adjusted EBITDA in a range of $300 million to $340 million for 2023.  The Company will provide updated guidance in our third quarter 2023 earnings release as we gain further clarity on the timing of activity.

Conference Call Information

The Company’s management team will host a conference call on Thursday, August 3, 2023, at 10:00 a.m. Eastern Time. The call will be available via live webcast in the “Events” section at ir.superiorenergy.com. To access via phone, participants can register for the call here,  where they will be provided a phone number and access code. The call will be available for replay until August 3, 2024 on Superior’s website at ir.superiorenergy.com. If you are a shareholder and would like to submit a question, please email your question beforehand to Jamie Spexarth at ir@superiorenergy.com.

About Superior Energy Services

Superior Energy Services serves the drilling, completion and production-related needs of oil and gas companies worldwide through a diversified portfolio of specialized oilfield services and equipment that are used throughout the economic life cycle of oil and gas wells.  For more information, visit: www.superiorenergy.com.

 

Non-GAAP Financial Measures

To supplement Superior’s consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company also uses Adjusted EBITDA and Adjusted EBITDA Margin. Management uses Adjusted EBITDA and Adjusted EBITDA Margin internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The Company also believes these non-GAAP measures provide investors useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. Non-GAAP financial measures are not recognized measures for financial statement presentation under U.S. GAAP and do not have standardized meanings and may not be comparable to similar measures presented by other public companies. Adjusted EBITDA and Adjusted EBITDA Margin should be considered as supplements to, and not as substitutes for, or superior to, the corresponding measures calculated in accordance with GAAP. We define Adjusted EBITDA as net income (loss) before net interest expense, income tax expense (benefit) and depreciation, amortization, accretion and depletion, adjusted for reduction in value of assets and other charges, which management does not consider representative of our ongoing operations. We define Adjusted EBITDA Margin as Adjusted EBITDA by segment as a percentage of segment revenues.  For a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure, please see the tables under “―Superior Energy Services, Inc. and Subsidiaries Reconciliation of Adjusted EBITDA” included on pages 11 and 12 of this press release.

Free Cash Flow is considered a non-GAAP financial measure under the SEC’s rules. Management believes, however, that Free Cash Flow is an important financial measure for use in evaluating the Company’s financial performance, as it measures our ability to generate additional cash from our business operations. Free Cash Flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of Free Cash Flow is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Therefore, we believe it is important to view Free Cash Flow as supplemental to our entire Statement of Cash Flows.

The Company is unable to provide a reconciliation of the forward-looking non-GAAP financial measure, Adjusted EBITDA, contained in this press release to its most directly comparable GAAP financial measure, net income, as the information necessary for a quantitative reconciliation of the forward-looking non-GAAP financial measure to its respective most directly comparable GAAP financial measure is not (and was not, when prepared) available to the Company without unreasonable efforts due to the inherent difficulty and impracticability of predicting certain amounts required by GAAP with a reasonable degree of accuracy. Net income includes the impact of depreciation, income taxes and certain other items that impact comparability between periods, which may be significant and are difficult to project with a reasonable degree of accuracy. In addition, we believe such reconciliation could imply a degree of precision that might be confusing or misleading to investors. The probable significance of providing this forward-looking non-GAAP financial measure without the directly comparable GAAP financial measure is that such GAAP financial measure may be materially different from the corresponding non-GAAP financial measure.

 

Forward-Looking Statements

This press release contains, and future oral or written statements or press releases by the Company and its management may contain, certain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Generally, the words “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks” and “estimates,” variations of such words and similar expressions identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements other than statements of historical fact regarding the Company’s financial position, financial performance, depreciation expense, liquidity, strategic alternatives (including dispositions, acquisitions, and the timing thereof), market outlook, future capital needs, capital allocation plans, business strategies and other plans and objectives of our management for future operations and activities are forward-looking statements. These statements are based on certain assumptions and analyses made by the Company’s management in light of its experience and prevailing circumstances on the date such statements are made. Such forward-looking statements, and the assumptions on which they are based, are inherently speculative and are subject to a number of risks and uncertainties, including but not limited to conditions in the oil and gas industry and the availability of third party buyers or other strategic partners, that could cause the Company’s actual results to differ materially from such statements. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside the control of the Company, which could cause actual results to differ materially from such statements.

While the Company believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business.

These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties described in the Company’s Form 10-K for the year ended December 31, 2022 and Form 10-Q’s for the quarters ended March 31 and June 30, 2023 and those set forth from time to time in the Company’s other periodic filings with the Securities and Exchange Commission, which are available at www.superiorenergy.com. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(in thousands, unaudited)  
                               
    Three Months Ended     Six Months Ended  
    June 30,     March 31,     June 30,     June 30,     June 30,  
    2023     2023     2022     2023     2022  
 Revenues                              
 Rentals   $ 112,411     $ 108,821     $ 103,729     $ 221,232     $ 192,485  
 Well Services     132,062       111,316       120,911       243,378       230,085  
 Total revenues     244,473       220,137       224,640       464,610       422,570  
                               
 Cost of revenues                              
 Rentals     35,021       36,468       35,860       71,489       67,612  
 Well Services     85,733       81,253       85,108       166,986       165,736  
 Total cost of revenues     120,754       117,721       120,968       238,475       233,348  
                               
 Depreciation, depletion, amortization and accretion     20,621       20,139       23,346       40,760       57,431  
 General and administrative expenses     31,177       30,990       30,231       62,167       62,249  
 Restructuring expenses     -       1,983       1,663       1,983       3,218  
 Other (gains) and losses, net     47       (1,398 )     (18,013 )     (1,351 )     (16,866 )
 Income from operations     71,874       50,702       66,445       122,576       83,190  
                               
 Other income (expense):                              
 Interest income, net     6,513       5,439       1,459       11,952       2,638  
 Other income (expense)     (1,836 )     (2,152 )     (13,471 )     (3,988 )     476  
 Income from continuing operations before income taxes     76,551       53,989       54,433       130,540       86,304  
 Income tax expense     (9,147 )     (24,065 )     (10,871 )     (33,212 )     (18,755 )
 Net income from continuing operations     67,404       29,924       43,562       97,328       67,549  
 Income (loss) from discontinued operations, net of income tax     (9 )     289       (1,944 )     280       (205 )
 Net income   $ 67,395     $ 30,213     $ 41,618     $ 97,608     $ 67,344  
                               
 Income (loss) per share - basic:                              
 Net income from continuing operations   $ 3.35     $ 1.49     $ 2.18     $ 4.84     $ 3.38  
 Income (loss) from discontinued operations, net of income tax     -       0.01       (0.10 )     0.01       (0.01 )
 Net income   $ 3.35     $ 1.50     $ 2.08     $ 4.85     $ 3.37  
                               
 Income (loss) per share - diluted:                              
 Net income from continuing operations   $ 3.35     $ 1.49     $ 2.17     $ 4.83     $ 3.37  
 Income (loss) from discontinued operations, net of income tax     -       0.01       (0.10 )     0.02       (0.01 )
 Net income   $ 3.35     $ 1.50     $ 2.07     $ 4.85     $ 3.36  
                               
 Weighted-average shares outstanding                              
 Basic     20,126       20,107       20,024       20,116       20,011  
 Diluted     20,143       20,131       20,076       20,136       20,065  

 

SUPERIOR ENERGY SERVICES, INC.  
CONSOLIDATED BALANCE SHEETS  
(in thousands, unaudited)  
             
    June 30,     December 31,  
    2023     2022  
 ASSETS            
 Current assets            
 Cash and cash equivalents   $ 330,129     $ 258,999  
 Accounts receivable, net     249,479       249,808  
 Income taxes receivable     4,541       6,665  
 Prepaid expenses     19,291       17,299  
 Inventory     82,897       65,587  
 Other current assets     6,104       6,276  
 Assets held for sale     1,369       11,978  
 Total current assets     693,810       616,612  
 Property, plant and equipment, net     298,567       282,376  
 Note receivable     71,581       69,679  
 Restricted cash     80,318       80,108  
 Deferred tax assets     73,362       97,492  
 Other assets, net     42,978       44,745  
 Total assets   $ 1,260,616     $ 1,191,012  
              
 LIABILITIES AND STOCKHOLDERS' EQUITY            
 Current liabilities:            
 Accounts payable   $ 58,865     $ 31,570  
 Accrued expenses     100,416       116,575  
 Income taxes payable     11,687       11,682  
 Decommissioning liability     26,329       9,770  
 Liabilities held for sale     3,090       3,349  
 Total current liabilities     200,387       172,946  
 Decommissioning liability     133,591       150,901  
 Other liabilities     45,186       84,281  
 Total liabilities     379,164       408,128  
 Total stockholders' equity     881,452       782,884  
 Total liabilities and stockholders' equity   $ 1,260,616     $ 1,191,012  

 

SUPERIOR ENERGY SERVICES, INC.  
STATEMENTS OF CASH FLOWS  
(in thousands, unaudited)  
                               
    Three Months Ended     Six Months Ended  
    June 30,     March 31,     June 30,     June 30,     June 30,  
    2023     2023     2022     2023     2022  
                               
 Cash flows from operating activities                              
 Net income   $ 67,395     $ 30,213     $ 41,618     $ 97,608     $ 67,344  
 Adjustments to reconcile net income to net cash from operating activities     -       -       -              
 Depreciation, depletion, amortization and accretion     20,621       20,139       23,346       40,760       57,431  
 Other non-cash items     8,392       14,399       (5,107 )     22,791       (22,358 )
 Washington State Tax Payment     (27,068 )     -       -       (27,068 )     -  
 Decommissioning Costs     (2,878 )     -       -       (2,878 )     -  
 Changes in operating assets and liabilities     (36,780 )     8,502       (26,703 )     (28,278 )     (34,173 )
 Net cash from operating activities     29,682       73,253       33,154       102,935       68,244  
                               
 Cash flows from investing activities                              
 Payments for capital expenditures     (27,540 )     (18,086 )     (9,217 )     (45,626 )     (20,514 )
 Proceeds from sales of assets     3,578       11,569       1,804       15,147       15,183  
 Proceeds from sales of equity securities     -       -       6,001       -       13,366  
 Net cash from investing activities     (23,962 )     (6,517 )     (1,412 )     (30,479 )     8,035  
                               
 Cash flows from financing activities                              
 Distributions to Shareholders     -       -       -       -       -  
 Other     -       (1,116 )     -       (1,116 )     -  
 Net cash from financing activities     -       (1,116 )     -       (1,116 )     -  
                               
 Net change in cash, cash equivalents and restricted cash     5,720       65,620       31,742       71,340       76,279  
 Cash, cash equivalents and restricted cash at beginning of period     404,727       339,107       439,072       339,107       394,535  
 Cash, cash equivalents and restricted cash at end of period   $ 410,447     $ 404,727     $ 470,814     $ 410,447     $ 470,814  
                               
 Reconciliation of Free Cash Flow                              
 Net cash from operating activities   $ 29,682     $ 73,253     $ 33,154     $ 102,935     $ 68,244  
 Payments for capital expenditures     (27,540 )     (18,086 )     (9,217 )     (45,626 )     (20,514 )
 Free Cash Flow   $ 2,142     $ 55,167     $ 23,937     $ 57,309     $ 47,730  

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES  
REVENUE BY GEOGRAPHIC REGION BY SEGMENT  
(in thousands, unaudited)  
                               
    Three Months Ended     Six Months Ended  
    June 30,     March 31,     June 30,     June 30,     June 30,  
    2023     2023       2022     2023       2022  
 U.S. land                              
 Rentals   $ 44,730     $ 45,133     $ 43,791     $ 89,863     $ 77,753  
 Well Services     5,806       6,355       4,151       12,161       8,699  
 Total U.S. land     50,536       51,488       47,942       102,024       86,452  
                               
 U.S. offshore                              
 Rentals     37,516       35,670       36,331       73,186       69,084  
 Well Services     23,405       16,321       32,569       39,726       60,890  
 Total U.S. offshore     60,921       51,991       68,900       112,912       129,974  
                               
 International                              
 Rentals     30,165     $ 28,018       23,607       58,183       45,648  
 Well Services     102,851       88,640       84,191       191,491       160,496  
 Total International     133,016       116,658       107,798       249,674       206,144  
 Total Revenues   $ 244,473     $ 220,137     $ 224,640     $ 464,610     $ 422,570  

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES  
SEGMENT HIGHLIGHTS  
(in thousands, unaudited)  
                               
    Three Months Ended     Six Months Ended  
    June 30,     March 31,     June 30,     June 30,     June 30,  
    2023     2023     2022     2023     2022  
 Revenues                              
 Rentals   $ 112,411     $ 108,821     $ 103,729     $ 221,232     $ 192,485  
 Well Services     132,062       111,316       120,911       243,378       230,085  
 Total Revenues   $ 244,473     $ 220,137     $ 224,640     $ 464,610     $ 422,570  
                               
 Income from Operations                              
 Rentals   $ 58,106     $ 53,014     $ 48,559     $ 111,120     $ 77,344  
 Well Services     27,425       12,854       33,147       40,279       37,282  
 Corporate and other     (13,657 )     (15,166 )     (15,261 )     (28,823 )     (31,436 )
 Total Income from Operations   $ 71,874     $ 50,702     $ 66,445     $ 122,576     $ 83,190  
                               
 Adjusted EBITDA                              
 Rentals   $ 70,659     $ 65,182     $ 61,115     $ 135,841     $ 110,889  
 Well Services     34,629       19,931       25,400       54,560       41,902  
 Corporate and other     (12,793 )     (12,289 )     (12,470 )     (25,082 )     (25,722 )
 Total Adjusted EBITDA   $ 92,495     $ 72,824     $ 74,045     $ 165,319     $ 127,069  
                               
 Adjusted EBITDA Margin                              
 Rentals     63 %     60 %     59 %     61 %     58 %
 Well Services     26 %     18 %     21 %     22 %     18 %
 Corporate and other   n/a     n/a     n/a     n/a     n/a  
 Total Adjusted EBITDA Margin     38 %     33 %     33 %     36 %     30 %
                               
 Adjusted EBITDA is a Non-GAAP measure.  See Non-GAAP Measures for our definition of Adjusted EBITDA.  

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES    
RECONCILIATION OF ADJUSTED EBITDA (Non-GAAP)    
(in thousands, unaudited)    
                                 
    Three Months Ended     Six Months ended    
    June 30,     March 31,     June 30,     June 30,     June 30,    
    2023     2023     2022     2023     2022    
 Net income from continuing operations   $ 67,404     $ 29,924     $ 43,562     $ 97,328     $ 67,549    
Depreciation, depletion, amortization and accretion     20,621       20,139       23,346       40,760       57,431    
Interest income, net     (6,513 )     (5,439 )     (1,459 )     (11,952 )     (2,638 )  
Income tax expense     9,147       24,065       10,871       33,212       18,755    
Restructuring expenses     -       1,983       1,663       1,983       3,218    
Other (income) expense, net     1,836       2,152       13,471       3,988       (476 )  
     Other adjustments (1)     -       -       (17,409 )     -       (16,770 )  
Adjusted EBITDA   $ 92,495     $ 72,824     $ 74,045     $ 165,319     $ 127,069    
                                 
 Adjusted EBITDA is a Non-GAAP measure.  See Non-GAAP Measures for our definition of Adjusted EBITDA.    
                                 
(1) Adjustments for exit activities related to SES Energy Services India Pvt. Ltd. and the residual gain from revisions to our estimated decommissioning liability    

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES  
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT  
(in thousands, unaudited)  
                                 
    Three Months Ended     Six Months Ended  
    June 30,     March 31,     June 30,     June 30,       June 30,  
    2023     2023     2022     2023       2022  
 Rentals                                
 Income from operations   $ 58,106     $ 53,014     $ 48,559     $ 111,120       $ 77,344  
 Depreciation, depletion, amortization and accretion     12,553       12,168       12,556       24,721         33,545  
 Adjusted EBITDA   $ 70,659     $ 65,182     $ 61,115     $ 135,841       $ 110,889  
                                 
 Wells Services                                
 Income from operations   $ 27,425     $ 12,854     $ 33,147     $ 40,279       $ 37,282  
 Depreciation, depletion, amortization and accretion     7,204       7,077       9,662       14,281         21,390  
     Other adjustments (1)     -       -       (17,409 )     -         (16,770 )
 Adjusted EBITDA   $ 34,629     $ 19,931     $ 25,400     $ 54,560       $ 41,902  
                                 
 Corporate                                
 Loss from operations   $ (13,657 )   $ (15,166 )     (15,261 )   $ (28,823 ) $ -   $ (31,436 )
 Depreciation, depletion, amortization and accretion     864       894       1,128       1,758     -     2,496  
 Restructuring expenses     -       1,983       1,663       1,983     -     3,218  
 Adjusted EBITDA   $ (12,793 )   $ (12,289 )   $ (12,470 )   $ (25,082 )     $ (25,722 )
                                 
 Total                                
 Income from operations   $ 71,874     $ 50,702     $ 66,445     $ 122,576       $ 83,190  
 Depreciation, depletion, amortization and accretion     20,621       20,139       23,346       40,760         57,431  
 Restructuring expenses     -       1,983       1,663       1,983         3,218  
     Other adjustments (1)     -       -       (17,409 )     -         (16,770 )
 Adjusted EBITDA   $ 92,495     $ 72,824     $ 74,045     $ 165,319       $ 127,069  
                                 
 Adjusted EBITDA is a Non-GAAP measure.  See Non-GAAP Measures for our definition of Adjusted EBITDA.  
                                 
(1) Adjustments for exit activities related to SES Energy Services India Pvt. Ltd. and the residual gain from revisions to our estimated decommissioning liability  

 FOR FURTHER INFORMATION CONTACT:
Jamie Spexarth, Chief Financial Officer
1001 Louisiana St., Suite 2900
Houston, TX 77002
Investor Relations, ir@superiorenergy.com, (713) 654-2200