UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 12, 2006

SUPERIOR ENERGY SERVICES, INC.

(Exact name of registrant as specified in its charter)

Delaware		0-20310		75-2379388
(State or other jurisdiction)		(Commission File Number)		(IRS Employer Identification No.)

1105 Peters Road, Harvey, Louisiana			70058
(Address of principal executive offices)		(Zip Code)

(504) 362-4321
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 7.01.		Regulation FD Disclosure.

     On January 12, 2006, Superior Energy Services, Inc. issued a press release announcing its initial capital expenditures plans for 2006. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The description of the press release is qualified in its entirety by reference to such Exhibit.

     In accordance with General Instruction B.2. of Form 8-K, the information presented herein shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

Item 9.01.		Financial Statements and Exhibits.

(c)		Exhibits.
99.1		Press release issued by Superior Energy Services, Inc., dated January 12, 2006.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		SUPERIOR ENERGY SERVICES, INC.
		By:		/s/ Kenneth L. Blanchard
				Kenneth L. Blanchard
				President and Chief Operating Officer
Dated: January 12, 2006

Exhibit 99.1

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

Superior Energy Services, Inc. Announces 2006 Initial Capital Expenditures Plans

(Harvey, La., Thursday, January 12, 2006) — Superior Energy Services announced today that its Board of Directors has approved a record-high initial capital expenditures budget of approximately $214 million for 2006. The capital expenditures budget is expected to be funded entirely by internally generated cash flows. Some of the significant capital expenditures are as follows:

	•		Approximately $56 million for the continued expansion of well intervention services and rental tools to markets outside the Gulf of Mexico, including the Barnett Shale, Fayetteville Shale, Oklahoma and Rocky Mountains, as well as the North Sea, West Africa and Middle East market areas.
	•		Approximately $27 million for further decommissioning and abandonment market penetration, including $20 million for completing construction of the previously announced 880-ton derrick barge, and $7 million for an anchor handling tug for use in conjunction with the derrick barge. The ABS-class and SOLAS-rated barge will accommodate 200 people and is expected to be delivered by September 2006.
	•		Approximately $19 million for expected growth in the Gulf of Mexico well intervention, rental tools and marine markets. These expenditures include approximately $7 million for the refurbishment of a 200-ft.class liftboat, expected to be in service in June 2006.
	•		Approximately $20 million in maintenance capital expenditures, primarily for rental tools and well intervention assets in all markets.
	•		Approximately $63 million in expansionary capital expenditures for the addition of new reserves on currently owned oil and gas properties, with most, if not all, projects employing the company’s products and services. Several of these projects were expected to start and/or be completed in 2005, but were deferred due to hurricanes.

Chairman and CEO Terry Hall Comments:
“Our capital expenditures program is designed to fulfill several long-term objectives: (1) aggressively increase our geographic diversification on shore in the U.S. and in select international markets; (2) leverage our production-related asset base to extend our oil and gas reserves; and (3) deliver long-term growth in earnings, cash flows and returns on capital. We believe these expenditures will allow us to leverage the strong fundamentals in our business by increasing our exposure to the rapidly growing land and international markets for rentals and

well intervention services, and increasing our exposure to the decommissioning market worldwide. The rental tools business continues to be a high growth business that we can readily export to new market areas with minimal risk. Typically, we establish a presence, build relationships and then follow up with well intervention services. We are successfully employing this strategy in the Barnett Shale, south Texas, Rocky Mountains, Australia, Trinidad and Venezuela. Given the timing of these anticipated expenditures, we expect to generate significant returns in 2007 and beyond.”

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.

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