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): October 30, 2006

SUPERIOR ENERGY SERVICES, INC.

(Exact name of registrant as specified in its charter)

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

1105 Peters Road, Harvey, Louisiana (Address of principal executive offices)		70058 (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 2.02. Results of Operations and Financial Condition.

     On October 30, 2006, Superior Energy Services, Inc. issued a press release announcing its earnings for the third quarter ended September 30, 2006. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. 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 October 30, 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.

Dated: October 30, 2006

EXHIBIT INDEX

Exhibit
Number		Description
99.1		Press release issued by Superior Energy Services, Inc., dated October 30, 2006.

Exhibit 99.1
 

		1105 Peters Road Harvey, Louisiana 70058 (504) 362-4321 Fax (504) 362-4966 NYSE: SPN

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

Superior Energy Services, Inc. Posts Record Third Quarter 2006 Results
EPS increases almost five fold over the third quarter of 2005 and
42% over the second quarter of 2006

Harvey, La. — October 30, 2006 — Superior Energy Services, Inc. (NYSE: SPN) today announced record net income of $55.2 million and diluted earnings per share of $0.68, on revenues of $290.5 million, as compared to net income of $9.4 million, or $0.12 diluted earnings per share on revenues of $184.1 million for the third quarter of 2005.

As compared to the second quarter of 2006, revenues increased 11%, operating income increased 16% and earnings per share increased 42%.

Highlights for the quarter include:

•		Well Intervention revenues increased 9% from the second quarter of 2006, reflecting strong demand for production-related and plug and abandonment services.
•		Rental Tool revenues increased 13% from the second quarter of 2006, largely on international growth.
•		Marine revenues increased 6% from the second quarter of 2006, as average dayrates in all liftboat classes improved and effective utilization (utilization less idle days for inspections, maintenance and repair work) was 100%.
•		Oil and Gas revenues increased 14% from the second quarter of 2006 due mainly to increased oil and gas production.
•		Revenue from non-Gulf of Mexico markets was approximately $112 million as compared to approximately $100 million in the second quarter of 2006 and approximately $68 million in the third quarter of 2005.
•		The Derrick Barge Performance (“DB Performance”) went on a 14-month charter in late August working offshore Malaysia.

Terence Hall, Chairman and CEO of Superior, commented, “Our third quarter results were outstanding and all business units performed very well. We also made tremendous strides in executing our growth strategy during the quarter. In July, we announced multiple international contracts totaling more than $100 million as part of our international expansion initiatives. In September, we agreed to acquire Warrior Energy Services Corporation (NASDAQ: WARR) which will significantly expand our U.S. onshore operational footprint.

“Once the Warrior transaction is closed, we will have operations in virtually all major oil and gas basins in the lower 48 states and an excellent platform to drive our continued growth. Both these international and U.S. onshore activities increase our ability to cross sell services, open up additional opportunities to further export our portfolio of products and services, and expand our customer base. We believe shareholders will benefit from our expansion activities in 2007 and well beyond.”

For the nine months ended September 30, 2006, revenues were $774.7 million and net income was $126.1 million or $1.55 diluted earnings per share, as compared to revenues of $547.3 million and net income of $51.6 million or $0.65 diluted earnings per share for the nine months ended September 30, 2005.

Well Intervention Group Segment

Third quarter revenues for the Well Intervention Group were a record $122.2 million, a 9% increase from the second quarter of 2006 and a 42% increase from the third quarter of 2005. Operating income was $28.8 million, or 24% of segment revenue, up from $25.7 million, or 23% of segment revenue, in the second quarter of 2006. The biggest activity increases were in coiled tubing, engineering and project management services, well control, mechanical wireline and plug and abandonment services. These increases reflect continued high demand for production-enhancement activities, increased well abandonment work in the Gulf of Mexico and the company’s continued involvement in providing hurricane-recovery project management and services.

Rental Tools Segment

Revenues for the Rental Tools segment were a record $98.3 million, 13% higher than the second quarter of 2006 and a 59% increase from the third quarter of 2005. Operating income was $35.1 million, or 36% of segment revenue, up from $29.4 million, or 34% of segment revenue in the second quarter of 2006. The primary factors leading to the record quarter were increased rentals of on-site accommodations, stabilizers, drill collars, specialty tubulars, drill pipe and associated handling tools across all geographic markets.

Marine Segment

Superior’s marine revenues were $36.0 million, a 6% increase over the second quarter of 2006 and a 95% increase from the third quarter of 2005. Operating income was $16.2 million, or 45% of segment revenue, up from $15.3 million, or 45% of segment revenue in the second quarter of 2006. Average fleet utilization was 78% as compared to 84% in the second quarter of 2006, but average daily revenue in the third quarter was approximately $391,000, inclusive of subsistence

revenue, as compared to $373,000 per day in the second quarter of 2006, reflecting higher dayrates which were put into place during the quarter.

During the third quarter, the 145-155 ft. class and 160-175 ft. class incurred significant downtime due to shipyard days. Effective utilization, which is utilization excluding shipyard days or other idle days due to repairs and maintenance, was 100% across all liftboat classes in the third quarter, meaning no liftboat was idle for something other than inspections or repairs. This marks the second consecutive quarter that effective utilization was 100%.

Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended September 30, 2006
($ actual)

						Average
Class		Liftboats				Dayrate				Utilization
145-155’			11			$	10,856				70.2	%
160’-175’			6				14,149				69.7	%
200’			4				17,456				95.7	%
230’-245’			3				28,996				98.6	%
250’			2				36,856				82.6	%

Oil and Gas Segment
Oil and gas revenues were $38.2 million, a 14% increase over second quarter 2006 levels and a 76% improvement over the third quarter of 2005. Operating income was $8.1 million, or 21% of segment revenue, up from $5.5 million, or 16% of segment revenue, in the second quarter of 2006. Third quarter production was approximately 739,000 barrels of oil equivalent (boe), or about 8,000 boe per day, up from approximately 636,000 boe, or 7,000 boe per day in the second quarter of 2006, and approximately 427,000 boe, or about 4,600 boe per day in the third quarter of 2005. Production during the third quarter of 2005 was adversely impacted by Hurricanes Katrina and Rita.

Conference Call Information
The Company will host a conference call at 10 a.m. Central Time on Tuesday, October 31, 2006. The call can be accessed from Superior’s website at www.superiorenergy.com, or by telephone at 303-262-2194. For those who cannot listen to the live call, a telephonic replay will be available through Tuesday, November 7, 2006 and may be accessed by calling 303-590-3000 and using the pass code 11073568#. An archive of the webcast will be available after the call for a period of 60 days on 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.

# # #

Consolidated Statements of Operations
Three and Nine Months Ended September 30, 2006 and 2005
(in thousands, except earnings per share amounts)
(unaudited)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2006				2005				2006				2005
Oilfield service and rental revenues		$	252,309			$	162,337			$	687,441			$	470,151
Oil and gas revenues			38,208				21,764				87,304				77,197
Total revenues			290,517				184,101				774,745				547,348
Cost of oilfield services and rentals			109,525				90,029				304,066				243,203
Cost of oil and gas sales			19,562				11,368				52,469				35,264
Total cost of services and sales			129,087				101,397				356,535				278,467
Depreciation, depletion, amortization and accretion			28,831				22,883				77,473				68,860
General and administrative expenses			44,385				37,583				122,124				103,133
Reduction in value of assets			—				3,244				—				3,244
Gain on sale of liftboats			—				—				—				3,269
Income from operations			88,214				18,994				218,613				96,913
Other income (expense):
Interest expense			(5,989	)			(5,437	)			(16,389	)			(16,530	)
Interest income			1,255				739				3,477				1,470
Earnings from equity-method investments			2,704				558				3,852				1,336
Reduction in value of equity-method investment			—				—				—				(1,250	)
Loss on early extinguishment of debt			—				—				(12,596	)			—
Income before income taxes			86,184				14,854				196,957				81,939
Income taxes			31,026				5,496				70,904				30,318
Net income		$	55,158			$	9,358			$	126,053			$	51,621
Basic earnings per share		$	0.69			$	0.12			$	1.58			$	0.66
Diluted earnings per share		$	0.68			$	0.12			$	1.55			$	0.65
Weighted average common shares used in computing earnings per share:
Basic			79,824				78,707				79,754				77,936
Diluted			81,340				80,168				81,232				79,423

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2006 AND DECEMBER 31, 2005
(in thousands)

		9/30/2006				12/31/2005
		(unaudited)				(audited)
ASSETS
Current assets:
Cash and cash equivalents		$	111,882			$	54,457
Accounts receivable — net			269,110				196,365
Current portion of notes receivable			14,558				2,364
Prepaid insurance and other			60,651				51,116
Total current assets			456,201				304,302
Property, plant and equipment — net			661,633				534,962
Goodwill — net			224,807				220,064
Notes receivable			16,524				29,483
Equity-method investments			62,586				953
Other assets — net			12,900				7,486
Total assets		$	1,434,651			$	1,097,250
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	48,861			$	42,035
Accrued expenses			104,639				69,926
Income taxes payable			74,397				11,353
Fair value of commodity derivative instruments			—				10,792
Current portion of decommissioning liabilities			25,067				14,268
Current maturities of long-term debt			810				810
Total current liabilities			253,774				149,184
Deferred income taxes			101,125				97,987
Decommissioning liabilities			96,826				107,641
Long-term debt			311,801				216,596
Other long-term liabilities			3,617				1,468
Total stockholders’ equity			667,508				524,374
Total liabilities and stockholders’ equity		$	1,434,651			$	1,097,250

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

		Three months ended,
Revenue		September 30, 2006				June 30, 2006				September 30, 2005
Well Intervention		$	122,205			$	111,675			$	85,848
Rental tools			98,262				86,593				61,686
Marine			36,013				33,951				18,467
Oil and Gas			38,208				33,625				21,764
Less: Oil and Gas Eliminations (2)			(4,171	)			(4,085	)			(3,664	)
Total Revenues		$	290,517			$	261,759			$	184,101

		Three months ended,
Gross Profit (1)		September 30, 2006				June 30, 2006				September 30, 2005
Well Intervention		$	53,767			$	48,320			$	25,986
Rental tools			67,476				58,370				39,694
Marine			21,541				20,158				6,628
Oil and Gas			18,646				14,923				10,396
Total Gross Profit		$	161,430			$	141,771			$	82,704