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): July 30, 2007

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 July 30, 2007, Superior Energy Services, Inc. (the “Company”) issued a press release announcing its earnings for the second quarter ended June 30, 2007. 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 July 30, 2007.

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: July 31, 2007

Exhibit Index

     99.1     Press release issued by Superior Energy Services, Inc., dated July 30, 2007.

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 Corporate Development,
504-362-4321

Superior Energy Services Posts Record Second Quarter 2007 Results

Harvey, La. — July 30, 2007 — Superior Energy Services, Inc. (NYSE: SPN) today announced record net income of $70.1 million and diluted earnings per share of $0.85 on revenues of $396.8 million, as compared to net income of $38.7 million, or $0.48 diluted earnings per share on revenues of $261.8 million for the second quarter of 2006. The results also compare favorably to the first quarter of 2007, in which net income was $64.0 million and diluted earnings per share was $0.78, on revenues of $362.9 million.

Factors impacting the quarter as compared to the most recent quarter include the following:

•

Well Intervention revenues increased 8% from the first quarter of 2007 primarily due to increased hydraulic workover and snubbing activity as well as higher coiled tubing, mechanical wireline and electric line revenues.

•

Rental Tool revenues increased 7% from the first quarter of 2007, largely due to increased rentals of stabilizers, drill collars and on-site accommodations.

•

Marine revenues decreased 2% from the first quarter of 2007 due to lower utilization for some of the Company’s larger liftboats as a result of increased shipyard days.

•

Oil and Gas revenues increased 30% from the first quarter of 2007 due mainly to higher oil and gas production.

•

Revenues from non-Gulf of Mexico market areas were approximately $199 million, or 50% of total revenue, as compared to approximately $175 million, or 48% of total revenue in the first quarter of 2007 and approximately $100 million, or 38% of total revenue in the second quarter of 2006.

Terence Hall, Chairman and CEO of Superior, stated, “The diversity of our products and services combined with our expanding geographical exposure continue to be the drivers for our strong earnings growth these past several quarters. While activity increased in all of our geographic markets, the second quarter represents the first time in company history that at least 50% of our revenues were derived from market areas outside the Gulf of Mexico. Our operating units are committed to driving shareholder value by executing upon this integrated growth strategy.”

For the six months ended June 30, 2007, revenues were $759.7 million and net income was $134.1 million or $1.63 diluted earnings per share, as compared to revenues of $484.2 million and net income of $70.9 million or $0.87 diluted earnings per share for the six months ended June 30, 2006.

Well Intervention Group Segment

Second quarter revenues for the Well Intervention Group were a record $190.5 million, an 8% increase from the first quarter of 2007 and a 71% increase from the second quarter of 2006. Income from operations was $42.1 million, or 22% of segment revenue as compared to $46.1 million, or 26% of segment revenue, in the first quarter of 2007. The primary drivers for the sequential growth in revenues were higher international activity for hydraulic workover and snubbing services and increased domestic land activity for coiled tubing, mechanical wireline and electric line services. Gross profit and operating margins sequentially were adversely impacted by changes in business mix due to the completion of certain well control and engineering projects.

Rental Tools Segment

Revenues for the Rental Tools Segment were a record $123.7 million, 7% higher than the first quarter of 2007 and 43% higher than the second quarter of 2006. Income from operations was $46.6 million, or 38% of segment revenue, up from $45.1 million, or 39% of segment revenue in the first quarter of 2007. Demand increased for rentals of stabilizers, drill collars, connecting iron and on-site accommodations. The operating margin was slightly lower due to business mix.

Marine Segment

Superior’s marine revenues were $35.2 million, a 2% decrease from the first quarter of 2007 and a 4% increase from the second quarter of 2006. Income from operations was $15.2 million, or 43% of segment revenue, down from $16.5 million, or 46% of segment revenue in the first quarter of 2007. Average daily revenue in the second quarter was approximately $386,000, inclusive of subsistence revenue, as compared to $399,000 per day in the first quarter of 2007. Average fleet utilization was 77% as compared to 74% in the first quarter of 2007 and 83% in the second quarter of 2006. However, utilization for the 245-ft. class and 250-ft. class liftboats was lower due to additional shipyard days for inspections and maintenance.

Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended June 30, 2007
($ actual)

						Average
Class		Liftboats				Dayrate				Utilization
145’-155’			11				$10,469				74.3	%
160’-175’			6				14,482				70.5	%
200’			5				20,166				91.7	%
230’-245’			3				27,589				85.0	%
250’			2				39,463				64.8	%

Oil and Gas Segment

Oil and gas revenues were $48.2 million, a 30% increase from first quarter 2007 levels and a 43% increase over the second quarter of 2006. Income from operations was $11.9 million, or 25% of segment revenue, up from $5.1 million, or 14% of segment revenue, in the first quarter of 2007. Second quarter production was approximately 875,000 barrels of oil equivalent (boe), or about 9,600 boe per day, up from approximately 711,000 boe, or 7,900 boe per day in the first quarter of 2007. Production increased during the quarter due to a successful sidetrack drilling operation.

Conference Call Information

The Company will host a conference call at 10 a.m. Central Time on Tuesday, July 31, 2007. The call can be accessed from Superior’s website at www.superiorenergy.com, or by telephone at 303-262-2175. For those who cannot listen to the live call, a telephonic replay will be available through Tuesday, August 7, 2007 and may be accessed by calling 303-590-3000 and using the pass code 11093868#. 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. serves the drilling-related needs of oil and gas companies primarily through its rental tools segment and the production-related needs of oil and gas companies through its well intervention, rental tools and marine segments. The Company uses its production-related assets to enhance, maintain and extend existing production and, at the end of a property’s economic life, plug and abandon wells and decommission platforms and structures. 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 and Six Months Ended June 30, 2007 and 2006
(in thousands, except earnings per share amounts)
(unaudited)

		Three Months Ended								The Six Months Ended
		June 30,								June 30,
		2007				2006				2007				2006
Oilfield service and rental revenues		$	348,589			$	228,134			$	674,484			$	435,132
Oil and gas revenues			48,164				33,625				85,193				49,096
Total revenues			396,753				261,759				759,677				484,228
Cost of oilfield services and rentals			162,973				101,286				305,402				194,541
Cost of oil and gas sales			18,833				18,702				36,891				32,907
Total cost of services, rentals and sales			181,806				119,988				342,293				227,448
Depreciation, depletion, amortization and accretion			45,242				25,727				84,086				48,642
General and administrative expenses			53,824				40,088				104,683				77,739
Income from operations			115,881				75,956				228,615				130,399
Other income (expense):
Interest expense, net			(8,463	)			(5,556	)			(16,741	)			(10,400	)
Interest income			929				1,559				1,508				2,222
Loss on early extinguishment of debt			—				(12,596	)			—				(12,596	)
Earnings (losses) from equity-method investments			1,164				1,148				(3,842	)			1,148
Income before income taxes			109,511				60,511				209,540				110,773
Income taxes			39,424				21,784				75,434				39,878
Net income		$	70,087			$	38,727			$	134,106			$	70,895
Basic earnings per share		$	0.86			$	0.49			$	1.66			$	0.89
Diluted earnings per share		$	0.85			$	0.48			$	1.63			$	0.87
Weighted average common shares used in computing earnings per share:
Basic			81,047				79,798				80,841				79,719
Diluted			82,562				81,324				82,379				81,177

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2007 AND DECEMBER 31, 2006
(in thousands)

		6/30/2007				12/31/2006
		(unaudited)				(audited)
ASSETS
Current assets:
Cash and cash equivalents		$	36,529			$	38,970
Accounts receivable, net			346,200				303,800
Income taxes receivable			—				2,630
Current portion of notes receivable			15,254				14,824
Prepaid insurance and other			47,139				59,563
Total current assets			445,122				419,787
Property, plant and equipment, net			958,915				804,228
Goodwill			482,798				444,687
Notes receivable			16,259				16,137
Equity-method investments			60,241				64,603
Intangible and other long-term assets, net			134,683				125,036
Total assets		$	2,098,018			$	1,874,478
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	75,456.00			$	65,451
Accrued expenses			139,902				141,684
Income taxes payable			8,857				—
Current portion of decommissioning liabilities			36,504				35,150
Current maturities of long-term debt			810				810
Total current liabilities			261,529				243,095
Deferred income taxes			122,311				112,011
Decommissioning liabilities			86,787				87,046
Long-term debt			746,324				711,505
Other long-term liabilities			13,989				10,133
Total stockholders’ equity			867,078				710,688
Total liabilities and stockholders’ equity		$	2,098,018			$	1,874,478

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Segment Highlights
Three months ended June 30, 2007, March 31, 2007 and June 30, 2006
(Unaudited)
(in thousands)

		Three months ended,
		June 30,				March 31,				June 30,
		2007				2007				2006
Revenue
Well Intervention		$	190,542			$	176,931			$	111,675
Rental tools			123,736				116,180				86,593
Marine			35,162				35,866				33,951
Oil and Gas			48,164				37,029				33,625
Less: Oil and Gas Eliminations (2)			(851	)			(3,082	)			(4,085	)
Total Revenues		$	396,753			$	362,924			$	261,759

		Three months ended,
		June 30,				March 31,				June 30,
		2007				2007				2006
Gross Profit (1)
Well Intervention		$	81,093			$	81,424			$	48,320
Rental tools			84,718				80,664				58,370
Marine			19,805				21,377				20,158
Oil and Gas			29,331				18,972				14,923
Total Gross Profit		$	214,947			$	202,437			$	141,771

(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.