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

SUPERIOR ENERGY SERVICES, INC.

(Exact name of registrant as specified in its charter)

Delaware		001-34037		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 2.02. Results of Operations and Financial Condition.

     On July 30, 2008, Superior Energy Services, Inc. (the “Company”) issued a press release announcing its earnings for the second quarter ended June 30, 2008. 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 in this Item 2.02 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, 2008.

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/ Robert S. Taylor
				Robert S. Taylor
				Chief Financial Officer

Dated: July 31, 2008

		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 Announces Second Quarter 2008 Results
Results Include All-Time High Quarterly Revenue from International Markets

Harvey, La. – July 30, 2008 — Superior Energy Services, Inc. (NYSE: SPN) today announced net income of $73.9 million and diluted earnings per share of $0.89 on revenues of $457.7 million for the second quarter of 2008, as compared to net income of $70.1 million, or $0.85 diluted earnings per share on revenues of $396.8 million for the second quarter of 2007. Excluding a gain on sale of a business and non-cash, unrealized losses from hedging contracts impacting the Company’s earnings (losses) from equity method investments, adjusted net income for the second quarter of 2008 was $84.7 million, or $1.02 diluted earnings per share.

Operating factors impacting the quarter as compared to the most recent quarter (first quarter 2008) include the following:

•		Well Intervention revenue increased 27% primarily due to increases in demand for production-related services such as electric line, coiled tubing and pumping and stimulation as well as a full quarter contribution from work on the previously announced $750 million wreck removal project.
•		Rental Tool revenue increased 3% largely due to increased rentals of drilling-related tools in the Gulf of Mexico and certain international market areas.
•		Marine revenues increased 13% due to higher utilization across most liftboat classes reflecting a seasonal increase in Gulf of Mexico activity.
•		International revenue increased 13% to a quarterly record of $86 million due to increases in well control work and rentals of drill pipe, specialty tubulars and stabilization equipment.
•		Gulf of Mexico revenue increased 8% to $246 million as a result of increases as revenue grew in all three segments. Domestic land revenue decreased 9% to $126 million due to the completion of certain well intervention and rental tools projects. Domestic land revenue from core well intervention services such as electric line and coiled tubing increased over the most recent quarter.

Terence Hall, Chairman and CEO of Superior, stated, “We grew our quarterly revenue and operating income (excluding adjustments) to all-time high levels while replacing the earnings from our divested oil and gas business with earnings from our core oilfield service businesses. Higher demand for existing products and services as well as the continued execution of our geographic diversification strategy drove our performance. This resulted in significant growth in our well intervention and rental tools segments sequentially and year-over-year. In addition, our quarterly international revenue was at an all-time high as we expanded into new markets in Latin America and Europe. The near-term outlook is extremely positive given the trend of increasing demand we experienced during the second quarter coupled with anticipated growth in domestic land drilling activity and capital spending by our customers in the second half of the year.”

For the six months ended June 30, 2008, revenue was $899.0 million and net income was $176.0 million or $2.12 diluted earnings per share, as compared to revenue of $759.7 million and net income of $134.1 million or $1.63 diluted earnings per share for the six months ended June 30, 2007.

Well Intervention Group Segment

Second quarter revenue for the Well Intervention Group was a record $296.9 million, a 27% increase from the first quarter of 2008 and a 56% increase from the second quarter of 2007. Income from operations was $78.2 million, or 26% of segment revenue as compared to $50.8 million, or 22% of segment revenue, in the first quarter of 2008. The primary drivers for the sequential and year-over-year revenue growth was an increase in project management and marine engineering services as the Company completed its first full quarter of field operations associated with the previously announced wreck removal project. In addition, sequential improvement was due to higher utilization of coiled tubing and electric line services in certain domestic land markets, increased Gulf of Mexico activity for electric line, pumping and stimulation, hydraulic workover/snubbing, and plug and abandonment services, and increased well control work in international markets.

Rental Tools Segment

Revenue of $134.8 million was 3% higher than the first quarter of 2008 and 9% higher than the second quarter of 2007. Income from operations was $47.5 million, or 35% of segment revenue, compared to $45.8 million, or 35% of segment revenue in the first quarter of 2008. Excluding a $3.3 million gain on sale of business in the first quarter of 2008, the operating margin percentage increased sequentially by 3% due to the increase in higher margin rentals of stabilization equipment, drill pipe and accessories. The segment benefitted from an increase in the number of rigs drilling for oil and natural gas. As a result, demand for stabilization equipment increased in all three major market areas (Gulf of Mexico, domestic land and international). Demand also increased for drill pipe and other specialty tubular products in the Gulf of Mexico and internationally in Brazil, Colombia and Venezuela.

Marine Segment

Superior’s marine revenue was $26.0 million, a 13% increase from the first quarter of 2008 and a 26% decrease from the second quarter of 2007. Income from operations was $1.4 million, or 6% of segment revenue, down from $2.6 million, or 11% of segment revenue in the first quarter of

2008. Average daily revenue in the second quarter was approximately $286,000, inclusive of subsistence revenue, as compared to $254,000 per day in the first quarter of 2008. Average fleet utilization was 57% as compared to 49% in the first quarter of 2008 and 77% in the second quarter of 2007. Utilization increased each month during the quarter as most liftboat classes experienced higher utilization compared to the most recent quarter. However, operating expenses increased due to higher boat maintenance expense and labor costs.

Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended June 30, 2008
($ actual)

						Average
Class		Liftboats				Dayrate				Utilization
145'-155'			11			$	8,375				48.0	%
160'-175'			7				11,296				40.4	%
200'			5				16,704				73.0	%
230'-245'			3				24,560				75.5	%
250'			2				35,643				91.8	%

Equity-Method Investment

Income (losses) in equity-method investment includes the Company’s remaining interest in SPN Resources, LLC and the Company’s 40% investment in Beryl Oil and Gas. The $7.8 million loss from equity-method investments in the second quarter of 2008 includes $19.9 million, pre-tax, of the Company’s share of non-cash unrealized losses associated with mark-to-market changes in the value of outstanding hedging contracts put in place by SPN Resources, LLC. The loss was due to significant increases in natural gas and oil prices, the volatility of which makes these changes unpredictable.  The contracts were put in place subsequent to the sale of the Company’s 75% interest in SPN Resources. The Company’s equity-method investments performed as expected, exclusive of the unrealized loss.

Conference Call Information

The Company will host a conference call at 10 a.m. Central Time on Thursday, July 31, 2008. The call can be accessed from Superior’s website at www.superiorenergy.com, or by telephone at 303-262-2190. For those who cannot listen to the live call, a telephonic replay will be available through Friday, August 8, 2008 and may be accessed by calling 303-590-3000 and using the pass code 11116473#. 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 and production needs of oil and gas companies worldwide through its brand name rental tools and its integrated well intervention services and

tools, supported by an engineering staff who plan and design solutions for customers. Offshore projects are delivered by the Company’s fleet of modern marine assets.

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, 2008 and 2007
(in thousands, except earnings per share amounts)
(unaudited)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2008				2007				2008				2007
Oilfield service and rental revenues		$	457,655			$	348,589			$	843,974			$	674,484
Oil and gas revenues			—				48,164				55,072				85,193
Total revenues			457,655				396,753				899,046				759,677
Cost of oilfield services and rentals			222,097				162,973				413,229				305,402
Cost of oil and gas sales			—				18,833				12,986				36,891
Total cost of services, rentals and sales			222,097				181,806				426,215				342,293
Depreciation, depletion, amortization and accretion			41,954				45,242				83,833				84,086
General and administrative expenses			66,426				53,824				136,032				104,683
Gain on sale of business			3,058				—				40,946				—
Income from operations			130,236				115,881				293,912				228,615
Other income (expense):
Interest expense, net			(6,956	)			(7,534	)			(15,072	)			(15,233	)
Earnings (losses) from equity-method investments, net			(7,765	)			1,164				(3,808	)			(3,842	)
Income before income taxes			115,515				109,511				275,032				209,540
Income taxes			41,586				39,424				99,012				75,434
Net income		$	73,929			$	70,087			$	176,020			$	134,106
Basic earnings per share		$	0.92			$	0.86			$	2.18			$	1.66
Diluted earnings per share		$	0.89			$	0.85			$	2.12			$	1.63
Weighted average common shares used in computing earnings per share:
Basic			80,749				81,047				80,762				80,841
Diluted			82,942				82,562				82,918				82,379

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2008 AND DECEMBER 31, 2007
(in thousands)

		6/30/2008				12/31/2007
		(unaudited)				(audited)
ASSETS
Current assets:
Cash and cash equivalents		$	119,132			$	51,649
Accounts receivable, net			391,400				343,334
Current portion of notes receivable			—				15,584
Prepaid expenses			22,273				19,641
Other current assets			45,693				40,797
Total current assets			578,498				471,005
Property, plant and equipment, net			1,002,436				1,086,408
Goodwill, net			487,243				484,594
Notes receivable			—				16,732
Equity-method investments			72,354				56,961
Intangible and other long-term assets, net			138,513				141,549
Total assets		$	2,279,044			$	2,257,249
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	69,648			$	69,510
Accrued expenses			135,189				177,779
Income taxes payable			36,367				7,520
Current portion of decommissioning liabilities			—				36,812
Current maturities of long-term debt			810				810
Total current liabilities			242,014				292,431
Deferred income taxes			154,322				163,338
Decommissioning liabilities			—				88,158
Long-term debt			710,987				711,151
Other long-term liabilities			26,178				21,492
Total stockholders’ equity			1,145,543				980,679
Total liabilities and stockholders’ equity		$	2,279,044			$	2,257,249

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Segment Highlights
Three months ended June 30, 2008, March 31, 2008 and June 30, 2007
(Unaudited)
(in thousands)

		Three months ended,
Revenue		June 30, 2008				March 31, 2008				June 30, 2007
Well Intervention		$	296,891			$	234,115			$	190,542
Rental Tools			134,773				130,327				123,736
Marine			25,991				23,089				35,162
Oil and Gas			—				55,072				48,164
Less: Oil and Gas Eliminations (2)			—				(1,212	)			(851	)
Total Revenues		$	457,655			$	441,391			$	396,753

		Three months ended,
Gross Profit (1)		June 30, 2008				March 31, 2008				June 30, 2007
Well Intervention		$	135,410			$	101,716			$	81,093
Rental Tools			93,438				86,227				84,718
Marine			6,710				7,244				19,805
Oil and Gas			—				42,086				29,331
Total Gross Profit		$	235,558			$	237,273			$	214,947

		Three months ended,
Income from Operations		June 30, 2008				March 31, 2008				June 30, 2007
Well Intervention		$	78,202			$	50,778			$	42,111
Rental Tools (3)			47,531				45,757				46,640
Marine			1,445				2,578				15,212
Oil and Gas (4)			3,058				64,563				11,918
Total Income from Operations		$	130,236			$	163,676			$	115,881