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8-K

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): November 03, 2023

SUPERIOR ENERGY SERVICES, INC.

(Exact name of Registrant as Specified in Its Charter)


Delaware	001-34037	87-4613576
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1001 Louisiana Street, Suite 2900
Houston, Texas		77002
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (713) 654-2200

(Former Name or Former Address, if Changed Since Last Report)

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

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On November 3, 2023, Superior Energy Services, Inc., a Delaware corporation, announced, among other things, its financial results for the fiscal quarter ended September 30, 2023 and a conference call with its shareholders. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated by reference. The information contained in this Item 2.02 (including the exhibit hereto) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 7.01 Regulation FD Disclosure.

The information from Item 2.02 of this Current Report on Form 8-K is hereby incorporated into this Item 7.01 by reference.

The information contained in this Item 7.01 (including the exhibit hereto) shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.


Exhibit No.		Exhibit Description
99.1		Press release dated November 3, 2023
104		Cover Page Interactive Data File (Embedded within the Inline XBRL document)

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 thereunto duly authorized.


			Superior Energy Services, Inc.

Date:	November 3, 2023	By:	/s/ James W. Spexarth
			James W. Spexarth Executive Vice President, Chief Financial Officer and Treasurer

EX-99.1

Exhibit 99.1

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

SUPERIOR ENERGY SERVICES ANNOUNCES
THIRD QUARTER 2023 RESULTS AND CONFERENCE CALL

Houston, November 3, 2023 – Superior Energy Services, Inc. (the “Company”) filed its Form 10-Q for the period ending September 30, 2023. In accordance with the Company’s Shareholders Agreement, it will host a conference call with shareholders on November 6, 2023.

For the third quarter of 2023, the Company reported net income from continuing operations of $32.6 million, or $1.62 per diluted share, and revenue of $210.4 million. This compares to net income from continuing operations of $67.4 million or $3.35 per diluted share, and revenue of $244.5 million, for the second 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.

The Company’s Adjusted EBITDA (a non-GAAP measure defined on page 4) was $71.8 million for the third quarter of 2023 compared to $92.5 million in the second 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 financial performance for the third quarter of 2023 was in line with expectations. Illustrative of our responsive people and their leaders, highly engineered and desirable assets, delivered by established recognized brands with strong positions in the Gulf of Mexico and international offshore markets where activity is strengthening with continued confidence in the longer-term outlook for global oil prices.”

Third Quarter 2023 Geographic Breakdown

U.S. land revenue was $45.7 million in the third quarter of 2023, a 10% decrease compared to revenue of $50.5 million in the second quarter of 2023 and was driven primarily by declines in our rental businesses as results tracked with a lower U.S. land rig count.

U.S. offshore revenue was $59.1 million in the third quarter of 2023, a decrease of 3% compared to revenue of $60.9 million in the second quarter of 2023. This change was primarily driven by declines in our completion services business unit within our Well Services segment, offset by increases from our premium drill pipe and accommodation businesses within our Rentals segment.

International revenue was $105.5 million in the third quarter of 2023, a decrease of 21% compared to revenue of $133.0 million in the second quarter of 2023, primarily due to a decline in activity from well control activities within our Well Services segment.

Third Quarter 2023 Segment Reporting

The Rentals segment revenue in the third quarter of 2023 was $113.2 million, which was roughly equal to the second quarter of 2023 as increases in U.S. offshore premium drill pipe and accommodations rentals were offset by declines in U.S. land, which was impacted by a decline in the U.S land rig counts. Adjusted EBITDA was $68.8 million, a 3% decrease from the second quarter of 2023. Adjusted EBITDA Margin (a non-GAAP measure defined on page 4) was 61%, a 2% decrease from the second quarter of 2023.

The Well Services segment revenue in the third quarter of 2023 was $97.2 million, a 26% decrease compared to revenue of $132.1 million in the second quarter of 2023, primarily from well control activities and completion services within our International markets. Adjusted EBITDA for the third quarter of 2023 was $15.1 million with an Adjusted EBITDA Margin of 16%, as compared to Adjusted EBITDA of $34.6 million with an Adjusted EBITDA Margin of 26% in the second quarter of 2023. The decrease in both Adjusted EBITDA and Adjusted EBITDA Margin for the third quarter of 2023 was largely driven by a comparatively stronger prior quarter performance in our well control and completion services business units.

Liquidity

As of September 30, 2023, the Company had cash, cash equivalents, and restricted cash of approximately $438.7 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 September 30, 2023.

Total cash proceeds received during the third quarter of 2023 from the sale of non-core businesses and assets were $9.6 million compared to total cash proceeds received during the second quarter of 2023 of $3.6 million.

During the third quarter of 2023 we utilized an indirect foreign exchange mechanism known as a Blue Chip Swap (“BCS”) to remit $9.7 million U.S. dollars from Argentina through the purchase and sale of BCS securities. The transactions were completed at implied exchange rates that were approximately 123% higher than the official exchange rate resulting in a loss of $12.1 million during the third quarter of 2023.

The Company remains focused on cash conversion. Free Cash Flow (a non-GAAP measure defined on page 4) for the third quarter of 2023 totaled $30.8 million compared to $2.1 million for the second quarter of 2023. Additionally, we incurred approximately $3.4 million in decommissioning costs associated with our oil and gas platform in the Gulf of Mexico. 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. Refer to page 8 for a reconciliation of Free Cash Flow to Net Cash from Operating Activities.

Third quarter capital expenditures were $21.6 million. The Company expects total capital expenditures for 2023 to be approximately $80 to $85 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

Our guidance for full year 2023 remains consistent from our previous guidance provided in the second quarter of 2023, as we expect revenue to come in at a range of $880 million to $920 million with Adjusted EBITDA in a range of $310 million to $330 million. As we noted in the second quarter of 2023, our back half of 2023 results are more heavily weighted to the fourth quarter due to significant expected deliveries from our Completion Services business in the Well Services segment.

Conference Call Information

The Company’s management team will host a conference call on Monday, November 6, 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 November 6, 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 other gains and losses, 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 defined as net cash from operating activities less payments for capital expenditures. 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 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, June 30, and September 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									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2023			2023			2022			2023			2022
Revenues
Rentals	$	113,201		$	112,411		$	104,557		$	334,433		$	297,042
Well Services		97,184			132,062			117,730			340,562			347,815
Total revenues		210,385			244,473			222,287			674,995			644,857

Cost of revenues
Rentals		37,769			35,021			33,638			109,258			101,250
Well Services		72,076			85,733			82,443			239,062			248,179
Total cost of revenues		109,845			120,754			116,081			348,320			349,429

Depreciation, depletion, amortization and accretion		20,490			20,621			20,508			61,250			77,939
General and administrative expenses		30,089			31,177			31,841			92,256			94,090
Restructuring expenses		-			-			1,223			1,983			4,441
Other (gains) and losses, net		(4,073	)		47			(13,397	)		(5,424	)		(30,263	)
Income from operations		54,034			71,874			66,031			176,610			149,221

Other income (expense):
Interest income, net		6,629			6,513			3,373			18,581			6,011
Loss on Blue Chip Swap securities		(12,120	)		-			-			(12,120	)		-
Other expense, net		(4,520	)		(1,836	)		(6,838	)		(8,508	)		(6,362	)
Income from continuing operations before income taxes		44,023			76,551			62,566			174,563			148,870
Income tax expense		(11,403	)		(9,147	)		(14,058	)		(44,615	)		(32,813	)
Net income from continuing operations		32,620			67,404			48,508			129,948			116,057
Income (loss) from discontinued operations, net of income tax		128			(9	)		17			408			(188	)
Net income	$	32,748		$	67,395		$	48,525		$	130,356		$	115,869

Income (loss) per share - basic:
Net income from continuing operations	$	1.62		$	3.35		$	2.42		$	6.46		$	5.80
Income (loss) from discontinued operations, net of income tax		0.01			-			-			0.02			(0.01	)
Net income	$	1.63		$	3.35		$	2.42		$	6.48		$	5.79

Income (loss) per share - diluted:
Net income from continuing operations	$	1.62		$	3.35		$	2.41		$	6.45		$	5.78
Income (loss) from discontinued operations, net of income tax		-			-			0.01			0.02			(0.01	)
Net income	$	1.62		$	3.35		$	2.42		$	6.47		$	5.77

Weighted-average shares outstanding
Basic		20,136			20,126			20,024			20,123			20,016
Diluted		20,159			20,143			20,090			20,144			20,074


SUPERIOR ENERGY SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)

	September 30,		December 31,
	2023		2022
ASSETS
Current assets
Cash and cash equivalents	$	357,769	$	258,999
Accounts receivable, net		251,395		249,808
Income taxes receivable		6,046		6,665
Prepaid expenses		17,167		17,299
Inventory		87,010		65,587
Other current assets		7,185		6,276
Assets held for sale		753		11,978
Total current assets		727,325		616,612
Property, plant and equipment, net		291,144		282,376
Note receivable		72,611		69,679
Restricted cash		80,940		80,108
Deferred tax assets		68,187		97,492
Other assets, net		42,826		44,745
Total assets	$	1,283,033	$	1,191,012

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	41,760	$	31,570
Accrued expenses		103,279		116,575
Income taxes payable		15,680		11,682
Decommissioning liability		25,334		9,770
Liabilities held for sale		292		3,349
Total current liabilities		186,345		172,946
Decommissioning liability		136,233		150,901
Other liabilities		45,231		84,281
Total liabilities		367,809		408,128
Total stockholders' equity		915,224		782,884
Total liabilities and stockholders' equity	$	1,283,033	$	1,191,012


SUPERIOR ENERGY SERVICES, INC.
STATEMENTS OF CASH FLOWS
(in thousands, unaudited)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2023			2023			2022			2023			2022

Cash flows from operating activities
Net income	$	32,748		$	67,395		$	48,525		$	130,356		$	115,869
Adjustments to reconcile net income to net cash from operating activities
Depreciation, depletion, amortization and accretion		20,490			20,621			20,508			61,250			77,939
Other non-cash items		566			8,392			(5,807	)		23,357			(28,165	)
Loss on Blue Chip Swap securities		12,120			-			-			12,120			-
Washington State Tax Payment		-			(27,068	)		-			(27,068	)		-
Decommissioning Costs		(3,401	)		(2,878	)		-			(6,279	)		-
Changes in operating assets and liabilities		(10,112	)		(36,780	)		(9,445	)		(38,390	)		(43,618	)
Net cash from operating activities		52,411			29,682			53,781			155,346			122,025

Cash flows from investing activities
Payments for capital expenditures		(21,592	)		(27,540	)		(22,387	)		(67,218	)		(42,901	)
Proceeds from sales of assets		9,563			3,578			31,231			24,710			46,414
Proceeds from sales of equity securities		-			-			-			-			13,366
Proceeds from sales of Blue Chip Swap securities		9,656			-			-			9,656			-
Purchases of Blue Chip Swap securities		(21,776	)		-			-			(21,776	)		-
Net cash from investing activities		(24,149	)		(23,962	)		8,844			(54,628	)		16,879

Cash flows from financing activities
Other		-			-			-			(1,116	)		-
Net cash from financing activities		-			-			-			(1,116	)		-

Net change in cash, cash equivalents and restricted cash		28,262			5,720			62,625			99,602			138,904
Cash, cash equivalents and restricted cash at beginning of period		410,447			404,727			470,814			339,107			394,535
Cash, cash equivalents and restricted cash at end of period	$	438,709		$	410,447		$	533,439		$	438,709		$	533,439

Reconciliation of Free Cash Flow
Net cash from operating activities	$	52,411		$	29,682		$	53,781		$	155,346		$	122,025
Payments for capital expenditures		(21,592	)		(27,540	)		(22,387	)		(67,218	)		(42,901	)
Free Cash Flow	$	30,819		$	2,142		$	31,394		$	88,128		$	79,124

Free Cash Flow is a Non-GAAP measure. See Non-GAAP Measures for our definition of Free Cash Flow.


SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
REVENUE BY GEOGRAPHIC REGION BY SEGMENT
(in thousands, unaudited)

	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
	2023		2023		2022		2023		2022
U.S. land
Rentals	$	37,478	$	44,730	$	39,673	$	127,341	$	117,426
Well Services		8,223		5,806		9,808		20,384		18,507
Total U.S. land		45,701		50,536		49,481		147,725		135,933

U.S. offshore
Rentals		44,681		37,516		37,829		117,867		106,913
Well Services		14,459		23,405		23,609		54,185		84,499
Total U.S. offshore		59,140		60,921		61,438		172,052		191,412

International
Rentals		31,042	$	30,165		27,055		89,225		72,703
Well Services		74,502		102,851		84,313		265,993		244,809
Total International		105,544		133,016		111,368		355,218		317,512
Total Revenues	$	210,385	$	244,473	$	222,287	$	674,995	$	644,857


SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
SEGMENT HIGHLIGHTS
(in thousands, unaudited)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2023			2023			2022			2023			2022
Revenues
Rentals	$	113,201		$	112,411		$	104,557		$	334,433		$	297,042
Well Services		97,184			132,062			117,730			340,562			347,815
Total Revenues	$	210,385		$	244,473		$	222,287		$	674,995		$	644,857

Income from Operations
Rentals	$	56,253		$	58,106		$	56,291		$	167,373		$	133,635
Well Services		10,581			27,425			26,249			50,860			63,531
Corporate and other		(12,800	)		(13,657	)		(16,509	)		(41,623	)		(47,945	)
Total Income from Operations	$	54,034		$	71,874		$	66,031		$	176,610		$	149,221

Adjusted EBITDA
Rentals	$	68,791		$	70,659		$	64,141		$	204,632		$	175,030
Well Services		15,137			34,629			25,179			69,697			67,081
Corporate and other		(12,125	)		(12,793	)		(14,232	)		(37,207	)		(39,954	)
Total Adjusted EBITDA	$	71,803		$	92,495		$	75,088		$	237,122		$	202,157

Adjusted EBITDA Margin
Rentals		61	%		63	%		61	%		61	%		59	%
Well Services		16	%		26	%		21	%		20	%		19	%
Corporate and other	n/a			n/a			n/a			n/a			n/a
Total Adjusted EBITDA Margin		34	%		38	%		34	%		35	%		31	%

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									Nine Months ended
	September 30,			June 30,			September 30,			September 30,
	2023			2023			2022			2023			2022
Net income from continuing operations	$	32,620		$	67,404		$	48,508		$	129,948		$	116,057
Depreciation, depletion, amortization and accretion		20,490			20,621			20,508			61,250			77,939
Interest income, net		(6,629	)		(6,513	)		(3,373	)		(18,581	)		(6,011	)
Income tax expense		11,403			9,147			14,058			44,615			32,813
Restructuring expenses		-			-			1,223			1,983			4,441
Other expense, net		4,520			1,836			6,838			8,508			6,362
Loss on Blue Chip Swap Securities		12,120			-			-			12,120			-
Other adjustments (1)		(2,721	)		-			(12,674	)		(2,721	)		(29,444	)
Adjusted EBITDA	$	71,803		$	92,495		$	75,088		$	237,122		$	202,157

Adjusted EBITDA is a Non-GAAP measure. See Non-GAAP Measures for our definition of Adjusted EBITDA.

(1) Adjustments for exit and disposal activities related to non-core businesses 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									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2023			2023			2022			2023			2022
Rentals
Income from operations	$	56,253		$	58,106		$	56,291		$	167,373		$	133,635
Depreciation, depletion, amortization and accretion		12,538			12,553			12,554			37,259			46,099
Other adjustments (1)		-			-			(4,704	)		-			(4,704	)
Adjusted EBITDA	$	68,791		$	70,659		$	64,141		$	204,632		$	175,030

Wells Services
Income from operations	$	10,581		$	27,425		$	26,249		$	50,860		$	63,531
Depreciation, depletion, amortization and accretion		7,277			7,204			6,900			21,558			28,290
Other adjustments (2)		(2,721	)		-			(7,970	)		(2,721	)		(24,740	)
Adjusted EBITDA	$	15,137		$	34,629		$	25,179		$	69,697		$	67,081

Corporate
Loss from operations	$	(12,800	)	$	(13,657	)		(16,509	)	$	(41,623	)	$	(47,945	)
Depreciation, depletion, amortization and accretion		675			864			1,054			2,433			3,550
Restructuring expenses		-			-			1,223			1,983			4,441
Adjusted EBITDA	$	(12,125	)	$	(12,793	)	$	(14,232	)	$	(37,207	)	$	(39,954	)

Total
Income from operations	$	54,034		$	71,874		$	66,031		$	176,610		$	149,221
Depreciation, depletion, amortization and accretion		20,490			20,621			20,508			61,250			77,939
Restructuring expenses		-			-			1,223			1,983			4,441
Other adjustments		(2,721	)		-			(12,674	)		(2,721	)		(29,444	)
Adjusted EBITDA	$	71,803		$	92,495		$	75,088		$	237,122		$	202,157

Adjusted EBITDA is a Non-GAAP measure. See Non-GAAP Measures for our definition of Adjusted EBITDA.

(1) Adjustments for disposal activities related to non-core businesses (2) Adjustments for exit and disposal activities related to non-core businesses and the residual gain from revisions to our estimated decommissioning liability