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): May 2, 2003


SUPERIOR ENERGY SERVICES, INC.
(Exact name of registrant as specified in its charter)
 

Delaware	0-20310			75-2379388
(State or other jurisdiction	(Commission			(IRS Employer
of incorporation)	File Number)			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)




 

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Item 5.

Other Events.

            On May 2, 2003, Superior Energy Services, Inc. issued the press release attached hereto as Exhibit 99.

 

Item 7.		Financial Statements and Exhibits.
	(a)	Exhibits.
		99	Press release issued by Superior Energy Services, Inc. on May 2, 2003, announcing results for the first quarter ended March 31, 2003.

 

 
 

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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: May 2, 2003

 

 

 

Exhibit 99

 
Superior Energy Services, Inc. Announces First Quarter 2003 Results

HARVEY, La.--(BUSINESS WIRE)--May 2, 2003--Superior Energy Services, Inc. (NYSE:SPN) today announced results for the first quarter ended March 31, 2003. For the quarter, revenues were $123.2 million resulting in net income of $7.5 million or $0.10 diluted earnings per share, as compared to revenues of $104.8 million and net income of $5.8 million or $0.08 diluted earnings per share for the first quarter of 2002.

President and CEO Terry Hall Comments

President and CEO Terry Hall commented, "In the first quarter, we saw indications of increasing activity in several areas. Demand for certain production-related services and equipment in the Gulf of Mexico was at its strongest level since the fourth quarter of 2001. In addition, rentals of stabilizers, tubulars and on-site accommodations in Texas were higher as drilling activity in that market area increased. While liftboat utilization returned to typical first quarter levels, dayrates across most classes remained at fourth quarter 2002 levels. Although the timing is unclear, overall we believe the stage is set for a broader upturn in the Gulf of Mexico, given the improving performance of our production-related service businesses, relatively stable pricing for our liftboats and higher demand for certain rental tools."

Well Intervention Group Segment

First quarter revenues for the Well Intervention Group were $41.4 million, a 14% increase from the first quarter of 2002 and a 15% increase from the fourth quarter of 2002. On a sequential basis, activity increased for most production-related services despite seasonality often associated with the first quarter. A key driver was demand for discretionary services such as coiled tubing, electric line, and pumping and stimulation.

Rental Tools Segment

Revenues for the Rental Tools segment were $34.6 million, 8% higher than the first quarter of 2002 and 4% higher than the fourth quarter of 2002. Rentals of stabilizers, drill pipe and accessories to customers in the Gulf of Mexico and in certain international market areas remained strong throughout the period. Also, rentals in south and west Texas increased as compared to the fourth quarter of 2002.

Marine Segment

Superior's marine revenues were $18.7 million, a 28% increase as compared to the first quarter of 2002 and a 12% decrease as compared to the fourth quarter of 2002. Average fleet utilization was 67% as compared to 67% for the first quarter of 2002 and 79% for the fourth quarter of 2002. After starting the quarter at unseasonally high utilization, the Company's liftboat fleet returned to more normal utilization levels in February and March.

 

Liftboat Average Dayrates and Utilization by Class Size Three Months Ended March 31, 2003 ($ actual)
	Class		Liftboats		Average Dayrate		Utilization
	105'		8		$ 3,147		71.0%
	120-135'		9		3,581		70.7%
	145-155'		11		5,890		60.1%
	160'-175		6		7,854		59.8%
	200'		3		10,561		73.3%
	230'-245'		3		13,456		84.6%
	250'		2		17,827		57.8%

Other Oilfield Services Segment

Revenues in this segment were $28.5 million, a 30% increase as compared to the first quarter of 2002 and a 3% increase as compared to the fourth quarter of 2002. The sequential improvement was due primarily to increased sales of oil spill response equipment and increased activity for waste disposal, offset by seasonal decreases in other environmental services and construction and fabrications projects.

The Company will host a conference call at 10 a.m. Central Time today. The call can be accessed from Superior's website at www.superiorenergy.com, or by telephone at 800-763-5557. The replay telephone number is 800-642-1687 and the replay passcode is 9960168. The replay is available beginning two hours after the call and ending May 9, 2003.

Superior Energy Services, Inc. provides a broad range of specialized oilfield services and equipment primarily to major and independent oil and gas companies engaged in the exploration, production and development of oil and natural gas properties offshore in the Gulf of Mexico and throughout the Gulf Coast region. These services and equipment include the rental of liftboats, rental of specialized oilfield equipment, electric and mechanical wireline services, well plug and abandonment services, coiled tubing services and engineering services. Additional services provided include contract operating and supplemental labor, offshore construction and maintenance services, offshore and dockside environmental cleaning services, the manufacture and sale of drilling instrumentation and the manufacture and sale of oil spill containment equipment.

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 Months Ended March 31, 2003 and 2002 (in thousands, except earnings per share amounts) (unaudited)
			Three Months Ended March 31,
			2003			2002
Revenues			$	123,195		$	104,826
Costs and expenses:
	Cost of services			70,157			59,238
	Depreciation and amortization			11,755			9,522
	General and administrative			23,689			21,213
		Total costs and expenses		105,601			89,973
Income from operations				17,594			14,853
Other income (expense):
	Interest expense, net			(5,515)			(5,224)
	Equity in income of affiliates			127			-
Income before income taxes				12,206			9,629
Income taxes				4,699			3,804
Net income			$	7,507		$	5,825
Basic earnings per share			$	0.10		$	0.08
Diluted earnings per share			$	0.10		$	0.08
Weighted average common shares used
	in computing earnings per share:
		Basic		73,826			70,305
		Diluted		74,595			71,310

 

 

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2003 AND DECEMBER 31, 2002 (in thousands)
			3/31/2003 (Unaudited)			12/31/2002 (Audited)
ASSETS
Current assets:
	Cash and cash equivalents		$	5,565		$	3,480
	Accounts receivable - net			110,052			108,352
	Income taxes receivable			6,459			6,087
	Prepaid insurance and other			14,608			11,663
		Total current assets		136,684			129,582
Property, plant and equipment - net				417,544			418,047
Goodwill - net				162,366			160,366
Investments in affiliates				12,471			12,343
Other assets - net				6,935			7,282
		Total assets	$	736,000		$	727,620
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable		$	16,827		$	21,010
	Accrued expenses			37,181			33,871
	Current maturities of long-term debt			13,723			13,730
		Total current liabilities		67,731			68,611
Deferred income taxes				73,360			67,333
Long-term debt				251,879			256,334
Total stockholders' equity				343,030			335,342
		Total liabilities and stockholders'
		equity	$	736,000		$	727,620

 

 

Superior Energy Services, Inc. and Subsidiaries Segment Highlights Three months ended March 31, 2003 and 2002, and December 31, 2002 (Unaudited) (in thousands)
Revenue	March 2003			December 2002			March 2002
Well Intervention Group	$	41,399		$	36,081		$	36,288
Marine		18,665			21,212			14,586
Rental Tools		34,600			33,409			31,965
Other Oilfield Services		28,531			27,676			21,987
Total	$	123,195		$	118,378		$	104,826
Gross Profit
Well Intervention Group	$	16,645		$	12,096		$	13,495
Marine		5,998			8,529			5,038
Rental Tools		23,486			22,795			22,777
Other Oilfield Services		6,909			5,138			4,278
Total	$	53,038		$	48,558		$	45,588

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Contact:

Superior Energy Services Inc., Harvey

Terence Hall or Greg Rosenstein, 504/362-4321