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Superior Energy Services, Inc. Announces First Quarter 2013 Results

     Superior Energy Services, Inc. Announces First Quarter 2013 Results

PR Newswire

HOUSTON, April 25, 2013

HOUSTON, April 25, 2013 /PRNewswire/ -- Superior Energy Services, Inc. (NYSE:
SPN) today announced net income of $63.7 million, or $0.40 per diluted share,
on revenue of $1,135.5 million for the first quarter of 2013.

These results compare with the first quarter of 2012 net income from
continuing operations of $70.2 million, or $0.55 per diluted share, and net
income of $53.9 million, or $0.42 per diluted share, on revenue of $966.8
million. The first quarter of 2012 included only a partial quarter from the
legacy Complete Production Services businesses which are contained within the
Onshore Completion and Workover and Production Services segments, making
comparisons of the first quarter 2013 and 2012 for those segments less
meaningful.

David Dunlap, President and CEO of the Company, commented, "Our first quarter
results came in at the midpoint of our expectations. Lower general and
administrative expense partially offset lower gross profit and higher
depreciation. Our goal has been to both reduce and defer expenditures until
we see indications of increased drilling and completion activity in the U.S.
land markets.For example, we limited our capital additions to $130 million
for the quarter, well under our originally planned $200 million.

"Modest increases in completions activity toward the end of the first quarter,
coupled with continued improvement in our pressure pumping business yielded
sequential increases in revenue and income from operations as a percentage of
revenue ("operating margin") in our Onshore Completion and Workover Services
segment. These were offset in part by sequential declines in operating margin
in our other three segments. The Subsea and Technical Solutions segment was
adversely impacted by anticipated seasonality in the shallow water Gulf of
Mexico and offshore Asia Pacific market areas, as well as low profit margins
on certain decommissioning projects in the Gulf of Mexico."

First Quarter 2013 Geographic Breakdown

U.S. land market revenue was approximately $732.8 million in the first quarter
of 2013, as compared with $642.8 million in the first quarter of 2012 and
$730.2 million in the fourth quarter of 2012. Gulf of Mexico revenue was
approximately $208.0 million, as compared with $153.0 million in the first
quarter of 2012 and $212.7 million in the fourth quarter of 2012.
International revenue was approximately $194.7 million, as compared with
$171.1 million in the first quarter of 2012 and $235.3 million in the fourth
quarter of 2012.

Drilling Products and Services Segment

Drilling Products and Services segment revenue was $194.0 million, a 2%
increase from first quarter 2012 revenue of $189.4 million and a 1% increase
from fourth quarter 2012 revenue of $192.7 million.

The primary factor driving the higher sequential revenue in this segment was a
4% increase in international market revenue to $50.1 million due to increased
rentals of accommodations in Europe. Gulf of Mexico market revenue increased
2% sequentially to $69.9 million due to increased specialty rentals, while
U.S. land market revenue decreased 2% to $74.0 million primarily due to lower
demand for premium drill pipe and accommodations, partially offset by an
increase in demand for bottom hole assemblies.

Onshore Completion and Workover Services Segment

Onshore Completion and Workover Services segment revenue in the first quarter
was $426.0 million, a 52% increase from first quarter 2012 revenue of $279.7
million, and a 2% increase from fourth quarter 2012 revenue of $417.7 million.
Virtually all of the revenue in this segment is generated from U.S. land
market areas.

On a sequential basis, revenue increases from pressure pumping and well
service rigs were partially offset by a decline in fluid management revenue.
The increase in pressure pumping revenue was due to additional utilization of
contracted fleets, while well service rig revenue was higher as a result of
increased utilization and pricing in certain basins. The decline in fluid
management revenue was associated with reduced demand for transportation and
storage assets.

Production Services Segment

Production Services segment revenue was $367.4 million, a 4% increase from
first quarter 2012 revenue of $354.0 million and a 1% decline from fourth
quarter 2012 revenue of $369.3 million.

U.S. land market revenue declined 3% sequentially to $216.7 million, primarily
due to reduced demand for pressure control, remedial pumping and snubbing
services, which was partially offset by an increase in wireline services.
Revenue from coiled tubing services was unchanged in the U.S. land market.
International market revenue increased 7% to $96.8 million due to increased
production testing activity in Argentina, remedial pumping in Brazil and
cementing activity from our recent acquisition in Colombia. Gulf of Mexico
revenue declined 5% to $53.9 million primarily due to seasonal factors in the
shallow water market area.

Subsea and Technical Solutions Segment

Subsea and Technical Solutions segment revenue was $148.1 million, a 3%
increase from first quarter 2012 revenue of $143.8 million and a 25% decrease
from fourth quarter 2012 revenue of $198.5 million.

Gulf of Mexico market revenue decreased 4% sequentially to $84.1 million due
to seasonal factors resulting in lower activity levels for well control
services and well and platform decommissioning services. International market
revenue declined 50% to $47.8 million as a result of lower subsea construction
and well control activity. U.S. land market revenue increased 8% sequentially
to $16.2 million.

2013 Earnings Guidance Update

The Company maintains its prior earnings per share guidance range of $1.85 to
$2.35.

Dunlap commented, "We maintained our prior guidance as the visibility
regarding variables driving the range of potential outcomes – specifically the
timing and intensity of utilization and rig activity in the U.S. land market
areas – is still unknown. Our first quarter results came in as expected and we
are certainly encouraged by what we experienced towards the latter stages of
the quarter for certain completions-related services."

Conference Call Information

The Company will host a conference call at 10 a.m. Central Time on Friday,
April 26, 2013. The call can be accessed from Company's website at
www.superiorenergy.com, or by telephone at 480-629-9645. For those who cannot
listen to the live call, a telephonic replay will be available through Friday,
May 10, 2013 and may be accessed by calling 303-590-3030 and using the pass
code 4613819#. An archive of the webcast will be available after the call for
a period of 60 days at www.superiorenergy.com.

Superior Energy Services, Inc. serves the drilling, completion and
production-related needs of oil and gas companies worldwide through its brand
name drilling products and its integrated completion and well intervention
services and tools, supported by an engineering staff who plan and design
solutions for customers.



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 uncertainty of macroeconomic
and business conditions worldwide, as well as the global credit markets; risks
associated with the Company's rapid growth; risks associated with the
integration of the Completion Production Services Inc.'s operations; 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 the Company or
any other person that the projected outcomes can or will be achieved.





FOR FURTHER INFORMATION CONTACT:
David Dunlap, President and CEO, (281) 999-0047;
Robert Taylor, CFO or Greg Rosenstein, EVP of Corporate Development, (504)
587-7374



SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Three Months Ended March 31, 2013 and 2012
(in thousands, except earnings per share amounts)
(unaudited)
                                                Three Months Ended
                                                March 31,
                                                2013             2012
Revenues                                        $ 1,135,479      $ 966,837
Cost of services (exclusive of items shown      707,487          546,767
separately below)
Depreciation, depletion, amortization and       149,634          102,596
accretion
General and administrative expenses             150,164          176,021
Income from continuing operations               128,194          141,453
Other income (expense):
 Interest expense, net                         (27,540)         (30,494)
 Other                                         500              401
Income from continuing operations before        101,154          111,360
income taxes
Income taxes                                    37,427           41,203
Net income from continuing operations           63,727           70,157
Loss from discontinued operations, net of       -                (16,237)
income tax
Net income                                      $   63,727    $  53,920
Basic earnings per share:
Net income from continuing operations           $     0.40  $    0.56
Loss from discontinued operations               -                (0.13)
Net income                                      $     0.40  $    0.43
Diluted earnings per share:
Net income from continuing operations           $     0.40  $    0.55
Loss from discontinued operations               -                (0.13)
Net income                                      $     0.40  $    0.42
Weighted average common shares used
 in computing earnings per share:
 Basic                                       158,946          125,542
 Diluted                                     160,433          127,344







SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2013 AND DECEMBER 31, 2012
(in thousands)
                                                 3/31/2013       12/31/2012
                                                 (Unaudited)     (Audited)
ASSETS
Current assets:
 Cash and cash equivalents                      $    77,075  $   91,199
 Accounts receivable, net                       1,030,674       1,027,218
 Deferred income taxes                          27,317          34,120
 Prepaid expenses                               93,936          93,190
 Inventory and other current assets             244,090         214,630
 Total current assets                     1,473,092       1,460,357
Property, plant and equipment, net              3,220,215       3,255,220
Goodwill                                         2,547,497       2,532,065
Notes receivable                                 45,558          44,838
Intangible and other long-term assets, net       503,022         510,406
 Total assets                             $ 7,789,384    $ 7,802,886
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                               $   238,739   $  252,363
 Accrued expenses                               331,520         346,490
 Income taxes payable                          39,371          153,212
 Current maturities of long-term debt           20,000          20,000
 Total current liabilities                629,630         772,065
Deferred income taxes                           759,908         745,144
Decommissioning liabilities                      94,565          93,053
Long-term debt, net                              1,844,584       1,814,500
Other long-term liabilities                      169,523         147,045
Total stockholders' equity                       4,291,174       4,231,079
 Total liabilities and stockholders'      $ 7,789,384    $ 7,802,886
equity





SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

SEGMENT HIGHLIGHTS

THREE MONTHS ENDED MARCH 31, 2013, DECEMBER 31, 2012, AND MARCH 31, 2012

(unaudited)

(in thousands)
                             Three months ended,
Revenue                      March 31, 2013  December 31, 2012  March 31, 2012
Drilling Products and        $           $          $    
Services                     193,979          192,677       189,357
Onshore Completion and       425,983         417,738            279,676
Workover Services
Production Services          367,397         369,341            354,041
Subsea and Technical         148,120         198,491            143,763
Solutions
Total Revenues               $            $          $    
                             1,135,479        1,178,247        966,837
Gross Profit (1)             March 31, 2013  December 31, 2012  March 31, 2012
Drilling Products and        $           $          $    
Services                     129,334          127,834       126,791
Onshore Completion and       144,244         144,626            94,014
Workover Services
Production Services          114,342         120,228            156,026
Subsea and Technical         40,072          62,745             43,239
Solutions
Total Gross Profit           $           $          $    
                             427,992          455,433       420,070
Income from Continuing       March 31, 2013  December 31, 2012  March 31, 2012
Operations                                   (2)                (3)
Drilling Products and        $          $          $     
Services                     56,597            57,424      57,229
Onshore Completion and       49,708          46,904             12,391
Workover Services
Production Services          28,347          32,015             73,762
Subsea and Technical         (6,458)         10,287             (1,929)
Solutions
Total Income from            $           $          $    
Continuing Operations        128,194          146,630       141,453

    Gross profit is calculated by subtracting cost of services (exclusive of
(1) depreciation, depletion, amortization and accretion) from revenue for each
    of the Company's segments.
(2) Includes $2.1 million of additional consideration for an acquisition based
    on the acquired company exceeding performance goals.
(3) Includes $29.0 million of transaction-related expenses.

SOURCE Superior Energy Services, Inc.

Website: http://www.superiorenergy.com