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Superior Energy Services, Inc. Announces Third Quarter 2013 Results

     Superior Energy Services, Inc. Announces Third Quarter 2013 Results

PR Newswire

HOUSTON, Oct. 24, 2013

HOUSTON, Oct. 24, 2013 /PRNewswire/ --Superior Energy Services, Inc. (NYSE:
SPN) today announced third quarter 2013 net income of $69.8 million, or $0.43
per diluted share, on revenue of $1,188.6 million.

These results compare with third quarter 2012 net income of $93.9 million, or
$0.59 per diluted share, on revenue of $1,179.7 million.

For the nine months ended September 30, 2013, the Company recorded net income
of $202.1 million, or $1.26 per diluted share, on revenue of $3,483.8 million.
For the nine months ended September 30, 2012, the Company recorded net income
from continuing operations of $306.9 million, or $2.07 per diluted share, and
net income of $289.7 million, or $1.95 per diluted share, on revenue of
$3,389.8 million.

During the third quarter of 2013 the Company reduced its annual effective
income tax rate from 37% to 35%, resulting in a benefit of approximately $6.0
million.

David Dunlap, President and CEO of the Company, commented, "As previously
announced, the persistent flat horizontal rig count in the U.S. land markets
has created a market environment characterized by oversupply and increased
competition for several completions and production-related services. As a
result, our U.S. land revenue declined about 1% from the second quarter and
gross profit margins for several service lines were lower than the second
quarter.

"We continue to experience strong growth in Gulf of Mexico and international
market areas. Our Gulf revenue increased 7% sequentially as demand for our
drilling products and services and completion tools in the deepwater continue
to be the main drivers. In addition, we successfully completed multiple well
control projects. International revenue grew 8% sequentially, with the main
catalysts being continued expansion of our drilling products and services, as
well as improved activity levels for our subsea inspection, repair and
maintenance services in the Asia Pacific market area. Year-to-date, our Gulf
of Mexico revenue has increased 32% and international revenue has grown 13%.
As a result, our revenue from these market areas represents almost 40% of our
total revenue for the first nine months of 2013.

"We expect margin pressure to continue through the fourth quarter in the U.S.
land market areas. In addition, we anticipate typical, end-of-year seasonal
factors will impact U.S. land and Gulf of Mexico activity."

Third Quarter 2013 Geographic Breakdown

U.S. land market revenue was approximately $718.2 million in the third quarter
of 2013, as compared with $787.6 million in the third quarter of 2012 and
$723.3 million in the second quarter of 2013. Gulf of Mexico revenue was
approximately $241.8 million, as compared with $189.4 million in the third
quarter of 2012 and $225.1 million in the second quarter of 2013.
International revenue was approximately $228.6 million, as compared with
$202.7 million in the third quarter of 2012 and $211.3 million in the second
quarter of 2013.

Drilling Products and Services Segment

Drilling Products and Services segment revenue in the third quarter was $215.5
million, an 11% increase from third quarter 2012 revenue of $194.9 million and
a 5% increase from second quarter 2013 revenue of $205.4 million.

The primary factor driving the higher sequential revenue in this segment was a
16% increase in international market revenue to $64.9 million due to increased
rentals of premium drill pipe in Africa and bottom hole assemblies in Latin
America. Gulf of Mexico market revenue in this segment increased 3%
sequentially to $77.7 million due to increased rentals of premium drill pipe,
accommodations and specialty rentals. U.S. land market revenue in this segment
declined 2% sequentially to $72.9 million due to a decrease in rentals of
premium drill pipe.

Onshore Completion and Workover Services Segment

Onshore Completion and Workover Services segment revenue in the third quarter
was $398.0 million, a 6% decrease from third quarter 2012 revenue of $421.2
million, and was virtually unchanged from second quarter 2013 revenue of
$398.2 million. All of the revenue in this segment is generated from U.S. land
market areas.

On a sequential basis, revenue in this segment was unchanged in pressure
pumping and slightly higher for well service rigs and fluid management

Income from operations as a percentage of revenue in this segment was 8.4% as
compared with 11.8% in the second quarter of 2013, resulting from lower
margins for fluid management and well service rigs, and lower service
intensity in pressure pumping.

Production Services Segment

Production Services segment revenue was $359.7 million, a 4% decrease from
third quarter 2012 revenue of $373.9 million and a 3% decrease from second
quarter 2013 revenue of $369.1 million.

U.S. land market revenue in this segment decreased 3% sequentially to $225.1
million, primarily due to decreased demand for coiled tubing, cased hole
wireline and pressure control tools. International revenue in this segment
decreased 3% sequentially to $82.1 million primarily due to lower coiled
tubing activity in Mexico and lower demand for snubbing services in Latin
America. Gulf of Mexico revenue in this segment was 2% lower sequentially at
$52.5 million with increases in cased hole wireline services offset by
decreases in coiled tubing and snubbing services.

Subsea and Technical Solutions Segment

Subsea and Technical Solutions segment revenue was $215.4 million, a 14%
increase from third quarter 2012 revenue of $189.7 million and a 15% increase
from second quarter 2013 revenue of $187.0 million.

International revenue in this segment increased 15% sequentially to $81.6
million due to activity increases in subsea construction. Gulf of Mexico
market revenue in this segment increased 16% sequentially to $111.5 million
due to increased demand for pressure control services as the Company
successfully completed multiple, one-time well control projects. In addition,
completion tools also increased. U.S. land market revenue in this segment
increased 12% sequentially to $22.3 million primarily related to increases in
completion tools.

Conference Call Information

The Company will host a conference call at 11 a.m. Eastern Time on Friday,
October 25, 2013. The call can be accessed from the 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
November 8, 2013 and may be accessed by calling 303-590-3030 and using the
access code 4643634#. 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.

Statements in this press release other than statement of historical facts,
including statements regarding our estimates, expectations, beliefs,
intentions, projections or strategies for the future, may be "forward-looking
statements" as defined in the Private Securities Litigation Reform Act of
1995. All forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially from the
estimates, expectations, beliefs, intentions, projections and strategies
reflected in or suggested by the forward-looking statements. Among the
factors that could cause actual results to differ materially are risks
inherent in acquiring businesses, including the ability to successfully
integrate Complete Production Services Inc.'s operations into the Company's
legacy operations and the costs incurred in doing so; the effect of regulatory
programs and environmental matters on our performance, including the risk that
future changes in the regulation of hydraulic fracturing could reduce or
eliminate demand for our pressure pumping services; risks associated with
business growth outpacing the capabilities of the Company's infrastructure and
workforce; risks associated with the uncertainty of macroeconomic and business
conditions worldwide; the cyclical nature and volatility of the oil and gas
industry, including the level of exploration, production and development
activity and the volatility of oil and gas prices; changes in competitive
factors affecting our operations; political, economic and other risks and
uncertainties associated with international operations; the lingering impact
on exploration and production activities in the U.S. coastal waters following
the Deepwater Horizon incident; the impact that unfavorable or unusual weather
conditions could have on the Company's operations; the potential shortage of
skilled workers; the Company's dependence on certain customers; the risks
inherent in long-term fixed-price contracts; operating hazards, including the
significant possibility of accidents resulting in personal injury or death,
property damage or environmental damage; and other material factors that are
described in detail in Item 1A of the Company's Annual Report on Form 10-K for
the year ended December 31, 2012, as subsequently updated by the Company's
filings with the Securities and Exchange Commission. Although the Company
believes that the expectations reflected in such forward-looking statements
are reasonable, the Company can give no assurance that such expectations will
prove to be correct. Investors are cautioned that many of the assumptions on
which the Company's forward-looking statements are based are likely to change
after such forward-looking statements are made, including for example the
market prices of oil and natural gas and regulations affecting oil and gas
operations, which the Company cannot control or anticipate. Further, the
Company may make changes to its business plans that could or will affect its
results. The Company undertakes no obligation to update any of its
forward-looking statements and the Company does not intend to update its
forward-looking statements more frequently than quarterly, notwithstanding any
changes in its assumptions, changes in its business plans, its actual
experience, or other changes. You are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date hereof.

FOR FURTHER INFORMATION CONTACT:
David Dunlap, President and CEO, (713) 654-2200;
Robert Taylor, CFO or Greg Rosenstein, EVP of Corporate Development, (504)
587-7374



SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Three and Nine Months Ended September 30, 2013 and 2012
(in thousands, except earnings per share amounts)
(unaudited)
                        Three Months Ended          Nine Months Ended
                        September 30,               September 30,
                        2013           2012         2013          2012
Revenues                $ 1,188,615    $ 1,179,665  $ 3,483,807   $ 3,389,821
Cost of services
(exclusive of items     748,052        708,608      2,167,422     1,966,659
shown separately
below)
Depreciation,
depletion,              158,006        128,160      462,627       366,272
amortization and
accretion
General and
administrative          157,904        163,458      465,035       496,998
expenses
Income from operations  124,653        179,439      388,723       559,892
Other income
(expense):
 Interest expense,     (24,464)       (28,585)     (78,946)      (88,950)
net
 Other                 789            467          2,062         562
 Loss on early         -              (2,294)      (884)         (2,294)
extinguishment of debt
 Gain on sale of
equity method           -              -            -             17,880
investment
Income from continuing
operations before       100,978        149,027      310,955       487,090
income taxes
Income taxes            31,143         55,140       108,834       180,223
Net income from         69,835         93,887       202,121       306,867
continuing operations
Loss from discontinued
operations, net of      -              -            -             (17,207)
income tax
Net income              $   69,835  $          $  202,121  $  289,660
                                       93,887
Basic earnings per
share:
Net income from         $          $        $         $    
continuing operations   0.44          0.60        1.27         2.09
Loss from discontinued  -              -            -             (0.11)
operations
Net income              $          $        $         $    
                        0.44          0.60        1.27         1.98
Diluted earnings per
share:
Net income from         $          $        $         $    
continuing operations   0.43          0.59        1.26         2.07
Loss from discontinued  -              -            -             (0.12)
operations
Net income              $          $        $         $    
                        0.43          0.59        1.26         1.95
Weighted average
common shares used in
computing earnings per
share:
 Basic               159,326        157,153      159,204       146,611
 Diluted             160,883        158,576      160,804       148,369



SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2013 AND DECEMBER 31, 2012
(in thousands)
                                                 9/30/2013       12/31/2012
                                                 (Unaudited)     (Audited)
ASSETS
Current assets:
 Cash and cash equivalents                      $    90,651  $   91,199
 Accounts receivable, net                       1,030,232       1,027,218
 Deferred income taxes                          18,424          34,120
 Income taxes receivable                        28,658          -
 Prepaid expenses                               89,851          93,190
 Inventory and other current assets             272,537         214,630
 Total current assets                     1,530,353       1,460,357
Property, plant and equipment, net              3,237,350       3,255,220
Goodwill                                         2,548,910       2,532,065
Notes receivable                                 47,033          44,838
Intangible and other long-term assets, net       484,217         510,406
 Total assets                             $ 7,847,863    $ 7,802,886
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                               $   250,374   $  252,363
 Accrued expenses                               361,927         346,490
 Income taxes payable                          -               153,212
 Deferred income taxes                          -               -
 Current maturities of long-term debt           20,000          20,000
 Total current liabilities                632,301         772,065
Deferred income taxes                           845,228         745,144
Decommissioning liabilities                      97,595          93,053
Long-term debt, net                              1,650,000       1,814,500
Other long-term liabilities                      168,932         147,045
Total stockholders' equity                       4,453,807       4,231,079
 Total liabilities and stockholders'      $ 7,847,863    $ 7,802,886
equity



SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

SEGMENT HIGHLIGHTS

THREE MONTHS ENDED SEPTEMBER 30, 2013, JUNE 30, 2013, AND SEPTEMBER 30, 2012

(unaudited)

(in thousands)
                       Three months ended,
Revenue                September 30, 2013  June 30, 2013     September 30,
                                                             2012
Drilling Products and  $           $    205,422   $        
Services               215,522                               194,882
Onshore Completion     398,016             398,216           421,194
and Workover Services
Production Services    359,722             369,066           373,868
Subsea and Technical   215,355             187,009           189,721
Solutions
Total Revenues         $             $  1,159,713    $      
                       1,188,615                            1,179,665
Gross Profit (1)       September 30, 2013  June 30, 2013     September 30,
                                                             2012
Drilling Products and  $           $    138,438   $        
Services               141,648                               132,923
Onshore Completion     122,340             136,159           143,414
and Workover Services
Production Services    108,147             116,742           136,362
Subsea and Technical   68,428              56,491            58,358
Solutions
Total Gross Profit     $           $    447,830   $        
                       440,563                               471,057
Income from            September 30, 2013  June 30, 2013     September 30,
Continuing Operations                                        2012
Drilling Products and  $           $     59,635  $        
Services                62,242                               62,759
Onshore Completion     33,458              46,809            52,197
and Workover Services
Production Services    15,707              20,845            49,023
Subsea and Technical   13,246              8,587             15,460
Solutions
Total Income from      $           $    135,876   $        
Continuing Operations  124,653                               179,439



    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.



SOURCE Superior Energy Services, Inc.

Website: http://www.superiorenergy.com
 
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