Superior Energy Services, Inc. Announces First Quarter 2014 Results

     Superior Energy Services, Inc. Announces First Quarter 2014 Results

PR Newswire

HOUSTON, April 24, 2014

HOUSTON, April 24, 2014 /PRNewswire/ --Superior Energy Services, Inc. (NYSE:
SPN) today announced net income from continuing operations of $42.6 million,
or $0.27 per diluted share, and net income of $36.7 million, or $0.23 per
diluted share, on revenue of $1,061.4 million for the first quarter of 2014.

These results compare with the first quarter of 2013 net income from
continuing operations of $80.6 million, or $0.51 per diluted share, and net
income of $63.7 million, or $0.40 per diluted share, on revenue of $1,086.9
million.

During 2014, the Company has repurchased and retired approximately 2.8 million
shares of its common stock for a total purchase price of $82.3 million
(average price of $29.12) pursuant to the Company's $400 million share
repurchase program.

David Dunlap, President and CEO of the Company, commented, "We anticipated
that extreme winter weather in the U.S. would create challenges during the
first quarter. As weather improved during the second half of the quarter, we
witnessed activity increases, driven by an increase in horizontal drilling. In
addition, U.S. margins were positively impacted by the cost improvement
initiatives that we enacted during 2013. Our U.S. land revenue was 7% lower
than the same period a year ago and 1% higher than the fourth quarter of 2013.
Gulf of Mexico revenue was 13% higher as compared with the first quarter of
2013, but 3% lower than fourth quarter of 2013 primarily due to seasonal
factors. International revenue was 1% higher than the first quarter of 2013,
but 8% lower than the fourth quarter of 2013 primarily due to lower revenue in
drilling products and services.

"Overall, the quarter finished up strong and should serve as a foundation to
achieve further growth as the year progresses, particularly in the U.S. land
markets, driven by higher utilization across various products and services.

"We continue to focus on operational efficiency and returning cash to
shareholders. We have repurchased about $93 million under our $400 million
share repurchase program since inception in October 2013 and issued our first
quarterly dividend of $0.08 per share in February 2014."

First Quarter 2014 Geographic Breakdown
U.S. land market revenue was $681.3 million in the first quarter of 2014, as
compared with $732.8 million in the first quarter of 2013 and $673.1 million
in the fourth quarter of 2013. Gulf of Mexico market revenue was $211.0
million, as compared with $186.8 million in the first quarter of 2013 and
$218.0 million in the fourth quarter of 2013. International market revenue was
$169.1 million, as compared with $167.3 million in the first quarter of 2013
and $184.6 million in the fourth quarter of 2013.

Discontinued Operations
Discontinued operations include the Company's subsea construction and
conventional decommissioning businesses. As a result, the Subsea and Technical
Solutions segment has been renamed Technical Solutions.

Drilling Products and Services Segment
Drilling Products and Services segment revenue was $220.2 million, a 14%
increase from first quarter 2013 revenue of $194.0 million and a 2% decrease
from fourth quarter 2013 revenue of $223.6 million.

On a sequential basis, Gulf of Mexico market revenue increased 11% to $101.4
million, which was offset by a 21% decline in international market revenue to
$51.4 million. U.S. land market revenue was unchanged at $67.4 million. Gulf
of Mexico market revenue was higher due to increased demand for premium drill
pipe and accommodations. The primary drivers of the lower international
revenue were lower demand for premium drill pipe in the North Sea and
accommodations in Latin America.

Onshore Completion and Workover Services Segment
Onshore Completion and Workover Services segment revenue in the first quarter
was $389.9 million, an 8% decrease from first quarter 2013 revenue of $426.0
million, and a 4% increase from fourth quarter 2013 revenue of $374.5 million.
Virtually all of the revenue in this segment is generated from U.S. land
market areas.

On a sequential basis, revenue increased in fluid management services, which
more than offset small declines in revenue from pressure pumping and well
service rigs. The increase in fluid management revenue was primarily
associated with increased demand for heating-related activity.

Production Services Segment
Production Services segment revenue was $321.2 million, a 13% decrease from
first quarter 2013 revenue of $367.4 million and an 8% decrease from fourth
quarter 2013 revenue of $349.4 million.

U.S. land market revenue declined 6% sequentially to $202.3 million, primarily
due to reduced demand for coiled tubing, remedial pumping and snubbing
services. International market revenue decreased 3% to $84.3 million primarily
due to a decline in hydraulic workover andsnubbing activity, partially offset
by an increase in remedial pumping in Latin America. Gulf of Mexico revenue
declined 28% to $34.6 million primarily due to seasonal factors in the shallow
water market area, leading to lower activity for coiled tubing, wireline and
hydraulic workover and snubbing services.

Technical Solutions Segment
Technical Solutions segment revenue, which includes revenue from continuing
operations only, was $130.1 million, a 31% increase from first quarter 2013
revenue of $99.5 million and a 1% increase from fourth quarter 2013 revenue of
$128.2 million.

Gulf of Mexico market revenue decreased 5% sequentially to $74.9 million due
to a reduction in well control work following the completion of large projects
in the prior quarter. International market revenue increased 3% to $33.4
million as a result of an increase in well control work. U.S. land market
revenue increased 28% sequentially to $21.8 million primarily due to an
increase in demand for completion tools and products.

Conference Call Information
The Company will host a conference call at 9 a.m. Eastern Time on Friday,
April 25, 2014. The call can be accessed from Company's website at
www.superiorenergy.com, or by telephone at 480-629-9771. For those who cannot
listen to the live call, a telephonic replay will be available through Friday,
May 9, 2014 and may be accessed by calling 303-590-3030 and using the pass
code 4678489#. 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.

The press release contains 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," "estimates," variations of such words
and similar expressions identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Forward-looking
statements involve risks and uncertainties. Such forward-looking statements
are subject to uncertainties that could cause actual results to differ
materially from such statements. Such uncertainties include, but are not
limited to: risks inherent in acquiring businesses, the effect of regulatory
programs and environmental matters on the Company's performance, including the
risk that future changes in the regulation of hydraulic fracturing could
reduce or eliminate demand for the Company's 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 the Company's operations; political,
economic and other risks and uncertainties associated with international
operations; 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; and, operating hazards, including the significant
possibility of accidents resulting in personal injury or death, property
damage or environmental damage. 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 the
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 the Company's results.
The Company undertakes no obligation to update any of its forward-looking
statements and it does not intend to update its forward-looking statements
more frequently than quarterly, notwithstanding any changes in the
assumptions, changes in the Company's business plans, our actual experience,
or other changes.

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 Months Ended March 31, 2014 and 2013
(in thousands, except earnings per share amounts)
(unaudited)
                                             Three Months Ended
                                             March 31,
                                             2014             2013
Revenues                                     $ 1,061,418      $ 1,086,872
Cost of services (exclusive of items shown   651,605          651,594
separately below)
Depreciation, depletion, amortization and    162,318          144,964
accretion
General and administrative expenses          155,919          145,896
Income from operations                       91,576           144,418
Other income (expense):
 Interest expense, net                      (23,881)         (28,261)
 Other income (expense)                     (35)             4,575
Income from continuing operations before     67,660           120,732
income taxes
Income taxes                                 25,034           40,114
Net income from continuing operations        42,626           80,618
Loss from discontinued operations, net of    (5,954)          (16,891)
income tax
Net income                                   $   36,672    $   63,727
Basic earnings (losses) per share:
Net income from continuing operations        $     0.27  $     0.51
Loss from discontinued operations            (0.04)           (0.11)
Net income                                   $     0.23  $     0.40
Diluted earnings (losses) per share:
Net income from continuing operations        $     0.27  $     0.51
Loss from discontinued operations            (0.04)           (0.11)
Net income                                   $     0.23  $     0.40
Weighted average common shares used
 in computing earnings per share:
 Basic                                    158,212          158,946
 Diluted                                  160,912          160,433





SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2014 AND DECEMBER 31, 2013
(in thousands)
                                                   3/31/2014      12/31/2013
                                                   (Unaudited)    (Audited)
ASSETS
Current assets:
 Cash and cash equivalents                        $   145,848  $  196,047
 Accounts receivable, net                         906,235        937,195
 Deferred income taxes                            6,367          8,785
 Income taxes receivable                          -              5,532
 Prepaid expenses                                 69,031         70,421
 Inventory and other current assets               202,027        258,449
 Assets held for sale                             321,484        -
 Total current assets                       1,650,992      1,476,429
Property, plant and equipment, net                2,779,345      3,002,194
Goodwill                                           2,458,409      2,458,109
Notes receivable                                   24,073         23,708
Intangible and other long-term assets, net         435,209        450,867
 Total assets                               $ 7,348,028   $ 7,411,307
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                                 $   205,029  $  216,029
 Accrued expenses                                 310,282        376,049
 Income taxes payable                            3,034          -
 Current portion of decommissioning liabilities   27,322         27,322
 Current maturities of long-term debt             20,000         20,000
 Liabilities held for sale                        84,453         -
 Total current liabilities                  650,120        639,400
Deferred income taxes                             734,842        736,080
Decommissioning liabilities                        57,330         56,197
Long-term debt, net                                1,641,242      1,646,535
Other long-term liabilities                        168,816        201,651
Total stockholders' equity                         4,095,678      4,131,444
 Total liabilities and stockholders'        $ 7,348,028   $ 7,411,307
equity





SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
SEGMENT HIGHLIGHTS
THREE MONTHS ENDED MARCH 31, 2014, DECEMBER 31, 2013, AND MARCH 31, 2013  ^(2)
(unaudited)
(in thousands)
                           Three months ended,
Revenue                    March 31, 2014   December 31, 2013   March 31, 2013
Drilling Products and      $            $            $    
Services                   220,210         223,591            193,979
Onshore Completion and     389,877          374,489             425,983
Workover Services
Production Services        321,235          349,370             367,397
Technical Solutions        130,096          128,194             99,513
Total Revenues             $             $             $   
                           1,061,418        1,075,644           1,086,872
Gross Profit (1)           March 31, 2014   December 31, 2013   March 31, 2013
Drilling Products and      $            $            $    
Services                   153,058         152,963            129,334
Onshore Completion and     105,642          110,467             144,244
Workover Services
Production Services        94,010           94,391              114,342
Technical Solutions        57,103           54,163              47,358
Total Gross Profit         $            $            $    
                           409,813         411,984            435,278
Income (Loss) from         March 31, 2014   December 31, 2013   March 31, 2013
Continuing Operations
Drilling Products and      $           $           $     
Services                   66,881          68,294             56,194
Onshore Completion and     6,070            (3,613)             49,235
Workover Services
Production Services        5,014            (26,840)            23,694
Technical Solutions        13,611           (246,550)           15,296
Total Income (Loss) from   $           $            $    
Continuing Operations      91,576          (208,709)           144,419



    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.
    Income (loss) from Continuing Operations for all prior periods has been
(2) adjusted for discontinued operations from the Technical Solutions segment.
    No portion of the goodwill impairment for the three months ended December
    31, 2013 has been allocated to discontinued operations.

SOURCE Superior Energy Services, Inc.

Website: http://www.superiorenergy.com
 
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