Superior Energy Services 8-K Results of Operations and Financial Condition

Exhibit 99.1

1105 Peters Road
Harvey, Louisiana 70058
(504) 362-4321
Fax (504) 362-4966
NYSE: SPN

FOR FURTHER INFORMATION CONTACT:
Terence Hall, CEO; Robert Taylor, CFO;
Greg Rosenstein, VP of Investor Relations, 504-362-4321

Superior Energy Services, Inc. Posts Record Fourth Quarter 2006 Results
Diluted EPS of $0.76 is three times higher than the fourth quarter of 2005 and
13% greater than the third quarter of 2006

Harvey, La. — February 26, 2007 — Superior Energy Services, Inc. (NYSE: SPN) today announced record net income of $62.2 million and diluted earnings per share of $0.76, on revenues of $319.1 million, as compared to net income of $16.2 million, or $0.20 diluted earnings per share on revenues of $188.0 million for the fourth quarter of 2005. The fourth quarter of 2005 was negatively impacted by Hurricanes Katrina and Rita, which significantly curtailed Gulf of Mexico activity for most of our services during the quarter.

As compared to the third quarter of 2006, revenues increased 10%, income from operations increased 11% and earnings per share increased 13%.

Highlights for the quarter include the following:

• Well Intervention revenues increased 9% from the third quarter of 2006 primarily due to increases in domestic land activity for production-related services and increases in international revenues from the company’s derrick barge charter.

• Rental Tool revenues increased 10% from the third quarter of 2006, largely due to increased rental activity in domestic land markets and certain international markets, including the North Sea, Venezuela and West Africa market areas.

• Marine revenues increased 11% from the third quarter of 2006 as dayrates increased.

• Oil and Gas revenues increased 6% from the third quarter of 2006 due mainly to increased oil and gas production.

• Revenues from non-Gulf of Mexico market areas were approximately $139 million as compared to approximately $112 million in the third quarter of 2006 and approximately $88 million in the fourth quarter of 2005.

• The Company’s effective annual tax rate was lowered from 36.0% to 35.5%, resulting in an effective tax rate for the fourth quarter of 34.5%.

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Terence Hall, Chairman and CEO of Superior, commented, “We are very pleased with our operating and financial performance during this seasonally challenging period. We continued to grow earnings both year-over-year and sequentially, and we believe that the combination of our expanding international and domestic land operations with our diversified portfolio of products and services provides our shareholders a cushion to fluctuations in commodity prices.”

For the year ended December 31, 2006, revenues were $1,093.8 million and net income was $188.2 million or $2.32 diluted earnings per share, as compared to revenues of $735.3 million and net income of $67.9 million or $0.85 diluted earnings per share for the year ended December 31, 2005.

Well Intervention Group Segment

Fourth quarter revenues for the Well Intervention Group were a record $133.2 million, a 9% increase from the third quarter of 2006 and a 50% increase from the fourth quarter of 2005. Income from operations was $28.7 million, or 22% of segment revenue as compared to $28.8 million, or 24% of segment revenue, in the third quarter of 2006. International revenue increased as a result of a full quarter of revenue from the company’s derrick barge that is currently on charter in the Asia Pacific region, as well as increases in hydraulic workover and snubbing services. Domestic land revenue increased for coiled tubing, electric line, engineering services and hydraulic workover and snubbing services. Partially offsetting these increases was lower Gulf of Mexico activity for some services due to typical seasonal weakness (weather and holidays) toward the end of the quarter. Profit margins were slightly lower due to business mix, including fewer high pressure well projects for the mechanical wireline division.

Rental Tools Segment

Revenues for the Rental Tools segment were a record $108.5 million, 10% higher than the third quarter of 2006 and a 59% increase from the fourth quarter of 2005. Income from operations was $41.7 million, or 38% of segment revenue, up from $35.1 million, or 36% of segment revenue in the third quarter of 2006. The primary factors leading to the record quarter were increased rentals of on-site accommodations, specialty tubulars, drill pipe and associated handling tools. The biggest activity increases were in the Rocky Mountains, the North Sea, Venezuela and West Africa.

Marine Segment

Superior’s marine revenues were $39.9 million, an 11% increase over the third quarter of 2006 and a 30% increase from the fourth quarter of 2005. Income from operations was $19.2 million, or 48% of segment revenue, up from $16.2 million, or 45% of segment revenue in the third quarter of 2006. Average daily revenue in the fourth quarter was approximately $434,000, inclusive of subsistence revenue, as compared to $391,000 per day in the third quarter of 2006, reflecting a full quarter of higher dayrates which were put into place late in the third quarter. Average fleet utilization was 80% as compared to 78% in the third quarter of 2006 and 90% in the fourth quarter of 2005.

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The 200-ft. class fleet now has five liftboats following the refurbishment and addition of the Superior Intervention in October.

Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended December 31, 2006
($ actual)

			Average
Class	Liftboats		Dayrate		Utilization
145-155’		11	$	11,977		74.6	%
160’-175’		6		16,317		80.3	%
200’		5		20,791		86.4	%
230’-245’		3		29,153		76.1	%
250’		2		39,690		99.4	%

Oil and Gas Segment
Oil and gas revenues were $40.4 million, a 6% increase over third quarter 2006 levels and a significant improvement over the fourth quarter of 2005. Income from operations was $8.6 million, or 21% of segment revenue, up from $8.1 million, or 21% of segment revenue, in the third quarter of 2006. Fourth quarter production was approximately 772,000 barrels of oil equivalent (boe), or about 8,400 boe per day, up from approximately 739,000 boe, or 8,000 boe per day in the third quarter of 2006.

Conference Call Information
The Company will host a conference call at 10 a.m. Central Time on Tuesday, February 27, 2007. The call can be accessed from Superior’s website at www.superiorenergy.com, or by telephone at 303-262-2211. For those who cannot listen to the live call, a telephonic replay will be available through Tuesday, March 6, 2007 and may be accessed by calling 303-590-3000 and using the pass code 11083293#. An archive of the webcast will be available after the call for a period of 60 days on http://www.superiorenergy.com.

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Superior Energy Services, Inc. is a leading provider of specialized oilfield services and equipment focused on serving the production-related needs of oil and gas companies primarily in the Gulf of Mexico and the drilling-related needs of oil and gas companies in the Gulf of Mexico and select international market areas. The Company uses its production-related assets to enhance, maintain and extend production and, at the end of an offshore property’s economic life, plug and decommission wells. Superior also owns and operates mature oil and gas properties in the Gulf of Mexico.

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.

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SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Three Months and Years Ended December 31, 2006 and 2005
(in thousands, except earnings per share amounts)
(unaudited, except as noted)

	Three Months Ended						Years Ended
	December 31,						December 31,
	2006			2005			2006			2005
										(audited)
Oilfield service and rental revenues	$	278,698		$	186,272		$	966,139		$	656,423
Oil and gas revenues		40,378			1,714			127,682			78,911
Total revenues		319,076			187,986			1,093,821			735,334
Cost of oilfield services and rentals		123,411			86,997			427,477			330,200
Cost of oil and gas sales		17,559			10,540			70,028			45,804
Total cost of services, rentals and sales		140,970			97,537			497,505			376,004
Depreciation, depletion, amortization and accretion		33,538			20,428			111,011			89,288
General and administrative expenses		46,292			37,856			168,416			140,989
Reduction in value of assets		—			3,750			—			6,994
Gain on sale of liftboats		—			275			—			3,544
Income from operations		98,276			28,690			316,889			125,603
Other income (expense):
Interest expense, net		(6,561	)		(5,332	)		(22,950	)		(21,862	)
Interest income		1,135			731			4,612			2,201
Loss on early extinguishment of debt		—			—			(12,596	)		—
Earnings from equity-method investments		2,039			3			5,891			1,339
Reduction in value of equity-method investment		—			—			—			(1,250	)
Income before income taxes		94,889			24,092			291,846			106,031
Income taxes		32,701			7,854			103,605			38,172
Net income	$	62,188		$	16,238		$	188,241		$	67,859
Basic earnings per share	$	0.78		$	0.20		$	2.36		$	0.87
Diluted earnings per share	$	0.76		$	0.20		$	2.32		$	0.85
Weighted average common shares used in computing earnings per share:
Basic		79,941			79,464			79,801			78,321
Diluted		81,460			80,621			81,289			79,735

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SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2006 AND 2005
(in thousands)

	12/31/2006		12/31/2005
	(unaudited)		(audited)
ASSETS
Current assets:
Cash and cash equivalents	$	38,970	$	54,457
Accounts receivable, net		303,800		196,365
Income taxes receivable		2,630		—
Current portion of notes receivable		14,824		2,364
Prepaid insurance and other		59,563		51,116
Total current assets		419,787		304,302
Property, plant and equipment, net		804,228		534,962
Goodwill		444,687		220,064
Notes receivable		16,137		29,483
Equity-method investments		64,603		953
Intangible and other long-term assets, net		125,036		7,486
Total assets	$	1,874,478	$	1,097,250
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	65,451	$	42,035
Accrued expenses		141,684		69,926
Income taxes payable		—		11,353
Fair value of commodity derivative instruments		—		10,792
Current portion of decommissioning liabilities		35,150		14,268
Current maturities of long-term debt		810		810
Total current liabilities		243,095		149,184
Deferred income taxes		112,011		91,899
Decommissioning liabilities		87,046		107,641
Long-term debt		711,505		216,596
Other long-term liabilities		10,133		7,556
Total stockholders’ equity		710,688		524,374
Total liabilities and stockholders’ equity	$	1,874,478	$	1,097,250

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Superior Energy Services, Inc. and Subsidiaries
Segment Highlights
Three months ended December 31, 2006, September 30, 2006 and December 31, 2005
(Unaudited)
(in thousands)

	Three months ended,
Revenue	December 31, 2006			September 30, 2006			December 31, 2005
Well Intervention	$	133,157		$	122,205		$	88,626
Rental tools		108,526			98,262			68,101
Marine		39,944			36,013			30,717
Oil and Gas		40,378			38,208			1,714
Less: Oil and Gas Eliminations (2)		(2,929	)		(4,171	)		(1,172	)
Total Revenues	$	319,076		$	290,517		$	187,986

	Three months ended,
Gross Profit (1)	December 31, 2006		September 30, 2006		December 31, 2005
Well Intervention	$	55,319	$	53,767	$	36,370
Rental tools		75,935		67,476		43,942
Marine		24,033		21,541		18,963
Oil and Gas		22,819		18,646		(8,826	)
Total Gross Profit	$	178,106	$	161,430	$	90,449

(1)	Gross profit is calculated by subtracting cost of services from revenue for each of the Company’s four segments.
(2)	Oil and gas eliminations represent products and services from the company’s segments provided to the Oil and Gas Segment.

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