Superior Energy Services 8-K Superior Energy Services Posts Record Second Quarter 2007 Results

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 Corporate Development,
504-362-4321

Superior Energy Services Posts Record Second Quarter 2007 Results

Diluted EPS Increases 77% from the Second Quarter of 2006 as 50% of Revenue Derived
from Non-Gulf of Mexico Markets

Harvey, La. — July 30, 2007 — Superior Energy Services, Inc. (NYSE: SPN) today announced record net income of $70.1 million and diluted earnings per share of $0.85 on revenues of $396.8 million, as compared to net income of $38.7 million, or $0.48 diluted earnings per share on revenues of $261.8 million for the second quarter of 2006. The results also compare favorably to the first quarter of 2007, in which net income was $64.0 million and diluted earnings per share was $0.78, on revenues of $362.9 million.

Factors impacting the quarter as compared to the most recent quarter include the following:

• Well Intervention revenues increased 8% from the first quarter of 2007 primarily due to increased hydraulic workover and snubbing activity as well as higher coiled tubing, mechanical wireline and electric line revenues.

• Rental Tool revenues increased 7% from the first quarter of 2007, largely due to increased rentals of stabilizers, drill collars and on-site accommodations.

• Marine revenues decreased 2% from the first quarter of 2007 due to lower utilization for some of the Company’s larger liftboats as a result of increased shipyard days.

• Oil and Gas revenues increased 30% from the first quarter of 2007 due mainly to higher oil and gas production.

• Revenues from non-Gulf of Mexico market areas were approximately $199 million, or 50% of total revenue, as compared to approximately $175 million, or 48% of total revenue in the first quarter of 2007 and approximately $100 million, or 38% of total revenue in the second quarter of 2006.

Terence Hall, Chairman and CEO of Superior, stated, “The diversity of our products and services combined with our expanding geographical exposure continue to be the drivers for our strong earnings growth these past several quarters. While activity increased in all of our geographic markets, the second quarter represents the first time in company history that at least 50% of our revenues were derived from market areas outside the Gulf of Mexico. Our operating units are committed to driving shareholder value by executing upon this integrated growth strategy.”

For the six months ended June 30, 2007, revenues were $759.7 million and net income was $134.1 million or $1.63 diluted earnings per share, as compared to revenues of $484.2 million and net income of $70.9 million or $0.87 diluted earnings per share for the six months ended June 30, 2006.

Well Intervention Group Segment

Second quarter revenues for the Well Intervention Group were a record $190.5 million, an 8% increase from the first quarter of 2007 and a 71% increase from the second quarter of 2006. Income from operations was $42.1 million, or 22% of segment revenue as compared to $46.1 million, or 26% of segment revenue, in the first quarter of 2007. The primary drivers for the sequential growth in revenues were higher international activity for hydraulic workover and snubbing services and increased domestic land activity for coiled tubing, mechanical wireline and electric line services. Gross profit and operating margins sequentially were adversely impacted by changes in business mix due to the completion of certain well control and engineering projects.

Rental Tools Segment

Revenues for the Rental Tools Segment were a record $123.7 million, 7% higher than the first quarter of 2007 and 43% higher than the second quarter of 2006. Income from operations was $46.6 million, or 38% of segment revenue, up from $45.1 million, or 39% of segment revenue in the first quarter of 2007. Demand increased for rentals of stabilizers, drill collars, connecting iron and on-site accommodations. The operating margin was slightly lower due to business mix.

Marine Segment

Superior’s marine revenues were $35.2 million, a 2% decrease from the first quarter of 2007 and a 4% increase from the second quarter of 2006. Income from operations was $15.2 million, or 43% of segment revenue, down from $16.5 million, or 46% of segment revenue in the first quarter of 2007. Average daily revenue in the second quarter was approximately $386,000, inclusive of subsistence revenue, as compared to $399,000 per day in the first quarter of 2007. Average fleet utilization was 77% as compared to 74% in the first quarter of 2007 and 83% in the second quarter of 2006. However, utilization for the 245-ft. class and 250-ft. class liftboats was lower due to additional shipyard days for inspections and maintenance.

Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended June 30, 2007
($ actual)

			Average
Class	Liftboats		Dayrate		Utilization
145’-155’		11		$10,469		74.3	%
160’-175’		6		14,482		70.5	%
200’		5		20,166		91.7	%
230’-245’		3		27,589		85.0	%
250’		2		39,463		64.8	%

Oil and Gas Segment

Oil and gas revenues were $48.2 million, a 30% increase from first quarter 2007 levels and a 43% increase over the second quarter of 2006. Income from operations was $11.9 million, or 25% of segment revenue, up from $5.1 million, or 14% of segment revenue, in the first quarter of 2007. Second quarter production was approximately 875,000 barrels of oil equivalent (boe), or about 9,600 boe per day, up from approximately 711,000 boe, or 7,900 boe per day in the first quarter of 2007. Production increased during the quarter due to a successful sidetrack drilling operation.

Conference Call Information

The Company will host a conference call at 10 a.m. Central Time on Tuesday, July 31, 2007. The call can be accessed from Superior’s website at www.superiorenergy.com, or by telephone at 303-262-2175. For those who cannot listen to the live call, a telephonic replay will be available through Tuesday, August 7, 2007 and may be accessed by calling 303-590-3000 and using the pass code 11093868#. An archive of the webcast will be available after the call for a period of 60 days on http://www.superiorenergy.com.

Superior Energy Services, Inc. serves the drilling-related needs of oil and gas companies primarily through its rental tools segment and the production-related needs of oil and gas companies through its well intervention, rental tools and marine segments. The Company uses its production-related assets to enhance, maintain and extend existing production and, at the end of a property’s economic life, plug and abandon wells and decommission platforms and structures. 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 and Six Months Ended June 30, 2007 and 2006
(in thousands, except earnings per share amounts)
(unaudited)

	Three Months Ended						The Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
Oilfield service and rental revenues	$	348,589		$	228,134		$	674,484		$	435,132
Oil and gas revenues		48,164			33,625			85,193			49,096
Total revenues		396,753			261,759			759,677			484,228
Cost of oilfield services and rentals		162,973			101,286			305,402			194,541
Cost of oil and gas sales		18,833			18,702			36,891			32,907
Total cost of services, rentals and sales		181,806			119,988			342,293			227,448
Depreciation, depletion, amortization and accretion		45,242			25,727			84,086			48,642
General and administrative expenses		53,824			40,088			104,683			77,739
Income from operations		115,881			75,956			228,615			130,399
Other income (expense):
Interest expense, net		(8,463	)		(5,556	)		(16,741	)		(10,400	)
Interest income		929			1,559			1,508			2,222
Loss on early extinguishment of debt		—			(12,596	)		—			(12,596	)
Earnings (losses) from equity-method investments		1,164			1,148			(3,842	)		1,148
Income before income taxes		109,511			60,511			209,540			110,773
Income taxes		39,424			21,784			75,434			39,878
Net income	$	70,087		$	38,727		$	134,106		$	70,895
Basic earnings per share	$	0.86		$	0.49		$	1.66		$	0.89
Diluted earnings per share	$	0.85		$	0.48		$	1.63		$	0.87
Weighted average common shares used in computing earnings per share:
Basic		81,047			79,798			80,841			79,719
Diluted		82,562			81,324			82,379			81,177

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2007 AND DECEMBER 31, 2006
(in thousands)

	6/30/2007		12/31/2006
	(unaudited)		(audited)
ASSETS
Current assets:
Cash and cash equivalents	$	36,529	$	38,970
Accounts receivable, net		346,200		303,800
Income taxes receivable		—		2,630
Current portion of notes receivable		15,254		14,824
Prepaid insurance and other		47,139		59,563
Total current assets		445,122		419,787
Property, plant and equipment, net		958,915		804,228
Goodwill		482,798		444,687
Notes receivable		16,259		16,137
Equity-method investments		60,241		64,603
Intangible and other long-term assets, net		134,683		125,036
Total assets	$	2,098,018	$	1,874,478
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	75,456.00	$	65,451
Accrued expenses		139,902		141,684
Income taxes payable		8,857		—
Current portion of decommissioning liabilities		36,504		35,150
Current maturities of long-term debt		810		810
Total current liabilities		261,529		243,095
Deferred income taxes		122,311		112,011
Decommissioning liabilities		86,787		87,046
Long-term debt		746,324		711,505
Other long-term liabilities		13,989		10,133
Total stockholders’ equity		867,078		710,688
Total liabilities and stockholders’ equity	$	2,098,018	$	1,874,478

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Segment Highlights
Three months ended June 30, 2007, March 31, 2007 and June 30, 2006
(Unaudited)
(in thousands)

	Three months ended,
	June 30,			March 31,			June 30,
	2007			2007			2006
Revenue
Well Intervention	$	190,542		$	176,931		$	111,675
Rental tools		123,736			116,180			86,593
Marine		35,162			35,866			33,951
Oil and Gas		48,164			37,029			33,625
Less: Oil and Gas Eliminations (2)		(851	)		(3,082	)		(4,085	)
Total Revenues	$	396,753		$	362,924		$	261,759

	Three months ended,
	June 30,		March 31,		June 30,
	2007		2007		2006
Gross Profit (1)
Well Intervention	$	81,093	$	81,424	$	48,320
Rental tools		84,718		80,664		58,370
Marine		19,805		21,377		20,158
Oil and Gas		29,331		18,972		14,923
Total Gross Profit	$	214,947	$	202,437	$	141,771

(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.