8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 26, 2008

SUPERIOR ENERGY SERVICES, INC.

(Exact name of registrant as specified in its charter)

Delaware	0-20310	75-2379388
(State or other jurisdiction)	(Commission File Number)	(IRS Employer Identification No.)

1105 Peters Road, Harvey, Louisiana
(Address of principal executive offices) 70058
(Zip Code)

(504) 362-4321
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02. Results of Operations and Financial Condition.
	Item 9.01. Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX
Press Release

Item 2.02. Results of Operations and Financial Condition.

     On February 26, 2008, Superior Energy Services, Inc. (the “Company”) issued a press release announcing its earnings for the fourth quarter and year ended December 31, 2007. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. In accordance with General Instruction B.2 of Form 8-K, the information presented herein shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d)	Exhibits.
99.1	Press release issued by Superior Energy Services, Inc., dated February 26, 2008.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SUPERIOR ENERGY SERVICES, INC.
By:	/s/ Robert S. Taylor
	Robert S. Taylor
	Chief Financial Officer

Dated: February 27, 2008

EXHIBIT INDEX

99.1 Press release issued by Superior Energy Services, Inc., dated February 26, 2008.

EX-99.1

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 Fourth Quarter 2007 Results

Harvey, La. — February 26, 2008 — Superior Energy Services, Inc. (NYSE: SPN) today announced net income of $72.0 million and diluted earnings per share of $0.88 on revenues of $413.9 million, as compared to net income of $62.2 million and $0.76 diluted earnings per share on revenues of $319.1 million for the fourth quarter of 2006.

For the year ended December 31, 2007, net income was a record $281.1 million and $3.41 diluted earnings per share on record revenues of $1,572.5 million, as compared to net income of $188.2 million and $2.32 diluted earnings per share on revenues of $1,093.8 million for the year ended December 31, 2006.

Factors impacting the fourth quarter results as compared to the most recent quarter (third quarter of 2007) are as follows:

• Rental Tools Segment revenue increased 16% from the third quarter of 2007 primarily due to increased rentals of accommodations, drill pipe and stabilization tools in domestic land and offshore market areas.

• Marine Segment revenue increased 16% from the third quarter of 2007 as utilization increased to 70% from 62%.

• Oil and Gas Segment revenue increased 8% from the third quarter of 2007 due to increased oil and gas prices.

• Well Intervention Segment revenue decreased 6% from the third quarter of 2007 primarily due to a decrease in revenue from the derrick barge construction and charter contracts as the project nears completion and seasonal declines in production-related engineering and service activity in domestic land and offshore market areas.

• Revenue from domestic land and international markets represented approximately 52% of total revenue during the quarter as compared to 54% in the third quarter of 2007.

• General and administrative expenses increased $9.0 million, to $66.3 million over the third quarter of 2007, with the majority of the increase resulting from increased incentive compensation and insurance expense.

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• Income from operations decreased to $116.5 million from $120.7 million as a result of a $7.5 million gain on the sale of a non-core rental tools business in the third quarter of 2007. Excluding this gain, income from operations would have increased $3.2 million.

• The Company’s earnings from its equity investment in Beryl Oil and Gas (formerly Coldren Resources) was negatively impacted by $2.4 million, which reflects the Company’s share of Beryl’s non-cash charges related to a reduction in the value of its oil and gas reserves ($2.1 million ) and a charge for the early extinguishment of debt ($0.3 million).

• The Company’s effective annual income tax rate decreased from 35.5% to 35.0%, resulting in an effective tax rate for the fourth quarter of 33.5%.

Terence Hall, Chairman and CEO of Superior, commented, “Fourth quarter activity gradually improved during the first two months for many of our products and services before our typical seasonal softness impacted business in December, especially in the Gulf of Mexico and domestic land markets. However, due to our product/service mix and geographic diversification, we were able to absorb activity declines in certain regions. For instance, increased rentals of accommodation units as a result of a project award in the Rocky Mountain market area offset weather issues and other seasonal factors that impacted demand for services and rentals in other domestic land markets.

“Overall, the fourth quarter caps off a record year for the Company in terms of financial performance. During the year, we exceeded several internal operational and safety goals; attracted additional management talent that we believe will advance our diversification strategy; and we integrated the Warrior Energy Services acquisition. We believe all of these accomplishments further position the Company to create value in the years to come,” concluded Hall.

Well Intervention Group Segment

Fourth quarter revenue for the Well Intervention Group was $190.7 million, a 6% decrease from the third quarter of 2007 and a 43% increase from the fourth quarter of 2006. Income from operations was $37.0 million, or 19% of segment revenue as compared to $47.6 million, or 23% of segment revenue, in the third quarter of 2007. Lower revenue from the derrick barge construction contract accounted for about 60% of the segment’s revenue decrease. The remainder of the decrease was due to lower production-related activity for engineering and certain services in both domestic land and offshore market areas. The segment’s gross profit margin increased sequentially due to business mix, but the sequential operating margin decreased as a result of higher depreciation and general and administrative expenses.

Rental Tools Segment

Revenue for the Rental Tools segment was $137.5 million, 16% higher than the third quarter of 2007 and a 27% increase from the fourth quarter of 2006. Income from operations was $46.4 million, or 34% of segment revenue, down from $51.4 million, or 43% of segment revenue

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in the third quarter of 2007. Higher revenue is due to increased accommodation rentals in the Rocky Mountains market area, increased drill pipe rentals in the Gulf of Mexico and North Sea, and increased rentals of stabilizers in Mexico and the United Kingdom. Gross profit and operating margins were lower sequentially due to a higher mix of accommodations revenue, increased costs for upgrades at the Company’s stabilizer facilities, and a decrease in non-rental sales.

Marine Segment

Superior’s marine revenue was $30.5 million, a 16% increase over the third quarter of 2007 and a 24% decrease from the fourth quarter of 2006. Income from operations was $8.2 million, or 27% of segment revenue, up from $8.1 million, or 31% of segment revenue in the third quarter of 2007. Average daily revenue in the fourth quarter was approximately $332,000, inclusive of subsistence revenue, as compared to $286,000 per day in the third quarter of 2007. Average fleet utilization was 70% as compared to 62% in the third quarter of 2007 and 80% in the fourth quarter of 2006.

Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended December 31, 2007
($ actual)

			Average
Class	Liftboats		Dayrate		Utilization
145’—155’		11	$	9,328		58.5	%
160’—175’		6		12,036		74.3	%
200’		5		16,014		70.0	%
230’—245’		3		25,611		84.4	%
250’		2		38,032		94.0	%

Oil and Gas Segment

Oil and gas revenue was $55.8 million, an 8% increase over third quarter 2007 levels and a 38% increase over the fourth quarter of 2006. Income from operations was a record $24.9 million, or 45% of segment revenue, up from $13.5 million, or 26% of segment revenue, in the third quarter of 2007. A 13% increase in the average realized price over the third quarter of 2007 more than offset a 9% decrease in total oil and gas production. Fourth quarter production was approximately 821,000 barrels of oil equivalent (boe), or about 8,900 boe per day, down from approximately 899,000 boe, or 9,800 boe per day in the third quarter of 2007. Production at South Pass 60, the Company’s largest producing field, was shut-in for part of the quarter due to equipment and facility upgrades.

This segment’s gross profit and operating margins increased significantly on a sequential and year-over-year basis as a result of lower lease operating expenses, including insurance expense.

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Conference Call Information

The Company will host a conference call at 10 a.m. Central Time on Wednesday, February 27, 2008. The call can be accessed from Superior’s website at www.superiorenergy.com, or by telephone at 303-262-2190. For those who cannot listen to the live call, a telephonic replay will be available through Wednesday, March 5, 2008 and may be accessed by calling 303-590-3000 and using the pass code 11108134#. 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. 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 and Twelve Months Ended December 31, 2007 and 2006
(in thousands, except earnings per share amounts)
(unaudited, except as noted)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2007			2006			2007			2006
										(audited)
Oilfield service and rental revenues	$	358,055		$	278,698		$	1,379,767		$	966,139
Oil and gas revenues		55,811			40,378			192,700			127,682
Total revenues		413,866			319,076			1,572,467			1,093,821
Cost of oilfield services and rentals		166,460			123,411			631,545			427,477
Cost of oil and gas sales		10,735			17,559			66,580			70,028
Total cost of services, rentals and sales		177,195			140,970			698,125			497,505
Depreciation, depletion, amortization and accretion		53,874			33,538			187,841			111,011
General and administrative expenses		66,313			46,292			228,146			168,416
Gain on sale of business		—			—			7,483			—
Income from operations		116,484			98,276			465,838			316,889
Other income (expense):
Interest expense, net		(8,319	)		(6,561	)		(33,257	)		(22,950	)
Interest income		548			1,135			2,851			4,612
Loss on early extinguishment of debt		—			—			—			(12,596	)
Earnings (losses) from equity-method investments, net		(493	)		2,039			(2,940	)		5,891
Income before income taxes		108,220			94,889			432,492			291,846
Income taxes		36,256			32,701			151,372			103,605
Net income	$	71,964		$	62,188		$	281,120		$	188,241
Basic earnings per share	$	0.89		$	0.78		$	3.47		$	2.36
Diluted earnings per share	$	0.88		$	0.76		$	3.41		$	2.32
Weighted average common shares used in computing earnings per share:
Basic		80,735			79,941			80,973			79,801
Diluted		81,998			81,460			82,389			81,289

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

	12/31/2007		12/31/2006
	(unaudited)		(audited)
ASSETS
Current assets:
Cash and cash equivalents	$	51,649	$	38,970
Accounts receivable, net		343,334		303,800
Income taxes receivable		—		2,630
Current portion of notes receivable		15,584		14,824
Prepaid expenses		19,641		17,782
Other assets		40,797		41,781
Total current assets		471,005		419,787
Property, plant and equipment, net		1,086,408		804,228
Goodwill, net		484,594		444,687
Notes receivable		16,732		16,137
Equity-method investments		56,961		64,603
Intangible and other long-term assets, net		141,549		125,036
Total assets	$	2,257,249	$	1,874,478
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	69,510	$	65,451
Accrued expenses		177,779		137,164
Income taxes payable		7,520		—
Current portion of decommissioning liabilities		36,812		35,150
Current maturities of long-term debt		810		810
Total current liabilities		292,431		238,575
Deferred income taxes		163,338		112,011
Decommissioning liabilities		88,158		87,046
Long-term debt		711,151		711,505
Other long-term liabilities		21,492		14,653
Total stockholders’ equity		980,679		710,688
Total liabilities and stockholders’ equity	$	2,257,249	$	1,874,478

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Superior Energy Services, Inc. and Subsidiaries
Segment Highlights
Three months ended December 31, 2007, September 30, 2007 and December 31, 2006
(Unaudited)
(in thousands)

	Three months ended,
Revenue	December 31, 2007			September 30, 2007			December 31, 2006
Well Intervention	$	190,735		$	202,807		$	133,157
Rental tools		137,456			118,918			108,526
Marine		30,547			26,323			39,944
Oil and Gas		55,811			51,696			40,378
Less: Oil and Gas Eliminations (2)		(683	)		(820	)		(2,929	)
Total Revenues	$	413,866		$	398,924		$	319,076

	Three months ended,
Gross Profit (1)	December 31, 2007		September 30, 2007		December 31, 2006
Well Intervention	$	87,647	$	91,032	$	55,319
Rental tools		90,401		83,776		75,935
Marine		13,547		12,737		24,033
Oil and Gas		45,076		32,742		22,819
Total Gross Profit	$	236,671	$	220,287	$	178,106

	Three months ended,
Income from Operations	December 31, 2007		September 30, 2007		December 31, 2006
Well Intervention	$	36,964	$	47,613	$	28,692
Rental tools (3)		46,396		51,446		41,715
Marine		8,192		8,148		19,244
Oil and Gas		24,932		13,532		8,625
Total Income from Operations	$	116,484	$	120,739	$	98,276

(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.
(3)	Income from operations in the Rental tools Segment includes a $7.5 million gain on sale of business for the three months ended September 30, 2007.

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