The Power of ONE

The Power of ONE

IPAA Oil and Gas Investment Symposium

April 19, 2004

2

QUICK FACTS

Business

• Primary focus on the wellhead through well intervention services, rental tools and liftboats

• Production-related solutions that provide cost savings over conventional rig-based methods– Rigless and riserless

Strategy

• Moving from a primarily Gulf of Mexico provider to select international locations

• Enhancing utilization through property acquisitions

Other Data

• Ticker: SPN

• Market Cap: $750 million

• Ratings (Moody’s / S&P): B1 / BB-

3

STARTED AS A RIGLESS P&A COMPANY

Avg. Stock Price: $2.53

5-person crew

3 basic servicesSlicklinePumping

Electric line

No rig required

4

MOVED FURTHER UPSTREAM


Acquired complementary assets to support drilling and production in the shallow waterGulf of Mexico market

Brand-name rental tools

Basic well intervention services

Industry’s largest & most diverse liftboats

Field management & environmental services

5

WELL INTERVENTION PROJECTS

Primary equipment

Secondary equipment

ProjectCoiledTubing

ElectricLine

Pumping &Stimulation

MechanicalWireline

HydraulicWorkover

Initial completions

Sidetrack drilling

Stimulation

Major rig intervention (1)

Thru-tubing remedial (2)

P&A

(1) Includes re-completions and workovers(2) Includes plugbacks, cleanouts and zone shifts

6

ADDED LARGE LIFTBOATS TO DELIVER BUNDLED SERVICES PACKAGE


Coiled tubing

Electric Line

P&A Spread

Slickline

General project types:

Sidetrack drilling

Initial completions

Workover and re-entry

Construction work

Plug & abandonment

8

Other20%

Rental Tools28%

Well Intervention

38%

Marine14%

BALANCED MIX OF OPERATIONS

Revenue by Segment2003

EBITDA by Segment

2003

$500.6 million $117.2 million

Well Intervention

31%

Marine11%

Rental Tools54%

Other4%

See Appendix for reconciliation between net income and EBITDA

9

PRIMARY FOCUS ON PRODUCTION

2003 Revenue Breakdown

10

GROWTH STRATEGY

• International expansion

11

SUPERIOR’S ESTIMATEDGOM vs. GLOBAL MARKET SHARE

Source: Company estimates; Spears & Associates, Liftboats.com

Product line% of 2003

SPN RevenueGOM

Market ShareGlobal

Market Share

Mechanical Wireline 8% 60% 9%

Rig-less P&A 6% 60% NA (1)

Coiled Tubing Services 6% 30% 6%

Liftboats 14% 27% 23%

Rental and Fishing Services 28% 25% 6%

62%

(1) Most markets outside the GOM still use rig-based methods

Room to grow internationally in key product and service lines

12

WORLDWIDE DRILLING AND COMPLETION SPENDING (2000 –

2005E)

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

2000 2001 2002 2003 2004 2005

Drilli

ng

& C

ompl

etio

n S

pendi

ng

($ in

bill

ions)

U.S.International

1% CAGR

7% CAGR

Source: Spears & Associates

13

SUPERIOR’S INTERNATIONAL BUSINESS

5.3%

11.3%

8.8%

0%

2%

4%

6%

8%

10%

12%

2001 2002 2003

International revenue as % of total revenue

14

1

2

34

5

7

8

6

INTERNATIONAL EXPANSION

5 North Sea & Continental Europe

6 Middle East7 West Africa8 Australia

1 Offshore eastern Canada2 Mexico3 Trinidad4 Venezuela

15

INTERNATIONAL EXPANSION POTENTIAL

Australia

Liftboats

Services

Rental tools

Venezuela

Liftboats

Services

Rental tools

North Sea/Europe

Rental tools

MexicoLiftboatsServices

Rental tools

Middle East

Rental tools

Liftboats

Eastern Canada

Rental tools

West Africa

Liftboats

Rental tools

TrinidadLiftboatsServices

Rental tools

16

ESTIMATED GROWTH IN DRILLING AND COMPLETION SPENDING BY MARKET

Source: Spears & Associates

’03 – ’04 Growth

’02 – ’05 CAGR

New Orleans

600 miles

Trinidad11%2%Venezuela

33%

6%

Mexico

35%

23%

17

GROWTH STRATEGY


• Increase asset utilization and efficiencies by working on acquired GOM properties

18

SPN RESOURCES PROPERTY PROFILE

SeismicExploration and Development

Well Intervention(Operational, remediation, workover)

Production

Maturity

SPN ResourcesProperty Profile

Abandonment

19

SPN RESOURCES:3 SOURCES OF OPPORTUNITY

• Production– Produce more from existing wells

• Production-related service work– Existing assets will service producing

wells– Well intervention services, liftboats,

rental tools and property management– Gain efficiencies through timing of

work

• Abandonment and decommissioning work– Turnkey opportunity

20

OWNED VS. MANAGED PROPERTIES

SPN Resources

17 fields on 24 blocks

33 structures

97 wells (15 producing wells)

21

SPN RESOURCES

Est. production, historical LOE & potential backlog acquired from three transactions

Daily Production (net) 9,000 mcfe/day

Historical Lease Operating Expenses per year

$7,800,000 Includes several services offered by Superior,

including contract operations, well / facility maintenance, transportation, supplies & rentals.

Other production-related services work

$4,000,000

Includes well intervention services required for optimizing production from current zones,

recompletions to new zones, sidetracking, and other production-enhancement services.

Abandonment and decommissioning work

$80,000,000 Turnkey opportunity. Profit potential contingent upon successful project execution.

Production Economics

Incremental Opportunities for Superior

22

SPN RESOURCES TO UTILIZE WELL INTERVENTION SERVICES OFFERED BY

SUPERIOR

Primary equipment

Secondary equipment

ProjectCoiledTubing

ElectricLine

Pumping &Stimulation

MechanicalWireline

HydraulicWorkover

Initial completions

Sidetrack drilling

Stimulation

Major rig intervention (1)

Thru-tubing remedial (2)

P&A

(1) Includes re-completions and workovers(2) Includes plugbacks, cleanouts and zone shifts

23

GROWTH STRATEGY


• Increase asset utilization and efficiencies by working on acquired GOM properties

• Innovation

24

INNOVATION

Subsea Intervention Lubricator System

COILTAC™

Pipeline cleaning thruster system

Subsea Completion Market

25

71.7

117.7

173.5149.8

257.5

500.6

449.0 443.1

$0

$100

$200

$300

$400

$500

$600

'96 '97 '98 '99 '00 '01 '02 '03

18.6

38.046.8

31.7

65.6

138.4

98.5

117.2

$0

$20

$40

$60

$80

$100

$120

$140

$160

'96 '97 '98 '99 '00 '01 '02 '03

32.0% CAGR

30.1% CAGR

PROVEN RESULTS

(1) Results for the years 1996, 1997, 1998 and 1999 reflect a full year’s results for both Cardinal and Superior. (2) Results for all acquisitions are included from the date of acquisition.

See Appendix for reconciliation between net income and EBITDA

Revenue (1)(2) EBITDA (1)(2)

26

2003 & 2004 ESTIMATED FREE CASH FLOW

2003 2004E

Net Income $30.5 $36.0D&A 48.9 53.0 Deferred taxes 15.2 12.0 Capital expenditures (50.1) (50.0)

Free Cash Flow $44.5 $51.0

Capital Expenditures 2003 2004E

Expansion $30.8 $34.0Maintenance 10.5 14.0 Facilities 8.8 2.0

Total Capital Expenditures $50.1 $50.0

Source: 2004 net income based on analysts estimates of $0.48

27

INVESTMENT HIGHLIGHTS

Leading Gulf of Mexico market positions

Long-standing relationships with blue chip

customers

Seeking growth by utilizing existing assets in new

markets

- International expansion

- SPN Resources

- Innovation

Focused on achieving high returns relative to peers

28

DISCLOSURES

Use of Forward looking statementsIn addition to historical information, our presentation materials include certain forward-looking statements about the Company’s future performance, growth opportunities, outlook, plans, alternatives, strategies, expectations and objectives. These statements are based on certain assumptions and analyses made by the Company’s management in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Such forward-looking statements are subject to uncertainties that could cause the Company’s actual results to differ materially from such statements. Such uncertainties include but are not limited to: volatility of the oil and gas industry, including the level of offshore exploration, production and development activity; risks of the Company’s growth strategy, including the risks of rapid growth and the risks inherent in acquiring businesses; changes in competitive factors affecting the Company’s business operations; operating hazards, including the significant possibility of accidents resulting in personal injury, property damage or environmental matters; seasonality of the offshore industry in the Gulf of Mexico; the Company’s dependence on certain customers; and the potential shortage of skilled workers. These and other uncertainties related to the business are described in detail in the Company’s Annual Report on From 10-K for the Company’s last completed fiscal year. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update any of its forward-looking statements for any reason.

Use of Non-GAAP Financial MeasuresIn this presentation, Superior has included certain financial measures (EBITDA and Free Cash Flow) which are not calculated in accordance with generally accepted accounting principles (GAAP). You should not consider these measures in isolation from or as a substitute for measures prepared in accordance with GAAP. Additionally, these financial measures may not be comparable to other similarly titled measures of other companies. Descriptions of these non-GAAP financial measures and management’s reasons for discussing them are provided in the following appendix to the presentation.

APPENDIX

NON-GAAP RECONCILIATION

30

RECONCILIATION BETWEENNET INCOME AND EBITDA

Earnings before interest, taxes depreciation and amortization (EBITDA) is a non-GAAP financial measurement. Management uses EBITDA because it believes that such a measurement is a widely accepted financial indicator used by investors and analysts to analyze and compare companies on the basis of operating performance and that this measurement may be used by some investors and others to make informed investment decisions. In addition, EBITDA is used in the financial ratios included in the Company’s Credit Agreement and Senior Notes Indenture. You should not consider it in isolation from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. EBITDA calculations by one company may not be comparable to EBITDA calculations made by another company. The following table provides a reconciliation between net income (loss) (a GAAP financial measure) and EBITDA (a non-GAAP financial measure) for the Company’s segments and on a consolidated basis:

Slide 8Reconciliation of Net Income (Loss) to EBITDAFor year ending December 31, 2003(in thousands)

WellIntervention Marine Rental tools Other Unallocated

Consolidatedtotal

Net Income (Loss) $24,389 $9,031 $37,075 $595 ($40,576) $30,514

Add: Interest, net 22,268 22,268 Income taxes 18,308 18,308 Depreciation and Amortization 12,362 6,665 25,696 4,130 48,853

Less: Other income (2,762) (2,762)

EBITDA $36,751 $12,934 $62,771 $4,725 $0 $117,181

31

RECONCILIATION BETWEENNET INCOME AND EBITDA

Slide 25

(1) The EBITDA calculation for the fiscal years ending December 31, 1996, 1997, 1998 and 1999 reflect the summation of audited financial statements for Superior Energy Services, Inc. and Cardinal Holding Corp.

When we acquired Cardinal Holding Corp. on July 15, 1999, the transaction was treated for accounting purposes as if Cardinal acquired us. Because we were the Company being “acquired” for accounting purposes, financial information in our financial statements and filings with the Securities and Exchange Commission for periods prior to the merger represents the results of Cardinal’s operations, and financial information for periods following the merger represents the results of the combined companies. Cardinal’s historical results were substantially different than ours for the same periods and reflected substantial non-cash and extraordinary charges associated with a recapitalization and refinancing.

Reconciliation of Net Income to EBITDA(in thousands)

1996 (1) 1997 (1) 1998 (1) 1999 (1) 2000 2001 2002 2003

Income before extraordinary loss andcumulative effect of change in accounting principle $6,826 $13,776 ($2,905) $311 $19,881 $51,187 $21,886 $30,514

Add: Interest, net 3,575 6,186 14,696 13,617 10,180 18,195 21,354 22,268 Income taxes 3,391 9,411 6,128 826 13,298 35,571 13,701 18,308 Depreciation and Amortization 4,832 7,479 14,016 16,911 22,255 33,446 41,595 48,853 Merger termination, net of gain on sale of sub 1,061 Other expense 1,150 Special charges 13,763

Less: Other income (2,762)

EBITDA $18,624 $38,002 $46,759 $31,665 $65,614 $138,399 $98,536 $117,181

For fiscal year ending December 31,

32

Slide 26

Free cash flow is a non-GAAP financial measurement. Management uses free cash flow because it believes that such a measurement is a widely accepted financial indicator used by investors and analysts to analyze and compare companies on the basis of operating performance and that this measurement may be used by some investors and others to make informed investment decisions, though their definitions may vary. Management uses the free cash flow measure in analyzing the Company’s liquidity. This non-GAAP financial measure should not be considered in isolation or as an alternative to net income or operating income (GAAP financial measures) as an indicator of the Company’s operating performance (see the accompanying consolidated statements of income), or to net cash provided by operating activities (a GAAP financial measure) as a measure of the Company’s liquidity (see the accompanying consolidated statements of cash flow). Free cash flow calculations by one company may not be comparable to free cash flow calculations made by another company.

FREE CASH FLOW

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The Power of ONE