10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

or

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from          to

Commission File No. 001-34037

SUPERIOR ENERGY SERVICES, INC.

(Exact name of registrant as specified in its charter)

Delaware	75-2379388
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
1001 Louisiana Street, Suite 2900	77002
Houston, TX	(Zip Code)
(Address of principal executive offices)

Registrant’s telephone number, including area code: (713) 654-2200

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer    ☒		Accelerated filer                             ☐
Non-accelerated filer      ☐	(do not check if smaller reporting company)	Smaller reporting company            ☐
		Emerging growth company            ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  ☐  No ☒

The number of shares of the registrant’s common stock outstanding on April 20, 2018 was 154,237,551.

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

Quarterly Report on Form 10-Q for

the Quarterly Period Ended March 31, 2018

TABLE OF CONTENTS

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements and Notes	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	24
Item 4.	Controls and Procedures	24
PART II.	OTHER INFORMATION
Item 1	Legal Proceedings	25
Item 1A.	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 6.	Exhibits	25

2

PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
March 31, 2018 and December 31, 2017
(in thousands, except share data)
(unaudited)
	3/31/2018		12/31/2017
ASSETS
Current assets:
Cash and cash equivalents	$	90,438	$	172,000
Accounts receivable, net of allowance for doubtful accounts of $25,762 and
$29,037 at March 31, 2018 and December 31, 2017, respectively		443,253		398,056
Income taxes receivable		-		959
Prepaid expenses		45,330		42,128
Inventory and other current assets		149,484		134,032
Assets held for sale		3,860		13,644
Total current assets		732,365		760,819
Property, plant and equipment, net of accumulated depreciation and depletion of $2,804,983 and $2,736,620 at March 31, 2018 and December 31, 2017, respectively		1,300,897		1,316,944
Goodwill		809,342		807,860
Notes receivable		61,087		60,149
Restricted cash		20,585		20,483
Intangible and other long-term assets, net of accumulated amortization of $86,709 and $83,359 at March 31, 2018 and December 31, 2017, respectively		140,487		143,970
Total assets	$	3,064,763	$	3,110,225
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	148,499	$	119,716
Accrued expenses		215,801		221,757
Income taxes payable		934		-
Current portion of decommissioning liabilities		22,287		27,261
Current maturities of long-term debt		744		-
Liabilities held for sale		4,851		6,463
Total current liabilities		393,116		375,197
Deferred income taxes		48,773		61,058
Decommissioning liabilities		104,088		103,136
Long-term debt, net		1,280,569		1,279,771
Other long-term liabilities		160,048		158,634
Stockholders’ equity:
Preferred stock of $0.01 par value.  Authorized - 5,000,000 shares; none issued		-		-
Common stock of $0.001 par value
Authorized-250,000,000, Issued and Outstanding - 154,237,262 at March 31, 2018 Authorized-250,000,000, Issued and Outstanding - 153,263,097 at December 31, 2017		154		153
Additional paid in capital		2,714,236		2,713,161
Accumulated other comprehensive loss, net		(63,039)		(67,427)
Retained deficit		(1,573,182)		(1,513,458)
Total stockholders’ equity		1,078,169		1,132,429
Total liabilities and stockholders’ equity	$	3,064,763	$	3,110,225
See accompanying notes to condensed consolidated financial statements.

3

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
Three Months Ended March 31, 2018 and 2017
(in thousands, except per share data)
(unaudited)
	2018		2017
Revenues:
Services	$	399,768	$	334,450
Rentals		82,550		66,486
Total revenues		482,318		400,936
Costs and expenses:
Cost of services (exclusive of depreciation, depletion, amortization and accretion)		311,139		296,434
Cost of rentals (exclusive of depreciation, depletion, amortization and accretion)		32,321		25,552
Depreciation, depletion, amortization and accretion - services		87,747		95,330
Depreciation, depletion, amortization and accretion - rentals		17,972		18,951
General and administrative expenses		75,820		75,493
Loss from operations		(42,681)		(110,824)
Other income (expense):
Interest expense, net		(24,887)		(24,250)
Other income (expense)		(1,735)		649
Loss from continuing operations before income taxes		(69,303)		(134,425)
Income taxes		(9,355)		(44,764)
Net loss from continuing operations		(59,948)		(89,661)
Income (loss) from discontinued operations, net of income tax		224		(1,998)
Net loss	$	(59,724)	$	(91,659)
Loss per share information:
Basic and diluted:
Net loss from continuing operations	$	(0.39)	$	(0.59)
Loss from discontinued operations		-		(0.01)
Net loss	$	(0.39)	$	(0.60)
Weighted average common shares used in computing loss per share:
Basic and diluted		154,121		152,701

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Loss
Three Months Ended March 31, 2018 and 2017
(in thousands)
(unaudited)
	2018		2017
Net loss	$	(59,724)	$	(91,659)
Change in cumulative translation adjustment, net of tax		4,388		1,724
Comprehensive loss	$	(55,336)	$	(89,935)
See accompanying notes to condensed consolidated financial statements.

4

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
Three Months Ended March 31, 2018 and 2017
(in thousands)
(unaudited)
	2018		2017
Cash flows from operating activities:
Net loss	$	(59,724)	$	(91,659)
Adjustments to reconcile net loss to net cash provided by operating   activities:
Depreciation, depletion, amortization and accretion		105,719		114,281
Deferred income taxes		(12,285)		(29,747)
Stock based compensation expense		8,197		10,691
Other reconciling items, net		(987)		(1,430)
Changes in operating assets and liabilities:
Accounts receivable		(44,692)		(32,441)
Inventory and other current assets		(15,620)		(8,826)
Accounts payable		16,810		11,731
Accrued expenses		(14,501)		17,673
Income taxes		1,499		(20,496)
Other, net		(9,374)		(12,502)
Net cash used in operating activities		(24,958)		(42,725)
Cash flows from investing activities:
Payments for capital expenditures		(65,734)		(21,188)
Proceeds from sales of assets		12,135		4,090
Net cash used in investing activities		(53,599)		(17,098)
Cash flows from financing activities:
Proceeds from issuance of short-term debt		744		-
Tax withholdings for vested restricted stock units		(5,155)		(8,220)
Other		(304)		(486)
Net cash used in financing activities		(4,715)		(8,706)
Effect of exchange rate changes on cash		1,812		2,194
Net decrease in cash, cash equivalents, and restricted cash		(81,460)		(66,335)
Cash, cash equivalents, and restricted cash at beginning of period		192,483		246,092
Cash, cash equivalents, and restricted cash at end of period	$	111,023	$	179,757
See accompanying notes to condensed consolidated financial statements.

5

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

Three Months Ended March 31, 2018

(1)Basis of Presentation

Certain information and footnote disclosures normally in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC); however, management believes the disclosures that are made are adequate to make the information presented not misleading.  These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Superior Energy Services, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2017, and Management’s Discussion and Analysis of Financial Condition and Results of Operations herein.

The financial information of Superior Energy Services, Inc. and its subsidiaries (the Company) for the three months ended March 31, 2018 and 2017 has not been audited.  However, in the opinion of management, all adjustments necessary to present fairly the results of operations for the periods presented have been included therein.  Certain previously reported amounts have been reclassified to conform to the 2018 presentation.  The results of operations for the first three months of the year are not necessarily indicative of the results of operations that might be expected for the entire year. 

Due to the nature of the Company’s business, the Company is involved, from time to time, in routine litigation or subject to disputes or claims regarding its business activities. Legal costs related to these matters are expensed as incurred.  In management’s opinion, none of the pending litigation, disputes or claims is expected to have a material adverse effect on the Company’s financial condition, results of operations or liquidity.

The Company evaluates events that occur after the balance sheet date but before the financial statements are issued for potential recognition or disclosure.  Based on the evaluation, the Company determined that there were no material subsequent events for recognition or disclosure.

(2)Revenues

Adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers

Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606).  The Company adopted this ASU using the modified retrospective adoption method.  There was no impact on the condensed consolidated financial statements and no cumulative effect adjustment was recognized.

Revenue Recognition

Revenues are recognized when performance obligations are satisfied in accordance with contractual terms, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services rendered or rentals provided.  Taxes collected from customers and remitted to governmental authorities and revenues are reported on a net basis in the Company’s financial statements.

Performance Obligations

A performance obligation arises under contracts with customers to render services or provide rentals, and is the unit of account under Topic 606.  The Company accounts for services rendered and rentals provided separately if they are distinct and the service or rental is separately identifiable from other items provided to a customer and if a customer can benefit from the services rendered or rentals provided on its own or with other resources that are readily available to the customer.  A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.  A contract’s standalone selling prices are determined based on the prices that the Company charges for its services rendered and rentals provided.  The majority of the Company’s performance obligations are satisfied over time, which is generally represented by a period of 30 days or less.  The Company’s payment terms vary by the type of products or services offered.  The term between invoicing and when the payment is due is typically 30 days.

Services revenue primarily represents amounts charged to customers for the completion of services rendered, including labor, products and supplies necessary to perform the service.  Rates for these services vary depending on the type of services provided and can be based on a per job, per hour or per day basis.

Rentals revenue is, primarily priced on a per day, per man hour or similar basis and consists of fees charged to customers for use of the Company’s rental equipment over the term of the rental period, which is generally less than twelve months.

The Company expenses sales commissions when incurred because the amortization period would have been one year or less.

6

The following table presents the Company’s revenues by segment disaggregated by geography (in thousands):

	Three Months Ended March 31,
		2018		2017
U.S. land
Drilling Products and Services	$	40,717	$	21,162
Onshore Completion and Workover Services		231,489		204,979
Production Services		52,457		23,435
Technical Solutions		6,833		9,085
Total U.S. land	$	331,496	$	258,661
Gulf of Mexico
Drilling Products and Services	$	20,989	$	23,485
Onshore Completion and Workover Services		-		-
Production Services		17,500		17,746
Technical Solutions		37,562		33,717
Total Gulf of Mexico	$	76,051	$	74,948
International
Drilling Products and Services	$	23,496	$	23,784
Onshore Completion and Workover Services		-		-
Production Services		30,760		27,424
Technical Solutions		20,515		16,119
Total International	$	74,771	$	67,327
Total Revenues	$	482,318	$	400,936

The following table presents the Company’s revenues by segment disaggregated by type (in thousands):

	Three Months Ended March 31,
		2018		2017
Services
Drilling Products and Services	$	24,005	$	16,871
Onshore Completion and Workover Services		221,347		199,446
Production Services		94,614		63,282
Technical Solutions		59,802		54,851
Total services	$	399,768	$	334,450
Rentals
Drilling Products and Services	$	61,197	$	51,560
Onshore Completion and Workover Services		10,142		5,533
Production Services		6,103		5,323
Technical Solutions		5,108		4,070
Total rentals	$	82,550	$	66,486
Total Revenues	$	482,318	$	400,936

7

(3)Inventory

Inventories are stated at the lower of cost or net realizable value.  The Company applies net realizable value and obsolescence to the gross value of the inventory.  Cost is determined using the first-in, first-out or weighted-average cost methods for finished goods and work-in-process.  Supplies and consumables primarily consist of products used in our services provided to customers.  The components of the inventory balances are as follows (in thousands):

	March 31, 2018		December 31, 2017
Finished goods	$	67,635	$	61,764
Raw materials		14,140		13,727
Work-in-process		8,419		6,174
Supplies and consumables		25,102		24,923
Total	$	115,296	$	106,588

(4)Notes Receivable

Notes receivable consist of a commitment from the seller of an oil and gas property acquired by the Company related to costs associated with the abandonment of the acquired property.  Pursuant to an agreement with the seller, the Company will invoice the seller an agreed upon amount at the completion of certain decommissioning activities.  The gross amount of this obligation totals $115.0 million and is recorded at present value using an effective interest rate of 6.58%.  The related discount is amortized to interest income based on the expected timing of completion of the decommissioning activities.  The Company recorded interest income related to notes receivable of $1.0 million and $0.8 million for the three months ended March 31, 2018 and 2017, respectively.

(5)Decommissioning Liabilities

The Company’s decommissioning liabilities associated with an oil and gas property and its related assets consist of costs related to the plugging of wells, the removal of the related platform and equipment, and site restoration.  The Company reviews the adequacy of its decommissioning liabilities whenever indicators suggest that the estimated cash flows needed to satisfy the liabilities have changed materially.  The Company had decommissioning liabilities of $126.4 million and $130.4 million at March 31, 2018 and December 31, 2017, respectively.

(6)Debt

The Company’s outstanding debt is as follows (in thousands):

	March 31, 2018				December 31, 2017
	Long-term		Current		Long-term
Senior unsecured notes due September 2024	$	500,000	$	-	$	500,000
Senior unsecured notes due December 2021		800,000		-		800,000
Other		-		744		-
Total debt, gross		1,300,000		744		1,300,000
Unamortized debt issuance costs		(19,431)		-		(20,229)
Total debt, net	$	1,280,569	$	744	$	1,279,771

Credit Facility

The Company has a $300 million asset-based revolving credit facility which matures in October 2022.  The borrowing base under the credit facility is calculated based on a formula referencing the borrower’s and the subsidiary guarantors’ eligible accounts receivable, eligible inventory and eligible premium rental drill pipe less reserves.  Availability under the credit facility is the lesser of (i) the commitments, (ii) the borrowing base and (iii) the highest principal amount permitted to be secured under the indenture governing the 7 1/8% senior unsecured notes due 2021.  At March 31, 2018, the borrowing base was $267.7 million and the Company had $35.3 million of letters of credit outstanding under the revolving credit facility.  The borrowing base may increase or decrease as a result of, among other things, changes to the Company’s consolidated tangible assets.  The credit agreement contains various covenants, including, but not limited to, limitations on the incurrence of indebtedness, permitted investments, liens on assets, making distributions, transactions with affiliates, merger, consolidations, dispositions of assets and other provisions customary in similar types of agreements.

8

Senior Unsecured Notes

The Company has outstanding $500 million of 7 3/4% senior unsecured notes due September 2024.  The indenture governing the 7 3/4% senior unsecured notes due 2024 requires semi-annual interest payments on March 15th and September 15th of each year, beginning on March 15, 2018, through the maturity date of September 15, 2024.

The Company also has outstanding $800 million of 7 1/8% senior unsecured notes due December 2021.  The indenture governing the 7 1/8% senior unsecured notes due 2021 requires semi-annual interest payments on June 15th and December 15th of each year through the maturity date of December 15, 2021. 

(7)  Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date.  Inputs used in determining fair value are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable.  The three input levels of the fair value hierarchy are as follows.  

Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.

Level 2: Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical assets or liabilities in inactive markets; or model-derived valuations or other inputs that can be corroborated by observable market data.

Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

The following tables provide a summary of the financial assets and liabilities measured at fair value on a recurring basis (in thousands):

	Fair Value at March 31, 2018
	Level 1		Level 2		Level 3		Total
Intangible and other long-term assets, net
Non-qualified deferred compensation assets	$	371	$	13,741	$	-	$	14,112
Accounts payable
Non-qualified deferred compensation liabilities	$	-	$	1,007	$	-	$	1,007
Other long-term liabilities
Non-qualified deferred compensation liabilities	$	-	$	20,268	$	-	$	20,268
	Fair Value at December 31, 2017
	Level 1		Level 2		Level 3		Total
Intangible and other long-term assets, net
Non-qualified deferred compensation assets	$	370	$	13,817	$	-	$	14,187
Accounts payable
Non-qualified deferred compensation liabilities	$	-	$	1,253	$	-	$	1,253
Other long-term liabilities
Non-qualified deferred compensation liabilities	$	-	$	21,085	$	-	$	21,085

The Company’s non-qualified deferred compensation plans allow officers, certain highly compensated employees and non-employee directors to defer receipt of a portion of their compensation and contribute such amounts to one or more hypothetical investment funds.  These investments are reported at fair value based on unadjusted quoted prices in active markets for identifiable assets and observable inputs for similar assets and liabilities, which represent Levels 1 and 2, respectively, in the fair value hierarchy. 

The fair value of the Company’s cash equivalents and accounts receivable approximates their carrying amounts.  The fair value of the Company’s long-term debt was approximately $1,332.5 million and $1,347.0million as of March 31, 2018 and December 31, 2017, respectively.  The fair value of these debt instruments is determined by reference to the market value of the instruments as quoted in over-the-counter markets, which are Level 1 inputs.

9

(8)  Segment Information

Business Segments

The Drilling Products and Services segment rents and sells premium drill pipe, bottom hole assemblies, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, completion, production and workover activities.  It also provides on-site accommodations and machining services.  The Onshore Completion and Workover Services segment provides pressure pumping services used to complete and stimulate production in new oil and gas wells, fluid handling services and well servicing rigs that provide a variety of well completion, workover and maintenance services.  The Production Services segment provides intervention services such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, production testing and optimization, and remedial pumping services.  The Technical Solutions segment provides services typically requiring specialized engineering, manufacturing or project planning, including well containment systems, stimulation and sand control services and well plug and abandonment services. It also includes production and sale of oil and gas. 

The Company evaluates the performance of its reportable segments based on income or loss from operations excluding allocated corporate expenses.  The segment measure is calculated as follows: segment revenues less segment operating expenses, depreciation, depletion, amortization and accretion expense and reduction in value of assets.  The Company uses this segment measure to evaluate its reportable segments because it is the measure that is most consistent with how the Company organizes and manages its business operations.  Corporate and other costs primarily include expenses related to support functions, salaries and benefits for corporate employees and stock-based compensation expense.

Summarized financial information for the Company’s segments is as follows (in thousands): 

Three Months Ended March 31, 2018
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	85,202	$	231,489	$	100,717	$	64,910	$	-	$	482,318
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		35,070		180,651		85,936		41,803		-		343,460
Depreciation, depletion, amortization
and accretion		29,641		47,655		19,280		7,730		1,413		105,719
General and administrative expenses		12,524		13,226		9,593		14,060		26,417		75,820
Income (loss) from operations		7,967		(10,043)		(14,092)		1,317		(27,830)		(42,681)
Interest income (expense), net		-		-		-		956		(25,843)		(24,887)
Other expense		-		-		-		-		(1,735)		(1,735)
Income (loss) from continuing operations
before income taxes	$	7,967	$	(10,043)	$	(14,092)	$	2,273	$	(55,408)	$	(69,303)

10

Three Months Ended March 31, 2017
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	68,431		204,979		68,605		58,921	$	-	$	400,936
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		29,058		193,689		60,780		38,459		-		321,986
Depreciation, depletion, amortization
and accretion		34,729		49,147		20,589		8,376		1,440		114,281
General and administrative expenses		12,966		11,271		11,281		13,568		26,407		75,493
Loss from operations		(8,322)		(49,128)		(24,045)		(1,482)		(27,847)		(110,824)
Interest income (expense), net		-		-		-		790		(25,040)		(24,250)
Other income		-		-		-		-		649		649
Loss from continuing operations    before income taxes	$	(8,322)	$	(49,128)	$	(24,045)	$	(692)	$	(52,238)	$	(134,425)

Identifiable Assets
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
March 31, 2018	$	585,933	$	1,553,817	$	508,971	$	360,383	$	55,659	$	3,064,763
December 31, 2017	$	662,968	$	1,501,214	$	512,256	$	377,549	$	56,238	$	3,110,225

Geographic Segments

The Company attributes revenue to various countries based on the location of where services are performed or the destination of the drilling products or equipment sold or rented.  Long-lived assets consist primarily of property, plant and equipment and are attributed to various countries based on the physical location of the asset at the end of a period.  The Company’s revenue attributed to the U.S. and to other countries and the value of its long-lived assets by those locations are as follows (in thousands):

Revenues
	Three Months Ended March 31,
	2018		2017
United States	$	407,547	$	333,609
Other countries		74,771		67,327
Total	$	482,318	$	400,936
Long-Lived Assets
	March 31, 2018		December 31, 2017
United States	$	1,064,635	$	1,064,823
Other countries		236,262		252,121
Total	$	1,300,897	$	1,316,944

11

(9)Stock-Based Compensation Plans

The Company maintains various stock incentive plans that provide long-term incentives to the Company’s key employees, including officers, directors, consultants and advisors (Eligible Participants).  Under the stock incentive plans, the Company may grant incentive stock options, restricted stock, restricted stock units, stock appreciation rights, other stock-based awards or any combination thereof to Eligible Participants.  The Company’s total compensation expense related to these plans was approximately $7.9 million and $10.4 million for the three months ended March 31, 2018 and 2017, respectively, which is reflected in general and administrative expenses.

(10)  Income Taxes

The Company had $30.7 million of unrecorded tax benefits as of March 31, 2018 and December 31, 2017, all of which would impact the Company’s effective tax rate if recognized.  It is the Company’s policy to recognize interest and applicable penalties, if any, related to uncertain tax positions in income tax expense.  The Company continues to evaluate the impact of the Tax Cuts and Jobs Act of 2017 and no revisions were recorded during the three months ended March 31, 2018.

(11) Earnings per Share

Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per share is computed in the same manner as basic earnings per share except that the denominator is increased to include the number of additional common shares that could have been outstanding assuming the exercise of stock options and the conversion of restricted stock units.

For the three months ended March 31, 2018 and 2017, the Company incurred a loss from continuing operations; therefore the impact of any incremental shares would be anti-dilutive.

(12)  Supplemental Guarantor Information

SESI, L.L.C. (the Issuer), a 100% owned subsidiary of Superior Energy Services, Inc. (Parent), has $500 million of 7 3/4% senior unsecured notes due 2024. The Parent, along with certain of its 100% owned domestic subsidiaries, fully and unconditionally guaranteed such senior unsecured notes, and such guarantees are joint and several.

12

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
March 31, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	41,773	$	582	$	48,083	$	-	$	90,438
Accounts receivable, net		-		(3,581)		383,048		63,786		-		443,253
Intercompany accounts receivable		-		6,623		58,742		5,601		(70,966)		-
Other current assets		-		10,944		146,842		37,028		-		194,814
Assets held for sale		-		-		-		3,860		-		3,860
Total current assets		-		55,759		589,214		158,358		(70,966)		732,365
Property, plant and equipment, net		-		11,049		1,087,416		202,432		-		1,300,897
Goodwill		-		-		657,099		152,243		-		809,342
Notes receivable		-		-		61,087		-		-		61,087
Long-term intercompany accounts receivable		2,222,542		-		1,987,499		179,940		(4,389,981)		-
Equity investments of consolidated subsidiaries		(1,144,117)		4,459,353		6,422		-		(3,321,658)		-
Restricted cash		-		-		20,585		-		-		20,585
Intangible and other long-term assets, net		-		21,548		111,078		7,861		-		140,487
Total assets	$	1,078,425	$	4,547,709	$	4,520,400	$	700,834	$	(7,782,605)	$	3,064,763
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	-	$	11,611	$	118,464	$	18,424	$	-	$	148,499
Accrued expenses		256		113,943		77,410		24,192		-		215,801
Income taxes payable		-		304		-		630		-		934
Intercompany accounts payable		-		774		7,909		62,283		(70,966)		-
Current portion of decommissioning liabilities		-		-		20,670		1,617		-		22,287
Current maturities of long-term debt		-		-		-		744		-		744
Liabilities held for sale		-		-		-		4,851		-		4,851
Total current liabilities		256		126,632		224,453		112,741		(70,966)		393,116
Deferred income taxes		-		(160,785)		205,902		3,656		-		48,773
Decommissioning liabilities		-		-		102,244		1,844		-		104,088
Long-term debt, net		-		1,280,569		-		-		-		1,280,569
Long-term intercompany accounts payable		-		4,389,981		-		-		(4,389,981)		-
Other long-term liabilities		-		55,429		78,430		26,189		-		160,048
Total stockholders' equity (deficit)		1,078,169		(1,144,117)		3,909,371		556,404		(3,321,658)		1,078,169
Total liabilities and stockholders' equity	$	1,078,425	$	4,547,709	$	4,520,400	$	700,834	$	(7,782,605)	$	3,064,763

13

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
December 31, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	126,533	$	440	$	45,027	$	-	$	172,000
Accounts receivable, net		-		-		332,402		70,889		(5,235)		398,056
Income taxes receivable		-		-		(221)		1,180		-		959
Intercompany accounts receivable		-		6,460		58,375		5,865		(70,700)		-
Other current assets		-		11,895		129,970		34,295		-		176,160
Assets held for sale		-		-		-		13,644		-		13,644
Total current assets		-		144,888		520,966		170,900		(75,935)		760,819
Property, plant and equipment, net		-		12,055		1,093,446		211,443		-		1,316,944
Goodwill		-		-		657,099		150,761		-		807,860
Notes receivable		-		-		60,149		-		-		60,149
Long-term intercompany accounts receivable		2,221,697		-		2,032,056		177,842		(4,431,595)		-
Equity investments of consolidated subsidiaries		(1,088,736)		4,481,702		6,590		-		(3,399,556)		-
Restricted cash		-		-		20,483		-		-		20,483
Intangible and other long-term assets, net		-		22,118		113,632		8,220		-		143,970
Total assets	$	1,132,961	$	4,660,763	$	4,504,421	$	719,166	$	(7,907,086)	$	3,110,225
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	-	$	14,339	$	89,714	$	20,898	$	(5,235)	$	119,716
Accrued expenses		532		116,767		80,825		23,633		-		221,757
Intercompany accounts payable		-		724		7,918		62,058		(70,700)		-
Current portion of decommissioning liabilities		-		-		25,670		1,591		-		27,261
Liabilities held for sale		-		-		-		6,463		-		6,463
Total current liabilities		532		131,830		204,127		114,643		(75,935)		375,197
Deferred income taxes		-		(147,116)		205,386		2,788		-		61,058
Decommissioning liabilities		-		-		101,293		1,843		-		103,136
Long-term debt, net		-		1,279,771		-		-		-		1,279,771
Long-term intercompany accounts payable		-		4,431,595		-		-		(4,431,595)		-
Other long-term liabilities		-		53,419		79,061		26,154		-		158,634
Total stockholders' equity (deficit)		1,132,429		(1,088,736)		3,914,554		573,738		(3,399,556)		1,132,429
Total liabilities and stockholders' equity	$	1,132,961	$	4,660,763	$	4,504,421	$	719,166	$	(7,907,086)	$	3,110,225

14

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended March 31, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	435,134	$	53,259	$	(6,075)	$	482,318
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(2,626)		311,064		41,097		(6,075)		343,460
Depreciation, depletion, amortization and
accretion		-		1,019		92,714		11,986		-		105,719
General and administrative expenses		-		25,664		38,689		11,467		-		75,820
Loss from operations		-		(24,057)		(7,333)		(11,291)		-		(42,681)
Other income (expense):
Interest expense, net		-		(25,870)		967		16		-		(24,887)
Other income (expense)		-		(66)		274		(1,943)		-		(1,735)
Equity in losses of consolidated subsidiaries		(59,724)		(17,470)		(168)		-		77,362		-
Loss from continuing operations before income taxes		(59,724)		(67,463)		(6,260)		(13,218)		77,362		(69,303)
Income taxes		-		(7,739)		(1,076)		(540)		-		(9,355)
Net loss from continuing operations		(59,724)		(59,724)		(5,184)		(12,678)		77,362		(59,948)
Loss from discontinued operations, net of income tax		-		-		-		224		-		224
Net loss	$	(59,724)	$	(59,724)	$	(5,184)	$	(12,454)	$	77,362	$	(59,724)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Three Months Ended March 31, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net loss	$	(59,724)	$	(59,724)	$	(5,184)	$	(12,454)	$	77,362	$	(59,724)
Change in cumulative translation adjustment, net of tax		4,388		4,388		-		4,388		(8,776)		4,388
Comprehensive loss	$	(55,336)	$	(55,336)	$	(5,184)	$	(8,066)	$	68,586	$	(55,336)

15

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended March 31, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	353,860	$	52,188	$	(5,112)	$	400,936
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		760		284,960		41,378		(5,112)		321,986
Depreciation, depletion, amortization and
accretion		-		1,046		100,568		12,667		-		114,281
General and administrative expenses		-		25,935		37,144		12,414		-		75,493
Loss from operations		-		(27,741)		(68,812)		(14,271)		-		(110,824)
Other income (expense):
Interest expense, net		-		(25,241)		802		189		-		(24,250)
Other income (expense)		-		(411)		241		819		-		649
Equity in losses of consolidated subsidiaries		(91,659)		(54,562)		(60)		-		146,281		-
Loss from continuing operations before
income taxes		(91,659)		(107,955)		(67,829)		(13,263)		146,281		(134,425)
Income taxes		-		(16,296)		(28,968)		500		-		(44,764)
Net income (loss) from continuing operations		(91,659)		(91,659)		(38,861)		(13,763)		146,281		(89,661)
Loss from discontinued operations, net of income tax		-		-		-		(1,998)		-		(1,998)
Net loss	$	(91,659)	$	(91,659)	$	(38,861)	$	(15,761)	$	146,281	$	(91,659)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Three Months Ended March 31, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net loss	$	(91,659)	$	(91,659)	$	(38,861)	$	(15,761)	$	146,281	$	(91,659)
Change in cumulative translation adjustment, net of tax		1,724		1,724		-		1,724		(3,448)		1,724
Comprehensive loss	$	(89,935)	$	(89,935)	$	(38,861)	$	(14,037)	$	142,833	$	(89,935)

16

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Three Months Ended March 31, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	6,229	$	(42,958)	$	17,549	$	(15,047)	$	9,269	$	(24,958)
Cash flows from investing activities:
Payments for capital expenditures		-		-		(63,489)		(2,245)		-		(65,734)
Proceeds from sales of assets		-		-		2,003		10,132		-		12,135
Net cash used in investing activities		-		-		(61,486)		7,887		-		(53,599)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		-		-		-		744		-		744
Intercompany dividends		-		-		-		9,269		(9,269)		-
Changes in notes with affiliated companies, net		(845)		(41,727)		44,181		(1,609)		-		-
Other		(5,384)		(75)		-		-		-		(5,459)
Net cash provided by (used in) financing activities		(6,229)		(41,802)		44,181		8,404		(9,269)		(4,715)
Effect of exchange rate changes on cash		-		-		-		1,812		-		1,812
Net decrease in cash, cash equivalents, and restricted cash		-		(84,760)		244		3,056		-		(81,460)
Cash, cash equivalents, and restricted cash at beginning of period		-		126,533		20,923		45,027		-		192,483
Cash, cash equivalents, and restricted cash at end of period	$	-	$	41,773	$	21,167	$	48,083	$	-	$	111,023

17

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Three Months Ended March 31, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	6,832	$	(42,698)	$	(560)	$	(6,299)	$	(42,725)
Cash flows from investing activities:
Payments for capital expenditures		-		(70)		(16,231)		(4,887)		(21,188)
Other		-		-		4,090		-		4,090
Net cash used in investing activities		-		(70)		(12,141)		(4,887)		(17,098)
Cash flows from financing activities:
Changes in notes with affiliated companies, net		1,723		18,058		(17,874)		(1,907)		-
Other		(8,555)		(151)		-		-		(8,706)
Net cash used in financing activities		(6,832)		17,907		(17,874)		(1,907)		(8,706)
Effect of exchange rate changes on cash		-		-		-		2,194		2,194
Net decrease in cash, cash equivalents, and restricted cash		-		(24,861)		(30,575)		(10,899)		(66,335)
Cash, cash equivalents, and restricted cash at beginning of period		-		127,445		51,789		66,858		246,092
Cash, cash equivalents, and restricted cash at end of period	$	-	$	102,584	$	21,214	$	55,959	$	179,757

(13)  Discontinued Operations

At March 31, 2018, the remaining assets of the Company’s former subsea construction business were being actively marketed and the Company’s management is committed to selling the remaining assets, which were classified as held for sale. 

The following summarizes the assets and liabilities related to the businesses reported as discontinued operations (in thousands):

	March 31, 2018		December 31, 2017
Current assets	$	2,860	$	3,144
Property, plant and equipment, net		1,000		10,500
Total assets	$	3,860	$	13,644
Current liabilities	$	4,851	$	6,463

Income/(loss) from discontinued operations for the three months ended March 31, 2018 and 2017 was $0.2 million income and $(2.0) million loss, respectively. 

(14)  New Accounting Pronouncements

Standards adopted

In May 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting.  The guidance in this ASU applies to all entities that change the terms or conditions of a share-based payment award.  The amendments provide clarity and reduce diversity in practice as well as cost and complexity when applying the guidance in Topic 718, Compensation – Stock Compensation, to the modification of the terms and conditions of a share-based payment award.  The amendments in ASU 2017-09 include guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718.  The Company adopted the accounting guidance as of January 1, 2018.  The adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements. 

18

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business.  The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business.  The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.  The amendments provide a more robust framework to use in determining when a set of assets and activities is a business.  The Company adopted the accounting guidance as of January 1, 2018.  The adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements. 

In November 2016, the FASB issued ASU 2016-18, Statements of Cash Flows (Topic 230): Restricted Cash.  The guidance in this ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents.  As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows.  The Company adopted the accounting guidance as of January 1, 2018 and applied it retrospectively to the periods presented in the Company’s condensed consolidated statements of cash flows.  For the three months ended March 31, 2017, net cash used in investing activities was adjusted to exclude the change in restricted cash related to cash held in escrow for the future decommissioning obligations associated with an oil and gas property.  The adjustment resulted in a $30.6 million decrease in net cash used in investing activities for the three months ended March 31, 2017.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.  The guidance in this ASU requires entities to recognize at the transaction date the income tax consequences of intercompany asset transfers other than inventory.  The Company adopted the accounting guidance as of January 1, 2018.  The adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which replaced most existing revenue recognition guidance in GAAP.  The guidance in this ASU requires an entity to recognize the amount of revenue that it expects to be entitled for the transfer of promised goods or services to customers.  The Company adopted the accounting guidance as of January 1, 2018.  The Company adopted this ASU using the modified retrospective adoption method.  There was no impact on the condensed consolidated financial statements and no cumulative effect adjustment was recognized.

Standards not yet adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize the assets and liabilities arising from leases on the balance sheet.  This new ASU will require the lessee to recognize a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months.  For leases with a term of 12 month or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and recognize the lease expense for such leases generally on a straight-line basis over the lease term.  Under the new guidance, the Company will revise its leasing policies to require most of the leases, where the Company is the lessee, to be recognized on the balance sheet as a lease and lease liability.  Further, the Company will separate leases from other contracts where the Company is either the lessor or lessee when the rights conveyed under the contracts indicate there is a lease.  The Company is evaluating the effect ASU 2016-02 will have on its condensed consolidated financial statements.  The Company anticipates that its assets and liabilities will increase by a significant amount.   The new standard is effective for the Company beginning on January 1, 2019. 

19

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q and other documents filed by us with the SEC contain, and future oral or written statements or press releases by us and our management may contain, 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” and “estimates,” variations of such words and similar expressions identify forward-looking statements, although not all forward-looking statements contain these identifying words.  All statements other than statements of historical fact included in this Quarterly Report on Form 10-Q or such other materials regarding our financial position, financial performance, liquidity, strategic alternatives, market outlook, future capital needs, capital allocation plans, business strategies and other plans and objectives of our management for future operations and activities are forward-looking statements. These statements are based on certain assumptions and analyses made by our management in light of its experience and prevailing circumstances on the date such statements are made. Such forward-looking statements, and the assumptions on which they are based, are inherently speculative and are subject to a number of risks and uncertainties that could cause our actual results to differ materially from such statements. Such uncertainties include, but are not limited to: the cyclicality and volatility of the oil and gas industry, including changes in prevailing oil and gas prices or expectations about future prices; operating hazards, including the significant possibility of accidents resulting in personal injury or death, property damage or environmental damage for which we may have limited or no insurance coverage or indemnification rights; the effect of regulatory programs (including regarding worker health and safety laws) and environmental matters on our operations or prospects, including the risk that future changes in the regulation of hydraulic fracturing could reduce or eliminate demand for our pressure pumping and fluid management services, or that future changes in climate change legislation could result in increased operating costs or reduced commodity demand globally; counterparty risks associated with reliance on key suppliers; risks associated with the uncertainty of macroeconomic and business conditions worldwide; changes in competitive and technological factors affecting our operations; credit risk associated with our customer base; the potential inability to retain key employees and skilled workers; challenges with estimating our oil and natural gas reserves and potential liabilities related to our oil and natural gas property; risks associated with potential changes of Bureau of Ocean Energy management security and bonding requirements for offshore platforms; risks inherent in acquiring businesses; risks associated with cyber-attacks; risks associated with business growth during an industry recovery outpacing the capabilities of our infrastructure and workforce; political, legal, economic and other risks and uncertainties associated with our international operations; potential changes in tax laws, adverse positions taken by tax authorities or tax audits impacting our operating results; risks associated with our outstanding debt obligations and the potential effect of limiting our future growth and operations; our continued access to credit markets on favorable terms; the impact that unfavorable or unusual weather conditions could have on our operations; claims, litigation or other proceedings that require cash payments or could impair financial condition; not realizing the benefits of acquisitions or divestitures and volatility of the Company’s common stock . These risks and other uncertainties related to our business are described in detail in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2017. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Investors are cautioned that many of the assumptions on which our forward-looking statements are based are likely to change after such statements are made, including for example the market prices of oil and gas and regulations affecting oil and gas operations, which we cannot control or anticipate. Further, we may make changes to our business strategies and plans (including our capital spending and capital allocation plans) at any time and without notice, based on any changes in the above-listed factors, our assumptions or otherwise, any of which could or will affect our results. For all these reasons, actual events and results may differ materially from those anticipated, estimated, projected or implied by us in our forward-looking statements. We undertake no obligation to update any of our forward-looking statements for any reason and, notwithstanding any changes in our assumptions, changes in our business plans, our actual experience, or other changes. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

Executive Summary

General

We provide a wide variety of services and products to the energy industry.  We serve major, national and independent oil and natural gas exploration and production companies around the world and offer products and services with respect to the various phases of a well’s economic life cycle.  We report our operating results in four business segments: Drilling Products and Services; Onshore Completion and Workover Services; Production Services; and Technical Solutions. 

Industry Trends

The oil and gas industry is both cyclical and seasonal.  The level of spending by oil and gas companies is highly influenced by current and expected demand and future prices of oil and natural gas. Changes in spending result in an increased or decreased demand for our services and products. Rig count is an indicator of the level of spending by oil and gas companies. Our financial performance is significantly affected by the rig count in the U.S. land and offshore market areas as well as oil and natural gas prices and worldwide rig activity, which are summarized in the tables below.

20

	Three Months Ended March 31,
	2018		2017		% Change
Worldwide Rig Count (1)
U.S.:
Land		951		722	32%
Offshore		16		21	-24%
Total		967		743	30%
International (2)		970		939	3%
Worldwide Total		1,937		1,682	15%
Commodity Prices (average)
Crude Oil (West Texas Intermediate)	$	62.91	$	51.62	22%
Natural Gas (Henry Hub)	$	3.07	$	3.02	2%

(1) Estimate of drilling activity as measured by the average active drilling rigs based on Baker Hughes, a GE company, rig count information.

(2) Excludes Canadian Rig Count.

Comparison of the Results of Operations for the Three Months Ended March 31, 2018 and December 31, 2017

For the three months ended March 31, 2018, revenue was $482.3 million and the net loss from continuing operations was $59.9 million, or a $0.39 loss per share.  Net loss was $59.7 million, or a $0.39 loss per share.  This compares to net income from continuing operations of $21.9 million, or $0.14 per diluted share for the three months ended December 31, 2017, on revenue of $497.0 million.  Net income for the three months ended December 31, 2017 was $8.6 million, or $0.06 per diluted share.  Worldwide rig count increased by 4% during the three months ended March 31, 2018 from 1,871 rigs for the three months ended December 31, 2017.  U.S. land rig count increased by 5% for the three months ended March 31, 2018 from 902 rigs for the three months ended December 31, 2017.  The increase in U.S land market drilling activity largely contributed to the overall increase in our total revenues for the three months ended March 31, 2018.   

First quarter 2018 revenue in our Drilling Products and Services segment increased 8% sequentially to $85.2 million, as compared to $79.2 million in the fourth quarter of 2017.  U.S. land revenue increased 16% sequentially to $40.7 million due to the increase in drilling activity during the quarter.  International revenue increased 9% sequentially to $23.5 million due to an increase in rentals of premium drill pipe.  Gulf of Mexico revenue decreased 7% sequentially to $21.0 million primarily due to a decrease in demand for accommodation units.

First quarter 2018 revenue in our Onshore Completion and Workover Services segment remained flat sequentially at $231.5 million.  All of this segment’s revenue is derived from the U.S. land market area.

First quarter 2018 revenue in our Production Services segment decreased 15% sequentially to $100.8 million, as compared to $118.2 million in the fourth quarter of 2017.  U.S. land revenue decreased 5% sequentially to $52.5 million and Gulf of Mexico revenue decreased 12% sequentially to $17.5 million primarily due to a decrease in hydraulic workover and snubbing and coil tubing activities in those markets.  International revenue decreased 29% sequentially to $30.8 million primarily due to a decrease in hydraulic workover and snubbing activities.

First quarter 2018 revenue in our Technical Solutions segment decreased 3% sequentially to $64.8 million, as compared to $66.9 million in the fourth quarter of 2017.  Gulf of Mexico revenue increased 10% sequentially to $37.5 million due to an increase in oil and gas activities and completion tools and products.  U.S. land revenue decreased 16% sequentially to $6.8 million and international revenue decreased 17% sequentially to $20.5 million primarily due to a decrease in demand for well control services.

Comparison of the Results of Operations for the Three Months Ended March 31, 2018 and March 31, 2017

For the three months ended March 31, 2018, our revenue was $482.3 million, an increase of $81.4 million or 20%, as compared to the same period in 2017.  The increase is largely attributable to a 32% increase in the U.S. land rig count.  The net loss from continuing operations was $59.9 million, or a $0.39 loss per share.  Net loss was $59.7 million, or a $0.39 loss per share.  This compares to a net loss from continuing operations for the three months ended March 31, 2017 of $89.7 million, or a $0.59 loss per share.  Net loss for the three months ended March 31, 2017 was $91.7 million, or a $0.60 loss per share.

21

The following table compares our operating results for the three months ended March 31, 2018 and 2017 (in thousands, except percentages).  Cost of services and rentals excludes depreciation, depletion, amortization and accretion for each of our business segments. 

	Revenue							Cost of Services and Rentals
	2018		2017		Change		%	2018		%	2017		%	Change
Drilling Products and
Services	$	85,202	$	68,431	$	16,771	25%	$	35,070	41%	$	29,058	42%	$	6,012
Onshore Completion and
Workover Services		231,489		204,979		26,510	13%		180,651	78%		193,689	94%		(13,038)
Production Services		100,717		68,605		32,112	47%		85,936	85%		60,780	89%		25,156
Technical Solutions		64,910		58,921		5,989	10%		41,803	64%		38,459	65%		3,344
Total	$	482,318	$	400,936	$	81,382	20%	$	343,460	71%	$	321,986	80%	$	21,474

Operating Segments:

Drilling Products and Services Segment

Revenue from our Drilling Products and Services segment increased 25% to $85.2 million for the three months ended March 31, 2018, as compared to $68.4 million for the same period in 2017.  Cost of services and rentals as a percentage of revenue decreased to 41% of segment revenue for the three months ended March 31, 2018, as compared to 42% for the same period in 2017.  Revenue from the U.S. land market areas increased 92% as a result of increases in revenue from rentals of premium drill pipe, bottom hole assemblies and accommodation units, as demand for these rental products increased along with the increase in U.S. land rig count.  The increase was partially offset by decreases in revenue from the Gulf of Mexico and international markets.  Revenue from the Gulf of Mexico market area decreased 11% primarily due to a decrease in revenue from rentals of bottom hole assemblies.  The revenue from the international market areas decreased 1% primarily due to decreases in revenue from rentals of accommodation units and bottom hole assemblies, partially offset by an increase in revenue from rentals of premium drill pipe.     

Onshore Completion and Workover Services Segment

Revenue from our Onshore Completion and Workover Services segment increased 13% to $231.5 million for the three months ended March 31, 2018, as compared to $205.0 million for the same period in 2017.  All of this segment’s revenue is derived from the U.S. land market area, in which rig count increased by 32%.  Cost of services and rentals as a percentage of revenue decreased to 78% of segment revenue for the three months ended March 31, 2018, as compared to 94% for the same period in 2017, primarily due to improved pricing and efficiencies, as well as decreased start-up and fleet reactivation costs for our pressure pumping business.  The increase in revenue is primarily attributable to an increase in activity in our pressure pumping and fluid management businesses. 

Production Services Segment

Revenue from our Production Services segment for the three months ended March 31, 2018 increased by 47% to $100.8 million, as compared to $68.6 million for the same period in 2017.  Cost of services and rentals as a percentage of revenue decreased to 85% of segment revenue for the three months ended March 31, 2018, as compared to 89% for the same period in 2017.  Revenue from the U.S. land market area increased 124%, primarily due to increased activity in coiled tubing and pressure control services.  The revenue from the international market areas increased 12%, primarily due to an increase in hydraulic workover and snubbing and electric line activities.  These increases were partially offset by a decrease in revenue from the Gulf of Mexico market area.  Revenue from Gulf of Mexico market area decreased 1%, primarily due to a decrease in slickline services and specialty rentals, partially offset by an increase in electric line services and hydraulic workover and snubbing activities.   

Technical Solutions Segment

Revenue from our Technical Solutions segment increased 10% to $64.8 million for the three months ended March 31, 2018, as compared to $58.9 million for the same period in 2017.  Cost of services and rentals as a percentage of revenue decreased to 64% of segment revenue for the three months ended March 31, 2018, as compared to 65% for the same period in 2017.  Revenue derived from the Gulf of Mexico market area increased 11%, primarily due to an increase in plug and abandonment services.  Revenue from the international market areas increased 27%, primarily due to an increase in demand for well control services.  These increases were offset by a decrease in revenue from the U.S. land market area, which decreased 25%, primarily due to a decrease in demand for completion tools and products. 

22

Depreciation, Depletion, Amortization and Accretion

Depreciation, depletion, amortization and accretion decreased to $105.7 million during the three months ended March 31, 2018 from $114.3 million during the same period in 2017.  Depreciation and amortization expense decreased for our Drilling Products and Services segment by $5.1 million, or 15%, for our Onshore Completion and Workover Services segment by $1.5 million, or 3%; for our Production Services segment by $1.3 million, or 6%; and for our Technical Solutions segment by $0.6 million, or 8%.  Depreciation expense for Corporate and Other remained flat.  The decrease in depreciation, depletion, amortization and accretion is primarily due to assets becoming fully depreciated.

General and Administrative Expenses

General and administrative expenses were $75.8 million for the three months ended March 31, 2018, as compared to $75.5 million during the same period in 2017.  Despite a 20% increase in revenue, our total general and administrative expenses remained flat.  This demonstrates that we continue to benefit from the steps taken during the industry downturn, to reduce our cost structure and integrate product and service lines.

Income Taxes

Our effective income tax rate for the three months ended March 31, 2018 was 13% compared to a 33% effective income tax rate for the same period in 2017.  The effective tax rate for the three months ended March 31, 2018 was primarily impacted by the enactment of the Tax Cuts and Jobs Act of 2017, including a reduced U.S. corporate tax rate. 

Liquidity and Capital Resources

For the three months ended March 31, 2018, cash used in operating activities was $25.0 million, as compared to cash used in operating activities of $42.7 million for the same period in 2017.  Our primary liquidity needs during the next twelve months are for working capital and capital expenditures.  Our primary sources of liquidity are cash flows from operations and available borrowings under our credit facility.  We had cash and cash equivalents of $90.4 million at March 31, 2018, compared to $172.0 million at December 31, 2017. 

We spent $65.7 million of cash on capital expenditures during the three months ended March 31, 2018.  Approximately $13.3million was used to expand and maintain our Drilling Products and Services segment’s equipment inventory.  Approximately $48.6million was spent on our Onshore Completion and Workover Services segment, primarily to rebuild our pressure pumping fleet.  Approximately $0.8million and $2.1million was spent in our Production Services and Technical Solutions segments, respectively and $0.9 million was spent in Corporate and Other.  We expect to spend up to approximately $225 million on capital expenditures during 2018.  We plan to continue adjusting our capital spending to align with market conditions and customer demand.

We have a $300 million asset-based revolving credit facility which matures in October 2022.  The borrowing base under the credit facility is calculated based on a formula referencing the borrower’s and the subsidiary guarantors’ eligible accounts receivable, eligible inventory and eligible premium rental drill pipe less reserves.  Availability under the credit facility is the lesser of (i) the commitments, (ii) the borrowing base and (iii) the highest principal amount permitted to be secured under the indenture governing the 7 1/8% senior unsecured notes due 2021.  At March 31, 2018, the borrowing base was $267.7 million and we had $35.3 million of letters of credit outstanding under the revolving credit facility.  The borrowing base may increase or decrease as a result of, among other things, changes to the Company’s consolidated tangible assets.  The credit agreement contains various covenants, including, but not limited to, limitations on the incurrence of indebtedness, permitted investments, liens on assets, making distributions, transactions with affiliates, merger, consolidations, dispositions of assets and other provisions customary in similar types of agreements.  At March 31, 2018, we were in compliance with all such covenants.

We have outstanding $500 million of 7 3/4% senior unsecured notes due September 2024.  The indenture governing the 7 3/4% senior unsecured notes due 2024 requires semi-annual interest payments on March 15th and September 15th of each year, beginning on March 15, 2018, through the maturity date of September 15, 2024.  The indenture contains customary events of default and requires that we satisfy various covenants.  At March 31, 2018, we were in compliance with all such covenants.

We also have outstanding $800 million of 7 1/8% unsecured senior notes due December 2021.  The indenture governing the 7 1/8% senior notes due 2021 requires semi-annual interest payments on June 15th and December 15th of each year through the maturity date of December 15, 2021.  The indenture contains customary events of default and requires that we satisfy various covenants.  At March 31, 2018, we were in compliance with all such covenants.

23

Other Matters

Off-Balance Sheet Arrangements and Hedging Activities

At March 31, 2018, we had no off-balance sheet arrangements and no hedging contracts.

Recently Issued Accounting Guidance

See Part I, Item 1, “Financial Statements – Note 14 – New Accounting Pronouncements.”

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

We are exposed to market risks associated with foreign currency fluctuations and changes in interest rates.  A discussion of our market risk exposure in financial instruments follows.

Foreign Currency Exchange Rates Risk

Because we operate in a number of countries throughout the world, we conduct a portion of our business in currencies other than the U.S. dollar.  The functional currency for our international operations, other than certain operations in the United Kingdom and Europe, is the U.S. dollar, but a portion of the revenues from our international operations is paid in foreign currencies.  The effects of foreign currency fluctuations are partly mitigated because local expenses of such international operations are also generally denominated in the same currency.  We continually monitor the currency exchange risks associated with all contracts not denominated in the U.S. dollar. 

Assets and liabilities of certain subsidiaries in the United Kingdom and Europe are translated at end of period exchange rates, while income and expenses are translated at average rates for the period.  Translation gains and losses are reported as the foreign currency translation component of accumulated other comprehensive loss in stockholders’ equity. 

We do not hold derivatives for trading purposes or use derivatives with complex features. When we believe prudent, we enter into forward foreign exchange contracts to hedge the impact of foreign currency fluctuations. We do not enter into forward foreign exchange contracts for trading or speculative purposes.  At March 31, 2018, we had no outstanding foreign currency forward contracts.

Interest Rate Risk

At March 31, 2018, we had no variable rate debt outstanding.

Commodity Price Risk

Our revenues, profitability and future rate of growth significantly depend upon the market prices of oil and natural gas.  Lower prices may also reduce the amount of oil and natural gas that can economically be produced. 

For additional discussion, see Part 1, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.”

Item 4.  Controls and Procedures

(a)

Evaluation of disclosure controls and procedures.As of the end of the period covered by this quarterly report on Form 10-Q, our Chief Executive Officer and Chief Financial Officer have concluded, based on their evaluation, that our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) are effective for ensuring that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures and is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

(b)

Changes in internal control.  There has been no change in our internal control over financial reporting that occurred during the three months ended March 31, 2018, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

24

PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings

From time to time, we are involved in various legal actions incidental to our business.   The outcome of these proceedings is not predictable.  However, based on current circumstances, we do not believe that the ultimate resolution of these proceedings, after considering available defenses and any insurance coverage or indemnification rights, will have a material adverse effect on our financial position, results of operations or cash flows.

Item 1A.  Risk Factors

For information regarding certain risks relating to our operations, any of which could negatively affect our business, financial condition, operating results or prospects, see Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2017.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

Period	(a) Total Number of Shares Purchased (1)	(b) Average Price Paid per Share
January 1 - 31, 2018	456,896	$	11.27
February 1 - 28, 2018	585	$	10.37
March 1 - 31, 2018	-	$	-
Total	457,481	$	11.27

(1)   Through our stock incentive plans, 457,481 shares were delivered to us by our employees to satisfy their tax withholding requirements upon vesting of restricted stock units.

Item 6.   Exhibits

(a)    The following exhibits are filed with this Form 10-Q:

Exhibit No.	Description
3.1	Restated Certificate of Incorporation of Superior Energy Services, Inc. (incorporated herein by reference to Exhibit 3.1 to Superior Energy Services, Inc.’s Quarterly Report on Form 10-Q filed August 7, 2013 (File No. 001-34037)).
3.2	Amended and Restated Bylaws of Superior Energy Services, Inc. (as amended through March 7, 2012) (incorporated herein by reference to Exhibit 3.1 to Superior Energy Services, Inc.’s Current Report on Form 8-K filed March 12, 2012 (File No. 001-34037))
31.1*	Officer’s certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Officer’s certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Officer’s certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Officer’s certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document

    *Filed herein

25

SIGNATURE

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 thereunto duly authorized.

SUPERIOR ENERGY SERVICES, INC.

		By:	/s/ Westervelt T. Ballard, Jr.
			Westervelt T. Ballard, Jr. Executive Vice President, Chief Financial Officer and Treasurer
		By:	/s/ James W. Spexarth
			James W. Spexarth
			Chief Accounting Officer
Date:	April 25, 2018

26

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, David D. Dunlap,  President and Chief Executive Officer of Superior Energy Services, Inc., certify that:

1.I have reviewed this quarterlyreport on Form 10-Q of Superior Energy Services, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:    April 25, 2018
	/s/ David. D. Dunlap
	David D. Dunlap
	President and Chief Executive Officer
	Superior Energy Services, Inc.

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Westervelt T. Ballard, Jr., Executive Vice President,  Chief Financial Officer and Treasurer of Superior Energy Services, Inc., certify that:

1.I have reviewed this quarterly report on Form 10-Q of Superior Energy Services, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 25, 2018
	/s/ Westervelt T. Ballard, Jr.
	Westervelt T. Ballard, Jr.
	Executive Vice President, Chief Financial Officer and Treasurer
	Superior Energy Services, Inc.

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

SECTION 1350 OF TITLE 18 OF THE U.S. CODE

I, David D. Dunlap,  President and Chief Executive Officer of Superior Energy Services, Inc. (the “Company”), certify, pursuant to Section 1350 of Title 18 of the U.S. Code, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (“Section 906”), that:

1.the quarterly report on Form 10-Q of the Company for the quarter ended March 31, 2018 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

This certificate is being furnished solely for purposes of Section 906 and is not being filed as part of the Report or as a separate disclosure document.

Date:    April 25, 2018
	/s/ David D. Dunlap
	David D. Dunlap
	President and Chief Executive Officer
	Superior Energy Services, Inc.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

SECTION 1350 OF TITLE 18 OF THE U.S. CODE

I, Westervelt T. Ballard, Jr., Executive Vice President, Chief Financial Officer and Treasurer of Superior Energy Services, Inc. (the “Company”), certify, pursuant to Section 1350 of Title 18 of the U.S. Code, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (“Section 906”), that:

1.the quarterlyreport on Form 10-Q of the Company for the quarter ended March  31, 2018 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

This certificate is being furnished solely for purposes of Section 906 and is not being filed as part of the Report or as a separate disclosure document.

Date:    April 25, 2018
	/s/ Westervelt T. Ballard, Jr.
	Westervelt T. Ballard, Jr.
	Executive Vice President, Chief Financial Officer and Treasurer
	Superior Energy Services, Inc.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 20, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Superior Energy Services Inc
Entity Central Index Key	0000886835
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		154,237,551
Trading Symbol	spn

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 90,438	$ 172,000
Accounts receivable, net of allowance for doubtful accounts of $25,762 and $29,037 at March 31, 2018 and December 31, 2017, respectively	443,253	398,056
Income taxes receivable		959
Prepaid expenses	45,330	42,128
Inventory and other current assets	149,484	134,032
Assets held for sale	3,860	13,644
Total current assets	732,365	760,819
Property, plant and equipment, net of accumulated depreciation and depletion of $2,804,983 and $2,736,620 at March 31, 2018 and December 31, 2017, respectively	1,300,897	1,316,944
Goodwill	809,342	807,860
Notes receivable	61,087	60,149
Restricted cash	20,585	20,483
Intangible and other long-term assets, net of accumulated amortization of $86,709 and $83,359 at March 31, 2018 and December 31, 2017, respectively	140,487	143,970
Total assets	3,064,763	3,110,225
Current liabilities:
Accounts payable	148,499	119,716
Accrued expenses	215,801	221,757
Income taxes payable	934
Current portion of decommissioning liabilities	22,287	27,261
Current maturities of long-term debt	744
Liabilities held for sale	4,851	6,463
Total current liabilities	393,116	375,197
Deferred income taxes	48,773	61,058
Decommissioning liabilities	104,088	103,136
Long-term debt, net	1,280,569	1,279,771
Other long-term liabilities	160,048	158,634
Stockholders' equity:
Preferred stock of $0.01 par value. Authorized - 5,000,000 shares; none issued
Common stock of $0.001 par value. Authorized-250,000,000, Issued and Outstanding - 154,237,262 at March 31, 2018, Authorized-250,000,000, Issued and Outstanding - 153,263,097 at December 31, 2017	154	153
Additional Paid in Capital	2,714,236	2,713,161
Accumulated other comprehensive loss, net	(63,039)	(67,427)
Retained deficit	(1,573,182)	(1,513,458)
Total stockholders' equity	1,078,169	1,132,429
Total liabilities and stockholders' equity	$ 3,064,763	$ 3,110,225

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 25,762	$ 29,037
Accumulated depreciation and depletion on Property, plant and equipment	2,804,983	2,736,620
Accumulated amortization of Intangible and other long-term assets	$ 86,709	$ 83,359
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	154,237,262	153,263,097
Common stock, shares outstanding	154,237,262	153,263,097

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Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Total revenues	$ 482,318	$ 400,936
Costs and expenses:
Cost of services (exclusive of depreciation, depletion, amortization and accretion)	311,139	296,434
Cost of rentals (exclusive of depreciation, depletion, amortization and accretion)	32,321	25,552
Depreciation, depletion, amortization and accretion - services	87,747	95,330
Depreciation, depletion, amortization and accretion - rentals	17,972	18,951
General and administrative expenses	75,820	75,493
Loss from operations	(42,681)	(110,824)
Other income (expense):
Interest expense, net	(24,887)	(24,250)
Other income (expense)	(1,735)	649
Loss from continuing operations before income taxes	(69,303)	(134,425)
Income taxes	(9,355)	(44,764)
Net loss from continuing operations	(59,948)	(89,661)
Income (loss) from discontinued operations, net of income tax	224	(1,998)
Net loss	$ (59,724)	$ (91,659)
Basic and diluted:
Net loss from continuing operations	$ (0.39)	$ (0.59)
Loss from discontinued operations		(0.01)
Net loss	$ (0.39)	$ (0.60)
Weighted average common shares used in computing loss per share:
Basic and diluted	154,121	152,701
Services [Member]
Revenues:
Total revenues	$ 399,768	$ 334,450
Rentals [Member]
Revenues:
Total revenues	$ 82,550	$ 66,486

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Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Consolidated Statement of Comprehensive Loss [Abstract]
Net loss	$ (59,724)	$ (91,659)
Change in cumulative translation adjustment, net of tax	4,388	1,724
Comprehensive loss	$ (55,336)	$ (89,935)

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Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net loss	$ (59,724)	$ (91,659)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, depletion, amortization and accretion	105,719	114,281
Deferred income taxes	(12,285)	(29,747)
Stock based compensation expense	8,197	10,691
Other reconciling items, net	(987)	(1,430)
Changes in operating assets and liabilities:
Accounts receivable	(44,692)	(32,441)
Inventory and other current assets	(15,620)	(8,826)
Accounts payable	16,810	11,731
Accrued expenses	(14,501)	17,673
Income taxes	1,499	(20,496)
Other, net	(9,374)	(12,502)
Net cash used in operating activities	(24,958)	(42,725)
Cash flows from investing activities:
Payments for capital expenditures	(65,734)	(21,188)
Proceeds from sales of assets	12,135	4,090
Net cash used in investing activities	(53,599)	(17,098)
Cash flows from financing activities:
Proceeds from issuance of short-term debt	744
Tax withholdings for vested restricted stock units	(5,155)	(8,220)
Other	(304)	(486)
Net cash used in financing activities	(4,715)	(8,706)
Effect of exchange rate changes on cash	1,812	2,194
Net decrease in cash, cash equivalents, and restricted cash	(81,460)	(66,335)
Cash, cash equivalents, and restricted cash at beginning of period	192,483	246,092
Cash, cash equivalents, and restricted cash at end of period	$ 111,023	$ 179,757

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Basis of Presentation

3 Months Ended

Mar. 31, 2018

Basis of Presentation [Abstract]

Basis of Presentation

(1)Basis of Presentation

Certain information and footnote disclosures normally in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC); however, management believes the disclosures that are made are adequate to make the information presented not misleading.  These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Superior Energy Services, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2017, and Management’s Discussion and Analysis of Financial Condition and Results of Operations herein.

The financial information of Superior Energy Services, Inc. and its subsidiaries (the Company) for the three months ended March 31, 2018 and 2017 has not been audited.  However, in the opinion of management, all adjustments necessary to present fairly the results of operations for the periods presented have been included therein.  Certain previously reported amounts have been reclassified to conform to the 2018 presentation.  The results of operations for the first three months of the year are not necessarily indicative of the results of operations that might be expected for the entire year. 

Due to the nature of the Company’s business, the Company is involved, from time to time, in routine litigation or subject to disputes or claims regarding its business activities. Legal costs related to these matters are expensed as incurred.  In management’s opinion, none of the pending litigation, disputes or claims is expected to have a material adverse effect on the Company’s financial condition, results of operations or liquidity.

The Company evaluates events that occur after the balance sheet date but before the financial statements are issued for potential recognition or disclosure.  Based on the evaluation, the Company determined that there were no material subsequent events for recognition or disclosure.

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Revenues

3 Months Ended

Mar. 31, 2018

Revenues [Abstract]

Revenues

(2)Revenues

Adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers

Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606).  The Company adopted this ASU using the modified retrospective adoption method.  There was no impact on the condensed consolidated financial statements and no cumulative effect adjustment was recognized.

Revenue Recognition

Revenues are recognized when performance obligations are satisfied in accordance with contractual terms, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services rendered or rentals provided.  Taxes collected from customers and remitted to governmental authorities and revenues are reported on a net basis in the Company’s financial statements.

Performance Obligations

A performance obligation arises under contracts with customers to render services or provide rentals, and is the unit of account under Topic 606.  The Company accounts for services rendered and rentals provided separately if they are distinct and the service or rental is separately identifiable from other items provided to a customer and if a customer can benefit from the services rendered or rentals provided on its own or with other resources that are readily available to the customer.  A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.  A contract’s standalone selling prices are determined based on the prices that the Company charges for its services rendered and rentals provided.  The majority of the Company’s performance obligations are satisfied over time, which is generally represented by a period of 30 days or less.  The Company’s payment terms vary by the type of products or services offered.  The term between invoicing and when the payment is due is typically 30 days.

Services revenue primarily represents amounts charged to customers for the completion of services rendered, including labor, products and supplies necessary to perform the service.  Rates for these services vary depending on the type of services provided and can be based on a per job, per hour or per day basis.

Rentals revenue is, primarily priced on a per day, per man hour or similar basis and consists of fees charged to customers for use of the Company’s rental equipment over the term of the rental period, which is generally less than twelve months.

The Company expenses sales commissions when incurred because the amortization period would have been one year or less.

The following table presents the Company’s revenues by segment disaggregated by geography (in thousands):

	Three Months Ended March 31,
		2018		2017
U.S. land
Drilling Products and Services	$	40,717	$	21,162
Onshore Completion and Workover Services		231,489		204,979
Production Services		52,457		23,435
Technical Solutions		6,833		9,085
Total U.S. land	$	331,496	$	258,661
Gulf of Mexico
Drilling Products and Services	$	20,989	$	23,485
Onshore Completion and Workover Services		-		-
Production Services		17,500		17,746
Technical Solutions		37,562		33,717
Total Gulf of Mexico	$	76,051	$	74,948
International
Drilling Products and Services	$	23,496	$	23,784
Onshore Completion and Workover Services		-		-
Production Services		30,760		27,424
Technical Solutions		20,515		16,119
Total International	$	74,771	$	67,327
Total Revenues	$	482,318	$	400,936

The following table presents the Company’s revenues by segment disaggregated by type (in thousands):

	Three Months Ended March 31,
		2018		2017
Services
Drilling Products and Services	$	24,005	$	16,871
Onshore Completion and Workover Services		221,347		199,446
Production Services		94,614		63,282
Technical Solutions		59,802		54,851
Total services	$	399,768	$	334,450
Rentals
Drilling Products and Services	$	61,197	$	51,560
Onshore Completion and Workover Services		10,142		5,533
Production Services		6,103		5,323
Technical Solutions		5,108		4,070
Total rentals	$	82,550	$	66,486
Total Revenues	$	482,318	$	400,936

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Inventory

3 Months Ended

Mar. 31, 2018

Inventory [Abstract]

Inventory

(3)Inventory

Inventories are stated at the lower of cost or net realizable value.  The Company applies net realizable value and obsolescence to the gross value of the inventory.  Cost is determined using the first-in, first-out or weighted-average cost methods for finished goods and work-in-process.  Supplies and consumables primarily consist of products used in our services provided to customers.  The components of the inventory balances are as follows (in thousands):

	March 31, 2018		December 31, 2017
Finished goods	$	67,635	$	61,764
Raw materials		14,140		13,727
Work-in-process		8,419		6,174
Supplies and consumables		25,102		24,923
Total	$	115,296	$	106,588

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Notes Receivable

3 Months Ended

Mar. 31, 2018

Notes Receivable [Abstract]

Notes Receivable

(4)Notes Receivable

Notes receivable consist of a commitment from the seller of an oil and gas property acquired by the Company related to costs associated with the abandonment of the acquired property.  Pursuant to an agreement with the seller, the Company will invoice the seller an agreed upon amount at the completion of certain decommissioning activities.  The gross amount of this obligation totals $115.0 million and is recorded at present value using an effective interest rate of 6.58%.  The related discount is amortized to interest income based on the expected timing of completion of the decommissioning activities.  The Company recorded interest income related to notes receivable of $1.0 million and $0.8 million for the three months ended March 31, 2018 and 2017, respectively.

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Decommissioning Liabilities

3 Months Ended

Mar. 31, 2018

Decommissioning Liabilities [Abstract]

Decommissioning Liabilities

(5)Decommissioning Liabilities

The Company’s decommissioning liabilities associated with an oil and gas property and its related assets consist of costs related to the plugging of wells, the removal of the related platform and equipment, and site restoration.  The Company reviews the adequacy of its decommissioning liabilities whenever indicators suggest that the estimated cash flows needed to satisfy the liabilities have changed materially.  The Company had decommissioning liabilities of $126.4 million and $130.4 million at March 31, 2018 and December 31, 2017, respectively.

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Debt

3 Months Ended

Mar. 31, 2018

Debt [Abstract]

Debt

(6)Debt

The Company’s outstanding debt is as follows (in thousands):

	March 31, 2018				December 31, 2017
	Long-term		Current		Long-term
Senior unsecured notes due September 2024	$	500,000	$	-	$	500,000
Senior unsecured notes due December 2021		800,000		-		800,000
Other		-		744		-
Total debt, gross		1,300,000		744		1,300,000
Unamortized debt issuance costs		(19,431)		-		(20,229)
Total debt, net	$	1,280,569	$	744	$	1,279,771

Credit Facility

The Company has a $300 million asset-based revolving credit facility which matures in October 2022.  The borrowing base under the credit facility is calculated based on a formula referencing the borrower’s and the subsidiary guarantors’ eligible accounts receivable, eligible inventory and eligible premium rental drill pipe less reserves.  Availability under the credit facility is the lesser of (i) the commitments, (ii) the borrowing base and (iii) the highest principal amount permitted to be secured under the indenture governing the 7 1/8% senior unsecured notes due 2021.  At March 31, 2018, the borrowing base was $267.7 million and the Company had $35.3 million of letters of credit outstanding under the revolving credit facility.  The borrowing base may increase or decrease as a result of, among other things, changes to the Company’s consolidated tangible assets.  The credit agreement contains various covenants, including, but not limited to, limitations on the incurrence of indebtedness, permitted investments, liens on assets, making distributions, transactions with affiliates, merger, consolidations, dispositions of assets and other provisions customary in similar types of agreements.

Senior Unsecured Notes

The Company has outstanding $500 million of 7 3/4% senior unsecured notes due September 2024.  The indenture governing the 7 3/4% senior unsecured notes due 2024 requires semi-annual interest payments on March 15th and September 15th of each year, beginning on March 15, 2018, through the maturity date of September 15, 2024.

The Company also has outstanding $800 million of 7 1/8% senior unsecured notes due December 2021.  The indenture governing the 7 1/8% senior unsecured notes due 2021 requires semi-annual interest payments on June 15th and December 15th of each year through the maturity date of December 15, 2021. 

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Fair Value Measurements

3 Months Ended

Mar. 31, 2018

Fair Value Measurements [Abstract]

Fair Value Measurements

(7)  Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date.  Inputs used in determining fair value are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable.  The three input levels of the fair value hierarchy are as follows.  

Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.

Level 2: Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical assets or liabilities in inactive markets; or model-derived valuations or other inputs that can be corroborated by observable market data.

Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

The following tables provide a summary of the financial assets and liabilities measured at fair value on a recurring basis (in thousands):

	Fair Value at March 31, 2018
	Level 1		Level 2		Level 3		Total
Intangible and other long-term assets, net
Non-qualified deferred compensation assets	$	371	$	13,741	$	-	$	14,112
Accounts payable
Non-qualified deferred compensation liabilities	$	-	$	1,007	$	-	$	1,007
Other long-term liabilities
Non-qualified deferred compensation liabilities	$	-	$	20,268	$	-	$	20,268
	Fair Value at December 31, 2017
	Level 1		Level 2		Level 3		Total
Intangible and other long-term assets, net
Non-qualified deferred compensation assets	$	370	$	13,817	$	-	$	14,187
Accounts payable
Non-qualified deferred compensation liabilities	$	-	$	1,253	$	-	$	1,253
Other long-term liabilities
Non-qualified deferred compensation liabilities	$	-	$	21,085	$	-	$	21,085

The Company’s non-qualified deferred compensation plans allow officers, certain highly compensated employees and non-employee directors to defer receipt of a portion of their compensation and contribute such amounts to one or more hypothetical investment funds.  These investments are reported at fair value based on unadjusted quoted prices in active markets for identifiable assets and observable inputs for similar assets and liabilities, which represent Levels 1 and 2, respectively, in the fair value hierarchy. 

The fair value of the Company’s cash equivalents and accounts receivable approximates their carrying amounts.  The fair value of the Company’s long-term debt was approximately $1,332.5 million and $1,347.0million as of March 31, 2018 and December 31, 2017, respectively.  The fair value of these debt instruments is determined by reference to the market value of the instruments as quoted in over-the-counter markets, which are Level 1 inputs.

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Segment Information

3 Months Ended

Mar. 31, 2018

Segment Information [Abstract]

Segment Information

(8)  Segment Information

Business Segments

The Drilling Products and Services segment rents and sells premium drill pipe, bottom hole assemblies, tubulars and specialized equipment for use with onshore and offshore oil and gas well drilling, completion, production and workover activities.  It also provides on-site accommodations and machining services.  The Onshore Completion and Workover Services segment provides pressure pumping services used to complete and stimulate production in new oil and gas wells, fluid handling services and well servicing rigs that provide a variety of well completion, workover and maintenance services.  The Production Services segment provides intervention services such as coiled tubing, cased hole and mechanical wireline, hydraulic workover and snubbing, production testing and optimization, and remedial pumping services.  The Technical Solutions segment provides services typically requiring specialized engineering, manufacturing or project planning, including well containment systems, stimulation and sand control services and well plug and abandonment services. It also includes production and sale of oil and gas. 

The Company evaluates the performance of its reportable segments based on income or loss from operations excluding allocated corporate expenses.  The segment measure is calculated as follows: segment revenues less segment operating expenses, depreciation, depletion, amortization and accretion expense and reduction in value of assets.  The Company uses this segment measure to evaluate its reportable segments because it is the measure that is most consistent with how the Company organizes and manages its business operations.  Corporate and other costs primarily include expenses related to support functions, salaries and benefits for corporate employees and stock-based compensation expense.

Summarized financial information for the Company’s segments is as follows (in thousands): 

Three Months Ended March 31, 2018
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	85,202	$	231,489	$	100,717	$	64,910	$	-	$	482,318
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		35,070		180,651		85,936		41,803		-		343,460
Depreciation, depletion, amortization
and accretion		29,641		47,655		19,280		7,730		1,413		105,719
General and administrative expenses		12,524		13,226		9,593		14,060		26,417		75,820
Income (loss) from operations		7,967		(10,043)		(14,092)		1,317		(27,830)		(42,681)
Interest income (expense), net		-		-		-		956		(25,843)		(24,887)
Other expense		-		-		-		-		(1,735)		(1,735)
Income (loss) from continuing operations
before income taxes	$	7,967	$	(10,043)	$	(14,092)	$	2,273	$	(55,408)	$	(69,303)

Three Months Ended March 31, 2017
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	68,431		204,979		68,605		58,921	$	-	$	400,936
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		29,058		193,689		60,780		38,459		-		321,986
Depreciation, depletion, amortization
and accretion		34,729		49,147		20,589		8,376		1,440		114,281
General and administrative expenses		12,966		11,271		11,281		13,568		26,407		75,493
Loss from operations		(8,322)		(49,128)		(24,045)		(1,482)		(27,847)		(110,824)
Interest income (expense), net		-		-		-		790		(25,040)		(24,250)
Other income		-		-		-		-		649		649
Loss from continuing operations    before income taxes	$	(8,322)	$	(49,128)	$	(24,045)	$	(692)	$	(52,238)	$	(134,425)

Identifiable Assets
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
March 31, 2018	$	585,933	$	1,553,817	$	508,971	$	360,383	$	55,659	$	3,064,763
December 31, 2017	$	662,968	$	1,501,214	$	512,256	$	377,549	$	56,238	$	3,110,225

Geographic Segments

The Company attributes revenue to various countries based on the location of where services are performed or the destination of the drilling products or equipment sold or rented.  Long-lived assets consist primarily of property, plant and equipment and are attributed to various countries based on the physical location of the asset at the end of a period.  The Company’s revenue attributed to the U.S. and to other countries and the value of its long-lived assets by those locations are as follows (in thousands):

Revenues
	Three Months Ended March 31,
	2018		2017
United States	$	407,547	$	333,609
Other countries		74,771		67,327
Total	$	482,318	$	400,936
Long-Lived Assets
	March 31, 2018		December 31, 2017
United States	$	1,064,635	$	1,064,823
Other countries		236,262		252,121
Total	$	1,300,897	$	1,316,944

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Stock-Based Compensation Plans

3 Months Ended

Mar. 31, 2018

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

(9)Stock-Based Compensation Plans

The Company maintains various stock incentive plans that provide long-term incentives to the Company’s key employees, including officers, directors, consultants and advisors (Eligible Participants).  Under the stock incentive plans, the Company may grant incentive stock options, restricted stock, restricted stock units, stock appreciation rights, other stock-based awards or any combination thereof to Eligible Participants.  The Company’s total compensation expense related to these plans was approximately $7.9million and $10.4 million for the three months ended March 31, 2018 and 2017, respectively, which is reflected in general and administrative expenses.

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Income Taxes

3 Months Ended

Mar. 31, 2018

Income Taxes [Abstract]

Income Taxes

(10)  Income Taxes

The Company had $30.7 million of unrecorded tax benefits as of March 31, 2018 and December 31, 2017, all of which would impact the Company’s effective tax rate if recognized.  It is the Company’s policy to recognize interest and applicable penalties, if any, related to uncertain tax positions in income tax expense.  The Company continues to evaluate the impact of the Tax Cuts and Jobs Act of 2017 and no revisions were recorded during the three months ended March 31, 2018.

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Earnings Per Share

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings per Share

(11) Earnings per Share

Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period.  Diluted earnings per share is computed in the same manner as basic earnings per share except that the denominator is increased to include the number of additional common shares that could have been outstanding assuming the exercise of stock options and the conversion of restricted stock units.

For the three months ended March 31, 2018 and 2017, the Company incurred a loss from continuing operations; therefore the impact of any incremental shares would be anti-dilutive.

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Supplemental Guarantor Information

3 Months Ended

Mar. 31, 2018

Supplemental Guarantor Information [Abstract]

Supplemental Guarantor Information

(12)  Supplemental Guarantor Information

SESI, L.L.C. (the Issuer), a 100% owned subsidiary of Superior Energy Services, Inc. (Parent), has $500 million of 7 3/4% senior unsecured notes due 2024. The Parent, along with certain of its 100% owned domestic subsidiaries, fully and unconditionally guaranteed such senior unsecured notes, and such guarantees are joint and several.

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
March 31, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	41,773	$	582	$	48,083	$	-	$	90,438
Accounts receivable, net		-		(3,581)		383,048		63,786		-		443,253
Intercompany accounts receivable		-		6,623		58,742		5,601		(70,966)		-
Other current assets		-		10,944		146,842		37,028		-		194,814
Assets held for sale		-		-		-		3,860		-		3,860
Total current assets		-		55,759		589,214		158,358		(70,966)		732,365
Property, plant and equipment, net		-		11,049		1,087,416		202,432		-		1,300,897
Goodwill		-		-		657,099		152,243		-		809,342
Notes receivable		-		-		61,087		-		-		61,087
Long-term intercompany accounts receivable		2,222,542		-		1,987,499		179,940		(4,389,981)		-
Equity investments of consolidated subsidiaries		(1,144,117)		4,459,353		6,422		-		(3,321,658)		-
Restricted cash		-		-		20,585		-		-		20,585
Intangible and other long-term assets, net		-		21,548		111,078		7,861		-		140,487
Total assets	$	1,078,425	$	4,547,709	$	4,520,400	$	700,834	$	(7,782,605)	$	3,064,763
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	-	$	11,611	$	118,464	$	18,424	$	-	$	148,499
Accrued expenses		256		113,943		77,410		24,192		-		215,801
Income taxes payable		-		304		-		630		-		934
Intercompany accounts payable		-		774		7,909		62,283		(70,966)		-
Current portion of decommissioning liabilities		-		-		20,670		1,617		-		22,287
Current maturities of long-term debt		-		-		-		744		-		744
Liabilities held for sale		-		-		-		4,851		-		4,851
Total current liabilities		256		126,632		224,453		112,741		(70,966)		393,116
Deferred income taxes		-		(160,785)		205,902		3,656		-		48,773
Decommissioning liabilities		-		-		102,244		1,844		-		104,088
Long-term debt, net		-		1,280,569		-		-		-		1,280,569
Long-term intercompany accounts payable		-		4,389,981		-		-		(4,389,981)		-
Other long-term liabilities		-		55,429		78,430		26,189		-		160,048
Total stockholders' equity (deficit)		1,078,169		(1,144,117)		3,909,371		556,404		(3,321,658)		1,078,169
Total liabilities and stockholders' equity	$	1,078,425	$	4,547,709	$	4,520,400	$	700,834	$	(7,782,605)	$	3,064,763

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
December 31, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	126,533	$	440	$	45,027	$	-	$	172,000
Accounts receivable, net		-		-		332,402		70,889		(5,235)		398,056
Income taxes receivable		-		-		(221)		1,180		-		959
Intercompany accounts receivable		-		6,460		58,375		5,865		(70,700)		-
Other current assets		-		11,895		129,970		34,295		-		176,160
Assets held for sale		-		-		-		13,644		-		13,644
Total current assets		-		144,888		520,966		170,900		(75,935)		760,819
Property, plant and equipment, net		-		12,055		1,093,446		211,443		-		1,316,944
Goodwill		-		-		657,099		150,761		-		807,860
Notes receivable		-		-		60,149		-		-		60,149
Long-term intercompany accounts receivable		2,221,697		-		2,032,056		177,842		(4,431,595)		-
Equity investments of consolidated subsidiaries		(1,088,736)		4,481,702		6,590		-		(3,399,556)		-
Restricted cash		-		-		20,483		-		-		20,483
Intangible and other long-term assets, net		-		22,118		113,632		8,220		-		143,970
Total assets	$	1,132,961	$	4,660,763	$	4,504,421	$	719,166	$	(7,907,086)	$	3,110,225
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	-	$	14,339	$	89,714	$	20,898	$	(5,235)	$	119,716
Accrued expenses		532		116,767		80,825		23,633		-		221,757
Intercompany accounts payable		-		724		7,918		62,058		(70,700)		-
Current portion of decommissioning liabilities		-		-		25,670		1,591		-		27,261
Liabilities held for sale		-		-		-		6,463		-		6,463
Total current liabilities		532		131,830		204,127		114,643		(75,935)		375,197
Deferred income taxes		-		(147,116)		205,386		2,788		-		61,058
Decommissioning liabilities		-		-		101,293		1,843		-		103,136
Long-term debt, net		-		1,279,771		-		-		-		1,279,771
Long-term intercompany accounts payable		-		4,431,595		-		-		(4,431,595)		-
Other long-term liabilities		-		53,419		79,061		26,154		-		158,634
Total stockholders' equity (deficit)		1,132,429		(1,088,736)		3,914,554		573,738		(3,399,556)		1,132,429
Total liabilities and stockholders' equity	$	1,132,961	$	4,660,763	$	4,504,421	$	719,166	$	(7,907,086)	$	3,110,225

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended March 31, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	435,134	$	53,259	$	(6,075)	$	482,318
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(2,626)		311,064		41,097		(6,075)		343,460
Depreciation, depletion, amortization and
accretion		-		1,019		92,714		11,986		-		105,719
General and administrative expenses		-		25,664		38,689		11,467		-		75,820
Loss from operations		-		(24,057)		(7,333)		(11,291)		-		(42,681)
Other income (expense):
Interest expense, net		-		(25,870)		967		16		-		(24,887)
Other income (expense)		-		(66)		274		(1,943)		-		(1,735)
Equity in losses of consolidated subsidiaries		(59,724)		(17,470)		(168)		-		77,362		-
Loss from continuing operations before income taxes		(59,724)		(67,463)		(6,260)		(13,218)		77,362		(69,303)
Income taxes		-		(7,739)		(1,076)		(540)		-		(9,355)
Net loss from continuing operations		(59,724)		(59,724)		(5,184)		(12,678)		77,362		(59,948)
Loss from discontinued operations, net of income tax		-		-		-		224		-		224
Net loss	$	(59,724)	$	(59,724)	$	(5,184)	$	(12,454)	$	77,362	$	(59,724)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Three Months Ended March 31, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net loss	$	(59,724)	$	(59,724)	$	(5,184)	$	(12,454)	$	77,362	$	(59,724)
Change in cumulative translation adjustment, net of tax		4,388		4,388		-		4,388		(8,776)		4,388
Comprehensive loss	$	(55,336)	$	(55,336)	$	(5,184)	$	(8,066)	$	68,586	$	(55,336)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended March 31, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	353,860	$	52,188	$	(5,112)	$	400,936
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		760		284,960		41,378		(5,112)		321,986
Depreciation, depletion, amortization and
accretion		-		1,046		100,568		12,667		-		114,281
General and administrative expenses		-		25,935		37,144		12,414		-		75,493
Loss from operations		-		(27,741)		(68,812)		(14,271)		-		(110,824)
Other income (expense):
Interest expense, net		-		(25,241)		802		189		-		(24,250)
Other income (expense)		-		(411)		241		819		-		649
Equity in losses of consolidated subsidiaries		(91,659)		(54,562)		(60)		-		146,281		-
Loss from continuing operations before
income taxes		(91,659)		(107,955)		(67,829)		(13,263)		146,281		(134,425)
Income taxes		-		(16,296)		(28,968)		500		-		(44,764)
Net income (loss) from continuing operations		(91,659)		(91,659)		(38,861)		(13,763)		146,281		(89,661)
Loss from discontinued operations, net of income tax		-		-		-		(1,998)		-		(1,998)
Net loss	$	(91,659)	$	(91,659)	$	(38,861)	$	(15,761)	$	146,281	$	(91,659)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Three Months Ended March 31, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net loss	$	(91,659)	$	(91,659)	$	(38,861)	$	(15,761)	$	146,281	$	(91,659)
Change in cumulative translation adjustment, net of tax		1,724		1,724		-		1,724		(3,448)		1,724
Comprehensive loss	$	(89,935)	$	(89,935)	$	(38,861)	$	(14,037)	$	142,833	$	(89,935)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Three Months Ended March 31, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	6,229	$	(42,958)	$	17,549	$	(15,047)	$	9,269	$	(24,958)
Cash flows from investing activities:
Payments for capital expenditures		-		-		(63,489)		(2,245)		-		(65,734)
Proceeds from sales of assets		-		-		2,003		10,132		-		12,135
Net cash used in investing activities		-		-		(61,486)		7,887		-		(53,599)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		-		-		-		744		-		744
Intercompany dividends		-		-		-		9,269		(9,269)		-
Changes in notes with affiliated companies, net		(845)		(41,727)		44,181		(1,609)		-		-
Other		(5,384)		(75)		-		-		-		(5,459)
Net cash provided by (used in) financing activities		(6,229)		(41,802)		44,181		8,404		(9,269)		(4,715)
Effect of exchange rate changes on cash		-		-		-		1,812		-		1,812
Net decrease in cash, cash equivalents, and restricted cash		-		(84,760)		244		3,056		-		(81,460)
Cash, cash equivalents, and restricted cash at beginning of period		-		126,533		20,923		45,027		-		192,483
Cash, cash equivalents, and restricted cash at end of period	$	-	$	41,773	$	21,167	$	48,083	$	-	$	111,023

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Three Months Ended March 31, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	6,832	$	(42,698)	$	(560)	$	(6,299)	$	(42,725)
Cash flows from investing activities:
Payments for capital expenditures		-		(70)		(16,231)		(4,887)		(21,188)
Other		-		-		4,090		-		4,090
Net cash used in investing activities		-		(70)		(12,141)		(4,887)		(17,098)
Cash flows from financing activities:
Changes in notes with affiliated companies, net		1,723		18,058		(17,874)		(1,907)		-
Other		(8,555)		(151)		-		-		(8,706)
Net cash used in financing activities		(6,832)		17,907		(17,874)		(1,907)		(8,706)
Effect of exchange rate changes on cash		-		-		-		2,194		2,194
Net decrease in cash, cash equivalents, and restricted cash		-		(24,861)		(30,575)		(10,899)		(66,335)
Cash, cash equivalents, and restricted cash at beginning of period		-		127,445		51,789		66,858		246,092
Cash, cash equivalents, and restricted cash at end of period	$	-	$	102,584	$	21,214	$	55,959	$	179,757

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Discontinued Operations

3 Months Ended

Mar. 31, 2018

Discontinued Operations [Abstract]

Discontinued Operations

(13)  Discontinued Operations

At March 31, 2018, the remaining assets of the Company’s former subsea construction business were being actively marketed and the Company’s management is committed to selling the remaining assets, which were classified as held for sale. 

The following summarizes the assets and liabilities related to the businesses reported as discontinued operations (in thousands):

	March 31, 2018		December 31, 2017
Current assets	$	2,860	$	3,144
Property, plant and equipment, net		1,000		10,500
Total assets	$	3,860	$	13,644
Current liabilities	$	4,851	$	6,463

Income/(loss) from discontinued operations for the three months ended March 31, 2018 and 2017 was $0.2 million income and $(2.0) million loss, respectively. 

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New Accounting Pronouncements

3 Months Ended

Mar. 31, 2018

New Accounting Pronouncements

New Accounting Pronouncements

(14)  New Accounting Pronouncements

Standards adopted

In May 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting.  The guidance in this ASU applies to all entities that change the terms or conditions of a share-based payment award.  The amendments provide clarity and reduce diversity in practice as well as cost and complexity when applying the guidance in Topic 718, Compensation – Stock Compensation, to the modification of the terms and conditions of a share-based payment award.  The amendments in ASU 2017-09 include guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718.  The Company adopted the accounting guidance as of January 1, 2018.  The adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements. 

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business.  The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business.  The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses.  The amendments provide a more robust framework to use in determining when a set of assets and activities is a business.  The Company adopted the accounting guidance as of January 1, 2018.  The adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements. 

In November 2016, the FASB issued ASU 2016-18, Statements of Cash Flows (Topic 230): Restricted Cash.  The guidance in this ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents.  As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows.  The Company adopted the accounting guidance as of January 1, 2018 and applied it retrospectively to the periods presented in the Company’s condensed consolidated statements of cash flows.  For the three months ended March 31, 2017, net cash used in investing activities was adjusted to exclude the change in restricted cash related to cash held in escrow for the future decommissioning obligations associated with an oil and gas property.  The adjustment resulted in a $30.6 million decrease in net cash used in investing activities for the three months ended March 31, 2017.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.  The guidance in this ASU requires entities to recognize at the transaction date the income tax consequences of intercompany asset transfers other than inventory.  The Company adopted the accounting guidance as of January 1, 2018.  The adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which replaced most existing revenue recognition guidance in GAAP.  The guidance in this ASU requires an entity to recognize the amount of revenue that it expects to be entitled for the transfer of promised goods or services to customers.  The Company adopted the accounting guidance as of January 1, 2018.  The Company adopted this ASU using the modified retrospective adoption method.  There was no impact on the condensed consolidated financial statements and no cumulative effect adjustment was recognized.

Standards not yet adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize the assets and liabilities arising from leases on the balance sheet.  This new ASU will require the lessee to recognize a lease liability equal to the present value of the lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term for all leases longer than 12 months.  For leases with a term of 12 month or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and recognize the lease expense for such leases generally on a straight-line basis over the lease term.  Under the new guidance, the Company will revise its leasing policies to require most of the leases, where the Company is the lessee, to be recognized on the balance sheet as a lease and lease liability.  Further, the Company will separate leases from other contracts where the Company is either the lessor or lessee when the rights conveyed under the contracts indicate there is a lease.  The Company is evaluating the effect ASU 2016-02 will have on its condensed consolidated financial statements.  The Company anticipates that its assets and liabilities will increase by a significant amount.   The new standard is effective for the Company beginning on January 1, 2019. 

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Revenues (Tables)

3 Months Ended

Mar. 31, 2018

Revenues [Abstract]

Disaggregation Of Revenues

	Three Months Ended March 31,
		2018		2017
U.S. land
Drilling Products and Services	$	40,717	$	21,162
Onshore Completion and Workover Services		231,489		204,979
Production Services		52,457		23,435
Technical Solutions		6,833		9,085
Total U.S. land	$	331,496	$	258,661
Gulf of Mexico
Drilling Products and Services	$	20,989	$	23,485
Onshore Completion and Workover Services		-		-
Production Services		17,500		17,746
Technical Solutions		37,562		33,717
Total Gulf of Mexico	$	76,051	$	74,948
International
Drilling Products and Services	$	23,496	$	23,784
Onshore Completion and Workover Services		-		-
Production Services		30,760		27,424
Technical Solutions		20,515		16,119
Total International	$	74,771	$	67,327
Total Revenues	$	482,318	$	400,936

The following table presents the Company’s revenues by segment disaggregated by type (in thousands):

	Three Months Ended March 31,
		2018		2017
Services
Drilling Products and Services	$	24,005	$	16,871
Onshore Completion and Workover Services		221,347		199,446
Production Services		94,614		63,282
Technical Solutions		59,802		54,851
Total services	$	399,768	$	334,450
Rentals
Drilling Products and Services	$	61,197	$	51,560
Onshore Completion and Workover Services		10,142		5,533
Production Services		6,103		5,323
Technical Solutions		5,108		4,070
Total rentals	$	82,550	$	66,486
Total Revenues	$	482,318	$	400,936

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Inventory (Tables)

3 Months Ended

Mar. 31, 2018

Inventory [Abstract]

Components Of Inventory

	March 31, 2018		December 31, 2017
Finished goods	$	67,635	$	61,764
Raw materials		14,140		13,727
Work-in-process		8,419		6,174
Supplies and consumables		25,102		24,923
Total	$	115,296	$	106,588

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Debt (Tables)

3 Months Ended

Mar. 31, 2018

Debt [Abstract]

Schedule Of Long-Term Debt

	March 31, 2018				December 31, 2017
	Long-term		Current		Long-term
Senior unsecured notes due September 2024	$	500,000	$	-	$	500,000
Senior unsecured notes due December 2021		800,000		-		800,000
Other		-		744		-
Total debt, gross		1,300,000		744		1,300,000
Unamortized debt issuance costs		(19,431)		-		(20,229)
Total debt, net	$	1,280,569	$	744	$	1,279,771

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Measurements [Abstract]

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

	Fair Value at March 31, 2018
	Level 1		Level 2		Level 3		Total
Intangible and other long-term assets, net
Non-qualified deferred compensation assets	$	371	$	13,741	$	-	$	14,112
Accounts payable
Non-qualified deferred compensation liabilities	$	-	$	1,007	$	-	$	1,007
Other long-term liabilities
Non-qualified deferred compensation liabilities	$	-	$	20,268	$	-	$	20,268
	Fair Value at December 31, 2017
	Level 1		Level 2		Level 3		Total
Intangible and other long-term assets, net
Non-qualified deferred compensation assets	$	370	$	13,817	$	-	$	14,187
Accounts payable
Non-qualified deferred compensation liabilities	$	-	$	1,253	$	-	$	1,253
Other long-term liabilities
Non-qualified deferred compensation liabilities	$	-	$	21,085	$	-	$	21,085

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2018

Segment Information [Abstract]

Schedule Of Segment Reporting Information By Segment

Three Months Ended March 31, 2018
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	85,202	$	231,489	$	100,717	$	64,910	$	-	$	482,318
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		35,070		180,651		85,936		41,803		-		343,460
Depreciation, depletion, amortization
and accretion		29,641		47,655		19,280		7,730		1,413		105,719
General and administrative expenses		12,524		13,226		9,593		14,060		26,417		75,820
Income (loss) from operations		7,967		(10,043)		(14,092)		1,317		(27,830)		(42,681)
Interest income (expense), net		-		-		-		956		(25,843)		(24,887)
Other expense		-		-		-		-		(1,735)		(1,735)
Income (loss) from continuing operations
before income taxes	$	7,967	$	(10,043)	$	(14,092)	$	2,273	$	(55,408)	$	(69,303)

Three Months Ended March 31, 2017
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	68,431		204,979		68,605		58,921	$	-	$	400,936
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		29,058		193,689		60,780		38,459		-		321,986
Depreciation, depletion, amortization
and accretion		34,729		49,147		20,589		8,376		1,440		114,281
General and administrative expenses		12,966		11,271		11,281		13,568		26,407		75,493
Loss from operations		(8,322)		(49,128)		(24,045)		(1,482)		(27,847)		(110,824)
Interest income (expense), net		-		-		-		790		(25,040)		(24,250)
Other income		-		-		-		-		649		649
Loss from continuing operations    before income taxes	$	(8,322)	$	(49,128)	$	(24,045)	$	(692)	$	(52,238)	$	(134,425)

Identifiable Assets

Identifiable Assets
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
March 31, 2018	$	585,933	$	1,553,817	$	508,971	$	360,383	$	55,659	$	3,064,763
December 31, 2017	$	662,968	$	1,501,214	$	512,256	$	377,549	$	56,238	$	3,110,225

Company's Information by Geographic Area

Revenues
	Three Months Ended March 31,
	2018		2017
United States	$	407,547	$	333,609
Other countries		74,771		67,327
Total	$	482,318	$	400,936
Long-Lived Assets
	March 31, 2018		December 31, 2017
United States	$	1,064,635	$	1,064,823
Other countries		236,262		252,121
Total	$	1,300,897	$	1,316,944

XML

Supplemental Guarantor Information (Tables)

3 Months Ended

Mar. 31, 2018

Supplemental Guarantor Information [Abstract]

Consolidating Balance Sheets

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
March 31, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	41,773	$	582	$	48,083	$	-	$	90,438
Accounts receivable, net		-		(3,581)		383,048		63,786		-		443,253
Intercompany accounts receivable		-		6,623		58,742		5,601		(70,966)		-
Other current assets		-		10,944		146,842		37,028		-		194,814
Assets held for sale		-		-		-		3,860		-		3,860
Total current assets		-		55,759		589,214		158,358		(70,966)		732,365
Property, plant and equipment, net		-		11,049		1,087,416		202,432		-		1,300,897
Goodwill		-		-		657,099		152,243		-		809,342
Notes receivable		-		-		61,087		-		-		61,087
Long-term intercompany accounts receivable		2,222,542		-		1,987,499		179,940		(4,389,981)		-
Equity investments of consolidated subsidiaries		(1,144,117)		4,459,353		6,422		-		(3,321,658)		-
Restricted cash		-		-		20,585		-		-		20,585
Intangible and other long-term assets, net		-		21,548		111,078		7,861		-		140,487
Total assets	$	1,078,425	$	4,547,709	$	4,520,400	$	700,834	$	(7,782,605)	$	3,064,763
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	-	$	11,611	$	118,464	$	18,424	$	-	$	148,499
Accrued expenses		256		113,943		77,410		24,192		-		215,801
Income taxes payable		-		304		-		630		-		934
Intercompany accounts payable		-		774		7,909		62,283		(70,966)		-
Current portion of decommissioning liabilities		-		-		20,670		1,617		-		22,287
Current maturities of long-term debt		-		-		-		744		-		744
Liabilities held for sale		-		-		-		4,851		-		4,851
Total current liabilities		256		126,632		224,453		112,741		(70,966)		393,116
Deferred income taxes		-		(160,785)		205,902		3,656		-		48,773
Decommissioning liabilities		-		-		102,244		1,844		-		104,088
Long-term debt, net		-		1,280,569		-		-		-		1,280,569
Long-term intercompany accounts payable		-		4,389,981		-		-		(4,389,981)		-
Other long-term liabilities		-		55,429		78,430		26,189		-		160,048
Total stockholders' equity (deficit)		1,078,169		(1,144,117)		3,909,371		556,404		(3,321,658)		1,078,169
Total liabilities and stockholders' equity	$	1,078,425	$	4,547,709	$	4,520,400	$	700,834	$	(7,782,605)	$	3,064,763

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
December 31, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	126,533	$	440	$	45,027	$	-	$	172,000
Accounts receivable, net		-		-		332,402		70,889		(5,235)		398,056
Income taxes receivable		-		-		(221)		1,180		-		959
Intercompany accounts receivable		-		6,460		58,375		5,865		(70,700)		-
Other current assets		-		11,895		129,970		34,295		-		176,160
Assets held for sale		-		-		-		13,644		-		13,644
Total current assets		-		144,888		520,966		170,900		(75,935)		760,819
Property, plant and equipment, net		-		12,055		1,093,446		211,443		-		1,316,944
Goodwill		-		-		657,099		150,761		-		807,860
Notes receivable		-		-		60,149		-		-		60,149
Long-term intercompany accounts receivable		2,221,697		-		2,032,056		177,842		(4,431,595)		-
Equity investments of consolidated subsidiaries		(1,088,736)		4,481,702		6,590		-		(3,399,556)		-
Restricted cash		-		-		20,483		-		-		20,483
Intangible and other long-term assets, net		-		22,118		113,632		8,220		-		143,970
Total assets	$	1,132,961	$	4,660,763	$	4,504,421	$	719,166	$	(7,907,086)	$	3,110,225
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	-	$	14,339	$	89,714	$	20,898	$	(5,235)	$	119,716
Accrued expenses		532		116,767		80,825		23,633		-		221,757
Intercompany accounts payable		-		724		7,918		62,058		(70,700)		-
Current portion of decommissioning liabilities		-		-		25,670		1,591		-		27,261
Liabilities held for sale		-		-		-		6,463		-		6,463
Total current liabilities		532		131,830		204,127		114,643		(75,935)		375,197
Deferred income taxes		-		(147,116)		205,386		2,788		-		61,058
Decommissioning liabilities		-		-		101,293		1,843		-		103,136
Long-term debt, net		-		1,279,771		-		-		-		1,279,771
Long-term intercompany accounts payable		-		4,431,595		-		-		(4,431,595)		-
Other long-term liabilities		-		53,419		79,061		26,154		-		158,634
Total stockholders' equity (deficit)		1,132,429		(1,088,736)		3,914,554		573,738		(3,399,556)		1,132,429
Total liabilities and stockholders' equity	$	1,132,961	$	4,660,763	$	4,504,421	$	719,166	$	(7,907,086)	$	3,110,225

Consolidating Statements of Operations And Comprehensive Income

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended March 31, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	435,134	$	53,259	$	(6,075)	$	482,318
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(2,626)		311,064		41,097		(6,075)		343,460
Depreciation, depletion, amortization and
accretion		-		1,019		92,714		11,986		-		105,719
General and administrative expenses		-		25,664		38,689		11,467		-		75,820
Loss from operations		-		(24,057)		(7,333)		(11,291)		-		(42,681)
Other income (expense):
Interest expense, net		-		(25,870)		967		16		-		(24,887)
Other income (expense)		-		(66)		274		(1,943)		-		(1,735)
Equity in losses of consolidated subsidiaries		(59,724)		(17,470)		(168)		-		77,362		-
Loss from continuing operations before income taxes		(59,724)		(67,463)		(6,260)		(13,218)		77,362		(69,303)
Income taxes		-		(7,739)		(1,076)		(540)		-		(9,355)
Net loss from continuing operations		(59,724)		(59,724)		(5,184)		(12,678)		77,362		(59,948)
Loss from discontinued operations, net of income tax		-		-		-		224		-		224
Net loss	$	(59,724)	$	(59,724)	$	(5,184)	$	(12,454)	$	77,362	$	(59,724)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Three Months Ended March 31, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net loss	$	(59,724)	$	(59,724)	$	(5,184)	$	(12,454)	$	77,362	$	(59,724)
Change in cumulative translation adjustment, net of tax		4,388		4,388		-		4,388		(8,776)		4,388
Comprehensive loss	$	(55,336)	$	(55,336)	$	(5,184)	$	(8,066)	$	68,586	$	(55,336)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended March 31, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	353,860	$	52,188	$	(5,112)	$	400,936
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		760		284,960		41,378		(5,112)		321,986
Depreciation, depletion, amortization and
accretion		-		1,046		100,568		12,667		-		114,281
General and administrative expenses		-		25,935		37,144		12,414		-		75,493
Loss from operations		-		(27,741)		(68,812)		(14,271)		-		(110,824)
Other income (expense):
Interest expense, net		-		(25,241)		802		189		-		(24,250)
Other income (expense)		-		(411)		241		819		-		649
Equity in losses of consolidated subsidiaries		(91,659)		(54,562)		(60)		-		146,281		-
Loss from continuing operations before
income taxes		(91,659)		(107,955)		(67,829)		(13,263)		146,281		(134,425)
Income taxes		-		(16,296)		(28,968)		500		-		(44,764)
Net income (loss) from continuing operations		(91,659)		(91,659)		(38,861)		(13,763)		146,281		(89,661)
Loss from discontinued operations, net of income tax		-		-		-		(1,998)		-		(1,998)
Net loss	$	(91,659)	$	(91,659)	$	(38,861)	$	(15,761)	$	146,281	$	(91,659)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Three Months Ended March 31, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net loss	$	(91,659)	$	(91,659)	$	(38,861)	$	(15,761)	$	146,281	$	(91,659)
Change in cumulative translation adjustment, net of tax		1,724		1,724		-		1,724		(3,448)		1,724
Comprehensive loss	$	(89,935)	$	(89,935)	$	(38,861)	$	(14,037)	$	142,833	$	(89,935)

Condensed Consolidating Statements Of Cash Flows

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Three Months Ended March 31, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	6,229	$	(42,958)	$	17,549	$	(15,047)	$	9,269	$	(24,958)
Cash flows from investing activities:
Payments for capital expenditures		-		-		(63,489)		(2,245)		-		(65,734)
Proceeds from sales of assets		-		-		2,003		10,132		-		12,135
Net cash used in investing activities		-		-		(61,486)		7,887		-		(53,599)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		-		-		-		744		-		744
Intercompany dividends		-		-		-		9,269		(9,269)		-
Changes in notes with affiliated companies, net		(845)		(41,727)		44,181		(1,609)		-		-
Other		(5,384)		(75)		-		-		-		(5,459)
Net cash provided by (used in) financing activities		(6,229)		(41,802)		44,181		8,404		(9,269)		(4,715)
Effect of exchange rate changes on cash		-		-		-		1,812		-		1,812
Net decrease in cash, cash equivalents, and restricted cash		-		(84,760)		244		3,056		-		(81,460)
Cash, cash equivalents, and restricted cash at beginning of period		-		126,533		20,923		45,027		-		192,483
Cash, cash equivalents, and restricted cash at end of period	$	-	$	41,773	$	21,167	$	48,083	$	-	$	111,023

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Three Months Ended March 31, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	6,832	$	(42,698)	$	(560)	$	(6,299)	$	(42,725)
Cash flows from investing activities:
Payments for capital expenditures		-		(70)		(16,231)		(4,887)		(21,188)
Other		-		-		4,090		-		4,090
Net cash used in investing activities		-		(70)		(12,141)		(4,887)		(17,098)
Cash flows from financing activities:
Changes in notes with affiliated companies, net		1,723		18,058		(17,874)		(1,907)		-
Other		(8,555)		(151)		-		-		(8,706)
Net cash used in financing activities		(6,832)		17,907		(17,874)		(1,907)		(8,706)
Effect of exchange rate changes on cash		-		-		-		2,194		2,194
Net decrease in cash, cash equivalents, and restricted cash		-		(24,861)		(30,575)		(10,899)		(66,335)
Cash, cash equivalents, and restricted cash at beginning of period		-		127,445		51,789		66,858		246,092
Cash, cash equivalents, and restricted cash at end of period	$	-	$	102,584	$	21,214	$	55,959	$	179,757

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Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2018

Discontinued Operations [Abstract]

Assets and Liabilities of Disposal Groups

	March 31, 2018		December 31, 2017
Current assets	$	2,860	$	3,144
Property, plant and equipment, net		1,000		10,500
Total assets	$	3,860	$	13,644
Current liabilities	$	4,851	$	6,463

XML

Revenues (Narrative) (Details)	3 Months Ended
	Mar. 31, 2018
Revenues [Abstract]
Revenue performance obligation period	30 days

XML

Revenues (Disaggregation Of Revenues, By Geography) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 482,318	$ 400,936
Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	85,202	68,431
Onshore Completion and Workover Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	231,489	204,979
Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	100,717	68,605
Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	64,910	58,921
U.S. Land [Member]
Disaggregation of Revenue [Line Items]
Total revenues	331,496	258,661
U.S. Land [Member] | Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	40,717	21,162
U.S. Land [Member] | Onshore Completion and Workover Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	231,489	204,979
U.S. Land [Member] | Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	52,457	23,435
U.S. Land [Member] | Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	6,833	9,085
Gulf Of Mexico [Member]
Disaggregation of Revenue [Line Items]
Total revenues	76,051	74,948
Gulf Of Mexico [Member] | Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	20,989	23,485
Gulf Of Mexico [Member] | Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	17,500	17,746
Gulf Of Mexico [Member] | Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	37,562	33,717
Other Countries [Member]
Disaggregation of Revenue [Line Items]
Total revenues	74,771	67,327
Other Countries [Member] | Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	23,496	23,784
Other Countries [Member] | Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	30,760	27,424
Other Countries [Member] | Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	$ 20,515	$ 16,119

XML

Revenues (Disaggregation Of Revenues. By Type) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 482,318	$ 400,936
Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	85,202	68,431
Onshore Completion and Workover Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	231,489	204,979
Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	100,717	68,605
Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	64,910	58,921
Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	399,768	334,450
Services [Member] | Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	24,005	16,871
Services [Member] | Onshore Completion and Workover Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	221,347	199,446
Services [Member] | Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	94,614	63,282
Services [Member] | Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	59,802	54,851
Rentals [Member]
Disaggregation of Revenue [Line Items]
Total revenues	82,550	66,486
Rentals [Member] | Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	61,197	51,560
Rentals [Member] | Onshore Completion and Workover Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	10,142	5,533
Rentals [Member] | Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	6,103	5,323
Rentals [Member] | Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	$ 5,108	$ 4,070

XML

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventory [Abstract]
Finished Goods	$ 67,635	$ 61,764
Raw materials	14,140	13,727
Work-in-process	8,419	6,174
Supplies and consumables	25,102	24,923
Total	$ 115,296	$ 106,588

XML

Notes Receivable (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Notes Receivable [Abstract]
Amount of notes receivable	$ 115.0
Interest rate percentage to record present value of notes receivable	6.58%
Company recorded interest income	$ 1.0	$ 0.8

XML

Decommissioning Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Summary of the activity for the Company's decommissioning liabilities
Decommissioning liabilities	$ 126.4	$ 130.4

XML

Debt (Narrative) (Details)	Mar. 31, 2018 USD ($)
Debt Instrument [Line Items]
Current borrowing capacity	$ 267,700,000
Letters of Credit Outstanding, Amount	35,300,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	300,000,000
Senior Unsecured Notes Due 2021 [Member]
Debt Instrument [Line Items]
Senior Notes	$ 800,000,000
Stated interest rate on unsecured senior notes	7.125%
Senior Unsecured Notes Due 2024 [Member]
Debt Instrument [Line Items]
Debt issuance	$ 500,000,000
Stated interest rate on unsecured senior notes	7.75%

XML

Debt (Schedule Of Long Term Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total debt, gross	$ 1,300,000	$ 1,300,000
Unamortized debt issuance costs	(19,431)	(20,229)
Total debt, net	1,280,569	1,279,771
Total debt, gross, current	744
Unamortized debt issuance costs. current
Total debt, net, current	744
Senior Unsecured Notes Due 2024 [Member]
Debt Instrument [Line Items]
Total debt, gross	500,000	500,000
Senior Unsecured Notes Due 2021 [Member]
Debt Instrument [Line Items]
Total debt, gross	800,000	$ 800,000
Other [Member]
Debt Instrument [Line Items]
Total debt, gross, current	$ 744

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Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Fair Value Measurements [Abstract]
Fair value of long term debt	$ 1,332.5	$ 1,347.0

XML

Fair Value Measurements (Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Non-Qualified Deferred Compensation Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Intangible and other long-term assets, net	$ 14,112	$ 14,187
Non Qualified Deferred Compensation Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accounts payable	1,007	1,253
Other long-term liabilities	20,268	21,085
Level 1 [Member] | Non-Qualified Deferred Compensation Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Intangible and other long-term assets, net	371	370
Level 2 [Member] | Non-Qualified Deferred Compensation Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Intangible and other long-term assets, net	13,741	13,817
Level 2 [Member] | Non Qualified Deferred Compensation Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accounts payable	1,007	1,253
Other long-term liabilities	20,268	21,085
Level 3 [Member] | Non-Qualified Deferred Compensation Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Intangible and other long-term assets, net
Level 3 [Member] | Non Qualified Deferred Compensation Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accounts payable
Other long-term liabilities

XML

Segment Information (Schedule Of Segment Reporting Information By Segment And Identifiable Assets) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total revenues	$ 482,318	$ 400,936
Cost of services and rentals (exclusive of depreciation, depletion, amortization, and accretion)	343,460	321,986
Depreciation, depletion, amortization and accretion	105,719	114,281
General and administrative expenses	75,820	75,493
Loss from operations	(42,681)	(110,824)
Interest income (expense), net	(24,887)	(24,250)
Other expense	(1,735)	649
Loss from continuing operations before income taxes	(69,303)	(134,425)
Identifiable Assets	3,064,763		$ 3,110,225
Drilling Products and Services [Member]
Segment Reporting Information [Line Items]
Total revenues	85,202	68,431
Cost of services and rentals (exclusive of depreciation, depletion, amortization, and accretion)	35,070	29,058
Depreciation, depletion, amortization and accretion	29,641	34,729
General and administrative expenses	12,524	12,966
Loss from operations	7,967	(8,322)
Loss from continuing operations before income taxes	7,967	(8,322)
Identifiable Assets	585,933		662,968
Onshore Completion and Workover Services [Member]
Segment Reporting Information [Line Items]
Total revenues	231,489	204,979
Cost of services and rentals (exclusive of depreciation, depletion, amortization, and accretion)	180,651	193,689
Depreciation, depletion, amortization and accretion	47,655	49,147
General and administrative expenses	13,226	11,271
Loss from operations	(10,043)	(49,128)
Loss from continuing operations before income taxes	(10,043)	(49,128)
Identifiable Assets	1,553,817		1,501,214
Production Services [Member]
Segment Reporting Information [Line Items]
Total revenues	100,717	68,605
Cost of services and rentals (exclusive of depreciation, depletion, amortization, and accretion)	85,936	60,780
Depreciation, depletion, amortization and accretion	19,280	20,589
General and administrative expenses	9,593	11,281
Loss from operations	(14,092)	(24,045)
Loss from continuing operations before income taxes	(14,092)	(24,045)
Identifiable Assets	508,971		512,256
Technical Solutions [Member]
Segment Reporting Information [Line Items]
Total revenues	64,910	58,921
Cost of services and rentals (exclusive of depreciation, depletion, amortization, and accretion)	41,803	38,459
Depreciation, depletion, amortization and accretion	7,730	8,376
General and administrative expenses	14,060	13,568
Loss from operations	1,317	(1,482)
Interest income (expense), net	956	790
Loss from continuing operations before income taxes	2,273	(692)
Identifiable Assets	360,383		377,549
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Depreciation, depletion, amortization and accretion	1,413	1,440
General and administrative expenses	26,417	26,407
Loss from operations	(27,830)	(27,847)
Interest income (expense), net	(25,843)	(25,040)
Other expense	(1,735)	649
Loss from continuing operations before income taxes	(55,408)	$ (52,238)
Identifiable Assets	$ 55,659		$ 56,238

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Segment Information (Company's information by geographic area) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	$ 482,318	$ 400,936
Long-lived assets	1,300,897		$ 1,316,944
UNITED STATES
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	407,547	333,609
Long-lived assets	1,064,635		1,064,823
Other Countries [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenues	74,771	$ 67,327
Long-lived assets	$ 236,262		$ 252,121

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Stock-Based Compensation Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Awards, Excluding ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 7.9	$ 10.4

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Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Income Taxes [Abstract]
Unrecorded tax benefits	$ 30.7	$ 30.7

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Supplemental Guarantor Information (Narrative) (Details)	3 Months Ended
	Mar. 31, 2018 USD ($)
Condensed Financial Statements, Captions [Line Items]
Subsidiary ownership	100.00%
Unsecured Senior Notes Due 2024 [Member]
Condensed Financial Statements, Captions [Line Items]
Unsecured senior notes	$ 500,000
Stated interest rate on unsecured senior notes	7.75%

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Supplemental Guarantor Information (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 90,438	$ 172,000
Accounts receivable, net	443,253	398,056
Income taxes receivable		959
Other current assets	194,814	176,160
Assets held for sale	3,860	13,644
Total current assets	732,365	760,819
Property, plant and equipment, net	1,300,897	1,316,944
Goodwill	809,342	807,860
Notes receivable	61,087	60,149
Restricted cash	20,585	20,483
Intangible and other long-term assets, net	140,487	143,970
Total assets	3,064,763	3,110,225
Current liabilities:
Accounts payable	148,499	119,716
Accrued expenses	215,801	221,757
Income taxes payable	934
Current portion of decommissioning liabilities	22,287	27,261
Current maturities of long-term debt	744
Liabilities held for sale	4,851	6,463
Total current liabilities	393,116	375,197
Deferred income taxes	48,773	61,058
Decommissioning liabilities	104,088	103,136
Long-term debt, net	1,280,569	1,279,771
Other long-term liabilities	160,048	158,634
Total stockholders' equity	1,078,169	1,132,429
Total liabilities and stockholders' equity	3,064,763	3,110,225
Eliminations [Member]
Current assets:
Accounts receivable, net		(5,235)
Intercompany accounts receivable	(70,966)	(70,700)
Total current assets	(70,966)	(75,935)
Long-term intercompany accounts receivable	(4,389,981)	(4,431,595)
Equity investments of consolidated subsidiaries	(3,321,658)	(3,399,556)
Total assets	(7,782,605)	(7,907,086)
Current liabilities:
Accounts payable		(5,235)
Intercompany accounts payable	(70,966)	(70,700)
Total current liabilities	(70,966)	(75,935)
Long-term intercompany accounts payable	(4,389,981)	(4,431,595)
Total stockholders' equity	(3,321,658)	(3,399,556)
Total liabilities and stockholders' equity	(7,782,605)	(7,907,086)
Parent [Member]
Current assets:
Long-term intercompany accounts receivable	2,222,542	2,221,697
Equity investments of consolidated subsidiaries	(1,144,117)	(1,088,736)
Total assets	1,078,425	1,132,961
Current liabilities:
Accrued expenses	256	532
Total current liabilities	256	532
Total stockholders' equity	1,078,169	1,132,429
Total liabilities and stockholders' equity	1,078,425	1,132,961
Issuer [Member]
Current assets:
Cash and cash equivalents	41,773	126,533
Accounts receivable, net	(3,581)
Intercompany accounts receivable	6,623	6,460
Other current assets	10,944	11,895
Total current assets	55,759	144,888
Property, plant and equipment, net	11,049	12,055
Equity investments of consolidated subsidiaries	4,459,353	4,481,702
Intangible and other long-term assets, net	21,548	22,118
Total assets	4,547,709	4,660,763
Current liabilities:
Accounts payable	11,611	14,339
Accrued expenses	113,943	116,767
Income taxes payable	304
Intercompany accounts payable	774	724
Total current liabilities	126,632	131,830
Deferred income taxes	(160,785)	(147,116)
Long-term debt, net	1,280,569	1,279,771
Long-term intercompany accounts payable	4,389,981	4,431,595
Other long-term liabilities	55,429	53,419
Total stockholders' equity	(1,144,117)	(1,088,736)
Total liabilities and stockholders' equity	4,547,709	4,660,763
Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	582	440
Accounts receivable, net	383,048	332,402
Income taxes receivable		(221)
Intercompany accounts receivable	58,742	58,375
Other current assets	146,842	129,970
Total current assets	589,214	520,966
Property, plant and equipment, net	1,087,416	1,093,446
Goodwill	657,099	657,099
Notes receivable	61,087	60,149
Long-term intercompany accounts receivable	1,987,499	2,032,056
Equity investments of consolidated subsidiaries	6,422	6,590
Restricted cash	20,585	20,483
Intangible and other long-term assets, net	111,078	113,632
Total assets	4,520,400	4,504,421
Current liabilities:
Accounts payable	118,464	89,714
Accrued expenses	77,410	80,825
Intercompany accounts payable	7,909	7,918
Current portion of decommissioning liabilities	20,670	25,670
Total current liabilities	224,453	204,127
Deferred income taxes	205,902	205,386
Decommissioning liabilities	102,244	101,293
Other long-term liabilities	78,430	79,061
Total stockholders' equity	3,909,371	3,914,554
Total liabilities and stockholders' equity	4,520,400	4,504,421
Non-Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	48,083	45,027
Accounts receivable, net	63,786	70,889
Income taxes receivable		1,180
Intercompany accounts receivable	5,601	5,865
Other current assets	37,028	34,295
Assets held for sale	3,860	13,644
Total current assets	158,358	170,900
Property, plant and equipment, net	202,432	211,443
Goodwill	152,243	150,761
Long-term intercompany accounts receivable	179,940	177,842
Intangible and other long-term assets, net	7,861	8,220
Total assets	700,834	719,166
Current liabilities:
Accounts payable	18,424	20,898
Accrued expenses	24,192	23,633
Income taxes payable	630
Intercompany accounts payable	62,283	62,058
Current portion of decommissioning liabilities	1,617	1,591
Current maturities of long-term debt	744
Liabilities held for sale	4,851	6,463
Total current liabilities	112,741	114,643
Deferred income taxes	3,656	2,788
Decommissioning liabilities	1,844	1,843
Other long-term liabilities	26,189	26,154
Total stockholders' equity	556,404	573,738
Total liabilities and stockholders' equity	$ 700,834	$ 719,166

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Supplemental Guarantor Information (Condensed Consolidating Statements of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Financial Statements, Captions [Line Items]
Total revenues	$ 482,318	$ 400,936
Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion)	343,460	321,986
Depreciation, depletion, amortization and accretion	105,719	114,281
General and administrative expenses	75,820	75,493
Loss from operations	(42,681)	(110,824)
Other income (expense):
Interest expense, net	(24,887)	(24,250)
Other income (expense)	(1,735)	649
Loss from continuing operations before income taxes	(69,303)	(134,425)
Income taxes	(9,355)	(44,764)
Net loss from continuing operations	(59,948)	(89,661)
Loss from discontinued operations, net of income tax	224	(1,998)
Net loss	(59,724)	(91,659)
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Total revenues	(6,075)	(5,112)
Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion)	(6,075)	(5,112)
Other income (expense):
Equity in losses of consolidated subsidiaries	77,362	146,281
Loss from continuing operations before income taxes	77,362	146,281
Net loss from continuing operations	77,362	146,281
Net loss	77,362	146,281
Parent [Member]
Other income (expense):
Equity in losses of consolidated subsidiaries	(59,724)	(91,659)
Loss from continuing operations before income taxes	(59,724)	(91,659)
Net loss from continuing operations	(59,724)	(91,659)
Net loss	(59,724)	(91,659)
Issuer [Member]
Condensed Financial Statements, Captions [Line Items]
Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion)	(2,626)	760
Depreciation, depletion, amortization and accretion	1,019	1,046
General and administrative expenses	25,664	25,935
Loss from operations	(24,057)	(27,741)
Other income (expense):
Interest expense, net	(25,870)	(25,241)
Other income (expense)	(66)	(411)
Equity in losses of consolidated subsidiaries	(17,470)	(54,562)
Loss from continuing operations before income taxes	(67,463)	(107,955)
Income taxes	(7,739)	(16,296)
Net loss from continuing operations	(59,724)	(91,659)
Net loss	(59,724)	(91,659)
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Total revenues	435,134	353,860
Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion)	311,064	284,960
Depreciation, depletion, amortization and accretion	92,714	100,568
General and administrative expenses	38,689	37,144
Loss from operations	(7,333)	(68,812)
Other income (expense):
Interest expense, net	967	802
Other income (expense)	274	241
Equity in losses of consolidated subsidiaries	(168)	(60)
Loss from continuing operations before income taxes	(6,260)	(67,829)
Income taxes	(1,076)	(28,968)
Net loss from continuing operations	(5,184)	(38,861)
Net loss	(5,184)	(38,861)
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Total revenues	53,259	52,188
Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion)	41,097	41,378
Depreciation, depletion, amortization and accretion	11,986	12,667
General and administrative expenses	11,467	12,414
Loss from operations	(11,291)	(14,271)
Other income (expense):
Interest expense, net	16	189
Other income (expense)	(1,943)	819
Loss from continuing operations before income taxes	(13,218)	(13,263)
Income taxes	(540)	500
Net loss from continuing operations	(12,678)	(13,763)
Loss from discontinued operations, net of income tax	224	(1,998)
Net loss	$ (12,454)	$ (15,761)

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Supplemental Guarantor Information (Consolidating Statements of Comprehensive Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Condensed Financial Statements, Captions [Line Items]
Net loss	$ (59,724)	$ (91,659)
Change in cumulative translation adjustment, net of tax	4,388	1,724
Comprehensive loss	(55,336)	(89,935)
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Net loss	77,362	146,281
Change in cumulative translation adjustment, net of tax	(8,776)	(3,448)
Comprehensive loss	68,586	142,833
Parent [Member]
Condensed Financial Statements, Captions [Line Items]
Net loss	(59,724)	(91,659)
Change in cumulative translation adjustment, net of tax	4,388	1,724
Comprehensive loss	(55,336)	(89,935)
Issuer [Member]
Condensed Financial Statements, Captions [Line Items]
Net loss	(59,724)	(91,659)
Change in cumulative translation adjustment, net of tax	4,388	1,724
Comprehensive loss	(55,336)	(89,935)
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net loss	(5,184)	(38,861)
Comprehensive loss	(5,184)	(38,861)
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net loss	(12,454)	(15,761)
Change in cumulative translation adjustment, net of tax	4,388	1,724
Comprehensive loss	$ (8,066)	$ (14,037)

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Supplemental Guarantor Information (Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$ (24,958)	$ (42,725)
Cash flows from investing activities:
Payments for capital expenditures	(65,734)	(21,188)
Proceeds from sales of assets	12,135	4,090
Net cash used in investing activities	(53,599)	(17,098)
Cash flows from financing activities:
Proceeds from issuance of short-term debt	744
Other	(5,459)	(8,706)
Net cash provided by (used in) financing activities	(4,715)	(8,706)
Effect of exchange rate changes on cash	1,812	2,194
Net decrease in cash, cash equivalents, and restricted cash	(81,460)	(66,335)
Cash, cash equivalents, and restricted cash at beginning of period	192,483	246,092
Cash, cash equivalents, and restricted cash at end of period	111,023	179,757
Eliminations [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	9,269
Cash flows from financing activities:
Intercompany dividends	(9,269)
Net cash provided by (used in) financing activities	(9,269)
Parent [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	6,229	6,832
Cash flows from financing activities:
Changes in notes with affiliated companies, net	(845)	1,723
Other	(5,384)	(8,555)
Net cash provided by (used in) financing activities	(6,229)	(6,832)
Issuer [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(42,958)	(42,698)
Cash flows from investing activities:
Payments for capital expenditures		(70)
Net cash used in investing activities		(70)
Cash flows from financing activities:
Changes in notes with affiliated companies, net	(41,727)	18,058
Other	(75)	(151)
Net cash provided by (used in) financing activities	(41,802)	17,907
Net decrease in cash, cash equivalents, and restricted cash	(84,760)	(24,861)
Cash, cash equivalents, and restricted cash at beginning of period	126,533	127,445
Cash, cash equivalents, and restricted cash at end of period	41,773	102,584
Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	17,549	(560)
Cash flows from investing activities:
Payments for capital expenditures	(63,489)	(16,231)
Proceeds from sales of assets	2,003	4,090
Net cash used in investing activities	(61,486)	(12,141)
Cash flows from financing activities:
Changes in notes with affiliated companies, net	44,181	(17,874)
Net cash provided by (used in) financing activities	44,181	(17,874)
Net decrease in cash, cash equivalents, and restricted cash	244	(30,575)
Cash, cash equivalents, and restricted cash at beginning of period	20,923	51,789
Cash, cash equivalents, and restricted cash at end of period	21,167	21,214
Non-Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(15,047)	(6,299)
Cash flows from investing activities:
Payments for capital expenditures	(2,245)	(4,887)
Proceeds from sales of assets	10,132
Net cash used in investing activities	7,887	(4,887)
Cash flows from financing activities:
Proceeds from issuance of short-term debt	744
Intercompany dividends	9,269
Changes in notes with affiliated companies, net	(1,609)	(1,907)
Net cash provided by (used in) financing activities	8,404	(1,907)
Effect of exchange rate changes on cash	1,812	2,194
Net decrease in cash, cash equivalents, and restricted cash	3,056	(10,899)
Cash, cash equivalents, and restricted cash at beginning of period	45,027	66,858
Cash, cash equivalents, and restricted cash at end of period	$ 48,083	$ 55,959

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Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Discontinued Operations [Abstract]
Income (loss) from discontinued operations, net of income tax	$ 224	$ (1,998)

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Discontinued Operations (Assets and liabilities of disposal groups) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Current assets	$ 3,860	$ 13,644
Segment, Discontinued Operations [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Current assets	2,860	3,144
Property, plant and equipment, net	1,000	10,500
Total assets	3,860	13,644
Current liabilities	$ 4,851	$ 6,463

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New Accounting Pronouncements (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017 USD ($)
Accounting Standards Update 2016-18 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Effect of change in accounting principle	$ 30.6