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 September 30, 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 postsuch files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer,  a  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      ☐	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 October 19, 2018 was 154,530,114.

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

Quarterly Report on Form 10-Q for

the Quarterly Period Ended September 30, 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	23
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	28
Item 4.	Controls and Procedures	29
PART II.	OTHER INFORMATION
Item 1	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 6.	Exhibits	30

2

PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
September 30, 2018 and December 31, 2017
(in thousands, except share data)
(unaudited)
	9/30/2018		12/31/2017
ASSETS
Current assets:
Cash and cash equivalents	$	104,690	$	172,000
Accounts receivable, net of allowance for doubtful accounts of $17,884 and
$29,037 at September 30, 2018 and December 31, 2017, respectively		493,243		398,056
Income taxes receivable		-		959
Prepaid expenses		42,271		42,128
Inventory and other current assets		150,683		134,032
Assets held for sale		-		13,644
Total current assets		790,887		760,819
Property, plant and equipment, net of accumulated depreciation and depletion of $2,890,000 and $2,736,620 at September 30, 2018 and December 31, 2017, respectively		1,198,549		1,316,944
Goodwill		806,496		807,860
Notes receivable		63,009		60,149
Restricted cash		8,677		20,483
Intangible and other long-term assets, net of accumulated amortization of $92,599 and $83,359 at September 30, 2018 and December 31, 2017, respectively		134,112		143,970
Total assets	$	3,001,730	$	3,110,225
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	132,166	$	119,716
Accrued expenses		230,520		221,757
Income taxes payable		2,119		-
Current portion of decommissioning liabilities		24,182		27,261
Liabilities held for sale		-		6,463
Total current liabilities		388,987		375,197
Deferred income taxes		33,464		61,058
Decommissioning liabilities		104,416		103,136
Long-term debt, net		1,282,014		1,279,771
Other long-term liabilities		156,834		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 - 154,530,114 at September 30, 2018 Authorized - 250,000,000, Issued and Outstanding - 153,263,097 at December 31, 2017		155		153
Additional paid in capital		2,728,167		2,713,161
Accumulated other comprehensive loss, net		(70,918)		(67,427)
Retained deficit		(1,621,389)		(1,513,458)
Total stockholders’ equity		1,036,015		1,132,429
Total liabilities and stockholders’ equity	$	3,001,730	$	3,110,225
See accompanying notes to condensed consolidated financial statements.

3

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
Three and Nine Months Ended September 30, 2018 and 2017
(in thousands, except per share data)
(unaudited)
	Three Months				Nine Months
	2018		2017		2018		2017
Revenues:
Services	$	471,218	$	431,874	$	1,317,798	$	1,170,455
Rentals		101,850		74,155		273,136		206,578
Total revenues		573,068		506,029		1,590,934		1,377,033
Costs and expenses:
Cost of services (exclusive of depreciation, depletion, amortization and accretion)		372,837		340,401		1,017,102		959,630
Cost of rentals (exclusive of depreciation, depletion, amortization and accretion)		31,552		27,878		100,557		82,437
Depreciation, depletion, amortization and accretion - services		81,911		92,814		251,398		281,097
Depreciation, depletion, amortization and accretion - rentals		17,981		15,937		52,186		50,054
General and administrative expenses		68,895		74,372		214,611		226,573
Reduction in value of assets		-		9,953		-		9,953
Loss from operations		(108)		(55,326)		(44,920)		(232,711)
Other expense:
Interest expense, net		(24,952)		(29,096)		(74,733)		(76,679)
Other expense		(277)		(970)		(4,394)		(2,477)
Loss from continuing operations before income taxes		(25,337)		(85,392)		(124,047)		(311,867)
Income taxes		(3,521)		(28,203)		(16,846)		(102,978)
Net loss from continuing operations		(21,816)		(57,189)		(107,201)		(208,889)
Loss from discontinued operations, net of income tax		-		(1,860)		(729)		(5,625)
Net loss	$	(21,816)	$	(59,049)	$	(107,930)	$	(214,514)
Loss per share information:
Basic and diluted:
Net loss from continuing operations	$	(0.14)	$	(0.37)	$	(0.70)	$	(1.37)
Loss from discontinued operations		-		(0.02)		-		(0.04)
Net loss	$	(0.14)	$	(0.39)	$	(0.70)	$	(1.41)
Weighted average common shares used in computing loss per share:
Basic and diluted		154,529		153,082		154,047		152,624

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Loss
Three and Nine Months Ended September 30, 2018 and 2017
(in thousands)
(unaudited)
	Three Months				Nine Months
	2018		2017		2018		2017
Net loss	$	(21,816)	$	(59,049)	$	(107,930)	$	(214,514)
Change in cumulative translation adjustment, net of tax		(826)		3,629		(3,491)		11,375
Comprehensive loss	$	(22,642)	$	(55,420)	$	(111,421)	$	(203,139)
See accompanying notes to condensed consolidated financial statements.

4

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2018 and 2017
(in thousands)
(unaudited)
	2018		2017
Cash flows from operating activities:
Net loss	$	(107,930)	$	(214,514)
Adjustments to reconcile net loss to net cash provided by operating   activities:
Depreciation, depletion, amortization and accretion		303,584		331,151
Deferred income taxes		(25,475)		(92,999)
Reduction in value of assets		-		9,953
Stock based compensation expense		23,303		29,780
Other reconciling items, net		(8,255)		(10,489)
Changes in operating assets and liabilities:
Accounts receivable		(95,806)		(116,989)
Inventory and other current assets		(16,879)		(8,510)
Accounts payable		18,367		24,821
Accrued expenses		(9,543)		7,182
Income taxes		1,318		100,969
Other, net		672		(12,439)
Net cash provided by operating activities		83,356		47,916
Cash flows from investing activities:
Payments for capital expenditures		(186,283)		(109,635)
Proceeds from sales of assets		29,595		15,647
Net cash used in investing activities		(156,688)		(93,988)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		-		500,000
Principal payments on long-term debt		-		(500,000)
Payment of debt issuance costs		-		(9,091)
Tax withholdings for vested restricted stock units		(5,189)		(8,327)
Other		1,239		1,538
Net cash used in financing activities		(3,950)		(15,880)
Effect of exchange rate changes on cash		(1,834)		3,294
Net decrease in cash, cash equivalents, and restricted cash		(79,116)		(58,658)
Cash, cash equivalents, and restricted cash at beginning of period		192,483		246,092
Cash, cash equivalents, and restricted cash at end of period	$	113,367	$	187,434
See accompanying notes to condensed consolidated financial statements.

5

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

Nine Months Ended September 30, 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 and nine months ended September 30, 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 nine 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)Revenue

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

Disaggregation of revenue

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

	Three Months Ended September 30,				Nine Months Ended September 30,
		2018		2017		2018		2017
U.S. land
Drilling Products and Services	$	45,605	$	33,779	$	129,716	$	82,711
Onshore Completion and Workover Services		294,869		248,405		802,600		702,463
Production Services		47,858		40,123		148,259		96,620
Technical Solutions		8,453		9,118		23,144		26,124
Total U.S. land	$	396,785	$	331,425	$	1,103,719	$	907,918
Gulf of Mexico
Drilling Products and Services	$	26,065	$	23,234	$	70,315	$	68,985
Onshore Completion and Workover Services		-		-		-		-
Production Services		16,776		16,487		47,910		54,170
Technical Solutions		47,286		51,991		120,181		127,738
Total Gulf of Mexico	$	90,127	$	91,712	$	238,406	$	250,893
International
Drilling Products and Services	$	27,514	$	20,193	$	78,388	$	62,768
Onshore Completion and Workover Services		-		-		-		-
Production Services		41,236		40,723		112,422		103,754
Technical Solutions		17,406		21,976		57,999		51,700
Total International	$	86,156	$	82,892	$	248,809	$	218,222
Total Revenues	$	573,068	$	506,029	$	1,590,934	$	1,377,033

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

	Three Months Ended September 30,				Nine Months Ended September 30,
		2018		2017		2018		2017
Services
Drilling Products and Services	$	24,083	$	21,064	$	75,549	$	57,564
Onshore Completion and Workover Services		284,187		239,208		771,605		679,115
Production Services		97,551		93,422		285,843		239,279
Technical Solutions		65,397		78,180		184,801		194,497
Total services	$	471,218	$	431,874	$	1,317,798	$	1,170,455
Rentals
Drilling Products and Services	$	75,101	$	56,142	$	202,870	$	156,900
Onshore Completion and Workover Services		10,682		9,197		30,995		23,348
Production Services		8,319		3,911		22,748		15,265
Technical Solutions		7,748		4,905		16,523		11,065
Total rentals	$	101,850	$	74,155	$	273,136	$	206,578
Total Revenues	$	573,068	$	506,029	$	1,590,934	$	1,377,033

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):

	September 30, 2018		December 31, 2017
Finished goods	$	61,393	$	61,764
Raw materials		18,131		13,727
Work-in-process		8,332		6,174
Supplies and consumables		26,785		24,923
Total	$	114,641	$	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 $2.9 million and $2.6 million for the nine months ended September 30, 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 $128.6  million and $130.4 million at September 30, 2018 and December 31, 2017, respectively.

(6)Debt

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

	September 30, 2018		December 31, 2017
	Long-term		Long-term
Senior unsecured notes due September 2024	$	500,000	$	500,000
Senior unsecured notes due December 2021		800,000		800,000
Total debt, gross		1,300,000		1,300,000
Unamortized debt issuance costs		(17,986)		(20,229)
Total debt, net	$	1,282,014	$	1,279,771

Credit Facility

The Company has an 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 September 30, 2018, the borrowing base was $261.0million and the Company had $47.2 million of letters of credit outstanding that reduced its borrowing availability under the revolving credit facility.  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 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 September 30, 2018
	Level 1		Level 2		Level 3		Total
Intangible and other long-term assets, net
Non-qualified deferred compensation assets	$	374	$	14,368	$	-	$	14,742
Accounts payable
Non-qualified deferred compensation liabilities	$	-	$	1,355	$	-	$	1,355
Other long-term liabilities
Non-qualified deferred compensation liabilities	$	-	$	21,672	$	-	$	21,672
	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 $1,326.3 million and $1,347.0million as of September 30, 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 control services, stimulation and sand control services and well plug and abandonment services. It also includes the 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 September 30, 2018
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	99,184	$	294,869	$	105,870	$	73,145	$	-	$	573,068
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		37,328		239,348		84,312		43,401		-		404,389
Depreciation, depletion, amortization
and accretion		27,830		47,299		17,085		6,329		1,349		99,892
General and administrative expenses		13,771		5,455		10,471		14,453		24,745		68,895
Income (loss) from operations		20,255		2,767		(5,998)		8,962		(26,094)		(108)
Interest income (expense), net		-		-		-		986		(25,938)		(24,952)
Other expense		-		-		-		-		(277)		(277)
Income (loss) from continuing operations
before income taxes	$	20,255	$	2,767	$	(5,998)	$	9,948	$	(52,309)	$	(25,337)

10

Three Months Ended September 30, 2017
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	77,206	$	248,405	$	97,333	$	83,085	$	-	$	506,029
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		31,444		210,231		78,035		48,569		-		368,279
Depreciation, depletion, amortization
and accretion		31,839		48,131		19,333		8,029		1,419		108,751
General and administrative expenses		12,758		10,922		12,735		13,492		24,465		74,372
Reduction in value of assets		-		1,838		-		8,115		-		9,953
Income (loss) from operations		1,165		(22,717)		(12,770)		4,880		(25,884)		(55,326)
Interest income (expense), net		-		-		-		926		(30,022)		(29,096)
Other expense		-		-		-		-		(970)		(970)
Income (loss) from continuing operations
before income taxes	$	1,165	$	(22,717)	$	(12,770)	$	5,806	$	(56,876)	$	(85,392)

Nine Months Ended September 30, 2018
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	278,419	$	802,600	$	308,591	$	201,324	$	-	$	1,590,934
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		108,997		630,205		255,377		123,080		-		1,117,659
Depreciation, depletion, amortization
and accretion		86,061		142,377		50,668		20,332		4,146		303,584
General and administrative expenses		40,138		29,783		29,760		41,836		73,094		214,611
Income/(loss) from operations		43,223		235		(27,214)		16,076		(77,240)		(44,920)
Interest income (expense), net		-		-		-		2,913		(77,646)		(74,733)
Other expense		-		-		-		-		(4,394)		(4,394)
Income/(loss) from continuing operations
before income taxes	$	43,223	$	235	$	(27,214)	$	18,989	$	(159,280)	$	(124,047)

11

Nine Months Ended September 30, 2017
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	214,464	$	702,463	$	254,544	$	205,562	$	-	$	1,377,033
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		93,504		610,941		210,192		127,430		-		1,042,067
Depreciation, depletion, amortization
and accretion		100,187		141,899		60,115		24,660		4,290		331,151
General and administrative expenses		38,463		33,997		35,902		40,888		77,323		226,573
Reduction in value of assets		-		1,838		-		8,115		-		9,953
Income (loss) from operations		(17,690)		(86,212)		(51,665)		4,469		(81,613)		(232,711)
Interest income (expense), net		-		-		-		2,627		(79,306)		(76,679)
Other expense		-		-		-		-		(2,477)		(2,477)
Income (loss) from continuing operations
before income taxes	$	(17,690)	$	(86,212)	$	(51,665)	$	7,096	$	(163,396)	$	(311,867)

Identifiable Assets
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
September 30, 2018	$	564,813	$	1,468,622	$	564,300	$	352,327	$	51,668	$	3,001,730
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 September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
United States	$	486,912	$	423,137	$	1,342,125	$	1,158,811
Other countries		86,156		82,892		248,809		218,222
Total	$	573,068	$	506,029	$	1,590,934	$	1,377,033
Long-Lived Assets
	September 30, 2018		December 31, 2017
United States	$	982,737	$	1,064,823
Other countries		215,812		252,121
Total	$	1,198,549	$	1,316,944

12

(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 $22.8 million and $29.2 million for the nine months ended September 30, 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 September 30, 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 nine months ended September 30, 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 and nine months ended September 30, 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.

13

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	37,745	$	547	$	66,398	$	-	$	104,690
Accounts receivable, net		-		(235)		431,609		61,869		-		493,243
Intercompany accounts receivable		-		10,232		67,417		3,139		(80,788)		-
Other current assets		-		9,207		145,879		37,868		-		192,954
Total current assets		-		56,949		645,452		169,274		(80,788)		790,887
Property, plant and equipment, net		-		10,577		1,001,662		186,310		-		1,198,549
Goodwill		-		-		657,099		149,397		-		806,496
Notes receivable		-		-		63,009		-		-		63,009
Long-term intercompany accounts receivable		2,236,472		-		2,047,835		182,529		(4,466,836)		-
Equity investments of consolidated subsidiaries		(1,200,202)		4,477,064		6,122		-		(3,282,984)		-
Restricted cash		-		-		8,632		45		-		8,677
Intangible and other long-term assets, net		-		21,187		105,400		7,525		-		134,112
Total assets	$	1,036,270	$	4,565,777	$	4,535,211	$	695,080	$	(7,830,608)	$	3,001,730
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	-	$	8,089	$	106,867	$	17,210	$	-	$	132,166
Accrued expenses		255		110,937		89,405		29,923		-		230,520
Income taxes payable		-		555		-		1,564		-		2,119
Intercompany accounts payable		-		724		6,095		73,969		(80,788)		-
Current portion of decommissioning liabilities		-		-		20,670		3,512		-		24,182
Total current liabilities		255		120,305		223,037		126,178		(80,788)		388,987
Deferred income taxes		-		(155,505)		185,496		3,473		-		33,464
Decommissioning liabilities		-		-		104,416		-		-		104,416
Long-term debt, net		-		1,282,014		-		-		-		1,282,014
Long-term intercompany accounts payable		-		4,466,836		-		-		(4,466,836)		-
Other long-term liabilities		-		52,329		78,324		26,181		-		156,834
Total stockholders' equity (deficit)		1,036,015		(1,200,202)		3,943,938		539,248		(3,282,984)		1,036,015
Total liabilities and stockholders' equity	$	1,036,270	$	4,565,777	$	4,535,211	$	695,080	$	(7,830,608)	$	3,001,730

14

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

15

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	511,510		66,428		(4,870)	$	573,068
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(793)		366,568		43,484		(4,870)		404,389
Depreciation, depletion, amortization and
accretion		-		965		87,973		10,954		-		99,892
General and administrative expenses		-		23,959		34,726		10,210		-		68,895
Income (loss) from operations		-		(24,131)		22,243		1,780		-		(108)
Other income (expense):
Interest expense, net		-		(26,024)		993		79		-		(24,952)
Other income (expense)		-		(356)		264		(185)		-		(277)
Equity in earnings (losses) of consolidated subsidiaries		(21,816)		19,182		(53)		-		2,687		-
Income (loss) from operations before income taxes		(21,816)		(31,329)		23,447		1,674		2,687		(25,337)
Income taxes		-		(9,513)		5,260		732		-		(3,521)
Net income (loss)	$	(21,816)	$	(21,816)	$	18,187	$	942	$	2,687	$	(21,816)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Three Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(21,816)	$	(21,816)	$	18,187	$	942	$	2,687	$	(21,816)
Change in cumulative translation adjustment, net of tax		(826)		(826)		-		(826)		1,652		(826)
Comprehensive income (loss)	$	(22,642)	$	(22,642)	$	18,187	$	116	$	4,339	$	(22,642)

16

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended September 30, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	449,267	$	60,311	$	(3,549)	$	506,029
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(2,505)		329,074		45,259		(3,549)		368,279
Depreciation, depletion, amortization and
accretion		-		1,033		94,829		12,889		-		108,751
General and administrative expenses		-		23,960		38,247		12,165		-		74,372
Reduction in value of assets		-		-		1,835		8,118		-		9,953
Loss from operations		-		(22,488)		(14,718)		(18,120)		-		(55,326)
Other income (expense):
Interest expense, net		-		(30,216)		969		151		-		(29,096)
Other income (expense)		-		(282)		199		(887)		-		(970)
Equity in losses of consolidated subsidiaries		(59,049)		(25,096)		(250)		-		84,395		-
Loss from continuing operations before income taxes		(59,049)		(78,082)		(13,800)		(18,856)		84,395		(85,392)
Income taxes		-		(19,033)		(2,750)		(6,420)		-		(28,203)
Net loss from continuing operations		(59,049)		(59,049)		(11,050)		(12,436)		84,395		(57,189)
Loss from discontinued operations, net of income tax		-		-		-		(1,860)		-		(1,860)
Net loss	$	(59,049)	$	(59,049)	$	(11,050)	$	(14,296)	$	84,395	$	(59,049)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Three Months Ended September 30, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net loss	$	(59,049)	$	(59,049)	$	(11,050)	$	(14,296)	$	84,395	$	(59,049)
Change in cumulative translation adjustment, net of tax		3,629		3,629		-		3,629		(7,258)		3,629
Comprehensive loss	$	(55,420)	$	(55,420)	$	(11,050)	$	(10,667)	$	77,137	$	(55,420)

17

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Nine Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	1,420,368	$	192,976	$	(22,410)	$	1,590,934
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(6,382)		1,011,801		134,650		(22,410)		1,117,659
Depreciation, depletion, amortization and
accretion		-		2,974		266,188		34,422		-		303,584
General and administrative expenses		-		70,721		109,083		34,807		-		214,611
Income (loss) from operations		-		(67,313)		33,296		(10,903)		-		(44,920)
Other income (expense):
Interest expense, net		-		(77,778)		2,940		105		-		(74,733)
Other income (expense)		-		(608)		802		(4,588)		-		(4,394)
Equity in earnings (losses) of consolidated subsidiaries		(107,930)		13,073		(421)		-		95,278		-
Income (loss) from continuing operations before income taxes		(107,930)		(132,626)		36,617		(15,386)		95,278		(124,047)
Income taxes		-		(24,696)		7,185		665		-		(16,846)
Net income (loss) from continuing operations		(107,930)		(107,930)		29,432		(16,051)		95,278		(107,201)
Loss from discontinued operations, net of income tax		-		-		-		(729)		-		(729)
Net income (loss)	$	(107,930)	$	(107,930)	$	29,432	$	(16,780)	$	95,278	$	(107,930)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Nine Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(107,930)	$	(107,930)	$	29,432	$	(16,780)	$	95,278	$	(107,930)
Change in cumulative translation adjustment, net of tax		(3,491)		(3,491)		-		(3,491)		6,982		(3,491)
Comprehensive income (loss)	$	(111,421)	$	(111,421)	$	29,432	$	(20,271)	$	102,260	$	(111,421)

18

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Nine Months Ended September 30, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	1,219,455	$	168,810	$	(11,232)	$	1,377,033
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(245)		925,043		128,501		(11,232)		1,042,067
Depreciation, depletion, amortization and
accretion		-		3,114		289,428		38,609		-		331,151
General and administrative expenses		-		75,843		113,123		37,607		-		226,573
Reduction in value of assets		-		-		1,835		8,118		-		9,953
Loss from operations		-		(78,712)		(109,974)		(44,025)		-		(232,711)
Other income (expense):
Interest expense, net		-		(79,827)		2,728		420		-		(76,679)
Other income (expense)		-		(1,004)		646		(2,119)		-		(2,477)
Equity in losses of consolidated subsidiaries		(214,514)		(104,203)		(458)		-		319,175		-
Loss from continuing operations before income taxes		(214,514)		(263,746)		(107,058)		(45,724)		319,175		(311,867)
Income taxes		-		(49,232)		(46,996)		(6,750)		-		(102,978)
Net loss from continuing operations		(214,514)		(214,514)		(60,062)		(38,974)		319,175		(208,889)
Loss from discontinued operations, net of income tax		-		-		-		(5,625)		-		(5,625)
Net loss	$	(214,514)	$	(214,514)	$	(60,062)	$	(44,599)	$	319,175	$	(214,514)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Nine Months Ended September 30, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net loss	$	(214,514)	$	(214,514)	$	(60,062)	$	(44,599)	$	319,175	$	(214,514)
Change in cumulative translation adjustment, net of tax		11,375		11,375		-		11,375		(22,750)		11,375
Comprehensive loss	$	(203,139)	$	(203,139)	$	(60,062)	$	(33,224)	$	296,425	$	(203,139)

19

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Nine Months Ended September 30, 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	$	18,290	$	(118,313)	$	174,198	$	23,450	$	(14,269)	$	83,356
Cash flows from investing activities:
Payments for capital expenditures		-		(1,509)		(175,524)		(9,250)		-		(186,283)
Proceeds from sales of assets		-		-		16,226		13,369		-		29,595
Net cash used in investing activities		-		(1,509)		(159,298)		4,119		-		(156,688)
Cash flows from financing activities:
Intercompany dividends		-		-		-		(14,269)		14,269		-
Changes in notes with affiliated companies, net		(14,775)		31,469		(26,644)		9,950		-		-
Other		(3,515)		(435)		-		-		-		(3,950)
Net cash provided by (used in) financing activities		(18,290)		31,034		(26,644)		(4,319)		14,269		(3,950)
Effect of exchange rate changes on cash		-		-		-		(1,834)		-		(1,834)
Net decrease in cash, cash equivalents, and restricted cash		-		(88,788)		(11,744)		21,416		-		(79,116)
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	$	-	$	37,745	$	9,179	$	66,443	$	-	$	113,367

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Nine Months Ended September 30, 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	$	20,316	$	(1,071)	$	46,999	$	(18,328)	$	47,916
Cash flows from investing activities:
Payments for capital expenditures		-		(1,041)		(94,884)		(13,710)		(109,635)
Other		-		-		15,647		-		15,647
Net cash used in investing activities		-		(1,041)		(79,237)		(13,710)		(93,988)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		-		500,000		-		-		500,000
Principal payments on long-term debt		-		(500,000)		-		-		(500,000)
Payment of debt issuance costs		-		(9,091)		-		-		(9,091)
Changes in notes with affiliated companies, net		(13,527)		6,037		1,336		6,154		-
Other		(6,789)		-		-		-		(6,789)
Net cash used in financing activities		(20,316)		(3,054)		1,336		6,154		(15,880)
Effect of exchange rate changes on cash		-		-		-		3,294		3,294
Net decrease in cash, cash equivalents, and restricted cash		-		(5,166)		(30,902)		(22,590)		(58,658)
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	$	-	$	122,279	$	20,887	$	44,268	$	187,434

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(13)  Discontinued Operations

During the nine months ended September 30, 2018, the remaining marine vessels and equipment of the Company’s former subsea construction business were disposed of, resulting in $0.8 million loss on sale.  Loss from discontinued operations for the three and nine months ended September 30, 2018 was $0 and $0.7 million, respectively.  Loss from discontinued operations for the three and nine months ended September 30, 2017 was $1.9 million and $5.6 million, 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. 

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 nine months ended September 30, 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 nine months ended September 30, 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.  The adoption of this ASU did not have a material impact on the Company’s 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 and disclose key information about leasing arrangements.  The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months.

The Company expects to adopt the new standard on January 1, 2019 and use the effective date as the date of initial application.  Therefore, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019.

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The new standard provides a number of optional practical expedients in transition.  The Company expects to elect the “package of practical expedients,” that would permit the Company to not reassess under the new standard prior conclusions reached about lease identification, lease classification and initial direct costs.

The Company expects that this standard will have a material effect on its financial statements.  While, the Company continues to assess all of the effects of the adoption of this ASU, the Company believes the most significant effects relate to (i) the recognition of new ROU assets and lease liabilities on the condensed consolidated balance sheet for the Company’s operating leases and (ii) providing significant new disclosures about the Company’s leasing activities.

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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.

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	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017		% Change	2018		2017		% Change
Worldwide Rig Count (1)
U.S.:
Land		1,032		927	11%		1,001		841	19%
Offshore		19		19	0%		18		20	-10%
Total		1,051		946	11%		1,019		861	18%
International (2)		1,003		947	6%		980		948	3%
Worldwide Total		2,054		1,893	9%		1,999		1,809	11%
Commodity Prices (average)
Crude Oil (West Texas Intermediate)	$	69.69	$	48.18	45%	$	66.93	$	49.30	36%
Natural Gas (Henry Hub)	$	2.93	$	2.95	-1%	$	2.95	$	3.01	-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 September 30, 2018 and June 30, 2018

For the third quarter of 2018, our revenue was $573.1 million and the net loss from continuing operations was $21.8 million, or a $0.14 loss per share.  This compares to net loss from continuing operations of $25.4 million, or a  $0.16 loss per share, for the second quarter of 2018, on revenue of $535.5 million.  Net loss for the third quarter of 2018 was $21.8 million, or a  $0.14 loss per share and net loss for the second quarter of 2018 was $26.4 million, or a  $0.17 loss per share.   

Third quarter 2018 revenue in our Drilling Products and Services segment increased 6% sequentially to $99.2 million, as compared to $94.0 million in the second quarter of 2018.  U.S. land revenue increased 5% sequentially to $45.6 million due to the increase in rental activity during the quarter.  International revenue remained flat at $27.5 million.  Gulf of Mexico revenue increased 12% sequentially to $26.1 million primarily due to an increase in rentals of premium drill pipe.

Third quarter 2018 revenue in our Onshore Completion and Workover Services segment increased 7% to $294.9 million, as compared to $276.2 million for the second quarter of 2018.  The increase in revenue is primarily attributable to increased activity in our pressure pumping business. 

Third quarter 2018 revenue in our Production Services segment increased 4% sequentially to $105.9 million, as compared to $102.0 million in the second quarter of 2018.  Gulf of Mexico revenue increased 24% sequentially to $16.8 million primarily due to an increase in pressure control and coiled tubing activities.  International revenue increased 2% sequentially to $41.2 million primarily due to an increase in coiled tubing activities.  U.S. land revenue remained flat at $47.9 million.

Third quarter 2018 revenue in our Technical Solutions segment increased 15% sequentially to $73.1 million, as compared to $63.3 million in the second quarter of 2018.  Gulf of Mexico revenue increased 34% sequentially to $47.3 million due to an increase in demand for completion tools and products.  U.S. land revenue increased 6% sequentially to $8.4 million, primarily due to an increase in demand for completion tools and products.  These increases were partially offset by a decrease in international revenue, which decreased 13% sequentially to $17.4 million primarily due to a decrease in demand for well control services.

Comparison of the Results of Operations for the Three Months Ended September 30, 2018 and 2017

For the three months ended September 30, 2018, our revenue was $573.1 million, an increase of $67.1 million or 13%, as compared to the same period in 2017.  The increase is largely attributable to a 11% increase in the U.S. land rig count.  Net loss was $21.8 million, or a $0.14 loss per share.  This compares to a net loss for the three months ended September 30, 2017 of $59.0 million, or a $0.39 loss per share.

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The following table compares our operating results for the three months ended September 30, 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	$	99,184	$	77,206	$	21,978	28%	$	37,328	38%	$	31,444	41%	$	5,884
Onshore Completion and
Workover Services		294,869		248,405		46,464	19%		239,348	81%		210,231	85%		29,117
Production Services		105,870		97,333		8,537	9%		84,312	80%		78,035	80%		6,277
Technical Solutions		73,145		83,085		(9,940)	-12%		43,401	59%		48,569	58%		(5,168)
Total	$	573,068	$	506,029	$	67,039	13%	$	404,389	71%	$	368,279	73%	$	36,110

Operating Segments:

Drilling Products and Services Segment

Revenue from our Drilling Products and Services segment increased 28% to $99.2 million for the three months ended September 30, 2018, as compared to $77.2 million for the same period in 2017.  Cost of services and rentals as a percentage of revenue decreased to 38% of segment revenue for the three months ended September 30, 2018, as compared to 41% for the same period in 2017.  Revenue from the U.S. land market areas increased 35% 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.  Revenue from the Gulf of Mexico market area increased 12% primarily due to an increase in revenue from rentals of premium drill pipe.  The revenue from the international market areas increased 36% primarily due to 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 19% to $294.9 million for the three months ended September 30, 2018, as compared to $248.4 million for the same period in 2017.  All of this segment’s revenue is derived from the U.S. land market area.  Cost of services and rentals as a percentage of revenue decreased to 81% of segment revenue for the three months ended September 30, 2018, as compared to 85% 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 increased activity in our pressure pumping and well services businesses. 

Production Services Segment

Revenue from our Production Services segment for the three months ended September 30, 2018 increased by 9% to $105.9 million, as compared to $97.3 million for the same period in 2017.  Cost of services and rentals as a percentage of revenue remained at 80% of segment revenue for the three months ended September 30, 2018.  Revenue from the U.S. land market area increased 19%, primarily due to increased activity in coiled tubing and pressure control services.  The revenue from the international market areas increased 1%, primarily due to an increase in coiled tubing activities.  Revenue from the Gulf of Mexico market area increased 2%, primarily due to an increase in pressure control activities.   

Technical Solutions Segment

Revenue from our Technical Solutions segment decreased 12% to $73.1 million for the three months ended September 30, 2018, as compared to $83.1 million for the same period in 2017.  Cost of services and rentals as a percentage of revenue increased to 59% of segment revenue for the three months ended September 30, 2018, as compared to 58% for the same period in 2017.  Revenue from the international market areas decreased 21%, primarily due to a decrease in demand for well control services.  Revenue derived from the Gulf of Mexico market area decreased 9%, primarily due to a decrease in demand for completion tools and products.  Revenue from the U.S. land market area remained unchanged.

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Depreciation, Depletion, Amortization and Accretion

Depreciation, depletion, amortization and accretion decreased to $99.9 million during the three months ended September 30, 2018 from $108.8 million during the same period in 2017.  Depreciation and amortization expense decreased for our Drilling Products and Services segment by $4.0 million, or 13%; for our Onshore Completion and Workover Services segment by $0.8 million, or 2% for our Production Services segment by $2.2 million, or 12%; and for our Technical Solutions segment by $2.0 million, or 21%.  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 $68.9 million for the three months ended September 30, 2018, as compared to $74.4 million during the same period in 2017.  Total general and administrative expenses decreased 7% due to a reduction in our cost structure and an increase in gains on sales of assets.

Reduction in Value of Assets

The reduction in value of assets recorded during the three months ended September 30, 2017 included $9.9 million related to the reduction in value of long-lived assets within the Onshore Completion and Workover Services and Technical Solutions segments.

Income Taxes

Our effective income tax rate for the three months ended September 30, 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 September 30, 2018 was primarily impacted by the enactment of the Tax Cuts and Jobs Act of 2017, including a reduced U.S. corporate tax rate. 

Comparison of the Results of Operations for the Nine Months Ended September 30, 2018 and 2017

For the nine months ended September 30, 2018, our revenue was $1,590.9 million, an increase of $ 213.9 million or 16%, as compared to the same period in 2017.  The increase is largely attributable to a 19% increase in the U.S. land rig count.  The net loss from continuing operations was $107.2 million, or a $0.70 loss per share.  Net loss was $107.9 million, or a $0.70 loss per share.  This compares to a net loss from continuing operations for the nine months ended September 30, 2017 of $208.9 million, or a $1.37 loss per share.  Net loss for the nine months ended September 30, 2017 was $214.5 million, or a $1.41 loss per share.

The following table compares our operating results for the nine months ended September 30, 2018 (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	$	278,419	$	214,464	$	63,955	30%	$	108,997	39%	$	93,504	44%	$	15,493
Onshore Completion and
Workover Services		802,600		702,463		100,137	14%		630,205	79%		610,941	87%		19,264
Production Services		308,591		254,544		54,047	21%		255,377	83%		210,192	83%		45,185
Technical Solutions		201,324		205,562		(4,238)	-2%		123,080	61%		127,430	62%		(4,350)
Total	$	1,590,934	$	1,377,033	$	213,901	16%	$	1,117,659	70%	$	1,042,067	76%	$	75,592

Operating Segments:

Drilling Products and Services Segment

Revenue from our Drilling Products and Services segment increased 30% to $278.4 million for the nine months ended September 30, 2018, as compared to $214.5 million for the same period in 2017.  Cost of services and rentals as a percentage of revenue decreased to 39% of segment revenue for the nine months ended September 30, 2018, as compared to 44% for the same period in 2017.  Revenue from the U.S. land market areas increased 57% 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 revenue from the international market areas increased 25% primarily due to an increase in revenue from rentals of premium drill pipe.  Revenue from the Gulf of Mexico market area increased 2% primarily due to an increase in revenue from rentals of premium drill pipe. 

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Onshore Completion and Workover Services Segment

Revenue from our Onshore Completion and Workover Services segment increased 14% to $802.6 million for the nine months ended September 30, 2018, as compared to $702.4 million for the same period in 2017.  All of this segment’s revenue is derived from the U.S. land market area.  Cost of services and rentals as a percentage of revenue decreased to 79% of segment revenue for the nine months ended September 30, 2018, as compared to 87% 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 increased activity in our pressure pumping, fluid management and well services businesses. 

Production Services Segment

Revenue from our Production Services segment for the nine months ended September 30, 2018 increased by 21% to $308.6 million, as compared to $254.5 million for the same period in 2017.  Cost of services and rentals as a percentage of revenue remained at 83% of segment revenue for the nine months ended September 30, 2018.  Revenue from the U.S. land market area increased 53%, primarily due to increased activity in coiled tubing and pressure control services.  The revenue from the international market areas increased 8%, primarily due to an increase in hydraulic workover and snubbing and coiled tubing 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 12%, primarily due to a decrease in slickline services and coiled tubing activities.   

Technical Solutions Segment

Revenue from our Technical Solutions segment decreased 2% to $201.3 million for the nine months ended September 30, 2018, as compared to $205.6 million for the same period in 2017.  Cost of services and rentals as a percentage of revenue decreased to 61% of segment revenue for the nine months ended September 30, 2018, as compared to 62% for the same period in 2017.  Revenue from the international market areas increased 12%, primarily due to an increase in demand for well control services.  Revenue derived from the Gulf of Mexico market area decreased 6%, primarily due to a decrease in demand for completion tools and products.  Revenue from the U.S. land market area decreased 11%, primarily due to a decrease in demand for well control services. 

Depreciation, Depletion, Amortization and Accretion

Depreciation, depletion, amortization and accretion decreased to $303.6 million during the nine months ended September 30, 2018 from $331.2 million during the same period in 2017.  Depreciation and amortization expense decreased for our Drilling Products and Services segment by $14.2 million, or 14%; for our Production Services segment by $9.5 million, or 16%; and for our Technical Solutions segment by $4.3 million, or 18%.  Depreciation expense for our Onshore Completion and Workover Services segment and 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 $214.6 million for the nine months ended September 30, 2018, as compared to $226.6 million during the same period in 2017.  Total general and administrative expenses decreased 5% due to a reduction in our cost structure and an increase in gains on sales of assets.

Reduction in Value of Assets

The reduction in value of assets recorded during the nine months ended September 30, 2017 included $9.9 million related to the reduction in value of long-lived assets within the Onshore Completion and Workover Services and Technical Solutions segments.

Income Taxes

Our effective income tax rate for the nine months ended September 30, 2018 was 13% compared to a 33% effective income tax rate for the same period in 2017.  The effective tax rate for the nine months ended September 30, 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 nine months ended September 30, 2018, we generated net cash from operating activities of $83.4 million, as compared to $47.9 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 $104.7 million at September 30, 2018, compared to $172.0 million at December 31, 2017. 

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We spent $186.3 million of cash on capital expenditures during the nine months ended September 30, 2018.  Approximately $40.2million was used to expand and maintain our Drilling Products and Services segment’s equipment inventory.  Approximately $124.6million was spent on our Onshore Completion and Workover Services segment, primarily to rebuild our pressure pumping fleet.  Approximately $8.6million and $11.3million was spent in our Production Services and Technical Solutions segments, respectively.  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 an 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 September 30, 2018, the borrowing base was $261.0 million and we had $47.2 million of letters of credit outstanding that reduced our borrowing availability under the revolving credit facility.   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 September 30, 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 through the maturity date of September 15, 2024.  The indenture contains customary events of default and requires that we satisfy various covenants.  At September 30, 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 September 30, 2018, we were in compliance with all such covenants.

Other Matters

Off-Balance Sheet Arrangements and Hedging Activities

At September 30, 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 September 30, 2018, we had no outstanding foreign currency forward contracts.

Interest Rate Risk

At September 30, 2018, we had no variable rate debt outstanding.

28

Commodity Price Risk

Our revenues and profitability significantly depend upon the market prices of oil and natural gas.

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 September 30, 2018, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

29

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
July 1 - 31, 2018	416	$	9.84
August 1 - 31, 2018	197	$	9.31
September 1 - 30, 2018	-	$	-
Total	613	$	9.67

(1)   Through our stock incentive plans, 613 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))
10.1*	First Amendment to Fifth Amended and Restated Credit Agreement, dated September 25, 2018, among SESI, L.L.C., Superior Energy Services, Inc., the guarantors party thereto, JPMorgan Chase Bank N.A. as administrative agent and the lenders party thereto.
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.

30

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

31

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:	October 23, 2018

32

EX-10.1

Exhibit 10.1

FIRST AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

THIS FIRSTAMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is entered into as of September 25, 2018 by SESI, L.L.C., a limited liability company duly formed and existing under the laws of the State of Delaware (the “Borrower”), Superior Energy Services, Inc., a corporation duly formed and existing under the laws of the State of Delaware (the “Parent”) each of the undersigned Guarantors (together with the Borrower and Parent, the “Loan Parties”), each of the undersigned Lenders, each Issuing Lender and JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders.

R E C I T A L S

A.    The Borrower, the Parent, the Administrative Agent, the Lenders and the Issuing Lenders  are parties to that certain Fifth Amended and Restated Credit Agreement dated as of October 20, 2017 (the “Credit Agreement”), pursuant to which the Lenders and Issuing Lenders have made certain credit available to and on behalf of the Borrower.

B.    The Borrower has requested and the Administrative Agent, Issuing Lenders and Lenders constituting the Required Lenders have agreed to make certain changes to the Credit Agreement as set forth herein.

C.    NOW, THEREFORE, to induce the Administrative Agent, the Issuing Lenders and the Lenders party hereto to enter into this Amendment and in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1.    Defined Terms.  Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement, as amended by this Amendment.  Unless otherwise indicated, all article, exhibit, section and schedule references in this Amendment refer to articles, exhibits, sections and schedules of the Credit Agreement.

Section 2.    Amendments to Credit Agreement.

2.1.    Amendment to Section 2.2.1(b).  Section 2.2.1(b) is hereby amended and restated in its entirety as follows:

(b)Each Letter of Credit shall (i) be denominated in U.S. Dollars or, if agreed by the Issuing Lender, any Alternate Currency and (ii) expire no later than the Termination Date.  Notwithstanding the foregoing, any Letter of Credit issued hereunder may, in the sole discretion of the Issuing Lender, expire after the Termination Date, provided that the Borrower shall provide cash collateral in an amount equal to 105% of the L/C Obligations (or, as applicable, the U.S. Dollar Equivalent of such L/C Obligations with respect to Letters of Credit issued in Alternative Currencies) in respect of any such outstanding Letter of Credit to the Issuing Lender at least 30 days prior to the Termination Date and enter into a reimbursement agreement on terms acceptable to the applicable Issuing Lender, which such amount shall be (A) deposited by the Borrower in an account with and in the name of the Issuing Lender and (B) held by such Issuing Lender for the satisfaction of the Borrower’s reimbursement obligations in respect of such Letter of Credit until the expiration of such Letter of Credit.  Any Letter of Credit issued with an expiration date beyond the Termination Date shall, to the extent of any undrawn amount remaining thereunder on the Termination Date, cease to be a “Letter of Credit” outstanding for all purposes under this Agreement.

Section 3.Conditions Precedent.  Upon the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.11 of the Credit Agreement) (such date, the “Satisfaction Date”), this Amendment shall be deemed effective (such date, the “First Amendment Effective Date”):

3.1.Execution and Delivery.  The Administrative Agent shall have received from the Loan Parties, each Issuing Lender and the Lenders constituting the Required Lenders, counterparts (in such number as may be requested by the Administrative Agent) of this Amendment signed on behalf of such Person.

3.2.Payment of Expenses.  The Administrative Agent and the Lenders shall have received all amounts due and payable on or prior to the Satisfaction Date, including, to the extent invoiced at least one Business Day prior to the Satisfaction Date, reimbursement or payment of all documented out-of-pocket expenses required to be reimbursed or paid by the Borrower under the Credit Agreement.

3.3.No Default or Event of Default.  No Default or Event of Default shall have occurred and be continuing as of the date hereof, after giving effect to the terms of this Amendment.

The Administrative Agent is hereby authorized and directed to declare this Amendment to be effective when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 3 or the waiver of such conditions as permitted by Section 9.11 of the Credit Agreement. Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.

Section 4.Miscellaneous.

4.1.Confirmation.  The provisions of the Credit Agreement, as amended by this Amendment, shall remain in full force and effect following the effectiveness of this Amendment.

4.2.Ratification and Affirmation; Representations and Warranties.  Each Loan Party hereby (a) acknowledges the terms of this Amendment; (b) ratifies and affirms its obligations under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby, notwithstanding the amendments contained herein; and (c) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Amendment:  (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects, except to the extent any such representations and warranties are stated to relate solely to an earlier date, in which case, such representations and warranties shall have been true and correct in all material respects on and as of such earlier date (provided that such materiality qualifier shall not be applicable to any representation or warranty that is already qualified or modified by materiality in the Credit Agreement) and (ii) no Default or Event of Default has occurred and is continuing.

4.3.No Waiver; Loan Document.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.  On and after the First Amendment Effective Date, this Amendment shall for all purposes constitute a Loan Document.

4.4.Counterparts.  This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of this Amendment by facsimile or electronic transmission in portable document format (.pdf) shall be effective as delivery of a manually executed counterpart hereof.

4.5.NO ORAL AGREEMENT.  THIS AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.  AS OF THE DATE OF THIS AMENDMENT, THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES.

4.6.GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK..

[SIGNATURES BEGIN NEXT PAGE]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first written above.

BORROWER:	SESI, L.L.C.
	By:	/s/ Westervelt T. Ballard, Jr.
	Name:	Westervelt Ballard
	Title:	Executive Vice President, Chief Financial Officer and Treasurer
PARENT:	SUPERIOR ENERGY SERVICES, INC.
	By:	/s/ Westervelt T. Ballard, Jr.
	Name:	Westervelt Ballard
	Title:	Executive Vice President, Chief Financial Officer and Treasurer

SUBSIDIARY GUARANTORS:	1105 PETERS ROAD, L.L.C.
	CONNECTION TECHNOLOGY, L.L.C. H.B. RENTALS, L.C.
	INTERNATIONAL SNUBBING SERVICES, L.L.C.
	STABIL DRILL SPECIALTIES, L.L.C.
	SUPERIOR INSPECTION SERVICES, L.L.C.
	WORKSTRINGS INTERNATIONAL, L.L.C.
	By:	/ s/ Westervelt T. Ballard, Jr.
	Name:	Westervelt Ballard
	Title:	Vice President and Treasurer
	COMPLETE ENERGY SERVICES, INC.
	PUMPCO ENERGY SERVICES, INC.
	SPN WELL SERVICES, INC.
	SUPERIOR ENERGY SERVICES-NORTH AMERICA SERVICES, INC.
	WARRIOR ENERGY SERVICES CORPORATION
	WILD WELL CONTROL, INC.
	By:	/s/ Westervelt T. Ballard, Jr.
	Name:	Westervelt Ballard
	Title:	Treasurer

Signature Page to First Amendment to
Fifth Amended and Restated Credit Agreement

SUPERIOR ENERGY SERVICES, L.L.C.
By:	/s/ Westervelt T. Ballard, Jr.
Name:	Westervelt Ballard
Title:	Executive Vice President, Chief Financial Officer and Treasurer

Signature Page to First Amendment to
Fifth Amended and Restated Credit Agreement

ADMINISTRATIVE AGENT, ISSUING LENDER AND LENDER:	JPMORGAN CHASE BANK, N.A.
	By:	/s/ J. Devin Mock
	Name:	J. Devin Mock
	Title:	Authorized Officer

Signature Page to First Amendment to
Fifth Amended and Restated Credit Agreement

ISSUING LENDER AND LENDER:	BANK OF AMERICA, N.A.
	By:	/s/ Terrance O. McKinney
	Name:	Terrance O. McKinney
	Title:	Senior Vice President

Signature Page to First Amendment to
Fifth Amended and Restated Credit Agreement

LENDER:	WELLS FARGO BANK, N.A.
	By:	/s/ James R. Harris
	Name:	James R. Harris
	Title:	Vice President

Signature Page to First Amendment to
Fifth Amended and Restated Credit Agreement

LENDER:	CAPITAL ONE, NATIONAL ASSOCIATION
	By:	/s/ Julianne Low
	Name:	Julianne Low
	Title:	Senior Director

Signature Page to First Amendment to
Fifth Amended and Restated Credit Agreement

LENDER:	HANCOCK WHITNEY BANK
	By:	/s/ Hollie Ericksen
	Name:	Hollie Ericksen
	Title:	Senior Vice President

Signature Page to First Amendment to
Fifth Amended and Restated Credit Agreement

LENDER:	ROYAL BANK OF CANADA
	By:	/s/ Jay T. Sartain
	Name:	Jay T. Sartain
	Title:	Authorized Signatory

Signature Page to First Amendment to
Fifth Amended and Restated Credit Agreement

ISSUING LENDER AND LENDER:	CITIBANK, N.A.
	By:	/s/ Brendan Mackay
	Name:	Brendan Mackay
	Title:	Vice President and Director

Signature Page to First Amendment to
Fifth Amended and Restated Credit Agreement

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:    October 23, 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: October 23, 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 September  30, 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:    October 23, 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 September  30, 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:    October 23, 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	9 Months Ended
	Sep. 30, 2018	Oct. 19, 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	Sep. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		154,530,114
Trading Symbol	spn

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 104,690	$ 172,000
Accounts receivable, net of allowance for doubtful accounts of $17,884 and $29,037 at September 30, 2018 and December 31, 2017, respectively	493,243	398,056
Income taxes receivable		959
Prepaid expenses	42,271	42,128
Inventory and other current assets	150,683	134,032
Assets held for sale		13,644
Total current assets	790,887	760,819
Property, plant and equipment, net of accumulated depreciation and depletion of $2,890,000 and $2,736,620 at September 30, 2018 and December 31, 2017, respectively	1,198,549	1,316,944
Goodwill	806,496	807,860
Notes receivable	63,009	60,149
Restricted cash	8,677	20,483
Intangible and other long-term assets, net of accumulated amortization of $92,599 and $83,359 at September 30, 2018 and December 31, 2017, respectively	134,112	143,970
Total assets	3,001,730	3,110,225
Current liabilities:
Accounts payable	132,166	119,716
Accrued expenses	230,520	221,757
Income taxes payable	2,119
Current portion of decommissioning liabilities	24,182	27,261
Liabilities held for sale		6,463
Total current liabilities	388,987	375,197
Deferred income taxes	33,464	61,058
Decommissioning liabilities	104,416	103,136
Long-term debt, net	1,282,014	1,279,771
Other long-term liabilities	156,834	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 - 154,530,114 at September 30, 2018, Authorized - 250,000,000, Issued and Outstanding - 153,263,097 at December 31, 2017	155	153
Additional paid in capital	2,728,167	2,713,161
Accumulated other comprehensive loss, net	(70,918)	(67,427)
Retained deficit	(1,621,389)	(1,513,458)
Total stockholders' equity	1,036,015	1,132,429
Total liabilities and stockholders' equity	$ 3,001,730	$ 3,110,225

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 17,884	$ 29,037
Accumulated depreciation and depletion on Property, plant and equipment	2,890,000	2,736,620
Accumulated amortization of Intangible and other long-term assets	$ 92,599	$ 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	154,530,114	153,263,097
Common stock, shares outstanding	154,530,114	153,263,097

XML

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Total revenues	$ 573,068	$ 506,029	$ 1,590,934	$ 1,377,033
Costs and expenses:
Costs (exclusive of depreciation, depletion, amortization and accretion)	404,389	368,279	1,117,659	1,042,067
Depreciation, depletion, amortization and accretion	99,892	108,751	303,584	331,151
General and administrative expenses	68,895	74,372	214,611	226,573
Reduction in value of assets		9,953		9,953
Loss from operations	(108)	(55,326)	(44,920)	(232,711)
Other expense:
Interest expense, net	(24,952)	(29,096)	(74,733)	(76,679)
Other expense	(277)	(970)	(4,394)	(2,477)
Loss from continuing operations before income taxes	(25,337)	(85,392)	(124,047)	(311,867)
Income taxes	(3,521)	(28,203)	(16,846)	(102,978)
Net loss from continuing operations	(21,816)	(57,189)	(107,201)	(208,889)
Loss from discontinued operations, net of income tax		(1,860)	(729)	(5,625)
Net loss	$ (21,816)	$ (59,049)	$ (107,930)	$ (214,514)
Basic and diluted:
Net loss from continuing operations	$ (0.14)	$ (0.37)	$ (0.70)	$ (1.37)
Loss from discontinued operations		(0.02)		(0.04)
Net loss	$ (0.14)	$ (0.39)	$ (0.70)	$ (1.41)
Weighted average common shares used in computing loss per share:
Basic and diluted	154,529	153,082	154,047	152,624
Services [Member]
Revenues:
Total revenues	$ 471,218	$ 431,874	$ 1,317,798	$ 1,170,455
Costs and expenses:
Costs (exclusive of depreciation, depletion, amortization and accretion)	372,837	340,401	1,017,102	959,630
Depreciation, depletion, amortization and accretion	81,911	92,814	251,398	281,097
Rentals [Member]
Revenues:
Total revenues	101,850	74,155	273,136	206,578
Costs and expenses:
Costs (exclusive of depreciation, depletion, amortization and accretion)	31,552	27,878	100,557	82,437
Depreciation, depletion, amortization and accretion	$ 17,981	$ 15,937	$ 52,186	$ 50,054

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Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Consolidated Statement of Comprehensive Loss [Abstract]
Net loss	$ (21,816)	$ (59,049)	$ (107,930)	$ (214,514)
Change in cumulative translation adjustment, net of tax	(826)	3,629	(3,491)	11,375
Comprehensive loss	$ (22,642)	$ (55,420)	$ (111,421)	$ (203,139)

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Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net loss	$ (107,930)	$ (214,514)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, depletion, amortization and accretion	303,584	331,151
Deferred income taxes	(25,475)	(92,999)
Reduction in value of assets		9,953
Stock based compensation expense	23,303	29,780
Other reconciling items, net	(8,255)	(10,489)
Changes in operating assets and liabilities:
Accounts receivable	(95,806)	(116,989)
Inventory and other current assets	(16,879)	(8,510)
Accounts payable	18,367	24,821
Accrued expenses	(9,543)	7,182
Income taxes	1,318	100,969
Other, net	672	(12,439)
Net cash provided by operating activities	83,356	47,916
Cash flows from investing activities:
Payments for capital expenditures	(186,283)	(109,635)
Proceeds from sales of assets	29,595	15,647
Net cash used in investing activities	(156,688)	(93,988)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		500,000
Principal payments on long-term debt		(500,000)
Payment of debt issuance costs		(9,091)
Tax withholdings for vested restricted stock units	(5,189)	(8,327)
Other	1,239	1,538
Net cash used in financing activities	(3,950)	(15,880)
Effect of exchange rate changes on cash	(1,834)	3,294
Net decrease in cash, cash equivalents, and restricted cash	(79,116)	(58,658)
Cash, cash equivalents, and restricted cash at beginning of period	192,483	246,092
Cash, cash equivalents, and restricted cash at end of period	$ 113,367	$ 187,434

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Basis of Presentation

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 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 nine 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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Revenue

9 Months Ended

Sep. 30, 2018

Revenue [Abstract]

Revenue

(2)Revenue

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.

Disaggregation of revenue

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

	Three Months Ended September 30,				Nine Months Ended September 30,
		2018		2017		2018		2017
U.S. land
Drilling Products and Services	$	45,605	$	33,779	$	129,716	$	82,711
Onshore Completion and Workover Services		294,869		248,405		802,600		702,463
Production Services		47,858		40,123		148,259		96,620
Technical Solutions		8,453		9,118		23,144		26,124
Total U.S. land	$	396,785	$	331,425	$	1,103,719	$	907,918
Gulf of Mexico
Drilling Products and Services	$	26,065	$	23,234	$	70,315	$	68,985
Onshore Completion and Workover Services		-		-		-		-
Production Services		16,776		16,487		47,910		54,170
Technical Solutions		47,286		51,991		120,181		127,738
Total Gulf of Mexico	$	90,127	$	91,712	$	238,406	$	250,893
International
Drilling Products and Services	$	27,514	$	20,193	$	78,388	$	62,768
Onshore Completion and Workover Services		-		-		-		-
Production Services		41,236		40,723		112,422		103,754
Technical Solutions		17,406		21,976		57,999		51,700
Total International	$	86,156	$	82,892	$	248,809	$	218,222
Total Revenues	$	573,068	$	506,029	$	1,590,934	$	1,377,033

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

	Three Months Ended September 30,				Nine Months Ended September 30,
		2018		2017		2018		2017
Services
Drilling Products and Services	$	24,083	$	21,064	$	75,549	$	57,564
Onshore Completion and Workover Services		284,187		239,208		771,605		679,115
Production Services		97,551		93,422		285,843		239,279
Technical Solutions		65,397		78,180		184,801		194,497
Total services	$	471,218	$	431,874	$	1,317,798	$	1,170,455
Rentals
Drilling Products and Services	$	75,101	$	56,142	$	202,870	$	156,900
Onshore Completion and Workover Services		10,682		9,197		30,995		23,348
Production Services		8,319		3,911		22,748		15,265
Technical Solutions		7,748		4,905		16,523		11,065
Total rentals	$	101,850	$	74,155	$	273,136	$	206,578
Total Revenues	$	573,068	$	506,029	$	1,590,934	$	1,377,033

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Inventory

9 Months Ended

Sep. 30, 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):

	September 30, 2018		December 31, 2017
Finished goods	$	61,393	$	61,764
Raw materials		18,131		13,727
Work-in-process		8,332		6,174
Supplies and consumables		26,785		24,923
Total	$	114,641	$	106,588

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Notes Receivable

9 Months Ended

Sep. 30, 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 $2.9 million and $2.6 million for the nine months ended September 30, 2018 and 2017, respectively.

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Decommissioning Liabilities

9 Months Ended

Sep. 30, 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 $128.6  million and $130.4 million at September 30, 2018 and December 31, 2017, respectively.

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Debt

9 Months Ended

Sep. 30, 2018

Debt [Abstract]

Debt

(6)Debt

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

	September 30, 2018		December 31, 2017
	Long-term		Long-term
Senior unsecured notes due September 2024	$	500,000	$	500,000
Senior unsecured notes due December 2021		800,000		800,000
Total debt, gross		1,300,000		1,300,000
Unamortized debt issuance costs		(17,986)		(20,229)
Total debt, net	$	1,282,014	$	1,279,771

Credit Facility

The Company has an 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 September 30, 2018, the borrowing base was $261.0million and the Company had $47.2 million of letters of credit outstanding that reduced its borrowing availability under the revolving credit facility.  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 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

9 Months Ended

Sep. 30, 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 September 30, 2018
	Level 1		Level 2		Level 3		Total
Intangible and other long-term assets, net
Non-qualified deferred compensation assets	$	374	$	14,368	$	-	$	14,742
Accounts payable
Non-qualified deferred compensation liabilities	$	-	$	1,355	$	-	$	1,355
Other long-term liabilities
Non-qualified deferred compensation liabilities	$	-	$	21,672	$	-	$	21,672
	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 $1,326.3 million and $1,347.0million as of September 30, 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

9 Months Ended

Sep. 30, 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 control services, stimulation and sand control services and well plug and abandonment services. It also includes the 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 September 30, 2018
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	99,184	$	294,869	$	105,870	$	73,145	$	-	$	573,068
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		37,328		239,348		84,312		43,401		-		404,389
Depreciation, depletion, amortization
and accretion		27,830		47,299		17,085		6,329		1,349		99,892
General and administrative expenses		13,771		5,455		10,471		14,453		24,745		68,895
Income (loss) from operations		20,255		2,767		(5,998)		8,962		(26,094)		(108)
Interest income (expense), net		-		-		-		986		(25,938)		(24,952)
Other expense		-		-		-		-		(277)		(277)
Income (loss) from continuing operations
before income taxes	$	20,255	$	2,767	$	(5,998)	$	9,948	$	(52,309)	$	(25,337)

Three Months Ended September 30, 2017
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	77,206	$	248,405	$	97,333	$	83,085	$	-	$	506,029
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		31,444		210,231		78,035		48,569		-		368,279
Depreciation, depletion, amortization
and accretion		31,839		48,131		19,333		8,029		1,419		108,751
General and administrative expenses		12,758		10,922		12,735		13,492		24,465		74,372
Reduction in value of assets		-		1,838		-		8,115		-		9,953
Income (loss) from operations		1,165		(22,717)		(12,770)		4,880		(25,884)		(55,326)
Interest income (expense), net		-		-		-		926		(30,022)		(29,096)
Other expense		-		-		-		-		(970)		(970)
Income (loss) from continuing operations
before income taxes	$	1,165	$	(22,717)	$	(12,770)	$	5,806	$	(56,876)	$	(85,392)

Nine Months Ended September 30, 2018
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	278,419	$	802,600	$	308,591	$	201,324	$	-	$	1,590,934
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		108,997		630,205		255,377		123,080		-		1,117,659
Depreciation, depletion, amortization
and accretion		86,061		142,377		50,668		20,332		4,146		303,584
General and administrative expenses		40,138		29,783		29,760		41,836		73,094		214,611
Income/(loss) from operations		43,223		235		(27,214)		16,076		(77,240)		(44,920)
Interest income (expense), net		-		-		-		2,913		(77,646)		(74,733)
Other expense		-		-		-		-		(4,394)		(4,394)
Income/(loss) from continuing operations
before income taxes	$	43,223	$	235	$	(27,214)	$	18,989	$	(159,280)	$	(124,047)

Nine Months Ended September 30, 2017
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	214,464	$	702,463	$	254,544	$	205,562	$	-	$	1,377,033
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		93,504		610,941		210,192		127,430		-		1,042,067
Depreciation, depletion, amortization
and accretion		100,187		141,899		60,115		24,660		4,290		331,151
General and administrative expenses		38,463		33,997		35,902		40,888		77,323		226,573
Reduction in value of assets		-		1,838		-		8,115		-		9,953
Income (loss) from operations		(17,690)		(86,212)		(51,665)		4,469		(81,613)		(232,711)
Interest income (expense), net		-		-		-		2,627		(79,306)		(76,679)
Other expense		-		-		-		-		(2,477)		(2,477)
Income (loss) from continuing operations
before income taxes	$	(17,690)	$	(86,212)	$	(51,665)	$	7,096	$	(163,396)	$	(311,867)

Identifiable Assets
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
September 30, 2018	$	564,813	$	1,468,622	$	564,300	$	352,327	$	51,668	$	3,001,730
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 September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
United States	$	486,912	$	423,137	$	1,342,125	$	1,158,811
Other countries		86,156		82,892		248,809		218,222
Total	$	573,068	$	506,029	$	1,590,934	$	1,377,033
Long-Lived Assets
	September 30, 2018		December 31, 2017
United States	$	982,737	$	1,064,823
Other countries		215,812		252,121
Total	$	1,198,549	$	1,316,944

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Stock-Based Compensation Plans

9 Months Ended

Sep. 30, 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 $22.8million and $29.2 million for the nine months ended September 30, 2018 and 2017, respectively, which is reflected in general and administrative expenses.

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Income Taxes

9 Months Ended

Sep. 30, 2018

Income Taxes [Abstract]

Income Taxes

(10)  Income Taxes

The Company had $30.7 million of unrecorded tax benefits as of September 30, 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 nine months ended September 30, 2018.

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Earnings Per Share

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 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

9 Months Ended

Sep. 30, 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
September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	37,745	$	547	$	66,398	$	-	$	104,690
Accounts receivable, net		-		(235)		431,609		61,869		-		493,243
Intercompany accounts receivable		-		10,232		67,417		3,139		(80,788)		-
Other current assets		-		9,207		145,879		37,868		-		192,954
Total current assets		-		56,949		645,452		169,274		(80,788)		790,887
Property, plant and equipment, net		-		10,577		1,001,662		186,310		-		1,198,549
Goodwill		-		-		657,099		149,397		-		806,496
Notes receivable		-		-		63,009		-		-		63,009
Long-term intercompany accounts receivable		2,236,472		-		2,047,835		182,529		(4,466,836)		-
Equity investments of consolidated subsidiaries		(1,200,202)		4,477,064		6,122		-		(3,282,984)		-
Restricted cash		-		-		8,632		45		-		8,677
Intangible and other long-term assets, net		-		21,187		105,400		7,525		-		134,112
Total assets	$	1,036,270	$	4,565,777	$	4,535,211	$	695,080	$	(7,830,608)	$	3,001,730
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	-	$	8,089	$	106,867	$	17,210	$	-	$	132,166
Accrued expenses		255		110,937		89,405		29,923		-		230,520
Income taxes payable		-		555		-		1,564		-		2,119
Intercompany accounts payable		-		724		6,095		73,969		(80,788)		-
Current portion of decommissioning liabilities		-		-		20,670		3,512		-		24,182
Total current liabilities		255		120,305		223,037		126,178		(80,788)		388,987
Deferred income taxes		-		(155,505)		185,496		3,473		-		33,464
Decommissioning liabilities		-		-		104,416		-		-		104,416
Long-term debt, net		-		1,282,014		-		-		-		1,282,014
Long-term intercompany accounts payable		-		4,466,836		-		-		(4,466,836)		-
Other long-term liabilities		-		52,329		78,324		26,181		-		156,834
Total stockholders' equity (deficit)		1,036,015		(1,200,202)		3,943,938		539,248		(3,282,984)		1,036,015
Total liabilities and stockholders' equity	$	1,036,270	$	4,565,777	$	4,535,211	$	695,080	$	(7,830,608)	$	3,001,730

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 September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	511,510		66,428		(4,870)	$	573,068
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(793)		366,568		43,484		(4,870)		404,389
Depreciation, depletion, amortization and
accretion		-		965		87,973		10,954		-		99,892
General and administrative expenses		-		23,959		34,726		10,210		-		68,895
Income (loss) from operations		-		(24,131)		22,243		1,780		-		(108)
Other income (expense):
Interest expense, net		-		(26,024)		993		79		-		(24,952)
Other income (expense)		-		(356)		264		(185)		-		(277)
Equity in earnings (losses) of consolidated subsidiaries		(21,816)		19,182		(53)		-		2,687		-
Income (loss) from operations before income taxes		(21,816)		(31,329)		23,447		1,674		2,687		(25,337)
Income taxes		-		(9,513)		5,260		732		-		(3,521)
Net income (loss)	$	(21,816)	$	(21,816)	$	18,187	$	942	$	2,687	$	(21,816)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Three Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(21,816)	$	(21,816)	$	18,187	$	942	$	2,687	$	(21,816)
Change in cumulative translation adjustment, net of tax		(826)		(826)		-		(826)		1,652		(826)
Comprehensive income (loss)	$	(22,642)	$	(22,642)	$	18,187	$	116	$	4,339	$	(22,642)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended September 30, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	449,267	$	60,311	$	(3,549)	$	506,029
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(2,505)		329,074		45,259		(3,549)		368,279
Depreciation, depletion, amortization and
accretion		-		1,033		94,829		12,889		-		108,751
General and administrative expenses		-		23,960		38,247		12,165		-		74,372
Reduction in value of assets		-		-		1,835		8,118		-		9,953
Loss from operations		-		(22,488)		(14,718)		(18,120)		-		(55,326)
Other income (expense):
Interest expense, net		-		(30,216)		969		151		-		(29,096)
Other income (expense)		-		(282)		199		(887)		-		(970)
Equity in losses of consolidated subsidiaries		(59,049)		(25,096)		(250)		-		84,395		-
Loss from continuing operations before income taxes		(59,049)		(78,082)		(13,800)		(18,856)		84,395		(85,392)
Income taxes		-		(19,033)		(2,750)		(6,420)		-		(28,203)
Net loss from continuing operations		(59,049)		(59,049)		(11,050)		(12,436)		84,395		(57,189)
Loss from discontinued operations, net of income tax		-		-		-		(1,860)		-		(1,860)
Net loss	$	(59,049)	$	(59,049)	$	(11,050)	$	(14,296)	$	84,395	$	(59,049)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Three Months Ended September 30, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net loss	$	(59,049)	$	(59,049)	$	(11,050)	$	(14,296)	$	84,395	$	(59,049)
Change in cumulative translation adjustment, net of tax		3,629		3,629		-		3,629		(7,258)		3,629
Comprehensive loss	$	(55,420)	$	(55,420)	$	(11,050)	$	(10,667)	$	77,137	$	(55,420)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Nine Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	1,420,368	$	192,976	$	(22,410)	$	1,590,934
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(6,382)		1,011,801		134,650		(22,410)		1,117,659
Depreciation, depletion, amortization and
accretion		-		2,974		266,188		34,422		-		303,584
General and administrative expenses		-		70,721		109,083		34,807		-		214,611
Income (loss) from operations		-		(67,313)		33,296		(10,903)		-		(44,920)
Other income (expense):
Interest expense, net		-		(77,778)		2,940		105		-		(74,733)
Other income (expense)		-		(608)		802		(4,588)		-		(4,394)
Equity in earnings (losses) of consolidated subsidiaries		(107,930)		13,073		(421)		-		95,278		-
Income (loss) from continuing operations before income taxes		(107,930)		(132,626)		36,617		(15,386)		95,278		(124,047)
Income taxes		-		(24,696)		7,185		665		-		(16,846)
Net income (loss) from continuing operations		(107,930)		(107,930)		29,432		(16,051)		95,278		(107,201)
Loss from discontinued operations, net of income tax		-		-		-		(729)		-		(729)
Net income (loss)	$	(107,930)	$	(107,930)	$	29,432	$	(16,780)	$	95,278	$	(107,930)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Nine Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(107,930)	$	(107,930)	$	29,432	$	(16,780)	$	95,278	$	(107,930)
Change in cumulative translation adjustment, net of tax		(3,491)		(3,491)		-		(3,491)		6,982		(3,491)
Comprehensive income (loss)	$	(111,421)	$	(111,421)	$	29,432	$	(20,271)	$	102,260	$	(111,421)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Nine Months Ended September 30, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	1,219,455	$	168,810	$	(11,232)	$	1,377,033
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(245)		925,043		128,501		(11,232)		1,042,067
Depreciation, depletion, amortization and
accretion		-		3,114		289,428		38,609		-		331,151
General and administrative expenses		-		75,843		113,123		37,607		-		226,573
Reduction in value of assets		-		-		1,835		8,118		-		9,953
Loss from operations		-		(78,712)		(109,974)		(44,025)		-		(232,711)
Other income (expense):
Interest expense, net		-		(79,827)		2,728		420		-		(76,679)
Other income (expense)		-		(1,004)		646		(2,119)		-		(2,477)
Equity in losses of consolidated subsidiaries		(214,514)		(104,203)		(458)		-		319,175		-
Loss from continuing operations before income taxes		(214,514)		(263,746)		(107,058)		(45,724)		319,175		(311,867)
Income taxes		-		(49,232)		(46,996)		(6,750)		-		(102,978)
Net loss from continuing operations		(214,514)		(214,514)		(60,062)		(38,974)		319,175		(208,889)
Loss from discontinued operations, net of income tax		-		-		-		(5,625)		-		(5,625)
Net loss	$	(214,514)	$	(214,514)	$	(60,062)	$	(44,599)	$	319,175	$	(214,514)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Nine Months Ended September 30, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net loss	$	(214,514)	$	(214,514)	$	(60,062)	$	(44,599)	$	319,175	$	(214,514)
Change in cumulative translation adjustment, net of tax		11,375		11,375		-		11,375		(22,750)		11,375
Comprehensive loss	$	(203,139)	$	(203,139)	$	(60,062)	$	(33,224)	$	296,425	$	(203,139)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Nine Months Ended September 30, 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	$	18,290	$	(118,313)	$	174,198	$	23,450	$	(14,269)	$	83,356
Cash flows from investing activities:
Payments for capital expenditures		-		(1,509)		(175,524)		(9,250)		-		(186,283)
Proceeds from sales of assets		-		-		16,226		13,369		-		29,595
Net cash used in investing activities		-		(1,509)		(159,298)		4,119		-		(156,688)
Cash flows from financing activities:
Intercompany dividends		-		-		-		(14,269)		14,269		-
Changes in notes with affiliated companies, net		(14,775)		31,469		(26,644)		9,950		-		-
Other		(3,515)		(435)		-		-		-		(3,950)
Net cash provided by (used in) financing activities		(18,290)		31,034		(26,644)		(4,319)		14,269		(3,950)
Effect of exchange rate changes on cash		-		-		-		(1,834)		-		(1,834)
Net decrease in cash, cash equivalents, and restricted cash		-		(88,788)		(11,744)		21,416		-		(79,116)
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	$	-	$	37,745	$	9,179	$	66,443	$	-	$	113,367

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Nine Months Ended September 30, 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	$	20,316	$	(1,071)	$	46,999	$	(18,328)	$	47,916
Cash flows from investing activities:
Payments for capital expenditures		-		(1,041)		(94,884)		(13,710)		(109,635)
Other		-		-		15,647		-		15,647
Net cash used in investing activities		-		(1,041)		(79,237)		(13,710)		(93,988)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		-		500,000		-		-		500,000
Principal payments on long-term debt		-		(500,000)		-		-		(500,000)
Payment of debt issuance costs		-		(9,091)		-		-		(9,091)
Changes in notes with affiliated companies, net		(13,527)		6,037		1,336		6,154		-
Other		(6,789)		-		-		-		(6,789)
Net cash used in financing activities		(20,316)		(3,054)		1,336		6,154		(15,880)
Effect of exchange rate changes on cash		-		-		-		3,294		3,294
Net decrease in cash, cash equivalents, and restricted cash		-		(5,166)		(30,902)		(22,590)		(58,658)
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	$	-	$	122,279	$	20,887	$	44,268	$	187,434

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Discontinued Operations

9 Months Ended

Sep. 30, 2018

Discontinued Operations [Abstract]

Discontinued Operations

(13)  Discontinued Operations

During the nine months ended September 30, 2018, the remaining marine vessels and equipment of the Company’s former subsea construction business were disposed of, resulting in $0.8 million loss on sale.  Loss from discontinued operations for the three and nine months ended September 30, 2018 was $0 and $0.7 million, respectively.  Loss from discontinued operations for the three and nine months ended September 30, 2017 was $1.9 million and $5.6 million, respectively.

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New Accounting Pronouncements

9 Months Ended

Sep. 30, 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 nine months ended September 30, 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 nine months ended September 30, 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.  The adoption of this ASU did not have a material impact on the Company’s 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 and disclose key information about leasing arrangements.  The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months.

The Company expects to adopt the new standard on January 1, 2019 and use the effective date as the date of initial application.  Therefore, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019.

The new standard provides a number of optional practical expedients in transition.  The Company expects to elect the “package of practical expedients,” that would permit the Company to not reassess under the new standard prior conclusions reached about lease identification, lease classification and initial direct costs.

The Company expects that this standard will have a material effect on its financial statements.  While, the Company continues to assess all of the effects of the adoption of this ASU, the Company believes the most significant effects relate to (i) the recognition of new ROU assets and lease liabilities on the condensed consolidated balance sheet for the Company’s operating leases and (ii) providing significant new disclosures about the Company’s leasing activities.

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Revenue (Tables)

9 Months Ended

Sep. 30, 2018

Revenue [Abstract]

Disaggregation Of Revenues

	Three Months Ended September 30,				Nine Months Ended September 30,
		2018		2017		2018		2017
U.S. land
Drilling Products and Services	$	45,605	$	33,779	$	129,716	$	82,711
Onshore Completion and Workover Services		294,869		248,405		802,600		702,463
Production Services		47,858		40,123		148,259		96,620
Technical Solutions		8,453		9,118		23,144		26,124
Total U.S. land	$	396,785	$	331,425	$	1,103,719	$	907,918
Gulf of Mexico
Drilling Products and Services	$	26,065	$	23,234	$	70,315	$	68,985
Onshore Completion and Workover Services		-		-		-		-
Production Services		16,776		16,487		47,910		54,170
Technical Solutions		47,286		51,991		120,181		127,738
Total Gulf of Mexico	$	90,127	$	91,712	$	238,406	$	250,893
International
Drilling Products and Services	$	27,514	$	20,193	$	78,388	$	62,768
Onshore Completion and Workover Services		-		-		-		-
Production Services		41,236		40,723		112,422		103,754
Technical Solutions		17,406		21,976		57,999		51,700
Total International	$	86,156	$	82,892	$	248,809	$	218,222
Total Revenues	$	573,068	$	506,029	$	1,590,934	$	1,377,033

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

	Three Months Ended September 30,				Nine Months Ended September 30,
		2018		2017		2018		2017
Services
Drilling Products and Services	$	24,083	$	21,064	$	75,549	$	57,564
Onshore Completion and Workover Services		284,187		239,208		771,605		679,115
Production Services		97,551		93,422		285,843		239,279
Technical Solutions		65,397		78,180		184,801		194,497
Total services	$	471,218	$	431,874	$	1,317,798	$	1,170,455
Rentals
Drilling Products and Services	$	75,101	$	56,142	$	202,870	$	156,900
Onshore Completion and Workover Services		10,682		9,197		30,995		23,348
Production Services		8,319		3,911		22,748		15,265
Technical Solutions		7,748		4,905		16,523		11,065
Total rentals	$	101,850	$	74,155	$	273,136	$	206,578
Total Revenues	$	573,068	$	506,029	$	1,590,934	$	1,377,033

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Inventory (Tables)

9 Months Ended

Sep. 30, 2018

Inventory [Abstract]

Components Of Inventory

	September 30, 2018		December 31, 2017
Finished goods	$	61,393	$	61,764
Raw materials		18,131		13,727
Work-in-process		8,332		6,174
Supplies and consumables		26,785		24,923
Total	$	114,641	$	106,588

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Debt (Tables)

9 Months Ended

Sep. 30, 2018

Debt [Abstract]

Schedule Of Long-Term Debt

	September 30, 2018		December 31, 2017
	Long-term		Long-term
Senior unsecured notes due September 2024	$	500,000	$	500,000
Senior unsecured notes due December 2021		800,000		800,000
Total debt, gross		1,300,000		1,300,000
Unamortized debt issuance costs		(17,986)		(20,229)
Total debt, net	$	1,282,014	$	1,279,771

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Measurements [Abstract]

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

	Fair Value at September 30, 2018
	Level 1		Level 2		Level 3		Total
Intangible and other long-term assets, net
Non-qualified deferred compensation assets	$	374	$	14,368	$	-	$	14,742
Accounts payable
Non-qualified deferred compensation liabilities	$	-	$	1,355	$	-	$	1,355
Other long-term liabilities
Non-qualified deferred compensation liabilities	$	-	$	21,672	$	-	$	21,672
	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)

9 Months Ended

Sep. 30, 2018

Segment Information [Abstract]

Schedule Of Segment Reporting Information By Segment

Three Months Ended September 30, 2018
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	99,184	$	294,869	$	105,870	$	73,145	$	-	$	573,068
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		37,328		239,348		84,312		43,401		-		404,389
Depreciation, depletion, amortization
and accretion		27,830		47,299		17,085		6,329		1,349		99,892
General and administrative expenses		13,771		5,455		10,471		14,453		24,745		68,895
Income (loss) from operations		20,255		2,767		(5,998)		8,962		(26,094)		(108)
Interest income (expense), net		-		-		-		986		(25,938)		(24,952)
Other expense		-		-		-		-		(277)		(277)
Income (loss) from continuing operations
before income taxes	$	20,255	$	2,767	$	(5,998)	$	9,948	$	(52,309)	$	(25,337)

Three Months Ended September 30, 2017
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	77,206	$	248,405	$	97,333	$	83,085	$	-	$	506,029
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		31,444		210,231		78,035		48,569		-		368,279
Depreciation, depletion, amortization
and accretion		31,839		48,131		19,333		8,029		1,419		108,751
General and administrative expenses		12,758		10,922		12,735		13,492		24,465		74,372
Reduction in value of assets		-		1,838		-		8,115		-		9,953
Income (loss) from operations		1,165		(22,717)		(12,770)		4,880		(25,884)		(55,326)
Interest income (expense), net		-		-		-		926		(30,022)		(29,096)
Other expense		-		-		-		-		(970)		(970)
Income (loss) from continuing operations
before income taxes	$	1,165	$	(22,717)	$	(12,770)	$	5,806	$	(56,876)	$	(85,392)

Nine Months Ended September 30, 2018
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	278,419	$	802,600	$	308,591	$	201,324	$	-	$	1,590,934
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		108,997		630,205		255,377		123,080		-		1,117,659
Depreciation, depletion, amortization
and accretion		86,061		142,377		50,668		20,332		4,146		303,584
General and administrative expenses		40,138		29,783		29,760		41,836		73,094		214,611
Income/(loss) from operations		43,223		235		(27,214)		16,076		(77,240)		(44,920)
Interest income (expense), net		-		-		-		2,913		(77,646)		(74,733)
Other expense		-		-		-		-		(4,394)		(4,394)
Income/(loss) from continuing operations
before income taxes	$	43,223	$	235	$	(27,214)	$	18,989	$	(159,280)	$	(124,047)

Nine Months Ended September 30, 2017
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
Revenues	$	214,464	$	702,463	$	254,544	$	205,562	$	-	$	1,377,033
Cost of services and rentals (exclusive of
depreciation, depletion, amortization and accretion)		93,504		610,941		210,192		127,430		-		1,042,067
Depreciation, depletion, amortization
and accretion		100,187		141,899		60,115		24,660		4,290		331,151
General and administrative expenses		38,463		33,997		35,902		40,888		77,323		226,573
Reduction in value of assets		-		1,838		-		8,115		-		9,953
Income (loss) from operations		(17,690)		(86,212)		(51,665)		4,469		(81,613)		(232,711)
Interest income (expense), net		-		-		-		2,627		(79,306)		(76,679)
Other expense		-		-		-		-		(2,477)		(2,477)
Income (loss) from continuing operations
before income taxes	$	(17,690)	$	(86,212)	$	(51,665)	$	7,096	$	(163,396)	$	(311,867)

Identifiable Assets

Identifiable Assets
			Onshore
	Drilling		Completion
	Products and		and Workover		Production		Technical		Corporate and		Consolidated
	Services		Services		Services		Solutions		Other		Total
September 30, 2018	$	564,813	$	1,468,622	$	564,300	$	352,327	$	51,668	$	3,001,730
December 31, 2017	$	662,968	$	1,501,214	$	512,256	$	377,549	$	56,238	$	3,110,225

Revenue By Geographic Area

Revenues
	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
United States	$	486,912	$	423,137	$	1,342,125	$	1,158,811
Other countries		86,156		82,892		248,809		218,222
Total	$	573,068	$	506,029	$	1,590,934	$	1,377,033
Long-Lived Assets
	September 30, 2018		December 31, 2017
United States	$	982,737	$	1,064,823
Other countries		215,812		252,121
Total	$	1,198,549	$	1,316,944

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Supplemental Guarantor Information (Tables)

9 Months Ended

Sep. 30, 2018

Supplemental Guarantor Information [Abstract]

Condensed Consolidating Balance Sheets

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	-	$	37,745	$	547	$	66,398	$	-	$	104,690
Accounts receivable, net		-		(235)		431,609		61,869		-		493,243
Intercompany accounts receivable		-		10,232		67,417		3,139		(80,788)		-
Other current assets		-		9,207		145,879		37,868		-		192,954
Total current assets		-		56,949		645,452		169,274		(80,788)		790,887
Property, plant and equipment, net		-		10,577		1,001,662		186,310		-		1,198,549
Goodwill		-		-		657,099		149,397		-		806,496
Notes receivable		-		-		63,009		-		-		63,009
Long-term intercompany accounts receivable		2,236,472		-		2,047,835		182,529		(4,466,836)		-
Equity investments of consolidated subsidiaries		(1,200,202)		4,477,064		6,122		-		(3,282,984)		-
Restricted cash		-		-		8,632		45		-		8,677
Intangible and other long-term assets, net		-		21,187		105,400		7,525		-		134,112
Total assets	$	1,036,270	$	4,565,777	$	4,535,211	$	695,080	$	(7,830,608)	$	3,001,730
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	-	$	8,089	$	106,867	$	17,210	$	-	$	132,166
Accrued expenses		255		110,937		89,405		29,923		-		230,520
Income taxes payable		-		555		-		1,564		-		2,119
Intercompany accounts payable		-		724		6,095		73,969		(80,788)		-
Current portion of decommissioning liabilities		-		-		20,670		3,512		-		24,182
Total current liabilities		255		120,305		223,037		126,178		(80,788)		388,987
Deferred income taxes		-		(155,505)		185,496		3,473		-		33,464
Decommissioning liabilities		-		-		104,416		-		-		104,416
Long-term debt, net		-		1,282,014		-		-		-		1,282,014
Long-term intercompany accounts payable		-		4,466,836		-		-		(4,466,836)		-
Other long-term liabilities		-		52,329		78,324		26,181		-		156,834
Total stockholders' equity (deficit)		1,036,015		(1,200,202)		3,943,938		539,248		(3,282,984)		1,036,015
Total liabilities and stockholders' equity	$	1,036,270	$	4,565,777	$	4,535,211	$	695,080	$	(7,830,608)	$	3,001,730

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

Condensed Consolidating Statements of Operations And Comprehensive Income

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	511,510		66,428		(4,870)	$	573,068
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(793)		366,568		43,484		(4,870)		404,389
Depreciation, depletion, amortization and
accretion		-		965		87,973		10,954		-		99,892
General and administrative expenses		-		23,959		34,726		10,210		-		68,895
Income (loss) from operations		-		(24,131)		22,243		1,780		-		(108)
Other income (expense):
Interest expense, net		-		(26,024)		993		79		-		(24,952)
Other income (expense)		-		(356)		264		(185)		-		(277)
Equity in earnings (losses) of consolidated subsidiaries		(21,816)		19,182		(53)		-		2,687		-
Income (loss) from operations before income taxes		(21,816)		(31,329)		23,447		1,674		2,687		(25,337)
Income taxes		-		(9,513)		5,260		732		-		(3,521)
Net income (loss)	$	(21,816)	$	(21,816)	$	18,187	$	942	$	2,687	$	(21,816)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Three Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(21,816)	$	(21,816)	$	18,187	$	942	$	2,687	$	(21,816)
Change in cumulative translation adjustment, net of tax		(826)		(826)		-		(826)		1,652		(826)
Comprehensive income (loss)	$	(22,642)	$	(22,642)	$	18,187	$	116	$	4,339	$	(22,642)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended September 30, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	449,267	$	60,311	$	(3,549)	$	506,029
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(2,505)		329,074		45,259		(3,549)		368,279
Depreciation, depletion, amortization and
accretion		-		1,033		94,829		12,889		-		108,751
General and administrative expenses		-		23,960		38,247		12,165		-		74,372
Reduction in value of assets		-		-		1,835		8,118		-		9,953
Loss from operations		-		(22,488)		(14,718)		(18,120)		-		(55,326)
Other income (expense):
Interest expense, net		-		(30,216)		969		151		-		(29,096)
Other income (expense)		-		(282)		199		(887)		-		(970)
Equity in losses of consolidated subsidiaries		(59,049)		(25,096)		(250)		-		84,395		-
Loss from continuing operations before income taxes		(59,049)		(78,082)		(13,800)		(18,856)		84,395		(85,392)
Income taxes		-		(19,033)		(2,750)		(6,420)		-		(28,203)
Net loss from continuing operations		(59,049)		(59,049)		(11,050)		(12,436)		84,395		(57,189)
Loss from discontinued operations, net of income tax		-		-		-		(1,860)		-		(1,860)
Net loss	$	(59,049)	$	(59,049)	$	(11,050)	$	(14,296)	$	84,395	$	(59,049)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Three Months Ended September 30, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net loss	$	(59,049)	$	(59,049)	$	(11,050)	$	(14,296)	$	84,395	$	(59,049)
Change in cumulative translation adjustment, net of tax		3,629		3,629		-		3,629		(7,258)		3,629
Comprehensive loss	$	(55,420)	$	(55,420)	$	(11,050)	$	(10,667)	$	77,137	$	(55,420)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Nine Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	1,420,368	$	192,976	$	(22,410)	$	1,590,934
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(6,382)		1,011,801		134,650		(22,410)		1,117,659
Depreciation, depletion, amortization and
accretion		-		2,974		266,188		34,422		-		303,584
General and administrative expenses		-		70,721		109,083		34,807		-		214,611
Income (loss) from operations		-		(67,313)		33,296		(10,903)		-		(44,920)
Other income (expense):
Interest expense, net		-		(77,778)		2,940		105		-		(74,733)
Other income (expense)		-		(608)		802		(4,588)		-		(4,394)
Equity in earnings (losses) of consolidated subsidiaries		(107,930)		13,073		(421)		-		95,278		-
Income (loss) from continuing operations before income taxes		(107,930)		(132,626)		36,617		(15,386)		95,278		(124,047)
Income taxes		-		(24,696)		7,185		665		-		(16,846)
Net income (loss) from continuing operations		(107,930)		(107,930)		29,432		(16,051)		95,278		(107,201)
Loss from discontinued operations, net of income tax		-		-		-		(729)		-		(729)
Net income (loss)	$	(107,930)	$	(107,930)	$	29,432	$	(16,780)	$	95,278	$	(107,930)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Nine Months Ended September 30, 2018
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net income (loss)	$	(107,930)	$	(107,930)	$	29,432	$	(16,780)	$	95,278	$	(107,930)
Change in cumulative translation adjustment, net of tax		(3,491)		(3,491)		-		(3,491)		6,982		(3,491)
Comprehensive income (loss)	$	(111,421)	$	(111,421)	$	29,432	$	(20,271)	$	102,260	$	(111,421)

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Nine Months Ended September 30, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Revenues	$	-	$	-	$	1,219,455	$	168,810	$	(11,232)	$	1,377,033
Cost of services and rentals (exclusive of depreciation,
depletion, amortization and accretion)		-		(245)		925,043		128,501		(11,232)		1,042,067
Depreciation, depletion, amortization and
accretion		-		3,114		289,428		38,609		-		331,151
General and administrative expenses		-		75,843		113,123		37,607		-		226,573
Reduction in value of assets		-		-		1,835		8,118		-		9,953
Loss from operations		-		(78,712)		(109,974)		(44,025)		-		(232,711)
Other income (expense):
Interest expense, net		-		(79,827)		2,728		420		-		(76,679)
Other income (expense)		-		(1,004)		646		(2,119)		-		(2,477)
Equity in losses of consolidated subsidiaries		(214,514)		(104,203)		(458)		-		319,175		-
Loss from continuing operations before income taxes		(214,514)		(263,746)		(107,058)		(45,724)		319,175		(311,867)
Income taxes		-		(49,232)		(46,996)		(6,750)		-		(102,978)
Net loss from continuing operations		(214,514)		(214,514)		(60,062)		(38,974)		319,175		(208,889)
Loss from discontinued operations, net of income tax		-		-		-		(5,625)		-		(5,625)
Net loss	$	(214,514)	$	(214,514)	$	(60,062)	$	(44,599)	$	319,175	$	(214,514)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Consolidating Statements of Comprehensive Loss
Nine Months Ended September 30, 2017
(in thousands)
(unaudited)
	Parent		Issuer		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations		Consolidated
Net loss	$	(214,514)	$	(214,514)	$	(60,062)	$	(44,599)	$	319,175	$	(214,514)
Change in cumulative translation adjustment, net of tax		11,375		11,375		-		11,375		(22,750)		11,375
Comprehensive loss	$	(203,139)	$	(203,139)	$	(60,062)	$	(33,224)	$	296,425	$	(203,139)

Condensed Consolidating Statements Of Cash Flows

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Nine Months Ended September 30, 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	$	18,290	$	(118,313)	$	174,198	$	23,450	$	(14,269)	$	83,356
Cash flows from investing activities:
Payments for capital expenditures		-		(1,509)		(175,524)		(9,250)		-		(186,283)
Proceeds from sales of assets		-		-		16,226		13,369		-		29,595
Net cash used in investing activities		-		(1,509)		(159,298)		4,119		-		(156,688)
Cash flows from financing activities:
Intercompany dividends		-		-		-		(14,269)		14,269		-
Changes in notes with affiliated companies, net		(14,775)		31,469		(26,644)		9,950		-		-
Other		(3,515)		(435)		-		-		-		(3,950)
Net cash provided by (used in) financing activities		(18,290)		31,034		(26,644)		(4,319)		14,269		(3,950)
Effect of exchange rate changes on cash		-		-		-		(1,834)		-		(1,834)
Net decrease in cash, cash equivalents, and restricted cash		-		(88,788)		(11,744)		21,416		-		(79,116)
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	$	-	$	37,745	$	9,179	$	66,443	$	-	$	113,367

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Nine Months Ended September 30, 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	$	20,316	$	(1,071)	$	46,999	$	(18,328)	$	47,916
Cash flows from investing activities:
Payments for capital expenditures		-		(1,041)		(94,884)		(13,710)		(109,635)
Other		-		-		15,647		-		15,647
Net cash used in investing activities		-		(1,041)		(79,237)		(13,710)		(93,988)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		-		500,000		-		-		500,000
Principal payments on long-term debt		-		(500,000)		-		-		(500,000)
Payment of debt issuance costs		-		(9,091)		-		-		(9,091)
Changes in notes with affiliated companies, net		(13,527)		6,037		1,336		6,154		-
Other		(6,789)		-		-		-		(6,789)
Net cash used in financing activities		(20,316)		(3,054)		1,336		6,154		(15,880)
Effect of exchange rate changes on cash		-		-		-		3,294		3,294
Net decrease in cash, cash equivalents, and restricted cash		-		(5,166)		(30,902)		(22,590)		(58,658)
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	$	-	$	122,279	$	20,887	$	44,268	$	187,434

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Revenue (Disaggregation Of Revenues, By Geography) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 573,068	$ 506,029	$ 1,590,934	$ 1,377,033
Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	99,184	77,206	278,419	214,464
Onshore Completion and Workover Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	294,869	248,405	802,600	702,463
Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	105,870	97,333	308,591	254,544
Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	73,145	83,085	201,324	205,562
U.S. Land [Member]
Disaggregation of Revenue [Line Items]
Total revenues	396,785	331,425	1,103,719	907,918
U.S. Land [Member] | Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	45,605	33,779	129,716	82,711
U.S. Land [Member] | Onshore Completion and Workover Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	294,869	248,405	802,600	702,463
U.S. Land [Member] | Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	47,858	40,123	148,259	96,620
U.S. Land [Member] | Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	8,453	9,118	23,144	26,124
Gulf Of Mexico [Member]
Disaggregation of Revenue [Line Items]
Total revenues	90,127	91,712	238,406	250,893
Gulf Of Mexico [Member] | Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	26,065	23,234	70,315	68,985
Gulf Of Mexico [Member] | Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	16,776	16,487	47,910	54,170
Gulf Of Mexico [Member] | Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	47,286	51,991	120,181	127,738
International [Member]
Disaggregation of Revenue [Line Items]
Total revenues	86,156	82,892	248,809	218,222
International [Member] | Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	27,514	20,193	78,388	62,768
International [Member] | Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	41,236	40,723	112,422	103,754
International [Member] | Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	$ 17,406	$ 21,976	$ 57,999	$ 51,700

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Revenue (Disaggregation Of Revenues, By Type) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 573,068	$ 506,029	$ 1,590,934	$ 1,377,033
Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	99,184	77,206	278,419	214,464
Onshore Completion and Workover Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	294,869	248,405	802,600	702,463
Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	105,870	97,333	308,591	254,544
Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	73,145	83,085	201,324	205,562
Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	471,218	431,874	1,317,798	1,170,455
Services [Member] | Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	24,083	21,064	75,549	57,564
Services [Member] | Onshore Completion and Workover Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	284,187	239,208	771,605	679,115
Services [Member] | Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	97,551	93,422	285,843	239,279
Services [Member] | Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	65,397	78,180	184,801	194,497
Rentals [Member]
Disaggregation of Revenue [Line Items]
Total revenues	101,850	74,155	273,136	206,578
Rentals [Member] | Drilling Products and Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	75,101	56,142	202,870	156,900
Rentals [Member] | Onshore Completion and Workover Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	10,682	9,197	30,995	23,348
Rentals [Member] | Production Services [Member]
Disaggregation of Revenue [Line Items]
Total revenues	8,319	3,911	22,748	15,265
Rentals [Member] | Technical Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenues	$ 7,748	$ 4,905	$ 16,523	$ 11,065

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Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Inventory [Abstract]
Finished goods	$ 61,393	$ 61,764
Raw materials	18,131	13,727
Work-in-process	8,332	6,174
Supplies and consumables	26,785	24,923
Total	$ 114,641	$ 106,588

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Notes Receivable (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 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	$ 2.9	$ 2.6

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Decommissioning Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Summary of the activity for the Company's decommissioning liabilities
Decommissioning liabilities	$ 128.6	$ 130.4

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Debt (Narrative) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2018
Debt Instrument [Line Items]
Current borrowing capacity		$ 261,000,000
Letters of Credit Outstanding, Amount		47,200,000
Debt repayment	$ 500,000,000
Debt issuance costs	$ 9,091,000
Senior Unsecured Notes Due 2021 [Member]
Debt Instrument [Line Items]
Debt issuance		$ 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%

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Debt (Schedule Of Long Term Debt) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total debt, gross	$ 1,300,000	$ 1,300,000
Unamortized debt issuance costs	(17,986)	(20,229)
Total debt, net	1,282,014	1,279,771
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

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Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Fair Value Measurements [Abstract]
Fair value of long term debt	$ 1,326.3	$ 1,347.0

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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	Sep. 30, 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	$ 14,742	$ 14,187
Non Qualified Deferred Compensation Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accounts payable	1,355	1,253
Other long-term liabilities	21,672	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	374	370
Level 1 [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
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	14,368	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	1,355	1,253
Other long-term liabilities	21,672	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

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Segment Information (Schedule Of Segment Reporting Information By Segment And Identifiable Assets) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total revenues	$ 573,068	$ 506,029	$ 1,590,934	$ 1,377,033
Cost of services and rentals (exclusive of depreciation, depletion, amortization, and accretion)	404,389	368,279	1,117,659	1,042,067
Depreciation, depletion, amortization and accretion	99,892	108,751	303,584	331,151
General and administrative expenses	68,895	74,372	214,611	226,573
Reduction in value of assets		9,953		9,953
Loss from operations	(108)	(55,326)	(44,920)	(232,711)
Interest income (expense), net	(24,952)	(29,096)	(74,733)	(76,679)
Other expense	(277)	(970)	(4,394)	(2,477)
Loss from continuing operations before income taxes	(25,337)	(85,392)	(124,047)	(311,867)
Identifiable Assets	3,001,730		3,001,730		$ 3,110,225
Drilling Products and Services [Member]
Segment Reporting Information [Line Items]
Total revenues	99,184	77,206	278,419	214,464
Cost of services and rentals (exclusive of depreciation, depletion, amortization, and accretion)	37,328	31,444	108,997	93,504
Depreciation, depletion, amortization and accretion	27,830	31,839	86,061	100,187
General and administrative expenses	13,771	12,758	40,138	38,463
Loss from operations	20,255	1,165	43,223	(17,690)
Loss from continuing operations before income taxes	20,255	1,165	43,223	(17,690)
Identifiable Assets	564,813		564,813		662,968
Onshore Completion and Workover Services [Member]
Segment Reporting Information [Line Items]
Total revenues	294,869	248,405	802,600	702,463
Cost of services and rentals (exclusive of depreciation, depletion, amortization, and accretion)	239,348	210,231	630,205	610,941
Depreciation, depletion, amortization and accretion	47,299	48,131	142,377	141,899
General and administrative expenses	5,455	10,922	29,783	33,997
Reduction in value of assets		1,838		1,838
Loss from operations	2,767	(22,717)	235	(86,212)
Loss from continuing operations before income taxes	2,767	(22,717)	235	(86,212)
Identifiable Assets	1,468,622		1,468,622		1,501,214
Production Services [Member]
Segment Reporting Information [Line Items]
Total revenues	105,870	97,333	308,591	254,544
Cost of services and rentals (exclusive of depreciation, depletion, amortization, and accretion)	84,312	78,035	255,377	210,192
Depreciation, depletion, amortization and accretion	17,085	19,333	50,668	60,115
General and administrative expenses	10,471	12,735	29,760	35,902
Loss from operations	(5,998)	(12,770)	(27,214)	(51,665)
Loss from continuing operations before income taxes	(5,998)	(12,770)	(27,214)	(51,665)
Identifiable Assets	564,300		564,300		512,256
Technical Solutions [Member]
Segment Reporting Information [Line Items]
Total revenues	73,145	83,085	201,324	205,562
Cost of services and rentals (exclusive of depreciation, depletion, amortization, and accretion)	43,401	48,569	123,080	127,430
Depreciation, depletion, amortization and accretion	6,329	8,029	20,332	24,660
General and administrative expenses	14,453	13,492	41,836	40,888
Reduction in value of assets		8,115		8,115
Loss from operations	8,962	4,880	16,076	4,469
Interest income (expense), net	986	926	2,913	2,627
Loss from continuing operations before income taxes	9,948	5,806	18,989	7,096
Identifiable Assets	352,327		352,327		377,549
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Depreciation, depletion, amortization and accretion	1,349	1,419	4,146	4,290
General and administrative expenses	24,745	24,465	73,094	77,323
Loss from operations	(26,094)	(25,884)	(77,240)	(81,613)
Interest income (expense), net	(25,938)	(30,022)	(77,646)	(79,306)
Other expense	(277)	(970)	(4,394)	(2,477)
Loss from continuing operations before income taxes	(52,309)	$ (56,876)	(159,280)	$ (163,396)
Identifiable Assets	$ 51,668		$ 51,668		$ 56,238

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Segment Information (Revenue By Geographic Area) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 573,068	$ 506,029	$ 1,590,934	$ 1,377,033
Long-lived assets	1,198,549		1,198,549		$ 1,316,944
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	486,912	423,137	1,342,125	1,158,811
Long-lived assets	982,737		982,737		1,064,823
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	86,156	$ 82,892	248,809	$ 218,222
Long-lived assets	$ 215,812		$ 215,812		$ 252,121

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Stock-Based Compensation Plans (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Awards, Excluding ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 22.8	$ 29.2

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Income Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Income Taxes [Abstract]
Unrecorded tax benefits	$ 30.7	$ 30.7

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Supplemental Guarantor Information (Narrative) (Details)	9 Months Ended
	Sep. 30, 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	$ 500,000,000
Stated interest rate on unsecured senior notes	7.75%

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Supplemental Guarantor Information (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 104,690	$ 172,000
Accounts receivable, net	493,243	398,056
Income taxes receivable		959
Other current assets	192,954	176,160
Assets held for sale		13,644
Total current assets	790,887	760,819
Property, plant and equipment, net	1,198,549	1,316,944
Goodwill	806,496	807,860
Notes receivable	63,009	60,149
Restricted cash	8,677	20,483
Intangible and other long-term assets, net	134,112	143,970
Total assets	3,001,730	3,110,225
Current liabilities:
Accounts payable	132,166	119,716
Accrued expenses	230,520	221,757
Income taxes payable	2,119
Current portion of decommissioning liabilities	24,182	27,261
Liabilities held for sale		6,463
Total current liabilities	388,987	375,197
Deferred income taxes	33,464	61,058
Decommissioning liabilities	104,416	103,136
Long-term debt, net	1,282,014	1,279,771
Other long-term liabilities	156,834	158,634
Total stockholders' equity	1,036,015	1,132,429
Total liabilities and stockholders' equity	3,001,730	3,110,225
Eliminations [Member]
Current assets:
Accounts receivable, net		(5,235)
Intercompany accounts receivable	(80,788)	(70,700)
Total current assets	(80,788)	(75,935)
Long-term intercompany accounts receivable	(4,466,836)	(4,431,595)
Equity investments of consolidated subsidiaries	(3,282,984)	(3,399,556)
Total assets	(7,830,608)	(7,907,086)
Current liabilities:
Accounts payable		(5,235)
Intercompany accounts payable	(80,788)	(70,700)
Total current liabilities	(80,788)	(75,935)
Long-term intercompany accounts payable	(4,466,836)	(4,431,595)
Total stockholders' equity	(3,282,984)	(3,399,556)
Total liabilities and stockholders' equity	(7,830,608)	(7,907,086)
Parent [Member]
Current assets:
Long-term intercompany accounts receivable	2,236,472	2,221,697
Equity investments of consolidated subsidiaries	(1,200,202)	(1,088,736)
Total assets	1,036,270	1,132,961
Current liabilities:
Accrued expenses	255	532
Total current liabilities	255	532
Total stockholders' equity	1,036,015	1,132,429
Total liabilities and stockholders' equity	1,036,270	1,132,961
Issuer [Member]
Current assets:
Cash and cash equivalents	37,745	126,533
Accounts receivable, net	(235)
Intercompany accounts receivable	10,232	6,460
Other current assets	9,207	11,895
Total current assets	56,949	144,888
Property, plant and equipment, net	10,577	12,055
Equity investments of consolidated subsidiaries	4,477,064	4,481,702
Intangible and other long-term assets, net	21,187	22,118
Total assets	4,565,777	4,660,763
Current liabilities:
Accounts payable	8,089	14,339
Accrued expenses	110,937	116,767
Income taxes payable	555
Intercompany accounts payable	724	724
Total current liabilities	120,305	131,830
Deferred income taxes	(155,505)	(147,116)
Long-term debt, net	1,282,014	1,279,771
Long-term intercompany accounts payable	4,466,836	4,431,595
Other long-term liabilities	52,329	53,419
Total stockholders' equity	(1,200,202)	(1,088,736)
Total liabilities and stockholders' equity	4,565,777	4,660,763
Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	547	440
Accounts receivable, net	431,609	332,402
Income taxes receivable		(221)
Intercompany accounts receivable	67,417	58,375
Other current assets	145,879	129,970
Total current assets	645,452	520,966
Property, plant and equipment, net	1,001,662	1,093,446
Goodwill	657,099	657,099
Notes receivable	63,009	60,149
Long-term intercompany accounts receivable	2,047,835	2,032,056
Equity investments of consolidated subsidiaries	6,122	6,590
Restricted cash	8,632	20,483
Intangible and other long-term assets, net	105,400	113,632
Total assets	4,535,211	4,504,421
Current liabilities:
Accounts payable	106,867	89,714
Accrued expenses	89,405	80,825
Intercompany accounts payable	6,095	7,918
Current portion of decommissioning liabilities	20,670	25,670
Total current liabilities	223,037	204,127
Deferred income taxes	185,496	205,386
Decommissioning liabilities	104,416	101,293
Other long-term liabilities	78,324	79,061
Total stockholders' equity	3,943,938	3,914,554
Total liabilities and stockholders' equity	4,535,211	4,504,421
Non-Guarantor Subsidiaries [Member]
Current assets:
Cash and cash equivalents	66,398	45,027
Accounts receivable, net	61,869	70,889
Income taxes receivable		1,180
Intercompany accounts receivable	3,139	5,865
Other current assets	37,868	34,295
Assets held for sale		13,644
Total current assets	169,274	170,900
Property, plant and equipment, net	186,310	211,443
Goodwill	149,397	150,761
Long-term intercompany accounts receivable	182,529	177,842
Restricted cash	45
Intangible and other long-term assets, net	7,525	8,220
Total assets	695,080	719,166
Current liabilities:
Accounts payable	17,210	20,898
Accrued expenses	29,923	23,633
Income taxes payable	1,564
Intercompany accounts payable	73,969	62,058
Current portion of decommissioning liabilities	3,512	1,591
Liabilities held for sale		6,463
Total current liabilities	126,178	114,643
Deferred income taxes	3,473	2,788
Decommissioning liabilities		1,843
Other long-term liabilities	26,181	26,154
Total stockholders' equity	539,248	573,738
Total liabilities and stockholders' equity	$ 695,080	$ 719,166

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Supplemental Guarantor Information (Condensed Consolidating Statements of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Condensed Financial Statements, Captions [Line Items]
Revenues	$ 573,068	$ 506,029	$ 1,590,934	$ 1,377,033
Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion)	404,389	368,279	1,117,659	1,042,067
Depreciation, depletion, amortization and accretion	99,892	108,751	303,584	331,151
General and administrative expenses	68,895	74,372	214,611	226,573
Reduction in value of assets		9,953		9,953
Loss from operations	(108)	(55,326)	(44,920)	(232,711)
Other expense:
Interest expense, net	(24,952)	(29,096)	(74,733)	(76,679)
Other expense	(277)	(970)	(4,394)	(2,477)
Loss from continuing operations before income taxes	(25,337)	(85,392)	(124,047)	(311,867)
Income taxes	(3,521)	(28,203)	(16,846)	(102,978)
Net loss from continuing operations	(21,816)	(57,189)	(107,201)	(208,889)
Loss from discontinued operations, net of income tax		(1,860)	(729)	(5,625)
Net loss	(21,816)	(59,049)	(107,930)	(214,514)
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Revenues	(4,870)	(3,549)	(22,410)	(11,232)
Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion)	(4,870)	(3,549)	(22,410)	(11,232)
Other expense:
Equity in losses of consolidated subsidiaries	2,687	84,395	95,278	319,175
Loss from continuing operations before income taxes	2,687	84,395	95,278	319,175
Net loss from continuing operations		84,395	95,278	319,175
Net loss	2,687	84,395	95,278	319,175
Parent [Member]
Other expense:
Equity in losses of consolidated subsidiaries	(21,816)	(59,049)	(107,930)	(214,514)
Loss from continuing operations before income taxes	(21,816)	(59,049)	(107,930)	(214,514)
Net loss from continuing operations		(59,049)	(107,930)	(214,514)
Net loss	(21,816)	(59,049)	(107,930)	(214,514)
Issuer [Member]
Condensed Financial Statements, Captions [Line Items]
Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion)	(793)	(2,505)	(6,382)	(245)
Depreciation, depletion, amortization and accretion	965	1,033	2,974	3,114
General and administrative expenses	23,959	23,960	70,721	75,843
Loss from operations	(24,131)	(22,488)	(67,313)	(78,712)
Other expense:
Interest expense, net	(26,024)	(30,216)	(77,778)	(79,827)
Other expense	(356)	(282)	(608)	(1,004)
Equity in losses of consolidated subsidiaries	19,182	(25,096)	13,073	(104,203)
Loss from continuing operations before income taxes	(31,329)	(78,082)	(132,626)	(263,746)
Income taxes	(9,513)	(19,033)	(24,696)	(49,232)
Net loss from continuing operations		(59,049)	(107,930)	(214,514)
Net loss	(21,816)	(59,049)	(107,930)	(214,514)
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Revenues	511,510	449,267	1,420,368	1,219,455
Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion)	366,568	329,074	1,011,801	925,043
Depreciation, depletion, amortization and accretion	87,973	94,829	266,188	289,428
General and administrative expenses	34,726	38,247	109,083	113,123
Reduction in value of assets		1,835		1,835
Loss from operations	22,243	(14,718)	33,296	(109,974)
Other expense:
Interest expense, net	993	969	2,940	2,728
Other expense	264	199	802	646
Equity in losses of consolidated subsidiaries	(53)	(250)	(421)	(458)
Loss from continuing operations before income taxes	23,447	(13,800)	36,617	(107,058)
Income taxes	5,260	(2,750)	7,185	(46,996)
Net loss from continuing operations		(11,050)	29,432	(60,062)
Net loss	18,187	(11,050)	29,432	(60,062)
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Revenues	66,428	60,311	192,976	168,810
Cost of services and rentals (exclusive of depreciation, depletion, amortization and accretion)	43,484	45,259	134,650	128,501
Depreciation, depletion, amortization and accretion	10,954	12,889	34,422	38,609
General and administrative expenses	10,210	12,165	34,807	37,607
Reduction in value of assets		8,118		8,118
Loss from operations	1,780	(18,120)	(10,903)	(44,025)
Other expense:
Interest expense, net	79	151	105	420
Other expense	(185)	(887)	(4,588)	(2,119)
Loss from continuing operations before income taxes	1,674	(18,856)	(15,386)	(45,724)
Income taxes	732	(6,420)	665	(6,750)
Net loss from continuing operations		(12,436)	(16,051)	(38,974)
Loss from discontinued operations, net of income tax		(1,860)	(729)	(5,625)
Net loss	$ 942	$ (14,296)	$ (16,780)	$ (44,599)

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Supplemental Guarantor Information (Consolidating Statements of Comprehensive Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Condensed Financial Statements, Captions [Line Items]
Net loss	$ (21,816)	$ (59,049)	$ (107,930)	$ (214,514)
Change in cumulative translation adjustment, net of tax	(826)	3,629	(3,491)	11,375
Comprehensive loss	(22,642)	(55,420)	(111,421)	(203,139)
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Net loss	2,687	84,395	95,278	319,175
Change in cumulative translation adjustment, net of tax	1,652	(7,258)	6,982	(22,750)
Comprehensive loss	4,339	77,137	102,260	296,425
Parent [Member]
Condensed Financial Statements, Captions [Line Items]
Net loss	(21,816)	(59,049)	(107,930)	(214,514)
Change in cumulative translation adjustment, net of tax	(826)	3,629	(3,491)	11,375
Comprehensive loss	(22,642)	(55,420)	(111,421)	(203,139)
Issuer [Member]
Condensed Financial Statements, Captions [Line Items]
Net loss	(21,816)	(59,049)	(107,930)	(214,514)
Change in cumulative translation adjustment, net of tax	(826)	3,629	(3,491)	11,375
Comprehensive loss	(22,642)	(55,420)	(111,421)	(203,139)
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net loss	18,187	(11,050)	29,432	(60,062)
Comprehensive loss	18,187	(11,050)	29,432	(60,062)
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net loss	942	(14,296)	(16,780)	(44,599)
Change in cumulative translation adjustment, net of tax	(826)	3,629	(3,491)	11,375
Comprehensive loss	$ 116	$ (10,667)	$ (20,271)	$ (33,224)

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Supplemental Guarantor Information (Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$ 83,356	$ 47,916
Cash flows from investing activities:
Payments for capital expenditures	(186,283)	(109,635)
Proceeds from sales of assets	29,595	15,647
Net cash used in investing activities	(156,688)	(93,988)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		500,000
Principal payments on long-term debt		(500,000)
Payment of debt issuance costs		(9,091)
Other	(3,950)	(6,789)
Net cash provided by (used in) financing activities	(3,950)	(15,880)
Effect of exchange rate changes on cash	(1,834)	3,294
Net decrease in cash, cash equivalents, and restricted cash	(79,116)	(58,658)
Cash, cash equivalents, and restricted cash at beginning of period	192,483	246,092
Cash, cash equivalents, and restricted cash at end of period	113,367	187,434
Eliminations [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(14,269)
Cash flows from financing activities:
Intercompany dividends	14,269
Net cash provided by (used in) financing activities	14,269
Parent [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	18,290	20,316
Cash flows from financing activities:
Changes in notes with affiliated companies, net	(14,775)	(13,527)
Other	(3,515)	(6,789)
Net cash provided by (used in) financing activities	(18,290)	(20,316)
Issuer [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(118,313)	(1,071)
Cash flows from investing activities:
Payments for capital expenditures	(1,509)	(1,041)
Net cash used in investing activities	(1,509)	(1,041)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		500,000
Principal payments on long-term debt		(500,000)
Payment of debt issuance costs		(9,091)
Changes in notes with affiliated companies, net	31,469	6,037
Other	(435)
Net cash provided by (used in) financing activities	31,034	(3,054)
Net decrease in cash, cash equivalents, and restricted cash	(88,788)	(5,166)
Cash, cash equivalents, and restricted cash at beginning of period	126,533	127,445
Cash, cash equivalents, and restricted cash at end of period	37,745	122,279
Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	174,198	46,999
Cash flows from investing activities:
Payments for capital expenditures	(175,524)	(94,884)
Proceeds from sales of assets	16,226	15,647
Net cash used in investing activities	(159,298)	(79,237)
Cash flows from financing activities:
Changes in notes with affiliated companies, net	(26,644)	1,336
Net cash provided by (used in) financing activities	(26,644)	1,336
Net decrease in cash, cash equivalents, and restricted cash	(11,744)	(30,902)
Cash, cash equivalents, and restricted cash at beginning of period	20,923	51,789
Cash, cash equivalents, and restricted cash at end of period	9,179	20,887
Non-Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	23,450	(18,328)
Cash flows from investing activities:
Payments for capital expenditures	(9,250)	(13,710)
Proceeds from sales of assets	13,369
Net cash used in investing activities	4,119	(13,710)
Cash flows from financing activities:
Intercompany dividends	(14,269)
Changes in notes with affiliated companies, net	9,950	6,154
Net cash provided by (used in) financing activities	(4,319)	6,154
Effect of exchange rate changes on cash	(1,834)	3,294
Net decrease in cash, cash equivalents, and restricted cash	21,416	(22,590)
Cash, cash equivalents, and restricted cash at beginning of period	45,027	66,858
Cash, cash equivalents, and restricted cash at end of period	$ 66,443	$ 44,268

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Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Discontinued Operations [Abstract]
Loss from discontinued operations before income tax	$ 0.0	$ 1.9	$ 0.7	$ 5.6
Pre-tax gain loss after sale			$ 0.8

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New Accounting Pronouncements (Details) $ in Millions	9 Months Ended
	Sep. 30, 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