SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
June 30, 2011
(in thousands)


										Non-
							Guarantor			Guarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	185,133		$	4,729		$	54,252		$	—		$	244,114
Short-term investments		—			164,161			—			—			—			164,161
Accounts receivable, net		—			241			371,205			104,847			(38,339	)		437,954
Income taxes receivable		—			—			—			5,539			(5,539	)		—
Prepaid expenses		89			7,589			15,639			15,545			—			38,862
Inventory and other current assets		—			1,427			207,035			11,948			—			220,410
Intercompany interest receivable		—			28,694			—			—			(28,694	)		—


Total current assets		89			387,245			598,608			192,131			(72,572	)		1,105,501


Property, plant and equipment, net		—			2,956			1,007,942			384,020			—			1,394,918
Goodwill, net		—			—			446,947			142,814			—			589,761
Notes receivable		—			—			71,261			—			—			71,261
Intercompany notes receivable		—			488,637			—			—			(488,637	)		—
Investments in subsidiaries		124,271			593,994			—			—			(718,265	)		—
Equity-method investments		—			61,476			—			1,832			—			63,308
Intangible and other long-term assets, net		—			30,867			77,593			28,428			—			136,888


Total assets	$	124,360		$	1,565,175		$	2,202,351		$	749,225		$	(1,279,474	)	$	3,361,637


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	—		$	4,144		$	75,462		$	68,434		$	(38,873	)	$	109,167
Accrued expenses		115			38,736			88,677			42,855			—			170,383
Income taxes payable		14,494			—			—			—			(5,539	)		8,955
Deferred income taxes		22,374			—			—			1,653			—			24,027
Current portion of decommissioning liabilities		—			—			17,172			—			—			17,172
Current maturities of long-term debt		—			390,452			—			810			—			391,262
Intercompany interest payable		—			—			—			28,694			(28,694	)		—


Total current liabilities		36,983			433,332			181,311			142,446			(73,106	)		720,966


Deferred income taxes		215,691			—			—			12,500			—			228,191
Decommissioning liabilities		—			—			103,880			—			—			103,880
Long-term debt, net		—			798,043			—			12,141			—			810,184
Intercompany notes payable		—			—			—			488,637			(488,637	)		—
Intercompany payables/(receivables)		(99,845	)		897,383			(139,540	)		(123,009	)		(534,989	)		—
Other long-term liabilities		8,260			38,599			27,138			47,803			—			121,800

Stockholders’ equity:
Preferred stock of $.01 par value		—			—			—			—			—			—
Common stock of $.001 par value		80			—			—			403			(403	)		80
Additional paid in capital		439,164			124,271			—			58,068			(182,339	)		439,164
Accumulated other comprehensive income (loss), net		—			—			—			(17,134	)		—			(17,134	)
Retained earnings (accumulated deficit)		(475,973	)		(726,453	)		2,029,562			127,370			—			954,506


Total stockholders’ equity		(36,729	)		(602,182	)		2,029,562			168,707			(182,742	)		1,376,616


Total liabilities and stockholders’ equity	$	124,360		$	1,565,175		$	2,202,351		$	749,225		$	(1,279,474	)	$	3,361,637

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
December 31, 2010
(in thousands)


										Non-
							Guarantor			Guarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	5,493		$	45,234		$	—		$	50,727
Accounts receivable, net		—			415			382,935			99,010			(29,910	)		452,450
Income tax receivable		—			—			—			2,024			(2,024	)		—
Prepaid expenses		18			4,128			8,948			12,734			—			25,828
Inventory and other current assets		—			1,678			222,822			10,547			—			235,047
Intercompany interest receivable		—			15,883			—			—			(15,883	)		—


Total current assets		18			22,104			620,198			169,549			(47,817	)		764,052


Property, plant and equipment, net		—			3,189			957,561			352,400			—			1,313,150
Goodwill, net		—			—			447,467			140,533			—			588,000
Notes receivable		—			—			69,026			—			—			69,026
Intercompany notes receivable		—			456,280			—			—			(456,280	)		—
Investments in subsidiaries		124,271			602,461			4,347			4,347			(735,426	)		—
Equity-method investments		—			43,947			—			15,375			—			59,322
Intangible and other long-term assets, net		—			22,455			61,722			29,806			—			113,983


Total assets	$	124,289		$	1,150,436		$	2,160,321		$	712,010		$	(1,239,523	)	$	2,907,533


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	—		$	6,654		$	71,790		$	64,636		$	(32,804	)	$	110,276
Accrued expenses		153			42,821			91,451			27,619			—			162,044
Income taxes payable		4,499			—			—			—			(2,024	)		2,475
Deferred income taxes		29,353			—			—			—			—			29,353
Current portion of decommissioning liabilities		—			—			16,929			—			—			16,929
Current maturities of long-term debt		—			184,000			—			810			—			184,810
Intercompany interest payable		—			—			—			15,883			(15,883	)		—


Total current liabilities		34,005			233,475			180,170			108,948			(50,711	)		505,887


Deferred income taxes		211,173			—			—			12,763			—			223,936
Decommissioning liabilities		—			—			100,787			—			—			100,787
Long-term debt, net		—			669,089			—			12,546			—			681,635
Intercompany notes payable		—			—			—			456,280			(456,280	)		—
Intercompany payables/(receivables)		(100,882	)		760,164			(1,407	)		(125,246	)		(532,629	)		—
Other long-term liabilities		8,260			37,537			19,427			49,513			—			114,737

Stockholders’ equity:
Preferred stock of $.01 par value		—			—			4,347			4,347			(8,694	)		—
Common stock of $.001 par value		79			—			—			176			(176	)		79
Additional paid in capital		415,278			124,271			—			66,762			(191,033	)		415,278
Accumulated other comprehensive loss, net		—			—			—			(25,700	)		—			(25,700	)
Retained earnings (accumulated deficit)		(443,624	)		(674,100	)		1,856,997			151,621			—			890,894


Total stockholders’ equity (deficit)		(28,267	)		(549,829	)		1,861,344			197,206			(199,903	)		1,280,551


Total liabilities and stockholders’ equity	$	124,289		$	1,150,436		$	2,160,321		$	712,010		$	(1,239,523	)	$	2,907,533

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended June 30, 2011
(in thousands)


									Non-
							Guarantor		Guarantor
	Parent			Issuer			Subsidiaries		Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	434,235	$	97,714		$	(21,143	)	$	510,806
Costs and expenses:
Cost of services (exclusive of items shown separately below)		—			—			221,684		70,766			(21,080	)		271,370
Depreciation, depletion, amortization and accretion		—			129			51,741		11,444			—			63,314
General and administrative expenses		205			20,329			55,785		19,625			(63	)		95,881
Gain on sale of business		—			—			5,884		—			—			5,884


Income (loss) from operations		(205	)		(20,458	)		110,909		(4,121	)		—			86,125


Other income (expense):
Interest expense, net		—			(17,499	)		1,212		(166	)		—			(16,453	)
Intercompany interest income/ (expense)		—			6,605			—		(6,605	)		—			—
Earnings (losses) from equity-method investments, net		—			5,278			—		221			—			5,499


Income (loss) before income taxes		(205	)		(26,074	)		112,121		(10,671	)		—			75,171

Income taxes		24,220			—			—		2,842			—			27,062


Net income (loss)	$	(24,425	)	$	(26,074	)	$	112,121	$	(13,513	)	$	—		$	48,109

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended June 30, 2010
(in thousands)


									Non-
							Guarantor		Guarantor
	Parent			Issuer			Subsidiaries		Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	361,612	$	86,205		$	(22,961	)	$	424,856
Costs and expenses:
Cost of services (exclusive of items shown separately below)		—			—			193,793		59,084			(22,961	)		229,916
Depreciation, depletion, amortization and accretion		—			128			44,446		9,725			—			54,299
General and administrative expenses		79			33,446			47,786		11,218			—			92,529


Income (loss) from operations		(79	)		(33,574	)		75,587		6,178			—			48,112


Other income (expense):
Interest income (expense), net		—			(13,311	)		1,259		(628	)		—			(12,680	)
Intercompany interest income/(expense)		—			3,526			—		(3,526	)		—			—
Earnings from equity-method investments, net		—			1,667			—		503			—			2,170


Income (loss) before income taxes		(79	)		(41,692	)		76,846		2,527			—			37,602

Income taxes		11,656			—			—		1,881			—			13,537


Net income (loss)	$	(11,735	)	$	(41,692	)	$	76,846	$	646		$	—		$	24,065

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Six Months Ended June 30, 2011
(in thousands)


									Non-
							Guarantor		Guarantor
	Parent			Issuer			Subsidiaries		Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	785,875	$	175,832		$	(36,920	)	$	924,787
Costs and expenses:
Cost of services (exclusive of items shown separately below)		—			—			415,770		126,238			(36,793	)		505,215
Depreciation, depletion, amortization and accretion		—			257			100,432		21,988			—			122,677
General and administrative expenses		530			39,247			107,954		35,156			(127	)		182,760

Gain on sale of business		—			—			8,558		—			—			8,558


Income (loss) from operations		(530	)		(39,504	)		170,277		(7,550	)		—			122,693


Other income (expense):
Interest expense, net		—			(30,060	)		2,288		(1,053	)		—			(28,825	)
Intercompany interest income/(expense)		—			12,811			—		(12,811	)		—			—
Earnings (losses) from equity-method investments, net		—			4,400			—		1,126			—			5,526


Income (loss) before income taxes		(530	)		(52,353	)		172,565		(20,288	)		—			99,394

Income taxes		31,819			—			—		3,963			—			35,782


Net income (loss)	$	(32,349	)	$	(52,353	)	$	172,565	$	(24,251	)	$	—		$	63,612

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Six Months Ended June 30, 2010
(in thousands)


									Non-
							Guarantor		Guarantor
	Parent			Issuer			Subsidiaries		Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	670,101	$	153,972		$	(34,706	)	$	789,367
Costs and expenses:
Cost of services (exclusive of items shown separately below)		—			—			364,239		99,435			(34,706	)		428,968
Depreciation, depletion, amortization and accretion		—			257			87,165		17,925			—			105,347
General and administrative expenses		168			50,643			91,247		21,195			—			163,253


Income (loss) from operations		(168	)		(50,900	)		127,450		15,417			—			91,799


Other income (expense):
Interest income (expense), net		—			(27,333	)		1,957		(1,342	)		—			(26,718	)
Intercompany interest income/(expense)		—			5,673			—		(5,673	)		—			—
Earnings from equity-method investments, net		—			2,500			—		3,655			—			6,155


Income (loss) before income taxes		(168	)		(70,060	)		129,407		12,057			—			71,236

Income taxes		20,035			—			—		5,610			—			25,645


Net income (loss)	$	(20,203	)	$	(70,060	)	$	129,407	$	6,447		$	—		$	45,591

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Six Months Ended June 30, 2011
(in thousands)


										Non-
							Guarantor			Guarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(32,349	)	$	(52,353	)	$	172,565		$	(24,251	)	$	63,612
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion, amortization and accretion		—			257			100,432			21,988			122,677
Deferred income taxes		(2,461	)		—			—			1,094			(1,367	)
Stock-based and performance share unit compensation expense, net		—			4,888			—			—			4,888
Retirement and deferred compensation plans expense, net		—			486			—			—			486
(Earnings) losses from equity-method investments, net		—			(2,863	)		—			(1,126	)		(3,989	)
Amortization of debt acquisition costs and note discount		—			12,700			—			—			12,700
Gain on sale of business		—			—			(8,558	)		—			(8,558	)
Other reconciling items, net		—			(771	)		(2,235	)		—			(3,006	)
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Receivables		—			174			12,627			3,972			16,773
Inventory and other current assets		—			252			12,695			(2,282	)		10,665
Accounts payable		—			583			(1,041	)		1,410			952
Accrued expenses		(37	)		(1,189	)		2,111			9,724			10,609
Income taxes		6,680			—			—			(3,634	)		3,046
Other, net		(71	)		(2,475	)		1,399			(351	)		(1,498	)


Net cash provided by (used in) operating activities		(28,238	)		(40,311	)		289,995			6,544			227,990


Cash flows from investing activities:
Payments for capital expenditures		—			(25	)		(170,252	)		(46,405	)		(216,682	)
Purchases of short-term investments, net		—			(164,130	)		—			—			(164,130	)
Cash proceeds from sale of business		—			—			22,349			—			22,349
Other		—			—			(6,134	)		—			(6,134	)
Intercompany receivables/payables		6,624			80,062			(136,722	)		50,036			—


Net cash provided by (used in) investing activities		6,624			(84,093	)		(290,759	)		3,631			(364,597	)


Cash flows from financing activities:
Net payments on revolving credit facility		—			(175,000	)		—			—			(175,000	)
Proceeds from long-term debt		—			500,000			—			—			500,000
Principal payments on long-term debt		—			—			—			(405	)		(405	)
Payment of debt acquisition costs		—			(9,363	)		—			—			(9,363	)
Proceeds from exercise of stock options		10,129			—			—			—			10,129
Excess tax benefit from stock-based compensation		10,262			—			—			—			10,262
Proceeds from issuance of stock through employee benefit plans		1,223			—			—			—			1,223
Other		—			(6,100	)		—			(1,529	)		(7,629	)


Net cash provided by (used in) financing activities		21,614			309,537			—			(1,934	)		329,217


Effect of exchange rate changes on cash		—			—			—			777			777


Net increase (decrease) in cash and cash equivalents		—			185,133			(764	)		9,018			193,387
Cash and cash equivalents at beginning of period		—			—			5,493			45,234			50,727


Cash and cash equivalents at end of period	$	—		$	185,133		$	4,729		$	54,252		$	244,114

SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Six Months Ended June 30, 2010
(in thousands)


										Non-
							Guarantor			Guarantor
	Parent			Issuer			Subsidiaries			Subsidiaries			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(20,203	)	$	(70,060	)	$	129,407		$	6,447		$	45,591
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, amortization and accretion		—			257			87,165			17,925			105,347
Deferred income taxes		14,398			—			—			(651	)		13,747
Stock-based and performance share unit compensation expense		—			4,385			—			—			4,385
Retirement and deferred compensation plans expense, net		—			5,461			—			—			5,461
(Earnings) losses from equity-method investments, net		—			5,100			—			(2,592	)		2,508
Amortization of debt acquisition costs		—			11,731			—			—			11,731
Other, net		—			372			(2,157	)		—			(1,785	)
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Receivables		—			4			(25,064	)		(11,825	)		(36,885	)
Inventory and other current assets		—			165			73,900			(614	)		73,451
Accounts payable		—			(197	)		6,617			2,344			8,764
Accrued expenses		(4	)		1,454			1,334			721			3,505
Income taxes		10,318			—			—			1,252			11,570
Other, net		(1,097	)		(2,671	)		14,258			(821	)		9,669


Net cash provided by operating activities		3,412			(43,999	)		285,460			12,186			257,059


Cash flows from investing activities:
Payments for capital expenditures		—			—			(96,247	)		(51,568	)		(147,815	)
Acquisitions of businesses, net of cash acquired		—			—			(1,000	)		(206,772	)		(207,772	)
Other		—			963			(5,888	)		(252	)		(5,177	)
Intercompany receivables/payables		(4,971	)		(90,606	)		(183,678	)		279,255			—


Net cash provided by (used in) investing activities		(4,971	)		(89,643	)		(286,813	)		20,663			(360,764	)

Cash flows from financing activities:
Net payments on revolving credit facility		—			(37,400	)		—			—			(37,400	)
Principal payments on long-term debt		—			—			—			(405	)		(405	)
Proceeds from exercise of stock options		342			—			—			—			342
Tax benefit from exercise of stock options		163			—			—			—			163
Proceeds from issuance of stock through employee benefit plans		1,054			—			—			—			1,054
Other		—			—			—			(1,314	)		(1,314	)


Net cash provided by (used in) financing activities		1,559			(37,400	)		—			(1,719	)		(37,560	)


Effect of exchange rate changes on cash		—			—			—			(1,191	)		(1,191	)


Net increase (decrease) in cash and cash equivalents		—			(171,042	)		(1,353	)		29,939			(142,456	)
Cash and cash equivalents at beginning of period		—			171,903			4,871			29,731			206,505


Cash and cash equivalents at end of period	$	—		$	861		$	3,518		$	59,670		$	64,049