Complete Production Services, Inc. First Quarter Earnings Increase 76%

Complete Production Services, Inc. (NYSE:CPX) today reported a 76% increase in 2007 first quarter income from continuing operations to $47.4 million, or $0.65 per diluted share, compared with income from continuing operations of $26.9 million, or $0.46 per diluted share, for the first quarter of 2006. Operating income for the quarter increased to $92.2 million, an increase of 68% over the prior year quarter resulting in operating profit margins of 22.7% of revenue, compared to 20.9% in the first quarter of 2006. Revenue for the quarter was $407.1 million, up 55% over the first quarter of 2006. "We are very pleased to report outstanding results for the first quarter of 2007,” commented Joe Winkler, Chairman and Chief Executive Officer of Complete. "Our growth significantly outpaced the 15% year over year growth in the US land rig count. This performance is reflective of successful execution and our strategy to be selectively positioned in basins which we believe will have the strongest activity levels.” Earnings before interest, taxes, depreciation and amortization (EBITDA, as defined below), totaled $121.2 million, up 72% over the prior year. Total company EBITDA margin increased to 29.8% primarily attributable to strong performance in the Completion and Production Services segment, partially offset by weaker margins in the Drilling Services and Product Sales segments. Completion and Production Services revenue of $307.6 million for the quarter increased 60% over the same period in 2006 while EBITDA margins increased to 33.9%. "We continue to strategically invest in our Completion and Production Services segment through capital expenditures, and to a lesser extent thus far in 2007, through acquisitions,” noted Mr. Winkler. Drilling Services revenue was $58.4 million, up 33% versus the prior year with EBITDA margins of 30.9% and Product Sales revenue increased 56% to $41.0 million with EBITDA margins of 12.6%. "Our team continues to evaluate market conditions and believes the long-term fundamentals for natural gas in North America, particularly in our key operating areas, remain positive,” commented Mr. Winkler. Complete Production Services, Inc. is a leading oilfield service provider focused on the completion and production phases of oil and gas wells. The company has established a significant presence in unconventional gas plays in North America that it believes have the highest potential for long-term growth. Conference Call Complete will hold a conference call to discuss first quarter 2007 results on Thursday, April 26 at 11:00 a.m. Central Time. To participate in the live conference call, dial 866-831-6234 at least ten minutes prior to the scheduled start of the call. When prompted, provide the passcode: 48359110. The conference call will be available for replay beginning at 2:00 p.m., April 26, 2007, and will be available until May 2, 2007. To access the conference call replay, please call 888-286-8010 and use the passcode: 4913302. The call is also being webcast and can be accessed at our website at www.completeproduction.com. The foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risk and uncertainties. The forward-looking statements included herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry. The company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release. Management evaluates the performance of Complete’s operating segments using a non-GAAP financial measure, EBITDA. EBITDA is calculated as net income from continuing operations before net interest expense, taxes, depreciation and amortization and minority interest. EBITDA is not a substitute for the GAAP measures of earnings and cash flow. EBITDA is used in this press release because our management considers it an important supplemental measure of performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Complete Production Services, Inc. Consolidated Statements of Operations For the Quarters Ended March 31, 2007 and 2006 (in thousands, except per share data)     Quarter Ended March 31, 2007  2006  (unaudited) (unaudited) Revenue: Services $ 366,035  $ 235,119  Products 41,032  27,227  407,067  262,346    Cost of services 203,513  135,511  Cost of products 31,811  19,883  General and administrative expense 50,570  36,446  Depreciation and amortization 28,970  15,607  314,864  207,447      Operating income 92,203  54,899    Interest expense 15,625  10,682  Interest income (212) (7)         Income from continuing operations before minority interest and taxes 76,790  44,224    Minority interest, net of tax 261  305      Income from continuing operations before taxes 76,529  43,919    Tax provision 29,179  17,004      Income from continuing operations 47,350  26,915    Income from discontinued operations (net of tax) -  1,198      Net income $ 47,350  $ 28,113    Basic earnings per share: Continuing Operations $ 0.66  $ 0.49  Discontinued Operations $ -  $ 0.02  $ 0.66  $ 0.51  Diluted earnings per share: Continuing Operations $ 0.65  $ 0.46  Discontinued Operations $ -  $ 0.02  $ 0.65  $ 0.48  Weighted average shares outstanding: Basic 71,503  55,601  Diluted 73,021  58,783    Complete Production Services, Inc. Condensed Consolidated Balance Sheets As of March 31, 2007 and December 31, 2006 (in thousands)   March 31, December 31, 2007  2006  (unaudited) (unaudited) Assets: Current assets $ 429,121  $ 390,640  Property, plant and equipment, net 847,988  771,703  Goodwill 556,685  552,671  Other long-term assets 26,602  25,310  Total assets 1,860,396  1,740,324    Liabilities and Stockholders' Equity: Current liabilities 187,311  161,405  Long-term debt 786,170  750,577  Long-term deferred tax liabilities 96,933  90,805  Minority interest 2,609  2,316  Total liabilities and minority interest 1,073,023  1,005,103    Common stock 717  714  Treasury stock (202) (202) Additional paid-in capital 567,049  563,006  Retained earnings 203,321  155,971  Cumulative translation adjustment 16,488  15,732  Total stockholders' equity 787,373  735,221      Total liabilities and stockholders' equity $ 1,860,396  $ 1,740,324        Cash Flow Data For the Three Months Ended March 31, 2007 (in thousands) March 31, 2007  (unaudited) Cash flows provide by/(used for): Operating activities $ 85,194  Investing activities: Capital expenditures $ (99,902) Other investing activities $ (10,540) Financing activities $ 25,702      Complete Production Services, Inc. Consolidated Segment Information For the Quarters Ended March 31, 2007 and 2006 and December 31, 2006 (in thousands)   Quarter Ended March 31, 2007 March 31, 2006 December 31, 2006 (unaudited) (unaudited) (unaudited) Revenue: Completion and production services $ 307,639  $ 192,021  $ 269,041  Drilling services 58,396  44,030  62,177  Products 41,032  26,295  32,290  Total revenues $ 407,067  $ 262,346  $ 363,508    EBITDA: (1) Completion and production services $ 104,162  $ 54,602  $ 80,705  Drilling services 18,068  16,020  23,176  Products 5,157  3,816  6,257  Corporate and other (6,214) (3,932) (7,443) Total EBITDA $ 121,173  $ 70,506  $ 102,695    EBITDA as a % of Revenue: Completion and production services 33.9% 28.4% 30.0% Drilling services 30.9% 36.4% 37.3% Products 12.6% 14.5% 19.4% Total 29.8% 26.9% 28.3%   (1) EBITDA is a non-GAAP measure used by management, as defined in the last paragraph of this press release.   Footnote: The results for all periods exclude discontinued operations.   Complete Production Services, Inc. Reconciliation of EBITDA to the most Comparable GAAP Measure For the Quarters Ended March 31, 2007 and 2006 and December 31, 2006 (unaudited, in thousands)   Completion & Production Services Drilling Services Products Corporate & Other Total Quarter Ended March 31, 2007: EBITDA $ 104,162  $ 18,068  $ 5,157  $ (6,214) $ 121,173  Depreciation & amortization 24,284  3,635  678  373  28,970  Operating Income (loss) $ 79,878  $ 14,433  $ 4,479  $ (6,587) $ 92,203    Quarter Ended March 31, 2006: EBITDA $ 54,602  $ 16,020  $ 3,816  $ (3,932) $ 70,506  Depreciation & amortization 12,834  2,018  383  372  15,607  Operating Income (loss) $ 41,768  $ 14,002  $ 3,433  $ (4,304) $ 54,899    Quarter Ended December 31, 2006: EBITDA $ 80,705  $ 23,176  $ 6,257  $ (7,443) $ 102,695  Depreciation & amortization 21,694  3,439  430  291  25,854  Write-off of deferred financing costs -  -  -  (170) (170) Operating Income (loss) $ 59,011  $ 19,737  $ 5,827  $ (7,564) $ 77,011