Complete Production Services, Inc. Reports First Quarter 2010 Results

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HOUSTON--(Business Wire)--
Complete Production Services, Inc. (NYSE:CPX) today reported first quarter
revenue of $309.7 million, an increase of 23% over the fourth quarter of 2009,
operating income of $10.6 million and a net loss of $2.8 million, or $0.04 per
diluted share. Modified EBITDA (as defined below) for the first quarter of 2010
was $55.9 million, an increase of $21.5 million, or 62%, over the fourth quarter
of 2009.

"We are very pleased with our results for the first quarter of 2010," commented
Joe Winkler, Chairman and CEO. "The improvement in our results from last quarter
was led by a rebound in drilling and completion related activity focused in the
service-intensive resource plays. Our team`s dedication to deliver quality
services for our customers, market positions and capital structure enable us to
capitalize on this recovery."

Revenue for the Completion and Production Services segment during the first
quarter of 2010 was $266.3 million, an increase of 24% over the prior quarter.
Modified EBITDA for the segment was $57.8 million, up 49% versus the fourth
quarter of 2009. Segment Modified EBITDA margin was 21.7% during the first
quarter versus 17.9% for the fourth quarter of 2009 resulting in incremental
Modified EBITDA margins of 37.9%. The segment reported improved performance in
every major service offering, driven by increases in horizontal completion
related activity within resource plays, particularly in areas that are oil and
liquid-rich. The segment also benefited from price increases in select
geographic areas and service lines during the first quarter of 2010.

First quarter Drilling Services segment revenue was $35.1 million, versus $29.2
million reported for the prior quarter, representing an increase of 20%. The
segment reported Modified EBITDA of $5.4 million, up $2.5 million versus the
fourth quarter of 2009. The improved performance of the segment is primarily
attributable to an increase in rig relocation activities and slightly improved
pricing for contract drilling services.

In comparison to the first quarter of 2009, consolidated revenue decreased by
$27.0 million, or 8%, operating income decreased $3.4 million, and net loss
increased by $2.4 million or $0.04 per share.

Cash flow from operating activities totaled $40.5 million and capital
expenditures were $11.3 million during the first quarter of 2010, contributing
to an increase in cash to a total of $105.4 million at March 31, 2010.
Subsequent to quarter end, Complete received a $43.7 million federal income tax
refund, further enhancing the company`s balance sheet. The company`s $240
million credit facility remains undrawn.

"Activity improved steadily throughout the quarter and our customers have begun
increasing their focus on oil and liquid-rich plays. Our team has done a
tremendous job in assisting our customers through this transition by leveraging
our horizontal completion expertise that is the foundation of our business."

"We believe the enhanced economics of oil and liquid-rich plays, our customers`
hedge positions and their need to earn and hold recently acquired acreage by
production, will result in activity levels remaining well above the lows we saw
in 2009. However, activity levels in the more mature gas markets are less
certain due to current natural gas prices. We remain optimistic regarding the
long-term outlook for natural gas, intend to capitalize on any shifts in the
market while enhancing our core operations and are well positioned to be
opportunistic," concluded 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 oil and gas
plays in North America that it believes have the highest potential for long-term
growth.

Complete will hold a conference call to discuss first quarter 2010 results on
Thursday, April 22, 2010 at 2:00 p.m. Eastern Time. To participate in the live
conference call, dial (800) 901-5213 at least ten minutes prior to the scheduled
start of the call. When prompted, provide the passcode: 71497854. The conference
call will be available for replay beginning at 5:00 p.m. Eastern Time on April
22, 2010 and will be available until April 29, 2010. To access the conference
call replay, please call (888) 286-8010 and use the passcode: 18782874. 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. These
forward-looking statements include statements regarding future market
conditions, the company`s business objectives in 2010 and the company`s future
success. Such statements 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 and other risks described in the company`s most recent annual
report on Form 10-K and subsequent quarterly reports on Form 10-Q. 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
non-GAAP financial measures, including Adjusted EBITDA and Modified EBITDA.
Adjusted EBITDA is calculated as net income from continuing operations before
net interest expense, taxes, depreciation, amortization, impairment charges and
minority interest. Modified EBITDA is calculated as Adjusted EBITDA before
certain other non-cash charges including fixed asset and inventory write-downs
and loss on non-monetary asset exchange. Adjusted EBITDA and Modified EBITDA are
not substitutes for GAAP measures of earnings and cash flow. Adjusted EBITDA and
Modified EBITDA are used in this press release because our management considers
these measures to be important supplemental measures of performance and believes
they are 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, 2010 and 2009
(in thousands, except per share data)

Quarter Ended
March 31,
2010 2009
(unaudited) (unaudited)
Revenue:
Services $ 301,392 $ 322,917
Products 8,312 13,764
309,704 336,681

Cost of services 206,820 211,213
Cost of products 6,124 10,495
General and administrative expense 40,852 49,278
Depreciation and amortization 45,319 51,689
299,115 322,675

Income before interest and taxes 10,589 14,006

Interest expense 14,741 14,458
Interest income (48 ) (10 )
Loss before taxes (4,104 ) (442 )

Tax provision (1,342 ) (106 )

Net loss $ (2,762 ) $ (336 )

Basic earnings (loss) per share: $ (0.04 ) $ (0.00 )

Diluted earnings (loss) per share: $ (0.04 ) $ (0.00 )

Weighted average shares outstanding:
Basic 75,699 74,895
Diluted 75,699 74,895

Complete Production Services, Inc.
Condensed Consolidated Balance Sheets
As of March 31, 2010 and December 31, 2009
(in thousands)

March 31, December 31,
2010 2009
(unaudited) (unaudited)
Assets:
Cash $ 105,439 $ 77,360
Other current assets 320,476 292,566
Property, plant and equipment, net 908,692 941,133
Goodwill 243,823 243,823
Other long-term assets 31,695 33,972
Total assets 1,610,125 1,588,854

Liabilities and stockholders' equity:
Current liabilities 113,939 91,722
Long-term debt 650,000 650,002
Long-term deferred tax liabilities 146,415 148,240
Total liabilities 910,354 889,964

Common stock 752 752
Treasury stock (1,717 ) (334 )
Additional paid-in capital 640,328 636,904
Retained earnings 39,245 42,007
Cumulative translation adjustment 21,163 19,561
Total stockholders' equity 699,771 698,890

Total liabilities and stockholders' equity $ 1,610,125 $ 1,588,854

Complete Production Services, Inc.
Consolidated Segment Information
For the Quarters Ended March 31, 2010 and 2009, and December 31, 2009
(in thousands, except percentages)

Quarter Ended
March 31, March 31, December 31,
2010 2009 2009
(unaudited) (unaudited) (unaudited)
Revenue:
Completion and production services $ 266,288 $ 287,526 $ 215,603
Drilling services 35,104 35,391 29,214
Products 8,312 13,764 6,585
Total revenues $ 309,704 $ 336,681 $ 251,402

Adjusted EBITDA: (1)
Completion and production services $ 57,756 $ 66,224 $ 36,743
Drilling services 5,419 6,887 2,942
Products 1,562 2,551 1,540
Corporate and other (8,829 ) (9,967 ) (8,744 )
Total $ 55,908 $ 65,695 $ 32,481

Adjusted EBITDA as a % of Revenue:
Completion and production services 21.7 % 23.0 % 17.0 %
Drilling services 15.4 % 19.5 % 10.1 %
Products 18.8 % 18.5 % 23.4 %
Total 18.1 % 19.5 % 12.9 %

(1) Adjusted EBITDA is a non-GAAP measure used by management, as defined in the last paragraph of this press release.

Complete Production Services, Inc.
Reconciliation of Adjusted EBITDA to the Most Comparable GAAP Measure
For the Quarters Ended March 31, 2010 and 2009, and December 31, 2009
(unaudited, in thousands)

Completion
& Production Drilling Corporate &
Services Services Products Other Total
Quarter Ended March 31, 2010:
Adjusted EBITDA $ 57,756 $ 5,419 $ 1,562 $ (8,829 ) $ 55,908
Depreciation & amortization 39,793 4,458 576 492 45,319
Operating income (loss) $ 17,963 $ 961 $ 986 $ (9,321 ) $ 10,589

Quarter Ended March 31, 2009:
Adjusted EBITDA $ 66,224 $ 6,887 $ 2,551 $ (9,967 ) $ 65,695
Depreciation & amortization 44,926 5,548 634 581 51,689
Operating income (loss) $ 21,298 $ 1,339 $ 1,917 $ (10,548 ) $ 14,006

Quarter Ended December 31, 2009:
Adjusted EBITDA $ 36,743 $ 2,942 $ 1,540 $ (8,744 ) $ 32,481
Depreciation & amortization 41,536 4,565 599 562 47,262
Other intangible impairment loss 2,488 - - - 2,488
Goodwill impairment loss 97,643 - - - 97,643
Operating income (loss) $ (104,924 ) $ (1,623 ) $ 941 $ (9,306 ) $ (114,912 )

Complete Production Services, Inc.
Reconciliation of Modified EBITDA to Most Comparable GAAP Measure
For the Quarters Ended March 31, 2010 and 2009, and December 31, 2009
(unaudited, in thousands)

Completion
& Production Drilling Corporate &
Services Services Products Other Total

Quarter Ended March 31, 2010:
Modified EBITDA $ 57,756 $ 5,419 $ 1,562 $ (8,829 ) $ 55,908
Adjusted EBITDA 57,756 5,419 1,562 (8,829 ) 55,908
Depreciation and amortization 39,793 4,458 576 492 45,319
Operating income (loss) $ 17,963 $ 961 $ 986 $ (9,321 ) $ 10,589

Quarter Ended March 31, 2009:
Modified EBITDA $ 71,092 $ 6,887 $ 2,551 $ (9,967 ) $ 70,563
Non-monetary asset exchange 4,868 - - - 4,868
Adjusted EBITDA 66,224 6,887 2,551 (9,967 ) 65,695
Depreciation and amortization 44,926 5,548 634 581 51,689
Operating income (loss) $ 21,298 $ 1,339 $ 1,917 $ (10,548 ) $ 14,006

Quarter Ended December 31, 2009:
Modified EBITDA $ 38,698 $ 2,942 $ 1,540 $ (8,744 ) $ 34,436
Fixed asset and inventory adjustments 1,955 - - - 1,955
Adjusted EBITDA 36,743 2,942 1,540 (8,744 ) 32,481
Depreciation and amortization 41,536 4,565 599 562 47,262
Other intangible impairment loss 2,488 - - - 2,488
Goodwill impairment loss 97,643 - - - 97,643
Operating income (loss) $ (104,924 ) $ (1,623 ) $ 941 $ (9,306 ) $ (114,912 )

Complete Production Services, Inc.
Reconciliation of Earnings Per Share per GAAP Less Certain Non-cash Charges
For the Quarters Ended March 31, 2010 and 2009
(unaudited, in thousands except share and per share amounts)

Quarter Quarter
Ended Ended
March 31, March 31,
2010 2009
(unaudited) (unaudited)

Net loss from continuing operations, as reported $ (2,762 ) $ (336 )
Add: Loss on non-monetary exchange - 4,868
Less: Tax benefit associated with loss on non-monetary exchange - (1,399 )
Adjusted net income (loss) $ (2,762 ) $ 3,133

Basic weighted average shares outstanding, as reported 75,699 74,895
Add: Dilutive securities:
Stock options - 49
Restricted shares - 239
Adjusted diluted weighted average shares 75,699 75,183

Diluted earnings (loss) per share, as reported: $ (0.04 ) $ (0.00 )

Adjusted diluted earnings (loss) per share: $ (0.04 ) $ 0.04

Complete Production Services, Inc.
Jose Bayardo, 281-372-2300
Vice President and Chief Financial Officer

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