The company believes that the ability to provide its customers with multiple services and to coordinate and integrate their delivery allows it to maximize efficiency, reduce lead-time and provide cost-effective solutions for our customers. Superior has expanded geographically so that it now has a significant presence in both select domestic land and international markets.

The oil and gas industry remains highly cyclical and seasonal. Activity levels in the company's services and rental tools segments are driven primarily by traditional energy industry activity indicators, which include current and expected commodity prices, drilling rig counts, oil and gas production levels, and customers' spending allocated for drilling and production.

Superior's growth during the past several years has been primarily due to the following factors:

• increased customer spending levels on finding oil and gas reserves due to high commodity prices;

• increased customer focus on replacing reserves and increasing production through production-enhancement projects in existing wells;

• growth in the company's non-Gulf of Mexico market areas; and

• extremely high demand in the Gulf of Mexico market area.

The company's strategy is centered around geographic diversification of its existing products and services.