Complete Production Services, Inc. Announces Second Quarter Earnings of $0.54 Per Diluted Share from Continuing Operations, Divestiture of Non-Core Assets and New Growth Initiatives.

HOUSTON -- Complete Production Services, Inc. (NYSE:CPX) today reported second quarter 2008 revenue of $441.1 million, up 20% over second quarter 2007 revenue and up 6% over the first quarter of 2008. Net income from continuing operations for the quarter was $39.8 million or $0.54 per diluted share, compared to second quarter 2007 net income of $40.1 million or $0.55 per diluted share and first quarter 2008 net income of $41.8 million or $0.57 per diluted share. Earnings before interest, taxes, depreciation, amortization, impairment charge and minority interest (EBITDA, as defined below) totaled $118.2 million, up 7% year-over-year and down 1% from the first quarter of 2008. These operating results from continuing operations exclude the impact of discontinued operations associated with certain non-core business assets, primarily within the Product Sales segment, which were sold during the second quarter of 2008. Concurrent with the sale, CPX acquired a well service and fluid handling operation in the Barnett Shale area, resulting in net cash received of approximately $50 million.

Second quarter 2008 revenues for the Completion and Production Services segment were $368.7 million, up 22% year-over-year and up 5% sequentially. Segment EBITDA was $107.5 million, up from $99.6 million in the prior year and down from the $112.2 million for the first quarter of 2008. Segment EBITDA margins were 29.2% compared to 32.9% in the prior year and 31.9% in the first quarter of 2008. Year over year EBITDA increased as a result of Complete's investment in organic growth capital and strategic acquisitions. However, EBITDA margins declined due to the impact of lower pricing levels and slightly lower utilization rates for certain service offerings, and the impact of inflationary forces on labor, consumables and, in particular, fuel. Sequentially, EBITDA margins declined due primarily to the seasonal downturn in Canada and significantly higher fuel costs.

Drilling Services segment revenue and EBITDA were $57.2 million and $15.5 million, respectively, for the second quarter of 2008. The results compared to $53.3 million and $16.6 million for the same period of 2007, and $53.3 million and $12.2 million for the previous quarter. EBITDA margins increased sequentially as higher volumes and improved mix more than offset the impact of inflationary forces in both the rig logistics and contract drilling operations. Year-over-year, higher volume did not fully counteract the impact of higher fuel costs and weaker pricing, resulting in lower EBITDA margins.

Commenting on the quarter, Chairman and CEO Joe Winkler stated, "Activity levels across most of our geographic areas and service lines were strong during the quarter as resource play development accelerated in the United States. Given the current environment, we believe we will regain some pricing leverage during the second half of 2008. All indications are that Complete's customers are moving forward with their growth plans and continue to identify new and exciting resource plays. We will continue to invest alongside our customers in emerging areas to help them capitalize on new opportunities."

Significant achievements since the first quarter include:

* Divesting non-core business assets from the Complete's Product Sales segment;

* Acquiring and integrating Frac Source Services, Inc., a Barnett Shale focused pressure pumping business;

* Expanding our service offering in the Bakken Shale of North Dakota by introducing hydraulic fracturing services into this market; and

* Securing exclusive rights from Sondex, part of the new Oilfield Technology (OFT) group within GE Energy, for the use of its new open hole formation evaluation tools in the United States.

Mr. Winkler further commented, "As a result of our recent accomplishments, customer actions and our positive view on the long-term fundamentals in North America, we have increased our expected 2008 investment in capital expenditures to approximately $250 million."

Conference Call

Complete will hold a conference call to discuss second quarter 2008 results on Thursday, July 24 at 8:30 a.m. Eastern Time. To participate in the live conference call, dial 866-800-8651 at least ten minutes prior to the scheduled start of the call. When prompted, provide the passcode: 64641903. The conference call will be available for replay beginning at 10:30 a.m., July 24, 2008 and will be available until July 31, 2008. To access the conference call replay, please call 888-286-8010 and use the passcode: 87658249. 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, impairment charge, 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.

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