Hornbeck Offshore Announces Third Quarter 2013 Results

            Hornbeck Offshore Announces Third Quarter 2013 Results

PR Newswire

COVINGTON, La., Oct. 30, 2013

COVINGTON, La., Oct.30, 2013 /PRNewswire/ -- Hornbeck Offshore Services, Inc.
(NYSE:HOS) announced today results for the third quarter ended September 30,
2013. Following are highlights for this period and the Company's future
outlook:

  o3Q2013 Upstream revenue of $132.9 million was up 16% from the year-ago
    quarter
  o3Q2013 Upstream operating income of $37.2 million increased 53% from the
    year-ago quarter
  o3Q2013 sale of active Downstream fleet resulted in pre-tax gain on sale of
    assets of $60.0 million ($1.04 per diluted share)
  oExcluding such gain on sale, 3Q2013 EBITDA was $66.5 million, an increase
    of 38% from the year-ago quarter
  oExcluding such gain on sale, 3Q2013 diluted EPS was $0.57 per share, an
    increase of 185% from the year-ago quarter
  oAs a result of the sale, Downstream results are now presented as
    Discontinued Operations for all periods
  o3Q2013 utilization of the 50-vessel new gen OSV fleet was 81% compared to
    80% a year-ago and 88% sequentially
  o3Q2013 high-spec OSV effective utilization was 90% compared to 97% a
    year-ago and 98% sequentially
  o3Q2013 MPSV effective utilization was 99% compared to 91% a year-ago and
    99% sequentially
  oOSV Newbuild Program #5 and 200 Class OSV Retrofit Program remain on-time
    and on-budget
  oFirst two HOSMAX OSVs have been placed in-service with three more newbuild
    deliveries expected by the end of 4Q2013
  oFirst four HOSMAX OSVs were awarded initial time charters with an average
    dayrate in excess of $43,000
  oContract backlog for new gen OSV vessel-days is currently at 77% and 34%
    for 4Q2013 and fiscal 2014
  oContract backlog for MPSV vessel-days is currently at 83% and 47% for
    4Q2013 and fiscal 2014
  oThe Company has elected to redeem all $250 million of its outstanding
    1.625% convertible notes on November 15, 2013

The Company recorded net income for the third quarter of 2013 of $59.2
million, or $1.61 per diluted share, compared to net income of $7.4 million,
or $0.20 per diluted share, for the year-ago quarter; and net income of $23.8
million, or $0.65 per diluted share, for the second quarter of 2013. Included
in the Company's net income is a gain of $60.0 million ($38.1 million
after-tax or $1.04 per diluted share) related to the sale of substantially all
of its Downstream assets on August 29, 2013. (Please see "Discontinued
Operations" section below for more details.) Excluding the impact of the gain
on sale of Downstream assets, net income and diluted EPS for the third quarter
of 2013 would have been $21.1 million and $0.57 per share, respectively.
Diluted common shares for the third quarter of 2013 were 36.7 million compared
to 36.1 million for the third quarter of 2012 and 36.5 million for the second
quarter of 2013. EBITDA from continuing and discontinued operations for the
third quarter of 2013 was $126.5 million compared to $48.1 million in the
third quarter of 2012 and $74.8 million in the second quarter of 2013.
Excluding the impact of the gain on sale of Downstream assets, such EBITDA for
the third quarter of 2013 would have been $66.5 million. For additional
information regarding EBITDA as a non-GAAP financial measure, please see Note
8 to the accompanying data tables.

Continuing Operations

The Company's income from continuing operations for the third quarter of 2013
was $17.8 million, or $0.49 per diluted share, compared to $6.2 million, or
$0.17 per diluted share, for the year-ago quarter; and $20.3 million, or $0.55
per diluted share, for the second quarter of 2013. Third quarter 2013 EBITDA
from continuing operations increased 39.7% to $59.5 million compared to $42.6
million for the third quarter of 2012 and decreased 9.8% compared to $66.0
million for the second quarter of 2013.

Revenues.  Revenues were $132.9 million for the third quarter of 2013, an
increase of $17.8 million, or 15.5%, from $115.1 million for the third quarter
of 2012; and a decrease of $4.9 million, or 3.6%, from $137.8 million for the
second quarter of 2013. The year-over-year increase in revenues primarily
resulted from improved spot market conditions for high-spec OSVs and MPSVs in
the GoM. These higher revenues were partially offset by an increase in days
out-of-service for the mobilization of four vessels to the GoM from Brazil
during the current year quarter. Operating income was $37.2 million, or 28.0%
of revenues, for the third quarter of 2013 compared to $24.3 million, or 21.1%
of revenues, for the prior-year quarter; and $46.4 million, or 33.7% of
revenues, for the second quarter of 2013. Average new generation OSV dayrates
for the third quarter of 2013 were $27,545 compared to $23,990 for the same
period in 2012 and $26,079 for the second quarter of 2013. New generation OSV
utilization was 80.7% for the third quarter of 2013 compared to 79.5% for the
year-ago quarter and 88.3% for the sequential quarter. The Company's high-spec
OSVs achieved an average utilization of 82.7% for the third quarter of 2013,
while maintaining leading-edge spot dayrates in the $38,000 to $45,000 range.
After adjusting for 209 days of third quarter downtime for regulatory
drydockings and the mobilization of four vessels to the GoM from Brazil, the
Company's commercially available high-spec OSV fleet achieved an effective
utilization of 90.1%.

Operating Expenses.  Operating expenses were $59.2 million for the third
quarter of 2013, a decrease of $0.7 million, or 1.2%, from $59.9 million for
the third quarter of 2012; and an increase of $0.5 million, or 0.9%, from
$58.7 million for the second quarter of 2013. The year-over-year decrease in
operating expenses is primarily due to lower operating expenses related to two
non-core vessels sold in the first-half of 2013 and lower operating expenses
from vessels out-of-service under the 200 class OSV retrofit program,
partially offset by incremental operating costs associated with one additional
300 class newbuild that was placed in-service in June 2013. The sequential
increase in operating expense is primarily due to $2.2 million of
non-recurring costs related to the mobilization of four vessels to the GoM
from Brazil and a shift in the Company's fleet mix to a higher percentage of
much larger high-spec vessels.

General and Administrative ("G&A"). G&A expenses of $14.1 million for the
third quarter of 2013 were 10.6% of revenues compared to $12.2 million, or
10.6% of revenues, for the third quarter of 2012. The increase in G&A expenses
was primarily attributable to higher shoreside incentive compensation expense
and the growth of the shoreside support team related to the Company's pending
fleet growth.

Depreciation and Amortization. Depreciation and amortization expense was $22.4
million for the third quarter of 2013, or $4.1 million higher than the
prior-year quarter. The increase in depreciation expense is primarily due to
the full-quarter contribution of one 300 class OSV that was placed in-service
during June 2013, as well as the higher cost basis of vessels redelivered to
the Company under its ongoing 200 class OSV retrofit program. The increase in
amortization is primarily due to more vessels reaching their initial
regulatory drydocking requirements, the recertification of previously stacked
vessels and a higher per-vessel average in shipyard costs for vessel
regulatory drydockings given the shift in the Company's fleet mix to a higher
percentage of much larger high-spec vessels. Depreciation and amortization
expense is expected to continue to increase from current levels as the vessels
under the Company's current newbuild and conversion programs are placed in
service and when any newly constructed vessels undergo their initial 30-month
and 60-month recertifications.

Gain on Sale of Assets. No Upstream vessels were sold during the third quarter
of 2013. Included in third quarter 2012 results was a $0.4 million ($0.2
million after tax and $0.01 per diluted share) loss on the sale of non-vessel
shoreside assets. The $60.0 million gain on sale of the Downstream assets is
included in discontinued operations for the third quarter of 2013.

Interest Expense. Interest expense decreased $3.0 million, or 20.4%, during
the third quarter of 2013 compared to the same period in 2012, primarily due
to an increase in capitalized interest cost related to the Company's fifth OSV
newbuild program. The Company recorded $8.8 million of capitalized
construction period interest, or roughly 43% of its total interest costs, for
the third quarter of 2013 compared to having capitalized $2.9 million, or
roughly 16% of its total interest costs, for the prior-year quarter.

Discontinued Operations

On August 29, 2013, the Company closed the sale of substantially all of the
assets and business of its Downstream segment's tug and tank barge fleet to
Genesis Marine, LLC, an affiliate of Genesis Energy L.P. (NYSE:GEL), for net
proceeds of approximately of $227.5 million, after deal costs. The sale
resulted in a gain of $60.0 million ($38.9 million after-tax or $1.04 per
diluted share). For the partial third-quarter 2013 period prior to the asset
sale, the Downstream fleet generated approximately $7.0 million of EBITDA and
$0.08 of diluted earnings per share from operating activities. The historical
results for the Downstream segment and the gain on the sale thereof have been
presented as discontinued operations for all periods in the accompanying
condensed consolidated financial statements.

Nine Month Results From Continuing Operations

Revenues for the first nine months of 2013 increased 17.0% to $403.3 million
compared to $344.7 million for the same period in 2012. Operating income was
$127.5 million, or 31.6% of revenues, for the first nine months of 2013
compared to $88.0 million, or 25.5% of revenues, for the prior-year period.
Income from continuing operations for the first nine months of 2013 increased
$16.7 million to $42.0 million, or $1.15 per diluted share, compared to $25.3
million, or $0.70 per diluted share, for the first nine months of 2012. EBITDA
from continuing operations for the first nine months of 2013 increased 20.3%
to $164.3 million compared to $136.6 million for the first nine months of
2012. The Company recorded a $25.8 million ($16.1 million after-tax or $0.44
per diluted share) loss on early extinguishment of debt during the first nine
months of 2013. This loss resulted from the refinancing of the Company's
8.000% senior notes due 2017 with new 5.000% senior notes due 2021. Excluding
the impact of such loss on early extinguishment of debt, EBITDA from
continuing operations, income from continuing operations and diluted EPS from
continuing operations for the first nine months of 2013 would have been $190.1
million, $58.0 million and $1.59 per share, respectively. The Company recorded
a $6.0 million ($3.7 million after-tax or $0.11 per diluted share) loss on
early extinguishment of debt during the first nine months of 2012. This loss
resulted from the refinancing of the Company's 6.125% senior notes due 2014
with new 5.875% senior notes due 2020. Excluding the impact of such loss on
early extinguishment of debt, EBITDA from continuing operations, income from
continuing operations and diluted EPS from continuing operations for the first
nine months of 2012 would have been $142.6 million, $29.0 million and $0.80
per share, respectively. The year-over-year increase in Upstream revenues
primarily resulted from increased demand for the Company's high-spec OSVs and
MPSVs in the GoM. The Company's income from continuing operations for the
first nine months of 2013 included an aggregate $1.6 million ($1.0 million
after-tax, or $0.03 per diluted share) gain on the sale of non-core assets.
The Company's income from continuing operations for the first nine months of
2012 included an aggregate $0.4 million ($0.2 million after-tax or $0.01 per
diluted share) loss on the sale of non-vessel shoreside assets. The $60.0
million gain on sale of the Downstream assets is included in discontinued
operations for the third quarter of 2013.

Recent Developments

On September 13, 2013, the Company issued a notice of redemption for all of
the outstanding $250 million aggregate principal amount of its 1.625%
convertible senior notes due 2026, or the 2026 notes. The Company has elected
to redeem the 2026 notes on November 15, 2013, or the Redemption Date, at a
redemption price of 100% of the principal amount thereof and accrued and
unpaid interest to, but excluding, the Redemption Date. Holders may convert
the 2026 notes at any time prior to the close of business on November 12,
2013, at a conversion rate of 20.6260 shares of the Company's common stock per
$1,000 principal amount of 2026 notes, which equates to a conversion price of
$48.48 per share, with a related Observation Period (as defined in the
Indenture governing the 2026 notes) of October 8, 2013 through November 11,
2013. In the event that holders elect to convert their 2026 notes in
connection with the redemption, the Company will satisfy its conversion
obligations to holders by paying cash equal to the $250 million in aggregate
principal amount of the 2026 notes and delivering shares of common stock in
settlement of any and all conversion obligations in excess of the principal
amount (provided that the Company will pay cash in lieu of issuing fractional
shares). If holders elect to convert their 2026 notes, the counterparties to
the previously disclosed convertible note hedge transactions entered into in
2006 concurrently with the pricing of the 2026 notes will deliver common stock
that will reduce or prevent equity dilution that would otherwise result from
the conversion. The Company expects to meet any cash payment obligations
related to the redemption or conversion with cash currently on-hand.

As previously disclosed, in addition to the convertible note hedge
transactions entered into in 2006, the Company entered into separate warrant
transactions, or warrants, whereby it sold to the counterparties warrants to
acquire, subject to customary anti-dilution adjustments, approximately 4.5
million shares of the Company's common stock at a strike price equal to $62.59
per share of common stock. On exercise of the warrants, the Company has the
option to deliver cash or shares of its common stock equal to the difference
between the then-market price and strike price per share of common stock. The
warrants expire in a series of tranches beginning February 13, 2014 through
the 30^th trading day thereafter.

Future Outlook

Based on the key assumptions outlined below and in the attached data tables,
the following statements reflect management's current expectations regarding
future operating results and certain events. These statements are
forward-looking and actual results may differ materially given the volatility
inherent in the Company's industry. Other than as expressly stated, these
statements do not include the potential impact of any additional future
long-term contract repositioning voyages; unexpected vessel repairs or
shipyard delays; or future capital transactions, such as vessel acquisitions
or divestitures, business combinations, financings or the unannounced
expansion of existing newbuild programs that may be commenced after the date
of this disclosure. As a result of the sale of substantially all of the
Company's Downstream assets, the Forward Guidance information presented below
only reflects details for the continuing operations of the Upstream
segment.Additional cautionary information concerning forward-looking
statements can be found on page 11 of this news release.

Forward Guidance for Continuing Operations

Vessel Counts. As of September 30, 2013, excluding four inactive non-core
vessels, the Company's operating fleet consisted of 50 new generation OSVs and
four MPSVs. The forecasted Upstream vessel counts presented in this press
release reflect the anticipated fourth quarter 2013 and fiscal 2014 OSV
newbuild deliveries discussed below. The Company's active Upstream Fleet for
fiscal years 2013 and 2014 is expected to be comprised of an average of 50.8
and 60.7 new generation OSVs, respectively. For fiscal 2013, the active new
generation OSVs are comprised of an average of 24.9 "term" vessels that are
currently chartered on long-term contracts and an average of 25.6 "spot"
vessels that are currently operating or being offered for service under
short-term charters. The Company expects to operate a total of four MPSVs in
each of the fiscal years 2013 and 2014.

Contract Coverage.  The Company's forward contract coverage for its current
and projected fleet of active new generation OSVs for the fourth quarter of
2013 and for fiscal 2014 is currently 77% and 34%, respectively. The Company's
forward contract coverage for its four MPSVs for the fourth quarter of 2013
and for fiscal 2014 is currently 83% and 47%, respectively. These contract
backlog percentages are based on available vessel-days for the guidance
periods, not estimated revenue.

Effective Dayrates. Effective, or utilization-adjusted, new generation OSV
dayrates for the Company's projected average of 24.9 active "term" OSVs are
expected to be in the $21,000 to $22,000 range for the full-year 2013. This
range does not reflect the incremental impact of any revenue expected to be
derived in fiscal 2013 from the Company's "spot" OSVs. The Company does not
provide annual guidance regarding the effective dayrates anticipated for its
"spot" new generation OSVs due to the wide range of potential outcomes of its
current domestic and international bidding activity for such vessels. Improved
market conditions have allowed the Company to maintain leading-edge spot
dayrates for its high-spec OSVs in the $38,000 to $45,000 range, up from
$30,000 to $36,000 for the first nine months of 2012. Whether these rates can
be sustained will depend on a variety of factors, including the pace of
permitting, the future rig count and the timing of anticipated drilling rig
and OSV newbuild deliveries in the GoM.

Operating Expenses.  Aggregate cash operating expenses are projected to be in
the range of $60.0 million to $63.0 million for the fourth quarter of 2013,
and $234.2 million to $237.2 million for the full-year 2013. This annual
guidance range includes roughly $2.5 million of total out-of-pocket costs,
down from a previously estimated $4.0 million, related to the remobilization
of four 240 class OSVs from Brazil back to the GoM. The cash operating
expense estimate above is exclusive of any additional repositioning expenses
the Company may incur that are not recoverable through charter hire in
connection with the potential relocation of more of its current spot and/or
stacked vessels into international markets or back to the GoM and any
customer-required cost-of-sales related to future contract fixtures that are
typically recovered through higher dayrates.

G&A Expenses.  General and administrative expenses are expected to be in the
approximate range of $13.5 million to $14.5 million for the fourth quarter of
2013, and $54.0 million to $55.0 million for the full-year 2013, commensurate
with the Company's pending fleet growth and international operations. The
Company expects to remain within the historical range of G&A-to-revenue
margins of its public OSV peer group.

Other Financial Data.  The projected annual loss on early extinguishment of
debt, depreciation, amortization, net interest expense, cash income taxes,
cash interest expense and weighted-average diluted shares outstanding for the
full-year 2013 are included in the attached data tables. Projected quarterly
depreciation, amortization, net interest expense, cash income taxes, cash
interest expense and weighted-average diluted shares outstanding for the
fourth quarter of 2013 are expected to be $14.6 million, $8.9 million, $7.7
million, $1.4 million, $13.4 million and 36.7 million, respectively. The
Company's annual effective tax rate is expected to be in the range of 36.0% to
37.0% for fiscal 2013.

Capital Expenditures Outlook

Update on OSV Newbuild Program #5.  The Company's fifth OSV newbuild program
consists of four 300 class OSVs, six 310 class OSVs, ten 320 class OSVs and
four 310 class MPSVs. As of October 30, 2013, the Company has placed two
vessels in-service under this program – one in June 2013 and one in October
2013. The 22 remaining vessels under this 24-vessel domestic newbuild program
are currently expected to be delivered in accordance with the table below:

                   2013  2014                    2015                    2016                    Total
                   4Q  1Q  2Q  3Q  4Q  1Q  2Q  3Q  4Q  1Q  2Q  3Q  4Q
Estimated

In-ServiceDates:
300 class OSVs     1     1     —     —     —     —     —     —     —     —     —     —     —     2
310 class OSVs     —     1     1     1     2     1     —     —     —     —     —     —     —     6
320 class OSVs     2     2     2     2     1     1     —     —     —     —     —     —     —     10
Total OSVs         3     4     3     3     3     2     —     —     —     —     —     —     —     18
310classMPSVs    —     —     —     —     —     —     —     1     1     —     1     —     1     4
Total Newbuilds    3     4     3     3     3     2     —     1     1     —     1     —     1     22

Based on the above schedule of projected vessel in-service dates, the Company
expects to own and operate 54, 67 and 69 new generation OSVs as of December
31, 2013, 2014 and 2015, respectively. These vessel additions result in a
projected average new generation OSV fleet complement of 50.8, 60.7 and 68.8
vessels for the fiscal years 2013, 2014 and 2015, respectively. Based on the
above schedule of projected vessel in-service dates, the Company expects to
own and operate four, four, six and eight MPSVs as of December 31, 2013, 2014,
2015 and 2016, respectively. These vessel additions result in a projected
average MPSV fleet complement of 4.0, 4.0, 4.8 and 7.1 vessels for the fiscal
years 2013, 2014, 2015 and 2016, respectively. The aggregate cost of the
Company's fifth OSV newbuild program, excluding construction period interest,
is expected to be approximately $1.24 billion, of which $490.0 million, $342.5
million, $108.7 million and $24.2 million is expected to be incurred in 2013,
2014, 2015 and 2016, respectively. From the inception of this program through
September 30, 2013, the Company has incurred $603.4 million, or 48.7%, of
total expected project costs, including $115.9 million that was spent during
the third quarter of 2013. The Company expects to incur approximately $161.1
million of newbuild-related project costs during the fourth quarter of 2013.

Update on Maintenance Capital Expenditures. Please refer to the attached data
table on page 14 of this press release for a summary, by period and by vessel
type, of historical and projected data for drydock downtime (in days) and
maintenance capital expenditures for each of the quarterly and/or annual
periods presented for the fiscal years 2013 and 2014. Maintenance capital
expenditures, which are recurring in nature, primarily include regulatory
drydocking charges incurred for the recertification of vessels and other
vessel capital improvements that extend a vessel's economic useful life. The
Company expects that its maintenance capital expenditures for its Upstream
fleet of vessels will be approximately $51.6 million and $44.3 million,
respectively, for the full-years 2013 and 2014, respectively. These
maintenance capital expenditure guidance figures have been adjusted downward
to reflect the impact of the sale of the Downstream assets in August 2013.

Update on Other Capital Expenditures. Please refer to the attached data
tables on page 14 of this press release for a summary, by period, of
historical and projected data for other capital expenditures, including the
200 Class OSV Retrofit Program described below, for each of the quarterly
and/or annual periods presented for the fiscal years 2013 and 2014. Other
capital expenditures, which are generally non-recurring, are comprised of the
following: (i) commercial-related vessel improvements, such as the addition of
cranes, ROVs, helidecks, living quarters and other specialized vessel
equipment, or the modification of vessel capacities or capabilities, such as
DP upgrades and mid-body extensions, which costs are typically included in and
offset, in whole or in part, by higher dayrates charged to customers; and (ii)
non-vessel related capital expenditures, including costs related to the
Company's shore-based facilities, leasehold improvements and other corporate
expenditures, such as information technology or office furniture and
equipment. In addition to the $50 million OSV retrofit program outlined below,
the Company expects miscellaneous incremental commercial-related vessel
improvements and non-vessel capital expenditures to be approximately $23.5
million and $28.0 million, respectively, for the full-years 2013 and 2014,
respectively. These other capital expenditure guidance figures have been
adjusted downward to reflect the impact of the sale of the Downstream assets
in August 2013.

200 Class OSV Retrofit Program. In September 2012, the Company awarded a
contract for the upgrading and stretching of six of the Company's Super 200
class DP-1 OSVs, converting them into 240 class DP-2 OSVs. The project costs
for these discretionary vessel modifications are expected to be approximately
$50.0 million, in the aggregate ($8.3 million each), and the Company expects
to incur approximately 799 vessel-days of aggregate commercial downtime for
the six vessels (roughly 133 vessel-days each), as follows:

                                2012A   1Q2013A 2Q2013A 3Q2013A 4Q2013E Total
200 Class OSV Retrofit Program:
Cash outlays (in millions)      $  2.3 $  4.2 $ 17.5  $ 15.9  $ 10.1  $ 50.0
Commercial downtime (in days)   21      180     220     217     161     799

Two vessels each were re-delivered to the Company in May and September 2013
and the current schedule projects re-deliveries of the last two vessels in
December 2013.

Liquidity Outlook

As of September 30, 2013, the Company had a cash balance of $797.8 million and
an undrawn $300 million revolving credit facility. Together with cash on-hand
and cash proceeds from the sale of non-core assets, the Company expects to
generate sufficient cash flow from operations to cover all of its growth
capital expenditures for the remaining 22 HOSMAX vessels under construction,
all of the capital costs related to its six-vessel 200 class OSV retrofit
program, the planned retirement in November 2013 of $250 million in aggregate
outstanding principal amount of its 1.625% convertible notes, and all of its
annually recurring cash debt service, maintenance capital expenditures and
cash income taxes through the completion of the newbuild and conversion
programs without ever having to use its currently undrawn revolving credit
facility.

Conference Call

The Company will hold a conference call to discuss its third quarter 2013
financial results and recent developments at 10:00 a.m. Eastern (9:00 a.m.
Central) tomorrow, October 31, 2013. To participate in the call, dial (480)
629-9692 and ask for the Hornbeck Offshore call at least 10 minutes prior to
the start time. To access it live over the Internet, please log onto the web
at http://www.hornbeckoffshore.com, on the "IR Home" page of the "Investors"
section of the Company's website at least fifteen minutes early to register,
download and install any necessary audio software. Please call the Company's
investor relations firm, Dennard-Lascar, at (713) 529-6600 to be added to its
e-mail distribution list for future Hornbeck Offshore news releases. An
archived version of the web cast will be available shortly after the call for
a period of 60 days on the "IR Home" page under the "Investors" section of the
Company's website. Additionally, a telephonic replay will be available through
November 7, 2013, and may be accessed by calling (303) 590-3030 and using the
pass code 4644190#.

Attached Data Tables

The Company has posted an electronic version of the following four pages of
data tables, which are downloadable in Microsoft Excel™ format, on the "IR
Home" page of the "Investors" section of the Hornbeck Offshore website for the
convenience of analysts and investors.

In addition, the Company uses its website as a means of disclosing material
non-public information and for complying with disclosure obligations under SEC
Regulation FD. Such disclosures will be included on the Company's website
under the heading "Investors—IR Home." Accordingly, investors should monitor
that portion of the Company's website, in addition to following the Company's
press releases, SEC filings, public conference calls and webcasts.

Hornbeck Offshore Services, Inc. is a leading provider of technologically
advanced, new generation offshore service vessels primarily in the U.S. Gulf
of Mexico and Latin America. Hornbeck Offshore currently owns a fleet of 59
vessels primarily serving the energy industry and has 22 additional high-spec
Upstream vessels under construction for delivery through 2016.

Forward-Looking Statements

This Press Release contains "forward-looking statements," as contemplated by
the Private Securities Litigation Reform Act of 1995, in which the Company
discusses factors it believes may affect its performance in the future.
Forward-looking statements are all statements other than historical facts,
such as statements regarding assumptions, expectations, beliefs and
projections about future events or conditions. You can generally identify
forward-looking statements by the appearance in such a statement of words like
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"forecast," "intend," "may," "might," "plan," "potential," "predict,"
"project," "remain," "should," "will," or other comparable words or the
negative of such words. The accuracy of the Company's assumptions,
expectations, beliefs and projections depends on events or conditions that
change over time and are thus susceptible to change based on actual
experience, new developments and known and unknown risks. The Company gives no
assurance that the forward-looking statements will prove to be correct and
does not undertake any duty to update them. The Company's actual future
results might differ from the forward-looking statements made in this Press
Release for a variety of reasons, including the effect of inconsistency by the
United States government in the pace of issuing drilling permits and plan
approvals in the GoM; the Company's inability to successfully complete its
fifth OSV newbuild program and its 200 class OSV retrofit program on-time and
on-budget, which involves the construction, conversion and integration of
highly complex vessels and systems; the inability to successfully market the
vessels that the Company owns, is constructing or might acquire; an oil spill
or other significant event in the United States or another offshore drilling
region that could have a broad impact on deepwater and other offshore energy
exploration and production activities, such as the suspension of activities or
significant regulatory responses; the imposition of laws or regulations that
result in reduced exploration and production activities or that increase the
Company's operating costs or operating requirements, including any such laws
or regulations that may yet arise as a result of the Deepwater Horizon
incident or the resulting drilling moratoria and regulatory reforms, as well
as the outcome of pending litigation brought by environmental groups
challenging exploration plans approved by the Department of Interior; less
than anticipated success in marketing and operating the Company's MPSVs
presently owned or under construction; bureaucratic, administrative or
operating barriers that delay vessels chartered in foreign markets from going
on-hire or result in contractual penalties or deductions imposed by foreign
customers; renewed weakening of demand for the Company's services; unplanned
customer suspensions, cancellations, rate reductions or non-renewals of vessel
charters or failures to finalize commitments to charter vessels; the impact of
planned sequester of federal spending pursuant to the Budget Control Act of
2011; industry risks; reductions in capital spending budgets by customers; a
material reduction of Petrobras' announced plans for or administrative
barriers to exploration and production activities in Brazil; sustained
declines in oil and natural gas prices; further increases in operating costs,
such as mariner wage increases; the inability to accurately predict vessel
utilization levels and dayrates; unanticipated difficulty in effectively
competing in or operating in international markets; less than anticipated
subsea infrastructure demand in the GoM and other markets; the level of fleet
additions by the Company and its competitors that could result in over
capacity in the markets in which the Company competes; economic and political
risks; weather-related risks; the shortage of or the inability to attract and
retain qualified personnel, including vessel personnel for active, unstacked
and newly constructed vessels; regulatory risks; the repeal or administrative
weakening of the Jones Act or changes in the interpretation of the Jones Act
related to the U.S. citizenship qualification; drydocking delays and cost
overruns and related risks; vessel accidents, pollution incidents, or other
events resulting in lost revenue, fines, penalties or other expenses that are
unrecoverable from insurance policies or other third parties; unexpected
litigation and insurance expenses; fluctuations in foreign currency valuations
compared to the U.S. dollar and risks associated with expanded foreign
operations, such as non-compliance with or the unanticipated effect of tax
laws, customs laws, immigration laws, or other legislation that result in
higher than anticipated tax rates or other costs or the inability to
repatriate foreign-sourced earnings and profits. In addition, the Company's
future results may be impacted by adverse economic conditions, such as
inflation, deflation, or lack of liquidity in the capital markets, that may
negatively affect it or parties with whom it does business resulting in their
non-payment or inability to perform obligations owed to the Company, such as
the failure of customers to fulfill their contractual obligations or the
failure by individual banks to provide funding under the Company's credit
agreement, if required. Should one or more of the foregoing risks or
uncertainties materialize in a way that negatively impacts the Company, or
should the Company's underlying assumptions prove incorrect, the Company's
actual results may vary materially from those anticipated in its
forward-looking statements, and its business, financial condition and results
of operations could be materially and adversely affected. Additional factors
that you should consider are set forth in detail in the "Risk Factors" section
of the Company's most recent Annual Report on Form 10-K as well as other
filings the Company has made and will make with the Securities and Exchange
Commission which, after their filing, can be found on the Company's website
www.hornbeckoffshore.com.

Regulation G Reconciliation

This Press Release also contains references to the non-GAAP financial measures
of earnings, or net income, before interest, income taxes, depreciation and
amortization, or EBITDA, and Adjusted EBITDA. The Company views EBITDA and
Adjusted EBITDA primarily as liquidity measures and, therefore, believes that
the GAAP financial measure most directly comparable to such measure is cash
flows provided by operating activities. Reconciliations of EBITDA and Adjusted
EBITDA to cash flows provided by operating activities are provided in the
table below. Management's opinion regarding the usefulness of EBITDA to
investors and a description of the ways in which management uses such measure
can be found in the Company's most recent Annual Report on Form 10-K filed
with the Securities and Exchange Commission, as well as in Note 8 to the
attached data tables.

Contacts: Todd Hornbeck, CEO
          Jim Harp, CFO
          Hornbeck Offshore Services
          985-727-6802
          Ken Dennard, Managing Partner
          Dennard-Lascar / 713-529-6600



Hornbeck Offshore Services, Inc. and Subsidiaries
Unaudited Consolidated Statements of Operations
(in thousands, except Other Operating and Per Share Data)
Statement of
Operations
(unaudited):
                       Three Months Ended               Nine Months Ended
                       September  June 30,   September  September  September
                       30,                   30,        30,        30,
                       2013       2013       2012       2013       2012
Revenues               $ 132,915  $ 137,811  $ 115,087  $ 403,252  $ 344,678
Costs and expenses:
Operating expenses     59,180     58,701     59,922     174,175    168,250
Depreciation and       22,436     20,908     18,289     62,763     54,292
amortization
General and
administrative         14,114     13,323     12,191     40,433     33,750
expenses
                       95,730     92,932     90,402     277,371    256,292
Gain (loss) on sale of 3          1,569      (357)      1,572      (360)
assets
Operating income       37,188     46,448     24,328     127,453    88,026
Other income
(expense):
Loss on early          -          (1,457)    -          (25,776)   (6,048)
extinguishment of debt
Interest income        681        668        524        1,926      1,538
Interest expense       (11,708)   (13,242)   (14,697)   (38,672)   (42,971)
Other income           (137)      93         (8)        (153)      323
(expense), net^1
                       (11,164)   (13,938)   (14,181)   (62,675)   (47,158)
Income before income   26,024     32,510     10,147     64,778     40,868
taxes
Income tax expense     8,228      12,238     3,970      22,787     15,596
Income from continuing 17,796     20,272     6,177      41,991     25,272
operations
Income from
discontinued           41,368     3,558      1,224      47,162     450
operations, net of tax
Net income             $ 59,164   $ 23,830   $ 7,401    $ 89,153   $ 25,722
Earnings per share
Basic earnings per
common share from      $ 0.49     $ 0.56     $ 0.18     $ 1.17     $ 0.72
continuing operations
Basic earnings per
common share from      1.15       0.10       0.03       1.32       0.01
discontinued
operations
Basic earnings per     $ 1.64     $ 0.66     $ 0.21     $ 2.49     $ 0.73
common share
Diluted earnings per
common share from      $ 0.49     $ 0.55     $ 0.17     $ 1.15     $ 0.70
continuing operations
Diluted earnings per
common share from      1.12       0.10       0.03       1.29       0.01
discontinued
operations
Diluted earnings per   $ 1.61     $ 0.65     $ 0.20     $ 2.44     $ 0.71
common share
Weighted average basic 36,038     35,864     35,384     35,841     35,276
shares outstanding
Weighted average
diluted shares         36,663     36,499     36,130     36,511     36,063
outstanding^2
Other Operating Data
(unaudited):
                       Three Months Ended               Nine Months Ended
                       September  June 30,   September  September  September
                       30,                   30,        30,        30,
                       2013       2013       2012       2013       2012
Offshore Supply
Vessels:
Average number of new  50.0       50.0       51.0       50.3       51.0
generation OSVs^3
Average number of
active new generation  50.0       49.4       48.9       49.8       47.9
OSVs^4
Average new generation
OSV fleet capacity     130,535    126,870    128,190    128,532    128,190
(deadweight)^3
Average new generation
OSV capacity           2,611      2,538      2,514      2,554      2,514
(deadweight)
Average new generation 80.7%      88.3%      79.5%      85.2%      82.9%
utilization rate^5
Average new generation $ 27,545   $ 26,079   $ 23,990   $ 26,225   $ 23,248
dayrate^6
Effective dayrate^7    $ 22,229   $ 23,028   $ 19,072   $ 22,344   $ 19,273
Balance Sheet Data
(unaudited):
                       As of      As of
                       September  December
                       30,        31,
                       2013       2012
Cash and cash          $ 797,784  $ 576,678
equivalents
Working capital        579,211    388,004
Property, plant and    2,000,890  1,643,623
equipment, net
Total assets           3,045,108  2,631,731
Total short-term debt  248,861    238,907
Total long-term debt   1,061,823  850,530
Stockholders' equity   1,269,901  1,165,845
Cash Flow Data
(unaudited):
                       Nine Months Ended
                       September  September
                       30,        30,
                       2013       2012
Cash provided by       $ 167,936  $ 98,754
operating activities
Cash used in investing (378,622)  (162,278)
activities
Cash provided by       187,538    332,461
financing activities

Hornbeck Offshore Services, Inc. and Subsidiaries
Unaudited Other Financial Data
(in thousands, except Financial Ratios)
Other Financial Data
(unaudited):
                       Three Months Ended               Nine Months Ended
                       September  June 30,   September  September  September
                       30,                   30,        30,        30,
                       2013       2013       2012       2013       2012
CONTINUING OPERATIONS:
Vessel revenues        $ 130,541  $ 136,607  $ 114,051  $ 398,585  $ 341,328
Non-vessel revenues    2,374      1,204      1,036      4,667      3,350
Total revenues         $ 132,915  $ 137,811  $ 115,087  $ 403,252  $ 344,678
Operating income       $ 37,188   $ 46,448   $ 24,328   $ 127,453  $ 88,026
Operating margin       28.0%      33.7%      21.1%      31.6%      25.5%
Components of EBITDA^8
Income from continuing $ 17,796   $ 20,272   $ 6,177    $ 41,991   $ 25,272
operations
Interest expense, net  11,027     12,574     14,173     36,746     41,433
Income tax expense     8,228      12,238     3,970      22,787     15,596
Depreciation           13,854     13,448     13,000     40,498     39,005
Amortization           8,582      7,460      5,289      22,265     15,287
EBITDA^8               $ 59,487   $ 65,992   $ 42,609   $ 164,287  $ 136,593
Adjustments to EBITDA
Loss on early          $ -        $ 1,457    $ -        $ 25,776   $ 6,048
extinguishment of debt
Stock-based            3,185      3,111      3,709      9,603      8,102
compensation expense
Interest income        681        668        524        1,926      1,538
Adjusted EBITDA^8      $ 63,353   $ 71,228   $ 46,842   $ 201,592  $ 152,281
EBITDA^8
Reconciliation to
GAAP:
EBITDA^8               $ 59,487   $ 65,992   $ 42,609   $ 164,287  $ 136,593
Cash paid for deferred (10,435)   (9,328)    (11,422)   (25,444)   (27,705)
drydocking charges
Cash paid for interest (12,284)   (13,667)   (10,378)   (40,216)   (28,755)
Cash paid for taxes    (1,394)    (1,372)    (235)      (3,319)    (964)
Changes in working     27,284     19,864     18,334     38,700     3,418
capital
Stock-based            3,185      3,111      3,709      9,603      8,102
compensation expense
Loss on early          -          1,457      -          25,776     6,048
extinguishment of debt
Changes in other, net  265        (1,575)    1,584      (1,451)    2,017
Net cash provided by   $ 66,108   $ 64,482   $ 44,201   $ 167,936  $ 98,754
operating activities
DISCONTINUED
OPERATIONS:
Revenues               $ 11,383   $ 16,512   $ 12,852   $ 42,885   $ 34,879
Operating income       65,181     5,715      1,964      74,485     732
Operating margin       572.6%     34.6%      15.3%      173.7%     2.1%
Components of EBITDA^8
Income from
discontinued           $ 41,368   $ 3,558    $ 1,224    $ 47,162   $ 450
operations
Interest expense, net  -          -          -          -          -
Income tax expense     23,813     2,157      743        27,325     283
Depreciation           1,004      1,965      2,124      5,083      6,372
Amortization           765        1,168      1,399      3,266      4,425
EBITDA^8               $ 66,950   $ 8,848    $ 5,490    $ 82,836   $ 11,530
Adjustments to EBITDA
Loss on early          $ -        $ -        $ -        $ -        $ -
extinguishment of debt
Stock-based            -          11         20         26         62
compensation expense
Interest income        -          -          -          -          -
Adjusted EBITDA^8      $ 66,950   $ 8,859    $ 5,510    $ 82,862   $ 11,592
EBITDA^8
Reconciliation to
GAAP:
EBITDA^8               $ 66,950   $ 8,848    $ 5,490    $ 82,836   $ 11,530
Cash paid for deferred (244)      (1,964)    (1,278)    (3,961)    (4,740)
drydocking charges
Cash paid for interest -          -          -          -          -
Cash paid for taxes    -          -          -          -          -
Changes in working     (1,996)    (411)      1,541      (2,829)    3,454
capital
Stock-based            -          11         20         26         62
compensation expense
Loss on early          -          -          -          -          -
extinguishment of debt
Changes in other, net  (60,046)   (30)       (624)      (60,076)   (624)
Net cash provided by   $ 4,664    $ 6,454    $ 5,149    $ 15,996   $ 9,682
operating activities

Hornbeck Offshore Services, Inc. and Subsidiaries
Unaudited Other Financial Data
Capital Expenditures and Drydock Downtime Data
from Continuing Operations (unaudited):
Historical Data:
                   Three Months Ended             Nine Months Ended
                   September  June     September  September  September
                   30,        30,      30,        30,        30,
                   2013       2013     2012       2013       2012
Drydock Downtime:
New-Generation
OSVs
Number of vessels
commencing drydock 6.0        7.0      6.0        15.0       19.0
activities
Commercial         194        224      135        476        436
downtime (in days)
MPSVs
Number of vessels
commencing drydock 1.0        -        -          1.0        1.0
activities
Commercial         33         -        -          33         37
downtime (in days)
Maintenance and
Other Capital
Expenditures (in
thousands):
Maintenance
Capital
Expenditures:
Deferred           $ 10,679   $ 9,328  $ 11,422   $ 25,444   $ 27,705
drydocking charges
Other vessel
capital            1,542      2,121    948        6,278      8,170
improvements
                   12,221     11,449   12,370     31,722     35,875
Other Capital
Expenditures:
200 class OSV      15,908     17,462   2,244      37,603     2,244
retrofit program
Commercial-related
vessel             872        1,554    1,138      2,491      2,640
improvements
Non-vessel related
capital            521        2,459    1,607      3,459      2,601
expenditures
                   17,301     21,475   4,989      43,553     7,485
                   $ 29,522   $        $ 17,359   $ 75,275   $ 43,360
                              32,924
Growth Capital
Expenditures (in
thousands):
OSV newbuild       $ 115,886  $        $ 66,636   $ 328,807  $ 144,646
program #5                    130,346
Forecasted
Data^(9):
                   1Q 2013A   2Q       3Q 2013A   4Q 2013E   2013E      2014E
                              2013A
Drydock Downtime:
New-Generation
OSVs
Number of vessels
commencing drydock 2.0        7.0      6.0        3.0        18.0       22.0
activities
Commercial         58         224      194        99         575        577
downtime (in days)
MPSVs
Number of vessels
commencing drydock -          -        1.0        1.0        2.0        2.0
activities
Commercial         -          -        33         50         83         60
downtime (in days)
Maintenance and
Other Capital
Expenditures (in
millions):
Maintenance
Capital
Expenditures:
Deferred           $ 5.5      $ 9.3    $ 10.4     $ 17.8     $ 43.0     $
drydocking charges                                                      41.2
Other vessel
capital            2.6        2.1      1.5        2.4        8.6        3.1
improvements
                   8.1        11.4     11.9       20.2       51.6       44.3
Other Capital
Expenditures:
200 class OSV      4.2        17.5     15.9       10.1       47.7       -
retrofit program
Commercial-related
vessel             0.1        1.5      0.9        17.1       19.6       24.0
improvements
Non-vessel related
capital            0.5        2.5      0.5        0.4        3.9        4.0
expenditures
                   4.8        21.5     17.3       27.6       71.2       28.0
                   $ 12.9     $ 32.9   $ 29.2     $ 47.8     $ 122.8    $
                                                                        72.3
Growth Capital
Expenditures (in
millions):
OSV newbuild       $ 82.6     $ 130.4  $ 115.9    $ 161.1    $ 490.0    $
program #5                                                              342.5

Hornbeck Offshore Services, Inc. and Subsidiaries
Unaudited Other Fleet and Financial Data
(in millions, except Average Vessels, Contract Backlog and Tax Rate)
Forward Guidance of
Selected Data from
Continuing Operations
(unaudited):
                 4Q 2013E  4Q 2013E  Full-Year   Full-Year  Full-Year
                                     2013E       2014E      2014E
                 Avg       Contract  Avg         Avg        Contract
                 Vessels   Backlog   Vessels     Vessels    Backlog
Fleet Data (as
of 30-Oct-2013):
Upstream
New generation   23.0      100%      24.9        20.0       89%
OSVs - Term^10
New generation   28.8      57%       25.6        40.7       7%
OSVs - Spot^11
New generation   -         0%        0.3         -          0%
OSVs - Stacked
New generation   51.8      77%       50.8        60.7       34%
OSVs - Total
New generation   4.0       83%       4.0         4.0        47%
MPSVs
Total Upstream   55.8                54.8        64.7
                 4Q 2013E Range      Full-Year 2013E Range
Cost Data:       Low^12    High^12   Low^12      High^12
Operating        $ 60.0    $ 63.0    $ 234.2     $ 237.2
expenses
General and
administrative   $ 13.5    $ 14.5    $ 54.0      $ 55.0
expenses
                 1Q 2013A  2Q 2013A  3Q 2013A    4Q 2013E   2013E      2014E
Other Financial
Data:
Gain on sale of  $ -       $ 1.6     $ -         $ -        $ 1.6      $ -
assets
Loss on early
extinguishment   24.3      1.5       -           -          25.8       -
of debt
Depreciation     13.2      13.4      13.9        14.6       55.1       70.9
Amortization     6.2       7.5       8.6         8.9        31.2       41.7
Interest
expense, net:
Interest expense $ 14.2    $ 15.1    $ 14.9      $ 14.6     $ 58.8     $54.8
Incremental
non-cash OID     5.6       5.5       5.6         3.4        20.1       9.5
interest
expense^13
Capitalized      (6.0)     (7.4)     (8.8)       (9.8)      (32.0)     (29.9)
interest
Interest income  (0.6)     (0.7)     (0.7)       (0.5)      (2.5)      (1.1)
Total interest   $ 13.2    $ 12.5    $ 11.0      $ 7.7      $ 44.4     $33.3
expense, net
Income tax rate  37.1%     37.6%     31.6%       38.5%      36.5%      37.0%
Cash income      $ 0.6     $ 1.4     $ 1.4       $ 1.4      $ 4.8      $ 2.9
taxes
Cash interest    14.3      13.7      12.3        13.4       53.7       50.6
expense^14
Weighted average
diluted shares   36.3      36.5      36.7        36.7       36.6       37.0
outstanding^15

^1 Represents other income and expenses, including equity in income from
investments and foreign currency transaction gains or losses.

^2 For the three and nine months ended September 30, 2013 and 2012 and the
three months ended June 30, 2013, the Company had no anti-dilutive stock
options. As of September 30, 2013, June 30, 2013, and September 30, 2012, the
1.625% convertible senior notes were not dilutive, as the average price of the
Company's stock was less than the effective conversion price of $62.59 for
such notes. As of September 30, 2013, June 30, 2013, and September 30, 2012,
the 1.500% convertible senior notes were not dilutive, as the average price of
the Company's stock was less than the effective conversion price of $68.53 for
such notes.

^3 The Company owned 50 new generation OSVs as of September 30, 2013, and
took delivery of one HOSMAX newbuild OSV in October 2013. Excluded from this
data is one stacked conventional OSV that the Company considers to be a
non-core asset. Also excluded from this data are four MPSVs owned and
operated by the Company.

^4 In response to weak market conditions, the Company elected to stack
certain of its new generation OSVs on various dates in 2009 and 2010. Due to
improved market conditions, the Company had reactivated all of its new
generation OSVs as of June 30, 2013. Active new generation OSVs represent
vessels that are immediately available for service during each respective
period.

^5 Average utilization rates are average rates based on a 365-day year.
Vessels are considered utilized when they are generating revenues.

^6 Average new generation OSV dayrates represent average revenue per day,
which includes charter hire, crewing services, and net brokerage revenues,
based on the number of days during the period that the OSVs generated
revenues.

^7 Effective dayrate represents the average dayrate multiplied by the
utilization rate for the respective period.

^8 Non-GAAP Financial Measure

The Company discloses and discusses EBITDA as a non-GAAP financial measure in
its public releases, including quarterly earnings releases, investor
conference calls and other filings with the Securities and Exchange
Commission. The Company defines EBITDA as earnings (net income) before
interest, income taxes, depreciation and amortization. The Company's measure
of EBITDA may not be comparable to similarly titled measures presented by
other companies. Other companies may calculate EBITDA differently than the
Company, which may limit its usefulness as a comparative measure.

The Company views EBITDA primarily as a liquidity measure and, as such,
believes that the GAAP financial measure most directly comparable to it is
cash flows provided by operating activities. Because EBITDA is not a measure
of financial performance calculated in accordance with GAAP, it should not be
considered in isolation or as a substitute for operating income, net income or
loss, cash flows provided by operating, investing and financing activities, or
other income or cash flow statement data prepared in accordance with GAAP.

EBITDA is widely used by investors and other users of the Company's financial
statements as a supplemental financial measure that, when viewed with GAAP
results and the accompanying reconciliations, the Company believes provides
additional information that is useful to gain an understanding of the factors
and trends affecting its ability to service debt, pay deferred taxes and fund
drydocking charges and other maintenance capital expenditures. The Company
also believes the disclosure of EBITDA helps investors meaningfully evaluate
and compare its cash flow generating capacity from quarter to quarter and year
to year.

EBITDA is also a financial metric used by management (i) as a supplemental
internal measure for planning and forecasting overall expectations and for
evaluating actual results against such expectations; (ii) as a significant
criteria for annual incentive cash bonuses paid to the Company's executive
officers and other shore-based employees; (iii) to compare to the EBITDA of
other companies when evaluating potential acquisitions; and (iv) to assess the
Company's ability to service existing fixed charges and incur additional
indebtedness.

In addition, the Company also makes certain adjustments, as applicable, to
EBITDA for losses on early extinguishment of debt, FAS 123R stock-based
compensation expense and interest income, or Adjusted EBITDA, to compute
ratios used in certain financial covenants of its credit agreements with
various lenders and bond investors. The Company believes that these ratios are
material components of such financial covenants and failure to comply with
such covenants could result in the acceleration of indebtedness or the
imposition of restrictions on the Company's financial flexibility.

Set forth below are the material limitations associated with using EBITDA as a
non-GAAP financial measure compared to cash flows provided by operating
activities.

  oEBITDA does not reflect the future capital expenditure requirements that
    may be necessary to replace the Company's existing vessels as a result of
    normal wear and tear,
  oEBITDA does not reflect the interest, future principal payments and other
    financing-related charges necessary to service the debt that the Company
    has incurred in acquiring and constructing its vessels,
  oEBITDA does not reflect the deferred income taxes that the Company will
    eventually have to pay once it is no longer in an overall tax net
    operating loss position, as applicable, and
  oEBITDA does not reflect changes in the Company's net working capital
    position.

Management compensates for the above-described limitations in using EBITDA as
a non-GAAP financial measure by only using EBITDA to supplement the Company's
GAAP results.

^9 The capital expenditure amounts included in this table are cash outlays
before the allocation of construction period interest, as applicable.

^10 As of October 30, 2013, the Company's active fleet of 23 new generation
OSVs that were committed to "term" contracts (time charters of one year or
longer in duration at inception) through the remainder of 2013 was comprised
of the following fleet mix: seven 200 class OSVs, fourteen 240 class OSVs and
two 300 class OSV.

^11 As of October 30, 2013, the Company's active fleet of 28 new generation
OSVs that were available for "spot" contracts (time charters of less than one
year in duration at inception) or additional "term" contracts was comprised of
the following fleet mix: ten 200 class OSVs, thirteen 240 class OSVs, four 265
class OSVs and one 300 class OSV.

^12 The "low" and "high" ends of the guidance ranges set forth in this table
are not intended to cover unexpected variations from currently anticipated
market conditions. These ranges provide only a reasonable deviation from the
conditions that are expected to occur.

^13 Represents incremental non-cash OID interest expense resulting from the
adoption of new accounting standards pertaining to the Company's convertible
senior notes effective January 1, 2009.

^14 Due to the change in timing of certain interest payment dates associated
with the Company's recent senior notes refinancing in March 2013, cash debt
service for fiscal 2013 is expected to be $53.7 million. However, commencing
in fiscal 2014, the Company expects to incur a full-year run-rate of cash debt
service in the amount of $50.6 million.

^15 Projected weighted-average diluted shares do not reflect any potential
dilution resulting from the Company's 1.625% or 1.500% convertible senior
notes. The Company's 1.625% and 1.500% convertible senior notes become
dilutive when the average price of the Company's stock exceeds the effective
conversion price for such notes of $62.59 and $68.53, respectively.

SOURCE Hornbeck Offshore Services, Inc.

Website: http://www.hornbeckoffshore.com