Hornbeck Offshore Announces Strategic Review of TTB Business

COVINGTON, La., June 6 /PRNewswire-FirstCall/ -- Hornbeck Offshore
Services, Inc. (NYSE: HOS) announced today that the Company has retained J.P.
Morgan Securities Inc. ("JPMorgan") to act as its financial advisor in a
thorough review of strategic alternatives for its downstream tug and tank
barge ("TTB") business. This review will consider possible alternatives
available to the Company for the TTB business, including: (i) potential
further growth by acquisitions, mergers or consolidations; (ii) potential
disposition or monetization of all or a portion of the Company's ownership
interests in the TTB business; (iii) other potential restructuring
transactions involving the use of a master limited partnership ("MLP")
structure; or (iv) maintaining the status quo.
Todd M. Hornbeck, the Company's Chairman, President and Chief Executive
Officer stated: "Given the substantial pending growth in our upstream fleet
over the next 24 months as a result of previously announced growth
initiatives, and absent any further growth in our TTB fleet, we currently
expect our overall business mix to shift from roughly 80-20 today to roughly
90-10 between our OSV and TTB segments, based on relative percentages of
current and pro forma operating cash flow, respectively. While our TTB
business has always been and continues to be a stable source of diversified
cash flow for our Company, we have hired JPMorgan to help us explore our
options with regard to this segment and to see if we can unlock additional
value for our shareholders. It is important to note that no decision has been
made yet. We simply want to run a disciplined process that would allow us to
make the best possible decision for the Company. We expect to announce
additional details regarding our plans for the TTB business later this year."
Hornbeck Offshore Services, Inc. is a leading provider of technologically
advanced, new generation offshore supply vessels primarily in the U.S. Gulf of
Mexico and select international markets, and is a leading transporter of
petroleum products through its fleet of ocean-going tugs and tank barges
primarily in the northeastern U.S., the U.S. Gulf of Mexico, the Great Lakes
and in Puerto Rico. Hornbeck Offshore currently owns a fleet of over 80
vessels primarily serving the energy industry.
Forward-Looking Statements Disclaimer
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," "intend,"
"may," "might," "plan," "potential," "predict," "forecast," "project,"
"should" or "will" or other comparable words or the negative of such words.
The accuracy of the Company's assumptions, expectations, beliefs and
projections depend 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, which
include: activity levels in the energy markets; the strength of the global
economy in general and the strength of the economies of the countries in which
the Company conducts its operations in particular; that a strategic
transaction involving the TTB business may not occur at all or within the
expected timeframe or may occur on terms and conditions that are less
favorable than expected; further weakening of demand for conventional OSVs
and/or TTB services; that the TTB business will continue to be a stable source
of cash flow; the ability to maintain the Company's reputation and promote its
vessels and services; the Company's inability to successfully and timely
complete its various upstream vessel construction and conversion programs,
especially its MPSV program, which involves the construction and integration
of highly complex vessels and systems; less than anticipated success in
marketing and operating its MPSVs, which are a class of vessels that the
Company has not previously owned or operated; unplanned customer suspensions,
cancellations or non-renewals of vessel charters; industry risks; changes in
capital spending budgets by customers; fluctuations in oil and natural gas
prices; variations in demand for vessel services; increases in operating
costs; the inability to accurately predict vessel utilization levels and
dayrates; less than anticipated subsea infrastructure demand activity in the
GoM and other markets; the level of fleet additions by competitors that could
result in over-capacity; economic and political risks; weather related risks;
the ability to attract and retain qualified marine personnel; regulatory
risks; the repeal or administrative weakening of the Jones Act; drydocking
delays and cost overruns and related risks; vessel accidents; unexpected
litigation and insurance expenses; fluctuations in foreign currency valuations
compared to the U.S. dollar and risks associated with expanded foreign
operations. Should one or more of the foregoing risks or uncertainties
materialize, 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 the Company's 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 with the Securities and Exchange
Commission which can be found on the Company's website
www.hornbeckoffshore.com.

Contacts: Todd Hornbeck, CEO
Jim Harp, CFO
Hornbeck Offshore Services
985-727-6802

Ken Dennard, Managing Partner
DRG&E / 713-529-6600

SOURCE Hornbeck Offshore Services, Inc.

Todd Hornbeck, CEO, or Jim Harp, CFO, both of Hornbeck Offshore Services,
+1-985-727-6802, or Ken Dennard, Managing Partner, DRG&E, +1-713-529-6600, for
Hornbeck Offshore Services