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shadow Hornbeck Offshore

History

"At Hornbeck Offshore, the term 'new generation' doesn’t just refer to the Company’s fleet of vessels, but also describes its mariners and managers.  However, like any entrepreneurial success story, it began with the vision of its leader and founders and, in this case, was built upon the strong foundation and heritage of a 'first generation' that preceded it."

In 1980, after managing a publicly traded, multinational offshore marine services vessel company for 11 years, Larry Hornbeck launched his own vision of success by founding the original Hornbeck Offshore Services, Inc. in Galveston, Texas.  One year later, he took the company public on the NASDAQ and traded under the symbol “HOSS.”  Larry’s son Todd, at the time only 12 years old, took an early interest in learning the boat business at his father’s side.  Summer jobs on the vessels, in the shipyards and around the office laid a foundation for his future in the industry.

Over the next 16 years, HOSS grew through new construction and seven acquisitions into the second largest offshore services vessel fleet in the U.S. Gulf of Mexico with over 100 vessels operating worldwide.  HOSS was merged into Tidewater in 1996, however, Larry wisely retained the rights to the company name and logo to pass on to the next generation.

When HOSS started, there were about 67 boat companies in the Gulf of Mexico (GoM).  But due to a long down-cycle in the 1980’s, most of HOSS’s competitors didn’t make it to the 1990’s.  By 1991, there were only about 16 OSV companies left in the GoM.  HOSS not only survived, it prospered and strong relationships were built.  With the support and confidence of its customers, employees, vendors, bankers and investors, HOSS emerged to become one of the most successful marine service providers of the 1990’s.

Along the way, Todd Hornbeck was learning his own lessons.  In 1991, Todd joined his dad full-time at HOSS and eventually became involved with every aspect of the commercial side of the business.  Todd closely monitored all of the acquisitions that HOSS completed during the 1990’s, as well as its international expansion.  Working from the bottom up, from deckhand to marketing executive, Todd learned the fundamentals of the boat business and what was required to lead a successful company.

Like his father, Todd’s entrepreneurial spirit called him to leave Tidewater after the merger.  Recognizing that a customer need wasn’t fully being met, he left to form a new company that would construct a “new generation” of OSVs designed to service the then-emerging deepwater trend in the GoM.  The new Hornbeck Offshore Services, Inc. was co-founded by Todd in New Orleans, Louisiana in 1997.  In 2004, it was listed on the NYSE where it trades under the symbol “HOS.”

Like HOSS, the new company was started “from scratch.”  But, unlike HOSS, it inherited the advantage of the Hornbeck legacy.  The Hornbeck name and reputation, both in the “oil patch” and on “Wall Street,” was instrumental in opening doors for the new company.  But to make sure it could step through those doors and be able to live up to that legacy, Todd began assembling a first-class team to lead HOS into the next generation.

The new Hornbeck Offshore management team was developed, one key person at a time; each of them marked by a common passion for the boat business, tempered by a lifetime of experience and first-hand knowledge of how to manage and market the volatile cycles of the oilfield industry.  They believed they could build a “better mouse-trap,” a new generation of vessel capable of servicing the offshore energy industry well into the 21st century.

The guiding principles, business philosophies and marketing strategies learned during the HOSS years were brought to bear, as the new team began to develop the foundation upon which it would operate.  In addition, out of a strong sense of mutual respect, many of the long-standing relationships that Larry and Todd had forged with customers, employees, vendors, bankers and investors over the years, stepped up to support HOS in its infancy and are still very much involved with the Company today.

History Timeline:


HOS newco founded by Todd M. Hornbeck with $1m seed capital

June 1997

HOS newco founded by Todd M. Hornbeck with $1m seed capital
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HOS newco founded by Todd M. Hornbeck with $1m seed capital

Prior to forming HOS, Mr. Hornbeck worked for the original Hornbeck Offshore Services, Inc., from 1991 to 1996, serving in various positions relating to business strategy and development. Following its merger with Tidewater Inc. (NYSE:TDW) in March 1996, he accepted a position as Marketing Director—Gulf of Mexico with Tidewater, where his responsibilities included managing relationships and overall business development in the U.S. Gulf of Mexico region. 

HOS newco and LEEVAC Marine merged to form HV Marine Services, Inc.

June 1997

HOS newco and LEEVAC Marine merged to form HV Marine Services, Inc.
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HOS newco and LEEVAC Marine merged to form HV Marine Services, Inc.

HV Marine Services, Inc. was founded by joining the assets and technical and management expertise of two well-established and respected names in the industry, LEEVAC Marine, Inc. and Hornbeck Offshore Services to create the next generation marine company. 

Issued $5m in private equity

August 1997

Issued $5m in private equity

Issued $5m in private equity

Carl G. Annessa joins HOS

September 1997

Carl G. Annessa joins HOS
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Carl G. Annessa joins HOS

Carl G. Annessa was appointed Executive Vice President in February 2005. Prior to that time, Mr. Annessa served as our Vice President of Operations beginning in September 1997. In February 2002, he was appointed Vice President and Chief Operating Officer. Mr. Annessa is responsible for operational oversight and design and implementation of our vessel construction programs. Prior to joining us, he was employed for 17 years by Tidewater Inc. (NYSE:TDW) in various technical and operational management positions, including management of large fleets of offshore supply vessels in the Arabian Gulf, Caribbean and West African markets, and was responsible for the design of several of Tidewater’s vessels. Mr. Annessa was employed for two years by Avondale Shipyards, Inc. as a naval architect before joining Tidewater. Mr. Annessa received a degree in naval architecture and mechanical engineering from the University of Michigan in 1979. 

Launched 1st OSV Newbuild Program

November 1997

Launched 1st OSV Newbuild Program
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Launched 1st OSV Newbuild Program

The first OSV newbuild program was originally comprised of seven 200 class DP-1 new generation OSVs, which were double the DWT and triple the liquid mud carrying capacity of the standard conventional vessels that were the norm in the industry at the time. Based on ever increasing customer demand for larger volumes, the last two vessels in the program were modified to include a 40’ plug to enhance carrying capacities. The 200 class DP-1 vessels delivered under this program included the HOS Crossfire, HOS Super H, HOS Dakota, HOS Thunderfoot and HOS Brigadoon. The 240 class DP-1 vessels delivered under this program included the HOS Deepwater and HOS Cornerstone. 

Issued $20m sub debt + warrants

June 1998

Issued $20m sub debt + warrants

Issued $20m sub debt + warrants

Entered TTB market in Puerto Rico

March 1999

Entered TTB market in Puerto Rico

Entered TTB market in Puerto Rico

Changed name to HORNBECK-LEEVAC Marine Services, Inc.

June 1999

Changed name to HORNBECK-LEEVAC Marine Services, Inc.

Changed name to HORNBECK-LEEVAC Marine Services, Inc.

Launched 2nd OSV newbuild program; introduced first DP-2 OSVs to domestic GoM

June 2000

Launched 2nd OSV newbuild program; introduced first DP-2 OSVs to domestic GoM
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Launched 2nd OSV newbuild program; introduced first DP-2 OSVs to domestic GoM

The second OSV newbuild program was comprised of two 240E class DP-2 new generation OSVs and four 270 class DP-2 new generation OSVs.  The HOS Innovator, the initial vessel delivered under this program, was the first U.S.-flagged OSV to be certified DP-2.  The 240E class DP-2 vessels delivered under this program included the HOS Innovator and the HOS Dominator.  The 270 class DP-2 vessels delivered under this program included the BJ Blue Ray, HOS Brimstone, HOS Stormridge and HOS Sandstorm. 

Issued $35m in private equity

November 2000

Issued $35m private equity

Issued $35m in private equity

James O. Harp Jr. joins HOS

January 2001

James O. Harp Jr. joins HOS
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James O. Harp Jr. joins HOS

James O. Harp, Jr. was appointed Executive Vice President in February 2005. Prior to that time, Mr. Harp served as our Vice President and Chief Financial Officer beginning in January 2001. Before joining us, Mr. Harp served as Vice President in the Energy Group of RBC Dominion Securities Corporation, an investment banking firm, from August 1999 to January 2001, and as Vice President in the Energy Group of Jefferies & Company, Inc., an investment banking firm, from June 1997 to August 1999. During his investment banking career, Mr. Harp worked extensively with marine-related oil service companies, including as our investment banker in connection with our private placement of common stock in November 2000. From July 1982 to June 1997, he held roles of increasing responsibility in the tax section of Arthur Andersen LLP, ultimately serving as a Tax Principal, and had a significant concentration of international clients in the oil service and maritime industries. Since April 1992, he has also served as Treasurer and Director of SEISCO, Inc., a privately held seismic brokerage company that he co-founded. Mr. Harp is an inactive certified public accountant in Louisiana.

Entered deepwater ROV subsea OSV specialty market

April 2001

Entered deepwater ROV subsea OSV specialty market
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Entered deepwater ROV subsea OSV specialty market

Upon delivery of the HOS Innovator, the vessel was immediately placed in service under a term contract with a large oilfield service company.  Outfitted with an offshore crane and ROV package, the HOS Innovator was the initial expansion into the production-oriented, deepwater specialty service sector.  Due to the success of the HOS Innovator, the second 240E class vessel delivered under OSV Newbuild Program #2, the HOS Dominator, was awarded a term contract with the same oilfield service company to operate as a deepwater specialty service vessel.

Acquired TTB fleet from Amerada Hess

May 2001

Acquired TTB fleet from Amerada Hess
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Acquired TTB fleet from Amerada Hess

In May 2001, we added nine ocean-going tugs and nine ocean-going tank barges through the transformational acquisition of the Spentonbush/Red Star Fleet from affiliates of Amerada Hess for $28 million in cash.  As part of the acquisition, Amerada Hess entered into a long-term contract of affreightment (“COA”) pursuant to which Amerada Hess committed to use HOS as its exclusive marine logistics provider and transporter of liquid petroleum products in the northeastern U.S., committing to ship a minimum of 45mm barrels of refined products annually through March 2006.  In addition to significantly expanding our fleet capacity, the concurrent five-year COA with Amerada Hess provided the TTB Segment immediate market scale in the northeast U.S.  Under the contract, we were also entitled to coordinate marine logistics for Amerada Hess in the southeastern U.S.

Issued $175m in senior notes

July 2001

Issued $175m senior notes
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Issued $175m in senior notes

In July 2001, we issued $175 million in senior unsecured notes with a coupon of 10.625%.  Moody’s and Standard & Poors assigned a B1/B+ rating to the notes and a B1/B+ senior corporate rating, each with a stable rating outlook.  The bonds were used to refinance all of our existing debt and fund payments for newbuild vessels.

Terrorist attacks

September 2001

Terrorist attacks

Terrorist attacks

Issued $15m in private equity and concurrent $15m warrant buy-back

October 2001

Issued $15m in private equity and concurrent $15m warrant buy-back
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Issued $15m in private equity and concurrent $15m warrant buy-back

In October 2001, we completed the purchase of all outstanding warrants for an aggregate purchase price of $14.5 million.  The repurchase of the warrants was financed through the successful offering of $14.6 million of common stock.

Entered deepwater well simulation OSV specialty market

November 2001

Entered deepwater well stimulation OSV specialty market
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Entered deepwater well simulation OSV specialty market

Upon delivery of the BJ Blue Ray, a 270 class OSV, the vessel was immediately placed into service to support well stimulation services, primarily in the Gulf of Mexico. The BJ Blue Ray, later renamed the HOS Ridgewind, was the first U.S. flagged OSV ever to be given a special Well Stimulation certificate by the ABS.

Launched 3rd OSV Newbuild Program

April 2002

Launched 3rd OSV Newbuild Program 
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Launched 3rd OSV Newbuild Program

In response to the increasing needs of our customers operating in the deepwater market, we launched our third OSV newbuild program comprised of four 240ED class DP-2 new generation OSVs. Our in-house team of naval architects and engineers improved upon previous proprietary designs to construct a more versatile vessel, increasing deadweight capacity and adding additional service functionalities. Vessels delivered under this program included the HOS Bluewater, HOS Gemstone, HOS Greystone, and HOS Silverstar.

John S. Cook joins HOS

May 2002

John S. Cook joins HOS
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John S. Cook joins HOS

John S. Cook was appointed Senior Vice President in May 2008. Mr. Cook was designated an executive officer and appointed a Vice President in February 2006. Mr. Cook has also served as our Chief Information Officer since May 2002. Before joining us, Mr. Cook held roles of increasing responsibility in the business consulting section of Arthur Andersen LLP from January 1992 to May 2002, ultimately serving as a Senior Manager. During his consulting career, Mr. Cook assisted numerous marine and energy service companies in various business process and information technology initiatives, including strategic planning and enterprise software implementations. Mr. Cook is a certified public accountant in Louisiana and is a member of the American Institute of Certified Public Accountants and the Society of Louisiana Certified Public Accountants and is a Certified Information Systems Auditor.

Changed name to Hornbeck Offshore Services, Inc.

June 2002

Changed name to Hornbeck Offshore Services, Inc.
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Changed name to Hornbeck Offshore Services, Inc.

The Company name was changed from Hornbeck-Leevac Marine Services to Hornbeck Offshore Services, Inc. Concurrently, the name of the Company’s tug and tank barge business was also changed to Hornbeck Offshore Transportation, LLC.
Entered international OSV market in Trinidad

August 2002

Entered international OSV market in Trinidad
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Entered international OSV market in Trinidad

In response to increased customer requests for equipment in non-U.S. waters, we announced international expansion of OSV operations into Trinidad. Given the geographic proximity of Trinidad to OSV operations in the GoM and tank barge operations in Puerto Rico, Trinidad was a logical next step for us to penetrate new oil and gas markets within the western hemisphere. The HOS Thunderfoot and the HOS Cornerstone were contracted with a major oil company and commenced operations after mobilization.

Acquired OSV vessels from Candy Fleet

July 2003

Acquired OSV vessels from Candy Fleet
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Acquired OSV vessels from Candy Fleet

In order to expand our service offering to clients, particularly those drilling deep wells on the Continental Shelf, we acquired six 220 class new generation OSVs for $54 million in cash and equity from Candy Marine Investment Corporation, an affiliate of Candy Fleet Corporation, a privately held marine vessel operator in the Gulf of Mexico. The six acquired vessels were renamed the HOS Mariner, HOS Voyager, HOS Express, HOS Explorer, HOS Pioneer, and HOS Trader. Two of the six acquired vessels, the HOS Mariner and the HOS Express, have since been sold.

Issued $30m private equity

July 2003

Issued $30m private equity

Issued $30m private equity

Expanded international OSV operations in Mexico

August 2003

Expanded international OSV operations in Mexico
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Expanded international OSV operations in Mexico

After evaluating additional opportunities to position deepwater OSVs in targeted markets outside the U.S. GoM, we expanded international OSV operations by securing a two year service contract with PEMEX, our first charter in Mexico. The HOS Deepwater was mobilized to Mexico retaining its U.S. flag status for the duration of the charter, which would allow us to return the vessel to Jones Act Service in the GoM.

Launched 1st TTB Newbuild Program

November 2003

Launched 1st TTB newbuild program
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Launched 1st TTB Newbuild Program

As customer interest shifted from single-hulled barges to double-hulled barges, we elected to develop and expand the existing TTB fleet based on a proprietary design. Initially, the program consisted of a plan to build two new double-hulled tank barges with options for up to eight and to retrofit certain existing vessels, which addressed the phasing out of single-hulled tank barges required by OPA ‘90. We expanded the program from two newbuild barges to five and correspondingly purchased and retrofitted four tugs to complement the program. The vessels ranged from 110,000 barrels to 135,000 barrels and were specifically designed to maximize speed, storage capacities and pumping rates. Vessels delivered under this program included the Energy 13501, Energy 13502, Energy 11103, Energy 11104, Energy 11105, Eagle Service, Freedom Service, Liberty Service, and the Patriot Service.

Samuel A. Gilberga joins HOS

December 2003

Samuel A. Gilberga joins HOS
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Samuel A. Gilberga joins HOS

Samuel A. Giberga was appointed Executive Vice President in June 2011. Prior to that time, Mr. Giberga served as our Senior Vice President beginning in February 2005. Mr. Giberga has also served as our General Counsel since January 2004 and our Chief Compliance Officer since June 2011. Prior to joining us, Mr. Giberga was engaged in the private practice of law for fourteen years. Mr. Giberga was a partner in the New Orleans based law firm of Correro, Fishman, Haygood, Phelps, Walmsley & Casteix from February 2000 to December 2003 and served as a partner at Rice, Fowler, Kingsmill, Vance & Flint, LLP from March 1996 to February 2000. During his legal career, Mr. Giberga has worked extensively with marine and energy service companies in a variety of contexts with a significant concentration in general business, international and intellectual property matters. He was also a co-founder of Maritime Claims Americas, L.L.C., which operates a network of correspondent offices for marine protection and indemnity associations throughout Latin America. From June 2005 through February 2007, Mr. Giberga served as a director of the American Steamship Owners Mutual Protection and Indemnity Association Inc. (the American Club), a mutual protection and indemnity association in which the Company’s principal operating subsidiaries were then entered as members. Mr. Giberga also served as an adjunct professor in intellectual property law matters at Loyola University Law School in New Orleans.

Completed a $78m initial public offering on NYSE

March 2004

Completed a $78m initial public offering on NYSE
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Completed a $78m initial public offering on NYSE

On March 25, 2004, HOS became a publicly traded company by successfully completing an initial public offering of six million shares of common stock at an issuance price $13 per share, resulting in total gross proceeds of $78 million.  Subsequently and as part of the terms and provisions of our underwriting agreement, we issued an additional 126,400 shares of common stock to our underwriters which resulted in gross proceeds of $1.6 million. The proceeds of the offering were primarily used to pay off the balance of our revolving credit agreement.

Added to Russell 2000 Index

June 2004

Added to Russell 2000 Index

Added to Russell 2000 Index

Upgraded to BB by S&P

August 2004

Upgraded to BB by S&P

Upgraded to BB by S&P

Upgraded to Ba3 by Moody’s

November 2004

Upgraded to Ba3 by Moody's

Upgraded to Ba3 by Moody’s

Issued $225m in senior notes

November 2004

Issued $225m in senior notes 
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Issued $225m in senior notes

In November 2004, we issued $225 million in senior unsecured notes due 2014 with a coupon 6.125% and spread to treasury of 198 bps, a record in the history of oil service “high yield” transactions.  The majority of proceeds were used to repurchase our outstanding 10.625% senior notes due 2008.

Acquired two new generation 240 class AHTS vessels from a private owner

January 2005

Acquired two new generation 240 class AHTS vessels from a private owner
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Acquired two new generation 240 class AHTS vessels from a private owner

The HOS Saylor and later the HOS Navegante, two foreign-flagged sister vessels with anchor- handling capabilities, were acquired for $25 million and marketed as supply vessels and for towing jack-up rigs.

Launched MPSV program

May 2005

Launched MPSV program
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Launched MPSV program

The MPSV program initially consisted of the conversion and retrofit of two coastwise sulfur tankers into U.S.-flagged, new generation 370-foot multi-purpose supply vessels (MPSVs). The HOS 370 was the culmination of a three-year effort by our in-house engineering team to design a multi-purpose supply vessel to meet the expressed demand for a larger, more versatile, DP-2 vessel capable of meeting the evolving needs of the exploration, development and production life-cycle of an ultra-deepwater field from ‘cradle-to-grave.’ In addition to traditional offshore supply vessel capabilities, the HOS 370 was designed to support offshore construction, subsea well intervention, ROV operations, pipeline commissioning, pipe-hauling and flotel services. The MPSVs delivered under this program included the HOS Centerline and HOS Strongline, the two largest, most flexible DP-2 class offshore vessels in the world today.

Hurricane Katrina hits the Gulf Coast

August 2005

Hurricane Katrina hits the Gulf Coast

Hurricane Katrina hits the Gulf Coast

Hurricane Rita hits the Gulf Coast

September 2005

Hurricane Rita hits the Gulf Coast

Hurricane Rita hits the Gulf Coast

Launched 2nd TTB Newbuild Program

September 2005

Launched 2nd TTB Newbuild Program
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Launched 2nd TTB Newbuild Program

In September 2005, we launched our second TTB newbuild program, comprised of three 60,000 barrel double-hulled barges as well as the acquisition and retrofit of four ocean-going tugs. Vessels delivered under this program included the Energy 6506, Energy 6507, Energy 6508, Michigan Service, Huron Service, Superior Service and the Erie Service.
Launched 4th OSV Newbuild Program

September 2005

Launched 4th OSV Newbuild Program
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Launched 4th OSV Newbuild Program

The Company’s fourth OSV newbuild program consisted of vessel construction contracts with three domestic shipyards to build sixteen DP-2 vessels.  Originally, we contracted to construct four 240EDF class vessels, which was an adaptation of our proprietary 240ED design with modifications that allow for faster transit speeds. This design was later enhanced to extend the length of the vessel to 250 feet and named our 250EDF class.  The program was ultimately expanded to include nine 250EDF vessels, six 240ED vessels and added a one 290 class vessel, the HOS Coral, a newbuild contract inherited with the acquisition of the Sea Mar fleet in August of 2007.  The six 240ED class OSVs delivered under this program included the HOS Polestar, HOS Shooting Star, HOS North Star, HOS Lodestar, HOS Silver Arrow and the HOS Sweet Water. The nine 250EDF class OSVs delivered under this program included the HOS Arrowhead, HOS Black Powder, HOS Eagleview, HOS Mystique, HOS Pinnacle, HOS Resolution, HOS Westwind, HOS WIldwing, and HOS Windancer. The 290 class OSV delivered was the HOS Coral.

$216m follow-on public equity offering + $75m “tack-on” of senior notes

October 2005

$216m follow-on public equity offering + $75m "tack-on" of senior notes
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$216m follow-on public equity offering + $75m “tack-on” of senior notes

In October 2005, we completed a follow-on equity offering of 6,100,000 shares of common stock at a price of $35.35 per share for total gross proceeds of approximately $216 million before underwriting discounts, commissions and offering expenses. Concurrently, we issued an additional $75 million of our 6.125% senior notes due 2014. The proceeds from both transactions were used to fund the construction of vessels for our three on-going newbuild programs.

Entered deepwater well test market with TTB assets

December 2005

Entered deepwater well test market with TTB assets
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Entered deepwater well test market with TTB assets

The Company levered our expertise and experience in the OSV segment to access a new market for our double-hulled tank barges by using them to perform production well test services for OSV customers in the deepwater Gulf of Mexico.

Acquired HOS Port from ASCO

December 2005

Acquired HOS Port from ASCO
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Acquired HOS Port from ASCO

To support our rapidly expanding OSV operations in the Gulf of Mexico and to support customers’ logistics requirements, we acquired a shore based facility located in Port Fourchon, Louisiana for approximately $5.0 million and renamed it HOS Port.
Awarded military support service contracts for four OSVs

February 2006

Awarded military support service contracts for four OSVs
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Awarded military support service contracts for four OSVs

The Company was awarded long-term contracts with the military for four 240ED class vessels which were later replaced by four 250EDF class vessels constructed under OSV Newbuild Program #4. The vessels serve as escorts for the U.S.’ nuclear submarine program on both the Pacific and Atlantic coasts.
First marine company to grant RSUs to mariners

August 2006

First marine company to grant RSUs to mariners

First marine company to grant RSUs to mariners

$250m convertible senior notes + $63m stock buy-back

November 2006

$250m convertible senior notes +$63m stock buy-back
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$250m convertible senior notes + $63m stock buy-back

On November 13, 2006, we issued $250 million in senior convertible notes with an initial coupon of 1.625% per year due 2026 for net proceeds of $242.8 million. To limit the exposure of HOS stockholders in the event of future conversion of the notes, a small share of the proceeds was used to fund a convertible note hedge transaction. In addition, we used $63 million of the net proceeds to repurchase 1.8 million shares of common stock.

Expanded MPSV program with 1st DP-3 vessel

May 2007

Expanded MPSV program with 1st DP-3 vessel
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Expanded MPSV program with 1st DP-3 vessel

In May 2007, we expanded our MPSV program to include one 430-ft. new generation DP-3 MPSV,the HOS Iron Horse, to be constructed at a European shipyard. The vessel was developed to meet the specific demands of our deepwater exploration and production customers and designed to support inspection, maintenance, repair, diving and construction activities. The 8,000 dwt vessel is equipped with two cranes, a helideck, and a moon pool with accommodations for 100 people.

Acquired work-class ROVs to expand subsea service-offering

June 2007

Acquired work-class ROVs to expand subsea service-offering

Acquired work-class ROVs to expand subsea service-offering

Acquired Sea Mar Fleet of OSVs from Nabors

August 2007

Acquired Sea Mar Fleet of OSVs from Nabors
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Acquired Sea Mar Fleet of OSVs from Nabors

The Sea Mar Fleet acquisition was our second acquisition of a significant fleet of domestic new generation OSVs. The Sea Mar Fleet was acquired from affiliates of Nabors Industries Ltd. (NYSE: NBR) (“Nabors”) for $186.0 million and was comprised of ten new generation OSVs and ten conventional OSVs. The ten new-gen boats, which are referred to as Super 200’s, are DP-1 vessels comparable to HOS proprietary 200 class OSVs in terms of liquid mud capacity and deck space, but with much larger deadweight capacity. These vessels included the HOS Davis, HOS Douglas, HOS Hawke, HOS Hope, HOS Nome, HOS North, HOS St. James, HOS St. John, HOS Beaufort and HOS Byrd. Six of these vessels have subsequently been stretched and upgraded to 240 class DP-2 vessels and were renamed the HOS Boudin, HOS Beignet, HOS Coquille, HOS Cayenne, HOS Bourre, and HOS Chicory. We also agreed to purchase one 285-foot DP-2 new generation OSV under construction at a domestic shipyard, later named the HOS Coral which was added to OSV Newbuild Program #4. We have since sold nine of the ten conventional OSVs included in this acquisition.

Acquired HOS Port Annex from Rowan

January 2008

Acquired HOS Port Annex from Rowan
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Acquired HOS Port Annex from Rowan

In January 2008, we purchased a leasehold interest in a parcel of improvement estate (formerly known as “Rowan Base”) adjacent to HOS Port. The purpose of the acquisition was to support our rapidly expanding operations in the Gulf of Mexico’s largest deepwater offshore port and provide more lay-down area in support of our growing MPSV program.  The combined acreage of the two adjoining properties is approximately 60 acres, more than double the original size of HOS Port.  The acquired facility also increased our shore-base lifting capacity by two cranes, and extended our waterfront bulkhead by over 1,000 additional linear feet to nearly 3,000 total linear feet.

Expanded MPSV program by acquiring MPSV under construction from Superior Offshore

January 2008

Expanded MPSV program by acquiring MPSV  under construction
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Expanded MPSV program by acquiring MPSV under construction from Superior Offshore

We further expanded our MPSV program to four vessels by acquiring a T-22 class DP-3 new generation multi-purpose support vessel (“MPSV”) under construction at Merwede Shipyard in Holland from Superior Energy, later renamed the HOS Achiever.

Increased revolver to $250m

February 2008

Increased revolver to $250m

Increased revolver to $250m

Issued $250m senior notes

August 2009

Issued $250m senior notes 
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Issued $250m senior notes

In August 2009, we issued $250 million in 8.000% senior unsecured notes due 2017. The proceeds were used to repay outstanding debt under our revolving credit facility.
Announced OSV Newbuild Program #5

November 2011

Announced OSV Newbuild Program #5 
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Announced OSV Newbuild Program #5

OSV Newbuild Program #5 was originally comprised of sixteen U.S.-flagged 300 class DP-2 new generation offshore supply vessels (“OSV”) for our Upstream business segment with options to build an additional 48 substantially similar vessels. We separately contracted with VT Halter Marine, Inc. of Pascagoula, Mississippi and Eastern Shipbuilding Group, Inc. of Panama City, Florida for the construction of eight 300 class vessels at each yard for a total project cost of approximately $720 million. The eight OSVs constructed by Eastern Shipbuilding Group consisted of four vessels based on the HOSMAX 300 design and four based on the HOSMAX 310 design. The eight vessels constructed by VT Halter Marine are based on the HOSMAX 320 design. The new HOSMAX vessels are particularly well-suited for the increased demands of deepwater and ultra-deepwater customers for high-specification vessels by offering double the deadweight tons and more than double the liquid mud capacity of a typical 240 class OSV.

$242m follow-on equity offering

November 2011

$242m follow-on equity offering
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$242m follow-on equity offering

In conjunction with the announcement of OSV Newbuild Program #5, we closed an underwritten follow-on equity offering of 8,050,000 shares of our common stock at a price to the public of $30.00 per share, for total gross proceeds of approximately $241.5 million before underwriting discounts, commissions and offering expenses. The intended use of net proceeds was to partially fund OSV Newbuild Program #5 in addition to funding any possible acquisitions or additional new vessel construction.

Issued $375m senior notes

March 2012

Issued $375m senior notes 
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Issued $375m senior notes

In March 2012, we issued $375 million in 5.875% senior unsecured notes due 2020 for net proceeds of $367.4 million. The proceeds were used to repurchase our 6.125% senior notes due 2014.

Issued $300m convertible senior notes

August 2012

Issued $300m convertible senior notes 
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Issued $300m convertible senior notes

On August 13, 2012 we issued $300 million senior convertible notes due 2019 with a coupon of 1.500% per year for net proceeds of $290.8 million after discounts, commission, and expenses. The proceeds were used to retire our 1.625% senior convertible notes due 2026.

Expanded OSV Newbuild Program #5

September 2012

Expanded OSV Newbuild Program #5
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Expanded OSV Newbuild Program #5

In response to the improving outlook for our core markets, we exercised the first four of our 48 options to build additional HOSMAX vessels consisting of two additional HOSMAX 310 class OSVs and two additional HOSMAX 320 class OSVs.

Commenced 200 Class OSV Retrofit Program

September 2012

Commenced 200 Class OSV Retrofit Program 
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Commenced 200 Class OSV Retrofit Program

In response to evolving market demands for larger high-spec equipment, we announced a retrofit program to upgrade and stretch six of our 200 class DP-1 new generation OSVs, converting them into 240 class DP-2 OSVs.  The vessels committed to this program were six Super 200 class DP-1 vessels originally acquired as part of the “Sea Mar Fleet”, the HOS North, HOS Davis, HOS Byrd, HOS Hope, HOS St. John, and HOS St. James. Due to their 56-foot wide beams, the 40-foot mid-body extensions added approximately 600 tons to the vessels’ previous 2,250 tons of deadweight capacity and roughly doubled the vessels’ previous liquid mud capacity to approximately 8,000 barrels. The vessels were redelivered and renamed the HOS Beignet, HOS Boudin, HOS Bourre, HOS Cayenne, HOS Chicory, and HOS Coquille, respectively.

Expanded OSV Newbuild Program #5 to include four 300 Class DP-2 MPSVs

February 2013

Expanded OSV Newbuild Program #5 to include four 300 Class DP-2 MPSVs 
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Expanded OSV Newbuild Program #5 to include four 300 Class DP-2 MPSVs

Due to the expectation of a significant increase in domestic subsea construction and IRM-related market demand for U.S.-flagged MPSVs and as part of the strategy to continue to diversify the HOSMAX Newbuild Program, we contracted for the construction of four Jones Act-qualified 310 class DP-2 MPSVs based on the HOSMAX 310 design. These four HOSMAX vessels will have a 250T AHC KB crane, helideck, and two ROV docking stations and are contracted with Eastern Shipbuilding Group, Inc. and Leevac Marine.

Issued $450m senior notes

March 2013

Issued $450m senior notes 
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Issued $450m senior notes

In March 2013, we issued $450 million in 5.000% senior unsecured notes due 2021 for net proceeds of $442.4 million. The primary use of proceeds was to repurchase our outstanding 8.000% notes due 2017.

Sold active Downstream segment to Genesis Marine

August 2013

Sold active Downstream segment to Genesis Marine
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Sold active Downstream segment to Genesis Marine

Due to the substantial pending growth of our upstream fleet as a result of our newbuild and retrofit programs, the Company sold substantially all of the assets and business of the Downstream segment to Genesis Marine, LLC (“Genesis”), an affiliate of Genesis Energy L.P. (NYSE:GEL), for cash consideration of $230 million. We received approximately $224 million in proceeds, net of expenses and estimated cash taxes, from this transaction. The Downstream vessels sold to Genesis were our active fleet of nine ocean-going tugs and nine double-hulled tank barges. In connection with the closing, HOS and Genesis entered into transition service agreements in order to ensure a smooth transition of operations and services for both employees and customers.

Completed Conversion and Redemption of 1.625% Convertible Senior Notes due 2026

November 2013

Completed Conversion and Redemption of 1.625% Convertible Senior Notes due 2026

Completed Conversion and Redemption of 1.625% Convertible Senior Notes due 2026

Announced authorization of $150 million share repurchase program

October 2014

Announced authorization of $150 million share repurchase program.
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Announced authorization of $150 million share repurchase program

On October 29, 2014, we announced that the Company’s Board of Directors authorized a share repurchase program of up to $150 million in shares of our common stock.  The repurchase program will be funded from cash on-hand, cash flow from operations and/or cash proceeds from the divestiture of non-core assets. The timing and amount of the repurchases will depend on several factors, such as market conditions, applicable legal requirements, available liquidity, the discretion of management and other appropriate factors.

Announced the conversion of one 300 class OSV, the HOS Riverbend, into a 300 class MPSV flotel.

October 2014

Announced the conversion of one 300 class OSV, the HOS Riverbend, into a 300 class...Read more
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Announced the conversion of one 300 class OSV, the HOS Riverbend, into a 300 class MPSV flotel.

In October 2014, The HOS Riverbend, a 300 class OSV previously placed into service under OSV Newbuild #5, began conversion into a 300 class MPSV flotel. Upon redelivery in April 2015, the HOS Riverbend will be the first Jones Act qualified flotel MPSV in the U.S. Gulf of Mexico. The conversion will include a 35-ton knuckle boom crane, a motion-compensated gangway for “walk to work” capabilities and berthing for 194 personnel.

The first HOSMAX MPSV, the HOS Bayou, was delivered and placed into service

December 2014

The first HOSMAX MPSV, the HOS Bayou, was delivered and placed into service.
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The first HOSMAX MPSV, the HOS Bayou, was delivered and placed into service

In December 2014, the HOS Bayou was delivered as the first U.S.-flagged Jones Act-compliant MPSV under our fifth OSV newbuild program. Equipped with two Schilling HD 150 HP work-class remotely operated vehicles (ROVs), a 150 ton knuckle-boom crane and a helideck, the HOS Bayou is capable of performing inspection, maintenance and repair (IMR) of subsea oil installations and construction support in the Gulf of Mexico (GoM). In addition to IMR work, this vessel package is designed to perform a variety of deep-water services, such as SURF installation, decommissioning activities, drilling support and deep-water well intervention projects.

Completed sale of three 250EDF class vessels to the U.S. Navy with option for fourth vessel.

March 2015

Completed sale of three 250EDF class vessels to the U.S. Navy with an option...Read more
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Completed sale of three 250EDF class vessels to the U.S. Navy with option for fourth vessel.

On March 2, 2015, the Company announced that we completed the sale of three 250EDF class vessels, the HOS Arrowhead, the HOS Eagleview and the HOS Westwind, to the U.S. Navy for cash consideration of $114 million. Since their construction in 2008 and 2009, these vessels have supported the U.S. Navy submarine fleet on both the East and West Coast and, in order to continue to receive the benefit of these vessels, Congress required their purchase from the Company. The purchase agreement includes an option for the acquisition of a fourth vessel, the HOS Black Powder, that, if exercised as anticipated, would bring the aggregate sale amount to $152 million. In addition to these vessel sales, we entered into an operations and maintenance contract which contains an initial term as well as annual renewal options spanning a 10-year operating period. The HOS Black Powder was awarded a time charter that will remain in effect until the anticipated sale of the vessel, at which time the vessel will operate under the same terms and conditions of the operations and maintenance contract of the three other vessels.

Completed sale of fourth 250EDF class vessel to the US Navy

August 2015

Completed sale of fourth 250EDF class vessel to the U.S. Navy.
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Completed sale of fourth 250EDF class vessel to the US Navy

On August 28, 2015, the Company completed the sale of the fourth and final 250EDF class vessel, the HOS Black Powder, to the U.S. Navy for cash consideration of $38 million. The aggregate sale amount for all four vessels was $152 million. The Company continues to work under an operations and maintenance ("O&M") contract which contains renewal options for a 10 year operating period.

Brazilian Flagged the HOS Brass Ring, a HOSMAX 310 class OSV Newbuild

December 2015

Brazilian Flagged the HOS Brass Ring, a HOSMAX 310 class OSV Newbuild.
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Brazilian Flagged the HOS Brass Ring, a HOSMAX 310 class OSV Newbuild

In December 2015, the Company delivered the HOS Brass Ring, one of our HOSMAX 310 class OSV newbuilds, into Brazilian registry. The vessel was then successively Brazilian flagged and will now enjoy the benefits of the country’s strict cabotage laws while operating as one of the newest and largest ultra-high spec OSVs in the Brazilian market.

Delivered Last OSV under Newbuild Program #5

January 2016

Delivered Last OSV under Newbuild Program #5
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Delivered Last OSV under Newbuild Program #5

In January of 2016, the HOS Briarwood, the final HOSMAX 310 class OSV, was placed into service. The Company has now delivered all of the HOSMAX OSVs constructed under our fifth OSV newbuild program, which includes 18 Jones Act-qualified 300 class DP-2 high spec OSVs.

Company announced plans to modify and enhance capabilities of four remaining 310 class MPSV newbuild

February 2016

Company announced plans to modify and enhance capabilities of four remaining 310...Read more
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Company announced plans to modify and enhance capabilities of four remaining 310 class MPSV newbuild

In February 2016, the Company announced plans to modify and enhance the capabilities of the four remaining 310 class MPSV newbuilds. The modifications to the first two MPSVs will increase the berthing capacity, expand the cargo-carrying capabilities and expand the work area for ROVs.  The modifications to the other two MPSVs will include the addition of a 60-foot mid-body plug, installation of an additional crane, increased berthing capacity, expanded cargo-carrying capacities and expanded work areas for ROVs.  These latter two MPSVs have been upgraded to a 400 class designation.

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