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JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore

Hornbeck Offshore · Jun 24, 2015 · 92 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 1
    Investor Presentation - Appendix June 2015
  2. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 2
    Mission Statement Our mission is to be recognized as the energy industrys marine transportation and service company of choice for our customers, employees and investors through innovative, high quality, value-added business…
  3. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 3
    Safety
  4. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 4
    Our People at Work 5
  5. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 5
    Safety Record Outperforms Industry Benchmarks Recordable Incident Rates (RIR) 3 12,000,000 2.5 10,000,000 2 8,000,000 1.5 6,000,000 1 4,000,000 0.5 2,000,000 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010…
  6. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 6
    QHS&E Certifications ISM certification for all SOLAS class OSVs and AHTS vessels ISM Code certified on all vessels Only U.S. marine transportation and energy service company with SIP approval ISO 140001:2004 certified by ABS ABS…
  7. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 7
    Upstream Market Summary
  8. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 8
    Best in Class OSV Fleet HOS OSV fleet is 100% new generation HOS has one of the youngest technologically advanced vessels1 OSV fleets of all U.S. publicly traded peers Hornbeck 7 Peer Average Fleet Age = 10 years Gulfmark 9…
  9. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 9
    Brazil Pre-Salt Play 660 nm (Tampa Houston) Source: Petrobras; Company estimates. Source: The Economist; Petrobras; BP. 10
  10. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 10
    Mexico Energy Reform Passage of Constitutional Passage of Secondary Round Zero, Joint Ventures, Regulatory Round One Tenders and Pemex Joint Reform Legislation Organizations Ventures Aug 2013-Dec 2013 Apr 2014-Aug 2014…
  11. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 11
    Mexicos Deepwater Potential Over 50% of the 53 billion barrels of conventional prospective resources are in deepwater Pemex granted 83% of 2P Reserves and 21% of total Prospective Resources in Round Zero Round Zero decision…
  12. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 12
    U.S.-Mexico Transboundary Agreement Removes uncertainties regarding development of resources that cross the U.S.-Mexico maritime boundary Nearly 1.5 million acres containing 172 million bbls of oil and 304 billion ft3 of natural…
  13. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 13
    Top Operator of New Gen OSVs in Mexico 1 New Gen OSV Operator in Mexico (Pro Forma by DWT) Otto Candies 5% Naviera 3% POSH Semco 4% Cotemar 5% Aries Seacor Marine 3% Marine 14% Other 22% Oceanografia 7% Tidewater 12%…
  14. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 14
    Hornbeck Offshore Steady Growth in Mexico Average Vessels in Mexico Total Mexico Revenue 14.0 100,000 90,000 12.0 80,000 10.0 70,000 Avg. Vessel Count in thousands 60,000 8.0 50,000 6.0 40,000 4.0 30,000 20,000…
  15. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 15
    Upstream Fleet Summary
  16. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 16
    Upstream Fleet: Historical Timeline Launched 4th OSV Acquired and integrated newbuild program the Sea Mar fleet of 10 Commenced consisting of nine Super 200 class new 200 Class Launched 2nd OSV 250EDF class DP-2 OSVs generation OSVs…
  17. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 17
    Multi-Class Fleet of New Generation OSVs 200 class HOS Crossfire, 220 class HOS Voyager, one of 240E class HOS Innovator surveying our first proprietary new generation OSV six OSVs acquired from Candy Fleet hurricane damage at BPs…
  18. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 18
    Three Distinct Classes of MPSVs Merwede T-22 class HOS 370 class HOS 310 class DP3 design DP2 design DP2 design HOS Iron Horse, our second of two 430-ft HOS Centerline, our first of two 370-ft HOS Bayou, our first of six 310-ft…
  19. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 19
    430 class DP3 MPSVs 20
  20. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 20
    370 class DP2 MPSVs 21
  21. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 21
    310 class DP2 MPSVs 22
  22. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 22
    HOS Port Site Plan 23
  23. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 23
    Vast Majority of U.S. Offshore Energy Infrastructure is in Hurricane Alley Mobile Rig Locations (as of September 20, 2005) All Fixed Manned Platforms 24
  24. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 24
    Post Hurricane Repair Offshore Supply Vessels Multi-Purpose Support Vessels DP2 240E class OSV, HOS Innovator surveying DP3 T-22 class MPSV, HOS Achiever, damage at BPs Thunderhorse semi-submersible on her first shelf platfom…
  25. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 25
    HOS Fleet Growth (1998 to 2016E)1 Upstream Vessels Tank Barges 3 (total deadweight tons) (total barrel capacity) 330,000 2,000,000 300,000 270,000 33% 18-year CAGR 7% 14-year CAGR 240,000 1,500,000 210,000 180,000 1,000,000…
  26. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 26
    300 Class OSV Deliveries Will Drive Earnings Power 2012 2013 2014 2015 Current Fleet 2013 Deliveries SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS 2014 Deliveries…
  27. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 27
    HOS Fleet Growth Through Acquisitions Amerada Hess Fleet Candy Fleet Walvis Vessels Sea Mar Fleet Year: 2001 Year: 2003 Year: 2005 Year: 2007 Year: 2001 Year: 2003 Year: 2005 Year: 2007 Flag: Domestic Flag: Domestic Flag: Foreign…
  28. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 28
    Proprietary OSV Newbuild Designs Six Discrete Classes Proprietary Design Features HOS 200 OSV HOS 240/240E/240ED OSV HOS 250EDF OSV HOS 265 OSV Since 1998, HOS has built a multi-class fleet of in-house designed new…
  29. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 29
    DP1 System Classification Breakdown 30
  30. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 30
    DP2 System Classification Breakdown 31
  31. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 31
    DP3 System Classification Breakdown 32
  32. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 32
    MPSV Fleet Capabilities
  33. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 33
    Highlights of 370 Class MPSV-DP2 Vessel Specs Vessel Equivalents to 8,000 DWT Vessel Specs Proprietary HOS 370 class DP2 design 10.0 370-ft overall length 9.0 8k deadweight tons (dwt) 8.0 30k bbls of liquid mud capacity 7.0 Crane…
  34. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 34
    Highlights of T-22 Class MPSV-DP3 Vessel Specs Vessel Specs Proven Merwede T-22 class DP3 design 430-ft overall length 8k deadweight tons 15,000 bhp propulsion HOS Achiever Accommodations for 100 to 150 Delivered in 4Q2008 Moon…
  35. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 35
    Highlights of 310 Class MPSV-DP2 Vessel Specs IMO Special Purpose Ship Class Notation 300-ft overall length 150-250 ton heave-compensated knuckle-boom cranes Accommodations for 73 persons Moon pool / heli-deck Suitable for…
  36. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 36
    Comparison of HOS Vessel Capabilities USCG Typical Features 370 MPSV- HOS 265 MPSV-DP3 Notation and Services DP2 Platform Supply Subchapter L: ROV Support Saturation Dive Support Subsea Construction / IRM Decommissioning Deep…
  37. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 37
    HOS Strongline Before and After 38
  38. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 38
    HOS Strongline Before and After 39
  39. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 39
    Record-Setting Riserless Well Intervention The HOS Iron Horse performing subsea support Deploying Blue Ocean Technologies subsea well intervention equipment from the HOS Iron Horse HOS Iron Horse used as the work platform for…
  40. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 40
    Shell Perdido Spar Flotel The HOS Achiever under normal The HOS Achiever mobilized for flotel operation subsea support configuration to support Shells Perdido SPAR Six-week mobilization to add additional berthing to accommodate…
  41. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 41
    Shell Perdido Spar Flotel Transferring personnel between the HOS Achiever Discharging SPAR personnel on the helideck and the Perdido SPAR atop the HOS Achiever More than 47,300 incident-free personnel transfers between the HOS…
  42. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 42
    Shell Perdido Spar HOS Crew 43
  43. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 43
    Shell Perdido Spar Personnel Transfers 44
  44. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 44
    Shell Perdido Spar Accommodation Units 45
  45. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 45
    Shell Perdido Spar Safety Drills 46
  46. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 46
    Shell Perdido Spar Helideck Ops 47
  47. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 47
    BP Oil Spill Response
  48. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 48
    BP Oil Spill Response Spread BP p.l.c. BP p.l.c. BP p.l.c. BP p.l.c. 49
  49. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 49
    HOS Involved in Each Major Category of BP Spill Relief Mobilized and operated various types of oil containment boom and skimming equipment New Generation Applied biodegradable dispersants to help break down surface oil OSVs Supported…
  50. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 50
    GoM Post-Macondo Permitorium Timeline 2010 2011 5/27 6/22 7/12 9/30 10/18 10/19 11/8 1/3 1/19 DOI announces Injunction against 2nd BOEMRE BOEMRE Court DOI BOEMRE issues BOEMRE 6 Month Drilling Moratorium issued Moratorium announces…
  51. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 51
    BP Oil Spill and Marine Response 52
  52. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 52
    BP Top Kill Operation BP p.l.c. 53
  53. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 53
    BPs Operation Top Kill 54
  54. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 54
    BPs Operation Top Kill The HOS Centerline, the primary kill vessel The HOS Strongline acting as a standby supporting BPs Operation Top Kill vessel for BPs Operation Top Kill The HOS Centerline along side the Q4000 Pumping…
  55. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 55
    BPs Operation Top Kill Helix Energy Solutions Q4000, a DP-3 semi- The HOS Centerline along side the Q4000 Pumping hoses deployed overboard the HOS submersible multi-purpose vessel during Operation Top Kill Centerline to the…
  56. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 56
    BP Static Kill Operation BP p.l.c. 57
  57. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 57
    BP Oil Spill: Subsea Response 300-ton A&R winch Lowering of a deepwater work-class ROV on the HOS Achiever from a HOS DP-3 MPSV 100-ton knuckle-boom crane 120-ton knuckle-boom crane ROV deployed from the HOS Iron on the HOS…
  58. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 58
    BP Oil Spill: Surface Response The HOS Mystique outfitted with Koseq oil HOS Super H deployed as a sweeping system surface dispersant vessel The HOS North configured as an oil skimming The HOS North operating with a V.O.S.S.…
  59. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 59
    BP Oil Spill: Oil Recovery The Energy 13501 outfitted with oily water separators and skimming equipment The Energy 8001 outfitted with oily water separators in lightering and storage response role 60
  60. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 60
    Downstream Fleet History
  61. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 61
    Sale of Downstream Segment Ocean-going Tugs Tank Barges 9 Rebuilt Tugs 9 Double-Hulled Barges Closed the sale of substantially all of the Downstream segment to Genesis Marine in August 2013 The all-cash transaction generated…
  62. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 62
    Downstream Fleet: Historical Timeline Closed the August 2013 sale of Downstream Retired three SH tank Sold six SH tank segment to Sold one tug and two barges under OPA 90 barges and one Delivered two Genesis SH tank barges tug…
  63. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 63
    Diverse Fleet of Tugs and Tank Barges Energy 13501, our first proprietary HOS tugs docked at our Energy 13501 on its maiden voyage, double-hulled tank barge newbuild Brooklyn shore-based facility powered by the 6,140 hp Liberty…
  64. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 64
    Financial Highlights
  65. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 65
    Company Valuation and Credit Metrics 52-Week Range 17.91-47.45 2014A 2015E 3 2016E 3 Average Daily Trading Volume (L3M) 1,087k Results Stock Price 22-Jun-2015 1 20.79 EBITDA 286m 220m 224m Diluted Common Shares Outstanding 35.7…
  66. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 66
    Worldwide Publicly Traded OSV Peer Group Equity Market Cap (USD) 1,600 1,400 1,200 1,000 (in millions) 800 600 400 200 - DESSC SIOFF CKH TDW EIOF SOFF DOF GLF HOS FAR HAVI…
  67. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 67
    Blue Chip Customers 68
  68. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 68
    Significant Operating Leverage with Stable Base 350.0 340 20x 18x 300.0 286 EBITDA / Cash Interest Expense 16x 250.0 239 14x ( in millions) 209 194 190 12x 200.0 181 153 10x 150.0 137 8x 97 100.0 6x 36 54 59 4x…
  69. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 69
    Upstream Contract Coverage with Blue-Chip Customers Contracted Days Contracted Revenue 100% 80% A 14% BBB 64% 71% AA 6%Other 1 60% 26% 93% 100% 6% 40% AAA 20% 36% 48% 29% 0% 7% 2015 2016 2015 2016 Offshore Supply Vessels…
  70. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 70
    Young Fleet Requires Lower Maintenance Capex Maintenance Capex 2014A 2015E 2016E Deferred drydocking charges 43m 16m 20m Other vessel capital improvements 24m 4m 3m Other Capex 2014A 2015E 2016E Commercial related…
  71. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 71
    Pro Forma DWT-Adjusted Historical Dayrates Historical Dayrates Indexed to Current Average Fleet Capacity New Generation OSV Fleet 45,000 40,000 35,000 Average Dayrate 30,000 25,000 20,000 15,000 10,000…
  72. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 72
    Pro Forma Operating Leverage of Upstream Fleet Dayrate Sensitivity for New Gen OSV Fleet Dayrate Sensitivity for MPSV Fleet Change in Change in Dayrate Change EBITDA Change in EPS Dayrate Change EBITDA Change in EPS 2,000 45.3m…
  73. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 73
    Track Record of Value Creation in Market Upcycles EVA = CWIP Adjusted ROIC1 WACC 20.0% 18.0% 2008 CWIP-Adj ROIC 16.0% 16.7% 14.0% HOS Pre-Macondo Avg ROIC =12.8% EVA = 8.2% 12.0% HOS 13-yr Avg CWIP-Adjusted ROIC = 10.5%…
  74. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 74
    2014 Return on Invested Capital (ROIC1) Average Invested Capital ( in millions) BoY EoY2 Avg Book Equity 1,295.4m 1,370.8m 1,333.1m Plus Debt 1,064.1m 1,073.5m 1,068.8m Less Cash 439.3m 185.1m 312.2m Invested Capital 1,920.2m…
  75. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 75
    Capital Structure
  76. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 76
    Current Weighted-Average Cost of Capital (Calculated as of 22-Jan-2015) BOY Capital Structure 1 Book Equity 1,319m 54.0% Debt 1,125m 46.0% Total Capital 2,444m Cost of Equity = Rf + (Rm - Rf) Risk-free Rate (Rf) 1.87% Industry…
  77. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 77
    HOS Capital Structure: Historical Timeline Debt Transactions Nov-2006 Aug-2012 Mar-2013 Nov-2013 Nov-2004 Oct-2005 Issued Issued Issued Redeemed Jun-1998 Jul-2001 Issued 75m 250m Aug-2009 Mar-2012 300m 450m 1.625% Issued Issued…
  78. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 78
    Start-Up Phase Capital Structure 300 250 2001 Cap Ratio: 200 150 75% Debt 100 50 25% Equity - 1997 1998 1999 2000 2001 Senior Secured Term Facility A Senior Secured Term Facility B Senior Secured Term Facility C…
  79. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 79
    Pre-IPO Phase Capital Structure 600 500 2004 Cap Ratio: 400 300 57% Debt 200 100 43% Equity - 2001 2002 2003 2004 10.625% Senior Notes due 2011 6.125% Senior Notes due 2014 Drawn Revolving Credit Facility…
  80. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 80
    Post-IPO Phase Capital Structure 1,600 1,400 2008 Cap Ratio: 1,200 1,000 46% Debt 800 600 400 54% Equity 200 - 2004 2005 2006 2007 2008 10.625% Senior Notes due 2011 6.125% Senior Notes due 2014 1.625% Convertible…
  81. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 81
    Strong Balance Sheet and Ample Liquidity 31-Dec-2012 31-Dec-2013 31-Dec-2014 31-Mar-2015 ( in millions) Actual Actual Actual Actual Cash and Equivalents 577 439 185 279 Revolving Credit Facility 0 0 0 0 6.125% Senior Notes due 2014 0 0…
  82. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 82
    Summary of 2001 and 2004 Bond Offerings HOS Notes due 2008 1100 11.000% yield + 600 bp spread 900 700 500 300 HOS 10.625% HOS 6.125% Senior Notes Senior Notes 100 Jan-01 Sep-01 Jun-02 Mar-03 Nov-03 Aug-04 May-05…
  83. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 83
    Summary of 2005 Follow-on Equity Offering I Survived Hurricane HOS... HOS OSX September 2005 250% Sep 29 - HOS prices upsized Follow-On at 200% 35.35 Sep 30 - HOS reaches new high of 37.49 Sep 29 - OSX index 150% reaches…
  84. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 84
    Summary of 2006 Convertible Notes Offering Illustration of Convertible Financing Versus Alternative Sources of Capital 20.0% Reference: Common 18.0% Stock 16.0% 7-yr Pre-Tax Cost of Capital Reference: HY Debt 14.0% (7.25%…
  85. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 85
    Summary of 2012 Convertible Notes Offering Opportunistic financing in Aug-2012 allowed HOS to monetize its high stock volatility and strong credit profile Low-cost source of capital available to HOS resulting in 425 bps less cash…
  86. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 86
    HOS vs. Historical Spreads of Energy High Yield Bonds (%) 20% 18% 16% 14% Economic downturn increases cost of debt capital 12% HOS Notes due 2020 5.875% yield HOS Notes due 2014 HOS Notes due 2021 10% + 432 bp spread 6.125%…
  87. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 87
    Historical Credit Statistics Leverage Ratio1 Coverage Ratio1 12.0x 6.0x Interest Coverage Ratio 5.0x 10.0x Leverage Ratio 4.0x 8.0x 3.0x 6.0x 2.0x 4.0x 1.0x 2.0x 0.0x 0.0x Debt to Adjusted EBITDA Net Debt to…
  88. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 88
    HOS Common Stock Historical Trading Multiples TEV / Forward EBITDA Multiples 14.0x 2 Follow-On 9.4x 12.0x 1 IPO Hist High 4 9.1x 11.6x Follow-On 6.9x 10.0x 8.0x HOS Hist. Avg 7.2x 6.0x 3 4.0x Buy-Back 5 5.8x Hist…
  89. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 89
    HOS Common Stock Historical Trading Multiples Stock Price / Forward Earnings (P/E) Multiples 46.0x 1 IPO 42.0x 41.8x nmf due to 38.0x neg eps 34.0x 2 Follow On 30.0x 19.0x 26.0x Buy-Back 3 22.0x 11.6x 18.0x HOS Hist Avg…
  90. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 90
    Current OSV Peer Group Trading Multiples Closing % of % of Equity Diluted Price 52 Week Book Market Shares Book Total Preferred Minority Enterprise Company Ticker 4/30/2015 High Equity Cap. mm Equity Debt Stock Interest Cash Value…
  91. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 91
    Equity Analyst Coverage 16 14 12 Covering Analysts 10 8 6 4 2 0 TDW CKH GLF HOS TDW CKH GLF HOS Argus Credit Suisse Capital One Southcoast Capital One Southcoast Capital One Southcoast Evercore ISI Group Carnegie…
  92. JUNE 2015 INVESTOR PRESENTATION UPDATE – Hornbeck Offshore – slide 92
    Investor Presentation - Appendix June 2015

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