SeekingAlpha  Oct 17  Comment 
By Rochelle Jenks: Hornbeck Offshore Services (NYSE:HOS) provides transportation and services to the off-shore drilling industry, primarily in the Gulf of Mexico. Deepwater drilling is a beast unto itself in the oil and gas industry. The offshore...
TheStreet.com  Oct 6  Comment 
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. aTheStreet Ratings quantitative algorithm...
Market Intelligence Center  Sep 29  Comment 
After closing Friday at $34.65, Hornbeck Offshore Services Inc. (HOS) presents an attractive opportunity to get a 4.60% return in just 82 days, which is an annualized return of 20.46% (for comparison purposes only). To enter this trade, sell one...
Market Intelligence Center  Sep 19  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on Hornbeck Offshore Services Inc. (HOS) could yield about 5.89% (23.38% annualized, for comparison purposes only) in 92 days. Pair a long position in the stock with the...
Market Intelligence Center  Aug 26  Comment 
The patented algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center found a trading opportunity with Hornbeck Offshore Services Inc. (HOS) that should provide a 2.71% return in just 53 days. Sell one Oct. '14 call at...
Market Intelligence Center  Aug 20  Comment 
Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with Hornbeck Offshore Services Inc. (HOS) that should provide a 5.06% return in just 122 days. Sell one Dec. '14 call at the $43.00 level for...
Market Intelligence Center  Aug 8  Comment 
The patented option trade-picking algorithms behind MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered call trade on Hornbeck Offshore Services Inc. (HOS) that includes 4.95% downside protection. Sell one...
SeekingAlpha  Aug 2  Comment 
Hornbeck Offshore Services, Inc. (NYSE:HOS) Q2 2014 Earnings Conference Call August 01, 2014 10:00 AM ET Executives Ken Dennard - Managing Partner, Dennard-Lascar Todd Hornbeck - Chairman of the Board, President and CEO Jim...
Market Intelligence Center  Aug 1  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered-call trade on Hornbeck Offshore Services Inc. (HOS) that includes 3.66% downside protection. Sell one...
Bulk Transporter  Jul 2  Comment 
The Truck Renting and Leasing Association (TRALA) submitted comments to the Federal Motor Carrier Safety Administration (FMCSA) regarding its plans to mandate electronic logging devices (ELDs) in commercial trucks where drivers are required to...


Hornbeck Offshore Services operates offshore supply vessels (OSVs), multi-purpose support vessels (MPSVs), and a shore-base facility. The company makes money by providing logistics support and specialty services to the offshore oil and gas exploration and production industry, primarily in the US, Gulf of Mexico, and select international markets.[1] With increased regulation following incidents in offshore drilling in the Gulf of Mexico (GoM) such as the Deepwater Horizon oil spill by BP (BP), Hornbeck has been forced to diversify its business line from traditional upstream GoM based operations.

Business Growth

Hornbeck comprises of two business units:

  • Upstream operations primarily use OSVs and MPSVs. OSVs serve as exploratory and developmental drilling rigs, whereas MPSVs serve the same purposes except are significantly larger and more complex.[2]
  • Downstream operations provides services for the domestic tank barge industry, which is centered around service for marine transportation of crude oil, petroleum products and petrochemicals. The largest domestic market in this industry is on the East Coast.[3]

Trends and Forces

Following Deepwater Horizon, Government Regulations in the GoM has Tensed Tremendously

Most of HOS's operations are center around the Gulf of Mexico (GoM), but following BP's oil spill in the Deepwater Horizon incident, government regulations concerning offshore oil drilling particularly in the Gulf of Mexico have heightened, thereby influencing the bottom line for companies like HOS. In particular, the US government, through OPA 90, assigns liability to each responsible party for oil removal costs and a variety of public and private damages. Since HOS operates as a support group for oil drilling operations in the GoM, the company is likely to be liable to some extent should incidents occur in the GoM again.

HOS Operates in a High Fixed Costs Industry Making it Difficult to Shift in Demand

The industry in which HOS operates under incurs high levels of fixed costs through its OSV and MPSVs, which are unable to be easily changed regardless of level of business activity. These high costs especially hurt in times of low productivity due to reduced demand. Further weather interruptions such as during Hurricane Season causes significant negative effects as HOS continues to incur costs regardless the equipment is at bay or out at sea.


HOS competes with other offshore drilling support companies such as:

  • Tidewater (TDW) provides offshore supply vessels and marine support services to the offshore energy industry through the operation of offshore marine service vessels.[4]
  • Seacor Holdings (CKH) owns, operates, invests in and marketing equipment, in the offshore oil and gas, industrial aviation and marine transportation industries.[5]
  • GulfMark Offshore (GLF) provides offshore marine services primarily to companies involved in the offshore exploration and production of oil and natural gas.[6]


  1. HOS Business Description
  2. HOS FY2010 10-K, Pg 9
  3. HOS FY2010 10-K, Pg 10
  4. TDW Business Description
  5. CKH Business Description
  6. GLF Business Description
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki