QUOTE AND NEWS
SeekingAlpha  Feb 20  Comment 
Hornbeck Offshore Services, Inc. (HOS) Q4 2013 Earnings Conference Call February 20, 2014 10:00 a.m. ET Executives Todd Hornbeck – Chairman, President and CEO James Harp – EVP and CFO Ken Dennard – Managing Partner ...
StreetInsider.com  Feb 20  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Hornbeck+Offshore+%28HOS%29+Misses+Q4+EPS+by+1c/9194231.html for the full story.
SeekingAlpha  Jan 20  Comment 
By Laura Starks: Hornbeck Offshore Services (HOS) (another stock with a sure-to-please symbol) owns and operates US-flagged offshore supply vessels and multi-purpose support vessels for deep-well, deep water, and ultra deep water oil industry...
Automotive World  Jan 10  Comment 
Despite numerous technological advances, trucking safety remains a top concern for the American Trucking Associations (ATA), along with regulations governing emissions and driver procedures. ATA is kicking off the New Year with a call to Congress...
Market Intelligence Center  Jan 3  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on Hornbeck Offshore Services Inc. (HOS) could yield about 4.07% (29.74% annualized, for comparison purposes only) in 50 days. Pair a long position in the stock with the...
Bulk Transporter  Dec 17  Comment 
After first appearing on the Top Ten list in 2010, CSA reached the number one position in 2012. However, concerns over new changes to HOS outweighed CSA worries, causing the issue to drop one position to second place in this year’s list. The gap...
Bulk Transporter  Dec 17  Comment 
Federal rules governing commercial driver hours-of-service (HOS) claimed the top position in 2013 after ranking second in 2012 and 2011. The high level of concern over HOS stems primarily from the December 2011 Final Rule issued by the Federal...
Market Intelligence Center  Dec 5  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on Hornbeck Offshore Services Inc. (HOS) could yield about 5.22% (17.80% annualized, for comparison purposes only) in 107 days. Pair a long position in the stock with...
Automotive World  Nov 29  Comment 
The American Trucking Associations (ATA) continues to rail against the recent changes to the hours-of-service (HOS) rules. The new requirements were proposed by the US Department of Transportation’s Federal Motor Carrier Safety Administration...
Bulk Transporter  Nov 27  Comment 
On November 20, leaders of American Trucking Associations again called on the Federal Motor Carrier Safety Administration (FMCSA) and Congress to swiftly address the mounting problems caused by changes to the hours-of-service (HOS)...




 
TOP CONTRIBUTORS

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.

Competition

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]




References

  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
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