Hornbeck Offshore Services, Inc

What they do

The company provides specialty services to the offshore oil and gas and renewable energy industries, primarily in the Gulf of America (deepwater and shelf), Brazil, North Sea, West Africa and Asia Pacific. Services include well intervention and production enhancement, coiled tubing, inspection, repair and maintenance, well plug and abandonment and decommissioning, ROV and trenching support for offshore wind, and provision of the Helix Producer I floating production facility and the Helix Fast Response System.

Revenue drivers

• Well Intervention — Purpose-built vessels perform production enhancement and abandonment operations in water depths of 100 to 10,000 feet in the Gulf of America, Brazil, North Sea, Asia Pacific and West Africa; services are aimed at extending existing well lives rather than drilling new wells.
• Robotics — ROV services provided standalone or with support vessels, including subsea support for offshore oil and gas and offshore renewable energy engineering, procurement, construction and installation contractors.
• Shallow Water Abandonment — Reclamation and remediation, well plug and abandonment, and pipeline, cable and umbilical abandonment services, including decommissioning of end-of-life oil and gas fields.
• Production Facilities — Provision of the Helix Producer I, currently processing production from the Phoenix field in the Gulf of America, plus the Helix Fast Response System offered as a well control response resource.

Recent performance

Second quarter 2026 revenue was $304.0 million with gross profit of $56.2 million (18% margin), versus revenue of $251.7 million and gross profit of $13.5 million in the second quarter of 2025. Net income was $22.7 million, or $0.15 per diluted share, compared with a net loss of $2.6 million, or $(0.02) per diluted share, a year earlier. Adjusted EBITDA was $69.9 million in the quarter, of which $74.7 million came from continuing operations and $(4.8) million from discontinued operations. For the first half of 2026, revenue was $570.7 million, net income $9.3 million and Adjusted EBITDA $102.1 million. Results include Helix Alliance, which is classified as discontinued operations and is being sold.

Strategy

The company is pursuing a proposed transaction with Hornbeck, referred to in the 10-Q as the Transactions, which is subject to shareholder approval and other conditions. Helix Alliance, the shallow water abandonment business, has been classified as discontinued operations and is being sold, with proceeds and purchase price adjustments referenced in forward-looking statements. The remaining business focuses on well intervention, robotics and decommissioning, with continued attention to the offshore renewable energy market through trenching, site clearance and subsea support. Helix also maintains a share repurchase authorization and manages vessel upgrades, maintenance and regulatory certification.

Risks

• Oil and gas price cyclicality — Demand for services depends on customers' offshore capital and operating budgets, which fall when oil and natural gas prices are low or outlooks are uncertain.
• Transaction completion risk — The proposed Transactions with Hornbeck require shareholder approval, satisfaction of closing conditions and integration of operations, and may not be completed on the anticipated timeline or at all.
• Discontinued operations and sale of Helix Alliance — Helix Alliance results are reported in discontinued operations and the sale introduces purchase price adjustment, use of proceeds and ongoing involvement uncertainties.
• Geographic and regulatory exposure — Operations span the Gulf of America, Brazil, North Sea, West Africa and Asia Pacific, exposing results to regional political and economic conditions, permitting decisions and regulatory requirements.

Outlook

Management does not provide a detailed forecast in the excerpts. The company reports its second quarter 2026 results with improving revenue and gross margin, notes the pending Hornbeck transaction and the sale of Helix Alliance, and continues to describe well intervention, robotics and decommissioning plus offshore renewable services as its core focus. Forward-looking items remain subject to oil price volatility, transaction conditions and regulatory approvals.