Oilfield services firm
Hornbeck Offshore Services Inc.
) reported the closure of its previously declared sale agreement
with Genesis Marine LLC, a subsidiary of diversified midstream
Genesis Energy LP
Per the contract, Hornbeck divested nine ocean-going tugs and
nine double-hulled tank barges fleet of its downstream segment
for $230.0 million in cash. But excluding estimated cash taxes
along with other expenses, Hornbeck got roughly $224.0 million.
Hornbeck expects to utilize the proceeds for normal corporate
activities comprising debt retirement, vessels manufacturing
along with other purposes.
On Jul 31, 2013, Hornbeck declared second-quarter 2013 results.
The company posted earnings per share of 67 cents per share
(excluding loss effect on early debt extinguishment), beating the
Zacks Consensus Estimate of 53 cents. The reported figure also
increased by a whopping 91.4% from adjusted 35 cents per share
posted in the year-ago period. The improvement was on the back of
significant progress in both the Upstream and the Downstream
Covington, LA-based Hornbeck purveys offshore supply vessels of
new generations and improved technology specifically in Latin
America along with the U.S. Gulf of Mexico. The company is mainly
operating through two segments, namely, Upstream and Downstream.
At present, the company has a fleet of 58 vessels in order to
provide services to the energy companies. Moreover, the company
owns extra 23 high-spec vessels for upstream activities which are
in the process of construction.
Hornbeck currently retains a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
However, one can look at oil field services firms like
Chesapeake Energy Corporation
Gulfmark Offshore Inc.
) that offer value. Chesapeake Energy sports a Zacks Rank #1
(Strong Buy) while Gulfmark Offshore carries a Zacks Rank #2
CHESAPEAKE ENGY (CHK): Free Stock Analysis
GENESIS ENERGY (GEL): Free Stock Analysis
GULFMARK OFFSHR (GLF): Free Stock Analysis
HORNBECK OFFSHR (HOS): Free Stock Analysis
To read this article on Zacks.com click here.