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8-K - FORM 8-K - HERCULES OFFSHORE, INC. | h82317e8vk.htm |
Exhibit 99.1
Hercules Offshore Announces Officer Appointments and Second Quarter 2011 Update
HOUSTON, May 16, 2011 Hercules Offshore, Inc. (Nasdaq: HERO) announces officer appointments and
provides update on second quarter 2011 activities.
Officer Appointments
Craig M. Muirhead has been appointed to the position of Vice President and Treasurer. Mr. Muirhead
joined the company in January 2007 as a Corporate Finance Analyst and most recently served as
Assistant Treasurer. Prior to joining Hercules Offshore, he served in various finance positions at
Cameron International. He holds a Bachelors of Arts degree in Mathematical Economic Analysis from
Rice University and a Masters of Business Administration from The University of Texas at Austin.
At the same time, Kimberly A. Riddle was named as Vice President Human Resources. Ms. Riddle will
replace Lisa W. Rodriguez, who announced her retirement from the Company in April 2011. Ms. Riddle
has been with the Company since March 2008, and served in Human Resources as the Compensation
Manager. Prior to joining Hercules Offshore, Ms. Riddle served as a Human Capital Consultant at
Deloitte Consulting and has over 20 years of experience in human resources, specializing in
compensation management. She holds a Bachelors of Arts degree in Journalism from the University of
Houston.
Second Quarter 2011 Updates
On May 13, 2011, the Company and its wholly owned subsidiary, Delta Towing LLC (Delta Towing),
entered into an asset purchase agreement with Crosby Marine Transportation, LLC (Crosby Marine),
by which Delta Towing sold to Crosby Marine, and Crosby Marine acquired from Delta Towing,
substantially all of Delta Towings assets and certain liabilities for aggregate consideration of
$30 million in cash. In addition, the Company retained the working capital of the business, which
was valued at approximately $6.3 million, as of April 30, 2011. As a result of this sale, the
Company expects to record a non-cash impairment charge of approximately $13 million during the
second quarter of 2011 related to the write-down of the Delta assets included in the sale to fair
value less costs to sell.
On May 16, 2011, the Company, through its wholly-owned subsidiary, TODCO Mexico, Inc. initiated the
permanent importation of Rig 3 and related equipment and spares into Mexico, at a net cost of
approximately $8 million, which will impact second quarter 2011 financial results. Rig 3 is
currently operating under a contract with PEMEX Exploración y Producción.
John T. Rynd, Chief Executive Officer and President, stated, We are very fortunate that Craig and
Kim have moved into their new roles at Hercules Offshore. They have been valuable assets to the
Company and we look forward to the continued contributions and leadership they will bring to our
organization.
We have continued to seek opportunities to divest of non-core assets and I am pleased that we have
completed the sale of the Delta Towing assets. Crosby Marine is a premium operator and we look
forward to working with them in the future. Furthermore, we believe the permanent importation of
Rig 3 into Mexico will allow us the opportunity to participate in multi-year contracting
opportunities.
Headquartered in Houston, Hercules Offshore, Inc. operates a fleet of 50 jackup rigs, 17 barge
rigs, 65 liftboats, three submersible rigs, and one platform rig. The Company offers a range of
services to oil and gas producers to meet their needs during drilling, well service, platform
inspection, maintenance, and decommissioning operations in several key shallow water provinces
around the world.
This news release contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are
subject to a number of risks, uncertainties and assumptions, including activity levels, the terms
of our contracts and factors described in Hercules Offshores most recent periodic reports and
other documents filed with the Securities and Exchange Commission, which are available free of
charge at the SECs website at http://www.sec.gov or the Companys website at
http://www.herculesoffshore.com. Hercules Offshore cautions you that forward-looking statements are
not guarantees of future performance and that actual results or developments may differ materially
from those projected or implied in these statements.
SOURCE: Hercules Offshore, Inc.
CONTACT:
Craig Muirhead
Vice President and Treasurer
713-350-8346
Craig Muirhead
Vice President and Treasurer
713-350-8346