Glossary

2019 Convertible Senior Notes or 2019 Notes

1.500% convertible senior notes due 2019.

2020 Senior Notes or 2020 Notes

5.875% senior notes due 2020

2021 Senior Notes or 2012 Notes

5.000% senior notes due 2021.

AHTS

Anchor-handling towing supply

ASC

Financial Accounting Standards Board Accounting Standards Codification

Average Dayrate

When referring to OSVs or MPSVs, average revenue per day, which includes charter hire, crewing services and net brokerage revenues, based on the number of days during the period that the OSVs or MPSVs, as applicable, generated revenue; and, when referring to double-hulled tank barges, the average revenue per day, including time charters, brokerage revenue, revenues generated on a per-barrel-transported basis, demurrage, shipdocking and fuel surcharge revenue, based on the number of days during the period that the tank barges generated revenue. For purposes of tank barge brokerage arrangements, this calculation excludes that portion of revenue that is equal to the cost of in-chartering third-party equipment paid by customers.

BOEM

Bureau of Ocean Energy Management

BSEE

Bureau of Safety and Environmental Enforcement

Cabotage Laws

Laws pertaining to the privilege of operating vessels in the navigable waters of a nation.

Coastwise Trade

The transportation of merchandise or passengers by water, or by land and water, between points in the United States, either directly or via a foreign port

Continental Shelf or shelf

Offshore areas, generally less than 1,000' in depth

Conventional

When referring to OSVs, vessels that are at least 30 years old, are generally less than 200’ in length or carry less than 1,500 deadweight tons of cargo when originally built and primarily operate, when active, on the continental shelf

Deep-well

A well drilled to a true vertical depth of 15,000’ or greater, regardless of whether the well was drilled in the shallow water of the Outer Continental Shelf or in the deepwater or ultra-deepwater

Deepwater

Offshore areas, generally 1,000’ to 5,000’ in depth

Deepwater Horizon Incident

The subsea blowout and resulting oil spill at the Macondo well site in the GoM in April 2010 and subsequent sinking of the Deepwater Horizon drilling rig

DOI

U.S. Department of the Interior and all its various sub-agencies, including effective October 1, 2011 the Bureau of Ocean Energy Management ("BOEM"), which handles offshore leasing, resource evaluation, review and administration of oil and gas exploration and development plans, renewable energy development, National Environmental Policy Act analysis and environmental studies, and the Bureau of Safety and Environmental Enforcement ("BSEE") which is responsible for the safety and enforcement functions of offshore oil and gas operations, including the development and enforcement of safety and environmental regulations, permitting of offshore exploration, development and production activities, inspections, offshore regulatory programs, oil spill response and newly formed training and environmental compliance programs; BOEM and BSEE being successor entities to the Bureau of Ocean Energy Management, Regulation and Enforcement ("BOEMRE"), which effective June 2010 was the successor entity to the Minerals Management Service

Domestic Public Company OSV Peer Group

Includes Gulfmark Offshore, Inc. (NYSE:GLF), SEACOR Holdings Inc. (NYSE:CKH) and Tidewater Inc. (NYSE:TDW)

DP-1, DP-2, DP-3

Various classifications of dynamic positioning systems on new generation vessels to automatically maintain a vessel's position and heading

DWT

Deadweight tons

Effective Dayrate

The average dayrate multiplied by the average utilization rate

EIA

U.S. Energy Information Administration

EPA

United States Environmental Protection Agency

Flotel

On-vessel accommodations services, such as lodging, meals and office space

GAAP

United States generally accepted accounting principles.

GoM

The U.S. Gulf of Mexico

High-specification or High-spec

When referring to new generation OSVs, vessels with cargo-carrying capacity of greater than 2,500 DWT (i.e., 240 class OSV notations or higher), and dynamic-positioning systems with a DP-2 classification or higher; and, when referring to jack-up drilling rigs, rigs capable of working in 400-ft. of water depth or greater, with hook-load capacity of 2,000,000 lbs. or greater, with cantilever reach of 70-ft. or greater; and minimum quarters capacity of 150 berths or more and dynamic-positioning systems with a DP-2 classification or higher

IHS-CERA

The division of IHS Inc. focused on providing knowledge and independent analysis on energy markets, geopolitics, industry trends and strategy.

IHS-Petrodata

The division of IHS Inc. focused on providing data, information, and market intelligence to the offshore energy industry.

IRM

Inspection, repair and maintenance, also known as "IMR," or inspection, maintenance and repair, depending on regional preference

Jones Act

The U.S. cabotage law known as the Merchant Marine Act of 1920, as amended

Jones Act-Qualified

When referring to a vessel, a U.S.-flagged vessel qualified to engage in domestic coastwise trade under the Jones Act

Long-term Contract

A time charter of one year or longer in duration

Low-Specification or low-spec

When referring to new generation OSVs, vessels with cargo-carrying capacity between 1,500 DWT and 2,500 DWT (i.e., 200 class OSV notations), or dynamic-positioning systems with a DP-1 classification or lower.

Macondo

The well site location in the deepwater GoM where the Deepwater Horizon incident occurred as well as such incident itself

MPSV

A multi-purpose support vessel

MSRC

The Marine Spill Response Corporation

New Credit Facility

A new $300 million first-lien delayed-draw term loan credit facility by and among the Company, as Parent Borrower, Hornbeck Offshore Services, LLC as Co-Borrower, certain holders of the Company’s outstanding notes, or the Initial Lenders, and Wilmington Trust, National Association, as Administrative Agent and Collateral Agent for the lenders.

New Generation

When referring to OSVs, modern, deepwater-capable vessels with cargo-carrying capacity greater than 1,500 DWT (i.e., 200 class OSV notations or higher) and dynamic-positioning systems with a DP-1 classification or higher, subject to the regulations promulgated under the International Convention on Tonnage Measurement of Ships, 1969, which was adopted by the United States and made effective for all U.S.-flagged vessels in 1992 and foreign-flagged equivalent vessels

Old Credit Facility

The Company’s $200 million previously existing senior secured revolving credit facility, dated as of February 6, 2015, as subsequently amended, with Wells Fargo Bank, National Association, as Administrative Agent, and the lenders party thereto.

OSV

An offshore supply vessel, also known as a “PSV,” or platform supply vessel, depending on regional preference

PEMEX

Petroleos Mexicanos

Petrobras

Petroleo Brasileiro S.A.

Phantom Restricted Stock Unit

Cash-settled restricted stock unit awards

Public company OSV peer group

SEACOR Holdings Inc. (NYSE:CKH), GulfMark Offshore, Inc. (NYSE:GLF), Tidewater Inc. (NYSE:TDW), Farstad Shipping (NO:FAR), Solstad Offshore (NO:SOFF), Deep Sea Supply (NO:DESSC), DOF ASA (NO:DOF), Siem Offshore (NO:SIOFF), Groupe Bourbon SA (GBB:FP), Havila Shipping ASA (NO:HAVI), Eidesvik Offshore (NO:EIOF) and/or Ezra Holdings Ltd (SI:EZRA)

ROV

A remotely operated vehicle

Ultra-deepwater

Offshore areas, generally more than 5,000' in depth