Hornbeck Offshore Transportation Llc News

Genesis Energy has completed the previously announced acquisition of all the assets of the downstream transportation business of Hornbeck Offshore Transportation, LLC. The purchase price was approximately $230 million plus customary adjustments. The acquired business is primarily comprised of nine barges and nine tug boats which transport crude oil and refined petroleum products, principally serving refineries and storage terminals along the Gulf Coast, Eastern Seaboard, Great Lakes and Caribbean. Hornbeck and Genesis say they have also entered into transition service agreements to facilitate a smooth transition of operations and uninterrupted services for both employees and customers.

Genesis Energy, L.P. has agreed to acquire for approximately US$230-million all the assets of the downstream transportation business of Hornbeck Offshore Transportation, LLC (“Hornbeck”). The business is primarily comprised of nine barges and nine tug boats which transport crude oil and refined petroleum products, principally serving refineries and storage terminals along the Gulf Coast, Eastern Seaboard, Great Lakes and Caribbean. At the closing of the transaction, Hornbeck and Genesis expect to enter into transition service agreements to facilitate a smooth transition of operations and uninterrupted services for both employees and customers.

HORNBECK-LEEVAC Marine Services, Inc. announced that it has changed its name to Hornbeck Offshore Services, Inc. The new corporate name was approved at the company's recent annual meeting of stockholders. The name of the tug and tank barge owning subsidiary, LEEVAC Marine, LLC, has also been changed to Hornbeck Offshore Transportation, LLC. The name changes are effective immediately. Todd M. Hornbeck, President and CEO remarked, "These name changes will allow us to operate under a common identity across each of our operating divisions and facilitate the markets' identification with each of our services under one name and one logo.

Shipyards in most major shipbuilding centers around the country are busy with double-hulled barge projects. The required phase out by OPA-90 regulations of single hulled barges over 25 years old by 2005 is the reason why there is considerable activity in this sector. Many petroleum transportation companies are building new barges and some barges with useful life remaining are being double hulled…so there is a good mix of new construction and renovation. This elevated level of building activity has led one strictly repair yard to take on new barge construction activity. For example the Manitowoc Marine Group's repair yard in Toledo, Ohio has its first new build in 15 years. They have under construction a 110,000 barrel barge for Hornbeck Offshore Transportation LLC, Mandeville, La.