Hercules Offshore Announces Second Quarter 2007 Earnings (y 5)

    
                                      TODCO
                      SELECTED FINANCIAL AND OPERATING DATA
                  (Dollars in thousands, except per day amounts)
                                   (Unaudited)
    
                                        Three Months Ended   Six Months Ended  
                                             June 30,            June 30,
                                          2007      2006      2007     2006
    
    U.S. Gulf of Mexico Segment:
      Number of rigs (as of end of
       period)                               21        21        21       21
      Operating days                      1,180     1,013     2,364    1,957
      Available days                      1,456     1,121     2,881    2,201
      Utilization(1)                      81.0%     90.4%     82.1%    88.9%
      Average revenue per rig per
       day(2)                           $82,180  $104,131   $86,199  $91,888
      Average operating expense per  
       rig per day(3)                   $32,738   $58,334   $27,376  $49,692
      Revenues                          $96,972  $105,485  $203,775 $179,825
      Operating expenses, excluding  
       depreciation and amortization    $47,666   $65,392   $78,869 $109,373
      Depreciation and amortization  
       expense                           $8,975   $10,535   $17,828  $21,278
      Operating income                  $40,331   $29,558  $107,078  $49,174
    
    U.S. Inland Barge Segment:
      Number of rigs (as of end of
       period)                               27        27        27       27
      Operating days                      1,233     1,509     2,575    2,963
      Available days                      1,547     1,547     3,077    3,009
      Utilization (1)                     79.7%     97.5%     83.7%    98.5%
      Average revenue per rig per day
       (2)                              $47,205   $37,227   $47,497  $35,511
      Average operating expense per  
       rig per day (3)                  $23,849   $21,603   $24,013  $19,473
      Revenues                          $58,204   $56,176  $122,305 $105,218
      Operating expenses, excluding  
       depreciation and amortization    $36,895   $33,420   $73,888  $58,593
      Depreciation and amortization  
       expense                           $6,934    $5,258   $13,558  $10,765
      Operating income                  $14,375   $17,498   $34,859  $35,860
    
    International and Other Segment:
      Number of rigs (as of end of    
       period)                               16        16        16       16
      Operating days                      1,076     1,030     2,118    2,000
      Available days                      1,365     1,243     2,715    2,259
      Utilization (1)                     78.8%     82.9%     78.0%    88.5%
      Average revenue per rig per
       day(2)                           $49,087   $43,150   $48,499  $44,366
      Average operating expense per  
       rig per day(3)                   $30,987   $26,901   $29,548  $28,830
      Revenues                          $52,818   $44,445  $102,721  $88,731
      Operating expenses, excluding  
       depreciation and amortization    $42,297   $33,438   $80,222  $65,128
      Depreciation and amortization  
       expense                           $5,400    $5,133   $10,905  $10,191
      Operating income                   $5,121    $5,874   $11,594  $13,412
    
    Delta Towing Segment:
      Revenues                          $21,372   $19,946   $42,461  $35,914
      Operating expenses, excluding  
       depreciation and amortization    $11,403    $8,319   $20,034  $14,780
      Depreciation and amortization  
       expense                           $1,009      $962    $1,991   $1,992
      General and administrative
       expenses, excluding depreciation
       and amortization                  $1,223    $1,098    $2,452   $2,353
      Operating income                   $7,737    $9,567   $17,984  $16,789
    
    Total Company:
      Revenues                         $229,366  $226,052  $471,262 $409,688
      Operating expenses, excluding  
       depreciation and
        amortization                   $138,261  $140,569  $253,013 $247,874
      Depreciation and amortization  
       expense                          $22,318   $21,888   $44,282  $44,226
      General and administrative      
       expenses, excluding depreciation
       and amortization                 $13,329   $10,688   $26,613  $20,369
      Operating income                  $55,458   $52,907  $147,354  $97,219
      Interest income                    $3,180    $2,667    $5,989   $4,766
      Interest expense                    $(685)    $(729)  $(1,362) $(1,439)
      Gain on disposal of asset          $1,715    $1,397    $7,181   $2,269
      Impairment loss on long-lived assets  $--     $(415)      $--    $(415)
      Other, net                           $434     $(283)     $454     $(48)
      Income before income taxes        $60,102   $55,544  $159,616 $102,352
      Income tax expense               $(24,323) $(20,849) $(63,106)$(38,498)
      Income before cumulative effect
       of change in accounting        
       principle                        $35,779   $34,695   $96,510  $63,854
      Cumulative effect of change in  
       accounting principle, net of tax     $--       $--       $--     $101
      Net income                        $35,779   $34,695   $96,510  $63,955
    
    (1) Utilization is the total number of revenue earning days in the
        period as a percentage of the total number of available days in the
        period for all drilling rigs in our fleet.  Days during which the
        rigs were undergoing major refurbishments, upgrades, construction or
        cold-stacked units are not counted as available days.
    
    (2) Average revenue per rig per day is defined as operating revenue
        earned per revenue earning day in the period for all drilling rigs.
    (3) Average operating expense per rig per day is defined as operating
        expenses, excluding depreciation and amortization, incurred by our
        rigs in the period divided by the total number of available days in
        the period.
    
Note - TODCO historically included days where the rigs were cold-stacked  
in the number of available days data.  The current period and historical
available days data has been adjusted to exclude the number of days where
the rigs were cold-stacked to be consistent with Hercules Offshore,
Inc. historical presentation.

    
                                      TODCO
               Reconciliation of GAAP to Non-GAAP Financial Measures
                                    (Unaudited)
                       (In thousands, except per share data)
    
We report our financial results in accordance with generally accepted    
accounting principles (GAAP). However, management believes that certain
non-GAAP performance measures and ratios may provide users of this
financial information additional meaningful comparisons between current
results and results in prior operating periods. One such non-GAAP
financial measure we may present from time to time is operating income or
net income excluding certain charges or amounts. This adjusted income
amount is not a measure of financial performance under GAAP. Accordingly,
it should not be considered as a substitute for operating income, net
income or other income data prepared in accordance with GAAP.  See the
table below for supplemental financial data and corresponding
reconciliations to GAAP financial measures for the three and six months
ended June 30, 2007.  Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, the Company's reported
results prepared in accordance with GAAP. The non-GAAP measure included
in this press release has been reconciled to the nearest GAAP measure in
the following table:
    
    
                                        Three Months            Six Months
                                       Ended June 30,         Ended June 30,
                                            2007                   2007
    
        Operating Income:
          GAAP Operating Income            $55,458               $147,354
          Adjustment (a)                     2,071 (a)              4,031 (a)
          Non-GAAP Operating Income        $57,529               $151,385
    
        Other Income (Expense):
          GAAP Other Income (Expense)       $4,644                $12,262
          Adjustment (a)                        -- (a)                 -- (a)
          Non-GAAP Other Income (Expense)   $4,644                $12,262
    
        Provision for Income Taxes:
          GAAP Provision for Income Taxes $(24,323)              $(63,106)
          Tax Impact of Adjustment (a)          -- (a)                 -- (a)
          Non-GAAP Provision for Income  
           Taxes                          $(24,323)              $(63,106)
    
        Net Income:
          GAAP Net Income                  $35,779                $96,510
          Total Adjustment, Net of Tax (a)   2,071 (a)              4,031 (a)
          Non-GAAP Net Income              $37,850               $100,541
    
        Diluted Earnings per Share:
          GAAP Diluted Earnings per Share    $0.62                  $1.66
          Adjustment per Share (a)            0.03 (a)               0.07 (a)
          Non-GAAP Diluted Earnings per  
           Share                             $0.65                  $1.73
    
    
    (a) Represents US$2.1 million and US$4.0 million of transaction costs
        incurred by TODCO for the three and six months ended June 30, 2007,
        respectively.  On an after-tax basis, these charges approximated
        US$2.1 million and US$4.0 million, or three cents and seven cents per
        diluted share, for the three and six months ended June 30, 2007,
        respectively.

Web site: http://www.herculesoffshore.com

Stephen M. Butz, Vice President Finance and Treasurer of Hercules Offshore, Inc., +1-713-979-9832 ; Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20050601/DAW092LOGO , AP Archive: http://photoarchive.ap.org , PRN Photo Desk, photodesk@prnewswire.com