Hercules Offshore Announces Third Quarter 2007 Earnings (y 4)

    
                   HERCULES OFFSHORE, INC. AND SUBSIDIARIES
             SELECTED FINANCIAL AND OPERATING DATA - (Continued)
                (Dollars in thousands, except per day amounts)
                                 (Unaudited)

                             Three Months Ended September 30, 2007
                                                                   Average
                                                       Average    Operating
                                                       Revenue     Expense  
                 Operating     Available  Utilization    per         per
                   Days          Days         (1)      Day (2)     Day (3)
    Domestic  
     Offshore       1,290        1,848        69.8%     $77,200     $25,591
    International  
     Offshore         589          589       100.0%      85,735      38,859
    Inland          1,149        1,377        83.4%      46,682      19,278
    Domestic  
     Liftboats      2,858        4,232        67.5%      12,483       3,857
    International  
     Liftboats      1,383        1,564        88.4%      13,080       5,487
    Other             n/a          n/a          n/a         n/a         n/a


                             Three Months Ended September 30, 2006
                                                                   Average
                                                       Average    Operating
                                                       Revenue     Expense  
                 Operating     Available  Utilization    per         per
                   Days          Days         (1)      Day (2)     Day (3)
    Domestic  
     Offshore         548          552        99.3%      84,776     $25,871
    International  
     Offshore         100          100       100.0%      78,825      40,466
    Inland              -            -            -           -           -
    Domestic  
     Liftboats      3,171        4,119        77.0%      12,641       3,238
    International  
     Liftboats        235          368        63.9%      12,050       4,158
    Other             n/a          n/a          n/a         n/a         n/a


                              Nine Months Ended September 30, 2007
                                                                   Average
                                                       Average    Operating
                                                       Revenue     Expense  
                 Operating     Available  Utilization    per         per
                   Days          Days         (1)      Day (2)     Day (3)
    Domestic  
     Offshore       2,139        2,934        72.9%     $79,824     $25,479
    International  
     Offshore         948          951        99.7%      96,006      39,544
    Inland          1,149        1,377        83.4%      46,682      19,278
    Domestic  
     Liftboats      8,505       12,517        67.9%      12,413       3,643
    International  
     Liftboats      3,797        4,585        82.8%      12,122       5,026
    Other             n/a          n/a          n/a         n/a         n/a

                              Nine Months Ended September 30, 2006
                                                                   Average
                                                       Average    Operating
                                                       Revenue     Expense  
                 Operating     Available  Utilization    per         per
                   Days          Days         (1)      Day (2)     Day (3)
    Domestic  
     Offshore       1,424        1,526        93.3%     $78,449     $24,644
    International  
     Offshore         133          137        97.1%      91,486      41,147
    Inland              -            -            -           -           -
    Domestic  
     Liftboats      8,823       11,276        78.2%      10,863       2,961
    International  
     Liftboats        947        1,092        86.7%      10,494       4,348
    Other             n/a          n/a          n/a         n/a         n/a
    (1) Utilization is defined as the total number of days our rigs or
        liftboats, as applicable, were under contract, known as operating
        days, in the period as a percentage of the total number of available
        days in the period. Days during which our rigs and liftboats were
        undergoing major refurbishments, upgrades or construction, and days
        during which our rigs and liftboats are cold-stacked, are not counted
        as available days. Days during which our liftboats are in the
        shipyard undergoing drydocking or inspection are considered available
        days for the purposes of calculating utilization.
    (2) Average revenue per rig or liftboat per day is defined as revenue
        earned by our rigs or liftboats, as applicable, in the period divided
        by the total number of operating days for our rigs or liftboats, as
        applicable, in the period. Included in Domestic Offshore revenue is a
        total of US$0.2 million and US$0.3 million related to amortization of
        contract specific capital expenditures reimbursed by the customer for
        the three and nine months ended September 30, 2007, respectively.
        There was no such revenue in the three and nine months ended
        September 30, 2006. Included in International Offshore revenue is a
        total of US$0.3 million and US$2.9 million related to amortization of
        deferred mobilization revenue and contract specific capital
        expenditures reimbursed by the customer for the three and nine months
        ended September 30, 2007, respectively, and US$0.7 million and
        US$0.8 million for the three and nine months ended
        September 30, 2006, respectively.
    (3) Average operating expense per rig or liftboat per day is defined as
        operating expenses, excluding depreciation and amortization, incurred
        by our rigs or liftboats, as applicable, in the period divided by the
        total number of available days in the period. We use available days
        to calculate average operating expense per rig or liftboat per day
        rather than operating days, which are used to calculate average
        revenue per rig or liftboat per day, because we incur operating
        expenses on our rigs and liftboats even when they are not under
        contract and earning a dayrate. In addition, the operating expenses
        we incur on our rigs and liftboats per day when they are not under
        contract are typically lower than the per-day expenses we incur when
        they are under contract. Included in International Offshore operating
        expense is a total of US$0.6 million and US$2.2 million related to
        amortization of deferred mobilization expenses for the three and nine
        months ended September 30, 2007, respectively, and US$0.6 million for
        each of the three and nine months ended September 30, 2006.

    
                Hercules Offshore, Inc. and Subsidiaries
           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 months ended
    September 30, 2007 and the nine months ended September 30, 2007 and 2006.
    We did not report non-GAAP financial measures for the three months ended
    September 30, 2006. 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 measures included
    in this press release have been reconciled to the nearest GAAP measure in
    the following table:
                                 Three Months Ended   Nine Months Ended
                                      September     September   September
                                         30,           30,         30,
                                        2007          2007        2006
    
      Operating Income:
        GAAP Operating Income          $92,864     $174,012     $105,271
        Adjustment                       2,585 (a)    3,090 (b)      -
        Non-GAAP Operating Income      $95,449     $177,102     $105,271
  
      Other Income (Expense):
        GAAP Other Income (Expense)   $(14,566)    $(16,384)     $26,563
        Adjustment                         960 (a)    1,524 (b)  (29,580)(c)
        Non-GAAP Other Income        
         (Expense)                    $(13,606)    $(14,860)     $(3,017)
  
      Provision for Income Taxes:
        GAAP Provision for Income    
         Taxes                        $(29,927)    $(52,400)    $(48,310)
        Tax Impact of Adjustment        (1,241)(a)   (1,615)(b)   10,945 (c)
        Non-GAAP Provision for Income
         Taxes                        $(31,168)    $(54,015)    $(37,365)
  
      Net Income:
        GAAP Net Income                $48,371     $105,228      $83,524
        Total Adjustment, Net of Tax     2,304 (a)    2,999 (b)  (18,635)(c)
        Non-GAAP Net Income            $50,675     $108,227      $64,889
  
      Diluted Earnings per Share:
        GAAP Diluted Earnings per    
         Share                           $0.58        $2.12        $2.61
        Adjustment per Share              0.03 (a)     0.06 (b)    (0.58)(c)
        Non-GAAP Diluted Earnings per
         Share                           $0.61        $2.18        $2.03
    
    (a) Adjustment represents US$2.6 million in severance and other
        acquisition related costs and a loss of US$1.0 million related to the
        early retirement of debt, net of a US$0.4 million derivative gain. On
        an after-tax basis, these adjustments approximated US$2.3 million, or
        three cents per diluted share.
    (b) Adjustment represents US$3.1 million in severance and other
        acquisition related costs and a loss of US$1.5 million related to the
        early retirement of debt, net of a US$0.7 million derivative gain. On
        an after-tax basis, these adjustments approximated US$3.0 million, or
        6 cents per diluted share.
    (c) Adjustment represents a gain on an after-tax basis of US$18.6 million
        related to an insurance claim settlement on the loss of Rig 25.

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