Cal Dive Announces 2006 Earnings Guidance
December 15 2005 - 5:00PM
PR Newswire (US)
HOUSTON, Dec. 15 /PRNewswire-FirstCall/ -- Cal Dive International,
Inc. (NASDAQ:CDIS) today announced 2006 earnings guidance in a
range of $2.30 - $3.30 per diluted share. Owen Kratz, Chairman and
Chief Executive Officer, stated, "This guidance is a natural result
of the CDI budgeting process and risk mitigation approach. It
represents an attempt to provide transparency into the thought
process of CDI management. Our budget is produced between September
and December and thus guidance will be issued only once, just prior
to the beginning of the fiscal year. Quarterly conference calls
will focus upon a discussion of the accompanying key variables (see
attached list) plus any new issues that were not foreseen at the
time of the original guidance. It is management's view that
quarterly earnings variances are too often a result of timing
differences and thus there will be no attempt to provide quarterly
guidance." Mr. Kratz continued, "During 2005, we capitalized on
several significant growth opportunities that now allow us to
forecast a range of earnings for 2006 that has a mid point 138%
higher than that initially predicted for this year. This is
impressive growth by any standard and we are excited to report that
we have both the cash flow and opportunities to make further
meaningful improvement." We will make the following capital
expenditures during 2006 for maintenance purposes and to continue
our strong record of long term sustainable growth. * Marine
Contracting: approximately $110 million for maintenance and small
growth projects, along with phase three of the Stolt asset
acquisition (i.e., the Kestrel) and conversion of the Express. *
Oil and Gas Production: approximately $230 million for well work on
existing fields and the development of deepwater PUD inventory. *
Production Facilities: approximately $35 million to complete the
build and installation of the Independence Hub. Cal Dive
International, Inc., headquartered in Houston, Texas, is an energy
service company which provides alternate solutions to the oil and
gas industry worldwide for marginal field development, alternative
development plans, field life extension and abandonment, with
service lines including subsea intervention, reservoir management,
facilities ownership and oil and gas production. This press release
contains forward-looking statements that involve risks,
uncertainties and assumptions that could cause our results to
differ materially from those expressed or implied by such
forward-looking statements. All statements, other than statements
of historical fact, are statements that could be deemed
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including, without
limitation, any projections of revenue, gross margin, expenses,
earnings or losses from operations, or other financial items; any
statements of the plans, strategies and objectives of management
for future operations; any statement concerning developments,
performance or industry rankings relating to services; any
statements regarding future economic conditions or performance; any
statements of expectation or belief; and any statements of
assumptions underlying any of the foregoing. The risks,
uncertainties and assumptions referred to above include the
performance of contracts by suppliers, customers and partners;
employee management issues; complexities of global political and
economic developments, and other risks described from time to time
in our reports filed with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K for the year
ending December 31, 2004. We assume no obligation and do not intend
to update these forward-looking statements. Key Variables Marine
Contracting: Revenues of $650 - $750 million with EBITDA margins of
25% - 35% -- Shelf Contracting * Longevity of hurricane related
clean-up, inspection and repair work. * Timing of geographic
expansion opportunities * Timing / extent of divestment of minority
stake in this business unit -- Deepwater Contracting * Pricing and
performance on subsea tie back projects * Timing of the conversion
of the Express * Volume of trenching work for robotics group *
Availability of ROV support vessels for project specific charters
-- Well Operations * Mix of Well Intervention to subsea
construction work in the Gulf of Mexico for the Q4000. * Spot
market pricing for the Seawell in the North Sea Oil & Gas:
Production of 44 to 47 BCFe with a Price Deck of $50 - $60 / bbl
oil and $8 - $11/mcf for gas -- Production efficiency (LOE) --
Hedging Effectiveness -- Timing of development of deepwater PUDs --
Success of Well Exploitation Program -- Extent of hurricane related
damage and production deferrals in the 2006 season. Production
Facilities: Equity in Deepwater Gateway Earnings of $27 - $32
million -- Timing and extent of tariff income related to the tie
back of incremental production from the K2, K2 North and Genghis
Khan fields. -- Timing of the mechanical completion of the
Independence Hub Corporate: SG&A at 9% to 10% of Revenues --
Insurance: Renewal Terms and Aggregate Deductibles Incurred --
Foreign currency exchange -- Effective tax rate (36%) -- Average
shares outstanding 82 - 83 million -- Interest and preferred stock
dividend expense of $20 - 22 million DATASOURCE: Cal Dive
International, Inc. CONTACT: Wade Pursell, Chief Financial Officer
of Cal Dive International, Inc., +1-281-618-0400, or fax,
+1-281-618-0505 Web site: http://www.caldive.com/
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