Hercules Offshore Q2

Revenues $183.69 million (-32%)
Net Cash Provided by Operating Activities $88.32 million (+28%)
Operating Income $-25.82 million
Net Income $-12,02 million
EPS $-0.14

P/E NA

Balance sheet

Assets
Current $440.90 million
Total $2,512.30 million

Liabilities
Current $255.75 million
Total $1,560.15 million

Equity $952.15 million

P/B 0.40

Release

also

Hercules rigs pick up new contracts in Gulf of Mexico

"Several Hercules Offshore rigs in the U.S. Gulf and Mexican waters have picked up new contracts.

Jackup Hercules 350, previously ready stacked, has secured a 14-day contract in the U.S. Gulf of Mexico with Dynamic Offshore Resources from July 23 to Aug. 6 at a day rate of US$44,000 to US$46,000.

Jackup Hercules 150 has picked up a 68 day contract with Hilcorp Energy at a day rate of US$34,000 to US$36,000. The contract lasts until Sept. 27. The rig is currently drilling in the East Cameron area of the U.S. Gulf..."

Using Diamond Offshore's costs(average operating costs for GOM jackups: ~45 000/ day) as a reference those two new contracts barely break-even.

Cash from operations looks good, the P/B valuation seems very low and there is plenty of cash on the balance sheet. But HERO's jackups are depriciating in value rapidly, the margins of new jackup contracts are much smaller than in the previous contracts(with the exception of the PEMEX contracts) so the cash flow will probably shrink substancially in the coming quarters. HERO's performance is tied tightly to the shallow water natural gas production and the outlook for GOM gas isn't good.
HERO's share is up 21% today, but I wouldn't touch this.