More stable marine services division (tank barges) offsets the volatile offshore support vessel (OSV) division; Recent growth has been largely funded through internal cash flows; and A long-term contract with Amerada Hess Corp. provides revenue stability for tugboat and tank barge operations. The company will continue to aggressively expand both its barge and OSV fleets, which could lead to higher debt levels if cash flow weakens; The OSV and tank barge businesses are subject to very cyclical pricing; and Better-capitalized competitors may enter the deepwater market through new-vessel construction and create an oversupply of vessels, sinking day rates, and utilization. The ratings on Hornbeck Offshore Services Inc. reflect the risks posed by the company's niche position in the highly volatile
