BHR Capital Reports Increased Position in Hornbeck Offshore Services, Inc.(HOS)

Michael Thompson‘s BHR Capital has upped its stake in Hornbeck Offshore Services, Inc.(NYSE:HOS). A recent 13G filing with the SEC shows that the fund now owns 2.40 million shares – 6.65% of the company’s outstanding common stock. Previously, BHR held around 1.58 million shares of Hornbeck Offshore.

Founded in 1980 by Larry Hornbeck, Hornbeck Offshore Services, Inc.(NYSE:HOS) is a company which operates offshore supply vessels, multi-purpose support vessels, and a shore-base facility to provide marine transportation services to exploration and production, oilfield service, offshore construction and military customers. Due to substantial pending growth of the company’s upstream fleet as a result of retrofit and newbuild programs, the company completed the sale of its Downstream segment to Genesis Marine, LLC, an affiliate of Genesis Energy, L.P. (NYSE:GEL) for $230.00 million.

In 2013, Hornbeck generated profits of $64.00 million or $2.04 per share, 73% more than a year earlier. Currently, the company trades at around $37.82 per share – almost the bottom of its 52 week price range, and has a P/E of approximately 21.00, compared to the ratio of 17.50 for the industry. The company is expected to produce earnings of over $3.10 per share this year and $4.80 per share in 2015. Analysts provide an average target price of $56.60 for Hornbeck Offshore’s stock, the mean consensus recommendation being ‘Overweight.’

Debra Fine‘s Fine Capital Partners is large shareholder at Hornbeck Offshore Services, Inc. (NYSE:HOS), owning some 2.07 million shares of the company, as of the end of 2013. Another fund which holds a significant position of 1.65 million shares is William B. Gray‘s Orbis Investment Management.

Michael Thompson manages an equity portfolio worth more than $1.20 billion. Half of that value is invested in the Services Sector and a third in the Financials. Holding 5.52 million shares, the fund is considerably exposed to New Residential Investment Corp (NYSE:NRZ), which represents 3.05% of BHR Capital’s equity portfolio

Disclosure: none.

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