Cal Dive Reports Second Quarter Earnings

HOUSTON, Aug. 2  /PRNewswire-FirstCall/ -- Cal Dive International, Inc. (NASDAQ:CDIS) reported second quarter net income of $26.0 million, or $0.65 per diluted share.  Included in the earnings was a pre-tax $0.8 million charge for an impairment relating to the sale of one of the Company's Marine Contracting vessels in July.  Also included in the earnings was a pre-tax $2.8 million impairment charge for the write-off of the remaining basis in an oil and gas property that ceased production in the second quarter.  Earnings before these charges was $0.71 per share.

                            Summary of Results
         (in thousands, except per share amounts and percentages)

                   Second Quarter      First Quarter       Six Months
                  2005         2004         2005        2005        2004

  Revenues      $166,531     $127,701     $159,575    $326,106    $248,416

  Gross Profit    52,419       41,415       51,873     104,292      73,157
                     32%          32%          33%         32%         29%

  Net Income      26,027       18,208       25,411      51,437      31,854
                     16%          14%          16%         16%         13%

  Diluted
   Earnings
   Per Share        0.65         0.47         0.64        1.28        0.83




Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "It is very satisfying and encouraging to report such strong financial results in a quarter which saw the regulatory drydockings of the Q4000, Seawell and three other vessels.  This maintenance activity is now largely behind us for the year and we have good backlogs for most of our fleet in steadily improving market conditions.

"We also completed a significant mature production property transaction during the quarter that should help us meet our production target range for the year.

"Following our better than budgeted start to 2005, we now expect earnings for the year to be in the increased range of $2.80 - $3.20 / share."

  Financial Highlights
   *  Revenues:  The $38.8 million increase in year-over-year second quarter
      revenues was driven primarily by significant improvements in Marine
      Contracting revenues due to improved market conditions, particularly
      in both deepwater and shelf subsea construction.
   *  Margins:  32% (34% before impairment charges) matched the margin of
      the year-ago quarter as a significant improvement in subsea
      construction margins (improved market conditions) more than offset the
      decline in well operations margins (both vessels in regulatory drydock
      in 2Q 2005).  Oil & gas production margins were down slightly due to
      the aforementioned impairment charge.
   *  SG&A:  $12.9 million increased slightly ($200,000) from the same
      period a year ago.  This level of SG&A was 8% of second quarter
      revenues, compared to 10% a year ago.
   *  Equity in Earnings:  $2.7 million reflects our share of Deepwater
      Gateway, L.L.C.'s earnings for the quarter.  This reflects a 57%
      increase from the first quarter due primarily to the early retirement
      of debt in the first quarter which resulted in a $600,000 charge, net
      to Cal Dive for the write-off of deferred financing costs in the first
      quarter and no interest expense beginning in the second quarter.
   *  Balance Sheet:  During the second quarter, the Company acquired for
      $196 million ($163 million cash), a package of mature oil and gas
      producing properties from Murphy Exploration.  Total debt as of
      June 30, 2005 was $443 million.  This represents 43% debt to book
      capitalization and with $279 million of EBITDA for the twelve months
      ended June 30, 2005, this represents 1.6 times trailing twelve month
      EBITDA.  In addition, the Company had $200 million of unrestricted
      cash as of June 30, 2005.  Subject to regulatory approval, these funds
      will be utilized for the previously announced acquisitions of certain
      assets of Stolt Offshore and Torch Offshore.



Further details are provided in the presentation for Cal Dive's quarterly conference call (see the Investor Relations page of http://www.caldive.com/ ). The call, scheduled for 9:00 a.m. Central Daylight Time on Wednesday, August 3, 2005, will be webcast live.  A replay will be available from the Audio Archives page.

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 marine diving services, robotics, well operations, facilities ownership and oil and gas production.

This press release and attached presentation contain 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.

                         CAL DIVE INTERNATIONAL, INC.

         Comparative Condensed Consolidated Statements of Operations

                                     Three Months Ended   Six Months Ended
   (000's omitted, except per share       June 30,            June 30,
    data)                              2005      2004      2005      2004
                                                   (unaudited)

  Net Revenues                       $166,531  $127,701  $326,106  $248,416
  Cost of Sales                       114,112    86,286   221,814   175,259
  Gross Profit                         52,419    41,415   104,292    73,157

     Gain on Sale of Assets, net          ---       ---       925       ---
     Selling and Administrative        12,858    12,663    25,696    23,821
  Income from Operations               39,561    28,752    79,521    49,336
     Equity in Earnings of
      Production Facilities
      Investments                       2,708     1,310     4,437     1,310
     Interest Expense, net & Other        913     1,242     2,102     2,796
  Income Before Income Taxes           41,356    28,820    81,856    47,850
     Income Tax Provision              14,779    10,228    29,319    15,248
  Net Income                           26,577    18,592    52,537    32,602
     Preferred Stock Dividends and
      Accretion                           550       384     1,100       748
  Net Income Applicable to Common
   Shareholders                       $26,027   $18,208   $51,437   $31,854

  Other Financial Data:
     Income from Operations           $39,561   $28,752   $79,521   $49,336
     Equity in Earnings of
      Production Facilities
      Investments                       2,708     1,310     4,437     1,310
     Share of Production Facilities
      Investments:
       Depreciation                       997       981     2,007       981
       Interest Expense, net              ---       633     1,419     1,267
     Depreciation and Amortization:
        Marine Contracting             10,510     8,913    19,604    17,813
        Oil and Gas Production         18,737    17,268    36,365    34,768
     EBITDA (A)                       $72,513   $57,857  $143,353  $105,475

  Weighted Avg. Shares Outstanding:
     Basic                             38,722    38,180    38,647    38,063
     Diluted                           40,981    39,452    40,925    39,357

  Earnings Per Share:
     Basic                              $0.67     $0.48     $1.33     $0.84
     Diluted                            $0.65     $0.47     $1.28     $0.83

   (A)  The Company calculates EBITDA as earnings before net interest
        expense, taxes, depreciation and amortization (which includes non-
        cash asset impairments) and the Company's share of depreciation and
        net interest expense from its Production Facilities Investments.
        EBITDA and EBITDA margin (defined as EBITDA divided by net revenue)
        are supplemental non-GAAP financial measurements used by CDI and
        investors in the marine construction industry in the evaluation of
        its business due to the measurements being similar to income from
        operations.



             Comparative Condensed Consolidated Balance Sheets

   ASSETS
   (000's omitted)                       June 30, 2005       Dec. 31, 2004
                                          (unaudited)

  Current Assets:
    Cash and equivalents                    $199,689             $91,142
    Accounts receivable                      124,885             114,709
    Other current assets                      40,776              48,110
  Total Current Assets                       365,350             253,961

  Net Property & Equipment:
    Marine Contracting                       408,030             411,596
    Oil and Gas Production                   374,470             172,821
  Equity Investments in Production
   Facilities                                153,779              67,192
  Goodwill                                    82,811              84,193
  Other assets, net                           74,146              48,995
  Total Assets                            $1,458,586          $1,038,758


  LIABILITIES & SHAREHOLDERS' EQUITY
                                         June 30, 2005       Dec. 31, 2004
                                          (unaudited)

  Current Liabilities:
    Accounts payable                         $60,050             $56,047
    Accrued liabilities                       89,694              75,502
    Current mat of L-T debt (B)                7,332               9,613
  Total Current Liabilities                  157,076             141,162

  Long-term debt (B)                         435,252             138,947
  Deferred income taxes                      151,441             133,777
  Decommissioning liabilities                117,089              79,490
  Other long term liabilities                  9,757               5,090
  Convertible preferred stock (B)             55,000              55,000
  Shareholders' equity (B)                   532,971             485,292
  Total Liabilities & Equity              $1,458,586          $1,038,758

   (B)  Debt to book capitalization - 43%. Calculated as total debt
        ($442,584) divided by sum of total debt, convertible preferred stock
        and shareholders' equity ($1,030,555).


DATASOURCE: Cal Dive International, Inc.



CONTACT:  Wade Pursell, Chief Financial Officer of Cal Dive

International, Inc., [phone], or fax, [phone]



Web site:  http://www.caldive.com/ 

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