Helix Energy Solutions (HLX) 8-K Cal Dive Reports Record Second Quarter Earnings of 47 Cents

EXHIBIT 99.1

PRESS RELEASE

www.caldive.com

Cal Dive International, Inc. • 400 N. Sam Houston Parkway E., Suite 400 • Houston, TX 77060-3500 • 281-618-0400 • fax: 281-618-0505

For Immediate Release		04-015
	Contact:	Wade Pursell
Date: August 4, 2004	Title:	Chief Financial Officer

Cal Dive Reports Record Second Quarter Earnings of 47 Cents

HOUSTON, TX – Cal Dive International, Inc. (Nasdaq: CDIS) reported second quarter net income of $18.2 million, or $0.47 per diluted share, essentially doubling the year ago net income of $8.9 million or $0.24 per diluted share. Second quarter revenues of $127.7 million increased 25% over the year ago quarter due primarily to improved levels of oil and gas production and higher commodity prices.

Summary of Results

(in thousands, except per share amounts and percentages)

	Second Quarter						First Quarter			Six Months
	2004			2003			2004			2004			2003
Revenues	$	127,701		$	101,839		$	120,714		$	248,416		$	190,739
Gross Profit		41,415			24,197			31,741			73,157			43,393
		32	%		24	%		26	%		29	%		23	%
Net Income		18,208			8,912			13,645			31,854			14,950
		14	%		9	%		11	%		13	%		8	%
Diluted Earnings per share		0.47			0.24			0.36			0.83			0.39

Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, “It was very satisfying to establish record quarterly earnings, even though we are in the very early stages of a Marine Contracting recovery, still in the ramp up phase forGunnisonproduction and just beginning to see a contribution from our Production Facilities business segment.

“Quarterly results from the Marine Contracting and Oil & Gas Production (ERT) segments both exceeded our expectations. In Marine Contracting, we made the best of continuing poor market conditions by focusing on cost-effective and incident free performance, while in the Oil & Gas Production segment we not only benefited from high commodity prices, but also excelled at maximizing production from our core properties.

“At the start of the year we predicted earnings for 2004 in the range of $1.30 to $1.70 per share, and stated that performance would be back loaded. After a good start, we now expect full year earnings near the top of the range.”

Financial Highlights

• Revenues: The $25.9 million increase in year-over-year second quarter revenues reflects significantly higher oil and gas production and increases in commodity prices.

• Margins: 32% was eight points better than the year ago quarter due primarily to the increased commodity prices and improved utilization and rates in the North Sea for theSeawell.

• SG&A: $12.7 million increased $4.0 million from the same period a year ago due to the new Marine Contracting compensation system and the ERT incentive compensation program. With this increase, SG&A was 10% of second quarter revenues, compared to 8.5% a year ago.

• Equity in Earnings: $1.3 million reflects our share of Deepwater Gateway L.L.C.’s earnings for the quarter. This represents the kick off of earnings in our new Production Facilities segment as mechanical completion of theMarco PoloTLP occurred at the end of March 2004 triggering the beginning of monthly demand fees. Tariff income will begin in Q3 following the beginning of production at the TLP in mid-July.

• Debt: EBITDA of $56.2 million for the second quarter, along with $30 million of proceeds from the completion of the convertible preferred issuance entered into in January 2003, enabled us to reduce total debt to $183 million (from $204 million at March 31, 2004) and build $67.3 million of unrestricted cash. This represents a debt to book capitalization ratio of 28% and a net debt to book capitalization ratio of 20%.

Further details are provided in the presentation for Cal Dive’s quarterly conference call (see the Investor Relations page of www.caldive.com). The call, scheduled for 10:00 a.m. Central Daylight Time on Thursday, Aug. 5, 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 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; as 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, 2003. 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 June 30,				Six Months Ended June 30,
(000's omitted, except per share data)	2004		2003		2004		2003
	(unaudited)
Net Revenues	$	127,701	$	101,839	$	248,416	$	190,739
Cost of Sales		86,286		77,642		175,259		147,346
Gross Profit		41,415		24,197		73,157		43,393
Selling and Administrative		12,663		8,628		23,821		17,581
Income from Operations		28,752		15,569		49,336		25,812
Equity in Earnings (Losses) of Deepwater Gateway		1,310		—		1,310		(107	)
Interest Expense (Income), net & Other		1,242		1,077		2,796		2,071
Income Before Income Taxes		28,820		14,492		47,850		23,634
Income Tax Provision		10,228		5,217		15,248		8,508
Income Before Change in Accounting Principle		18,592		9,275		32,602		15,126
Cumulative Effect of Change in Accounting Principle, net		—		—		—		530
Net Income		18,592		9,275		32,602		15,656
Preferred Stock Dividends and Accretion		384		363		748		706
Net Income Applicable to Common Shareholders	$	18,208	$	8,912	$	31,854	$	14,950
Other Financial Data:
Income from Operations	$	28,752	$	15,569	$	49,336	$	25,812
Equity in Earnings (Losses) of Deepwater Gateway		1,310		—		1,310		(107	)
Depreciation and Amortization:
Marine Contracting		8,913		8,323		17,813		16,148
Oil and Gas Production		17,268		8,008		34,768		16,205
EBITDA (1)	$	56,243	$	31,900	$	103,227	$	58,058
Weighted Avg. Shares Outstanding:
Basic		38,180		37,634		38,063		37,593
Diluted		39,452		37,732		39,357		37,699
Earnings Per Share:
Basic	$	0.48	$	0.24	$	0.84	$	0.39
Diluted	$	0.47	$	0.24	$	0.83	$	0.39

(1) The Company calculates EBITDA as earnings before net interest expense, taxes, depreciation and amortization. EBITDA is a supplemental non-GAAP financial measurement used by CDI and investors in the marine construction industry in the evaluation of its business due to the measurement being similar to performance of operations.

Comparative Condensed Consolidated Balance Sheets

ASSETS
(000'S omitted)	June 30, 2004		Dec. 31, 2003
	(unaudited)
Current Assets:
Cash and equivalents	$	67,308	$	8,811
Accounts receivable		90,581		96,607
Other current assets		30,066		25,232
Total Current Assets		187,955		130,650
Net Property & Equipment:
Marine Contracting		417,556		420,834
Oil and Gas Production		177,880		197,969
Production Facilities - Deepwater Gateway		50,300		34,517
Goodwill		82,458		81,877
Other assets, net		26,628		16,995
Total Assets	$	942,777	$	882,842

LIABILITIES & SHAREHOLDERS' EQUITY
	June 30, 2004		Dec. 31, 2003
	(unaudited)
Current Liabilities:
Accounts payable	$	42,092	$	50,897
Accrued liabilities		62,174		36,850
Current mat of L-T debt		15,736		16,199
Total Current Liabilities		120,002		103,946
Long-term debt		167,712		206,632
Deferred income taxes		103,725		89,274
Decommissioning liabilities		73,740		75,269
Other long term liabilities		1,351		2,042
Convertible preferred stock		54,016		24,538
Shareholders’ equity		422,231		381,141
Total Liabilities & Equity	$	942,777	$	882,842