World Class

Jefferies Energy Conference

November 11-12, 2014

World Class

1

Forward-looking Statements

The information and statements made in this presentation that are not historical facts are forward-looking statements

within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of

1934. These forward-looking statements include statements concerning estimated contract expiration dates, dayrates,

expected rig demand and capital spending by customers, estimated dates for completion of repairs and upgrades and

commencement dates of new contracts, expected useful lives of rigs, expected capital cost and shipyard downtime, as

well as information that may be affected by delays in obtaining drilling permits in the Gulf of Mexico. Such statements

are subject to a number of risks, uncertainties and assumptions, including without limitation, early termination by the

customer pursuant to the contract or otherwise, cancellation or completion of certain contracts earlier than expected, our

ability to obtain, renew or extend our long-term international contracts, or enter into new contracts, when such contracts

expire, the potential inability of our customers to obtain drilling permits that would cover the entire duration of our

contracts in the U.S. Gulf of Mexico or otherwise satisfy regulatory requirements that may be then in effect, operational

difficulties, shipyard and other delays, government and regulatory actions and other factors described in the Company’s

annual report on Form 10-K and its most recent periodic reports and other documents filed with the Securities and

Exchange Commission, which are available free of charge at the SEC’s website at www.sec.gov or the company’s

website at www.herculesoffshore.com. The Company cautions you that forward-looking statements are not guarantees

of future performance and that actual results or developments may differ materially from those projected or implied in

these statements.

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Overview

World Class

Global leader in jackup drilling and liftboat

services. Marketed fleet consists of:

– 23 jackup rigs

– 23 liftboats - largest international fleet

– Operations in four continents

Listed on NASDAQ (ticker: HERO) with an

enterprise value of ~ $1.3 billion

Highly experienced senior management

team with experience in all major jackup

drilling regions worldwide

Qualified contractor with major integrated oil

companies and national oil companies

3

A Global Leader in Shallow Water Services

Regions where Hercules Offshore rigs have operated

Hercules Offshore current shore base locations

(1)

Overview Worldwide Operations

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Five-Year Contract with Maersk Oil

4

Culzean

Five-Year contract with Maersk Oil UK in Culzean Field

(1) Maersk Oil

Culzean Field

– High pressure, high temperature (HPHT) gas field

discovered in 2008

– One of the largest UK discoveries in recent years,

it could meet ~5% of the UK's energy needs in

2020 (1)

– First production estimated 2019

Executed drilling contract for work starting 3Q16

– Term: 5 years

– Dayrate: $225,000

– Mobilization Fee: $9 million

– Total Contract Value: $420 million

Maersk Oil is part of the A.P. Moller-Maersk Group

(Baa1/Stable, BBB+/Stable) with net production of

235,000 boepd

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Enhanced Newbuild Jackup for Maersk Oil Contract

5

Newbuild Enhanced JU-2000E

Turnkey yard cost of $236 million with total

delivered cost of approximately $270 million

– 10/10/80 financing from shipyard

Rig design customized to meet Maersk specs

– Enhanced cantilever capacity, crew quarters, spud

cans, leg strength and other items

Built by Jurong Shipyard

– Premier shipyard in Singapore

– 15 high-spec jackup rigs delivered or under

construction since 2007 primarily for Noble, Maersk

Drilling and Seadrill

– Jurong is part of Sembcorp Industries which also

owns PPL Shipyard in Singapore

– Offers newbuild delivery on schedule with project

startup

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Strategic Attractiveness of Maersk Contract

6

High-Grade Rig Fleet Geographic Diversity

Three ultra high-specification newbuild

jackups by 2016, from zero in early 2013

Rig enhancements to place newbuild among

the most capable jackup rigs in the North Sea

North Sea entry under 5-year drilling contract

Improves revenue mix between international

and U.S. Gulf of Mexico operations

Establishes North Sea shorebase which can

scale up as additional assets enter region

Minimize Investment Risk Enhance Operational Reputation

$420 million of backlog from 5-year contract

Cost escalation clause protect profit margins

Attractive project financing option

Design collaboration with customer/shipyard

to minimize cost creep from change orders

Enhances Company reputation as a capable

HPHT drilling contractor

Enhances marketing efforts on Hercules

Triumph and Hercules Resilience

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7

Focus on Risk Management

Risk

ManagementQH

SE

As

se

t Pro

file

Safety performance

exceeds industry

averages

Year-over-year incident

rate improvement for last

six of seven years

Behavioral based safety

training for all employees

FCPA investigation

concluded with no

penalties or findings

of wrongdoing

No near-term and

laddered maturities

All unsecured debt

Strong liquidity

$600 million investment

in newer, high-spec

assets in 2013

Sold low-end and cold

stacked assets

Revenue backlog of

$1.1 billion

Fully-insured

assets

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Total Revenue Backlog

8

Revenue Backlog

Revenue Backlog ~ $1.1 billion

Maersk

$0

$250

$500

$750

$1,000

$1,250

2010 2011 2012 2013 Current

Co

ntr

acte

d B

acklo

g (

$M

M)

* Backlog as of October 2010, October 2011, October 2012, October 2013, and October 2014, respectively

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Business Outlook

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10

Domestic Offshore Segment Overview

Source: IHS-Petrodata

U.S. GOM Supply/Demand of Marketed Jackups Global recession and Macondo

created extreme conditions in 2009

and 2010

Strong rebound in demand after

Company acquired main competitor

in April 2011, lasting through late

2013

Customer consolidation over past

year has led to current demand

softness

Jackup supply in the process of

rebalancing to demand outlook 0

10

20

30

40

50

60

70

80

Rig

Co

unt

Marketed Supply

Total Contracted

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56

(21)

35

(1)

34

22

0

15

30

45

60

75

11

Current U.S. GOM Jackup Supply vs. Demand N

um

be

r o

f R

igs

Less: Cold

Stacked

Visible

Marketed

Supply

Current

Jackup

Supply

(1) Well Services Rig 53 to move to Surinam

(2) As of October 23, 2014 Fleet Status Report

Source: IHS-Petrodata and Company filings

Planned Jackup

Mobilizations to

or from the U.S.

GOM(1)

U.S. GOM Jackup Supply and Demand as of November 7, 2014

GOM

Demand

65% Industry Utilization of

Marketed Rigs

Marketed

Supply

Hercules Offshore operates 14 of the 35 marketed rigs in the U.S. GOM

Company has 10 of the 14 marketed rigs under contract (2)

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12

Domestic Cost Reduction Measures

(1) Annualized estimates based on $35,000 per day of operating cost reduction per rig.(2) Total reduction from elimination of SPS survey costs and other maintenance items, spread across approximately two years.

4 +$50mm

Executing cost structure reductions while contributing to

improved supply balance in the U.S. GOM market.

+$60mm

Cold-Stacked

Jackups

Operating Cost

Reduction(1)

Capital Spending

Reduction(2)

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13

Domestic Offshore Average Dayrate

Quarterly Average Revenue per Day – Domestic Offshore

Source: Company filings

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

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14

International Jackup Market Snapshot

Source: IHS-Petrodata

Resilient international jackup rig

demand growth of ~4% YTD

Marketed utilization remains firm

at over 90%

Key international markets driving

demand growth

‒ Middle East

‒ Southeast Asia

‒ West Africa

‒ Mexico

Largest global consumers have

aggressive expansion plans

‒ Pemex

‒ Saudi Aramco

International Jackup Market

200

250

300

350

400

450

500

Jan 2

005

Oct 2

00

5

Jul 20

06

Apr

200

7

Jan 2

008

Oct 2

00

8

Jul 20

09

Apr

201

0

Jan 2

011

Oct 2

01

1

Jul 20

12

Apr

201

3

Jan 2

014

Oct 2

01

4

Rig

Count

Worldwide ex. U.S. GOM Jackup Supply / Demand

Total Supply

Marketed Supply

Total Contracted

Current Demand: Prior Peak Demand: 334 (Oct-08)

Current Excess Marketed Capacity: Current Stacked Capacity:

431

30

15

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15

Mobilization of the Hercules Triumph to North Sea

Oct-2014 Nov-2014 Dec-2015 Jan-2015 Feb-2015

Completion

of

Upgrades

Departs

Sri Lanka Offload in RotterdamShipyard Projects

- Spudcan

- Sponsons

- Pipe Racking System

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16

Long-Term Middle East Contract Extensions

Five-year contract extensions on the

Hercules 261 and Hercules 262

Total revenue backlog of approximately

$465 million

– Extensions are priced more than 50% above

prior dayrates

– New dayrates commence in 4Q14

Strong indication of customer’s desire for,

and longevity of jackup rigs of this class

Positive reflection of Company’s relationship

with world-class operator

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17

International Offshore Drilling Outlook

(1) Hercules Triumph dayrate does not include mob fee payments of approximately $13 million

(2) Hercules 266 dayrate does not include mob fee payment of $25 million, which will be recognized over life of contract

Source: Fleet Status Report as of October 23, 2014

Contracted Available Shipyard/En route Under Construction

Hercules Highlander SE Asia

Hercules Triumph SE Asia

Hercules Resilience W. Africa

Hercules 208 SE Asia

Hercules 260 W. Africa

Hercules 261Middle

East

Hercules 262Middle

East

Hercules 266Middle

East

Hercules 267 W. Africa

$187-189k

$108-110

$79-81k$117-

119k$117-119k (continues to Nov-2019)

$116-118k(2)

$116-118k(2)

$135-137k

$108-110k

$106-108k

$113-115k$113-115k

$135-137k (continues to Mar-2019)

Q1 Q2 Q3 Q4

Delivery Q2 2016; Five Year Contract @ $224-$226k commencing in Q3 2016

$214-216k (1)

Q4

$161-163k

$83-85k

FY 2014E FY 2015E

Q1 Q2 Q3

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18

International Liftboats

Largest liftboat provider in West Africa

‒ Activity levels expected to be volatile in 2014 through mid-2015, driven by Nigeria

Established presence in Middle East

‒ Robust demand driven by construction and well servicing activity

(1) Actively marketed liftboats excludes one Nigeria cold stacked liftboat

(2) Includes reimbursables

(3) Utilization is defined as the total number of operating days in the period as a percentage of the total number of calendar days in the period

our liftboats were actively marketed

Leg Length/ Actively Revenue Per

Liftboat Class Total Number Marketed Day Per Operating

(Feet) of Liftboats Liftboats(1) Liftboat(2) Days Utilization(3)

230-280 4 4 48,585$ 90 75%

170-215 6 6 46,778$ 29 16%

140-150 4 4 15,793$ 90 75%

120-130 7 7 13,495$ 106 50%

105 3 2 -$ 0 0%

Total/Average 24 23 27,241$ 315 46%

September 2014 International Liftboat Fleet Status

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Conclusion

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Historical Liquidity

20

Historical Cash Balance and Revolver Availability

$0

$100

$200

$300

$400

$500

$600

$ M

illi

on

s

Cash and Cash Equivalents Revolver Availability

Temporary cash draw while in the process of closing $400MM of capital to

fund Discovery Offshore acquisition.

Liquidity averaged $310 million from 1Q08 through 3Q14

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21

Investment Highlights

Company taking aggressive steps to right size domestic business with

current demand outlook

Investments in new assets improving fleet profile

Liftboat market soft for today, but long-term supply/demand dynamics

appear favorable

History of maintaining strong liquidity throughout cycles

Proactive management team committed to prudent risk management,

capital deployment and improving credit profile

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22

APPENDIX

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23

Total Debt Summary

Description Amount($MM)

Coupon

Rate

Maturity First Call Date

Senior Unsecured Notes $200 10 1/4% Apr–2019 Apr–2015 @ 107 11/16%

Senior Unsecured Notes $400 8 3/4% Jul–2021 Jul–2017 @ 104 3/8%

Senior Unsecured Notes $300 7 1/2% Oct–2021 Oct–2016 @ 105 5/8%

Senior Unsecured Notes $300 6 3/4% Apr–2022 Apr–2017 @ 105 1/16%

Other $4 7 3/8% Apr–2019 --

Convertible Senior Notes $7 3 3/8% Jun–2018 --

Revolver ($150 million) Undrawn --(2) Jul–2018 --

Total Debt (1) $1,211

(1) Pro Forma for the repayment of 7.125% Senior Secured Notes due 2017

(2) Revolver interest rate is based on Total Leverage Ratio, and can range between 250 and 400 basis points

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24

Domestic Offshore Marketed Rig Data

(1) Contract dayrates shown in the table above are full contract operating dayrates, which may include estimated contractual adjustments for changes in operating costs and reimbursable cost

items for operating expenses such as crew and may also include additional services and personnel that may be requested by the customer from time-to-time. However, the dayrates do not

include certain non-recurring revenues such as lump sum mobilizations and demobilizations. The actual dayrate will depend on a number of factors, many of which are beyond the control of

the company. The average dayrate over the term of the contract will be lower and could be substantially lower and are subject to numerous risks, as disclosed in the company’s filing with the

Securities and Exchange Commission. Lower dayrates typically apply when the rig is under contract but not fully operating, including periods when the rig is moving, waiting on weather, on

standby, down for repairs or maintenance or during other operational delays or events of force majeure.

Contract Est. Duration

Rig Name Rig Type Location Customer / Status Dayrate ($000s)(1)

Days Date

Hercules 120 120' - MC, TD GOM Chevron 81-83 69 12/31/14

Hercules 150 150' - ILC, TD GOM Ready Stacked

Hercules 173 173' - MC, TD GOM Chevron 81-83 69 12/31/14

Hercules 200 200' - MC, TD GOM Ready Stacked

Hercules 201 200' - MC, TD GOM Ready Stacked

Hercules 205 200' - MC, TD GOM Renaissance 101-103 91 01/22/15

Hercules 209 200' - MC, TD GOM Ready Stacked

Hercules 213 200' - MC, TD GOM EPL / EXXI 110-112 1 10/24/14

Hercules 214 200' - MC, TD GOM Ready Stacked

Hercules 251 250' - MS, TD GOM Gulf Coast 102-104 30 11/22/14

104-106 14 11/06/14

109-111 60 01/05/15

GOM 101-103 23 11/15/14

113-115 180 05/14/15

Hercules 264 250' - MC, TD GOM Castex 123-125 66 12/28/14

Hercules 300 300' - MC, TD GOM Arena 103-105 282 08/01/15

Hercules 350 350' - ILC, TD GOM Arena 139-141 146 03/18/15

Average (4) 74 days

Hercules 253 250' - MS, TD GOM EPL / EXXI

Hercules 263 250' - MC, TD Tana

Domestic Offshore Fleet Status as of 10/23/14

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25

International Offshore Marketed Rig Data

(1) Contract dayrates shown in the table above are full contract operating dayrates, which may include estimated contractual adjustments for changes in operating costs and reimbursable cost

items for operating expenses such as crew and may also include additional services and personnel that may be requested by the customer from time-to-time. However, the dayrates do not

include certain non-recurring revenues such as lump sum mobilizations and demobilizations. The actual dayrate will depend on a number of factors, many of which are beyond the control of

the company. The average dayrate over the term of the contract will be lower and could be substantially lower and are subject to numerous risks, as disclosed in the company’s filing with the

Securities and Exchange Commission. Lower dayrates typically apply when the rig is under contract but not fully operating, including periods when the rig is moving, waiting on weather, on

standby, down for repairs or maintenance or during other operational delays or events of force majeure.

Contract Est. Duration

Rig Name Rig Type Location Customer / Status Dayrate ($000s)(1)

Days Date

Singapore Under Construction 04/20/16

En route 07/31/16

UK Maersk Oil UK 224-226 1,826 07/31/21

Hercules Resilience 400' - ILC, TD Gabon Ready Stacked

Sri Lanka En route 12/12/14

UK Shipyard 02/28/15

Hercules 208 200' - MC, TD India Cairn 113-115 144 03/16/15

Hercules 260 250' - ILC, TD Gabon Ready Stacked

Hercules 261 250' - ILC, TD Saudi Arabia Saudi Aramco 135-137 1,802 09/29/19

79-81 16 11/08/14

117-119 1,825 11/07/19

Hercules 266 250' - ILC, TD Saudi Arabia Saudi Aramco 116-118 403 11/30/15

Hercules 267 250' - ILC, TD Gabon Foxtrot 108-110 65 12/27/14

Average (4) 676 days

International Offshore Fleet Status as of 10/23/14

Hercules Highlander 400' - ILC, TD

Hercules Triumph 400' - ILC, TD

Hercules 262 250' - ILC, TD Saudi Arabia Saudi Aramco

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26

Historical International Liftboats Fleet Status

(1) Actively marketed liftboats excludes one Nigeria cold-stacked liftboat

(2) Includes reimbursables

(3) Utilization is defined as the total number of operating days in the period as a percentage of the total number of calendar

days in the period our liftboats were actively marketed

Leg Length/ Actively Revenue Per

Liftboat Class Total Number Marketed Day Per Operating

(Feet) of Liftboats Liftboats(1)

Liftboat(2)

Days Utilization(3)

230-280 4 4 43,702$ 276 75%

170-215 6 6 31,624$ 104 19%

140-150 4 4 16,074$ 276 75%

120-130 7 7 13,518$ 322 50%

105 3 2 10,888$ 19 10%

Fleet Average 24 23 24,420$ 997 47%

Third Quarter 2014 International Liftboat Fleet Data

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27

Crude Oil Driven Market in U.S. GOM Shelf

Oil and condensates account for a growing

percentage of U.S. GOM Shelf production

As oil prices diverged from natural gas,

E&P companies have shifted drilling

program to target oil

* Equivalent ratio of one (1) barrel of oil to six (6) mcf of natural gas

Source: Bureau of Safety and Environmental Enforcement and Bloomberg

20%

25%

30%

35%

40%

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

2004 2005 2006 2007 2008 2009 2010 2011 2012

% L

iquid

s P

roduction i

n U

.S.

GO

M S

helf

Oil:

Gas P

rice R

atio *

Production Mix Price Ratio

Relationship between Oil/Gas Price to Production Mix

2005 2008 2011 2012

28% 32% 37% 40%

% Liquids Production in U.S. GOM Shelf

2005 2008 2011 2012

Crude Oil

LLS ($/bbl)57.74 101.50 112.38 111.75

Natural Gas

HH ($/mcf)9.04 8.78 4.01 2.75

Equivalent Ratio (6:1) *1.1x 1.9x 4.7x 6.8x

Commodity Equivalent Price Ratio

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