Cal Dive Reports Record Fourth Quarter Results

Cal Dive International, Inc. (Nasdaq: CDIS) reported fourth quarter net income of $56 million, or $0.69 per diluted share. This represents a 116% improvement over last year's fourth quarter results.

The Company sustained damage to certain of its oil and gas production facilities in Hurricanes Katrina and Rita during the third quarter. Included in the fourth quarter earnings was approximately $7 million pre-tax of repair and inspection costs resulting from these hurricanes.

The Company's effective tax rate fell to 27% in the fourth quarter, resulting in a 33% effective rate for 2005 due primarily to improved profitability both domestically and in foreign jurisdictions.

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

                          Fourth Quarter     Third Quarter      Full Year
                          2005       2004        2005        2005       2004

    Revenues            $264,028   $162,990    $209,338    $799,472   $543,392

    Gross Profit          95,852     53,030      82,928     283,072    171,912
                             36%        33%         40%         35%        32%

    Net Income            56,006     25,269      42,671     150,125     79,916
                             21%        16%         20%         19%        15%

    Diluted Earnings
     Per Share              0.69       0.32        0.53        1.86       1.03

Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "I am very pleased that we were able to deliver our best ever quarter despite the negative impact of hurricanes Katrina and Rita on our Oil and Gas division. As predicted, improved Marine Contracting results more than offset the deferral of around 2.5 bcfe of production and the significant repair costs mentioned above.

"Our people faced many challenges during the year and once again they excelled in this quarter by launching ten acquired assets in our Marine Contracting fleet and by bringing back our oil and gas production to near pre- storm levels.

"We are very proud of our performance in 2005 and look forward to continued growth and success during 2006. Our earnings guidance for the year remains in the range of $2.30 - $3.30 per diluted share (excluding the recently announced acquisition of Remington Oil and Gas) and we will provide our first update to that range at the end of the first quarter."

    Financial Highlights

     *  Revenues:  The $101.0 million increase in year-over-year fourth
        quarter revenues was driven primarily by significant improvements in
        Marine Contracting revenues due to the introduction of newly acquired
        assets and much better market conditions.

     *  Margins:  36% was three points better than the year-ago quarter due to
        a significant increase in Marine Contracting margins driven by
        improved market conditions.

     *  SG&A:  $21.2 million increased $7.1 million from the same period a
        year ago due primarily to additional incentive compensation accruals
        as a result of improved profitability.  This level of SG&A was 8% of
        fourth quarter revenues, compared to 9% in the year ago quarter.

     *  Equity in Earnings:  $5.3 million reflects our share of Deepwater
        Gateway, L.L.C.'s earnings for the quarter relating to the Marco Polo
        facility as well as our share of Offshore Technology Services
        Limited's earnings which is the Trinidadian company to which we
        contributed the Witch Queen.

     *  Income Tax Provision:  The Company's effective tax rate fell to 27% in
        the fourth quarter, resulting in a 33% effective rate for the full
        year 2005.  This was primarily due to the Company's ability to realize
        foreign tax credits and oil and gas percentage depletion due to
        improved profitability both domestically and in foreign jurisdictions
        and implementation of the Internal Revenue Code 199 manufacturing
        deduction as it relates to oil and gas production.  This resulted in a
        benefit for the fourth quarter for previously unrecognized deferred
        tax assets.  We estimate our effective rate for 2006 will be between
        34% and 35%.

     *  Balance Sheet:  During the fourth quarter, the Company acquired the
        Gulf of Mexico assets from Stolt Offshore.  Total debt as of
        December 31, 2005 was $447 million.  This represents 40% debt to book
        capitalization and with $353 million of EBITDA during 2005, this
        represents 1.3 times trailing twelve month EBITDA.  In addition, the
        Company had $91 million of unrestricted cash as of December 31, 2005.
        Most of these funds will be utilized for the final phases of the
        acquisition of certain assets of Stolt Offshore.