Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q4 2015 Earnings Presentation
24 slides from Helix Energy Solutions's earnings presentation, Feb 23, 2016
Slide 1: Fourth Quarter 2015 Conference Call
focusing on the future. ENERGY SOLUTIONS Oe LELIX Fourth Quarter 2015 Conference Call February 23, 2016
Slide 2: Forward-looking statements and social media
Thi i that involve risks, ti It other an corer EES, fact, are "Torward:-looking statements” within the meaning of the Private Securities Litgation Reform Act of 1998, including, without limitation, any statements regarding our strategy 2, statements ea WEPN, a future uta; any p ‘management for ; any
Slide 3: Agenda
LIX ENERGY SOLUTIONS. e Executive Summary (pg. 4) e Operational Highlights by Segment (pg. 8) e Key Balance Sheet Metrics (pg. 13) e 2016 Outlook (pg. 16) e Non-GAAP Reconciliations (pg. 22) e Questions & Answers Work class ROV XLX ~ 88 Navigating the present, focusing on the future. 3
Slide 4: Executive Summary
Executive Summary focusing on the future
Slide 5: Executive Summary
Executive Summary er HELIX ENERGY SOLUTIONS. (Sinmillons, except per share data) Three Months Ended ‘Twelve Months Ended 12/31/2015 12/31/2014 9/30/2015 12/31/2015 _ 12/34/2014 Revenues $18 $ wr $ 1 $e $ fs0r Gross profit (loss): Operating $ $ Se § Lee eee Ce Os 13% 16% 18% 16% 31% Asset impairments
Slide 6: Executive Summary
Executive Summary eo HELIX © Q4 2015 EBITDA of $34.2 million compared to EBITDA of $51.5 million in Q3 2015 © Q4 2015 loss of $(3.83) per diluted share compared to earnings of $0.09 per diluted share in Q3 2015. Results were impacted by the following pre-tax charges: + Impairment charges of $256.2 m
Slide 7: Executive Summary: Balance Sheet
Executive Summary LIX ENERGY SOLUTIONS. Balance Sheet © Liquidity’ of approximately $744 million at 12/31/2015 Cash and cash equivalents totaled $494 million at 12/31/2015 $16 million of cash used for scheduled principal debt repayments in Q4 2015 * $40 million of cash used for capital expenditures
Slide 8: Operational Highlights
Operational Highlights ex HELIX
Slide 9: Segment revenues and gross profit
Months Ende J 12/31/2015 Revenues Well Intervention s 89 Robotics 62 Production Facilities 18 Intercompany elimination (1) Total $ 158 rofit * Well Intervention ‘°) 12 13% Robotics 2 4% Production Facilities ‘°) 7 38% Elimination and other 0) Total 20 13% (8) Botore asset impairment of $211.6 miion
Slide 10: Gulf of Mexico and North Sea
Gulf of Mexico © Q4000 was 98% utilized during Q4 on various projects 5000 was 78% utilized during Q4 after entering service in late October; successfully carried out its first intervention program © Helix 534 was idle in Q4; vessel is in process of being cold stacked in Q1 2016 ¢ IRS no.1 and IRS n
Slide 11: Chartered vessel fleet utilization in Q4
58% chartered vessel fleet utilization in Q4; 48% utilization for ROVs, trenchers and ROVDrills Grand Canyon was fully utilized in Q4 on jet trenching project offshore Brazil Grand Canyon II finished work in the North Sea in Q4, then transited to Gulf of Mexico where it went straight to work for Pet
Slide 12: Fleet utilization chart
ENERGY SOLUTIONS. 100% eK 79% 80% a 73% 67% 60% 50% oe 50% m8 2015 47% 03 2015 40% —— saa2010 20% o% : * Shancl Constuctor ~ Olympic Canyon ~ S2ROVS * Sonwet= + Deep Cyons + 2ROVDAunts * Welle * Grand Can * Stench * aaooo * Gard Canyon + * Heli 394 * Ret nstater * sooo * Spot vessels = ‘chanered ves
Slide 13: Navigating
Navigating the present, focusing on the future. 13
Slide 14: Debt Instrument Profile
ENERGY SOLUTIONS. Debt Instrument Profile am HELIX Total funded debt of $776 million at end of Q4 2015: Debt Instrument Profile at 12/31/2015 (Sin milions) $200 million Convertible Senior Notes — 3.25%! ($185 million net of unamortized debt discount) se $255 million Term Loan — LIBOR + 2.75%? s400 +
Slide 15: Net debt and liquidity history
(Sin millions) $2,027 $2,000 $1,903 $1,500 $1361 $1,358 s1ass 1080 1,019 $1,000, 567: : $701 Sco PE ss02 sss ssa $500 267 fm $0 42/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013. 12/31/2014 12/31/2015, Net Debt Liquidity Debt? Not of unamortized debt aiscount under our convertible se
Slide 16: 2016 Outlook
focusing on the future.
Slide 17: 2016 Outlook: EBITDA
The continuing low oil price environment does not bode well for an industry recovery in 2016 and more than likely suggests a year that will be even more challenging than 2015. Oil and gas companies (our customers) are announcing budgetary spending levels even lower than scaled back 2015 spending wit
Slide 18: 2016 Outlook: Capex
2016 Outlook CAPEX We have sought to reduce capital expenditures where possible. Our capex forecast for 2016 is approximately $240 million with two major projects consuming the substantial majority of this spending: $95 million for the completion of the topside equipment to be used on the two Siem H
Slide 19: 2016 Outlook: Balance Sheet
2016 Outlook oe HELIX ENERGY SOLUTIONS. Balance Sheet ¢ Our gross funded debt levels are scheduled to decrease from year end 2015 by $71 million ($776 million at 12/31/15 to $705 million at 12/31/16) as a result of scheduled principal payments. The senior portion of our debt at year end 2016 is sche
Slide 20: 2016 Outlook: Well Intervention
2016 Outlook — Well Intervention fe ELIX ENERGY SOLUTIONS. © The Q4000 is expected to have good utilization for 2016 The Helix 534 is currently warm stacked (scheduled to finish thruster installation and sea trials in Q1); however, given the current industry conditions, we are making plans to cold s
Slide 21: 2016 Outlook: Robotics
2016 Outlook - Robotics ie HELIX ENERGY SOLUTIONS. Deep Cygnus to be fully utilized in Q1 2016 on West Africa walk-to-work project REM Installer to have high utilization in GOM through February 2016, after which the plan is to transit the vessel to Norway to take advantage of cold stack rates until
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations focusing on the future.
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Ge HELIX (Sin mitions) ‘Three Months Ended ‘Twelve Months Ended 129812015 123172014 «9730/2015 1216172015 1231/2014 selene (loss) applicable tocommon shareholders «$= (404) Sie 10 Sse Gre se 190) justments = oe reat) (102) 4) : (101) 67 Net inte ie 9 5 9 27 18 Other income)
Slide 24: focusing on the future.
focusing on the future. ENERGY SOLUTIONS Oe LELIX HLX Listed NYSE® Follow Helix on Twitter - @Helix_ESG ; rae group www.linkedin Pp: gy
Helix Energy Solutions Group — Q4 2015 Earnings Presentation on 6ix