Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Corporate Update (December 2021)
31 slides from Helix Energy Solutions's corporate update, Dec 6, 2021
Slide 1: Helix Energy Solutions Company Update December 2021
Helix Energy Solutions Company Update December 2021
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 2 This 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 historic
Slide 3: Helix Company Overview
HELIX COMPANY OVERVIEW Helix Energy Solutions provides specialty services to the offshore energy industry with a focus on well intervention and robotics operations • Exposure to the full energy value chain: Oil & Gas to Renewables • Oil & Gas services cover the lifecycle of a field and are critical
Slide 4: World's leading provider of well intervention and subsea robotics
• World's leading provider of both well intervention and subsea robotics technologies to offshore energy industry • Pioneer and established leader in rigless offshore well intervention with track record of 1,555 wells and over 30 years of global experience • Leading provider of well intervention sol
Slide 5: Why Choose Helix?
Why Helix? • Market leader in Well Intervention and Robotics/Trenching • Riser-based and riserless intervention capabilities • Increasing contribution of offshore renewables market • Geographically diverse scope of operations • Blue-chip customers • Purpose-built, advanced fleet • Integrated offerin
Slide 6: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Environmental • We help mitigate and remediate the environmental risks associated with offshore drilling and production operations in practice and in-service, including our decommissioning services, where we plug and abandon end-of-life wells in a safe and enviro
Slide 7: Well Intervention
Helix Well Ops is a leader in rigless offshore well intervention, providing fast, flexible and high-quality well management services Our specialist riserless and riser-based well intervention vessels and subsea systems operate worldwide to provide customer value throughout the well life cycle Low op
Slide 8: What Sets Helix Apart in Well Intervention
• Fleet of seven purpose-built well intervention vessels • Both riser-based and riserless intervention systems • 1,555 well intervention operations performed worldwide, includes production enhancement and abandonment operations • 582 well abandonment operations performed worldwide • Geographically d
Slide 9: Helix Well Intervention Vessels & Assets
9 HELIX WELL INTERVENTION VESSELS & ASSETS Q4000 (Gulf of Mexico) Dynamically positioned class 3 (“DP3”) purpose-built semisubmersible vessel for well intervention, decommissioning and other subsea projects Q5000 (Gulf of Mexico) DP3 purpose-built semisubmersible vessel for well intervention, decomm
Slide 10: Subsea Services Alliance: Integrated Approach to Subsea Well Services
Subsea Services Alliance created in 2015 to combine the expertise and capabilities of Helix and Schlumberger • Comprehensive subsea well construction, intervention and decommissioning portfolio • Helix provides marine support, operational expertise and project management capabilities • Schlumberger
Slide 11: Helix Robotics
Helix Robotics Solutions is a leading supplier of subsea engineering services, operating state of the art remote operated vehicles (ROVs), seabed trenchers, and support/construction vessels Our deep-water ROV track record spans over 25 years, including oil & gas, renewable energy, construction servi
Slide 12: Helix Robotics Vessels & Assets
Grand Canyon II (Asia Pacific) A versatile and technically advanced DP3 multi-role construction support vessel Under charter agreement through December 2021 Grand Canyon III (North Sea) A versatile and technically advanced DP3 multi- role construction support vessel Under charter agreement through M
Slide 13: What Sets Helix Apart in Robotics
• A fleet of advanced work-class ROVs and trenchers, including several units custom built to our specifications • Our subsea expertise in robotics is applicable to the renewables market, which makes up approximately 26%1 of Robotics revenues • Leading provider for water jetting and mechanical cuttin
Slide 14: Helix Production Facilities
Helix Production Facilities includes the Helix Producer 1 floating production unit (FPU), which is operating under a production handling contract until at least June 1, 2023 The segment also includes the Helix Fast Response System and our ownership of the wells and related infrastructure associated
Slide 15: Key Financial Metrics and Outlook
Key Financial Metrics and Outlook 15
Slide 16: COVID-19 and Market Events
COVID-19 AND MARKET EVENTS 16 • The ongoing COVID-19 pandemic and its impact on the global economy have resulted in significant disruption and volatility in the oil and gas market • The pandemic negatively affected the global economy and the oil and gas market; while the global economy as well as oi
Slide 17: Debt & Liquidity Profile
DEBT & LIQUIDITY PROFILE ($ in millions) 1 Cash includes cash and cash equivalents but excludes restricted cash; restricted cash at December 31, 2019 and September 30, 2021 of $54 million and $71 million, respectively, related to short-term project-related letters of credit 2 Long-term debt through
Slide 18: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt1 of $314 million at 9/30/21 • $35 million Convertible Senior Notes due 2022 – 4.25% • $30 million Convertible Senior Notes due 2023 – 4.125% • $200 million Convertible Senior Notes due 2026 – 6.75% • $49 million MARAD Debt – 4.93% • Semi-annual amortization
Slide 19: Five Year Trend
Revenue Free Cash Flow 1 1 Adjusted EBITDA and Free Cash Flow are Non-GAAP financial measures, see non-GAAP reconciliations on slide 30 2 2021 outlook midpoint $488 $581 $740 $752 $734 $623 $(81) $30 $29 $58 $22 ($100) ($80) ($60) ($40) ($20) $0 $20 $40 $60 $80 $100 $0 $200 $400 $600 $800 2016 2017
Slide 20: Revenue Dispersion
REVENUE DISPERSION ($ IN MILLIONS) Geography Segments 61% 49% 37% 40% 42% 1% 12% 28% 29% 28% 25% 27% 26% 26% 18% 6% 13% 12% 9% 5% 6% $0 $200 $400 $600 $800 2016 2017 2018 2019 2020 United States Brazil United Kingdom West Africa Other 58% 68% 74% 73% 71% 27% 21% 17% 19% 21% 15% 11% 9% 8% 8% $0 $200
Slide 21: 2021 Outlook: Forecast
21 2021 OUTLOOK: FORECAST ($ in millions) 2021 2020 Outlook Actual Revenues $ 600 - 645 734 $ Adjusted EBITDA1 85 - 100 155 Free Cash Flow1 80 - 120 80 Capital Additions2 15 - 25 32 Revenue Split: Well Intervention $ 455 - 490 539 $ Robotics 125 - 130 178 Production Facilities 65 - 70 58 Elimination
Slide 22: 2021 Outlook – Well Intervention
22 2021 OUTLOOK – WELL INTERVENTION • Q4000 (Gulf of Mexico) – vessel has contracted backlog through remainder of Q4 and into Q2 2022 • Q5000 (Gulf of Mexico) – vessel has contracted work that began in October with good utilization expected through remainder of Q4 and into Q2 2022 • IRS rental units
Slide 23: Outlook - Robotics
23 • Grand Canyon II (Asia Pacific) – vessel expected to continue performing ROV support work for decommissioning project offshore Thailand through the remainder of 2021 • Grand Canyon III (North Sea) – vessel expected to continue performing trenching work in the North Sea with good utilization expe
Slide 24: Outlook: Capital Additions & Balance Sheet
24 2021 Capital additions are currently forecasted at $15-$25 million, consisting of the following: • Maintenance Capex – $10-$20 million related to regulatory inspection costs of our systems and equipment and other maintenance capital • Recompletion Capex – $5 million of recompletion costs on one o
Slide 25: Macro Outlook Supports Upside Potential
1,125 2,342 2,661 1,844 1,434 2,324 0 800 1,600 2,400 3,200 2020A 2021E 2022E 2023E 2024E 2025E Oil & Gas • Helix business lines are primarily production focused and activity driven by Upstream OpEx budgets • COVID-19 resulted in numerous projects being delayed Renewable Energy • Robotics segment co
Slide 26: Looking Ahead - Beyond 2021
LOOKING AHEAD - BEYOND 2021 26 Returning to primarily spot market operations • Seven Well Intervention vessels in five regions in the spot market • Reducing risk as backlog increases Improving outlook despite challenges • Offshore market improving, with tighter supply and increasing rates • Expect m
Slide 27: Looking Ahead - Beyond 2021: Well Intervention
LOOKING AHEAD - BEYOND 2021 27 Well Intervention • Gulf of Mexico • Utilization and rates improving in 2022 • Awarded work through Q2; strong utilization expected in 2022 • 15K IRS utilization expected first half 2022 • Integrated offerings through Subsea Services Alliance • North Sea • Slowly recov
Slide 28: Looking Ahead - Beyond 2021: Robotics and Production Facilities
LOOKING AHEAD - BEYOND 2021 28 Robotics • Increasing renewables activity in North Sea; strong vessel utilization expected • Increasing trenching activity • Increasing site clearance opportunities • Increasing ROV activity in Gulf of Mexico • Continued strong Asia Pacific activity; • GC II expected s
Slide 29: Non-GAAP Reconciliations and Supplemental Information
Non-GAAP Reconciliations and Supplemental Information 29
Slide 30: Non-GAAP Reconciliations
30 NON-GAAP RECONCILIATIONS ($ in thousands, unaudited) Three Months Ended Year Ended 9/30/21 9/30/20 6/30/21 9/30/21 9/30/20 12/31/20 Adjusted EBITDA: Net income (loss) (19,043) $ 24,445 $ (13,683) $ (35,776) $ 15,967 $ 20,084 $ Adjustments: Income tax provision (benefit) (1,058) 5,232 (1,968) (2,9
Slide 31: Thank you
Thank you @e0000 € Helix ENERGY SOLUTIONS, 31
Helix Energy Solutions Group — Corporate Update (December 2021) on 6ix