Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q4 2019 Earnings Presentation
27 slides from Helix Energy Solutions's earnings presentation, Feb 25, 2020
Slide 1: 2019 4th Quarter Conference Call
2019 4th Quarter Conference Call February 25, 2020 € Helix ENERGY SOLUTIONS
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 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 historical
Slide 3: Presentation Outline
PRESENTATION OUTLINE * Executive Summary (pg. 4) * Operational Highlights by Segment (pg. 9) * Key Financial Metrics (pg. 16) * 2020 Outlook (pg. 19) * Non-GAAP Reconciliations (pg. 25) * Questions and Answers
Slide 4: Executive Summary
Slide 5: Executive Summary
EXECUTIVE SUMMARY ($ in millions, except per share data) Three Months Ended Year Ended 12/31/19 12/31/18 9/30/19 12/31/19 12/31/18 Revenues $ 171 $ 158 $ 213 $ 752 $ 740 Gross profit $ 27. $ 14 = § 55 $ 138 $ 122 16% 9% 26% 18% 16% Net income (loss) $ 8 §$ (14) $ 32, $ 58 $ 29 Diluted earnings (loss
Slide 6: Executive Summary - Highlights
EXECUTIVE SUMMARY - HIGHLIGHTS Full Year 2019 + Net income of $58 million, $0.38 per diluted share, compared to $29 million, $0.19 per diluted share, in 2018 + Adjusted EBITDA’ of $180 million compared to $162 million in 2018 * Operating cash flows of $170 million compared to $197 million in 2018 *
Slide 7: Executive Summary — Q4 2019 Operations
EXECUTIVE SUMMARY — Q4 2019 OPERATIONS Well Intervention + Utilization of 92% across the well intervention vessel fleet + 95% in the GOM * 82% in the North Sea + 98% in Brazil + 15K IRS and 10K IRS idle during quarter * Q7000 construction completed and delivered November 2019, in transit to Nigeria
Slide 8: Executive Summary — Balance Sheet
EXECUTIVE SUMMARY — BALANCE SHEET Cash and cash equivalents of $208 million at 12/31/19 * Excludes $54 million of restricted cash! at 12/31/19 Liquidity? of approximately $380 million at 12/31/19 Long-term debt? of $406 million at 12/31/19 compared to $413 million at 9/30/19 Net debt? of $143 millio
Slide 9: Operational Highlights by Segment
Operational Highlights by Segment
Slide 10: Business Segment Results
BUSINESS SEGMENT RESULTS ($in millions) Three Months Ended Year Ended 12/31/19 12/31/18 9/30/19 12/31/19 12/31/18 Revenues Well Intervention $ 142 $ 115 $ 170 $ 593 $ 561 Robotics 35 38 52 172 159 Production Facilities 17 16 14 61 64 Intercompany Eliminations (23) (11) (23) (74) (44) Total $ 171 $ 1
Slide 11: Well Intervention — Gulf of Mexico
" WELL INTERVENTION — GULF OF MEXICO Gulf of Mexico * Q5000 - 92% utilized in Q4; completed the abandonment of the second of four Droshky wells owned by Helix; performed 10K intervention work for two customers; began its five-year scheduled regulatory inspection on December 25 * @Q4000 - 98% utilize
Slide 12: Well Intervention — North Sea
12 WELL INTERVENTION — NORTH SEA North Sea * Well Enhancer - 88% utilized in Q4; worked for one customer performing production enhancement on seven wells; performed diving operations for another customer; 11 day idle period between projects * Seawell - 77% utilized in Q4; worked for two customers pe
Slide 13: Well Intervention — Brazil
1B WELL INTERVENTION — BRAZIL Brazil * Siem Helix 1 - 95% utilized in Q4; performed workover and production enhancement operations on four wells and abandonment scope on one well * Siem Helix 2 - 100% utilized in Q4; performed workover and performance enhancement operations on five wells
Slide 14: Robotics
14 ROBOTICS Grand Canyon (North Sea) - 100% utilized in Q4 through charter expiration in mid-November; performed trenching operations Grand Canyon II (Asia Pacific) - 100% utilized in Q4; performed ROV support projects for two customers in Malaysia Grand Canyon Ill (North Sea) - 17% utilized in Q4;
Slide 15: Utilization
UTILIZATION 100% 80% 60% mQ4 2019 .Q3 2019 40% 5 Q4 2018 20% 0% Well Intervention Vessels Robotics Support Vessels ROVs, Trenchers and ROVDrill . . * Grand Canyon"? + 45 ROVs? ed ee * Grand Canyon If + 1 ROVDrill unit? pan Hern Helle * Grand Canyon IIT! + 4 Trenchers? ee aMe + 07000 + Spot vessels’
Slide 16: Key Financial Metrics
Key Financial Metrics
Slide 17: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt! of $436 million at 12/31/19 * $125 million Convertible Senior Notes due 2022 - 4.25% Principal Payment sunedule at 12/31/19 ($ in millions) * $125 million Convertible Senior Notes due 2023 - 4.125% $150 $133 $133 * $33 million Term Loan - LIBOR + 3.25% $100
Slide 18: Debt & Liquidity Profile
DEBT & LIQUIDITY PROFILE $800 $749 $600 $400 $200 $0 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 mLong-term Debt mNet Debt? ~Liquidity* Liquidity? of approximately $380 million at 12/31/19 ‘ Long-term debt is net of unamortized debt discounts and issuance costs 2 Net debt is calculated as long-term
Slide 19: 2020 Outlook
2020 Outlook
Slide 20: 2020 Outlook: Forecast
20 2020 OUTLOOK: FORECAST ($ in millions) 2020 2019 Outlook Actuals Revenues $ 820 - 890 $ 752 Adjusted EBITDA'?° 180 - 210 180 Free Cash Flow! 110 - 150 31 Capital Additions* ~50 161 Revenue Split: Well Intervention $ 670-712 $ 593 Robotics 140-160 172 Production Facilities® 54-62 61 Eliminations ~
Slide 21: 2020 Outlook: Key Forecast Drivers / Assumptions
2020 OUTLOOK: KEY FORECAST DRIVERS / ASSUMPTIONS * Total backlog at December 31, 2019 was approximately $796 million, including $568 million for Well Intervention * Q7000 - assumes good first-year utilization with break-in maintenance allowances + Seawell and Well Enhancer - improved rates in 2020 *
Slide 22: 2020 Outlook: Well Intervention Q1 Update
22 2020 OUTLOOK: WELL INTERVENTION Q1 UPDATE Gulf of Mexico Q4000 - Completed multi-well campaign in early February; currently undergoing scheduled regulatory inspections; expected to be operational early March with contracted backlog into Q3 and good visibility during remainder of 2020 Q5000 - Bega
Slide 23: 2020 Outlook: Robotics Q1 Update
2020 OUTLOOK: ROBOTICS Q1 UPDATE * Grand Canyon II (Asia Pacific) - currently contracted for ROV support project through Q1; identified prospects and expected good utilization during remainder of 2020 * Grand Canyon III (North Sea) - vessel currently performing trenching operations through Q1 follow
Slide 24: 2020 Outlook: Capital Additions & Balance Sheet
24 2020 OUTLOOK: CAPITAL ADDITIONS & BALANCE SHEET 2020 Capital additions are currently forecasted at approximately $50 million, consisting of the following: * Growth Capex - $5 million related primarily to completion of the Q7000 and related intervention system + Maintenance Capex - $45 million pri
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations a Ty r r r r tive Pe tiduisman &
Slide 26: Non-GAAP Reconciliations
26 NON-GAAP RECONCILIATIONS ($ in thousands, unaudited) Three Months Ended Year Ended 12/3119 12/3118 9/30/19 42/31/19 12/31/18 Adjusted EBITDA: Net income (loss) $ 7,934 § (13,747) $ 31,622 $ 57,697 $ 28,598 Adjustments: Income tax provision 1,120 41,174 3,539 7,859 2,400 Net interest expense 2,129
Slide 27: Thank you
Thank you @e0000 é Helix ENERGY SOLUTIONS
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