Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q4 2009 Earnings Presentation
29 slides from Helix Energy Solutions's earnings presentation, Feb 24, 2010
Slide 1: Fourth Quarter 2009 Conference Call
February 24, 2010 Fourth Quarter 2009 Conference Call Changing the way you succeed. 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains 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. All such statements, other than statements of historical fact, are “forward-looking statements” wit
Slide 3: Presentation Outline
Presentation Outline • Executive Summary Summary of Q4 2009 Results (pg. 4) Liquidity and Capital Resources (pg. 8) 2010 Outlook (pg. 9) • Operational Highlights by Segment Contracting Services (pg. 13) Oil & Gas (pg. 21) • Non-GAAP Reconciliations (pg. 26) • Questions & Answers Phoenix Project DTS
Slide 4: Executive Summary
Executive Summary ($ in millions, except per share data) (A) Results of Cal Dive, our former Shelf Contracting business, were consolidated through June 10, 2009, at which time our ownership interest dropped below 50%; thereafter, our remaining interest was accounted for under the equity method of ac
Slide 5: Executive Summary
Executive Summary Fourth quarter results reflect the following matters on a pre-tax basis: • $55.9 million of “non-cash” impairment charges due to reserve-related revisions on oil and gas properties • $22.6 million of other “non-cash” charges primarily due to the write-off of the book value associat
Slide 6: Executive Summary
Executive Summary • Contracting Services • Continued weak activity levels in general • Subsea Construction capacity diverted to internal oil and gas field development projects - - as a result, significant intercompany eliminations • Well Enhancer entered fleet in Q4 • Oil and Gas • Continued delay i
Slide 7: Executive Summary
Executive Summary • Oil and gas production totaled 9.7 Bcfe for Q4 2009 versus 9.8 Bcfe in Q3 2009; 43.8 Bcfe in total for 2009 • Avg realized price for oil of $71.48 / bbl ($68.86 / bbl in Q3 2009), including effect of settled hedges • Avg realized price for gas of $7.97/ Mcf ($8.02 / Mcf in Q3 200
Slide 8: Significant Balance Sheet Improvements
Significant Balance Sheet Improvements Debt (A) Liquidity (B) of $657 million at 12/31/09 (A) Includes impact of debt discount under our Convertible Senior Notes. (B) Defined as available revolver capacity ($386 million) plus cash ($271 million). Changing the way you succeed. 8
Slide 9: 2010 Outlook
2010 Outlook • Contracting Services demand in 1H 2010 will continue to be soft, with a rebound anticipated in 2H 2010 • Contracting Services asset utilization on Danny oil pipeline and Phoenix field development will continue to impact financial results in Q1 • Capital expenditures of approximately $
Slide 10: 2010 Outlook
2010 Outlook Broad Metrics 2010 Higher End 2010 Lower End 2009 Production Range 60 Bcfe 50 Bcfe 44 Bcfe EBITDA $550 million $450 million $490 million CAPEX $200 million $200 million $328 million (A) Commodity Price 2010 Higher End 2010 Lower End 2009 (B) Deck Oil $74.75 / bbl $74.59 / bbl $67.11 / b
Slide 11: 2010 Outlook
2010 Outlook Production Rates Key Oil and Gas Assumptions 2010 Higher End 2010 Lower End 2009 Noonan gas 55 Mmcfe/d 35 Mmcfe/d 20 Mmcfe/d (well performance) by March 1, 2010 all year Phoenix expected Mid- Q2 Mid-year 0 start-up >70 Mmcfe/d >70 Mmcfe/d No Significant Lingering 2008 Hurricanes Signifi
Slide 12: Operations Highlights
Operations Highlights Caesar departing for sea trials, Nantong, China Changing the way you succeed. 12
Slide 13: Contracting Services
Contracting Services Subsea Construction • High utilization, but significant portion used for internal E&P development • Express installed the 36-mile Danny pipe-in-pipe (8x12 -inch) in the GOM for Helix Oil & Gas • Intrepid worked on Helix Phoenix project and various other projects as DSV • Caesar
Slide 14: Contracting Services
Contracting Services ROV - - Robotics • Seasonal low utilization • Island Pioneer with deepwater trenching spread transiting from North Sea to GOM and Olympic Triton transiting from GOM to Ghana • Olympic Canyon continues to operate for Reliance offshore India on long term IRM contract • Northern Ca
Slide 15: Contracting Services
Contracting Services Well Operations North America • Q4000 installed production buoy for Phoenix field • Started 100-day deepwater well Intervention / P&A campaign for Shell • Outlook for 2010 looks positive North Sea • Seasonal low utilization • Seawell worked for BP, Total and Talisman in the Nort
Slide 16: Marine Capital Projects
Marine Capital Projects HPI in Ingleside Caesar in Ingleside Changing the way you succeed. 16
Slide 17: Helix Producer I
Helix Producer I DTS Buoy being installed by Q4000 Phoenix Green Canyon Block 237 • DTS Buoy has been installed • Subsea flowlines, export pipelines and umbilicals have been installed • Intrepid in DSV mode to pull-in the flexible risers and umbilicals through DTS buoy late February / early March •
Slide 18: Contracting Services
Contracting Services ($ in millions, except percentages) (A) Results of Cal Dive, our former Shelf Contracting business, were consolidated through June 10, 2009, at which time our ownership interest dropped below 50%; thereafter, our remaining interest was accounted for under the equity method of ac
Slide 19: Contracting Services
Contracting Services Revenue and Gross Profit by Division ($ in millions) (A) Amounts are before intercompany eliminations. See non-GAAP reconciliation on slides 25-27. Changing the way you succeed. 19
Slide 20: Contracting Services
Contracting Services (A) Includes vessels on long-term charters. * Utilization includes internal work. Changing the way you succeed. 20
Slide 21: Oil & Gas
Oil & Gas (A) Impairments related to reduction in carrying values of certain oil and gas properties due to reserve revisions, including $29.9 million of hurricane-related impairments in Q4 2008. (B) Includes $20.1 and $8.0 million of impairment charges associated with certain exploration leases for
Slide 22: Oil & Gas
Oil & Gas Operating Costs ($ in millions, except per Mcfe data) (A) Included accretion expense. (B) Excluded hurricane-related repairs of $0.6, $15.9 and $5.1 million, net of insurance recoveries, for the quarters ended December 31, 2009, December 31, 2008 and September 30, 2009, respectively. (C) I
Slide 23: Oil & Gas - Reserve Report Highlights
Oil & Gas - Reserve Report Highlights At December 31, 2009 Proved Developed Proved Undeveloped Total Total Reserves 214 364 578 (Bcfe) Shelf 112 125 237 Deepwater 102 239 341 Oil 15 15 30 (mmbbls) Gas 125 274 399 (Bcf) SEC Case PV-10 $546 $746 $1,292 (pre-tax, in millions) PV-10 Forward Strip Price*
Slide 24: Summary of Jan - Dec 2010 Hedging Positions
Summary of Jan - Dec 2010 Hedging Positions* Changing the way you succeed. 24
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Changing the way you succeed. 25
Slide 26: Non GAAP Reconciliations
Non GAAP Reconciliations Adjusted EBITDAX ($ in millions) We calculate adjusted EBITDAX as earnings before net interest expense, taxes, depreciation and amortization, and exploration expense. Further, we do not include earnings from our former interest in Cal Dive in any periods presented in our adj
Slide 27: Non GAAP Reconciliations
Non GAAP Reconciliations Revenue and Gross Profit As Reported ($ in millions) Changing the way you succeed. 27
Slide 28: Changing the way you succeed.
Changing the way you succeed.
Slide 29: Slide 29
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