Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2009 Earnings Presentation
26 slides from Helix Energy Solutions's earnings presentation, May 6, 2009
Slide 1: First Quarter 2009 Earnings Conference Call May 5, 2009
First Quarter 2009 Earnings Conference Call May 5, 2009
Slide 2: 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 statements that could be deemed "forward-looking statements
Slide 3: Presentation Outline
Executive Summary Summary of Q1 2009 Results (pg. 4) 2009 Outlook (pg. 6) Liquidity and Capital Resources (pg. 7) Operational Highlights by Segment Contracting Services (pg. 11) Oil & Gas (pg. 19) Non-GAAP Reconciliations (pg. 23) Questions & Answers Presentation Outline Technician servicing Canyon
Slide 4: Highlights: Executive Summary Results of Helix
Highlights (A) ($ in millions, except per share data) Executive Summary Results of Helix RDS classified as discontinued operations. Reflects reversal of $73.5 million previously disputed accrued royalties. After $53 million of non-cash charges related to convertible preferred stock. See non GAAP rec
Slide 5: Executive Summary: Q1 2009 Matters
First quarter results included the following matters resulting in an after tax net impact of $0.28 per share: Non-cash dividends related to convertible preferred stock totaling $53.4 million $73.5 million gain from MMS royalties reversal in early 2009 based on favorable court decision $54.6 million
Slide 6: 2009 Outlook
Helix expects to further reduce net debt in 2009, exclusive of asset sales Capital expenditures of approximately $300 million $175 million relates to completion of three major vessel projects (Well Enhancer, Caesar and Helix Producer I) Most of remaining CAPEX is maintenance 2009 planned CAPEX sprea
Slide 7: Liquidity and Capital Resources
$100 million paid down on revolver in Q1 $159 million of additional borrowing capacity under revolving credit facility (as of 5/4/2009) Net debt position expected to decrease further by 12/31/2009 Monetization of non-core assets would add additional liquidity and increase net debt reduction (A) Refl
Slide 8: Liquidity and Capital Resources: Non-Core Asset Monetization
Approximately 80% of estimated remaining 2009 oil and gas production hedged (see detailed schedule on slide 22 for current hedge positions) Company is focused on efforts to monetize non-core assets and businesses Helix RDS, reservoir consulting group, sold for $25 million on April 27, 2009 Oil and g
Slide 9: Key Credit Facility Covenants
Company is in compliance as of 3/31/2009, and based on current forecasts expects to be in compliance throughout 2009 Liquidity and Capital Resources Covenant Test Explanation Collateral Coverage Ratio > 1.75 : 1 Basket of collateral to Senior Secured Debt Fixed Charge Coverage Ratio > 2.75 : 1 Conso
Slide 10: Credit Facilities, Commitments and Amortization
Credit Facilities, Commitments and Amortization $420 Million Revolving Credit Facility - committed facility through June 2011. No required amortization. $159 million available as of 5/4/09. $418 Million Term Loan B - committed facility through June 2013. $4.3 million amortization annually. $550 Mill
Slide 11: Operational Highlights - Contracting Services
Canyon Offshore ROV spread mobilizing for ENI Pegasus project in the Gulf of Mexico Operational Highlights- Contracting Services
Slide 12: Contracting Services: Subsea Construction
Subsea Construction Intrepid worked in GOM for ENI and Anadarko Express, REM Forza and Olympic Canyon working on Reliance Industries KGD6 project and were instrumental in achieving first gas on April 1. Helix installed the following structures: 30 umbilicals from 30 meters to 7 kilometers in length
Slide 13: Contracting Services: Robotics
Robotics Island Pioneer worked on various trenching projects in the North Sea in January and February before going into dry-dock in March. Vessel departed to India late March for trenching job for Reliance Industries Olympic Triton and Northern Canyon enjoyed decent utilization on deepwater projects
Slide 14: Contracting Services: Well Ops
Well Ops Q4000 was out of service for nearly one month to install new thruster (leftover work from 2008 marine upgrades) and worked in the other months for Shell on well intervention projects and for ENI on the Longhorn project Seawell had a successful quarter in the North Sea after a slow start Con
Slide 15: Contracting Services
($ in millions, except percentages) Contracting Services (A) Results of Helix RDS classified as discontinued operations. See non-GAAP reconciliation on slides 24-25. Amounts are prior to intercompany eliminations. Includes corporate and operational support overheads. Amounts primarily represent equi
Slide 16: Revenue and Gross Profit by Division
Revenue and Gross Profit by Division ($ in millions) Contracting Services (A) Results of Helix RDS classified as discontinued operations. Amounts are before intercompany eliminations. See non-GAAP reconciliation on slides 24-25. Includes corporate and operational support overheads.
Slide 17: Contracting Services vessel utilization
AS HELIX Contracting Services ¥ Quarter Ended Mareh 31 Dee 31 Vessel utilization 2009 2008 2008 Contracting Services ‘Subsea Construction Vessels (A) 79% 99% 86% ‘Well Operations 76% 26% 93% Robotics 64% 63% 80% Shelf Contracting 49% 31% 78% Production Facilities Throughput Marco Polo (MBOE) 131 3.1
Slide 18: Assets Under Construction
Assets Under Construction Contracting Services Caesar Conversion in progress in COSCO shipyard Transits to Gulf of Mexico following conversion and sea trials scheduled for fourth quarter 2009 Well Enhancer Vessel has been delivered by shipyard Tower installation and commissioning complete SIL stack
Slide 19: Operational Highlights - Oil and Gas
Phoenix field development Operational Highlights- Oil and Gas
Slide 20: Financial Highlights Oil & Gas
Financial Highlights Oil & Gas Reflects reversal of $73.5 million previously disputed accrued royalties. Includes UK production of 0.1 Bcfe in Q1 2009 and 0.2 Bcfe in Q1 2008. Including hedge impact.
Slide 21: Operating Costs Oil & Gas
Operating Costs ($ in millions, except per Mcfe data) Oil & Gas Includes accretion expense. Fourth quarter 2008 DD&A rate negatively impacted by two near end of life producing fields with high depletion rates. Excludes exploration expenses of $0.5, $1.9 and $27.0 million, and abandonment of $0.7, $0
Slide 22: Summary of Apr 2009-Dec 2010 Hedging Positions
Summary of Apr 2009-Dec 2010 Hedging Positions
Slide 23: Non GAAP Reconciliations
Caesar undergoing conversion in China Non GAAP Reconciliations
Slide 24: Adjusted EBITDAX
Adjusted EBITDAX ($ in millions) Non GAAP Reconciliations
Slide 25: Revenue and Gross Profit As Reported
Revenue and Gross Profit As Reported ($ in millions) Non GAAP Reconciliations
Slide 26: Helix Energy Solutions
Helix Energy Solutions
Helix Energy Solutions Group — Q1 2009 Earnings Presentation on 6ix