Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — CAL Dive International — Q4 2005 Earnings Presentation
23 slides from Helix Energy Solutions's earnings presentation, Mar 6, 2006
Slide 1: Fourth Quarter 2005 Earnings Conference Call
Owen Kratz - Chief Executive Officer Martin Ferron - President Wade Pursell - Chief Financial Officer Fourth Quarter 2005 Earnings Conference Call March 1, 2006
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This press release and attached presentation contain 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 tha
Slide 3: Presentation Outline
Presentation Outline I. Summary of Results II. Operational Highlights by Segment A. Marine Contracting i. Shelf Contracting ii. Deepwater Contracting B. Production Facilities C. Oil & Gas Production III. Strategic Overview and Name Change IV. Questions & Answers 3
Slide 4: Summary of Results
Summary of Results (all amounts in thousands, except per share amounts and percentages) 4 Fourth Quarter Fourth Quarter Third Quarter 2005 2004 2005 Revenues $264,028 162,990 $209,338 Gross Profit 95,852 53,030 82,928 36% 33% 40% Net Income 56,006 25,269 42,671 21% 16% 20% Diluted Earning Per Share
Slide 5: Earnings Growth Estimate (Net Income in Millions)
2002 2003 2004 2005 2006 12.4 32.8 79.9 143.2 190.9 83 5 Earnings Growth Estimate (Net Income in Millions) Guidance Range 12 33 80 143 273 191
Slide 6: Return on Capital Invested
2001 2002 2003 2004 2005 2005 12.3 4.9 7.4 13.4 16.5 22.4 6 Return on Capital Invested 4th QTR (See GAAP reconciliation at Company's website - www.caldive.com) 12 5 7 13 17 22
Slide 7: Debt to Book Capitalization
MARAD Construction and Other Long Term Debt Revolving Credit 7 (Amounts in Millions) 12/31/05 12/31/04 12/31/03 12/31/02 Debt To Book Capitalization 40% 35% 22% 40% Convertible Notes
Slide 8: Marine Contracting (MC)
Marine Contracting (MC) Fourth Quarter Fourth Quarter Third Quarter 2005 2004 2005 Revenues $203,249 $101,451 $144,398 Gross Profit 60,796 16,152 42,052 30% 16% 29% 8 (Amounts reflected are before intercompany eliminations and pre-tax charges for marine asset value impairments in Q4/04) Q4/05: Overa
Slide 9: Marine Contracting (MC) cont.
Marine Contracting (MC) cont. Gross profit margins improved by 14 points year over year and by one point sequentially, due to better utilization and pricing. The sequential improvement would have been better still without one time integration costs linked to the introduction of the newly acquired as
Slide 10: Assets in Marine Contracting Segments
Assets in Marine Contracting Segments Segment Shelf Deepwater Activity Pipelay Rider Intrepid Brave Express DLB 8011 Caesar2 Well Operations Q4000 Seawell Robotic Intervention Northern Canyon3 Work Class ROVs x 244 Observation ROVs x 4 Trenching Vehicles x 4 Saturation Diving Uncle John Eclipse Myst
Slide 11: Assets in Marine Contracting Segments
Assets in Marine Contracting Segments Segment Shelf Deepwater Activity Saturation Diving Cal Diver I Cal Diver II Constitution Midnight Star Portable Systems x 3 Air Diving Moored Vessels x 6 Utility Vessels x 9 General Diving Equipment 50% of DLB801 sold in January. Caesar to enter service early in
Slide 12: MC - Shelf Contracting
MC - Shelf Contracting Fourth Quarter Fourth Quarter Third Quarter 2005 2004 2005 85% 65% 65% Utilization Q4/05: Utilization reached a record level due to incremental demand caused by hurricanes Katrina and Rita. Q1/06 and Outlook: We expect this level of utilization to be maintained at least throug
Slide 13: MC - Shelf Contracting Strategic Acquisitions Update
MC - Shelf Contracting Strategic Acquisitions Update The DB 801 was acquired from Stolt in early January and promptly mobilized to the Mexican market. A local company named Oceanografia purchased 50% of the asset and has the right to purchase the other 50%, after three years, under the terms of a ch
Slide 14: MC - Deepwater Contracting
MC - Deepwater Contracting Fourth Quarter Fourth Quarter Third Quarter 2005 2004 2005 Pipelay 96% 82% 100% Well Operations 98% 92% 94% Robotics 75% 59% 67% Utilization Q4/05: Pipelay asset utilization increased by 14% year over year due to improved market conditions, particularly for tie-back projec
Slide 15: MC - Deepwater Contracting Outlook
MC - Deepwater Contracting Q1/06 and Outlook: The very strong deepwater pipelay market will likely result in both the Intrepid and Express1 being near fully utilized in 2006. Around 100 days of utilization will be achieved on internal projects. Both the Q4000 and the Seawell have very strong order b
Slide 16: Production Facilities
Production Facilities Fourth Quarter Fourth Quarter Third Quarter 2005 2004 2005 Equity in Earnings $3,122 $3,555 $3,049 Production throughput (MBOe) 1,109 2,533 1,093 16 Q4/05: Production tariff income was negatively impacted by the mechanical shut-in of the first K2 well. Output from this well wil
Slide 17: Oil & Gas Production
Oil & Gas Production Fourth Quarter Fourth Quarter Third Quarter 2005 2004 2005 Revenues $69,375 $66,833 $75,463 Gross Profit 35,055 40,762 40,877 51% 61% 54% Production (BCFe): Shelf 4.6 7.1 6.1 Gunnison 2.1 2.7 2.3 Average Commodity Prices (net of hedging impact): Oil/Bbl $54.31 $39.77 $54.30 Gas/
Slide 18: Oil & Gas Production
Oil & Gas Production Q4/05: Shelf: Production of 4.6 Bcfe was 25% less than last quarter due to shut-ins from Hurricanes Katrina and Rita. Realized commodity prices were 17% higher overall than last quarter and 52% higher than those achieved in last year's fourth quarter. Natural gas made up 54% of
Slide 19: Oil and Gas Production
Oil and Gas Production 2002 2003 2004 2005 Exploitation Additions Purchased Reserves 157 150 116 225 other 225 Bcfe proven reserves as of December 31, 2005 45%/55% Proved Developed/PUD ratio 60%/40% Natural Gas/Oil ratio PV10: $1.1 billion (pre-tax) Total Proven Reserves as of Year-end (Bcfe) 19
Slide 20: Cal Dive Hedges: As Of February 28, 2006
Cal Dive Hedges: As Of February 28, 2006 20
Slide 21: Name Change
Po Name Change - ENERGY SOLUTIONS 2
Slide 22: Helix Energy Solutions Group, Inc.
Helix Energy Solutions Group, Inc. Ticker symbol: NASDAQ: HELX Website: www.HelixESG.com Trading will commence on the NASDAQ with new ticker symbol HELX on Monday March 6, 2006 22 Helix Energy Solutions H E L I X E N E R G Y S O L U T I O N S
Slide 23: 2005 Objectives Report Card
2005 Objectives Marine Contracting Revenues: $300 - 330 million ($552 million) Margins: 13% - 15% (26%) Oil and Gas 40 - 45 BCFe of production (33 Bcfe) PUD acquisition Mature property acquisition Production Facilities Equity earnings: $22 - 27 million ($11 million) Start up of production from K2/K2
CAL Dive International — Q4 2005 Earnings Presentation on 6ix