Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Pritchard Capital Dallas (September 2007)
43 slides from Helix Energy Solutions's conference presentation, Sep 19, 2007
Slide 1: Pritchard Capital Dallas, Texas September 18, 2007
Pritchard Capital Dallas, Texas September 18, 2007
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 statements that could be deemed
Slide 3: Presentation Outline
Helix Strategy Contracting Services Oil & Gas Financial Information Appendix Presentation Outline H E L I X E N E R G Y S O L U T I O N S
Slide 4: Helix Strategy
Helix Strategy H E L I X E N E R G Y S O L U T I O N S
Slide 5: Two Stranded Strategy
Two Stranded Strategy Reservoir & Well Tech Services Drilling Production Facilities Construction Well Ops External Market Internal Market = Reduced Cyclicality Steady Growth And Superior Financial Returns 'Marginal' Field Focus Niche Assets & Services Lower Life Cycle Costs Backlog At Market Rates O
Slide 6: Near Term Strategic Initiatives
Near Term Strategic Initiatives H E L I X E N E R G Y S O L U T I O N S Key Steps Continue to Add Capacity to Key Contracting Services Generate Prospects and Focus Exploration Drilling on: Low Risk Shallow Water Program Deepwater Prospects which can be drilled with Q4000 Convert PUDs to PDPs Monetiz
Slide 7: Contracting Services
Contracting Services H E L I X E N E R G Y S O L U T I O N S
Slide 8: Contracting Services Key Assets and Methodologies
H E L I X E N E R G Y S O L U T I O N S Drilling/Completion Production Facilities Construction Well Ops Key Assets Q4000 Mobile Production Units Intrepid Express Caesar ROVs Q4000 Seawell Value Creating Methodologies Slimbore Wells Floater Re-Deployment Pipe Burial Non-Drill Rig Intervention 'Full c
Slide 9: Organic Growth via Asset Additions
Organic Growth via Asset Additions Doubling Service Asset Base (see CAPEX details in Appendix) Reservoir Technology Drilling/Completion Production Facilities Construction Well Ops Current Assets 120 + Engineers Q4000 - Marco Polo TLP (50%) Pipelay - - Intrepid Express - Q4000 - - Seawell - - Mobile
Slide 10: Major Capital Projects - Contracting Services
Major Capital Projects - Contracting Services DP FPU Helix Producer I MSV Caesar MSV Well Enhancer MSV Q4000
Slide 11: Contracting Services Backlog (excl. Cal Dive)
Contracting Services Backlog (excl. Cal Dive) Internal External Equity Earnings PF(1) East 245.5 1178.1 333.6 Deepwater Pipelay Production Facilities(1) Global Well Ops Canyon Offshore East 415.6 583.6 567.3 190.7 Notes Production Facilities backlog consists of (i) expected equity earnings from Deep
Slide 12: Oil & Gas
Oil & Gas H E L I X E N E R G Y S O L U T I O N S
Slide 13: Reserve Profile
Reserve Profile 2002 2003 2004 2005 2006 Helix 157 150 116 225 536 Remington 2004 2005 2006 2007 Helix 41 35 52 70 Remington Range 2002 2003 2004 2005 2006 Proved Developed 0.43 0.5 0.64 0.45 0.44 Proved Undeveloped 0.57 0.5 0.36 0.55 0.56 2002 2003 2004 2005 2006 Oil 0.46 0.5 0.54 0.4 0.41 Gas 0.54
Slide 14: Oil & Gas: Focus on Marginal Fields
Oil & Gas: Focus on Marginal Fields Mature Properties (Shallow Water) Mature Properties (Deepwater) H E L I X E N E R G Y S O L U T I O N S Marginal Development (Deepwater) Camelot Acquisition in North Sea : : : Phoenix Acquisition in Gulf of Mexico Drilling/Development of Noonan and Danny in Gulf o
Slide 15: Mature Properties (Shallow Water) - Camelot Field
Mature Properties (Shallow Water) - Camelot Field H E L I X E N E R G Y S O L U T I O N S Strategy in Action Mature property no longer wanted by major operator Value will be unlocked by rejuvenation of existing production and tie back of nearby PUD reserves. Important first North Sea transaction.
Slide 16: Mature Properties (Deepwater) - Phoenix Field
H E L I X E N E R G Y S O L U T I O N S H E L I X E N E R G Y S O L U T I O N S Mature Properties (Deepwater) - Phoenix Field Strategy in Action Production facility on Typhoon Field destroyed during 2005 hurricane season. Field acquired and renamed Phoenix. Value will be unlocked by the use of a mob
Slide 17: Deepwater Developments - Noonan & Danny Fields
H E L I X E N E R G Y S O L U T I O N S Deepwater Developments - Noonan & Danny Fields Strategy in Action Low risk, mid water drilling prospects generated in-house. Discoveries of at least 150 Bcfe announced in 1H/07 Fields relatively close to existing infrastructure and therefore can be developed c
Slide 18: Noonan and Danny Exploration Program
NOONAN 100% W.I. Exploration Program 12 of 12 Exploratory Wells Were Discoveries (1/07-7/07), 19 of 21 Since 7/06 Est. Discovered 2007 Reserves: 140 BCFE Proven: 330 BCFE P+P+P Est. Finding & Development Cost < $2.50 MCFE E. Cameron 157 60 % W.I. Main Pass 232 50% W.I. E. Cameron 316 100 % W.I. East
Slide 19: Prospect Portfolio
H E L I X E N E R G Y S O L U T I O N S Bottom-up reserve risk assessment based on historical success rates. 5-7 year drilling inventory Prospect Portfolio1 Notes: As acquired with Remington Oil & Gas. Based on July, 2006 Investor Presentation. F & D cost of $2.50 / Mcfe used throughout. Over $1 Bil
Slide 20: Financial Information
H E L I X E N E R G Y S O L U T I O N S Financial Information
Slide 21: Consistent Top Line Growth
Consistent Top Line Growth 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Contracting Services 63.9 93.9 139 128 110 164 240 259 300 500 936 1066 Oil & Gas 12.2 16.5 12.6 32.5 70.8 63.4 62.8 137.3 243 272 430 610 33% CAGR Revenues in Millions H E L I X E N E R G Y S O L U T I O N S Esti
Slide 22: Bottom Line
Bottom Line 2003 2004 2005 2006 2007 32.8 79.9 150 253 305 Net Income in Millions H E L I X E N E R G Y S O L U T I O N S Estimate * 2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead costs during the year. *
Slide 23: Significant Cash Generation
Significant Cash Generation 2003 2004 2005 2006 2007 Contracting Services 37 53 159 323 430 Oil & Gas 90 186 194 342 420 EBITDAX in Millions (see GAAP reconciliation at www.HelixESG.com) Estimate * * 2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental ov
Slide 24: Return on Capital Invested
2002 2003 2004 2005 2006 5 7 13 17 15 Return on Capital Invested 5 7 13 17 15 Percentage (see calculation at Company's website - www.HelixESG.com) H E L I X E N E R G Y S O L U T I O N S * 2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead cost
Slide 25: Debt and Net Debt to Book Capitalization
MARAD Other Long Term Debt Term B Facility ($ in millions) 6/30/07 12/31/06 12/31/05 Net Debt To Book Capitalization 40% 38% 43% Convertible Notes H E L I X E N E R G Y S O L U T I O N S Cal Dive Revolver
Slide 26: 2007 CAPEX Program
($ in Millions) Contracting Services 2007 2007 2007 Comments Drilling Drilling $68 $68 Q4000 Upgrade, H4500 Study Production Facilities Production Facilities 100 100 Helix Producer I, Shiraz Construction Construction 152 152 Caesar, ROVs, Plencher Well Operations Well Operations 105 105 Well Enhance
Slide 27: Helix Energy Solutions
a Helix Energy Solutions
Slide 28: Appendix
APPENDIX H E L I X E N E R G Y S O L U T I O N S
Slide 29: Structure / Resources
Q4000 Seawell SEA SIL Well Enhancer Structure / Resources Structure / Resources Contracting Services Marco Polo Ind. Hub Helix Producer I Shiraz Cal Dive (73%) Well Operations Drilling Reservoir Engineering & Well Techn. 4 DP DSVs 4 Sat DSVs 15 Diving Vessels 3 Pipelay Barges 5 Pipelay Barges 3 Derr
Slide 30: Oil & Gas
Oil & Gas H E L I X E N E R G Y S O L U T I O N S
Slide 31: Helix Hedges - As Of September 14, 2007
Helix Hedges - As Of September 14, 2007 H E L I X E N E R G Y S O L U T I O N S
Slide 32: Major Shelf Development Projects
Major Shelf Development Projects Project Name Working Interest % Estimated Initial Rate Predominant Hydrocarbon Phase (Net MMCFE/D) Est. 1st Production East Cameron 339 100 13 Oil Q3 2007 East Cameron 157/169 60/100 15 Gas Q3 2007 East Cameron 316 100 13 Gas Q3 2007 Brazos 436 90 6 Gas Q3 2007 High
Slide 33: Deepwater Development Projects
Deepwater Development Projects Project Name Working Interest Estimated Initial Rate Predominant Hydrocarbon Phase 1st Production % (Net MMCFE/D) Est. Atwater Valley 426 "Bass Lite" 18 20 Gas Q1 2008 Garden Banks 506 "Danny" "Noonan" 100 100 Oil & Gas Q3 2008 Green Canyon 236/237 "Phoenix" 100 175 Oi
Slide 34: Contracting Services
Contracting Services H E L I X E N E R G Y S O L U T I O N S
Slide 35: Services - Drilling and Completion
Casing/Riser Water Depth TD BML Hole Size 9 5/8" = 8500 ft 12000 ft 43/4" 13 3/8" = 6000 ft 14000 ft 6 / 8 1/2" 16" = 4000 ft 16000 ft 6 / 8 1/2" 13 5/8" surface BOP 13 5/8" Sub sea shut off and disconnect device Combination of proven surface BOP and slimhole D&C technology Modular packages Preserve
Slide 36: Services - Production Facilities
Marco Polo TLP (50%) Located in 4,300 ft. in Green Canyon 608 Processing capacity: 120,000 BOPD 300 MMCFD Host facility for Marco Polo K2 Unit Genghis Khan (2007) Services - Production Facilities Independence Hub (20%) Located in 8,000 ft. in Mississippi Canyon Block 920 Processing capacity of 1 BCF
Slide 37: Services - Construction
Technically diverse DP Fleet consisting of reeled pipelay vessels Express and Intrepid and S-Lay vessel Caesar (2008) Specialized Assets Target Niche Markets Global Operations Under Cal Dive International; Helix owns 73% interest in Cal Dive Sat and Surface Diving Construction and abandonment Inspec
Slide 38: Services - Well Operations
Life of field services Recognized industry leader Alternative to drill rig 25% - 50% cost advantage Riser based technology Market growing rapidly with tree deployments Established position in largest world market Property sales to Independents SIL based technology Signed 4 year $250 million well int
Slide 39: Well Enhancer MSV
MSV Well Enhancer Specifications: DP3 Well Intervention Vessel Length of 132 meter 7" 10,000 psi subsea intervention lubricator Electric line, slick line and coiled tubing capabilities Cement and compressor plant 160 Te. Huisman multi purpose tower 18 man saturated dive system with hyperbaric lifebo
Slide 40: DP FPU Helix Producer I
DP FPU Helix Producer I ("HPI") Project Info: Vessel at Victor Lenac shipyard in Croatia and expected to arrive in the US in 1Q 2008 Fabrication of ten topsides modules ongoing at Kiewit Offshore Services in Ingleside, Texas Installation of modules onto HPI and hook-up to take at Kiewit yard in 2Q20
Slide 41: MSV Caesar S-Lay Vessel Conversion
MSV Caesar S-Lay Vessel Conversion Specifications: Length: 146 meter Transit Speed 13 knots Tension: 405 mT A&R Winch Pipe Range: 4" to 36" Stinger Length: 90 meter Main Crane: 300 mT Pipe Transfer Crane: 36 mT A-Frame: 450 mT Project Info: Vessel at COSCO yard in Nantong China First project in 2Q20
Slide 42: Q4000 Vessel and Drilling Upgrade
Q4000 Vessel and Drilling Upgrade Vessel Upgrade Installation of 2 x 900 HP bow thrusters (making total of 8 thrusters) Installation of two 54" OD cross braces Upgrade from MOU to MODU Installation of variable frequency drives on existing thrusters to reduce load and fuel consumption and wear Re-bui
Slide 43: We Are 'Exporting' Our Business Model
Houston Aberdeen Perth Houston Aberdeen Singapore Houston Dallas Aberdeen Houston New Iberia Singapore Perth London Aberdeen Kuala Lumpur Perth H E L I X E N E R G Y S O L U T I O N S We Are 'Exporting' Our Business Model Houston Rotterdam Perth
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