Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Credit Suisse 18th Annual Offshore Technology Conference (May 2010)
30 slides from Helix Energy Solutions's conference presentation, May 4, 2010
Slide 1: Credit Suisse 18th Annual Offshore Technology Conference
Credit Suisse 18 th Annual Offshore Technology Conference May 4, 2010
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: Historical Profile and The Future
Historical Profile • Deepwater subsea contracting • Deepwater well intervention • Robotics • Oil and gas • Deepwater • Shelf • Offshore production facilities • Shelf contracting (Cal Dive) • Reservoir evaluation and consulting The Future • Deepwater contracting services • Well Intervention • Robotic
Slide 4: Global CAPEX Growth Forecast
Global CAPEX Growth Forecast Source: Quest Offshore Resources Subsea Database, February 2010 US$26.6bn US$80.2bn 201% Increase
Slide 5: Helix ESG Business Segments
Production Facilities Marco Polo TLP (50%) Independence Hub Semi (20%) Helix Producer I (~82%) (2010) Subsea Construction Pipelay Intrepid Express Caesar- new to fleet ROV 40 ROVs 2 ROV Drill Units 6 Chartered Vessels 5 Trenchers (200 - 2000hp) Well Intervention Q4000 Seawell Well Enhancer Normand C
Slide 6: Services For Each Stage of the Field Life Cycle
Services For Each Stage of the Field Life Cycle
Slide 7: Well Intervention Assets
MODU DP3 Q4000 MSV DP2 Normand Clough MSV DP3 Well Enhancer Helix provides well operation and decommissioning services with the Seawell riserless well intervention vessel, the flagship Q4000 semisubmersible, the Well Enhancer wireline / slickline / coiled tubing intervention vessel, and the Normand
Slide 8: Subsea Construction Vessels
DP Reel Lay Vessel Express DP S-Lay Vessel Caesar DP Reel Lay Vessel Intrepid Caesar’s onboard pipe welding and testing capability allows the vessel to lay virtually unlimited lengths of pipe up to 36” in diameter. Helix’s dual-reel pipelay and subsea construction vessel has established an extensive
Slide 9: Contracting Services Facilities
Contracting Services Facilities Ingleside, Texas shore base facility – Pipe stalk length 5,230 feet – Onsite subsea component fabrication – 300’ x 700’slip can accommodate two Helix Subsea Construction vessels side by side – Constructed Helix’s Danny 36-mile 8 x 12-inch pipe-in-pipe, including jumpe
Slide 10: Helix ROV Systems
Helix is an industry leading provider of ROV and subsea trenching services to deepwater operators worldwide. The Helix ROV fleet consists of 40 vehicles, covering the spectrum of deepwater construction services. The 600 hp Supertrencher II system is designed to operate at water depths in excess of 6
Slide 11: ROV/Construction Support Vessel Fleet
Island Pioneer Olympic Triton Olympic Canyon Seacor Canyon Normand Fortress Chartered support vessels allows Helix to adjust the size and capability of its fleet to cost-effectively meet industry demands. ROV/Construction Support Vessel Fleet Normand Clough as part of CloughHelix JV
Slide 12: Helix Producer I FPU
Helix Producer I FPU • On location at Green Canyon Block 237 • Recovering buoy into the turret and quick connect / disconnect function planned for testing and acceptance by USGC starting May 4th • Flowlines and export pipelines have been hydrostatically tested and gas pipeline has been dewatered and
Slide 13: Oil & Gas
Oil & Gas
Slide 14: Helix Oil and Gas
Helix Oil and Gas 12/31/2009 Reserve Profile: • 578 Bcfe • ≈ 60% Deepwater GOM • ≈ 40% proved developed • ≈30% Oil • PV-10 $1.3 billion (SEC) • PV-10 $2.7 billion (forward strip price) Production Profile: • Current production of 135-140 mmcfe/d* • 35% of production is oil • >65% of production is dee
Slide 15: Oil and Gas Deepwater Profile
Oil and Gas Deepwater Profile • Internal Prospect Generation via Large, In-House 3-D Seismic Library • Large, Recent Long Offset 3-D Seismic Database,+1,500 Blocks • Experienced Exploration/Drilling/Operations Team - 25+ years avg. • 22 Defined Prospects, Helix is operator of 21 • Majority of Prospe
Slide 16: 2010 Outlook
Caesar departing for sea trials, Nantong, China 2010 Outlook
Slide 17: 2010 Outlook
2010 Outlook • Contracting Services demand in 2H 2010 expected to rebound o Well intervention activity has already increased and expected to continue in 2010 o Subsea Construction activity expected to pick up around mid-year o Relatively large intercompany utilization to subside in Q2 • Capital expe
Slide 18: 2010 Outlook
Broad Metrics 2010 Higher End 2010 Lower End 2009 Production Range 55 Bcfe 45 Bcfe 44 Bcfe EBITDA $500 million $400 million $490 million CAPEX $220 million $220 million $328 million Commodity Price Deck 2010 Higher End 2010 Lower End 2009 Hedged Oil $80.05 / bbl $77.65 / bbl $67.11 / bbl Gas $5.69 /
Slide 19: ENIRGY SOLUTIONS GROUF
ENIRGY SOLUTIONS GROUF Oe HELIX
Slide 20: Key Balance Sheet Metrics
Key Balance Sheet Metrics Debt (A) Liquidity (B) of $598 million at 3/31/10 (A) Includes impact of debt discount under our Convertible Senior Notes. (B) Defined as available revolver capacity ($386 million) plus cash ($212 million).
Slide 21: Liquidity and Capital Resources
Liquidity and Capital Resources Credit Facilities, Commitments and Amortization – $435 Million Revolving Credit Facility - UNDRAWN. • Facility extended to November 2012. • In July 2011, commitments reduced to $410 million. • $50 million of LCs in place. – $415 Million Term Loan B - Committed facilit
Slide 22: Financial Information
Financial Information Express spooling pipe at Ingleside Shore Base, Gulf of Mexico
Slide 23: Consistent Top-Line Growth
Note: Excludes Cal Dive and Helix RDS revenues from 2005-2009. See Non-GAAP reconciliations on slides 27-29. ($ amounts in millions) $575 $840 $1,071 $1,337 $1,152 Consistent Top-Line Growth
Slide 24: Earnings Per Share
- 2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead costs during the year. - 2007 results exclude the impact of the Cal Dive gain, impairments and other unusual items. - 2008 results exclude non-cash charges of $964 million for reduction in ca
Slide 25: Significant Cash Generation - EBITDAX
-2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead costs during the year. -2007 results exclude the impact of the Cal Dive gain, impairments and other unusual items. - 2008 results exclude non-cash impairments. -2009 results exclude non-cash i
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 27: Adjusted EBITDAX Reconciliation
HELIX ENERGY SOLUTIONS Gx 2005 = 2006 «= 2007 «2008 ©2009 (in millions) Netincome applicable to common shareholders. $ 150 $ 340 $ 312 $ (639) $ 102 Non-cash impairments 1 5 73 918 2 Gain on asset sales ay (99) (148) (73) (67) Preferred stock dividends 2 3 4 3 54 Income taxprovision 75 131 103 67 86
Slide 28: Normalized EPS Reconciliation
HELIX rn Brcr suns cout 2005 2006 2007 2008 2009 Reconciliation to Normalized EPS: (in millions, except eamings per share) ‘Net income applicable to common shareholders $ 150 $ 340 $ 312 $ (639) $ 102 Preferred stock dividends and accretion 2 3 4 - 1 Gain on subsidiary equity transaction (Cal Dive)
Slide 29: Helix ESG Revenue Reconciliation
HELIX ENERGY SOLUTIONS GROUP 2005 2008 2007 2008 2009 (in millions) Revenue As Reported $ 794 $1,328 $ 1,732 $114 $1,462 Less: Cal Dive (219) (488) (680) 77) (391) Helix ESG Revenues Soe SOS SS SOT
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