Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Howard Weil Investor Conference 2008
30 slides from Helix Energy Solutions's conference presentation, Apr 8, 2008
Slide 1: Howard Weil Investor Conference April 9, 2008
Howard Weil Investor Conference April 9, 2008
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 Financial Information Appendix Presentation Outline
Slide 4: Helix Strategy
Helix Strategy
Slide 5: Helix Defined
Helix Defined Helix Defined World Class Global Services Contractor offering critical offshore services to the open market and our own reservoirs
Slide 6: Why Own Reservoirs
Why Own Reservoirs Backlog for Services Enabling Utilization for New Assets/Services Adds Incremental Returns through production with lower F&D costs Consistent Long-Term Sustainable Growth in a Cyclical Business
Slide 7: Contracting Services and Reservoir Assets
Contracting Services Reservoir Technology Drilling/Completion Production Facilities Construction Well Ops 90 + Engineers Q4000 - Marco Polo TLP (50%) Pipelay - - Intrepid Express - Q4000 - - Seawell - - Mobile SILs - Independence Hub Semi (20%) ROV - - 33ROVs 5 Trenchers 2 ROV Drill Units - - 6 Char
Slide 8: Oil & Gas - 2007 Reserve Report
Oil & Gas - 2007 Reserve Report Amounts in BCFe 12/31/06 Reserves 2007 Production Exploration Additions Sales Revisions 12/31/07 Reserves Shelf * 406 (52) 38 (15) (4) 373 Deepwater 130 (13) 206 (14) (5) 304 Total 536 (65) 244 (27) (9) 677 * Includes Onshore and U.K. reserves Other 12/31/07 Reserve S
Slide 9: ERT Deepwater Portfolio - Main Fields/Prospects
Gunnison Danny / Noonan Gophere Phoenix Tiger Tornado Bass Lite Bishop Ty Webb Al Czervik Motor Mouth Legend: Producing Field Non Producing Field Discovery Prospect Sale 205 Apparent High Bids ERT Deepwater Portfolio - Main Fields/Prospects Strong Service Backlog & Potential Strong Incremental Retur
Slide 10: Market Conditions
Market Conditions Strong commodity price fundamentals Continuing rise in subsea tree orders Increasing Deepwater activity Increasing number of "marginal" reservoirs Oil Prices Natural Gas Prices 2005 $44 $60 $80 $100 2006 2007 2008 2006 2007 2008 $5 $10 $15 2005
Slide 11: Objectives
Objectives 2008 Sell down interests in Oil & Gas properties capturing value while mitigating risk, reducing intercompany profit deferral and funding capital program. Complete new services assets and deepwater developments. Outperform guidance. 2009 Reduce debt. Drill deepwater wells with partners. H
Slide 12: Financial Information
Financial Information
Slide 13: Consistent Top Line Growth
Consistent Top Line Growth 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Contracting Services 93.9 139 128 110 164 240 259 300 500 936 1183 1500 Oil & Gas 16.5 12.6 32.5 70.8 63.4 62.8 137.3 243 272 430 585 600 33% CAGR Revenues in Millions Estimate
Slide 14: Bottom Line
Bottom Line 2004 2005 2006* 2007 2008 79.9 150 253 292 330 Net Income in Millions Estimate * 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 u
Slide 15: Return on Capital Invested
2003 2004 2005 2006* 2007* 7 13 17 15 11 Return on Capital Invested 7 13 17 15 Percentage (see calculation at Company's website - www.HelixESG.com) * 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
Slide 16: Significant Cash Generation
Significant Cash Generation 2004 2005 2006 * 2007 * 2008 Contracting Services 53 159 323 355 350 Oil & Gas 186 194 342 460 590 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 incrementa
Slide 17: 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
Slide 18: Helix Energy Solutions
Helix Energy Solutions Helix Energy Solutions
Slide 19: Appendix
Appendix
Slide 20: Structure / Resources
Q4000 Seawell SEA SIL Well Enhancer Structure / Resources Structure / Resources Contracting Services Marco Polo Ind. Hub Helix Producer I Shiraz Cal Dive (59%) Well Operations Drilling Reservoir Engineering & Well Techn. 4 DP DSVs 4 Sat DSVs 15 Diving Vessels 7 Pipelay/Pipebury Barges 3 Derrick Barg
Slide 21: Summary of 2008 - 2009 Hedging Positions
Summary of 2008 - 2009 Hedging Positions a
Slide 22: Services - Reservoir and Well Technology
Services - Reservoir and Well Technology Transforming subsurface uncertainty into value Helix RDS is a world class provider of reservoir and well technology services to the upstream oil and gas industry. The combination of our business scale, service scope, track record and independence make Helix R
Slide 23: 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 24: 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 25: 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 26: Helix Producer I (HPI)
DP FPU Helix Producer I ("HPI") Project Info: Vessel at Victor Lenac shipyard in Croatia Fabrication of ten topsides modules ongoing at Kiewit Offshore Services in Ingleside, Texas Installation of modules onto HPI and hook-up at Kiewit yard in 2H 2008 with offshore deployment on Phoenix field by end
Slide 27: 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 59% interest in Cal Dive Sat and Surface Diving Construction and abandonment Inspec
Slide 28: 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 4Q 2
Slide 29: 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 30: MSV Well Enhancer
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
Helix Energy Solutions Group — Howard Weil Investor Conference 2008 on 6ix