Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q3 2018 Earnings Presentation
26 slides from Helix Energy Solutions's earnings presentation, Oct 23, 2018
Slide 1: Third Quarter 2018 Conference Call
Third Quarter 2018 Conference Call October 23, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains 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 than statements of historical
Slide 3: Presentation Outline
Presentation Outline e Executive Summary (pg. 4) e Operational Highlights by Segment (pg. 9) e Key Financial Metrics (pg. 16) e 2018 Outlook (pg. 19) e@ Non-GAAP Reconciliations (pg. 24) e Questions & Answers ROV Operations on Grand Canyon Il
Slide 4: Executive Summary
Executive Summary
Slide 5: Executive Summary
Executive Summary (Sin millions, except per share data) Three Months Ended Nine Months Ended 9/30/2018 (9/30/2017 6/30/2018 9/30/2018 9/30/2017 Revenues $ 213 = § 163 S$) = 205 $ 581 $418, Gross profit s 52. a S$ 4a § 108 $ 39 24% 13% 21% 19% 9% Net income (loss) $ a7 2 § 1% S 42. $ (21) Diluted ear
Slide 6: Executive Summary: Highlights
Executive Summary Highlights Q3 2018 e Net income of $27 million, $0.18 per diluted share, compared to $18 million, $0.12 per diluted share, in Q2 2018 and $2 million, $0.02 per diluted share, in Q3 2017 e Adjusted EBITDA’ of $59 million compared to $52 million in Q2 2018 and $30 million in Q3 2017
Slide 7: Executive Summary: Operations
Executive Summary Operations e Well Intervention — Q3 2018 0 Utilization of 91% across the well intervention vessel fleet o 79% in the GOM 0 99% in the North Sea 0 95% in Brazil 0 15K IRS utilization 28%; 10K IRS idle e Robotics — Q3 2018 o Robotics chartered vessels utilization 98%, including 113 s
Slide 8: Executive Summary: Balance Sheet
Executive Summary Balance Sheet e Liquidity’ of approximately $472 million at 9/30/18 Cash and cash equivalents totaled $325 million at 9/30/18 0 $13 million of cash used for scheduled debt principal repayments in Q3 2018 o $13 million of cash used for capital expenditures in Q3 2018 e Long-term deb
Slide 9: Operational Highlights
Operational Highlights
Slide 10: Business Segment Results
Business Segment Results Third Quarter 2018 Three Months Ended ‘B30/2018 ‘9/30/2017 e7s02018 + Well Intervention achieved 91% utilization across the vessel fleet Revenues Well intervention 3s 155 $12 $162 + 4000 59% utilized; 5000 100% utilized Robotics 54 a7 39 + Well Enhancer 100% utilized; Seawel
Slide 11: Well Intervention - GOM
Well Intervention —- GOM Gulf of Mexico © Q5000 — 100% utilized in Q3 2018 for BP © Q4000 — 59% utilized in Q3 2018; worked on two wells performing production enhancement and P&A programs; between projects and idle at quarter-end e@ 15K IRS rental unit — 28% utilized in Q3 2018; system idle at quart
Slide 12: Well Intervention - North Sea
Well Intervention — North Sea North Sea e Well Enhancer — 100% utilized in Q3 2018; performed intervention operations on eight wells for one customer and diving operations for another customer e Seawell — 98% utilized in Q3 2018; operational for two customers in diving and intervention mode on five
Slide 13: Well Intervention - Brazil
Well Intervention — Brazil Brazil e@ Siem Helix 1 — 100% utilized during Q3 2018; performed abandonment through-tubing scopes on two wells and workover and performance enhancement operations on one well Siem Helix 1 e Siem Helix 2 — 90% utilized during Q3 2018; performed workover and performance enh
Slide 14: Robotics
Robotics 98% chartered vessel fleet utilization (including spot vessels) in Q3 2018; 42% utilization for ROVs, trenchers and ROVDrills Grand Canyon (North Sea) — full utilization performing trenching during Q3 2018 Grand Canyon II (GOM) — 90 days of utilization during Q3 2018, including 12 days on a
Slide 15: Utilization
Utilization hes 31% 88% 88% 80% ae 46% 42% 40% a 20% 0% Well Intervention Vessels ROV and Trencher Support ROVs and Trenchers Vessels + Q4000 + Grand Canyon + 47 ROVs + Seawell * Grand Canyon II! + 2 ROVDrill units + Well Enhancer * Grand Canyon Illt + 5 Trenchers + 5000 + Deep Cygnus!? + Siem Helix
Slide 16: Key Financial Metrics
Key Financial Metrics Soe pena
Slide 17: Debt Instrument Profile
Debt Instrument Profile Total funded debt! of $489 million at end of Q3 2018 $125 million Convertible Senior Notes due 2022 — 4.25% © $125 million Convertible Senior Notes due 2023 — 4.125% $35 million Term Loan — LIBOR + 4.25% © Amortization payments of $1.0 million in 2018 and $4.7 million in 2019
Slide 18: Debt & Liquidity Profile
Debt & Liquidity Profile $1,200 in millions) $800 $400 $76 $0 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 09/30/2018 Mmm LT Debt! mmmNet Debt? -—te-Liquidity® Liquidity of approximately $472 million at 9/30/18 * Long-term debt is net of unamorizad debt issuance costs and discou
Slide 19: 2018 Outlook
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Slide 20: 2018 Outlook: Forecast
2018 Outlook: Forecast (8 in millions) 2018 Outlook Revenues $ ~715-745 Adjusted EBITDA' ~ 148-160 Capital Additions ~135 Revenue Split: Well Intervention $ 540-565 Robotics 150-155 Production Facilities 65 Elimination (40) Total 715-745 Key 2018 forecast drivers: + Siem Helix 1 & Siem Helix 2 both
Slide 21: 2018 Outlook: Well Intervention
2018 Outlook: Well Intervention © Total backlog at September 30, 2018 was approx. $1.2 billion, including $0.9 billion for Well Intervention © Gulf of Mexico Q4000 — entered fourth quarter idle and between projects; awarded five-well contract starting in December 2018 Q5000 - working in spot market
Slide 22: 2018 Outlook: Robotics
2018 Outlook: Robotics e Grand Canyon (North Sea) — performing trenching work for the remainder of 2018 and into first quarter of 2019 e Grand Canyon II (GOM) — pursuing spot market opportunities with some contracted work for the remainder of 2018 e Grand Canyon III (North Sea) — trenching work into
Slide 23: 2018 Outlook: Capital Additions & Balance Sheet
2018 Outlook: Capital Additions & Balance Sheet 2018 Capital Additions are currently forecasted at approximately $135 million, consisting of the following: Growth Capex - $1171 million in growth capital, primarily for newbuilds: 0 $110 million for Q7000, including a $69 million shipyard payment in D
Slide 24: Non-GAAP Reconciliations
Non-GAAP _ Reconciliations
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Twelve Months (in mitions) ‘Three Months Ended Nine Months Ended nea ax ‘mono7s _esom017 _e/so2018 “enoR01e _asoROTy —__12/S1/2017 Adjusted EBITDA [Net income (lose) Ss 7 s 2 8 8 $ 4 8 @ s 0 ‘Adjustments: Income tax provision (benefit) 1 @ : 1 o (60) Net interest expense 3 4
Slide 26: Helix Energy Solutions
ENERGY SOLUTIONS HLX Listed NYSE® Follow Helix on Twitter @Helix_ESG Follow Helix on Facebook: www.facebook.com/helixenergysolutionsgroup Connect with Helix on LinkedIn: www. linkedin.com/company/helix-energy-solutions-group
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