Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q4 2013 Earnings Presentation
25 slides from Helix Energy Solutions's earnings presentation, Feb 20, 2014
Slide 1: Fourth Quarter 2013 Conference Call
* Fourth Quarter 2013 Conference Call February 20, 2014
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 historic
Slide 3: Presentation Outline
* Presentation Outline Executive Summary Summary of Q4 2013 Results (pg. 5) Operational Highlights by Segment Contracting Services (pg. 9) Key Balance Sheet Metrics (pg. 13) 2014 Outlook (pg. 16) Non-GAAP Reconciliations (pg. 21) Questions & Answers
Slide 4: Executive Summary
* Executive Summary *
Slide 5: Executive Summary
* Executive Summary ($ in millions, except per share data) 2012 impairment charges include $157.8 million for the Caesar and related mobile pipelay equipment (Q4), $14.6 million for the Intrepid and $4.6 million for well intervention assets at our former operations in Australia. See non-GAAP reconci
Slide 6: Executive Summary
* Executive Summary Q4 2013 earnings of $0.35 per diluted share compared to $0.42 per diluted share in Q3 2013 Q3 included a $15.6 million gain on the sale of the Express and an $8.6 million loss on the early extinguishment of debt; both items netted to an after-tax impact of $0.04 per diluted share
Slide 7: Executive Summary: Balance Sheet
* Executive Summary Balance sheet Cash and cash equivalents totaled $478 million at 12/31/2013 Liquidity* of $1.1 billion at 12/31/2013 Net debt of $88 million at 12/31/2013 See updated debt maturity profile on slide 14 We define liquidity as the total of cash and cash equivalents ($478 million) plu
Slide 8: Operational Highlights
* Operational Highlights *
Slide 9: Contracting Services
* ($ in millions, except percentages) See non-GAAP reconciliation on slide 24. Amounts are prior to intercompany eliminations. Before gross profit impact of $157.8 million in asset impairments for the Caesar and related mobile pipelay equipment in Q4 2012. 94% utilization for the Well Intervention f
Slide 10: Contracting Services – Well Intervention
* GOM Q4000 fully utilized during Q4 IRS no. 2 on hire for the entire quarter; working at operational rates beginning late November through the end of the Q4 Helix 534 commenced operations in the Gulf of Mexico in mid-February 2014 with full backlog for the remainder of the year; backlog beyond 2014
Slide 11: Contracting Services – Robotics
* 88% long-term chartered vessel fleet utilization in Q4 69% utilization for ROVs, trenchers and ROVDrill Olympic Canyon continued operations in India at 100% utilization for the quarter REM Installer completed accommodations project in the North Sea, then transited to the Gulf of Mexico to commence
Slide 12: Contracting Services Utilization
* Olympic Canyon (1) Deep Cygnus (1) Olympic Triton (1) Grand Canyon (1) REM Installer (1) Seawell Well Enhancer Q4000 Skandi Constructor (1) 51 ROVs 2 ROVDrill Units 4 Trenchers (1) Chartered vessel Contracting Services Utilization
Slide 13: Key Balance Sheet Metrics
* Key Balance Sheet Metrics *
Slide 14: Total Funded Debt and Maturity Profile
* Total funded debt of $593 million at end of Q4 2013: $200 million Convertible Senior Notes – 3.25% (A) ($173 million net of unamortized debt discount) $293 million Term Loan – LIBOR + 2.75% (B) Annual amortization payments of 5% in years 1 and 2, 10% per annum in years 3 through 5 $100 million MAR
Slide 15: Debt and Liquidity Profile
* Liquidity of approximately $1.1 billion at 12/31/2013 ($ amounts in millions) Includes impact of unamortized debt discount under our convertible senior notes. We define liquidity as the total of cash and cash equivalents ($478 million) plus unused capacity under our revolving credit facility ($584
Slide 16: 2014 Outlook
* 2014 Outlook *
Slide 17: 2014 Outlook
* 2014 Outlook ($ in millions) Earnings per share estimates based on a corporate tax rate ranging from 25% - 30%.
Slide 18: 2014 Outlook: Contracting Services Backlog
* 2014 Outlook Contracting Services backlog as of December 31, 2013 was approximately $1.8 billion; total backlog of approximately $2.0 billion including Production Facilities Utilization expected to remain strong for the well intervention fleet Q4000 backlog through 2015; negotiations ongoing to ex
Slide 19: 2014 Outlook: Robotics
* 2014 Outlook Robotics business entering 2014 with a healthy, growing backlog (14% increase in backlog from Q3 to Q4 2013) Europe and Middle East trenching markets expected to be strong; similar to 2012 Multi-trencher burial campaign onboard the Grand Canyon I in the Middle East during Q1 and Q2 20
Slide 20: 2014 Outlook – Capex
* 2014 Outlook – Capex Total capital expenditures currently budgeted at approximately $400 million in 2014 Growth capital of approximately $320 million, including: Approximately $160 million for the Q5000 and intervention riser system Approximately $30 million for the Q7000 and intervention riser sy
Slide 21: Non-GAAP Reconciliations
* Non-GAAP Reconciliations *
Slide 22: Non-GAAP Reconciliations
* Non-GAAP Reconciliations ($ in millions) We calculate Adjusted EBITDA from continuing operations as earnings before net interest expense and other, taxes, depreciation and amortization. Adjusted EBITDAX is Adjusted EBITDA from continuing operations plus the earnings of our former oil and gas busin
Slide 23: Non-GAAP Reconciliations
* Non-GAAP Reconciliations We calculate Adjusted EBITDA from continuing operations as earnings before net interest expense and other, taxes, depreciation and amortization. Adjusted EBITDAX is Adjusted EBITDA from continuing operations plus the earnings of our former oil and gas business before net i
Slide 24: Non-GAAP Reconciliations
* Non-GAAP Reconciliations ($ in millions)
Slide 25: Follow Helix on Twitter and LinkedIn
* Follow Helix on Twitter: @Helix_ESG Join the discussion on LinkedIn: www.linkedin.com/company/helix
Helix Energy Solutions Group — Q4 2013 Earnings Presentation on 6ix