Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q3 2010 Earnings Presentation
22 slides from Helix Energy Solutions's earnings presentation, Oct 28, 2010
Slide 1: Helix Energy Solutions Group - October 28, 2010
ENERGY SOLUTIONS GROUP Oe HELIX ae oe Me ee ee October 28, 2010 HELIK PRODUCER 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements A HELIX This presentation contains fonvard-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 stateme
Slide 3: Presentation Outline
Presentation Outline + Executive Summary Summary of Q3 2010 Results (pg. 4) 2010 Outlook (pg. 7) + Operational Highlights by Segment Contracting Services (pg. 9) Oil & Gas (pg. 15) + Key Balance Sheet Metrics (pg. 18) * Non-GAAP Reconciliations (pg. 20) + Questions & Answers ‘Subsea Intervention Lub
Slide 4: Executive Summary
Executive Summary (Sin millions, except per share data) Revenues Gross Profit (Loss) Operating Oil & Gas impairments/ARO Increases Exploration Expense Total Net Income (Loss) Diluted Eamings (Loss) Per Share Adjusted EBITDAX 5; Contracting Services Oil & Gas Elimination Adjusted EBITDAX HELIX Quarte
Slide 5: Executive Summary
Executive Summary a HELIX + EPS of $0.25 per diluted share o Good cash flow generation with EBITDAX of $143 million © — High utilization across the fleet and Helix Producer I deployment on Macondo spill more than offset two loss projects (see below) + Contracting Services © Utilization of Helix Prod
Slide 6: Executive Summary
Executive Summary A HELIX Oil and Gas (continued) . Oil and gas production totaled 10.4 Bcfe for Q3 2010 versus 11.9 Bcfe in Q2 2010 o — Avgrealized price for oil of $73.63 / bbl ($72.59/ bbl in Q2 2010), inclusive of hedges o — Avgrealized price for gas of $6.13/ Mcf ($6.10/ Mcfin Q2 2010), inclusi
Slide 7: 2010 Outlook
2010 Outlook A HELIX a Sed + Contracting Services activity in Q4 2010 expected to decline from Q3 2010 levels o Normal reduction due to seasonal factors o Helix Producer | returns mostly to internal utilization on Phoenix field o Slower ROV construction-related activity + Capital expenditures of app
Slide 8: 2010 Outlook
2010 Outlook Broad Metrics 2010 Forecast 2009 Oil and Gas Production = 45 Bcfe 44 Bcfe EBITDAX = $450 million $490 million CAPEX = $200 million $328 million Commodity PriceDeck 2010 Forecast 2009 Oil $75.96/ bbl $67.11 /bbl Hedged Gas $5.97/ mcf $7.75/ mcf Changing the way you succeed HELIX iNiRGY S
Slide 9: Operations Highlights
Operations Highlights HELIX iNiRGY SOLUTIONS GROUP mes Eee, Helix Producer I processing Macondo oil in MC252 Normand Clough on Lufeng P&Ajob + Helix vessels (Q4000, Helix Producer! and Express) played key roll in Macondo response and returned to their pre-spill response operating mode in first half
Slide 10: Q4000 in Action for Macondo Response
Q4000 in Action for Macondo Response A HELIX ao ENERGY SOLUTIONS GROUP Dynamic Kill Static Kill With Evergreen Burners + Arrived in staging area within 3 days of call-off + Multi-functional and ease of adaptability between operating modes * Containment * Dynamic Kill + Flaring * Static Kill + Recove
Slide 11: Contracting Services
Contracting Services HELIX Oe HELIX ($ in millions, except percentages) + Gross margins adversely impacted Quarter Ended by losses on Anaconda and Lufeng September 30 June 30 projects, and Well Enhancer 2010 2009 2010 downtime for coiled tubing upgrade Revenuesia, * — Strong contribution by the Cont
Slide 12: Equity in Earnings of Equity Investments
Equity in Earnings of Equity Investments A HELIX (8 in millions) Quarter Ended Nine Months Ended September 30 June 30 2010 2009 2010 9/30/2010 9/30/2009 Independence Hub $ 4 $ 5 $ 5 $ 14 $ 17 Deepwater Gateway (Marco Polo) 1 1 1 4 2 CloughHelix JV 1 is (4) (8) 2 Cal Dive (a) : % - - 8 Equity in Eami
Slide 13: Contracting Services Q3 2010 Utilization
Contracting Services Q3 2010 Utilization Oe HELIX ELIX Subsea Construction Vessels Intrepid Express Caesar iNiRGY SOLUTIONS GROUP 64% 79% 93% ROV / Trencher Support Vessels Olympic Canyon Deep Cygnus Olympic Triton Normand Fortress Island Pioneer 85% ee 72% 99%, sSeawei Well Intervention Vessels Wel
Slide 14: Contracting Services — 4th Quarter Outlook
Contracting Services — 4" Quarter Outlook A HELIX Well Ops + — Expecthigh utilization for our four Well Ops vessels but with lower margins mainly due to the Q4000 performing lower margin well P&A work for the remainder of the year Production Fac! Ss + — Helix Producer! operational on Phoenix field R
Slide 15: Oil & Gas
Oil & Gas Financial Highlights Revenue (millions) Gross Profit - Operating Hurricane Expenses, Net (A) Oil & Gas Impairments (B) Exploration Expense Total Gain on Oil & Gas Derivative Contracts Production (Bcfe): Shelf Deepwater Total Average Commodity Prices (C): Oil / Bol Gas / Mc Changing the way
Slide 16: Oil & Gas
Oil & Gas Operating Costs ($ in millions, except per Mcfe data) Quarter Ended September 30 ‘dune 30 2010 2009 2010 Total per Mcfe Total per Mcfe Total per Mcfe DDBA (A) S$ 54 S$ 5.24 3S 3.56 67 S$ 5.67 Operating and Other (a): Operating Expenses (¢ $27 264 25 2.56 16 1.33 Workover 4 0.38 6 061 3 0.2
Slide 17: Summary of Oct 2010 — Dec 2011 Hedging Positions
Summary of Oct 2010 — Dec 2011 Hedging Positions " a“ = HELIX iNiRGY SOLUTIONS GROUP y Total Volume swap Average Collar Price Oil (BbIs) Collars Swaps Hedged Pricing Floor Ceiling 2010 200,000 637,500 937.600 $ 7900 S$ 6250 $ 80.73 2014 2,375,000 2.375,000 $81.31 Natural Gas (mcf) 2010 3,036,000 3,0
Slide 18: Key Balance Sheet Metrics
Key Balance Sheet Metrics HELIX iNiRGY SOLUTIONS GROUP Debt) $2500 $2900 $1500 = 2/31/2007 12/31/2008 $2900 = 12/21/2008 9/20/2020 $500 so ‘Gross Debt Net Date Liquidity «) of approximately $700 million at 9/30/10 (A) Includes impact of unamortized debt discount under our Convertible Senior Notes. (
Slide 19: Non-GAAP Reconciliations
Non-GAAP _ Reconciliations
Slide 20: Non-GAAP Reconciliations
iNiRGY SOLUTIONS GROUP Non-GAAP Reconciliations A HELIX Po nee Adjusted EBITDAX ($ in millions) Quarter Ended ine Months Ended September 30 June 30 September 30 2010 2009 2010 2010 2009 Net income (loss) applicable to common shareholders s 26S 45 (85) S$ (77) S$ 158 Non-cash impairments 1 1 160 172
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations A HELIX Revenue and Gross Profit As Reported ($ in millions) Quarter Ended September 30 dune 30 2010 2009 2010 Revenues Contracting Senices $ 229° «$46 175 $202 Production Facilities 74 1 21 Intercompany elim. - Contracting Senices (18) (24) (24) Intercompany elim. - Product
Slide 22: Slide 22
Helix Energy Solutions Group — Q3 2010 Earnings Presentation on 6ix