Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Corporate Update (May 2022)
39 slides from Helix Energy Solutions's corporate update, May 20, 2022
Slide 1: Helix Energy Solutions Company Update
MAY 2022 Helix Energy Solutions Company Update
Slide 2: Forward-looking statements
Thispresentationcontainsforward-lookingstatementsthatinvolverisks,uncertaintiesandassumptionsthatcouldcauseourresultsto differmateriallyfromthoseexpressedorimpliedbysuchforward-lookingstatements.Allstatements,otherthanstatementsofhistorical fact,are“forward-lookingstatements”withinthemeaningofthePri
Slide 3: Helix Company Overview
Helix Energy Solutions provides specialty services to the offshore energy industry with a focus on well intervention and robotics operations •Exposure to the full energy value chain: Oil & Gas to Renewables •Oil & Gas services cover the lifecycle of a field and are critical to maximizing production
Slide 4: Helix Company Overview
HELIX COMPANY OVERVIEW 4 •World's leading provider of both well intervention and subsea robotics technologies to offshore energy industry •Pioneer and established leading provider of well intervention solutions with a competitive advantage •Track record of 1,594 wells and over 30 years of global exp
Slide 5: Why Choose Helix?
Why Helix? •Market leader in Well Intervention and Robotics/Trenching •Riser-based and riserless intervention capabilities •Increasing contribution of offshore renewables market •Planned expansion into the Gulf of Mexico shallow water market •Geographically diverse scope of operations •Large concent
Slide 6: Sustainability
SUSTAINABILITY We continue to implement and improve Environmental, Social and Governance (“ESG”) initiatives and disclosures throughout our business. We incorporate ESG initiatives into our core business values and priorities of safety, sustainability and value creation witha top-down approach led b
Slide 7: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Environmental •Our business supports both the responsible transition from a carbon- based economy and extending the value and therefore the life cycle of underutilized wells, which in turn helps clients avoid drilling new wells. Social •Investment in our human ca
Slide 8: Well Intervention
Helix Well Ops is a leader in rigless offshore well intervention, providing fast, flexible and high-quality well management services Our purpose-built riserlessand riser-based well intervention vessels and subsea systems operate worldwide to provide customer value throughout the well life cycle Low
Slide 9: What Sets Helix Apart in Well Intervention
•Fleet of seven purpose-built well intervention vessels •Both riser-based and riserless intervention systems •1,594 well intervention operations performed worldwide, includes production enhancement and abandonment operations •595 well abandonment operations performed worldwide •Geographically divers
Slide 10: Helix Well Intervention Vessels & Assets
HELIX WELL INTERVENTION VESSELS & ASSETS Q4000 (Gulf of Mexico) Dynamically positioned class 3 (“DP3”) purpose-built semisubmersible vessel for well intervention, decommissioning and other subsea projects Q5000 (Gulf of Mexico) DP3 purpose-built semisubmersible vessel for well intervention, decommis
Slide 11: Subsea Services Alliance with Schlumberger
Subsea Services Alliance created in 2015 to combine the expertise and capabilities of Helix and Schlumberger •Comprehensive subsea well construction, intervention and decommissioning portfolio o Helix provides marine support, operational expertise and project management capabilities o Schlumberger p
Slide 12: Helix Robotics
Helix Robotics Solutions is a leading supplier of subsea engineering services, operating state of the art remote operated vehicles (ROVs), seabed trenchers and support/construction vessels Our deep-water ROV track record spans over 25 years, including oil & gas, renewable energy, construction servic
Slide 13: Helix Robotics Vessels & Assets
Grand Canyon II (Asia Pacific) A versatile and technically advanced DP3 multi-role construction support vessel Under charter agreement through December 2022 Grand Canyon III (North Sea) A versatile and technically advanced DP3 multi- role construction support vessel Under charter agreement through M
Slide 14: What Sets Helix Apart in Robotics
•A fleet of advanced work-class ROVs and trenchers, including several units custom built to our specifications •Our subsea expertise in robotics is applicable to both the Oil and Gas and renewables markets 1 •Leading provider for water jetting and mechanical cutting trenching solutions and ROV suppo
Slide 15: Helix Production Facilities
Helix Production Facilities includes the Helix Producer 1 floating production unit (FPU), which is operating under a production handling contract until at least June 1, 2023 The segment also includes the Helix Fast Response System and our ownership of the wells and related infrastructure associated
Slide 16: Key Financial Metrics and Outlook
Key Financial Metrics and Outlook 16
Slide 17: Debt & Liquidity Profile
DEBT & LIQUIDITY PROFILE ($ in millions) 1 Cash includes cash and cash equivalents but excludes restricted cash; restricted cash at December 31, 2019 and 2021 and March31, 2022 of $54 million, $74 million and $73 million, respectively, related primarily to short-term project-related letters of credi
Slide 18: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt 1 of $310 million at 3/31/22 •$35 million Convertible Senior No tes 2 due 2022 –4.25% •$30 million Convertible Senior Notes due 2023 –4.125% •$200 million Convertible Senior Notes due 2026 –6.75% •$45 million MARAD Debt –4.93% •Semi-annual amortization payme
Slide 19: Five Year Trend
Revenue Free Cash Flow 1 1 Adjusted EBITDA and Free Cash Flow are Non-GAAP financial measures, see non-GAAP reconciliations on slide 37 $581 $740 $752 $734 $675 $30 $29 $58 $22 $(62) ($80) ($60) ($40) ($20) $0 $20 $40 $60 $80 $0 $200 $400 $600 $800 20172018201920202021 Revenue Net Income (loss) Net
Slide 20: Revenue Dispersion
REVENUE DISPERSION ($ IN MILLIONS) Geography Segments 68% 74% 73% 71% 74% 21% 17% 19% 21% 16% 11% 9% 8% 8% 10% $0 $200 $400 $600 $800 20172018201920202021 Well Intervention Robotics Production Facilities 49% 37% 40% 42% 34% 12% 28% 29% 28% 23% 27% 26% 26% 18% 15% 6% 19% 12% 9% 5% 6% 9% $0 $200 $400
Slide 21: 2022 Outlook
2022 OUTLOOK We continue to expect 2022 to be a transition year for Helix, where we see an improving energy environment, despite a tepid macro backdrop, with higher commodity prices as we continue to recover from the pandemic. In the second half 2022, we anticipate a stronger North Sea Well Interven
Slide 22: 2022 Outlook – Well Intervention
2022 OUTLOOK –WELL INTERVENTION • Q4000 (Gulf of Mexico) –started regulatory inspection early April and recommenced operations early May; contracted work in Q2 and Q3 with expected strong utilization for remainder of the year • Q5000 (Gulf of Mexico) – contracted work through Q3 with identified oppo
Slide 23: 2022 Outlook – Robotics
• Grand Canyon II (Asia Pacific) –performed ROV support work for decommissioning project offshore Thailand through late April followed by transit to Taiwan for ROV support work on windfarm project expected through late Q3; expected to have high utilization in 2022 before current charter expiration d
Slide 24: 2022 Outlook: Capital Additions & Balance Sheet
2022 Capital additions 1 are currently forecasted at $45-$55 million: •Primarily maintenance capex related to regulatory recertification costs of our vessels and systems •Capital additions during Q1 approximated $11 million and included •Approximately $10 million for regulatory recertification costs
Slide 25: Macro Outlook Supports Upside Potential
1,126 3,186 1,664 1,661 1,597 1,885 0 600 1,200 1,800 2,400 3,000 3,600 2020A2021A2022E2023E2024E2025E Oil & Gas •Helix business lines are primarily production focused and activity driven by Upstream OpEx budgets •COVID19 resulted in numerous projects being delayed Renewable Energy •Robotics segment
Slide 26: 2023 Outlook
•Expect to continue anticipated momentum from second half 2022 into 2023 •Market improvements offer additional upside potential •Continue to maintain momentum on the three legs of our Energy Transition business model •Operating cash flow improvements •Improved operating cash flows in 2023 compared t
Slide 27: Energy Transition
ENERGY TRANSITION The three legs to our model establish Helix as a meaningful Energy Transition company with significant potential: Mature Field Capabilities Expand Abandonment Capabilities Broaden Renewables Market Offering Mature Field Capabilities • Production Enhancement –continue assisting oil
Slide 28: Decommissioning Market – North America
DECOMMISSIONING MARKET –NORTH AMERICA North America Decommissioning Market Outlook: 2022-2025 28 Source: Rystad Energy ServiceCube, SubseaCube, WellCubeas of May 16, 2022
Slide 29: Decommissioning Market – Global
DECOMMISSIONING MARKET -GLOBAL Global Decommissioning Market Outlook: 2022-2025 29 Source: Rystad Energy ServiceCubeas of May 16, 2022
Slide 30: Alliance Acquisition
•Acquisition 1 purchase price of $120 million in cash at closing, plus potential for post-closing earnout consideration payable in 2024 if Alliance business achieves certain financial metrics in 2022 and 2023. Helix can pay earnout consideration in cash, Helix stock, or combination thereof •Aligns w
Slide 31: Alliance Acquisition
•Positions Helix to further penetrate North America decommissioning market, with published reports forecasting nearly $3 billion 2 of decommissioning expenditures 2022 -2025, and potential to expand into global market •Based on assets being acquired, parties’ assumptions and market conditions, and a
Slide 32: About Alliance
Corporate Overview •Alliance is a Louisiana-based privately held company that provides services supporting the upstream and midstream industries in the Gulf of Mexico shelf •Services include offshore oil field decommissioning and reclamation, project management, engineered solutions, intervention, m
Slide 33: Alliance Vessels & Assets
Liftboats Dive Support Vessels P&A Spreads ALLIANCE VESSELS & ASSETS Offshore Supply Vessels (OSVs) Heavy Lift Derrick Barge Coiled Tubing Spreads 33 Source: Alliance Energy Group, Alliance Offshore, Alliance Energy Services LLS and Triton Offshore websites
Slide 34: Helix Alliance Acquisition
HELIX ALLIANCE ACQUISITION 1 The acquisition is anticipated to create a new segment under the parent Helix Energy Solutions Group •Well intervention services •Full field decommissioning •Riserlesswell intervention vessels and systems •Riser-based well intervention vessels and systems •Subsea systems
Slide 35: Projected Decommissioning Capabilities
PROJECTED DECOMMISSIONING CAPABILITIES Planning and Engineering Well P&A Pipeline and Subsea Infrastructure Removal Platform Removal Site Clearance and Reclamation SHALLOW WATER DEEPWATER 35
Slide 36: Non-GAAP Reconciliations and Supplemental Information
Non-GAAP Reconciliations and Supplemental Information 36
Slide 37: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ in thousands, unaudited) 12/31/201712/31/201812/31/201912/31/202012/31/2021 Reconciliation from Net Income (Loss) to Adjusted EBITDA: Net income (loss)30,052 $ 28,598 $ 57,697 $ 20,084 $ (61,684) $ Adjustments: Income tax provision (benefit)(50,424) 2,400 7,859 (18,701) (
Slide 38: Non-GAAP Definitions
NON-GAAP DEFINITIONS Non-GAAPFinancialMeasures WedefineEBITDAasearningsbeforeincometaxes,netinterestexpense,gainorlossonextinguishmentoflong-termdebt,netother incomeorexpense,anddepreciationandamortizationexpense.Non-cashimpairmentlossesongoodwillandotherlong-livedassetsand gainsandlossesonequityinv
Slide 39: Thank you
Thank you |. o000e
Helix Energy Solutions Group — Corporate Update (May 2022) on 6ix