Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Corporate Update (March 2022)
29 slides from Helix Energy Solutions's corporate update, Mar 21, 2022
Slide 1: Helix Energy Solutions Company Update March 2022
Helix Energy Solutions Company Update March 2022
Slide 2: Forward-looking statements
Thispresentationcontainsforward-lookingstatementsthatinvolverisks,uncertaintiesandassumptionsthatcouldcauseourresultsto differmateriallyfromthoseexpressedorimpliedbysuchforward-lookingstatements.Allstatements,otherthanstatementsofhistorical fact,are“forward-lookingstatements”withinthemeaningofthePri
Slide 3: Helix Company Overview
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
Slide 4: World's leading provider of well intervention and subsea robotics
•World's leading provider of both well intervention and subsea robotics technologies to offshore energy industry •Pioneer and established leader in rigless offshore well intervention with track record of 1,578 wells and over 30 years of global experience •Leading provider of well intervention soluti
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 •Geographically diverse scope of operations •Blue-chip customers •Purpose-built, advanced fleet •Integrated offerings •Hea
Slide 6: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE 6 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. These efforts are published in g
Slide 7: Well Intervention
Helix Well Ops is a leader in rigless offshore well intervention, providing fast, flexible and high-quality well management services Our specialist riserless and riser-based well intervention vessels and subsea systems operate worldwide to provide customer value throughout the well life cycle Low op
Slide 8: What Sets Helix Apart in Well Intervention
•Fleet of seven purpose-built well intervention vessels •Both riser-based and riserless intervention systems •1,578 well intervention operations performed worldwide, includes production enhancement and abandonment operations •594 well abandonment operations performed worldwide •Geographically divers
Slide 9: Helix Well Intervention Vessels & Assets
9 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, decomm
Slide 10: 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 •Helix provides marine support, operational expertise and project management capabilities •Schlumberger pro
Slide 11: 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 12: 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 2021 Grand Canyon III (North Sea) A versatile and technically advanced DP3 multi- role construction support vessel Under charter agreement through M
Slide 13: 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 14: 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 15: Key Financial Metrics and Outlook
Key Financial Metrics and Outlook 15
Slide 16: 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 of $54 million and $74 million, respectively, related primarily to short-term project-related letters of credit 2 Long-term debt through Dece
Slide 17: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt 1 of $314 million at 12/31/21 •$35 million Convertible Senior Notes due 2022 –4.25% •$30 million Convertible Senior Notes due 2023 –4.125% •$200 million Convertible Senior Notes due 2026 –6.75% •$49 million MARAD Debt –4.93% •Semi-annual amortization payment
Slide 18: 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 27 $581 $740 $752 $734 $675 $30 $29 $58 $22 $(62) ($80) ($60) ($40) ($20) $0 $20 $40 $60 $80 $0 $200 $400 $600 $800 20172018201920202021 Revenue Net Income (loss) Net
Slide 19: Revenue Dispersion
REVENUE DISPERSION ($ IN MILLIONS) Geography Segments 19 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 $4
Slide 20: 2022 Outlook
2022 OUTLOOK We expect 2022 to be a transition year for Helix, where we see an improving macro backdrop and increasing commodity prices as we continue to recover from the pandemic. In 2022, we expect to redeploy the Siem Helix 1 to Brazil for non-Petrobras customers and anticipate transitioning the
Slide 21: 2022 Outlook – Well Intervention
2022 OUTLOOK –WELL INTERVENTION • Q4000 (Gulf of Mexico) –vessel began year on multi-well campaign; approximate 20-day regulatory inspection scheduled early Q2; contracted backlog through Q2 with good visibility and expected strong utilization for remainder of the year • Q5000 (Gulf of Mexico) – ves
Slide 22: 2022 Outlook – Robotics
• Grand Canyon II (Asia Pacific) –vessel expected to continue performing ROV support work for decommissioning project offshore Thailand into Q2 and subsequently transition to work in Taiwan; vessel expected to have high utilization in 2022 before charter expiration date at end of year • Grand Canyon
Slide 23: 2022 Outlook: Capital Additions & Balance Sheet
2022 Capital additions are currently forecasted at $40-$50 million: •Primarily maintenance capex related to regulatory inspection costs of our systems and equipment •Approximate $20 million of capital additions carried over from prior year, which contributed to strong 2021 free cash flow Balance She
Slide 24: Macro Outlook Supports Upside Potential
1,125 3,164 1,749 1,712 1,276 1,988 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 25: 2023 outlook and momentum
•Expect to continue anticipated momentum from second half 2022 into 2023 •Market improvements offer additional upside potential •Operating cash flow improvements •Improved operating cash flows in 2023 compared to 2022 •Maintenance Capex anticipated to be approximately $40 million annually •Well Inte
Slide 26: Non-GAAP Reconciliations and Supplemental Information
Non-GAAP Reconciliations and Supplemental Information 26
Slide 27: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS (in thousands, unaudited) 12/31/201712/31/201812/31/201912/31/202012/31/2021 Reconciliation from Net Income to Adjusted EBITDA: Net income30,052 $ 28,598 $ 57,697 $ 20,084 $ (61,684) $ Adjustments: Income tax provision (benefit)(50,424) 2,400 7,859 (18,701) (8,958) Net inter
Slide 28: Non-GAAP Definitions
NON-GAAP DEFINITIONS Non-GAAPFinancialMeasures WedefineEBITDAasearningsbeforeincometaxes,netinterestexpense,gainorlossonextinguishmentoflong-termdebt,netother incomeorexpense,anddepreciationandamortizationexpense.Non-cashimpairmentlossesongoodwillandotherlong-livedassetsand gainsandlossesonequityinv
Slide 29: Energy Solutions
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Helix Energy Solutions Group — Corporate Update (March 2022) on 6ix