Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q4 2018 Earnings Presentation
27 slides from Helix Energy Solutions's earnings presentation, Feb 19, 2019
Slide 1: Fourth Quarter 2018 Conference Call
Fourth Quarter 2018 Conference Call February 19, 2019
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 2019 Outlook (pg. 19) e Non-GAAP Reconciliations (pg. 25) 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 Year Ended 72/31/18 7231717 9730/48 72/3118 72I31/17 Revenues $ 1800S) 163 $218 $740 SB Gross profit $ 4° S$ 23 § 52 $ 122, «§ 62 9% 14% 24% 16% 11% Non-cash losses on equity investment $ @ $s @ $s - $ 6) $s @) Net income (lo
Slide 6: Executive Summary: Highlights
Executive Summary Highlights Full Year 2018 e Net income of $29 million, $0.19 per diluted share, compared to $30 million, $0.20 per diluted share, in 20171 e Adjusted EBITDA? of $162 million compared to $107 million in 2017 Operating cash flow of $197 million compared to $52 million in 2017 e Free
Slide 7: Executive Summary: Operations Q4 2018
Executive Summary Operations — Q4 2018 e Well Intervention 0 Utilization of 79% across the well intervention vessel fleet 0 62% in the GOM 0 76% in the North Sea © 99% in Brazil 0 15K IRS and 10K IRS idle during quarter e Robotics o Robotics chartered vessels utilization 78%, including 60 spot vesse
Slide 8: Executive Summary: Balance Sheet
Executive Summary Balance Sheet e Liquidity’ of approximately $426 million at 12/31/18 e Cash and cash equivalents totaled $279 million at 12/31/18 e Cash expenditures during Q4 2018 included: o $10 million of cash used for scheduled debt principal repayments © $82 million of cash used for capital e
Slide 9: Operational Highlights
Operational Highlights
Slide 10: Business Segment Results
Business Segment Results Three Months Ended Year Ended 12/31/18 12131117 9/30/18 12/3118 12131017 Revenues Well Intervention S$ 118 $ 107 $ 155 S$ 561 S$ 406 Robotics 38 51 54 159 153, Production Facilities 16 16 16 64 64 Intercompany elimination (11) (11) (12) (44) (42) Total S158 S163 S213 S740 S5
Slide 11: Well Intervention - GOM
Well Intervention —- GOM Gulf of Mexico © Q5000 — 70% utilized in Q4 2018; completed annual commitment with BP in early October, subsequently performed P&A work scopes for two customers e Q4000 — 53% utilized in Q4 2018; completed a one- well stimulation project and then commenced an expected 12-wel
Slide 12: Well Intervention - North Sea
Well Intervention — North Sea North Sea e Well Enhancer — 86% utilized in Q4 2018; worked for three customers in intervention mode during the quarter e Seawell — 66% utilized in Q4 2018; operational for two customers in intervention mode. Warm stacked at year-end Seawell
Slide 13: Well Intervention - Brazil
Well Intervention — Brazil Brazil e@ Siem Helix 1 — 99% utilized during Q4 2018; performed abandonment scope on two wells and workover and performance enhancement operations on two wells Siem Helix 1 e Siem Helix 2 — 99% utilized during Q4 2018; performed workover and performance enhancement operati
Slide 14: Robotics
Robotics 78% chartered vessel fleet utilization (including spot vessels) in Q4 2018; 36% utilization for ROVs, trenchers and ROVDrill Grand Canyon (North Sea) — 100% utilized during Q4 2018 performing trenching Grand Canyon II (GOM) — 42% utilized during Q4 2018 on ROV support projects for two custo
Slide 15: Utilization
Utilization 100% 91% 80% 79%) 74% 60% 5 42% 41% M4 2018 40% #Q3 2018 1Q4 2017 20% 0% Well Intervention Vessels ROV and Trencher Support ROVs and Trenchers Vessels + 4000 + Grand Canyon' + 46 ROVs* + Seawell + Grand Canyon II" * 1 ROVDrill unit* + Well Enhancer + Grand Canyon III* + 5 Trenchers + 250
Slide 16: Key Financial Metrics
Key Financial Metrics
Slide 17: Debt Instrument Profile
Debt Instrument Profile Total funded debt! of $479 million at 12/31/18 Debt Instrument Profile at 12/31/18 Principal Payment Schedule © $125 million Convertible Senior Notes due 2022 — 4.25% (Sin millions) © $125 million Convertible Senior Notes due 2023- 4.125% $200 $126 $133._ $133, © $34 million
Slide 18: Debt & Liquidity Profile
Debt & Liquidity Profile inmilions) $800 $400 $76 $61 $0 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 M@mmLT Debt! mmmNet Debt? -#-Liquidity® Liquidity of approximately $426 million at 12/31/18 * Long-term debt is net of uramortized debt issuance costs and discount of our Convertib
Slide 19: 2019 Outlook
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Slide 20: 2019 Outlook: Q1 2019 Transactions
2019 Outlook: Q1 2019 Transactions e Acquisition of Droshky Assets e Fixed price P&A of four wells and related subsea infrastructure @ Two wells producing with near term (up to 24 months) production enhancement upside, with no production benefit included in our guidance Two wells shut-in with P&A li
Slide 21: 2019 Outlook: Forecast
2019 Outlook: Forecast (Sin millions) 2019 2018 Outlook Actual Revenues $ 700 - 760 740 Adjusted EBITDA‘? 165 - 190 162 Capital Additions? ~ 140 134 Revenue Split: Well Intervention $ 545 - 620 561 Robotics 145 - 160 159 Production Facilities? 50- 55 64 Elimination (40) - (75) (44) Total 700 - 760 7
Slide 22: 2019 Outlook: Well Intervention
2019 Outlook: Well Intervention Total backlog at December 31, 2018 was approximately $1.1 billion ($0.9 billion for Well Intervention) Gulf of Mexico 4000 — Began an expected 12-well campaign in December with estimated duration into April 2019, then working in spot market with good utilization expec
Slide 23: 2019 Outlook: Robotics
2019 Outlook: Robotics « Improved cost structure with reductions related to vessel charters, including expiration of the Grand Canyon charter in October 2019, and expiration of the hedge on the Grand Canyon II in July 2019 Grand Canyon (North Sea) — performing trenching work through Q1 2019. Current
Slide 24: 2019 Outlook: Capital Additions & Balance Sheet
2019 Outlook: Capital Additions & Balance Sheet 2019 Capital Additions are currently forecasted at approximately $140 million, consisting of the following: Growth Capex - $115! million related to completion of the Q7000 and related intervention system: 0 $112 million for the Q7000, including a $69 m
Slide 25: Non-GAAP Reconciliations
Non-GAAP _ Reconciliations
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations (Sin thousands) ‘Three Months Ended Year Ended Tae _ wan? _ enone wane _ aan ‘Adjusted EBITDA: Net income (loss) $ (13,747) $ 50580 $ 27,121 $ 28598 $ 30.052 ‘Adjustments: Income tax provision (bene) 47% (49,307) eat 2400 (50,424) Net interest expense 3.007 3.298 3.249 13,75
Slide 27: Helix Energy Solutions
@— HELIX 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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