Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2011 Earnings Presentation
28 slides from Helix Energy Solutions's earnings presentation, Apr 26, 2011
Slide 1: First Quarter 2011 Conference Call
First Quarter 2011 Conference Call April 26, 2011
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-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 statements” wit
Slide 3: Presentation Outline
Presentation Outline • Executive Summary Summary of Q1 2011 Results (pg. 4) • Operational Highlights by Segment Contracting Services (pg. 9) Oil & Gas (pg. 16) • Key Balance Sheet Metrics (pg. 19) • 2011 Outlook (pg. 21) • Non-GAAP Reconciliations (pg. 25) • Questions & Answers
Slide 4: Executive Summary
4 Executive Summary
Slide 5: Executive Summary
Executive Summary (A) Included a $16.7 million non-cash charge to write off goodwill associated with our Southeast Asia well operations subsidiary in fourth quarter 2010. (B) Included a $7.1 million deferred tax asset valuation allowance associated with our Southeast Asia well operations subsidiary
Slide 6: Executive Summary
Executive Summary • Q1 2011 EPS of $0.24 per diluted share • Balance sheet continues to improve o Cash increased to $441 million at 3/31/2011 from $391 million at 12/31/2010 o Liquidity* increased to $837 million at 3/31/2011 from $787 million at 12/31/2010 o Net debt decreased to $916 million at 3/
Slide 7: Executive Summary
Executive Summary • Oil and Gas o First quarter average production rate of 160 Mmcfe/d (63% oil) o Q2 production through April 22 averaged approximately 140 Mmcfe/d (~67% oil) § Phoenix production averaged 10.3 MBoe/d for the same period § Little Burn on track for first production in July (est. 4,50
Slide 8: Operational Highlights
8 Operational Highlights
Slide 9: Contracting Services
($ in millions, except percentages) (A) See non-GAAP reconciliation on slides 26-27. Amounts are prior to intercompany eliminations. Contracting Services • 77% utilization in Well Intervention • Weak GOM market impacts Subsea Construction and Robotics • Caesar in shipyard undergoing planned upgrades
Slide 10: Equity in Earnings of Equity Investments
($ in millions) Equity in Earnings of Equity Investments
Slide 11: Contracting Services - Well Ops
Contracting Services - Well Ops GOM • Q4000 worked for Mariner, W&T, Marathon and Shell in the first quarter • 88% utilization in the first quarter • Strong outlook anticipated for rest of 2011 North Sea • Seawell and Well Enhancer posted a combined 68% utilization in the first quarter. Both vessels
Slide 12: Contracting Services - Robotics
Contracting Services - Robotics • Weak Q1 utilization due to soft ROV market in the Gulf of Mexico and chartered vessel redeployments • Visibility and outlook expected to improve for the remainder of 2011 • New day rate contract with Reliance in India to work the Olympic Canyon for up to 2 years • M
Slide 13: Contracting Services - Subsea Construction
Contracting Services - Subsea Construction Contracting Services - Subsea Construction • Low Q1 utilization for Subsea Construction vessels resulting from weak GOM market • Customer permitting issues impacting utilization • Express completed pipelay operations for ATP’s Anduin, Newfield’s Gladden and
Slide 14: Helix Fast Response System (HFRS)
Helix Fast Response System (HFRS) • Utilizes vessels and subsea systems proven in Macondo spill response • Capability to capture and process up to 55,000 bpd in water depths to 8,000 feet (increasing to 10,000 feet later in 2011) • 24 independent E&P operators have signed on to include HFRS in futur
Slide 15: Contracting Services Utilization
Contracting Services Utilization • Express • Caesar • Island Pioneer (1) • Deep Cygnus (1) • Normand Clipper (1) • Olympic Triton (1) • Well Enhancer • Q4000 • Normand Clough (1) • 2 ROVDrill Units • 5 Trenchers (1) Chartered vessels.
Slide 16: Oil & Gas
(A) Fourth quarter 2010 impairment primarily associated with the reduction in carrying values of certain oil and gas properties due to year-end revisions in reserves. (B) Primarily consisted of $6.4 million of costs associated with expiring offshore leases in the fourth quarter of 2010. (C) Includin
Slide 17: Oil & Gas Operating Costs
Oil & Gas (A) Included accretion expense. (B) Excluded exploration expense and net hurricane-related costs (reimbursements). Operating Costs ($ in millions, except per Mcfe data)
Slide 18: Summary of Apr 2011 - Dec 2012 Hedging Positions
Summary of Apr 2011 - Dec 2012 Hedging Positions * * As of April 22, 2011.
Slide 19: Key Balance Sheet Metrics
19 Key Balance Sheet Metrics
Slide 20: Debt and Liquidity Profile
Debt and Liquidity Profile (A) Includes impact of unamortized debt discount under our Convertible Senior Notes. (B) Liquidity, as we define it, is equal to cash and cash equivalents ($441 million), plus available capacity under our revolving credit facility ($396 million).
Slide 21: 2011 Outlook
21 2011 Outlook
Slide 22: 2011 Outlook
Broad Metrics 2011 Forecast (revised) 2011 Forecast (original) 2010 Actual Oil and Gas Production 50 Bcfe 49 Bcfe 47 Bcfe EBITDAX $550 million $475 million $430 million CAPEX $250 million $225 million $179 million Commodity Price Deck 2011 Forecast (revised) 2011 Forecast (original) 2010 Actual Hedg
Slide 23: 2011 Outlook
2011 Outlook • Contracting Services o Strong backlog for the Q4000, Well Enhancer and Seawell in 2011 o Robotics utilization recovery in second half of 2011, driven primarily by activity outside the GOM o Current regulatory environment in the GOM limits short-term opportunities in Subsea Constructio
Slide 24: 2011 Outlook
2011 Outlook • Capital Expenditures o Contracting Services ($85 million) § No major vessel projects or dry docks planned for 2011 § Caesar thruster upgrade in Q2 and Q3 § Incremental investment in Robotics business § Capital expenditures related to the potential Statoil Cat B well intervention proje
Slide 25: Non-GAAP Reconciliations
25 Non-GAAP Reconciliations
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDAX ($ in millions) We calculate Adjusted EBITDAX as earnings before net interest expense, taxes, depreciation and amortization and exploration expense. These non-GAAP measures are useful to investors and other internal and external users of our financial statem
Slide 27: Revenue and Gross Profit As Reported
Revenue and Gross Profit As Reported ($ in millions) Non-GAAP Reconciliations
Slide 28: 28
28
Helix Energy Solutions Group — Q1 2011 Earnings Presentation on 6ix