Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2012 Earnings Presentation
29 slides from Helix Energy Solutions's earnings presentation, Apr 23, 2012
Slide 1: First Quarter 2012 Conference Call
First Quarter 2012 Conference Call April 23, 2012
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 2012 Results (pg. 4) • Operational Highlights by Segment Contracting Services (pg. 9) Oil & Gas (pg. 15) • Key Balance Sheet Metrics (pg. 18) • 2012 Outlook (pg. 21) • Non-GAAP Reconciliations (pg. 26) • Questions & Answers
Slide 4: Executive Summary
Executive Summary
Slide 5: Executive Summary
Executive Summary ($ in millions, except per share data) (A) See non-GAAP reconciliations on slides 27-28.
Slide 6: Executive Summary
Executive Summary • Q1 2012 EPS of $0.62 per diluted share compared with $0.16 per diluted share in Q4 2011 o Included impact of approximately $17.1 million ($11.1 million, or $0.10 per share after tax) related to early extinguishment of debt in the first quarter (senior unsecured notes and converti
Slide 7: Executive Summary
Executive Summary • Oil and Gas (continued) o Avg realized price for oil of $109.18 / Bbl ($110.75 / Bbl in Q4 2011), inclusive of hedges o Avg realized price for gas of $5.82 / Mcfe ($6.16 / Mcfe in Q4 2011), inclusive of hedges § Gas price realizations benefited from sales of natural gas liquids §
Slide 8: Operational Highlights
8 Operational Highlights
Slide 9: Contracting Services
($ in millions, except percentages) (A) See non-GAAP reconciliation on slides 27-28. Amounts are prior to intercompany eliminations. (B) Before gross profit impact of $6.6 million asset impairment charges in Australia in Q4 2011. Contracting Services • 94% utilization in Subsea Construction • Q4000
Slide 10: Earnings (Loss) of Equity Investments
($ in millions) Earnings (Loss) of Equity Investments
Slide 11: Contracting Services - Well Ops
Contracting Services - Well Ops GOM • Q4000 worked on Shell and Helix Oil and Gas projects in Q1 • 67% utilization in Q1 • Entered dry dock early March and scheduled to complete sea trials last week of April • Full slate of backlog through 2013 and extending into 2014 North Sea • Well Enhancer succe
Slide 12: Contracting Services - Robotics
Contracting Services - Robotics • 93% chartered vessel utilization and 68% ROV utilization in Q1 • Purchased two new 200hp work-class ROV systems and deployed one in Q1 • Completed five ROVDrill subsea coring projects for renewable energy and oil and gas clients • Generated robust renewable energy a
Slide 13: Contracting Services - Subsea Construction
Contracting Services - Subsea Construction Contracting Services - Subsea Construction • Near full utilization for Subsea Construction vessels in Q1 • Express had 89% utilization in Q1 in the GOM completing projects for Anadarko, ENI, Helix Oil and Gas and Newfield • Intrepid had 97% utilization in Q
Slide 14: Contracting Services Utilization
Contracting Services Utilization • Express • Caesar • Island Pioneer (1) • Deep Cygnus (1) • Olympic Triton (1) • (5) spot vessels (1) • Well Enhancer • Q4000 • 2 ROVDrill Units • 3 Trenchers (1) Chartered vessels.
Slide 15: Oil & Gas
(A) Fourth quarter 2011 impairments primarily associated with the reduction in carrying values of certain oil and gas properties due to year-end revisions in reserves. Further, fourth quarter 2011 impacted by increased asset retirement obligations for U.S. and U.K. end of life properties. (B) Includ
Slide 16: 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 Boe data)
Slide 17: Summary of Apr 2012 - Dec 2013 Hedging Positions
Summary of Apr 2012 - Dec 2013 Hedging Positions * *As of April 20, 2012
Slide 18: Key Balance Sheet Metrics
18 Key Balance Sheet Metrics
Slide 19: Debt and Liquidity Profile
Debt and Liquidity Profile Liquidity of approximately $1.1 billion at 3/31/2012 (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 ($620 million), plus available capacity under our revolving credi
Slide 20: Debt Maturity Profile
Debt Maturity Profile • Total funded debt of $1.2 billion at end of Q1 2012 consisting of: o $358 million Convertible Senior Notes - 3.25% (A) ($319 million net of unamortized debt discount) o $379 million Term Loans - § LIBOR + 3.50% on $279 million, and § LIBOR + 2.75% on $100 million o $100 milli
Slide 21: 2012 Outlook
21 2012 Outlook
Slide 22: 2012 Outlook (revised) Broad Metrics
Broad Metrics 2012 Outlook (revised) 2012 Outlook (original) 2011 Actual Oil and Gas Production 7.5 MMboe 7.5 MMboe 8.7 MMboe EBITDAX > $600 million ~$600 million $669 million CAPEX ~$450 million ~$445 million $229 million Commodity Price Deck 2012 Outlook (revised) 2012 Outlook (original) 2011 Actu
Slide 23: 2012 Outlook - Contracting Services
2012 Outlook • Contracting Services o Strong backlog for the Q4000, Well Enhancer and Seawell through 2013 § Q4000 building backlog into 2014 o Intrepid completing repairs and working on LLOG and Nexen projects before entering dry dock o Express transiting to work in the Mediterranean and North Sea
Slide 24: 2012 Outlook - Oil and Gas
2012 Outlook • Oil and Gas o Forecasted 2012 overall production of 7.5 MMboe, including Danny 2 (Bushwood field) exploration well § Danny 2 production commences Q4 − Well expected to spud late April § Wang (Phoenix field) expected to be drilled in Q3 − Rig and drilling permit secured − Production no
Slide 25: 2012 Outlook - Capex
2012 Outlook - Capex • Capital Expenditures o Contracting Services ($260 million) § Announced new build semi submersible intervention vessel (approximately $130 million of capex in 2012) − $60 million incurred in Q1 § Regulatory dry docks for four vessels (two in process) § Continued incremental inv
Slide 26: Non-GAAP Reconciliations
26 Non-GAAP Reconciliations
Slide 27: Non-GAAP Reconciliations: Adjusted EBITDAX
Non-GAAP Reconciliations Adjusted EBITDAX ($ 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 28: Revenue and Gross Profit As Reported
Revenue and Gross Profit As Reported ($ in millions) Non-GAAP Reconciliations
Slide 29: Follow Helix ESG on Twitter and LinkedIn
Follow Helix ESG on Twitter: www.twitter.com/Helix_ESG Join the discussion on LinkedIn: www.linkedin.com/company/helix
Helix Energy Solutions Group — Q1 2012 Earnings Presentation on 6ix