Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q3 2017 Earnings Presentation
25 slides from Helix Energy Solutions's earnings presentation, Oct 23, 2017
Slide 1: Third Quarter 2017 Conference Call
HELIX ENERGY SOLUTIONS Third Quarter 2017 | pg oes Call
Slide 2: Forward Looking Statements
ENERGY SOLUTIONS — HELIX Forward Looking Statements \! This presentation contains forward-looking statements that involve risks, uncertainties and assumptions that could Y/ S al future operations; any statements concerning developments; any statements regarding future economic conditions jerforme st
Slide 3: Presentation Outline
ENERGY SOLUTIONS em HELIX Presentation Outline ao e Executive Summary (pg. 4) e Operational Highlights by Segment (pg. 8) e Key Financial Metrics (pg. 15) 2017 Outlook (pg. 18) e Non-GAAP Reconciliations (pg. 23) e Questions & Answers OV Operations on Grand Canyon II Navigating the present, focusing
Slide 4: Executive Summary
HELIX Executive Summary
Slide 5: Executive Summary
ENERGY SOLUTIONS Ae LIELIX Executive Summary (Sin millions, except per share data) Three Months Ended Nine Months Ended 9/30/2017, 9/30/2016 6/30/2017, 9/30/2017, 9/30/2016 Revenues $ 163 $ 161 $ 150 $ 418 $ 360 Gross profit $ 21 $ 40 $ 18 $ 39 $ 29 13% 25% 12% 9% 8% Net income (loss) $ 2 $ ab $ (6)
Slide 6: Executive Summary: Operations
ENERGY SOLUTIONS em HELIX Executive Summar a J Operations e Q83 2017 net income of $2 million, $0.02 per diluted share, compared to Q2 2017 net loss of $6 million, $(0.04) per diluted share Q8 2017 Adjusted EBITDA’ of $30 million, in line with Q2 2017 Well Intervention — Q3 2017 © Utilization of 88%
Slide 7: Executive Summary: Balance Sheet
eam HELIX Executive Summary al ENERGY SOLUTIONS Balance Sheet e Cash and cash equivalents totaled $357 million at 9/30/17 © $13 million of cash used for regularly principal debt rep in Q3 © $37 million of cash used for capital expenditures in Q3 2017 e Long-term debt of $504 million at 9/30/17 compa
Slide 8: Operational Highlights
Bm HELIX Operational Highlights Navigating the present, focusing on the future
Slide 9: Business Segment Results
ENERGY SOLUTIONS a HELIX Business Segment Results ! Third Quarter 2017 (Sinmilions) ‘Three Months Ended + 88% utilization across the well intervention fleet wan 2017 ean2016 es0;2017 + 4000 86% utilization; Q5000 75% utilization , a ) se + Well Enhancer 84% utilization; Seawell 97% utilization Well
Slide 10: Well Intervention - GOM
= HELIX ENERGY SOLUTIONS Gulf of Mexico e Q5000 was 75% utilized in Q3 2017; the vessel completed its work with two clients then began a three well intervention campaign, which completed mid August; the vessel returned to work for BP in early September e Q4000 was 86% utilized in Q3 2017; the vessel
Slide 11: Well Intervention - North Sea
ENERGY SOLUTIONS Ae HELIX Well Intervention — North Sea \! North Sea Well Enhancer was 84% utilized in Q3 2017; the vessel completed an 11 well P&A program performing well suspension preparation activities with zero day: downtime associated with the tower handling i pleted a well p i enhancement pro
Slide 12: Well Intervention - Brazil
ENERGY SOLUTIONS em HELIX Well Intervention - Brazil co Brazil e Siem Helix 1 was 96% utilized in the quarter; during the quarter we addressed the majority of items identified in the vessel acceptance process Siem Helix 1 performed successful operations on five wells during Q3 2017; the vessel's fin
Slide 13: Robotics
Ae HELIX 1 ENERGY SOLUTIONS e 80% chartered vessel fleet utilization in Q3 2017; 46% utilization for ROVs, trenchers and ROVDrills Grand Canyon (North Sea) had full utilization during Q3 2017 on two separate trenching projects including one long-term project of over 100 days e Grand Canyon II (GOM)
Slide 14: Chartered Vessel Utilization
A HELIX ‘Chartered ve 100% 80% 60% 40% 20% 0% ERGY SOLUTIONS. Utilization id + Q4000 + Deep Cygnus! + Skandi Constructor!:? + Grand Canyon’ + Seawell + Grand Canyon Il! + Well Enhancer Grand Canyon It! + 5000 tal ‘Siem Helix 113 2Crarter tom npred in March 2017 sees ee ores ate 4 =Q3 2017 =Q2 2017 0
Slide 15: Key Financial Metrics
¢ = W ENERGY SOLUTIONS Key Financial Metrics
Slide 16: Debt Instrument Profile
ENERGY SOLUTIONS em HELIX Debt Instrument Profile a Total funded debt’ of $530 million at end of Q3 2017 © $60 million Convertible Senior Notes due 2032 — 3.25%? © $125 million Convertible Senior Notes due 2022 — 4.25% ¢ $98 million Term Loan — LIBOR + 4.25% o Annual amortization payments of 5% in y
Slide 17: Debt & Liquidity Profile
A HELIX Debt & Liquidity Profile 1 ENERGY SOLUTIONS $2,000 $1,200 @ — Sinmilions) ° $1,500 + $900 $1,338 $1,338 3 3 $1,000 $600 $500 $300 $0 $0 1231/2008 12/31/2009 12/31/2010 12/31/2011 12/81/2012 12/81/2013 12/81/2014 12/31/2015 12/81/2016 09/30/2017 mmLT Debt mmmINet Debt -©- Liquidity Liquidity
Slide 18: 2017 Outlook
Ae HELIX 2017 Outlook ———— SSS SSS Ne SS = = Navigating the present, focusing on the future
Slide 19: 2017 Outlook: Forecast
Ae LIELIX 2017 Outlook: Forecast ($inmilions) 2017 2016 Outlook Actual Revenues $ ~570-590 $ 488 EBITDA ~ 105-115 90 ~ 245 189 Revenue Split: Well Intervention $ 395-410 $ 294 Robotics 150-155 161 Production Facilities 72 Elimination (39) Total 488 Navigating the present, focusing on the future
Slide 20: 2017 Outlook: Well Intervention
ENERGY SOLUTIONS Ae LIELIX 2017 Outlook: Well Intervention ! Total backlog as of 30, 2017 was i $1.7 billion Q4000 currently idle; contracted work into Q1 2018 Q5000 returned to BP operations early September for remainder of 2017 IRS rental system awarded contract for ~150 days in Mauritania beginni
Slide 21: 2017 Outlook: Robotics
em HELIX 2017 Outlook: Robotics al ENERGY SOLUTIONS e Grand Canyonwill continue trenching projects through mid November; the vessel has limited visibility following that work due to seasonality of the winter season in North Sea e Grand Canyon II has a contract providing for full utilization through
Slide 22: 2017 Outlook: Capital Expenditures & Balance Sheet
pas HELIX 2017 Outlook: Capital Expenditures 7 __ ENERGY SOLUTIONS & Balance Sheet 2017 Capital E: di 1 are y fi d at approxi $245 million, isting of the foll g e Growth Capex - $230 million in growth capital, primarily for newbuilds, including: © $96 million for Q7000 © $112 million for Siem Helix
Slide 23: Non-GAAP Reconciliations
wacrsounors NON-GAAP Reconciliations Ae HELIX Navigating the present, focusing on the future
Slide 24: Non-GAAP Reconciliations
HELIX Non-GAAP Reconciliations 1 ENERGY SOLUTIONS (Sin millions) Three Months Ended Nine Months Ended Twelve Months Ended 9/80/2017 9/30/2016 6/30/2017 9/30/2017 9/30/2016 12/31/2016 Net income (loss) $ 2 $ "1 $ © $ (1) $ (27) $ (81) justments: Income tax provision (benefit) 2) 4 5 (1) (10) (12) Net
Slide 25: HLX Listed NYSE
ENERGY SOLUTIONS Oe HELIX HLX Listed NYSE® Follow Helix on Twitter - @Helix_ESG www.linkedin.com/company/helix-energy-solutions-group
Helix Energy Solutions Group — Q3 2017 Earnings Presentation on 6ix