Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q3 2011 Earnings Presentation
28 slides from Helix Energy Solutions's earnings presentation, Oct 25, 2011
Slide 1: Third Quarter 2011 Conference Call
Third Quarter 2011 Conference Call October 25, 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 Q3 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 Welding and spooling
Slide 4: Executive Summary
4 Executive Summary
Slide 5: Executive Summary
Executive Summary ($ in millions, except per share data) (A) See non-GAAP reconciliations on slides 26-27.
Slide 6: Executive Summary
Executive Summary • Q3 2011 EPS of $0.43 per diluted share driven by continuing strong results from the oil and gas business and robust activity levels for the well intervention and robotics businesses • Contracting Services o 99% utilization in well intervention business o Continued improvement in
Slide 7: Executive Summary
Executive Summary • Oil and Gas (continued) o Oil and gas production totaled 11.7 Bcfe in Q3 2011 versus 12.7 Bcfe in Q2 2011 (year-to-date production of 38.7 Bcfe) § Avg realized price for oil of $100.93 / bbl ($101.43 / bbl in Q2 2011), inclusive of hedges § Avg realized price for natural gas and
Slide 8: Operational Highlights
8 Operational Highlights
Slide 9: Contracting Services
($ in millions, except percentages) (A) See non-GAAP reconciliation on slides 26-27. Amounts are prior to intercompany eliminations. Contracting Services • 99% utilization in Well Ops • 63% utilization in Subsea Construction due to improved activity levels for Express and Intrepid • Caesar in shipya
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 Shell and Anadarko on multiple projects throughout the third quarter • 100% utilization achieved in the third quarter • Current backlog extends to Q4 2012 and is building into 2013 North Sea • Seawell and Well Enhancer posted a combined 98% util
Slide 12: Contracting Services - Robotics
Contracting Services - Robotics • Strong chartered vessel utilization in all three regions during the third quarter • Secured a three year ROV contract with Technip utilizing two newly acquired ROVs • ROVDrill upgrades completed; initial project to commence in the fourth quarter • Awarded a 30 day w
Slide 13: Contracting Services - Subsea Construction
Contracting Services - Subsea Construction Contracting Services - Subsea Construction • Express and Intrepid posted a combined 95% utilization in the third quarter (excluding the Caesar ) • Express completed projects for Noble, Chevron and Newfield • Intrepid completed projects for Noble and Chevron
Slide 14: Helix Fast Response System (HFRS)
Helix Fast Response System (HFRS) • Utilizes vessels and subsea systems proven in Gulf of Mexico spill response and containment efforts • Capability to capture and process up to 55,000 bpd in water depths to 10,000 feet at 15,000 psi • 24 independent E&P operators have signed on to include HFRS in d
Slide 15: Contracting Services Utilization
Contracting Services Utilization • Express • Caesar (1) • Island Pioneer (2) • Deep Cygnus (2) • Normand Clipper (2) • Olympic Triton (2) • Well Enhancer • Q4000 • 2 ROVDrill Units • 3 Trenchers (1) Vessel in shipyard during third quarter undergoing planned maintenance and upgrades. Completed upgrad
Slide 16: Oil & Gas
(A) Including effect of settled hedges and mark-to-market derivative contracts. Oil & Gas
Slide 17: Oil & Gas
Oil & Gas (A) Included accretion expense. Q2 2011 DD&A rate positively affected (approximately $9.2 million) due primarily to increased proved reserves at our Phoenix field as a result of better than expected production rates (net of adjustments in other fields). (B) Excluded exploration expense, ne
Slide 18: Summary of Oct 2011 - Dec 2013 Hedging Positions
Summary of Oct 2011 - Dec 2013 Hedging Positions * * As of October 23, 2011.
Slide 19: Key Balance Sheet Metrics
19 Key Balance Sheet Metrics
Slide 20: Debt and Liquidity Profile
Debt and Liquidity Profile Liquidity of approximately $933 million at 9/30/2011 (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 ($375 million), plus available capacity under our revolving credi
Slide 21: Helix Energy Solutions Group
HELIX ENERGY SOLUTIONS GROUP
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 $625+ million $475 million $430 million CAPEX $275 million $225 million $179 million Commodity Price Deck 2011 Forecast (revised) 2011 Forecast (original) 2010 Actual Hed
Slide 23: 2011 Outlook
2011 Outlook • Contracting Services o Strong backlog for the Q4000, Well Enhancer and Seawell in 2011 and building well into o Well Enhancer to work in West Africa this winter o Intrepid deployed to California performing field development projects through early 2012 o Express working through a full
Slide 24: 2011 Outlook
2011 Outlook • Capital Expenditures o Contracting Services ($110 million) § Continued incremental investment in robotics business, with a focus on adding trenching spread capacity § Seeking to deploy capital in well intervention business § Caesar thruster upgrade completion o Oil and Gas ($165 milli
Slide 25: Non-GAAP Reconciliations
25 Non-GAAP Reconciliations
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDAX ($ 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
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