Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q2 2019 Earnings Presentation
26 slides from Helix Energy Solutions's earnings presentation, Jul 25, 2019
Slide 1: Helix Energy Solutions: Navigating the present, focusing on the future
HELIX ENERGY SOLUTIONS Navigating the present, focusing on the future
Slide 2: Forward-Looking Statements
fj 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 histori
Slide 3: Presentation Outline
i Presentation Outline * Executive Summary (pg. 4) * Operational Highlights by Segment (pg. 9) | gg" * Key Financial Metrics (pg. 16) * 2019 Outlook (pg. 19) * Non-GAAP Reconciliations (pg. 24) * Questions and Answers oa ENERGY SOLUTIONS Navigating the present, focusing on the future
Slide 4: Executive Summary
I [Executive Summary = sm = | Fn scr so1uTIONs Navigating the present, focusing on the future
Slide 5: Executive Summary
Executive Summary ($in millions, except per share data) Three Months Ended Six Months Ended 6/30/19 6/30/18 3/31/19 6/30/19 6/30/18 Revenues $ 202 $ 205 $ 167 $ 369 $ 369 Gross profit $ 40 $ 43 $ 16 $ 56 $ 56 20% 21% 10% 15% 15% Net income $ 17 § 18 § 4 $ 18 $ 15 Diluted earnings per share $ 0.14 $
Slide 6: Executive Summary: Highlights
Mj Executive Summary Highlights Q2 2019 Net income of $17 million, $0.11 per diluted share, compared to $1 million, $0.01 per diluted share, in Q1 2019 and $18 million, $0.12 per diluted share, in Q2 2018 Adjusted EBITDA’ of $50 million compared to $30 million in Q1 2019 and $52 million in Q2 2018 O
Slide 7: Executive Summary: Operations
Mj Executive Summary Operations e Well Intervention e Utilization of 94% across the well intervention vessel fleet e 85% in the GOM e 98% in the North Sea e 99% in Brazil e 15K IRS utilization 77%; 10K IRS idle during quarter e Robotics e Robotics chartered vessels utilization 92%, including 138 ves
Slide 8: Executive Summary: Balance Sheet
Executive Summary Balance Sheet e Liquidity’ of approximately $432 million at 6/30/19 e Cash and cash equivalents totaled $261 million at 6/30/19 e $7 million of cash used for net repayments of debt ($9 million scheduled principal repayments and $2 million of additional funds borrowed on term loan)
Slide 9: Operational Highlights by Segment
|Operational Highlights by Segment Navigating the present, focusing on the future
Slide 10: Business Segment Results
Business Segment Results Three Months Ended Six Months Ended 6/30/19 6/30/18 3/31/19 6/30/19 6/30/18 Revenues Well Intervention $ 159 162 122 281 292 Robotics 45 39 39 85 66 Production Facilities 16 16 15 31 32 Intercompany Eliminations (18) (12) (9) (28) (21) Total $ 202 205 167 369 369 Gross profi
Slide 11: Well Intervention - GOM
wei Intervention -GOM Gulf of Mexico e Q5000 — 77% utilized in Q2 performing 15K intervention work for BP; incurred unplanned downtime during quarter e Q4000 — 93% utilized in Q2; completed 12-well abandonment and performance enhancement campaign; performed two-well abandonment for Q5000 another cus
Slide 12: Well Intervention - North Sea
Well Intervention —North Sea North Sea e Well Enhancer — 99% utilized in Q2; operational in light well intervention mode for three customers performing abandonment operations on one well and production enhancement on four wells, including the completion of a successful riser-based shallow water coil
Slide 13: Well Intervention - Brazil
wei Intervention — Brazil Brazil e Siem Helix 1 — 99% utilized in Q2; performed abandonment scope on two wells and workover and performance enhancement operations on two wells e@ Siem Helix 2 — 99% utilized in Q2; performed abandonment scope on one well and workover and Siem Helix 1 performance enha
Slide 14: Robotics
Robotics e Chartered vessel fleet 92% utilized (including spot vessels) in Q2; ROVs, trenchers and ROVDrill 41% utilized e Grand Canyon (North Sea) — 98% utilized in Q2 performing trenching operations e Grand Canyon II (Asia Pacific) — 96% utilized in Q2 performing ROV support projects for three cus
Slide 15: Utilization
Utilization 100% 80% 60% ™Q2 2019 40% 41% 39% 38% = Q1 2019 Q2 2018 20% 0% a Well Intervention Vessels ROV and Trencher Support ROVs and Trenchers Vessels + Q5000 + Grand Canyon" + 46 ROVs? + Q4000 * Grand Canyon II" + 1 ROVDrill unit? + Seawell + Grand Canyon III* + 4 Trenchers? + Well Enhancer + S
Slide 16: Key Financial Metrics
Mikey Financial Metrics INiRGY SOLUTIONS Navigating the present, focusing on the future.
Slide 17: Debt Instrument Profile
Debt Instrument Profile Principal Payment Schedule at 6/30/19 Total funded debt! of $459 million at 6/30/19 ($ in millions) e $125 million Convertible Senior Notes due 2022 — 4.25% L $150 $133 $133 e $125 million Convertible Senior Notes due 2023 — 4.125% $100 $100 }~ e $35 million Term Loan — LIBOR
Slide 18: Debt & Liquidity Profile
Debt & Liquidity Profile $1,200 (8 in millions) $800 $554 $400 $76 $0 12/31/13 12/31/14 12/31/15 12/31/16 = 12/31/17 12/31/18 ~—«6/30/19 mmLTDebt' mmNet Debt? -+Liquidity* Liquidity’ of approximately $432 million at 6/30/19 * Long-term debt is net of unamortized debt issuance costs and discount of o
Slide 19: 2019 Outlook
92019 Outlook ENERGY SOLUTIONS Navigating the present, focusing on the future.
Slide 20: 2019 Outlook: Forecast
2019 Outlook: Forecast ($ in millions) 2019 2018 Outlook Actual Revenues $ 700 - 760 $ 740 Adjusted EBITDA"? 165 - 190 162 Capital Additions® ~145 135 Revenue Split: Well Intervention $ 550 - 600 $ 561 Robotics 150-175 159 Production Facilities” 55- 60 64 Eliminations (55) - (75) (44) Total $ 700 -
Slide 21: 2019 Outlook: Well Intervention
M2019 Outlook: Well Intervention e Total backlog at June 30, 2019 was approx. $1.0 billion, including $0.7 billion for Well Intervention e Gulf of Mexico e Q4000 — contracted backlog through October, with identified spot market opportunities through the remainder of 2019 e Q5000 — contracted with BP
Slide 22: 2019 Outlook: Robotics
M2019 Outlook: Robotics e Improved cost structure resulting from the Grand Canyon II hedge expiration in July and termination of the Grand Canyon vessel charter in October e Grand Canyon (North Sea) — expected to perform trenching work through scheduled return of the vessel in October e Grand Canyon
Slide 23: 2019 Outlook: Capital Additions & Balance Sheet
2019 Outlook: Capital Additions & Balance Sheet 2019 Capital additions are currently forecasted at approximately $145 million, consisting of the following: e Growth Capex — $120 million’ related to completion of the Q7000 and related intervention system: o $117 million for Q7000, including a $69 mil
Slide 24: Non-GAAP Reconciliations
BNon- “GAAP Reconciliations ENERGY SOLUTIONS 24
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations (8 in thousands) Three Months Ended Six Months Ended aweyle Months: Ended 6/30/19 6/30/18 331/19) 6/30/19 6/30/18 12/31/18 Adjusted EBITDA: Net income $ 16823 $ 17,784 $ 1318 $ 18141 $ 15224 $ 28,598 ‘Adjustments: Income tax provision 2.876 298 324 3,200 385 2,400 Net intere
Slide 26: Follow Helix ESG on Twitter
Follow Helix ESG on Twitter: www.twitter.com/Helix_ESG Join the discussion on LinkedIn: Facebook /HelixEne
Helix Energy Solutions Group — Q2 2019 Earnings Presentation on 6ix