Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q4 2017 Earnings Presentation
25 slides from Helix Energy Solutions's earnings presentation, Feb 20, 2018
Slide 1: Fourth Quarter 2017 Conference Call
miELIX 1 ENERGY SOLUTIONS «Fourth Quarter 2017 _ Conference Call
Slide 2: Forward Looking Statements
ENERGY SOLUTIONS a ElELILX 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
Slide 3: Presentation Outline
ENERGY SOLUTIONS eam HELIX Presentation Outline on e Executive Summary (pg. 4) e Operational Highlights by Segment (pg. 8) e Key Financial Metrics (pg. 15) e 2018 Outlook (pg. 18) e Non-GAAP Reconciliations (pg. 23) e Questions & Answers ROV Operations on Grand Canyon II Navigating the present, focu
Slide 4: Executive Summary
HELIA Executive Summary
Slide 5: Executive Summary
ENERGY SOLUTIONS a HELIX Executive Summary ao (Sin millions, except per share data) Three Months Ended Twelve Months Ended 12/31/2017 12/31/2016 (9/30/2017 12/31/2017 (12/31/2016 Revenues $ 163 $ 128 163 $ 581 $ 488 Gross profit $s 23 § 8 § 21 $ 6 $ 47 14% 14% 13% 11% 10% Goodwill impairment $ =~ §
Slide 6: Executive Summary
ENERGY SOLUTIONS. a HELIX Executive Summary ao Operations © Q4 2017 net income of $50 million, $0.34 per diluted share, compared to Q3 2017 net income of $2 million, $0.02 per diluted share © Q4 2017 net income included a non-cash benefit of approximately $52 million related to the 2017 U.S. tax law
Slide 7: Executive Summary: Balance Sheet
a HELIX Executive Summary al ENERGY SOLUTIONS Balance Sheet e Cash and cash equivalents totaled $267 million at 12/31/17 © $10 million of cash used for regularly scheduled principal debt repayments in Q4 2017 o $100 million of cash used for capital expenditures in Q4 2017, including Q7000 shipyard p
Slide 8: Operational Highlights
Operational Highlights
Slide 9: Business Segment Results
] ENERGY SOLUTIONS Oe HELIX ($inmilions) 12/31/2017 Revenues Well Intervention $ 107 Robotics 51 Production Facilities: 16 Intercompany elimination Total Gross profit (loss) Well Intenention 19 Robotics o) Production Facilities if Elimination and other : Total $ 23 Business Segment Results ‘Three Mo
Slide 10: Well Intervention - GOM
ENERGY SOLUTIONS eam HELIX Well Intervention - GOM on Gulf of Mexico e Q5000 was 100% utilized in Q4 2017 for BP; worked continuously at depth for nearly 80 days carrying out stimulation projects on two wells e Q4000 was 66% utilized in Q4 2017; the vessel completed a two-well program with one well
Slide 11: Well Intervention - North Sea
HELIX Well Intervention — North Sea al ENERGY SOLUTIONS North Sea e Well Enhancer was whe utilized in Q4 2017; through then into warm stack mode in ee e Seawell was 60% utilized in Q4 2017; year-end warm stack in Denmark Well Enhancer Navigating the present, focusing on the future.
Slide 12: Well Intervention - Brazil
ENERGY SOLUTIONS eam HELIX Well Intervention - Brazil ao Brazil e Siem Helix 1 was 98% utilized, having performed successful operations on three wells during Q4 2017 e Siem Helix 2 finalized the Petrobras inspections and acceptance process; 53% utilized after commencing operations mid-December with
Slide 13: Robotics
ENERGY SOLUTIONS Oe HELIX 85% chartered vessel fleet utilization in Q4 2017; 41% utilization for ROVs, trenchers and ROVDrills e Grand Canyon (North Sea) - 59 days of utilization during Q4 2017 primarily completing two separate trenching projects e Grand Canyon II (GOM) - full utilization during Q4
Slide 14: Utilization
ef HELIX Utilization ] ENERGY SOLUTIONS 60% ; m4 2017 page ad 3 2017 40% a4 2016 0% ROVs and Trenchers + Q4000 "s + Skandi Constructor’? * Grand Canyon’ + 2ROVDrill units + Seawell + Grand Can; a I + 5 Trenchers : We eracras? : ersralee an It : + Spot ves: . Sonn Helix 1°° + Siem Helix 215 ‘chartere
Slide 15: Key Financial Metrics
kB i 1 ine vy Pt ir id lt vi vd ra a Ps i
Slide 16: Debt Instrument Profile
ENERGY SOLUTIONS. am HELIX Debt Instrument Profile on Total funded debt! of $520 million at end of Q4 2017 © $60 million Convertible Senior Notes due 2032 — 3.25%? © $125 million Convertible Senior Notes due 2022 — 4.25% © $97 million Term Loan —LIBOR + 4.25% o Annual amortization payments of $7.5 m
Slide 17: Debt & Liquidity Profile
a HELIX Debt & Liquidity Profile 1 ENERGY SOLUTIONS. $2,000 ‘$1,200 r ($in millions) $1,500 f $900 $1,338 $1,398/ 3 a $1,000 $600 ‘$500 $300 $0 1219172008 1291/2000 12/91/2010 12/31/2011 12:91/2012 12/91/2013 1211/2014 129172015 1201/2016 12/91/2017 mmnLT Debt mmmNet Debt -e-Liquidity Liquidity of a
Slide 18: 2018 Outlook
Oe HELIX 2018 Outlook — — — Ea —— ~~ SSS == : / \ 2 =
Slide 19: 2018 Outlook: Forecast
rd HELIX 2018 Outlook: Forecast ENERGY SOLUTIONS. (Sin millions) 2018 2017 Outlook Actual Revenues $ ~685-730 $ 581 EBII ~ 135-165 107 CAPEX 7135, 248 Revenue Split: Well Intervention $ 520-555 $ 406 Robotics 140-150 153 Production Facilities 65 64 Elimination (40) (42) Total $ _~685-730 $ 581 Key f
Slide 20: 2018 Outlook: Well Intervention
ENERGY SOLUTIONS. a HELIX 2018 Outlook: Well Intervention ! e Total backlog as of December 31, 2017 was approximately $1.6 billion, including $1.2 billion for Well Intervention e Gulf of Mexico @ Q4000 primarily working spot market; backlog into Q2 2018 Q5000 forecasted work for BP for 270 days; out
Slide 21: 2018 Outlook: Robotics
ENERGY SOLUTIONS a HELIX 2018 Outlook: Robotics a e Q1 2018 - weak vessel utilization due to seasonal slowdown in North Sea and return of Deep Cygnus in Q1 2018 e Grand Canyon and Grand Canyon III are pursuing spot opportunities in North Sea during Q1 2018; Grand Canyon is expected to be fully utili
Slide 22: 2018 Outlook: Capital Expenditures & Balance Sheet
pas HELIX 2018 Outlook: Capital Expenditures 1 ENERGY SOLUTIONS & Balance Sheet 2018 Capital Expenditures are currently f d at approxi $135 million, of the 9g e Growth Capex - $115! million in growth capital, primarily for newbuilds, including: o $105 million for Q7000, including a $69 million shipy
Slide 23: Non-GAAP Reconciliations
Slide 24: Non-GAAP Reconciliations
HELIX Non-GAAP Reconciliations 1 ENERGY SOLUTIONS (Sin millions) Three Months Ended Twelve Months Ended 12/31/2017 12/31/2016 9/30/2017 12/31/2017 12/31/2016 Net income (loss) $ 50 $ (4) § 2 oaS) 30 $ (81) Income taxbenefit (49) @) @) (60) (12) 6 19 31 argent ushinaitoniones - * : “ 7 ) expense, net
Slide 25: Helix Energy Solutions contact
Oe HELIX ENERGY SOLUTIONS HLX Listed NYSE® Follow Helix on Twitter - @Helix_ESG www.linkedin.com/company/helix-energy-solutions-group
Helix Energy Solutions Group — Q4 2017 Earnings Presentation on 6ix