Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Corporate Update (February 2019)
30 slides from Helix Energy Solutions's corporate update, Feb 27, 2019
Slide 1: Company Update February 2019
Company Update February 2019
Slide 2: Forward-Looking Statements
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 historical
Slide 3: Who We Are
x Who We Are Helix is a specialty deepwater service provider to the offshore energy industry, focusing on our subsea infrastructure services in == Well Intervention and Robotics. ales
Slide 4: Deepwater Subsea Services
Deepwater Subsea Services Well Intervention Entering a wellbore to initiate, enhance, restore or decommission production as part of the well's natural life cycle. Robotics Providing remotely operated vehicles (ROVs) to perform deepwater service tasks beyond the reach of dive crews. Why focus on thes
Slide 5: : ; Bawa |
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Slide 6: Well Intervention Overview
Well Intervention Overview r
Slide 7: Well Intervention Current Asset Base
Well Intervention Current Asset Base Gulf of Mexico 4000 5000
Slide 8: Well Intervention Current Asset Base
Well Intervention Current Asset Base == Siem Helix 1 (chartered vessel) Siem Helix 2 (chartered vessel)
Slide 9: Future Well Intervention Growth
Future Well Intervention Growth Q7000 — Under Completion Intervention Riser Systems + ‘Includes IRS system and 18%.’ ROAM system (Riserless Open Abandonment Module) HELIX
Slide 10: Subsea Services Alliance
Subsea Services Alliance et HELIX = ENERGY SOLUTIONS + Vessels-experienced crews + Intervention systems + WROV services for well operations Gonesubsea SH *senumberge Compan > = Tooling and interface solutions + Tooling and interface management, = Subsea equipment oe alll Schlumberger Well interventi
Slide 11: Robotics
Robotics
Slide 12: Robotics Assets: Workclass ROVs, Trenchers, ROVDrill
Robotics Assets 46 Workclass ROVs 5 Trenchers 1 ROVDrill The backbone of the The key to pipeline Provide seabed fleet, capable of installation in heavily composition intelligence performing a broad array trafficked waters for subsea construction of subsea construction and subsea mining and well inte
Slide 13: What Sets Helix Apart in Robotics
What Sets Helix Apart in Robotics Oil & Gas Renewable Energy Subsea Mining Specialty Services e Helix charters its ROV support vessels, ensuring a modern fleet that can expand and contract based on regional requirements and market conditions e A fleet of advanced vehicles, including several units cu
Slide 14: Production Facilities
Production Facilities
Slide 15: Production Facilities
Production Facilities Helix Producer | FPU (100%) Location: Phoenix Field (GOM) Production handling contract until at least June 1, 2023 Helix Fast Response System e Contract to provide GOM spill response services to consortium of 16 operators in the Gulf of Mexico Independence Hub Semi (20%) e Like
Slide 16: Key Financial Metrics
Key Financial Metrics
Slide 17: Three-Year Trend
Three-Year Trend $ in millions $900 $200 $150 $700 + $100 Net Income (loss) Revenue $500 $50 Adjusted EBITDA + $0 $300 -$50 $(61) $100 -$100 2016 2017 2018 mmmRevenue iNet Income (loss) Adjusted EBITDA * HELIX + Adjusted EBITDA is a Non-GAAP financial measure. See non-GAAP reconciliations on slide 2
Slide 18: Financial Results
Financial Results (Sin millions, except per share data) Year Ended Change 1213118 —_12/31/17_—_*12/31/16 “8 vs.17 A7vs. 16 Revenues $ 740 $ 581 $ 488 $ 159 2% $ 8 wu Gross profit $ 122 $ 62 $ 47 S$ 60 om =F 15 seu 16% 1% 11% Net income (loss) $ 29 $ 30 $ (81) S$ (1)s% $1114 wm Diluted earnings (loss
Slide 19: Revenue Dispersion
Revenue Dispersion (Sin millions) Services Geography $800 $800 7. 40 600 $581 600 $581 $488 400 400 200 . 200 614 oO oO 2016 2017 2018 2016 2017 2018 ‘Well Intervention = Robotics = Production Facilities United States (Gulf of Mexico) ™ Brazil = United Kingdon (North Sea) = Other HELIX
Slide 20: Debt & Liquidity Profile
Debt & Liquidity Profile inmilions) $800 $400 $76 $61 $0 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 M@mmLT Debt! mmmNet Debt? -#-Liquidity® Liquidity of approximately $426 million at 12/31/18 * Long-term debt is net of uramortized debt issuance costs and discount of our Convertib
Slide 21: Debt Instrument Profile
Debt Instrument Profile Total funded debt! of $479 million at 12/31/18 Debt Instrument Profile at 12/31/18 Principal Payment Schedule © $125 million Convertible Senior Notes due 2022 — 4.25% (Sin millions) © $125 million Convertible Senior Notes due 2023- 4.125% $200 $126 $133 $133, © $34 million Te
Slide 22: Outlook
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Slide 23: 2019 Outlook: Forecast
2019 Outlook: Forecast (Sin millions) 2019 2018 Outlook Actual Revenues $ 700 - 760 740 Adjusted EBITDA‘? 165 - 190 162 Capital Additions? ~ 140 134 Revenue Split: Well Intervention $ 545 - 620 561 Robotics 145 - 160 159 Production Facilities? 50- 55 64 Elimination (40) - (75) (44) Total 700 - 760 7
Slide 24: 2019 Outlook: Well Intervention
2019 Outlook: Well Intervention Total backlog at December 31, 2018 was approximately $1.1 billion ($0.9 billion for Well Intervention) Gulf of Mexico 4000 — Began an expected 12-well campaign in December with estimated duration into April 2019, then working in spot market with good utilization expec
Slide 25: 2019 Outlook: Robotics
2019 Outlook: Robotics « Improved cost structure with reductions related to vessel charters, including expiration of the Grand Canyon charter in October 2019, and expiration of the hedge on the Grand Canyon II in July 2019 Grand Canyon (North Sea) — performing trenching work through Q1 2019. Current
Slide 26: 2019 Outlook: Capital Additions & Balance Sheet
2019 Outlook: Capital Additions & Balance Sheet 2019 Capital Additions are currently forecasted at approximately $140 million, consisting of the following: Growth Capex - $115! million related to completion of the Q7000 and related intervention system: 0 $112 million for the Q7000, including a $69 m
Slide 27: Beyond 2019
Beyond 2019 e Expect improvements despite challenging market conditions © Several long term well intervention contracts © Operational improvements and cost reductions Market improvements offer additional upside potential Cash Flows improvements © Improved operating cash flows and positive free cash
Slide 28: Non-GAAP Reconciliations
Non-GAAP _ Reconciliations
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations (Sin thousands) ‘Three Months Ended Year Ended Tae _ wan? _ enone wane _ aan ‘Adjusted EBITDA: Net income (loss) $ (13,747) $ 50580 $ 27,121 $ 28598 $ 30.052 ‘Adjustments: Income tax provision (bene) 47% (49,307) eat 2400 (50,424) Net interest expense 3.007 3.298 3.249 13,75
Slide 30: Helix Energy Solutions
ENERGY SOLUTIONS HLX Listed NYSE® Follow Helix on Twitter @Helix_ESG Follow Helix on Facebook: www.facebook.com/helixenergysolutionsgroup Connect with Helix on LinkedIn: wvww.linkedin.com/company/helix-energy-solutions-group
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