Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q2 2013 Earnings Presentation
24 slides from Helix Energy Solutions's earnings presentation, Jul 23, 2013
Slide 1: Second Quarter 2013 Conference Call
* Second Quarter 2013 Conference Call July 23, 2013
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” w
Slide 3: Presentation Outline
* Presentation Outline Executive Summary Summary of Q2 2013 Results (pg. 4) Operational Highlights by Segment Contracting Services (pg. 9) Key Balance Sheet Metrics (pg. 14) 2013 Outlook (pg. 17) Non-GAAP Reconciliations (pg. 21) Questions & Answers UHD ROV mobilizing in the Gulf of Mexico
Slide 4: Executive Summary
* Executive Summary *
Slide 5: Executive Summary
* Executive Summary ($ in millions, except per share data) Q2 2012 includes: $14.1 million asset impairment charge related to the Intrepid; $6.9 million ARO increase related to our non-domestic oil and gas property located in the North Sea. See non-GAAP reconciliation on slide 22.
Slide 6: Executive Summary
* Executive Summary Q2 2013 earnings per share of $0.26 per diluted share compared with $0.02 per diluted share in Q1 2013 Contracting Services and Production Facilities Skandi Constuctor (chartered vessel) entered Well Intervention fleet in Q2 93% utilization of Well Intervention vessels; outlook r
Slide 7: Executive Summary: Balance Sheet
* Executive Summary Balance sheet Cash and cash equivalents decreased to $514 million at 06/30/2013 from $626 million at 03/31/2013 Repaid term loan and revolver borrowings during Q2 ($150 million) $108 million in pre-tax proceeds from the sale of the Caesar in June 2013 offset by aforementioned pay
Slide 8: Operational Highlights
* Operational Highlights *
Slide 9: Contracting Services
* ($ in millions, except percentages) See non-GAAP reconciliation on slide 23. Amounts are prior to intercompany eliminations. Before gross profit impact of asset impairment charges: $14.6 million for the Intrepid in 2Q 2012. 93% utilization for the Well Intervention fleet Skandi Constructor (charte
Slide 10: Contracting Services – Well Ops
* GOM Q4000 86% utilized during Q2; downtime for inspections and maintenance IRS no. 2 on hire starting June 1, 2013 for the remainder of 2013 Helix 534 now expected to commence operating in the Gulf of Mexico in late Q4 with full backlog for remainder of 2013, 2014, and extending into 2017 Negotiat
Slide 11: Contracting Services – Robotics
* 98% chartered vessel utilization in Q2 Four vessels under long-term charter, plus five vessels of opportunity 61% utilization for ROVs, trenchers, and ROVDrills Deep Cygnus performing ROVDrill project for Statoil in Norway Grand Canyon achieved 97% utilization performing both trenching and ROV ser
Slide 12: Contracting Services – Subsea Construction
* Express had 100% utilization in Q2 working in the GOM Sale of the Caesar was completed on June 17th Sale of the Express was completed on July 17th Entered into an agreement to sell Ingleside shorebase facilities to EMAS-AMC (closing expected in January 2014) Contracting Services – Subsea Construct
Slide 13: Contracting Services Utilization
* Express Caesar Olympic Canyon (1) Deep Cygnus (1) Olympic Triton (1) Grand Canyon (1) Seawell Well Enhancer Q4000 Skandi Constructor (1) 49 ROVs 2 ROVDrill Units 4 Trenchers (1) Chartered vessels Contracting Services Utilization
Slide 14: Key Balance Sheet Metrics
* Key Balance Sheet Metrics *
Slide 15: Total Funded Debt and Maturity Profile
* Total funded debt of $603 million at end of Q2 2013 (Pro forma retirement of senior notes): $200 million Convertible Senior Notes – 3.25% (A) ($171 million net of unamortized debt discount) $300 million Term Loan – LIBOR + 2.75% Annual amortization payments of 5% in years 1 and 2, 10% per annum in
Slide 16: Debt and Liquidity Profile
* Liquidity of approximately $1.1 billion at 6/30/2013 ($ amounts in millions) Includes impact of unamortized debt discount under our convertible senior notes. Liquidity, as we define it, is equal to cash and cash equivalents ($514 million), plus available capacity under our revolving credit facilit
Slide 17: 2013 Outlook
* 2013 Outlook *
Slide 18: 2013 Outlook
* 2013 Outlook ($ in millions) 2013 Outlook and 2012 Actual includes $32 million and $367 million, respectively, from Oil and Gas discontinued operations. 2013 Outlook excluding Subsea Construction and Oil and Gas, plus expected annualized contribution from Helix 534 and chartered Skandi Constructor
Slide 19: 2013 Outlook
* 2013 Outlook Contracting Services Backlog as of June 30, 2013 was approximately $1.8 billion Utilization expected to remain strong for the well intervention fleet Q4000 backlog thru 2015; on-going negotiations to extend contracted work into 2018 Q5000 initial backlog of 270 days annually over firs
Slide 20: 2013 Outlook – Capex
* 2013 Outlook – Capex Capital Expenditures Contracting Services (approximately $365 million in 2013) $59 million incurred in Q2, $121 million year to date Q5000 new build (approximately $135 million in 2013) On schedule for delivery in 2015 Helix 534 continues conversion in Singapore into a well in
Slide 21: Non-GAAP Reconciliations
* Non-GAAP Reconciliations *
Slide 22: Non-GAAP Reconciliations
* Non-GAAP Reconciliations We calculate Adjusted EBITDA from continuing operations as earnings before net interest expense and other, taxes, depreciation and amortization. Adjusted EBITDAX is Adjusted EBITDA from continuing operations plus the earnings of our former oil and gas business before net i
Slide 23: Non-GAAP Reconciliations
* Non-GAAP Reconciliations ($ in millions)
Slide 24: * * Follow Helix ESG on Twitter: www.twitter.com/Helix_ESG Join the discussion on LinkedIn: www.linkedin.com/company/…
* * Follow Helix ESG on Twitter: www.twitter.com/Helix_ESG Join the discussion on LinkedIn: www.linkedin.com/company/helix
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