Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q2 2018 Earnings Presentation
25 slides from Helix Energy Solutions's earnings presentation, Jul 23, 2018
Slide 1: Second Quarter 2018 Conference Call
= HELIX ENERGY SOLUTIONS Second Quarter 2018 Conference Call July 24, 2018 Navigating the present, focusing on the future
Slide 2: Forward-Looking Statements
ENERGY SOLUTIONS Forward-Looking Statements Se HELIX 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 tha
Slide 3: Presentation Outline
ENERGY SOLUTIONS Presentation Outline Oe IELIX e Executive Summary (pg. 4) e Operational Highlights by Segment (pg. 8) e Key Financial Metrics (pg. 15) @ 2018 Outlook (pg. 18) e@ Non-GAAP Reconciliations (pg. 23) e Questions & Answers ROV Operations on Grand Canyon II 3. Navigating the present, focu
Slide 4: Executive Summary
ENERGY SOLUTIONS Executive Summary HELIX Navigating the present
Slide 5: Executive Summary
Executive Summary (Sin millions, except per share data) As of and for the Three Months Ended ~ As of and for HELIX ENERGY SOLUTIONS the Six Months Ended 6/30/2018 6/30/2017 3/31/2018 6/30/2018 6/30/2017 Revenues $ 205 $ 150 164 § 369 $ 255 Gross profit $ 4B § 18 3° °«§ 56S 7 21% 12% 8% 15% T% Net in
Slide 6: Executive Summary: Operations
ENERGY SOLUTIONS Executive Summary Se HELIX Operations Net income (loss) of $18 million, $0.12 per diluted share, in Q2 2018 compared to $(3) million, $(0.02) per diluted share, in Q1 2018 Q2 2018 Adjusted EBITDA’ of $52 million compared to $28 million in Q1 2018 and $30 million in Q2 2017 Operating
Slide 7: Executive Summary: Balance Sheet
ENERGY SOLUTIONS Executive Summary Se HELIX Balance Sheet e Liquidity’ of approximately $435 million at 6/30/18 e Cash and cash equivalents totaled $288 million at 6/30/18 © $10 million of cash used for scheduled principal debt repayments in Q2 2018 © $21 million of cash used for capital expenditure
Slide 8: Operational Highlights
Operational Highlights Navigating the present
Slide 9: Business Segment Results
Business Segment Results Three Months Ended 6/30/2018 6/30/2017 3/31/2018 Revenues Well Intervention $ 162 $113 S$ 130 Robotics 39 33 a7 Production Facilities 16 15 16 intercompany elimination (12) (14) O) Total 205 $150 $164 Gross profit (loss), % Well Intervention $ 38 24% § 22 1% § Robotics (1) 4
Slide 10: Well Intervention — GOM
Well Intervention —GOM HELIX 1 ENERGY SOLUTIONS Gulf of Mexico Q5000 — 71% utilized in Q2 2018 for BP; performed 15K IRS work; completed scheduled regulatory underwater inspection (approximately 14 days in Q2) and incurred unplanned downtime during quarter Q4000 — 76% utilized in Q2 2018; performed
Slide 11: Well Intervention — North Sea
ENERGY SOLUTIONS Well Intervention — North Sea Se HELIX North Sea e Well Enhancer — 94% utilized in Q2 2018; work performed for four customers, including two successful coil tubing intervention operations e Seawell — 97% utilized in Q2 2018; operational for three customers in diving and intervention
Slide 12: Well Intervention — Brazil
HELIX ENERGY SOLUTIONS Well Intervention — Brazil Brazil Siem Helix 1 — 92% utilized during Q2 2018, having performed successful abandonment through-tubing scopes on two wells; seven days downtime during scheduled shipyard maintenance completed in the quarter Siem Helix 2 — 99% utilized during Q2 20
Slide 13: Robotics
ENERGY SOLUTIONS Robotics Se HELIX 70% chartered vessel fleet utilization (including spot vessels) in Q2 2018; 38% utilization for ROVs, trenchers and ROVDrills Grand Canyon (North Sea) — 70 days of utilization during Q2 2018, including 62 days of trenching Grand Canyon II (GOM) — 39 days of utiliza
Slide 14: Utilization
ENERGY SOLUTIONS lial HELIX Utilization Se HELIX 100% 80% 57% 56% 60% Q2 2018 nae mQ1 2018 9Q2 2017 20% 0% : Well Intervention Vessels ROV and Trencher Support ROVs and Trenchers Vessels + Q4000 + Grand Canyon! + 48 ROVs + Seawell + Grand Canyon II" + 2 ROVDrill units + Well Enhancer * Grand Canyon
Slide 15: Key Financial Metrics
Key Financial Metrics i HELIX
Slide 16: Debt Instrument Profile
ENERGY SOLUTIONS Debt Instrument Profile Se HELIX Total funded debt" of $502 million at end of Debt Instrument Profile at 6/30/18 Q2 2018 Principal Payment Schedule ($ in millions) © $125 million Convertible Senior Notes due 2022 — 4.25% © $125 million Convertible Senior Notes due 2023 — 4.125% a $1
Slide 17: Debt & Liquidity Profile
Debt $1,200 $800 $400 "Net of unamortized Notes due 2032. ENERGY SOLUTIONS & Liquidity Profile Oe ELIX $1,002 (in miions) 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 06/30/2018 mmLT Debt mmNetDebt' —t-Liquidity Liquidity of approximately $435 million at 6/30/18 02 Convertible S
Slide 18: 2018 Outlook
2018 Outlook HELIX ENERGY SOLUTIONS Navigating the present
Slide 19: 2018 Outlook: Forecast
2018 Outlook: Forecast Se HELIX ENERGY SOLUTIONS ($ in millions) 2018 2017 Outlook Actual Revenues ~695-750 $ 581 EBITDA' ~ 135-165 107 Capital Additions ~135 248 Revenue Split: Well Intervention 530-565 $ 406 Robotics 140-160 153 Production Facilities 65 64 Elimination (40) (42) Total ~695-750 §$ 5
Slide 20: 2018 Outlook: Well Intervention
ENERGY SOLUTIONS 2018 Outlook: Well Intervention Se HELIX e Total backlog at June 30, 2018 was approx. $1.4 billion, including $1.0 billion for Well Intervention e Gulf of Mexico e Q4000 — entered third quarter idle and between projects; commenced contract on July 19; identified spot market opportun
Slide 21: 2018 Outlook: Robotics
ENERGY SOLUTIONS 2018 Outlook: Robotics Se HELIX Grand Canyon (North Sea) — contracted trenching projects for the remainder of 2018 Grand Canyon II (GOM) — near full utilization, including a 90-day walk-to-work project, through mid-October Grand Canyon III (North Sea) — contracted trenching projects
Slide 22: 2018 Outlook: Capital Additions & Balance Sheet
2018 Outlook: Capital Additions HELIX & Balance Sheet Am scroiar0%8 2018 Capital Additions are currently forecasted at approximately $135 million, consisting of the following: e Growth Capex - $115! million in growth capital, primarily for newbuilds: 0 $105 million for Q7000, including a $69 million
Slide 23: Non-GAAP Reconciliations
ENERGY SOLUTIONS Non-GAAP Reconciliations Oe HELIX
Slide 24: Non-GAAP Reconciliations
HELIX ENERGY SOLUTIONS Non-GAAP Reconciliations (Sin millions) Three Months Ended Six Months Ended Twelve Months 60/2018 _-6/30/2017_—3/31/2018 +—_~G/90/2018 —_—6IS0/2017_—_—*12/31/2017 Adjusted EBITDA: Net income (loss) $ 68 $ 6 S$ (3) S$ 1% $ (23) $ 30 Adjustments: Income tax ber - 5 : - : (60) Ne
Slide 25: HLX Listed NYSE; Follow Helix
Ge HELIX ENERGY SOLUTIONS HLX Listed NYSE® Follow Helix on Twitter @Helix_ESG Follow Helix on Facebook: www.facebook.com/helixenergysolutionsgroup Connect with Helix on LinkedIn: www.linkedin.com/company/helix-energy-solutions-group 25 Navigating the present, focusing on the future
Helix Energy Solutions Group — Q2 2018 Earnings Presentation on 6ix