Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q2 2010 Earnings Presentation
25 slides from Helix Energy Solutions's earnings presentation, Jul 29, 2010
Slide 1: Second Quarter 2010 Conference Call
July 29, 2010 Helix Producer I operating at BP Macondo spill site Second Quarter 2010 Conference Call
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” wit
Slide 3: Presentation Outline
Presentation Outline • Executive Summary Summary of Q2 2010 Results (pg. 4) 2010 Outlook (pg. 8) • Operational Highlights by Segment Contracting Services (pg. 11) Oil & Gas (pg. 17) • Key Balance Sheet Metrics (pg. 20) • Non-GAAP Reconciliations (pg. 22) • Questions & Answers Q4000 flaring oil and g
Slide 4: Executive Summary
Executive Summary ($ in millions, except per share data) (A) (B) (C) (A) Results of Cal Dive, our former Shelf Contracting business, were consolidated through June 10, 2009, at which time our ownership interest dropped below 50%; thereafter, our remaining interest was accounted for under the equity
Slide 5: Executive Summary
Executive Summary Second quarter results included the following matters: • Non-cash impairment charges of $159.9 million ($1.00 per diluted share, after taxes) primarily associated with a reduction in carrying values of 15 Gulf of Mexico (“GOM”) shelf oil and gas properties due to a revision in mid-
Slide 6: Executive Summary
Executive Summary • Contracting Services o High utilization of Well Ops vessels; Well Enhancer and Seawell in the North Sea and Q 4000 in the Gulf of Mexico o Helix Producer I placed into service and contracted to BP o Caesar placed into service and commenced GOM pipeline installation • Oil and Gas
Slide 7: Executive Summary
Executive Summary Oil and Gas (continued) • Oil and gas production totaled 11.9 Bcfe for Q2 2010 versus 11.3 Bcfe in Q1 2010 o Avg realized price for oil of $72.59 / bbl ($71.82 / bbl in Q1 2010), inclusive of hedges o Avg realized price for gas of $6.10 / Mcf ($5.75 / Mcf in Q1 2010), inclusive of
Slide 8: 2010 Outlook
2010 Outlook • Contracting Services activity in Q3 2010 expected to stay consistent with Q2 o Q4 activity forecasted to decline due to seasonal and other factors o Well intervention activity particularly robust • Oil and gas revised downward o Deferred start-up of Phoenix production due to HPI / BP
Slide 9: 2010 Outlook
2010 Outlook Broad Metrics 2010 Higher End 2010 Lower End 2009 Production Range 45 Bcfe 40 Bcfe 44 Bcfe EBITDA $450 million $400 million $490 million CAPEX $190 million $190 million $328 million Commodity Price 2010 Higher End 2010 Lower End 2009 Deck Oil $75.43/ bbl $75.51 / bbl $67.11 / bbl Hedged
Slide 10: Operations Highlights
Operations Highlights Changing the way you succeed. 10
Slide 11: Contracting Services
Contracting Services ($ in millions, except percentages) (A) Results of Cal Dive, our former Shelf Contracting business, were consolidated through June 10, 2009, at which time our ownership interest dropped below 50%; thereafter, our remaining interest was accounted for under the equity method of ac
Slide 12: Contracting Services Q2 2010 Utilization
Contracting Services Q2 2010 Utilization Intrepid Express Caesar (placed in service end of May) Olympic Canyon Deep Cygnus Olympic Triton Normand Fortress Island Pioneer Seawell Well Enhancer Q4000 40 ROVs 2 ROV Drill Units 5 Trenchers Changing the way you succeed. 12
Slide 13: Macondo Containment (MC252)
Macondo Containment (MC252) Helix Containment Vessels Changing the way you succeed. 13
Slide 14: Helix vessels at work in MC252
Helix vessels at work in MC252 Helix is well positioned to support GOM Producers Q4000 as command vessel for top kill Q4000 burning oil & operations gas New buoy for HPI under HPI in MC252 processing Macondo construction production Changing the way you succeed. 14
Slide 15: Contracting Services - Subsea Construction
Contracting Services - Subsea Construction Subsea Construction • Caesar commenced installation of 46 mile / 20 inch pipeline in GOM • Express and Intrepid enjoyed high utilization in the quarter • Expect third quarter utilization for subsea construction fleet to be >90% ROV - Robotics • Enjoyed high
Slide 16: Contracting Services - Well Ops
Contracting Services - Well Ops North America • Q4000 worked for Newfield on deepwater well intervention job in April and on BP Macondo containment, top kill and burn-off in May and June • Healthy backlog for remainder of 2010 North Sea • Seawell and Well Enhancer enjoyed 99% utilization in the quar
Slide 17: Oil & Gas
Oil & Gas (A) Reflects hurricane insurance proceeds less related costs. In Q2 2009 proceeds totaled $97.7 million, offset by $7.4 million of hurricane-related repair costs and $51.5 million of additional hurricane-related impairment charges, including an estimated $43.8 million increase to our asset
Slide 18: Oil & Gas
Oil & Gas Operating Costs ($ in millions, except per Mcfe data) (A) Included accretion expense and an incremental $18.8 million in the quarter ended June 30, 2010 for our Bushwood field. (B) Excluded hurricane-related repairs of $1.6, $(90.3) and $2.1 million, net of insurance recoveries, for the qu
Slide 19: Summary of July 2010 - Dec 2011 Hedging Positions
Summary of July 2010 - Dec 2011 Hedging Positions Changing the way you succeed. 19
Slide 20: Key Balance Sheet Metrics
Key Balance Sheet Metrics Debt (A) Liquidity (B) of $647 million at 6/30/10 (A) Includes impact of unamortized debt discount under our Convertible Senior Notes. (B) Liquidity as we define it is equal to cash and cash equivalents ($270 million), plus available capacity under our revolving credit faci
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Changing the way you succeed. 21
Slide 22: Non GAAP Reconciliations
Non GAAP Reconciliations Adjusted EBITDAX ($ in millions) We calculate adjusted EBITDAX as earnings before net interest expense, taxes, depreciation and amortization, and exploration expense. Further, we do not include earnings from our former interest in Cal Dive in any periods presented in our adj
Slide 23: Non GAAP Reconciliations
Non GAAP Reconciliations Revenue and Gross Profit As Reported ($ in millions) Changing the way you succeed. 23
Slide 24: Changing the way you succeed.
Changing the way you succeed.
Slide 25: Slide 25
Helix Energy Solutions Group — Q2 2010 Earnings Presentation on 6ix