Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Corporate Update (March 2021)
28 slides from Helix Energy Solutions's corporate update, Mar 1, 2021
Slide 1: Helix Energy Solutions Company Update
EXHIBIT 99.1 Helix Energy Solutions Company Update March 2021 Ee Helix ENERGY SOLUTIONS
Slide 2: 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 fact, are “forward-looking
Slide 3: Helix Energy Solutions overview
3 • Helix Energy Solutions provides specialty services to the offshore energy industry with a focus on well intervention and robotics operations • Exposure to the full energy value chain: Oil & Gas to Renewables • Oil & Gas services cover the lifecycle of a field and are critical to maximizing produ
Slide 4: Investment highlights
• World's leading provider of both well intervention and subsea robotics technologies to offshore energy industry • Pioneer and established leader in rigless offshore well intervention with track record of 1,490 wells and 25+ years of global experience • Leading provider of well intervention solutio
Slide 5: Why Helix?
Why Helix? • Market leader in Well Intervention and Robotics/Trenching • Riser-based and riserless interventional capabilities • Increasing contribution of offshore renewables market • Geographically diverse scope of operations • Blue-chip customers • Purpose-built, advanced fleet • Integrated offer
Slide 6: Helix Well Ops
6 Helix Well Ops is a leader in rigless offshore well intervention, providing fast, flexible and high-quality well management services Our specialist riserless and riser-based well intervention vessels and subsea systems operate worldwide to provide customer value throughout the well life cycle Low
Slide 7: Well intervention fleet and track record
• Fleet of seven purpose-built well intervention vessels • Both riser-based and riserless intervention systems • 1,470 well intervention operations performed worldwide • 558 well abandonment operations performed worldwide • Geographically diverse scope of operations • Blue-chip customer base • Award
Slide 8: Well intervention vessels and systems
Q4000 (Gulf of Mexico) Dynamically positioned class 3 (“DP3”) semisubmersible purpose-built vessel for well intervention and construction Q5000 (Gulf of Mexico) DP3 semisubmersible purpose-built vessel for well intervention, construction and other subsea projects Q7000 (West Africa) DP3 semisubmersi
Slide 9: Subsea Services Alliance with Schlumberger
9 • Comprehensive subsea well construction, intervention and decommissioning portfolio • Helix provides marine support, operational expertise and project management capabilities • Schlumberger provides intervention and completion running technologies and subsea production systems (through OneSubsea)
Slide 10: Helix Robotics Solutions
Helix Robotics Solutions is a leading supplier of subsea engineering services, operating state of the art remote operated vehicles (ROVs), seabed trenchers, and support/construction vessels Our deep-water ROV track record spans over 20 years, including oil & gas, renewable energy, construction servi
Slide 11: Robotics vessels and equipment
Grand Canyon II (Asia Pacific) A versatile and technically advanced DP3 multi- role construction support vessel Under charter agreement through December 2021 Grand Canyon III (North Sea) A versatile and technically advanced DP3 multi- role construction support vessel Under charter agreement through
Slide 12: Robotics and renewables market
• Helix charters its ROV support vessels, ensuring a modern fleet that can expand and contract based on regional requirements and market conditions • Our subsea expertise in robotics is applicable to the renewables market, which made up over 41%1 of Robotics revenues • A fleet of advanced work-class
Slide 13: Helix Production Facilities
Helix Production Facilities is a non-core segment that includes the Helix Producer 1 floating production unit (FPU), which is operating under a production handling contract until at least June 1, 2023 The segment also includes the Helix Fast Response System and our ownership of the wells and related
Slide 14: Environment, Social and Governance
Environment • We help mitigate and remediate the environmental risks associated with offshore drilling and production operations in practice and in-service • We assist clients with the optimal utilization of wells in order to enhance production from existing wells, meaning fewer new wells need to be
Slide 15: Key Financial Metrics and Outlook
Key Financial Metrics and Outlook a W
Slide 16: COVID-19 and oil price impact
• The ongoing COVID-19 pandemic and its impact on the global economy have resulted in weaker oil prices and caused significant disruption and uncertainty in the oil and gas market • The COVID-19 pandemic has created challenges for our operations, including crew changes due to travel restrictions; to
Slide 17: Long-term debt, net debt and liquidity
$626 $496 $440 $406 $350 $269 $229 $161 $143 $58 $375 $348 $426 $380 $452 $0 $100 $200 $300 $400 $500 $600 $700 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 Long-term Debt Net Debt Liquidity³ 1 Long-term debt is net of unamortized discounts and issuance costs 2 Net debt is calculated as long-term de
Slide 18: Principal payment schedule
$0 $50 $100 $150 $200 $250 $9 Principal Payment Schedule at 12/31/20 ($ in millions) Term Loan CSN 2022 MARAD Q5000 Loan CSN 2023 CSN 2026 $43 $91 $9 $38 $215 1 Excludes unamortized discounts and issuance costs 18 $35 million Convertible Senior Notes due 2022 – 4.25% $30 million Convertible Senior N
Slide 19: Revenue, net income, Adjusted EBITDA and free cash flow
1 Adjusted EBITDA and Free Cash Flow are Non-GAAP financial measure, see non-GAAP reconciliations on slide 27 $488 $581 $740 $752 $734 $(81) $30 $29 $58 $22 ($100) ($80) ($60) ($40) ($20) $0 $20 $40 $60 $80 $100 $0 $200 $400 $600 $800 2016 2017 2018 2019 2020 Revenue Net Income (loss) 19 $90 $107 $1
Slide 20: Revenue by geography and segment
Geography Segments 61% 49% 37% 40% 41% 1% 12% 28% 29% 28% 25% 27% 26% 28% 18% 6% 13% 12% 9% 4% 6% $0 $200 $400 $600 $800 2016 2017 2018 2019 2020 United States Brazil United Kingdom West Africa Other 59% 69% 74% 73% 71% 27% 21% 17% 19% 21% 15% 11% 9% 8% 8% $0 $200 $400 $600 $800 2016 2017 2018 2019
Slide 21: 2021 outlook
The ongoing COVID pandemic and its effect on the offshore oil and gas market, combined with sector uncertainty relating to regulatory changes by the new U.S. administration, suggests a year that will maintain the challenges of 2020. Our customers’ spending levels currently remain low, providing even
Slide 22: Well intervention vessel activity 2021
• Q4000 (Gulf of Mexico) – contracted backlog into March; identified opportunities thereafter on a broad range of work scopes; scheduling gaps expected • Q5000 (Gulf of Mexico) – vessel working for BP through contract end in Q2; identified opportunities thereafter; scheduling gaps expected • IRS ren
Slide 23: Robotics vessel activity 2021
• Grand Canyon II (Asia Pacific) – completed ROV support work for a renewables project in Japan in January; strong utilization expected in Asia Pacific region for the remainder of 2021; vessel charter extended through 2021 with option to renew through 2022. • Grand Canyon III (North Sea) – vessel co
Slide 24: Capex and debt expectations
24 • Maintenance Capex – $15-30 million related to regulatory inspection costs of our systems and equipment and other maintenance capital • Recompletion Capex – $5-10 million of recompletion costs on one of our Droshky wells • Our total funded debt1 level is expected to decrease by $91 million (from
Slide 25: Oil & gas OpEx and offshore wind outlook
1,085 758 2,147 2,413 2,314 0 800 1,600 2,400 3,200 2019A 2020E 2021E 2022E 2023E Oil & Gas • Helix business lines are primarily production focused and activity driven by Upstream OpEx budgets • COVID-19 resulted in numerous projects being delayed, increase in activity expected in 2021 Renewable Ene
Slide 26: Non-GAAP Reconciliations and Supplemental Information
FINANCIAL RESULTS Non-GAAP Reconciliations and Supplemental Information
Slide 27: EBITDA and free cash flow definitions
We define EBITDA as earnings before income taxes, net interest expense, gain or loss on extinguishment of long-term debt, net other income or expense, and depreciation and amortization expense. Non-cash impairment losses on goodwill and other long-lived assets and gains and losses on equity investme
Slide 28: ESG initiatives and disclosures
We continue to implement and improve Environmental, Social and Governance (“ESG”) initiatives and disclosures throughout our business. We understand we have an important role to play as a steward of the people, communities and environments we serve, and we regularly look for ways to emphasize and im
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