Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Corporate Update (November 2019)
25 slides from Helix Energy Solutions's corporate update, Nov 12, 2019
Slide 1: Helix Energy Solutions Company Update
Helix Energy Solutions Company Update November 2019 ‘ € Helix ‘
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: About Helix
ABOUT HELIX Who We Are Helix Energy Solutions is an international offshore energy services company that provides specialty services to the offshore energy industry with a focus on well intervention and robotics operations. Global operations + Gulf of Mexico + North Sea + Brazil + West Africa + Asia
Slide 4: Well Intervention
WELL INTERVENTION Helix Well Intervention 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 throughou
Slide 5: Well Intervention Vessels & Assets
WELL INTERVENTION VESSELS & ASSETS Seawell Well Enhancer Intervention Riser Subsea Intervention Systems (IRS) Lubricators (SIL)
Slide 6: What Sets Helix Apart in Well Intervention
WHAT SETS HELIX APART IN WELL INTERVENTION * Fleet of seven purpose-built well intervention vessels + Both riser-based and riserless intervention systems + Approximately 1,400 well intervention operations performed worldwide * Over 500 well abandonment operations performed worldwide * Geographically
Slide 7: Subsea Services Alliance
SUBSEA SERVICES ALLIANCE Helix = €& Helix ENERGY SOLUTIONS Vessels and experienced personnel Intervention systems WROV services for well operations Operational and subsea expertise Project management Integrated crews Schlumberger Schlumberger + Well intervention + Pumping and stimulation + Downhole
Slide 8: Robotics
ROBOTICS Helix Robotics Solutions is a leading supplier of Subsea Engineering Services, operating state of the art Remote Operated Vehicles (ROVs), Seabed Trenching, and Support/Construction Vessels. Our Deep- Water ROV track record spans 20 years, including Oil & Gas, Renewable Energy, Construction
Slide 9: Robotics Vessels & Assets
ROBOTICS VESSELS & ASSETS Grand Canyon’ Grand Canyon II Grand Canyon Ill Ross Candies ROV Fleet Trenchers ROVDrill Vessel charter expires in Q4 2019 after which vessel will be available on a spot basis
Slide 10: What Sets Helix Apart in Robotics
10 WHAT SETS HELIX APART IN ROBOTICS Renewable Energy Construction Specialty Services Services + Helix charters its ROV support vessels, ensuring a modern fleet that can expand and contract based on regional requirements and market conditions * A fleet of advanced work-class ROVs and trenchers, incl
Slide 11: Production Facilities
PRODUCTION FACILITIES 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
Slide 12: Market Update
MARKET UPDATE Well Intervention * Gulf of Mexico + Rig utilization and rates increasing, although slowly * Increased tendering volume * Long-term rig commitments rolling off + North Sea * Increasing activity levels with marginal rate improvements * Brazil + Floater utilization expected to grow stead
Slide 13: Key Financial Metrics and Outlook
Key Financial Metrics and Outlook
Slide 14: Four Year Trend ($ in millions)
FOUR YEAR TREND ($ IN MILLIONS) $900 $700 Revenue $500 $300 $100 14 $200 $178 $150 $745 $100 $50 $0 -$50 7 -$100 2016 2017 2018 2019 mRevenue Net Income (loss) -#Adjusted EBITDA" ‘ Adjusted EBITDA is a Non-GAAP financial measure, see non-GAAP reconciliations on slide 24 22019 outlook midpoint Net In
Slide 15: Revenue Dispersion ($ in millions)
REVENUE DISPERSION ($ IN MILLIONS) $800 $600 $400 $200 $0 = Well Intervention 2016 = Robotics Segments 2017 2018 = Production Facilities $800 $600 $400 $200 $0 Geography 13% 61% 2016 = United States (Gulf of Mexico) 12% 9% 2017 2018 = Brazil "= United Kingdom (North Sea) Other
Slide 16: Debt & Liquidity Profile ($ in millions)
DEBT & LIQUIDITY PROFILE ($ IN MILLIONS) $800 * Strong, de-levered balance sheet 2000 * $286 million cash as of September 30, 2019 + Liquidity? of approximately $400 $459 million as of September 30, 2019 * Cash flow from operations $200 $90 million YTD $127 September 30, 2019 i + Free cash flow $47
Slide 17: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt' of $446 million at 9/30/19 + $125 million Convertible Senior Notes due 2022 — 4.25% TINEInS! Hay enk seed ease (in millions) + $125 million Convertible Senior Notes due 2023 — 4.125% a: $150 $133 $133 * $34 million Term Loan — LIBOR + 3.25% * Quarterly amor
Slide 18: 2019 Outlook: Forecast
2019 OUTLOOK: FORECAST 2019 2018 Outlook Actuals Revenues $ 730 - 760 $ 740 Adjusted EBITDA"? 172 - 184 162 Capital Additions® ~ 150 135 Revenue Split: Well Intervention $ 575 - 595 $ 561 Robotics 165-175 159 Production Facilities? ~60 64 Eliminations ~ (70) (44) Total $ 730 - 760 $ 740 Key remainin
Slide 19: Beyond 2019
19 BEYOND 2019 * Expect improvements despite challenging market conditions * Several long term well intervention contracts * Operational improvements and cost reductions + Market improvements offer additional upside potential * Cash Flow improvements + Improved operating cash flows and positive free
Slide 20: Q7000 Delivered November
20 Q7000 DELIVERED NOVEMBER 20 19 * Helix took delivery of the Q7000 from Sembcorp Marine on November 8, 2019 + Vessel is in transit to West Africa through end of year * The Q7000 is expected to commence its first project in January 2020 * The Q7000 can work across the globe and we are exploring mul
Slide 21: Why Helix?
a Why Helix? Market leader in Well Intervention and Robotics/Trenching Geographically diverse scope of operations Blue-chip customers Purpose-built, advanced fleet Integrated offerings Increasing contribution of offshore renewables market Why focus on Well Intervention and Robotics/Trenching Low F&D
Slide 22: Non-GAAP Reconciliations and Supplemental Information
Non- GAAP Reconciliations and Supplemental Information | Hy
Slide 23: Financial Results
FINANCIAL RESULTS ($in millions, unaudited) Three Months Ended Nine Months Ended 9/30/19 9/30/18 6/30/19 9/30/19 9/30/18 Revenues Well Intervention 170 155 $ 159 451 $ 446 Robotics 52 54 45 136 120 Production Facilities 14 16 16 45 48 Intercompany Eliminations (23) (12) (18) (51) (33) Total 213 213
Slide 24: Non-GAAP Reconciliations
NON- GAAP RECONCILIATIONS Twevie Months ($ in thousands, unaudited) Three Months Ended Nine Months Ended eadéd 9/30/19 9/30/18 6/30/19 9/30/19 9/30/18 12/31/18 Adjusted EBITDA: Net income $ 31622 $ 27,121 $ 16823 $ 49763 $§ 42345 $ 28,598 Adjustments: Income tax provision 3,539 841 2,876 6,739 1,226
Slide 25: Thank you
Thank you e090 € Helix 1 ENERGY SOLUTIONS
Helix Energy Solutions Group — Corporate Update (November 2019) on 6ix