Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q4 2008 Earnings Presentation
25 slides from Helix Energy Solutions's earnings presentation, Feb 24, 2009
Slide 1: Fourth Quarter 2008 Earnings Conference Call
Fourth Quarter 2008 Earnings Conference Call February 25, 2009
Slide 2: 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 statements that could be deemed "forward-looking statements
Slide 3: Presentation Outline
Executive Summary Summary of Q4 / 2008 Results (pg. 4) 2009 Outlook (pg. 7) Liquidity and Capital Resources (pg. 9) Operational Highlights by Segment Contracting Services (pg. 14) Oil & Gas (pg. 19) Non-GAAP Reconciliations Questions & Answers Presentation Outline T600 trenching ROV on board Norther
Slide 4: Highlights
Highlights ($ in millions, except per share data) Executive Summary Includes $840 million of goodwill write-offs and property impairments, net of tax See non-GAAP reconciliation on slides 23-24
Slide 5: Fourth Quarter 2008 Highlights
Fourth Quarter 2008 Highlights Non-cash pre-tax charges recorded in Q4 Goodwill and other intangible write offs of $715 million Oil and gas impairments of $193 million Suspended well write-offs of $19 million Strong quarterly revenues for Contracting Services business Continued strong demand and uti
Slide 6: Fourth Quarter 2008 Highlights (continued)
Fourth Quarter 2008 Highlights (continued) 2008 Reserve Report Year end proved reserves of 665 Bcfe Replacement rate @ 175% of production Major gas discovery in Bushwood offsets reserve decreases due to price declines, property sales, etc. PV-10 value of reserves approximately $1.9 billion Executive
Slide 7: 2009 Outlook
Helix expects to further reduce net debt in 2009, without the benefit of asset sales Capital expenditures of approximately $300 million $180 million relates to completion of three major vessel projects (Well Enhancer, Caesar and Helix Producer I) Most of remaining CAPEX is maintenance 2/3 of 2009 pl
Slide 8: 2009 Outlook (continued)
2009 Outlook (continued) Oil and Gas Production range: 50 - 60 bcfe Oil and gas prices Without hedges: $5.23 /mcfe $46.00 /bbl With hedges: $7.08 /mcfe $64.78 /bbl Garden Banks 506 Field (Noonan) net daily production (estimated) Q1 2009: 18 mcfe/d Q2 2009: 60 mcfe/d
Slide 9: Liquidity and Capital Resources
$59 million of additional borrowing capacity under revolving credit facility (as of 2/24/2009) Net debt position expected to decrease by 12/31/2009 Monetization of non-core assets would add additional liquidity and increase net debt reduction Liquidity and Capital Resources* *All amounts, estimates
Slide 10: Liquidity and Capital Resources
Approximately 73% of total projected 2009 oil and gas production hedged (see detailed schedule on page 22 for current hedge positions) Company is focused on efforts to monetize non-core assets and businesses Oil and gas assets Bass Lite sale December 08 & January 09 ($49 million) Production faciliti
Slide 11: Key Credit Facility Covenants
Company is in compliance as of 12/31/2008, and based on current forecasts expects compliance throughout 2009 Liquidity and Capital Resources Covenant Test Explanation Collateral Coverage Ratio > 1.75 : 1 Basket of collateral to Senior Secured Debt Fixed Charge Coverage Ratio > 2.75 : 1 Consolidated
Slide 12: Credit Facilities, Commitments and Amortization
Credit Facilities, Commitments and Amortization $420 Million Revolving Credit Facility - committed facility through June 2011. No required amortization. $59 million available as of 2/24/09. $419 Million Term Loan B - committed facility through June 2013; $4.3 million amortization annually. $550 Mill
Slide 13: Operational Highlights by Segment
Newbuild intervention vessel Well Enhancer enters North Sea service in Q2 2009. Operational Highlights by Segment
Slide 14: Helix Contracting Services
Helix Contracting Services Helix installs 200,000 feet of heavy-wall pipe and associated subsea systems for ENI Longhorn project in the Gulf of Mexico Pipelay vessel Intrepid logs 100% utilization for Q4 in the Gulf of Mexico Express and REM Forza continue Reliance Project tasks offshore India Seawe
Slide 15: Helix Contracting Services
($ in millions, except percentages) Helix Contracting Services
Slide 16: Revenue and Gross Profit by Division
Revenue and Gross Profit by Division ($ in millions) Helix Contracting Services
Slide 17: Helix Contracting Services vessel utilization
ial ELIX Helix Contracting Services ‘ Quarter Ended December 31 Vessel Utilization 2008 2007 Contracting Services ‘Subsea Construction Vessels (A) 86% 74% 98% Well Operations 93% 44% 100% Robotics 80% 68% 76% Shelf Contracting 78% 52% 78% Production Facilities Throughput Marco Polo (MBOE) 447 3,554
Slide 18: Assets Under Construction
Assets Under Construction Well Enhancer Enters service Q2 2009 Helix Contracting Services Sea trials completed 1/2009 Final installation of well intervention spread underway To operate in North Sea Caesar Enters service 2H 2009 Helix Producer I Enters service Q1 2010 Conversion in progress in COSCO
Slide 19: Helix Oil & Gas
Helix Oil & Gas Danny / Noonan subsea field schematic, Gulf of Mexico
Slide 20: Financial Highlights
Financial Highlights Noonan production recommenced in January 2009, and peak production of 60 mmcfe, net to Helix, anticipated for later in Q1 2009. Helix Oil & Gas Includes UK production of 0.1 Bcfe in Q3 2008. Including hedge impact.
Slide 21: Operating Costs
Operating Costs ($ in millions, except per Mcfe data) Helix Oil & Gas
Slide 22: Summary of Feb-Dec 2009 Hedging Positions
Summary of Feb-Dec 2009 Hedging Positions
Slide 23: Adjusted EBITDAX
Adjusted EBITDAX ($ in millions) Non GAAP Reconciliations
Slide 24: Revenue and Gross Profit As Reported
Revenue and Gross Profit As Reported ($ in millions) Non GAAP Reconciliations
Slide 25: Helix Energy Solutions
Helix Energy Solutions
Helix Energy Solutions Group — Q4 2008 Earnings Presentation on 6ix