Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q4 2012 Earnings Presentation
26 slides from Helix Energy Solutions's earnings presentation, Feb 21, 2013
Slide 1: Fourth Quarter 2012 Conference Call
* Fourth Quarter 2012 Conference Call February 21, 2013
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” w
Slide 3: Presentation Outline
* Presentation Outline Executive Summary Summary of Q4 2012 Results (pg. 4) Operational Highlights by Segment Contracting Services (pg. 9) Oil & Gas (pg. 14) Key Balance Sheet Metrics (pg. 16) 2013 Outlook (pg. 19) Non-GAAP Reconciliations (pg. 23) Questions & Answers Helix CEO Owen Kratz initiating
Slide 4: Executive Summary
* Executive Summary *
Slide 5: Executive Summary
* Executive Summary ($ in millions, except per share data) Related to our non US (offshore UK) oil and gas property, Camelot, that was substantially abandoned as of December 31, 2012. See non-GAAP reconciliation on slide 24.
Slide 6: Executive Summary
* Executive Summary Q4 2012 earnings (loss) per share of $(1.64) per diluted share compared with $0.14 per diluted share in Q3 2012 Impairment charge of $157.8 million ($102.5 million, $0.98 per share after-tax) related to the pending sale of the Caesar and related mobile pipelay equipment Impairmen
Slide 7: Executive Summary
* Executive Summary Oil and Gas Fourth quarter average production rate of 15.6 thousand barrels of oil equivalent per day (Mboe/d) – 70% oil Oil and gas production totaled 1.4 MMboe in Q4 2012 versus 1.5 MMboe in Q3 2012 Avg realized price for oil of $99.32 / Bbl ($98.57 / Bbl in Q3 2012), inclusive
Slide 8: Operational Highlights
* Operational Highlights *
Slide 9: Contracting Services
* ($ in millions, except percentages) See non-GAAP reconciliation on slide 25. Amounts are prior to intercompany eliminations. Before gross profit impact of asset impairment charges: $157.8 million for the Caesar in Q4, $4.4 million for well intervention assets at our former operations in Australia
Slide 10: Contracting Services – Well Ops
* GOM Q4000 100% utilized during Q4 Full backlog thru 2014, plus pending commitments beyond Helix 534 expected to be placed in service in Q3 with full backlog the remainder of 2013 Full backlog in 2014 Backlog in 2015 and 2016 North Sea Seawell and Well Enhancer 91% utilized during Q4 on a variety o
Slide 11: Contracting Services – Robotics
* 87% chartered vessel utilization, 62% utilization for ROVs, trenchers, ROVDrills Two work class ROVs placed into service in Q4 Grand Canyon commenced work in both ROV and trenching services in Q4 Commenced 150 day windfarm contract utilizing Grand Canyon and T1200 for London Array project in Decem
Slide 12: Contracting Services – Subsea Construction
* Express had 57% utilization in Q4 working in the GOM Caesar had 100% utilization in Q4 working in Mexico’s Bay of Campeche on accommodations project which continues thru July 2013 The reeled pipelay equipment is rented out to a third party thru Q1 2013 Sales of the pipelay assets expected to occur
Slide 13: Contracting Services Utilization
* Intrepid (1) Express Caesar Olympic Canyon (2) Deep Cygnus (2) Olympic Triton (2) Grand Canyon (2) (6) spot vessels (2) Seawell Well Enhancer Q4000 49 ROVs 2 ROVDrill Units 4 Trenchers (1) Intrepid was cold stacked in Q3 2012 until it was sold in September. Vessel excluded from Q3 & Q4 2012 utiliz
Slide 14: Oil & Gas Financial Highlights
* Financial Highlights ($ in millions, except production and price data) Fourth quarter 2012 impairment charge of $138.6 million taken to reduce the book value of the domestic Oil and Gas business to its estimated fair value as a result of its sale in February 2013. Fourth quarter 2011 impairments p
Slide 15: Oil & Gas Operating Costs
* Oil & Gas Included accretion expense. Excluded exploration expense and net hurricane-related costs (reimbursements). Included $2.0, $2.0, and $8.4 million related to a weather derivative contract (catastrophic bond) for the quarters ended December 31, 2012, December 31, 2011, and September 30,2012
Slide 16: Key Balance Sheet Metrics
* Key Balance Sheet Metrics *
Slide 17: Total funded debt of $1.1 billion at end of Q4 2012
* Total funded debt of $1.1 billion at end of Q4 2012 consisting of: $204 million Convertible Senior Notes – 3.25% (A) ($172 million net of unamortized debt discount) $367 million Term Loan (B) - LIBOR + 3.50% on $271 million, and LIBOR + 2.75% on $96 million $100 million Revolver borrowings (C) – L
Slide 18: Debt and Liquidity Profile
* Liquidity of approximately $925 million at 12/31/2012 ($ amounts in millions) Includes impact of unamortized debt discount under our convertible senior notes. Liquidity, as we define it, is equal to cash and cash equivalents ($437 million), plus available capacity under our revolving credit facili
Slide 19: 2013 Outlook
* 2013 Outlook *
Slide 20: 2013 Outlook
* 2013 Outlook ($ in millions) 2013 Outlook and 2012 Actual includes $27 million and $367 million from Oil and Gas discontinued operations. 2013 Outlook excluding Subsea Construction and Oil and Gas, plus expected annualized contribution from Helix 534 and charted Skandi Constructor.
Slide 21: 2013 Outlook
* 2013 Outlook Contracting Services Backlog totaling $800 million at the end of 2012 (~$530 million expected to be completed in 2013) Strong utilization expected for the well intervention fleet Q4000 full backlog thru 2014, plus pending commitments beyond Helix 534 expected in service in Q3, full ba
Slide 22: 2013 Outlook - Capex
* 2013 Outlook - Capex Capital Expenditures Contracting Services (~$350 million) Q5000 new build (approximately $140 million of capex in 2013) On schedule for delivery in 2015 Newly acquired Helix 534 continues conversion in Singapore into a well intervention vessel Estimated $180 million for vessel
Slide 23: Non-GAAP Reconciliations
* Non-GAAP Reconciliations *
Slide 24: Non-GAAP Reconciliations
* Non-GAAP Reconciliations We calculate Adjusted EBITDAX as earnings before net interest expense, taxes, depreciation and amortization and exploration expense. These non-GAAP measures are useful to investors and other internal and external users of our financial statements in evaluating our operatin
Slide 25: Non-GAAP Reconciliations
* Non-GAAP Reconciliations ($ in millions)
Slide 26: Follow Helix
* * Follow Helix ESG on Twitter: www.twitter.com/Helix_ESG Join the discussion on LinkedIn: www.linkedin.com/company/helix
Helix Energy Solutions Group — Q4 2012 Earnings Presentation on 6ix