Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — CAL Dive International — Q3 2005 Earnings Presentation
20 slides from Helix Energy Solutions's earnings presentation, Nov 2, 2005
Slide 1: Third Quarter 2005 Earnings Conference Call
Owen Kratz - Chief Executive Officer Martin Ferron - President Wade Pursell - Chief Financial Officer Third Quarter 2005 Earnings Conference Call November 2, 2005
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 historica
Slide 3: Presentation Outline
Presentation Outline I. Summary of Results II. Operational Highlights by Segment A. Marine Contracting i. Shelf Contracting ii. Deepwater & Robotics iii. Well Operations B. Production Facilities C. Oil & Gas Production III. Strategic Overview and Outlook IV. Questions & Answers 3
Slide 4: Summary of Results
Summary of Results (all amounts in thousands, except per share amounts and percentages) 4 Third Quarter Third Quarter Second Quarter 2005 2004 2005 Revenues $209,338 $131,987 $166,531 Gross Profit 82,928 45,726 55,966 40% 35% 34% Asset Impairment Charges ^ ^ <3,547> Net Income 42,671 22,794 26,027 2
Slide 5: Return on Capital Invested
2001 2002 2003 2004 2005 2005 12.3 4.9 7.4 13.4 16.6 20.9 5 Return on Capital Invested YTD 9/30 3rd QTR 12.3 4.9 7.4 13.4 16.6 20.9
Slide 6: Debt to Book Capitalization
MARAD Construction and Other Long Term Debt Revolving Credit 6 (Amounts in Millions) 9/30/05 12/31/04 12/31/03 12/31/02 Debt To Book Capitalization 40% 35% 22% 42% Convertible Notes
Slide 7: Marine Contracting (MC)
Marine Contracting (MC) Third Quarter Third Quarter Second Quarter 2005 2004 2005 Revenues $144,398 $78,860 $103,391 Gross Profit 42,052 12,509 17,577 29% 16% 17% 7 (Amounts reflected are before intercompany eliminations and pre-tax charges for marine asset value impairments in Q2/05) Q3/05: Overall
Slide 8: Marine Contracting (MC) cont.
Marine Contracting (MC) cont. Q4/05 and Outlook: We expect Q4 financial performance to improve further over Q3 due to increased demand caused by hurricanes Katrina and Rita. We should also see incremental earnings from several of the assets recently acquired. 8
Slide 9: MC - Shelf
MC - Shelf Third Quarter Third Quarter Second Quarter 2005 2004 2005 67% 52% 55% Utilization Q3/05: Utilization improved both year over year and sequentially due to better demand in the general spot marketplace. Incremental hurricane related demand did not kick-in until late in September. Q4/05 and
Slide 10: MC - Shelf Strategic Acquisitions Update
MC - Shelf Strategic Acquisitions Update We closed the asset purchase agreement with Torch Offshore on 8/31 and expect to close the purchase of the Gulf of Mexico based Shelf assets of Stolt Offshore in early November. The remaining two Shelf assets of Stolt Offshore (DB801 and Kestrel) will be acqu
Slide 11: Shelf Market Consolidation - Much Increased Leverage to Hurricane Clean Up-Work
Shelf Market Consolidation - Much Increased Leverage to Hurricane Clean Up-Work Asset Type Cal Dive Stolt Torch Total Moored Pipelay 0 1 2 3 DP Sat Diving 4 1 0 5 Moored Sat Diving 2 1 0 3 Moored Surface Diving 4 3 2 9 Diving Utility Boats 5 2 1 8 Portable Sat Systems 1 1 0 2 16 9 5 30 11 Acquired A
Slide 12: MC - Deepwater & Robotics
MC - Deepwater & Robotics Third Quarter Third Quarter Second Quarter 2005 2004 2005 Deepwater Contracting 81% 52% 63% Robotics 66% 45% 70% Utilization Q3/05: Deepwater asset utilization increased 18% sequentially, with only the Mystic Viking drydocked during the quarter. The Intrepid had a record qu
Slide 13: MC - Deepwater & Robotics cont.
MC - Deepwater & Robotics cont. Q4/05 and Outlook: All of the assets of the Deepwater Group are fully booked for Q4 and the outlook is good for 2006. Also the Express will commence work in Q4 and will perform light construction and hurricane repair work prior to an upgrade of the pipelay system in Q
Slide 14: MC - Well Operations
MC - Well Operations Third Quarter Third Quarter Second Quarter 2005 2004 2005 94% 73% 55% Utilization Q3/05: The Q4000 had a record quarter on a combination of spot market well intervention and construction work in the GOM, while the Seawell resumed work in the Norwegian sector of the North Sea on
Slide 15: Production Facilities
Production Facilities Third Quarter Third Quarter Second Quarter 2005 2004 2005 Equity in Earnings $3,049 $3,062 $2,708 Production throughput (MBOe) 1,093 1,876 718 15 Q3/05: Production tariff income was negatively impacted by hurricane related shut-ins at the Marco Polo facility. However, equity in
Slide 16: Oil & Gas Production
Oil & Gas Production Third Quarter Third Quarter Second Quarter 2005 2004 2005 Revenues $75,463 $59,999 $67,590 Gross Profit 40,877 33,277 38,389 54% 55% 57% Production (BCFe): Shelf 6.1 7.7 6.7 Gunnison 2.3 2.3 2.2 Average Commodity Prices (net of hedging impact): Oil/Bbl $54.30 $36.79 $45.96 Gas/M
Slide 17: Oil & Gas Production
Oil & Gas Production Q3/05: Shelf: Production of 6.1 Bcfe was 9% less than last quarter due to shut-ins from Hurricanes Katrina (approximately five days) and Rita (last 10 days of the quarter). Realized commodity prices were 18% higher overall than last quarter and 48% higher than those achieved in
Slide 18: Oil and Gas Production Deferrals Resulting from Hurricanes
Oil and Gas Production Deferrals Resulting from Hurricanes Pre-Hurricanes Actual/Expectation Post-Hurricanes Actual/Expectation Production Deferral ERT Production - Bcfe ERT Production - Bcfe 1Q 9.0 9.0 0 2Q 8.9 8.9 0 3Q 10.0 8.4 <1.6> 4Q 11.6 6.7 - 7.7 <3.9 - 4.9> 39.5 33.0 - 34.0 <5.5 - 6.5> 18
Slide 19: Hedging: As of September 30, 2005
Hedging: As of September 30, 2005 Production Period Instrument Type Average Monthly Volumes Weighted Average Price Crude Oil: October - December 2005 Collars 120 MBbl $41.08 - $60.81 January - December 2006 Collars 75 MBbl $40.00 - $65.80 January - December 2007 Collars 50 MBbl $40.00 - $62.15 Natur
Slide 20: 2005 Objectives
2005 Objectives Marine Contracting Revenues: $300 - 330 million Margins: 13% - 15% Oil and Gas 40 - 45 BCFe of production PUD acquisition Mature property acquisition Production Facilities Equity earnings: $22 - 27 million Start up of production from K2/K2N Identify and progress next opportunity Fina
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