Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Raymond James 41st Annual Institutional Investor Conference (March 2020)
28 slides from Helix Energy Solutions's conference presentation, Mar 2, 2020
Slide 1: Raymond James 41st Annual Institutional Investor Conference
Raymond James 41** Annual Institutional Investor Conference March 3, 2020 €@ Helix 1 ENERGY SOLUTIONS
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 Financial Information at 12/31/2019 Helix Energy Solutions is an international offshore energy services * ~$380M liquidity company that provides specialty services to the offshore energy industry + $0.8 billion backlog with a focus on well intervention and robotics operations.
Slide 4: Well Intervention
WELL INTERVENTION 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 wel
Slide 5: Well Intervention Vessels & Assets
WELL INTERVENTION VESSELS & ASSETS @4000 @5000 @7000 Seawell Well Enhancer Intervention Riser Subsea Intervention é 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 SUBSEA SERVICES ALLIANCE Helix | Schlumberger € Helix Schlumberger ENERGY SOLUTIONS + Vessels and experienced personnel + Well intervention + Intervention systems * Pumping and stimulation + WROV services for well operations + Downhole measurements + Operational and subsea e
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 trenchers, 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 Il ROV Fleet Trenchers ROVDrill
Slide 10: What Sets Helix Apart in Robotics
10 WHAT SETS HELIX APART IN ROBOTICS ee Renewable Construction Specialty Energy 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, i
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: Sustainability: ESG Initiatives
SUSTAINABILITY: ESG INITIATIVES Environmental - Social - Governance Core Business / Client Base + P&A protects the environment + Production enhancement promotes sustainability, avoids drilling + HFRS - an environmental safeguard Sustainable Alternatives + Renewables market focused + Connecting wind
Slide 13: Helix Market Update
HELIX 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
Slide 14: Global Rig Market - Offshore Activity Increasing
200 180 160 140 120 100 + GLOBAL RIG MARKET - OFFHSHORE ACTIVITY INCREASING Contracted floaters per month Average rig count for Majors up 15% from 2018, but negative trend during 2019 $ 14 Rig count Average: 46 rigs per month Average: 40 rigs per month sexglscugiscuglsseoglissegseeag SSSA SS 8d SS 8
Slide 15: Floater Utilization
15 FLOATER UTILIZATION US Gulf of Mexico ‘Source: Rystad Energy RigCube January 2020 United Kingdom Percentage Percentage 100% 100% 5 90% Committed utilization 90% 80% / 80% 70% 70% 60% \ 60% 50% Marketed utilization 50% | 40% wo 30% 7 30% 3 5 5 8 3 a g a = . = 2 3 2 . 7 Brazil West Africa Percentag
Slide 16: 2019 Rig Market
2019 RIG MARKET RYSTAD ENERGY RIG REPORT ~ 2019 IN REVIEW ~ FLOATER MARKET RECENT FLOATER FIXTURES ‘otal contracting volumes fr 2019 shrank 18% from 2018 volumes, while the number Zev! msl corsets snd rose dang tw cave puree The Noe of paves ease sume cerezed opto mped abet tm, indeag tat experason
Slide 17: Key Financial Metrics and Outlook
Key Financial Metrics and Outlook
Slide 18: Five Year Trend ($ in Millions)
18 FIVE YEAR TREND ($ IN MILLIONS) $1,000 $800 $600 Revenue $400 $200 $0 2016 2017 2018 2019 mRevenue -=Net Income (loss) Adjusted EBITDA 1 Adjusted EBITDA is a Non-GAAP financial measure, see non-GAAP reconciliations on slide 26 22020 outlook midpoints 195 2 2020 $200 $150 $100 $50 $0 $50 -$100 Net
Slide 19: Revenue Dispersion ($ in Millions)
$800 $600 $400 $200 $0 $ 19 REVENUE DISPERSION ($ IN MILLIONS) 74% 73% 68% 59% 2016 = Well Intervention Segments 2017 = Robotics 2018 2019 ‘= Production Facilities $800 $600 $400 $200 $0 Geography T% 61% 49% 37% 40% 2016 2017 2018 2019 "United States (Gulf of Mexico) = Brazil = United Kingdom (North
Slide 20: Debt & Liquidity Profile
DEBT & LIQUIDITY PROFILE $800 $600 $400 $200 $0 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 mLong-term Debt" mNet Debt? ~Liquidity* Liquidity? of approximately $380 million at 12/31/19 1 Long-term debt is net of unamortized debt discounts and issuance costs 2 Net debt is calculated as long-term deb
Slide 21: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt’ of $436 million at 12/31/19 * $125 million Convertible Senior Notes due 2022 - 4.25% Principal ih wits) at 12/31/19 in millions + $125 million Convertible Senior Notes due 2023 - 4.125% ane $150 * $33 million Term Loan - LIBOR + 3.25% ots, Ss + Quarterly am
Slide 22: 2020 Outlook: Forecast
22 2020 OUTLOOK: FORECAST! ($ in millions) 2020 2019 Outlook Actuals Revenues $ 820 - 890 $ 752 Adjusted EBITDA”** 180 - 210 180 Free Cash Flow” 110 - 150 31 Capital Additions® ~50 161 Revenue Split: Well Intervention $ 670-712 $ 593 Robotics 140 - 160 172 Production Facilities* 54-62 61 Elimination
Slide 23: Beyond 2020
BEYOND 2020 Expect improvements despite challenging Well Intervention market conditions * Focus on continued improved operating + Operational improvements and cost reductions performance across the fleet + Integration of Q7000 operations * Leverage integrated alliance offerings Market improvements o
Slide 24: Q7000
24 Q7000 + Helix took delivery of the Q7000 on November 8, 2019 + Vessel transited to West Africa during Q4 2019 * The Q7000 commenced its first project in Nigeria in January 2020 + The Q7000 completed production enhancement operations on its first well mid February 2020 + Multiple follow-on opportu
Slide 25: Why Choose Helix?
23 WHY CHOOSE HELIX? Why Helix? Why focus on Well Intervention and Robotics/Trenching Market leader in Well Intervention and Robotics/Trenching Riser-based and riserless interventional capabilities = Geographically diverse scope of operations ; Blue-chip customers : Purpose-built, advanced fleet Int
Slide 26: Financial Results: Non-GAAP Reconciliations and Supplemental Information
FINANCIAL RESULTS Non-GAAP Reconciliations and Supplemental Information
Slide 27: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ in thousands, unaudited) Three Months Ended Year Ended 12/31/19 12/31/18 9/30/19 12/3119 12/31/18 Adjusted EBITDA: Net income (loss) $ 7,934 $ (13,747) $ 31,622 $ 57697 $ 28,598 Adjustments: Income tax provision 4,120 4,174 3,539 7,859 2,400 Net interest expense 2,129 3,0
Slide 28: Thank you
Thank you ENVIRONMENTAL, SOCIAL AND GOVERNANCE We continue to implement and improve Environmental, Social and Governance ("ESG") initiatives and disclosures throughout our business. In conjunction with support from management and our Board of Directors, we incorporate ESG initiatives into our core b