Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q2 2012 Earnings Presentation
30 slides from Helix Energy Solutions's earnings presentation, Jul 24, 2012
Slide 1: Second Quarter 2012 Conference Call
Exhibit 99.2 July 24, 2012 Second Quarter 2012 Conference Call
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” wit
Slide 3: Presentation Outline
Presentation Outline • Executive Summary Summary of Q2 2012 Results (pg. 4) • Operational Highlights by Segment Contracting Services (pg. 9) Oil & Gas (pg. 15) • Key Balance Sheet Metrics (pg. 18) • 2012 Outlook (pg. 21) • Non-GAAP Reconciliations (pg. 26) • Questions & Answers 3
Slide 4: Executive Summary
Executive Summary ab ss ~ ZF 1+ et nae
Slide 5: Executive Summary
Executive Summary ($ in millions, except per share data) Quarter Ended Six Months Ended 6/30/2012 6/30/2011 3/31/2012 6/30/2012 6/30/2011 Revenues $ 347 $ 338 $ 408 $ 755 $ 630 Gross Profit: Operating 101 131 162 264 208 29% 39% 40% 35% 33% Oil & Gas Impairments / ARO Increases (7) (23) - (7) (23) E
Slide 6: Executive Summary
Executive Summary • Q2 2012 EPS of $0.42 per diluted share compared with $0.62 per diluted share in Q1 2012 o Impairment charge of $14.6 million ($9.5 million, $0.09 per share after-tax) taken to reduce the book value of the Intrepid to its estimated fair value due to decision to cold stack the vess
Slide 7: Executive Summary
Executive Summary • Oil and Gas (continued) o Avg realized price for oil of $107.51 / Bbl ($109.18 / Bbl in Q1 2012), inclusive of hedges o Avg realized price for gas of $5.76 / Mcfe ($5.82 / Mcfe in Q1 2012), inclusive of hedges § Gas price realizations benefited from sales of natural gas liquids §
Slide 8: Operational Highlights
Operational Highlights 8
Slide 9: Contracting Services
Contracting Services ($ in millions, except percentages) Quarter Ended • Extended dry docks for Q4000 and 6/30/2012 6/30/2011 3/31/2012 Seawell Revenues (A) • Intrepid dockside most of May and entire month of June; preparing for Contracting Services $ 210 $ 171 $ 245 cold Production Facilities 20 21
Slide 10: Earnings (Loss) of Equity Investments
Earnings (Loss) of Equity Investments ($ in millions) Quarter Ended 6/30/2012 6/30/2011 3/31/2012 Independence Hub $ 1 $ 4 $ 3 Deepwater Gateway (Marco Polo) 1 1 1 SapuraCrest Helix JV (Australia) (1) 4 1 (4) Equity in Earnings (Loss) $ 6 $ 6 $ -- (1) Completed our exit from this joint venture in th
Slide 11: Contracting Services - Well Ops
Contracting Services - Well Ops GOM • Q4000 entered dry dock in early March, completed sea trials and returned to service second week in May • Only 45% utilization in Q2 • Substantial backlog through 2013 and extending into 2014 North Sea • Well Enhancer and Seawell fully utilized during Q2 on a var
Slide 12: Contracting Services - Robotics
Contracting Services - Robotics • 92% chartered vessel utilization, 79% trencher utilization and 67% ROV utilization in Q2 • Chartered two spot vessels in addition to utilizing the Deep Cygnus and Island Pioneer on trenching projects in the North Sea • Purchased three work-class ROV systems in Q2, w
Slide 13: Contracting Services - Subsea Construction
Contracting Services - Subsea Construction • Near full utilization for Caesar and Express vessels in Q2 • Express had 93% utilization in Q2 offshore Israel working for Noble Energy • Intrepid was idle for most of Q2 and is currently being cold stacked • Caesar had 100% utilization in Q2 working in M
Slide 14: Contracting Services Utilization
Contracting Services Utilization • • Island Pioneer (1) • Well • 2 ROVDrill Express • Caesar • Deep Cygnus (1) Enhancer • Q4000 Units • 4 Trenchers • Olympic Triton (1) (1) Chartered vessels. • (3) spot vessels (1) 14
Slide 15: Oil & Gas
Oil & Gas Financial Highlights ($ in millions, except production and price data) Quarter Ended 6/30/2012 6/30/2011 3/31/2012 (A) Second quarter 2012 and 2011 decommissioning overruns (ARO Revenue $ 150 $ 172 $ 178 increases) related to our only non-domestic oil and gas Gross Profit - Operating 66 82
Slide 16: Oil & Gas Operating Costs
Oil & Gas Operating Costs ($ in millions, except per Boe data) Quarter Ended 6/30/2012 6/30/2011 3/31/2012 Total $ / Boe Total $ / Boe Total $ / Boe DD&A (A) $ 40 $ 23.54 $ 52 $ 24.82 $ 48 $ 23.67 Operating and Other: (B) Operating Expenses $ 27 $ 16.19 $ 29 $ 13.94 $ 29 $ 14.13 Workover 6 3.65 2 1.
Slide 17: Summary of July 2012 - Dec 2013 Hedging Positions
Summary of July 2012 - Dec 2013 Hedging Positions * *As of July 20, 2012 17
Slide 18: Key Balance Sheet Metrics
Key Balance Sheet Metrics 18
Slide 19: Debt and Liquidity Profile
Debt and Liquidity Profile Liquidity of approximately $1.1 billion at 6/30/2012 (A) Includes impact of unamortized debt discount under our convertible senior notes. (B) Liquidity, as we define it, is equal to cash and cash equivalents ($650 million), plus available capacity under our revolving credi
Slide 20: Debt Maturity Profile
Debt Maturity Profile • Total funded debt of $1.2 billion at end of Q2 2012 consisting of: o $358 million Convertible Senior Notes - 3.25%(A) ($321 million net of unamortized debt discount) o $377 million Term Loans - § LIBOR + 3.25% on $278 million, and § LIBOR + 2.75% on $99 million o $100 million
Slide 21: 2012 Outlook
2012 Outlook 21
Slide 22: 2012 Outlook
2012 Outlook 2012 Outlook 2012 Outlook Broad Metrics 2011 Actual (revised) (original) Oil and Gas 7.0 MMboe 7.5 MMboe 8.7 MMboe Production EBITDAX > $600 million ~$600 million $669 million CAPEX ~$635 million ~$445 million $229 million Commodity Price 2012 Outlook 2012 Outlook 2011 Actual Deck (revi
Slide 23: 2012 Outlook
2012 Outlook • Contracting Services o Strong backlog for the Q4000, Well Enhancer and Seawell through 2013 § Q4000 building backlog into 2014 o Intrepid in process of being cold stacked, thus foregoing its scheduled regulatory dry dock in 2012 o Express working in the North Sea in Q3, returns to the
Slide 24: 2012 Outlook
2012 Outlook • Oil and Gas o Forecasted 2012 overall production of approximately 7.0 MMboe, including Danny II (Bushwood field) expected to commence in Q4 (oil / liquids) § Previously drilled Nancy gas well (Bushwood field) now completed and expected to commence production in Q4 § Wang (Phoenix fiel
Slide 25: 2012 Outlook - Capex
2012 Outlook - Capex • Capital Expenditures o Contracting Services (~$435 million) § Announced new build semi submersible intervention vessel (approximately $130 million of capex in 2012) − Approximately $63 million incurred thru Q2 § Agreed to acquire the Transocean drillship, Discoverer 534 − Dril
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations 26
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in millions) Quarter Ended Six Months Ended 6/30/2012 6/30/2011 3/31/2012 6/30/2012 6/30/2011 Net income applicable to common shareholders $ 45 $ 41 $ 66 $ 110 $ 67 Non-cash impairments 15 12 -- 15 12 Loss (gain) on asset sales -- -- 1 2 (1) Preferred stock dividends -- -
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in millions) Quarter Ended 6/30/2012 6/30/2011 3/31/2012 Revenues Contracting Services $ 210 $ 171 $ 245 Production Facilities 20 21 20 Intercompany elim. - Contracting Services (21) (14) (23) Intercompany elim. - Production Facilities (12) (12) (12) Revenue as Reported $
Slide 29: Follow Helix ESG on Twitter / LinkedIn
Follow Helix ESG on Twitter: www.twitter.com/Helix_ESG Join the discussion on LinkedIn: www.linkedin.com/company/helix
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