Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Corporate Update (September 2024)
29 slides from Helix Energy Solutions's corporate update, Sep 3, 2024
Slide 1: Company Update September 2024
Company Update September 2024 EXHIBIT 99.1
Slide 2: Forward-looking statements
2 2 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 fact, are "forward-loo
Slide 3: About Helix – An Energy Transition Company
3 3 ABOUT HELIX Helix – An Energy Transition Maximizing Existing Reserves Reservoir Management Production Enhancement Tree Change Out Wireline, Slickline & Coiled Tubing Scale Squeeze & Stimulation DHSV Lockout Inspection, Repair, Maintenance Decommissioning Cement Remediation Pipeline Abandonment R
Slide 4: Company Snapshot
4 $270M - $330M 2024 EBITDA1,4 Company Snapshot 1 EBITDA, Net Debt and Free Cash Flow are non-GAAP financial measures; see non-GAAP reconciliations below 2 Pro forma includes backlog as of June 30, 2024 plus contracts with Petrobras and Shell signed in August 2024 3 Liquidity is calculated as the su
Slide 5: Business Segment Overview
5 Business Segment Overview ABOUT US Well Intervention Robotics Shallow Water Abandonment2 Production Facilities Key Services and Assets Tailwinds Revenue and Gross Profit Margin% by Segment ($MM) Major Customers 1 Helix differentiates itself through a pure-play offshore business model anchored by s
Slide 6: Well Intervention
6 Well Intervention Q4000 (Gulf of Mexico / West Africa) Dynamically positioned class 3 (“DP3”) purpose-built semisubmersible well intervention vessel Q5000 (Gulf of Mexico) DP3 purpose-built semisubmersible well intervention vessel Q7000 (West Africa / Asia Pacific / Brazil) DP3 purpose-built semis
Slide 7: Robotics
7 7 • We serve both the Renewable Energy and Oil and Gas markets • Global leader in trenching windfarm subsea cables • A fleet of advanced subsea trenchers, work-class ROVs and chartered support vessels • Globally diversified operations and broad customer base Robotics ROV Fleet (39 units) Highly ma
Slide 8: Shallow Water Abandonment
8 8 • The leading provider of decommissioning services in the GOM Shelf • Only company able to offer integrated full-field decommissioning: • Well P&A, • Sub-sea architecture removal, and • Facility decommissioning and structure removal • Fleet of liftboats, P&A and Coiled Tubing systems, OSVs, Divi
Slide 9: Production Facilities
9 • Helix Producer 1 floating production unit (FPU) • Helix Fast Response System (HFRS); one of only two providers in the GOM • Our ownership of the Droshky and Thunder Hawk wells and related infrastructure in the Gulf of Mexico Helix Production Facilities OPERATIONS
Slide 10: 2024 Outlook
10 10 2024 OUTLOOK Forecast ($ in millions) 2024 2023 Outlook Actual Revenues $ 1,250 - 1,400 1,290 $ Adjusted EBITDA1 270 - 330 273 Free Cash Flow1,2 90 - 125 134 Capital Additions3 60 - 80 90 Revenue Split: Well Intervention $ 760 - 830 733 $ Robotics 270 - 315 258 Shallow Water Abandonment 195 -
Slide 11: Energy Transition business strategy momentum
11 11 We continue momentum on our Energy Transition business strategy: Production Maximization, Decommissioning and Renewables • Increasing cash generation expected in this current environment • Annual maintenance capex anticipated to average approximately $70 – $80 million for foreseeable future We
Slide 12: Key Financial Metrics: Debt and Liquidity Profile
12 12 Total funded debt† of $328 million at 6/30/24 • $300 million Senior Notes due 2029 – 9.75% • $28 million MARAD Debt – 4.93% • Semi-annual amortization payments through maturity in Q1 2027 KEY FINANCIAL METRICS Debt Instrument Profile † Excludes $10 million of remaining unamortized debt discoun
Slide 13: Capital Allocation
13 Capital Allocation Growth Capital • Reinvest for our growth Share Repurchases • $200M share repurchase plan approved in 2023 • $22M share repurchases through Q2 2024 under plan Maintenance Capital • Regulatory certification of vessels and systems Balance Sheet • Simplified balance sheet following
Slide 14: Helix Earnings and Cash Generation Potential
14 14 Helix Earnings and Cash Generation Potential $300 $375 $413 $451 $90 $223 $261 $275,000 $299 $331,000 $348,000 $364,000 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 2024 Forecast - midpoint Well Intervention Re-contractin
Slide 15: 2023 Corporate Sustainability Report
2023 Corporate Sustainability Report Sustainability continues to drive our business strategy and decision-making with a renewed focus on our commitment to energy security and participation in the world’s energy transition. Through maximizing existing reserves, decommissioning, and renewable energy s
Slide 16: Non-GAAP Reconciliations and Supplemental Information
Non-GAAP Reconciliations and Supplemental Information
Slide 17: Non-GAAP Reconciliations
17 17 Non-GAAP Reconciliations ($ in thousands, unaudited) 12/31/22 12/31/23 6/30/24 Reconciliation from Net Income (Loss) to Adjusted EBITDA: Net income (loss) (87,784) $ (10,838) $ 6,002 $ Adjustments: Income tax provision (benefit) 12,603 18,352 13,027 Net interest expense 18,950 17,338 11,368 Ot
Slide 18: Non-GAAP Definitions
18 18 NON-GAAP RECONCILIATIONS Non-GAAP Definitions Non-GAAP Financial Measures We define EBITDA as earnings before income taxes, net interest expense, net other income or expense, and depreciation and amortization expense. Non-cash impairment losses on goodwill and other long-lived assets are also
Slide 19: Operational Highlights: Well Intervention Utilization
19 19 OPERATIONAL HIGHLIGHTS Well Intervention Utilization Supplemental Schedule
Slide 20: Operational Highlights: Robotics Utilization
20 20 OPERATIONAL HIGHLIGHTS Robotics Utilization 370 376 332 295 435 506 463 333 528 81 176 160 156 252 276 271 85 232 53% 66% 58% 56% 58% 67% 68% 58% 76% - 100 200 300 400 500 600 0% 10% 20% 30% 40% 50% 60% 70% 80% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Vessel Days Integrated Vessel
Slide 21: Operational Highlights: Shallow Water Abandonment Utilization
21 21 OPERATIONAL HIGHLIGHTS Shallow Water Abandonment Utilization 1 Systems utilization includes six CT systems; 14 P&A systems during Q3 2022, 15 P&A systems from Q4 2022 to August 2023 and 20 P&A systems beginning September 2023 2 Liftboat utilization includes ten liftboats during Q3-Q4 2022 and
Slide 22: Revenue, Earnings and Cash Flow Trend
22 22 Revenue, Earnings and Cash Flow Trend1 Revenue Net income (loss) 1 Helix Alliance revenue has been included beginning July 1, 2022 (date of acquisition) 2 Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures; see non-GAAP reconciliations above 3 Net loss in 2023 includes losses o
Slide 23: Company Highlights By Geography and Segment
23 23 Company Highlights By Geography By Segment 1 1 1 Revenue percentages net of intercompany eliminations 2 Helix Alliance revenue has been included in Shallow Water Abandonment segment and U.S. region beginning July 1, 2022 (date of acquisition) 3 2024 amounts based on mid-point of current foreca
Slide 24: Energy Solutions
ENERGY SOLUTIONS 4 mR poet it oo DB yy w@
Slide 25: Macro Outlook Supports Upside Potential
25 25 Oil & Gas • Helix business lines are primarily production focused and activity driven by Upstream OpEx budgets • Current high commodity pricing environment favorable for offshore spending on both enhancement and decommissioning activities Renewable Energy • Robotics segment continues to expand
Slide 26: Key Performance Indicators in the Energy Service Market
26 26 KEY PERFORMANCE INDICATORS In The Energy Service Market Rystad Energy | Oilfield Service Contract August 9, 2024 Appendix
Slide 27: Decommissioning Market: North America Outlook 2024-2028
27 27 DECOMMISSIONING MARKET North America: Market Outlook 2024-2028 Source: Rystad Energy ServiceCube, SubseaCube, WellCube as of August 2024 Appendix Decommissioning Commitments by Region $8.3 billion 2024-2028 North America Rest of the world Decommissioning Expenditures by Facility Group Fixed Fl
Slide 28: Decommissioning Market: Global Outlook 2024-2028
28 28 DECOMMISSIONING MARKET Global: Market Outlook 2024-2028 Source: Rystad Energy ServiceCube as of August 2024 Appendix Global: Summary Global market summary Decom. commitments by region Decom. commitments by topside weight Global overview Decommissioning commitments, 2024-2028 $50.9 billion Deco
Slide 29: Offshore Wind Renewables Market
29 29 OFFSHORE WIND RENEWABLES MARKET Cumulative Offshore Wind Cable Installations by Continent, 2020-2030 Appendix Source: Rystad Energy OffshoreWindCube; Rystad Energy research and analysis– August 2024 16.5 26.0 29.9 33.8 37.9 46.1 53.8 61.7 71.5 83.7 97.6 0 10 20 30 40 50 60 70 80 90 100 2020 20
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