Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2010 Earnings Presentation
26 slides from Helix Energy Solutions's earnings presentation, Apr 29, 2010
Slide 1: First Quarter 2010 Conference Call
April 29, 2010 First Quarter 2010 Conference Call Changing the way you succeed. 1
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 Q1 2010 Results (pg. 4) 2010 Outlook (pg. 7) • Operational Highlights by Segment Contracting Services (pg. 10) Oil & Gas (pg. 18) • Key Balance Sheet Metrics (pg. 21) • Non-GAAP Reconciliations (pg. 23) • Questions & Answers Caesar stinger lift sys
Slide 4: Executive Summary
Executive Summary ($ in millions, except per share data) (B) (C) (A) Results of Cal Dive, our former Shelf Contracting business, were consolidated through June 10, 2009, at which time our ownership interest dropped below 50%; thereafter, our remaining interest was accounted for under the equity meth
Slide 5: Executive Summary
Executive Summary First quarter results reflect the following matters on a pre-tax basis: • $5.2 million of “non-cash” impairment charges to reduce carrying values of certain oil and gas properties due to lower natural gas prices in the period, net of gains on property transactions • $17.5 million r
Slide 6: Executive Summary
Executive Summary • Contracting Services o Continued soft activity levels in general o Vessel capacity diverted to internal oil and gas field development projects - as a result, significant intercompany revenue eliminations in Q1 2010 o Completion of Helix Producer I- currently on location in the Ph
Slide 7: 2010 Outlook
2010 Outlook • Contracting Services demand in 2H 2010 expected to rebound o Well intervention activity has already increased and expected to continue in 2010 o Subsea Construction activity expected to pick up around mid-year o Relatively large intercompany utilization to subside in Q2 • Capital expe
Slide 8: 2010 Outlook
2010 Outlook Broad Metrics 2010 Higher End 2010 Lower End 2009 Production Range 55 Bcfe 45 Bcfe 44 Bcfe EBITDA $500 million $400 million $490 million CAPEX $220 million $220 million $328 million Commodity Price 2010 Higher End 2010 Lower End 2009 Deck Oil $80.05 / bbl $77.65 / bbl $67.11 / bbl Hedge
Slide 9: Operations Highlights
Operations Highlights Caesar arriving in Ingleside, Texas, January 31, 2010 Changing the way you succeed.
Slide 10: Contracting Services
Contracting Services ($ in millions, except percentages) (A) Results of Cal Dive, our former Shelf Contracting business, were consolidated through June 10, 2009, at which time our ownership interest dropped below 50%; thereafter, our remaining interest was accounted for under the equity method of ac
Slide 11: Contracting Services
Contracting Services Revenue and Gross Profit by Division ($ in millions) (A) Amounts are before intercompany eliminations. See non-GAAP reconciliation on slides 23-24. Changing the way you succeed. 11
Slide 12: Contracting Services Q1 2010 Utilization
Contracting Services Q1 2010 Utilization Utilization includes internal work Caesar being commissioned, and not included in utilization statistics Excludes Normand Clough which is chartered by CloughHelix Pty Ltd Intrepid Express Caesar Olympic Canyon Seacor Canyon Olympic Triton Northern Canyon* Isl
Slide 13: Contracting Services
Contracting Services Subsea Construction • Significant utilization for internal projects o Intrepid worked on Phoenix subsea infrastructure and Express completed Danny (Helix) pipe-in-pipe (8x12- inch) in the GOM • Express installed jumpers for Petrobras on Chinook & Cascade project in > 7,000 ft. o
Slide 14: Contracting Services
Contracting Services ROV - Robotics • Decent start of the year for our Canyon Offshore - Robotics service line • Island Pioneer active in GOM on deepwater flowline trenching projects for Shell and Helix, • and installation Olympic of jumpers Triton worked for thirdon for Technip parties the Jubilee
Slide 15: Contracting Services
Contracting Services Well Operations North America • Q4000 worked for Shell exclusively in the quarter with the exception of an intervention in the Noonan #3 (internal) well • Healthy backlog for 2010 and bidding activity for 2011 North Sea • Seasonal low utilization; Seawell in regulatory dry- dock
Slide 16: Production Facilities
Production Facilities HPI Marco Polo Independence Hub (MBOE) (BCFE) Q1 2010 Seatrials 2,496 63.1 Q4 2009 N.A. 2,446 57.9 Q1 2009 N.A. 191 81.4 Changing the way you succeed. 16
Slide 17: Marine Capital Projects
Marine Capital Projects Helix Producer I • On location at Green Canyon Block 237 • Recovering buoy with risers and control umbilical into the turret and quick connect / disconnect function planned for testing and acceptance by USGC starting May 4th • Flowlines and export pipelines have been hydrosta
Slide 18: Oil & Gas
Oil & Gas (A) Reflects reversal of $73.5 million previously disputed accrued royalties in first quarter 2009. (B) First quarter 2010 impairments related to deterioration in certain field economics due to lower natural gas prices in the period. Fourth quarter 2009 impairments related to reduction in
Slide 19: Oil & Gas
Oil & Gas Operating Costs ($ in millions, except per Mcfe data) (A) Included accretion expense. (B) Excluded hurricane-related repairs of $2.1, $9.6 and $0.6 million, net of insurance recoveries, for the quarters ended March 31, 2010, March 31, 2009 and December 31, 2009, respectively. (C) Included
Slide 20: Summary of Apr - Dec 2010 Hedging Positions
Summary of Apr - Dec 2010 Hedging Positions Changing the way you succeed. 20
Slide 21: Key Balance Sheet Metrics
Key Balance Sheet Metrics Debt (A) Liquidity (B) of $598 million at 3/31/10 (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 ($212 million), plus available capacity under our revolving credit faci
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations 22 Changing the way you succeed.
Slide 23: Non GAAP Reconciliations
Non GAAP Reconciliations Adjusted EBITDAX ($ in millions) We calculate adjusted EBITDAX as earnings before net interest expense, taxes, depreciation and amortization, and exploration expense. Further, we do not include earnings from our former interest in Cal Dive in any periods presented in our adj
Slide 24: Non GAAP Reconciliations
Non GAAP Reconciliations Revenue and Gross Profit As Reported ($ in millions) Changing the way you succeed. 24
Slide 25: Changing the way you succeed.
Changing the way you succeed.
Slide 26: Slide 26
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