Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Raymond James 30th Annual Institutional Investors Conference 2009
23 slides from Helix Energy Solutions's conference presentation, Mar 6, 2009
Slide 1: Raymond James 30th Annual Institutional Investors Conference
Raymond James 30th Annual Institutional Investors Conference March 8 - 11, 2009
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 statements that could be deemed
Slide 3: Helix Profile
PEL ee HELIX ENERGY SOLUTIONS Helix Profile
Slide 4: The Helix Mission
The Helix Mission Helix Energy Solutions Group provides life-of-field services and development solutions to offshore energy producers worldwide. Helix actively reduces finding and development costs through a unique mix of offshore production assets, service methodologies, and highly skilled personne
Slide 5: Helix Defined
Helix Defined World-class global services contractor offering critical offshore field development services / oil and gas production
Slide 6: Helix Business Segments
Helix Business Segments Production Facilities Marco Polo TLP (50%) Independence Hub Semi (20%) Drilling / Completion Q4000 w/ Drilling Upgrade Construction Pipelay Intrepid Express ROV 39 ROVs 2 ROV Drill Units 7 Chartered Vessels 6 Trenchers (200 - 2000hp) Shelf Construction 51% interest in Cal Div
Slide 7: 2009 Fleet Expansion: MV Well Enhancer
Helix's newbuild vessel delivers advanced Rigless Well Intervention capabilities to North Sea operators 2009 Fleet Expansion MV Well Enhancer
Slide 8: 2009 Fleet Expansion: MV Caesar
Caesar is among the world's largest deepwater construction vessels, a "floating factory" capable of laying pipelines up to 42 inches in diameter 2009 Fleet Expansion MV Caesar
Slide 9: 2009 Fleet Expansion: MV Helix Producer I
The Gulf of Mexico's first Floating Production Unit is designed to restore profitability to marginal fields without the use of a production platform 2009 Fleet Expansion MV Helix Producer I
Slide 10: Strategic Focus on Deepwater
Contracting Services Established services presence initially with Intrepid, Express and Q4000 Q4000 drilling upgrade in 2008 increases capabilities Caesar, Well Enhancer and Helix Producer I will significantly expand capacity and EBITDA in future Oil and Gas Expanded focus on deepwater O&G productio
Slide 11: Helix Then and Now
12/31/2008 2/27/2009 2008 estimate and actual 2008 estimate versus 2009 12/31/2007 * Helix stand-alone Helix Then and Now Pre-Storm 6/30/2008 Now Net Debt $ 1.84 B $1.84 B (a) Liquidity* ~ $300 M ~ $300 M (b) EBITDA (c) $940 M $781 M CAPEX* (d) $900 M $300 M Reserves 677 bcfe (e) 665 bcfe Stock Pric
Slide 12: 2009 Outlook
Helix expects to further reduce net debt in 2009, without the benefit of asset sales Capital expenditures of approximately $300 million $180 million relates to completion of three major vessel projects (Well Enhancer, Caesar and Helix Producer I) Most of remaining CAPEX is maintenance 2/3 of 2009 pl
Slide 13: 2009 Outlook (continued)
2009 Outlook (continued) Oil and Gas Production range: 50 - 60 bcfe Oil and gas prices Without hedges: $5.23 /mcfe $46.00 /bbl With hedges: $7.08 /mcfe $64.78 /bbl Garden Banks 506 Field (Noonan) net daily production (estimated) Q1 2009: ~18 mcfe/d Q2 2009: ~60 mcfe/d
Slide 14: Liquidity and Capital Resources
$59 million of additional borrowing capacity under revolving credit facility (as of 2/24/2009) Net debt position expected to decrease by 12/31/2009 Monetization of non-core assets would add additional liquidity and increase net debt reduction Liquidity and Capital Resources Note: All amounts, estima
Slide 15: Liquidity and Capital Resources: Hedging and Monetization
Approximately 73% of total projected 2009 oil and gas production hedged Company is focused on efforts to monetize non-core assets and businesses Oil and gas assets Bass Lite sale December 08 & January 09 ($49 million) EC 316 sale in February 09 ($18 million) Production facilities Cal Dive (approxima
Slide 16: Key Credit Facility Covenants
Company is in compliance as of 12/31/2008, and based on current forecasts expects compliance throughout 2009 Liquidity and Capital Resources Covenant Test Explanation Collateral Coverage Ratio > 1.75 : 1 Basket of collateral to Senior Secured Debt Fixed Charge Coverage Ratio > 2.75 : 1 Consolidated
Slide 17: Credit Facilities, Commitments and Amortization
Credit Facilities, Commitments and Amortization $420 Million Revolving Credit Facility - committed facility through June 2011. No required amortization. $59 million available as of 2/24/09. $419 Million Term Loan B - committed facility through June 2013; $4.3 million amortization annually. $550 Mill
Slide 18: Financial Information
See HELIX ENERGY SOLUTIONS Financial Information
Slide 19: Consistent Top Line Growth
Consistent Top Line Growth 2000 2001 2002 2003 2004 2005 2006 2007 2008 Contracting Services 110 164 240 259 300 523 937 1183 1602 Oil & Gas 70.8 63.4 62.8 137.3 243 276 430 585 546 ($ amounts in millions) $2,148 $1,767 $1,367 $799 $543 $303 $227 $181 $396
Slide 20: Earnings Per Share
Earnings Per Share - - 2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead costs during the year. - - 2007 results exclude the impact of the Cal Dive gain, impairments and other unusual items. - - 2008 results exclude non-cash charges of $964 mi
Slide 21: Significant Cash Generation - EBITDAX
Significant Cash Generation - EBITDAX* - -2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead costs during the year. - -2007 results exclude the impact of the Cal Dive gain, impairments and other unusual items. - -2008 results exclude non-cash i
Slide 22: O&G - 2008 Reserve Report Highlights
O&G - 2008 Reserve Report Highlights Proven Reserve, Undiscounted Future Net Revenues: $2.6 billion Discounted, Undiscounted PV-10: $1.9 billion 665 Bcfe Proved Reserves 273 Bcfe shelf, 379 Bcfe deepwater, 13 North Sea Proved Developed / PUD Ratio - 50/50 Natural Gas / Oil Mix - 70/30 Discoveries an
Slide 23: Helix Energy Solutions
AS HELIX Helix Energy Solutions o Z