Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Corporate Update (March 2024)
29 slides from Helix Energy Solutions's corporate update, Mar 18, 2024
Slide 1: Helix Energy Solutions Company Update March 2024
Helix Energy Solutions Company Update March 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: Our purpose is to enable energy transition
At Helix, our purpose is to enable energy transition through: Maximizing Existing Reserves Enhancing remaining production from existing oil and gas wells Lowering Decommissioning Costs Restoring the seabed in an environmentally safe manner Offshore Renewables & Wind Farms Transitioning our energy ec
Slide 4: Helix At A Glance
4 4 ABOUT US 2024 Helix At A Glance We are an international offshore energy services company that provides specialty services to the offshore energy industry, with a focus on well intervention, robotics and full-field decommissioning operations. Our services are key in supporting a Global energy tra
Slide 5: Company Highlights
5 EBITDA2 Company Highlights 1 Liquidity is calculated as the sum of cash and cash equivalents plus available capacity under the Company’s ABL facility and excludes restricted cash, if any 2 EBITDA, Net Debt and Free Cash Flow are non-GAAP financial measures; see non-GAAP reconciliations below 3 Sha
Slide 6: Company Highlights: Revenue Dispersion by Segment and Geography
6 6 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) 73% 71% 74% 58% 55% 19% 21% 16% 18% 17% 14% 21% 8% 8%
Slide 7: About Helix: Energy Transition services
7 7 ABOUT HELIX Energy Transition Maximizing Existing Reserves Reservoir Management Production Enhancement Tree Change Out Wireline, Slickline & Coiled Tubing Scale Squeeze & Stimulation DHSV Lockout Inspection, Repair, Maintenance Lowering Decommissioning Costs Cement Remediation Pipeline Abandonme
Slide 8: Well Intervention
8 • Global leader in rig-less intervention Lower costs and reduced carbon footprint • Fleet of seven purpose-built well intervention vessels • Both riser-based and riserless intervention systems • Approximately 2,000 subsea well intervention operations performed worldwide • Geographically diverse
Slide 9: Well Intervention Utilization
9 9 Well Intervention Utilization 88% 58% 74% 89% 86% 80% 88% 97% 79% 53% 82% 97% 38% 63% 71% 38% 42% 44% 79% 99% 68% 97% 95% 89% 100% 100% 72% 52% 87% 88% 99% 92% 97% 97% 97% 99% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Gulf
Slide 10: Robotics
10 10 • We serve both the Renewable Energy and Oil and Gas markets • A fleet of advanced work-class ROVs and trenchers • Leading provider for water jetting and mechanical cutting trenching solutions • Continued expansion of Renewables offerings and locations • Helix charters ROV support vessels, pro
Slide 11: Asset Utilization
11 11 Asset Utilization 165 236 358 419 323 370 376 332 295 435 506 463 72 84 90 90 66 81 176 160 156 252 276 271 24% 36% 43% 38% 35% 53% 66% 58% 56% 58% 67% 68% - 100 200 300 400 500 0% 10% 20% 30% 40% 50% 60% 70% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Vessel Days T
Slide 12: Shallow Water Abandonment
12 12 • The leading provider of decommissioning services in the GOM Shelf • Full planning, engineering and project management • Sole GOM in-house provider of all required capabilities for integrated full-field decommissioning • Well P&A • Facility decommissioning • Sub-sea architecture removal • Str
Slide 13: Shallow Water Abandonment Utilization
13 13 Shallow Water Abandonment Utilization 1 Systems utilization includes six CT systems from Q3 2022 through Q3 2023 and 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
Slide 14: Helix Production Facilities
14 Production Facilities includes: • Helix Producer 1 floating production unit (FPU), which is operating under a production handling contract until at least June 1, 2025 • The segment also includes the Helix Fast Response System and our ownership of the Gulf of Mexico wells and related infrastructur
Slide 15: Five-Year Trend
15 15 Five-Year Trend1 Revenue Free Cash Flow2 $752 $734 $675 $873 $1,290 $58 $22 $(62) $(88) $(11) ($100) ($75) ($50) ($25) $0 $25 $50 $75 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 2019 2020 2021 2022³ 2023³ Revenue Net Income (loss) Net income (loss) Adjusted EBITDA2 $180 $155 $96 $121 $273 $31
Slide 16: Debt & Liquidity Profile
16 16 $267 $279 $208 $291 $254 $187 $332 $(496) $(440) $(406) $(350) $(305) $(264) $(362) $348 $426 $380 $452 $305 $285 $431 $(229) $(161) $(143) $(58) $22 $(75) $(30) ($500) ($400) ($300) ($200) ($100) $0 $100 $200 $300 $400 $500 Cash¹ Long-term debt² Liquidity³ Net Debt⁴ Debt & Liquidity Profile 1
Slide 17: Capital Allocation
17 Capital Allocation Buybacks • $200M share repurchase plan approved in 2023 • $12M share repurchases in 2023 M&A • Opportunistically reinvest for our growth Capital Maintenance • Regulatory certification of vessels and systems Balance Sheet • 2026 Convertible Notes redemption • Earnout payment $43
Slide 18: 2024 Outlook
18 18 Forecast ($ in millions) 2024 2023 Outlook Actual Revenues $ 1,200 - 1,400 1,290 $ Adjusted EBITDA1 270 - 330 273 Free Cash Flow1,3 65 - 115 134 Capital Additions2 70 - 90 90 Revenue Split: Well Intervention $ 710 - 810 733 $ Robotics 255 - 315 258 Shallow Water Abandonment 215 - 250 275 Produ
Slide 19: Energy Transition business strategy momentum
19 19 We continue momentum on our Energy Transition business strategy: Production Maximization, Decommissioning and Renewables • Expected continued strong cash generation in this environment • Annual maintenance capex anticipated to average approximately $70 million for foreseeable future Well Inter
Slide 20: Corporate Sustainability
20 20 Corporate Sustainability “Safety, Sustainability and Value Creation – our core goals – support our vision as a preeminent offshore energy transition Company.” Owen Kratz, President and Chief Executive Officer Sustainability continues to drive our business strategy and decision-making with a re
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations € Helix 1 ENERGY SOLUTIONS
Slide 22: Non-GAAP Reconciliations
22 22 Non-GAAP Reconciliations ($ in thousands, unaudited) 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 Reconciliation from Net Income (Loss) to Adjusted EBITDA: Net income (loss) 57,697 $ 20,084 $ (61,684) $ (87,784) $ (10,838) $ Adjustments: Income tax provision (benefit) 7,859 (18,701)
Slide 23: Non-GAAP Definitions
23 23 Non-GAAP Definitions Non-GAAP Financial Measures We define EBITDA as earnings before income taxes, net interest expense, gains and losses on equity investments, net other income or expense, and depreciation and amortization expense. Non-cash impairment losses on goodwill and other long-lived a
Slide 24: ENERGY SOLUTIONS mR
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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 March 8, 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 March 2024 Appendix Decommissioning Commitments by Region, USD billion $7.3 billion 2024-2028 North America Rest of the world Decommissioning Expenditures by Facility Gr
Slide 28: Decommissioning Market: Global Outlook 2024-2028
28 28 DECOMMISSIONING MARKET Global: Market Outlook 2024-2028 Source: Rystad Energy ServiceCube as of March 2024 Appendix Global: Summary Global market summary Decom. commitments by region, USD billion Decom. commitments by topside weight, USD billion Global overview Decommissioning commitments, 202
Slide 29: Offshore Wind Renewables Market
29 29 OFFSHORE WIND RENEWABLES MARKET Cumulative Offshore Wind Cable Installations by Continent, 2020-2030 Appendix 16.6 33.6 29.9 26.2 38.8 53.3 45.8 71.7 62.4 84.2 99.7 0 20 40 60 80 100 120 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Asia Europe Americas Array Cable 55% Export Cable 45
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