Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2018 Earnings Presentation
25 slides from Helix Energy Solutions's earnings presentation, Apr 24, 2018
Slide 1: First Quarter 2018 Conference Call
HELIX ENERGY SOLUTIONS First Quarter 2018 Conference Call April 24, 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements = HELIX SOLUTIONS This presentation contains forward-looking statements that involve risks, uncertainties and assumptions that could Y/ Private Securities Litigation Reforr f 1995, including, without limitation, any statements regarding our strategy; an) regarding visibili
Slide 3: Presentation Outline
HELIX ENERGY SOLUTIONS, Presentation Outline = e Executive Summary (pg. 4) e Operational Highlights by Segment (pg. 8) e Key Financial Metrics (pg. 15) e 2018 Outlook (pg. 18) e Non-GAAP Reconciliations (pg. 23) e Questions & Answers 3 Navigating the present, focusing on the future
Slide 4: Navigating the present.
Navigating the present.
Slide 5: Executive Summary
Executive Summary ae ELIX ENERGY SOLUTIONS ($in millions, except per share data) As of and for the Three Months Ended 3/31/2018 3/31/2017 12/31/2017 Revenues $ 164 $ 105 $ 163 Gross profit (loss) $ 13° «= $ (i) $ 23 8% 1% 14% Net income (loss) $ 3) $ (16) $ 50 Diluted earnings (loss) per share $ (0.
Slide 6: Executive Summary: Operations
ENERGY SOLUTIONS Executive Summary Be LIELIX Operations Q1 2018 net loss of $3 million, $0.02 per diluted share, compared to Q4 2017 net income of $50 million, $0.34 per diluted share © Q4 2017 net income includes benefit of $52 million related to the U.S. tax law changes. Qi oe ole EBITDA‘ of $28 m
Slide 7: Executive Summary: Balance Sheet
Executive Summary as CIELIX Balance Sheet e Liquidity’ of approximately $417 million at 3/31/18 e Cash and cash equivalents totaled $274 million at 3/31/18 Approximately $121 million of net cash proceeds from issuance in March 2018 of $125 million of Convertible Senior Notes due 2023 (2023 Notes) °
Slide 8: Navigating the present.
Navigatingthe present.
Slide 9: Business Segment Results
Business Segment Results (8 in millions) the fleet 3/31/2018 Revenues Well intervention $ 130 Robotics 27 Production Facilities 16 intercompany elimination @) Total $__164 Gross profit (loss), % Well intervention $ 18 Robotics (12) Production Facilities 7 Elimination and other : Total 13 9 Navigatin
Slide 10: Well Intervention — GOM
ENERGY SOLUTIONS, Well Intervention —GOM ae HELIX Gulf of Mexico e Q5000 — 87% utilized in Q1 2018 for BP; performed both 10K and 15K work; regulatory underwater inspection began March 30 Q4000 — 100% utilized in Q1 2018; completed a four well performance enhancement and temporary abandonment progra
Slide 11: Well Intervention — North Sea
ENERGY SOLUTIONS, Well Intervention — North Sea a HELIX North Sea e Well Enhancer — 34% utilized in Q1 2018; primarily warm stacked in Dundee during January and February, vessel operations commenced early March e Seawell— 28% utilized in Q1 2018; warm stacked in Denmark during January and February,
Slide 12: Well Intervention — Brazil
ENERGY SOLUTIONS, Well Intervention — Brazil a HELIX Brazil e Siem Helix 1- 99% ae during Q1 2018, having mporary P&A, and p' i i on seven wells e Siem Helix 2— 88% oe ae Q1 2018, first full med quarter of p perf on five wells; ‘Siem Helix 1 vessel utilization improved monthly during the quarter 12
Slide 13: Robotics
j Am HELIX Robotics era e 56% chartered vessel fleet utilization in Q1 2018; 30% utilization for ROVs, trenchers and ROVDrills e Grand Canyon (North Sea) — 31 days of utilization during Q1 2018; on short duration IRM projects and short duration trenching project Grand Canyon II (GOM) — 84 days of ut
Slide 14: Utilization
Utilization 100% 85% 80% 60% Qi 2018 40% 6 Q4 2017 41Q1 2017 20% 0% Well Intervention Vessels ROV and Trencher Support ROVs and Trenchers Vessels + Q4000 = Grand Canyon’ + 48 ROVs 2 . yon II + 2ROVDrill rite + Seawell * Grand Canyon III*-5 + 5 Trencher: + Well Enhancer + Deep Cygnus's + Q5000 + Spot
Slide 15: Navigating the present,
15 Navigating the present,
Slide 16: Debt Instrument Profile
ENERGY SOLUTIONS Debt Instrument Profile a HELIX 1 ain Total funded debt! of $512 million at end of Debt Instrument Profile at 3/31/18 Q1 2018 Principal Payment Schedule ($ in millions) © $1 million Convertible Senior Notes due 2032 — 3.25%? $125 million Convertible Senior Notes due 2022 — 4.25% ae
Slide 17: Debt & Liquidity Profile
Debt & Liquidity Profile Be HELIX ENERGY SOLUTIONS $1,500 $1,200 ($in millions) $1,002 “ $1,000 $900 § > E 2 @ $600 € aed $554 $537 2 @ $500 3 = = 3 $300 $76 $61 $0 $0 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 03/31/2018 me mmNet Debt -#-Liquidity Liquidity of approximately $
Slide 18: 2018 Outlook
2018 Outlook ae ELIX Navigating the present,
Slide 19: 2018 Outlook: Forecast
2018 Outlook: ($ in millions) Revenues EBITDA" Capital Additions Revenue Split: we Intervention botics ee Facilities Elimination To Key forecast drivers: : Forecast a HELIX ENERGY SOLUTIONS 2018 2017 Outlook Actual ~695-740 $ 581 ~ 135-165 107 ~135 248 530-565 $ 406 140-150 153 65 64 Sy) Bie ce ~695
Slide 20: 2018 Outlook: Well Intervention
2018 Outlook: Well Intervention Be HELIX HELIX ENERGY SOLUTIONS e Total backlog at March 31, 2018 was approx. $1.5 billion, including $1.2 billion for Well Intervention e Gulf of Mexico ¢ Q4000 — primarily working spot market; current backlog into Q3 2018 with opportunities for work identified into
Slide 21: 2018 Outlook: Robotics
ENERGY SOLUTIONS 2018 Outlook: Robotics a HELIX Cost improvements beginning Q2 2018 related to the termination of the Deep Cygnus charter and return of the vessel to the owner e Grand Canyon — expected to be fully utilized for trenching from May through the remainder of 2018 Grand Canyon III — contr
Slide 22: 2018 Outlook: Capital Additions & Balance Sheet
2018 Outlook: Capital Additions & Balance Sheet ENERGY SOLUTIONS Be HELIX 2018 Capital Additions are ee d at approxi ly $135 of the million, Growth Capex - $115! million in growth capital, primarily for newbuilds: © $105 million for Q7000, including a $69 million shipyard payment in December 2018 ©
Slide 23: Non-GAAP Reconciliations
ENERGY SOLUTIONS Non-GAAP Reconciliations Be HELIX Navigating the present,
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Zs HELIX (Sin millions) Three Months Ended pcre montis) in 3/31/2018 _3/31/2017_—12/31/2017__—*12/31/2017 Adjusted EBITDA: ‘Net income (loss) $ @ $ (6 $ ss $ 30 ‘Adjustments: Income t oe : © (49) (60) Net interest e 4 3 1 lise en erte/ eemonial rere 1 : : - (Other (income) e
Slide 25: HLX Listed NYSE
ENERGY SOLUTIONS Be HELIX HLX Listed NYSE® Follow Helix on Twitter @Helix_ESG Like Helix on Facebook: www.facebook.com/helixenergysolutionsgroup Connect with Helix on LinkedIn: www.linkedin.com/company/helix-energy-solutions-group 25 Navigating the present, focusing on the future
Helix Energy Solutions Group — Q1 2018 Earnings Presentation on 6ix