Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q3 2019 Earnings Presentation
26 slides from Helix Energy Solutions's earnings presentation, Oct 22, 2019
Slide 1: Third Quarter 2019 Conference Call
HELIX ENERGY SOLUTIONS Third Quarter 2019 Conference Call October 22, 2019 Navigating the present, focusing on the future.
Slide 2: Forward-Looking Statements
BB Forward-Looking Statements 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 histori
Slide 3: Presentation Outline
Bi Presentation Outline ¢ Executive Summary (pg. 4) * Operational Highlights by Segment (pg. 9) | * Key Financial Metrics (pg. 16) * 2019 Outlook (pg. 19) ¢ Non-GAAP Reconciliations (pg. 24) * Questions and Answers ENERGY SOLUTIONS Navigating the present, focusing on the future.
Slide 4: Executive Summary
| Executive Sum = = fe HELIX 4 FN Le. Navigating the present, focusing on the future.
Slide 5: Executive Summary
BB Executive Summary ($in millions, except per share data, unaudited) Three Months Ended Nine Months Ended 9/30/19 9/30/18 6/30/19 9/30/19 9/30/18 Revenues 213 213 202 581 581 Gross profit $ 55 52 40 $ 111 $ 108 26% 24% 20% 19% 19% Net income 32 27 17 50 42 Diluted earnings per share 0.21 0.18 0.11
Slide 6: Executive Summary: Highlights
BB Executive Summary Highlights Q3 2019 e Net income of $32 million, $0.21 per diluted share, compared to $17 million, $0.11 per diluted share, in Q2 2019 and $27 million, $0.18 per diluted share, in Q3 2018 e Adjusted EBITDA’ of $66 million compared to $50 million in Q2 2019 and $59 million in Q3 2
Slide 7: Executive Summary: Operations
BB Executive Summary Operations e Well Intervention e Utilization of 97% across the well intervention vessel fleet e 95% in the GOM e 96% in the North Sea e 99% in Brazil e 15K IRS utilization 79%; 10K IRS idle during quarter e Robotics e Robotics chartered vessels utilization 96%, including 149 ves
Slide 8: Executive Summary: Balance Sheet
BB Executive Summary Balance Sheet e Cash and cash equivalents of $286 million at 9/30/19 e Liquidity’ of approximately $459 million at 9/30/19 e Long-term debt? of $413 million at 9/30/19 compared to $424 million at 6/30/19 e Net debt? of $127 million at 9/30/19 compared to $163 million at 6/30/19
Slide 9: Operational Highlights by Segment
Operational Highlights by Segment Navigating the present, focusing on the future.
Slide 10: Business Segment Results
BBSusiness Segment Results ($in millions, unaudited) Three Months Ended Nine Months Ended 9/30/19 9/30/18 6/30/19 9/30/19 9/30/18 Revenues Well Intervention $ 170 $ 155 $ 159 451 $ 446 Robotics 52 54 45 136 120 Production Facilities 14 16 16 45 48 Intercompany Eliminations (23) (12) (18) (51) (33) T
Slide 11: Well Intervention - GOM
vel! Intervention -GOM Gulf of Mexico e Q5000 — 93% utilized in Q3 performing 15K intervention work for BP, completing its annual commitment on September 27; commenced abandonment activities for the second of four Droshky wells owned by Helix e Q4000 — 97% utilized in Q3; completed the abandonment o
Slide 12: Well Intervention - North Sea
Wve! Intervention —North Sea | North Sea e Well Enhancer — 100% utilized in Q3; operational in light well intervention mode for one customer performing abandonment operations and production enhancement on seven wells e Seawell — 92% utilized in Q3; operational for four customers primarily performing
Slide 13: Brazil
Brazil e Siem Helix 1 — 100% utilized in Q3; performed workover and production enhancement operations on two wells e Siem Helix 2 — 99% utilized in Q3; performed workover and production enhancement operations on four wells and abandonment scope on one well Siem Helix 1 Siem Helix 2 Navigating the pr
Slide 14: Robotics
BB Robotics Chartered vessel fleet 96% utilized (including spot vessels) in Q3; ROVs, trenchers and ROVDrill 44% utilized e Grand Canyon (North Sea) — 100% utilized in Q3 performing trenching operations e Grand Canyon II (Asia Pacific) - 100% utilized in Q3 performing ROV support projects for three
Slide 15: Utilization by Asset Group
80% 60% ° @ Q3 2019 @Q22019 40% @Q3 2018 20% 0% Well Intervention Vessels Robotics Support Vessels ROVs, Trenchers and ROVDrill + Q5000 + Grand Canyon’ + 46 ROVs? + Q4000 + Grand Canyon II" * 1 ROVDrill unit? + Seawell + Grand Canyon III" + 4 Trenchers? + Well Enhancer + Spot vessels’ + Siem Helix 1
Slide 16: Key Financial Metrics
key Financial Metrics — Navigating the present, focusing on the future.
Slide 17: Debt Instrument Profile
Debt Instrument Profile Principal Payment Schedule at 9/30/19 Total funded debt’ of $446 million at 9/30/19 ($ in millions) e $125 million Convertible Senior Notes due 2022 — 4.25% $150 $133 $133 e $125 million Convertible Senior Notes due 2023 — 4.125% | $100 e $34 million Term Loan —LIBOR + 3.25%
Slide 18: Debt & Liquidity Profile
18 Debt & Liquidity Prof ile $1,200 (Sin millions) $800 $554 $537 $400 $76 $61 $0 $127 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 9/30/19 mmlLTDebt! mmmNet Debt? -«Liquidity* Liquidity’ of approximately $459 million at 9/30/19 ‘ Long-term debt is net of unamortized debt issuance costs and
Slide 19: 2019 Outlook
4am HELIX 2019 Outlook
Slide 20: 2019 Outlook: Forecast
Wy2019 Outlook: Forecast Outlook Actual Revenues $ 730 - 760 $ 740 Adiusted EBITDA‘? 172 - 184 162 Capital Additions® ~ 150 135 Revenue Split: Well Intervention $ 575 - 595 $ 561 Robotics 165-175 159 Production Facilities? ~60 64 Eliminations ~ (70) (44) Total $ 730 - 760 $ 740 Key remaining 2019 fo
Slide 21: 2019 Outlook: Well Intervention
Wy2019 Outlook: Well Intervention e Total backlog at September 30, 2019 was approx. $0.8 billion, including $0.6 billion for Well Intervention e Gulf of Mexico e Q4000 — contracted backlog through November with opportunities identified and high utilization expected for the remainder of 2019 e Q5000
Slide 22: 2019 Outlook: Robotics
Wy2019 Outlook: Robotics e Grand Canyon (North Sea) — expected to perform trenching work through scheduled return of the vessel in Q4 2019 e Grand Canyon II (Asia Pacific) — good utilization expected over the reminder of 2019 e Grand Canyon III (North Sea) — trenching work into October; identified o
Slide 23: 2019 Outlook: Capital Additions & Balance Sheet
2019 Outlook: Capital Additions & Balance Sheet 2019 Capital additions are currently forecasted at approximately $150 million, consisting of the following: e Growth Capex — $125 million’ related to completion of the Q7000 and related intervention system: © $122 million for the Q7000, including a $69
Slide 24: Non-GAAP Reconciliation
BB Non-GAAP Reconciliation Zit
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Twevie Months ($ in thousands, unaudited) Three Months Ended Nine Months Ended Ended 9/30/19 9/30/18 6/30/19 9/30/19 9/30/18 12/31/18 Adjusted EBITDA: Net income $ 31,622 $ 27,121 $ 16823 $ 49,763 $ 42345 $ 28,598 Adjustments: Income tax provision 3,539 841 2,876 6,739 1,226
Slide 26: Thank you
Helix Energy Solutions Group — Q3 2019 Earnings Presentation on 6ix