Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Corporate Update (September 2022)
37 slides from Helix Energy Solutions's corporate update, Sep 6, 2022
Slide 1: September 2022 Helix Energy Solutions Company Update
SEPTEMBER 2022 Helix Energy Solutions Company Update
Slide 2: Forward-looking statements
Referencesinthispresentationto“our”or“Helix”meansHelixEnergySolutionsGroup,Inc.,togetherwithoursubsidiaries.Referencesin thispresentationto“Alliance”meansHelixAllianceDecom,LLC,awholly-ownedsubsidiaryofHelix.Thispresentationcontainsforward- lookingstatementsthatinvolverisks,uncertaintiesandassumptio
Slide 3: Helix Company Overview
Helix Energy Solutions provides specialty services to the offshore energy industry with a focus on well intervention and robotics operations. Our services are centered toward and well positioned to facilitate global energy transition by maximizing production of remaining oil and gas reserves, decomm
Slide 4: Helix Company Overview
HELIX COMPANY OVERVIEW 4 •World's leading provider of both well intervention and subsea robotics technologies to offshore energy industry •Pioneer and established leading provider of well intervention solutions with a competitive advantage •Track record of 1,610 subsea wells 1 and over 30 years of g
Slide 5: Energy Transition
ENERGY TRANSITION The three legs to our model establish Helix as a meaningful Energy Transition company with significant potential: Maximizing Remaining Reserves Abandonment and Decommissioning Offshore Renewables and Wind Farms Maximizing Remaining Reserves • Production Enhancement –continue assist
Slide 6: Why Choose Helix?
•Market leader in Well Intervention and Robotics/Trenching •Riser-based and riserless intervention capabilities •Increasing contribution of offshore Renewables market •Expansion into the Gulf of Mexico shallow water decommissioning market •Geographically diverse scope of operations •Diverse customer
Slide 7: Sustainability
SUSTAINABILITY We continue to implement and improve Environmental, Social and Governance (“ESG”) initiatives and disclosures throughout our business. We incorporate ESG initiatives into our core business values and priorities of safety, sustainability and value creation witha top- down approach led
Slide 8: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Environmental •Our business supports both the responsible transition from a carbon- based economy and extending the value and therefore the life cycle of underutilized wells, which in turn helps clients avoid drilling new wells. These efforts are published in gre
Slide 9: Well Intervention
Helix Well Ops is a leader in rigless offshore well intervention, providing fast, flexible and high-quality well management services Our purpose-built riserless and riser-based well intervention vessels and subsea systems operate worldwide to provide customer value throughout the well life cycle Low
Slide 10: What Sets Helix Apart in Well Intervention
•Fleet of seven purpose-built well intervention vessels •Both riser-based and riserless intervention systems •1,610 subsea well intervention 1 operations performed worldwide, includes production enhancement and abandonment operations •598 well abandonment 1 operations performed worldwide •Geographic
Slide 11: Helix Well Intervention Vessels & Assets
HELIX WELL INTERVENTION VESSELS & ASSETS Q4000 (Gulf of Mexico) Dynamically positioned class 3 (“DP3”) purpose-built semisubmersible vessel for well intervention, decommissioning and other subsea projects Q5000 (Gulf of Mexico) DP3 purpose-built semisubmersible vessel for well intervention, decommis
Slide 12: Subsea Services Alliance with Schlumberger
Subsea Services Alliance created in 2015 to combine the expertise and capabilities of Helix and Schlumberger Comprehensive subsea well construction, intervention and decommissioning portfolio o Helix provides marine support, operational expertise and project management capabilities o Schlumberger pr
Slide 13: Helix Robotics
Helix Robotics Solutions is a leading supplier of subsea engineering services, operating state of the art remote operated vehicles (ROVs), seabed trenchers and support/construction vessels Our deep-water ROV track record spans over 25 years, including oil & gas, renewable energy, construction servic
Slide 14: Helix Robotics Vessels & Assets
Grand Canyon II (Asia Pacific) A versatile and technically advanced DP3 multi-role construction support vessel Under charter agreement through December 2027 Grand Canyon III (North Sea) A versatile and technically advanced DP3 multi- role construction support vessel Under charter agreement through M
Slide 15: What Sets Helix Apart in Robotics
•A fleet of advanced work-class ROVs and trenchers, including several units custom built to our specifications •Our subsea expertise in robotics is applicable to both the Oil and Gas and Renewables markets 1 •Leading provider for water jetting and mechanical cutting trenching solutions and ROV suppo
Slide 16: Helix Alliance
Helix Alliance is a leading supplier of full-field decommissioning services to the Gulf of Mexico shelf Owned-fleet of Jones Act support vessels and equipment including liftboats, P&A spreads, OSVs, coiled tubing spreads, diving vessels and a heavy lift barge In addition to decommissioning, services
Slide 17: Helix Alliance Vessels & Assets
Liftboats Ten liftboats ranging in size up to 265 feet Dive Support Vessels Three dive support vessels P&A Spreads 20 P&A Spreads HELIX ALLIANCE VESSELS & ASSETS Offshore Supply Vessels (OSVs) Six OSV’s ranging from 150 feet to 170 feet and one crewboat Heavy Lift Derrick Barge Epic Hedron 1,763-ton
Slide 18: Helix Production Facilities
Helix Production Facilities includes the Helix Producer 1 floating production unit (FPU), which is operating under a production handling contract until at least June 1, 2023 The segment also includes the Helix Fast Response System and our ownership of the Gulf of Mexico wells and related infrastruct
Slide 19: Key Financial Metrics and Outlook
Key Financial Metrics and Outlook 19
Slide 20: Debt & Liquidity Profile
DEBT & LIQUIDITY PROFILE ($ in millions) Liquidity amounts do not reflect the acquisition of the Alliance group of companies on July 1, 2022 1 Cash includes cash and cash equivalents but excludes restricted cash at December 31, 2019 and 2021 and June 30, 2022 of $54 million, $74 million and $3 milli
Slide 21: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt 1 of $275 million at 6/30/22 •$30 million Convertible Senior Notes due 2023 –4.125% •$200 million Convertible Senior Notes due 2026 –6.75% •$45 million MARAD Debt –4.93% •Semi-annual amortization payments through maturity in Q1 2027 $0 $50 $100 $150 $200 $25
Slide 22: Five Year Trend
Revenue Free Cash Flow 1 1 Adjusted EBITDA and Free Cash Flow are Non-GAAP financial measures, see non-GAAP reconciliations on slide 32 2 Helix Alliance revenue will be included for periods beginning July 1, 2022 $581 $740 $752 $734 $675 $30 $29 $58 $22 $(62) ($80) ($60) ($40) ($20) $0 $20 $40 $60 $
Slide 23: Revenue Dispersion
REVENUE DISPERSION 1 ($ IN MILLIONS) Geography Segments 68% 74% 73% 71% 74% 21% 17% 19% 21% 16% 11% 9% 8% 8% 10% $0 $200 $400 $600 $800 20172018201920202021 Well Intervention Robotics Production Facilities 49% 37% 40% 42% 34% 12% 28% 29% 28% 23% 27% 26% 26% 18% 15% 6% 19% 12% 9% 5% 6% 9% $0 $200 $40
Slide 24: 2022 Outlook: Forecast
24 2022 OUTLOOK: FORECAST ($ in millions) 2021 Helix Outlook 3 Helix Alliance 4 CombinedActual Revenues$ 650 - 725$ 75 - 100$ 725 - 825675 $ Adjusted EBITDA 1 70 - 8515 - 2585 - 11096 Free Cash Flow 1 (30) - (5)10 - 20(20) - 15132 Capital Additions 2 47 - 553 - 550 - 6017 Revenue Split: Well Interve
Slide 25: 2022 Outlook – Well Intervention
2022 OUTLOOK –WELL INTERVENTION • Q4000 (Gulf of Mexico) –contracted work into Q4 with expected strong utilization during remainder of the year • Q5000 (Gulf of Mexico) – contracted work into late Q4 with expected strong utilization during remainder of the year • IRS rental units (Gulf of Mexico) –1
Slide 26: 2022 Outlook – Robotics
Robotics • Grand Canyon II (Asia Pacific) –performed ROV support work on windfarm project offshore Taiwan expected through Q3 and expected to have high utilization during remainder of 2022 before charter expiration date at end of the year • Grand Canyon III (North Sea) –performing seasonal trenching
Slide 27: 2022 Outlook – Helix Alliance
• Offshore – marine services with diversified fleet consisting of six offshore supply vessels (OSVs), 10 liftboats (ranging in size up to 265 feet) and one crewboat • 2022 Outlook – expect stable utilization on seven to nine liftboats and variable seasonal utilization on OSVs and crewboat for balanc
Slide 28: 2022 Capital Additions and Balance Sheet
2022 Capital additions are forecasted at approximately $50 -$60 million: •Primarily maintenance capex related to regulatory recertification costs of our vessels and systems •Capital additions during Q2 approximated $11 million and included •Approximately $9 million for regulatory recertification cos
Slide 29: Strategic Priorities and 2023 Focus
•Continue momentum on the three legs of our Energy Transition business model: production maximization, decommissioning and Renewables •Integration of Alliance and full-field abandonment capabilities •Expect to continue anticipated momentum from second half 2022 into 2023 •Operating cash flow improve
Slide 30: Potential Improvements in 2023
• Potential Improvements in 2023 1 We expect 2023 to be substantially better than 2022, based on the following: • Brazil –Both vessels expected to be working in intervention mode at profitable rates in 2023; expected EBITDA improvement $55 to $65 million in 2023 • Q7000 –Absence of regulatory inspec
Slide 31: Non-GAAP Reconciliations and Supplemental Information
Non-GAAP Reconciliations and Supplemental Information 31
Slide 32: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ in thousands, unaudited) 12/31/201712/31/201812/31/201912/31/202012/31/2021 Reconciliation from Net Income (Loss) to Adjusted EBITDA: Net income (loss)30,052 $ 28,598 $ 57,697 $ 20,084 $ (61,684) $ Adjustments: Income tax provision (benefit)(50,424) 2,400 7,859 (18,701) (
Slide 33: Non-GAAP and Other Definitions
NON-GAAP AND OTHER DEFINITIONS Non-GAAPFinancialMeasures WedefineEBITDAasearningsbeforeincometaxes,netinterestexpense,gainsorlossesonextinguishmentoflong-termdebt, gainsorlossesonequityinvestments,netotherincomeorexpense,anddepreciationandamortizationexpense.Non-cash impairmentlossesongoodwillandoth
Slide 34: Macro Outlook Supports Upside Potential
1,123 3,235 1,446 1,713 1,478 1,514 0 600 1,200 1,800 2,400 3,000 3,600 2020A2021A2022E2023E2024E2025E 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 enh
Slide 35: Decommissioning Market – North America
DECOMMISSIONING MARKET –NORTH AMERICA North America Decommissioning Market Outlook: 2022-2025 35 Source: Rystad Energy ServiceCube, SubseaCube, WellCube as of August 2022
Slide 36: Decommissioning Market – Global
DECOMMISSIONING MARKET –GLOBAL Global Decommissioning Market Outlook: 2022-2025 36 Source: Rystad Energy ServiceCube as of August 2022
Slide 37: Energy Solutions
IX ENERGY SOLUTIONS D on 1
Helix Energy Solutions Group — Corporate Update (September 2022) on 6ix