Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Cal Dive International — Q2 2005 Earnings Presentation
17 slides from Helix Energy Solutions's earnings presentation, Aug 3, 2005
Slide 1: Second Quarter 2005 Earnings Conference Call
Owen Kratz - Chief Executive Officer Martin Ferron - President Wade Pursell - Chief Financial Officer Second Quarter 2005 Earnings Conference Call August 3, 2005
Slide 2: Agenda
Agenda I. Summary of Results II. Operational Highlights by Segment A. Marine Contracting i. Shelf Contracting ii. Deepwater & Robotics iii. Well Operations B. Production Facilities C. Oil & Gas Production III. Strategic Overview and Outlook IV. Questions & Answers 2
Slide 3: Forward-Looking Statements
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 historica
Slide 4: Summary of Results
Summary of Results (all amounts in thousands, except per share amounts and percentages) 4 Second Quarter Second Quarter First Quarter 2005 2004 2005 Revenues $166,531 $127,701 $159,575 Gross Profit (Before Unusual Charges) 55,966 41,415 56,370 34% 32% 35% Asset Impairment Charges <3,547> ^ ^ Expense
Slide 5: MARAD Construction and Other Long Term Debt, Revolving Credit
MARAD Construction and Other Long Term Debt Revolving Credit 5 (Amounts in Millions) 6/30//05 12/31/04 12/31/03 12/31/02 Debt To Book Capitalization 40% 35% 22% 43% Convertible Notes
Slide 6: Marine Contracting (MC)
Marine Contracting (MC) Second Quarter Second Quarter First Quarter 2005 2004 2005 Revenues $103,391 $71,763 $100,487 Gross Profit 17,577 7,834 20,961 17% 11% 21% 6 (Amounts reflected are before intercompany eliminations and pre-tax charges for marine asset value impairments in Q2/05) Q2/05: Overall
Slide 7: Marine Contracting (MC) cont.
Marine Contracting (MC) cont. Q3/05 and Outlook: We expect Q3 financial performance to be at least as good as Q1 levels as most of the annual drydocking activity is behind us. Pricing continues to improve with better market conditions in all marine contracting sectors. 7
Slide 8: MC - Shelf
MC - Shelf Second Quarter Second Quarter First Quarter 2005 2004 2005 55% 48% 48% Utilization Utilization improved 7% year over year due to better market conditions and by the same percentage sequentially due to normal seasonality. The expected pick-up in surface diving activity, linked to Inspectio
Slide 9: MC - Shelf Strategic Acquisitions Update
MC - Shelf Strategic Acquisitions Update The separate transactions to acquire assets from both Stolt Offshore and Torch Offshore are in the second review stage with the Department of Justice. We are hopeful that this review will be completed in Q3. During Q2 we were the successful bidder for six she
Slide 10: MC - Deepwater & Robotics
MC - Deepwater & Robotics Second Quarter Second Quarter First Quarter 2005 2004 2005 Deepwater Contracting 63% 57% 63% Robotics 70% 46% 63% Utilization Q2/05: Deepwater asset utilization was 87% excluding the Witch Queen and Merlin which were both inactive during the quarter. The former vessel will
Slide 11: MC - Deepwater & Robotics cont.
MC - Deepwater & Robotics cont. Q3/05 and Outlook: Deepwater vessel utilization is largely secured for the remainder of the year and the focus is now on pricing for 2006 projects. We expect Canyon to have another excellent quarter with robust demand for both pipe burial and ROV services. The Intrepi
Slide 12: MC - Well Operations
MC - Well Operations Second Quarter Second Quarter First Quarter 2005 2004 2005 55% 73% 96% Utilization Q2/05: The Q4000 and Seawell spent a combined 81 days in drydock during the quarter. Both vessels are likely to be fully utilized in both Q3 and Q4. The financial impact of the drydockings was equ
Slide 13: Production Facilities
Production Facilities Second Quarter Second Quarter First Quarter 2005 2004 2005 Equity in Earnings $2,708 $1,310 $1,729 Production throughput (MBOe) 718 ^ 1,259 13 Q2/05: The equity contribution from Deepwater Gateway (Marco Polo) increased 57% from Q1 mainly due to the early retirement of debt. Th
Slide 14: Oil & Gas Production
Oil & Gas Production Second Quarter Second Quarter First Quarter 2005 2004 2005 Revenues $67,590 $61,283 $63,386 Gross Profit 38,389 33,619 35,409 57% 55% 56% Production (BCFe): Shelf 6.7 8.0 6.7 Gunnison 2.2 2.0 2.3 Average Commodity Prices (net of hedging impact): Oil/Bbl $45.96 $32.97 $44.02 Gas/
Slide 15: Oil & Gas Production
Oil & Gas Production Q2: Shelf: Commodity prices remained robust in the second quarter with our net realized price per BCFe up 24% from the prior year second quarter and slightly ahead (8%) of last quarter. Shelf production was flat with last quarter's levels. EC374 ceased production during the seco
Slide 16: Hedging: As of June 30, 2005
Hedging: As of June 30, 2005 Production Period Instrument Type Average Monthly Volumes Weighted Average Price Crude Oil: July - December 2005 Collars 120 MBbl $40.00 - $59.07 January - December 2006 Collars 75 MBbl $40.00 - $65.80 January - December 2007 Collars 50 MBbl $40.00 - $62.15 Natural Gas:
Slide 17: 2005 Objectives
2005 Objectives Marine Contracting Revenues: $300 - 330 million Margins: 13% - 15% Oil and Gas 40 - 45 BCFe of production PUD acquisition Mature property acquisition Production Facilities Equity earnings: $22 - 27 million Start up of production from K2/K2N Identify and progress next opportunity Fina
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