Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Cal Dive International — Q1 2005 Earnings Presentation
20 slides from Helix Energy Solutions's earnings presentation, May 5, 2005
Slide 1: First Quarter 2005 Earnings Conference Call
Owen Kratz - Chief Executive Officer Martin Ferron - President Wade Pursell - Chief Financial Officer First Quarter 2005 Earnings Conference Call May 5, 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 First Quarter First Quarter Fourth Quarter 2005 2004 2004 Revenues $159,575 $120,714 $162,990 Gross Profit (Before Unusual Charges) 56,370 31,741 56,930 35% 26% 35% Asset Impairment Charges ^ ^ <3,900> Expensed
Slide 5: Long Term Debt and Debt to Book Capitalization
MARAD Construction and Other Long Term Debt Revolving Credit 5 (Amounts in Millions) 3/31/05 12/31/04 12/31/03 12/31/02 Debt To Book Capitalization 40% 35% 22% 44% Convertible Notes
Slide 6: Convertible Notes
Convertible Notes Total Principal Amount: $300 million Coupon: 3.25% Maturity: 20 years, Callable after 7 years, Puttable at end of 7, 10 and 15 years Conversion Price: $64.27 Net Share Settlement Election: Cal Dive will settle the conversion value by paying the principal amount in cash and deliveri
Slide 7: Marine Contracting (MC)
Marine Contracting (MC) First Quarter First Quarter Fourth Quarter 2005 2004 2004 Revenues $100,487 $72,160 $101,451 Gross Profit 20,961 4,062 16,152 21% 6% 16% 7 (Amounts reflected are before intercompany eliminations and pre-tax charges for marine asset value impairments in Q4/04) Q1/05: Overall r
Slide 8: Marine Contracting (MC) cont.
Marine Contracting (MC) cont. Q2/05 and Outlook: We expect Q2 financial performance to be weaker than Q1 due to the timing of the drydocking of the Seawell, Mystic Viking and Cal Diver II. However, demand is building in most market sectors and we anticipate getting back on track with gradually impro
Slide 9: MC - Shelf
MC - Shelf First Quarter First Quarter Fourth Quarter 2005 2004 2004 48% 32% 68% Utilization Utilization dropped from the record level of Q4/04 due to a lower volume of Hurricane Ivan related work and normal seasonality. Demand for the saturation diving vessels (Cal Diver I and II) remains strong an
Slide 10: MC - Shelf Strategic Acquisitions
MC - Shelf Strategic Acquisitions Transaction with Stolt Offshore, involving the purchase of Shelf assets, is still due to close during Q2. The deal is expected to be neutral to earnings during the remainder of 2005, as integration takes place, but is likely to produce between $25 million - $30 mill
Slide 11: MC - Deepwater & Robotics
MC - Deepwater & Robotics First Quarter First Quarter Fourth Quarter 2005 2004 2004 Deepwater Contracting 63% 70% 64% Robotics 63% 49% 61% Utilization Q1/05: Deepwater vessel utilization was flat with Q4/04 despite a gradual decline in Hurricane Ivan related work. The drydocking of the Intrepid was
Slide 12: MC - Deepwater & Robotics cont.
MC - Deepwater & Robotics cont. Q2/05 and Outlook: The active deepwater vessels have good backlogs and the Witch Queen will recommence operations in the Trinidad market during the quarter. We are particularly encouraged that the deepwater tie-back pipelay market is developing as we expected when we
Slide 13: MC - Well Operations
MC - Well Operations First Quarter First Quarter Fourth Quarter 2005 2004 2004 96% 82% 92% Utilization Q1/05: The Q4000 had a record quarter for profitability and has now worked almost every day since early July last year. The Seawell was able to complete the Statoil work season in early February wi
Slide 14: MC - Well Operations cont.
MC - Well Operations cont. Q2/05 and Outlook: The drydocking of the Q4000 has been delayed until Q3 to allow her to complete an ongoing work commitment and she has good prospects after that. The Seawell entered drydock in mid April and she should get back to work in mid May. She is fully booked for
Slide 15: Production Facilities
Production Facilities First Quarter First Quarter Fourth Quarter 2005 2004 2004 Equity in Earnings $1,729 $^ $3,555 Production throughput (MBOe) 1,259 ^ 2,533 15 Q1/05: The equity contribution from Deepwater Gateway (Marco Polo) declined from Q4/04 due to the expected fall-off in production from the
Slide 16: Oil & Gas Production
Oil & Gas Production First Quarter First Quarter Fourth Quarter 2005 2004 2004 Revenues $63,386 $55,195 $66,833 Gross Profit 35,409 27,769 40,762 56% 50% 61% Production (BCFe): Shelf 6.7 8.5 7.1 Gunnison 2.3 1.5 2.7 Average Commodity Prices (net of hedging impact): Oil/Bbl $44.02 $30.66 $39.77 Gas/M
Slide 17: Oil & Gas Production Q1 commentary
Oil & Gas Production Q1: Shelf: Commodity prices remained robust in the first quarter with our net realized price per BCFe up 27% from the prior year first quarter and slightly ahead (3%) of last quarter. Shelf production declined 6% from last quarter due mainly to unexpected downtime at EC 374 in F
Slide 18: Oil & Gas Production Development Property Acquisitions
Oil & Gas Production Development Property Acquisitions Telemark (30%), Devil's Island (50%), Tulane (50%) and Bass Lite (37.5%). Total Estimated Acquisition and Development Costs: $300 million to $375 million primarily over the next three years. Total Estimated Acquisition Reserves: 130 to 200 BCFe.
Slide 19: Hedging: As of March 31, 2005
Hedging: As of March 31, 2005 Production Period Instrument Type Average Monthly Volumes Weighted Average Price Crude Oil: April - June 2005 Collars 50 MBbl $38.60 - $50.99 April - June 2005 Swaps 20 MBbl $35.80 July - December 2005 Collars 70 MBbl $40.00 - $53.84 Natural Gas: April - June 2005 Colla
Slide 20: 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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