Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — CAL Dive International — Q4 2004 Earnings Presentation
20 slides from Helix Energy Solutions's earnings presentation, Mar 1, 2005
Slide 1: Fourth Quarter 2004 Earnings Conference Call
Owen Kratz - Chief Executive Officer Martin Ferron - President Wade Pursell - Chief Financial Officer Fourth Quarter 2004 Earnings Conference Call March 2, 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) Fourth Quarter Fourth Quarter Third Quarter Year Ending Year Ending 2004 2003 2004 2004 2003 Revenues $162,990 $101,675 $131,987 $543,392 $396,269 Gross Profit (Before Asset Impairment Charges) 56,930 24,685 45,7
Slide 5: MARAD Construction and Other Long Term Debt, Revolving Credit
MARAD Construction and Other Long Term Debt Revolving Credit 5 (Amounts in Millions) 12/31/04 06/30/04 12/31/03 12/31/02 Net Debt To Book Capitalization 40% 35% 20% 10%
Slide 6: The Impact of Hurricane Ivan on Cal Dive Earnings
The Impact of Hurricane Ivan on Cal Dive Earnings Q4/04: The Uncle John, Mystic Viking and several of the Shelf vessels achieved full utilization, at good rates, on post hurricane inspection/clean up work. As expected the net benefit to CDI earnings was a positive contribution of more than $0.05 per
Slide 7: Marine Contracting (MC)
Marine Contracting (MC) Fourth Quarter Fourth Quarter Third Quarter 2004 2003 2004 Revenues $101,451 $77,697 $78,860 Gross Profit 16,152 9,794 12,509 16% 13% 16% 7 Asset Impairment Charges: During Q4, the Company decided to sell the Merlin and accordingly wrote down her book value to expected sales
Slide 8: Marine Contracting (MC) cont.
Marine Contracting (MC) cont. Q4/04: Overall revenue improved both sequentially and year over year mainly due to: the positive impact of Hurricane Ivan (slide 6); high procurement revenue associated with the Seawell in Norway; and better market conditions, especially for the Q4000 and Canyon (roboti
Slide 9: MC - Shelf
MC - Shelf Fourth Quarter Fourth Quarter Third Quarter 2004 2003 2004 68% 43% 52% Utilization Utilization reached record levels for Q4 due to the positive impact of Hurricane Ivan. The saturation diving vessels (Cal Divers I & II) had a record combined gross profit for the year, which is even more i
Slide 10: MC - Deepwater & Robotics
MC - Deepwater & Robotics Fourth Quarter Fourth Quarter Third Quarter 2004 2003 2004 Deepwater Contracting 64% 74% 52% Robotics 61% 47% 45% Utilization Q4/04: Although the Uncle John and Mystic Viking enjoyed full utilization from Hurricane Ivan work, the Intrepid and Eclipse were both drydocked dur
Slide 11: MC - Deepwater & Robotics cont.
MC - Deepwater & Robotics cont. The Witch Queen is being reactivated in drydock and will be deployed in the Trinidad market beginning in April. We plan to contribute her to a local joint venture company, formed with a local diving company, in return for a stake in the venture. We see good prospects
Slide 12: MC - Well Operations
MC - Well Operations Fourth Quarter Fourth Quarter Third Quarter 2004 2003 2004 92% 89% 73% Utilization Q4/04: The Q4000 had another good quarter for both utilization and profitability based on a mix of well intervention, construction and logistical support work. Unfortunately, the Seawell had a dis
Slide 13: MC - Well Operations cont.
MC - Well Operations cont. Q1/05 and Outlook: The Q4000 is booked until she is planned to enter drydock in April and she has good prospects after that. The Seawell has excellent utilization prospects for the full year, with a minimum 120 days of Statoil work being a foundation contract. The risk pro
Slide 14: Production Facilities
Production Facilities Fourth Quarter Fourth Quarter Third Quarter 2004 2003 2004 Equity in Earnings $3,555 $^ $3,062 Production throughput (MBOe) 2,533 ^ 1,876 14 Q4: The equity contribution from Deepwater Gateway (Marco Polo) improved from Q3, due to a full period of production and no hurricane rel
Slide 15: Production Facilities: Outlook
Production Facilities: Outlook Jointly owned (20%) with Enterprise Products Partners Project is in build phase and will be deployed in MC 920 Mechanical completion due in late 2006 First production expected in early 2007 We see good opportunities for both associated construction work and PUD acquisi
Slide 16: Oil & Gas Production
Oil & Gas Production Fourth Quarter Fourth Quarter Third Quarter 2004 2003 2004 Revenues $66,833 $35,793 $59,999 Gross Profit 40,762 15,490 33,277 61% 43% 55% Production (BCFe): Shelf 7.1 6.9 7.7 Gunnison 2.7 0.3 2.3 Average Commodity Prices (net of hedging impact): Oil/Bbl $39.77 $27.75 $38.12 Gas/
Slide 17: Oil & Gas Production
Oil & Gas Production Q4: Shelf: Commodity prices remained robust in the fourth quarter with our net realized price per BCFe up 40% from the prior year and 13% over last quarter. Shelf production improved slightly (3%) over year ago levels due primarily to successful results from well exploitation ef
Slide 18: Hedging: As of January 31, 2005
Hedging: As of January 31, 2005 Production Period Instrument Type Average Monthly Volumes Weighted Average Price Crude Oil: January - June 2005 Swaps 20 MBbl $35.80 January - September 2005 Collars 40 MBbl $37.00 - $47.48 July - December 2005 Collars 30 MBbl $37.00 - $50.60 Natural Gas: January - Ju
Slide 19: 2004 Report Card
2004 Report Card Marine Contracting 2% Margin improvement ^ Reduce Direct Cost $10 million ^ Oil & Gas 40 BCFe of Production ^ PUD acquisition in GOM ^ Mature production acquisition X Production Facilities One new Gateway deal ^ Financial Flexible credit structure ^ No equity dilution ^ Earnings > $
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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