Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q3 2013 Earnings Presentation
24 slides from Helix Energy Solutions's earnings presentation, Oct 22, 2013
Slide 1: Third Quarter 2013 Conference Call
* Third Quarter 2013 Conference Call October 22, 2013
Slide 2: Forward-Looking Statements
* Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All such statements, other than statements of historical fact, are “forward-looking statements” w
Slide 3: Presentation Outline
* Presentation Outline Executive Summary Summary of Q3 2013 Results (pg. 4) Operational Highlights by Segment Contracting Services (pg. 9) Key Balance Sheet Metrics (pg. 13) 2013 Outlook (pg. 16) Non-GAAP Reconciliations (pg. 20) Questions & Answers Q7000 shipyard contract signing in Singapore
Slide 4: Executive Summary
* Executive Summary *
Slide 5: Executive Summary
* Executive Summary ($ in millions, except per share data) Q3 2012 includes $4.6 million total in asset impairments, of which $4.4 million related to former well intervention operations in Australia; and $6.0 million ARO increase related to our non-domestic oil and gas property located in the North
Slide 6: Executive Summary
* Executive Summary Q3 2013 earnings of $0.42 per diluted share compared with $0.26 per diluted share in Q2 2013 $15.6 million gain on the sale of the Express in July 2013 $8.6 million loss on the early extinguishment of debt associated with the redemption of the remaining $275 million of Senior Uns
Slide 7: Executive Summary: Balance sheet
* Executive Summary Balance sheet Cash and cash equivalents decreased to $480 million at 09/30/2013 from $514 million at 06/30/2013 $58 million milestone payment for Q5000 made in July 2013 $69 million down payment under Q7000 shipyard contract made in September 2013 Liquidity* at $1.1 billion at 09
Slide 8: Operational Highlights
* Operational Highlights *
Slide 9: Contracting Services
* ($ in millions, except percentages) See non-GAAP reconciliation on slide 23. Amounts are prior to intercompany eliminations. Before gross profit impact of $4.6 million of asset impairments in Q3 2012, of which $4.4 million related to former well intervention operations in Australia. 84% utilizatio
Slide 10: Contracting Services – Well Ops
* GOM Q4000 fully utilized during Q3 IRS no. 2 on hire for the remainder of 2013 Helix 534 now expected to commence operating in the Gulf of Mexico in late December with full backlog in 2014, and extending into 2017 North Sea Nearly full utilization of Seawell and Well Enhancer during Q3 on a variet
Slide 11: Contracting Services – Robotics
* 98% chartered vessel utilization in Q3 Five vessels under long-term charter with the addition of the REM Installer during the quarter 68% utilization for ROVs, trenchers, and ROVDrill Awarded 5-year contract to deploy two work class ROVs commencing late Q1 2014 REM Installer entered fleet and comm
Slide 12: Contracting Services Utilization
* Olympic Canyon (1) Deep Cygnus (1) Olympic Triton (1) Grand Canyon (1) REM Installer (1) Seawell Well Enhancer Q4000 Skandi Constructor (1) 51 ROVs 2 ROVDrill Units 4 Trenchers (1) Chartered vessels Contracting Services Utilization
Slide 13: Key Balance Sheet Metrics
* Key Balance Sheet Metrics *
Slide 14: Total funded debt and debt maturity profile
* Total funded debt of $596 million at end of Q3 2013: $200 million Convertible Senior Notes – 3.25% (A) ($172 million net of unamortized debt discount) $296 million Term Loan – LIBOR + 2.50% (B) Annual amortization payments of 5% in years 1 and 2, 10% per annum in years 3 through 5 $100 million MAR
Slide 15: Debt and Liquidity Profile
* Liquidity of approximately $1.1 billion at 9/30/2013 ($ amounts in millions) Includes impact of unamortized debt discount under our convertible senior notes. We define liquidity as the total of cash and cash equivalents ($480 million) plus available capacity under our revolving credit facility ($5
Slide 16: 2013 Outlook
* 2013 Outlook *
Slide 17: 2013 Outlook
* 2013 Outlook ($ in millions) 2013 Outlook and 2012 Actual includes $32 million and $367 million, respectively, from Oil and Gas discontinued operations. 2013 Outlook excluding Subsea Construction and Oil and Gas, plus expected annualized contribution from Helix 534 and chartered Skandi Constructor
Slide 18: 2013 Outlook: Contracting Services Backlog
* 2013 Outlook Contracting Services Backlog as of September 30, 2013 was approximately $1.8 billion Utilization expected to remain strong for the well intervention fleet Q4000 backlog through 2015; negotiations on-going to extend fully contracted work into 2018 Q5000 backlog currently a minimum of 2
Slide 19: 2013 Outlook – Capex
* 2013 Outlook – Capex Capital Expenditures Contracting Services (approximately $400 million in 2013) $176 million incurred in Q3, $298 million year to date $58 million milestone payment for Q5000 made in July 2013 $69 million down payment under Q7000 shipyard contract made in September 2013 Q5000 n
Slide 20: Non-GAAP Reconciliations
* Non-GAAP Reconciliations *
Slide 21: Non-GAAP Reconciliations
* Non-GAAP Reconciliations ($ in millions) We calculate Adjusted EBITDA from continuing operations as earnings before net interest expense and other, taxes, depreciation and amortization. Adjusted EBITDAX is Adjusted EBITDA from continuing operations plus the earnings of our former oil and gas busin
Slide 22: Non-GAAP Reconciliations
* Non-GAAP Reconciliations We calculate Adjusted EBITDA from continuing operations as earnings before net interest expense and other, taxes, depreciation and amortization. Adjusted EBITDAX is Adjusted EBITDA from continuing operations plus the earnings of our former oil and gas business before net i
Slide 23: Non-GAAP Reconciliations
* Non-GAAP Reconciliations ($ in millions)
Slide 24: Follow Helix on social media
* * Follow Helix ESG on Twitter: www.twitter.com/Helix_ESG Join the discussion on LinkedIn: www.linkedin.com/company/helix
Helix Energy Solutions Group — Q3 2013 Earnings Presentation on 6ix