Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Conference Presentation (May 2012)
35 slides from Helix Energy Solutions's conference presentation, May 25, 2012
Slide 1: Helix Energy Solutions Group Dynamically Positioned
Helix Energy Solutions Group Dynamically Positioned May 2012
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” wit
Slide 3: Who We Are
Helix is a specialty service provider to the offshore energy industry, with a focus on growing our Well Intervention and Robotics business units. We utilize free cash flow from our Oil and Gas production to support expansion in the Well Intervention and Robotics business units. Who We Are
Slide 4: Contracting Services Provider: Strategic Areas of Focus
Contracting Services Provider Strategic Areas of Focus Well Intervention : Entering a wellbore to initiate, enhance or restore production as part of the well’s natural life cycle Robotics : Providing remotely operated vehicles (ROVs) to perform deepwater service tasks beyond the reach of dive crews
Slide 5: Financials: Key Financial Highlights
5 FINANCIALS Key Financial Highlights
Slide 6: Financial Outlook
Broad Metrics 2012 Outlook (revised) 2012 Outlook (original) 2011 Actual Oil and Gas Production 7.5 MMBoe 7.5 MMBoe 8.7 MMBoe EBITDAX >$600 million ~$600 million $669 million CAPEX ~$450 million ~$445 million $229 million Commodity Price Deck 2012 Outlook (revised) 2012 Outlook (original) 2011 Actua
Slide 7: Financial Highlights
Quarter Ended 3/31/12 Twelve Months Ended 3/31/12 Revenues $ 408 $ 1,515 Gross Profit $ 162 $ 416 40% 37% Net Income $ 66 $ 170 Diluted Earnings Per Share $ 0.62 $ 1.60 Adjusted EBITDAX (A) $ 209 $ 729 Financial Highlights ($ amounts in millions, except percentages and per share data) (A) See non-GA
Slide 8: Debt and Liquidity Profile
Liquidity of approximately $1.1 billion at 3/31/2012 ⃰ Liquidity, as we define it, is equal to cash and cash equivalents ($620 million), plus available capacity under our revolving credit facility ($454 million). ($ amounts in millions) Debt and Liquidity Profile
Slide 9: Debt Maturity Profile
(A) • Total funded debt of $1.2 billion at end of Q1 2012 consisting of: o $358 million Convertible Notes - 3.25% (A) ($319 million net of unamortized debt discount) o $379 million Term Loans - − LIBOR + 3.50% on $279 million, and − LIBOR + 2.75% on $100 million o $100 million Revolver borrowings -
Slide 10: Well Intervention: Dynamically Positioned for Growth
10 WELL INTERVENTION Dynamically Positioned for Growth
Slide 11: Well Intervention Overview
Well Intervention Overview Well intervention involves entering a wellbore in order to initiate, maximize or abandon production across the life of a well.
Slide 12: Intervention Needs Rise with Well Count and Age
Intervention Needs Rise with Well Count and Age Source: Quest Offshore Resources Subsea wells installed base (2002 - 2012) Installed subsea completion base over 5 yrs old Installed subsea completion base 5 yrs or younger Note: Total installed base includes all subsea well completions from 1990, not
Slide 13: What Sets Helix Apart in Well Intervention
What Sets Helix Apart in Well Intervention • The Helix fleet pioneered modern deepwater well intervention techniques o MSV Seawell , the industry’s first dedicated monohull light well intervention vessel o MODU Q4000 , the industry’s first semi-submersible vessel dedicated to riser- deployed well in
Slide 14: Seawell LWI Vessel - Category A
Accommodation (122) & project offices 18-man saturation (2) ROVs Active heave-comp derrick Twin crane & well services spread: • Slickline • E-line • Pumping • Well test 114m Seawell LWI Vessel - Category A
Slide 15: Well Enhancer LWI Vessel - Category A+
Well services spread: • Slickline • E-line • Pumping • Well test • Coiled Tubing Active heave-comp tower, crane, riser handling & skidding system 18-man saturation (2) ROVs Accommodation (120) & project offices 132m Well Enhancer LWI Vessel - Category A+
Slide 16: Q4000 DP3 MODU Semi-sub - Category B
4,000 mT variable main deck load Well Services spread: • Slickline • E-line • Pumping • Well test • Coiled tubing Active heave-comp tower, crane, riser handling & skidding system • Multi-purpose tower lifting capacity 600 mT • Active and passive heave-comp • 360 mT Huisman crane with 10,000 ft capac
Slide 17: Q-Plus Semi-sub (under construction) - Category B
Q-Plus Semi-sub (under construction) - Category B Q4000 learning curve benefits, such as: • Greater capabilities / more tasks / less utilization risk • Better motion stability for riser work • Larger deck area / better general arrangement • Easier ship-to-ship transfers and crew changes • Enhanced p
Slide 18: Subsea Intervention Lubricators (SILs)
7 3/8” SIL in the Well Enhancer Tower 5 1/8” SIL in the Seawell Derrick Subsea Intervention Lubricators (SILs)
Slide 19: Future Well Intervention Growth
Q4000 Cat B Semi In Service - GoM Q-Plus Cat B Semi Under Construction Seawell Cat A Monohull In Service - North Sea Cat A Monohull North Sea Market Cat A Monohull West Africa Market SILs In Service - SE Asia Brazil: Market for potential assets Asia Pacific: Market for potential assets Well Enhancer
Slide 20: Robotics: Expanding the Fleet to Meet Growing Demand
20 ROBOTICS Expanding the Fleet to Meet Growing Demand
Slide 21: Robotics Overview
Robotics Overview • Helix provides ROVs and crews to perform subsea tasks, including: o Umbilical and flowline trenching services o Geotechnical coring o Comprehensive workclass ROV services o Dynamically positioned ROV support vessels o Tooling and intervention services o Technical manpower and pro
Slide 22: What Sets Helix Apart in Robotics
What Sets Helix Apart in Robotics Support vessels Helix charters its ROV support vessels, ensuring a modern fleet that can expand and contract based on regional requirements Modern ROV fleet Helix operates advanced vehicles, including several units custom- built to our specifications Seabed expertis
Slide 23: Robotics Assets
Robotics Assets • 45 Work-class ROVs - the backbone of the fleet, capable of performing a broad array of subsea construction and well intervention tasks • 4 Trenching ROVs - key to pipeline installation in heavily-trafficked waters • 2 Coring ROVs (ROVDrills) - provide seabed composition intelligenc
Slide 24: Future Robotics Growth
Future Robotics Growth • Additional work-class ROVs for current and emerging markets • Newbuild charter vessels optimized for renewable energy markets, as well as oil and gas markets • Trenching ROVs for burial operations worldwide • ROVDrill seabed coring units for energy and mining industries T120
Slide 25: Subsea Construction Assets
DP S-Lay Vessel Caesar Caesar’s onboard pipe welding and testing capability allows the vessel to lay virtually unlimited lengths of pipe up to 30” in diameter DP Reel Lay Vessel Express Dual-reel pipelay and subsea construction vessel has an extensive track record of field installation projects arou
Slide 26: Production Facilities
Independence Hub Semi (20%) • Location: Mississippi Canyon 920 • Depth: 8,000 ft. • Production capacity: o 1 BCFD Marco Polo TLP (50%) • Location: Green Canyon 608 • Depth: 4,300 ft. • Production capacity: o 120,000 BOPD o 300 MMCFD Helix Producer I FPU • Location: Helix’s Phoenix field (GC 237) • P
Slide 27: Looking Forward - Contracting Services
Looking Forward - Contracting Services Planned • (3) Grand Canyon ROV support vessels • T1200 Trenching ROV • XLS and UHD Work-class ROVs • Intervention Riser Systems • Q-Plus Intervention vessel (2015) Under Consideration • Additional Robotics assets • LWI vessels • Intervention Riser Systems • 201
Slide 28: Oil & Gas: Helix is a Gulf of Mexico Oil and Gas Producer
28 OIL & GAS Helix is a Gulf of Mexico Oil and Gas Producer
Slide 29: Helix is Not a Traditional E&P Company
Traditional E&P Company Strategy Helix E&P Strategy Significant finding costs / lease sales Acquired interests in established fields and basins Significant exploration costs and risk Exploitation / well intervention Use of Helix service assets for value creation Significant development costs Free ca
Slide 30: Oil & Gas Business
Oil & Gas Business • Our proven ability to exploit reserves in a cost-effective manner leads us to believe there is additional potential in our existing asset base • Current oil & gas assets are expected to generate in excess of $1 billion in pre-tax free cash flow over the next 5 years, helping fun
Slide 31: Appendix
APPENDIX 31
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDAX ($ amounts in millions) We calculate Adjusted EBITDAX as earnings before net interest expense, taxes, depreciation and amortization and exploration expense. These non-GAAP measures are useful to investors and other internal and external users of our financia
Slide 33: Well Intervention Vessel Categories
Well and Drilling Services Seawell Category A Well Enhancer Category A+ Q4000 Category B Drilling Vessel Category C SILs SIL or Intervention Riser Intervention Riser Marine Riser Wireline Coiled tubing Top hole TTRD or coiled tubing Slim bore Open water completions Well test / clean-up Full drilling
Slide 34: Well Services
Wireline Coiled Tubing E-line reservoir / annulus Cement plug placement-reservoir / intermediate / shallow Well perforating-tubing / casing Fishing DHSV repair Gas lift valves SSSV / sleeve insets / storm chokes Sand screen repair Fishing Zone isolation / re-perforating Gauge cutting Scale squeeze /
Slide 35: Follow Helix ESG on Twitter and LinkedIn
Follow Helix ESG on Twitter: www.twitter.com/Helix_ESG Join the discussion on LinkedIn: www.linkedin.com/company/helix
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