Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q3 2016 Earnings Presentation
26 slides from Helix Energy Solutions's earnings presentation, Oct 20, 2016
Slide 1: Third Quarter 2016 Conference Call
HELIX ENERGY SOLUTIONS Third Quarter 2016 Conference Call October 20, 2016 Navigating the present, focusing on the future.
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains fear tool statements that ol risks, uncertainties sand assumptions th thes ou couse our results to implied by suc other statements of! historical act, are "forwant- ‘ooking: statements: wat em meaning of the "priae Secure | iBigation fm Act of 199
Slide 3: Presentation Outline
Presentation Outline e Executive Summary (pg. 4) ¢ Operational Highlights by Segment (pg. 8) e Key Financial Metrics (pg. 15) e 2016 Outlook (pg. 18) e Non-GAAP Reconciliations (pg. 24) e Questions & Answers sa ant Schilling ROV on Grand Canyon It Navigating the present, focusing on the future.
Slide 4: Executive Summary
Executive Summary
Slide 5: Executive Summary
Executive Summary (Sin millions, except per share data) Revenues Gross profit Net income (loss) Diluted earnings (loss) per share ‘Adjusted EBITDA’ Business segments Corporate, eliminations and other Adjusted EBITDA Three Months Ended 9/30/2016 $ 161 $ 40 25% $ "1 $0.10 $ 57 10) $ 47 9/30/2015 $ 182
Slide 6: Executive Summary: Operations
Executive Summary Operations © Q3 2016 net income of $11 million, $0.10 per diluted share, compared to Q2 2016 net loss of $11 million, $(0.10) per diluted share © Q3 2016 Adjusted EBITDA! of $47 million compared to Adjusted EBITDA of $15 million in Q2 2016 © Well Intervention - Q3 2016 = Utilizatio
Slide 7: Executive Summary: Balance Sheet
Executive Summary Balance Sheet . . Liquidity: of approximately $499 million at 9/30/16 Net proceeds of approximately $58 million associated with the at-the-market (‘ATM") equity offering programs completed in Q3 2016; as of September 30, 2016 we sold approximately 13 million shares of our common st
Slide 8: Operational Highlights
Operational Highlights
Slide 9: Business Segment Results
Business Segment Results ($in mitions) Revenues Production Facilities intercompany elimination Total Gross profit (oss) Well Intervention Robotics Production Facilities Elimination and other Total Three Months Ended Third Quarter 2016 9730/2016 6/30/2016 + 76% utilization across the well interventio
Slide 10: Well Intervention - GOM
Well Intervention - GOM Gulf of Mexico © Q4000 93% utilized in Q3 2016; downtime associated with repairs and preventive maintenance on topside equipment © 25000 on contract with BP utilized 84% in Q3 2016; experienced 15 days zero rates during downtime for repairs to IRS system and topside equipment
Slide 11: North Sea
North Sea © Seawell 98% utilized in Q3 2016 in intervention and diving operations; successful reactivation of all systems post refit Well Enhancer 91% utilized in Q3 2016 performing intervention and diving operations, including successful coil tubing project completed in July; idle for 8 days in the
Slide 12: Well Intervention - Brazil
Well Intervention - Brazil Brazil Siem Helix | completed the installation a topside equipment and sea trials in early Augus! © Vessel transited to Brazil in late August; completed importation and naval certification in September Siem Helix | in process of customer acceptance protocol and customer eq
Slide 13: Robotics
Robotics © 81% chartered vessel fleet utilization in Q3 2016; 57% utilization for ROVs, trenchers and ROVDrills © Deep Cygnus had 85 days of utilization during Q3 2016 including 60 days for trenching scopes for various clients, 11 days of IRM projects and 14 days ona decommissioning project in the N
Slide 14: Utilization
Utilization 100% 03 2016 m2 2016 = 03 2015 + Olympic Canyon’ a pov units ‘Sa Consctor + Deep Cygnus + Seaw * Grand Canyon’ + 5 Trencher * Wl emancer Grand Canyon i+ + 50008 + REM Installer’? + Hele 534° pot vessels ‘chartered vessel “essl ture to owner in November 2015 Svessel entered at ‘vessel sta
Slide 15: Key Financial Metrics
Key Financial Metrics és &
Slide 16: Debt Instrument Profile at 9/30/2016
Debt Instrument Profile 1 ‘li Debt Instrument Profile at 9/30/2016 Total funded debt! of $698 million at end of Q3 Principal Payment Schedule (sinmiions) © $185 million Convertible Senior Notes due 2032 - 3.25%? $500 © $225 million Term Loan ~ LIBOR + 4.00%? yu 400 + Annual amortization payments of
Slide 17: Debt & Liquidity Profile
Debt & Liquidity Profile+ $2,000 (Sin millions) $1,200 2 $1,500 $1,338 $1,338, $1,138 e 186 $1,002 1 fs & en: ey $749 e $678 sox HB 3305 sss gsa7 $300 255 196 cm $0 12/31/2008 12/31/2009, 12/31/2010 12/31/2011. 12/31/2012. 12/31/2013 12/31/2018 12/31/2015. 09/30/2016 Debt ? $1,000 Liquidity > $500 M
Slide 18: 2016 Outlook
2016 Outlook
Slide 19: 2016 Outlook: Forecast
2016 Outlook: Forecast (Sinmitions) 2016 2015 Outlook Actual Revenues $ ~505$ 696 Adjusted EBITDA ~100- 110 173 Capital Spending ~ 220 353 Revenue Split: Well intervention $ ~300 $ 373 Robotics ~165 301 Production Facilities ~75 76 Elimination 35) (54) Total $ 505 § 696
Slide 20: 2016 Outlook: Well Intervention
2016 Outlook: Well Intervention © Total backlog as of September 30, 2016 was approximately $1.9 billion © The Q4000 has high utilization for the remainder of 2016; drydock currently scheduled for Ql 2017 The Q5000 is under contract IRS #1 is actively marketed as a rental unit, but currently idle © T
Slide 21: 2016 Outlook: Robotics
2016 Outlook: Robotics We currently have ~120 days of firm contracted work for two of our chartered vessels for Q4 2016 performing trenching projects Grand Canyon to be fully utilized through early December on a longer term trenching project Deep Cygnus will continue to perform its ongoing trenching
Slide 22: 2016 Outlook: Capital Spending
2016 Outlook: Capital Spending 2016 Capital Spending? is currently forecasted at approximately $220 million, consisting of the following: * $94 million for Q7000 $214 million in growth capital, primarily for newbuilds currently underway, including: $96 million for Siem Helix 1 and Siem Helix 2 monoh
Slide 23: 2016 Outlook: Balance Sheet
2016 Outlook Balance Sheet © Completed two separate at-the-market (ATM) equity programs during Q2-Q3 and sold 13,018,732 shares of our common stock for a cumulative $100 million in gross proceeds. Proceeds will be used for general corporate purposes which may include debt repayment. © Ourtotal funde
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Navigating the present, focusing on the future
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($n mitions) Three Months Ended Nine Months Ended Twelve Months Ended 9/30/2016 9/30/2015 6/30/2016 9/30/2016 9730/2015 1213172015 Net income (loss) 8 Tr) 10 68 anys en $s 27 8 7) ‘Adjustments: heer x rciaion ape) 4 : 4) (10) 1 (101) Net interest expen 7 9 7 25 18 27 Cher fn
Slide 26: Helix Energy Solutions
HELIX ENERGY SOLUTIONS HLX Listed NYSE® Follow Helix on Twitter - @Helix_ESG www.linkedin.com/company/helix-energy- solutions-group Navigating the present, focusing on the future
Helix Energy Solutions Group — Q3 2016 Earnings Presentation on 6ix