Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Investor Presentation (December 2006)
19 slides from Helix Energy Solutions's investor presentation, Dec 15, 2006
Slide 1: 2007 Earnings Guidance Presentation
2007 Earnings Guidance Presentation
Slide 2: 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 historical fact, are statements that
Slide 3: Long Term Sustainable Growth
Long Term Sustainable Growth 2003 2004 2005 2006 2007 32.8 79.9 150 255 323 36 135 Net Income in Millions Range H E L I X E N E R G Y S O L U T I O N S Estimate Estimate
Slide 4: Key Variables
Key Variables (1) See GAAP reconciliation at www.HelixESG.com (2) No previous guidance disclosed
Slide 5: Two Stranded Strategy
Two Stranded Strategy Contracting Services & = Reduced Cyclicality (Steady Growth) And Superior Financial Returns H E L I X E N E R G Y S O L U T I O N S Oil & Gas Production
Slide 6: Near Term Strategic Initiatives
Near Term Strategic Initiatives H E L I X E N E R G Y S O L U T I O N S By: Grow Earnings by at least 25% Per Year for next three years, while maintaining debt within manageable levels1 Continuing to invest in Marine Assets that help lower field F&D costs Focusing on high value field exploitation ac
Slide 7: Impact of IPO of Minority Stake in Cal Dive
Impact of IPO of Minority Stake in Cal Dive Approximately 27% of subsidiary sold to public (excluding greenshoe share allotment). Total net proceeds will be around $345 million, including proceeds from subsidiary debt. Proceeds reduce net debt to book cap to 41% (45% including Cal Dive's dept, which
Slide 8: Continued Investment in Strategic Marine Assets
Continued Investment in Strategic Marine Assets Net IPO Proceeds $345 MM + 125 M = $470 M Earnings Impact in full year After introduction = $0.60 - $1.00/Share $160 MM $142 MM $140 MM $28 MM Seawell II Caesar Helix Producer I Robotic Assets $470 MM
Slide 9: 2007 Earnings Guidance Themes - Contracting Services
2007 Earnings Guidance Themes Contracting Services Introduction of Caesar in Q4 Pricing escalation, especially in the in deepwater and well intervention segments Avoidance of unplanned downtime for Q4000 and commencement of drilling program in 2H, after 75 day regulatory drydock Continuation of inte
Slide 10: 2007 Earnings Guidance Themes - Oil & Gas Production
2007 Earnings Guidance Themes Oil & Gas H E L I X E N E R G Y S O L U T I O N S Production growth to 90 BCFE mainly through PDNP and PUD conversion. The split of production volume between 1H/07 and 2H/07 is likely to be around 42%/58%. Commencement of production from first North Sea field-Camelot. L
Slide 11: 2008 Growth Drivers
Full year of contribution from Caesar Introduction of Seawell II in Q4 Introduction of Helix Producer I in Q3 Further international expansion by Cal Dive Production growth to > 105 BCFE with start up of Phoenix field in Q3, and Bass Lite in Q4 First production from Noonan, Bishop? Upside? Full year
Slide 12: 2009 and Beyond
Full year of contribution from Seawell II and Helix Producer I. Introduction of Q4500 - next generation Q4000 (subject to Board approval in 1H/07). Full year of production from Phoenix field should drive overall production to > 120 BCFE. Deepwater drilling portfolio upside. 2009 and Beyond H E L I X
Slide 13: Major Marine Capital Projects - Caesar
Major Marine Capital Projects - Caesar Recent Developments Signed conversion contract with COSCO Nantong Shipyard Co., Ltd., China Vessel is already DP2 and doesn't require the installation of any new thrusters and / or engines All long lead items on order and delivery on schedule Vessel has been ch
Slide 14: Major Marine Capital Projects - Seawell II
Recent Developments Signed shipyard contract with Merwede Shipyard (the Netherlands) in November 2006 Delivery date late 2008 Secured diving system Note (1): Seawell II to be renamed in January 2007 Major Marine Capital Projects - Seawell II(1) Specifications: DP3 Well Intervention Vessel Length of
Slide 15: Major Marine Capital Projects - HPI
Major Marine Capital Projects - HPI Formed 50/50 JV with KR ROMO to own DP2 offshore vessel ("Helix Producer I"; aka K5000) Conversion of Karl Train Ferry into HPI ongoing in Croatia Contract for External Riser Turret has been issued Long lead items for topsides facilities have been ordered Helix Pr
Slide 16: Major Marine Capital Projects - Q4500
Recent Developments Ordered thrusters and engines at cost of $23 MM Detailed design by GVA ongoing Model test scheduled for January 2007 Preparation of RFP for shipyard construction on schedule for January 2007 issue Several shipyards have expressed serious interest in building this asset On schedul
Slide 17: First Mature Property Acquired By ERT in North Sea
First Mature Property Acquired By ERT in North Sea H E L I X E N E R G Y S O L U T I O N S Classic ERT Deal involving assumption of abandonment liability Value will be created by Rejuvenation of existing production (Q1/07). Drilling and tie back of nearby PUD reserves (Q4/07). Expected case reserves
Slide 18: Why are we drilling the Noonan Prospect on a 100% basis?
Why are we drilling the Noonan Prospect on a 100% basis? H E L I X E N E R G Y S O L U T I O N S Simply because we have a favorable rig contract Cash cost to drill first well: $30 million at contracted rig rate $55 million at market rig rate Un-risked reserve potential 400 BCFE Intention is to sell
Slide 19: Helix Hedges - As Of December 14, 2006
Helix Hedges - As Of December 14, 2006 H E L I X E N E R G Y S O L U T I O N S
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