Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Capital One Southcoast Energy Conference (December 2009)
32 slides from Helix Energy Solutions's conference presentation, Dec 7, 2009
Slide 1: Capital One Southcoast Energy Conference
Capital One Southcoast Energy Conference Well Enhancer and Seawell intervention vessels in Aberdeen, Scotland December
Slide 2: 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 statements that could be deemed “forward-looking statements
Slide 3: Helix Energy Solutions Group and presenters
Helix Energy Solutions Group provides life-of-field services and development solutions to offshore energy producers worldwide. Helix actively reduces finding and development costs through a unique mix of offshore production assets, service methodologies, and highly skilled personnel. Anthony Tripodo
Slide 4: Transforming the Business Model
Historical Profile • Deepwater subsea contracting • Deepwater well intervention • Robotics • Oil and gas • Deepwater • Shelf • Offshore production facilities • Shelf contracting (Cal Dive) • Reservoir evaluation and consulting The Future • Deepwater contracting services • Well Intervention • Robotic
Slide 5: Global Subsea Capex Forecast
US$21.4bn US$63.3bn 195% Increase Global Subsea Capex Forecast Source: Quest Offshore Resources Subsea Database, November 2009
Slide 6: Helix ESG Business Segments
Production Facilities Marco Polo TLP (50%) Independence Hub Semi (20%) Helix Producer I (~87%) (2010) Subsea Construction Pipelay Intrepid Express Caesar- new to fleet ROV 39 ROVs ROV Drill Units 5 Chartered Vessels 5 Trenchers (200 - 2000hp) Well Intervention Q4000 Seawell Well Enhancer- new to fle
Slide 7: Helix ESG Contracting Services
Helix ESG Contracting Services Caesar departing for sea trials, Nantong, China
Slide 8: Services for Each Stage of the Field Life Cycle
Services For Each Stage of the Field Life Cycle
Slide 9: Well Intervention Assets
MODU DP3 Q4000 MSV DP3 Well Enhancer Helix provides well operation and decommissioning services with the Seawell riserless well intervention vessel, the flagship Q4000 semisubmersible, the Well Enhancer wireline / slickline / coiled tubing intervention vessel, and the Subsea Intervention Lubricator
Slide 10: Subsea Construction Vessels
DP Reel Lay Vessel Express DP S-Lay Vessel Caesar DP Reel Lay Vessel Intrepid Caesar’s onboard pipe welding and testing capability allows the vessel to lay virtually unlimited lengths of pipe up to 36” in diameter. Helix’s flagship pipelay and subsea construction vessel has established an extensive
Slide 11: Contracting Services Facilities
Contracting Services Facilities Ingleside, Texas shore base facility – Pipe stalk length 5,230 feet – Onsite jumper and manifold fabrication – 300’ x 700’slip can accommodate two Helix Subsea Construction vessels side by side – Welding of Helix Danny 36-mile 8 x 12-inch pipe-in-pipe began early Augu
Slide 12: Helix ROV Systems
Helix is an industry leading provider of ROV and subsea trenching services to deepwater operators worldwide. The Helix ROV fleet consists of 39 vehicles, covering the spectrum of deepwater construction services. The 600 hp Supertrencher II system is designed to operate at water depths in excess of 6
Slide 13: ROV/Construction Support Vessel Fleet
Island Pioneer Olympic Triton Olympic Canyon Seacor Canyon Northern Canyon Chartered support vessels allows Helix to adjust the size and capability of its fleet to cost-effectively meet industry demands. ROV/Construction Support Vessel Fleet
Slide 14: Helix Producer I FPU
• Installation completed of Disconnectable Turret System (DTS) receptacle, external thruster porches, cranes and all production modules • DTS buoy installed on location by Q4000 • Installation of 2,500-ton production modules completed; module interconnection underway • Expect deployment in Phoenix f
Slide 15: Helix Oil & Gas
Gunnison platform, Gulf of Mexico Helix Oil & Gas
Slide 16: ERT Deepwater Portfolio
Legend: Producing Field Under Development Discovery Prospect Gunnison Bushwood ERT Deepwater Portfolio Phoenix Interests in 47 Deepwater Blocks -13 Developed, 34 Undeveloped BCFE Proved Reserves- 32 MMCFE Net Daily Production 2.7 Net TCFE Un-Risked Reserve Potential, 1.0 TCFE Risked Internal Prospec
Slide 17: O&G 2008 Reserve Report Highlights
• Proven Reserve, Undiscounted Future Net Revenues: $2.6 billion Undiscounted, Discounted PV-10: $1.9 billion (pre-tax) • 665 Bcfe Proved Reserves – 379 Bcfe deepwater, Bcfe shelf, 13 North Sea – Proved Developed / PUD Ratio - – Natural Gas / Oil Mix - 70/30 • Discoveries and Extensions resulted in
Slide 18: Helix Outlook
Helix Outlook Helix Producer I topside module installation progress at Kiewit Offshore Services fabrication yard
Slide 19: Outlook
Outlook • Contracting Services demand in 2H 2009 has softened, as expected • Express dry-dock, transit and utilization on Helix Danny pipeline is impacting external revenues • Capital expenditures of approximately $340 to $360 million for 2009, $209 million spent year-to-date • $205 million relates
Slide 20: Outlook (continued)
Outlook (continued) Oil and Gas • Production range: 43 - 47 Bcfe • Oil and gas prices • Without hedges: $4.37 /mcfe; $66.41 /bbl • With realized hedges and mark-to- market adjustments (gas only): $7.45 /mcfe; $70.91 /bbl HPI transfer buoy transit template
Slide 21: Significant Balance Sheet Improvements
Significant Balance Sheet Improvements Debt Liquidity* of $781 million at 9/30/09 * Defined as available revolver capacity plus cash
Slide 22: Liquidity and Capital Resources
Liquidity and Capital Resources • Company remains focused on its efforts to monetize non-core assets and businesses • Completed (≈ $600 million pre-tax): • Oil and gas assets • Bass Lite sale December 08 & January 09 ($49 million) • EC 316 sale in February 09 ($18 million) • Cal Dive • Sold a total
Slide 23: Liquidity and Capital Resources
Liquidity and Capital Resources Credit Facilities, Commitments and Amortization – $435 Million Revolving Credit Facility - UNDRAWN. • Facility extended to November 2012. • In July 2011, commitments reduced to $407 million. • $50 million of LCs in place. – $416 Million Term Loan B - Committed facilit
Slide 24: Financial Information
Financial Information Express spooling pipe at Ingleside Shore Base, Gulf of Mexico
Slide 25: Consistent Top-Line Growth
Note: Excludes Cal Dive and Helix RDS revenues from 2005-2009. See Non-GAAP reconciliations on slides 28-30. ($ amounts in millions) $575 $840 $891 $1,337 $1,152 Consistent Top-Line Growth
Slide 26: Earnings Per Share
- 2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead costs during the year. - 2007 results exclude the impact of the Cal Dive gain, impairments and other unusual items. - 2008 results exclude non-cash charges of $964 million for reduction in ca
Slide 27: Significant Cash Generation - EBITDAX
-2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead costs during the year. -2007 results exclude the impact of the Cal Dive gain, impairments and other unusual items. - 2008 results exclude non-cash impairments. -Excludes Cal Dive contribution.
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 29: Adjusted EBITDAX reconciliation
2005 = 2006 «= 2007. «2008» YTD 9/30/2009 (in mittions) Net income applicable to common shareholders. $ 150 $ 340 $ 312 $ (639) $ 158 Non-cash impairments 1 5 73 918 20 Gain on asset sales ) (99) (148) (74) (68) Preferred stock dividends 2 3 4 3 54 Income tax provision 15 131 103 or 116 Net interest
Slide 30: Reconciliation to Normalized EPS
HELIX rn Brcr suns cout 2005 2006 2007 2008 + YTD 9/30/2009 Reconciliation to Normalized EPS: {in millions, except earnings per share) Net income applicable to common shareholders $ 150 $ 340 $ 312 $ (639) $ 158 Preferred stock dividends and accretion 2 3 4 - 1 Gain on subsidiary equity transaction
Slide 31: Helix ESG revenue reconciliation
HELIX ENERGY SOLUTIONS GROUP 2005 2008 2007 2008 © YTD 9/30/2009 (in millions) Revenue As Reported $ 794 $1,328 $ 1,732 $114 $1,282 Less: Cal Dive (219) (488) (680) 77) (391) Helix ESG Revenues Soe SOS SS SOT
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Helix Energy Solutions Group — Capital One Southcoast Energy Conference (December 2009) on 6ix