Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q4 2016 Earnings Presentation
27 slides from Helix Energy Solutions's earnings presentation, Feb 21, 2017
Slide 1: Fourth Quarter 2016 Conference Call
HELIX ENERGY SOLUTIONS Fourth Quarter 2016 Conference Call February 21, 2017 Navigating the present, focusing on the future.
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains fear tool statements that ol risks, uncertainties sand assumptions th thes oul couse our results to dif implied by suc statements of historical act, are Torwar Hoag statements: wat em meaning of the "priae Secure | iiboton fm Act of 1995, tnt wit
Slide 3: Presentation Outline
Presentation Outline e Executive Summary (pg. 4) ¢ Operational Highlights by Segment (pg. 8) e Key Financial Metrics (pg. 15) © 2017 Outlook (pg. 19) e Non-GAAP Reconciliations (pg. 25) 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 milion, except per share data) ‘Three Months Ended ‘Twelve Months Ended 12/31/2016 12/31/2015 9/30/2016 12/31/2016 _ 12/31/2015 Revenues $ 128 $ 158 $§ 161 $ 488 $$ 696 Gross profit (loss) $ 1 20 $ 9” § a” $1 14% 13% 25% 10% 16% Asset impairments : (345) : - (345) Total $ 18 $
Slide 6: Executive Summary
Executive Summary Operations © Q4 2016 net loss of $54 million, $(0.46) per diluted share, compared to Q3 2016 net income of $11 million, $0.10 per diluted share; results were impacted by the following non-cash pre-tax charges: © Goodwill impairment charge of $45.1 million associated with our Roboti
Slide 7: Executive Summary: Balance Sheet
Executive Summary Balance Sheet © Liquidity? of approximately $376 million at 12/31/16 ($595 million pro forma for our public equity offering completed in January 2017) Refinanced $125 million of Convertible Senior Notes due 2032 with issuance of $125 million of Convertible Senior Notes due 2022 © C
Slide 8: Operational Highlights
Operational Highlights
Slide 9: Fourth Quarter 2016 Segment Results
(Sin mitions) Production Facilities, Intercompany elimination otal Gross profit (loss) Well Intervention Robotics. Production Facilties Elimination and other Total Three Months Ended 12/31/2016 12/31/2015 73 $ 89 $ a 62 18 18 (10) (11) 128 $ 158 $ 10 12% 12 13% (1) -1% 2 4% 9 7 38% : (1) 18 14% § 20
Slide 10: Well Intervention - GOM
Well Intervention - GOM Gulf of Mexico © Q5000 remains on contract; utilized 84% in Q4 2016 due to 15 days of downtime at zero rates for repairs to IRS system and topside equipment © 24000 100% utilized and performed with excellent operational efficiency in Q4 2016 Helix 534 was sold in late Decembe
Slide 11: North Sea
North Sea Well Enhancer 78% utilized in Q4 2016, completed last project early December; vessel remained idle for remainder of December during which time commenced dry dock for regulatory survey (completed early January) Seawell 47% utilized in Q4 2016, completed last project early November; vessel r
Slide 12: Well Intervention - Brazil
Well Intervention - Brazil Brazil Siem Helix 1 continued with Petrobras inspection, including agreed-upon modifications © Siem Helix 1 expected to be placed in service in late QL 2017, subject to Petrobras acceptance testing © Siem Helix 2 under construction during Q4 2016; Topside equipment install
Slide 13: Robotics
Robotics 68% chartered vessel fleet utilization in Q4 2016; 47% utilization for ROVs, trenchers and ROVDrills Deep Cygnus had 69 days of utilization during Q4 2016 including ~40 days for trenching project in Egypt and 27 days for trenching projects and 2 days for IRM work in the North Sea Grand Cany
Slide 14: Utilization
Utilization 100% mQ4 2016 03 2016 = Q4 2015 RoVs and Trenches : Sa Constr + Folie 534° iChartered vessel ‘esse tuned to owner n Nove 2015 entered fleet in late April 2015 ‘vessel entered feet ate Saber 2015 ‘Nest odin December ly 2006 rv Navigating the aaa ing ™ ” ~™ r is + Olympic Canyon'* + 52 + D
Slide 15: Key Financial Metrics
Key Financial Metrics és &
Slide 16: Debt Instrument Profile
Debt Instrument Profile Total funded debt! of $657 million at end of Q4 © $60 million Convertible Senior Notes due 2032 - 3.25%? $125 million Convertible Senior Notes due 2022 - 4.25% © $192 mi n Term Loan ~ LIBOR + 4.50% © Annual amortization payments of 10% © $83 million MARAD Debt - 4.93% © Semi-
Slide 17: Debt & Liquidity Profile
Debt & Liquidity Profile+ $2,000 (Sin millions) $1,200 ° oe $1,500 x $900 $1338 $1338 * 2 ra 3 3 3 8 $1,000 = $500 $1,138 e 1,067} $1,002 $946 $600 $749 $626 $592 Ti cscs sss gsay $300 255 269 ‘dd $61 12/31/2008 12/31/2009, 12/31/2010 12/31/2011. 12/31/2012. 12/31/2013 12/31/2018 12/31/2015. 12/31/2
Slide 18: Debt & Liquidity Profile (Pro Forma)
$2,000 $1,200 ($ in millions) r $1,500 $1338 $1,338, $1,138 1/067} $1,002 $946. $626 3592 IM cscs gssa ges $300 255 $76 sea 550 $0 12/31/2008 12/21/2009" 32/31/2010 12/33/2033 12/31/2012. 12/21/2012. 32/31/2018 12/31/2035 12/21/2016 Debt? 8 Liquidity * $1,000 $500 MMNELT Debt mEMENet Debt ~@-Liquidi
Slide 19: 2017 Outlook
2017 Outlook
Slide 20: 2017 Outlook: Forecast
2017 Outlook: Forecast Outlook Actual Revenues ~575 488 EBITDA ~ 120-140 90 CAPEX ~ 200 189 Revenue Split: Well Intervention $ 390 $ 2904 Robotics 150 161 Production Facilities 65 72 Elimination 30) 39) Total ~575 488 Key forecast assumptions: + Siem Helix 1 start-up in late Q1 2017 + Siem Helix 2 s
Slide 21: 2017 Outlook: Well Intervention
2017 Outlook: Well Intervention Total backlog as of December 31, 2016 was approximately $1.9 billion The Q4000 has high utilization forecasted for 2017; vessel estimated to be out of service for approximately 45 days, starting late first quarter, to carry out ABS regulatory dry dock; the estimated 4
Slide 22: 2017 Outlook: Robotics
2017 Outlook: Robotics ¢ Utilization for our Robotics fleet will be challenging in 2017, much like 2016 Seasonal factors will continue to significantly impact utilization during the winter months; expected improvement in utilization from late spring through late fall of 2017 e Chartered vessel fleet
Slide 23: 2017 Outlook: Capital Expenditures
2017 Outlook: Capital Expenditures 2017 Capital Expenditures? is currently forecasted at approximately $200 million, consisting of the following: Growth Capex - $185 million in growth capital, primarily for newbuilds currently underway, including: © $90 million for Q7000 © $75 million for Siem Helix
Slide 24: 2017 Outlook: Balance Sheet
2017 Outlook Balance Sheet © In Q1 2017 we received net proceeds of approximately $220 million associated with the public offering of approximately 26.5 million shares of our common stock; proceeds will be used for general corporate purposes, which may include debt repayment © Our total funded debt
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Navigating the present, focusing on the future
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations (Sin millions) Three Months Ended ‘Twelve Months Ended 12/31/2016 12/31/2015 9/30/2016 12/31/2016 12/31/2015 Net income (loss) $ (64) $ (404) $ WW $ (1) $ (377) Adjustments Income tax provision (benefit) @) (102) 4 (12) (101) Netinterest expense 6 9 7 31 27 Loss on repurchas
Slide 27: 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 — Q4 2016 Earnings Presentation on 6ix