Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q3 2012 Earnings Presentation
28 slides from Helix Energy Solutions's earnings presentation, Oct 23, 2012
Slide 1: Third Quarter 2012 Conference Call
October 23, 2012 Third Quarter 2012 Conference Call
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” w
Slide 3: Presentation Outline
* Presentation Outline Executive Summary Summary of Q3 2012 Results (pg. 4) Operational Highlights by Segment Contracting Services (pg. 9) Oil & Gas (pg. 14) Key Balance Sheet Metrics (pg. 18) 2012 Outlook (pg. 21) Non-GAAP Reconciliations (pg. 26) Questions & Answers Talisman Xmas tree recovered by
Slide 4: Executive Summary
Executive Summary *
Slide 5: Executive Summary
Executive Summary * ($ in millions, except per share data) (A) See non-GAAP reconciliation on slide 26 Revenues Gross Profit: Operating Contracting Services Impairments Oil & Gas Impairments ARO Overruns / Increases Exploration Expense Total Net Income Diluted Earnings Per Share Adjusted EBITDAX (A)
Slide 6: Executive Summary
* Executive Summary Q3 2012 EPS of $0.14 per diluted share compared with $0.42 per diluted share in Q2 2012 Pre-tax loss on sale, the Intrepid, totaling $12.9 million Pre-tax impairment charge of $4.4 million taken to reduce the book value of our well intervention assets in Australia to their estima
Slide 7: Executive Summary Oil and Gas (continued)
* Executive Summary Oil and Gas (continued) Avg realized price for oil of $98.57 / Bbl ($107.51 / Bbl in Q2 2012), inclusive of hedges Avg realized price for gas of $5.69 / Mcfe ($5.76 / Mcfe in Q2 2012), inclusive of hedges Gas price realizations benefited from sales of natural gas liquids NGL prod
Slide 8: Operational Highlights
* Operational Highlights
Slide 9: Contracting Services
* ($ in millions, except percentages) See non-GAAP reconciliation on slides 26-27. Amounts are prior to intercompany eliminations. Before gross profit impact of $4.4 million asset impairment charge related to held-for-sale well intervention assets in Australia in Q3, and the $14.6 million asset impa
Slide 10: Contracting Services – Well Ops
* Contracting Services – Well Ops GOM Q4000 100% utilized during Q3 Intervention riser system #2 successfully deployed from the drill rig, Ocean Victory, for 55 days during the third quarter Full backlog thru 2014, with strong customer interest beyond Strong customer interest in Helix 534 for scope
Slide 11: Contracting Services – Robotics
* Contracting Services – Robotics 98% chartered vessel utilization, 73% utilization for ROVs, trenchers, ROVDrills Chartered two spot vessels in addition to utilizing the Deep Cygnus and Island Pioneer on trenching projects in the North Sea Two work class ROVs placed into service in Q3; one of which
Slide 12: Contracting Services – Subsea Construction
* Contracting Services – Subsea Construction Contracting Services – Subsea Construction Express had 94% utilization in Q3 working in the North Sea before transiting back and working in the GOM Caesar had 91% utilization in Q3 working in Mexico’s Bay of Campeche on accommodations project which contin
Slide 13: Contracting Services Utilization
* Intrepid (1) Express Caesar Olympic Canyon (2) Island Pioneer (2) Deep Cygnus (2) Olympic Triton (2) (3) spot vessels (2) Seawell Well Enhancer Q4000 47 ROVs 2 ROVDrill Units 4 Trenchers (1) Intrepid was cold stacked in Q3 2012 until it was sold in September. Vessel excluded from Q3 2012 utilizati
Slide 14: Oil & Gas Financial Highlights
* Financial Highlights ($ in millions, except production and price data) Third quarter decommissioning overruns (ARO increases) of $3.9 million and $6.0 related to GOM properties and our only non-domestic oil and gas property in the North Sea, respectively. Second quarter 2012 decommissioning overru
Slide 15: Oil & Gas Operating Costs
* Oil & Gas Included accretion expense. Excluded exploration expense and net hurricane-related costs (reimbursements). Included $8.4 million related to a weather derivative contract (catastrophic bond) for each of Q3 2012 and Q3 2011. Operating Costs ($ in millions, except per Boe data) DD&A (A) Ope
Slide 16: Summary of October 2012 – Dec 2013 Hedging Positions
* Summary of October 2012 – Dec 2013 Hedging Positions * *As of October 19, 2012
Slide 17: Key Balance Sheet Metrics
* Key Balance Sheet Metrics
Slide 18: Debt and Liquidity Profile
* Debt and Liquidity Profile Liquidity of approximately $1.0 billion at 9/30/2012 ($ amounts in millions) Includes impact of unamortized debt discount under our convertible senior notes. Liquidity, as we define it, is equal to cash and cash equivalents ($584 million), plus available capacity under o
Slide 19: Debt Maturity Profile
Debt Maturity Profile * Total funded debt of $1.2 billion at end of Q3 2012 consisting of: $358 million Convertible Senior Notes – 3.25%(A) ($324 million net of unamortized debt discount) $369 million Term Loans - LIBOR + 3.50% on $272 million, and LIBOR + 2.75% on $97 million $100 million Revolver
Slide 20: 2012 Outlook
* 2012 Outlook
Slide 21: 2012 Outlook
* 2012 Outlook Broad Metrics 2012 Outlook (revised) 2012 Outlook (original) 2011 Actual Oil and Gas Production 6.6 MMboe 7.5 MMboe 8.7 MMboe EBITDAX >$600 million ~$600 million $669 million CAPEX ~$545 million ~$445 million $229 million Commodity Price Deck Commodity Price Deck 2012 Outlook (revised
Slide 22: 2012 Outlook – Contracting Services
* 2012 Outlook Contracting Services Significant backlog totaling $700 million at the end of Q3 ($175 million expected to be completed in Q4 2012) Full backlog for the Q4000, Well Enhancer and Seawell through 2013 Q4000 full backlog thru 2014, with strong customer interest beyond Significant customer
Slide 23: 2012 Outlook – Oil and Gas
* 2012 Outlook Oil and Gas Forecasted 2012 overall production of approximately 6.6 MMboe, including Danny II (Bushwood field) expected to commence production soon Nancy gas well (Bushwood field) now completed and expected to commence production in 1H 2013 Wang well (Phoenix field) expected to commen
Slide 24: 2012 Outlook - Capex
* 2012 Outlook - Capex Capital Expenditures Contracting Services (~$370 million) Q5000 new build (approximately $130 million of capex in 2012) Approximately $65 million incurred thru Q3 Newly acquired Helix 534 continues conversion into a well intervention vessel in Singapore Estimated $180 million
Slide 25: Non-GAAP Reconciliations
* Non-GAAP Reconciliations
Slide 26: Non-GAAP Reconciliations
* Non-GAAP Reconciliations We calculate Adjusted EBITDAX as earnings before net interest expense, taxes, depreciation and amortization and exploration expense. These non-GAAP measures are useful to investors and other internal and external users of our financial statements in evaluating our operatin
Slide 27: Non-GAAP Reconciliations
* Non-GAAP Reconciliations ($ in millions) Revenues Contracting Services Production Facilities Intercompany elim. – Contracting Services Intercompany elim. – Production Facilities Revenue as Reported Gross Profit Contracting Services Production Facilities Intercompany elim. – Contracting Services In
Slide 28: 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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