Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Corporate Update (November 2022)
40 slides from Helix Energy Solutions's corporate update, Nov 15, 2022
Slide 1: Helix Energy Solutions Company Update, November 2022
NOVEMBER 2022 Helix Energy Solutions Company Update
Slide 2: Forward-looking statements
Referencesinthispresentationto“our”or“Helix”meansHelixEnergySolutionsGroup,Inc.,togetherwithoursubsidiaries.Referencesin thispresentationto“Alliance”meansHelixAllianceDecom,LLC,awholly-ownedsubsidiaryofHelix.Thispresentationcontainsforward- lookingstatementsthatinvolverisks,uncertaintiesandassumptio
Slide 3: Helix Energy Solutions company snapshot
Helix Energy Solutions provides specialty services to the offshore energy industry with a focus on well intervention and robotics operations. Our services are centered toward and well positioned to facilitate global energy transition by maximizing production of remaining oil and gas reserves, decomm
Slide 4: Helix Company Overview
HELIX COMPANY OVERVIEW 4 •World's leading provider of both well intervention and subsea robotics technologies to offshore energy industry •Our core offerings represent sustainable solutions for Energy Transition •Our ability to help our customers achieve ESG successes provides long-term value to Hel
Slide 5: Energy Transition
ENERGY TRANSITION The three legs to our model establish Helix as a meaningful Energy Transition company with significant potential: Maximizing Remaining Reserves Abandonment and Decommissioning Offshore Renewables and Wind Farms Maximizing Remaining Reserves • Production Enhancement –continue assist
Slide 6: Why Choose Helix?
•Market leader in Well Intervention and Robotics/Trenching •Riser-based and riserless intervention capabilities •Increasing contribution of expanding offshore Renewables market •Expansion into the Gulf of Mexico shallow water decommissioning market •Geographically diverse scope of operations •Divers
Slide 7: Sustainability
SUSTAINABILITY “Safety, Sustainability and Value Creation –our core goals –support our vision as a preeminent offshore energy transition Company.”Owen Kratz, President and Chief Executive Officers Helix Energy Solutions Group, Inc. Sustainability continues to drive our business strategy and decision
Slide 8: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Environmental •Our business supports the responsible transition from a carbon based economy through a three pronged strategy of maximizing remaining oil and gas reserves, abandonment and decommissioning end of life wells and applying the techniques and technologi
Slide 9: Well Intervention
Helix Well Ops is a leader in rigless offshore well intervention, enabling our customers to maximize their remaining reserves and safely decommission their offshore fields Our purpose-built riser-based and riserlesswell intervention vessels and subsea systems operate worldwide to provide customer va
Slide 10: Well Intervention – Utilization
WELL INTERVENTION –UTILIZATION 59% 93% 92% 83% 88% 58% 74% 89% 86% 80% 88% 63% 40% 31% 9% 38% 63% 71% 38% 42% 44% 79% 99% 99% 99% 98% 100% 100% 72% 52% 87% 88% 99% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 20Q2 20Q3 20Q4 20Q1 21Q2 21Q3 21Q4 21Q1 22Q2 22Q3 22 Gulf of Mexico¹ North Sea / West Afr
Slide 11: What Sets Helix Apart in Well Intervention
•Fleet of seven purpose-built well intervention vessels •Both riser-based and riserless intervention systems •1,631 subsea well intervention 1 operations performed worldwide, includes production enhancement and abandonment operations •613 well abandonment 1 operations performed worldwide •Geographic
Slide 12: Helix Well Intervention Vessels & Assets
HELIX WELL INTERVENTION VESSELS & ASSETS Q4000 (Gulf of Mexico) Dynamically positioned class 3 (“DP3”) purpose-built semisubmersible vessel for well intervention, decommissioning and other subsea projects Q5000 (Gulf of Mexico) DP3 purpose-built semisubmersible vessel for well intervention, decommis
Slide 13: Subsea Services Alliance with Schlumberger
Subsea Services Alliance created in 2015 to combine the expertise and capabilities of Helix and Schlumberger Comprehensive subsea well construction, intervention and decommissioning portfolio •Helix provides marine support, operational expertise and project management capabilities •Schlumberger prov
Slide 14: Helix Robotics
Helix Robotics Solutions is a leading supplier of subsea engineering services, operating state of the art remote operated vehicles (ROVs), seabed trenchers and support/construction vessels Our deep-water ROV track record spans over 25 years, including oil & gas, renewable energy, construction servic
Slide 15: Helix Robotics Vessels & Assets
Grand Canyon II (Asia Pacific) A versatile and technically advanced DP3 multi-role construction support vessel Under charter agreement through December 2027 Grand Canyon III (North Sea) A versatile and technically advanced DP3 multi- role construction support vessel Under charter agreement through M
Slide 16: Robotics Utilization
ROBOTICS UTILIZATION 405 499 450 336 165 236 358 419 323 370 376 42 119 154 92 72 84 90 90 66 81 176 34% 34% 37% 32% 24% 36% 43% 38% 35% 53% 66% - 50 100 150 200 250 300 350 400 450 500 0% 10% 20% 30% 40% 50% 60% 70% Q1 20Q2 20Q3 20Q4 20Q1 21Q2 21Q3 21Q4 21Q1 22Q2 22Q3 22 Vessel Days¹ Trenching Days
Slide 17: What Sets Helix Apart in Robotics
•A fleet of advanced work-class ROVs and trenchers, including several unitscustom built to our specifications •Our subsea expertise in robotics is applicable to both the Oil and Gas and Renewables markets 1 •Leading provider for water jetting and mechanical cutting trenching solutions and ROV suppor
Slide 18: Shallow Water Abandonment
Shallow Water Abandonment includes Helix Alliance, a leading supplier of full-field decommissioning services to the Gulf of Mexico shelf Owned-fleet of Jones Act support vessels and equipment including liftboats, P&A spreads, OSVs, coiled tubing spreads, diving vessels and a heavy lift barge In addi
Slide 19: Helix Alliance Vessels & Assets
Liftboats Ten liftboats ranging in size up to 265 feet Dive Support Vessels Three dive support vessels P&A Spreads 14 Marketable P&A Spreads, with ability to scale up to 20 P&A Spreads HELIX ALLIANCE VESSELS & ASSETS Offshore Supply Vessels (OSVs) Six OSV’s ranging from 150 feet to 170 feet and one
Slide 20: Shallow Water Abandonment Utilization – Q3 2022
SHALLOW WATER ABANDONMENT UTILIZATION –Q3 2022 1 Vessels include ten liftboats, six OSVs, one crew boat, three diving support vessels and one heavy lift derrick barge 2 System utilization is based on 14 marketable P&A systems and six coiled tubing systems 72% 95% 86% 41% 0% 10% 20% 30% 40% 50% 60% 7
Slide 21: Helix Production Facilities
Helix Production Facilities includes the Helix Producer 1 floating production unit (FPU), which is operating under a production handling contract until at least June 1, 2023 The segment also includes the Helix Fast Response System and our ownership of the Gulf of Mexico wells and related infrastruct
Slide 22: Key Financial Metrics and Outlook
Key Financial Metrics and Outlook 22
Slide 23: Debt & Liquidity Profile
DEBT & LIQUIDITY PROFILE ($ in millions) 1 Cash includes cash and cash equivalents but excludes restricted cash at December 31, 2019 and 2021 and September 30, 2022 of $54million, $74 million and $3 million, respectively 2 Long-term debt through December 31, 2020 was net of unamortized discounts and
Slide 24: Debt Instrument Profile
DEBT INSTRUMENT PROFILE Total funded debt 1 of $271 million at 9/30/22 •$30 million Convertible Senior Notes due 2023 –4.125% •$200 million Convertible Senior Notes due 2026 –6.75% •$41 million MARAD Debt –4.93% •Semi-annual amortization payments through maturity in Q1 2027 $0 $50 $100 $150 $200 $25
Slide 25: Five Year Trend
Revenue Free Cash Flow 2 1 Helix Alliance revenue will be included for periods beginning July 1, 2022 (date of acquisition) 2 Adjusted EBITDA and Free Cash Flow are Non-GAAP financial measures, see non-GAAP reconciliations on slide 35 $581 $740 $752 $734 $675 $30 $29 $58 $22 $(62) ($80) ($60) ($40)
Slide 26: Revenue Dispersion
REVENUE DISPERSION 1 ($ IN MILLIONS) Geography Segments 68% 74% 73% 71% 74% 21% 17% 19% 21% 16% 11% 9% 8% 8% 10% $0 $200 $400 $600 $800 20172018201920202021 Well Intervention Robotics Production Facilities 49% 37% 40% 42% 34% 12% 28% 29% 28% 23% 27% 26% 26% 18% 15% 6% 19% 12% 9% 5% 6% 9% $0 $200 $40
Slide 27: 2022 Outlook: Forecast
2022 OUTLOOK: FORECAST 1 ($ in millions) 20222021 Outlook 1 Actual Revenues$ 785 - 860675 $ Adjusted EBITDA 2 100 - 12096 Free Cash Flow 2 (20) - 10132 Capital Additions 3 70 - 8017 Revenue Split: Well Intervention$ 480 - 515517 $ Robotics180 - 200137 Shallow Water Abandonment 1 105 - 120- Productio
Slide 28: 2022 Outlook – Well Intervention
2022 OUTLOOK –WELL INTERVENTION • Q4000 (Gulf of Mexico) –contracted work through Q4 with expected strong utilization during remainder of 2022 and into 2023 • Q5000 (Gulf of Mexico) – contracted work on the Shell multi-year campaign through remainder of 2022 and into 2023 • IRS rental units (Gulf of
Slide 29: 2022 Outlook – Robotics
• Grand Canyon II (Asia Pacific) –returning to Thailand in Q4 for contracted decommissioning and ROV support work; vessel expected to have strong utilization through remainder of 2022 • Grand Canyon III (North Sea) –continuing to perform seasonal trenching campaign for several customers expected thr
Slide 30: Outlook – Shallow Water Abandonment
• Offshore – expect stable utilization on seven to nine liftboats and variable seasonal utilization on OSVs and crew boat for remainder of 2022 • Energy Services – strong utilization for eight to 12 P&A systems and one to three coiled tubing systems expected for remainder of 2022 • Diving & Heavy Li
Slide 31: 2022 Outlook: Capital Additions & Balance Sheet
2022 Capital additions are forecasted at approximately $70 -$80 million: •Capital additions during Q3 approximated $13 million and included •Approximately $11 million for regulatory recertification costs, reported in operating cash flows •Approximately $3 million of capital expenditures for new prop
Slide 32: 2023 Outlook
•Continue momentum on the three legs of our Energy Transition business model: production maximization, decommissioning and renewables •Continued integration of Helix Alliance and full-field abandonment capabilities •Expect to continue anticipated momentum from second half 2022 into 2023 •Operating c
Slide 33: Potential Improvements in 2023
• Potential Improvements in 2023 1 We continue to expect 2023 to be substantially better than 2022, based on the following: • Brazil –Both vessels expected to be working in intervention mode at profitable rates in 2023; expected EBITDA improvement $55 to $65 million in 2023 • Q7000 –vessel expected
Slide 34: Non-GAAP Reconciliations and Supplemental Information
Non-GAAP Reconciliations and Supplemental Information 34
Slide 35: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ in thousands, unaudited) 12/31/201712/31/201812/31/201912/31/202012/31/2021 Reconciliation from Net Income (Loss) to Adjusted EBITDA: Net income (loss)30,052 $ 28,598 $ 57,697 $ 20,084 $ (61,684) $ Adjustments: Income tax provision (benefit)(50,424) 2,400 7,859 (18,701) (
Slide 36: Non-GAAP and Other Definitions
NON-GAAP AND OTHER DEFINITIONS Non-GAAPFinancialMeasures WedefineEBITDAasearningsbeforeincometaxes,netinterestexpense,gainsorlossesonextinguishmentoflong- termdebt,gainsorlossesonequityinvestments,netotherincomeorexpense,anddepreciationandamortization expense.Non-cashimpairmentlossesongoodwillandoth
Slide 37: Macro Outlook Supports Upside Potential
1,123 3,235 1,148 2,204 1,553 1,919 0 600 1,200 1,800 2,400 3,000 3,600 2020A2021A2022E2023E2024E2025E Oil & Gas •Helix business lines are primarily production focused and activity driven by Upstream OpEx budgets •Current high commodity pricing environment favorable for offshore spending on both enh
Slide 38: Decommissioning Market – North America
DECOMMISSIONING MARKET –NORTH AMERICA 38 Source: Rystad Energy ServiceCube, SubseaCube, WellCube as of October 2022 North America Decommissioning Market Outlook: 2022-2025
Slide 39: Decommissioning Market – Global
DECOMMISSIONING MARKET –GLOBAL Global Decommissioning Market Outlook: 2022-2025 39 Source: Rystad Energy ServiceCube as of October 2022
Slide 40: Helix Energy Solutions
IX ENERGY SOLUTIONS D on 1
Helix Energy Solutions Group — Corporate Update (November 2022) on 6ix