Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2016 Earnings Presentation
25 slides from Helix Energy Solutions's earnings presentation, Apr 20, 2016
Slide 1: First Quarter 2016 Conference Call
HELIX ENERGY SOLUTIONS First Quarter 2016 Conference Call April 20, 2016 Navigating the present, focusing on the future.
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains fear tool statements that ol risks, uncertainties sand assumptions th thes ou couse our results to implied by suc other statements of! historical act, are "forwant- ‘ooking: statements: wat em meaning of the "priae Secure | iBigation fm Act of 199
Slide 3: Presentation Outline
Presentation Outline e Executive Summary (pg. 4) ¢ Operational Highlights by Segment (pg. 8) e Key Financial Metrics (pg. 13) ¢ 2016 Outlook (pg. 17) e Non-GAAP Reconciliations (pg. 23) 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 (6 in milions, except per share data) Three Months Ended 3/31/2016 3/31/2015 12/31/2015 Revenues $ m1 $= «6190 $158 Gross profit (loss): Operating 19 18% 13% Asset impairments : : (345) Total $ ay $ 35° $= (325) Goodwill impairment $ - $ $ (16) Non-cash losses on equity investments
Slide 6: Executive Summary
Executive Summary © QU. 2016 EBITDA of $1 million compared to EBITDA of $34 million in Q4 2015 © Q12016 loss of $(0.26) per diluted share @ Well Intervention - Ql 2016 = Q4000 utilization 100% . 5000 idle for the quarter; mobilized for vessel acceptance testing mid March for five year contract ith B
Slide 7: Executive Summary: Balance Sheet
Executive Summary Balance Sheet © Liquidity? of approximately $635 million at 3/31/16 © Cash and cash equivalents totaled $488 million at 3/31/16 + $19 million of cash used for scheduled principal debt repayments in Q1 2016 = $23 million of cash used for capital expenditures in Q1 2016 © Net debt? o
Slide 8: Operational Highlights
Operational Highlights
Slide 9: Operational Highlights by Segment
(Sin mitions) Production Facilities, Intercompany elimination otal Gross profit (loss) Well Intervention ‘°) Robotics Production Facilities ‘9 Elimination and other Total Three Months Ended First Quarter 2016 3/31/2016 3/31/2015 12/31/2015 + 23% utilization across the well intervention fleet + Q4000
Slide 10: Well Intervention
Well Intervention Gulf of Mexico Q4000 was 100% utilized for the 1:t quarter of 2016, and only experienced 44 hours of downtime for the quarter 5000 departed shipyard early March for DP sea trials; oF location as of March 18* with BP performing vessel conarce testing for its five year contract; cont
Slide 11: Robotics
Robotics © 52% chartered vessel fleet utilization in QU; 39% utilization for ROVs, trenchers and ROVDrills * Negotiated rate reductions on the Grand Canyon fleet of vessels for 2016 with the extension of charters © Deep Cygnus was fully utilized in Q1 for walk-to-work project in Equatorial Guinea th
Slide 12: Utilization
Utilization 100% 80% 60% mai 2016 m4 2015 40% mai 2015 20% 0% + 4000 + Olympic Canyon’ + 53 ROVs + Skandi Constructor + Deep Cygnus! + 2ROVOril units + Seawel? * Grand Canyon! + 5 Trenchers + Well Enhancer * Grand Canyon It'+ + 50008 + REM Installer + Hele 534° * Spot vessels ‘chartered vesse! upss
Slide 13: Key Financial Metrics
Key Financial Metrics és &
Slide 14: Debt Instrument Profile
Debt Instrument Profile on Debt Instrument Profile at 3/31/2016 Total funded debt of $757 million at end of Q1 2016 Principal Payment Schedule (Sinmitions © $200 million Convertible Senior Notes ~ 3.25%! $248 million Term Loan - LIBOR + 2.759%? ss00 ton + Annual amortization payments of 10% 400 # $8
Slide 15: Debt & Liquidity Profile
Debt & Liquidity Profile+ Debt ? 7 (Sin millions) 2,000 $1,500 $1,338 $1,338 $1,138 Le 1,067 me $1,000 $946. 2 592 ka $565 $554 g537 $500 $76 S61 $0 32/31/2008 12/31/2009" 32/21/2010. 32/33/2031 12/3/2012 12/91/2019. 32/31/2014. 12/31/2015 03/31/2016 Sr iquidity Liquidity of approximately $635 milli
Slide 16: Financial Highlights
Financial Highlights Revenue ($ in millions) $190 8 $166 $158 $91 misai mos?” aoiscs”SCmISaAS(OLG Quarterly EBITDA (Sin milions) $51 $51 $36. $34 $1 psa wosa? = a01sas SCANS Net Debt ($ in millions) $295, $281 $255, $244 $117, poisai—«aoisaa_—=|~=«notsa3.—=~~=C«oNsae—«aote a (Gin milions) $500 58 so
Slide 17: 2016 Outlook
2016 Outlook
Slide 18: 2016 Outlook: Forecast
2016 Outlook: Forecast (Sin mitions) 2016 2015 Outlook Actual Revenues $ 550 $ 696 EBITDA 110-130 173 CAPEX 230 353 Revenue Split: Well Intervention $ 330 $ 373 Robotics 175 301 Production Facilities 5 76 Elimination (30) (54) Total $ 550 $ 696 more broadly from the re is no assurance that the above
Slide 19: 2016 Outlook: Well Intervention
2016 Outlook: Well Intervention © Total backlog as of March 31, 2016 was approximately $1.7 billion © The Q4000 is expected to have high utilization for all of 2016 © Additional contracted work has been added in Q1 2016 to the Q4000 2016 schedule The Q5000 is under contract with BP for the duration
Slide 20: 2016 Outlook: Robotics
2016 Outlook: Robotics We currently have ~100 days of firm contracted work for our chartered vessels for Q2 2016 but we continue to aggressively pursue additional ROV and IRM opportunities for all of our vessels © Deep Cygnus to be fully utilized until at least mid-May on walk-to-work project © Gran
Slide 21: 2016 Outlook: Capex
2016 Outlook: Capex 2016 capex is currently forecasted at approximately $230 million, consisting of the following: + $212 million in growth capital; primarily for newbuilds currently underway, including: = $95 million for Q7000 = $95 million for Siem Helix 1 and 2 monohull vessels * $22 million for
Slide 22: 2016 Outlook: Balance Sheet
2016 Outlook Balance Sheet © Our gross funded debt levels are scheduled to decrease from year end 2015 by $71 million in 2016 ($776 million at 12/31/15 to $705 million at 12/31/16) as a result of scheduled principal payments. The senior portion of our debt at year end 2016 is scheduled to be $508 mi
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Navigating the present, focusing on the future
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations (Sinenilions) Net income (loss) Adjustments: Income tax. gels (benefit) Net interest e» Other (inc re we penn Depreciation a ‘and amortization ipairments peer rearret Non-cash losses on equity investments EBITDA justments: Cash settlements of ineffective foreign currency der
Slide 25: 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 — Q1 2016 Earnings Presentation on 6ix