Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q3 2008 Earnings Presentation
23 slides from Helix Energy Solutions's earnings presentation, Oct 30, 2008
Slide 1: Third Quarter Earnings Conference Call October 30, 2008
Third Quarter Earnings Conference Call October 30, 2008
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: Presentation Outline
Executive Summary Summary of Results 2008 Outlook Update Production & Hurricane Recovery Liquidity and Capital Resources Operational Highlights by Segment Contracting Services Oil & Gas Questions & Answers Well Ops' Intervention Riser System recovers a tubing head spool with tubing in one recovery t
Slide 4: Highlights - Executive Summary
Highlights ($ in millions, except per share data) Executive Summary
Slide 5: Highlights of the Quarter
Highlights of the Quarter Record quarterly revenues and gross profit Continued strong demand and utilization for Helix Contracting Services (Well Operations, Subsea Construction and Robotics) Shelf Contracting (Cal Dive) posts stronger quarter/higher asset utilization Noonan pipeline was completed a
Slide 6: 2008 Outlook Update
2008 Outlook Update ($ in millions, except per share data) Production shut-ins resulting from Hurricanes Ike and Gustav negatively impact production by 15 bcfe. (4.5 bcfe in Q3, remainder in Q4) Market pressure on commodity prices results in lower realized price expectations compared to $120 / $9 as
Slide 7: Production & Hurricane Recovery Updates
Production impact from Hurricanes Ike and Gustav was ~4.5 Bcfe for Q3, and expected to be ~15 Bcfe for the full year Onshore processing and damaged third party pipelines are the primary delay in restoring production, but we expect most of these should be resolved by December Expected exit rate at th
Slide 8: Liquidity and Capital Resources
Helix has sufficient liquidity available on hand and available under its revolver During October, we drew on our revolver ($175 million) to ensure liquidity was available during this temporary period of reduced cashflow from shut- in production $44 million of additional capacity remains available to
Slide 9: Credit Facilities, Commitments and Amortization
Credit Facilities, Commitments and Amortization $420 Million Revolving Credit Facility - committed facility through June 2011. No required amortization $420 Million Term Loan B - committed facility through June 2013. $4.3 million amortization annually $550 Million High Yield Notes - Interest only un
Slide 10: Operational Highlights by Segment
Canyon Offshore i-Trencher ROV deploys from Island Pioneer in the North Sea, September 2008 Operational Highlights by Segment
Slide 11: Contracting Services
($ in millions, except percentages) Contracting Services
Slide 12: Revenue and Gross Profit by Division
Revenue and Gross Profit by Division ($ in millions) Contracting Services
Slide 13: Helix Contracting Services Vessel Utilization
HELIX Contracting Services Quarter Ended Ss June 30 Vessel Utilization 2008 2007 2008 Helix Contracting ‘Subsea Construction Vessels, 98% 93% 93% Well Operations 100% 83% 60% Robotics 76% 85% 70% Shelf Contracting 78% 74% 55% Production Facilities Throughput Marco Polo (MBOE) 2256 3555 3634 Independ
Slide 14: Helix Contracting Services
Helix Contracting Services The Intrepid completed the ERT Noonan project, and commenced an extensive campaign for ENI on their Pegasus and Longhorn projects The MSV Express continued to work offshore India on the Reliance KGD6 project The Helix-chartered vessel REM Forza was mobilized to the Relianc
Slide 15: Shelf Contracting (Cal Dive) and Production Facilities
Shelf Contracting (Cal Dive) High utilization and margins during the quarter Significant backlog generated during the quarter as a result of hurricanes Ike and Gustav See separate earnings release and conference call for this majority owned subsidiary Production Facilities Independence Hub platform
Slide 16: Oil & Gas Financial Highlights
Financial Highlights Production shut-ins resulting from Hurricanes Gustav and Ike reduced quarterly production by approximately 4.5 bcfe Noonan production expected to recommence in Q4, reaching peak production of an estimated 60 mmcfe, net to Helix, during Q1 2009 Oil & Gas
Slide 17: Operating Costs - Oil & Gas
Operating Costs ($ in millions, except per Mcfe data) Oil & Gas
Slide 18: Summary of 2008-2009 Hedging Positions
(Oct 2008 - December 2009) Summary of 2008-2009 Hedging Positions
Slide 19: Adjusted EBITDAX
Adjusted EBITDAX ($ in millions) Non GAAP Reconciliations
Slide 20: Revenue and Gross Profit As Reported
Revenue and Gross Profit As Reported ($ in millions) Non GAAP Reconciliations
Slide 21: Updated 2008 Outlook - Adjusted EBITDAX
Updated 2008 Outlook - Adjusted EBITDAX ($ in millions) Non GAAP Reconciliations
Slide 22: Prior 2008 Outlook - Adjusted EBITDAX
Prior 2008 Outlook - Adjusted EBITDAX ($ in millions) Non GAAP Reconciliations
Slide 23: Helix Energy Solutions
Helix Energy Solutions
Helix Energy Solutions Group — Q3 2008 Earnings Presentation on 6ix