Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — 2008 Lehman Brothers CEO Energy/Power Conference
19 slides from Helix Energy Solutions's conference presentation, Sep 2, 2008
Slide 1: 2008 Lehman Brothers CEO Energy/Power Conference
2008 Lehman Brothers CEO Energy/Power Conference September 3, 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: Helix Profile
ee HELIX ENERGY SOLUTIONS Helix Profile
Slide 4: Helix Defined
Helix Defined World-class global services contractor offering critical offshore field development services
Slide 5: Contracting Services and Production Facilities assets
Contracting Services Production Facilities Marco Polo TLP (50%) Independence Hub Semi (20%) Drilling / Completion Q4000 w/ Drilling Upgrade* *upgrade completed in 2008 Construction Pipelay Intrepid Express ROV 34 ROVs 2 ROV Drill Units 6 Chartered Vessels 5 Trenchers (200 - 2000hp) Shelf Constructio
Slide 6: Consistent long-term sustainable growth in a cyclical business
Consistent long-term sustainable growth in a cyclical business Why We Own Reservoirs Backlog for services Enabling utilization for new assets/ services Adds incremental returns through production with lower F&D costs Provides incremental cashflow allowing accelerated services growth
Slide 7: Continuing Expansion in Deepwater
Continuing Expansion in Deepwater Established services presence initially with Intrepid, Express and Q4000 Q4000 drilling upgrade in 2008 increases capabilities Caesar, Well Enhancer and Helix Producer I will significantly expand capacity and EBITDA in 2009 Expanded focus on deepwater O&G production
Slide 8: Near Term Objectives
Near Term Objectives 2008 n Sell down interests in oil & gas properties, capturing value while mitigating risk, reducing intercompany profit deferral and funding capital program in the process. n Complete new services assets and deepwater developments. n Outperform guidance. 2009 n Harvest returns f
Slide 9: Historical Valuation Metrics
Historical Valuation Metrics
Slide 10: Moving Forward Our Thoughts
Moving Forward Our Thoughts Primary goal - maximize shareholder value The hybrid model yields meaningful value and operational synergies 2009 is a year in which we will realize significant benefits in terms of earnings and EBITDA growth from the major capital investments made in the last two years A
Slide 11: Moving Forward Our Thoughts (cont.)
Moving Forward Our Thoughts (cont.) Sell or spin-off Oil and Gas business. Specific challenges include: Debt covenants Tax leakage Financing Our Strategy for 2009 and Beyond: Retain model to obtain benefits of incremental cash flow, earnings growth and shareholder value that should be realized from
Slide 12: 2009: A Year of Earnings and Cashflow Growth
Moving Forward 2009: A Year of Earnings and Cashflow Growth 2008 2009 Earnings per share $3.36 $4.50+* EBITDAX ** $940M $1,200M 2009 Assumptions: Commodity price deck of $100 oil / $8 natural gas Production rate of 83Bcfe New services assets (Caesar, Well Enhancer and Helix Producer I) begin earning
Slide 13: Expanding Our Business Model Internationally
Expanding Our Business Model Internationally
Slide 14: Financial Information
Se ELK ENERGY SOLUTIONS Financial Information
Slide 15: Consistent Top Line Growth
Consistent Top Line Growth * 2008 forecast ** preliminary estimate 2000 2001 2002 2003 2004 2005 2006 2007 2008* 2009** Contracting Services 110 164 240 259 300 523 937 1183 1500 1700 Oil & Gas 70.8 63.4 62.8 137.3 243 276 430 585 750 850 34% CAGR ($ amounts in millions)
Slide 16: Earnings Per Share
Earnings Per Share - - 2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead costs during the year. - - 2007 results exclude the impact of the Cal Dive gain, impairments and other unusual items. - - 2008 results include oil and gas property dispos
Slide 17: Significant Cash Generation - EBITDAX
Significant Cash Generation - EBITDAX* - -2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead costs during the year. - -2007 results exclude the impact of the Cal Dive gain, impairments and other unusual items. - -2008 results include oil and ga
Slide 18: O&G - 2007 Reserve Report Highlights
O&G - 2007 Reserve Report Highlights Pre-tax PV-10 - $4.1 billion; After-tax PV-10 - $2.8 billion 677 Bcfe Proved Reserves 373 Bcfe shelf, 304 Bcfe deepwater Proved Developed / PUD Ratio - 33/67 Natural Gas / Oil Mix - 65/35 Exploration resulted in 244 Bcfe of reserve additions 376% reserve replacem
Slide 19: Helix Energy Solutions
AS HELIX Helix Energy Solutions iw ListedINYSE:
Helix Energy Solutions Group — 2008 Lehman Brothers CEO Energy/Power Conference on 6ix