Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — CAL Dive International — Q3 2004 Earnings Presentation
15 slides from Helix Energy Solutions's earnings presentation, Nov 2, 2004
Slide 1: Third Quarter 2004 Earnings Conference Call
Owen Kratz - Chief Executive Officer Martin Ferron - President Wade Pursell - Chief Financial Officer Third Quarter 2004 Earnings Conference Call November 3, 2004
Slide 2: Agenda
Agenda I. Summary of Results II. Operational Highlights by Segment A. Marine Contracting i. Shelf Contracting ii. Deepwater & Robotics iii. Well Operations B. Production Facilities C. Oil & Gas Production III. Strategic Overview and Outlook IV. Questions & Answers 2
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements that involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward- looking statements. All statements, other than statements of historica
Slide 4: Long Term Debt and Net Debt to Book Capitalization
MARAD Construction and Other Long Term Debt Revolving Credit 5 (Amounts in Millions) 12/31/02 12/31/03 06/30/04 09/30/04 Net Debt To Book Capitalization 17% 20% 35% 40%
Slide 5: The Impact of Hurricane Ivan on Cal Dive Earnings
The Impact of Hurricane Ivan on Cal Dive Earnings Q3: About half of our Shelf properties were shut in for approximately four days. Marco Polo was also shut-in for the same period while Gunnison, much further to the west, was not shut-in. Inspection work for our Marine Contracting segment picked up a
Slide 6: Marine Contracting (MC)
Marine Contracting (MC) Third Quarter Third Quarter Second Quarter 2004 2003 2004 Revenues $78,860 $75,120 $71,763 Gross Profit 12,509 7,743 7,834 16% 10% 11% 7 Q3: Overall revenue and profitability improved despite a grounding incident with the Intrepid and the mobilization of the Seawell, for Norw
Slide 7: MC - Shelf
MC - Shelf Third Quarter Third Quarter Second Quarter 2004 2003 2004 52% 61% 48% Utilization Utilization improved sequentially but declined on a year over year basis, mainly due to longer weather delays caused by hurricane activity. Demand for saturation diving services remains robust but the surfac
Slide 8: MC - Deepwater & Robotics
MC - Deepwater & Robotics Third Quarter Third Quarter Second Quarter 2004 2003 2004 Deepwater Contracting 52% 79% 57% Robotics 45% 53% 46% Utilization Utilization declined sequentially due to the grounding incident with the Intrepid, and on a year over year basis, as the Witch Queen and Merlin remai
Slide 9: MC - Deepwater & Robotics
MC - Deepwater & Robotics The Eclipse enjoyed another quarter of full utilization and good rates before entering drydock in very late September. She is due to resume operations in early November. The robotics group benefited from a seasonal pick-up in ROV activity, especially in the North Sea, altho
Slide 10: MC - Well Operations
MC - Well Operations Third Quarter Third Quarter Second Quarter 2004 2003 2004 73% 81% 73% Utilization Utilization declined on a year over year basis mainly due to the mobilization of the Seawell for Norwegian work. This process took longer than expected but the vessel commenced work in early Octobe
Slide 11: Production Facilities
Production Facilities Third Quarter Third Quarter Second Quarter 2004 2003 2004 Equity in Earnings $3,062 $^ $1,310 Production throughput (MBbl) 1,876 ^ ^ 12 Q3: In addition to the demand charges which began in Q2 with mechanical completion of the TLP, production commenced at Marco Polo in mid-July
Slide 12: Oil & Gas Production
Oil & Gas Production Third Quarter Third Quarter Second Quarter 2004 2003 2004 Revenues $59,999 $33,958 $61,283 Gross Profit 33,277 16,638 33,619 55% 49% 55% Production (BCFe): Shelf 7.7 7.2 8.0 Gunnison 2.3 ___ 2.0 Average Commodity Prices (net of hedging impact): Oil/Bbl $38.12 $27.41 $32.97 Gas/M
Slide 13: Oil & Gas Production
Oil & Gas Production Q3: Shelf: Commodity prices remained robust in the third quarter with our net realized price per BCFe up 31% from the prior year and essentially flat with last quarter. Shelf production improved 7% over year ago levels due primarily to successful results from well exploitation e
Slide 14: Hedging
Hedging: As of September 30, 2004 Production Period Instrument Type Average Monthly Volumes Weighted Average Price Crude Oil: October - December 2004 Swaps 75 MBbl $31.53 January - June 2005 Swaps 20 MBbl $35.80 January - September 2005 Collars 40 MBbl $37.00 - $47.48 Natural Gas: October - December
Slide 15: 2004 Report Card
2004 Report Card Marine Contracting 2% Margin improvement Reduce Direct Cost $10 million Oil & Gas 40 BCFe of Production PUD acquisition in GOM Mature production acquisition Production Facilities One new Gateway deal Financial Flexible credit structure No equity dilution Safety TRIR below 2:00 16
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