Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Morgan Stanley Energy Conference 2009
29 slides from Helix Energy Solutions's conference presentation, Jul 7, 2009
Slide 1: Morgan Stanley Energy Conference
1 Morgan Stanley Energy Conference July 8, 2009
Slide 2: Forward-looking statements
2 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 statemen
Slide 3: Helix Profile
3 Helix Profile
Slide 4: The Helix Mission
4 The Helix Mission Helix Energy Solutions Group provides life-of-field services and development solutions to offshore energy producers worldwide. Helix actively reduces finding and development costs through a unique mix of offshore production assets, service methodologies, and highly skilled person
Slide 5: Helix Business Segments
5 Deepwater Well Intervention Q4000 Seawell Well Enhancer (2009) Mobile SILs Helix Oil & Gas / ERT GOM shelf and deepwater PV-10 $1.9 billion @ 12/31/2008 Proved reserves = 665 bcfe (12/31/2008) 2009 projected production 45 - 55 bcfe Helix Business Segments
Slide 6: Helix Energy Solutions
ELIX iNERGY SOLUTIONS
Slide 7: Well Intervention Fleet
7 MSV DP2 Well Enhancer Well Intervention Fleet MSV DP2 Seawell Helix provides well operation and decommissioning services with the Q4000 and Seawell well intervention vessels, with the Well Enhancer joining the fleet in 2009.
Slide 8: Subsea Construction Vessels
8 DP Reel Lay Vessel Express DP S-Lay Vessel Caesar (Q4 2009) Subsea Construction Vessels DP Reel Lay Vessel Intrepid Caesar’s onboard pipe welding and testing capability allows the vessel to lay pipeline with out the need for a spoolbase. Helix’s pipelay and subsea construction vessel has establish
Slide 9: Helix ROV Systems
9 Helix ROV Systems Helix is an industry leading provider of ROV and subsea trenching services to deepwater operators worldwide. The Helix ROV fleet consists of 39 vehicles, covering the spectrum of deepwater construction services. The 600 hp Supertrencher II system is designed to operate at water d
Slide 10: ROV / Construction Support Vessel Fleet
10 Island Pioneer Olympic Triton Olympic Canyon Seacor Canyon Northern Canyon ROV / Construction Support Vessel Fleet Chartered support vessels allows Helix to adjust the size and capability of its fleet to cost-effectively meet industry demands. REM Forza
Slide 11: Helix Producer I
11 Helix Producer I Helix Producer I is a floating production facility designed to serve small deepwater fields over the life of the property, such as Helix’s Phoenix field in the Gulf of Mexico. The dynamically-positioned vessel can produce up to a maximum of 45,000 BOPD and 72 MMCFD via a disconne
Slide 12: Helix Oil & Gas
12 Helix Oil & Gas
Slide 13: ERT Deepwater Portfolio
13 Producing Field Non Producing Field Prospect Gunnison Bushwood Phoenix ERT Deepwater Portfolio Interests in 44 Deepwater Blocks -12 Developed, 32 Undeveloped 2.7 Net TCFE Un-Risked Reserve Potential, 1.0 TCFE Risked Internal Prospect Generation via Large, In-House 3-D Seismic Library Large, Recen
Slide 14: 2008 Reserve Report Highlights
14 O&G - - 2008 Reserve Report Highlights
Slide 15: Phoenix Field - 2009 Deepwater Capital Projects
15 Phoenix Field O&G - - 2009 Deepwater Capital Projects
Slide 16: 16
16
Slide 17: 2009 Outlook
17 • Good Contracting Services visibility in 1H 2009 • 2009 backlog of $360 million • Expect 2H 2009 to soften • Capital expenditures of approximately $360 million • $200 million relates to completion of three major vessel projects (Well Enhancer, Caesar and Helix Producer I) • $60 million relates t
Slide 18: Oil and Gas
ENERGY SOLUTIONS. Ae HELIX Qil and Gas + Production range: 45 - 55 befe + Oil and gas prices + Without hedges: $4.49 /mcfe $52.03 /bbl - With hedges: $7.25 /mcfe $66.00 ‘bbl + Garden Banks 506 Field (Noonan) net daily production (estimated) + Q1 2009: ~18 mcfe/d + Q3 2009: ~60 mcfe/d
Slide 19: Continued focus on balance sheet and debt reduction
+ Continued focus on balance sheet and debt reduction + Expect further meaningful level of debt reduction + No major new capex projects planned + Capex levels well below 2009 level as major vessel programs are completed + 2010 capex range $150 - $200 million (preliminary estimate) + Phoenix and Dann
Slide 20: Liquidity and Capital Resources
20 Liquidity and Capital Resources
Slide 21: Significant Balance Sheet Improvements
21 Significant Balance Sheet Improvements * estimated Debt Liquidity
Slide 22: Liquidity and Capital Resources: Monetization of non-core assets
22 • Company is focused on efforts to monetize non-core assets and businesses • Oil and gas assets • Bass Lite sale December 08 & January 09 ($49 million) • EC 316 sale in February 09 ($18 million) • Production facilities • Cal Dive (approximate 26% owned subsidiary) • Sold 15.2 million shares of CD
Slide 23: Key Credit Facility Covenants
23 Covenant Test Explanation Collateral Coverage Ratio > 1.75 : 1 Basket of collateral to Senior Secured Debt Fixed Charge Coverage Ratio > 2.75 : 1 Consolidated EBITDA (incl. Cal Dive %) to consolidated interest charges Consolidated Leverage Ratio < 3.5 : 1 Consolidated EBITDA (incl. Cal Dive %) to
Slide 24: Credit Facilities, Commitments and Amortization
24 Liquidity and Capital Resources Credit Facilities, Commitments and Amortization – $420 Million Revolving Credit Facility - committed facility through June 2011. No required amortization. Fully paid down as of 6/30/2009. – $418 Million Term Loan B - committed facility through June 2013. $4.3 milli
Slide 25: Financial Information
ENERGY SOLUTIONS. Aa HELIX Financial Information
Slide 26: Consistent Top Line Growth
26 Consistent Top Line Growth ($ amounts in millions) $2,148 $1,767 $1,367 $799 $543 $303 $227 $181 $396 Note: Includes Cal Dive
Slide 27: Earnings Per Share
27 Earnings Per Share $1.03 $2.68 $2.85 $3.05 $1.86 *See Non-GAAP reconciliation at www.HelixESG.com
Slide 28: Significant Cash Generation - EBITDAX
28 Significant Cash Generation - EBITDAX* *See Non-GAAP reconciliation at www.HelixESG.com ($ amounts in millions) $212 $279 $452 $655 $662
Slide 29: Helix Energy Solutions
Aa HELIX 1 ENERGY SOLUTIONS
Helix Energy Solutions Group — Morgan Stanley Energy Conference 2009 on 6ix