Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q2 2016 Earnings Presentation
24 slides from Helix Energy Solutions's earnings presentation, Jul 20, 2016
Slide 1: Second Quarter 2016 Conference Call
HELIX ENERGY SOLUTIONS Second Quarter 2016 Conference Call July 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) e 2016 Outlook (pg. 16) e Non-GAAP Reconciliations (pg. 22) 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 (Sin millions, except per share data) Revenues Gross profit (loss) Net income (loss) Diluted earnings (loss) per share ‘Adjusted EBITDA’ Business segments Corporate, eliminations and other Adjusted EBITDA Three Months Ended 6/30/2016 $ 107 $ 6 5% $ (1) $ (0.10) $ 23 8) $ 15 6130201
Slide 6: Executive Summary
Executive Summary Operations © Q2 2016 net loss of $11 million, $(0.10) per diluted share, compared to Ql 2016 net loss of $28 million, $(0.26) per diluted share © Q2 2016 Adjusted EBITDA? of $15 million compared to Adjusted EBITDA of $1 million in Q1 2016 Well Intervention — Q2 2016 = Q4000 utiliza
Slide 7: Executive Summary
Executive Summary Balance Sheet © Liquidity? of approximately $543 million at 6/30/16 © Net proceeds of $39 million associated with the sale of approximately 5.1 million shares of our common stock under the at-the-market (‘ATM’) offering program © Cash and cash equivalents totaled $492 million at 6/
Slide 8: Operational Highlights
Operational Highlights
Slide 9: Business Segment Results
Business Segment Results ($in mitions) Three Months Ended 3/31/2016 6/30/2016 Revenues Well Intervention $ 60 Robotics 39 Production Facilities 19 intercompany elimination a) Total $ 107 Gross profit loss) Well Intervention 5% Robotics (7) -17% Production Facilities 10 52% Elimination and other Tota
Slide 10: Well Intervention
Well Intervention Gulf of Mexico © 4000 99% utilized in Q2 2016 © 5000 placed on contracted rates in mid May e IRS no.1 unutilized but available for rental market © Helix 534 remains stacked North Sea Seawell warm stacked until early June and mobilized for construction project on June 9"; vessel ful
Slide 11: Robotics
Robotics © 61% chartered vessel fleet utilization in Q2 2016; 48% utilization for ROVs, trenchers and ROVDrills © Deep Cygnus nearly fully utilized in Q2 2016 for walk-to-work project in Equatorial Guinea that completed in late June © Grand Canyon had 37 days of utilization in Q2 2016, including 21
Slide 12: Utilization
Utilization 100% 02 2016 mai 2016 022015 + Olympic Canyon’ a pov units ‘Sa Consctor + Deep Cygnus + Seaw * Grand Canyon’ + 5 Trencher * Wl emancer 1nd Canyon I + 50008 + REM Installer’ + Hele 534° vessels ‘chartered vesse! upss dvessel returned to owner in November 2015 “Vessel entered fleet in late
Slide 13: Key Financial Metrics
Key Financial Metrics és &
Slide 14: Debt Instrument Profile
Debt Instrument Profile Debt Instrument Profile at 6/30/2016 Total funded debt! of $733 million at end of Q2 Principal Payment Schedule (Sinmitions) * $193 million Convertible Senior Notes ~ 3.25%? 500 . © $240 million Term Loan - LIBOR + 4.00%? = + Annual amortization payments of 10% “ © $86 millio
Slide 15: Debt & Liquidity Profile
Debt & Liquidity Profile+ $1,996 (Sin millions) $2,000 + $1,200 $1,773 2 $1,500 + $900 $1,338 $1,338 $1,138 e 1,067 $1,002 $946. ~ $600 ° $592 TM sscs ssa 537 $76 S61 12/31/2008. 12/33/2009 12/31/2010 12/31/2011. 12/33/2012 12/33/2013 12/31/2014 12/31/2015. 06/30/2016 z Net Debt —@-Liquidity Debt ?
Slide 16: 2016 Outlook
2016 Outlook
Slide 17: 2016 Outlook: Forecast
2016 Outlook: Forecast (in-ilions) 2016 2015 Outlook Actual Revenues $ 510 $ 696 Adjusted EBITDA 90-120 173 CAPEX 230 353 Revenue Split: Well Intervention $ 290 $ 373 Robotics 175 301 Production Facilities 75 76 Elimination 30) (54) $ 510 $ 696 Note: pending levels, Furthermore second half of 2016.
Slide 18: 2016 Outlook: Well Intervention
2016 Outlook: Well Intervention © Total backlog as of June 30, 2016 was approximately $1.7 billion © The Q4000 is expected to have high utilization for all of 2016 The Q5000 is under contract for the duration of 2016; currently, the Q5000 is experiencing downtime @ IRS #1 is being actively marketed,
Slide 19: 2016 Outlook: Robotics
2016 Outlook: Robotics We currently have ~180 days of firm contracted work for our chartered vessels for Q3 2016 as certain longer term trenching projects are set to commence in the North Sea © Grand Canyon to be nearly fully utilized in Q3 2016, with a full month of IRM work expected in July and tr
Slide 20: 2016 Outlook: Capex
2016 Outlook: Capex 2016 capex is currently forecasted at approximately $230 million, consisting of the following: + $220 million in growth capital, primarily for newbuilds currently underway, including: = $95 million for Q7000 = $100 million for Siem Helix 1 and Siem Helix 2 monohull vessels * $25
Slide 21: 2016 Outlook: Balance Sheet
2016 Outlook Balance Sheet © Our total funded debt level is scheduled to decrease by $79 million ($776 million at 12/31/15 to $697 million at 12/31/16) as a result of scheduled principal repayments and the $7 million repurchase of Convertible Senior Notes. The senior portion of our debt at year end
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations Navigating the present, focusing on the future
Slide 23: (in milions)
(in milions) Net income (loss) Adjustments: Income tax seen (benefit) Net interest e» Other noome) ee se, Page and amortization pare mpament Non-cash losses on equity investments EBITDA Adjusim Cenh setloments of ettectve foreign currency dervatve pejutod SIDA Three Months Ended Six Months Ended Twe
Slide 24: 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 — Q2 2016 Earnings Presentation on 6ix