Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Corporate Update (August 2020)
26 slides from Helix Energy Solutions's corporate update, Aug 21, 2020
Slide 1: Helix Energy Solutions Company Update August 2020
EXHIBIT 99.1 Helix Energy Solutions Company Update August 2020
Slide 2: 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 historical
Slide 3: Company Overview
COMPANY OVERVIEW • Helix Energy Solutions provides specialty services to the Global Operations offshore energy industry with a focus on well intervention and 1,566 employees worldwide1 and primarily operates in the Gulf of Mexico, robotics operations Brazil, North Sea, Asia Pacific and West Africa r
Slide 4: Company Highlights
COMPANY HIGHLIGHTS • World's leading provider of both well intervention and • Experienced and highly skilled workforce subsea robotics technologies to offshore energy industry • Strong robotics franchise with deepwater ROV track record in oil & gas, renewable energy, subsea mining, • Pioneer and est
Slide 5: Why Choose Helix?
WHY CHOOSE HELIX? Why Helix? • Market leader in Well Intervention and Robotics/Trenching • Riser-based and riserless interventional capabilities • Geographically diverse scope of operations • Blue-chip customers • Purpose-built, advanced fleet • Integrated offerings • Increasing contribution of offs
Slide 6: Well Intervention
WELL INTERVENTION Helix Well Ops is a leader in rigless offshore well intervention, providing fast, flexible and high-quality well management services Our specialist riserless and riser-based well intervention vessels and subsea systems operate worldwide to provide customer value throughout the well
Slide 7: What Sets Helix Apart in Well Intervention
WHAT SETS HELIX APART IN WELL INTERVENTION • Fleet of seven purpose-built well intervention vessels • Both riser-based and riserless intervention systems • Approximately 1,460 well intervention operations performed worldwide • Over 540 well abandonment operations performed worldwide • Geographically
Slide 8: Well Intervention Vessels & Assets
WELL INTERVENTION VESSELS & ASSETS Q4000 Q5000 Q7000 Siem Helix 1 & (Gulf of Mexico) (Gulf of Mexico) (West Africa) Siem Helix 2 Dynamically positioned class 3 (“DP3”) DP3 semisubmersible purpose-built DP3 semisubmersible purpose-built (Brazil) semisubmersible purpose-built vessel vessel for well in
Slide 9: Integrated Approach to Subsea Well Services
INTEGRATED APPROACH TO SUBSEA WELL SERVICES Subsea Service Alliance created in 2015 to combine the expertise and capabilities of Helix and Schlumberger • Comprehensive subsea well construction, intervention and decommissioning portfolio • Helix provides marine support, operational expertise and proj
Slide 10: Robotics
ROBOTICS Helix Robotics Solutions is a leading supplier of subsea engineering services, operating state of the art remote operated vehicles (ROVs), seabed trenchers, and support/construction vessels Our deep-water ROV track record spans 20 years, including oil & gas, renewable energy, construction s
Slide 11: Robotics Vessels & Assets
ROBOTICS VESSELS & ASSETS Grand Canyon II Grand Canyon III Vessels of Opportunity (Asia Pacific) (North Sea) (Global) A versatile and technically advanced DP3 multi- A versatile and technically advanced DP3 multi- Ability to expand and contract based on regional role construction support vessel role
Slide 12: What Sets Helix Apart in Robotics
WHAT SETS HELIX APART IN ROBOTICS Oil & Gas Renewable Construction Specialty Energy Services Services • Helix charters its ROV support vessels, ensuring a modern fleet that can expand and contract based on regional requirements and market conditions • A fleet of advanced work-class ROVs and trencher
Slide 13: Production Facilities
PRODUCTION FACILITIES Production Facilities is a non-core segment that includes the Helix Producer 1 floating production unit (FPU), which is operating under a production handling contract until at least June 1, 2023 The segment also includes the Helix Fast Response System and our ownership of four
Slide 14: Macro Outlook Supports Upside Potential
MACRO OUTLOOK SUPPORTS UPSIDE POTENTIAL 1 Oil & Gas Global Offshore O&G OpEx ($ in billions) • Helix business lines are primarily production focused and $75 activity driven by Upstream OpEx budgets $70 $69 • COVID-19 resulted in numerous projects being $67 delayed, increase in activity expected in 2
Slide 15: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Environment • We help mitigate and remediate the environmental risks associated with offshore drilling and production operations in practice and in-service • We assist clients with the optimal utilization of wells in order to enhance production from existing well
Slide 16: Key Financial Metrics and Outlook
Key Financial Metrics and Outlook 16
Slide 17: Pro Forma Debt Instrument Profile
PRO FORMA2 DEBT INSTRUMENT PROFILE Total pro forma2 funded debt1 of $428 million at 6/30/20 • $35 million Convertible Senior Notes due 2022 – 4.25% • $30 million Convertible Senior Notes due 2023 – 4.125% Pro Forma2 Principal Payment Schedule at 6/30/20 ($ in millions) • $200 million Convertible Sen
Slide 18: Current Operating Environment
CURRENT OPERATING ENVIRONMENT • The ongoing COVID-19 pandemic and its impact on the global economy have resulted in a decrease in the price of oil and caused significant disruption and uncertainty in the oil and gas market • The pandemic has created challenges for Helix’s operations, in particular c
Slide 19: 2020 Outlook: Forecast
2020 OUTLOOK: FORECAST ($ in millions) 2020 2019 Outlook Actual Revenues $ 655 - 740$ 752 Adjusted EBITDA1,2,3 115 - 145 180 Free Cash Flow1 40 - 80 31 Capital Additions4 ~ 38 161 Revenue Split: Well Intervention $ 490 - 560$ 593 Robotics 145 - 160 172 Production Facilities3 55 61 Eliminations5 (35)
Slide 20: 2020 Outlook
2020 OUTLOOK Total backlog at June 30, 2020 was approximately $574 million ($365 million for Well Intervention), of which approximately $263 million was expected to be realized during the remainder of 2020 Well Intervention Outlook • Q4000 (Gulf of Mexico) – contracted backlog through August, identi
Slide 21: 2020 Outlook
2020 OUTLOOK Robotics Outlook • Grand Canyon II (Asia Pacific) – contracted for flotel and ROV support project through Q3; identified prospects for Q4 and expected good utilization during remainder of 2020 • Grand Canyon III (North Sea) – currently performing export cable trenching in North Sea thro
Slide 22: 2020 Outlook: Capital Additions & Balance Sheet
2020 OUTLOOK: CAPITAL ADDITIONS & BALANCE SHEET 2020 Capital additions are currently forecasted at approximately $38 million, consisting of the following: • Growth Capex – $5 million related primarily to completion of Q7000 and related intervention system • Maintenance Capex – $33 million primarily
Slide 23: Looking Ahead
LOOKING AHEAD • Despite the current challenging market conditions driven by the ongoing COVID-19 pandemic and weak and volatile oil prices, we believe Helix is in a relatively good position • We are managing COVID-19 challenges head-on and minimizing disruptions to our operations thus far • We have
Slide 24: Financial Results: Non-GAAP Reconciliations and Supplemental Information
FINANCIAL RESULTS Non-GAAP Reconciliations and Supplemental Information 24 24
Slide 25: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Twevle Months ($ in thousands, unaudited) Three Months Ended Six Months Ended Ended 6/30/20 6/30/19 3/31/20 6/30/20 6/30/19 12/31/19 Adjusted EBITDA: Net income (loss)$ 5,450 $ 16,823 $ (13,928) $ (8,478) $ 18,141 $ 57,697 Adjustments: Income tax provision (benefit) (271) 2,
Slide 26: Thank you
Thank you We continue to implement and improve Environmental, Social and Governance (“ESG”) initiatives and disclosures throughout our business. In conjunction with support from management and our Board of Directors, we incorporate ESG initiatives into our core business values and priorities of safe
Helix Energy Solutions Group — Corporate Update (August 2020) on 6ix