Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2008 Earnings Presentation
21 slides from Helix Energy Solutions's earnings presentation, Apr 30, 2008
Slide 1: First Quarter Earnings Conference Call May 1, 2008
First Quarter Earnings Conference Call May 1, 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: Presentation Outline
Presentation Outline Executive Summary Summary of Results 2008 Outlook Strategy Operational Highlights by Segment Contracting Services Oil & Gas Questions & Answers
Slide 4: Executive Summary Highlights
Executive Summary Highlights First Quarter Highlights EBITDAX Totaled $238.8 million Contracting Services $ 56.9 million Oil & Gas $186.2 million Elimination $ (4.3) million Total $238.8 million Contracting Services exceeded expectations Continuing strong market demand in deepwater Seasonal decline
Slide 5: 2008 Outlook
2008 Outlook Initial Guidance Update Various moving parts with respect to initial assumptions, both positive and negative Reaffirm our 2008 base guidance (i.e., excluding the impact of Oil & Gas sales) without consideration of positive commodity price impact Currently reviewing extent of further Oil
Slide 6: > oO Ww = <x a = wn SNOILN10S ADN3N] XI13H PY
> oO Ww = <x a = wn SNOILN10S ADN3N] XI13H PY
Slide 7: 2008 Objectives
2008 Objectives Sell down interests in Oil & Gas properties capturing value while mitigating risk, reducing intercompany profit deferral and funding capital program. Complete new services assets and deepwater developments. Outperform guidance. Sold 30% of Danny Noonan. Additional properties being ma
Slide 8: Operational Highlights by Segment
OPERATIONAL HIGHLIGHTS BY SEGMENT
Slide 9: Contracting Services - World Class Fleet and Capabilities
Contracting Services - World Class fleet and Capabilities Robotics (Canyon Offshore) 42 ROVs 5 trenchers 2000 HP i- trencher (2008; under construction) 2 ROV drill units Portable pipelay system (2008; under construction) Long term charters DP2 Northern Canyon DP2 Olympic Canyon DP2 Olympic Triton DP
Slide 10: Contracting Services
Contracting Services (in millions, except percentages) Revenues (A) 1Q2008 1Q2008 1Q2007 1Q2007 4Q2007 4Q2007 Deepwater Contracting $149.4 $92.5 $175.8 Shelf Contracting (Cal Dive) 144.6 149.2 162.2 Well Operations 25.3 35.4 39.9 Reservoir/Well Technology Services 9.1 9.8 8.4 Contracting Services $3
Slide 11: Utilization
Utilization 1Q2008 1Q2007 4Q2007 Deepwater: - Deepwater Construction 99% 93% 100% - Robotics 66% 70% 68% Shelf Contracting (Cal Dive) 31% 70% 52% Well Operations 26% 65% 44% Independence Hub & Marco Polo Production Independence Hub & Marco Polo Production Independence Hub & Marco Polo Production Ind
Slide 12: Contracting Services Commentary
Contracting Services Commentary (1) Deepwater Construction The Intrepid and the Express had nearly full utilization and contributed $20.1 MM of gross profit. Margins were lower due to the large increased amount of sub-contractor work and use of chartered vessel. The MSV Express and DSV Eclipse worki
Slide 13: Well Operations
Well Operations The Seawell did not have any work in the month of January. She worked on Well Intervention projects in February and March and has work contracted for the majority of 2008. The Q4000 spent the entire quarter in the shipyard for scheduled marine and drilling upgrades. The vessel has a
Slide 14: Images of the Quarter
Images of the Quarter Caesar being painted in Nantong, China Installation of Noonan infield umbilical with UTA's Express working on Reliance KGD6 project Offshore India Offloading of the HPI DTS Hang-Off Structure at Kiewit's yard, Ingleside Texas Well Enhancer construction at IHC Merwede's yard ong
Slide 15: DTS Components
DTS Components HPI Modules Booster Gas Compression & Fuel Gas Power Generation Module MCC Building Separators Bulk Oil and Pumps Sales Gas Meter Booster Compression Subsea HPU Instr. Air Flash Gas Compression Piperack
Slide 16: Oil & Gas Financial Highlights
Oil & Gas Financial Highlights 4Q 2007 Gross Profit reflects the oil & gas amount without the $91.0 million of impairment / dry hole related items. Net of hedging impact 1Q2008 1Q2007 4Q2007 Revenue (in millions) $171.1 $131.0 $169.7 Gross Profit (in millions) $61.4 $48.6 $64.8 (A) Gross Profit Marg
Slide 17: Oil & Gas - Statistics
Oil & Gas - Statistics (A) (in millions, except per Mcfe data) 1Q2008 1Q2008 1Q2007 1Q2007 4Q2007 4Q2007 Cost Total Per Mcfe Total Per Mcfe Total Per Mcfe Operating Expenses $25.2 $1.63 $22.0 $1.41 $23.3 $1.33 Proved & Prospect Impairments 0 0 0 0 68.4 3.91 Exploration Expense (B) 1.9 0.12 1.2 0.08
Slide 18: Summary of 2008 - 2009 Hedging Positions
Summary of 2008 - 2009 Hedging Positions
Slide 19: B Sy HELIX ENERGY SOLUTIONS
B Sy HELIX ENERGY SOLUTIONS ee ee ee
Slide 20: Non GAAP Reconciliations Continued
Non GAAP Reconciliations Continued
Slide 21: Thank You
oat FLIX ENERGY SOLUTIONS Thank You
Helix Energy Solutions Group — Q1 2008 Earnings Presentation on 6ix