Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Corporate Update (November 2009)
31 slides from Helix Energy Solutions's corporate update, Nov 2, 2009
Slide 1: Company Update November 2009
Company Update November 2009
Slide 2: Forward-Looking Statements
2 The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic a
Slide 3: Helix Presenters
3 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 personnel. Owen Kratz Ch
Slide 4: Helix: Transforming the Business Model
4 Historical Profile • Deepwater subsea contracting • Deepwater well intervention • Robotics • Oil and gas • Deepwater • Shelf • Offshore production facilities • Shelf contracting (Cal Dive) • Reservoir evaluation and consulting The Future • Deepwater contracting services • Well Intervention • Robot
Slide 5: Helix Business Segments
Production Facilities Pipelay Intrepid Express Caesar (2009) ROV 39 ROVs ROV Drill Units 5 Chartered Vessels 6 Trenchers (200 - 2000hp) Deepwater Well Intervention Q4000 Seawell Well Enhancer (2009) Mobile SILs PV-10 $1.9 billion @ 12/31/2008 Proved reserves = 665 bcfe (12/31/2008) 2009 projected pr
Slide 6: The Helix Fleet
The Helix Fleet Well Enhancer and Seawell in Aberdeen, Scotland
Slide 7: Well Intervention Assets
7 MODU DP3 Q4000 MSV DP2 Well Enhancer Helix provides well operation and decommissioning services with the Seawell riserless well intervention vessel, the flagship Q4000 semisubmersible, the Well Enhancer wireline / slickline / coiled tubing intervention vessel, and the Subsea Intervention Lubricato
Slide 8: Subsea Construction Vessels
DP Reel Lay Vessel Express DP S-Lay Vessel Caesar (Q4 2009) Caesar’s onboard pipe welding and testing capability allows the vessel to lay virtually unlimited lengths of pipe up to 36” in diameter. Helix’s flagship pipelay and subsea construction vessel has established an extensive track record of fi
Slide 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 depths in excess of 6
Slide 10: ROV / Construction Support Vessel Fleet
Island Pioneer Olympic Triton Olympic Canyon Seacor Canyon Northern Canyon Chartered support vessels allows Helix to adjust the size and capability of its fleet to cost-effectively meet industry demands. ROV / Construction Support Vessel Fleet
Slide 11: Helix Producer I
• DTS buoy loaded out and to be installed by Q4000 in November 2009 • Installation of 2,500-ton production modules underway and expected to be completed November with hook-up to follow • Expect deployment in Phoenix field in Q2 2010 HPI production module installation Disconnectable Transfer System H
Slide 12: Contracting Services
– Pipe stalk length 5,230 feet – 300’ x 700’slip can accommodate two Helix Subsea Construction vessels side by side • Welding of Helix Danny 36-mile 8 x 12-inch pipe-in-pipe began early August Aerial view of Ingleside Shore Base Helix Danny pipe welding Automated pipe tension system Contracting Serv
Slide 13: Helix Oil & Gas
Slide 14: ERT Deepwater Portfolio
14 Legend: Gunnison Bushwood Phoenix Interests in 47 Deepwater Blocks -13 Developed, 34 Undeveloped BCFE Proved Reserves- 32 MMCFE Net Daily Production 2.7 Net TCFE Un-Risked Reserve Potential, 1.0 TCFE Risked Internal Prospect Generation via Large, In-House 3-D Seismic Library Large, Recent Long Of
Slide 15: O&G - 2008 Reserve Report Highlights
• 665 Bcfe Proved Reserves – 379 Bcfe deepwater, Bcfe shelf, 13 North Sea – Proved Developed / PUD Ratio - – Natural Gas / Oil Mix - 70/30 *2008 Exploration + Development + Proved Property Acquisition / Exploratory Additions (U.S. Only) O&G - - 2008 Reserve Report Highlights
Slide 16: Helix Producer I topside module installation
Helix Producer I topside module installation progress at Kiewit Offshore Services fabrication yard
Slide 17: 2009 Outlook
• Express dry-dock, transit and utilization on Danny pipeline is affecting second half, 2009 revenues • Capital expenditures of approximately $385 million • $200 million relates to completion of three major vessel projects (Well Enhancer, Caesar and Helix Producer I) • $60 million relates to develop
Slide 18: 2009 Outlook (continued)
• Production range: 43 - 47 Bcfe • Oil and gas prices • Without hedges: $4.34 /mcfe; $64.69 /bbl • With realized hedges and mark-to- market adjustments (gas only): $7.52 /mcfe; $70.36 /bbl HPI pipe racks connecting production modules to buoy system 2009 Outlook (continued)
Slide 19: Significant Balance Sheet Improvements
Debt Liquidity* of $781 million at 9/30/09 * Defined as available revolver capacity plus cash Significant Balance Sheet Improvements
Slide 20: Liquidity and Capital Resources
• Completed (≈ $600 million pre-tax): • Oil and gas assets • Bass Lite sale December 08 & January 09 ($49 million) • EC 316 sale in February 09 ($18 million) • Cal Dive • Sold a total of 15.2 million shares of Cal Dive common stock to Cal Dive in January and June 2009 for aggregate proceeds of $100
Slide 21: Liquidity and Capital Resources: Covenants
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 to consolidated interest charges Consolidated Leverage Ratio < 3.5 : 1 Consolidated EBITDA to consolidated debt Company is in complian
Slide 22: Credit Facilities, Commitments and Amortization
Credit Facilities, Commitments and Amortization – $435 Million Revolving Credit Facility - UNDRAWN. • Facility extended to November 2012. • In July 2011, commitments reduced to $407 million. • $50 million of LCs in place. – $417 Million Term Loan B - Committed facility through June 2013. $4.3 millio
Slide 23: Financial Information
Slide 24: Consistent Top Line Growth
Note: Excludes Cal Dive and Helix RDS revenues from 2005-2008. See Non-GAAP reconciliations on slide 30. Consistent Top Line Growth ($ amounts in millions) $575 $840 $891 $1,337 $1,152
Slide 25: Earnings Per Share
Earnings Per Share (a) - 2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead costs during the year. - 2007 results exclude the impact of the Cal Dive gain, impairments and other unusual items. - 2008 results exclude non-cash charges of $964 mill
Slide 26: Significant Cash Generation - EBITDAX
Significant Cash Generation - EBITDAX (a) -2006 results exclude the impact of the gain on sale in the Cal Dive IPO and estimated incremental overhead costs during the year. -2007 results exclude the impact of the Cal Dive gain, impairments and other unusual items. - 2008 results exclude non-cash imp
Slide 27: Non-GAAP Reconciliations
Slide 28: EBITDAX reconciliation
AS HELIX 2005 2006 «= 2007 «2008 += YTD 9/30/2009 (in millions) Net income applicable to common shareholders $ 150 $ 340 $ 312 $ (639) $ 158 Non-cash impairments 1 5 73 918 20 Gain on asset sales O) (99) (148) (74) (68) Preferred stock dividends 2 3 4 3 54 Income tax provision 5 131 103 67 116 Net i
Slide 29: Reconciliation to Normalized EPS
AS HELIX Reconciliation to Normalized EPS: Net income applicable to common shareholders Preferred stock dividends and accretion Gain on subsidiary equity transaction (Cal Dive) Goodwill and other intangible impairments Other non-recurring items Net income, excluding non-cash gains on Cal Dive equity
Slide 30: Revenue reconciliation
AS HELIX 2005 2006 2007 2008 YTD 9/30/2009 (in millions) Revenue As Reported $ 794 $ 1,328 $ 1,732 $ 2,114 § 1,282 Less: Cal Dive (219) (488) (680) 77) (891) Helix ESG Revenues 875 840 1,152 1,337 891
Slide 31: HLX Listed NYSE
Helix Energy Solutions Group — Corporate Update (November 2009) on 6ix