Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q2 2011 Earnings Presentation
28 slides from Helix Energy Solutions's earnings presentation, Jul 26, 2011
Slide 1: Second Quarter 2011 Conference Call
Second Quarter 2011 Conference Call Deep Cygnus performing trenching and cable burial operations at the Greater Gabbard Offshore Wind Farm in the North Sea July 26, 2011
Slide 2: Forward-Looking Statements
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 “forward-looking statements” wit
Slide 3: Presentation Outline
Presentation Outline • Executive Summary Summary of Q2 2011 Results (pg. 4) • Operational Highlights by Segment Contracting Services (pg. 9) Oil & Gas (pg. 16) • Key Balance Sheet Metrics (pg. 19) • 2011 Outlook (pg. 21) • Non-GAAP Reconciliations (pg. 25) • Questions & Answers
Slide 4: Executive Summary
4 Executive Summary
Slide 5: Executive Summary
Executive Summary ($ in millions, except per share data) (A) See non-GAAP reconciliations on slides 26-27.
Slide 6: Executive Summary
Executive Summary • Q2 2011 EPS of $0.39 per diluted share driven by strong results from oil and gas business, robust well intervention and production facilities businesses, and recovery in robotics business • Balance sheet continues to improve o Amended and extended senior credit agreement o Increa
Slide 7: Executive Summary
Executive Summary • Oil and Gas o Second quarter average production rate of 139 Mmcfe/d (68% oil) o Production through July 24 averaged approximately 114 Mmcfe/d (~70% oil) § July production impacted by scheduled downtime of third party pipeline servicing Phoenix field § Phoenix field impacted for a
Slide 8: Operational Highlights
8 Operational Highlights
Slide 9: Contracting Services
($ in millions, except percentages) (A) See non-GAAP reconciliation on slides 26-27. Amounts are prior to intercompany eliminations. Contracting Services • 89% utilization in Well Ops • Weak GOM market continues to impact Subsea Construction • Caesar in shipyard undergoing planned upgrades • Contain
Slide 10: Equity in Earnings of Equity Investments
($ in millions) Equity in Earnings of Equity Investments
Slide 11: Contracting Services - Well Ops
Contracting Services - Well Ops GOM • Q4000 worked for Shell on multiple projects throughout the second quarter • 93% utilization in the second quarter • Strong outlook anticipated for rest of 2011 and backlog building for 2012 North Sea • Seawell and Well Enhancer posted a combined 87% utilization
Slide 12: Contracting Services - Robotics
Contracting Services - Robotics • Strong robotics utilization in Europe and West Africa • UK projects utilizing the I-Trencher and T-750 extended into Q4 • ROVDrill upgrades completed and scheduled for deployment to the UK in late Q3 to focus on coring projects • Expanding focus on renewable energy
Slide 13: Contracting Services - Subsea Construction
Contracting Services - Subsea Construction Contracting Services - Subsea Construction • Low Q2 utilization for the Intrepid resulting from continued weak GOM market, partially offset by 82% utilization for the Express • Customer permitting issues continued to impact utilization • Express completed p
Slide 14: Helix Fast Response System (HFRS)
Helix Fast Response System (HFRS) • Utilizes vessels and subsea systems proven in Macondo spill response • Capability to capture and process up to 55,000 bpd in water depths to 10,000 feet at 15,000 psi • 24 independent E&P operators have signed on to include HFRS in drilling permit applications • C
Slide 15: Contracting Services Utilization
Contracting Services Utilization • Express • Caesar (1) • Island Pioneer (2) • Deep Cygnus (2) • Normand Clipper (2) • Olympic Triton (2) • Well Enhancer • Q4000 • 2 ROVDrill Units • 5 Trenchers (1) Vessel in shipyard during second quarter undergoing planned maintenance and upgrades. (2) Chartered v
Slide 16: Oil & Gas
(A) Second quarter 2011 impairments primarily associated with six of our Gulf of Mexico oil and gas properties and our only non-domestic (UK) oil and gas property. The impairment charges primarily reflect a premature end of these fields’ production lives either through actual depletion or as a resul
Slide 17: Oil & Gas Operating Costs
Oil & Gas (A) Included accretion expense. Q2 2011 DD&A rate positively affected (approximately $9.2 million) due primarily to increased proved reserves at our Phoenix field as a result of better than expected production rates (net of adjustments in other fields). (B) Excluded exploration expense, ne
Slide 18: Summary of Jul 2011 - Dec 2012 Hedging Positions
Summary of Jul 2011 - Dec 2012 Hedging Positions * * As of July 24, 2011.
Slide 19: Key Balance Sheet Metrics
19 Key Balance Sheet Metrics
Slide 20: Debt and Liquidity Profile
Debt and Liquidity Profile (A) Includes impact of unamortized debt discount under our Convertible Senior Notes. (B) Liquidity, as we define it, is equal to cash and cash equivalents ($414 million), plus available capacity under our revolving credit facility ($551 million).
Slide 21: 2011 Outlook
21 2011 Outlook
Slide 22: 2011 Outlook
Broad Metrics 2011 Forecast (revised) 2011 Forecast (original) 2010 Actual Oil and Gas Production 50 Bcfe 49 Bcfe 47 Bcfe EBITDAX $575+ million $475 million $430 million CAPEX $275 million $225 million $179 million Commodity Price Deck 2011 Forecast (revised) 2011 Forecast (original) 2010 Actual Hed
Slide 23: 2011 Outlook
2011 Outlook • Contracting Services o Strong backlog for the Q4000, Well Enhancer and Seawell in 2011 o Continued robotics utilization recovery in second half of 2011, driven primarily by activity outside the GOM o Backlog for Express and Intrepid improved, although some backlog subject to customer
Slide 24: 2011 Outlook - Capital Expenditures
2011 Outlook • Capital Expenditures o Contracting Services ($110 million) § No major vessel projects planned for 2011 § Caesar thruster upgrade continues through Q3 § Incremental investment in robotics business o Oil and Gas ($165 million) § Focus capital investment on oil development with relativel
Slide 25: Non-GAAP Reconciliations
25 Non-GAAP Reconciliations
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDAX ($ in millions) We calculate Adjusted EBITDAX as earnings before net interest expense, taxes, depreciation and amortization and exploration expense. These non-GAAP measures are useful to investors and other internal and external users of our financial statem
Slide 27: Revenue and Gross Profit As Reported
Revenue and Gross Profit As Reported ($ in millions) Non-GAAP Reconciliations
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