Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2019 Earnings Presentation
26 slides from Helix Energy Solutions's earnings presentation, Apr 23, 2019
Slide 1: Helix Energy Solutions: Navigating the present, focusing on the future
HELIX ENERGY SOLUTIONS Navigating the present, focusing on the future
Slide 2: Forward-Looking Statements
fj 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 histori
Slide 3: Presentation Outline
Mi Presentation Outline * Executive Summary (pg. 4) * Operational Highlights by Segment (pg. 9) | gg * Key Financial Metrics (pg. 16) * 2019 Outlook (pg. 19) * Non-GAAP Reconciliations (pg. 24) * Questions and Answers od ENERGY SOLUTIONS Navigating the present, focusing on the future
Slide 4: Executive Summary
I [Executive Summary Navigating the present, focusing on the future
Slide 5: Executive Summary
Executive Summary ($in millions, except per share data) Three Months Ended 3/31/19 3/31/18 12/31/18 Revenues $ 167 $ 164 $ 158 Gross profit $ 16 $ 13 $ 14 10% 8% 9% Non-cash loss on equity investment $ SF $ R $ (3) Net income (loss) $ 1 $ (3) $ (14) Diluted earnings (loss) per share $ 0.01 $ (0.02)
Slide 6: Executive Summary: Highlights — Q1 2019
Mj Executive Summary Highlights — Q1 2019 e Net income of $1 million, $0.01 per diluted share, compared to net losses of $(14) million, $(0.09) per diluted share, in Q4 2018 and $(3) million, $(0.02) per diluted share, in Q1 2018 e Adjusted EBITDA! of $30 million compared to $23 million in Q4 2018 a
Slide 7: Executive Summary: Operations — Q1 2019
Mj Executive Summary Operations — Q1 2019 e Well Intervention e Utilization of 74% across the well intervention vessel fleet e 92% in the GOM e 32% in the North Sea; Seawell and Well Enhancer completed regulatory dry docks e 98% in Brazil e 15K IRS utilization 87%; 10K IRS idle during quarter e Robo
Slide 8: Executive Summary: Balance Sheet
Executive Summary Balance Sheet e Liquidity’ of approximately $367 million at 3/31/19 e Cash and cash equivalents totaled $220 million at 3/31/19 e $13 million of cash used for scheduled debt principal repayments in Q1 2019 e $28 million of cash used for capital expenditures, including $17 million o
Slide 9: Operational Highlights by Segment
) |Operational Highlights by Segment aa A HELIX on Fm cr sovutions Navigating the present, focusing on the future 9
Slide 10: Business Segment Results
Msusiness Segment Results Three Months Ended First Quarter 2019 3/31/19 3/31/18 12/31/18 + Well Intervention achieved 74% utilization across the vessel fleet Revenues + Q4000 97% utilization; Well Intervention $ 122 130 115 Q5000 87% utilization Robotics _ 39 ar 38 + Well Enhancer 24% utilization; P
Slide 11: Well Intervention - GOM
wei Intervention -GOM Gulf of Mexico e Q5000 — 87% utilization in Q1 2019 performing 15K intervention work for BP; incurred unplanned downtime during quarter e Q4000 — 97% utilization in Q1 2019 performing a combination of abandonment and production enhancement operations on 11 wells for one custome
Slide 12: North Sea
North Sea e Well Enhancer — 24% utilization in Q1 2019 e Performed diving operations for one customer and intervention operations for another e Completed regulatory dry dock during winter warm stack period and commenced operations in early March e Seawell — 40% utilization in Q1 2019 e Operational f
Slide 13: Brazil
Brazil e Siem Helix 1 — 98% utilization during Q1 2019; performed abandonment scope on one well and workover and performance enhancement operations on two wells e Siem Helix 2 — 98% utilization during Q1 2019; performed workover and performance enhancement operations on five wells HELIX ENERGY SOLUT
Slide 14: Robotics
Robotics e 88% chartered vessel fleet utilization (including spot vessels) in Q1 2019; 39% utilization for ROVs, trenchers and ROVDrill e Grand Canyon (North Sea) — 100% utilization during Q1 2019 performing trenching operations e Grand Canyon II (GOM) — 72% utilization during Q1 2019 performing ROV
Slide 15: Utilization
Utilization 100% 80% 74% 79% _73% 78% 60% - mQ1 2019 40% 9 Q4 2018 B08; Q1 2018 fo 0% Well Intervention Vessels ROV and Trencher Support ROVs and Trenchers Vessels * Q5000 * Grand Canyon’ * 46 ROVs? + Q4000 * Grand Canyon II" * 1 ROVDrill unit? + Seawell * Grand Canyon III" + 5 Trenchers + Well Enha
Slide 16: Key Financial Metrics
Mikey Financial Metrics NeRGY SOLUTIONS Navigating the present, focusing on the future
Slide 17: Debt Instrument Profile
Debt Instrument Profile Principal Payment Schedule at 3/31/19 Total funded debt! of $466 million at 3/31/19 ($ in millions) e $125 million Convertible Senior Notes due 2022 — 4.25% e L 200 e $125 million Convertible Senior Notes due 2023 — 4.125% S136 $133 $133 illi _ 9 e $33 million Term Loan —LIBO
Slide 18: Debt & Liquidity Profile
18 Debt & Liquidity Profile $1,200 (8 in millions) $800 $554 $400 $76 $0 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 3/31/49 mm LT Debt' mmNet Debt? -+-Liquidity* Liquidity of approximately $367 million at 3/31/19 Long-term debt is net of unamortized debt issuance costs and discount of our
Slide 19: 2019 Outlook
ing on the future Navigating the present, focus M2019 Outlook
Slide 20: 2019 Outlook: Forecast
2019 Outlook: Forecast ($ in millions) 2019 2018 Outlook Actual Revenues $ 700 - 760 $ 740 Adjusted EBITDA‘? 165 - 190 162 Capital Additions® ~140 135 Revenue Split: Well Intervention $ 545 - 620 $ 561 Robotics 145 - 160 159 Production Facilities” 50- 55 64 Eliminations (40) - (75) (44) Total $ 700
Slide 21: 2019 Outlook: Well Intervention
M2019 Outlook: Well Intervention e Total backlog at March 31, 2019 was approx. $1.1 billion, including $0.8 billion for Well Intervention e Gulf of Mexico e 4000 - contracted backlog through May 2019, with visibility into Q4 2019 e Q5000 — contracted with BP for 270 days through Q3, then available i
Slide 22: 2019 Outlook: Robotics
M2019 Outlook: Robotics e Improved cost structure resulting from the Grand Canyon II hedge expiration in July 2019 and termination of the Grand Canyon vessel charter in October 2019 e Grand Canyon (North Sea) — expected to perform trenching work through scheduled return of the vessel in October 2019
Slide 23: 2019 Outlook: Capital Additions & Balance Sheet
2019 Outlook: Capital Additions & Balance Sheet 2019 Capital Additions are currently forecasted at approximately $140 million, consisting of the following: e Growth Capex — $115 million’ related to completion of the Q7000 and related intervention system: o $112 million for Q7000, including a $69 mil
Slide 24: Non-GAAP Reconciliations
BNon- -GAAP Reconciliations ENERGY SOLUTIONS 24
Slide 25: EBITDA and Free Cash Flow definitions and reconciliations
We define EBITDA as earings before income taxes, net interest expense, gain or loss on extinguishment of long-term debt, net other income or expense, and depreciation and amortization expense. Non-cash losses on equity investments are also added back if applicable. To arrive at our measure of Adjust
Slide 26: Follow Helix ESG on Twitter
Follow Helix ESG on Twitter: www.twitter.com/Helix_ESG Join the discussion on Linkedin: Facebook elixEne!
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