Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q1 2017 Earnings Presentation
26 slides from Helix Energy Solutions's earnings presentation, Apr 24, 2017
Slide 1: First Quarter 2017 Conference Call
HELIX ENERGY SOLUTIONS First Quarter 2017 Ne reer Call
Slide 2: Forward Looking Statements
ENERGY SOLUTIONS a HELIX — Forward Looking Statements ! This presentation contains forward-looking statements that involve risks, uncertainties and assumptions that could Y/ Private Securities Litigation Refor f 1995, including, without limitation, any statements regarding our strategy; any statemen
Slide 3: Presentation Outline
ENERGY SOLUTIONS em HELIX Presentation Outline ao e Executive Summary (pg. 4) e Operational Highlights by Segment (pg. 8) e Key Financial Metrics (pg. 15) 2017 Outlook (pg. 18) e Non-GAAP Reconciliations (pg. 24) e Questions & Answers OV Operations on Grand Canyon II Navigating the present, focusing
Slide 4: Executive Summary
HELIX Executive Summary
Slide 5: Executive Summary
ENERGY SOLUTIONS Am HELIX Executive Summar a 4 (Sin millions, except per share data) Three Months Ended 3/31/2017 3/31/2016 12/31/2016 Revenues $ 15 ¢ 1 $= 128 Gross profit (loss) $ a $ (7) $ 18 -1% -19% 14% Goodwill impairment $ - $ - $ (45) Non-cash losses on equity investment $ - $ - $ (2) Net lo
Slide 6: Executive Summary: Operations
ENERGY SOLUTIONS em HELIX Executive Summar a J Operations Q1 2017 net loss of $16 million, $(0.11) per diluted share, compared to Q4 2016 net loss of $54 million, $(0.46) per diluted share Q1 2017 Adjusted EBITDA’ of $15 million compared to Adjusted EBITDA of $27 million in Q4 2016 Well Intervention
Slide 7: Executive Summary: Balance Sheet
Executive Summary HELIX Ae HELIX Balance Sheet e Liquidity’ of approximately $594 million at 3/31/17 e Cash and cash equivalents totaled $538 million at 3/31/17 © $220 million of net cash proceeds associated with our public offering of approximately 26.5 million shares of common stock in January 201
Slide 8: Operational Highlights
Bm HELIX Operational Highlights Navigating the present, focusing on the future
Slide 9: Business Segment Results
ENERGY SOLUTIONS a HELIX Business Segment Results ! First Quarter 2017 (Sin milions) ‘Three Months Ended + 59% utilization across the well intervention fleet 3512017 3s12016 Tas112016 + Q4000 83% utilization; Q5000 97% utilization > ~ a 7 + Well Enhancer 60% utilization; Seawell 53% utilization; Ska
Slide 10: Well Intervention - GOM
ENERGY SOLUTIONS em HELIX Well Intervention - GOM co Gulf of Mexico e Q5000 remains on contract; utilized 97% in Q1 2017 Q4000 was 83% utilized in Q1 2017 and began scheduled dry-dock activities on March 17"; the vessel is expected to complete the dry-dock and return to service in early May; the ves
Slide 11: Well Intervention - North Sea
HELIX Well Intervention — North Sea al ENERGY SOLUTIONS North Sea e Well Enhancer 60% utilized in Q1 2017; operations commenced in February; work performed for multiple clients throughout the quarter e Seawell 53% utilized in Q1 2017; vessel was stacked following successful dry-dock in Q4 2016; comm
Slide 12: Well Intervention - Brazil
ENERGY SOLUTIONS em HELIX Well Intervention - Brazil co Brazil e Siem Helix 1 continued with Petrobras inspection and acceptance process e Siem Helix 1 accepted and placed in service in mid- April 2017; vessel commencing operations at reduced day rates as we work through certain items identified in
Slide 13: Robotics
ENERGY SOLUTIONS Ge HELIX e 37% chartered vessel fleet utilization in Q1 2017; 36% utilization for ROVs, trenchers and ROVDrills Deep Cygnus had 54 days of utilization during Q1 2017 including ~33 days for trenching project in North Sea that commenced in late 2016 and 15 days transit to Israel for a
Slide 14: Utilization
em HELIX Utilization 1 ENERGY SOLUTIONS 100% 80% 60% =Q1 2017 mQ4 2016 40% = Q1 2016 20% 0% ROV and por ove anc reefer + 2400 + Deep Cygnus! s + Stand! Consiuctor2 + Grand Canyon’ 28 Ovo lis + Seawell * Grand Canyon It +5 Tre + Well Enhancer + REM Installer! + 5000 + Spot vessels! + Helix 534° ‘Char
Slide 15: Key Financial Metrics
¢ = W ENERGY SOLUTIONS Key Financial Metrics
Slide 16: Debt Instrument Profile
ENERGY SOLUTIONS Ae LIELIX Total funded debt! of $639 million at end of Q1 2017 © $60 million Convertible Senior Notes due 2032 — 3.25%? © $125 million Convertible Senior Notes due 2022 — 4.25% © $186 million Term Loan —LIBOR + 4.50% © Annual amortization payments of $26 million e $80 million MARAD
Slide 17: Debt & Liquidity Profile
Am HELIX Debt & Liquidity Profile’ 1 ENERGY SOLUTIONS $2,000 $1,200 @ — Sinmilions) $1,500 - $900 $1,938 $1,398 = . 3 3 = 8 $1,000 3600 $500 $300 $0 42/31/2008 12/31/2009 12/31/2010 12/31/2011 123172012 12312013 1231/2014 1231/2015 1213172016 03/31/2017 mmLT Debt mmmINet Debt -©- Liquidity Liquidity
Slide 18: 2017 Outlook
Ae HELIX 2017 Outlook ———— SSS SSS Ne SS = = Navigating the present, focusing on the future
Slide 19: 2017 Outlook: Forecast
ENERGY SOLUTIONS em HELIX 2017 Outlook: Forecast co (Sinmitions) 2017 2016 Outlook Actual Revenues ~570$ 488 EBITDA ~ 105-125 90 CAPEX ~210 189 Revenue Split: Well Intervention $ 375 $ 294 Robotics 160 161 Production Facilities 65 72 Elimination 3) 0) Total ~570 $ 488 Key forecast assumptions: Siem
Slide 20: 2017 Outlook: Well Intervention
ENERGY SOLUTIONS Ae LIELIX 2017 Outlook: Well Intervention ! Total backlog as of March 31, 2017 was approximately $1.9 billion Q4000 contracted backlog continues into Q3 2017, and utilization for 2017 is forecasted to remain high Q5000 is under contract for BP, high utilization forecasted for 2017;
Slide 21: 2017 Outlook: Robotics
em HELIX 2017 Outlook: Robotics al ENERGY SOLUTIONS e Utilization for our Robotics fleet will be challenging in 2017 Seasonal factors contributed to our lower utilization during Q1 2017; we do expect improvement in utilization beginning in Q2 2017 and continuing into the summer e Utilization for Gra
Slide 22: 2017 Outlook: Capital Expenditures
ENERGY SOLUTIONS oa HELIX 2017 Outlook: Capital Expenditures ! f d at $210 Y PP) 2017 Capital Exp lis million, isting of the following Growth Capex - $195 million in growth capital, primarily for newbuilds currently underway, including: © $90 million for Q7000 © $85 million for Siem Helix 1 and Siem
Slide 23: 2017 Outlook: Balance Sheet
ENERGY SOLUTIONS em HELIX 2017 Outlook om 2cxs018T0% Balance Sheet @ In Q1 2017 we received net proceeds of approximately $220 million associated with the public offering of approximately 26.5 million shares of our common stock; proceeds will be used for general corporate purposes e Our total funded
Slide 24: Non-GAAP Reconciliations
wacrsounors NON-GAAP Reconciliations Ae HELIX Navigating the present, focusing on the future
Slide 25: Non-GAAP Reconciliations
HELIX Non-GAAP Reconciliations 1 ENERGY SOLUTIONS ‘Twelve Months Sin millions) Three Months Ended Maes 3/31/2017 3/31/2016 12/31/2016 12/31/2016 Net loss $ (16) $ (28) $¢ (84) $ (81) Adjustments Income tax benefit 6) (9) (3) (12) Net interest expense 5 1 6 31 Loss on repurchase of long-term debt - -
Slide 26: HLX Listed NYSE
ENERGY SOLUTIONS Oe HELIX HLX Listed NYSE® Follow Helix on Twitter - @Helix_ESG www.linkedin.com/company/helix-energy-solutions-group
Helix Energy Solutions Group — Q1 2017 Earnings Presentation on 6ix