Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Cal Dive International — Q3 2004 Earnings Presentation
16 slides from Helix Energy Solutions's earnings presentation, Nov 3, 2004
Slide 1: Third Quarter 2004 Earnings Conference Call
Third Quarter 2004 Earnings Conference Call November 3, 2004 Owen Kratz - Chief Executive Officer Martin Ferron - President Wade Pursell - Chief Financial Officer
Slide 2: Agenda
Agenda I. Summary of Results II. Operational Highlights by Segment A. Marine Contracting i. Shelf Contracting ii. Deepwater & Robotics iii. Well Operations B. Production Facilities C. Oil & Gas Production III. Strategic Overview and Outlook IV. Questions & Answers 2
Slide 3: Forward-Looking Statements
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 historica
Slide 4: Summary of Results
Summary of Results (all amounts in thousands, except per share amounts and percentages) Third Quarter Second Nine Months Quarter 2004 2003 2004 2004 2003 Revenues $131,987 $103,855 $127,701 $380,403 $294,594 Gross Profit 45,726 24,005 41,415 118,883 67,398 35% 23% 32% 31% 23% Net Income 22,794 8,937
Slide 5: Long Term Debt
Long Term Debt 250 (Amounts in Millions) 200 150 100 50 0 09/30/04 06/30/04 12/31/03 12/31/02 Net Debt To Book Capitalization 17% 20% 35% 40% MAR AD Revolving Credit Construction and Other 5
Slide 6: The Impact of Hurricane Ivan on Cal Dive Earnings
The Impact of Hurricane Ivan on Cal Dive Earnings ¾ Q3: About half of our Shelf properties were shut in for approximately four days. Marco Polo was also shut-in for the same period while Gunnison, much further to the west, was not shut-in. Inspection work for our Marine Contracting segment picked up
Slide 7: Marine Contracting (MC)
Marine Contracting (MC) (Amounts reflected are before intercompany eliminations) Third Quarter Second Quarter 2004 2003 2004 Revenues $78,860 $75,120 $71,763 Gross Profit 12,509 7,743 7,834 16% 10% 11% Q3: Overall revenue and profitability improved despite a grounding incident with the Intrepid and
Slide 8: MC – Shelf
MC – Shelf Utilization Third Quarter Second Quarter 2004 2003 2004 52% 61% 48% ¾ Utilization improved sequentially but declined on a year over year basis, mainly due to longer weather delays caused by hurricane activity. ¾ Demand for saturation diving services remains robust but the surface diving m
Slide 9: MC – Deepwater & Robotics
MC – Deepwater & Robotics Utilization Third Quarter Second Quarter 2004 2003 2004 Deepwater Contracting 52% 79% 57% Robotics 45% 53% 46% ¾ Utilization declined sequentially due to the grounding incident with the Intrepid, and on a year over year basis, as the Witch Queen and Merlin remain coldstacke
Slide 10: MC – Deepwater & Robotics
MC – Deepwater & Robotics ¾ The Eclipse enjoyed another quarter of full utilization and good rates before entering drydock in very late September. She is due to resume operations in early November. ¾ The robotics group benefited from a seasonal pick-up in ROV activity, especially in the North Sea, a
Slide 11: MC – Well Operations
MC – Well Operations Utilization Third Quarter Second Quarter 2004 2003 2004 73% 81% 73% ¾ Utilization declined on a year over year basis mainly due to the mobilization of the Seawell for Norwegian work. This process took longer than expected but the vessel commenced work in early October. ¾ The Q40
Slide 12: Production Facilities
Production Facilities Third Quarter Second Quarter 2004 2003 2004 Equity in Earnings $3,062 $─ $1,310 Production throughput (MBbl) 1,876 ─ ─ ¾ Q3: In addition to the demand charges which began in Q2 with mechanical completion of the TLP, production commenced at Marco Polo in mid-July and our associa
Slide 13: Oil & Gas Production
Oil & Gas Production Third Quarter Second Quarter 2004 2003 2004 Revenues $59,999 $33,958 $61,283 Gross Profit 33,277 16,638 33,619 55% 49% 55% Production (BCFe): Shelf 7.7 7.2 8.0 Gunnison 2.3 ___ 2.0 Average Commodity Prices (net of hedging impact): Oil/Bbl $38.12 $27.41 $32.97 Gas/Mcf 5.82 4.61 6
Slide 14: Oil & Gas Production
Oil & Gas Production ¾ Q3: 9 Shelf: Commodity prices remained robust in the third quarter with our net realized price per BCFe up 31% from the prior year and essentially flat with last quarter. Shelf production improved 7% over year ago levels due primarily to successful results from well exploitati
Slide 15: Hedging: As of September 30, 2004
Hedging: As of September 30, 2004 Production Period Instrument Average Monthly Weighted Type Volumes Average Price Crude Oil: October – December 2004 Swaps 75 MBbl $31.53 January – June 2005 Swaps 20 MBbl $35.80 January – September 2005 Collars 40 MBbl $37.00 - $47.48 Natural Gas: October – December
Slide 16: 2004 Report Card
2004 Report Card Marine Contracting ¾ 2% Margin improvement ¾ Reduce Direct Cost $10 million Oil & Gas ¾ 40 BCFe of Production ¾ PUD acquisition in GOM ¾ Mature production acquisition Production Facilities ¾ One new Gateway deal Financial ¾ Flexible credit structure ¾ No equity dilution Safety ¾ TRI
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