Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Q4 2004 Earnings Presentation
20 slides from Helix Energy Solutions's earnings presentation, Mar 2, 2005
Slide 1: Fourth Quarter 2004 Earnings Conference Call
Fourth Quarter 2004 Earnings Conference Call March 2, 2005 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) Fourth Quarter Third Quarter Year Ending 2004 2003 2004 2004 2003 Revenues $162,990 $101,675 $131,987 $543,392 $396,269 Gross Profit (Before Asset Impairment Charges) 56,930 24,685 45,726 175,812 92,083 35% 24% 3
Slide 5: Long Term Debt
Long Term Debt 250 (Amounts in Millions) 200 150 100 50 0 12/31/02 12/31/03 06/30/04 12/31/04 Net Debt To Book Capitalization 40% 35% 20% 10% MARAD 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 Q4/04: The Uncle John, Mystic Viking and several of the Shelf vessels achieved full utilization, at good rates, on post hurricane inspection/clean up work. As expected the net benefit to CDI earnings was a positive contribution of more than $0.05 p
Slide 7: Marine Contracting (MC)
Marine Contracting (MC) (Amounts reflected are before intercompany eliminations and charges for marine asset value impairments) Fourth Quarter Third Quarter 2004 2003 2004 Revenues $101,451 $77,697 $78,860 Gross Profit 16,152 9,794 12,509 16% 13% 16% Asset Impairment Charges: During Q4, the Company
Slide 8: Marine Contracting (MC) cont.
Marine Contracting (MC) cont. ¾ Q4/04: Overall revenue improved both sequentially and year over year mainly due to: the positive impact of Hurricane Ivan (slide 6); high procurement revenue associated with the Seawell in Norway; and better market conditions, especially for the Q4000 and Canyon (robo
Slide 9: MC – Shelf
MC – Shelf Utilization Fourth Quarter Third Quarter 2004 2003 2004 68% 43% 52% ¾ Utilization reached record levels for Q4 due to the positive impact of Hurricane Ivan. ¾ The saturation diving vessels (Cal Divers I & II) had a record combined gross profit for the year, which is even more impressive g
Slide 10: MC – Deepwater & Robotics
MC – Deepwater & Robotics Utilization Fourth Quarter Third Quarter 2004 2003 2004 Deepwater Contracting 64% 74% 52% Robotics 61% 47% 45% ¾ Q4/04: Although the Uncle John and Mystic Viking enjoyed full utilization from Hurricane Ivan work, the Intrepid and Eclipse were both drydocked during the perio
Slide 11: MC – Deepwater & Robotics cont.
MC – Deepwater & Robotics cont. ¾ The Witch Queen is being reactivated in drydock and will be deployed in the Trinidad market beginning in April. We plan to contribute her to a local joint venture company, formed with a local diving company, in return for a stake in the venture. We see good prospect
Slide 12: MC – Well Operations
MC – Well Operations Utilization Fourth Quarter Third Quarter 2004 2003 2004 92% 89% 73% ¾ Q4/04: The Q4000 had another good quarter for both utilization and profitability based on a mix of well intervention, construction and logistical support work. ¾ Unfortunately, the Seawell had a disappointing
Slide 13: MC – Well Operations cont.
MC – Well Operations cont. Q1/05 and Outlook: ¾ The Q4000 is booked until she is planned to enter drydock in April and she has good prospects after that. ¾ The Seawell has excellent utilization prospects for the full year, with a minimum 120 days of Statoil work being a foundation contract. The risk
Slide 14: Production Facilities
Production Facilities Fourth Quarter Third Quarter 2004 2003 2004 Equity in Earnings $3,555 $─ $3,062 Production throughput (MBOe) 2,533 ─ 1,876 ¾ Q4: The equity contribution from Deepwater Gateway (Marco Polo) improved from Q3, due to a full period of production and no hurricane related shut-ins. ¾
Slide 15: Production Facilities: Outlook
Production Facilities: Outlook Independence HUB ¾ Jointly owned (20%) with Enterprise Products Partners ¾ Project is in build phase and will be deployed in MC 920 ¾ Mechanical completion due in late 2006 ¾ First production expected in early 2007 ¾ We see good opportunities for both associated constr
Slide 16: Oil & Gas Production
Oil & Gas Production Fourth Quarter Third Quarter 2004 2003 2004 Revenues $66,833 $35,793 $59,999 Gross Profit 40,762 15,490 33,277 61% 43% 55% Production (BCFe): Shelf 7.1 6.9 7.7 Gunnison 2.7 0.3 2.3 Average Commodity Prices (net of hedging impact): Oil/Bbl $39.77 $27.75 $38.12 Gas/Mcf 6.83 4.94 5
Slide 17: Oil & Gas Production
Oil & Gas Production ¾ Q4: 9 Shelf: Commodity prices remained robust in the fourth quarter with our net realized price per BCFe up 40% from the prior year and 13% over last quarter. Shelf production improved slightly (3%) over year ago levels due primarily to successful results from well exploitatio
Slide 18: Hedging: As of January 31, 2005
Hedging: As of January 31, 2005 Production Period Instrument Average Monthly Weighted Type Volumes Average Price Crude Oil: January – June 2005 Swaps 20 MBbl $35.80 January – September 2005 Collars 40 MBbl $37.00 - $47.48 July – December 2005 Collars 30 MBbl $37.00 - $50.60 Natural Gas: January – Ju
Slide 19: 2004 Report Card
2004 Report Card Goals Status 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 X Production Facilities ¾ One new Gateway deal √ Financial ¾ Flexible credit structure √ ¾ No e
Slide 20: 2005 Objectives
2005 Objectives Goals Marine Contracting ¾ Revenues: $300 – 330 million ¾ Margins: 13% – 15% Oil and Gas ¾ 40 – 45 BCFe of production ¾ PUD acquisition ¾ Mature property acquisition Production Facilities ¾ Equity earnings: $22 – 27 million ¾ Start up of production from K2/K2N ¾ Identify and progress
Helix Energy Solutions Group — Q4 2004 Earnings Presentation on 6ix