Helix Energy Solutions Group, Inc. · NYSE:HLX
Helix Energy Solutions — Cal Dive International — Sidoti & Company Presentation (January 2005)
22 slides from Helix Energy Solutions's conference presentation, Jan 18, 2005
Slide 1: Cal Dive International - Sidoti & Company
Cal Dive International Sidoti & Company Palm Beach, Florida January 18, 2005
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements in this presentation are “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are neither statements of historical fact nor guarantees of future performance or events. Forwa
Slide 3: Agenda
Agenda 1. CDI Business Model 2. Marine Contracting 3. Oil and Gas Production 4. Production Facilities 5. Financial 6. Report Cards 3
Slide 4: Cal Dive Business Model: Three Business Segments
Cal Dive Business Model: Three Business Segments Marine Contracting Oil & Gas Production Facilities Well Ops Mature Properties Marco Polo TLP Subsea Construction PUDS (incl. Gunnison) Gunnison Spar 4
Slide 5: Evolution of CDI Model
Evolution of CDI Model Marine Contracting Oil & Gas Production Facilities 1964 1992 2001 We Obtain construction/IRM/Abandonment and well operations utilization for our marine assets by: • Providing those services directly to the market place • Acquiring mature oil and gas fields • Acquiring/partneri
Slide 6: Countercyclical Effect of Segments
Countercyclical Effect of Segments EBITDA in Millions Marine Contracting + Oil & Gas + Production Facilities 1000 1000 1000 100 100 100 10 10 10 1 1 1 1997 1998 1999 2000 2001 2002 2003 2004 1997 1998 1999 2000 2001 2002 2003 2004 1997 1998 1999 2000 2001 2002 2003 2004 Est. Est. Est. = Production C
Slide 7: $800 Million Investment Program Completed
$800 Million Investment Program Completed Marine Contracting Oil & Gas Production Facilities $450 Million $225 Million $125 Million Ø Q4000 Ø Interests in Mature offshore Ø 50% Stake in Marco Polo properties Platform Ø Robotics Capability Ø Investments in Gunnison and Ø Well Ops Business in other PU
Slide 8: CDI: Marine Contracting: Strategic Objective
CDI: Marine Contracting: Strategic Objective Deepwater Contracting Well Operations Earn a Superior Financial Return, Relative to other Marine Contractors, through a mix of internal and external work and by a focus on value added assets and services e.g. Well Operations and Pipe Burial Shelf (OCS) Co
Slide 9: Marine Contracting – 2005 Growth Drivers (1)
Marine Contracting – 2005 Growth Drivers (1) Ø Increasing drill rig utilization and rates Ø Increasing number of subsea tree orders and deployments. Ø Increased demand in Norwegian North Sea Ø Tender for dedicated Norwegian vessel ØPotential transfer of Q4000 for North Sea season 9
Slide 10: Marine Contracting – 2005 Growth Drivers (2)
Marine Contracting – 2005 Growth Drivers (2) Ø Increasing volume of tie back reservoir projects Ø Increasing activity levels in international areas Ø Impact of $ / Euro exchange rate on foreign competition Ø Increasing volume of pipeline burial projects Ø Increased levels of natural gas drilling 10
Slide 11: Oil and Gas Production Strategic Objective
Oil and Gas Production Strategic Objective Earn a superior financial return, relative to E&P companies, from the cost effective exploitation of both mature and proven/undeveloped (PUD) reservoirs 11
Slide 12: Oil and Gas Production: 2005 Growth Drivers
Oil and Gas Production: 2005 Growth Drivers Ø Increasing number of PUD opportunities as HUB facilities are deployed in Gulf of Mexico (GOM) Ø Opportunities for mature property deals possible if commodity prices moderate Ø International areas opening up from our model e.g. North Sea Ø Reserve enhance
Slide 13: Production Facilities: Strategic Objective
Production Facilities: Strategic Objective Allegheny Front Runner Yorick Earn a superior return from a blend of: King Kong Ø Demand charges and Mummy K2 Timon tariffs for the use of the Yosemite facilities Marco Shenzi Palmer Polo Ø ERT participation in Neptune Daniel Boone surrounding tie-back Hols
Slide 14: Production Facilities: Outlook (Marco Polo)
Production Facilities: Outlook Marco Polo Ø Jointly owned (50%) with Enterprise P.P. Ø Commenced production in mid-2004 from Marco Polo reservoir. Ø K2/K2 North will be brought on stream during 2005 Ø Full year of production from all three reservoirs with further boost to earnings in 2006 14
Slide 15: Production Facilities: Outlook (Independence Hub)
Production Facilities: Outlook Independence HUB Ø Jointly owned (20%) with Enterprise P.P. Ø Project is in build phase Ø Mechanical completion due in late 2006 Ø First production expected in early 2007 15
Slide 16: Significant Top Line Growth
Significant Top Line Growth Revenues in Millions 600 500 400 AGR % C 31 300 200 100 - 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Projected Estimated Marine Contracting Oil & Gas 16
Slide 17: Record Earnings in 2004 and 2005
Record Earnings in 2004 and 2005 Net Income in Millions 120 100 80 60 40 20 0 1999 2000 2001 2002 2003 2004 2005 Range Projected Estimated 17
Slide 18: Significant Cash Generation
Significant Cash Generation EBITDA in Millions 300 250 200 150 100 50 - 1997 1998 1999 2000 2001 2002 2003 2004 2005 Projected Estimated Range 18
Slide 19: CDI Goal: 10% - 15% ROCI
CDI Goal: 10% - 15% ROCI Percent 25 20 15 10 5 - 1997 1998 1999 2000 2001 2002 2003 2004 2005 Projected Estimated Range 19
Slide 20: Long Term Debt
Long Term Debt 250 (Amounts in Millions) 200 150 100 50 0 12/31/02 12/31/03 12/31/04 Net Debt to Book Capitalization 40% 35% 12% MARAD Revolving Credit Construction and Other 20
Slide 21: 2004 Report Card
2004 Report Card Goals Status Marine Contracting Ø 2% Margin improvement v Ø Reduce Direct Cost $10 million v Oil & Gas Ø 40 BCFe of Production v Ø PUD acquisition in GOM v Ø Mature production acquisition X Production Facilities Ø One new Gateway deal v Financial Ø Flexible credit structure v Ø No e
Slide 22: 2005 Objectives
2005 Objectives Goals Marine Contracting Ø Revenues: $300 – 330 million Ø Margins: 13% – 15% Oil and Gas Ø 40 – 45 BCFe of production Ø PUD acquisition Ø Mature property acquisition Production Facilities Ø Equity earnings: $22 – 27 million Ø Start up of production from K2/K2N Ø Identify and progress
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