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8-K - HELIX ENERGY SOLUTION GROUP FORM 8-K DATED 12-2-09 - HELIX ENERGY SOLUTIONS GROUP INC | form8k.htm |
EX-99.2 - PRESS RELEASE DATED 11-30-09 - HELIX ENERGY SOLUTIONS GROUP INC | exh992.htm |
Changing the way you
succeed.
December
2009
1
Well
Enhancer and
Seawell
intervention vessels in Aberdeen, Scotland
Changing the way you
succeed.
This
presentation contains forward-looking statements within the meaning of Section
27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. All such statements, other than statements of
historical fact, are statements that could be deemed “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, including, without limitation, any projections of revenue, gross margin,
expenses, earnings or losses from operations, or other financial items; future production volumes, results of
exploration, exploitation, development, acquisition and operations expenditures, and prospective reserve levels of
property or wells; any statements of the plans, strategies and objectives of management for future operations; any
statements concerning developments, performance or industry rankings; and any statements of assumptions
underlying any of the foregoing. Although we believe that the expectations set forth in these forward-looking
statements are reasonable, they do involve risks, uncertainties and assumptions that could cause our results to differ
materially from those expressed or implied by such forward-looking statements. The risks, uncertainties and
assumptions referred to above include the performance of contracts by suppliers, customers and partners; employee
management issues; complexities of global political and economic developments; geologic risks and other risks
described from time to time in our reports filed with the Securities and Exchange Commission (“SEC”), including the
Company’s Annual Report on Form 10-K for the year ended December 31, 2008 and subsequent quarterly reports
on Form 10-Q. You should not place undue reliance on these forward-looking statements which speak only as of the
date of this presentation and the associated press release. We assume no obligation or duty and do not intend to
update these forward-looking statements except as required by the securities laws.
1933 and Section 21E of the Securities Exchange Act of 1934. All such statements, other than statements of
historical fact, are statements that could be deemed “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, including, without limitation, any projections of revenue, gross margin,
expenses, earnings or losses from operations, or other financial items; future production volumes, results of
exploration, exploitation, development, acquisition and operations expenditures, and prospective reserve levels of
property or wells; any statements of the plans, strategies and objectives of management for future operations; any
statements concerning developments, performance or industry rankings; and any statements of assumptions
underlying any of the foregoing. Although we believe that the expectations set forth in these forward-looking
statements are reasonable, they do involve risks, uncertainties and assumptions that could cause our results to differ
materially from those expressed or implied by such forward-looking statements. The risks, uncertainties and
assumptions referred to above include the performance of contracts by suppliers, customers and partners; employee
management issues; complexities of global political and economic developments; geologic risks and other risks
described from time to time in our reports filed with the Securities and Exchange Commission (“SEC”), including the
Company’s Annual Report on Form 10-K for the year ended December 31, 2008 and subsequent quarterly reports
on Form 10-Q. You should not place undue reliance on these forward-looking statements which speak only as of the
date of this presentation and the associated press release. We assume no obligation or duty and do not intend to
update these forward-looking statements except as required by the securities laws.
The
United States Securities and Exchange Commission permits oil and gas companies,
in their filings with the SEC,
to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation
tests to be economically and legally producible under existing economic and operating conditions. Statements of
proved reserves are only estimates and may be imprecise. Any reserve estimates provided in this presentation that
are not specifically designated as being estimates of proved reserves may include not only proved reserves but also
other categories of reserves that the SEC’s guidelines strictly prohibit the Company from including in filings with the
SEC. Investors are urged to consider closely the disclosure in the Company’s 2008 Form 10-K.
to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation
tests to be economically and legally producible under existing economic and operating conditions. Statements of
proved reserves are only estimates and may be imprecise. Any reserve estimates provided in this presentation that
are not specifically designated as being estimates of proved reserves may include not only proved reserves but also
other categories of reserves that the SEC’s guidelines strictly prohibit the Company from including in filings with the
SEC. Investors are urged to consider closely the disclosure in the Company’s 2008 Form 10-K.
2
Changing the way you
succeed.
Helix
Energy Solutions Group provides life-of-field
services and development solutions to offshore
energy producers worldwide. Helix actively reduces
finding and development costs through a unique mix
of offshore production assets, service
methodologies, and highly skilled personnel.
services and development solutions to offshore
energy producers worldwide. Helix actively reduces
finding and development costs through a unique mix
of offshore production assets, service
methodologies, and highly skilled personnel.
Owen
Kratz
President
and Chief Executive Officer
Presenter
3
Changing the way you
succeed.
Historical
Profile
• Deepwater subsea
contracting
• Deepwater well
intervention
•
Robotics
• Oil and
gas
•
Deepwater
•
Shelf
•
Offshore production facilities
•
Shelf contracting (Cal Dive)
•
Reservoir evaluation and consulting
The
Future
• Deepwater
contracting services
• Well
Intervention
•
Robotics
• Subsea
Construction
• Deepwater oil and
gas
• Minimize
exploration capex
and risk
and risk
•
Offshore production facilities
The
result: A
company focused on
deepwater activities and a conservative balance sheet
deepwater activities and a conservative balance sheet
Helix
ESG: Transforming the Business Model
4
Changing the way you
succeed.
Services
For Each Stage of the Field Life Cycle
5
Changing the way you
succeed.
Production
Facilities
Marco Polo
TLP (50%)
Independence
Hub Semi (20%)
Helix
Producer I (~87%) (2010)
Subsea
Construction
Construction
Pipelay
Intrepid
Express
Intrepid
Express
Caesar- new
to fleet
ROV
39 ROVs
2 ROV Drill Units
5 Chartered Vessels
39 ROVs
2 ROV Drill Units
5 Chartered Vessels
5 Trenchers
(200 - 2000hp)
Well
Intervention
Q4000
Seawell
Well
Enhancer- new to fleet
Mobile
VDS/SILs
Helix
Oil & Gas / ERT
GOM shelf and
deepwater
PV-10 $1.9
billion @
12/31/2008
12/31/2008
Proved
reserves = 665 bcfe
(12/31/2008)
(12/31/2008)
2009
projected production
43 - 47 bcfe
43 - 47 bcfe
Helix
Business Segments
6
Changing the way you
succeed.
The
Helix Fleet
7
Caesar
departing
for sea trials, Nantong, China
Changing the way you
succeed.
MODU
DP3 Q4000
MSV
DP3 Well
Enhancer
Helix
provides well operation and decommissioning services with the Seawell
riserless well
intervention vessel, the flagship Q4000 semisubmersible, the Well Enhancer wireline / slickline /
coiled tubing intervention vessel, and the Subsea Intervention Lubricator system.
intervention vessel, the flagship Q4000 semisubmersible, the Well Enhancer wireline / slickline /
coiled tubing intervention vessel, and the Subsea Intervention Lubricator system.
SIL
System
MSV
DP2 Seawell
Well
Intervention Assets
8
Changing the way you
succeed.
DP
Reel Lay Vessel
Express
Express
DP
S-Lay Vessel
Caesar
Caesar
DP
Reel Lay Vessel
Intrepid
Intrepid
Caesar’s onboard
pipe welding and testing
capability allows the vessel to lay virtually
unlimited lengths of pipe up to 36” in diameter.
capability allows the vessel to lay virtually
unlimited lengths of pipe up to 36” in diameter.
Helix’s
flagship pipelay and subsea construction
vessel has established an extensive track record
of field installation projects around the world.
vessel has established an extensive track record
of field installation projects around the world.
Intrepid has the
flexibility to be deployed as a
pipelay, installation or saturation diving vessel.
pipelay, installation or saturation diving vessel.
Subsea
Construction Vessels
9
Changing the way you
succeed.
Helix
is an industry leading provider of ROV and subsea trenching services
to deepwater operators worldwide.
to deepwater operators worldwide.
The
Helix ROV fleet consists
of 39 vehicles, covering the
spectrum of deepwater
construction services.
of 39 vehicles, covering the
spectrum of deepwater
construction services.
The 600
hp Supertrencher II
system is designed to
operate at water depths in
excess of 6,500 feet.
system is designed to
operate at water depths in
excess of 6,500 feet.
The
state of the art I-Trencher
system trenches, lays pipe up
to 16” in diameter, and backfills
in a single operation.
system trenches, lays pipe up
to 16” in diameter, and backfills
in a single operation.
Helix
ROV Systems
10
Changing the way you
succeed.
Island
Pioneer
Olympic
Triton
Olympic
Canyon
Seacor
Canyon
Northern
Canyon
Chartered
support vessels allows Helix to adjust the size and capability of its
fleet to cost-effectively meet industry demands.
fleet to cost-effectively meet industry demands.
ROV/Construction
Support Vessel Fleet
11
Changing the way you
succeed.
• Installation
completed of Disconnectable Turret
System (DTS) receptacle, external thruster
porches, cranes and all production modules
System (DTS) receptacle, external thruster
porches, cranes and all production modules
• DTS buoy installed
on location by Q4000
• Installation of
2,500-ton production modules
completed; module interconnection underway
completed; module interconnection underway
• Expect deployment in
Phoenix field
in Q2 2010
in Q2 2010
HPI
production module installation
Disconnectable
Transfer System
Transfer System
Helix
Producer I FPU
12
Changing the way you
succeed.
Contracting
Services
New
shore base facility in Ingleside,Texas fully
operational
operational
– Pipe stalk length
5,230 feet
– 300’ x 700’slip can
accommodate two
Helix Subsea Construction vessels side
by side
Helix Subsea Construction vessels side
by side
Welding
of Helix Danny 36-mile
8 x 12-inch pipe-in-pipe began early August
8 x 12-inch pipe-in-pipe began early August
Aerial
view of Ingleside Shore Base
Helix
Danny pipe welding
Automated
pipe tension system
13
Changing the way you
succeed.
Helix
Oil & Gas
14
Gunnison
platform, Gulf of Mexico
Changing the way you
succeed.
ERT
Deepwater Portfolio
15
Legend:
Producing
Field
Non
Producing Field
Discovery
Prospect
Gunnison
Bushwood
Phoenix
Interests in 47
Deepwater Blocks -13 Developed, 34 Undeveloped
379
BCFE Proved Reserves- 32 MMCFE Net Daily Production
2.7 Net
TCFE Un-Risked Reserve Potential, 1.0 TCFE Risked
Internal Prospect
Generation via Large, In-House 3-D Seismic Library Large,
Recent Long Offset 3-D Seismic Database,+1,500 Blocks
Recent Long Offset 3-D Seismic Database,+1,500 Blocks
Experienced
Exploration/Drilling/Operations Team - 25+ years avg.
Changing the way you
succeed.
• Proven Reserve,
Undiscounted
Future Net Revenues: $2.6 billion
Undiscounted, Discounted PV-10:
$1.9 billion (pre-tax)
Future Net Revenues: $2.6 billion
Undiscounted, Discounted PV-10:
$1.9 billion (pre-tax)
• 665 Bcfe Proved
Reserves
– 379 Bcfe
deepwater,
273 Bcfe shelf, 13 North Sea
273 Bcfe shelf, 13 North Sea
– Proved Developed /
PUD Ratio -
50/50
50/50
– Natural Gas / Oil
Mix - 70/30
• Discoveries and
Extensions
resulted in 176 Bcfe of reserve
additions
resulted in 176 Bcfe of reserve
additions
– 371% production
replacement rate
– 2008 F&D costs -
$2.44 / mcfe*
*2008 Exploration +
Development + Proved Property Acquisition / Exploratory Additions (U.S.
Only)
O&G
- 2008 Reserve Report Highlights
16
Changing the way you
succeed.
Helix
Outlook
Helix
Producer I topside
module installation progress at Kiewit Offshore Services fabrication
yard
17
Changing the way you
succeed.
2009
Outlook
18
• Contracting Services
demand in 2H 2009 has
softened, as expected
softened, as expected
• Express dry-dock, transit
and utilization on Helix
Danny pipeline is impacting external revenues
Danny pipeline is impacting external revenues
• Capital expenditures
of approximately $340 to
$360 million for 2009, $209 million spent
year-to-date
$360 million for 2009, $209 million spent
year-to-date
• $205 million
relates to completion of three
major vessel projects (Well Enhancer, Caesar
and Helix Producer I)
major vessel projects (Well Enhancer, Caesar
and Helix Producer I)
• $55 million relates
to development of Danny
and Phoenix oil fields
and Phoenix oil fields
• Improved liquidity
and debt levels (see slide 20)
Express
spooling pipe for Helix Danny project
Changing the way you
succeed.
2009
Outlook (continued)
19
Oil
and Gas
• Production range:
43 - 47 Bcfe
• Oil and gas
prices
• Without hedges:
$4.37 /mcfe;
$66.41 /bbl
$66.41 /bbl
• With realized
hedges and mark-to-
market adjustments (gas only):
$7.45 /mcfe; $70.91 /bbl
market adjustments (gas only):
$7.45 /mcfe; $70.91 /bbl
HPI
transfer buoy transit template
Changing the way you
succeed.
Significant
Balance Sheet Improvements
Debt
Liquidity*
of $781 million at 9/30/09
* Defined as available revolver capacity plus cash
20
Changing the way you
succeed.
Liquidity
and Capital Resources
21
• Company remains
focused on its efforts to monetize non-core assets and
businesses
businesses
• Completed (≈ $600
million pre-tax):
•Oil and gas
assets
• Bass Lite sale
December 08 & January 09 ($49 million)
• EC 316 sale in
February 09 ($18 million)
• Cal
Dive
• Sold a total of
15.2 million shares of Cal Dive common stock to Cal Dive
in January and June 2009 for aggregate proceeds of $100 million
in January and June 2009 for aggregate proceeds of $100 million
• Sold 45.8 million
Cal Dive shares in secondary offerings for proceeds of
≈ $405 million (net of offering costs) in June and September 2009
≈ $405 million (net of offering costs) in June and September 2009
• Sold
Helix RDS for $25 million in April 2009
Company
will continue to seek a sale of its shelf oil and gas
properties
Changing the way you
succeed.
Liquidity
and Capital Resources
Credit
Facilities, Commitments and Amortization
– $435
Million Revolving Credit Facility -
UNDRAWN.
• Facility extended to
November 2012.
• In July 2011,
commitments reduced to $407 million.
• $50 million of LCs
in place.
– $416
Million Term Loan B - Committed
facility through June 2013. $4.3
million
principal payments annually.
principal payments annually.
– $550
Million High Yield Notes - Interest only
until maturity (January 2016) or called
by Helix. First Helix call date is January 2012.
by Helix. First Helix call date is January 2012.
– $300
Million Convertible Notes - Interest only
until put by noteholders or called by
Helix. First put/call date is December 2012, although noteholders have the right to
convert prior to that date if certain stock price triggers are met ($38.56).
Helix. First put/call date is December 2012, although noteholders have the right to
convert prior to that date if certain stock price triggers are met ($38.56).
– $119
Million MARAD - Original 25 year
term; matures February 2027. $4.4
million
principal payments annually.
principal payments annually.
22
Changing the way you
succeed.
Financial
Information
23
Express
spooling
pipe at Ingleside Shore Base, Gulf of Mexico
Changing the way you
succeed.
Note:
Excludes Cal Dive and Helix RDS revenues from 2005-2009.
See Non-GAAP reconciliations on slides 28-30.
See Non-GAAP reconciliations on slides 28-30.
($
amounts in millions)
$575
$840
$891
$1,337
$1,152
Consistent
Top-Line Growth
24
Changing the way you
succeed.
- 2006
results exclude the impact of
the gain on sale in the Cal Dive IPO
and estimated incremental
overhead costs during the year.
the gain on sale in the Cal Dive IPO
and estimated incremental
overhead costs during the year.
- 2007
results exclude the impact of
the Cal Dive gain, impairments and
other unusual items.
the Cal Dive gain, impairments and
other unusual items.
- 2008 results exclude
non-cash
charges of $964 million for
reduction in carrying values of
goodwill and certain oil and gas
properties.
charges of $964 million for
reduction in carrying values of
goodwill and certain oil and gas
properties.
- YTD 9/30/2009
results exclude the
impact of Cal Dive gains,
impairments and other unusual
items.
impact of Cal Dive gains,
impairments and other unusual
items.
(a) See
Non-GAAP reconciliations on slides 28-30.
Earnings
Per Share (a)
25
Changing the way you
succeed.
-2006
results exclude the impact
of the gain on sale in the Cal
Dive IPO and estimated
incremental overhead costs
during the year.
of the gain on sale in the Cal
Dive IPO and estimated
incremental overhead costs
during the year.
-2007
results exclude the impact
of the Cal Dive gain,
impairments and other unusual
items.
of the Cal Dive gain,
impairments and other unusual
items.
-2008 results exclude
non-cash
impairments.
impairments.
-Excludes Cal Dive
contribution.
(a) See
Non-GAAP reconciliations on slides 28-30.
($
amounts in millions)
$278
$449
$432
$575
$609
Significant
Cash Generation - EBITDAX
26
Changing the way you
succeed.
Non-GAAP
Reconciliations
Reconciliations
27
Changing the way you
succeed.
Non-GAAP
Reconciliations
28
Changing the way you
succeed.
Non-GAAP
Reconciliations
29
Changing the way you
succeed.
Non-GAAP
Reconciliations
30
Changing the way you
succeed.
31