Attached files
EXHIBIT
99.1
 |
PRESSRELEASE
www.HelixESG.com
|
Helix
Energy Solutions Group, Inc. · 400 N.
Sam Houston Parkway E., Suite 400 · Houston,
TX 77060-3500 ·
281-618-0400 · fax:
281-618-0505
For Immediate
Release 10-003
Contact: Tony
Tripodo
Date: February
24,
2010
Title: Chief
Financial Officer
Helix
Reports Fourth Quarter 2009 Results
HOUSTON, TX – Helix
Energy Solutions Group, Inc. (NYSE: HLX) reported a net loss of $55.7 million,
or $(0.53) per diluted share, for the fourth quarter of 2009 compared with a net
loss of $861.2 million, or $(9.48) per diluted share, for the same period in
2008, and net income of $3.9 million, or $0.04 per diluted share, in the third
quarter of 2009. Net income for the year ended December 31, 2009 was
$101.9 million, or $0.96 per diluted share, compared with a net loss of $639.1
million, or $(7.05) per diluted share, for the year ended December 31,
2008.
Fourth quarter 2009
results included the following items on a pre-tax basis:
|
·
|
Impairment
charges of $55.9 million primarily associated with a reduction in carrying
values of twelve oil and gas properties due to a revision in reserve
estimates.
|
|
·
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Non-cash
exploration and other charges of $22.6 million primarily related to costs
associated with offshore lease
expirations.
|
The net impact of
these items in the fourth quarter, after income taxes, was $0.49 per diluted
share.
Owen Kratz,
President and Chief Executive Officer of Helix, stated, “Our fourth quarter
results reflected continued weakness in the contracting services market. We had
anticipated this slowdown and as a result, diverted much of our pipelay and
construction support assets to internal use to complete the necessary
infrastructure for two of our deepwater oil and gas developments, Danny and
Phoenix. The combination of a weak market and capacity devoted to internal use
weighed heavily on our fourth quarter results. In addition, repairs to a third
party pipeline servicing our Noonan natural gas field were not completed until
early January, thus impacting our fourth quarter oil and gas production. Looking
forward, the outlook is better. Customer activity is picking up and we expect
utilization in the contracting services business to improve as 2010 unfolds.
Furthermore, we are poised to increase our oil and gas production in 2010. I am
pleased to announce that production from our Danny oil field commenced in early
February and with the completion of third party pipeline repairs, we have
increased production from the Noonan gas field. We are putting the finishing
touches on the Helix
Producer I and we expect to commence production from the Phoenix oilfield
by mid-year.”
Fourth quarter 2009
results excluded approximately $15 million of realized gains associated with the
cash settlement of natural gas contracts that were previously recognized as
unrealized gains in the first three quarters of 2009.
Third quarter 2009
results included the following items on a pre-tax basis:
|
·
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A $17.9
million gain from the sale of 23.2 million shares of Cal Dive common
stock.
|
|
·
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A $10.4
million charge associated with a weather derivative contract entered into
in July 2009 to mitigate against possible losses during the 2009 hurricane
season.
|
The net impact of
these two items in the third quarter, after income taxes, was $0.07 per diluted
share.
Fourth quarter 2008
results included the following items on a pre-tax basis:
|
·
|
Non-cash
impairment charges of $907.6 million, including $715.0 million to reduce
the carrying value of goodwill and $192.6 million to reduce the carrying
value of certain oil and gas
properties.
|
|
·
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Other
non-cash exploration charges of $26.6 million related primarily to the
write off of two suspended exploratory
wells.
|
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·
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A $6.7
million pre-tax loss associated with the sale of the Bass Lite field
located in Atwater Valley Block 426 in December
2008.
|
The net impact of
these two items in the fourth quarter of 2008, after income taxes, was $9.49 per
diluted share.
* * * *
*
Summary
of Results (1)
(2)
(in
thousands, except per share amounts and percentages, unaudited)
|
Quarter
Ended
|
Years
Ended
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||||
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December
31,
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September 30,
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December
31,
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|||
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2009
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2008
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2009
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2009
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2008
|
|
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Revenues
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$180,048
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$534,439
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$216,025
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$1,461,687
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$2,114,074
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Gross
Profit:
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|||||
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Operating (3)
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$21,039
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$85,142
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$5,058
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$388,095
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$620,792
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12%
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16%
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2%
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27%
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29%
|
|
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Oil and
Gas
Impairments
(4),
(5)
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(55,940)
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(192,620)
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(1,537)
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(120,550)
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(215,675)
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Exploration
Expense
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(21,520)
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(27,072)
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(904)
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(24,383)
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(32,926)
|
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Total
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$(56,421)
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$(134,550)
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$2,617
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$243,162
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$372,191
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Net Income
(Loss) Applicable to Common Shareholders
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$(55,697)
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$(861,154)
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$3,895
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$101,867
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$(639,122)
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Diluted
Earnings (Loss) Per Share
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$(0.53)
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$(9.48)
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$0.04
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$0.96
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$(7.05)
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Adjusted EBITDAX
(6)
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$58,572
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$55,339
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$38,306
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$490,092
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$575,272
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Segment
Information, Operational and Financial Highlights (1)
(in
thousands, unaudited)
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Three Months
Ended
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|||
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December
31,
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September
30,
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2009
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2008
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2009
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Revenues:
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|||
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Contracting
Services
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$150,736
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$293,135
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$175,091
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Shelf Contracting
(2)
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-
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261,656
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-
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Production
Facilities
|
5,888
|
-
|
5,888
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Oil and Gas
(3)
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71,450
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46,022
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63,715
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Intercompany
Eliminations
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(48,026)
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(66,374)
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(28,669)
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Total
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$180,048
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$534,439
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$216,025
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Income (Loss)
from Operations:
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|||
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Contracting
Services
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$7,698
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$29,034
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$10,132
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Shelf Contracting
(2)
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-
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69,946
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-
|
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Production
Facilities
|
(1,378)
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(285)
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(1,388)
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Oil and Gas (3)
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(3,715)
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(55,878)
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(23,599)
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Goodwill
Impairment
|
-
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(704,311)
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-
|
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Gain
on Oil and Gas DerivativeCommodity
Contracts
|
6,157
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18,894
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4,598
|
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Oil and Gas
Impairments
(4)
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(55,940)
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(192,620)
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(1,537)
|
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Exploration
Expense
|
(21,520)
|
(27,072)
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(904)
|
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Intercompany
Eliminations
|
(9,562)
|
(4,316)
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(1,971)
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Total
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$(78,260)
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$(866,608)
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$(14,669)
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Equity in
Earnings of Equity Investments
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$5,177
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$6,132
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$13,385
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Contracting
Services
|
o
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Subsea
Construction revenues decreased from the third quarter of 2009
attributable primarily to lower utilization of our owned and chartered
construction vessels (71% in the fourth quarter of 2009 compared with 77%
for the third quarter of 2009). Further, certain fourth quarter
contracts were completed at lower contract rates compared to similar type
contracts in the third quarter as we experienced a weaker services market.
Furthermore, a greater portion of our asset base was utilized for internal
oil and gas development, and thus contributed to a relatively high level
of intercompany revenue
elimination.
|
|
o
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Well
Operations revenues increased in the fourth quarter of 2009 compared with
the third quarter of 2009 due primarily to the realization of higher
contract day rates for the Q4000. Further,
our newest well operations vessel, Well
Enhancer, was placed in service in the fourth quarter in the North
Sea and generated $12.8 million of revenues. The increased revenues were
partially offset by lower utilization rates for our well operations
vessels (67% in fourth quarter of 2009 for three vessels compared to 92%
in the third quarter of 2009 for two
vessels).
|
|
o
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Robotics
revenues decreased in the fourth quarter of 2009 compared to the third
quarter of 2009 following the completion of a trenching campaign in the
third quarter and reflecting the general market weakness. There
were no trenching revenues in the fourth quarter of 2009. Robotics asset
utilization decreased to 58% in the fourth quarter of 2009 from 74% in the
third quarter of 2009.
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Oil
and Gas
|
o
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Oil and Gas
revenues increased $7.7 million to $71.5 million in the fourth quarter of
2009 due primarily to higher commodity prices realized for our oil
production. Production in the fourth quarter of 2009 totaled
9.7 Bcfe compared to 9.8 Bcfe in the third quarter of 2009. The
average prices realized for natural gas, including the effect of settled
natural gas hedge contracts, totaled $7.97 per thousand cubic feet of gas
(Mcf) in the fourth quarter of 2009 compared to $8.02 per Mcf in the third
quarter of 2009. For oil, including the effects of settled hedge
contracts, we realized $71.48 per barrel in the fourth quarter of 2009
compared to $68.86 per barrel in the third quarter of
2009.
|
|
o
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The Company’s
oil and gas production rate at February 23, 2010 approximated 145 million
cubic feet of natural gas equivalent per day (MMcfe/d) as compared to 94
MMcfe/d at December 31, 2009. Third party repairs to the
pipeline servicing the Noonan gas reservoir in our Bushwood field were
completed in early January 2010. Separately, we commenced
production from the Danny oil reservoir also in the Bushwood field on
February 2, 2010.
|
|
o
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We have
entered into oil and gas hedge contracts for approximately 25 Bcf of
natural gas and 2.5 million barrels of oil to cover a significant portion
of our forecasted production for
2010.
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Other
Expenses
|
o
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Selling,
general and administrative expenses were 15.7% of revenue in the fourth
quarter of 2009, 10.1% in the third quarter of 2009, and 7.5% in the
fourth quarter of 2008. Selling, general and administrative expenses
increased compared to the third quarter of 2009 due to increased bad debt
expenses and higher legal expenses.
|
|
o
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Net interest
expense and other increased to $11.5 million in the fourth quarter of 2009
from $10.3 million in the third quarter of 2009. Net interest
expense increased to $11.9 million in the fourth quarter of 2009 compared
with $7.3 million in the third quarter of 2009. The increase in net
interest expense was attributable to a reduction in capitalized interest
of $3.5 million in the fourth quarter compared with the third quarter due
primarily to the completion of the Well
Enhancer in October 2009.
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Financial
Condition and Liquidity
|
o
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Consolidated
net debt at December 31, 2009 increased to $1.1 billion from $950 million
as of September 30, 2009. We had no borrowings under our revolver and our
availability was $386 million at December 31, 2009. Together
with cash on hand of $271 million and our revolver availability, our total
liquidity was approximately $657 million at December 31, 2009. Net debt to
book capitalization as of December 31, 2009 was 43%. (Net debt
to book capitalization is a non-GAAP measure. See
reconciliation attached hereto.)
|
|
o
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As of
December 31, 2009, we were in compliance with our debt covenants under our
various loan agreements. On February 19, 2010, we amended our senior
credit facility by revising the consolidated leverage ratio covenant test
and adding an additional senior secured debt leverage ratio test. The
amendment is effective for periods beginning on or after March 31,
2010.
|
|
o
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We incurred
capital expenditures (including capitalized interest) totaling $119
million in the fourth quarter of 2009, compared to $87 million in the
third quarter of 2009 and $134 million in the fourth quarter of
2008. For the year ended December 31, 2009, capital
expenditures totaled $328 million. These amounts exclude all
Cal Dive capital expenditures in the periods
noted.
|
Footnotes to
“Summary of Results”:
|
(1)
|
Results of
Helix RDS Limited, our former reservoir consulting business, included as
discontinued operations for all periods presented in our comparative
condensed consolidated statements of
operations.
|
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(2)
|
Results of
Cal Dive, our former Shelf Contracting business, were consolidated through
June 10, 2009, at which time our ownership interest dropped below 50%. Our
remaining interest was accounted for under the equity method of accounting
through September 23, 2009. Subsequent to September 23, 2009 our
investment in Cal Dive was accounted for as an available for sale
security.
|
|
(3)
|
Fourth
quarter of 2009 included $2.5 million of expense related to a weather
derivative contract and $0.6 million of hurricane-related
costs. Third quarter of 2009 included $10.4 million of expense
related to a weather derivative contract and $5.1 million of
hurricane-related costs.
|
|
(4)
|
Fourth
quarter 2009 oil and gas impairments were attributable to the revision in
estimated reserves associated with twelve fields resulting from mechanical
and/or production related issues. Impairments in the
fourth quarter of 2008 were due primarily to the deterioration of certain
fields’ economics following significant drops in both oil and natural gas
prices during the period.
|
|
(5)
|
Full year
2009 impairments were comprised of the impairments described in item (4)
above, $51.5 million of additional asset retirement and impairment costs
resulting from Hurricane Ike
recorded in the second quarter of 2009 and $11.5 million of additional oil
and gas property revisions following estimated reserve reductions at June
30, 2009. Full year 2008 oil and gas impairments included $6.7 million
related to our deepwater Tiger field damaged by Hurricane Ike
in the third quarter of 2008 and $14.6 million associated with the
unsuccessful Devil’s Island development well in the first quarter of
2008.
|
|
(6)
|
Non-GAAP
measure. See reconciliation attached
hereto.
|
Footnotes to
“Segment Information, Operational and Financial Highlights”:
|
(1)
|
Results of
Helix RDS Limited, our former reservoir consulting business, were included
as discontinued operations for all periods presented in our comparative
condensed consolidated statements of
operations.
|
|
(2)
|
Results of
Cal Dive, our former Shelf Contracting business, were consolidated through
June 10, 2009, at which time our ownership interest dropped below 50%. Our
remaining interest was accounted for under the equity method of accounting
through September 23, 2009. Subsequent to September 23, 2009 our
investment in Cal Dive was accounted for as an available for sale
security.
|
|
(3)
|
Fourth
quarter 2009 included $2.5 million of expense related to a weather
derivative contract and $0.6 million of hurricane-related
costs. Third quarter 2009 included $10.4 million of expense
related to a weather derivative contract and $5.1 million of
hurricane-related costs.
|
|
(4)
|
Fourth
quarter 2009 oil and gas impairments were attributable to the revision in
estimated reserves associated with twelve fields resulting from mechanical
and/or production related issues. Impairments in the fourth
quarter of 2008 were due primarily to the deterioration of certain fields’
economics following significant drops in both the oil and natural gas
prices during the period.
|
* * * *
*
Further details are
provided in the presentation for Helix’s quarterly conference call to review its
fourth quarter and full year 2009 results (see the “Investor Relations” page of
Helix’s website, www.HelixESG.com). The
call, scheduled for 9:00 a.m. Central Standard Time on Thursday, February 25,
2010, will be audio webcast live from the “Investor Relations” page of Helix’s
website. Investors and other interested parties wishing to listen to the call
via telephone may join the call by dialing 800 475 0212 (Domestic) or 1 312 470
7004 (International). The pass code is Tripodo. A
replay will be available from the Audio Archives page on Helix’s
website.
Helix Energy
Solutions, headquartered in Houston, Texas, is an international offshore energy
company that provides development solutions and other key life of field services
to the open energy market as well as to our own oil and gas business
unit. That business unit is a prospect generation, exploration,
development and production company. Employing our own key services
and methodologies, we seek to lower finding and development costs, relative to
industry norms.
Management
evaluates Company performance and financial condition using certain non-GAAP
metrics, primarily Adjusted EBITDAX, net debt and net debt to book
capitalization. We calculate Adjusted EBITDAX as earnings before net
interest expense, taxes, depreciation and amortization and exploration
expense. Further, we do not include earnings from our interest in Cal
Dive in any periods presented in our Adjusted EBITDAX
calculation. Net debt is calculated as the sum of financial debt less
cash and equivalents on hand. Net debt to book capitalization is
calculated by dividing net debt by the sum of net debt, convertible preferred
stock and shareholders’ equity. These non-GAAP measures are useful to
investors and other internal and external users of our financial statements in
evaluating our operating performance because they are widely used by investors
in our industry to measure a company’s operating performance without regard to
items which can vary substantially from company to company, and help investors
meaningfully compare our results from period to period. Adjusted
EBITDAX should not be considered in isolation or as a substitute for, but
instead is supplemental to, income from operations, net income or other income
data prepared in accordance with GAAP. Non-GAAP financial measures
should be viewed in addition to, and not as an alternative to our reported
results prepared in accordance with GAAP. Users of this financial
information should consider the types of events and transactions which are
excluded.
This press release
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 historical fact, are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, including, without limitation, any projections of 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 statement concerning developments,
performance or industry rankings; any statements regarding future economic
conditions or performance; any statements of expectation or belief; and any
statements of assumptions underlying any of the foregoing. The
forward looking statements are subject to a number of known and unknown risks,
uncertainties and other factors including the performance of contracts by
suppliers, customers and partners; employee management issues; uncertainties
inherent in the exploration for and development of oil and gas and in estimating
reserves; complexities of global political and economic developments; geologic
risks, volatility of oil and gas prices 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 ending December
31, 2008 and any subsequent Quarterly Report on Form 10-Q. We assume
no obligation and do not intend to update these forward-looking statements
except as required by the securities laws.
|
HELIX
ENERGY SOLUTIONS GROUP, INC.
|
|||||||||||||
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Comparative
Condensed Consolidated Statements of Operations
|
|||||||||||||
|
|
Three
Months Ended Dec. 31,
|
Twelve
Months Ended Dec. 31,
|
|||||||||||
|
(in
thousands, except per share data)
|
2009
|
2008
|
2009
|
2008
|
|||||||||
|
(unaudited)
|
(unaudited)
|
||||||||||||
|
Net
revenues:
|
|||||||||||||
|
Contracting
services
|
$ 108,598
|
$ 488,417
|
$ 1,076,349
|
$ 1,568,221
|
|||||||||
|
Oil
and gas
|
71,450
|
46,022
|
385,338
|
545,853
|
|||||||||
|
180,048
|
534,439
|
1,461,687
|
2,114,074
|
||||||||||
|
Cost
of sales:
|
|||||||||||||
|
Contracting
services
|
89,373
|
358,223
|
854,975
|
1,135,429
|
|||||||||
|
Oil
and gas
|
69,636
|
91,074
|
218,617
|
357,853
|
|||||||||
|
Oil
and gas impairments
|
55,940
|
192,620
|
120,550
|
215,675
|
|||||||||
|
Exploration
expense
|
21,520
|
27,072
|
24,383
|
32,926
|
|||||||||
|
236,469
|
668,989
|
1,218,525
|
1,741,883
|
||||||||||
|
Gross
profit (loss)
|
(56,421)
|
(134,550)
|
243,162
|
372,191
|
|||||||||
|
Goodwill
and other indefinite-lived intangible impairments
|
-
|
704,311
|
-
|
704,311
|
|||||||||
|
Gain
on oil and gas derivative commodity contracts
|
6,157
|
18,894
|
89,485
|
21,599
|
|||||||||
|
Gain
on sale of assets, net
|
246
|
(6,422)
|
2,019
|
73,471
|
|||||||||
|
Selling
and administrative expenses
|
28,242
|
40,219
|
130,851
|
177,172
|
|||||||||
|
Income
(loss) from operations
|
(78,260)
|
(866,608)
|
203,815
|
(414,222)
|
|||||||||
|
Equity
in earnings of investments
|
5,177
|
6,132
|
32,329
|
31,854
|
|||||||||
|
Gain
on subsidiary equity transaction
|
-
|
-
|
77,343
|
-
|
|||||||||
|
Net
interest expense and other
|
11,526
|
34,184
|
51,495
|
111,098
|
|||||||||
|
Income
(loss) before income taxes
|
(84,609)
|
(894,660)
|
261,992
|
(493,466)
|
|||||||||
|
Provision
(benefit) of income taxes
|
(30,374)
|
(64,859)
|
95,822
|
86,779
|
|||||||||
|
Income
(loss) from continuing operations
|
(54,235)
|
(829,801)
|
166,170
|
(580,245)
|
|||||||||
|
Income
(loss) from discontinued operations, net of tax
|
(722)
|
(11,483)
|
9,581
|
(9,812)
|
|||||||||
|
Net
income (loss), including noncontrolling interests
|
(54,957)
|
(841,284)
|
175,751
|
(590,057)
|
|||||||||
|
Net
income applicable to noncontrolling interests
|
680
|
19,320
|
19,697
|
45,873
|
|||||||||
|
Net
income (loss) applicable to Helix
|
(55,637)
|
(860,604)
|
156,054
|
(635,930)
|
|||||||||
|
Preferred
stock dividends
|
60
|
550
|
748
|
3,192
|
|||||||||
|
Preferred
stock beneficial conversion charges
|
-
|
-
|
53,439
|
-
|
|||||||||
|
Net
income (loss) applicable to Helix common shareholders
|
$ (55,697)
|
$ (861,154)
|
$ 101,867
|
$ (639,122)
|
|||||||||
|
Weighted
Avg. Common Shares Outstanding:
|
|||||||||||||
|
Basic
|
103,007
|
90,802
|
99,136
|
90,650
|
|||||||||
|
Diluted
|
103,007
|
90,802
|
105,720
|
90,650
|
|||||||||
|
Basic
earnings (loss) per share of common stock:
|
|||||||||||||
|
Net
income (loss) from continuing operations
|
($0.52)
|
($9.36)
|
$0.92
|
($6.94)
|
|||||||||
|
Net
income (loss) from discontinued operations
|
($0.01)
|
($0.12)
|
$0.09
|
($0.11)
|
|||||||||
|
Net
income (loss) per share of common stock
|
($0.53)
|
($9.48)
|
$1.01
|
($7.05)
|
|||||||||
|
Diluted
earnings (loss) per share of common stock:
|
|||||||||||||
|
Net
income (loss) from continuing operations
|
($0.52)
|
($9.36)
|
$0.87
|
($6.94)
|
|||||||||
|
Net
income (loss) from discontinued operations
|
($0.01)
|
($0.12)
|
$0.09
|
($0.11)
|
|||||||||
|
Net
income (loss) per share of common stock
|
($0.53)
|
($9.48)
|
$0.96
|
($7.05)
|
|||||||||
|
Comparative
Condensed Consolidated Balance Sheets
|
|||||||||||||
|
ASSETS
|
LIABILITIES
& SHAREHOLDERS' EQUITY
|
||||||||||||
|
(in
thousands)
|
Dec.
31, 2009
|
Dec.
31, 2008
|
(in
thousands)
|
Dec.
31, 2009
|
Dec.
31, 2008
|
||||||||
|
(unaudited)
|
(unaudited)
|
||||||||||||
|
Current
Assets:
|
Current
Liabilities:
|
||||||||||||
|
Cash
and equivalents
|
$ 270,673
|
$ 223,613
|
Accounts
payable
|
$ 155,457
|
$ 344,807
|
||||||||
|
Accounts
receivable
|
172,678
|
545,106
|
Accrued
liabilities
|
200,607
|
234,451
|
||||||||
|
Other
current assets
|
122,209
|
191,304
|
Income
taxes payable
|
-
|
-
|
||||||||
|
Current
mat of L-T debt (1)
|
12,424
|
93,540
|
|||||||||||
|
Total
Current Assets
|
565,560
|
960,023
|
Total
Current Liabilities
|
368,488
|
672,798
|
||||||||
|
Net
Property & Equipment:
|
Long-term
debt (1) (2)
|
1,348,315
|
1,933,686
|
||||||||||
|
Contracting
Services
|
1,470,582
|
1,876,795
|
Deferred
income taxes
|
442,607
|
615,504
|
||||||||
|
Oil
and Gas
|
1,393,124
|
1,541,648
|
Decommissioning
liabilities
|
182,399
|
194,665
|
||||||||
|
Equity
investments
|
189,411
|
196,660
|
Other
long-term liabilities
|
4,262
|
81,637
|
||||||||
|
Goodwill
|
78,643
|
366,218
|
Convertible
preferred stock (1)
|
6,000
|
55,000
|
||||||||
|
Other
assets, net
|
82,213
|
125,722
|
Shareholders'
equity (1)
|
1,427,462
|
1,513,776
|
||||||||
|
Total
Assets
|
$ 3,779,533
|
$ 5,067,066
|
Total
Liabilities & Equity
|
$ 3,779,533
|
$ 5,067,066
|
||||||||
|
(1)
|
Net
debt to book capitalization - 43% at December 31, 2009. Calculated as
total debt less cash and equivalents ($1,090,066)
|
||||||||||||
|
divided
by sum of total net debt, convertible preferred stock and shareholders'
equity ($2,523,528).
|
|||||||||||||
|
(2)
|
Reflects
impact of retrospective adoption of accounting standard which required
bifurcation of Helix's convertible senior notes
|
||||||||||||
|
between
debt and equity components. Impact on December 31, 2009 and
December 31, 2008 was a reduction in debt totaling
|
|||||||||||||
|
$26.9
million and $34.8 million, respectively.
|
|||||||||||||
|
Helix
Energy Solutions Group, Inc.
|
||||||||
|
Reconciliation
of Non GAAP Measures
|
||||||||
|
Three
and Twelve Months Ended December 31, 2009
|
||||||||
|
Earnings Release:
|
||||||||
|
Reconciliation From Net Income to Adjusted
EBITDAX:
|
||||||||
|
4Q09
|
4Q08
|
3Q09
|
2009
|
2008
|
||||
|
(in
thousands)
|
||||||||
|
Net
income (loss) applicable to common shareholders
|
$ (55,697)
|
$ (861,154)
|
$ 3,895
|
$ 101,867
|
$ (639,122)
|
|||
|
Non-cash
impairment
|
52,578
|
894,577
|
533
|
72,372
|
917,632
|
|||
|
(Gain)
loss on asset sales
|
198
|
6,422
|
(17,869)
|
(87,694)
|
(73,471)
|
|||
|
Preferred
stock dividends
|
60
|
550
|
125
|
54,187
|
3,192
|
|||
|
Income
tax provision (benefit)
|
(30,246)
|
(67,117)
|
1,415
|
86,035
|
67,136
|
|||
|
Net
interest expense and other
|
11,300
|
31,842
|
10,192
|
47,861
|
101,492
|
|||
|
Depreciation
and amortization
|
58,859
|
79,299
|
46,315
|
247,372
|
306,047
|
|||
|
Exploration
expense
|
21,520
|
27,072
|
904
|
24,383
|
32,926
|
|||
|
Adjusted
EBITDAX (including Cal Dive)
|
$ 58,572
|
$ 111,491
|
$ 45,510
|
$ 546,383
|
$ 715,832
|
|||
|
Less:
Previously reported contribution from Cal Dive
|
$ -
|
$ (56,152)
|
$ (7,204)
|
$ (56,291)
|
$ (140,560)
|
|||
|
Adjusted
EBITDAX
|
$ 58,572
|
$ 55,339
|
$ 38,306
|
$ 490,092
|
$ 575,272
|
|||
|
We
calculate adjusted EBITDAX as earnings before net interest expense, taxes,
depreciation and amortization, and exploration
|
||||||||
|
expense.
Further, we do not include earnings from our interest in Cal Dive in any
periods presented in our adjusted EBITDAX calculation.
|
||||||||
|
These
non-GAAP measures are useful to investors and other internal and external
users of our financial statements in evaluating
|
||||||||
|
our
operating performance because they are widely used by investors in our
industry to measure a company's operating performance
|
||||||||
|
without
regard to items which can vary substantially from company to company and
help investors meaningfully
|
||||||||
|
compare
our results from period to period. Adjusted EBITDAX should not
be considered in isolation or as a substitute
|
||||||||
|
for,
but instead is supplemental to, income from operations, net
income or other income data prepared in
|
||||||||
|
accordance
with GAAP. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative
|
||||||||
|
to
our reported results prepared in accordance with GAAP. Users of
this financial information should consider
|
||||||||
|
the
types of events and transactions which are excluded.
|
||||||||
|
Helix
Energy Solutions Group, Inc.
|
||||||
|
Reconciliation
of Non GAAP Measures
|
||||||
|
Three
Months Ended December 31, 2009
|
||||||
|
Earnings Release:
|
||||||
|
Reconciliation of unusual
items:
|
||||||
|
4Q09
|
||||||
|
(in
thousands, except per share data)
|
||||||
|
Non-cash
property impairments:
|
||||||
|
Property
impairments
|
55,940
|
|||||
|
Tax
provision
|
(19,579)
|
|||||
|
Non-cash
property impairments, net:
|
$ 36,361
|
|||||
|
Diluted
shares
|
103,007
|
|||||
|
Per
share
|
$ 0.35
|
|||||
|
Non-cash
exploration charges:
|
||||||
|
Exploration
charges
|
20,606
|
|||||
|
Tax
provision
|
(7,212)
|
|||||
|
Non-cash
exploration charges, net:
|
$ 13,394
|
|||||
|
Diluted
shares
|
103,007
|
|||||
|
Per
share
|
$ 0.13
|
|||||
|
Non-cash
other charges:
|
||||||
|
Asset
impairments
|
1,306
|
|||||
|
Inventory
charges
|
700
|
|||||
|
Tax
provision
|
(702)
|
|||||
|
Non-cash
other charges, net:
|
$ 1,304
|
|||||
|
Diluted
shares
|
103,007
|
|||||
|
Per
share
|
$ 0.01
|
|||||