10/12/2024 - Helix Energy Solutions Group Inc.: Capital One Securities Conference

NYSE: HLX

Revenue by Market4

($9M)	$1.6B	$399M
Net Debt1	Backlog	Liquidity2
September 30, 2024	September 30, 2024	September 30, 2024
2,531		34
Global Employees		Nationalities Represented
December 31, 2023		December 31, 2023

Forecast

$1.3B - $1.365B $280M - $310M

2024 Revenue3

2024 EBITDA1,3

$120M - $150M

2024 Free Cash Flow1,3

Other

Renewables 2%

8%

Production

Maximization

33%

Decommissioning -

Deep Water

37%

Decommissioning -

Shallow Water

20%

• A global leader in rig-less intervention; lower costs, higher efficiency, and reduced carbon footprint compared to rigs

• Vessels and systems perform both decommissioning and production maximization operations

• Fleet of seven purpose-built well intervention vessels and 12 • well intervention systems operating globally

Geographically diverse scope of operations and concentration of blue-chip customers

• We serve both the Renewable Energy and Oil and Gas markets
• Global leader in trenching windfarm subsea cables

• A fleet of advanced subsea trenchers, work-class ROVs and chartered support vessels
• Globally diversified operations and broad customer base

• The leading provider of decommissioning services in the GOM Shelf
• Only company able to offer integrated full-field decommissioning:
• • Well P&A
  • Sub-seaarchitecture removal
  • Facility decommissioning and structure removal
• Fleet of liftboats, P&A and Coiled Tubing systems, OSVs, Diving Vessels and Heavy Lift Barge

Commercial Diving: Three dive support vessels

Marine Services: Six OSVs ranging from 150' to 170' and one crewboat

Marine Services: Nine liftboats ranging in size up to 265'

Well Services:

20 P&A spreads, six coiled tubing units and one snubbing unit

Heavy Lift: Epic Hedron 1,763-tonderrick barge

Key Financial Metrics

($ in millions)		2024			2023
		Outlook			Actual
Revenues	$	1,300 - 1,365	$	1,290
Adjusted EBITDA1		280 - 310			273
Free Cash Flow1,2		120 - 150			134
Capital Additions3		55 - 70			90
Revenue Split:
Well Intervention	$	815 - 850	$	733
Robotics		275 - 290			258
Shallow Water Abandonment		190 - 200			275
Production Facilities		85 - 90			88
Eliminations		(65)			(64)
Total Revenue	$	1,300 - 1,365	$	1,290

• Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures; see non-GAAP reconciliations below

• Free Cash Flow in 2024 includes $58 million paid in Q2 related to the Alliance acquisition earn-out

• Capital Additions include regulatory certification costs for our vessels and systems as well as other capital expenditures

Key Forecast Drivers

Our remainder of the year outlook will be affected by the timing and extent of the winter weather seasonal impact to our operations in addition to the following expected key drivers:

Well Intervention

• GOM - Q4000 Nigeria six-month campaign that began October 2024
• North Sea - seasonal utilization on the Well Enhancer and Seawell
• Brazil - Siem Helix 2 transition to new Petrobras contract Robotics
• Seasonal utilization in the North Sea and Asia Pacific on chartered vessels

Shallow Water Abandonment

• Seasonal utilization of shallow water operations on the GOM shelf

Production Facilities

• Thunder Hawk and Droshky duration of well shut-ins

We continue execution of our Energy Transition business strategy: Production Maximization, Decommissioning and Renewables

• Increasing cash generation expected in this current environment
• Annual maintenance capex anticipated to average approximately $70 - $80 million for foreseeable future

Well Intervention

Rate increases expected to increase EBITDA $60 - $100 million in 2025 vs. 2024

• Q7000 under decommissioning contract with Shell in Brazil expected into 2026 with options at improved rates
• Three-yearcontracts with Petrobras on the SH1 and SH2
• • SH1 on contract with Trident at improved rates through late November 2025, followed by Petrobras at improved rates through 2028 with options
  • SH2 on contract with Petrobras through 2027 with options
• Q4000 and Q5000 expected strong utilization: multi-year Shell GOM contract on the Q5000 at improved rates, committed 175 days per year with options beginning 2025; Nigeria contract on the Q4000 into 2025
• Seawell and Well Enhancer expected seasonal utilization in the North Sea; winter North Sea utilization or campaigns in the Mediterranean Sea providing upside potential

Robotics

• Anticipate continued strong renewables trenching market
• Expect continued renewables site clearance project opportunities and deployment of second boulder grab and second dedicated site-clearance chartered vessel, Trym
• Expect continued tight ROV market, with some winter seasonality in the North Sea and Asia Pacific regions

Shallow Water Abandonment

• Expect seasonal Gulf of Mexico shallow water decommissioning market
• Lower activity in 2024 as producers plan work on boomerang wells; increasing activity levels expected in 2025

Production Facilities

• HP I evergreen contract; annual near-term renewals expected
• HWCG contract through at least Q1 2026 with expected renewals

Balance Sheet

• Currently no significant debt maturities until 2029
• $120 million revolving credit facility in place through 2029
• Expect continued execution of share repurchase program