Professional Documents
Culture Documents
com
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 24, 2009
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Processed and formatted by SEC Watch - Visit SECWatch.com
On February 24, 2009, Helix Energy Solutions Group, Inc. (“Helix”) issued a press release announcing its fourth quarter and
year-end results of operation for the period ended December 31, 2008. Attached hereto as Exhibit 99.1, and incorporated by
reference herein, is the press release.
This information is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as
amended (“Exchange Act”), or otherwise subject to the liabilities of that section, and such information is not incorporated by
reference into any registration statements or other document filed under the Securities Act of 1933, as amended (“Securities Act”),
or the Exchange Act, regardless of the general incorporation language contained in such filing, except as shall be expressly set
forth by specific reference to this filing.
On February 24, 2009, Helix issued a press release announcing its fourth quarter and year-end results of operation for the
period ended December 31, 2008. In addition, on February 25, 2009, Helix is making a presentation (with slides) to analysts and
investors regarding its financial and operating results. Attached hereto as Exhibits 99.1 and 99.2, respectively, and incorporated
by reference herein are the press release and the slides for the Fourth Quarter Earnings Conference Call Presentation issued by
Helix. The presentation materials will also be posted beginning on February 24, 2009 in the Presentations section under Investor
Relations of Helix’s website, www.helixesg.com.
This information is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as
amended (“Exchange Act”), or otherwise subject to the liabilities of that section, and such information is not incorporated by
reference into any registration statements or other document filed under the Securities Act of 1933, as amended (“Securities Act”),
or the Exchange Act, regardless of the general incorporation language contained in such filing, except as shall be expressly set
forth by specific reference to this filing.
Processed and formatted by SEC Watch - Visit SECWatch.com
(c) Exhibits.
Number Description
99.1 Press Release of Helix Energy Solutions Group, Inc. dated February 24, 2009 reporting financial results for the fourth
quarter of 2008 and for the year ending December 31, 2008.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Index to Exhibits
Exhibit 99.1
(HELIX LOGO)
PRESSRELEASE
www.HelixESG.com
Helix Energy Solutions Group, Inc. • 400 N. Sam Houston Parkw ay E., Suite 400 • Houston, TX 77060-3500 • 281-618-0400 • fax: 281-618-0505
HOUSTON, TX — Helix Energy Solutions Group, Inc (NYSE: HLX) reported a net loss of $859.9 million or $(9.47) per
diluted share, for the fourth quarter of 2008 compared with net income of $120.4 million, or $1.25 per diluted share, for
the same period in 2007, and net income of $60.6 million, or $0.65 per diluted share, in the third quarter of 2008. The
net loss for the year ended December 31, 2008 was $634.0 million, or $(6.99) per diluted share, compared to net
income of $316.8 million, or $3.34 per diluted share, for the year ended December 31, 2007.
Owen Kratz, President and Chief Executive Officer of Helix, stated, “Our fourth quarter results reported large non-cash
impairments and other charges totaling $935 million (pre-tax) plus weak results in our oil and gas business due to shut-
in production from Hurricane Ike. However, our core Contracting Services business continues to produce strong results
and we have now brought our oil and gas production close to pre-Ike levels. Thus, our fundamental business operations
remain profitable and we should generate positive cash flow in 2009.”
• Non-cash charges of $907.6 million ($840.2 million net of tax, or $9.25 per diluted share), including
$715.0 million, or $7.87 per diluted share, associated with a reduction in the carrying value of goodwill and
$192.6 million ($125.2 million net of tax, or $1.38 per diluted share), related to reductions in the carrying
values of certain oil and gas properties. The majority of the goodwill reduction related to the oil and gas
business associated with the acquisition of Remington Oil and Gas Corporation in 2006. The oil and gas
property impairments reflected a deterioration of the affected properties’ field economics primarily resulting
from a decrease in both oil and natural gas prices during the fourth quarter.
• Other non-cash exploration charges of $26.6 million ($17.3 million net of tax, or $0.19 per diluted share)
primarily related to two suspended exploratory wells drilled in prior years that are no longer considered
economical to develop.
• A $6.7 million loss ($4.4 million net of tax, or $0.05 per diluted share) associated with the sale of our interest
in the Bass Lite field located in Atwater Valley Block 426 in December 2008. Gross proceeds from the sale
totaled approximately $49 million.
• Non-cash gain of $151.7 million ($98.6 million net of tax, or $1.02 per diluted share) resulting from an
adjustment in our investment in Cal Dive following the Horizon acquisition.
• Non-cash oil and gas impairments/exploration expenses totaling $84.2 million ($54.8 million net of tax, or
$0.57 per diluted share).
Processed and formatted by SEC Watch - Visit SECWatch.com
Revenues for our Contracting Services business were $300 million, reflecting high vessel and equipment utilization
during the fourth quarter of 2008. Oil and gas revenues of $46 million for the fourth quarter were $89 million lower than
the third quarter primarily because of reduced production, which totaled 6.4 billion cubic feet of natural gas equivalent
(Bcfe) in fourth quarter 2008 compared with 10.5 Bcfe in the third quarter. The decrease in production is primarily due to
a number of our oil and gas fields being shut-in following Hurricanes Gustav and Ike.
Processed and formatted by SEC Watch - Visit SECWatch.com
Summary of Results
(in thousands, except per share amounts and percentages, unaudited)
Gross Profit :
Operating $ 86,242 $ 154,307 $ 209,344 $ 629,269 $ 604,553
16% 31% 34% 29% 34%
Oil and Gas Impairments (192,620) (64,072) (6,027) (215,675) (64,072)
Contracting Services
• Deepwater construction revenues in the fourth quarter of 2008 benefited from exceptionally high utilization of
pipelay assets (86%) and higher day rates. In addition, our robotics business also experienced high asset
utilization (80%). Our deepwater construction assets have good backlog for the first half of 2009. Our robotics
division benefitted from the increased scope of work resulting from the effects of Hurricanes Gustav and Ike.
• Our well operations business experienced decreased revenues in the fourth quarter as compared to the third
quarter of 2008 reflecting the commencement of certain project work in the Gulf of Mexico that has slightly
lower contract prices and margins than our typical contracts performed in 2008 as well as slightly lower
utilization rates (93% vs. 100%).
• Gross profit margins for Contracting Services decreased primarily because of lower margins associated with
certain longer-term and large scale projects.
• Our services’ segments have estimated backlog of nearly $900 million (including $350 million for Cal Dive), of
which we expect to recognize around $660 million in 2009.
Processed and formatted by SEC Watch - Visit SECWatch.com
• Cal Dive revenues, gross profit and net income decreased in the fourth quarter of 2008 compared with third
quarter of 2008 reflecting normal seasonal decline in activity offset in part by additional services associated
with hurricane inspection, repair and maintenance activities in the Gulf of Mexico following Hurricanes Gustav
and Ike. The results for the fourth quarter 2008 were significantly higher than the results achieved during the
fourth quarter of 2007 primarily reflecting the contributions from the Horizon assets which were acquired in
December, 2007, as well as additional service activity following Hurricanes Gustav and Ike.
• Oil and Gas revenues for the fourth quarter of 2008 were lower than the third quarter of 2008 primarily reflecting
significantly lower production following Hurricanes Gustav and Ike as well as declines in both oil and natural
gas prices. Production in fourth quarter of 2008 was 6.4 Bcfe compared with 10.5 Bcfe in third quarter 2008.
The average prices realized for our gas sales volumes, including the effect of hedge contracts, totaled $6.32
per thousand cubic feet of gas (Mcf) in the fourth quarter of 2008 and $10.22 per Mcf in the third quarter of
2008. For our oil sales volumes we realized $49.08 per barrel in the fourth quarter of 2008 and $107.14 per
barrel in the third quarter of 2008, including the effects of hedge contracts. As a result of Hurricanes Gustav
and Ike, certain oil and gas contracts no longer qualified for hedge accounting treatment and an $11.5 million
gain from the settlements of these contracts was recorded in other income in our consolidated statements of
operations. In addition, our other income includes unrealized gains of $7.4 million associated with contracts
that will settle in first quarter 2009.
• The Company’s current production has been restored to levels approximating those achieved pre-Hurricane
Ike. As of February 24, 2009 our oil and gas production totaled approximately 132 million cubic feet of natural
gas equivalent per day (MMcfe/d), which is more than 90% of pre-Hurricane Ike production rates, adjusting for
the sale of our interest in the Bass Lite field
• The Company has previously announced a discovery at Garden Banks Block 426 (Bushwood) field in the
deepwater of Gulf of Mexico. The well logged 273 feet of net hydrocarbons in deeper exploratory zones and
the proved reserves associated with this discovery are included in the Company’s year-end 2008 estimates of
proved reserves.
• Year-end 2008 proved reserves of oil and gas totaled 665 Bcfe as compared with 677 Bcfe at December 31,
2007. Reserve additions of 176 Bcfe from discoveries and field extensions resulting from 2008 drilling activities
offset the approximate 140 Bcfe reduction of estimated proved reserves resulting from price declines, property
sales and hurricane damage. In 2008, our reserve additions replaced 371% of our 2008 production (47.5 Bcfe).
The average prices used in our proved reserve estimates were $42.76 per barrel of oil and $5.74 per Mcf of
natural gas in 2008 as compared to $103.34 per barrel and $7.84 per Mcf in 2007. The present value of our
total estimated proved reserves using the SEC mandated PV-10 standardized measure was approximately
$1.9 billion at December 31, 2008 compared with $2.8 billion at December 31, 2007.
Other Expenses
• Selling, general and administrative expenses for the fourth quarter of 2008 were 7.8% of revenue, compared to
8.2% in the third quarter of 2008, and 9.0% in the fourth quarter of 2007. The improvement over the third
quarter was a result of reduced spending measures initiated in light of the weaker economic environment.
• Net interest expense and other decreased to $13.2 million in the fourth quarter of 2008 from $23.5 million in
the third quarter of 2008 due primarily to net hedging gains of $15.3 million and $4.6 million of lower foreign
exchange losses during the fourth quarter of 2008. Net interest expense increased to $22.3 million in the
fourth quarter compared with $19.8 million in third quarter 2008 due primarily to higher levels of gross debt.
Processed and formatted by SEC Watch - Visit SECWatch.com
• Consolidated net debt at December 31, 2008 decreased to $1.84 billion from $1.87 billion as of September 30,
2008. Total debt associated with our Cal Dive consolidated subsidiary totaled $315 million, which is non-
recourse to Helix. Net debt to book capitalization as of December 31, 2008 was 60%. (Net debt to book
capitalization is a non-GAAP measure. See reconciliation attached hereto.)
• Capital expenditures for 2008 (including $83 million related to Cal Dive) totaled $855 million.
• The Company has taken the following actions to improve its financial condition and liquidity:
• Hedged a substantial level (approximately 73%) of estimated 2009 oil and gas production in order to
stabilize the Company’s expected 2009 cash flow from its oil and gas operations.
• The Company’s planned 2009 capital budget has been reduced considerably from 2008 levels and is
estimated to be $350 million to $400 million (of which $78 million relates to Cal Dive).
• In January 2009, the Company sold approximately 13.6 million shares of Cal Dive common stock to Cal
Dive for proceeds totaling $86 million.
*****
Further details are provided in the presentation for Helix’s quarterly conference call (see the Investor Relations page of
www.HelixESG.com). The call, scheduled for 9:00 a.m. Central Standard Time on Wednesday, February 25, 2009, will
be webcast live. If you wish to dial in to the call the telephone number is 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 our 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.
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 reduce Adjusted
EBITDAX for the minority interest in Cal Dive that we do not own. Net debt is calculated as the sum of financial debt
less cash on hand. Net debt to book capitalization is calculated by dividing net debt by the sum net debt, preferred
stock and stockholders’ equity. These non-GAAP measures are useful to investors and other internal and external user
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 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 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 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
ending December 31, 2007. We assume no obligation and do not intend to update these forward-looking statements.
Processed and formatted by SEC Watch - Visit SECWatch.com
Processed and formatted by SEC Watch - Visit SECWatch.com
Three Months Ended Dec. 31, Twelve Months Ended Dec. 31,
(in thousands, except per share data) 2008 2007 2008 2007
(unaudited) (unaudited)
Net revenues:
Contracting services $ 494,880 $ 330,550 $ 1,602,496 $ 1,182,882
Oil and gas 46,022 169,693 545,853 584,563
540,902 500,243 2,148,349 1,767,445
Cost of sales:
Contracting services 363,586 233,442 1,161,227 789,988
Oil and gas 91,074 112,494 357,853 372,904
Oil and gas impairments 192,620 64,072 215,675 64,072
Exploration expense 27,072 20,177 32,926 26,725
674,352 430,185 1,767,681 1,253,689
ASSETS
Processed and formatted by SEC Watch - Visit SECWatch.com
(1) Net debt to book capitalization — 60% at December 31, 2008. Calculated as total debt less
cash and equivalents ($1,838,429) divided by sum of total net debt, convertible preferred
stock and shareholders’ equity ($3,064,074).
Processed and formatted by SEC Watch - Visit SECWatch.com
Earnings Release:
We calculate adjusted EBITDAX as earnings before net interest expense, taxes, depreciation and amortization, and
exploration expense. Further, we reduce adjusted EBITDAX for the minority interest in Cal Dive that we do not own.
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.
Processed and formatted by SEC Watch - Visit SECWatch.com
Earnings Release:
4Q08 4Q07
(in thousands) (in thousands)
Exhibit 99.2
T h i s p r e s e n t a t i o n c o n t a i n s f o r wa r d - l o o k i n g s t a t e m e n t s wi t h i n t h e m e a n i n g o f S e c t i o n 2 7 A o f t h e S e c u r i t i e s Ac t o f 1 9 3 3 a n d S e c t i o n 2 1 E o f t h e S e c u r i t i e s E x c h a n g e Ac t o f 1 9 3 4 . Al l s u c h s t a t e m e n t s , o t h e r t h a n s t a t e m e n t s o f h i s t o r i c a l f a c t , a r e s t a t e m e n t s t h a t c o u l d b e d e e m e d " f o r wa r d - l o o k i n g s t a t e m e n t s " wi t h i n t h e m e a n i n g o f t h e P r i v a t e S e c u r i t i e s L i t i g a t i o n Re f o r m Ac t o f 1 9 9 5 , i n c l u d i n g , wi t h o u t l i m i t a t i o n , a n y p r o j e c t i o n s o f r e v e n u e , g r o s s m a r g i n , e x p e n s e s , e a r n i n g s o r l o s s e s f r o m o p e r a t i o n s , o r o t h e r f i n a n c i a l i t e m s ; f u t u r e p r o d u c t i o n v o l u m e s , r e s u l t s o f e x p l o r a t i o n , e x p l o i t a t i o n , d e v e l o p m e n t , a c q u i s i t i o n a n d o p e r a t i o n s e x p e n d i t u r e s , a n d p r o s p e c t i v e
r e s e r v e l e v e l s o f p r o p e r t y o r we l l s ; a n y s t a t e m e n t s o f t h e p l a n s , s t r a t e g i e s a n d o b j e c t i v e s o f m a n a g e m e n t f o r f u t u r e o p e r a t i o n s ; a n y s t a t e m e n t s c o n c e r n i n g d e v e l o p m e n t s , p e r f o r m a n c e o r i n d u s t r y r a n k i n g s ; a n d a n y s t a t e m e n t s o f a s s u m p t i o n s u n d e r l y i n g a n y o f t h e f o r e g o i n g . Al t h o u g h we b e l i e v e t h a t t h e e x p e c t a t i o n s s e t f o r t h i n t h e s e f o r wa r d - l o o k i n g s t a t e m e n t s a r e r e a s o n a b l e , t h e y d o i n v o l v e r i s k s , u n c e r t a i n t i e s a n d a s s u m p t i o n s t h a t c o u l d c a u s e o u r r e s u l t s t o d i f f e r m a t e r i a l l y f r o m t h o s e e x p r e s s e d o r i m p l i e d b y s u c h f o r wa r d - l o o k i n g s t a t e m e n t s . T h e r i s k s , u n c e r t a i n t i e s a n d a s s u m p t i o n s r e f e r r e d t o a b o v e i n c l u d e t h e p e r f o r m a n c e o f c o n t r a c t s b y s u p p l i e r s ,
c u s t o m e r s a n d p a r t n e r s ; e m p l o y e e m a n a g e m e n t i s s u e s ; c o m p l e x i t i e s o f g l o b a l p o l i t i c a l a n d e c o n o m i c d e v e l o p m e n t s ; g e o l o g i c r i s k s a n d o t h e r r i s k s d e s c r i b e d f r o m t i m e t o t i m e i n o u r r e p o r t s f i l e d wi t h t h e S e c u r i t i e s a n d E x c h a n g e Co m m i s s i o n ( " S E C" ) , i n c l u d i n g t h e Co m p a n y 's An n u a l Re p o r t o n F o r m 1 0 - K f o r t h e y e a r e n d e d De c e m b e r 3 1 , 2 0 0 7 a n d s u b s e q u e n t q u a r t e r l y r e p o r t s o n F o r m 1 0 - Q. Yo u s h o u l d n o t p l a c e u n d u e r e l i a n c e o n t h e s e f o r wa r d - l o o k i n g s t a t e m e n t s wh i c h s p e a k o n l y a s o f t h e d a t e o f t h i s p r e s e n t a t i o n a n d t h e a s s o c i a t e d p r e s s r e l e a s e . W e a s s u m e n o o b l i g a t i o n o r d u t y a n d d o n o t i n t e n d t o u p d a t e t h e s e f o r wa r d - l o o k i n g s t a t e m e n t s e x c e p t a s r e q u i r e d b y t h e
s e c u r i t i e s l a ws . T h e Un i t e d S t a t e s S e c u r i t i e s a n d E x c h a n g e Co m m i s s i o n p e r m i t s o i l a n d g a s c o m p a n i e s , i n t h e i r f i l i n g s wi t h t h e S E C, t o d i s c l o s e o n l y p r o v e d r e s e r v e s t h a t a c o m p a n y h a s d e m o n s t r a t e d b y a c t u a l p r o d u c t i o n o r c o n c l u s i v e f o r m a t i o n t e s t s t o b e e c o n o m i c a l l y a n d l e g a l l y p r o d u c i b l e u n d e r e x i s t i n g e c o n o m i c a n d o p e r a t i n g c o n d i t i o n s . S t a t e m e n t s o f p r o v e d r e s e r v e s a r e o n l y e s t i m a t e s a n d m a y b e i m p r e c i s e . An y r e s e r v e e s t i m a t e s p r o v i d e d i n t h i s p r e s e n t a t i o n t h a t a r e n o t s p e c i f i c a l l y d e s i g n a t e d a s b e i n g e s t i m a t e s o f p r o v e d r e s e r v e s m a y i n c l u d e n o t o n l y p r o v e d r e s e r v e s b u t a l s o o t h e r c a t e g o r i e s o f r e s e r v e s t h a t t h e S E C's g u i d e l i n e s s t r i c t l y p r o h i b i t t h e
Co m p a n y f r o m i n c l u d i n g i n f i l i n g s wi t h t h e S E C. I n v e s t o r s a r e u r g e d t o c o n s i d e r c l o s e l y t h e d i s c l o s u r e i n t h e Co m p a n y 's 2 0 0 7 F o r m 1 0 - K. F o r wa r d - L o o k i n g S t a t e m e n t s
Processed and formatted by SEC Watch - Visit SECWatch.com
Ex e c u t i v e Sum m a r y Sum m a r y of Q4 / 2008 Re s u l t s ( pg. 4) 2009 Ou t l o o k ( pg. 7) Li q u i d i t y and Ca p i t a l Re s o u r c e s ( pg. 9) Op e r a t i o n a l Hi g h l i g h t s by Se gm e nt Co n t r a c t i n g Se r vi c e s ( pg. 14) Oi l & Ga s ( pg. 19) No n - GAAP Re c o n c i l i a t i o n s Qu e s t i o n s & An s we r s Pr e s e nt a t i on Ou t l i n e T6 0 0 t r enchi ng ROV o n boar d No r t h e r n Ca n y o n
Processed and formatted by SEC Watch - Visit SECWatch.com
Hi g h l i g h t s ( $ i n m i l l i ons , except per s har e dat a) Ex e c u t i v e Sum m a r y I ncl udes $840 m i l l i on of g o o d wi l l wr i t e - o f f s and pr oper t y i m pai r m ent s , net of t ax Se e n o n - GAAP r e c o n c i l i a t i o n on s l i des 23- 24
Processed and formatted by SEC Watch - Visit SECWatch.com
F o u r t h Qu a r t e r 2 0 0 8 Hi g h l i g h t s No n - c a s h pr e- t ax char ges r ecor ded i n Q4 Go o d wi l l a n d o t h e r i n t a n g i b l e wr i t e of f s of $715 m i l l i on Oi l and gas i m pai r m ent s of $193 m i l l i on Sus pe nde d we l l wr i t e - o f f s of $19 m i l l i on St r ong quar t er l y r evenues f or Co n t r a c t i n g Se r vi c e s bus i nes s Co n t i n u e d s t r ong dem and and ut i l i zat i on f or He l i x Co n t r a c t i n g Se r vi c e s ( W el l Op e r a t i o n s , Subs e a Co n s t r u c t i o n and Ro b o t i c s ) She l f Co n t r a c t i n g ( Ca l Di v e ) pos t ed m uch s t r onger quar t er l y / year over year r es ul t s Pr oduc t i on di s r upt i ons f r om Hu r r i c a n e s Gu s t a v and I ke negat i vel y i m pact ed oi l and gas s e g m e n t 's r evenue and pr of i t f or t he quar t er Pr oduc t i on as of 2/ 24/ 09 at >9 0 % of pr e- I ke l evel s ,
excl udi ng ef f ect of s a l e o f " Ba s s L i t e " i n De c e m b e r 2 0 0 8 / J a n u a r y 2009 Pr oduc t i on i n Q4 f e l l t o 6 . 4 Bc f e Ex e c u t i v e S u m m a r y
Processed and formatted by SEC Watch - Visit SECWatch.com
Four t h Qu a r t e r 2008 Hi g h l i g h t s ( cont i nued) 2008 Re s e r v e Re p o r t Ye a r end pr oved r es er ves of 665 Bc f e Re p l a c e m e n t r at e @ 175% of pr oduct i on M aj or gas di s cover y i n Bu s h wo o d of f s et s r es er ve decr eas es due t o pr i ce decl i nes , pr oper t y sal es, et c. P V- 1 0 val ue of r es er ves appr oxi m at el y $1. 9 bi l l i on Ex e c u t i v e Sum m a r y
Processed and formatted by SEC Watch - Visit SECWatch.com
He l i x expect s t o f ur t her r educe net debt i n 2009, wi t h o u t t he benef i t of asset sal es Ca p i t a l expendi t ur es of appr oxi m at el y $300 m i l l i on $180 m i l l i on r el at es t o com pl et i on of t hr ee m aj or ves s el pr oj ect s ( W el l En h a n c e r , Ca e s a r and He l i x Pr oduc e r I ) M os t of r em ai ni ng CAP E X i s m ai nt enance 2/ 3 of 2009 pl anned CAP E X i n 1H 2009 Go o d Co n t r a c t i n g Se r vi c e s vi s i bi l i t y i n 1H 2009 To t a l Ba c k l o g of $550 m i l l i on ( excl udi ng $350 m i l l i on of Ca l Di v e ) 2009 backl og of $360 m i l l i on ( excl udi ng $300 m i l l i on of Ca l Di v e ) 2009 Ou t l o o k * * Al l est i m at es and com m ent ar y excl us i ve of Ca l Di v e Cu s t o m e r s onboar d I nt r epi d
Processed and formatted by SEC Watch - Visit SECWatch.com
2009 Ou t l o o k ( cont i nued) Oi l and Ga s Pr oduc t i on r ange: 50 - 60 bcf e Oi l and gas pr i ces W i t hout hedges : $5. 23 / m cf e $46. 00 / bbl W i t h hedges : $7. 08 / m cf e $64. 78 / bbl Ga r d e n Ba n k s 506 Fi e l d ( No o n a n ) net dai l y pr oduct i on ( es t i m at ed) Q1 2009: 18 m cf e/ d Q2 2009: 60 m cf e/ d
Processed and formatted by SEC Watch - Visit SECWatch.com
$59 m i l l i on of addi t i onal b o r r o wi n g capaci t y under r evol vi ng cr edi t f aci l i t y ( as of 2/ 24/ 2009) Ne t debt pos i t i on expect ed t o decr eas e by 12/ 31/ 2009 M onet i zat i on of non- cor e asset s wo u l d add addi t i onal l i qui di t y and i ncr eas e net debt r educt i on Li q u i d i t y and Ca p i t a l Re s o u r c e s * * Al l am ount s , est i m at es and com m ent ar y excl us i ve of Ca l Di v e
Processed and formatted by SEC Watch - Visit SECWatch.com
Ap p r o x i m a t e l y 73% of t ot al pr oj ect ed 2009 oi l and gas pr oduct i on hedged ( see det ai l ed s chedul e on page 22 f or cur r ent hedge pos i t i ons ) Co m p a n y i s f ocus ed on ef f or t s t o m onet i ze non- cor e asset s and bus i nes s es Oi l and gas asset s Ba s s Li t e sal e De c e m b e r 08 & J anuar y 09 ( $49 m i l l i on) Pr oduc t i on f aci l i t i es Ca l Di v e ( appr oxi m at el y 51% o wn e d s ubs i di ar y) Sol d 13. 6 m i l l i on s har es of CDI com m on s t ock t o Ca l Di v e f or gr os s pr oceeds of $86 m i l l i on i n J anuar y 2009 M onet i zat i on of s om e or al l non- cor e asset s wo u l d accel er at e debt r educt i on and bol s t er l i qui di t y Li q u i d i t y and Ca p i t a l Re s o u r c e s
Processed and formatted by SEC Watch - Visit SECWatch.com
Co m p a n y i s i n com pl i ance as of 12/ 31/ 2008, and bas ed on cur r ent f or ecas t s expect s com pl i ance t hr oughout 2009 Li q u i d i t y and Ca p i t a l Re s o u r c e s Co v e n a n t Te s t Ex p l a n a t i o n Co l l a t e r a l Co v e r a g e Ra t i o > 1. 75 : 1 Ba s k e t of col l at er al t o Se ni or Se c ur e d De b t Fi xe d Ch a r g e Co v e r a g e Ra t i o > 2. 75 : 1 Co n s o l i d a t e d E BI T DA ( i n c l . Ca l Di v e % ) t o cons ol i dat ed i nt er es t char ges Co n s o l i d a t e d Le v e r a g e Ra t i o < 3. 5 : 1 Co n s o l i d a t e d E BI T DA ( i n c l . Ca l Di v e % ) t o cons ol i dat ed debt Ke y Cr e d i t Fa c i l i t y Co v e n a n t s
Processed and formatted by SEC Watch - Visit SECWatch.com
Cr e d i t F a c i l i t i e s , Co m m i t m e n t s a n d Am o r t i z a t i o n $ 4 2 0 M i l l i o n Re v o l v i n g Cr e d i t F a c i l i t y - c o m m i t t e d f a c i l i t y t h r o u g h J une 2011. No r equi r ed am or t i zat i on. $59 m i l l i on avai l abl e as of 2/ 24/ 09. $419 M i l l i on Te r m Lo a n B - com m i t t ed f aci l i t y t hr ough J une 2013; $4. 3 m i l l i on am or t i zat i on annual l y. $550 M i l l i on Hi g h Yi e l d No t e s - I nt er es t onl y unt i l m at ur i t y ( 2016) or cal l ed by He l i x . Fi r s t He l i x cal l dat e i s 2012. $300 M i l l i on Co n v e r t i b l e No t e s - I nt er es t onl y unt i l put by not ehol der s or cal l ed by He l i x . Fi r s t put / cal l dat e i s 2012, al t hough not ehol der s have t he r i ght t o conver t pr i or t o t hat dat e i f cer t ai n s t ock pr i ce t r i gger s ar e m et ( $38. 56) . M ARAD -
25 year t er m ; $4 m i l l i on pr i nci pal paym ent s annual l y. L i q u i d i t y a n d Ca p i t a l Re s o u r c e s * * Am o u n t s e x c l u s i v e o f Ca l Di v e
Processed and formatted by SEC Watch - Visit SECWatch.com
He l i x Co n t r a c t i n g Se r vi c e s He l i x i ns t al l s 200, 000 f eet of h e a v y - wa l l pi pe and as s oci at ed s ubs ea s ys t em s f or E NI Lo n g h o r n pr oj ect i n t he Gu l f of M exi co Pi pe l a y ves s el I nt r epi d l ogs 100% ut i l i zat i on f or Q4 i n t he Gu l f of M exi co Ex p r e s s and RE M For z a cont i nue Re l i a n c e Pr oj e c t t as ks of f s hor e I ndi a S e a we l l and Q4 0 0 0 we l l i nt er vent i on ves s el s cont i nue hi gh ut i l i zat i on r at es Pi pe La y r am p s ys t em com pl et ed, expandi ng i ns t al l at i on capabi l i t y by a l l o wi n g He l i x t o l ay pi pe f r om ves s el s of oppor t uni t y Ex p r e s s and Re l i a n c e Ce n t r a l Ri s e r Pl a t f or m , as seen f r om Ec l i p s e , of f s hor e I ndi a He l i x Co n t r a c t i n g Se r vi c e s
Processed and formatted by SEC Watch - Visit SECWatch.com
Re v e n u e and Gr o s s Pr of i t by Di v i s i o n ( $ i n m i l l i ons ) He l i x Co n t r a c t i n g Se r vi c e s
Processed and formatted by SEC Watch - Visit SECWatch.com
He l i x Co n t r a c t i n g Se r vi c e s
Processed and formatted by SEC Watch - Visit SECWatch.com
As s e t s Un d e r Co n s t r u c t i o n W el l En h a n c e r En t e r s s er vi ce Q2 2009 He l i x Co n t r a c t i n g Se r vi c e s Se a t r i al s com pl et ed 1/ 2009 Fi na l i ns t al l at i on of we l l i nt er vent i on s pr ead u n d e r wa y To oper at e i n No r t h Se a Ca e s a r En t e r s s er vi ce 2H 2009 He l i x Pr oduc e r I En t e r s s er vi ce Q1 2010 Co n v e r s i o n i n pr ogr es s i n COS CO s h i p y a r d Ev a l u a t i n g t hi r d- par t y i nt er es t i n pur chas i ng ves s el Hu l l conver s i on i n Gr e e k s hi pyar d near i ng com pl et i on De p a r t s on or about 4/ 2009 f or t ops i de pr oduct i on s ys t em i ns t al l at i on i n Te x a s
Processed and formatted by SEC Watch - Visit SECWatch.com
Fi na nc i a l Hi g h l i g h t s No o n a n pr oduct i on r ecom m enced i n J anuar y 2009, and peak pr oduct i on of 60 m m cf e, net t o He l i x , ant i ci pat ed f or l at er i n Q1 2009. He l i x Oi l & Ga s I ncl udes UK p r o d u c t i o n of 0. 1 Bc f e i n Q3 2008. I ncl udi ng hedge i m pact .
Processed and formatted by SEC Watch - Visit SECWatch.com
He l i x En e r g y Sol ut i ons