Furth Quarter 2013 Cnference Call February 20, 2014 1
Frward-Lking Statements This presentatin cntains frward-lking statements that invlve risks, uncertainties and assumptins that culd cause ur results t differ materially frm thse expressed r implied by such frward-lking statements. All statements, ther than statements f histrical fact, are "frward-lking statements" within the meaning f the Private Securities Litigatin Refrm Act f 1995, including, withut limitatin, any statements regarding ur strategy; any statements regarding future utilizatin; any prjectins f financial items; future peratins expenditures; any statements f the plans, strategies and bjectives f management fr future peratins; any statement cncerning develpments; any statements regarding future ecnmic cnditins r perfrmance; any statements f expectatin r belief; and any statements f assumptins underlying any f the freging. The frward-lking statements are subject t a number f knwn and unknwn risks, uncertainties and ther factrs including but nt limited t the perfrmance f cntracts by suppliers, custmers and partners; actins by gvernmental and regulatry authrities; perating hazards and delays; ur ultimate ability t realize current backlg; emplyee management issues; cmplexities f glbal plitical and ecnmic develpments; gelgic risks; vlatility f il and gas prices and ther risks described frm time t time in ur reprts filed with the Securities and Exchange Cmmissin ("SEC"), including the Cmpany's mst recently filed Annual Reprt n Frm 10-K and in the Cmpany s ther filings with the SEC, which are available free f charge n the SEC s website at www.sec.gv. We assume n bligatin and d nt intend t update these frward-lking statements except as required by the securities laws. Scial Media Frm time t time we prvide infrmatin abut the Cmpany n Twitter (@Helix_ESG) and LinkedIn (www.linkedin.cm/cmpany/helix-energy-slutins-grup). 2
Presentatin Outline Executive Summary Summary f Q4 2013 Results (pg. 5) Operatinal Highlights by Segment Cntracting Services (pg. 9) Key Balance Sheet Metrics (pg. 13) 2014 Outlk (pg. 16) Nn-GAAP Recnciliatins (pg. 21) Questins & Answers 3
Executive Summary 4
Executive Summary ($ in millins, except per share data) Quarter Ended Year Ended 12/31/2013 12/31/2012 9/30/2013 12/31/2013 12/31/2012 Revenues $ 227 $ 202 $ 220 $ 877 $ 846 Grss prfit: Operating 71 49 69 261 227 31% 24% 32% 30% 27% Cntracting services impairments (A) - (158) - - (177) Ttal $ 71 $ (109) $ 69 $ 261 $ 50 Net incme (lss) frm cntinuing peratins $ 37 $ (100) $ 45 $ 109 $ (70) Net incme (lss) frm discntinued peratins $ - $ (72) $ - $ 1 $ 24 Diluted earnings (lss) per share: Cntinuing peratins $ 0.35 $ (0.95) $ 0.42 $ 1.03 $ (0.67) Discntinued peratins (Oil and Gas) $ - $ (0.69) $ - $ 0.01 $ 0.23 Adjusted EBITDAX (B) Cntracting Services $ 93 $ 73 $ 83 $ 336 $ 321 Crprate / Eliminatin (11) (25) (13) (68) (87) Adjusted EBITDA frm cntinuing peratins $ 82 $ 48 $ 70 $ 268 $ 234 Adjusted EBITDAX frm discntinued peratins - 65-32 367 Adjusted EBITDAX $ 82 $ 113 $ 70 $ 300 $ 601 (A) 2012 impairment charges include $157.8 millin fr the Caesar and related mbile pipelay equipment (Q4), $14.6 millin fr the Intrepid and $4.6 millin fr well interventin assets at ur frmer peratins in Australia. (B) See nn-gaap recnciliatin n slide 21. 5
Executive Summary Q4 2013 earnings f $0.35 per diluted share cmpared t $0.42 per diluted share in Q3 2013 Q3 included a $15.6 millin gain n the sale f the Express and an $8.6 millin lss n the early extinguishment f debt; bth items netted t an after-tax impact f $0.04 per diluted share Cntracting Services and Prductin Facilities 94% utilizatin f Well Interventin vessels; strng utlk and backlg expected fr 2014 and beynd Skandi Cnstructr (chartered vessel) mbilized t ffshre West Africa in Q4; apprximately 60 day campaign cmmenced mid-january 2014 Rbtics lng-term chartered fleet utilizatin f 88% utilizatin in Q4; all fur trenchers active in the furth quarter Cmpleted 46 day regulatry dry dck f the Helix Prducer I and returned t service mid-nvember 2013 Cmpleted 47 day regulatry dry dck f the Well Enhancer and returned t service late January 2014 Helix 534 cmmenced peratins in the Gulf f Mexic in mid-february 2014 Signed agreement with Petróbras t prvide well interventin services ffshre Brazil, cmmencing in 2016 6
Executive Summary Balance sheet Cash and cash equivalents ttaled $478 millin at 12/31/2013 Liquidity* f $1.1 billin at 12/31/2013 Net debt f $88 millin at 12/31/2013 See updated debt maturity prfile n slide 14 We define liquidity as the ttal f cash and cash equivalents ($478 millin) plus unused capacity under ur revlving credit facility ($584 millin). 7
Operatinal Highlights 8
Cntracting Services ($ in millins, except percentages) Revenues (A) Quarter Ended 12/31/2013 12/31/2012 9/30/2013 Well Interventin $ 133 $ 104 $ 114 Rbtics 90 90 91 Subsea Cnstructin 2 30 4 Prductin Facilities 19 20 24 Ttal Revenue $ 244 $ 244 $ 233 94% utilizatin fr the Well Interventin fleet Skandi Cnstructr mbilized fr peratins ff the cast f West Africa 88% chartered vessel utilizatin in Rbtics Helix Prducer I cmpleted dry dck and returned t service mid-nvember 2013 Well Enhancer cmpleted dry dck and returned t service January 2014 Grss Prfit Cntracting Services (B) $ 63 $ 47 $ 56 Prfit Margin 28% 21% 27% Prductin Facilities $ 10 $ 10 $ 14 Prfit Margin 53% 51% 59% Ttal Grss Prfit $ 73 $ 57 $ 70 Grss Prfit Margin 30% 23% 30% (A) (B) See nn-gaap recnciliatin n slide 24. Amunts are prir t intercmpany eliminatins. Befre grss prfit impact f $157.8 millin in asset impairments fr the Caesar and related mbile pipelay equipment in Q4 2012. ROV nbard the Siem Daya I 9
Cntracting Services Well Interventin GOM Q4000 fully utilized during Q4 IRS n. 2 n hire fr the entire quarter; wrking at peratinal rates beginning late Nvember thrugh the end f the Q4 Helix 534 cmmenced peratins in the Gulf f Mexic in mid-february 2014 with full backlg fr the remainder f the year; backlg beynd 2014, and extending int 2017 Nrth Sea Full utilizatin f Seawell and Skandi Cnstructr during Q4 n a variety f well interventin prjects Well Enhancer fully utilized prir t entering dry dck in mid-december; returned t service late January 2014 Skandi Cnstructr departed UK mid-december fr a well interventin campaign ffshre Africa All vessels with high backlg in Q1 thrugh Q3 2014, ffshre UK, Canada and Africa; limited availability in Q4 2014 The SIL system 10
Cntracting Services Rbtics 88% lng-term chartered vessel fleet utilizatin in Q4 69% utilizatin fr ROVs, trenchers and ROVDrill Olympic Canyn cntinued peratins in India at 100% utilizatin fr the quarter REM Installer cmpleted accmmdatins prject in the Nrth Sea, then transited t the Gulf f Mexic t cmmence ROV services campaign Deep Cygnus utilized T750 trencher n varius trenching prjects in the Nrth Sea Grand Canyn perfrmed ROV and trenching prjects in the Nrth Sea utilizing T1200 and itrencher Olympic Tritn achieved 95% utilizatin n a ROVDrill campaign ffshre West Africa Extended existing multi-rov services cntract in Malaysia thrugh January 2015 Awarded trenching campaign in the Middle East nbard the Grand Canyn during Q1 and Q2 2014 The Grand Canyn 11
Cntracting Services Utilizatin 100% 94% 94% 98% 84% 88% 87% 80% 69% 68% 62% 60% Q4 2013 Q3 2013 40% Q4 2012 20% 0% Well Interventin Vessels ROV and Trencher Supprt Vessels ROVs and Trenchers (1) Chartered vessel Seawell Well Enhancer Q4000 Skandi Cnstructr (1) Olympic Canyn (1) Deep Cygnus (1) Olympic Tritn (1) Grand Canyn (1) REM Installer (1) 51 ROVs 2 ROVDrill Units 4 Trenchers 12
Key Balance Sheet Metrics 13
Debt Maturity Prfile Ttal funded debt f $593 millin at end f Q4 2013: $200 millin Cnvertible Senir Ntes 3.25% (A) ($173 millin net f unamrtized debt discunt) $293 millin Term Lan LIBOR + 2.75% (B) Annual amrtizatin payments f 5% in years 1 and 2, 10% per annum in years 3 thrugh 5 $100 millin MARAD Debt 4.93% Semi-annual amrtizatin payments $500 $400 $300 Debt Instrument Prfile at 12/31/2013 ($ amunts in millins) $200 $293 $200 $100 $100 (A) Stated maturity 2032. First put / call date March 2018. (B) We have fixed the LIBOR interest rate n 50% f the Term Lan debt at 0.75%, utilizing interest rate swaps, thrugh Octber 2016. $0 2014 2015 2016 2017 2018 2027 Cnvertible Ntes Term Lan MARAD Debt 14
Debt and Liquidity Prfile $2,000 $2,027 ($ amunts in millins) $1,200 $1,803 $1,500 $1,361 $1,358 $900 Debt (A) $1,000 $1,090 $967 $1,155 $1,019 $600 Liquidity (B) $609 $582 $566 $500 $300 $0 $88 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 Grss Debt Net Debt Liquidity Liquidity f apprximately $1.1 billin at 12/31/2013 $0 (A) (B) Includes impact f unamrtized debt discunt under ur cnvertible senir ntes. We define liquidity as the ttal f cash and cash equivalents ($478 millin) plus unused capacity under ur revlving credit facility ($584 millin). 15
2014 Outlk 16 16
2014 Outlk ($ in millins) 2014 2013 Outlk Actual Revenues (n-ging peratins) $ 1,030 $ 805 EBITDA ~ 350 300 CAPEX ~ 400 343 Earnings Per Share (A) $1.55 $1.65 $1.04 Revenue Split: Well Interventin $ 625 $ 452 Rbtics 355 333 Prductin Facilities 95 88 Eliminatins (45) (68) On-ging Operatins $ 1,030 $ 805 Oil and Gas - 49 Subsea Cnstructin - 71 Ttal Revenues $ 1,030 $ 925 (A) Earnings per share estimates based n a crprate tax rate ranging frm 25% - 30%. 17
2014 Outlk Cntracting Services backlg as f December 31, 2013 was apprximately $1.8 billin; ttal backlg f apprximately $2.0 billin including Prductin Facilities Utilizatin expected t remain strng fr the well interventin fleet Q4000 backlg thrugh 2015; negtiatins nging t extend cmmitments int 2017 Q5000 backlg currently a minimum f 270 days annually ver first 5 years f peratins Helix 534 has full backlg thrugh 2016 and extending int 2017 Well Enhancer and Seawell have high levels f backlg in 2014 and extending int 2015 Seawell re-fit dry dck expected t cmmence in December 2014 Skandi Cnstructr nearly full backlg in 2014, with cmmitments int 2015 Vessel perating ffshre Africa fr Q1 2014, with new business cmmitments in Canada and West f Shetland Q2/Q3 2014 Skandi Cnstructr scheduled fr ~30 day dry dck in December 18
2014 Outlk Rbtics business entering 2014 with a healthy, grwing backlg (14% increase in backlg frm Q3 t Q4 2013) Eurpe and Middle East trenching markets expected t be strng; similar t 2012 Multi-trencher burial campaign nbard the Grand Canyn I in the Middle East during Q1 and Q2 2014 Mbilizing tw new wrk class ROVs nbard client s vessel t cmmence 5-year ROV services cntract beginning Q1 2014 Walk-t-wrk accmmdatins prject in the Nrth Sea utilizing the REM Installer cmmencing March 2014 fr apprximately six mnths Grand Canyn II vessel expected t enter Rbtics lng-term chartered fleet late 2014 19
2014 Outlk Capex Ttal capital expenditures currently budgeted at apprximately $400 millin in 2014 Grwth capital f apprximately $320 millin, including: Apprximately $160 millin fr the Q5000 and interventin riser system Apprximately $30 millin fr the Q7000 and interventin riser system Apprximately $50 millin fr the tw mnhull interventin vessels ging t Brazil in 2016 fr Petróbras award ROVs, T1500 jet trencher Maintenance capital f apprximately $55 millin, including: Apprximately $40 millin in dry dck csts, including the Seawell life extensin expected t begin December 2014 Rbtics, IRS / SIL maintenance Helix Prducer I engines Apprximately $21 millin fr the Helix Prducer I minrity interest buyut 20
Nn-GAAP Recnciliatins 21
Nn-GAAP Recnciliatins ($ in millins) Quarter Ended Year Ended 12/31/2013 12/31/2012 9/30/2013 12/31/2013 12/31/2012 Net incme (lss) frm cntinuing peratins $ 37 $ (99) $ 45 $ 112 $ (67) Adjustments: Incme tax prvisin (benefit) 16 (58) 7 32 (59) Net interest expense and ther 3 12 13 45 66 Depreciatin and amrtizatin 27 25 22 98 97 Asset impairment charges - 158 - - 177 EBITDA $ 83 $ 38 $ 87 $ 287 $ 214 Adjustments: Nncntrlling interest (1) (1) (1) (4) (4) Lss n cmmdity derivative cntracts - 10 - - 10 (Gain) / Lss n sale f assets - 1 (16) (15) 14 Adjusted EBITDA frm cntinuing peratins $ 82 $ 48 $ 70 $ 268 $ 234 Adjusted EBITDAX frm discntinued peratins - 65-32 367 Adjusted EBITDAX $ 82 $ 113 $ 70 $ 300 $ 601 We calculate Adjusted EBITDA frm cntinuing peratins as earnings befre net interest expense and ther, taxes, depreciatin and amrtizatin. Adjusted EBITDAX is Adjusted EBITDA frm cntinuing peratins plus the earnings f ur frmer il and gas business befre net interest expense and ther, taxes, depreciatin and amrtizatin, and explratin expense. These nn-gaap measures are useful t investrs and ther internal and external users f ur financial statements in evaluating ur perating perfrmance; they are widely used by investrs in ur industry t measure a cmpany s perating perfrmance withut regard t items which can vary substantially frm cmpany t cmpany, and help investrs meaningfully cmpare ur results frm perid t perid. Adjusted EBITDA frm cntinuing peratins and Adjusted EBITDAX shuld nt be cnsidered in islatin r as a substitute fr, but instead is supplemental t, incme frm peratins, net incme and ther incme data prepared in accrdance with GAAP. Nn-GAAP financial measures shuld be viewed in additin t, and nt as an alternative t ur reprted results prepared in accrdance with GAAP. Users f this financial infrmatin shuld cnsider the types f events and transactins which are excluded frm this measure. 22
Nn-GAAP Recnciliatins ($ in millins) Recnciliatin f Adjusted EBITDAX frm discntinued peratins: Quarter Ended Year Ended 12/31/2013 12/31/2012 9/30/2013 12/31/2013 12/31/2012 Net incme (lss) frm discntinued peratins $ - $ (72) $ - $ 1 $ 24 Adjustments: Incme tax prvisin (benefit) - (39) - 1 13 Net interest expense and ther - 6-3 28 Depreciatin and amrtizatin - 32-1 158 Asset impairment charges 139-139 Explratin expenses - 1-3 3 EBITDAX $ - $ 67 $ - $ 9 $ 365 Adjustments: Unrealized lss n cmmdity derivative cntracts - (2) - - - (Gain) lss n sale f assets - - - 23 2 Adjusted EBITDAX frm discntinued peratins $ - $ 65 $ - $ 32 $ 367 We calculate Adjusted EBITDA frm cntinuing peratins as earnings befre net interest expense and ther, taxes, depreciatin and amrtizatin. Adjusted EBITDAX is Adjusted EBITDA frm cntinuing peratins plus the earnings f ur frmer il and gas business befre net interest expense and ther, taxes, depreciatin and amrtizatin, and explratin expense. These nn-gaap measures are useful t investrs and ther internal and external users f ur financial statements in evaluating ur perating perfrmance; they are widely used by investrs in ur industry t measure a cmpany s perating perfrmance withut regard t items which can vary substantially frm cmpany t cmpany, and help investrs meaningfully cmpare ur results frm perid t perid. Adjusted EBITDA frm cntinuing peratins and Adjusted EBITDAX shuld nt be cnsidered in islatin r as a substitute fr, but instead is supplemental t, incme frm peratins, net incme and ther incme data prepared in accrdance with GAAP. Nn-GAAP financial measures shuld be viewed in additin t, and nt as an alternative t ur reprted results prepared in accrdance with GAAP. Users f this financial infrmatin shuld cnsider the types f events and transactins which are excluded frm this measure. 23
Nn-GAAP Recnciliatins ($ in millins) Revenues Quarter Ended 12/31/2013 12/31/2012 9/30/2013 Cntracting Services $ 225 $ 224 $ 209 Prductin Facilities 19 20 24 Intercmpany elim. - Cntracting Services (17) (31) (13) Intercmpany elim. - Prductin Facilities - (11) - Revenue as Reprted $ 227 $ 202 $ 220 Grss Prfit Cntracting Services $ 63 $ 47 $ 56 Prductin Facilities 10 10 14 Crprate - Ops Supprt (1) (1) (1) Intercmpany elim. - Cntracting Services (1) (5) - Intercmpany elim. - Prductin Facilities - - - Grss Prfit as Reprted $ 71 $ 51 $ 69 Grss Prfit Margin 31% 26% 32% 24
Fllw Helix n Twitter: @Helix_ESG Jin the discussin n LinkedIn: www.linkedin.cm/cmpany/helix 25