Helix Energy (HLX) came out with quarterly earnings of $0.02 per share, beating the Zacks Consensus Estimate of a loss of $0.05 per share. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 140%. A quarter ago, it was expected that this offshore oil and gas services contractor would post earnings of $0.03 per share when it actually produced earnings of $0.13, delivering a surprise of 333.33%. Over ...

[Financial and Operational Highlights](index=1&type=section&id=Summary%20of%20Results) Helix reported a net income of **$3.1 million** in Q1 2025, a decrease from the prior quarter but a recovery from the prior year, impacted by seasonal slowdowns and market uncertainty Q1 2025 Financial Summary (in thousands) | | 3/31/2025 | 3/31/2024 | 12/31/2024 | | :--- | :--- | :--- | :--- | | **Revenues** | $278,064 | $296,211 | $355,133 | | **Gross Profit** | $27,538 | $19,554 | $58,859 | | **Net Income (loss)** | $3,072 | $(26,287) | $20,121 | | **Diluted EPS** | $0.02 | $(0.17) | $0.13 | | **Adjusted EBITDA** | $51,985 | $46,990 | $71,641 | | **Free Cash Flow** | $11,954 | $61,242 | $65,454 | - The first quarter was impacted by a seasonal slowdown in the North Sea and Gulf of America, planned regulatory dockings for Robotics fleet vessels, and the mobilization of the Q7000 for a project in Brazil[4](index=4&type=chunk) - Market uncertainty has been created by OPEC+ production increases, U.S. tariffs, and challenges in the North Sea oil and gas market, causing some operators to pause work[4](index=4&type=chunk) - In response to the new market environment, Helix is adjusting operations to align with decreased activity but expects to generate meaningful free cash flow in 2025 due to a strong balance sheet and contracted backlog[4](index=4&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Information,%20Operational%20and%20Financial%20Highlights) Q1 2025 segment performance was mixed, with Well Intervention and Robotics revenues declining QoQ due to seasonality, while Production Facilities increased Segment Revenues and Operating Income (in thousands) | | Three Months Ended 3/31/2025 | Three Months Ended 3/31/2024 | Three Months Ended 12/31/2024 | | :--- | :--- | :--- | :--- | | **Revenues:** | | | | | Well Intervention | $198,374 | $211,300 | $226,188 | | Robotics | $51,042 | $50,309 | $81,594 | | Shallow Water Abandonment | $16,818 | $26,853 | $37,690 | | Production Facilities | $19,837 | $24,152 | $18,462 | | **Income (Loss) from Operations:** | | | | | Well Intervention | $19,970 | $18,679 | $29,118 | | Robotics | $5,347 | $5,450 | $19,335 | | Shallow Water Abandonment | $(13,441) | $(12,428) | $(5,422) | | Production Facilities | $6,944 | $(1,543) | $5,498 | [Well Intervention](index=2&type=section&id=Well%20Intervention) Well Intervention revenue decreased QoQ and YoY due to lower utilization and vessel docking, despite a YoY increase in operating income - QoQ revenue decreased by **$27.8 million** (12%) due to seasonally lower utilization in the North Sea and docking days for the Q7000, partially offset by higher rates in Brazil for the Siem Helix 1 and Siem Helix 2[7](index=7&type=chunk) - YoY revenue decreased by **$12.9 million** (6%) due to lower utilization on the Seawell (idle) and Q7000, offset by higher rates on the Q5000 and Siem Helix vessels, while operating income increased by **$1.3 million** YoY[8](index=8&type=chunk) [Robotics](index=3&type=section&id=Robotics) Robotics revenue significantly decreased QoQ due to seasonal declines in vessel utilization, while YoY revenue remained relatively flat - QoQ revenue decreased by **$30.6 million** (37%) due to seasonally lower vessel days and utilization, with chartered vessel activity falling to **244 days** from **508 days** in the prior quarter[9](index=9&type=chunk) - YoY revenue increased slightly by **$0.7 million** (1%) due to a rise in trenching activities (**225 total days** vs **85 days** in Q1 2024), partially offset by lower overall ROV and vessel utilization[10](index=10&type=chunk) [Shallow Water Abandonment](index=3&type=section&id=Shallow%20Water%20Abandonment) Shallow Water Abandonment revenue fell significantly QoQ and YoY, widening operating losses due to lower utilization - QoQ revenue decreased by **$20.9 million** (55%) reflecting seasonally lower vessel utilization (**31%** vs **65%** in Q4 2024) and P&A/CT systems activity, with the operating loss increasing by **$8.0 million**[11](index=11&type=chunk) - YoY revenue decreased by **$10.0 million** (37%) due to lower system and vessel utilization, as the Epic Hedron heavy lift barge was idle in both Q1 2025 and Q1 2024[12](index=12&type=chunk) [Production Facilities](index=3&type=section&id=Production%20Facilities) Production Facilities revenue increased QoQ from Droshky wells, while YoY revenue decreased, but operating income improved - QoQ revenue increased by **$1.4 million** (7%) due to higher oil and gas production from the Droshky wells, which had a full quarter of production[13](index=13&type=chunk) - YoY revenue decreased by **$4.3 million** (18%) due to lower production and prices, as production did not include the shut-in Thunder Hawk wells, however, operating income increased by **$8.5 million** due to well workover costs incurred in Q1 2024[14](index=14&type=chunk) [Other Financial Details](index=4&type=section&id=Selling,%20General%20and%20Administrative%20and%20Other) SG&A expenses decreased in Q1 2025 due to lower compensation, with other expenses minimal from foreign currency losses - SG&A expenses were **$19.4 million** (**7.0%** of revenue) in Q1 2025, down from **$27.6 million** (**7.8%** of revenue) in Q4 2024, mainly due to lower compensation costs[15](index=15&type=chunk) - Other expense, net was **$0.4 million** in Q1 2025, primarily due to net foreign currency losses from the appreciation of the British pound on U.S. dollar cash balances in U.K. subsidiaries[16](index=16&type=chunk) [Cash Flow and Financial Condition](index=4&type=section&id=Cash%20Flows) Operating cash flow significantly decreased in Q1 2025 due to lower earnings and higher costs, despite strong liquidity and negative net debt - Operating cash flows were **$16.4 million** in Q1 2025, a decrease from **$78.0 million** in Q4 2024 and **$64.5 million** in Q1 2024, primarily due to lower earnings and higher regulatory certification costs (**$17.9 million** in Q1 2025)[17](index=17&type=chunk) - Free Cash Flow was **$12.0 million** in Q1 2025, down from **$65.5 million** in Q4 2024 and **$61.2 million** in Q1 2024, mainly due to lower operating cash flows[19](index=19&type=chunk) - At March 31, 2025, the company had cash and cash equivalents of **$370.0 million**, total liquidity of **$404.7 million**, and negative Net Debt of **$58.9 million**[19](index=19&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section provides unaudited consolidated financial statements, including Statements of Operations, Balance Sheets, and Cash Flows [Consolidated Statements of Operations](index=6&type=section&id=Comparative%20Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 saw a net income of **$3.1 million** on **$278.1 million** in revenues, a significant improvement from the prior year's net loss Consolidated Statements of Operations (in thousands) | | Three Months Ended Mar. 31, 2025 | Three Months Ended Mar. 31, 2024 | | :--- | :--- | :--- | | **Net revenues** | $278,064 | $296,211 | | **Gross profit** | $27,538 | $19,554 | | **Income (loss) from operations** | $8,172 | $(1,276) | | **Net income (loss)** | $3,072 | $(26,287) | | **Diluted EPS** | $0.02 | $(0.17) | [Consolidated Balance Sheets](index=7&type=section&id=Comparative%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased slightly to **$2.635 billion**, with stable cash and growing shareholders' equity Consolidated Balance Sheet Highlights (in thousands) | | Mar. 31, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $369,987 | $368,030 | | **Total Current Assets** | $736,207 | $709,682 | | **Total Assets** | $2,635,023 | $2,597,080 | | **Total Current Liabilities** | $323,395 | $304,416 | | **Long-term debt** | $301,697 | $305,971 | | **Total Liabilities** | $1,089,758 | $1,077,315 | | **Shareholders' equity** | $1,545,265 | $1,519,765 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Comparative%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly decreased to **$16.4 million** in Q1 2025, resulting in a net increase in cash of **$2.0 million** Consolidated Statements of Cash Flows (in thousands) | | Three Months Ended 3/31/2025 | Three Months Ended 3/31/2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $16,442 | $64,484 | | **Net cash used in investing activities** | $(4,488) | $(3,242) | | **Net cash used in financing activities** | $(11,075) | $(69,304) | | **Net increase (decrease) in cash** | $1,957 | $(8,342) | [Non-GAAP Financial Measures Reconciliation](index=5&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles non-GAAP measures like Adjusted EBITDA, Free Cash Flow, and Net Debt to GAAP for performance evaluation - Management uses non-GAAP measures such as EBITDA, Adjusted EBITDA, Free Cash Flow, and Net Debt to monitor performance, compare results with industry peers, and make strategic financial decisions[23](index=23&type=chunk) Non-GAAP Reconciliations (in thousands) | | 3/31/2025 | 3/31/2024 | 12/31/2024 | | :--- | :--- | :--- | :--- | | **Net income (loss)** | $3,072 | $(26,287) | $20,121 | | **Adjusted EBITDA** | $51,985 | $46,990 | $71,641 | | **Cash flows from operating activities** | $16,442 | $64,484 | $77,977 | | **Free Cash Flow** | $11,954 | $61,242 | $65,454 | | **Net Debt** | $(58,878) | $(5,685) | $(52,873) |

Group 1 - The Zacks Rank emphasizes earnings estimates and revisions to identify strong stocks, while also considering value, growth, and momentum trends [1] - Value investing is a popular strategy that relies on traditional analysis of key valuation metrics to find undervalued stocks [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the "Value" category [3] Group 2 - Helix Energy Solutions Group (HLX) has a Zacks Rank of 1 (Strong Buy) and an A for Value, indicating it is a strong value stock [4] - HLX's P/E ratio is 8.33, significantly lower than the industry average P/E of 10.90, suggesting it may be undervalued [4] - The P/B ratio for HLX is 0.64, compared to the industry's average P/B of 1.73, further indicating attractive valuation [5] - HLX's P/CF ratio is 5.03, which is lower than the industry's average P/CF of 5.87, suggesting solid cash outlook [6] - These valuation metrics indicate that HLX is likely undervalued and has a strong earnings outlook, making it an impressive value stock [7]

Market Overview - President Trump's announcement of reciprocal tariffs led to significant volatility in the U.S. stock market, with the S&P 500 dropping 9% in the first week of April, its worst week since 2020, followed by a rebound of 5.7% the next week, marking the best week since 2023 [1] - Exemptions from tariffs on items such as smartphones, semiconductors, and solar cells contributed to a strong tech rally, although the S&P 500 remained below its level from April 2 [2] - Ongoing uncertainty regarding a potential global trade war continues to concern investors and economists [2] Value Investing Strategy - Value investing focuses on purchasing stocks priced below their intrinsic value, capitalizing on market mispricing [4] - Earnings yield, calculated as (Annual Earnings per Share/Market Price) x 100, serves as a key metric for value investors, indicating potential undervaluation when high [5] - Earnings yield can be compared to bond returns, such as the 10-year Treasury yield, to assess the attractiveness of stocks relative to fixed-income securities [6] Stock Screening Criteria - A primary screening criterion is an Earnings Yield greater than 10%, supplemented by additional parameters such as estimated EPS growth for the next 12 months being greater than or equal to the S&P 500 [7] - Average Daily Volume (20 Day) should be greater than or equal to 100,000 to ensure adequate liquidity [8] - Current Price must be greater than or equal to $5, and stocks with a Zacks Rank 1 (Strong Buy) or 2 (Buy) are expected to outperform peers [9] Selected Stocks - **Alibaba Group (BABA)**: Dominates the e-commerce sector in China and is expanding internationally, with a Zacks Rank 1 and a Value Score of B. The consensus estimate for fiscal 2025 and 2026 earnings indicates year-over-year growth of 2.1% and 23% respectively [10][11] - **Fresenius Medical Care AG (FMS)**: A leading provider of dialysis products and services, recently launched a new home dialysis machine. The consensus estimate for 2025 and 2026 earnings suggests growth of 27.1% and 9.1% respectively [12][13] - **Helix Energy Solutions Group Inc. (HLX)**: Focuses on offshore energy services, with a consensus estimate for 2025 and 2026 earnings indicating growth of 42% and 28.2% respectively [14][15] - **Heritage Insurance Holdings, Inc. (HRTG)**: Provides residential insurance products with a focus on selective underwriting. The consensus estimate for 2025 and 2026 earnings suggests growth of 21% and 28.6% respectively [16][17]

Core Insights - The article serves as an introduction to "The Cannabis Report," which focuses on the cannabis industry and includes insights from an experienced analyst and consultant in the field [1] Industry Overview - The cannabis industry is highlighted as a growing sector with potential investment opportunities, particularly in technical stock analysis, option strategies, small cap strategies, and emerging markets [1] Analyst Background - The analyst has a background in contributing to High Times Magazine and has published a book titled "Cannabis in the Ancient Greek and Roman World," indicating a deep knowledge of the cannabis sector [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________ to__________ Commission file number 001-32936 HELIX ENERGY SOLUTIONS GROUP, INC. (Exact name of registrant as specified in its charter) State or o ...

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has a background in auditing with PricewaterhouseCoopers and transitioned to day trading nearly 20 years ago [2] - The experience includes navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2]

Financial Data and Key Metrics Changes - Revenues for Q4 2024 were $355 million, with a gross profit of $59 million and net income of $20 million, resulting in adjusted EBITDA of $72 million and positive operating cash flows of $78 million, leading to strong free cash flow of $65 million [11][12] - Full year 2024 revenues were $1.36 billion, with a gross profit of $220 million and net income of $56 million, adjusted EBITDA for the year was $303 million, representing a greater than 10% improvement over 2023 [13][14] - Cash and cash equivalents stood at $368 million, with total liquidity of $430 million and funded debt of $324 million, resulting in negative net debt of $53 million at year-end [26] Business Line Data and Key Metrics Changes - The well intervention segment showed strong utilization in Africa, the US Gulf, Brazil, and Australia, with the Q7000 achieving 99% utilization in Australia [18][19] - Robotics had a strong quarter, operating six vessels with high utilization, particularly in trenching projects and renewables-related work [20][22] - Shallow water abandonment segment experienced expected seasonal slowdown, reflecting a weak 2024 US Gulf Coast shelf market [24] Market Data and Key Metrics Changes - The offshore market remains constructive with healthy oil and gas spending, while the global renewables market is robust with increasing activity in Europe and Asia Pacific [28][29] - The North Sea market is expected to be weaker in 2025 due to increased taxes and regulatory challenges, leading to lower utilization forecasts [36][38] Company Strategy and Development Direction - The company plans to focus on maximizing remaining reserves and abandonment as the late-life market for oil and gas grows, with expectations of increased abandonment work in the coming years [51][52] - The robotics segment is expected to grow, with plans to add additional trenching capacity and expand into adjacent services [55][56] - The capital allocation strategy includes a minimum of 25% of free cash flow for share repurchases, with flexibility for M&A opportunities depending on market conditions [62] Management's Comments on Operating Environment and Future Outlook - Despite macro challenges, the company maintains a positive outlook for 2025, supported by strong contracted work and a healthy pipeline of bids and projects [28][30] - Seasonal weather impacts are expected to affect quarterly results, with the second and third quarters anticipated to be the most active [34] Other Important Information - The company has secured long-term contracts for key assets, providing strong contract coverage for multiple years [19][22] - The CapEx forecast for 2025 is heavily influenced by maintenance and dry dock periods, with a range of $70 million to $90 million [47][48] Q&A Session Summary Question: Free cash flow and M&A considerations - Management indicated a high probability of being active in M&A this year, focusing on geographic opportunities and the wind market, which has seen valuation pullbacks [68][70] Question: Well intervention market pricing trends - Management noted that while a good portion of assets are on long-term contracts, spot rates are still increasing, albeit at a slower pace than in previous years [73][74] Question: Guidance on revenue and backlog - The well intervention guidance reflects a balance of risk and opportunity, with solid contracts in place, while robotics has good backlog activity, particularly in Asia Pacific [80][84] Question: Contracting opportunities for Q4 and Q5 vessels - The Q5000 is contracted for two years with an option for a third, while the Q4000 has work lined up in the Gulf market after its current contract in Nigeria [101][102] Question: Capital allocation strategy - Management emphasized the strength of the balance sheet and current equity prices as reasons for a more aggressive share repurchase strategy, while remaining open to M&A opportunities [110][112]

February 25, 2025 Fourth Quarter 2024 Conference Call INTRODUCTION Forward-Looking Statements This presentation 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 ...

Core Viewpoint - Helix Energy (HLX) reported quarterly earnings of $0.13 per share, significantly exceeding the Zacks Consensus Estimate of $0.03 per share, marking an earnings surprise of 333.33% [1] - The company also posted revenues of $355.13 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 12.32% [2] Financial Performance - The earnings of $0.13 per share compare to $0.06 per share a year ago, indicating growth [1] - Over the last four quarters, Helix Energy has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Market Performance - Helix Energy shares have declined approximately 15.3% since the beginning of the year, contrasting with the S&P 500's gain of 2.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $244.24 million, and for the current fiscal year, it is $0.59 on revenues of $1.36 billion [7] Industry Outlook - The Oil and Gas - Field Services industry, to which Helix Energy belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the outlook for the industry can materially affect stock performance [5][8]