| --- | --- | --- | --- | --- | --- | |--------------------|-------|-------|-------|-------|-------| | | | | | | | | October 25, 2022 | | | | | | | Third Quarter 2022 | | | | | | | Conference Call | | | | | | | | | | | | | FORWARD-LOOKING STATEMENTS 2 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 ...

| --- | --- | --- | --- | --- | --- | |-------------------------|-------|-------|-------|-------|-------| | | | | | | | | SEPTEMBER 2022 | | | | | | | Helix Energy Solutions | | | | | | | Company Update | | | | | | | | | | | | | FORWARD-LOOKING STATEMENTS 2 References in this presentation to "our" or "Helix" means Helix Energy Solutions Group, Inc., together with our subsidiaries. References in this presentation to "Alliance" means Helix Alliance Decom, LLC, a wholly-owned subsidiary of Helix. This presenta ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) For the six months ended June 30, 2022, Helix Energy Solutions Group reported a net loss of **$71.7 million**, a significant increase from the **$16.7 million** loss in the same period of 2021, driven by a decline in gross profit to a **$20.0 million** loss from a **$17.8 million** profit year-over-year, primarily due to weaker performance in the Well Intervention segment, with total assets decreasing to **$2.21 billion** from **$2.33 billion** at year-end 2021, and cash flow from operations turning negative **$23.3 million** from a positive **$92.5 million** in the prior year period Condensed Consolidated Statements of Operations Highlights (Unaudited) | Metric (in thousands, except per share) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net Revenues | $312,737 | $325,356 | | Gross Profit (Loss) | $(19,963) | $17,754 | | Loss from Operations | $(51,953) | $(11,496) | | Net Loss | $(71,730) | $(16,733) | | Diluted Loss Per Share | $(0.47) | $(0.11) | Condensed Consolidated Balance Sheet Highlights (Unaudited) | Metric (in thousands) | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $260,595 | $253,515 | | Total Current Assets | $485,404 | $529,538 | | Total Assets | $2,213,653 | $2,326,028 | | Total Current Liabilities | $232,726 | $278,283 | | Long-term Debt | $258,977 | $262,137 | | Total Shareholders' Equity | $1,531,790 | $1,647,469 | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Metric (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(23,254) | $92,540 | | Net cash provided by (used in) investing activities | $5,653 | $(6,761) | | Net cash used in financing activities | $(40,319) | $(62,802) | [Note 2 — Company Overview](index=11&type=section&id=Note%202%20%E2%80%94%20Company%20Overview) The company operates as an international offshore energy services provider with a three-pronged business model focused on production maximization, decommissioning, and renewable energy support, with operations divided into three reportable segments: Well Intervention, Robotics, and Production Facilities, serving deepwater regions globally, and a key recent development being the July 1, 2022 acquisition of Alliance, expanding services into the shallow waters of the Gulf of Mexico - The company's business model focuses on three core areas: maximizing production from existing oil and gas reserves, decommissioning end-of-life assets, and supporting offshore renewable energy projects[20](index=20&type=chunk) - Operations are managed through three segments: Well Intervention (vessels like Q4000, Q5000), Robotics (ROVs, trenchers), and Production Facilities (Helix Producer I)[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - On July 1, 2022, the company acquired Alliance to expand its service capabilities into the shallow water Gulf of Mexico market[20](index=20&type=chunk) [Note 5 — Long-Term Debt](index=14&type=section&id=Note%205%20%E2%80%94%20Long-Term%20Debt) As of June 30, 2022, total long-term debt stood at **$259.0 million**, with the company maintaining an **$80 million** ABL Facility, which was increased to **$100 million** in July 2022, and during the period, the company fully redeemed the remaining **$35 million** of its 2022 Convertible Senior Notes upon maturity, with the debt structure also including 2023 Notes (**$30 million**), 2026 Notes (**$200 million**), and MARAD Debt (**$44.9 million**), and the company was in compliance with all debt covenants Scheduled Maturities of Long-Term Debt (as of June 30, 2022) | Debt Instrument (in thousands) | Less than one year | One to two years | Three to four years | Total Gross Debt | | :--- | :--- | :--- | :--- | :--- | | 2023 Notes | $0 | $30,000 | $0 | $30,000 | | 2026 Notes | $0 | $0 | $200,000 | $200,000 | | MARAD Debt | $8,133 | $8,538 | $9,412 | $44,930 | | **Total** | **$8,133** | **$38,538** | **$209,412** | **$274,930** | - The company fully redeemed the **$35 million** remaining principal of its 2022 Convertible Senior Notes upon maturity on May 1, 2022[36](index=36&type=chunk) - As of June 30, 2022, the company had no borrowings under its ABL Facility, with an available capacity of **$60.3 million**, and the facility was subsequently upsized from **$80 million** to **$100 million** on July 1, 2022[31](index=31&type=chunk)[35](index=35&type=chunk) - The company was in compliance with all debt covenants as of June 30, 2022[52](index=52&type=chunk) [Note 7 — Revenue from Contracts with Customers](index=19&type=section&id=Note%207%20%E2%80%94%20Revenue%20from%20Contracts%20with%20Customers) The company's revenue is primarily derived from short-term and long-term service contracts, with total revenue for the six months ended June 30, 2022, at **$312.7 million**, and short-term contracts contributing **$223.7 million**, and as of June 30, 2022, the company had **$551.5 million** in unsatisfied performance obligations (backlog), with **$232.4 million** expected to be recognized in the remainder of 2022 Disaggregated Revenue by Segment (Six Months Ended June 30, 2022, in thousands) | Segment | Short-term Revenue | Long-term Revenue | Total Revenue | | :--- | :--- | :--- | :--- | | Well Intervention | $177,394 | $35,264 | $212,658 | | Robotics | $46,989 | $40,212 | $87,201 | | Production Facilities | $0 | $35,972 | $35,972 | - As of June 30, 2022, the company reported **$551.5 million** in backlog (unsatisfied performance obligations)[61](index=61&type=chunk) - Of the total backlog, **$232.4 million** is expected to be recognized as revenue in 2022, **$233.5 million** in 2023, and **$85.6 million** in 2024[61](index=61&type=chunk) [Note 10 — Business Segment Information](index=24&type=section&id=Note%2010%20%E2%80%94%20Business%20Segment%20Information) For Q2 2022, the Robotics segment showed strong growth in revenue and operating income, while the Well Intervention segment experienced a significant decline, posting a **$22.5 million** operating loss compared to a **$6.7 million** loss in Q2 2021, and for the first six months of 2022, the Well Intervention segment's operating loss widened to **$54.3 million** from a **$1.5 million** loss a year prior, whereas the Robotics segment's operating income grew to **$11.1 million** from a **$2.7 million** loss Segment Performance (in thousands) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Net Revenues** | | | | | | Well Intervention | $106,291 | $132,305 | $212,658 | $266,073 | | Robotics | $49,850 | $31,651 | $87,201 | $53,807 | | Production Facilities | $17,678 | $14,218 | $35,972 | $30,665 | | **Income (Loss) from Operations** | | | | | | Well Intervention | $(22,548) | $(6,719) | $(54,306) | $(1,476) | | Robotics | $9,666 | $255 | $11,146 | $(2,679) | | Production Facilities | $6,045 | $4,682 | $11,896 | $11,196 | [Note 16 — Subsequent Events](index=30&type=section&id=Note%2016%20%E2%80%94%20Subsequent%20Events) On July 1, 2022, the company completed its acquisition of Alliance, a provider of services for the upstream and midstream industries in the Gulf of Mexico shelf, with the transaction involving approximately **$120 million** in cash at closing, with potential post-closing earn-out consideration, and this acquisition is a strategic move to expand into the shallow-water decommissioning market - Completed the acquisition of Alliance on July 1, 2022, for approximately **$120 million** in cash at closing[89](index=89&type=chunk) - The acquisition includes a potential post-closing earn-out payable in 2024 based on Alliance's financial performance in 2022 and 2023[89](index=89&type=chunk) - This strategic acquisition expands the company's energy transition strategy by adding shallow-water decommissioning capabilities[89](index=89&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management noted that while high oil and gas prices should lead to higher customer spending, headwinds such as regional conflicts, inflation, and ESG initiatives may temper this growth, with the company's consolidated backlog at **$552 million** as of June 30, 2022, and Q2 2022 revenues flat year-over-year, as a **57%** increase in Robotics revenue was offset by a **20%** decrease in Well Intervention revenue, and the company's liquidity remains strong at **$320.9 million**, which is expected to be sufficient to fund operations, service debt, and cover costs from the recent Alliance acquisition [Executive Summary](index=33&type=section&id=Executive%20Summary) The company's business is influenced by oil and gas market conditions, with recent high prices expected to boost customer spending, however, management acknowledges risks from geopolitical issues, inflation, and the shift to renewable energy, and the company believes its focus on production enhancement, decommissioning, and renewables positions it well for the long term, with consolidated backlog standing at **$552 million** as of June 30, 2022 - Demand is influenced by oil/gas and renewable energy markets, and while high commodity prices are favorable, headwinds like regional conflicts, inflation, and ESG initiatives create uncertainty[100](index=100&type=chunk)[101](index=101&type=chunk) - The company is subject to rising costs due to inflation but believes it can manage these pressures through price adjustments and cost reduction efforts[108](index=108&type=chunk) - Consolidated backlog totaled **$552 million** as of June 30, 2022, with **$232 million** expected to be performed in the remainder of 2022[109](index=109&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) For Q2 2022, consolidated net revenues were flat at **$162.6 million** compared to Q2 2021, with a **57%** increase in Robotics revenue, driven by higher vessel and ROV activity, offset by a **20%** decline in Well Intervention revenue due to lower utilization of the Q7000 and lower rates in Brazil, which led to a consolidated gross loss of **$1.4 million** for the quarter, and for the six-month period, revenues decreased **4%** to **$312.7 million**, and the gross loss was **$20.0 million**, a sharp decline from a **$17.8 million** gross profit in the prior year period Segment Revenue and Gross Profit Comparison (Three Months Ended June 30) | Segment (in thousands) | Revenue 2022 | Revenue 2021 | % Change | Gross Profit (Loss) 2022 | Gross Profit (Loss) 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Well Intervention | $106,291 | $132,305 | (20)% | $(19,336) | $(2,542) | | Robotics | $49,850 | $31,651 | 57% | $11,597 | $2,286 | | Production Facilities | $17,678 | $14,218 | 24% | $6,687 | $5,103 | - The decrease in Well Intervention Q2 revenue was primarily due to lower utilization of the Q7000 in West Africa and lower rates and utilization for vessels in Brazil[119](index=119&type=chunk) - The increase in Robotics Q2 revenue was driven by higher vessel and ROV activity, with chartered vessel days increasing to **370** from **236** in Q2 2021[120](index=120&type=chunk) - For the six months ended June 30, 2022, consolidated gross loss was **$20.0 million** compared to a gross profit of **$17.8 million** in the prior year, a negative swing of **$37.7 million**[129](index=129&type=chunk)[134](index=134&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity stood at **$320.9 million** as of June 30, 2022, comprising **$260.6 million** in cash and **$60.3 million** in available borrowing capacity, and management believes this is sufficient to fund operations, service debt, and cover cash requirements for at least the next 12 months, including the recent **$120 million** cash payment for the Alliance acquisition, with cash flow from operations being negative **$23.3 million** for the first half of 2022, a significant decrease from a positive **$92.5 million** in the same period of 2021, reflecting lower earnings and higher costs Financial Condition (in thousands) | Metric | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Net working capital | $252,678 | $251,255 | | Long-term debt | $258,977 | $262,137 | | Liquidity | $320,857 | $304,660 | - Cash flow from operations decreased significantly to **$(23.3) million** for H1 2022 from **$92.5 million** in H1 2021, primarily due to lower earnings and negative changes in working capital[148](index=148&type=chunk)[149](index=149&type=chunk) - Material cash requirements include debt service, operating leases, and approximately **$31.0 million** for decommissioning obligations expected to be paid within the next 12 months[154](index=154&type=chunk)[155](index=155&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure as of June 30, 2022, is foreign currency exchange rate risk, as it operates globally and conducts business in currencies other than the U.S. dollar, and for the first six months of 2022, the company recorded foreign currency transaction losses of **$17.4 million**, primarily related to its UK subsidiaries due to the weakening of the British pound, and the company had no exposure to interest rate risk as it had no outstanding debt with floating rates - The primary market risk is foreign currency exchange rates due to global operations[160](index=160&type=chunk)[161](index=161&type=chunk) - For the six months ended June 30, 2022, the company recorded foreign currency transaction losses of **$17.4 million**, primarily due to the weakening of the British pound against the U.S. dollar[163](index=163&type=chunk) - The company had no exposure to interest rate risk as of June 30, 2022, because it had no outstanding debt subject to floating rates[160](index=160&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of June 30, 2022, and concluded that these controls were effective, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2022, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[164](index=164&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[165](index=165&type=chunk) [PART II. OTHER INFORMATION](index=46&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several lawsuits filed by current and former offshore employees seeking overtime compensation, and in one case, an adverse ruling was issued by the Fifth Circuit Court of Appeals, and the U.S. Supreme Court granted the company's petition for a writ of certiorari in May 2022, and the company continues to defend these lawsuits but has established a liability for certain matters - The company is involved in several collective action lawsuits from offshore employees seeking overtime compensation[82](index=82&type=chunk) - In May 2022, the U.S. Supreme Court agreed to hear the company's appeal of an adverse ruling from the Fifth Circuit Court of Appeals in one of these cases[82](index=82&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) The company highlights new and updated risk factors following the Alliance acquisition, including the risk of failing to comply with the Jones Act's U.S. citizen ownership provisions, which is now more relevant due to the acquisition of **21** U.S. flagged vessels, and additionally, the company notes risks associated with executing strategic transactions, such as the potential for integration challenges, increased debt, and failure to achieve intended financial results - A new risk factor relates to compliance with the Jones Act, as the Alliance acquisition added **21** U.S. flagged vessels, and failure to maintain U.S. citizen status could adversely affect operations[169](index=169&type=chunk) - The company outlines risks related to strategic transactions, including difficulties in integrating acquired businesses, realizing expected synergies, and the potential for increased debt or share dilution[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2022, the company did not repurchase any of its own equity securities, and as of June 30, 2022, the maximum number of shares that may yet be purchased under the company's stock repurchase program was approximately **9.3 million** - No shares were repurchased by the company during the three months ended June 30, 2022[178](index=178&type=chunk) - As of June 30, 2022, **9,260,720** shares remained available for repurchase under the company's publicly announced program[178](index=178&type=chunk)

Helix Energy Solutions Group, Inc. (NYSE:HLX) Q2 2022 Earnings Conference Call July 26, 2022 10:00 AM ET Company Participants Brent Arriaga - CAO & Corporate Controller Kenneth Neikirk - General Counsel Owen Kratz - CEO Scott Sparks - COO Erik Staffeldt - CFO Conference Call Participants James Schumm - Cowen Donald Crist - Johnson Rice David Smith - Pickering Energy Partners Samantha Hoh - Evercore ISI Operator Greetings, and welcome to the Second Quarter Helix Energy Solutions, 2022 Earnings Call. [Operato ...

| --- | --- | --- | --- | --- | --- | |---------------------|-------|-------|-------|-------|-------| | | | | | | | | July 26, 2022 | | | | | | | Second Quarter 2022 | | | | | | | Conference Call | | | | | | | | | | | | | FORWARD-LOOKING STATEMENTS 2 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 o ...

| --- | --- | --- | --- | --- | |--------------------|-------|-------|-------|-------| | | | | | | | April 26, 2022 | | | | | | First Quarter 2022 | | | | | | Conference Call | | | | | | | | | | | 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 "for ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 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) Minn ...

Helix Energy Solutions Group, Inc. (NYSE:HLX) Q1 2022 Earnings Conference Call April 26, 2022 10:00 AM ET Company Participants Brent Arriaga - CAO & Corporate Controller Kenneth Neikirk - SVP, General Counsel & Corporate Secretary Owen Kratz - President, CEO & Director Scott Sparks - EVP & COO Erik Staffeldt - EVP & CFO Conference Call Participants Ian MacPherson - Piper Sandler & Co. James Schumm - Cowen and Company Donald Crist - Johnson Rice & Company Kay Hoh - Evercore ISI Operator Greetings, and welcom ...

For the transition period from__________ to__________ For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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 Commission file number 001-32936 HELIX ENERGY SOLUTIONS GROUP, INC. (Exact name of registrant as specified in its charter) Minnesota ...

Financial Data and Key Metrics Changes - Revenues for Q4 2021 were $169 million, with a net loss of $26 million and EBITDA of $9 million, compared to revenues of $675 million and a net loss of $62 million for the full year 2021 [10][11] - The gross profit for Q4 was negative $5 million, resulting in a gross profit margin of negative 3%, while the full year gross profit was $15 million with a gross profit margin of 2% [10][14] - The company achieved a negative net debt balance of $22 million by the end of 2021, with a cash balance of $254 million and $74 million in temporarily restricted cash [11][33] Business Line Data and Key Metrics Changes - The well intervention fleet achieved global utilization of 56% in Q4, with 52% in Brazil and 89% in the Gulf of Mexico, while the robotics chartered vessel fleet achieved 99% utilization globally [15][16] - The Siem Helix 2 in Brazil operated with 100% utilization, completing abandonment and production enhancement work [22] - The robotics segment completed various projects, including trenching and ROV support, with strong performance in renewables-related projects [24][27] Market Data and Key Metrics Changes - The Gulf of Mexico market showed strong recovery signs with increasing rates and utilization expected for the Q4000 and Q5000 vessels [41] - The North Sea market is anticipated to be the slowest to recover, with low utilization in Q4 but expected improvements in Q2 and Q3 [19][38] - In West Africa, the Q7000 vessel had 99% uptime, indicating strong operational performance [20] Company Strategy and Development Direction - The company aims to strengthen its energy transition story by enhancing existing production, expanding abandonment capabilities, and broadening offerings in the renewables market [51][52] - The strategy includes focusing on mature fields and providing cost-effective abandonment solutions, as well as increasing capabilities in the renewables sector [51][52] Management's Comments on Operating Environment and Future Outlook - Management expects Q1 2022 to be the weakest quarter due to seasonal downturns and regulatory maintenance for several vessels, with a robust recovery anticipated in the second half of 2022 [36][47] - The company is cautious about providing quantitative guidance for 2022 due to market variability but anticipates strong visibility for the second half of the year [36][50] Other Important Information - The company achieved a long-standing financial goal of reaching net debt 0 and ending the year in a negative net debt position [11] - The company is seeing increased tender activity and expanding its geography and client base for well enhancements and robotics [30] Q&A Session Summary Question: Is it reasonable to model flat working capital this year? - Management indicated that the expectation would be flat working capital, with some variability due to transit towards the APAC region [56] Question: What should be expected regarding free cash flow this year? - Management refrained from issuing guidance on free cash flow due to variability affecting top line and EBITDA generation [56] Question: What are the economics of an ROV spread versus a typical trencher spread? - Rates for ROV spreads range from $60,000 to $80,000 per day, while trenching spreads are above $100,000, with hard cutting spreads around $120,000 [63][64]