Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K DATED OCTOBER 28, 2009 - HELIX ENERGY SOLUTIONS GROUP INC | form8k.htm |
| EX-99.2 - CONFERENCE CALL SLIDES OCTOBER 29, 2009 - HELIX ENERGY SOLUTIONS GROUP INC | exh992.htm |
EXHIBIT 99.1
 |
PRESSRELEASE
www.HelixESG.com
|
For Immediate
Release 09-024
Contact: Tony
Tripodo
Date: October
28,
2009 Title: Chief
Financial Officer
Helix
Reports Third Quarter 2009 Results
HOUSTON, TX – Helix
Energy Solutions Group, Inc. (NYSE: HLX) reported net income of $3.9 million or
$0.04 per diluted share, for the third quarter of 2009 compared with net income
of $59.3 million, or $0.63 per diluted share, for the same period in 2008, and
net income of $100.2 million, or $0.94 per diluted share, in the second quarter
of 2009. Net income for the nine months ended September 30, 2009 was
$157.6 million, or $1.48 per diluted share, compared with $222.0 million, or
$2.34 per diluted share, for the nine months ended September 30,
2008.
Third quarter 2009
results included the following items on a pre-tax basis:
|
·
|
A $17.9
million gain from the sale of 23.2 million shares of Cal Dive common
stock.
|
|
·
|
A $10.4
million charge associated with a weather derivative contract entered into
in July 2009 to mitigate against possible losses during the 2009 hurricane
season. The derivative contract was purchased in lieu of traditional
windstorm insurance coverage. The third quarter charge of $10.4 million
was $7.1 million higher than if the cost of the weather derivative
contract was charged to expense evenly over a twelve month period similar
to a traditional insurance premium.
|
The net impact of
these two items in the third quarter, after income taxes, was $0.07 per diluted
share.
In addition, third
quarter 2009 results excluded approximately $25 million of realized gains
associated with the cash settlement of natural gas contracts that were
previously recognized as unrealized gains in the first and second quarters of
2009.
Third quarter 2008
results included a pre-tax impairment charge of $6.7 million as a result of
damage caused by Hurricane Ike.
Owen Kratz,
President and Chief Executive Officer of Helix, stated, “the third quarter
results reflect a slowdown in the contracting services market in response to
customers reining in spending in late 2008 and early 2009 due to general
economic conditions and a lower commodity price environment. Specific to Helix,
our third quarter results were impacted as well by the dedication of our Express
vessel to internal use, and lower oil and gas production due to a variety of
third party pipeline and infrastructure issues. However, we are beginning to see
evidence that activity levels for contracting services are likely to rebound in
2010. In addition, a significant third quarter event for Helix was the sale of
nearly all of our remaining interest in Cal Dive in September which further
serves to enhance our liquidity position and move us closer to our strategic
goal of positioning Helix as a deepwater focused company.”
Summary
of Results (1)
(2)
(in
thousands, except per share amounts and percentages, unaudited)
|
Quarter
Ended
|
Nine Months
Ended
|
||||
|
September
30
|
June
30
|
September
30
|
|||
|
2009
|
2008
|
2009
|
2009
|
2008
|
|
|
Revenues
|
$216,025
|
$607,736
|
$494,639
|
$1,281,639
|
$1,579,635
|
|
Gross
Profit:
|
|||||
|
Operating (3)
|
$5,058
|
$207,599
|
$200,312
|
$367,056
|
$535,650
|
|
2%
|
34%
|
40%
|
29%
|
34%
|
|
|
Oil and
Gas
Impairments
(4),
(5)
|
(1,537)
|
(6,874)
|
(63,073)
|
(64,610)
|
(23,902)
|
|
Exploration
Expense
|
(904)
|
(1,645)
|
(1,483)
|
(2,863)
|
(5,007)
|
|
Total
|
$2,617
|
$199,080
|
$135,756
|
$299,583
|
$506,741
|
|
Net Income
Applicable to Common Shareholders
|
$3,895
|
$59,297
|
$100,219
|
$157,564
|
$222,032
|
|
Diluted
Earnings Per Share
|
$0.04
|
$0.63
|
$0.94
|
$1.48
|
$2.34
|
|
Adjusted EBITDAX
(6)
|
$38,306
|
$159,023
|
$147,909
|
$431,520
|
$519,933
|
|
(1)
Results of Helix RDS Limited, our former reservoir consulting business,
included as discontinued operations for all periods presented in our
comparative condensed consolidated statements of
operations.
|
|
(2)
Results of Cal Dive, our former Shelf Contracting business, were
consolidated through June 10, 2009, at which time our ownership interest
dropped below 50%. Our remaining interest was accounted for under the
equity method of accounting through September 23, 2009. Subsequent to
September 23, 2009 our investment in Cal Dive was accounted for as an
available for sale security.
|
|
(3)
Included $10.4 million of expense related to a weather derivative contract
and $5.1 million of hurricane-related costs in the third quarter of 2009.
Second quarter of 2009 included insurance recoveries of $102.6 million
offset by hurricane-related costs of $8.1
million.
|
|
(4)
Second quarter 2009 oil and gas impairments included $51.5 million
of additional asset retirement and impairment costs resulting from
Hurricane Ike. Third quarter 2008 oil and gas impairments included $6.7
million related to our deepwater Tiger field damaged by Hurricane
Ike.
|
|
(5)
Second quarter 2009 oil and gas impairments included $11.5 million in the
reduction of the carrying values of certain oil and gas properties due to
reserve revisions.
|
(6) Non GAAP measure. See
Reconciliation attached hereto.
Segment
Information, Operational and Financial Highlights (1)
(in
thousands, unaudited)
|
Three Months
Ended
|
|||
|
September
30,
|
June
30,
|
||
|
2009
|
2008
|
2009
|
|
|
Revenues:
|
|||
|
Contracting
Services
|
$175,091
|
$276,131
|
$239,476
|
|
Shelf Contracting
(2)
|
-
|
278,709
|
197,656
|
|
Production
Facilities
|
5,888
|
-
|
5,472
|
|
Oil and Gas
(3)
|
63,715
|
134,619
|
89,992
|
|
Intercompany
Eliminations
|
(28,669)
|
(81,723)
|
(37,957)
|
|
Total
|
$216,025
|
$607,736
|
$494,639
|
|
Income (Loss)
from Operations:
|
|||
|
Contracting
Services
|
$10,132
|
$57,235
|
$23,383
|
|
Shelf Contracting
(2)
|
-
|
72,719
|
38,145
|
|
Production
Facilities
|
(1,388)
|
(140)
|
(1,018)
|
|
Oil and Gas (3)
|
(23,599)
|
42,717
|
103,380
|
|
Gain
on Oil and Gas DerivativeCommodity
Contracts
|
4,598
|
2,705
|
4,121
|
|
Oil and Gas
Impairments (4),
(5)
|
(1,537)
|
(6,874)
|
(63,073)
|
|
Exploration
Expense
|
(904)
|
(1,645)
|
(1,483)
|
|
Intercompany
Eliminations
|
(1,971)
|
(13,494)
|
(1,631)
|
|
Total
|
$(14,669)
|
$153,223
|
$101,824
|
|
Equity in
Earnings of Equity Investments
|
$13,385
|
$8,751
|
$6,264
|
|
(1)
|
Results of
Helix RDS Limited, our former reservoir consulting business, were included
as discontinued operations for all periods presented in our comparative
condensed consolidated statements of
operations.
|
|
(2)
|
Results of
Cal Dive, our former Shelf Contracting business, were consolidated through
June 10, 2009, at which time our ownership interest dropped below 50%. Our
remaining interest was accounted for under the equity method of accounting
through September 23, 2009. Subsequent to September 23, 2009 our
investment in Cal Dive was accounted for as an available for sale
security.
|
|
(3)
|
Included
$10.4 million of expense related to a weather derivative contract and $5.1
million of hurricane-related costs in the third quarter of 2009. Included
insurance recoveries of $97.7 million offset by hurricane-related costs of
$7.4 million in the second quarter of 2009. Third quarter 2008
results included $2.3 million of hurricane-related
costs.
|
|
(4)
|
Second
quarter 2009 oil and gas impairments included $51.5 million of additional
asset retirement and impairment costs resulting from Hurricane
Ike. Third quarter 2008 oil and gas impairments included $6.7
million related to our deepwater Tiger field damaged by Hurricane
Ike.
|
|
(5)
|
Second
quarter 2009 included $11.5 million in the reduction of the carrying
values of certain oil and gas properties due to reserve
revisions.
|
Contracting
Services
|
o
|
Subsea
Construction revenues decreased from the second quarter of 2009 as
activity associated with a significant international pipelay construction
contract was substantially completed in the early part of the third
quarter. Further, our Express
pipelay vessel experienced out of service days related to a regulatory
drydock and subsequent transit to the Gulf of
Mexico. Utilization for our construction vessels (both owned
and chartered) decreased in the third quarter of 2009 compared with the
second quarter of 2009 (77% compared with 88%). Robotics asset utilization
in the third quarter of 2009 was comparable to that of the second quarter
of 2009.
|
|
o
|
Our well
operations business experienced decreased revenues in the third quarter of
2009 compared with the second quarter of 2009 due to decreased utilization
(92% compared with 98%). Further, the Q4000
was contracted at significantly lower day rates for much of the third
quarter.
|
|
o
|
Gross profit
margins for Contracting Services decreased in the third quarter of 2009
over the second quarter of 2009 due primarily to lower vessel utilization
and lower day rates for the Q4000.
|
Shelf
Contracting (Cal Dive)
|
o
|
As a result
of our de-consolidation of Cal Dive’s operating results in June 2009, we
accounted for our interest for most of the third quarter as an equity
method investment. Our share of Cal Dive’s earnings for the third quarter
totaled $7.2 million. In September, we sold a total of 23.2 million shares
of Cal Dive common stock in a secondary offering, which reduced our
remaining ownership interest in Cal Dive to approximately 0.5%. We account
for our remaining interest in Cal Dive as an investment available for
sale.
|
Oil
and Gas
|
o
|
Oil and Gas
revenues of $63.7 million for the third quarter of 2009 were lower than
the second quarter of 2009 due primarily to lower oil production and lower
realized oil prices. Production in the third quarter of 2009
totaled 9.8 Bcfe compared with 12.4 Bcfe in the second quarter of
2009. The average prices realized for our gas sales volumes,
including the effect of settled natural gas hedge contracts, totaled $8.02
per thousand cubic feet of gas (Mcf) in the third quarter of 2009 compared
with $7.62 per Mcf in the second quarter of 2009. For our oil sales
volumes, including the effects of settled hedge contracts, we realized
$68.86 per barrel in the third quarter of 2009 compared with $72.29 per
barrel in the second quarter of
2009.
|
|
o
|
The Company’s
oil and gas production rate at September 30, 2009 approximated 103 million
cubic feet of natural gas equivalent per day (MMcfe/d). Production
continues to be constrained due to mechanical issues in certain fields and
continuing repairs to a third party pipeline related to the Noonan gas
field. The third party pipeline operator has informed its customers that
repairs to this key pipeline is expected to be completed by the end of
November 2009.
|
|
o
|
In addition,
to date we have entered into additional oil and gas hedge contracts for
approximately 25 Bcf of natural gas and 2.5 million barrels of oil to
cover a portion of our forecasted production for
2010.
|
Other
Expenses
|
o
|
Selling,
general and administrative expenses were 10.1% of revenue in the third
quarter of 2009, 8.0% in the second quarter of 2009, and 8.0% in the third
quarter of 2008. Although, the percentage increase was driven by lower
third quarter revenues, total selling, general and administrative expenses
decreased $1.7 million compared to the second quarter of 2009 (excluding
Cal Dive’s expenses in the second quarter of
2009).
|
|
o
|
Net interest
expense and other increased to $10.3 million in the third quarter of 2009
from $7.5 million in the second quarter of 2009. The increase was due to
$3.1 million of net hedging losses related to our foreign currency
contracts and realized foreign exchange losses compared with net gains of
$8.2 million in the second quarter. Net interest expense decreased to $7.3
million in the third quarter of 2009 compared with $15.6 million in the
second quarter of 2009 as a result of lower debt
levels.
|
Financial
Condition and Liquidity
|
o
|
Consolidated
net debt at September 30, 2009 decreased to $950 million from $1.10
billion as of June 30, 2009. We had no borrowings under our revolver and
our availability was $370 million (including $50 million of outstanding
letters of credit) at September 30, 2009. Together with cash on
hand of $411 million and our revolver availability, our total liquidity
was approximately $781 million at September 30, 2009. Net debt to book
capitalization as of September 30, 2009 was 39%. (Net debt to
book capitalization is a non-GAAP measure. See reconciliation
attached hereto.)
|
|
o
|
On October 9,
2009, we extended the term of our revolving credit facility from July 1,
2011 to November 30, 2012. In addition, our lenders agreed to amend
certain restrictive covenants related to asset sales, and
furthermore, increased the amount of capacity under the
revolving credit facility to $435 million through June 2011, decreasing to
$407 million from July 2011 through November 2012. The revolving credit
facility’s accordion feature was also increased to allow for a potential
increase in the maximum size of the facility from $450 million to $550
million. The July 1, 2013 maturity date of our senior secured term loan
under the credit agreement remains unchanged. Lastly, borrowings under the
amended revolving credit facility will bear interest based on current
market rates.
|
|
o
|
We incurred
capital expenditures (including capitalized interest) totaling $87 million
in the third quarter of 2009, compared with $57 million in the second
quarter of 2009 and $165 million in the third quarter of
2008. For the nine months ended September 30, 2009, capital
expenditures totaled $209 million and we anticipate total capital spending
in 2009 of approximately $340 million to $360 million. These
amounts exclude all Cal Dive capital expenditures in the periods
noted.
|
* * * *
*
Further details are
provided in the presentation for Helix’s quarterly conference call to review its
thirds quarter results (see the “Investor Relations” page of Helix’s website,
www.HelixESG.com). The
call, scheduled for 9:00 a.m. Central Daylight Time on Thursday, October 29,
2009, will be audio webcast live from the “Investor Relations” page of Helix’s
website. Investors and other interested parties wishing to listen to the call
via telephone may join the call by dialing 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 Helix’s
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. That business unit is a prospect generation, exploration,
development and production company. Employing our own key services
and methodologies, we seek to lower finding and development costs, relative to
industry norms.
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 do not include earnings from our interest in Cal
Dive in any periods presented in our Adjusted EBITDAX
calculation. Net debt is calculated as the sum of financial debt less
cash and equivalents on hand. Net debt to book capitalization is
calculated by dividing net debt by the sum of net debt, convertible preferred
stock and shareholders’ equity. 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.
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, 2008 and
any subsequent Quarterly Report on Form 10-Q. We assume no obligation
and do not intend to update these forward-looking statements.
|
HELIX
ENERGY SOLUTIONS GROUP, INC.
|
||||||||||||||||||
|
Comparative
Condensed Consolidated Statements of Operations
|
||||||||||||||||||
|
|
Three
Months Ended Sept. 30,
|
Nine Months Ended Sept. 30,
|
||||||||||||||||
|
(in
thousands, except per share data)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||||
|
(unaudited)
|
(unaudited)
|
|||||||||||||||||
|
Net
revenues:
|
||||||||||||||||||
|
Contracting
services
|
$ 152,310
|
$ 473,117
|
$ 967,751
|
$ 1,079,804
|
||||||||||||||
|
Oil
and gas
|
63,715
|
134,619
|
313,888
|
499,831
|
||||||||||||||
|
216,025
|
607,736
|
1,281,639
|
1,579,635
|
|||||||||||||||
|
Cost
of sales:
|
||||||||||||||||||
|
Contracting
services
|
127,402
|
318,451
|
765,602
|
777,206
|
||||||||||||||
|
Oil
and gas
|
86,006
|
90,205
|
216,454
|
295,688
|
||||||||||||||
|
213,408
|
408,656
|
982,056
|
1,072,894
|
|||||||||||||||
|
Gross
profit
|
2,617
|
199,080
|
299,583
|
506,741
|
||||||||||||||
|
Gain
on oil and gas derivative commodity contracts
|
4,598
|
2,705
|
83,328
|
2,705
|
||||||||||||||
|
Gain
on sale of assets, net
|
-
|
(23)
|
1,773
|
79,893
|
||||||||||||||
|
Selling
and administrative expenses
|
21,884
|
48,539
|
102,609
|
136,953
|
||||||||||||||
|
Income
(loss) from operations
|
(14,669)
|
153,223
|
282,075
|
452,386
|
||||||||||||||
|
Equity
in earnings of investments
|
13,385
|
8,751
|
27,152
|
25,722
|
||||||||||||||
|
Gain
on subsidiary equity transaction
|
17,901
|
-
|
77,343
|
-
|
||||||||||||||
|
Net
interest expense and other
|
10,306
|
28,298
|
39,969
|
76,914
|
||||||||||||||
|
Income
before income taxes
|
6,311
|
133,676
|
346,601
|
401,194
|
||||||||||||||
|
Provision
of income taxes
|
4,468
|
54,165
|
126,196
|
151,638
|
||||||||||||||
|
Income
from continuing operations
|
1,843
|
79,511
|
220,405
|
249,556
|
||||||||||||||
|
Income
(loss) from discontinued operations, net of tax
|
3,021
|
(93)
|
10,303
|
1,671
|
||||||||||||||
|
Net
income, including noncontrolling interests
|
4,864
|
79,418
|
230,708
|
251,227
|
||||||||||||||
|
Net
income applicable to noncontrolling interests
|
844
|
19,240
|
19,017
|
26,553
|
||||||||||||||
|
Net
income applicable to Helix
|
4,020
|
60,178
|
211,691
|
224,674
|
||||||||||||||
|
Preferred
stock dividends
|
125
|
881
|
688
|
2,642
|
||||||||||||||
|
Preferred
stock beneficial conversion charges
|
-
|
-
|
53,439
|
-
|
||||||||||||||
|
Net
income applicable to Helix common shareholders
|
$ 3,895
|
$ 59,297
|
$ 157,564
|
$ 222,032
|
||||||||||||||
|
Weighted
Avg. Common Shares Outstanding:
|
||||||||||||||||||
|
Basic
|
101,282
|
90,725
|
97,831
|
90,598
|
||||||||||||||
|
Diluted
|
101,334
|
94,583
|
105,868
|
95,096
|
||||||||||||||
|
Basic
earnings per share of common stock:
|
||||||||||||||||||
|
Net
income from continuing operations
|
$0.01
|
$0.65
|
$1.49
|
$2.40
|
||||||||||||||
|
Net
income from discontinued operations
|
$0.03
|
$0.00
|
$0.10
|
$0.02
|
||||||||||||||
|
Net
income per share of common stock
|
$0.04
|
$0.65
|
$1.59
|
$2.42
|
||||||||||||||
|
Diluted
earnings per share of common stock:
|
||||||||||||||||||
|
Net
income from continuing operations
|
$0.01
|
$0.63
|
$1.38
|
$2.32
|
||||||||||||||
|
Net
income from discontinued operations
|
$0.03
|
$0.00
|
$0.10
|
$0.02
|
||||||||||||||
|
Net
income per share of common stock
|
$0.04
|
$0.63
|
$1.48
|
$2.34
|
||||||||||||||
|
Comparative
Condensed Consolidated Balance Sheets
|
||||||||||||||||||
|
ASSETS
|
LIABILITIES
& SHAREHOLDERS' EQUITY
|
|||||||||||||||||
|
(in
thousands)
|
Sept.
30, 2009
|
Dec.
31, 2008
|
(in
thousands)
|
Sept.
30, 2009
|
Dec.
31, 2008
|
|||||||||||||
|
(unaudited)
|
(unaudited)
|
|||||||||||||||||
|
Current
Assets:
|
Current Liabilities:
|
|||||||||||||||||
|
Cash
and equivalents
|
$ 410,506
|
$ 223,613
|
Accounts
payable
|
$ 177,117
|
$ 344,807
|
|||||||||||||
|
Accounts
receivable
|
224,701
|
545,106
|
Accrued
liabilities
|
198,876
|
234,451
|
|||||||||||||
|
Other
current assets
|
130,546
|
191,304
|
Income
taxes payable
|
108,213
|
-
|
|||||||||||||
|
Current
mat of L-T debt (1)
|
13,136
|
93,540
|
||||||||||||||||
|
Total
Current Assets
|
765,753
|
960,023
|
Total Current Liabilities
|
497,342
|
672,798
|
|||||||||||||
|
Net
Property & Equipment:
|
Long-term debt (1) (2)
|
1,347,395
|
1,933,686
|
|||||||||||||||
|
Contracting
Services
|
1,401,534
|
1,876,795
|
Deferred income taxes
|
456,728
|
615,504
|
|||||||||||||
|
Oil
and Gas
|
1,454,798
|
1,541,648
|
Decommissioning liabilities
|
177,924
|
194,665
|
|||||||||||||
|
Equity
investments
|
191,475
|
196,660
|
Other long-term liabilities
|
10,148
|
81,637
|
|||||||||||||
|
Goodwill
|
78,220
|
366,218
|
Convertible preferred stock (1)
|
6,000
|
55,000
|
|||||||||||||
|
Other
assets, net
|
79,310
|
125,722
|
Shareholders' equity (1)
|
1,475,553
|
1,513,776
|
|||||||||||||
|
Total
Assets
|
$ 3,971,090
|
$ 5,067,066
|
Total Liabilities & Equity
|
$ 3,971,090
|
$ 5,067,066
|
|||||||||||||
|
(1)
|
Net
debt to book capitalization - 39% at September 30, 2009. Calculated as
total debt less cash and equivalents ($950,025)
|
|||||||||||||||||
|
divided
by sum of total net debt, convertible preferred stock and shareholders'
equity ($2,431,578).
|
||||||||||||||||||
|
(2)
|
Reflects
impact of retrospective adoption of accounting standard which required
bifurcation of Helix's convertible senior notes
|
|||||||||||||||||
|
between
debt and equity components. Impact on September 30, 2009 and
December 31, 2008 was a reduction in debt totaling
|
||||||||||||||||||
|
$28.9
million and $34.8 million, respectively.
|
||||||||||||||||||
|
Helix
Energy Solutions Group, Inc.
|
|||||||||||
|
Reconciliation
of Non GAAP Measures
|
|||||||||||
|
Three
and Nine Months Ended September 30, 2009
|
|||||||||||
|
Earnings Release:
|
|||||||||||
|
Reconciliation From Net Income to Adjusted
EBITDAX:
|
|||||||||||
|
3Q09
|
3Q08
|
2Q09
|
2009
|
2008
|
|||||||
|
(in
thousands)
|
|||||||||||
|
Net
income applicable to common shareholders
|
$ 3,895
|
$ 59,297
|
$ 100,219
|
$ 157,564
|
$ 222,032
|
||||||
|
Non-cash
impairment
|
533
|
6,874
|
19,261
|
19,794
|
23,902
|
||||||
|
(Gain)
loss on asset sales
|
(17,869)
|
23
|
(69,569)
|
(87,892)
|
(79,893)
|
||||||
|
Preferred
stock dividends
|
125
|
881
|
250
|
54,127
|
2,642
|
||||||
|
Income
tax provision (benefit)
|
1,415
|
39,325
|
50,072
|
116,281
|
134,253
|
||||||
|
Net
interest expense and other
|
10,192
|
25,992
|
5,776
|
36,561
|
69,650
|
||||||
|
Depreciation
and amortization
|
46,315
|
70,275
|
68,221
|
188,513
|
226,748
|
||||||
|
Exploration
expense
|
904
|
1,645
|
1,483
|
2,863
|
5,007
|
||||||
|
Adjusted
EBITDAX (including Cal Dive)
|
$ 45,510
|
$ 204,312
|
$ 175,713
|
$ 487,811
|
$ 604,341
|
||||||
|
Less:
Previously reported contribution from Cal Dive
|
$ (7,204)
|
$ (45,289)
|
$ (27,804)
|
$ (56,291)
|
$ (84,408)
|
||||||
|
Adjusted
EBITDAX
|
$ 38,306
|
$ 159,023
|
$ 147,909
|
$ 431,520
|
$ 519,933
|
||||||
|
We
calculate adjusted EBITDAX as earnings before net interest expense, taxes,
depreciation and amortization, and exploration
|
|||||||||||
|
expense.
Further, we do not include earnings from our interest in Cal Dive in any
periods presented in our adjusted EBITDAX calculation.
|
|||||||||||
|
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.
|
|||||||||||
|
Helix
Energy Solutions Group, Inc.
|
|||||
|
Reconciliation
of Non GAAP Measures
|
|||||
|
Three
Months Ended September 30, 2009
|
|||||
|
Earnings Release:
|
|||||
|
Reconciliation of unusual
items:
|
|||||
|
3Q09
|
|||||
|
(in
thousands)
|
|||||
|
Other
charges:
|
|||||
|
Gain
on sale of Cal Dive
|
$ 17,901
|
||||
|
Weather
derivative contract
|
(7,084)
|
||||
|
Tax
provision associated with above
|
(3,805)
|
||||
|
Other
income, net
|
7,012
|
||||
|
Diluted
shares
|
101,334
|
||||
|
Per
share
|
$ 0.07
|
||||