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HLX Shareholder/Stockholder Letter Transcript:

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2024
helixesg.com
helixesg.com

2024 Annual Report | Helix Energy Solutions

Helix Energy Solutions | 2024 Annual Report
Message to Our Shareholders
2024 was a foundational year for Helix. While the outlook had
been optimistic for an extended investment cycle in the offshore
energy market, the current environment offers a more tempered
approach. However we at Helix have worked hard to establish
the solid baseline from which to grow our business     one that is
supported by both strong operational backlog and an excellent
  9,9.4,7   ;:>4?4:9         ,9/   ,   1@?@=0   1@77   :1   :;;:=?@94?D   
We continued to execute on our strategy in 2024, as we delivered
on our goals of increasing utilization and rates in our Well
Intervention and Robotics segments. Importantly, we executed
a number of contracts that evidence the strength of the market
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provide strong utilization for our assets for years to come. Those
contracts included:

New three-year contracts with Petrobras on the Siem Helix 1
and the Siem Helix 2, both at improved rates;

A two-year contract with Shell in the U.S. Gulf Coast on the
Q5000 for a minimum of 175 days per year;

An extension with Shell in Brazil on the Q7000 to a minimum
of 400 days;


A six-month contract with options on the Q4000 in Nigeria;

An extension of the agreement for the Helix Producer I for
one year until at least mid-2026.
An extension with Trident on the Siem Helix 1 through 2025 at
improved rates; and
These contracts demonstrate the prominent position Helix holds
in the Well Intervention market. We also see demand continuing
to grow in Robotics, as we tender for trenching work as far out
as 2029 and continue to prove our credibility in site clearance
work. In 2024 we extended the charters on the Siem Helix 1, the
Siem Helix 2, the Grand Canyon II and the Shelia Bordelon in order
to capture opportunities in these various markets. All of this
activity helps to lay the groundwork for the future we are
building.
We remain optimistic about U.S. Gulf Coast shallow water
abandonment as we   re the only contractor offering a truly
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marked by the fantastic performance of the Alliance business, the
current environment requires us to right-size our Alliance cost
structure to align with the current expected levels of activity, as
we maintain operational leverage for further future growth in that
segment.
In 2024 we completed the restructuring of our balance sheet with
the retirement of our remaining convertible notes, and extended
the maturity of our credit facility. We continue to execute on our
capital allocation framework, and we   ve now repurchased over
$40 million of our shares with repurchases expected to increase in
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allocation philosophy includes keeping low levels of net debt,
maintaining our existing assets, investing in targeted acquisitions
that complement and further our strategy, and returning cash to
shareholders.
We have positioned ourselves to take
advantage of whatever the market
brings, all in service of you, our
shareholders.
Importantly, our successes in 2024 demonstrate the strength of
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year over year. Even with the pull back in shallow water
abandonment, as a company we once again delivered improved
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?34=/   .:9>0.@?4A0   D0,=   :1   =0A09@0   ,9/      #     2=:B?3         The $303
million of EBITDA in 2024 represented our highest since
2014, and our $163 million of Free Cash Flow was our highest
in two decades.
The current business climate is not without its challenges. Global
unrest persists, and here in the U.S. tariffs and trade volatility
are currently dominating the headlines. We all hear the talk
of a potential recession amid future uncertainty. For our own
business, as always we must execute on our contracts, with
safety being our paramount priority. And our segments that
are most impacted by seasonality and shorter-term contracting
models will continue to require dedicated attention. At Helix we
believe we are positioned to weather those challenges, mitigate
their impact, and even generate upside opportunity.
This is precisely why our foundational efforts in 2024 are so
meaningful. $W \HDU HQG ZH KDG VLJQL   FDQW EDFNORJ  ZLWK 
signed contracts totaling $1.4 billion of work. We have
considerable cash on hand, and currently anticipate meaningful
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may be as clean as it has ever been. We have the opportunity
for all types of growth activity, whether incremental additions to
our existing businesses, acquisitions to scale into new services or
geographies, or even something more transformative.
As I noted, 2024 was a year marked by the foundations of both
securing strong operational backlog and providing a solid balance
sheet, while delivering continued improved results. There is
no doubt that uncertainties and volatility persist. But we have
positioned ourselves to take advantage of whatever the market
brings, all in service of you, our shareholders.
As always, I thank you for your support.
 B09    =,?E
 =0>4/09?   ,9/    3401    C0.@?4A0      .0=

2024 Annual Report | Helix Energy Solutions
Helix at a Glance
Helix is an international offshore energy services company that provides specialty
services to the offshore energy industry, with a focus on well intervention, robotics and
decommissioning operations.
Overview
We provide a range of services to the oil and gas and renewable
energy markets primarily in the U.S. Gulf Coast (deepwater and
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 1=4.,   =024:9>       @=   >0=A4.0>   ,=0   >02=02,?0/   49?:   1:@=   =0;:=?,-70   
business segments: Well Intervention, Robotics, Shallow Water
Abandonment and Production Facilities.
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term charters as well as spot vessels as needed. We offer our
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on an integrated basis with chartered robotics support vessels.
Shallow Water Abandonment
Well Intervention
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customers to safely access subsea offshore wells for the purpose
of performing production enhancement or decommissioning
operations, thereby mitigating the need to drill new wells by
extending the useful lives of existing wells and preserving the
environment by preventing uncontrolled releases of oil and
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the Q5000, the Q7000, the Seawell, the Well Enhancer, and two
chartered vessels, the Siem Helix 1 and the Siem Helix 2       @=   B077   
intervention equipment includes intervention systems such as
intervention riser systems, subsea intervention lubricators and the
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provide on a stand-alone basis.
Robotics
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offshore construction and inspection, repair and maintenance
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markets globally, thereby assisting the delivery of renewable
energy and supporting the responsible transition away from a
carbon-based economy. Additionally, our Robotics services are
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in support of the upstream and midstream industries
predominantly in the U.S. Gulf Coast shelf, including offshore
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and abandonments (or removals), platform decommissioning and
structure removals, subsea site clearance, project management,
engineered solutions, intervention, maintenance, repair, heavy lift
and commercial diving services. This segment also offers services
to support the full life cycle of offshore upstream and midstream
industries, including oil and gas production through well
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offshore supply vessels, dive support vessels, a heavy lift derrick
barge, a crew boat, P&A systems and CT systems.
Production Facilities
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(the    HP I            ?30    074C    ,>?   !0>;:9>0   "D>?08      ?30        !"         ,9/   
our ownership of mature oil and gas properties. All of our current
Production Facilities activities are located in the U.S. Gulf Coast.

Helix Energy Solutions | 2024 Annual Report
Services we currently offer to the offshore oil and gas
market worldwide include:
Production. Well intervention; intervention engineering;
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structures, trees, jumpers, risers, pipelines and subsea equipment;
and related support services.
Decommissioning. Reclamation and remediation services; well
P&A services; pipeline, cable and umbilical abandonment services;
and site inspections.
Development.  9>?,77,?4:9   :1     :B7490>      .:9?=:7   @8-474.,7>      
manifold assemblies and risers; trenching and burial of
pipelines; installation and tie-in of riser and manifold assembly;
commissioning, testing and inspection; and cable and umbilical
lay and connection.
Production Facilities. Provision of the HP I as an oil and natural
gas processing facility. Currently, the HP I is being utilized to
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Fast Response System. Provision of the HFRS as a response
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applications to U.S. federal and state agencies and respond to a
well control incident.
Services we currently offer to the offshore renewable
energy market worldwide include:
Trenching. Cable burial via jetting and/or cutting by
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trencher.
Site Clearance. Site preparation for construction of offshore
wind farms, including boulder relocation and underwater
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Subsea Support. General subsea support of engineering,
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services standalone or with support vessels.
Industry In   uences
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of the oil and gas and the renewable energy markets and, in
particular, the level of spending of offshore energy companies
on operational activities and capital projects. The performance
of our business is largely affected by the prevailing market prices
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by commodity prices as well as governmental regulations and
political forces globally.
In the current market environment, we continue to see oil and
gas companies invest in long-cycle offshore exploration projects
in addition to maintain and/or increase production from their
existing reserves. As production enhancement through well
intervention is less expensive per incremental barrel of oil than
exploration, we expect oil and gas companies to continue to focus
on optimizing production of their existing subsea wells in addition
to their exploration activities.
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we decommission wells and infrastructure in our Well Intervention
and Shallow Water Abandonment segments. The demand for P&A
services should grow over the mid- to long-term as the subsea
tree base expands, as government regulations continue to place
stronger emphasis on decommissioning aged wells worldwide
(including subsea trees as well as mature dry tree wells in the
shallow waters of the U.S. Gulf Coast), as customers look to
reduce their decommissioning obligations and as customers shift
resources to renewable energy.
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affected by various factors, including the pace of consumer shift
towards renewable energy sources, global electricity demand,
technological advancements that increase the generation and/
or reduce the cost of renewable energy, expansion of offshore
renewable energy projects to deeper water and other regions,
and government subsidies for renewable energy projects and/
or other governmental regulations supporting or restricting
renewable energy developments. We expect growth in our
renewables services as the global energy market continues
offshore renewable energy developments.



 4/1/2025 Letter Continued (Full PDF)