Exhibit 99.2
Helix Company Update
November 3, 2008
November 3, 2008
Slides 16 and 21:
Reconciliation From Net Income to Adjusted EBITDAX (excluding impact of non-recurring items:
excluding noncash gain on Cal Dive investment in 4Q07, gain on sale of Cal Dive IPO in 4Q06 and
non-recurring items: OTSL impairment, DOJ accrual, and sale of diving assets in 2Q07):
excluding noncash gain on Cal Dive investment in 4Q07, gain on sale of Cal Dive IPO in 4Q06 and
non-recurring items: OTSL impairment, DOJ accrual, and sale of diving assets in 2Q07):
Reconciliation from Net Income to EBITDAX ($ in thousands) | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 E | 2008 A | |||||||||||||||||||||
Net income applicable to common shareholders | $ | 32,771 | $ | 79,916 | $ | 150,114 | $ | 344,036 | $ | 316,762 | $ | 260,000 | $ | 225,824 | ||||||||||||||
Cal Dive gain | — | — | — | (96,531 | ) | (98,602 | ) | — | — | |||||||||||||||||||
Other non-recurring items | — | — | — | 5,300 | 70,189 | — | — | |||||||||||||||||||||
Accretion and dividends on preferred stock | 1,437 | 2,743 | 2,454 | 3,358 | 3,716 | 3,000 | 2,642 | |||||||||||||||||||||
Cumulative effect of accounting change | (530 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Income tax provision | 18,993 | 43,034 | 75,019 | 133,253 | 139,232 | 140,000 | 136,295 | |||||||||||||||||||||
Net interest expense and other | 3,403 | 5,265 | 7,559 | 34,524 | 53,303 | 85,000 | 61,111 | |||||||||||||||||||||
Depreciation and amortization | 70,793 | 108,305 | 110,683 | 193,205 | 312,935 | 299,000 | 250,650 | |||||||||||||||||||||
Non-cash impairment | — | — | 790 | — | — | 13,000 | — | |||||||||||||||||||||
Exploration expense | — | — | 6,465 | 43,115 | 6,747 | — | 5,007 | |||||||||||||||||||||
Adjusted EBITDAX | $ | 126,867 | $ | 239,263 | $ | 353,084 | $ | 660,260 | $ | 804,282 | $ | 800,000 | $ | 681,529 | ||||||||||||||
(1) | We calculate adjusted EBITDAX as earnings before net interest expense, taxes, depreciation and amortization, and exploration expense. Further, we reduce adjusted EBITDAX for the minority interest in Cal Dive that we do not own. Adjusted EBITDAX margin is defined as adjusted EBITDAX divided by net revenues. 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. |
Slides 16 and 20:
Reconciliation to Normalized EPS:
2003 | 2004 | 2005 | 2006 | 2007 | 2008 E | 2008 A | ||||||||||||||||||||||
Net income applicable to common shareholders | $ | 32,771 | $ | 79,916 | $ | 150,114 | $ | 344,036 | $ | 316,762 | $ | 260,000 | $ | 225,824 | ||||||||||||||
Preferred stock dividends and accretion | 1,437 | 2,743 | 2,454 | 3,358 | 3,716 | 3,000 | 2,642 | |||||||||||||||||||||
Cal Dive gain (IPO and Horizon acquisition) | — | — | — | (96,531 | ) | (98,602 | ) | — | — | |||||||||||||||||||
Other non-recurring items | — | — | — | 5,300 | 70,189 | — | — | |||||||||||||||||||||
Net income, excluding non-cash gains on Cal Dive equity transactions | $ | 34,208 | $ | 82,659 | $ | 152,568 | $ | 256,163 | $ | 292,065 | $ | 263,000 | $ | 228,466 | ||||||||||||||
(IPO and Horizon acquisition) and other unusual items | ||||||||||||||||||||||||||||
Diluted Shares | 75,688 | 79,062 | 82,205 | 89,874 | 95,938 | 95,200 | 95,266 | |||||||||||||||||||||
Normalized EPS | $ | 0.44 | $ | 1.03 | $ | 1.86 | $ | 2.85 | $ | 3.05 | $ | 2.76 | $ | 2.40 |