HLX - Earnings call 3 2023 | Helix Energy Solutions Group, Inc.

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Operator

Greetings, and welcome to the Third Quarter Helix Energy Solutions 2023 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded on Tuesday, October 24, 2023.

I would now like to turn the conference over to Mr. Brent Arriaga, Chief Accounting Officer. ahead. go Please

Brent Arriaga

our COO; to Kratz, our opportunity General Kenneth and conference our everyone, presentation earnings our release. joining today are us on Good for press thanks our myself. Hopefully, Sparks, the CFO; our had Owen released today Helix call call earnings related night. CEO; and slide you've third Neikirk, Staffeldt, on Erik Scott an review Counsel; this release morning, and for for our quarter Participating XXXX last

If a both you Investor of can at copy be our The www.helixesg.com. on not For do have these accessed materials, through page website the

The the can Press press slide under clicking presentation accessed be the can release Releases accessed tab icon. on be and by webcast today's

remarks, a our will Neikirk Ken? information. begin statement forward-looking we make Before prepared regarding Ken

Kenneth Neikirk

of making in statements conference our on today. expectations statements this we During Securities include XXXX. industry call, All may safe projections projections events, facts the Such historical and in presentation, forward-looking financial and as based associated certain estimates trends Act results. Reform the or call of or and this forward-looking future of forward-looking of Private made provisions conference business under business assumptions or current statements harbor statements anticipate and are the Litigation of are or statements

filings in reports a other in forth and XX-K, our of set risks, Form variety Our XX-Q actual and on with filed X future statements including the annual results Form and may most differ recently those materially number on forward-looking due uncertainties, from our and quarterly SEC. projections our to report and factors, our assumptions Slide

statement. duty any on reliance do and we should not forward-looking undertake place to any You statements, not forward-looking update undue

made You conference disclaim subject any of matter or regarding this the call. statements by any party oral third written

financial comparable reconciliations, Also certain SEC earnings financial available presentation measures reconciliations to report measures. replay the made. press call, presentation, with website of Investor the provides certain broadcast disclosures and non-GAAP our the www.helixesg.com. are of this For rules, accordance under this slide our These non-GAAP a The release, GAAP be this at of In along may final with our during -- annual of section

on Please October as And that this any only any replay of call. you information information longer as Owen? call today, are that therefore, XX, be of conference speaks time-sensitive XXXX. may this no of remember accurate advised

Owen Kratz

insight balance This and morning. provide our review our highlights performance. Good the drivers QX results we'll of into XXXX. and operations the for morning, outlook financial key to our We'll and

into focus offshore continued insight the within opportunities market, beyond and of provide development energy opportunities XXXX. our our we'll transition Lastly, on energy the model

the and the of X a underlying sustainable a long-term XXXX. quarter macro Slides investment high-level highlights cycle. drivers to service for constructive our supportive market continue third of energy key presentation, to be X summary The Moving provide through of results and the offshore of

traditional levels in Offshore services, and for creating of internationally with U.S. renewables with demand services. both assets, for to very and oil active gas be high continue competing the

renewable offshore utilization for services the current the enhancing operations Pacific our and has addition our our markets into environment diversified in geographic other our high broadened maintaining continued and addition, reach of our to rate U.S. services. In expansion Asia and

The fundamentals for favorable decommissioning commodity remained and prices. positive regulatory push with high

quarter third QX. top delivered solid backdrop on positive the of seasonal performance results the improved market in upon strong With activity, our

the North operations QXXXX well returning dock and business remainder and for the utilization reflects Brazil, geographically intervention illustrative in XXXX of diversified Sea -- the third decommissioning of best results quarter model. our focus our the are quarter of the third quarter include Our for QXXXX to Highlights the in earnings our operations the quarter. quarter strong on dry power New completed Zealand, in July, since worked reflects and

achieved high and Helix continued cash We activities. shallow segment. results of Alliance Robotics and X for additional in maintained with execution. improved seasonal we with utilization abandonment acquired systems seasonal vessel free and results levels flow, positive and our P&A operating trenching strong water high strong cash generation

$XXX Revenues previous for results. of million from an the increase generated to quarter quarter income net of in were $XX We million, million compared second our million $XX net of $X the income quarter.

to in QX $XX the EBITDA million increased Adjusted than to million second $XX for quarter. compared more

million $X of $XX $X third million spent the on costs. operating generated X including and an the we on for P&A cash During $XX initial in spent dock spreads. additional dry million, quarter, flow We million cash including recertification CapEx,

Our during free million. cash flow $XX resulting the was quarter

results impacted end the QXXXX, the regulatory at which were and certification the of completed by were Our maintenance July. of

threefold to Our million million increase income by year-to-date from generated $XX net XXXX. increased Year-to-date $XXX in an from this We million, almost adjusted were this in $XXX of $XX increasing at $XXX $XXX XXXX. of of million to time compared XXXX, EBITDA revenues loss million million. time net a

for were potential. of XXXX. the tampered improvements either and cash year-to-date, high the further number free results generation improvements have that negative achieved provide to regulatory XXXX. results cash For $X flow represent $XX provide our million in XXXX but and despite These an a was improvement significant year-over-year significant in into glimpse maintenance compared million a our The days opportunity our in earnings

all efficient employees our to been committed in thank established industry. and efforts and hallmark, their our offshore the to leader has for for quarter like operations of always remaining an this safe we're I'd Executing customers in XXXX. our and

strategic priority. to Slide sheet X. continues On our a balance Managing be to top

reduced final the debt maintained of to liquidity at We XXXX During and strong the quarter, million our outstanding. of quarter end. $XX million $XXX retired net convertible notes $XX million senior we

Scotty I'll now for over an operations. call to discussion of the turn in-depth our

Scott Sparks

morning. Thanks, Owen, good and

Brazil, very to at the To quarter Moving standards of and high outperformed In our well-executed Zealand, on XXXX. to Slide we another operate Asia, the XX. uptime quarter in strong quarter, The to team's the New with Europe, quarter. with been Gulf Mexico efficiency globally onshore U.S. best-performing continue Coast. the minimal again, off operational of operate since disruption third producing continue XXXX, offshore for and with East operations

we quarter, the this During up $XX improved and $XX of of profit of XX%, gross a million and million gross quarter profit margin the in from of generated profit XXXX a year-over-year. significantly third second gross

For X very the $XX gross X the gross of months to a first a a million, of generated improved profit of of XXXX, $XXX XX%, we compared for XXXX. profit margin million first months and of gross profit much

Helix sectors in recent in more a all been has strong looking positive positive, year very than visibility XXXX certainly and for is and beyond across XXXX times.

base assets strong a our from operations. some and client areas in activity there's have of spot is We increasing internationally, grown and interest our tender away usual of our

to We continue contract with better more favorable terms. rates at

detailed performed production more well Gulf Mexico. a abandonment on very for our in The Slide conducting review of working third of work XX campaign quarter. intervention Shell. had well, wells excellent QXXXX The the the multiyear in provides business enhancements XX% vessel under utilization a X of ultra-deepwater and in

three-well part for the then in campaign of the for four-well undertook enhancement for a The latter a coring of completing project XX% one QXXXX dry July. ultra-deepwater. had commenced regulatory third the the vessel quarter, a dock in The production utilization the one quarter, scheduled vessel In and campaign in commenced hydrate client customer customer. another

Positively, remainder the high of XXXX. we expect both for vessels will utilization have

with compared and XXXX have good visibility We to SLB in for rates continue increased further subsea XXXX. vessels the Both vessels for both awarded operate potential integrated activity service alliance to under package. Helix work key

Moving XX. to Slide

before the in production an the The Having wells demand even performed stronger quarter enhancement in to Our well well Central another for works than North in on U.K. well customers then the X the on decommissioned quarter the Enhancer respond very Sea working region. the Sea combined operations quarter, Well to West Well utilization of Intervention commenced later Shetland increased business for the The region in second continues XX% customer. to X third the and vessel relocating on completed quarter. North X achieving

of improved customers The very Demand conditions working the services campaign planned of Seawell for much X on wells. is rates, quarter, to remainder for and is XXXX, decommissioning and Enhancer work seeing in contracted is fully contracted and increased the utilization. in the well terms numerous XXXX in we in terms Well has winter our into a the improve The awarded summer rates. works XXXX The our contracted further and project for had continues Mediterranean. contract and performing Seawell shortly business of also for leave good with

paid transit well in The Zealand, is Shell intervention New abandonment Zealand Australia The quarter. Brazil. commencing then transit for QXXXX the is in to in work scheduled vessel contracts a was several the in X work to plus including decommissioning XX% completions paid utilized contracted scopes quarter. conducting to Brazil, out the On in of carry throughout options to fourth undertake QXXXX for undertake New XX the months to the clients

The is work well commence into is estimated contracted QXXXX The to mid-XXXX. XXXX.

good visibility work have in XXXX. following We on on globally

to wells XX% was Moving quarter. of project for utilized QX, decommissioning we In work the on performing Energy, utilization, X Helix with work utilization the and the Siem X in combined XX. third in had wells XX% completing Trident quarter XX% X quarter. Siem The Slide in a on X-year undertaking decommissioning good had activity had X strong Brazil, on Petrobras. Helix The

SH globally, into activity SH the Brazil. including there post-XXXX XXXX, are is and demand in tender end and contracted Both of vessels the increased for vessels

QXXXX the Brazil and In commencing XXXX, to look bringing Shell then contracts. to decommissioning we forward the

provides XX well details Slide of fleet utilization. intervention

quarter performing they Robotics and results strong Moving good second in continued best their review. and improving quarter and XXXX. XX strong terms had to on performance Slide being of since again the over revenue Robotics their EBITDA the quarter, for another

support globally performed and work on trenching, oil site The renewables-related strong the vessels working between ROV survey projects. utilization and quarter, with at high and during business on gas primarily standards X

a the project APAC Thailand. for trenching trenching QX. TXXXX-X the of XXX% region, Grand work undertaking continued Topaz quarter. decommissioning trenching utilization on the Taiwan, in continues renewables The had in II on Siem XX utilization the system well onboard The long-term to a projects days Canyon In perform vessel in

November trenching has customer been Siem on the spread Topaz XXXX. The by now the TXXXX-X contracted until of

Grand Sea, XXX% Horizon In utilization trenching customer. quarter, an for III North and X gas was trenching project trenching renewable another had X in XXX% the completing customer The the for for Enabler in oil renewables utilized QX, performing works X projects the customers. Canyon and

of end trenching vessel of extended XXXX the expected our established until due have coming years. We the amount of in the activity now the by clients to some charter

Wave ordinance operations. the Also undertaking in the completed North operations in the of survey XX Glomar quarter removal site and days Sea,

in and QX. In performing the Gulf and We're project. performed XX% Jones have in utilized Compliant in U.S.A., well the globally. XXXX. Helix Shelia node vessel The a seismic works Mexico Act expecting good Bordelon, Vessel, to visibility in performance backlog is installation XXXX a strong support of a the was Robotics and

renewable expansion and the service by of the TXXXX-X and XXXX. the geographical Siem Our recent expansion late in contract continues sector until highlighted Topaz

our XX vessels trenching utilization. are Slide details Robotics in

an decommissioning liftboats operating strong performing QX overview excellent of performing producing X an water decommissioning Offshore Helix a Slide had quarter-to-date utilization Alliance. all across had XX X Helix business Alliance a shallow of provides XX% division The with third combined divisions. record our quarter, in with services. utilization

X boat also and Offshore had XX%. combined X with crew supplied increased OSVs utilization of

had or for operations division XXX the or XX% operations XX% Services services. systems. X,XXX Tubing quarter days The quarter, conducting the increased Energy during the utilization X systems days in division P&A of for had Coiled decommissioning utilization deployed the The of

for of in the market X to Due units. acquisition water, increasing well spreads total Energy to the Services the in shallow our division, spreads hiring our [indiscernible] the P&A XX decommissioning we September, further P&A success completed

had In The the undertaking vessels. decommissioning platform diving and of lift of other divisions utilization activities. across Lift removal barge, heavy Heavy had XXX% XX% utilization combined QX, Diving the Hedron, X and the increased

decommissioning XX the of quarter, and dispose is first the In remove pipelines platform remove sizable acquisition. most commenced contract The to XX our and decommission and Helix Alliance of Helix X wells, Alliance contract since structures. dispose

that one shallow services The in package. contracting field offers Helix alliance water work offering Helix we utilize all is Alliance company full that decommissioning preeminent highlighting the

a Helix had good quarter. Alliance

a see we However, period. seasonal, undertake likely the all winter we is the across shallow water in enter and divisions activity drop-off we as work in will

provides Alliance Helix detail XX recent Slide for Vessel and the Systems utilization.

partners, long over to helped like our would strong best producing hand Brent, an achieve in our I a Before and to I again all very employees results, excellent Helix time. thank to who global quarter

you all. safe work. good the and up thank keep So Stay

all finish of to are forward very in looking strongly XXXX. expect for solid another to what be should businesses We year XXXX and our

I'll Brent. now turn the call over to

Brent Arriaga

Thanks, Scotty.

It end. XX. outlines XX. of of Slide to maturity We instruments profile quarter at debt our Moving total had $XXX million funded September and debt as

cash in remaining MARAD well installments as million the converts of XXXX debt. repaid our we QX, During of $XX as entirely the our semiannual

scheduled the remainder debt balance our We our But long-term the have strategic continues a sheet mentioned, priority. of maturing be during managing top year. to as no more maturities of

key including our Moving of debt end With on, was $XX on XX liquidity update million. levels. quarter Slide debt debt, metrics sheet provides net balance net an cash, $XXX and position cash long-term million, at

At availability gross $XXX ABL quarter $XXX with of resulting into million capacity end, was remaining we under million. had After million no liquidity full borrowings facility $XXX and net LCs ABL of our outstanding. the our

the Given repurchased common our XXX,XXX XXXX the $X.X of the million. during quarter, MARAD of cash stock approximately and installment for converts we Helix shares repayments of debt

for on I call a will for the turn our and discussion outlook over now Erik to XXXX beyond.

Erik Staffeldt

Brent. Thanks,

the and constructive the of in It and results Our and the delivering third continues team performed be to our is into active XXXX. most remainder quarter market of 'XX the for quarter. best well, year strong

have Entering our Sea, the we months, expect year-over-year through regions. to results operations North APAC X Our we expected. and Mexico quarters impacts in Gulf improvements the of delivered winter seasonal the

Given the million $X.X million. these $X.X estimates $XXX some $XX provided. results billion the from cash expected significant million, to outside increase and to CapEx of free are variation to million these and midpoint; impacts, of in flow guidance our to could fall our assumptions range; $XXX $XXX we $XX a million; assumptions cause $XXX ranges Any as EBITDA to billion $XX million the estimates. follows: tightening These of million from key ranges include revenue

APAC seasonal Northern Robotics the Hemisphere. weather results trenching quarter in and with the impacted be activities. be in the will in segment Sea will impacted a by regions fourth decrease North Our

Our solid region, assumptions heavy and results. of key XX. shallow a Slide nevertheless will in be starting Gulf segment water adjusted lift diving the activities. generate impacted seasonally the to abandonment decrease in with We Mexico fourth and expect a by Providing on quarter

of market strong rates. well expected The for on the and Mexico both Intervention from QXXXX expected utilization strong QXXXX the segment. of 'XX a our market to and continue balance First, Gulf is to be benefiting with the

In QX intervention robust. our both levels for the into continues vessels vessels be in this U.K. North to contracted Sea, through well XXXX. market work Activity and have

to the is X-week a fourth for to Western the Seawell During quarter, the X- transit Mediterranean. project scheduled undertake a in

vessel Australia is in contracted work project, The expected is Zealand work completing with QXXXX currently to New transit to on operators. Tui the for the X

mid-December Helix Siem into X Helix the Brazil, In into performing well with contracted XX Petrobras X abandonment Siem and is for the is contracted of work Trident 'XX. QX of

segment, The to the currently Robotics Robotics to where market, the Slide active both assets gas from XX. continues and extremely and for are markets tight competing benefit and services. renewables oil Moving segment market

balance good support Canyon in ROV In the region, APAC Malaysia, contracted decommissioning region. Grand utilization for work is the Thailand in and II the with expected for of and 'XX that

mid-QX recently working In on addition, into acquired XXXX and is one Siem the of contracted the Topaz. trenchers TXXXX

expected flexible with perform projects is trenching the work, with Enabler trenching fourth this Horizon utilization In charter III the December. into to has Grand Canyon Sea, good the the quarter, North contracting in

is U.S., operations Mexico, Wave pursuing opportunities the QX. In the and multiple expected Bordelon Glomar is performing on Gulf scopes. in of vessel working have the the utilization in The to good is Shelia ROV with of Gulf Mexico the short-term

facilities, with For the HPX change. 'XX for expected balance the of is no contract production on

deplete to QX that expected Draftefield for variability is Thunder the with expected production continues be We offline to in Field have repairs. as Hawk pending

we Slide in water time period Continuing expect to market of segment. seasonal shallow shelf We've for be variability XX continues activity. very entered active. on abandonment decommissioning The the the where

and liftboats, crewboats. utilization to the back division seasonally expect We on OSVs scale Marine Offshore

X seasonality and have division XX the to lift remainder fourth to good impact XX the Coiled will during that spreads X diving P&A There and units the Energy The 'XX. of Services in Tubing is utilization on should division quarter. heavy

XX. Slide Moving on to

CapEx initial Our P&A we In heavily impacted spent earlier periods and by the on X docks an of QX, has to X 'XX our systems. forecast year. for cash vessels million dry acquire maintenance the in $X been

Our million. in cash approximately was $XX QX spend

million heavy million. maintenance for falls $XX majority cash which CapEx primarily regulatory forecast now to range related, acquisition, forecast to continues $XX operating of flow. and 'XX a The our and into is project recent With year be our our CapEx our

balance September debt million the final XX, payoff with our in $XX of our on senior stocks and $XXX sheet, MARAD the Reviewing September was the XXXX at notes million funded convertible semiannual debt.

comments. I'll leave of discussion skip as call outlook I'll and Owen closing a for and back slides the [indiscernible]. for time, to further remaining This turn the our

Owen Kratz

Thanks, and Erik. good, even Well, forward. going we are better expect things returns

additional process guidance EBITDA million. We're We million XXXX $XXX budgeting of in $XXX resulting continue our expectations, an XXXX. to our to to to an in range outperform increase for the

So roll to we our upwards it could off legacy share XXXX. to current at have see further in guidance fewer XXXX. XXXX be over This below assets. than rates XXX over opportunities which from XXXX, XXXX XX% scheduled out so We've of growth market will specific of XXXX would what start have approximately With maintenance XXXX we that already this that don't includes time. contracted previously for indicate by pointed growth end even the days far,

to Assuming maintenance able and turn into market EBITDA. this $XX $XX on execute in million approximately could our rates that costs manage to million and programs, we're

by small contract is end offsetting We SHX over on X-year higher escalator major for rates. legacy XXXX with currently to have assets a X a The in of the costs. 'XX, impacted rates XXXX

could which be the that of rate At expect market available time, is extension to a the vessel current XX% expect we able be rates. XX% By flat SHX until higher. rates, approximately a has XXXX, increase the to to we to X-year market XXXX. achieve X-year on rates, a The of to that the contract be at end vessel which could a be XX%

at XXXX for that escalator XXXX. rates market not the partial There's of year-over-year QXXXX we'll has a over 'XX. see a year commitment end The 'XX, but ends until contract

Brazil The APAC starting months. in XX work $XX,XXX The and QXXXX and cost day mid-XXXX increase XXXX is a in $XX,XXX EBITDA for in to in XX work rate into the transitioning market to work XXXX. contribution reaching generate to the should contracted to APAC Brazil before between before differences rates

Rig to what to 'XX increase to current don't expected be rates are 'XX referencing current yet than the When market rates market rates is I rates, know tight. market rates to up refer or say not to XXXX that in we levels. other continue will remain as market supply and back I'm

assets meet market. adding expertise expected Helix don't the provide to capacity we new adding We this an look don't sufficient new Helix to to as and demand cover with have systems or to the At instead, vessels, partner demand. purchase could owners time, to to select vessel anticipate any excess but alternative build

intervention be deployment given strategy end, at relationships added X in We'll assessing systems the additional our and work. maintaining consideration we XXXX. to To and our of presence with X regions this all spread where the end trenches we

in we renewables for In segments could the rates which market challenge. be site those us -- business of the areas market, to expand would to that to growth clearance our market and allow offshore grow X would where trenching our grow forecasted returns adequate the allow within us a other a the wind need work into without

extension at of the seen the than track EBITDA into acquisition than business has on once our Last the Alliance acquisition the expected. demand is our initial has year's acquisition guidance time then triple as decommissioning of and and since business contribution increased has the roughly faster generate more again given success. been to we XXXX double Mexico This good shelf a Gulf of of

in see recent Cox pipelines an Mexico Gulf indicates the XX,XXX in wells bankruptcies study the from shelf work waters. for as be both The structures recent owners solution. a assume thousands bodies regulatory intense will and and over to wells XX% Fieldwood kickstarted desire done to abandoned this A pushing successor have of liability who with as being and of well of

safe assessment of the the work on. Then P&A and the process to old making structure field full turns wells. the A abandonment focus with begins to

Cox of P&A Following and being ocean work work expect and the This active. phase removal. removed this, floor. begins, well in After the XXXX, the flurry the can the platform in at bankruptcy ramp-up work the a time should recent of which are debris in trend pipeline slowdown of platforms work we potential well until be abandoned all be clearance a and phases the pipelines with more may the last

that main asset Helix all is aspects preeminent abandonment to work. classes all owns of perform shelf the contractor full needed the field

on We for the the of company developed and wind expect and for We the strong work continue free cash has gas the the well development oil flow business of offshore the has to for years exists. that positioned forward. come the double-digit based going sheet to generation work end-of-life Helix lines with a balance believe yield

a saying I are them on even things Erik? to believe but better. we you this good. I'm gives expect good get perspective why

Erik Staffeldt

Owen. at for time any [indiscernible] this Thanks, questions. Operator,

Operator

Our [Operator TD question Instructions] comes with Cowen. from first Schumm James

James Schumm

just nicely cash Can at mean me million. for CapEx midpoint. prior looks up free understand got so EBITDA $X don't I like going $XX or up, help you down I the have And is flow free this I It know, the or million you guide think cash million $X guide. flow versus you year? the

to would build OFS. kind you reverse called press is in of capital not capital typical But the able fourth the like that why out Or So be working in release. you quarter, it? that's the for working

me on with understand So just please. the going cash free help flow, what's

Erik Staffeldt

you're Jim. Yes, right,

driver working the adjustment the think increases. the is for I capital to the flow primary free cash

EBITDA increase just also increased revenue quarter-over-quarter. with that $XX comes million You're right the obviously, by our about, to over an

So overall, issue. this is primarily a timing

$XXX million what fourth alone. from we between flowback the are cash we forecasting in quarter some fourth I to in see the in projecting $XX quarter as we're the flow fourth strong think million quarter, free I think

of a well. in quarter will the some happen there's chance think first good early that I as

strong October, see December. activity impact seasonal we seasonal November dip the remain again, the before into Once levels in

those CapEx is And are main capital. drivers. so primarily increase working the but is issue. to And again, There outlined it a the the it's impact we've slight once timing that primarily X just of

James Schumm

that. -- just And like just no collection anything no It's to confirm, have like or you there's issues timing. Erik. Thanks,

-- the first And if fourth so should quarter. that we by by Is fourth fair? quarter, reverse this the the in -- should sorry, not

Erik Staffeldt

I think that's fair.

I Jim, up were again, us over a whole activity year, levels by overall, $XXX year over revenues think last as once for this million.

generation the impact been think as I I expect working strong. on that in a that capital so obviously of of has don't flow think we've also capital cash impacted quite significant schedules the And At or little our the see this well. has our we time, bit had shift working collection issues.

James Schumm

Okay. And then outcome Can just strategy? the an the XXXX What's what's me. most last one give converts? Or for the the there? you on update likely

Erik Staffeldt

standpoint, from converts priority. we then are that on standpoint, generation. think I Several have on our advised options years continue that how sheet maturity. back, from top been manage to cash has an balance to expect our could focus And always instrument this. we hold was we weigh -- our primarily the that our Once managing Jim, again, been is have and to we that that

rather Obviously, debt market about we're the the haven't been a improved, looking convert. traditional standpoint, as Now has options instrument our to debt talking at we wanting more than about from shy

So really the options balance managing sheet. priority all and on are really, focus top our table is

Operator

Our with Lemoine Luke Piper from next comes Sandler. question

Luke Lemoine

you kind least up on to for When of initial wanted just at 'XX? said to of were clarify XX%, the your I EBITDA XX couple a Owen, outlook. comments referring you

Owen Kratz

Yes. .

Luke Lemoine

that docks is . of exclusive Okay. or inclusive dry the you million in 'XX? that had of million to And $XX $XX

Owen Kratz

$XX maintenance EBITDA would million CapEx. on lower of be the from $XX . to enhanced based million That primarily

Luke Lemoine

Okay. Got it.

plus So on of that rate just would at that, amount, top right? absent those group

Owen Kratz

does it. of not other from assets. impacts any other continued doesn't current our than also production operations or that That Right. any may It include acquisitions increase anything include

So we XX%. why greater that's said than

Operator

comes question next Our Instructions] with Lewis Greg [Operator BTIG. from

Gregory Lewis

you guess, you that ordered was was the that was market. hoping purchased, little those Or shallow could was that I $X handful those of million. were question you took -- competitors? a from equipment talk abandonment like Were water existing, and it of? about the guess, new delivery assets more acquired guess I I one bit I was

Owen Kratz

from competitor. number -- also That this the a it cover It people an market. workers very to offshore looking add greater to That because market with in and share the market. was capacity your no, existing ability quite are acquisition came attractive not we're was was to to an biggest bottleneck of

So adding adding the be would the people more equipment. actually than important

Scott Sparks

XX to division employees managed of hire people XX that, original The that direct. those we had

good for us. really win it's So a

Gregory Lewis

to And X do liquidity similar? cash. you in could -- and of Could just more market shallow to was we as company or area guidance that years? to there where balance be position Is then the opportunities an exclusive try continue -- such to market to of mean mention together I X did the and over just pretty potential acquisitions. from water it's unfolds, the for fragmentation any look this obviously Do and grow the next geographic a this piece sheet as are and you guys great realizing also a the see you specific.

Owen Kratz

Yes.

on we'll our market eye keep close of and think I major talk the clients. a to all

of place are majors, and the that of the Cox advantages the already work were it we bankruptcy. and systems that Fieldwood us we One to from for recipients liability the the as the our have in is that which have policies qualify

So depending where on point our their we're exceeding to supply, that we it the look demand and gets then at. capacity if could there opportunities to are

Gregory Lewis

sometimes then well see are assets much to my question are guess of look is, facing well like against more space. the rigs. that across Realizing one realizing -- intervention that drilling A theme when aren't Is well of we for intervention rigs seeing in your against assets work? -- Super And the to that seem big white it have because helpful. talk drilling, we to the transient listen intervention get to offshore look it the space I me. just work. some really been idle rigs rigs doesn't you, like starting interesting space assets? we're drilling when white space to intervention It's seem well as to doesn't kind offshore that time looking drilling and white facing take and is has Or really we we're back short-term compete compete -- to

Scott Sparks

So I'll take that.

-- I that utilization we certain in think all been and There's Gulf the into decommissioning are high are the a of of awarded but are couple that expecting as in Australia, we market. entering rigs the a awarded couple assets go Deepwater there 'XX. our 'XX in for contracts on Mexico, of

to with wells have also instance, vessels the Sea. being at enhanced don't in really compete are that very of in the our in North we older North the North geographically, for work the diver specific rigs Sea and type to look Sea, happens You it

So impacting there wouldn't good expecting greatly is utilization us, it's a a been awarded, I few it. contracts and that say but we're through have

Operator

Our next question Johnson comes Crist Rice. Donald with from

Donald Crist

the I about one to you on really ask going least mean, today. of like convert given table. obviously, current any this convert stage trading it's I us wanted seem options doesn't are But today? the would Seems -- to quick that where convertible noteholders all trading debt. anybody at where given they're the at to to question expect is

Erik Staffeldt

notes stock think advice a that to premium the expect the experts price. the because any is at the generally to I holders convert we've to trade from not of our this gotten in area

not premium conversion. are trading that And And advice trading therefore, that you the so there I And our the at that's converts slight from to would we've given. stock of a to the can a price. that we value they think see been be expect

Donald Crist

remind EPS, Okay. Can out ex EBITDA quarter. And impacted question Alliance when that management the when door goes your It seems like it goes us to cash your the -- I one not on wanted door the you team? out that to but actually this to payout. ask

Erik Staffeldt

as includes The in the So measurement expected quarter at the $XX estimate of up to we'll goes it to yes, point, period, the quarter of third of 'XX, up, million. second it the market payment quarter fourth start XXXX. [indiscernible] which as is fair true Don, through well the of the upcoming of so happen quarter

Donald Crist

Well, we're significantly think outperformed. I in agreement has that all Alliance

them. don't we bit little more paying So mind a to

So time I appreciate today. the Thanks.

Erik Staffeldt

there, the quarter. point $XX your to once it And million again, Yes. third through is

to the adjust . outperform we'll it obviously, in continue upwards expect, We here as quarter. fourth they

Operator

Gentlemen, no this questions further there are time. at

Erik Staffeldt

call quarter on to February. very you us today. for joining in much you. fourth and look XXXX Thanks forward your participation Okay. interest We and having Thank appreciate our

Operator

today. Have That participation conclude please day, you your everyone. does disconnect for conference you the your and that ask great We call a thank line. for

Helix Energy Solutions (HLX) 24 Oct 232023 Q3 Earnings call transcript