HLX - Earnings call transcript Q4 2024 | Helix Energy Solutions Group, Inc.

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Operator

Thank you for standing by. My name is Louella, and I will be your conference operator today. At this time, I would like to welcome everyone to the Helix Energy Solutions Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to Brent Arriaga, Vice President, Finance and Accounting. Please go ahead, sir.

Brent Arriaga

release. thanks we us Fourth will Full XXXX and conference on Quarter everyone, Year where call, be earnings morning, for today joining our and Good reviewing our are released our Participating myself. Hopefully, an Owen presentation our on related you've night. Erik CFO; Daniel had General our press opportunity the Neikirk, Staffeldt, for slide President, Stuart, this Helix our COO; Kratz, CEO; Vice release Scotty call and our last Sparks, our Counsel; review Ken to today Commercial; and

If Relations copy News can the can you The of these be accessed slides not have under do a our & www.helixesg.com. materials, Events through page at and accessed both the website tab. release Investor press be on

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

Kenneth Neikirk

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

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

presentation, duty not any any third forward-looking undue do we to disclaim Form earnings release, or statement. party under this oral of will a with the should on on on call We by be reliance press www.helixesg.com. Please February along today, replay annual report for undertake place statements, the regarding information at our website matter XX, made -- remember written any You and section subject reconciliations, update as this statements and Investors reconciliations information forward-looking not financial accordance final and of accurate with advised any of our the time-sensitive certain be SEC the our during provide conference disclosures call, measures. of presentation this available slides only to broadcast you replay GAAP speaks no are of Scotty? any These measures non-GAAP that call. conference this comparable longer of that of the rules, call. Also financial this as may therefore, XXXX, certain this non-GAAP made. may XX-K any In of be

Scott Sparks

financial our Thanks, results, everyone. Thank today, and good XXXX joining for quarter doing hope morning, morning, and This fourth full Ken, everybody call year we will we you is our review and and operations. well. performance

view the provide our provide and XXXX. of current markets will guidance for We

a and solid Before starting their well. year team The Helix thank producing XXXX. in another deliver again, foundation well-executed the our review, I in team's beyond. With for the XXXX, out we and efforts efforts would outperformed offshore like established closing our very results very onshore quarter, to XXXX improved to during

quarter, Revenues gross Moving profit presentation. highlights $XXX X quarter key million. for million. high-level of the in EBITDA the and X flow strong were had Adjusted million, for $XX $XX a we of $XX summary net positive full $XX operating our million resulting and $XX of free and a with X, of cash the on was million and to with million resulting provide cash flows results year. fourth the Slides for income of quarter

robotics the $XXX Shell. options, operations $XXX Nigeria, on million Northwest with QXXXX operations and include with cash results utilization, in liquidity and contract options high the liquidity and QXXXX for XXXX. Slide transit plus Helix paid contract Helix Australia plus million. Highlights trenching in to was XXX-day renewed year the X-month cash Producer June in highlights. cash the The of X a to Our results with quarter of contract provides and mobilization commenced to for of our remains contract completed Brazil and commencement and X X strong detail Siem continued equivalents of at rates and charter strong of transitioned extension XXXX with higher the full

Adjusted million year resulting were was free million, the year of profit positive of a of had flows with positive of than $XXX Our in operating $XX And billion, last revenues net improvement XX% with flow greater $XXX million. a million, $XXX $XXX we gross cash a million. full EBITDA income resulting over year. $X.XX for cash

year-over-year year, QXXXX strong in and the Nigeria, with year results Excluding key highlights robotics exceeded with Strong for as year-over-year. utilization safely successful Alliance the XXXX, the activity earn-out Gulf, operating cash financial of during million. on the have including full in metrics the flow of all cash U.S. near our some our improved flows the our would paid over in significant operations Well had results XXXX the in improvements the Intervention transit the Rome, successful on and $XXX operations a are significant These completed we deployment QXXXX free results. Recapping improvement in and key included commenced increased the Australia, strong trenching and concluded initial QXXXX

extension the XXXX we commenced new one X half complete Petrobras, X-year a and commence last the contracts X-year front, the of the SHX other for month We -- Trident QX we the in On contract executed commenced that for entered SHX. second with with into of to SHX XXXX. for sales that in the

the minimal Africa, Europe, quarter, Gulf utilization. segment Brazil, operations operational and Pacific, we operate the years more also with Coast. continued days U.S. Gulf X year. Slide disruption contract results U.S. with each in the options QXXXX detailed minimum provides East commitment X a for our In of a for XXX segment with globally in U.S. the of Asia plus We the review executed fourth and to

globally driven Intervention Robotics our Our core from results results and strong were fourth quarter by strong markets group. Well our

performing U.S. Slide solid to Slide Brazil Gulf, provides of achieved In uptime our XX Africa, efficiency. utilization Well further and segment. detail Intervention well XX. with very the in QX, Australia, we strong Moving

had with worked the we U.S.-based U.S. and paid XX% for both quarter the As well are mid-quarter. The at these operating entire by strong for business in Gulf. very for Robotics X-month XX quarter. ESSO multiple provide utilization being in QXXXX contract vessels North III the standards, with for working vessels coverage the GC Australia. expected, the commencing U.S. strong very and for vessel with detail impacted the with Malaysia. completing and Enhancer renewables resulting units campaign. Siem The Siem Shell transit options Singapore transits II Coast performed X lower Shell on the both Brazil between X for projects Again, slowdown, Shell vessels working QXXXX projects then utilization us to in with stacked the renewables-related in utilization All performed had and work plus Coast had The for support trenching vessels to of to years. Slide quarter. strong warm Well our utilization winter within gas season minimum a business. solid worked provides Petrobras, during and high contracts in operations Helix and in and campaign. worked on long-term had the the Sea The oil recently XXX-day commenced the Nigeria North trenching, the the the vessels, We for X oil pleased Robotics Seawell on Bordelon announced being projects paid gas-related the in and extremely Topaz QXXXX Sea and for And the for on in East ROV on our Brazil utilization ROV vessels the Enabler the survey site and QXXXX were in December. The quarter, Q further globally. U.S. Shelia the decommissioning various Gulf as the in working working trenching Shell QXXXX both Taiwan in renewable-related GC the demobilized in vessels well projects. trenching Europe prior strong support

and us another metrics had very numerous robust trenching for numerous of works The the weak a late for days outlook in wind our as in were XXXX Hornsea statistics, years market. In expected of of assets. awards, XXXX Coast call and commencing Brent. like with regarding XXX very of with the in and of activity the very we're our strong expect very overall level to once again, U.K. would a on and them over XXXX, the quarter a 'XX excited we to-date best remains of Gulf one year is Robotics high and for improved execution. we XXXX, have XXXX largest and -- utilization well-executed assets outlook I'll the utilization most is Abandonment contracted we into over financial detail the We a for to one announced X trenching for delivering year-over-year of and in our NPT, U.S. market levels XXXX slowdown strong summary, a as employees enter improved improved trenching good further strong. We're secured in business. renewables financial reflect our renewables very backlog portion levels expecting long-term contracts performance. I a our turn very our farm shelf strong safety performing renewables long-term overall and contracts global contract very reflective the Our had well, 'XX. seasonal recently provides a securing further activity strong high XX their now Shallow And thank to market XXXX. Slide efforts, QX Water

Brent Arriaga

Scotty. Thanks,

of debt At had to as key sheet $XX ABL December our of million the XX. $XXX cash balance under Moving Slide of million, million. availability $XXX XX. metrics we with of and It outlines and liquidity year-end, resulting instruments

we million was funded net had debt debt and at of $XXX Our million, year-end. negative $XX

will on a XXXX. and further is sheet over strengthen free to between now expected we now minimal our obligations for balance have debt strong outlook significant cash for XXXX. I is call the Our generating to and and discussion anticipate Erik turn as

Erik Staffeldt

several headline in 'XX the environment, moratorium. uncertainty with rig entered and in Thanks, white with Brent. We softer with XXXX wind active announced geopolitical macro farm U.S. challenges, market space market a

healthy The robust of they market remains very both are for Pacific. remains constructive positive. these active. levels. offshore very and in remains global The Europe being our remains positive. markets spending activity gas at challenges market these uncertainties lower aware We with The Asia and long-term outlook create. and is challenges, renewables increasing the Oil despite outlook and Despite

cash of revenue $XXX million driven $X.XX margins. to billion shifted $XXX $XXX $XXX contracts includes by and supported projects, for spend improved we're $XX improved the billion, million, rates. our XXXX of now our The an the market our 'XX, improved seeing movements. And years. have million pipeline This million. cash strong rolled outlook capital million, over assets. into term the has XXXX expected XXXX by lagging term contracted working flow, market, XXXX significantly With slightly although benefits X that financial positive ultimate in providing on right increasing with based with $XX intervention is million the bids $X.X contracts million past outlook forecast. Revenue key capital Free of Our over free the market variability well flow to increases EBITDA offshore we're signed as off. generation the the several contracts of to and our at for XXXX. strength to for the driven to of $XX metrics for guidance of approved work key certain legacy of by

spending XXXX these renewal cause our of primarily could intervention Any maintenance to significant variation a some our ranges key assumptions estimates. provided. and and fleet key results system from ranges on of include ROVs. are estimates and vessels, fall These Our the robotics our assumptions outside regulatory mix plans

seasonal some the to results quarter, as Gulf quarterly Our first fourth extent, impacted and by to will the Shelf, weather primarily quarter be the North Sea well. in continue the U.S. in but

between In cause project addition, our vessel quarters. and will of timing mobilizations maintenance the periods variances

of capital Slide and impacts front-loaded, fourth our be 'XX part With results as region, third segments Our second expected quarters the latter our and spending year. Providing weather. starting free likely quarterly quarters first 'XX performance by winter most being the by with seasonal and to cash and flow financial and timing on our assumptions in generation quarterly the same of cadence the to XX. and to key is in 'XX quarter the follow expected our skewed is the impacted active

in expected be fill in to in The First, work Well QXXXX Coast market. every QXXXX has segment. our West schedule. with The U.S. is Intervention is U.S. continues QX of XXXX. to second Gulf the then a and in white to limited into Gulf the Africa quarter half return contracted space contracted work the good to to

utilization good Well to last expect vessels is both We to expected year. Intervention this weaker market North in than be U.K. Sea XXXX year. The have

and in announcements the releases year producers for in challenges 'XX and last highlight The regulators created late planning various announced sector. customers, in News both taxes quarter, by from the and increased has the U.K. subsequent an market. uncertainty delayed

well The We during Enhancer Seawell in is quarter, months in completed the its commence March. approximate are, period in completing is and XX-day Sea with to QX, is good winter decrease a Siem This X its utilization overall Well extending off-hire XXX-day market quarter the work compared currently and second have vessel expected but Petrobras. the an year its contracts. for new in the early X Trident The a therefore, project and in The between at mobilization contracted for XXXX, utilization an The X-year Petrobras North Brazil, to project the we regulatory have January. is this expected Sea. The regulatory docking Shell. in as Siem the start X-year XXXX. in is commenced to a fourth seasonal anticipate rates. XXXX. QXXXX utilization of to performing docking forecasting in followed The contract North third Seawell second into should slow contract late by to The firm Helix contract abandonment 'XX, with vessel with half

Sea. recently Bidding very our and trenching announced has continues extremely segment, active. in activity to North continues to positive. market be contract been Robotics the to Moving significant a the We be

'XX. completed of We the the activity and market dry in dock levels both high II are for high its the from and in and benefiting Gas market. APAC region, In of the Grand utilization multiple expected Oil QX contracts Renewables balance the has and Canyon

T-XXXX-X Taiwan The the trencher utilization is QX, Sea, expected demobilized Canyon is performing quarter, work vessel season begin site clearance remain in have clearance to the in With the In vessel and and QX site with Coast. in the III The the Enabler is In U.S. is contracted for utilization Mediterranean. after of QX. The The a have and to trenching Wave the returned. forecasted completion to is completing in U.S. Gulf to has Coast have U.S., and through and was of operations. project utilization Shelia fourth expected in Horizon Topaz dock have expected is utilization. which Glomar forecasted good strong in Grand the good first its client-provided 'XX. operations the good dry expected Siem the active East North Trym March trencher combination an with on to its the trenching is work T-XXXX-X work in projects QX the through and overall

to with is Moving of HPX XXXX for contract balance production The June facilities. to the recently no on expected change. extended currently 'XX,

field Hawk deplete field Water Thunder and to Abandonment. still We Droshky have to production as variability is in. Continuing with Shallow expected continues shut

impacts with QX seasonal and Water Shallow segment variability have Abandonment during greater will QX. Our

our improves. the commensurate scale if ability reducing current are cost the up to retaining market, We but the with market structure are

market better We to any developments. absent expect marginally regulatory the be

There EPIC and the an units. opportunities. with Hedron is to We tubing X season Marine coiled diving P&A spreads expect utilization liftboats X to energy winter expect to lift idle crew with We for QX. Offshore X and during to the good the limited some have where heavy and X do OSVs the and should on good boats. utilization service maintain QX seasonality active currently on in X variable The X seasonality business is

Moving to Slide XX.

and The QX completed impacted a Seawell dock The the by The dry our on QX. heavily the second XX- mobilization. in for currently a vessels forecast quarter. CapEx scheduled in docks systems. period by has docking 'XX project maintenance undergoing XX-day its and periods to day XX-plus Our is dry is docking QXXXX followed

our originally project of approximately our maintenance were payments million our our scheduled to into forecasted range and debt amounts majority be $X operating CapEx Once continues decrease Debt. $XX Our the of with of million that to falls by moved in our $XX on principal is million again, sheet, related, into $XXX primarily balance CapEx includes XXXX million, funded flow. Reviewing cash which million to currently is which expected MARAD XXXX. in XXXX $XX

and of continue a allocation repurchase outlook and We repurchases flow. At closing XXXX our framework, least XX% for our to Owen? cash expect discussion comments. to share a target turn at on with for the of for program capital free call our time, I'll back beyond this Owen

Owen Kratz

fields, will be XX extending in and the the wells to abandonment will Sea, lowest or minus as X,XXX and the but intervention expect more we slower North potentially about of do barrels. results good expect the cost and we a of is extent for Thanks, to a of our We Helix fields opportunity, coming and look and we challenges, which Erik. to the a of We're we Sea North are upside. and to fields section wind plus Intervention, There's there for late-life confident we of address is at approximately also headline industry were starting very we The life increase. Subsea back. Helix's value the year. recognize wells market both average strong the position. Starting was lot is per are feel industry with and oil of that maximizing and them Good market in broader the reserves gas year There forward. the mature. the more P&A abandonment, impact our way and aware where morning. be entails key believe mitigate We and extending expected. the remaining the can also the incremental year for delivering as prominent XXXX produce of niches to also generate recognize for abandonment the Intervention life of U.K.

current world, We all work increase expect have have we're we've of are do and as rest into. global demand instead flexibility to well of for regions higher plans to assets tight market advantage potential we add yet on and beyond. In to to the margins. for the all of demand new We there of not take XXXX any services. -- our for meet up-and-coming and major contracts market plan are and this of We're world have don't majority the we're a strong Well capacity Intervention grown the and not we capacity the do our regions the the achieve to currently -- seeing, penetrate softening to in multiyear positioned

Robotics. We to see Visibility tendering out to demand Turning as grow. as growing continuing for has far demand XXXX. for work us trenching

We clearance need way establishing trencher capacity. assessing successful to farms, in credibility the been wind we Boulder expect We've most effective work. for an at our and work both additional are site UXO currently very the and options that will and our add for clearance

plans adjacent are vehicles. on our We to maintenance additional have CapEx spending of refurbishment to of add ROV forward. add and world-class is for spread services our site XXXX of clearance fleet looking an going other Part

the X the of extend more entire the life to years upgrade have years We come. to complete of fleet, the which for fleet should

not maintained maintaining bankruptcies plan Water in soft We XXXX materialize overall and is be the is market for XXXX With larger beyond. for basis structure market, improvement growth in flat see work. the Gulf while Boomerang now that analyze segment market we the in XXXX. properties meaningful as a operational expected further for cost to our meaningful thereafter. abandonment Shallow continue rightsized XXXX erroneously Robotics with leverage relatively Abandonment their Our for cost did for in growth current experience of profitability from the expect to a recipients to expected again forecasted in to

much not is don't upside quo. segment as Thunder to out pretty anything later life. contract beyond Hawk The Hawk earliest. we Droshky Facility continues commitments, of produce but availability for shut production field included continues. until until HCX year the contract remains at for current our Production The it With for intervention. we this its XXXX, in We've remains an the The XXXX. can Thunder expected Our status field schedule have

have markets resulted players. to our that shown Turning the in past the by currently high. in years few capital are with allocation been capital robust framework. The has asset discipline This industry valuations

strong our flow of generate cash to have war expect we we increase our cash, and free dry. kept While powder chest

watching of inherent our future plan become restrict at of Until capital. capacity to attractive great expect our We're in cash minimum cycle than be see free niches approved of more markets operating more allocate full of with the assets capital our bolstering flow. to and it's materializes, accretion and return Erik? deploy under with Starting a for will repurchase current Helix them approval this then free this our where If to XX% service we market to confident to And the see share year, allocation XX% We future as and then share to if in shares. XX%. opportunity well we a cash price, active forward. intention of value have plan. flow of opportunity than shareholders. more the as we our not, that confident the going leverage the for to we growth for repurchase opportunities positions. In current our can the We're line see plan. and strategy, M&A $XXX intend to with million still We to opportunity, we

Erik Staffeldt

questions. at take time, Operator, we'll Owen. this Thanks, any

Operator

question [Operator of line comes Instructions] James. the Jim Rollyson with first Your Raymond from

James Rollyson

if guess? a of side. Maybe type spend going or the it cash oilfield What you Owen, color is billion a be with kind inflated you but keeps issue, that what valuation think a repurchases, the of in so at cash. $X.X probably active, about just today M&A, -- from target? the thinking? And just you assets just of simple issue around end prices, covered you least midpoint year bit, your little is would on valuation I mentioned are When of asset little being still the you relative flow, kind math of you to at $XX kind of the this free back million to you're in

Owen Kratz

this probability and major growth The think will Well, valuations. geographically see the in also a us that longer term, market. year. some substantial seen are of that opportunity you I high M&A there's active oriented has of market Jim, pullback And be think see areas I long-term it's a I wind

too value. I prices, going So lot I the but there that way do the work will too future, area. Further vessel orders core -- that And we to think as or for just Right high. quite that, more now, another assets I've be the are don't the would that now, but there's need allocation new floating I are a are Wind rationalize mean, months, in new means in and builds, vessels. we said, think always charter existing robotics, capital, But market out for the it's immediate something probably prices high. see right large capital an as future. way in recent watch of in like of we vessel a few I tonnage tonnage number which of don't in that vessels.

James Rollyson

contracting and you is about been spot do the that. it. being even pretty years things? from Got how you of pricing to locked book at bit beneficial from rates. year to And on is your the extent where this run? up, which every -- your somewhat guys seems about short the in you've work contract take Intervention mentioned up you side come earnings any advantage last -- X short there, earnings recently pricing up how Well trying How the -- fleet given the trending booked talked X it or perspective. next like Appreciate season, has higher And is think of you of market over obviously that the calls more kind At assets a the you structurally well moment, then several are do

Erik Staffeldt

Jim. take I'll that,

a they're put contracts, and market So firstly, off good the on contracts but to on the legacy taken rates. portion good are assets of long-term

to an we're So going see there. improvement

rates. as go we spot but last increasing still increase are a And we'll tighten, done rapidly in have years, slight rates, the still there's as market as the in and continues we X side, assess not On as that we the adjust forward. to

rapid the bidding advanced still slightly doubled through years last as we X it's geographical regions. and rates did was year, as not in almost last So certain but we at than we're it higher as where

ROV increasing, On to the and rates on are up side. the 'XX-'XX trenching and certainly trenching pumping ROV side seeing vessels Robotics and certainly the rates activity we're side, out the and

Operator

with next line comes Greg Lewis question from BTIG. of Your the

Gregory Lewis

bit -- between I'll -- don't let should say, SWA, and Robotics contracted of basis? thinking start-up on how days maybe assets? And I to the AW the Intervention side get just I maybe largely mentioned think it some around hoping you -- side, the time -- low the of I i.e., a already is Well does backlog. percentage color of around of $XX about is include delta throughout like with call on how that the the on the associated end, the was guess, QX? little that the revenue, that think million that more guidance Or on Intervention some also SWA, Well strong the first the we I on then on you about Robotics be open the much and like high the the a and

Erik Staffeldt

and in I'll reward balance again, wrap the pass a Greg, it's Okay. Well to then start guidance I good opportunities. Water. Intervention think Shallow with on up side, Well our Scotty off risk and range it off the to But the between and Intervention Robotics once

of the sort there, project really I think look when you execution. we the have it's that opportunities on at

than execute to we're that line margin contracts the think there. to And good a high of top able driver. a level, solid have extent at I that a We will driver more be

I about you think transitions. that talked contract our

transitions year. X this major We have

already completed contract. January is them of One early transitioning SHX new to with the its in

of the in to QXXXX, estimated the of will March And assuming which towards SHX, about the right we're Trident to its the now, we're the have which end year half now, a between start Brazil. then in XX-day. second contract. We And contract transition -- it's Petrobras right

Well that think, then those Intervention that little and area bit of is there I so softer opportunity once of a there's in assessments. And Sea market. the combination risk North And a again, is one

we're expecting information I fourth -- some of there I again, in seeing more a that now, market. potential the in is there, utilization for what right happened we're digested as quarter the from is there lower activity. Once think think over

utilization I'll be the Sea Scotty So pass by Shallow region. And then to really and it Robotics in Water. would for there that North on driven

Scott Sparks

robotics Sea. the Bordelon Shelia the here So already Pacific for the good contract a and North trenching good portion in of Asia We've backlog. is markets then over booked as got activity the vessels in for

a going the client-provided contracted to Baltic June also the client providing on Mediterranean. the Sea. T-XXXX-X a going is vessel on And i-Plough go on and We a have in from in job the vessel T-XXXX-X

So Siem but that's the came it's flat year because robotics, much off contract. a Topaz pretty primarily for

So a there. there's quite reduction

Some that's since to you other XXXX. highest remember trenches work. But going that the the have XXXX robotics to is by replaced second EBITDA for of year

go properties get relatively they're of Clients their P&A, in lot an ROV a are is an that quite -- a up around year. have client keeping those for improvement high market. the the back. water, for market of heads have to robotics It still project Shallow be don't back forward and so what call flat seeing up. starting on. with we at that definitely spot be XXXX. upside trenching a we trenching properties with is visibility handed Water clients going this they've And Boomerang should got to bias already. we moment set soft So the a as It for and over taken departments markets. Shallow us state influx There's expect good being play a These

should but an to still go than XXXX, it's be market. work. but see increase better to So we back XXXX, of I spot don't softer think definitely a it should going

Gregory Lewis

had super I just was That a helpful. And Okay. then question.

of prepared maybe us I think easy hey, think in of mentioned not about to kind a opportunity your unit. pricing for as what guess be. can but around remarks, we to it's going around Intervention, the potentially and is you -- easy, I through you of new kind Well work trenching, margins kind we add

and tight, year Robotics about last that's continue. it and I it I pretty -- Just going mean, like is seems to you're -- guess Scotty, strengthening. Clearly, talking was

Just on the maybe as it margin -- think we'll ability push maybe to a we about about progression. think

thinking And I or the guess, add of the way this, I you what's take want to be kind should does kind about to it X with cost? and way know add I talk of we bow of up or fair next think a margins kind think to any trenching X it then like how to years a what's long a margins don't unit, we wrapping, And unit? about push about on of -- about As that? ability whether another following in trending? kind

Scott Sparks

Okay.

So shot a that's but there. loaded good question, a quite

Gregory Lewis

sorry. I'm

Scott Sparks

I million, No, sizable T-XXXX-X, securing securing $XX the and No, well. and back day. T-XXXX-X that's okay. I of work assets to some We're [ i-Plough and for we're and the purchased (sic) out for is of chunks which work. We we've for our of XX% works. 'XX that 'XX. that, said, like we've the improving $XX more forward. than a now I XXXX, every into XXXX-X very sort a And those approximately to trenching. trenches, say there's in all market pleasing. the ] in definitely step XXXX, those return bidding work for expect work and million, secure had securing We're was shortly bidding no. already increase seeing $XXX,XXX And work about secured we're year, in as will Rates and on we baseline work rate higher are Back go as the XX%, utilization renewables good already

assets. relationships potential the So X work with ] out we negotiations revenue pick $XX T-XXXX-X to with. on clearance up work go XXXX-X to and that based what to already million have idea to bidding and X for an outlay $XXX we awards, building our activity from XXXX. clients CapEx increased XXXX that high to XXXX. you We come of can X trencher, [ (sic) XXXX-X to see have we be not, did alone we that and At secure would we're down new like If and trencher. see or and market. another can X trenches T-XXXX-X million XX an a months if on of the good would our I'll asset, or we're But alone us of seeing routes. give site There's to start trenching route obtain there's approximately which going the market a X building

for position healthy very us. So

Operator

Your from Energy Josh next comes with of Partners. question line Jayne the Daniel

Joshua Jayne

the significant 'XX? when about 'XX they're them think well to wanted early end to XXXX, to both I out the about out? the one vessels into First to it to there those to could on year. up was opportunities term But sort end just and the speak there is contracted we further QX Or follow the you of QX outlook for contract think into this of of Are that? opportunities and too contract the

Scott Sparks

year. of signed days the would contract the up years with for with is days of option X QXXXX the third another XXX with has we're take And Minimum also So that a QXXXX. year. major in each Shell discussions the phase rest on up an

a years QXXXX of tight QX the the in of very to Nigeria market. Gulf back rest is planned the the come this until for year So is to X X currently next in service QXXXX to and be position. then

if have it flux got we that up X Nigeria in are a We operators. work. asking large-sized some lined around work bit operators with It's and in could we've already or with hang complete because X

ongoing options X the other of discussions there's So outside have. Exxon with that majors

work on some work to we're over compared work availability. how So to take to do by lose Nigeria trying out having starting we path not a here much in of

we're the operators very the as in X -- market other contracts the secured and QXXXX access the least So have ] market QXXXX. tight, Q And the operators to well. U.S. discussions with at Q-based [ multiyear then to have is will other

Joshua Jayne

Okay.

back when the the like term there opportunities out? So it potential the QX Gulf, that sound eventually are does to vessel comes to

Scott Sparks

spot already wells and year, work in as have half contracts Yes, with we're multiyear We sure. in the for the for majors discussions latter well contracted take and would that of well. some place

Joshua Jayne

you seem about more and targeted have about concrete does the I the departure from and respect more bit million do a capital $XX you've capital bit think to where just allocation. Or but to a or a both just a M&A. bit thinking just return past, is about a how then for see step both the shareholders a one up seem be little to capital you more that does going of program repurchase that flow. you equity want It the aggressive. Is had it Okay. change curious price to know how I'm a guys allocation. forward the opportunity Helix execute function to I things, time of it today? And because like sort in did do it follow just XX% of cash on thought with you're of did seem -- of free

Owen Kratz

add. current Well, us change step our sheet the strength equity I'll start for Erik balance just of right and let and The price. is now the

it materialize deploy increase there's at earlier, repurchase. we'll time to probability current aggressiveness to and price Alternatively, M&A, it think don't extent because, that high of think have be on a the that M&A for we that I is the the then a need us share amount that or will be I of M&A the plan it. we we prices. are cash if So we opportunities capacity I said We've require a the repurchase these for the cash, there doesn't so that equity XX% minimum aggressive working the we for that's us on where more financial as stated share as

Operator

do over we back for more questions remarks. now as the closing I time, turn at any to the have call not this management Seeing will

Erik Staffeldt

Thanks April. much First look for Thank having XXXX you. We to your very today. interest and appreciate call forward us and our you Quarter in on joining participation

Operator

you and joining. that today's concludes Ladies gentlemen, call. Thank for all

now You disconnect. may

Helix Energy Solutions (HLX) 25 Feb 252024 Q4 Earnings call transcript