Helix Energy Solutions Group, Inc. (HLX) NYSE

1. Helix Energy Solutions Group, Inc. (HLX) NYSE Recommendation:BUY Price (10/3/14): $21.55

2. Company Overview • Founded in 1960 • Headquartered in Houston, Texas • President and CEO: Owen Kratz • Sub-industry: Oil & Gas Services & Equipment • Market Cap: 2.28 Billion • Areas of operation: North Sea, Asia Pacific, Gulf of Mexico, and West Africa

3. Investment Thesis • Helix is at the turning point of their company strategy to restructure by divesting in subsea construction and paying down a large amount of debt • The core of the business moving forward is increasing, and their capex expenditure is focused on a smaller area of the business improving margins and capacity • Significant cost advantage and mobility give companies an incentive to work with them to maximize rig efficiency • The Deepwater economics suggest an increase in capex in the years to come • Strong commitment from the EU on off-shore wind farming • 2 billion dollar back log and a new 4 year deal with options to extend with Petrobras and BP

4. Four Areas of Business • Well intervention • Robotics (ROVs) • Subsea Construction • Production Facilities

5. Well Intervention • Engineer, manage and conduct well construction, intervention and asset retirement operations in depths from 200 to 10,000 feet • Q4000 – multi-service semi-submersible vessel set a series of well intervention “firsts” in increasingly deeper water without the use a traditional rig • Significant cost and mobility advantage • Increasing demand for subsea tree installations • Deal signed with Petrobras and BP • Q5000 delivered in 2015 and Q7000 in 2016

6. Robotics (ROV) • Marine construction increasingly moving to deeper waters • Fleet: 51 ROV’s, 4 trenching system, and 2 ROV drills • New five year deal inked with McDermott • Offshore alternative energy is increasing in demand (Northern European wind farming) and was 9% of revenue in 2013 with significant upside potential for 2014 and beyond

7. Subsea Construction Sold equipment and operations in pipe lay in 2013 and January 2014 Focus on well intervention and robotics

8. Own the HP I floating production unit contracted out until at the very least Dec 31, 2016 • Own significant interest in Independence Hub platform & Deepwater Gateway • Formerly its own segment Oil and Gas but now is not the focus of the core business for Helix • CGA contract agreement sign 2011 for HFRS containment Production Facilities

9. Risk and Customers Risks Major Customers Shell Petrobras British Petroleum McDermott Over 65 customers, none of whom represent more than 10% of revenues • Oil and Natural Gas prices • Weather • Government Regulation • Damage and Upgrade Cycle

10. Top-Down • Energy sector as a whole has taken a major hit • Oil prices continue to slide • Deepwater Capex is projected to rise significantly in the next decade • With Capex on the rise companies look to helix to provide well intervention services at a significant cost advantage • Eurozone Regulation attempting to make 35% of its electrical from alternatives, and 12% of that from off-shore wind farming

11. Deepwater Capex Projections

12. Key Ratios • P/E: 11.22 • Current Ratio: 3.18 • Since 2009 Cut there total debt by more than half • Debt/Equity: 0.3 • ROE: 12.77% • ROA: 7.52% • Profit Margin: 19.34% • Debt-to-Assets: 40%

13. Comparables

14. Chart Compared to NYMEX Brent Crude

15. First Two Quarters of 2014

16. Weighed Average Cost of Capital (WACC)

17. Discounted Cash Flow Analysis