Helix Energy Solutions Group Inc. (HLX, Financial) filed Quarterly Report for the period ended 2010-09-30.
Helix Energy Solutions Group Inc. has a market cap of $1.36 billion; its shares were traded at around $13.09 with a P/E ratio of 64.5 and P/S ratio of 0.9. Helix Energy Solutions Group Inc. had an annual average earning growth of 27.9% over the past 10 years. GuruFocus rated Helix Energy Solutions Group Inc. the business predictability rank of 3-star.HLX is in the portfolios of Whitney Tilson of T2 Partners Management, LP, Ronald Muhlenkamp of Muhlenkamp Fund, First Pacific Advisors of First Pacific Advisors, LLC, Steven Cohen of SAC Capital Advisors, Paul Tudor Jones of The Tudor Group, Jeremy Grantham of GMO LLC.
We seek to provide services and methodologies that we believe are critical to finding and developing offshore reservoirs and maximizing production economics. The Contracting Services segment includes operations such as subsea construction, well operations, robotics and production facilities. Our Contracting Services business operates primarily in the Gulf of Mexico, the North Sea, Asia Pacific and West Africa regions, with services that cover the lifecycle of an offshore oil or gas field. As of September 30, 2010, our Contracting Services operations had backlog of approximately $299 million, including $267 million through December 31, 2011. Our Contracting Services backlog includes amounts for the HP I and the Caesar that were placed in service during the second quarter of 2010. At December 31, 2009, our Contracting Services backlog totaled approximately $251 million, including $217 million for 2010. Backlog contracts are cancellable without penalty in many cases. Backlog is not a reliable indicator of total annual revenue for our Contracting Services businesses as contracts may be added, cancelled and in many cases modified while in progress.
Following the determination of a significant reduction in our estimates of reserves at June 30, 2010, we recorded oil and gas property impairment charges totaling $159.9 million in the second quarter of 2010 which affected the carrying value of 15 of our Gulf of Mexico oil and gas properties. The Bushwood field was not impaired; however, our revised depletion rate for the field increased substantially, which has resulted in an incremental $33.7 million of depletion expense being recorded in 2010 compared to what would have been recorded had there been no change in the Bushwood field s estimated proved reserves at June 30, 2010. See Note 6 for more information regarding our impairment charges.
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Helix Energy Solutions Group Inc. has a market cap of $1.36 billion; its shares were traded at around $13.09 with a P/E ratio of 64.5 and P/S ratio of 0.9. Helix Energy Solutions Group Inc. had an annual average earning growth of 27.9% over the past 10 years. GuruFocus rated Helix Energy Solutions Group Inc. the business predictability rank of 3-star.HLX is in the portfolios of Whitney Tilson of T2 Partners Management, LP, Ronald Muhlenkamp of Muhlenkamp Fund, First Pacific Advisors of First Pacific Advisors, LLC, Steven Cohen of SAC Capital Advisors, Paul Tudor Jones of The Tudor Group, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
The NYMEX West Texas Intermediate crude oil price has averaged $77.65 per barrel over the nine-month period ended September 30, 2010. Although this price level is generally favorable to support potential additional capital investment in exploration and development activities, this price remains significantly lower than the historical high prices realized in mid-to-late 2008. The NYMEX Henry Hub natural gas price began 2010 with prices approximating $6.00 per Mmbtu; however the price has since decreased to the current approximate range of $3.50 to $4.00 per Mmbtu. Prices for natural gas are near decade lows and reflect the increased supply from non-traditional sources of natural gas such as production from shale formations and tight sands as well as decreased demand following the economic downturn that commenced in mid-to-late 2008. Although there have been signs that the economy is improving, most economists believe the recovery will be slow and may take years to recover to levels previously achieved. The oil and natural gas industry has been adversely affected by the uncertainty of the general timing and level of the economic recovery as well as more recently the uncertainties concerning increased government regulation of the industry in the United States (as further discussed below).We seek to provide services and methodologies that we believe are critical to finding and developing offshore reservoirs and maximizing production economics. The Contracting Services segment includes operations such as subsea construction, well operations, robotics and production facilities. Our Contracting Services business operates primarily in the Gulf of Mexico, the North Sea, Asia Pacific and West Africa regions, with services that cover the lifecycle of an offshore oil or gas field. As of September 30, 2010, our Contracting Services operations had backlog of approximately $299 million, including $267 million through December 31, 2011. Our Contracting Services backlog includes amounts for the HP I and the Caesar that were placed in service during the second quarter of 2010. At December 31, 2009, our Contracting Services backlog totaled approximately $251 million, including $217 million for 2010. Backlog contracts are cancellable without penalty in many cases. Backlog is not a reliable indicator of total annual revenue for our Contracting Services businesses as contracts may be added, cancelled and in many cases modified while in progress.
Following the determination of a significant reduction in our estimates of reserves at June 30, 2010, we recorded oil and gas property impairment charges totaling $159.9 million in the second quarter of 2010 which affected the carrying value of 15 of our Gulf of Mexico oil and gas properties. The Bushwood field was not impaired; however, our revised depletion rate for the field increased substantially, which has resulted in an incremental $33.7 million of depletion expense being recorded in 2010 compared to what would have been recorded had there been no change in the Bushwood field s estimated proved reserves at June 30, 2010. See Note 6 for more information regarding our impairment charges.
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