Helix Energy Solutions Announces Contract Extension with Talos for Helix Producer I

Rhea-AI Summary

Helix Energy Solutions Group (NYSE: HLX) has announced a one-year extension of its contract with Talos Energy (NYSE: TALO) for the Helix Producer I vessel in the Gulf of Mexico, extending the agreement until June 1, 2024. Talos has the option for annual extensions. Scotty Sparks, COO of Helix, emphasized the success and reliability of the Helix Producer I in supporting Talos' production needs. The Helix Producer I, operational since 2010, enhances production efficiency while navigating challenges like severe weather.

Positive

• One-year contract extension with Talos Energy demonstrates strong client relationship.
• The Helix Producer I vessel has been reliably processing production since 2010, indicating operational stability.
• Talos has the option to extend the contract annually, suggesting potential for continued business.

Negative

• None.

Extension of Production Processing contract demonstrates strength of relationship with long-term customer

HOUSTON--(BUSINESS WIRE)-- Helix Energy Solutions Group, Inc. (NYSE: HLX) announced today that an affiliate of Talos Energy Inc. (“Talos”) (NYSE:TALO) has extended for one year the term of its contract with Helix for the Helix Producer I floating production vessel in the Gulf of Mexico. The one-year extension term is scheduled to conclude on June 1, 2024 with Talos having the option to extend the contract annually.

Scotty Sparks, Helix’s Executive Vice President and Chief Operating Officer, stated, “We are pleased to extend our contract on the Helix Producer I and look forward to continuing our long-term working relationship with Talos. The Helix Producer I is a unique vessel that has provided safe and reliable production processing for Talos, and this extension further demonstrates our ability to continue meeting our clients’ needs. We continue to support the Energy Transition by offering clients the ability to maximize production from their existing wells.”

The Helix Producer I is a ship-shaped dynamically positioned (DP2) floating production unit. The vessel is designed to produce hydrocarbons and export to shore via pipeline or tanker and is equipped with a disconnectable transfer system (DTS), which allows the vessel to weathervane during production. This setup also allows disconnection from flowlines, pipelines and umbilicals, enabling the vessel to safely navigate away from severe weather and other potentially unsafe conditions. The vessel has been processing production from the Phoenix field since 2010.

About Helix

Helix Energy Solutions Group, Inc., headquartered in Houston, Texas, is an international offshore energy services company that provides specialty services to the offshore energy industry, with a focus on well intervention and robotics operations. Our services are centered toward and well positioned to facilitate global energy transition by maximizing production of remaining oil and gas reserves, decommissioning end-of-life oil and gas fields, and supporting renewable energy developments. For more information about Helix, please visit our website at www.helixesg.com.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any statements regarding the contract and extension thereof and the parties thereto, the COVID-19 pandemic and oil price volatility and their respective effects and results, our protocols and plans, our current work continuing, the spot market, our ability to identify, effect and integrate acquisitions, joint ventures or other transactions, including the integration of the Alliance acquisition; our spending and cost reduction plans and our ability to manage changes; our strategy; any statements regarding visibility and future utilization; any projections of financial items including projections as to guidance and other outlook information; any statements regarding future operations expenditures; any statements regarding our plans, strategies and objectives for future operations; any statements regarding our ability to enter into, renew and/or perform commercial contracts; any statements concerning developments; any statements regarding our environmental, social and governance ("ESG") initiatives; any statements regarding future economic conditions or performance; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors that could cause results to differ materially from those in the forward-looking statements, including but not limited to the results and effects of the COVID-19 pandemic and actions by governments, customers, suppliers and partners with respect thereto; market conditions; results from acquired properties; demand for our services; the performance of contracts by suppliers, customers and partners; actions by governmental and regulatory authorities; operating hazards and delays, which include delays in delivery, chartering or customer acceptance of assets or terms of their acceptance; our ability to secure and realize backlog; the effectiveness of our ESG initiatives and disclosures; human capital management issues; complexities of global political and economic developments; geologic risks; volatility of oil and gas prices and other risks described from time to time in our reports filed with the Securities and Exchange Commission ("SEC"), including our most recently filed Annual Report on Form 10-K and in our other filings with the SEC, which are available free of charge on the SEC's website at www.sec.gov. We assume no obligation and do not intend to update these forward-looking statements, which speak only as of their respective dates, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221122005866/en/

Helix Energy Solutions Group, Inc.

Erik Staffeldt, Executive Vice President and CFO

email: estaffeldt@helixesg.com

Ph: 281-618-0400

Source: Helix Energy Solutions Group, Inc.

FAQ

What does the extension of the contract between Helix and Talos Energy mean for HLX shareholders?

The contract extension signifies revenue stability for Helix, which may positively influence HLX stock performance.

How long is the new contract between Helix and Talos Energy?

The new contract extends for one year, concluding on June 1, 2024, with options for annual renewals.

What is the significance of the Helix Producer I vessel in Helix's operations?

The Helix Producer I vessel is crucial for processing hydrocarbons efficiently and safely, enhancing production capabilities for clients.

What risks are associated with Helix Energy's contract with Talos Energy?

Contract performance risks include potential market volatility and operational challenges, which could impact revenue.