Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 20, 2022 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-32936 | |
Entity Registrant Name | HELIX ENERGY SOLUTIONS GROUP, INC. | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 95-3409686 | |
Entity Address, Address Line One | 3505 West Sam Houston Parkway North | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77043 | |
City Area Code | 281 | |
Local Phone Number | 618–0400 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | HLX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 151,821,116 | |
Entity Central Index Key | 0000866829 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 162,268 | $ 253,515 |
Restricted cash | 2,506 | 73,612 |
Accounts receivable, net of allowance for credit losses of $2,187 and $1,477, respectively | 228,043 | 144,137 |
Other current assets | 83,301 | 58,274 |
Total current assets | 476,118 | 529,538 |
Property and equipment | 2,945,654 | 2,938,154 |
Less accumulated depreciation | (1,337,814) | (1,280,509) |
Property and equipment, net | 1,607,840 | 1,657,645 |
Operating lease right-of-use assets | 209,351 | 104,190 |
Other assets, net | 62,188 | 34,655 |
Total assets | 2,355,497 | 2,326,028 |
Current liabilities: | ||
Accounts payable | 131,898 | 87,959 |
Accrued liabilities | 112,321 | 91,712 |
Current maturities of long-term debt | 38,154 | 42,873 |
Current operating lease liabilities | 48,102 | 55,739 |
Total current liabilities | 330,475 | 278,283 |
Long-term debt | 225,427 | 262,137 |
Operating lease liabilities | 166,916 | 50,198 |
Deferred tax liabilities | 97,373 | 86,966 |
Other non-current liabilities | 53,452 | 975 |
Total liabilities | 873,643 | 678,559 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, no par, 240,000 shares authorized, 151,808 and 151,124 shares issued, respectively | 1,297,296 | 1,292,479 |
Retained earnings | 320,579 | 411,072 |
Accumulated other comprehensive loss | (136,021) | (56,082) |
Total shareholders' equity | 1,481,854 | 1,647,469 |
Total liabilities and shareholders' equity | $ 2,355,497 | $ 2,326,028 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Allowance for credit losses | $ 2,187 | $ 1,477 |
Shareholders' equity: | ||
Common stock, par value (USD per share) | $ 0 | $ 0 |
Common stock, shares authorized | 240,000 | 240,000 |
Common stock, shares issued | 151,808 | 151,124 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Net revenues | $ 272,547 | $ 180,716 | $ 585,284 | $ 506,072 |
Cost of sales | 233,332 | 177,716 | 566,032 | 485,318 |
Gross profit | 39,215 | 3,000 | 19,252 | 20,754 |
Gain (loss) on disposition of assets, net | 15 | (631) | ||
Acquisition and integration costs | (762) | (2,349) | ||
Change in fair value of contingent consideration | (2,664) | (2,664) | ||
Selling, general and administrative expenses | (23,563) | (13,346) | (53,966) | (41,950) |
Income (loss) from operations | 12,226 | (10,331) | (39,727) | (21,827) |
Equity in earnings of investment | 78 | 8,262 | ||
Net interest expense | (4,644) | (5,928) | (14,617) | (17,900) |
Loss on extinguishment of long-term debt | (124) | (124) | ||
Other expense, net | (20,271) | (4,015) | (37,623) | (1,438) |
Royalty income and other | 348 | 297 | 3,286 | 2,603 |
Loss before income taxes | (12,263) | (20,101) | (80,419) | (38,686) |
Income tax provision (benefit) | 6,500 | (1,058) | 10,074 | (2,910) |
Net loss | (18,763) | (19,043) | (90,493) | (35,776) |
Net loss attributable to redeemable noncontrolling interests | (146) | |||
Net loss attributable to common shareholders | $ (18,763) | $ (19,043) | $ (90,493) | $ (35,630) |
Loss per share of common stock: | ||||
Basic | $ (0.12) | $ (0.13) | $ (0.60) | $ (0.24) |
Diluted | $ (0.12) | $ (0.13) | $ (0.60) | $ (0.24) |
Weighted average common shares outstanding (in shares) | ||||
Basic | 151,331 | 150,088 | 151,226 | 150,018 |
Diluted | 151,331 | 150,088 | 151,226 | 150,018 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (18,763) | $ (19,043) | $ (90,493) | $ (35,776) |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation loss | (33,453) | (13,447) | (79,939) | (6,478) |
Other comprehensive loss, net of tax | (33,453) | (13,447) | (79,939) | (6,478) |
Comprehensive loss | (52,216) | (32,490) | (170,432) | (42,254) |
Less comprehensive loss attributable to redeemable noncontrolling interests: | ||||
Net loss | (146) | |||
Foreign currency translation gain | 48 | |||
Comprehensive loss attributable to redeemable noncontrolling interests | (98) | |||
Comprehensive loss attributable to common shareholders | $ (52,216) | $ (32,490) | $ (170,432) | $ (42,156) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock Cumulative Effect, Period of Adoption | Common Stock | Retained Earnings Cumulative Effect, Period of Adoption | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption | Total |
Balance, beginning of period (Accounting Standards Update 2020-06) at Dec. 31, 2020 | $ (41,456) | $ 6,682 | $ (34,774) | ||||
Balance, beginning of period at Dec. 31, 2020 | $ 1,327,592 | $ 464,524 | $ (51,620) | $ 1,740,496 | |||
Balance, beginning of period (in shares) at Dec. 31, 2020 | 150,341 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (35,630) | (35,630) | |||||
Foreign currency translation adjustments | (6,478) | (6,478) | |||||
Accretion of redeemable noncontrolling interests | 1,489 | 1,489 | |||||
Activity in company stock plans, net and other | $ (1,052) | (1,052) | |||||
Activity in company stock plans, net and other (in shares) | 535 | ||||||
Share-based compensation | $ 5,613 | 5,613 | |||||
Balance, end of period at Sep. 30, 2021 | $ 1,290,697 | 437,065 | (58,098) | 1,669,664 | |||
Balance, end of period (in shares) at Sep. 30, 2021 | 150,876 | ||||||
Balance, beginning of period at Dec. 31, 2020 | 3,855 | ||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | |||||||
Net income (loss) | (146) | ||||||
Foreign currency translation adjustments related to redeemable noncontrolling interests | 48 | ||||||
Accretion of redeemable noncontrolling interests | (1,489) | ||||||
Acquisition of redeemable noncontrolling interests | (2,268) | ||||||
Balance, beginning of period at Jun. 30, 2021 | $ 1,288,603 | 456,108 | (44,651) | 1,700,060 | |||
Balance, beginning of period (in shares) at Jun. 30, 2021 | 150,787 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (19,043) | (19,043) | |||||
Foreign currency translation adjustments | (13,447) | (13,447) | |||||
Activity in company stock plans, net and other | $ 262 | 262 | |||||
Activity in company stock plans, net and other (in shares) | 89 | ||||||
Share-based compensation | $ 1,832 | 1,832 | |||||
Balance, end of period at Sep. 30, 2021 | $ 1,290,697 | 437,065 | (58,098) | 1,669,664 | |||
Balance, end of period (in shares) at Sep. 30, 2021 | 150,876 | ||||||
Balance, beginning of period at Dec. 31, 2021 | $ 1,292,479 | 411,072 | (56,082) | 1,647,469 | |||
Balance, beginning of period (in shares) at Dec. 31, 2021 | 151,124 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (90,493) | (90,493) | |||||
Foreign currency translation adjustments | (79,939) | (79,939) | |||||
Activity in company stock plans, net and other | $ (673) | (673) | |||||
Activity in company stock plans, net and other (in shares) | 684 | ||||||
Share-based compensation | $ 5,490 | 5,490 | |||||
Balance, end of period at Sep. 30, 2022 | $ 1,297,296 | 320,579 | (136,021) | 1,481,854 | |||
Balance, end of period (in shares) at Sep. 30, 2022 | 151,808 | ||||||
Balance, beginning of period at Jun. 30, 2022 | $ 1,295,016 | 339,342 | (102,568) | 1,531,790 | |||
Balance, beginning of period (in shares) at Jun. 30, 2022 | 151,714 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net loss | (18,763) | (18,763) | |||||
Foreign currency translation adjustments | (33,453) | (33,453) | |||||
Activity in company stock plans, net and other | $ 274 | 274 | |||||
Activity in company stock plans, net and other (in shares) | 94 | ||||||
Share-based compensation | $ 2,006 | 2,006 | |||||
Balance, end of period at Sep. 30, 2022 | $ 1,297,296 | $ 320,579 | $ (136,021) | $ 1,481,854 | |||
Balance, end of period (in shares) at Sep. 30, 2022 | 151,808 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (90,493) | $ (35,776) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 102,590 | 106,226 |
Amortization of debt issuance costs | 1,744 | 2,596 |
Share-based compensation | 5,630 | 5,783 |
Deferred income taxes | 2,876 | (10,375) |
Equity in earnings of investment | (8,262) | |
Loss on disposition of assets, net | 631 | |
Loss on extinguishment of long-term debt | 124 | |
Unrealized foreign currency loss | 38,374 | 2,041 |
Change in fair value of contingent consideration | 2,664 | |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (50,268) | (6,631) |
Other current assets | (19,888) | 16,604 |
Income tax payable, net of income tax receivable | 1,818 | 20,912 |
Accounts payable and accrued liabilities | 47,266 | 28,577 |
Other, net | 32,655 | 9,460 |
Net cash provided by operating activities | 1,396 | 121,252 |
Cash flows from investing activities: | ||
Alliance acquisition, net of cash acquired | (112,625) | |
Capital expenditures | (4,990) | (7,386) |
Distribution from equity investment, net | 7,840 | |
Proceeds from sale of assets | 51 | |
Net cash used in investing activities | (109,775) | (7,335) |
Cash flows from financing activities: | ||
Repayment of convertible senior notes | (35,000) | |
Debt issuance costs | (550) | (1,209) |
Acquisition of redeemable noncontrolling interests | (2,268) | |
Payments related to tax withholding for share-based compensation | (1,525) | (1,878) |
Proceeds from issuance of ESPP shares | 575 | 654 |
Net cash used in financing activities | (44,437) | (95,659) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (9,537) | (747) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (162,353) | 17,511 |
Cash and cash equivalents and restricted cash: | ||
Balance, beginning of year | 327,127 | 291,320 |
Balance, end of period | 164,774 | 308,831 |
Term Loan Repaid September 2021 | ||
Cash flows from financing activities: | ||
Repayment of loan debt | (29,826) | |
Nordea Q5000 Loan Matured January 2021 | ||
Cash flows from financing activities: | ||
Repayment of loan debt | (53,572) | |
MARAD Debt (matures February 2027) | ||
Cash flows from financing activities: | ||
Repayment of loan debt | $ (7,937) | $ (7,560) |
Basis Of Presentation And New A
Basis Of Presentation And New Accounting Standards | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation And New Accounting Standards | Note 1 — Basis of Presentation and New Accounting Standards The accompanying condensed consolidated financial statements include the accounts of Helix Energy Solutions Group, Inc. and its subsidiaries (collectively, “Helix”). Unless the context indicates otherwise, the terms “we,” “us” and “our” in this report refer collectively to Helix and its subsidiaries. All material intercompany accounts and transactions have been eliminated. These unaudited condensed consolidated financial statements in U.S. dollars have been prepared in accordance with instructions for the Quarterly Report on Form 10-Q required to be filed with the Securities and Exchange Commission (the “SEC”) and do not include all information and footnotes normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). On July 1, 2022, we completed our acquisition of all of the equity interests of the Alliance group of companies (collectively “Alliance”). The condensed consolidated financial statements prior to July 1, 2022 reflect only the historical results of Helix. The condensed consolidated financial statements since the completion of the Alliance acquisition have included the results of Helix Alliance using the acquisition method of accounting. See Note 3 for additional information regarding the Alliance acquisition. The preparation of these financial statements requires us to make estimates and judgments that affect the amounts reported in the financial statements and the related disclosures. Actual results may differ from our estimates. We have made all adjustments, which, unless otherwise disclosed, are of normal recurring nature, that we believe are necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive loss, statements of shareholders’ equity and statements of cash flows, as applicable. The operating results for the three- and nine-month periods ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. Our balance sheet as of December 31, 2021 included herein has been derived from the audited balance sheet as of December 31, 2021 included in our 2021 Annual Report on Form 10-K (our “2021 Form 10-K”). These unaudited condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and notes thereto included in our 2021 Form 10-K. Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current presentation format. We do not expect any recently issued accounting standards to have a material impact on our financial position, results of operations or cash flows when they become effective. |
Company Overview
Company Overview | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company Overview | Note 2 — Company Overview We are 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 on a three-legged business model: ● Production maximization — our assets and methodologies are specifically designed to efficiently enhance and extend the lives of existing oil and gas reserves; we also offer an alternative to take over end-of-life reserves in preparation for their abandonment; ● Decommissioning — we have historical success as a full-field abandonment contractor and believe that regulatory push for plug and abandonment (“P&A”) and transition to renewable energy will facilitate the continued growth of abandonment backlog; and ● Renewable energy support — we are an established global leader in jet trenching and continue to seek to provide specialty support services to offshore wind farm developments, including boulder removal and unexploded ordnance clearance. We provide services primarily in deepwater in the Gulf of Mexico, Brazil, North Sea, Asia Pacific and West Africa regions. We have expanded our service capabilities to shallow waters in the Gulf of Mexico with the Alliance acquisition on July 1, 2022 (Note 3). Our North Sea operations and our Gulf of Mexico shelf operations related to our Alliance acquisition are subject to seasonal changes in demand, which generally peaks in the summer months and declines in the winter months. Our services are segregated into four reportable business segments: Well Intervention, Robotics, Production Facilities and our new reporting segment, Shallow Water Abandonment, which was formed in the third quarter 2022 comprising the Helix Alliance business (Note 11). Our Well Intervention segment provides services enabling our customers to safely access offshore wells for the purpose of performing production enhancement or decommissioning operations, thereby avoiding drilling new wells by extending the useful lives of existing wells and preserving the environment by preventing uncontrolled releases of oil and gas. Our well intervention vessels include the Q4000 Q5000 Q7000 Seawell Well Enhancer Siem H 1 Siem Helix 2 Our Robotics segment provides offshore construction, trenching, seabed clearance, and inspection, repair and maintenance (“IRM”) services to both the oil and gas and the renewable energy markets globally, thereby assisting the delivery of affordable and reliable energy and supporting the responsible transition away from a carbon-based economy. Additionally, our Robotics services are used in and complement our well intervention services. Our Robotics segment mainly includes remotely operated vehicles (“ROVs”), trenchers and robotics support vessels under term charters as well as spot vessels as needed. Our Production Facilities segment includes the Helix Producer I HP I HP I Q4000 Q5000 Our Shallow Water Abandonment segment provides services in support of the upstream and midstream industries in the Gulf of Mexico shelf, including offshore oil field decommissioning and reclamation, project management, engineered solutions, intervention, maintenance, repair, heavy lift and commercial diving services. Our Shallow Water Abandonment segment includes a diversified fleet of marine assets including liftboats, offshore supply vessels (“OSVs”), dive support vessels (“DSVs”), a heavy lift derrick barge, a crew boat, P&A systems, coiled tubing systems and other miscellaneous assets. |
Alliance Acquisition
Alliance Acquisition | 9 Months Ended |
Sep. 30, 2022 | |
Alliance Acquisition | |
Alliance Acquisition | Note 3 — Alliance Acquisition On July 1, 2022, we completed our acquisition of all of the equity interests of Alliance. The Alliance acquisition extends our energy transition strategy by adding shallow-water capabilities into what we expect to be a growing offshore decommissioning market. The aggregate preliminary purchase price of the Alliance acquisition was $145.7 million, consisting of $119.0 million with cash on hand and the estimated fair value of $26.7 million of contingent consideration related to the post-closing earn-out consideration. The earn-out is payable in 2024 to the seller in the Alliance transaction in either cash or shares of our common stock pursuant to the terms of the Equity Purchase Agreement (the “Equity Purchase Agreement”) dated May 16, 2022 by and among Helix Alliance Decom, LLC, the seller and Helix. The earn-out is not capped and is calculated based on certain financial metrics of the Helix Alliance business for 2022 and 2023 relative to amounts as set forth in the Equity Purchase Agreement. The Alliance acquisition has been accounted for using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. The purchase price consideration has been allocated to the assets acquired and liabilities assumed of Alliance based upon preliminary estimate of their fair values as of the acquisition date. Fair values of the assets acquired and liabilities assumed are measured in accordance with ASC Topic 820, Fair Value Measurement, using discounted cash flows and other applicable valuation techniques. For certain assets and liabilities, those fair values are consistent with historical carrying values. The following table summarizes the purchase consideration and the preliminary purchase price allocation to estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): July 1, 2022 Cash consideration $ 118,961 Contingent consideration 26,700 Total fair value of consideration transferred $ 145,661 Assets acquired: Cash and cash equivalents $ 6,336 Accounts receivable (1) 43,378 Other current assets 4,879 Property and equipment 118,619 Operating lease right-of-use assets 1,205 Intangible assets 1,400 Other assets 2,133 Total assets acquired $ 177,950 Liabilities assumed: Accounts payable $ 20,480 Accrued liabilities 3,073 Operating lease liabilities 1,205 Deferred tax liabilities 7,531 Total liabilities assumed 32,289 Net assets acquired $ 145,661 (1) The gross contractual accounts receivable totaled $44.2 million . The fair value of accounts receivable reflects our best estimate at the acquisition date of contractual cash flows not expected to be collected. The purchase price allocation is subject to revision as acquisition-date fair value analyses are completed and if additional information about facts and circumstances that existed at the acquisition date becomes available. The purchase price consideration, as well as the estimated fair values of the assets acquired and liabilities assumed, will be finalized as soon as practicable, but no later than one year from the closing of the Alliance acquisition. Acquisition and integration costs consist of legal and professional fees as well as costs incurred to integrate Alliance’s operations and systems and to align its financial processes and procedures with those of Helix. Those costs are expensed as incurred and are presented separately from “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of operations. Also presented separately are the changes in fair value of the contingent earn-out consideration (Note 16). The pro forma summary below presents the results of operations as if the Alliance acquisition had occurred on January 1, 2021 and includes transaction accounting adjustments such as incremental depreciation and amortization expense from acquired tangible and intangible assets, elimination of interest expense on Alliance’s long-term debt that was paid off, acquisition and integration cost accruals, and tax-related effects. The following table summarizes the pro forma results of Helix and Alliance (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues $ 272,547 $ 228,574 $ 665,021 $ 591,179 Net loss (18,763) (8,828) (81,069) (29,620) |
Details Of Certain Accounts
Details Of Certain Accounts | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Details Of Certain Accounts | Note 4 — Details of Certain Accounts Other current assets consist of the following (in thousands): September 30, December 31, 2022 2021 Contract assets (Note 8) $ 746 $ 639 Prepaids 30,371 18,228 Deferred costs (Note 8) 13,634 2,967 Income tax receivable — 1,116 Other receivable (Note 12) 30,052 28,805 Other 8,498 6,519 Total other current assets $ 83,301 $ 58,274 Other assets, net consist of the following (in thousands): September 30, December 31, 2022 2021 Deferred recertification and dry dock costs, net $ 37,732 $ 16,291 Deferred costs (Note 8) 4,873 381 Prepaid charter (1) 12,544 12,544 Intangible assets with finite lives, net 4,335 3,472 Other 2,704 1,967 Total other assets, net $ 62,188 $ 34,655 (1) Represents prepayments to the owner of the Siem Helix 1 and the Siem Helix 2 to offset certain payment obligations associated with the vessels at the end of their respective charter term. Accrued liabilities consist of the following (in thousands): September 30, December 31, 2022 2021 Accrued payroll and related benefits $ 39,548 $ 28,657 Accrued interest 2,116 6,746 Income tax payable 1,614 — Deferred revenue (Note 8) 20,840 8,272 Asset retirement obligations (Note 12) 30,961 29,658 Other 17,242 18,379 Total accrued liabilities $ 112,321 $ 91,712 Other non-current liabilities consist of the following (in thousands): September 30, December 31, 2022 2021 Deferred revenue (Note 8) $ — $ 476 Asset retirement obligations (Note 12) 23,763 — Contingent consideration (Note 16) 29,364 — Other 325 499 Total other non-current liabilities $ 53,452 $ 975 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 5 — Leases We charter vessels and lease facilities and equipment under non-cancelable contracts that expire on various dates through 2031. The majority of the increases in our operating leases during the nine-month period ended September 30, 2022 are related to the vessel charter extensions for the Siem Helix 1 Siem Helix 2 Grand Canyon II Grand Canyon III Shelia Bordelon The following table details the components of our lease cost (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Operating lease cost $ 16,088 $ 14,336 $ 44,348 $ 45,391 Variable lease cost 4,488 4,298 14,035 11,417 Short-term lease cost 9,112 6,258 22,121 13,233 Sublease income (300) (289) (930) (967) Net lease cost $ 29,388 $ 24,603 $ 79,574 $ 69,074 Maturities of our operating lease liabilities as of September 30, 2022 are as follows (in thousands): Facilities and Vessels Equipment Total Less than one year $ 56,405 $ 6,334 $ 62,739 One to two years 57,040 5,753 62,793 Two to three years 47,724 3,390 51,114 Three to four years 35,200 867 36,067 Four to five years 30,569 885 31,454 Over five years 7,589 2,790 10,379 Total lease payments $ 234,527 $ 20,019 $ 254,546 Less: imputed interest (36,767) (2,761) (39,528) Total operating lease liabilities $ 197,760 $ 17,258 $ 215,018 Current operating lease liabilities $ 42,621 $ 5,481 $ 48,102 Non-current operating lease liabilities 155,139 11,777 166,916 Total operating lease liabilities $ 197,760 $ 17,258 $ 215,018 Maturities of our operating lease liabilities as of December 31, 2021 are as follows (in thousands): Facilities and Vessels Equipment Total Less than one year $ 55,573 $ 5,601 $ 61,174 One to two years 34,580 4,844 39,424 Two to three years 2,470 4,514 6,984 Three to four years — 2,462 2,462 Four to five years — 1,074 1,074 Over five years — 4,193 4,193 Total lease payments $ 92,623 $ 22,688 $ 115,311 Less: imputed interest (5,633) (3,741) (9,374) Total operating lease liabilities $ 86,990 $ 18,947 $ 105,937 Current operating lease liabilities $ 51,035 $ 4,704 $ 55,739 Non-current operating lease liabilities 35,955 14,243 50,198 Total operating lease liabilities $ 86,990 $ 18,947 $ 105,937 The following table presents the weighted average remaining lease term and discount rate: September 30, December 31, 2022 2021 Weighted average remaining lease term 4.2 years 2.4 years Weighted average discount rate 7.83 % 7.57 % The following table presents other information related to our operating leases (in thousands): Nine Months Ended September 30, 2022 2021 Cash paid for operating lease liabilities $ 43,342 $ 46,141 Right-of-use assets obtained in exchange for new operating lease obligations 143,357 5,975 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Note 6 — Long-Term Debt Scheduled maturities of our long-term debt outstanding as of September 30, 2022 are as follows (in thousands): 2023 2026 MARAD Notes Notes Debt Total Less than one year $ 30,000 $ — $ 8,333 $ 38,333 One to two years — — 8,749 8,749 Two to three years — — 9,186 9,186 Three to four years — 200,000 9,644 209,644 Four to five years — — 5,001 5,001 Gross debt 30,000 200,000 40,913 270,913 Unamortized debt issuance costs (1) (179) (4,958) (2,195) (7,332) Total debt 29,821 195,042 38,718 263,581 Less current maturities (29,821) — (8,333) (38,154) Long-term debt $ — $ 195,042 $ 30,385 $ 225,427 (1) Debt issuance costs are amortized to interest expense over the term of the applicable debt agreement. Below is a summary of certain components of our indebtedness: Credit Agreement On September 30, 2021 we entered into an asset-based credit agreement with Bank of America, N.A. (“Bank of America”), Wells Fargo Bank, N.A. and Zions Bancorporation and on July 1, 2022 we entered into a first amendment to the credit agreement (collectively, the “Amended ABL Facility”). The Amended ABL Facility provides for an $100 million asset-based revolving credit facility, which matures on September 30, 2026, with a springing maturity 91 days prior to the maturity of any outstanding indebtedness with a principal amount in excess of $50 million. The Amended ABL Facility also permits us to request an increase of the facility by up to $50 million, subject to certain conditions. Commitments under the Amended ABL Facility are comprised of separate U.S. and U.K. revolving credit facility commitments of $65 million and $35 million, respectively. The Amended ABL Facility provides funding based on a borrowing base calculation that includes eligible U.S. and U.K. customer accounts receivable and cash, and provides for a $10 million sub-limit for the issuance of letters of credit. As of September 30, 2022, we had no borrowings under the Amended ABL Facility, and our available borrowing capacity under that facility, based on the borrowing base, totaled $81.8 million, net of $2.2 million of letters of credit issued under that facility. We and certain of our U.S. and U.K. subsidiaries including Helix Alliance are the current borrowers under the Amended ABL Facility, whose obligations under the Amended ABL Facility are guaranteed by those borrowers and certain other U.S. and U.K. subsidiaries, excluding Cal Dive I – Title XI, Inc. (“CDI Title XI”), Helix Offshore Services Limited and certain other enumerated subsidiaries. Other subsidiaries may be added as guarantors of the facility in the future. The Amended ABL Facility is secured by all accounts receivable and designated deposit accounts of the U.S. borrowers and guarantors, and by substantially all of the assets of the U.K. borrowers and guarantors. U.S. borrowings under the Amended ABL Facility bear interest at the Term SOFR (also known as CME Term SOFR as administered by CME Group, Inc.) rate plus a margin of 1.50% to 2.00% or at a base rate plus a margin of 0.50% to 1.00%. U.K. borrowings under the Amended ABL Facility denominated in U.S. dollars bear interest at the Term SOFR rate The Amended ABL Facility includes certain limitations on our ability to incur additional indebtedness, grant liens on assets, pay dividends and make distributions on equity interests, dispose of assets, make investments, repay certain indebtedness, engage in mergers, and other matters, in each case subject to certain exceptions. The Amended ABL Facility contains customary default provisions which, if triggered, could result in acceleration of all amounts then outstanding. The Amended ABL Facility requires us to satisfy and maintain a fixed charge coverage ratio of not less than 1.0 to 1.0 if availability is less than the greater of 10% of the borrowing base or $10 million. The Amended ABL Facility also requires us to maintain a pro forma minimum excess availability of $20 million for the 91 days prior to the maturity of each of our outstanding convertible senior notes. The Amended ABL Facility also (i) limits the amount of permitted debt for the deferred purchase price of property not to exceed $50 million, (ii) establishes an excess availability requirement for the portion of any post-closing earn-out consideration related to our acquisition of Alliance that will be paid in cash (Note 3), and (iii) provides for potential pricing adjustments based on specific metrics and performance targets determined by us and Bank of America, as agent with respect to the Amended ABL Facility, related to environmental, social and governance (“ESG”) changes implemented by us in our business. Convertible Senior Notes Due 2022 (“2022 Notes”) We fully redeemed the $35 million remaining principal amount of the 2022 Notes plus accrued interest by delivering cash upon maturity on May 1, 2022. The effective interest rate for the 2022 Notes was 4.8%. For the nine month periods ended September 30, 2022, total interest expense related to the 2022 Notes was $0.6 million, primarily from coupon interest expense. For the three- and nine-month periods ended September 30, 2021, total interest expense related to the 2022 Notes was $0.4 million and $1.3 million, respectively, with coupon interest expense of $0.4 million and $1.1 million, respectively, and the amortization of issuance costs of $0.2 million for the nine-month period ended September 30, 2021. Convertible Senior Notes Due 2023 (“2023 Notes”) The 2023 Notes bear interest at a coupon interest rate of 4.125% per annum payable semi-annually in arrears on March 15 and September 15 of each year until maturity. The 2023 Notes mature on September 15, 2023 unless earlier converted, redeemed or repurchased by us. The 2023 Notes are convertible by their holders at any time beginning March 15, 2023 at an initial conversion rate of 105.6133 shares of our common stock per $1,000 principal amount, which currently represents 3,168,399 potentially convertible shares at an initial conversion price of approximately $9.47 per share of common stock. Upon conversion, we have the right to satisfy our conversion obligation by delivering cash, shares of our common stock or any combination thereof. Prior to March 15, 2023, holders of the 2023 Notes may convert their notes if the closing price of our common stock exceeds 130% of the conversion price for at least 20 days in the period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter (share price condition) or if the trading price of the 2023 Notes is equal to or less than 97% of the conversion value of the notes during the five consecutive business days immediately after any ten consecutive trading day period (trading price condition). Holders of the 2023 Notes may also convert their notes if we make certain distributions on shares of our common stock or engage in certain corporate transactions, in which case the holders may be entitled to an increase in the conversion rate, depending on the price of our common shares and the time remaining to maturity, of up to 47.5260 shares of our common stock per $1,000 principal amount. Prior to March 15, 2021, the 2023 Notes were not redeemable. On or after March 15, 2021, we may redeem all or any portion of the 2023 Notes if the price of our common stock has been at least 130% of the conversion price for at least 20 trading days during any 30 consecutive trading day period preceding our redemption notice. Any redemption would be payable in cash equal to 100% of the principal amount to be redeemed plus accrued and unpaid interest and a “make-whole premium” calculated as the present value of all remaining scheduled interest payments. Holders of the 2023 Notes may convert any of their notes if we call the notes for redemption. Holders of the 2023 Notes may also require us to repurchase the notes following a “fundamental change,” which includes a change of control or a termination of trading of our common stock (as defined in the indenture governing the 2023 Notes). The indenture governing the 2023 Notes contains customary terms and covenants, including that upon certain events of default, the entire principal amount of and any accrued interest on the notes may be declared immediately due and payable. In the case of certain events of bankruptcy, insolvency or reorganization relating to us or a significant subsidiary, the principal amount of the 2023 Notes together with any accrued interest will become immediately due and payable. The effective interest rate for the 2023 Notes is 4.8%. For the three- and nine-month periods ended September 30, 2022, total interest expense related to the 2023 Notes was $0.4 million and $1.1 million, respectively, with coupon interest expense of $0.3 million and $0.9 million, respectively, and the amortization of debt issuance costs of $0.1 million for the nine-month period ended September 30, 2022. For the three- and nine-month periods ended September 30, 2021, total interest expense related to the 2023 Notes was $0.3 million and $1.0 million, respectively, with coupon interest expense of $0.3 million and $0.9 million, respectively, and the amortization of issuance costs of $0.1 million for the nine-month period ended September 30, 2021. Convertible Senior Notes Due 2026 (“2026 Notes”) The 2026 Notes bear interest at a coupon interest rate of 6.75% per annum payable semi-annually in arrears on February 15 and August 15 of each year, beginning February 15, 2021 until maturity. The 2026 Notes mature on February 15, 2026 unless earlier converted, redeemed or repurchased by us. The 2026 Notes are convertible by their holders at any time beginning November 17, 2025 at an initial conversion rate of 143.3795 shares of our common stock per $1,000 principal amount, which currently represents 28,675,900 potentially convertible shares at an initial conversion price of approximately $6.97 per share of common stock. Upon conversion, we have the right to satisfy our conversion obligation by delivering cash, shares of our common stock or any combination thereof. Prior to November 17, 2025, holders of the 2026 Notes may convert their notes if the closing price of our common stock exceeds 130% of the conversion price for at least 20 days in the period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter (share price condition) or if the trading price of the 2026 Notes is equal to or less than 97% of the conversion value of the notes during the five consecutive business days immediately after any ten consecutive trading day period (trading price condition). Holders of the 2026 Notes may also convert their notes if we make certain distributions on shares of our common stock or engage in certain corporate transactions, in which case the holders may be entitled to an increase in the conversion rate, depending on the price of our common shares and the time remaining to maturity, of up to 64.5207 shares of our common stock per $1,000 principal amount. Prior to August 15, 2023, the 2026 Notes are not redeemable. On or after August 15, 2023, we may redeem all or any portion of the 2026 Notes if the price of our common stock has been at least 130% of the conversion price for at least 20 trading days during any 30 consecutive trading day period preceding our redemption notice. Any redemption would be payable in cash equal to 100% of the principal amount plus accrued and unpaid interest and a “make-whole premium” calculated as the present value of all remaining scheduled interest payments. Holders of the 2026 Notes may convert any of their notes if we call the notes for redemption. Holders of the 2026 Notes may also require us to repurchase the notes following a “fundamental change,” which includes a change of control or a termination of trading of our common stock (as defined in the indenture governing the 2026 Notes). The indenture governing the 2026 Notes contains customary terms and covenants, including that upon certain events of default, the entire principal amount of and any accrued interest on the notes may be declared immediately due and payable. In the case of certain events of bankruptcy, insolvency or reorganization relating to us or a significant subsidiary, the principal amount of the 2026 Notes together with any accrued interest will become immediately due and payable. The effective interest rate for the 2026 Notes is 7.6%. For the three- and nine-month periods ended September 30, 2022, total interest expense related to the 2026 Notes was $3.7 million and $11.1 million, respectively, with coupon interest expense of $3.4 million and $10.1 million, respectively, and the amortization of debt issuance costs of $0.3 million and $1.0 million, respectively. For the three- and nine-month periods ended September 30, 2021, total interest expense related to the 2026 Notes was $3.7 million and $11.0 million, respectively, with coupon interest expense of $3.4 million and $10.1 million, respectively, and the amortization of debt issuance costs of $0.3 million and $0.9 million, respectively. 2026 Capped Calls In connection with the 2026 Notes offering, we entered into capped call transactions (the “2026 Capped Calls”) with three separate option counterparties. The 2026 Capped Calls are for an aggregate of 28,675,900 shares of our common stock, which corresponds to the shares into which the 2026 Notes are initially convertible. The capped call shares are subject to certain anti-dilution adjustments. Each capped call option has an initial strike price of approximately $6.97 per share, which corresponds to the initial conversion price of the 2026 Notes, and an initial cap price of approximately $8.42 per share. The strike and cap prices are subject to certain adjustments. The 2026 Capped Calls are intended to offset some or all of the potential dilution to Helix common shares caused by any conversion of the 2026 Notes up to the cap price. The 2026 Capped Calls can be settled in either net shares or cash at our option in components commencing December 15, 2025 and ending February 12, 2026, which could be extended under certain circumstances. The 2026 Capped Calls are subject to either adjustment or termination upon the occurrence of specified extraordinary events affecting Helix, including a merger, tender offer, nationalization, insolvency or delisting. In addition, certain events may result in a termination of the 2026 Capped Calls, including changes in law, insolvency filings and hedging disruptions. The 2026 Capped Calls are recorded at their aggregate cost of $10.6 million as a reduction to common stock in the shareholders’ equity section of our condensed consolidated balance sheets. MARAD Debt In 2005, Helix’s subsidiary CDI – Title XI issued its U.S. Government Guaranteed Ship Financing Bonds, Q4000 Series, to refinance the construction financing originally granted in 2002 of the Q4000 Q4000 Q4000 Q4000 Other In accordance with the Amended ABL Facility, the 2023 Notes, the 2026 Notes and the MARAD Debt, we are required to comply with certain covenants, including minimum liquidity and a springing fixed charge coverage ratio (applicable under certain conditions that are currently not applicable) with respect to the Amended ABL Facility and the maintenance of net worth, working capital and debt-to-equity requirements with respect to the MARAD Debt. As of September 30, 2022, we were in compliance with these covenants. We previously had a credit agreement (and the amendments made thereafter, collectively the “Credit Agreement”) with a group of lenders led by Bank of America. The Credit Agreement was comprised of a term loan (the “Term Loan”) and a revolving credit facility (the “Revolving Credit Facility”) with a maximum availability of $175 million and had a maturity date of December 31, 2021. Concurrent with our entering into the ABL Facility on September 30, 2021, the Credit Agreement was terminated, the $28 million remaining balance of the Term Loan was repaid in full and the letters of credit issued under the Revolving Credit Facility were transferred to the ABL Facility. We had no borrowings under the Revolving Credit Facility. We previously had a credit agreement with a syndicated bank lending group for a term loan (the “Nordea Q5000 Loan”) to finance the construction of the Q5000 Q5000 The following table details the components of our net interest expense (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Interest expense $ 4,923 $ 6,097 $ 15,264 $ 18,152 Interest income (279) (169) (647) (252) Net interest expense $ 4,644 $ 5,928 $ 14,617 $ 17,900 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 — Income Taxes We operate in multiple jurisdictions with complex tax laws subject to interpretation and judgment. We believe that our application of such laws and the tax impact thereof are reasonable and fairly presented in our condensed consolidated financial statements. For the three- and nine-month periods ended September 30, 2022, we recognized income tax expense of $6.5 million and $10.1 million, respectively, resulting in effective tax rates of (53.0)% and (12.5)%, respectively. For these periods our aggregate tax expense was greater than the aggregate tax benefit of our losses primarily due to non-creditable foreign income and deemed profit taxes as well as unbenefited tax losses, resulting in negative effective tax rates. Furthermore, our mix of earnings was impacted by the acquisition of Alliance, resulting in increased U.S. earnings and tax expense as compared to the same periods in 2021. For the three- and nine-month periods ended September 30, 2021, we recognized income tax benefit of $1.1 million and $2.9 million, respectively, resulting in effective tax rates of 5.3% and 7.5%, respectively. These variances were primarily attributable to the earnings mix between our higher and lower tax rate jurisdictions as well as losses for which no financial statement benefits have been recognized. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | Note 8 — Revenue from Contracts with Customers Disaggregation of Revenue Our revenues are primarily derived from short-term and long-term service contracts with customers. Our service contracts generally contain either provisions for specific time, material and equipment charges that are billed in accordance with the terms of such contracts (dayrate contracts) or lump sum payment provisions (lump sum contracts). We record revenues net of taxes collected from customers and remitted to governmental authorities. Contracts are classified as long-term if all or part of the contract is to be performed over a period extending beyond 12 months from the effective date of the contract. Long-term contracts may include multi-year agreements whereby the commitment for services in any one year may be short in duration. The following table provides information about disaggregated revenue by contract duration (in thousands): Well Shallow Water Production Intercompany Total Intervention Robotics Abandonment Facilities Eliminations Revenue Three months ended September 30, 2022 Short-term $ 111,378 $ 26,695 $ 67,401 $ — $ (135) $ 205,339 Long-term 32,547 29,487 — 18,448 (13,274) 67,208 Total $ 143,925 $ 56,182 $ 67,401 $ 18,448 $ (13,409) $ 272,547 Three months ended September 30, 2021 Short-term $ 92,954 $ 30,186 $ — $ — $ — $ 123,140 Long-term 38,360 12,437 — 18,552 (11,773) 57,576 Total $ 131,314 $ 42,623 $ — $ 18,552 $ (11,773) $ 180,716 Nine months ended September 30, 2022 Short-term $ 288,772 $ 73,684 $ 67,401 $ — $ (770) $ 429,087 Long-term 67,811 69,699 — 54,420 (35,733) 156,197 Total $ 356,583 $ 143,383 $ 67,401 $ 54,420 $ (36,503) $ 585,284 Nine months ended September 30, 2021 Short-term $ 218,840 $ 60,605 $ — $ — $ — $ 279,445 Long-term 178,547 35,825 — 49,217 (36,962) 226,627 Total $ 397,387 $ 96,430 $ — $ 49,217 $ (36,962) $ 506,072 Contract Balances Accounts receivable are recognized when our right to consideration becomes unconditional. Contract assets are rights to consideration in exchange for services that we have provided to a customer when those rights are conditioned on our future performance. Contract assets generally consist of (i) demobilization fees recognized ratably over the contract term but invoiced upon completion of the demobilization activities and (ii) revenue recognized in excess of the amount billed to the customer for lump sum contracts when the cost-to-cost method of revenue recognition is utilized. Contract assets are reflected in “Other current assets” in the accompanying condensed consolidated balance sheets (Note 4). Contract assets were $0.7 million at September 30, 2022 and $0.6 million at December 31, 2021. We had no credit losses on our contract assets for the three- and nine-month periods ended September 30, 2022 and 2021. Contract liabilities are obligations to provide future services to a customer for which we have already received, or have the unconditional right to receive, the consideration for those services from the customer. Contract liabilities may consist of (i) advance payments received from customers, including upfront mobilization fees allocated to a single performance obligation and recognized ratably over the contract term and/or (ii) amounts billed to the customer in excess of revenue recognized for lump sum contracts when the cost-to-cost method of revenue recognition is utilized. Contract liabilities are reflected as “Deferred revenue,” a component of “Accrued liabilities” and “Other non-current liabilities” in the accompanying condensed consolidated balance sheets (Note 4). Contract liabilities totaled $20.8 million at September 30, 2022 and $8.7 million at December 31, 2021. Revenue recognized for the three- and nine-month periods ended September 30, 2022 included $2.7 million and $7.0 million, respectively, that were included in the contract liability balance at the beginning of each period. Revenue recognized for the three- and nine-month periods ended September 30, 2021 included $4.0 million and $6.7 million, respectively, that were included in the contract liability balance at the beginning of each period. We report the net contract asset or contract liability position on a contract-by-contract basis at the end of each reporting period. Performance Obligations As of September 30, 2022, $758.4 million related to unsatisfied performance obligations was expected to be recognized as revenue in the future, with $162.0 million, $426.4 million and $170.0 million in 2022 2023 2024 For the three- and nine-month periods ended September 30, 2022 and 2021, revenues recognized from performance obligations satisfied (or partially satisfied) in previous periods were immaterial. Contract Fulfillment Costs Contract fulfillment costs consist of costs incurred in fulfilling a contract with a customer. Our contract fulfillment costs primarily relate to costs incurred for mobilization of personnel and equipment at the beginning of a contract and costs incurred for demobilization at the end of a contract. Mobilization costs are deferred and amortized ratably over the contract term (including anticipated contract extensions) based on the pattern of the provision of services to which the contract fulfillment costs relate. Demobilization costs are recognized when incurred at the end of the contract. Deferred contract costs are reflected as “Deferred costs,” a component of “Other current assets” and “Other assets, net” in the accompanying condensed consolidated balance sheets (Note 4). Our deferred contract costs totaled $18.5 million at September 30, 2022 and $3.3 million at December 31, 2021. For the three- and nine-month periods ended September 30, 2022, we recorded $8.5 million and $19.7 million, respectively, related to amortization of these deferred contract costs. For the three- and nine-month periods ended September 30, 2021, we recorded $11.7 million and $31.6 million, respectively, related to amortization of these deferred contract costs. There were no associated impairment losses for any period presented. For additional information regarding revenue recognition, see Notes 2 and 12 to our 2021 Form 10-K. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 — Earnings Per Share We have shares of restricted stock issued and outstanding that are currently unvested. Because holders of shares of unvested restricted stock are entitled to the same liquidation and dividend rights as the holders of our unrestricted common stock, we are required to compute basic and diluted earnings per share (“EPS”) under the two-class method in periods in which we have earnings. Under the two-class method, net income or loss attributable to common shareholders for each period is allocated based on the participation rights of both common shareholders and the holders of any participating securities as if earnings for the respective periods had been distributed. For periods in which we have a net loss we do not use the two-class method as holders of our restricted shares are not obligated to share in such losses. Basic EPS is computed by dividing net income or loss available to common shareholders by the weighted average shares of our common stock outstanding. The calculation of diluted EPS is similar to that for basic EPS, except that the denominator includes dilutive common stock equivalents and the numerator excludes the effects of dilutive common stock equivalents, if any. The computations of the numerator (earnings or loss) and denominator (shares) to derive the basic and diluted EPS amounts presented on the face of the accompanying condensed consolidated statements of operations are as follows (in thousands): Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Income Shares Income Shares Basic and Diluted: Net loss attributable to common shareholders $ (18,763) $ (19,043) Net loss available to common shareholders $ (18,763) 151,331 $ (19,043) 150,088 Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Income Shares Income Shares Basic and Diluted: Net loss attributable to common shareholders $ (90,493) $ (35,630) Less: Accretion of redeemable noncontrolling interests — (241) Net loss available to common shareholders $ (90,493) 151,226 $ (35,871) 150,018 We had net losses for the three- and nine-month periods ended September 30, 2022 and 2021. Accordingly, our diluted EPS calculation for these periods excluded any assumed exercise or conversion of common stock equivalents. These common stock equivalents were excluded because they were deemed to be anti-dilutive, meaning their inclusion would have reduced the reported net loss per share in the applicable periods. Shares that otherwise would have been included in the diluted per share calculations assuming we had earnings are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Diluted shares (as reported) 151,331 150,088 151,226 150,018 Share-based awards 1,471 1,384 1,332 1,306 Total 152,802 151,472 152,558 151,324 The following potentially dilutive shares related to the 2022 Notes, the 2023 Notes and the 2026 Notes were excluded from the diluted EPS calculation as they were anti-dilutive (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 2022 Notes — 2,519 803 2,519 2023 Notes 3,168 3,168 3,168 3,168 2026 Notes 28,676 28,676 28,676 28,676 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Employee Benefit Plans | Note 10 — Employee Benefit Plans Long-Term Incentive Plan As of September 30, 2022, there were 4.1 million shares of our common stock available for issuance under our 2005 Long-Term Incentive Plan, as amended and restated (the “2005 Incentive Plan”). During the nine-month period ended September 30, 2022, the following grants of share-based awards were made under the 2005 Incentive Plan: Grant Date Fair Value Date of Grant Award Type Shares/Units Per Share/Unit Vesting Period January 1, 2022 (1) RSU 1,065,705 $ 3.12 33% per year over three years January 4, 2022 (1) PSU 1,065,705 $ 4.25 100% on January 4, 2025 January 4, 2022 (2) Restricted stock 15,775 $ 3.12 100% on January 1, 2024 April 1, 2022 (2) Restricted stock 14,710 $ 4.78 100% on January 1, 2024 July 1, 2022 (2) Restricted stock 14,867 $ 3.10 100% on January 1, 2024 September 22, 2022 (3) Restricted stock 19,328 $ 4.38 100% on September 22, 2023 (1) Reflects grants to our executive officers. (2) Reflects grants to certain independent members of our Board of Directors (our “Board”) who have elected to take their quarterly fees in stock in lieu of cash, of which 8,013 shares granted on January 4, 2022 and 5,230 shares granted on April 1, 2022 vested upon the approval of our Board’s Compensation Committee in connection with the departure of an independent director during the second quarter 2022. (3) Reflects restricted stock grants made to two new independent members of our Board in connection with their appointment to our Board. Compensation cost for restricted stock is the product of the grant date fair value of each share and the number of shares granted and is recognized over the applicable vesting period on a straight-line basis. Forfeitures are recognized as they occur. No restricted stock awards have been granted to our executive officers or other employees in 2022. For the three- and nine-month periods ended September 30, 2022, $0.5 million and $1.9 million, respectively, were recognized as share-based compensation related to restricted stock. For the three- and nine-month periods ended September 30, 2021, $0.8 million and $2.5 million, respectively, were recognized as share-based compensation related to restricted stock. Our performance share units (“PSUs”) that were granted prior to 2021 are to be settled solely in shares of our common stock and are accounted for as equity awards. Those PSUs, which contain a service and a market condition, are based on the performance of our common stock against peer group companies. Our PSUs granted beginning 2021 may be settled in either cash or shares of our common stock upon vesting at the discretion of the Compensation Committee of our Board and have been accounted for as equity awards. Those PSUs consist of two components: (i) 50% based on the performance of our common stock against peer group companies, which component contains a service and a market condition, and (ii) 50% based on cumulative total Free Cash Flow, which component contains a service and a performance condition. Free Cash Flow is calculated as cash flows from operating activities less capital expenditures, net of proceeds from sale of assets. Our PSUs cliff vest at the end of a three-year period with the maximum amount of the award being 200% of the original PSU awards and the minimum amount being zero. For PSUs that have a service and a market condition and are accounted for as equity awards, compensation cost is measured based on the grant date estimated fair value determined using a Monte Carlo simulation model and subsequently recognized over the vesting period on a straight-line basis. For PSUs that have a service and a performance condition and are accounted for as equity awards, compensation cost is initially measured based on the grant date fair value. Cumulative compensation cost is subsequently adjusted at the end of each reporting period to reflect the current estimation of achieving the performance condition. For the three- and nine-month periods ended September 30, 2022, $1.5 million and $3.6 million, respectively, were recognized as share-based compensation related to equity PSUs. For the three- and nine-month periods ended September 30, 2021, $1.0 million and $3.1 million, respectively, were recognized as share-based compensation related to equity PSUs. In January 2022, based on the performance of our common stock price as compared to our performance peer group over a three-year period, 559,150 equity PSUs granted in 2019 vested at 157%, representing 876,469 shares of our common stock with a total market value of $3.2 million. Our restricted stock units (“RSUs”) may be settled in either cash or shares of our common stock upon vesting at the discretion of the Compensation Committee and have been accounted for as liability awards. Liability RSUs are measured at their estimated fair value at each balance sheet date, and subsequent changes in the fair value of the awards are recognized in earnings for the portion of the award for which the requisite service period has elapsed. Cumulative compensation cost for vested liability RSUs equals the actual payout value upon vesting. For the three- and nine-month periods ended September 30, 2022, $0.7 million and $1.5 million, respectively, were recognized as compensation cost. Compensation cost recognized for the three-month period ended September 30, 2021 was minimal. For the nine-month period ended September 30, 2021, $0.4 million was recognized as compensation cost. In 2022 and 2021, we granted fixed-value cash awards of $5.4 million and $3.5 million, respectively, to select management employees under the 2005 Incentive Plan. The value of these cash awards is recognized on a straight-line basis over a vesting period of three years. For the three- and nine-month periods ended September 30, 2022, $1.1 million and $3.2 million, respectively, were recognized as compensation cost. For the three- and nine-month periods ended September 30, 2021, $1.0 million and $3.0 million, respectively, were recognized as compensation cost. Defined Contribution Plan We sponsor a defined contribution 401(k) retirement plan. Our discretionary contributions are in the form of cash and consist of a 50% match of each participant’s contribution up to 5% of the participant’s salary. Our discretionary contributions were suspended for 2021 and re-activated beginning January 2022. For the three- and nine-month periods ended September 30, 2022, we made $0.4 million and $1.1 million, respectively, in contributions to the 401(k) plan. Employee Stock Purchase Plan We have an employee stock purchase plan (the “ESPP”). As of September 30, 2022, 1.4 million shares were available for issuance under the ESPP. The ESPP currently has a purchase limit of 260 shares per employee per purchase period. For more information regarding our employee benefit plans, including the 2005 Incentive Plan and the ESPP, see Note 14 to our 2021 Form 10-K. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 11 — Business Segment Information Through the second quarter 2022, we had three reportable business segments: Well Intervention, Robotics and Production Facilities. Beginning in the third quarter 2022 as a result of the Alliance acquisition (Note 3), we formed a new reportable business segment: Shallow Water Abandonment. Our U.S., U.K. and Brazil Well Intervention operating segments are aggregated into the Well Intervention segment for financial reporting purposes. Our Well Intervention segment provides services enabling our customers to safely access offshore wells for the purpose of performing production enhancement or decommissioning operations primarily in the Gulf of Mexico, Brazil, the North Sea and West Africa. Our well intervention vessels include the Q4000 Q5000 Q7000 Seawell Well Enhancer Siem Helix 1 Siem Helix 2 HP I We evaluate our performance based on operating income of each reportable segment. Certain financial data by reportable segment are summarized as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net revenues — Well Intervention $ 143,925 $ 131,314 $ 356,583 $ 397,387 Robotics 56,182 42,623 143,383 96,430 Shallow Water Abandonment 67,401 — 67,401 — Production Facilities 18,448 18,552 54,420 49,217 Intercompany eliminations (13,409) (11,773) (36,503) (36,962) Total $ 272,547 $ 180,716 $ 585,284 $ 506,072 Income (loss) from operations — Well Intervention $ (1,304) $ (13,343) $ (55,610) $ (14,819) Robotics 11,708 4,936 22,854 2,257 Shallow Water Abandonment 16,320 — 16,320 — Production Facilities 6,068 5,089 17,964 16,285 Segment operating income (loss) 32,792 (3,318) 1,528 3,723 Corporate, eliminations and other (20,566) (7,013) (41,255) (25,550) Total $ 12,226 $ (10,331) $ (39,727) $ (21,827) Intercompany segment amounts are derived primarily from equipment and services provided to other business segments. Intercompany segment revenues are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Well Intervention $ 4,303 $ 4,267 $ 12,046 $ 17,060 Robotics 8,971 7,506 24,322 19,902 Shallow Water Abandonment 135 — 135 — Total $ 13,409 $ 11,773 $ 36,503 $ 36,962 Segment assets are comprised of all assets attributable to each reportable segment. Corporate and other includes all assets not directly identifiable with our business segments. The following table reflects total assets by reportable segment (in thousands): September 30, December 31, 2022 2021 Well Intervention $ 1,769,705 $ 2,012,214 Robotics 172,521 96,249 Shallow Water Abandonment 200,987 — Production Facilities 138,921 119,004 Corporate and other 73,363 98,561 Total $ 2,355,497 $ 2,326,028 |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Note 12 — Asset Retirement Obligations Asset retirement obligations (“AROs”) are recorded at fair value and consist of estimated costs for subsea infrastructure decommissioning and P&A activities associated with our oil and gas properties. The estimated costs are discounted to present value using a credit-adjusted risk-free discount rate. After its initial recognition, an ARO liability is increased for the passage of time as accretion expense, which is a component of our depreciation and amortization expense. An ARO liability may also change based on revisions in estimated costs and/or timing to settle the obligations. Our existing AROs relate to our Droshky oil and gas properties that we acquired from Marathon Oil Corporation (“Marathon Oil”) in January 2019. In connection with assuming the P&A obligations related to those assets, we are entitled to receive agreed-upon amounts from Marathon Oil as the P&A work is completed. Our ARO additions in the third quarter 2022 and a corresponding asset of $23.6 million relate to MP GOM’s 62.5% interest in the Thunder Hawk Field that we acquired in August 2022 (Note 2). The following table describes the changes in our AROs (in thousands): 2022 2021 AROs at January 1, $ 29,658 $ 30,913 Liability incurred during the period 23,601 — Revisions in estimates — (2,631) Accretion expense 1,465 736 AROs at September 30, $ 54,724 $ 29,018 |
Commitments And Contingencies A
Commitments And Contingencies And Other Matters | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies And Other Matters | Note 13 — Commitments and Contingencies and Other Matters Commitments We have long-term charter agreements with Siem Offshore AS for the Siem Helix 1 Siem Helix 2 Siem Helix 1 Siem Helix 2 Grand Canyon II Grand Canyon III Horizon Enabler Shelia Bordelon Shelia Bordelon Contingencies and Claims Our contingent consideration liability resulting from the Alliance acquisition is subject to risk as a result of changes in our probability weighted discounted cash flow model, which is based on internal forecasts, and changes in weighted average discount rate, which is derived from market data. We believe that there are currently no other contingencies that would have a material adverse effect on our financial position, results of operations or cash flows. Litigation We are involved in various legal proceedings, some involving claims under the General Maritime Laws of the United States and the Merchant Marine Act of 1920 (commonly referred to as the Jones Act). In addition, from time to time we receive other claims, such as contract and employment-related disputes, in the normal course of business. We are currently involved in several lawsuits filed by current and former offshore employees seeking overtime compensation. These suits are brought as collective actions and are in various stages of litigation. In one such lawsuit, during the third quarter 2021 the United States Court of Appeals for the Fifth Circuit (the “Fifth Circuit”) issued a ruling adverse to us that may have implications for some of the other cases in which we are involved, as well as the way offshore personnel are compensated throughout our industry. We further appealed that matter to the United States Supreme Court, which heard oral arguments in October 2022. In another such lawsuit, during the third quarter 2022 the Fifth Circuit issued a separate adverse ruling that may also have implications for some of the other cases in which we are involved. We continue to vigorously defend these lawsuits. Notwithstanding that we believe we retain valid defenses, we have established a liability in these matters. The final outcome of these matters remains uncertain, and the ultimate liability to us could be more or less than the liability established. |
Statement Of Cash Flow Informat
Statement Of Cash Flow Information | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Statement Of Cash Flow Information | Note 14 — Statement of Cash Flow Information We define cash and cash equivalents as cash and all highly liquid financial instruments with original maturities of three months or less. We classify cash as restricted when there are legal or contractual restrictions for its withdrawal. The following table provides supplemental cash flow information (in thousands): Nine Months Ended September 30, 2022 2021 Interest paid $ 18,143 $ 19,945 Income taxes paid 6,631 6,771 Our capital additions include the acquisition of property and equipment for which payment has not been made. These non-cash capital additions totaled $0.3 million at September 30, 2022 and December 31, 2021. Non-cash investing activities for the nine-month period ended September 30, 2022 also included $26.7 million in estimated fair value of contingent earn-out consideration as of July 1, 2022, the date of the Alliance acquisition (Note 3). |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2022 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Note 15 — Allowance for Credit Losses We estimate current expected credit losses on our accounts receivable at each reporting date based on our credit loss history, adjusted for current factors including global economic and business conditions, offshore energy industry and market conditions, customer mix, contract payment terms and past due accounts receivable. The following table sets forth the activity in our allowance for credit losses (in thousands): 2022 2021 Balance at January 1, $ 1,477 $ 3,469 Additions (reductions) (1) 710 (213) Write-offs (2) — (1,846) Balance at September 30, $ 2,187 $ 1,410 (1) Additions (reductions) in allowance for credit losses reflect credit loss reserves (releases) during the respective periods. Additions during the third quarter 2022 primarily reflected adjustments to the allowance for credit losses due to increases in our expected credit losses as a result of the Alliance acquisition. (2) The write-offs of allowance for credit losses reflect certain receivables related to our Robotics segment that were previously reserved and subsequently deemed to be uncollectible. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 16 — Fair Value Measurements Our financial instruments include cash and cash equivalents, receivables, accounts payable and long-term debt. The carrying amount of cash and cash equivalents, trade and other current receivables as well as accounts payable approximates fair value due to the short-term nature of these instruments. The following table sets forth our assets and liabilities that are measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): Fair Value at September 30, 2022 Level 1 Level 2 Level 3 Total Liabilities: Contingent consideration — — 29,364 29,364 Contingent consideration liability related to the Alliance acquisition (Note 3) is measured at fair value using Level 3 unobservable inputs at the end of each reporting period and changes in its estimated fair value are recorded in earnings until the liability is settled. The fair value of the estimated contingent consideration is determined based on our evaluation of the probability and amount of earnout that may be achieved based on expected future performance of Helix Alliance. The Monte Carlo simulation model is used to calculate the estimated earnout payment, which is then discounted to present value based on the expected payment date of the contingent consideration. The weighted-average volatility was 47.5% and the weighted average discount rate was estimated to be 9.2% at September 30, 2022. The changes in the fair value of contingent consideration are as follows: 2022 Balance at July 1, $ 26,700 Change in fair value 2,664 Balance at September 30, $ 29,364 The principal amount and estimated fair value of our long-term debt are as follows (in thousands): September 30, 2022 December 31, 2021 Principal Fair Principal Fair Amount (1) Value (2) Amount (1) Value (2) MARAD Debt (matures February 2027) $ 40,913 $ 40,496 $ 48,850 $ 52,481 2022 Notes (matured May 2022) — — 35,000 34,794 2023 Notes (mature September 2023) 30,000 29,504 30,000 29,054 2026 Notes (mature February 2026) 200,000 205,754 200,000 200,562 Total debt $ 270,913 $ 275,754 $ 313,850 $ 316,891 (1) Principal amount includes current maturities and excludes any related unamortized debt issuance costs. See Note 6 for additional disclosures on our long-term debt. (2) The estimated fair value of the 2022 Notes, the 2023 Notes and the 2026 Notes was determined using Level 1 fair value inputs under the market approach. The fair value of the MARAD Debt was estimated using Level 2 fair value inputs under the market approach, which was determined using a third-party evaluation of the remaining average life and outstanding principal balance of the indebtedness as compared to other obligations in the marketplace with similar terms. |
Basis Of Presentation And New_2
Basis Of Presentation And New Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | The accompanying condensed consolidated financial statements include the accounts of Helix Energy Solutions Group, Inc. and its subsidiaries (collectively, “Helix”). Unless the context indicates otherwise, the terms “we,” “us” and “our” in this report refer collectively to Helix and its subsidiaries. All material intercompany accounts and transactions have been eliminated. These unaudited condensed consolidated financial statements in U.S. dollars have been prepared in accordance with instructions for the Quarterly Report on Form 10-Q required to be filed with the Securities and Exchange Commission (the “SEC”) and do not include all information and footnotes normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). On July 1, 2022, we completed our acquisition of all of the equity interests of the Alliance group of companies (collectively “Alliance”). The condensed consolidated financial statements prior to July 1, 2022 reflect only the historical results of Helix. The condensed consolidated financial statements since the completion of the Alliance acquisition have included the results of Helix Alliance using the acquisition method of accounting. See Note 3 for additional information regarding the Alliance acquisition. The preparation of these financial statements requires us to make estimates and judgments that affect the amounts reported in the financial statements and the related disclosures. Actual results may differ from our estimates. We have made all adjustments, which, unless otherwise disclosed, are of normal recurring nature, that we believe are necessary for a fair presentation of the condensed consolidated balance sheets, statements of operations, statements of comprehensive loss, statements of shareholders’ equity and statements of cash flows, as applicable. The operating results for the three- and nine-month periods ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. Our balance sheet as of December 31, 2021 included herein has been derived from the audited balance sheet as of December 31, 2021 included in our 2021 Annual Report on Form 10-K (our “2021 Form 10-K”). These unaudited condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements and notes thereto included in our 2021 Form 10-K. |
Reclassifications | Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current presentation format. |
New Accounting Standards | We do not expect any recently issued accounting standards to have a material impact on our financial position, results of operations or cash flows when they become effective. |
Alliance Acquisition (Tables)
Alliance Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Alliance Acquisition | |
Schedule of purchase price allocation to estimated fair values of the identifiable assets acquired and liabilities | The following table summarizes the purchase consideration and the preliminary purchase price allocation to estimated fair values of the identifiable assets acquired and liabilities assumed as of the acquisition date (in thousands): July 1, 2022 Cash consideration $ 118,961 Contingent consideration 26,700 Total fair value of consideration transferred $ 145,661 Assets acquired: Cash and cash equivalents $ 6,336 Accounts receivable (1) 43,378 Other current assets 4,879 Property and equipment 118,619 Operating lease right-of-use assets 1,205 Intangible assets 1,400 Other assets 2,133 Total assets acquired $ 177,950 Liabilities assumed: Accounts payable $ 20,480 Accrued liabilities 3,073 Operating lease liabilities 1,205 Deferred tax liabilities 7,531 Total liabilities assumed 32,289 Net assets acquired $ 145,661 (1) The gross contractual accounts receivable totaled $44.2 million . The fair value of accounts receivable reflects our best estimate at the acquisition date of contractual cash flows not expected to be collected. |
Schedule of pro forma information | The following table summarizes the pro forma results of Helix and Alliance (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues $ 272,547 $ 228,574 $ 665,021 $ 591,179 Net loss (18,763) (8,828) (81,069) (29,620) |
Details Of Certain Accounts (Ta
Details Of Certain Accounts (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of other current assets | Other current assets consist of the following (in thousands): September 30, December 31, 2022 2021 Contract assets (Note 8) $ 746 $ 639 Prepaids 30,371 18,228 Deferred costs (Note 8) 13,634 2,967 Income tax receivable — 1,116 Other receivable (Note 12) 30,052 28,805 Other 8,498 6,519 Total other current assets $ 83,301 $ 58,274 |
Schedule of other assets, net | Other assets, net consist of the following (in thousands): September 30, December 31, 2022 2021 Deferred recertification and dry dock costs, net $ 37,732 $ 16,291 Deferred costs (Note 8) 4,873 381 Prepaid charter (1) 12,544 12,544 Intangible assets with finite lives, net 4,335 3,472 Other 2,704 1,967 Total other assets, net $ 62,188 $ 34,655 (1) Represents prepayments to the owner of the Siem Helix 1 and the Siem Helix 2 to offset certain payment obligations associated with the vessels at the end of their respective charter term. |
Schedule of accrued liabilities | Accrued liabilities consist of the following (in thousands): September 30, December 31, 2022 2021 Accrued payroll and related benefits $ 39,548 $ 28,657 Accrued interest 2,116 6,746 Income tax payable 1,614 — Deferred revenue (Note 8) 20,840 8,272 Asset retirement obligations (Note 12) 30,961 29,658 Other 17,242 18,379 Total accrued liabilities $ 112,321 $ 91,712 |
Schedule of other non-current liabilities | Other non-current liabilities consist of the following (in thousands): September 30, December 31, 2022 2021 Deferred revenue (Note 8) $ — $ 476 Asset retirement obligations (Note 12) 23,763 — Contingent consideration (Note 16) 29,364 — Other 325 499 Total other non-current liabilities $ 53,452 $ 975 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of components of lease cost | The following table details the components of our lease cost (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Operating lease cost $ 16,088 $ 14,336 $ 44,348 $ 45,391 Variable lease cost 4,488 4,298 14,035 11,417 Short-term lease cost 9,112 6,258 22,121 13,233 Sublease income (300) (289) (930) (967) Net lease cost $ 29,388 $ 24,603 $ 79,574 $ 69,074 |
Schedule of maturities of operating lease liabilities | Maturities of our operating lease liabilities as of September 30, 2022 are as follows (in thousands): Facilities and Vessels Equipment Total Less than one year $ 56,405 $ 6,334 $ 62,739 One to two years 57,040 5,753 62,793 Two to three years 47,724 3,390 51,114 Three to four years 35,200 867 36,067 Four to five years 30,569 885 31,454 Over five years 7,589 2,790 10,379 Total lease payments $ 234,527 $ 20,019 $ 254,546 Less: imputed interest (36,767) (2,761) (39,528) Total operating lease liabilities $ 197,760 $ 17,258 $ 215,018 Current operating lease liabilities $ 42,621 $ 5,481 $ 48,102 Non-current operating lease liabilities 155,139 11,777 166,916 Total operating lease liabilities $ 197,760 $ 17,258 $ 215,018 Maturities of our operating lease liabilities as of December 31, 2021 are as follows (in thousands): Facilities and Vessels Equipment Total Less than one year $ 55,573 $ 5,601 $ 61,174 One to two years 34,580 4,844 39,424 Two to three years 2,470 4,514 6,984 Three to four years — 2,462 2,462 Four to five years — 1,074 1,074 Over five years — 4,193 4,193 Total lease payments $ 92,623 $ 22,688 $ 115,311 Less: imputed interest (5,633) (3,741) (9,374) Total operating lease liabilities $ 86,990 $ 18,947 $ 105,937 Current operating lease liabilities $ 51,035 $ 4,704 $ 55,739 Non-current operating lease liabilities 35,955 14,243 50,198 Total operating lease liabilities $ 86,990 $ 18,947 $ 105,937 |
Schedule of weighted average remaining lease term and discount rate | The following table presents the weighted average remaining lease term and discount rate: September 30, December 31, 2022 2021 Weighted average remaining lease term 4.2 years 2.4 years Weighted average discount rate 7.83 % 7.57 % |
Schedule of other information related to operating leases | The following table presents other information related to our operating leases (in thousands): Nine Months Ended September 30, 2022 2021 Cash paid for operating lease liabilities $ 43,342 $ 46,141 Right-of-use assets obtained in exchange for new operating lease obligations 143,357 5,975 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of maturities of long-term debt outstanding | Scheduled maturities of our long-term debt outstanding as of September 30, 2022 are as follows (in thousands): 2023 2026 MARAD Notes Notes Debt Total Less than one year $ 30,000 $ — $ 8,333 $ 38,333 One to two years — — 8,749 8,749 Two to three years — — 9,186 9,186 Three to four years — 200,000 9,644 209,644 Four to five years — — 5,001 5,001 Gross debt 30,000 200,000 40,913 270,913 Unamortized debt issuance costs (1) (179) (4,958) (2,195) (7,332) Total debt 29,821 195,042 38,718 263,581 Less current maturities (29,821) — (8,333) (38,154) Long-term debt $ — $ 195,042 $ 30,385 $ 225,427 (1) Debt issuance costs are amortized to interest expense over the term of the applicable debt agreement. |
Schedule of components of net interest expense | The following table details the components of our net interest expense (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Interest expense $ 4,923 $ 6,097 $ 15,264 $ 18,152 Interest income (279) (169) (647) (252) Net interest expense $ 4,644 $ 5,928 $ 14,617 $ 17,900 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The following table provides information about disaggregated revenue by contract duration (in thousands): Well Shallow Water Production Intercompany Total Intervention Robotics Abandonment Facilities Eliminations Revenue Three months ended September 30, 2022 Short-term $ 111,378 $ 26,695 $ 67,401 $ — $ (135) $ 205,339 Long-term 32,547 29,487 — 18,448 (13,274) 67,208 Total $ 143,925 $ 56,182 $ 67,401 $ 18,448 $ (13,409) $ 272,547 Three months ended September 30, 2021 Short-term $ 92,954 $ 30,186 $ — $ — $ — $ 123,140 Long-term 38,360 12,437 — 18,552 (11,773) 57,576 Total $ 131,314 $ 42,623 $ — $ 18,552 $ (11,773) $ 180,716 Nine months ended September 30, 2022 Short-term $ 288,772 $ 73,684 $ 67,401 $ — $ (770) $ 429,087 Long-term 67,811 69,699 — 54,420 (35,733) 156,197 Total $ 356,583 $ 143,383 $ 67,401 $ 54,420 $ (36,503) $ 585,284 Nine months ended September 30, 2021 Short-term $ 218,840 $ 60,605 $ — $ — $ — $ 279,445 Long-term 178,547 35,825 — 49,217 (36,962) 226,627 Total $ 397,387 $ 96,430 $ — $ 49,217 $ (36,962) $ 506,072 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of computations of basic and diluted EPS | The computations of the numerator (earnings or loss) and denominator (shares) to derive the basic and diluted EPS amounts presented on the face of the accompanying condensed consolidated statements of operations are as follows (in thousands): Three Months Ended Three Months Ended September 30, 2022 September 30, 2021 Income Shares Income Shares Basic and Diluted: Net loss attributable to common shareholders $ (18,763) $ (19,043) Net loss available to common shareholders $ (18,763) 151,331 $ (19,043) 150,088 Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Income Shares Income Shares Basic and Diluted: Net loss attributable to common shareholders $ (90,493) $ (35,630) Less: Accretion of redeemable noncontrolling interests — (241) Net loss available to common shareholders $ (90,493) 151,226 $ (35,871) 150,018 |
Schedule of shares excluded from diluted EPS calculation | Shares that otherwise would have been included in the diluted per share calculations assuming we had earnings are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Diluted shares (as reported) 151,331 150,088 151,226 150,018 Share-based awards 1,471 1,384 1,332 1,306 Total 152,802 151,472 152,558 151,324 The following potentially dilutive shares related to the 2022 Notes, the 2023 Notes and the 2026 Notes were excluded from the diluted EPS calculation as they were anti-dilutive (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 2022 Notes — 2,519 803 2,519 2023 Notes 3,168 3,168 3,168 3,168 2026 Notes 28,676 28,676 28,676 28,676 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of grants of share-based awards | During the nine-month period ended September 30, 2022, the following grants of share-based awards were made under the 2005 Incentive Plan: Grant Date Fair Value Date of Grant Award Type Shares/Units Per Share/Unit Vesting Period January 1, 2022 (1) RSU 1,065,705 $ 3.12 33% per year over three years January 4, 2022 (1) PSU 1,065,705 $ 4.25 100% on January 4, 2025 January 4, 2022 (2) Restricted stock 15,775 $ 3.12 100% on January 1, 2024 April 1, 2022 (2) Restricted stock 14,710 $ 4.78 100% on January 1, 2024 July 1, 2022 (2) Restricted stock 14,867 $ 3.10 100% on January 1, 2024 September 22, 2022 (3) Restricted stock 19,328 $ 4.38 100% on September 22, 2023 (1) Reflects grants to our executive officers. (2) Reflects grants to certain independent members of our Board of Directors (our “Board”) who have elected to take their quarterly fees in stock in lieu of cash, of which 8,013 shares granted on January 4, 2022 and 5,230 shares granted on April 1, 2022 vested upon the approval of our Board’s Compensation Committee in connection with the departure of an independent director during the second quarter 2022. (3) Reflects restricted stock grants made to two new independent members of our Board in connection with their appointment to our Board. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of financial data by reportable segment | Certain financial data by reportable segment are summarized as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Net revenues — Well Intervention $ 143,925 $ 131,314 $ 356,583 $ 397,387 Robotics 56,182 42,623 143,383 96,430 Shallow Water Abandonment 67,401 — 67,401 — Production Facilities 18,448 18,552 54,420 49,217 Intercompany eliminations (13,409) (11,773) (36,503) (36,962) Total $ 272,547 $ 180,716 $ 585,284 $ 506,072 Income (loss) from operations — Well Intervention $ (1,304) $ (13,343) $ (55,610) $ (14,819) Robotics 11,708 4,936 22,854 2,257 Shallow Water Abandonment 16,320 — 16,320 — Production Facilities 6,068 5,089 17,964 16,285 Segment operating income (loss) 32,792 (3,318) 1,528 3,723 Corporate, eliminations and other (20,566) (7,013) (41,255) (25,550) Total $ 12,226 $ (10,331) $ (39,727) $ (21,827) |
Schedule of intercompany segment revenues | Intercompany segment revenues are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Well Intervention $ 4,303 $ 4,267 $ 12,046 $ 17,060 Robotics 8,971 7,506 24,322 19,902 Shallow Water Abandonment 135 — 135 — Total $ 13,409 $ 11,773 $ 36,503 $ 36,962 |
Schedule of total assets by reportable segment | The following table reflects total assets by reportable segment (in thousands): September 30, December 31, 2022 2021 Well Intervention $ 1,769,705 $ 2,012,214 Robotics 172,521 96,249 Shallow Water Abandonment 200,987 — Production Facilities 138,921 119,004 Corporate and other 73,363 98,561 Total $ 2,355,497 $ 2,326,028 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of asset retirement obligations | The following table describes the changes in our AROs (in thousands): 2022 2021 AROs at January 1, $ 29,658 $ 30,913 Liability incurred during the period 23,601 — Revisions in estimates — (2,631) Accretion expense 1,465 736 AROs at September 30, $ 54,724 $ 29,018 |
Statement Of Cash Flow Inform_2
Statement Of Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental cash flow information | The following table provides supplemental cash flow information (in thousands): Nine Months Ended September 30, 2022 2021 Interest paid $ 18,143 $ 19,945 Income taxes paid 6,631 6,771 |
Allowance For Credit Losses (Ta
Allowance For Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Credit Loss [Abstract] | |
Schedule of activities in allowance for credit losses | The following table sets forth the activity in our allowance for credit losses (in thousands): 2022 2021 Balance at January 1, $ 1,477 $ 3,469 Additions (reductions) (1) 710 (213) Write-offs (2) — (1,846) Balance at September 30, $ 2,187 $ 1,410 (1) Additions (reductions) in allowance for credit losses reflect credit loss reserves (releases) during the respective periods. Additions during the third quarter 2022 primarily reflected adjustments to the allowance for credit losses due to increases in our expected credit losses as a result of the Alliance acquisition. (2) The write-offs of allowance for credit losses reflect certain receivables related to our Robotics segment that were previously reserved and subsequently deemed to be uncollectible. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments measured at fair value on a recurring basis | The following table sets forth our assets and liabilities that are measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): Fair Value at September 30, 2022 Level 1 Level 2 Level 3 Total Liabilities: Contingent consideration — — 29,364 29,364 |
Schedule of changes in the fair value of contingent consideration | The changes in the fair value of contingent consideration are as follows: 2022 Balance at July 1, $ 26,700 Change in fair value 2,664 Balance at September 30, $ 29,364 |
Schedule of principal amount and estimated fair value of long-term debt | The principal amount and estimated fair value of our long-term debt are as follows (in thousands): September 30, 2022 December 31, 2021 Principal Fair Principal Fair Amount (1) Value (2) Amount (1) Value (2) MARAD Debt (matures February 2027) $ 40,913 $ 40,496 $ 48,850 $ 52,481 2022 Notes (matured May 2022) — — 35,000 34,794 2023 Notes (mature September 2023) 30,000 29,504 30,000 29,054 2026 Notes (mature February 2026) 200,000 205,754 200,000 200,562 Total debt $ 270,913 $ 275,754 $ 313,850 $ 316,891 (1) Principal amount includes current maturities and excludes any related unamortized debt issuance costs. See Note 6 for additional disclosures on our long-term debt. (2) The estimated fair value of the 2022 Notes, the 2023 Notes and the 2026 Notes was determined using Level 1 fair value inputs under the market approach. The fair value of the MARAD Debt was estimated using Level 2 fair value inputs under the market approach, which was determined using a third-party evaluation of the remaining average life and outstanding principal balance of the indebtedness as compared to other obligations in the marketplace with similar terms. |
Company Overview (Details)
Company Overview (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Aug. 31, 2022 | May 31, 2022 USD ($) | Sep. 30, 2022 segment item | Jun. 30, 2022 segment | |
Business Segment Information | ||||
Number of reportable segments | segment | 4 | 3 | ||
Well Intervention | ||||
Business Segment Information | ||||
Number of long-term chartered vessels | item | 2 | |||
Production Facilities | Independence Hub, LLC | ||||
Business Segment Information | ||||
Percentage of ownership interest | 20% | |||
Distribution from equity investment, net | $ | $ 7.8 | |||
Production Facilities | Thunder Hawk Field | ||||
Business Segment Information | ||||
Controlling interest acquired, ownership percentage | 62.50% |
Alliance Acquisition (Details)
Alliance Acquisition (Details) - Alliance $ in Thousands | Jul. 01, 2022 USD ($) |
Business Acquisition [Line Items] | |
Total consideration for business acquisition | $ 145,661 |
Cash paid to acquire companies | 118,961 |
Post-closing earn-out consideration payable | 26,700 |
Estimated fair values of the identifiable assets acquired and liabilities assumed | |
Cash consideration | 118,961 |
Contingent consideration | 26,700 |
Total fair value of consideration transferred | 145,661 |
Assets acquired: | |
Cash and cash equivalents | 6,336 |
Accounts receivable | 43,378 |
Other current assets | 4,879 |
Property and equipment | 118,619 |
Operating lease right-of-use assets | 1,205 |
Intangible assets | 1,400 |
Other assets | 2,133 |
Total assets acquired | 177,950 |
Liabilities assumed: | |
Accounts payable | 20,480 |
Accrued liabilities | 3,073 |
Operating lease liabilities | 1,205 |
Deferred tax liabilities | 7,531 |
Total liabilities assumed | 32,289 |
Net assets acquired | 145,661 |
Gross contractual accounts receivable | $ 44,200 |
Alliance Acquisition - Pro form
Alliance Acquisition - Pro forma information (Details) - Alliance - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Acquisition [Line Items] | ||||
Revenues | $ 272,547 | $ 228,574 | $ 665,021 | $ 591,179 |
Net loss | $ (18,763) | $ (8,828) | $ (81,069) | $ (29,620) |
Details Of Certain Accounts - O
Details Of Certain Accounts - Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Contract assets | $ 746 | $ 639 |
Prepaids | 30,371 | 18,228 |
Deferred costs | 13,634 | 2,967 |
Income tax receivable | 1,116 | |
Other receivable | 30,052 | 28,805 |
Other | 8,498 | 6,519 |
Total other current assets | $ 83,301 | $ 58,274 |
Details Of Certain Accounts -_2
Details Of Certain Accounts - Other Assets, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred recertification and dry dock costs, net | $ 37,732 | $ 16,291 |
Deferred costs | 4,873 | 381 |
Prepaid charter | 12,544 | 12,544 |
Intangible assets with finite lives, net | 4,335 | 3,472 |
Other | 2,704 | 1,967 |
Total other assets, net | $ 62,188 | $ 34,655 |
Details Of Certain Accounts - A
Details Of Certain Accounts - Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued payroll and related benefits | $ 39,548 | $ 28,657 |
Accrued interest | 2,116 | 6,746 |
Income tax payable | 1,614 | |
Deferred revenue | 20,840 | 8,272 |
Asset retirement obligations | 30,961 | 29,658 |
Other | 17,242 | 18,379 |
Total accrued liabilities | $ 112,321 | $ 91,712 |
Details Of Certain Accounts -_3
Details Of Certain Accounts - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred revenue | $ 476 | |
Asset retirement obligations | $ 23,763 | |
Contingent consideration | 29,364 | |
Other | 325 | 499 |
Total other non-current liabilities | $ 53,452 | $ 975 |
Leases - Components Of Lease Co
Leases - Components Of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lease, Cost [Abstract] | ||||
Operating lease cost | $ 16,088 | $ 14,336 | $ 44,348 | $ 45,391 |
Variable lease cost | 4,488 | 4,298 | 14,035 | 11,417 |
Short-term lease cost | 9,112 | 6,258 | 22,121 | 13,233 |
Sublease income | (300) | (289) | (930) | (967) |
Net lease cost | $ 29,388 | $ 24,603 | $ 79,574 | $ 69,074 |
Leases - Maturities Of Operatin
Leases - Maturities Of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity [Abstract] | ||
Less than one year | $ 62,739 | $ 61,174 |
One to two years | 62,793 | 39,424 |
Two to three years | 51,114 | 6,984 |
Three to four years | 36,067 | 2,462 |
Four to five years | 31,454 | 1,074 |
Over five years | 10,379 | 4,193 |
Total lease payments | 254,546 | 115,311 |
Less: imputed interest | (39,528) | (9,374) |
Total operating lease liabilities | $ 215,018 | $ 105,937 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Current operating lease liabilities, Non-current operating lease liabilities | Current operating lease liabilities, Non-current operating lease liabilities |
Current operating lease liabilities | $ 48,102 | $ 55,739 |
Non-current operating lease liabilities | 166,916 | 50,198 |
Vessels | ||
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity [Abstract] | ||
Less than one year | 56,405 | 55,573 |
One to two years | 57,040 | 34,580 |
Two to three years | 47,724 | 2,470 |
Three to four years | 35,200 | |
Four to five years | 30,569 | |
Over five years | 7,589 | |
Total lease payments | 234,527 | 92,623 |
Less: imputed interest | (36,767) | (5,633) |
Total operating lease liabilities | $ 197,760 | $ 86,990 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Current operating lease liabilities, Non-current operating lease liabilities | Current operating lease liabilities, Non-current operating lease liabilities |
Current operating lease liabilities | $ 42,621 | $ 51,035 |
Non-current operating lease liabilities | 155,139 | 35,955 |
Facilities and Equipment | ||
Lessee, Operating Lease, Liability, Payment, Due, Rolling Maturity [Abstract] | ||
Less than one year | 6,334 | 5,601 |
One to two years | 5,753 | 4,844 |
Two to three years | 3,390 | 4,514 |
Three to four years | 867 | 2,462 |
Four to five years | 885 | 1,074 |
Over five years | 2,790 | 4,193 |
Total lease payments | 20,019 | 22,688 |
Less: imputed interest | (2,761) | (3,741) |
Total operating lease liabilities | $ 17,258 | $ 18,947 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Current operating lease liabilities, Non-current operating lease liabilities | Current operating lease liabilities, Non-current operating lease liabilities |
Current operating lease liabilities | $ 5,481 | $ 4,704 |
Non-current operating lease liabilities | $ 11,777 | $ 14,243 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term And Discount Rate (Details) | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 4 years 2 months 12 days | 2 years 4 months 24 days |
Weighted average discount rate (as a percent) | 7.83% | 7.57% |
Leases - Other Information Rela
Leases - Other Information Related To Operating Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 43,342 | $ 46,141 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 143,357 | $ 5,975 |
Long-Term Debt - Maturities Of
Long-Term Debt - Maturities Of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Less than one year | $ 38,333 | |
One to two years | 8,749 | |
Two to three years | 9,186 | |
Three to four years | 209,644 | |
Four to five years | 5,001 | |
Gross debt | 270,913 | $ 313,850 |
Unamortized debt issuance costs | (7,332) | |
Total debt | 263,581 | |
Less: current maturities | (38,154) | (42,873) |
Long-term debt | 225,427 | 262,137 |
2023 Notes (mature September 2023) | ||
Debt Instrument [Line Items] | ||
Less than one year | 30,000 | |
Gross debt | 30,000 | 30,000 |
Unamortized debt issuance costs | (179) | |
Total debt | 29,821 | |
Less: current maturities | (29,821) | |
2026 Notes (mature February 2026) | ||
Debt Instrument [Line Items] | ||
Three to four years | 200,000 | |
Gross debt | 200,000 | 200,000 |
Unamortized debt issuance costs | (4,958) | |
Total debt | 195,042 | |
Long-term debt | 195,042 | |
MARAD Debt (matures February 2027) | ||
Debt Instrument [Line Items] | ||
Less than one year | 8,333 | |
One to two years | 8,749 | |
Two to three years | 9,186 | |
Three to four years | 9,644 | |
Four to five years | 5,001 | |
Gross debt | 40,913 | $ 48,850 |
Unamortized debt issuance costs | (2,195) | |
Total debt | 38,718 | |
Less: current maturities | (8,333) | |
Long-term debt | $ 30,385 |
Long-Term Debt - Credit Agreeme
Long-Term Debt - Credit Agreement (Details) - ABL Facility Maturing September 2026 $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Borrowing capacity | $ 100 |
Maturity date | Sep. 30, 2026 |
Springing maturity period | 91 days |
Outstanding principal amount with a springing maturity | $ 50 |
Additional commitments (up to) | 50 |
Sub-limit for the issuance of letters of credit | 10 |
Borrowings under ABL Facility | 0 |
Available borrowing capacity | 81.8 |
Letters of credit issued | 2.2 |
Pro Forma | |
Debt Instrument [Line Items] | |
Available borrowing capacity | $ 20 |
Available borrowing capacity (as a percent of borrowing base) | 10% |
Permitted debt for the deferred purchase price of property | $ 50 |
Availability of the borrowing base to satisfy and maintain fixed charge ratio | $ 10 |
Period prior to maturity to maintain a pro forma minimum excess availability | 91 days |
Minimum | |
Debt Instrument [Line Items] | |
Commitment fee percentage | 0.375% |
Fixed charge coverage ratio | 1 |
Maximum | |
Debt Instrument [Line Items] | |
Commitment fee percentage | 0.50% |
United States | |
Debt Instrument [Line Items] | |
Borrowing capacity | $ 65 |
United States | SOFR | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.50% |
United States | SOFR | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 2% |
United States | Base Rate | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 0.50% |
United States | Base Rate | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1% |
United Kingdom | |
Debt Instrument [Line Items] | |
Borrowing capacity | $ 35 |
United Kingdom | SOFR | |
Debt Instrument [Line Items] | |
Adjustment on variable rate (as a percent) | 0.10% |
United Kingdom | SOFR | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.50% |
United Kingdom | SOFR | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 2% |
United Kingdom | SONIA | Minimum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.50% |
United Kingdom | SONIA | Maximum | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 2% |
Long-Term Debt - Convertible Se
Long-Term Debt - Convertible Senior Notes Due 2022 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | May 01, 2022 | |
Debt Instrument [Line Items] | |||||
Interest expense | $ 4,923 | $ 6,097 | $ 15,264 | $ 18,152 | |
Amortization of debt issuance costs | 1,744 | 2,596 | |||
2022 Notes (matured May 2022) | |||||
Debt Instrument [Line Items] | |||||
Repurchased principal amount | $ 35,000 | ||||
Interest rate (as a percent) | 4.80% | ||||
Interest expense | 400 | $ 600 | 1,300 | ||
Coupon interest expense | $ 400 | 1,100 | |||
Amortization of debt issuance costs | $ 200 |
Long-Term Debt - Convertible _2
Long-Term Debt - Convertible Senior Notes Due 2023 (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) $ / shares | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||
Interest expense | $ 4,923,000 | $ 6,097,000 | $ 15,264,000 | $ 18,152,000 |
Amortization of debt issuance costs | $ 1,744,000 | 2,596,000 | ||
2023 Notes (mature September 2023) | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 4.125% | 4.125% | ||
Frequency of periodic payment | semi-annually | |||
Maturity date | Sep. 15, 2023 | |||
Initial conversion ratio | 0.1056133 | |||
Aggregate number of shares | shares | 3,168,399 | |||
Initial conversion price per share (USD per share) | $ / shares | $ 9.47 | $ 9.47 | ||
Increase in the conversion rate | 0.0475260 | |||
Redemption price as a percentage of principal amount | 100% | |||
Effective interest rate (as a percent) | 4.80% | 4.80% | ||
Interest expense | $ 400,000 | 300,000 | $ 1,100,000 | 1,000,000 |
Coupon interest expense | $ 300,000 | $ 300,000 | 900,000 | 900,000 |
Amortization of debt issuance costs | $ 100,000 | $ 100,000 | ||
2023 Notes (mature September 2023) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Percentage of closing price of common stock to conversion price | 130% | |||
Number of trading days | 20 | |||
Number of consecutive trading days | 30 | |||
2023 Notes (mature September 2023) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Percentage of closing price of common stock to conversion price | 97% | |||
Number of trading days | 5 | |||
Number of consecutive trading days | 10 |
Long-Term Debt - Convertible _3
Long-Term Debt - Convertible Senior Notes Due 2026 (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) $ / shares | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||
Interest expense | $ 4,923,000 | $ 6,097,000 | $ 15,264,000 | $ 18,152,000 |
Amortization of debt issuance costs | $ 1,744,000 | 2,596,000 | ||
2026 Notes (mature February 2026) | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 6.75% | 6.75% | ||
Maturity date | Feb. 15, 2026 | |||
Frequency of periodic payment | semi-annually | |||
Initial conversion ratio | 0.1433795 | |||
Aggregate number of shares | shares | 28,675,900 | |||
Initial conversion price per share (USD per share) | $ / shares | $ 6.97 | $ 6.97 | ||
Increase in the conversion rate | 0.0645207 | |||
Redemption price as a percentage of principal amount | 100% | |||
Effective interest rate (as a percent) | 7.60% | 7.60% | ||
Interest expense | $ 3,700,000 | 3,700,000 | $ 11,100,000 | 11,000,000 |
Coupon interest expense | 3,400,000 | 3,400,000 | 10,100,000 | 10,100,000 |
Amortization of debt issuance costs | $ 300,000 | $ 300,000 | $ 1,000,000 | $ 900,000 |
2026 Notes (mature February 2026) | Maximum | ||||
Debt Instrument [Line Items] | ||||
Percentage of closing price of common stock to conversion price | 130% | |||
Number of trading days | 20 | |||
Number of consecutive trading days | 30 | |||
2026 Notes (mature February 2026) | Minimum | ||||
Debt Instrument [Line Items] | ||||
Percentage of closing price of common stock to conversion price | 97% | |||
Number of trading days | 5 | |||
Number of consecutive trading days | 10 |
Long-Term Debt - 2026 Capped Ca
Long-Term Debt - 2026 Capped Calls (Details) - 2026 Capped Calls $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Debt Instrument [Line Items] | |
Aggregate number of common shares subject to capped calls | shares | 28,675,900 |
Initial strike price | $ 6.97 |
Initial cap price | $ 8.42 |
Aggregate cost of capped call transactions | $ | $ 10.6 |
Long-Term Debt - MARAD Debt (De
Long-Term Debt - MARAD Debt (Details) - MARAD Debt (matures February 2027) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Instrument [Line Items] | |
Guarantor obligations (as a percent) | 50% |
Frequency of periodic payment | semi-annual |
Maturity date | February 2027 |
Interest rate (as a percent) | 4.93% |
Long-Term Debt - Former Credit
Long-Term Debt - Former Credit Agreement (Details) $ in Millions | 1 Months Ended |
Sep. 30, 2021 USD ($) | |
Revolving Credit Facility Previously Maturing December 2021 | |
Debt Instrument [Line Items] | |
Borrowing capacity | $ 175 |
Borrowings under Revolving Credit Facility | 0 |
Term Loan Repaid September 2021 | |
Debt Instrument [Line Items] | |
Remaining principal amount repaid | $ 28 |
Long-Term Debt - Former Nordea
Long-Term Debt - Former Nordea Q5000 Loan (Details) $ in Millions | Jan. 31, 2021 USD ($) |
Nordea Q5000 Loan Matured January 2021 | |
Debt Instrument [Line Items] | |
Balloon payment | $ 53.6 |
Long-Term Debt - Components Of
Long-Term Debt - Components Of Net Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Disclosure [Abstract] | ||||
Interest expense | $ 4,923 | $ 6,097 | $ 15,264 | $ 18,152 |
Interest income | (279) | (169) | (647) | (252) |
Net interest expense | $ 4,644 | $ 5,928 | $ 14,617 | $ 17,900 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (benefit) | $ 6,500 | $ (1,058) | $ 10,074 | $ (2,910) |
Effective tax rate | (53.00%) | 5.30% | (12.50%) | 7.50% |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Disaggregation Of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue From Contracts With Customers | ||||
Net revenues | $ 272,547 | $ 180,716 | $ 585,284 | $ 506,072 |
Intercompany Eliminations | ||||
Revenue From Contracts With Customers | ||||
Net revenues | (13,409) | (11,773) | (36,503) | (36,962) |
Well Intervention | ||||
Revenue From Contracts With Customers | ||||
Net revenues | 143,925 | 131,314 | 356,583 | 397,387 |
Well Intervention | Intercompany Eliminations | ||||
Revenue From Contracts With Customers | ||||
Net revenues | (4,303) | (4,267) | (12,046) | (17,060) |
Robotics | ||||
Revenue From Contracts With Customers | ||||
Net revenues | 56,182 | 42,623 | 143,383 | 96,430 |
Robotics | Intercompany Eliminations | ||||
Revenue From Contracts With Customers | ||||
Net revenues | (8,971) | (7,506) | (24,322) | (19,902) |
Shallow Water Abandonment | ||||
Revenue From Contracts With Customers | ||||
Net revenues | 67,401 | 67,401 | ||
Shallow Water Abandonment | Intercompany Eliminations | ||||
Revenue From Contracts With Customers | ||||
Net revenues | (135) | (135) | ||
Production Facilities | ||||
Revenue From Contracts With Customers | ||||
Net revenues | 18,448 | 18,552 | 54,420 | 49,217 |
Short-term | ||||
Revenue From Contracts With Customers | ||||
Net revenues | 205,339 | 123,140 | 429,087 | 279,445 |
Short-term | Intercompany Eliminations | ||||
Revenue From Contracts With Customers | ||||
Net revenues | (135) | (770) | ||
Short-term | Well Intervention | ||||
Revenue From Contracts With Customers | ||||
Net revenues | 111,378 | 92,954 | 288,772 | 218,840 |
Short-term | Robotics | ||||
Revenue From Contracts With Customers | ||||
Net revenues | 26,695 | 30,186 | 73,684 | 60,605 |
Short-term | Shallow Water Abandonment | ||||
Revenue From Contracts With Customers | ||||
Net revenues | 67,401 | 67,401 | ||
Long-term | ||||
Revenue From Contracts With Customers | ||||
Net revenues | 67,208 | 57,576 | 156,197 | 226,627 |
Long-term | Intercompany Eliminations | ||||
Revenue From Contracts With Customers | ||||
Net revenues | (13,274) | (11,773) | (35,733) | (36,962) |
Long-term | Well Intervention | ||||
Revenue From Contracts With Customers | ||||
Net revenues | 32,547 | 38,360 | 67,811 | 178,547 |
Long-term | Robotics | ||||
Revenue From Contracts With Customers | ||||
Net revenues | 29,487 | 12,437 | 69,699 | 35,825 |
Long-term | Production Facilities | ||||
Revenue From Contracts With Customers | ||||
Net revenues | $ 18,448 | $ 18,552 | $ 54,420 | $ 49,217 |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract assets | $ 0.7 | $ 0.7 | $ 0.6 | ||
Credit losses on contract assets | 0 | $ 0 | 0 | $ 0 | |
Contract liabilities | 20.8 | 20.8 | 8.7 | ||
Revenue recognized | 2.7 | 4 | 7 | 6.7 | |
Deferred contract costs | 18.5 | 18.5 | $ 3.3 | ||
Amortization of deferred contract costs | $ 8.5 | $ 11.7 | $ 19.7 | $ 31.6 |
Revenue From Contracts With C_5
Revenue From Contracts With Customers - Remaining Performance Obligations (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Revenue From Contracts With Customers | |
Unsatisfied performance obligations | $ 758.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue From Contracts With Customers | |
Unsatisfied performance obligations | $ 162 |
Expected timing of satisfaction | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue From Contracts With Customers | |
Unsatisfied performance obligations | $ 426.4 |
Expected timing of satisfaction | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue From Contracts With Customers | |
Unsatisfied performance obligations | $ 170 |
Expected timing of satisfaction | 12 months |
Earnings Per Share - Computatio
Earnings Per Share - Computations Of Basic And Diluted EPS (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Basic: | ||||
Net loss attributable to common shareholders | $ (18,763) | $ (19,043) | $ (90,493) | $ (35,630) |
Less: Accretion of redeemable noncontrolling interests | (241) | |||
Net loss available to common shareholders, basic | $ (18,763) | $ (19,043) | $ (90,493) | $ (35,871) |
Weighted average number of shares outstanding, basic (in shares) | 151,331 | 150,088 | 151,226 | 150,018 |
Diluted: | ||||
Net loss available to common shareholders, diluted | $ (18,763) | $ (19,043) | $ (90,493) | $ (35,871) |
Weighted average number of shares outstanding, diluted (in shares) | 151,331 | 150,088 | 151,226 | 150,018 |
Earnings Per Share - Shares Inc
Earnings Per Share - Shares Included in Diluted Calculations Assuming Earnings (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Diluted shares (as reported) | 151,331 | 150,088 | 151,226 | 150,018 |
Share-based awards | 1,471 | 1,384 | 1,332 | 1,306 |
Total | 152,802 | 151,472 | 152,558 | 151,324 |
Earnings Per Share - Potentiall
Earnings Per Share - Potentially Dilutive Shares Excluded From Diluted EPS Calculation (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
2022 Notes | ||||
Earnings Per Share | ||||
Antidilutive securities (in shares) | 2,519 | 803 | 2,519 | |
2023 Notes | ||||
Earnings Per Share | ||||
Antidilutive securities (in shares) | 3,168 | 3,168 | 3,168 | 3,168 |
2026 Notes | ||||
Earnings Per Share | ||||
Antidilutive securities (in shares) | 28,676 | 28,676 | 28,676 | 28,676 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jan. 04, 2022 item | Jan. 04, 2021 item | Jan. 31, 2022 USD ($) shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) | |
401(k) Plan | |||||||
Employee Benefit Plans | |||||||
Employer matching contribution (as a percent) | 50% | ||||||
Employer matching contribution percent of employees' salary (up to) | 5% | ||||||
Plan cost recognized | $ 0.4 | $ 1.1 | |||||
2005 Incentive Plan | |||||||
Employee Benefit Plans | |||||||
Shares available for issuance (in shares) | shares | 4,100,000 | 4,100,000 | |||||
Restricted Stock | |||||||
Employee Benefit Plans | |||||||
Stock awards granted (in shares) | shares | 0 | ||||||
Compensation cost | $ 0.5 | $ 0.8 | $ 1.9 | $ 2.5 | |||
PSUs | |||||||
Employee Benefit Plans | |||||||
Number of components of equity awards granted | item | 2 | 2 | |||||
Percentage based on service and market conditions | 50% | 50% | |||||
Percentage based on service and performance conditions | 50% | 50% | |||||
Compensation cost | 1.5 | 1 | 3.6 | 3.1 | |||
Performance Period | 3 years | ||||||
Share-based payment awards vested (in shares) | shares | 559,150 | ||||||
Award vesting percentage | 157% | ||||||
PSUs | Common Stock | |||||||
Employee Benefit Plans | |||||||
Share-based payment awards vested (in shares) | shares | 876,469 | ||||||
Fair value of awards vested | $ 3.2 | ||||||
PSUs | Maximum | |||||||
Employee Benefit Plans | |||||||
Award vesting percentage | 200% | ||||||
PSUs | Minimum | |||||||
Employee Benefit Plans | |||||||
Award vesting percentage | 0% | ||||||
RSUs | |||||||
Employee Benefit Plans | |||||||
Compensation cost | 0.7 | 1.5 | 0.4 | ||||
Fixed Value Cash Awards | |||||||
Employee Benefit Plans | |||||||
Long-term incentive cash awards granted | 5.4 | 3.5 | $ 5.4 | 3.5 | |||
Vesting period | 3 years | ||||||
Deferred compensation cost | $ 1.1 | $ 1 | $ 3.2 | $ 3 | |||
ESPP | |||||||
Employee Benefit Plans | |||||||
Shares available for issuance (in shares) | shares | 1,400,000 | 1,400,000 | |||||
Purchase limit per employee (in shares) | shares | 260 |
Employee Benefit Plans - Share-
Employee Benefit Plans - Share-Based Awards Granted (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 22, 2022 director $ / shares shares | Jul. 01, 2022 $ / shares shares | Apr. 01, 2022 $ / shares shares | Jan. 04, 2022 $ / shares shares | Jan. 01, 2022 $ / shares shares | Jan. 31, 2022 shares | Jun. 30, 2022 shares | Sep. 30, 2022 shares | |
RSUs | Executive Officers | ||||||||
Employee Benefit Plans | ||||||||
Date of Grant | Jan. 01, 2022 | |||||||
Shares/Units | 1,065,705 | |||||||
Grant Date Fair Value Per Share/Unit | $ / shares | $ 3.12 | |||||||
Vesting Percentage | 33% | |||||||
Vesting Period | 3 years | |||||||
RSUs | Board of Directors | ||||||||
Employee Benefit Plans | ||||||||
New members of the Board of Directors | director | 2 | |||||||
PSUs | ||||||||
Employee Benefit Plans | ||||||||
Vesting Percentage | 157% | |||||||
Share-based payment awards vested (in shares) | 559,150 | |||||||
PSUs | Executive Officers | ||||||||
Employee Benefit Plans | ||||||||
Date of Grant | Jan. 04, 2022 | |||||||
Shares/Units | 1,065,705 | |||||||
Grant Date Fair Value Per Share/Unit | $ / shares | $ 4.25 | |||||||
Vesting Percentage | 100% | |||||||
Vesting Date | Jan. 04, 2025 | |||||||
Restricted Stock | ||||||||
Employee Benefit Plans | ||||||||
Shares/Units | 0 | |||||||
Restricted Stock | Board of Directors | ||||||||
Employee Benefit Plans | ||||||||
Date of Grant | Sep. 22, 2022 | Jul. 01, 2022 | Apr. 01, 2022 | Jan. 04, 2022 | ||||
Shares/Units | 19,328 | 14,867 | 14,710 | 15,775 | ||||
Grant Date Fair Value Per Share/Unit | $ / shares | $ 4.38 | $ 3.10 | $ 4.78 | $ 3.12 | ||||
Vesting Percentage | 100% | 100% | 100% | 100% | ||||
Vesting Date | Sep. 22, 2023 | Jan. 01, 2024 | Jan. 01, 2024 | Jan. 01, 2024 | ||||
Restricted Stock | Board of Directors | Shares granted on January 4, 2022 | ||||||||
Employee Benefit Plans | ||||||||
Share-based payment awards vested (in shares) | 8,013 | |||||||
Restricted Stock | Board of Directors | Shares granted on April 1, 2022 | ||||||||
Employee Benefit Plans | ||||||||
Share-based payment awards vested (in shares) | 5,230 |
Business Segment Information -
Business Segment Information - Narrative (Details) - segment | 3 Months Ended | 6 Months Ended |
Sep. 30, 2022 | Jun. 30, 2022 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 4 | 3 |
Business Segment Information _2
Business Segment Information - Financial Data By Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Segment Information | ||||
Net revenues | $ 272,547 | $ 180,716 | $ 585,284 | $ 506,072 |
Income (loss) from operations | 12,226 | (10,331) | (39,727) | (21,827) |
Reportable Segments | ||||
Business Segment Information | ||||
Income (loss) from operations | 32,792 | (3,318) | 1,528 | 3,723 |
Intercompany Eliminations | ||||
Business Segment Information | ||||
Net revenues | (13,409) | (11,773) | (36,503) | (36,962) |
Corporate, Eliminations and Other | ||||
Business Segment Information | ||||
Income (loss) from operations | (20,566) | (7,013) | (41,255) | (25,550) |
Well Intervention | ||||
Business Segment Information | ||||
Net revenues | 143,925 | 131,314 | 356,583 | 397,387 |
Well Intervention | Reportable Segments | ||||
Business Segment Information | ||||
Net revenues | 143,925 | 131,314 | 356,583 | 397,387 |
Income (loss) from operations | (1,304) | (13,343) | (55,610) | (14,819) |
Well Intervention | Intercompany Eliminations | ||||
Business Segment Information | ||||
Net revenues | (4,303) | (4,267) | (12,046) | (17,060) |
Robotics | ||||
Business Segment Information | ||||
Net revenues | 56,182 | 42,623 | 143,383 | 96,430 |
Robotics | Reportable Segments | ||||
Business Segment Information | ||||
Net revenues | 56,182 | 42,623 | 143,383 | 96,430 |
Income (loss) from operations | 11,708 | 4,936 | 22,854 | 2,257 |
Robotics | Intercompany Eliminations | ||||
Business Segment Information | ||||
Net revenues | (8,971) | (7,506) | (24,322) | (19,902) |
Shallow Water Abandonment | ||||
Business Segment Information | ||||
Net revenues | 67,401 | 67,401 | ||
Shallow Water Abandonment | Reportable Segments | ||||
Business Segment Information | ||||
Net revenues | 67,401 | 67,401 | ||
Income (loss) from operations | 16,320 | 16,320 | ||
Shallow Water Abandonment | Intercompany Eliminations | ||||
Business Segment Information | ||||
Net revenues | (135) | (135) | ||
Production Facilities | ||||
Business Segment Information | ||||
Net revenues | 18,448 | 18,552 | 54,420 | 49,217 |
Production Facilities | Reportable Segments | ||||
Business Segment Information | ||||
Net revenues | 18,448 | 18,552 | 54,420 | 49,217 |
Income (loss) from operations | $ 6,068 | $ 5,089 | $ 17,964 | $ 16,285 |
Business Segment Information _3
Business Segment Information - Intercompany Segment Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Segment Information | ||||
Net revenues | $ (272,547) | $ (180,716) | $ (585,284) | $ (506,072) |
Well Intervention | ||||
Business Segment Information | ||||
Net revenues | (143,925) | (131,314) | (356,583) | (397,387) |
Robotics | ||||
Business Segment Information | ||||
Net revenues | (56,182) | (42,623) | (143,383) | (96,430) |
Shallow Water Abandonment | ||||
Business Segment Information | ||||
Net revenues | (67,401) | (67,401) | ||
Intercompany Eliminations | ||||
Business Segment Information | ||||
Net revenues | 13,409 | 11,773 | 36,503 | 36,962 |
Intercompany Eliminations | Well Intervention | ||||
Business Segment Information | ||||
Net revenues | 4,303 | 4,267 | 12,046 | 17,060 |
Intercompany Eliminations | Robotics | ||||
Business Segment Information | ||||
Net revenues | 8,971 | $ 7,506 | 24,322 | $ 19,902 |
Intercompany Eliminations | Shallow Water Abandonment | ||||
Business Segment Information | ||||
Net revenues | $ 135 | $ 135 |
Business Segment Information _4
Business Segment Information - Total Assets By Reportable Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Business Segment Information | ||
Total assets | $ 2,355,497 | $ 2,326,028 |
Corporate, Eliminations and Other | ||
Business Segment Information | ||
Total assets | 73,363 | 98,561 |
Well Intervention | Reportable Segments | ||
Business Segment Information | ||
Total assets | 1,769,705 | 2,012,214 |
Robotics | Reportable Segments | ||
Business Segment Information | ||
Total assets | 172,521 | 96,249 |
Shallow Water Abandonment | Reportable Segments | ||
Business Segment Information | ||
Total assets | 200,987 | |
Production Facilities | Reportable Segments | ||
Business Segment Information | ||
Total assets | $ 138,921 | $ 119,004 |
Asset Retirement Obligations -
Asset Retirement Obligations - Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Aug. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Asset Retirement Obligations | ||||
Property and equipment | $ 2,945,654 | $ 2,938,154 | ||
Changes in our AROs: | ||||
AROs at beginning of year | 29,658 | $ 30,913 | ||
Liability incurred during the period | 23,601 | |||
Revisions in estimates | (2,631) | |||
Accretion expense | 1,465 | 736 | ||
AROs at end of period | 54,724 | $ 29,018 | ||
Production Facilities | Thunder Hawk Field | ||||
Asset Retirement Obligations | ||||
Ownership percentage | 62.50% | |||
Production Facilities | Thunder Hawk Field | ARO | ||||
Asset Retirement Obligations | ||||
Property and equipment | $ 23,600 |
Statement Of Cash Flow Inform_3
Statement Of Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | $ 18,143 | $ 19,945 |
Income taxes paid | $ 6,631 | $ 6,771 |
Statement Of Cash Flow Inform_4
Statement Of Cash Flow Information - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jul. 01, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Non-cash capital additions | $ 300 | $ 300 | |
Alliance | |||
Post-closing earn-out consideration payable | $ 26,700 |
Allowance For Credit Losses - A
Allowance For Credit Losses - Activities In Allowance For Credit Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Allowance for credit losses | ||
Balance at beginning of year | $ 1,477 | $ 3,469 |
Additions (reductions) | 710 | (213) |
Write-offs | (1,846) | |
Balance at end of period | $ 2,187 | $ 1,410 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets And Liabilities At Fair Value On Recurring Basis (Details) - Recurring $ in Thousands | Sep. 30, 2022 USD ($) |
Fair Value Measurements | |
Contingent consideration | $ 29,364 |
Level 3 | |
Fair Value Measurements | |
Contingent consideration | $ 29,364 |
Fair Value Measurements - Input
Fair Value Measurements - Inputs Used in Valuation (Details) | Sep. 30, 2022 |
Weighted-average volatility | |
Fair Value Measurements | |
Contingent consideration, measurement input | 0.475 |
Weighted average discount rate | |
Fair Value Measurements | |
Contingent consideration, measurement input | 0.092 |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Fair Value of Contingent Consideration (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | |
Change in the fair value of contingent consideration: | |||
Balance at July 1, | $ 26,700 | ||
Change in fair value | $ 2,664 | 2,664 | $ 2,664 |
Balance at end of period | $ 29,364 | $ 29,364 | $ 29,364 |
Fair Value Measurements - Princ
Fair Value Measurements - Principal Amount And Estimated Fair Value Of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Measurements | ||
Principal Amount | $ 270,913 | $ 313,850 |
Fair Value | 275,754 | 316,891 |
MARAD Debt (matures February 2027) | ||
Fair Value Measurements | ||
Principal Amount | 40,913 | 48,850 |
Fair Value | 40,496 | 52,481 |
2022 Notes (matured May 2022) | ||
Fair Value Measurements | ||
Principal Amount | 35,000 | |
Fair Value | 34,794 | |
2023 Notes (mature September 2023) | ||
Fair Value Measurements | ||
Principal Amount | 30,000 | 30,000 |
Fair Value | 29,504 | 29,054 |
2026 Notes (mature February 2026) | ||
Fair Value Measurements | ||
Principal Amount | 200,000 | 200,000 |
Fair Value | $ 205,754 | $ 200,562 |