Helix to focus on deepwater construction and well intervention
Helix Energy Solutions (NYSE:HLX) announced today that it intends to focus and shape the future direction of the Company around its deepwater construction and well intervention services. In order to achieve this strategic focus, the Company is seeking to:
1. Divest all or a portion of the Company's oil and gas assets;
2. Divest its interest in production facilities; and
3. Evaluate strategic alternatives with respect to the disposition of its 58% owned subsidiary, Cal Dive International.
The Company has engaged financial advisors to assist the Company in its efforts with respect to these matters.
The Company anticipates that present economic and financial market conditions will affect the timing of any strategic dispositions and may require a degree of patience in order to execute any transactions. As a result, the Company is unable to be specific with respect to a timetable for any disposition, but it intends to aggressively focus on deleveraging its balance sheet through monetization of non-core assets and allocation of free cash flows in order to accelerate its strategic goals. As such, the Company intends to market a broad array of non-core assets in order to reduce debt and lower obstacles to the execution of its strategy.
Owen Kratz, President and Chief Executive Officer of Helix, stated, "We believe that unlocking the asset value in the Company via debt reduction and the divestment of assets outside of our core business focus will enhance shareholder value and position the Company to take advantage of opportunities for future growth or value creation in our strongest core competencies."
Consistent with its strategy to divest non-core assets, the Company also announced today the signing of an Asset Purchase Agreement to sell its 17.5% non-operating working interest in its Bass Lite field in the Gulf of Mexico for $49 million to one of the other owners in the field. The sale is subject to other co-owners' exercising their preferential purchase rights for a portion of the Company's interest. The Company expects to complete the sale of all of its interest in the Bass Lite field over the next few weeks.
