Ben Summers

Ben Summers asked for Helix Energy Solutions' expectations regarding potential pricing for well intervention work in late 2026 and early 2027, and identified specific basins where market improvements might drive pricing increases. He also inquired about the near-term utilization outlook for the Q5000 and Q4000 in the U.S. Gulf of Mexico for 2026.

Answer

EVP and COO Scotty Sparks anticipated slightly improved rates in the U.S. Gulf of Mexico in 2027, following expected increases in drilling rates. He noted that North Sea decommissioning work might lead to modest rate improvements but not a significant jump, as it doesn't directly track the drilling market. Q7000 rates would depend on its operational location, such as Brazil versus West Africa. For the U.S. Gulf, Q5000 is well-covered for the first half with some Q3 gaps and a solid Q4, while Q4000 has a good first half but potential white space in the second half, possibly chasing decommissioning or construction work.

Ben Summers asked for insights into potential pricing for well intervention work in the anticipated improving market of late 2026 and early 2027, identifying specific basins that might see significant market improvement and pricing power. He also sought more color on the near-term utilization outlook for the Q5000 and Q4000 in the U.S. Gulf of Mexico for 2026.

Answer

Scotty Sparks, EVP and COO, projected that increased driller utilization and rates in 2027 would lead to slightly improved Helix rates in the U.S. Gulf of Mexico. He noted that North Sea decommissioning work should also result in slightly improved rates, while Q7000 rates would vary based on location (higher in Brazil, variable in Nigeria/Angola). For the U.S. Gulf, he detailed the Q5000 has good utilization in H1, gaps in Q3, and a solid Q4. The Q4000 has a relatively good H1 but a lumpier H2 with white space, potentially chasing decommissioning or construction work.

Ben Summers inquired about the Noble BlackRhino and the U.S. Gulf market, specifically the potential for spot work or redeployment, and expressed concern about projects shifting to the right, particularly in West Africa.

Answer

Robert Eifler, CEO of Noble Corporation, stated that while there might be some spot work for the BlackRhino in 2026, more exciting programs are anticipated for 2027, both in and outside the U.S., with key customers. He acknowledged the constant risk of projects shifting to the right, especially with Brent in the $60s. However, Mr. Eifler noted that the substantial backlog announced by Noble and competitors means fewer pieces are needed for a tight 2027 market, supported by high open demand and flat-to-up upstream CapEx.