Connor Lynagh

Connor Lynagh, speaking for Jim Rollyson, inquired about Helix Energy Solutions' capital allocation strategy, specifically the preference between share repurchases and M&A, and the current landscape of actionable M&A opportunities. He also asked for an update on the North Sea market conditions and the expected utilization for the Seawell vessel.

Answer

President and CEO Owen Kratz stated that M&A opportunities are being assessed in collaboration with the board and management, with consideration for the incoming CEO. EVP and COO Scotty Sparks reported a significantly improved North Sea market in 2026, driven by decommissioning projects, anticipating active seasons for both the Seawell and Well Enhancer, with activity extending into 2027.

Connor Lynagh asked about Helix Energy Solutions' preference for utilizing its substantial cash balance, specifically weighing share repurchases against M&A opportunities, and inquired about the current M&A market landscape and any actionable opportunities. He also sought an update on the North Sea market conditions following a weaker previous year and the expected utilization for the Seawell vessel.

Answer

Owen Kratz, President and CEO, stated that the board and management are collaboratively assessing all options for cash utilization, noting that M&A opportunities exist and require buy-in from the incoming CEO. Scotty Sparks, EVP and COO, reported a much better North Sea activity outlook for 2026, driven by a shift towards decommissioning projects, and confirmed active seasons for both the Seawell and Well Enhancer, with activity already extending into 2027.

Connor Lynagh questioned the progress, customer feedback, repeat rates, and margin impact of Zoro-branded private label products.

Answer

Chairman and CEO D.G. Macpherson stated the private label products are not yet material enough to impact overall margins but have shown good early success in repeat rates and positive feedback from core business customers.

Connor Lynagh from Bernstein asked about the progress, customer feedback, and repeat rates for Zoro-branded private label products, as well as their margin impact on the business.

Answer

D.G. Macpherson, Chairman and CEO, stated that the Zoro-branded private label products are not yet material enough to impact overall margins but have shown good early success in repeat rates, with positive feedback from core business customers.