# Letter to Shareholders

_Source: `DeepSeekOCR_Ardian_pruned_1k/energy-oil-gas-equipment-services/NYSE_HLX_2022/NYSE_HLX_2022.mmd` · pages 3-9_

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Letter to Shareholders

## Dear Shareholders,

We long described 2022 as a transitional year for Helix, and that has borne itself out. We entered 2022 with a post-COVID recovery market that lacked direction, which was quickly impacted by the onset of the Ukrainian conflict. Last year at this time we didn't have much market visibility, and we were navigating the challenges of long-term contracts rolling off and a difficult rate environment. Our Company persevered and remained committed to our core values. We have witnessed the continued migration towards renewables, and the collective realization that Energy Security is an essential component of an energy transition. Today, Helix has the best visibility for the foreseeable future that we've had in years.

In 2022 we delivered meaningful financial improvements with EBITDA increasing to \(121 million and Revenue growing to \)873 million, and we marked our fifth consecutive year of generating positive Free Cash Flow. Significant to our committed strategy, in July we acquired the Alliance group of companies, enhancing our capabilities and expanding our services to the shallow waters predominantly in the Gulf of Mexico shelf, and establishing Helix as a provider of full field decommissioning services.

Additional operational highlights in 2022 included:

entering into new longer-term deepwater well intervention and decommissioning contracts for the Siem Helix 1, Siem Helix 2 and Q7000, as well as the extension of our Helix Producer 1 contract;

establishing new time charter agreements for vessels supporting operations in multiple regions;

acquiring a majority interest in the Thunder Hawk Field which is currently producing in the Gulf of Mexico; and

strategically acquiring niche equipment such as intervention systems, trenchers and a boulder grab.

We maintained the financial discipline to fully redeem our Convertible Notes due 2022, and ended the year with approximately $75 million of Net Debt while funding our growth opportunities with cash on hand.
Each of these highlights underscores our three-legged business model of facilitating a global energy transition by Maximizing Production of remaining oil and gas reserves, supporting Renewable Energy developments, and Decommissioning end-of-life oil and gas fields. Our Well Intervention services are naturally hedged between maximizing reserves and decommissioning, depending on commodity price and political winds, with both representing mature end-of-life oil and gas activities. Our Robotics group continues Helix's strong position within the offshore wind farm space for trenching and site preparation work. The Alliance acquisition expanded our service offering into shallow water and has further established Helix as a full-field decommissioning company, along with its other services supporting the full life cycle of offshore fields.

We understand the important role Helix plays as a steward of the people, communities and environments we serve. Sustainability lies at the heart of our business model and the services we provide: we allow customers to maximize production and avoid drilling new wells, we support renewable energy initiatives, and we safely and effectively decommission fields to restore the ocean's seabeds. In our most recent Corporate Sustainability Report published in November 2022 we reported on our GHG Emissions metrics for the prior three years and our current reduction targets. We are proud of our long-established environmental stewardship efforts and strong ESG record. Our ESG efforts place us at the forefront of a global energy transition, and we believe that translates to long-term value for our shareholders.

Looking ahead in 2023, we are expecting to continue the improvements seen in the second half of 2022. We have multiregional optionality and pricing leverage with a strong near-term outlook for each of our operating segments. Our strategy will be to maintain capital spending discipline and focus on Free Cash Flow generation.

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In light of this outlook our Board has approved a $200 million Share Repurchase Program. We envision targeting an allocation of approximately 25% of our Free Cash Flow to share repurchases, the timing of which we expect to generally align with our cash generation. This was a significant announcement in Helix's story, a goal we've long communicated to our investors, and we look forward to deploying capital to execute on the Program and Return Value to our shareholders.

In addition to executing on the Share Repurchase Program, we currently intend to cash settle our outstanding debt commitments, likely reserving a portion of cash for smaller incremental additions to our capabilities.

Helix employees form the backbone of our Company, and I am grateful for their hard work. The past few years have been challenging, whether working through a pandemic or navigating an energy industry under significant pressure. The Helix Family has persevered and enabled us to be where we are today. We have grown that family with the addition of Alliance, and as we look for opportunities to continue to build and shape our Company, we want to be known as an industry leader and a place where our people are proud to work. As always, my sincerest thanks to our employees for everything you do.

Our strategy and focus have positioned us well for this improved energy market, and we have begun to see the rewards of our efforts. Ours is a cyclical and volatile industry, so while our outlook is strong we will also be balanced in our execution. I believe we have positioned ourselves for future success, and I thank you for your continued confidence and support.

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President and Chief Executive Officer
Helix Energy Solutions Group, Inc.

"Sustainability lies at the heart of our business model and the services we provide..."

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