Oct 28, 2026 earnings call — Combination of Helix and Hornbeck Offshore
Helix and Hornbeck will combine in an all-stock deal; Helix shareholders to own approximately 45% with expected $75 million or more annual synergies within 3 years.
Key quotes
"This is structured as an all stock transaction. Which will allow shareholders from both sides to participate in the significant upside potential of the combined company."
"All of this, in combination with the significant annual revenue and cost synergies the transaction is expected to generate, of $75 million or more within 3 years following the close, make for a strong combination rationale."
"I am happy to report now that we have both vessels out actively working. And we are expecting good utilization for the monoholes in the North Sea."
Analyst Q&A 6
synergy split and vessel moves
Q (Keith Beckman · Pickering Energy Partners): He asked to break down the $75 million synergies and how much is captured early, in the first 6–12 months. He also asked whether vessels might be moved outside cabotage markets and outside the Americas.
A: Management said most capture will be revenue synergies from combining assets to increase utilization across ROVs, supply vessels, subsea construction vessels, and well intervention. They also said the larger fleet gives cost synergies in procurement and engineering. They will move assets where they are most valuable and where the business is.
"I think the capture will be revenue synergies and being able to combine these assets together to offer a full plentiful offering to the customers that should increase utilization across the board on ROVs, the supply vessels, the subsea construction vessels, and well intervention." — Todd Hornbeck (CEO·CHAIR)
backlog size and balance sheet use
Q (Benjamin Sommers · BTIG): He asked about the $2 billion backlog duration and how it breaks down across business lines. He also asked how the strong balance sheet will be used to grow the business or create shareholder value.
A: Management said Helix's portion of the backlog is about a billion dollars, covering a significant portion this year and into next year, and Hornbeck's backlog is about a billion as well including long-term military contracts and specialty vessels. They said the combined company has a strong balance sheet with cash and will grow divisions internationally and pursue organic growth or acquisitions in regions like Brazil, South America, and West Africa.
"So from Helix reports their backlog, in ours close to a billion dollars." — Erik Staffeldt (CFO)
synergy split and OSV capital
Q (James Schumm · TD Cowen): He asked the split between revenue and cost synergies for the $75 million. He also asked about capital intensity of the OSV business and remaining capital on the two new MPSVs.
A: They said they have not disclosed a full split yet and will provide more in the merger proxy, but the majority will probably be revenue synergies plus cost efficiencies from combining services. On capital, they said OSVs are deepwater ultra deepwater vessels, the market is tightening, 23 vessels can be reactivated at low cost, and there is about $50 million left to spend on the two new MPSVs.
"But the majority of it probably will be from revenue synergies and cost efficiencies by putting the companies together and streamlining our services." — Todd Hornbeck (CEO·CHAIR)
global demand and Mexico outlook
Q (Don Kreis · John Rice): He asked Scott to walk around global demand and explain how activity trends affect Well-Enhancer and Seawell and the rest of the year. He also asked about day rates and any changes in Mexico that could absorb vessels.
A: Scott said North Sea demand and decommissioning are improving and both monohole vessels are actively working, Americas well intervention activity is increasing with vessels working for Shell and Oxy, and trenching work is booked out into 2026–2032 with very high ROV demand possibly requiring more capital. Todd said Mexico has cabotage-protected vessels, Woodside's Trion project started with four long-term contracts and a 10-year supply commitment, and they see green shoots with IOCs returning that make Mexico promising over the next few years.
"We have work booked out in, 2026, 27 on trenching, work booked out all the way to 2030, and bid activity and a very good pipeline of activity out to 2032 on the trenching side." — Scott Andrew Sparks (COO)
OSV market and ROV lead times
Q (Joshua Jayne · Daniel Energy Partners): He asked for views on OSV supply and demand, including opportunities outside current markets. He also asked if the deal could accelerate ROV capital spending and what current ROV lead times are.
A: Todd said Hornbeck focuses on ultra deepwater PSVs (4,000–6,000 dwt), the market is thin with Petrobras contracting capacity, rigs coming online in the second half should tighten supply, leading edge rates are in the mid forties, and about 70% of revenue comes from specialty business. Scott said ROVs have a 6-month build lead time and the business can scale up quickly; Hornbeck currently hires ROVs and will internalize them, so they may accelerate capital or pursue acquisitions as needed.
"So to build a new ROV right now is a 6-month lead time." — Scott Andrew Sparks (COO)
Hornbeck debt and Helix rationale
Q (James Schumm · TD Cowen): He asked whether Hornbeck net debt is about $480 million and what the net debt number is. He also asked why this deal is good for Helix shareholders.
A: Management said the earlier number discussed was gross debt and that cash is "between 75 and 100, you know, $80.90, something like that," and they said net debt is "around $3.80." Bill Transier said the combination creates scale, reduces cost of capital, and lets the companies do more together than alone, which he views as a better outcome for shareholders.
"It represents a really kind of a unique opportunity for these companies to come together and do more than they could on a stand alone basis." — Bill Transier (CHAIR)