8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 28, 2008

Helix Energy Solutions Group, Inc.
(Exact name of registrant as specified in its charter)

Minnesota	001-32936	95-3409686
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

400 North Sam Houston Parkway East, Suite 400 Houston, Texas	77060
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: 281-618-0400

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On February 28, 2008, Helix Energy Solutions Group, Inc. (“Helix”) issued a press release announcing its fourth quarter results of operation for the period ended December 31, 2007 and the financial outlook for the year ending December 31, 2008. Attached hereto as Exhibits 99.1, and incorporated by reference herein, is the press release.

This information is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, and such information is not incorporated by reference into any registration statements or other document filed under the Securities Act of 1933, as amended (“Securities Act”), or the Exchange Act, regardless of the general incorporation language contained in such filing, except as shall be expressly set forth by specific reference to this filing.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 28, 2008, the Board of Directors of Helix appointed Owen Kratz as President and Chief Executive Officer of Helix. Mr. Kratz resumed the role and assumed the responsibilities associated with these offices on February 4, 2008 while holding the office of Executive Chairman.

Item 7.01 Regulation FD Disclosure.

On February 28, 2008, Helix issued a press release announcing its fourth quarter results of operation for the period ended December 31, 2007 and the financial outlook for the year ending December 31, 2008. In addition, on February 29, 2007, Helix is making a presentation (with slides) to analysts and investors regarding its financial and operating results. Attached hereto as Exhibits 99.1 and 99.2, respectively, and incorporated by reference herein are the press release and the slides for the Fourth Quarter Earnings Conference Call & 2008 Outlook Presentation issued by Helix. The presentation materials will also be posted in the Investor Relations section of Helix’s website, www.helixesg.com.

This information is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, and such information is not incorporated by reference into any registration statements or other document filed under the Securities Act of 1933, as amended (“Securities Act”), or the Exchange Act, regardless of the general incorporation language contained in such filing, except as shall be expressly set forth by specific reference to this filing.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits.

Number	Description
99.1	Press Release of Helix Energy Solutions Group, Inc. dated February 28, 2008 reporting financial results for the fourth quarter of 2007 and the financial outlook for the year ending December 31, 2008.
99.2	Fourth Quarter Earnings Conference Call & 2008 Outlook Presentation.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 28, 2008

HELIX ENERGY SOLUTIONS GROUP, INC.

By: /s/ A. WADE PURSELL                                   
A. Wade Pursell
Executive Vice President and Chief Financial Officer

Index to Exhibits

Exhibit No.	Description
99.1	Press Release of Helix Energy Solutions Group, Inc. dated February 28, 2008 reporting financial results for the fourth quarter of 2007 and the financial outlook for the year ending December 31, 2008.
99.2	Fourth Quarter Earnings Conference Call & 2008 Outlook Presentation.

EX-99.1

Exhibit 99.1

PRESSRELEASE

www.HelixESG.com

Helix Energy Solutions Group, Inc. • 400 N. Sam Houston Parkway E., Suite 400 • Houston, TX 77060-3500 • 281-618-0400 • fax: 281-618-0505

For Immediate Release		08-004
	Contact:	Wade Pursell
Date: February 28, 2008	Title:	Chief Financial Officer

Helix Reports Fourth Quarter Results and 2008 Outlook

HOUSTON, TX — Helix Energy Solutions (NYSE: HLX) reported fourth quarter net income of $120.4 million, or $1.25 per diluted share. These results included a $151.7 million pre-tax gain ($1.02 per diluted share) related to our majority owned investment in Cal Dive. This non cash gain results from the acquisition by Cal Dive during the fourth quarter of Horizon Offshore using cash and shares of Cal Dive common stock, resulting in an adjustment in our investment in Cal Dive. During the quarter we also recorded oil and gas impairments / dry hole costs totaling $91.0 million and other net non-recurring charges of $3.4 million (see details on slide 7 of attached presentation). These impairments included $20.9 million pre-tax for the write-off of Devil’s Island as a result of drilling a well in Q1 2008 which found no additional hydrocarbons (the additional $13 million cost of drilling the well will be expensed, as required, in Q1 2008). The net result of these unusual items in Q4 2007 is $0.38 per diluted share. Absent these items, net income for the fourth quarter of 2007 was $83.2 million, or $0.87 per diluted share. This compares to $0.71 per share generated in the fourth quarter of 2006 before the $1.02 per share gain realized in that quarter from the carve-out IPO of our Shelf Contracting segment (“Cal Dive”).

Summary of Results

(in thousands, except per share amounts and percentages)

	Fourth Quarter						Third Quarter			Full Year
	2007			2006			2007			2007			2006
Revenues	$	500,243		$	395,839		$	460,573		$	1,767,445		$	1,366,924
Gross Profit		70,058			150,980			166,318			513,756			515,408
		14	%		38	%		36	%		29	%		38	%
Net Income		120,412			162,479			82,828			316,762			344,036
		24	%		41	%		18	%		18	%		25	%
Diluted Earnings Per Share	$	1.25		$	1.73		$	0.88		$	3.34		$	3.87
Adjusted EBITDAX	$	233,106		$	182,400		$	227,212		$	823,576		$	674,032

Owen Kratz, President and Chief Executive Officer of Helix, stated, “We are very pleased with the strength in our business units and the value creation inherent in the company. Helix personnel continue to handle the growth with continued quality improvements. We look forward to 08 as a settling out year during in which the value that has been created can begin to be unlocked.”

Financial Highlights

• Revenues: The $104 million increase in year-over-year fourth quarter revenues was driven by both Oil and Gas production and Contracting Services increases, due primarily to extra capacity on the shelf (Cal Dive) and continued escalating market demand in the deepwater. The increase in oil and gas revenues was due primarily to a 16% increase in year-over-year production. In addition, on the oil and gas side the sale of a 30% working interest in the Phoenix oilfield last quarter resulted in over $20 million of operating income during the fourth quarter.

• Margins: Absent the oil and gas impairments / dry hole costs, despite the fact that gross profit was higher by $10 million, margins for the fourth quarter 2007 were 32%, which were six points lower than 38% in the fourth quarter of 2006 as Cal Dive experienced a seasonal margin decline, the Q4000 was out of service for upgrades, and a significant project during the quarter utilized a chartered vessel.

• SG&A: $45.2 million increased $4.4 million over the same period a year ago due primarily to increased overhead to support our growth. This level of SG&A was 9% of fourth quarter revenues, compared to 10% in the year ago quarter.

• Equity in Earnings: $10.5 million is comprised of our share of earnings for the quarter relating to the Marco Polo facility and the Independence Hub facility.

• Gain on subsidiary equity transactions: In December, 2007, Cal Dive (CDI) closed its acquisition of Horizon. CDI issued an aggregate of approximately 20.3 million shares of common stock and paid approximately $300 million in cash in the merger. The cash portion of the merger consideration was paid from CDI’s cash on hand and from borrowings under its new $675 million credit facility consisting of a $375 million senior secured term loan and a $300 million senior secured revolving credit facility, each of which is non-recourse to Helix. As a result of CDI’s equity issued, we recorded a $151.7 million pre-tax gain. The gain was calculated as the difference in the value of our investment in CDI immediately before and after CDI’s stock issuance.

• Income Tax Provision: The Company’s effective tax rate for the quarter was 33%, just below the 34% effective rate for last year’s fourth quarter backing out the impact of the Cal Dive IPO.

• Balance Sheet: Total consolidated debt as of December 31, 2007 was $1.8 billion. This includes $375 million outstanding under Cal Dive’s term loan that was used to fund the cash portion of its acquisition of Horizon Offshore and is non-recourse to Helix. Total consolidated debt as of December 31, 2007 represents 49% debt to book capitalization and an adjusted leverage ratio 2.2 times adjusted EBITDAX of $824 million.

• 2008 Outlook: Included in the presentation is information, including estimates with respect to certain key variables, relating to our views on 2008 which we will discuss on the conference call described below.

Further details are provided in the presentation for Helix’s quarterly conference call (see the Investor Relations page of www.HelixESG.com). The call, scheduled for 9:00 a.m. Central Standard Time on Friday, February 29, 2008, will be webcast live. If you wish to dial in to the call the telephone number is 888-577-8990 (Domestic) or 1-210-234-0002 (International). The passcode is 2389610. A replay will be available from the Audio Archives page on our website.

Helix Energy Solutions, headquartered in Houston, Texas, is an international offshore energy company that provides development solutions and other key life of field services to the open energy market as well as to our own oil and gas business unit.

This press release contains forward-looking statements that involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any projections of revenue, gross margin, expenses, earnings or losses from operations, or other financial items; future production volumes, results of exploration, exploitation, development, acquisition and operations expenditures, and prospective reserve levels of property or wells; any statements of the plans, strategies and objectives of management for future operations; any statement concerning developments, performance or industry rankings, any statements regarding future economic conditions or performance; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include the performance of contracts by suppliers, customers and partners; employee management issues; complexities of global political and economic developments, geologic risks and other risks described from time to time in our reports filed with the Securities and Exchange Commission (“SEC”), including the company’s Annual Report on Form 10-K for the year ending December 31, 2006, as amended. We assume no obligation and do not intend to update these forward-looking statements.

HELIX ENERGY SOLUTIONS GROUP, INC.

Comparative Condensed Consolidated Statements of Operations

	Three Months Ended Dec. 31,				Twelve Months Ended Dec. 31,
(in thousands, except per share data)	2007		2006		2007		2006
	(Unaudited)
Net revenues:
Contracting services	$	330,550	$	272,687	$	1,182,882	$	937,317
Oil and gas		169,693		123,152		584,563		429,607
		500,243		395,839		1,767,445		1,366,924
Cost of sales:
Contracting services		233,442		175,376		789,988		584,295
Oil and gas		196,743		69,483		463,701		267,221
		430,185		244,859		1,253,689		851,516
Gross profit		70,058		150,980		513,756		515,408
Gain on sale of assets, net		23,983		247		50,368		2,817
Selling and administrative		45,246		40,829		151,380		119,580
Income from operations		48,795		110,398		412,744		398,645
Equity in earnings of investments		10,453		5,477		19,698		18,130
Gain on subsidiary equity transactions		151,696		223,134		151,696		223,134
Net interest expense and other		18,679		14,091		59,444		34,634
Income before income taxes		192,265		324,918		524,694		605,275
Income tax provision		63,217		160,769		174,928		257,156
Minority interest		7,755		725.00		29,288		725.00
Net income		121,293		163,424		320,478		347,394
Preferred stock dividends		881		945		3,716		3,358
Net income applicable to common shareholders	$	120,412	$	162,479	$	316,762	$	344,036
Weighted Avg. Shares Outstanding:
Basic		90,189		90,273		90,086		84,613
Diluted		96,880		94,461		95,938		89,874
Earnings Per Share:
Basic	$	1.34	$	1.80	$	3.52	$	4.07
Diluted	$	1.25	$	1.73	$	3.34	$	3.87

Comparative Condensed Consolidated Balance Sheets

ASSETS
(in thousands)	Dec. 31, 2007		Dec. 31, 2006
	(unaudited)
Current Assets:
Cash and equivalents	$	89,555	$	206,264
Short term investments		—		285,395
Accounts receivable		512,132		370,709
Other current assets		125,582		61,532
Total Current Assets		727,269		923,900
Net Property & Equipment:
Contracting Services		1,507,463		800,503
Oil and Gas		1,737,225		1,411,955
Equity investments		213,429		213,362
Goodwill		1,089,758		822,556
Other assets, net		177,209		117,911
Total Assets	$	5,452,353	$	4,290,187

LIABILITIES & SHAREHOLDERS' EQUITY
(in thousands)	Dec. 31, 2007		Dec. 31, 2006
	(unaudited)
Current Liabilities:
Accounts payable	$	382,767	$	240,067
Accrued liabilities		221,366		199,650
Income taxes payable		—		147,772
Current mat of L-T debt (1)		74,846		25,887
Total Current Liabilities		678,979		613,376
Long-term debt (1)		1,725,541		1,454,469
Deferred income taxes		625,508		436,544
Decommissioning liabilities		193,650		138,905
Other long-term liabilities		63,183		6,143
Minority interest		263,926		59,802
Convertible preferred stock (1)		55,000		55,000
Shareholders’ equity (1)		1,846,566		1,525,948
Total Liabilities & Equity	$	5,452,353	$	4,290,187

(1) Debt to book capitalization — 49% at December 31, 2007. Calculated as total debt $1,800,387 divided by sum of total debt, convertible preferred stock and shareholders’ equity $3,701,953.

Helix Energy Solutions Group, Inc.
Reconciliation of Non GAAP Measures
Three and Twelve Months Ended December 31, 2007

Earnings Release:

Balance Sheet:     ”...2.2 times trailing twelve month adjusted EBITDAX.”

Reconciliation From Net Income to Adjusted EBITDAX (excluding noncash gain on Cal Dive investment in 4Q07, gain on sale of Cal Dive IPO in 4Q06 and non-recurring items: OTSL impairment, DOJ accrual, and sale of diving assets in 2Q07):

	4Q07			3Q07			2Q07			1Q07			4Q06
	(in thousands, except ratio)
Net income applicable to common shareholders	$	21,810		$	82,828		$	57,702		$	55,820			65,948
Preferred stock dividends		881			945			945			945			945
Income tax provision		6,420			40,626			30,456			28,617			34,166
Net interest expense and other		17,796			12,971			13,605			12,331			13,981
Non-cash stock compensation expense		3,100			3,147			3,546			3,267			2,797
Depreciation and amortization		97,195			83,564			71,918			67,558			61,809
Non-cash impairment		73,046			—			904			—			—
Exploration expense		11,203			1,476			2,978			1,190			1,820
Non-recurring items		—			—			8,602			—			—
Share of equity investments:
Depreciation		1,731			1,723			1,965			1,004			1,004
Interest expense (income)		(76	)		(68	)		(38	)		(57	)		(70	)
Adjusted EBITDAX	$	233,106		$	227,212		$	192,583		$	170,675		$	182,400
Trailing Twelve Months Adjusted EBITDAX	$	823,576
Debt at December 31, 2007	$	1,800,387
Ratio		2.2

We calculate adjusted EBITDAX as earnings before net interest expense, taxes, depreciation and amortization, exploration expense, non-cash stock compensation expense and our share of depreciation, net interest expense and taxes from our equity investments. Further, we reduce adjusted EBITDAX for the minority interest in Cal Dive that we do not own. Adjusted EBITDAX margin is defined as adjusted EBITDAX divided by net revenues. These non-GAAP measures are useful to investors and other internal and external users of our financial statements in evaluating our operating performance because they are widely used by investors in our industry to measure a company’s operating performance without regard to items which can vary substantially from company to company and help investors meaningfully compare our results from period to period. Adjusted EBITDAX should not be considered in isolation or as a substitute for, but instead is supplemental to, income from operations, net income or other income data prepared in accordance with GAAP. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to our reported results prepared in accordance with GAAP. Users of this financial information should consider the types of events and transactions which are excluded.

EX-99.2

Exhibit 99.2

Fourth Quarter Earnings Conference Call & 2008 Outlook February 29, 2008

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All such statements, other than statements of historical fact, are statements that could be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any projections of revenue, gross margin, expenses, earnings or losses from operations, or other financial items; future production volumes, results of exploration, exploitation, development, acquisition and operations expenditures, and prospective reserve levels of property or wells; any statements of the plans, strategies and objectives of management for future operations; any statements concerning developments, performance or industry rankings; and any statements of assumptions underlying any of the foregoing. Although we believe that the expectations set forth in these forward-looking statements are reasonable, they do involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks, uncertainties and assumptions referred to above include the performance of contracts by suppliers, customers and partners; employee management issues; complexities of global political and economic developments; geologic risks and other risks described from time to time in our reports filed with the Securities and Exchange Commission ("SEC"), including the Company's Annual Report on Form 10-K for the year ended December 31, 2006 as amended by our Form 10-K/A filed on June 18, 2007 ("2006 Form 10-K") and subsequent quarterly reports on Form 10-Q. You should not place undue reliance on these forward-looking statements which speak only as of the date of this presentation and the associated press release. We assume no obligation or duty and do not intend to update these forward-looking statements except as required by the securities laws. The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Statements of proved reserves are only estimates and may be imprecise. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include not only proved reserves but also other categories of reserves that the SEC's guidelines strictly prohibit the Company from including in filings with the SEC. Investors are urged to consider closely the disclosure in the Company's 2006 Form 10-K. Forward-Looking Statements

Presentation Outline Subsea Intervention Lubricator stack-up on Seawell Executive Summary Summary of Results 2008 Outlook Strategy Operational Highlights by Segment Contracting Services Oil & Gas Questions & Answers

Executive Summary Fourth Quarter Fourth Quarter Full Year Full Year Results 2007 2006 2007 2006 Revenue $500.2 $395.8 $1,767.4 $1,366.9 Adj. EBITDAX(A) 233.1 182.4 823.6 674.0 Net Income 120.4 162.5 316.8 344.0 EPS $1.25 $1.73 $3.34 $3.87 Highlights 2007 Highlights Adjusted EBITDAX Totaled $823 MM Contracting Services $356 Oil & Gas 468 Total $824 Contracting Services Exceeded Expectations Escalating market demand in deepwater Added capacity on the shelf E&P Production was below expectation but we had significant success in exploration ($ in millions, except per share data) (A) See GAAP reconciliation on our website at www.helixesg.com

Oil & Gas - 2007 Reserve Report Amounts in BCFe 12/31/06 Reserves 2007 Production Exploration Additions Sales Revisions 12/31/07 Reserves Shelf * 406 (52) 38 (15) (4) 373 Deepwater 130 (13) 206 (14) (5) 304 Total 536 (65) 244 (29) (9) 677 * Includes Onshore and U.K. reserves. Other 12/31/07 Reserve Statistics (U.S. Only): PV - 10 Value $4,058 million PDP/PUD mix % 33/67 Gas/Oil mix % 65/35 Reserve Growth YOY % 26 Reserve Replacement % 376 Finding and Development Cost** Capital Expenditures $585 million Exploration Additions 244 BCFe F & D Cost $2.40/ MCFe **2007 Exploration + Development+ Proved Property Acquisition/Exploratory Additions (U.S. Only)

Summary of Results - Reconciliation ($ in millions, except per share data) Fourth Quarter Fourth Quarter Fourth Quarter 2007 2006 Reported Net Income $120.4 $162.5 Unusual Items (net of tax): IPO gain _ (96.5) Gain from Cal Dive acquisition of Horizon (98.6) _ Oil & Gas impairments and other 61.4 _ Adjusted Net Income $83.2 $66.0 Adjusted Diluted EPS $0.87 $0.71 Adjusted EBITDAX(A) $233.1 $182.4 (A) See GAAP reconciliation on our website at www.helixesg.com

Summary of Unusual Items Description Amount Comments Oil & Gas Impairments $59.4 Devil's Island, Non-Commercial PUDs, PDP Impairments Prospect Impairments 9.0 Non-Commercial Prospects on Expiring Leases Accelerated DD&A (Impaired Properties) 12.5 Tiger & EC 235 Impaired Properties Dry hole Costs 10.1 Suspended Well Deemed Non- Commercial; Non-Op Well Dryhole Other 3.4 Deferred Financing Costs write off, Lawsuit Settlement offset by CDI Gain on Sale of Asset Total $94.4 ($ in millions)

Earnings Outlook and Normalization 2008 Estimate 2007 Actual EPS before Interest Expense, Profit Deferral & Sales $3.33 $3.34 Interest expense (0.72) (0.41) Intercompany profit deferral (0.40) (0.15) EPS before sales and unusual items $2.21 $2.78 Impact from Oil & Gas Sales: 30% Phoenix sale gain _ 0.27 Incremental earnings from sales (gain & reduced interest expense and profit deferral offset by reduced production) 1.15 _ Normalized EPS $3.36 $3.05 Unusual Items: Net impact of OTSL impairment and other items in 2Q (0.09) Net impact of gain on Cal Dive acquisition of Horizon and oil & gas related impairments, dry hole and other (4Q) 0.38 Reported EPS $3.34

2008 Outlook Revenue 2008E 2007 % Contracting Service $1,700 $1,335 27% Oil & Gas 600 582 3% Elimination (200) (150) Total Revenue $2,100 $1,767 19% EBITDAX (A) Contracting Service $400 380 5% Oil & Gas 590 467 26% Elimination (50) (23) _ Total EBITDAX $940 $824 14% Nomalized EPS $3.36 $3.05 10% Highlights Projected EBITDAX increase of 14% in 2008 Contracting Services Deepwater strengthening offsets shelf New capacity in deepwater in second half of the year Higher contribution from MSV Q4000 Oil & Gas Total production flat year-over-year with declining shelf production offset by Deepwater contribution in Q4 Noonan on first production September 2008, Phoenix December 2008 Includes sell down of production interests. ($ in millions, except per share data) (A) See GAAP reconciliation on our website at www.helixesg.com

2008 Estimate Assumptions Contracting Services Revenues: $1.7 billion Margins: 26% Assets Placed in Service: Q4000 April 2008 Caesar Q3 2008 Helix Producer I Q4 2008 Internal Profit Deferral: $60 million (assuming no property sell downs) Oil & Gas Commodity Prices: $7.50 (NG)/$75 (0il) Production: 69 Bcfe (assuming no property sell downs) LOE rate: $2.02 per mcfe DD&A rate: $3.15 per mcfe (excl. exp & dry hole) Exploration & Dryhole $40 million ($13 million - Devil's Island) New Deepwater Fields start dates: Noonan September 2008 Phoenix December 2008 CAPEX: $800 million (assuming property sell downs); 50/50 split between Contracting Services and Oil and Gas

STRATEGY

Last Three Years Significantly shifted contracting focus from Shelf to Deep Acquired Remington for deepwater prospect generation potential Added value through investment in new deepwater service and reservoir assets Next Three Years - Continue to Evolve Capture value created in deepwater prospects via interest sell down Complete current new assets and developments Expand geographically Reduce net debt Long Term Goal Become premier deepwater service provider of field development services. Generate attractive prospects that can be promoted and added to our backlog and returns. Strategy

OPERATIONAL HIGHLIGHTS BY SEGMENT

Contracting Services - World Class fleet and Capabilities Robotics (Canyon Offshore) 39 ROVs 5 trenchers 2000 HP i- trencher (2008; under construction) 2 ROV drill units Portable pipelay system (2008; under construction) Long term charters DP2 Northern Canyon DP2 Olympic Canyon DP2 Olympic Triton DP2 Island Pioneer DP2 Seacor Canyon Short term charters On an opportunistic basis to serve spot market Production Facilities Marco Polo TLP (50% interest) Independence Hub (20% interest) Helix Producer I (Q4 2008; under conversion) Deepwater Contracting MSV DP2 Intrepid (reeled pipelay vessel) MSV DP2 Express (reeled pipelay vessel) DP2 Caesar (S-Lay vessel) (Q4 2008; under conversion) Reservoir Engineering and Well Technology Helix RDS Well Operations (Well ops) MSV DP2 Seawell MSV DP2 Q4000 (Q2 Operational) MSV DP2 Well Enhancer (2009; under construction) 3 SILs 1 IRS 1 VDS Tooling (AXE, CIT) Shelf Contracting Cal Dive (~59% interest)

Contracting Services Fourth Quarter Fourth Quarter Fourth Quarter Third Quarter Third Quarter Third Quarter Revenues (A) 2007 2006 2007 Deepwater Construction $175.8 $98.0 $126.9 Shelf Construction (Cal Dive) 162.2 137.0 176.9 Well Operations 39.9 41.4 57.7 Reservoir/Well Tech 8.4 9.4 7.7 Contracting Services $386.3 $285.8 $369.2 Gross Profit (A) Margin Margin Deepwater Construction $40.7 23% $28.8 29% $38.7 30% Shelf Construction (Cal Dive) 53.9 33% 53.6 39% 69.9 40% Well Operations 11.0 28% 14.5 35% 22.1 38% Reservoir/Well Tech 1.2 14% 3.1 33% 1.0 13% Contracting Services 106.8 27% $100.0 35% $131.7 36% Equity in Earnings Production Facilities $10.5 $5.3 $7.9 A. Amounts are before intercompany eliminations. See GAAP reconciliation on our website at www.helixesg.com. (in millions, except percentages)

Fourth Quarter Fourth Quarter Third Quarter Utilization 2007 2006 2007 Deepwater: - Deepwater Contracting 100% 95% 97% - Robotics 68% 67% 86% Shelf Construction (Cal Dive) 52% 77% 74% Well Operations 44% 85% 83% Independence Hub & Marco Polo Production Total throughput: Marco Polo (MBOE) 3,554 3,653 3,555 Independence Hub (BCFe) 64.7 _ 11.5 Contracting Services Continued

Contracting Services Commentary (1) Deepwater Contracting The Intrepid and the Express had full utilization and contributed $21.4 MM of gross profit. Margins were lower due to the large amount of work performed by a chartered third party vessel on a major GOM job. The Express arrived in India in November and commenced work on the Reliance project. Conversion of the Caesar at COSCO's yard in Nantong is ongoing. We expect the vessel to leave China in July. Vessel has backlog for the rest of 2008, has contracted two months of work in 2009 and is bidding on a significant number of projects in 2009 and 2010. Olympic Triton joined the deepwater contracting fleet in December and work on the Phoenix project as her first deployment. 2008 Outlook: The Deepwater Contracting fleet has a solid backlog in 2008. Robotics (Canyon Offshore) Canyon Offshore was awarded a three year IRM for Southeast Asia with a contract value of $160 MM. We signed a 4-year charter for the Island Pioneer, increasing the number of long term chartered DP2 vessels by Canyon to five. Canyon had another strong quarter with gross profit of nearly $18 MM. They had six active vessels under contract during the quarter. 2008 Outlook: Canyon expects a busy year with the introduction of the i-trencher and the portable reeled pipelay system that can be used on all of Canyon's DP vessels. Express Installing Suction piles Island Pioneer (chartered) Caesar

Shelf Construction (Cal Dive) Cal Dive closed its acquisition of Horizon Offshore in December 2007. Utilization and margins down due to normal seasonality. See separate earnings release and conference call for this majority owned subsidiary. Well Operations The Seawell enjoyed high utilization with strong contribution. The vessel worked in well intervention and construction / diving mode for 90% of the quarter. The Q4000 spent the whole quarter in the shipyard for scheduled marine and drilling upgrades. The vessel is scheduled to commence seatrials in March and has a busy schedule with tophole drilling, completion and deepwater well intervention work for the rest of the year. WOSEA commenced the system and worked hard on the system integration test (SIT) of the modular vessel deployment system (VDS) and subsea intervention lubricator (SIL) that will be used in 1Q2008 on Woodside projects and fields. 2008 Outlook: We expect the activity level in the Well Operations business unit to increase with the return of the Q4000. Contracting Services Commentary (2)

Reservoir / Well Technology Services Helix RDS had another difficult quarter due to seasonal vacation related impact and the net loss of revenue generating personnel. We have appointed a new Managing Director in December 2007 and expect a turnaround in 2008. Production Facilities Q4/07 Review Recorded a record equity in earnings of $10.5 MM for the quarter due to strong contribution from our 20% interest in Independence Hub LLC. Production on the Hub ramped up during the quarter with all 15 subsea wells on line by the end of the quarter. Production on the Marco Polo TLP was flat from the prior quarter with the first well of the Genghis Khan field commencing production. Q1/08 and Outlook Marco Polo: Expect production to increase as the result of two more Genghis Kahn wells coming online. Independence Hub: Platform was shut-down for a couple of days in February to replace a couple of valves that limited the capacity on the hub. Expect the platform to operate at 80% capacity for the year. Helix Contracting Services Commentary (3)

Images of the Quarter Conversion of Caesar underway in China ERT drilled second Noonan production well Express working on Reliance KGD6 project Offshore India Canyon Offshore took delivery of second Olympic Shipping vessel Helix Producer I in Croatia System Integration Test of WOSEA VDS with Woodside's Vincent Tree

Oil & Gas Financial Highlights 4Q 2007 Gross Profit reflects the oil & gas amount without the $91.0 million of impairment / dry hole related items. Fourth Quarter Fourth Quarter Third Quarter 2007 2006 2007 Revenue (in millions) $169.7 $123.2 $141.8 Gross Profit (in millions) $64.8 (A) $53.7 $43.6 Gross Profit Margin 38% 44% 31% Production (BCFe) Shelf 14.1 12.9 12.4 Deepwater 3.4 2.2 3.2 Quarter Total 17.5 15.1 15.6 Average Commodity Prices (net of hedging impact): Oil / Bbl $80.53 $56.11 $71.63 Gas / Mcf $7.99 $7.36 $7.04 Hedge gain/(loss) (in millions) $(5.0) $2.1 $3.2

Oil & Gas - Statistics (A) Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Third Quarter Third Quarter 2007 2007 2007 2007 2006 2006 2007 2007 Total Total Per Mcfe Total Per Mcfe Total Per Mcfe Operating Expenses Operating Expenses $23.3 $1.33 $1.33 $20.5 $1.36 $25.8 $1.65 Proved & Prospect Impairments Proved & Prospect Impairments 68.4 3.91 3.91 _ _ _ _ Exploration Expense (B) Exploration Expense (B) 11.2 0.64 0.64 1.1 0.07 1.5 0.10 Repair & Maintenance Repair & Maintenance 8.2 0.47 0.47 1.5 0.10 5.2 0.33 DD&A DD&A 71.2(D) 4.07 4.07 43.9 2.95 50.7 3.25 Other (c) Other (c) 12.1 0.69 0.69 2.5 0.17 15.0 0.97 $194.4 $11.10 $11.10 $69.5 $4.67 $98.2 $6.30 (A) U.S. only. (B) Includes expenditures on seismic data. (c) Includes abandonment overruns related to hurricanes, net of insurance. (D) Includes $12.5 million incremental DDA for reserve impairments. (in millions, except per Mcfe data)

Summary of 2007 - 2009 Hedging Positions a

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