Helix Energy Solutions Group (HLX) risk factors, FY2025 10-K

MARKET AND INDUSTRY RISKS

1. 01Our business is adversely affected by low oil and natural gas prices, which occur in a cyclical oil and gas market that continues to experience volatility
2. 02Our business and financial performance are subject to risks related to global economic conditions, geopolitical developments and international conflict34% rewritten
3. 03Our renewables business may be adversely affected by industry-specific economic, regulatory and market factors
4. 04We are subject to the effects of changing prices28% rewritten

BUSINESS AND OPERATIONAL RISKS

1. 05As of December 31, 2025, backlog for our services supported by written agreements or contracts totaled $1.3 billion, of which $694 million is expected to be performed in 2026
2. 06A large portion of our current backlog is concentrated in a small number of long-term contracts that we may fail to renew or replace
3. 07Our operations involve numerous risks, which could result in our inability or failure to perform operationally under our contracts and result in reduced revenues, contractual penalties and/or contract termination
4. 08Our customers, suppliers and other counterparties may be unable to perform their obligations
5. 09We may own assets with costs that cannot be recouped if the assets are not under contract, and time chartering vessels requires us to make payments regardless of utilization of and revenue generation from those vessels72% rewritten
6. 10We may not be able to compete successfully against current and future competitors
7. 11Our North Sea and Helix Alliance businesses typically decline in the winter, and weather can adversely affect our operations
8. 12The operation of marine vessels is risky, and we do not have insurance coverage for all risks
9. 13Our oil and gas operations involve a high degree of operational, contractual and financial risk, particularly risk of personal injury, damage, loss of equipment and environmental incidents
10. 14Our customers may be unable or unwilling to indemnify us
11. 15Our operations outside of the U.S. subject us to additional risks
12. 16Failure to protect our intellectual property or other technology may adversely affect our business
13. 17Climate change might adversely impact our business operations and/or our supply chain
14. 18The actual or perceived lack of sustainability of the oil and gas sector, our failure to adequately implement and communicate initiatives that demonstrate our own sustainability or our failure to adapt our sustainability efforts to evolving industry demand, may adversely affect our business26% rewritten

FINANCIAL AND LIQUIDITY RISKS

1. 19Our indebtedness and the terms of our indebtedness could impair our financial condition and our ability to fulfill our debt obligations or otherwise limit our business and financial activities
2. 20Because we have certain debt and other obligations, a prolonged period of low demand or rates for our services could lead to a material adverse effect on our liquidity
3. 21Lack of access to the financial markets could negatively impact our ability to operate our business
4. 22A decline in the offshore energy services market could result in impairment charges
5. 23Our international operations are exposed to currency devaluation and fluctuation risk

LEGAL AND REGULATORY COMPLIANCE RISKS

1. 24Government regulations, including those specific to deepwater offshore drilling, may make our business operations more difficult or costly, or limit our services32% rewritten
2. 25Our business would be adversely affected if we failed to comply with the Jones Act foreign ownership provisions or if these provisions were modified or repealed23% rewritten
3. 26Failure to comply with anti-bribery laws could have a material adverse impact on our business

GENERAL RISKS

1. 27We may execute a strategic transaction that may not achieve intended results, could increase our net debt or the number of our shares outstanding, or result in a change of control
2. 28The loss of the services of one or more of our key employees, or our failure to attract and retain other highly qualified personnel and other skilled workers in the future, could disrupt our operations and adversely affect our financial results
3. 29Cybersecurity breaches or business system disruptions may adversely affect our business23% rewritten
4. 30The emergence of artificial intelligence (“AI”) technologies may expose us to risks that could adversely affect our businessNew
5. 31Increasing legal and regulatory focus on data privacy and security issues could expose us to increased liability and operational changes and costs51% rewritten
6. 32Certain provisions of our corporate documents, financial arrangements and Minnesota law may discourage a third party from making a takeover proposal
7. 33Our ability to repurchase shares through any share repurchase program is subject to certain considerations, including availability of Free Cash Flow, and any repurchases could affect the price of our common stock and increase volatility
8. 34A global health pandemic could disrupt our operations and adversely impact our business and financial results