Helix Energy Solutions Group, Inc. (HLX) is experiencing a positive shift in its business, as evidenced by a newly secured multi-year agreement with Shell Offshore Inc., a subsidiary of Shell PLC (SHEL). This agreement, commencing in 2025, will see Helix continue its provision of well intervention services in the U.S. Gulf of Mexico.
The contract signifies a growing demand for Helix’s services and reflects the improving market conditions in the energy sector. Scotty Sparks, Helix’s Executive Vice President and Chief Operating Officer, emphasized this point, stating that the contract is a testament to their strategy of providing top-notch, globally leading well intervention services.
Under the terms of the agreement, Helix will provide a minimum number of days annually utilizing its specialized equipment, including the Q5000 riser-based well intervention vessel, Intervention Riser Systems (IRSs), remotely operated vehicles (ROVs), and accompanying project management and engineering services. The scope of services encompasses a wide range of operations, from production enhancement to well plug and abandonment.
This collaboration will further leverage the strengths of both Helix and Schlumberger (SLB) through their Subsea Services Alliance. This alliance will play a key role in ensuring the efficient and effective execution of the contract’s operations.
The positive news for Helix is reflected in its stock performance. HLX shares have seen a gain of over 4.9% in the past month. Investors interested in participating in this positive trend can explore the Invesco Oil & Gas Services ETF (PXJ) for exposure to Helix’s stock.
As of Wednesday, HLX shares were trading at $10.67, representing a 0.23% increase.
