866829--3/1/2007--HELIX_ENERGY_SOLUTIONS_GROUP_INC

related topics
{gas, price, oil}
{cost, contract, operation}
{operation, natural, condition}
{regulation, change, law}
{personnel, key, retain}
{provision, law, control}
{cost, regulation, environmental}
{debt, indebtedness, cash}
{competitive, industry, competition}
{operation, international, foreign}
{acquisition, growth, future}
Our contracting business typically declines in winter, and bad weather in the Gulf or North Sea can adversely affect our operations. If we bid too low on a turnkey contract, we suffer adverse economic consequences. Delays or cost overruns in our construction projects could adversely affect our business or the expected cash flows from these projects upon completion may not be timely or as high as expected. Risks Relating to our Oil and Gas Operations Exploration and production of oil and natural gas is a high-risk activity and is subject to a variety of factors that we cannot control. Natural gas and oil prices are volatile, which makes future revenue uncertain. Our commodity price risk management related to some of our oil and gas production may reduce our potential gains from increases in oil and gas prices. Estimates of our oil and gas reserves, future cash flows and abandonment costs may be significantly incorrect. Reserve replacement may not offset depletion. We are in part dependent on third parties with respect to the transportation of our oil and gas production and in certain cases, third party operators who influence our productivity. Government regulation may affect our ability to conduct operations, and the nature of our business exposes us to environmental liability. Our oil and gas operations involve significant risks, and we do not have insurance coverage for all risks. Risks Relating to General Corporate Matters We have higher levels of indebtedness after the acquisition of Remington in 2006. We may not be able to compete successfully against current and future competitors. The loss of the services of one or more of our key employees, or our failure to attract and retain other highly qualified personnel in the future, could disrupt our operations and adversely affect our financial results. If we fail to effectively manage our growth, our results of operations could be harmed. We may need to change the manner in which we conduct our business in response to changes in government regulations. Certain provisions of our corporate documents and Minnesota law may discourage a third party from making a takeover proposal. Our operations outside of the United States subject us to additional risks.

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