Seeking Alpha: Helix Energy Solutions May Be More Volatile, But Still Valuable

A few months ago, there were some at least some analysts pointing to Helix Energy Services (NYSE:HLX) as a defensive option in energy services and a relative oasis given the company's leverage to life-of-field services and the presumed advantages of the company's purpose-built well intervention vessels. The 27% decline in the share price over the past year and one-third drop over the past six months tells you most of what you need to know about how well that thesis has played out.

Snark aside, I do think there are solid reasons to consider Helix today. There is a real risk that prospective (or even contracted) well intervention clients will opt instead to utilize already-contracted rigs for intervention work, and a lull in activity isn't helping the robotics business, but I believe the long-term outlook for well intervention here is solid. Should 2015 prove to be an aberration, I think these shares can move back into the $20's as the outlook for utilization and revenue improves.

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Helix Energy Solutions May Be More Volatile, But Still Valuable