As One Fund Cuts Helix by $4 Million, Is This $8 Stock Still an Energy Sleeper?
Key Points
Gate City Capital Management sold 575,000 shares of HLX in the fourth quarter; the estimated transaction value was $3.82 million (based on quarterly average prices).
Meanwhile, the quarter-end valuation of the HLX stake fell by $4.31 million (reflecting both trading and price movement).
The post-trade holdings stand at 1,872,195 shares valued at $11.74 million.
On February 17, 2026, Gate City Capital Management disclosed selling 575,000 shares of Helix Energy Solutions Group (NYSE:HLX), an estimated $3.82 million trade based on quarterly average pricing.
What happened
According to a recent SEC filing, Gate City Capital Management sold 575,000 shares of Helix Energy Solutions Group (NYSE:HLX) during the fourth quarter of 2025. The transaction's estimated value is $3.82 million, calculated from the average share price over the quarter. The fund's quarter-end HLX position decreased in value by $4.31 million, closing the period with 1,872,195 shares.
What else to know
- Following the sale, HLX represents 5.08% of Gate City Capital Management, LLC's 13F AUM.
- Top holdings after the filing:
- NASDAQ: ALCO: $47.21 million (20.4% of AUM)
- NYSE: EVC: $32.50 million (14.1% of AUM)
- NYSE: IPI: $25.35 million (11.0% of AUM)
- NASDAQ: HTLD: $19.80 million (8.6% of AUM)
- NYSE: BTU: $18.11 million (7.8% of AUM)
- As of February 16, 2026, HLX shares were priced at $8.60, up 5.3% over the past year and with an alpha of -6.53 percentage points versus the S&P 500.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.31 billion |
| Net income (TTM) | $42.68 million |
| Price (as of market close February 13, 2026) | $8.60 |
| One-year price change | 5.3% |
Company snapshot
- Helix Energy Solutions Group offers offshore well intervention, robotics, and production facility services, including flowline installation, trenching, subsea inspection, and well plug and abandonment solutions.
- The company generates revenue by providing specialized engineering, maintenance, and decommissioning services to the offshore energy sector, leveraging proprietary technology and assets.
- It serves independent oil and gas producers, pipeline transmission companies, renewable energy firms, and offshore engineering and construction companies globally.
Helix Energy Solutions Group is a leading offshore energy services provider with a global footprint and a diversified suite of subsea capabilities. The company leverages advanced robotics and intervention technologies to support the full lifecycle of offshore oil and gas assets. Its integrated approach and technical expertise position it as a key partner for complex offshore projects and decommissioning activities.
What this transaction means for investors
Cyclical offshore names rarely get the benefit of the doubt, which is exactly why position sizing here tells a bigger story than the trade itself. Even after trimming 575,000 shares, Helix still represents just over 5% of assets, a meaningful but not dominant bet inside a portfolio tilted toward commodity and industrial exposures.
Operationally, the business looks healthier than the stock suggests. Third quarter revenue climbed to about $377 million, with adjusted EBITDA of roughly $104 million, the strongest quarterly EBITDA since 2014. Net income came in at $22 million, and the company ended September with $338 million in cash and negative net debt.
That said, nine-month EBITDA remains below last year’s level, and offshore markets are still uneven. For long term investors, the key question is whether robotics growth and well intervention utilization can offset oil price volatility. In a portfolio already heavy in energy and materials, keeping Helix at 5% feels like conviction with risk control rather than an outright retreat.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.