Ocean Rig UDW Inc. 2nd Quarter Ended June 30, 2014 Earnings Presentation NASDAQ: OCEAN RIG UDW INC. ORIG August 6, 2014
Q2 2014 financial results Net Revenue from drilling contracts: 441.4 million Adjusted EBITDA: 231.8 million Net Income: 69.6 million or 0.53 per share OCEAN RIG UDW INC. 3
Key highlights Achieved 96.3% average fleet wide operating performance for the second quarter OCR Athena commenced drilling operations on June 7th, 2014 under the ConocoPhillips contract (75 days since sailing from Korea including…
Proven ability to source premium contractual terms UDW floater fixtures since June 2010 Ability to achieve premium contractual terms for one of the industrys leading fleets New contracts incorporate provisions for increased…
Potential for Valuation Enhancement Through Proposed MLP (million) Ocean RIG Market Capitalization 17.50/ share 2,308 Plus: Debt Outstanding 4,486 Less: Total Cash 536 Less: Construction in Progress 516 Current Enterprise Value (9 unit…
Operational & Financial Highlights OCEAN RIG UDW INC.
Solid multi-year fleet employment profile Average contract remaining fixed period of 2.3 years, 3.8 years with options 100%, 72%, 39% calendar days under contract in 2014, 2015, and 2016 respectively 4.8 billion revenue backlog 2014…
Q2 2014- Revenue analysis During the quarter, we had 819 calendar days and 67 days spent on mobilization Resulting in 752 available drilling days, of which 724 were revenue earning days i.e. 96% operating efficiency(1) Available…
Q2 2014- OPEX analysis Q2 2014 Q2 2014 Direct & Onshore Amortization of Drilling Unit Rig Opex Deferred Opex (in USD million) ( per day) (in USD million) Leiv Eiriksson 20.2 221,544 4.8 Eirik Raude 16.1 176,401 0.0 OCR…
Income Statement (Expressed in Millions of U.S. Dollars except for share and per share data) Q2 2014 REVENUES: Drilling revenues 392.5 Amortization of deferred revenue 49.0 Total Revenues from drilling contracts 441.4…
Improved debt maturity profile Weighted average maturity of 5.7 years No near-term maturities; next significant maturity in Q4 2017 7.25% Unsecured 6.50% Secured Term Loan B-1 New Term Loan B Notes Notes (1) Amount Outstanding…
Growth capital expenditure program 516 million equity invested for our newbuildings Total Delivered Funded From Equity Remaining Cost (1) Delivery Cost (as of June 30, 2014) ( million) 2015 2016 2017 OCR Apollo 683 236 447 Jan-15…
Strong free cashflow generation Ocean Rigs fleet is estimated to have 60 million of annual free cash flow on a per-unit and 540 million on a 9-fleet basis at 92.5% utilization Ocean Rig Fleet incremental liquidity cushion ( in…
Solid backlog insulates ORIG from market softness Ocean Rigs fleet is fully contracted in 2014 For 2015 and 2016, our uncontracted units would only need to earn a dayrate of 368,000 in order for us to earn an average fleet-wide…
Industry Overview OCEAN RIG UDW INC.
Overview of floater fleet Fleet distribution by current water depth of operations Floaters Fleet Age Profile 40 450 32 229 400 35 400 28 35 30 350 81 96 Number of rigs 2 25 Age (years) 30 300 7 250 17 20 57 148 25…
Modern and advanced UDW rigs outperform older units Floaters Utilization based on build year UDW dayrates by age/generation 1) 2004- current adjusted to remove impact of Ocean Courage and Petrobras 10,000 in 2009 which were subject…
Development of offshore reserves Development of offshore reserves discovered since 2010(1) Incremental demand from 2010-2013 exploratory drilling campaign MMBoe Subsea wells (equivalent) 439 2,310 800 993 700 Probable 8,219…
Closing Remarks OCEAN RIG UDW INC.
Closing remarks Attractive portfolio of modern drilling units Fleet of 11 modern (6th and 7th generation) UDW drillships and 2 UDW harsh environment semi-submersible rigs Premium high specification standardized assets Value…
Appendix OCEAN RIG UDW INC.
Pure-play ultra-deepwater driller with premium assets Harsh environment UDW semis Sister drillships provide benefits from standardization Optimized for development drilling 5th generation semisubmersibles Four 6th and five 7th generation…
Pure-play 1 ultra-deepwater driller with premium assets Owned & operated ultra-deepwater fleet(1) Owned & operated drillships 40 35 35 30 30 5th largest fleet 4th largest 25 of floaters of units 25 20 20 15 15 10 10 5…
Healthy liquidity & capital structure June 30, Ownership on August 1st, 2014 (in million) 2014 Shares Outstanding 131.9 million Total cash 536.0 Bank / ECA Facility(1) 1,288.4 Free float shares 53.4 million B-1 Term Loans(1)…
Strong contract backlog provides cash flow visibility Counterpartys Unit Year built Redelivery Counterparties Operating area Backlog(2) parent credit rating (mm) Leiv Eiriksson 2001 Q2 16 Rig Management Norway (1) NR Norway 340…
2014 indicative revenue calculator To calculate FY2014 Revenues from drilling contracts add to the 2H drilling revenue calculated below: approximately 100.9 million in projected amortization of deferred revenues Net revenues from…
Fleet status report Date: 1-Aug-14 Scheduled Off-Hire Estimated Mobilization Days Estimated Available Drilling Days Year Built / Estimated Estimated Days Expected Commencement Completion 2014 2015 2014 Footnote 2014 2015 UDW Unit…
Projected deferred revenue & expense amortization As of August 1, 2014 (USD million) Q1A 2014 Q2A 2014 Q3E 2014 Q4E 2014 FY 2014 Q1E 2015 Q2E 2015 Amortization of deferred revenues 32.7 49.0 53.3 47.6 182.6 40.3 37.8 Amortization…
Balance Sheet (Expressed in Thousands of U.S. Dollars) December 31, 2013 June 30, 2014 ASSETS Cash, cash equivalents and restricted cash (current and non-current) 659,028 536,035 Other current assets 400,689 514,991 Advances for…
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