Howard Weils 40th Annual Energy Conference April 2012 2012 Tesco Corporation. All rights reserved.
TESCO at a Glance Global leader in design and delivery of technology-based solutions for the drilling industry Three business line segments: Top Drives Tubular Services CASING DRILLING Seven acquisitions from 2005 to 2011 to…
Strategic Direction 2005 2010 Become the second largest Top Drive company Become a top five player in Tubular Services Commercialize CASING DRILLING Aggressively grow international business All focused on the…
Accelerated Strategic Direction 2011 2015 Develop best-in-class service and product quality Become the automation company of choice, starting with Top Drives Become the largest Tubular Services company in the industry Accelerate…
TESCO Delivers We have delivered growth and earnings Millions USD Millions USD REVENUE EBITDA* 535 114 600 120 513 462 500 100 86 379 79 400 356 80 57 300 60 42 200 40 100 20 0 0 2007 2008 2009 2010 2011 2007 2008…
TESCO Delivers Millions USD We are financially sound NET CASH (Debt) Millions USD 80 61 60 31 STRONG BALANCE SHEET 40 16 (December 31, 2011) 20 0 2007 2008 2009 2010 2011 Cash 23 -20 -40 -29 -60 Debt 6 -58 EQUITY Net…
Business Segments Millions USD TOP DRIVES REVENUE 2011 - Sales - Rental Top Drives 345 Tubular Services - Aftermarket Sales and Service 151 TUBULAR SERVICES CASING DRILLING - Conventional Casing Running 17 Total: 513 -…
International Expansion Millions USD Millions USD 2010 2011 Russia Russia 27 28 EAME EAME 23 29 US Asia US Asia 144 Pacific 131 Pacific 31 41 Latin Latin America America Canada 68 Canada 94 177 99 Total: 379…
Top Drives Global Invented portable Top Drive RENTAL MARKET Created Top Drive rental market Will rent or sell Top Drives Other Hydraulic TESCO Electric Growing Aftermarket Sales and Service business UNITS INSTALLED Other…
TESCO Top Drives Record revenue in 2011, and Growing... Millions USD UNITS SOLD REVENUE 137 341 345 140 350 122 289 115 120 300 244 100 90 250 225 80 69 200 60 150 40 100 20 50 0 0 2007 2008 2009 2010 2011 2007…
Top Drives Revenue Breakdown Millions USD Millions USD 2010 2011 AMSS AMSS 49 Rental 56 Rental 109 136 Sales Sales 86 153 Total: 244 Total: 345 2012 Tesco Corporation. All rights reserved. 12
Top Drive Market OFFSHORE RIGS LAND RIGS Offshore Rigs with Land Rigs Top Drives with Top 95% Land Rigs Drives without 60% Top Drives 40% Offshore Rigs without Top Drives 5% Total Rigs: 700 Total Rigs: 5,000*…
Tubular Services Conventional casing running, tubing installation, and completions services Proprietary Casing Drive System (CDS) technology greatly increases efficiency and safety Proprietary technology associated with sub-sea…
Tubular Services Revenue Breakdown Millions USD Millions USD 2010 2011 Conventional Conventional 21 31 Proprietary Proprietary 120 101 Total: 122 Total: 151 2012 Tesco Corporation. All rights reserved. 16
Conventional Casing Running 2012 Tesco Corporation. All rights reserved. 17
Proprietary Casing Running 2012 Tesco Corporation. All rights reserved. 18
Tubular Service Metrics Approximately 2+ billion market Revenue = 151 million Less than 5% penetration of Proprietary Services 15,185 jobs run to date with CDS as of December 31, 2011 Proprietary CDS requires a Top Drive (any Top…
CASING DRILLING Proprietary technology allows wells to be simultaneously drilled and cased Retrievable (exclusive to TESCO) Interval or complete well Non-Retrievable (TESCO, et al) Interval with drillable shoe 2010 / 2011…
CASING DRILLING Ramping up growth... Millions USD REVENUE 30 27 25 20 17 15 15 13 13 10 5 0 2007 2008 2009 2010 2011 2012 Tesco Corporation. All rights reserved. 21
CASING DRILLING Technology Conventional Drilling CASING DRILLING 2012 Tesco Corporation. All rights reserved. 22
CASING DRILLING Plastering Effect 2012 Tesco Corporation. All rights reserved. 23
CASING DRILLING Customers 2012 Tesco Corporation. All rights reserved. 24
CASING DRILLING Accomplishments Global expansion of CASING DRILLING applications Over 3.5 million feet of casing drilled Drilled 1,314 well intervals to date Drilled 135 directional well intervals Drilled 28 horizontal or near…
CASING DRILLING Market TESCO believes this potential market is measured in billions Existing technology is applicable to thousands of wells Todays market is approximately 50 million USD On an ongoing onshore project: 1.5 to 2.5…
2012 Objectives Improve profitability in all segments Drive record revenue Accelerate Tubular Services Growth Find strategic partner for Casing Drilling Continue to generate free cash from operations Complete key strategic…
Howard Weils 40th Annual Energy Conference April 2012 2012 Tesco Corporation. All rights reserved.
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