Tesco Corporation Barclays Capital CEO Energy-Power Conference September 2011 1
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 2007 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 commercialization…
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* 114 600 535 120 462 500 430 100 379 79 356 71 400 80 57 300 60 42 200 40 100 20 0 0 2007 2008 2009 2010 TTM 2007 2008 2009 2010…
TESCO Delivers We are financially sound Millions USD NET CASH (Debt) Millions USD 80 61 STRONG BALANCE SHEET 60 41 31 (June 30, 2011) 40 20 Cash 41 0 2007 2008 2009 2010 June-2011 -20 -40 -29 Debt 0 -60 -58 Net Cash 41…
Business Segments Millions USD TOP DRIVES REVENUE 6M 2011 - Sales - Rental Top Drives 149 Tubular Services - Aftermarket and Service 67 TUBULAR SERVICES CASING - Conventional Casing Running DRILLING 7 - Proprietary Casing…
International Expansion Millions USD Millions USD 6M 2010 6M 2011 Russia Russia EAME 10 24 13 EAME Asia Asia 17 Pacific US Pacific 18 81 24 US 82 Latin Latin America America 35 50 Canada Canada 15 26 Total: 172…
Top Drives Global RENTAL MARKET Invented portable Top Drive Created Top Drive rental market Other Will rent or sell Top Drives TESCO Hydraulic Electric Growing Aftermarket Sales and Service business UNITS INSTALLED Other…
TESCO Top Drives A solid foundation for growth... Millions USD UNITS SOLD REVENUE 137 341 140 350 122 289 287 120 300 244 90 250 225 100 84 80 69 200 60 150 40 100 20 50 0 0 2007 2008 2009 2010 TTM 2007 2008 2009…
Top Drives Revenue Breakdown Millions USD Millions USD 6M 2010 6M 2011 AMSS AMSS 22 Rental 25 Rental 49 68 Sales Sales 35 56 Total: 106 Total: 149 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 Service Metrics Approximately 2+ billion market TTM Revenue = 123 million Less than 5% penetration of Proprietary Services 13,047 jobs run to date with CDS as of June 30, 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 Accomplishments Global expansion of CASING DRILLING applications Over 3.3 million feet of casing drilled Drilled 1,152 well intervals to date Drilled 119 directional well intervals Drilled 25 horizontal or…
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 For an ongoing onshore project: 1.5 to 2.5…
2011 Objectives Improve profitability in all segments Accelerate Casing Drive System growth Commercialize ESI 500 ton top drive Commercialize Liner Drilling offering Continue to generate free cash from operations Complete key…
Tesco Corporation Barclays Capital CEO Energy-Power Conference September 2011 28
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