Pareto Oil & Offshore Conference Chris Beckett, CEO September 4, 2013
Company Profile Committed to Being the Preferred Ultra-Deepwater Driller Most modern floater fleet in the industry Exclusively focused on ultra-deepwater NYSE: PACD (1) Market Cap: 2.2 Billion 1Q2011 3Q2013 Number of Rigs 4 8…
Positioned for Further Success Experienced management team delivering exceptional operating record Uniquely consistent, latest generation fleet provides marketing advantage and superior margins Balance of high quality backlog…
Exclusive Focus on the Global Ultra-Deepwater Growth Market Projected Demand for UDW Rigs (2012-2015)(2) 111 85 PACD Active Basins 2012 2015 +4 13 +9 9 42 64 41 Other UDW Demand Basins 32 2012 2015 +3 N. Sea 6 3 +1 Med /…
UDW Demand Expected to Exceed Supply (2) Supply and Demand Forecast 190 175 178 156 150 132 Supply Demand Supply Demand Supply Demand 2013 2014 2015 6 For rigs with water depth capability of 7,500 ft. or greater. Includes…
Dayrates Have Responded to the Tight Market (3) All-in Contract Costs and Term for 5th Gen and Later Ultra-Deepwater Floaters 750 Day rate, K/d W.Africa Angola 700 Morocco Angola Angola Angola Ghana Saudi Canada 650 Brazil…
2013 Represents Strongest First Half Contracting Activity Since 2008 Ultra-Deepwater Fixtures (Rig Years) 140 134 130 120 US 110 Average = 27 W Africa 100 rig years per quarter 95 Asia Rig Years Awarded 90 S America 80…
Creating Shareholder Value Through Sustainable Differentiation Performance Excellence Growth Capital Management 9
Performance Excellence Built on Four Cornerstones Functional Excellence Asset Quality Right resources Right sized fleet Performance management Consistency Processes Technology Strong Team Targeted Approach Transparency Clients…
Newest and Most Capable UDW Fleet in the Industry Average Floater Fleet Depth and Age (6) More Modern 2020 Seadrill 2014 North Atlantic Drilling 2009 Average Year Built 2004 Ocean Rig Ensco Atwood 1998 Noble 1993…
Newer Rigs Enjoy Higher Utilization Rates Throughout Cycle (8) Floater Utilization Since 2008 by Build Cycle 100 2007 - Current 1998 - 2006 95 90 Utilization % 85 1979 - 1997 80 1971 - 1978 75 70 Apr…
Newest Drillships Benefit from Preferential Demand Advanced Rigs Deliver Enhanced Value to Clients in All Water Depths through Significantly Enhanced Drilling Efficiency Industry Trends Over 48% of Floaters Greater than 10 Years Old…
Dayrate Bifurcation Between Newer and Older Floaters Has Increased Dayrate Trend for Floating Rigs By Delivery Period(9) 700 650 600 550 500 450 400 350 300 Jan-12 Apr-12 Jul-12 Oct-12 Feb-13 May-13 Aug-13 Delivery Period…
Contracting Success Maximizes Revenue Potential Range of Contract Dayrates by Term and Year Signed for 5th Gen and Later Ultra-Deepwater Floaters (9) 700 Dayrate 660 650 642 (K) Highest USGoM 2nd Highest Rate Rate for 5 Year 600…
Standardized Equipment & Procedures Drive Enhanced Margins Optimized levels of fleet spares & inventory/warehousing Rapid application of lessons learned & best practices Maximize Revenues Focused training programs & better…
Strong Financial Results Post Ramp-up Targeting Industry Leading Margins: 1. Four more rigs to be delivered 2. Dayrates higher for new rigs 3. Repricing of existing rigs 4. Efficiency improvement Ramp-up Period Post Ramp-up (000s,…
Exceptional Safety Performance LTIF 3.0 No lost time incidents (LTIs) during construction 2.44 (approximately 775,000 man 2.5 hours) 1.95 1.88 1.79 2.0 Pacific Bora achieved 2 years without an LTI 1.5 1.3 1.0…
Creating Shareholder Value Through Sustainable Differentiation Performance Excellence Growth Capital Management 19
3.1 Billion Backlog with Blue Chip Operators Backlog as of August 1, 2013 2013 2014 2015 Chevron Nigeria, 475k/d Pacific Bora Unpriced options for up to 2 years of additional term 3 year contract Total Nigeria, 475k/d Total…
Targeted 12 Rig Fleet Disciplined Growth with Risks Mitigated Financial Operational Long term market view Proven rig designs built by world class Financing costs & timing shipyard Maximum 2 uncommitted newbuilds Construction…
New Rigs Have Greater Remaining Lifetime Earnings Potential, Justifying Higher Asset Values and EBITDA Multiples Implied NPV Implied Rig Value EBITDA (MM) Multiple Rig Age 20 Years 785 6.1x Assumptions 550 K/day revenue -200…
Creating Shareholder Value Through Sustainable Differentiation Performance Excellence Growth Capital Management 24
Disciplined Capital Allocation Fleet Growth Debt Long term solutions in place for working capital, cash 1.9B remaining capex for newbuilds management & temporary import bond requirements Continuing to support organic growth of fleet…
Deleveraging of Existing Fleet Expected to Increase Equity Value Net Debt/ Net Debt/ (10) Book Capital 90% 10.0 EBITDA 80% 9.0 445M 439M 7.5 8.0 70% 359M 7.0 60% 53% 54% 49% 6.0 50% 5.0 5.0 40% 4.0 3.4 30% 3.0 20%…
Growth in Profitability and Cash Flow From 8 Rig Fleet Should Allow for Return of Cash to Shareholders Cash Flow from Operations Forecast (MM) 700 600 500 400 600 300 200 285 190 100 2013 2014 2015 Cash Flow from…
Questions and Answers Positioned for Further Success Experienced management team delivering exceptional operating record Uniquely consistent, latest generation fleet provides marketing advantage and superior margins Balance of…
Investor Contact Pacific Drilling William Restrepo, CFO Amy Roddy, VP Investor Relations 3050 Post Oak Blvd 1500 Houston, Texas USA Phone: +1 832-255-0502 Email: Investorpacificdrilling.com www.pacificdrilling.com 29
Footnotes 1. Closing stock price of 10.02 as of August 9, 2013, and 217 MM shares outstanding. 2. Supply data from IHS-Petrodata as of July 2013. Newbuild supply weighted by portion of the year during which it is eligible to work.…
Appendix Benefits of Recent Financial Transactions Lock in historically low interest rates Improve parent company liquidity Obtain a long-term solution for working capital, cash management, and temporary import bonding requirements…
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