Ocean Rig UDW Inc. 3rd Quarter Ended September 30, 2011 Earnings Presentation NASDAQ: ORIG November 8, 2011
Financial Highlights 2
Q3 2011 Results Reported Net Income: 49.1 million or 0.37 per share Plus Losses incurred on our interest rate swaps 15.5 m Adjusted Net Income: 64.6 million or 0.49 per share Adjusted earnings well ahead of analyst…
Solid Quarter Selected Data (in thousands) Q3 - 2010 Q3 - 2011 Income Statement Data Total Revenues 114,184 226,036 Operating Costs (26,846) (84,639) General & Administrative Expenses (4,157) (6,845) Other 4,288 (993) EBITDA…
Healthy Liquidity & Capital Structure September 30, Ownership(2) ( in millions) 2011 Shares Outstanding 131.7 million Cash 329.8 Free float shares 34.4 million Restricted cash 166.1 % of free float shares 26.1% Secured debt…
Minimal Growth Capex No material Capex until 2H 2013 Already invested in excess of 720 million of our own funds in our 2013 newbuilds Remaining capex to be funded primarily with debt financing Remaining Capex(1) Total Capex…
Debt Profile Financing efforts successfully concluded for all 2011 deliveries Scheduled Debt Repayments Debt Outstanding Actual 9/30 700 USD Millions 629 2 Semisubmersible rigs Amortizing 140.0 600 Balloon (9/2013)…
Company Update 8
Fleet Update All Drillships delivered as of 9/30 Two harsh environment semis Four 6th generation drillships Three 7th generation NB drillships Two of only 15 drilling units worldwide equipped to Of 30 UDW drilling units to be…
1.8 billion Backlog Entered into drilling contracts for three additional wells offshore West Africa for an estimated backlog of 96 million. The new contracts commenced in direct continuation after the completion of the Tullow…
Employment Strategy Working on all six cylinders for the first time Unique opportunity to capitalize on strong market rates with three drilling units open for employment in 2012 Year 2011E 2012E 2013E 2014E Leiv Eiriksson…
Industry Overview 12
UDW industry strong fundamentals Oil companies CAPEX at all-time high levels and growing (in million) 500,000 400,000 300,000 200,000 100,000 0 GoM factor GoM more active, and looking to become even more active in…
Recent UDW Fixtures Rising Rates Market trend shows longer charters and higher rates Source: Fearnleys OCEAN RIG UDW INC. 14
Very Tight Supply FIRM CONTRACT 1 OPTION CONSTRUCTION DELIVERY 3 NEWBUILDINGS Our units are 3 of the 10 available for start-up in 2012 Source: Fearnleys OCEAN RIG UDW INC. 15
Looking Forward 16
Where we were... Predecessor company established in 1996, with no rigs In 1997 placed orders for four bare decks at Dalian Took delivery of Eiriksson and Eirik Raude in 2001 and 2002 In 2006 we were still a small drilling company…
What we have done Completed the acquisition of ORIG May 2008 Placed orders for 4 state-of-the-art 6th generation newbuilding drillships Financed drillships despite challenging financial markets Took delivery of all rigs on time and…
Where we want to be Secure more contracts and build even stronger relationship with our clients One of a handful of contractors with units open in 2012 By 2H 2013 to operate 9 state-of-the-art ultra deepwater drilling units Global…
Significant Earnings Power Significant earnings power not reflected in low Enterprise Value EBITDA(1) 6 drilling units (million) Dayrate ( thousand) Utilization 450 500 550 600 97% 597 704 810 916 95% 578 682 786 890 93% 558…
Recent M&A Transaction Transaction reveals market valuations for high-spec ultra deepwater assets are meaningfully below intrinsic values On August 15, 2011, Transocean announced an all cash NOK 26.5 offer for 100% of Aker Drilling…
Appendix 23
Income Statement (Expressed in Thousands of U.S. Dollars Three Months Ended Nine Months Ended except for share and per share data) September 30, September 30, 2010 2011 2010 2011 (as restated) (as restated) REVENUES: Revenues…
Balance Sheet (Expressed in Thousands of U.S. Dollars) December 31, 2010 September 30, 2011 ASSETS CURRENT ASSETS: Cash and cash equivalents 95,707 329,836 Restricted cash 512,793 41,085 Trade accounts receivable 24,286 69,615…
Depreciation (in thousands) Leiv Eiriksson Eirik Raude OCR Corcovado OCR Olympia OCR Poseidon OCR Mykonos Book Cost 682,191 712,196 882,572 874,089 816,277 810,263 Residual Value 35,000 35,000 50,000 50,000 50,000 50,000…
Mobilization Effect Q4 revenues earned and costs incurred during mobilization are deferred and amortized over the post mobilization (i.e. drilling) remaining term of the contracts(1) Period Unit Estimated Revenue Recognition…
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