Overview of Paragon Offshore Business Overview Worldwide Offshore Presence North Sea Offshore contract drilling services provider Semis: 1 Jackups: 7 operating standard specification rigs Canada Hibernia Platform Operations…
Paragons Strategy Deliver reliable, safe, cost-efficient operations Match our assets to customers in fit- for-purpose applications while maintaining industry-leading utilization Manage our costs to preserve flexibility in changing…
Significant Contract Backlog with Global Customers in millions Backlog by Customer 750 2.3 Bn of Backlog as of 6/30/2014 As of 6/30/2014 Other 28% Petrobras 42% Nexen 561 4% 508 ADMA- 500 OPCO 5% Total Pemex 443 14% 7%…
Strong History of Utilization Speaks to Quality of Operations & Assets Marketed fleet utilization for non-US rigs 15 years old and older since January 1, 2011 ILC Jackup Utilization Floater Utilization Percentage Percentage 100…
Industry-Leading Safety and Quality Performance Commitment to Safety and Quality Strong Safety Record Customers recognize our commitment to safety and performance 1.00 50% lower TRIR1 than International 0.81 Association of Drilling…
Key Challenges Jackup market capacity additions and potential impact on the market Some customers focusing on more challenging wells (e.g., wells requiring higher specification rigs) Petrobras rollover of current floater…
Newbuild Jackup Orders According to IHS 22 September 2014 141 Anticipated Jackup Deliveries 160 141 18 25 120 98 55 80 31 40 12 0 Total Newbuilds Contracted Rigs Rigs on Order- Rigs Under China Singapore Other (USA, No…
Considerations for the Jackup Markets Large jackup orderbook may be cause for concern, but more nuanced analysis of the market is required. Consider: Newbuilds Customer Behavior Will all newbuilds actually be Do all customers need and…
Differences Between Floater and Jackup Markets Fixtures for UDW Rigs 7,500 Ultradeepwater Floater Markets Few fixtures over last 12 months and downward trend Demand governed by relatively few customers (supermajors, Petrobras)…
PeopleA Key Ingredient for Success and an Advantage for Paragon With 141 jackups and 93 floaters under construction, the industry needs to add a significant number of people to crew these units At an average of 100 people per rig, we…
Paragons Contract Coverage 15 September 2014 Fleet Status Jackup Floater 2014 2015 2016 2017 Rig Name Region J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D DPDS3 (NRE) Brazil DPDS2 (NLS) Brazil…
Mexico Reform Likely to Continue to Provide Opportunities Mexican Energy Reform Underway Round 0: Pemex received 100% PEMEX to retain: 15% (8.9 bn boe) of 2P and 67% of Prospective PEMEX to retain: Reserve requests including 29%…
Paragons Position in Brazil Four of Paragons floaters operate in the post- salt Campos Basin where decline rates are estimated to exceed 10% per year Capex budget for Petrobras has increased by 4.6% Rigs under construction in Brazil…
Capital Structure Overview In Millions 73 30 June 2014 Pro-forma Cash Balance Revolving Credit Facility, Matures 2019 800 Undrawn LIBOR + 2.00% Secured Term Loan, Matures 2021 LIBOR + 2.75%, 1% Floor 650 1% annual…
800MM Revolving Credit Facility 800MM Revolving Credit Facility, with 80MM swing line and 300MM accordion Ratings: BBB- (S&P), Baa3 (Moodys) Pricing: LIBOR + 2.00%, plus annual commitment fee of 0.375%, both based on Leverage Ratio…
650MM Term Loan 650MM, 7 year Term Loan Ratings: BBB- (S&P), Baa3 (Moodys) Pricing: LIBOR + 2.75%, 1% LIBOR Floor Amortization: 1.6MM quarterly (6.5MM per year). Pre-payable at any time at par Collateral: All rigs except the FPSO1…
Senior Unsecured Notes 500MM, 6.75% notes maturing July 2022 (8 years) Non-call 4 years 580MM, 7.25% notes maturing August 2024 (10 years) Non-call 5 years Ratings: B+ (S&P), Ba3 (Moodys) Financial Covenants: None Change of Control…
Disciplined Capital Allocation The Focus for Paragon Offshore Secure contract renewals Make disciplined investments to maintain fleet, improve competitiveness, extend life Focus on 180 MM Maintenance (base budget + survey-related…
Paragons Model Intact Under Stress Case ILLUSTRATIVE Assume no contribution from floating rigs; jackups operating at 98% Assume Cash Requirements: Cash operating costs: 600 MM (50k per day after inflation) Interest expense: 100 MM…
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Why Paragon Offshore Significant Scale, Size and Expertise Low-cost Driller with Proven Record of Excellence Strong Backlog and Established Diverse Customer Base Well-Maintained Workhorse Fleet of Rigs Opportunistic…
NYSE Listed: PGN 3151 Briarpark Drive Houston, TX 77042 832.783.4000 For additional information, contact: Lee M. Ahlstrom SVP-Investor Relations, Strategy & Planning lahlstromparagonoffshore.com www.paragonoffshore.com
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Management Team with More Than 180 Years of Experience in the Industry Randy Stilley Charlie Yester President and CEO Senior VP - Operations 38 years experience 40 years experience Steve Manz Todd Strickler Vice President and…
Reconciliation to EBITDA Predecessor Historical Paragon Offshore Pro Forma Year Ended Year Ended December 31, December 31, Six Months 2011 2012 2013 2013 6/30/2014 Net Income 104,823 126,237 360,305 172,387 135,172 Add:…
30 June 2014 Pro-forma Summary Balance Sheet Assets Cash 72,688 Total Current Assets 505,488 PPE, Net 2,883,729 Total Assets 3,484,679 Liabilities and Equity Total Current Liabilities 281,350 Long-term Debt 1,726,750…
Jackup Overview: Rigs 15 Years and Older Number of Units Key Owners of Standard ILC Jackups 350 323 66 Number of ILC 300 Jackups 15 Years 257 8 Company and Older 249 250 Shelf Drilling 37 200 Paragon Offshore 34 150 Ensco 30 100…
Jackup Overview: Newer Standard Rigs Less Than 15 Years Old Breakdown by Design: 123 Total Key Owners of Newer Standard Jackups Mod V A, 2 Other, 8 Number of ILC JU-2000, 2 KFELS B Jackups 14 Years Class, 31 CJ-50, 4 Company and…
Floater Overview Drillships and Semisubmersibles 15 Years and Older Number of Units 15 Years or Older Key Owners of Standard Floaters 180 171 Total 160 23 148 Drillships Semisubs Floaters 15 27 15 Years 15 Years Years and 140 26…
Why Our Old Jackups Are Not Going Away Assertion: Rigs that are 35 years old must be retired Response: Our 35 year-old rigs have very little on them that is actually 35 years old. Our continual maintenance replaces steel, renews drilling…
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