Tesco Corporation Capital One Southcoast 6th Annual Energy Conference December 2011
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* 535 114 600 120 462 463 500 100 379 79 400 356 74 80 57 300 60 42 200 40 100 20 0 0 2007 2008 2009 2010 TTM 2007 2008…
TESCO Delivers We are financially sound Millions USD NET CASH (Debt) Millions USD 80 61 STRONG BALANCE SHEET 60 36 31 (September 30, 2011) 40 20 Cash 36 0 -20 -40 -29 Debt 0 -60 -58 EQUITY Net Cash 36 362 376 399 352…
Business Segments Millions USD REVENUE 9M 2011 TOP DRIVES - Sales Top Drives Tubular - Rental 233 Services 105 - Aftermarket and Service TUBULAR SERVICES CASING DRILLING 12 - Conventional Casing Running Total: 350 -…
International Expansion Millions USD Millions USD 9M 2010 9M 2011 Russia Russia EAME 17 42 19 EAME Asia Asia 24 Pacific US Pacific 28 126 38 US 123 Latin Latin America America 50 74 Canada Canada 25 49 Total: 265…
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 137 341 140 350 309 122 289 120 300 244 90 93 225 100 250 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 9M 2010 9M 2011 AMSS AMSS 35 Rental 39 Rental 77 103 Sales Sales 55 91 Total: 167 Total: 233 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 = 132 million Less than 5% penetration of Proprietary Services 14,005 jobs run to date with CDS as of September 30, 2011 Proprietary CDS requires a Top Drive (any…
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 2009 / 2010…
CASING DRILLING Accomplishments Global expansion of CASING DRILLING applications Over 3.4 million feet of casing drilled Drilled 1,202 well intervals to date Drilled 125 directional well intervals Drilled 26 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…
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 Capital One Southcoast 6th Annual Energy Conference December 2011
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