World Class Pareto Securities 21st Annual Oil and Offshore Conference September 10-11, 2014
World Class Overview
A Global Leader in Shallow Water Services Overview Worldwide Operations Global leader in jackup drilling and liftboat services. Marketed fleet consists of: 27 jackup rigs - one of the largest worldwide fleets 23 liftboats -…
Five-Year Contract with Maersk Oil Five-Year contract with Maersk Oil UK in Culzean Field Culzean Field High pressure, high temperature (HPHT) gas field discovered in 2008 One of the largest UK discoveries in recent years, it could…
Enhanced Newbuild Jackup for Maersk Oil Contract Newbuild Enhanced JU-2000E Turnkey yard cost of 236 million with total delivered cost of approximately 270 million 10/10/80 financing from shipyard Rig design customized to meet…
Strategic Attractiveness of Maersk Contract High-Grade Rig Fleet Geographic Diversity Three ultra high-specification newbuild North Sea entry under 5-year drilling contract jackups by 2016, from zero in early 2013 Improves revenue…
Focus on Risk Management FCPA investigation No near-term and concluded with no laddered maturities penalties or findings All unsecured debt of wrongdoing Strong liquidity Safety performance exceeds industry 600 million…
Revenue Backlog Total Revenue Backlog Revenue Backlog 1.2 billion 1,250 1,000 Contracted Backlog (MM) Maersk 750 500 250 0 2010 2011 2012 2013 Current * Backlog as of October 2010, October 2011, October…
World Class Business Outlook
Domestic Offshore Segment Overview Global recession and Macondo U.S. GOM Supply/Demand of Marketed Jackups created extreme conditions in 2009 and 2010 80 70 Strong rebound in demand after Hercules acquired main competitor 60…
Current U.S. GOM Jackup Supply vs. Demand U.S. GOM Jackup Supply and Demand as of August 25, 2014 80 58 76% Industry Utilization of 60 Number of Rigs Marketed Rigs 38 38 40 29 (20) 20 0 0 Current Less: Cold Marketed…
Domestic Offshore Average Dayrate Quarterly Average Revenue per Day Domestic Offshore 120,000 100,000 80,000 60,000 40,000 20,000 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 Source: Company filings 12…
Recent Fixtures in U.S. GOM vs. International Markets U.S. GOM Mexico West Africa Middle East SE Asia Cecil Provine GSP Fortuna Paragon L782 KS Medstar 1 Ensco 52 Fixtures (1982; 300 IC) (1984; 300 IC) (1981; 300 IC) (1980; 300 IC)…
International Jackup Market Snapshot International jackup rig demand International Jackup Market growth of 10% (CAGR) over past Worldwide Jackup Supply / Demand three years 550 Total Supply Key international markets driving 500…
Hercules Triumph and Resilience Contract Status Hercules Triumph: Working in India base dayrate in the 214k - 216k range Received 13 million in mobilization fees Contract term of approximately 10 months Hercules…
Long-Term Middle East Contract Extensions Five-year contract extensions on the Hercules 261 and Hercules 262 Total revenue backlog of approximately 465 million Extensions are priced more than 50% above current dayrates New…
International Offshore Drilling Outlook FY 2014E FY 2015E Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Newbuild Tbn SE Asia Delivery Q2 2016; Five Year Contract 224-226k commencing in Q3 2016 Hercules Triumph SE Asia 214-216k (1) Hercules Resilience…
International Liftboats Largest liftboat provider in West Africa Activity levels expected to be volatile throughout 2014 Long-term demand growth, tempered by competition creep Established presence in Middle East Robust demand…
World Class Conclusion
Investment Highlights Stable pricing in U.S. GOM jackup rig market, with expectation of demand improvement post hurricane season International fleet relatively well positioned Investments in new assets improving fleet profile and…
Domestic Offshore Marketed Rig Data Domestic Offshore Fleet Status as of 08/20/14 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Hercules 120 120' - MC, TD GOM Chevron 81-83 133…
International Offshore Marketed Rig Data International Offshore Fleet Status as of 08/20/14 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Singapore Under Construction 04/20/16…
Historical International Liftboats Fleet Status Second Quarter 2014 International Liftboat Fleet Data Leg Length/ Actively Revenue Per Liftboat Class Total Number Marketed Day Per Operating (1) (2) (3) (Feet) of Liftboats…
Crude Oil Driven Market in U.S. GOM Shelf Oil and condensates account for a growing Relationship between Oil/Gas Price to Production Mix percentage of U.S. GOM Shelf production 7.5 40% % Liquids Production in U.S. GOM Shelf 7.0…
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