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JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc.

Hercules Offshore, Inc. · Nov 11, 2014 · 28 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 1
    World Class Jefferies Energy Conference November 11-12, 2014
  2. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 2
    World Class Overview
  3. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 3
    A Global Leader in Shallow Water Services Overview Worldwide Operations Global leader in jackup drilling and liftboat services. Marketed fleet consists of: 23 jackup rigs 23 liftboats - largest international fleet Operations in…
  4. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 4
    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…
  5. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 5
    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…
  6. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 6
    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…
  7. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 7
    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 Asset Profile…
  8. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 8
    Revenue Backlog Total Revenue Backlog 1,250 Revenue Backlog 1.1 billion 1,000 Contracted Backlog (MM) Maersk 750 500 250 0 2010 2011 2012 2013 Current * Backlog as of October 2010, October 2011, October 2012,…
  9. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 9
    World Class Business Outlook
  10. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 10
    Domestic Offshore Segment Overview Global recession and Macondo U.S. GOM Supply/Demand of Marketed Jackups created extreme conditions in 2009 and 2010 80 Strong rebound in demand after 70 Company acquired main competitor 60 in April…
  11. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 11
    Current U.S. GOM Jackup Supply vs. Demand U.S. GOM Jackup Supply and Demand as of November 7, 2014 75 56 65% Industry Utilization of 60 Number of Rigs Marketed Rigs 45 35 34 30 22 (21) (1) 15 0 Current Less: Cold…
  12. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 12
    Domestic Cost Reduction Measures Cold-Stacked Operating Cost Capital Spending Jackups Reduction(1) Reduction(2) 4 +50mm +60mm Executing cost structure reductions while contributing to improved supply balance in the U.S. GOM…
  13. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 13
    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 3Q14 Source: Company…
  14. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 14
    International Jackup Market Snapshot Resilient international jackup rig International Jackup Market demand growth of 4% YTD Worldwide ex. U.S. GOM Jackup Supply / Demand Marketed utilization remains firm 500 at over 90% Total…
  15. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 15
    Mobilization of the Hercules Triumph to North Sea Oct-2014 Nov-2014 Dec-2015 Jan-2015 Feb-2015 Departs Sri Lanka Offload in Rotterdam Shipyard Projects - Spudcan - Sponsons - Pipe Racking System Completion of Upgrades…
  16. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 16
    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 prior dayrates New dayrates…
  17. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 17
    International Offshore Drilling Outlook FY 2014E FY 2015E Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Hercules Highlander SE Asia Delivery Q2 2016; Five Year Contract 224-226k commencing in Q3 2016 Hercules Triumph SE Asia 214-216k (1) Hercules…
  18. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 18
    International Liftboats Largest liftboat provider in West Africa Activity levels expected to be volatile in 2014 through mid-2015, driven by Nigeria Established presence in Middle East Robust demand driven by construction and well…
  19. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 19
    World Class Conclusion
  20. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 20
    Historical Cash Balance and Revolver Availability Historical Liquidity Cash and Cash Equivalents Revolver Availability 600 500 Temporary cash draw while in the process of closing 400MM of capital to Millions 400 fund…
  21. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 21
    Investment Highlights Company taking aggressive steps to right size domestic business with current demand outlook Investments in new assets improving fleet profile Liftboat market soft for today, but long-term supply/demand dynamics…
  22. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 22
    APPENDIX 22 World Class
  23. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 23
    Total Debt Summary Description Amount Coupon Maturity First Call Date (MM) Rate Senior Unsecured Notes 200 10 1/4% Apr2019 Apr2015 107 11/16% Senior Unsecured Notes 400 8 3/4% Jul2021 Jul2017 104 3/8% Senior Unsecured Notes 300 7 1/2%…
  24. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 24
    Domestic Offshore Marketed Rig Data Domestic Offshore Fleet Status as of 10/23/14 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Hercules 120 120' - MC, TD GOM Chevron 81-83 69…
  25. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 25
    International Offshore Marketed Rig Data International Offshore Fleet Status as of 10/23/14 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Singapore Under Construction 04/20/16…
  26. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 26
    Historical International Liftboats Fleet Status Third 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 Liftboats…
  27. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 27
    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…
  28. JEFFERIES ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 28
    World Class

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