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GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc.

Hercules Offshore, Inc. · Jun 24, 2012 · 34 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. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 1
    World Class GHS 100 Energy Conference June 24-26, 2012
  2. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 2
    World Class Overview
  3. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 3
    A Global Leader in Shallow Water Services Jackups Liftboats 42 Jackups 63 Liftboats Largest jackup provider in the U.S. Gulf of Mexico; 4th largest Largest liftboat provider provider worldwide worldwide Operations on three…
  4. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 4
    Global Footprint Global Summary Liftboats 63 Jackup Rigs 42 Inland Barges 17 Platform Rig 1 U.S. Gulf of Mexico U.S. Gulf Coast Jackup Rigs 33 Liftboats 40 Inland Barges 17 (1) Far East Mexico Jackup Rig 2 Platform…
  5. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 5
    World Class Business Outlook
  6. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 6
    Domestic Offshore Tight industry supply/demand for GOM Jackup Backlog and Dayrates (1) U.S. GOM jackups 8.0 150 Leading edge dayrates on the rise 7.0 135 GOM Backlog per Marketed Rig (Months) 120 GOM 200'MC Dayrate…
  7. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 7
    Leading Edge Dayrates Hercules Offshore Leading Edge Dayrates U.S. GOM 90 110 80 100 70 Dayrate (000 per day) Dayrate (000 per day) 90 60 80 50 70 40 30 60 20 50 200MC 250MS 250MC* 300MC* 350ILC…
  8. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 8
    Domestic Offshore Backlog Hercules Offshore Average Backlog per Marketed Rig U.S.(1)GOM 180 150 120 90 60 30 0 Ju 8 Ju 9 Ju 0 Ju 1 2 M 8 M 9 M 0 M 1 M 2 Ja 7 Ja…
  9. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 9
    U.S. GOM Supply vs. Demand U.S. GOM Jackup Supply and Demand as of June 20, 2012 90 69 95% Industry Utilization Number of Rigs of Marketed Rigs 60 43 39 37 30 (26) (4) 0 Current Less: Cold Marketed Planned Jackup…
  10. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 10
    Domestic Customer Base Exposure to Crude Oil Domestic customers have Customers U.S. GOM Liquids Mix significant exposure to crude oil, specifically Louisiana Light Sweet Apache 38% (LLS), which trades at a premium to WTI Chevron…
  11. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 11
    Large and Diverse Domestic Customer Base Diverse group of operators in the U.S. U.S. GOM Industry Customers Mix (1) GOM, ranging in size from mega-cap to private E&P EXXI Top five operators account for CVX 11% 11% Arena…
  12. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 12
    Central GOM Lease Sales Gulf of Mexico lease sales are Central GOM Lease…
  13. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 13
    Reactivation Matrix (1) Capital Payback Analysis (m onths to payback) Dayrate Assumption 65,000 70,000 75,000 80,000 85,000 Reactivation Capital Cost 10 10.5 9.1 8.0 7.2 6.5 11 11.5 10.0 8.9 7.9 7.2 ( in millions) 12…
  14. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 14
    Domestic Offshore Potential Earnings Upside (1) Incremental EBITDA Analysis ( in m illions, except dayrate) Increase in Average Dayrate 5,000 10,000 15,000 20,000 25,000 18 28 56 84 112 140 Number of Rigs Working 19 42 71…
  15. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 15
    International Offshore Resilient oil prices are supportive of International Jackup Backlog and Dayrates strong growth in international capital 18.0 200 spending 16.0 175 Middle East 300'IC Dayrate (thousands) National Oil…
  16. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 16
    Accretive Rig Acquisition and Blue Chip Contract Key asset details Projected Return on Capital Employed Acquisition of the Ocean Columbia (renamed ( in millions) Hercules 266) Rig purchase price 40.0 Upgrade costs 35.0 Contract…
  17. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 17
    International Drilling Outlook FY 2012E FY 2013E Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Middle Hercules 261 83-85k 83-85k East Middle Hercules 262 79-81k 79-81k East Middle Hercules 266 124-126k East Platform 3 Mexico 49-51k 49-51k Hercules…
  18. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 18
    Discovery Offshore Fleet renewal and exposure to premium jackup market through 28% ownership of and management agreements with Discovery Offshore Discovery jackup rig specifications to rank in the top 8% of global marketed rig fleet…
  19. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 19
    International Liftboats Largest liftboat provider in West Africa and established presence in Middle East Well-established liftboat market and long term demand growth drivers in West Africa, tempered by competition creep Robust…
  20. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 20
    Domestic Liftboats Seasonally-driven market demand, with activity levels expected to improve in the second and third quarter Select industry capacity movement out of the Gulf of Mexico, including Companys Kingfish vessel to the…
  21. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 21
    World Class Conclusion
  22. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 22
    Hercules Strategy Remains Consistent Maintain Leading Position Diversify Geographically in Core Businesses Opportunistic Growth Focus on And Fleet Optimization Shallow Water Assets Maintain Status as an Efficient, Low-Cost…
  23. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 23
    History of Growth August October January June August September November February 2004 2004 2005 2005 2005 2005 2005 2006 Acquired five Acquired 22 Acquired Rig 25 Acquired Rig Acquired Acquired Acquired Acquired jack up rigs…
  24. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 24
    Refinancing Summary Recent execution of comprehensive refinancing to facilitate rig acquisition, increase operational flexibility and extend maturity profile Refinancing consist of the following: 20 million new shares of equity…
  25. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 25
    Investment Highlights Positive industry trends in the U.S. GOM led by tight jackup rig supply and oil / liquids-rich activity demand driver Strengthening international jackup market, exemplified by Companys recent Aramco…
  26. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 26
    APPENDIX 26 World Class
  27. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 27
    Domestic Offshore Marketed Rig Data Domestic Offshore Fleet Status as of 06/20/2012 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Hercules 120 120' - MC, TD GOM Chevron 37-39 194…
  28. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 28
    Domestic Offshore Marketed Rig Data (continued) Domestic Offshore Fleet Status as of 06/20/2012 (continued) 51-53 16 07/06/12 Hercules 214 200' - MC, TD GOM Apache 66-68 90 10/04/12 Walter Oil & Gas 47-49 50 08/09/12 Hercules 251…
  29. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 29
    International Offshore Marketed Rig Data International Offshore Fleet Status as of 06/20/2012 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Hercules 170 170' - ILC, TD Bahrain Warm…
  30. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 30
    Strong Health, Safety and Environmental Record Total Recordable Incident Rate (TRIR)(1) Lost Time Incident Rate (1) (LTIR) (2) 2.50 0.60 0.55 2.17 0.53 2.05 0.50 2.00 0.46 0.49 0.45 1.77 1.82 0.40 0.37 1.48 0.39 1.50 0.35…
  31. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 31
    GOM Shallow Water Operator Data Top 20 Shallow Water (0-350ft) GOM Lease Holders Apache Corp Current % of Total Operator Chevron Jackup Current Stone Energy McMoran O&G Apache Corp 6 16% Chevron 4 11% W&T Offshore Stone…
  32. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 32
    Summary of Discovery Offshore Structure Overview Structure Discovery Offshore is a newly established Luxembourgbased company Investors Hercules Offshore Constructing two ultra highspecification Keppel FELS Super A jackup rigs…
  33. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 33
    Adjusted EBITDA reconciliation The following table reconciles our Losses from Continuing Operations, the most directly comparable GAAP financial measure, to EBITDA and Adjusted EBITDA in thousands As of 12/31/2011 Loss from…
  34. GLOBAL HUNTER SECURITIES 100 ENERGY CONFERENCE – Hercules Offshore, Inc. – slide 34
    World Class

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