Overview of Paragon Offshore Business Overview Worldwide Offshore Presence North Sea Offshore contract drilling services provider Semis: 1 Jackups: 9 Canada Hibernia Spin-off from Noble Corporation completed Platform…
Strong Third Quarter 2014 Operational Results Contract Drilling Services Revenues: 440 million EBITDA: 224 million Net Income: 52 million Earnings per Share: 0.59 Jackup Marketed Utilization: 80% Average Jackup Dayrate: 117,208…
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…
Paragons Acquisition of Prospector Offshore Transaction Summary As of November 20, 2014, Paragon has acquired 98% of the outstanding shares of Prospector Offshore Drilling S.A. (Prospector) Share Price: NOK 14.50 (2.13) Share purchase…
Contract Overview and Delivery Schedule of Propsector Offshores Rigs PROSPECTOR 1 has a firm charter duration of 730 days, plus one 1-year option and four 6-month options with Total The total revenue backlog for firm period is…
Acquisition of Prospector Provides Paragon the Opportunity to Improve Fleet Age by 5 Years* Average fleet age in years, Jack-Up fleets Jack-Up fleet sizes ( rigs) 0 10 20 30 40 0 10 20 30 40 50 Prospector 0 Ensco 42 Seadrill 3…
Prospector Transaction Next Steps Commence a mandatory tender offer for the remaining outstanding shares in Prospector within four weeks with the intent to require all remaining shares Continue discussions with Prospectors bank group…
Paragons Contract Coverage November 17, 2014 Fleet Status Including Prospector Rigs Jackup Floater Prospector 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…
Agreement with Petrobras to Transfer Backlog from DPDS1 to MSS2 As part of our ongoing discussions with Petrobras, Petrobras proposed an early release for the DPDS1 and a transfer of the value of the backlog from the DPDS1 to the…
2.4 Billion of Backlog Including Prospector and Adjusted for Petrobras Agreement as of 10/31/2014 Backlog by Customer in millions as of 10/31/2014 800 Other, 20% 677 Nexen, Petrobras 3% , 34% ADMA- 600 OPCO, 5% ONGC,…
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…
Market Considerations Returns for industry players have been negatively impacted in recent years by a variety of factors Jackup market capacity additions create potential challenges for drilling contractors Challenges and…
Key Issues Impacting Returns in Recent Years For Operators For the Drilling industry Financial crisis and resulting host Rising labor costs and competition government responses for crews Macondo incident and impact on Increasing…
Newbuild Jackup Orders According to IHS November 21, 2014 147 Anticipated Jackup Deliveries 160 147 20 23 120 104 61 80 30 40 13 0 Total Newbuilds Contracted Rigs Rigs on Order- Rigs Under China Singapore Other (USA, No…
Newbuild Floater Orders According to IHS November 21, 2014 91 Anticipated Floater Deliveries 120 62 Ships, 29 Semis 91 49 80 15 40 27 15 10 2 0 Total Newbuilds Contracted Rigs Rigs on Order- Rigs Under South Korea China…
Differences Between Floater and Jackup Markets Fixtures for UDW Rigs 7,500 Ultradeepwater Floater Markets Few fixtures over last 12 months and downward day rate trend Demand governed by relatively few customers (supermajors,…
PeopleA Key Ingredient for Success and an Advantage for Paragon With 147 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…
Where Are We Headed Short-term: More Challenges Than Opportunities Challenges Near-term lower oil price environment 2015 E&P capital budgets reduced for some oil companies Customer focus on project cost reduction Opportunities…
Rystad Energys Global Liquids Cost Curve Offshore shelf developments are well- positioned on the global cost curve Paragon mainly serves NOCs and smaller Independents who generally have different strategic drivers as…
Conclusion www.paragonoffshore.com 23
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…
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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3Q14 Adjusted Net Income (Non-GAAP) to Net Income (GAAP) (In thousands, except per share amounts) (Unaudited) The following tables sets forth the reconciliation of adjusted net income (non-GAAP) to net income: Three Months Ended…
3Q14 As Adjusted Measures (Non-GAAP) to As Reported Measures (GAAP) PARAGON OFFSHORE PLC RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (cont'd) (In thousands, except operating statistics) (Unaudited) As Reported Rigs…
3Q14 As Reported and As Adjusted Operational Information www.paragonoffshore.com 30
30 September 2014 Summary Balance Sheet Assets (in thousands) Cash 81,908 Total Current Assets 643,565 PPE, Net 2,033,635 Other Assets 103,092 Total Assets 2,780,292 Liabilities and Equity Total Current Liabilities…
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