World Class UBS Global Oil & Gas Conference May 19 22 , 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 - largest…
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 Turn-key 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 (Part I) High-grade rig fleet International rig fleet will consist of three ultra high-specification newbuild jackups by 2016, compared to zero at the beginning of 2013 Advancing Companys…
Strategic Attractiveness of Maersk Contract (Part II) Geographic diversity Entering North Sea under a five year drilling contract Establishes North Sea shorebase which can scale up as additional assets enter region Improves revenue…
Revenue Backlog Total Revenue Backlog 1,600 Revenue Backlog 1.4 billion 1,400 Contracted Backlog ( millions) 1,200 Maersk 1,000 800 600 400 200 0 2010 2011 2012 2013 Current * Backlog as of October 2010,…
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 120 and 2010 100 Near the trough (April 2011), Hercules acquired main competitor, 80…
Current U.S. GOM Jackup Supply vs. Demand U.S. GOM Jackup Supply and Demand as of May 19, 2014 80 86% Industry Utilization Number of Rigs 58 60 of Marketed Rigs 37 37 40 32 (21) 20 0 0 Current Less: Cold Marketed…
Domestic Offshore Backlog Company Average Days Backlog per Marketed Rig U.S. GOM 250 225 200 175 Average of Days 150 125 100 75 50 25 0 Source: Company Fleet Status Report 12 World Class
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 Source: Company filings 13 World…
Central GOM Lease Sale 231 Central GOM Lease Sales 231 - High Bidders Central GOM Lease Sale Comparison (000s) 1 McMoran 8,850 Lease Sale 227 231 2 EPL 8,155 March 2013 March 2014 3 Castex 7,879 4 GulfSlope Energy 5,822 5 LLOG…
Recent Fixtures in U.S. GOM vs. International Markets U.S. GOM Mexico West Africa Middle East SE Asia Ensco 86 GSP Fortuna Trident VIII High Island II Trident 16 Fixtures (1981; 250 IC) (1984; 300 IC) (1981; 300 IC) (1979; 300 IC)…
International Jackup Market Snapshot International jackup rig demand International Jackup Supply/Demand growth of 10% (CAGR) over past Worldwide ex. US GOM Jackup Supply / Demand three years 500 Total Supply Demand growth driven…
Inaugural Contracts on Hercules Triumph and Resilience Hercules Triumph: Initial contract in India base dayrate in the 214k - 216k range, plus 13 million in mobilization fees Contract term of approximately 6 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 at over 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 Q2 2016 Delivery; Five Year Contract 224-226k commencing in Q4 2016 Hercules Triumph SE Asia 214-216k (1) Hercules Resilience…
International Liftboats Largest liftboat provider in West Africa Long term demand growth, tempered by competition creep Acquisition of Bull Ray expands high end market opportunities Established presence in Middle East Robust…
World Class Conclusion
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 better than industry 600 million…
Investment Highlights U.S. GOM jackup rig market remains healthy with firm pricing expectation Strategic benefits from five year newbuild contract with Maersk Oil Confidence in long term market outlook for Hercules Triumph and…
Domestic Offshore Marketed Rig Data Domestic Offshore Fleet Status as of 05/20/14 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Hercules 120 120' - MC, TD GOM Chevron 81-83 225…
International Offshore Marketed Rig Data International Offshore Fleet Status as of 05/20/14 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Singapore Under Construction 04/20/16…
International Liftboats Fleet Status April 2014 International Liftboat Fleet Status Leg Length/ Actively Revenue Per Liftboat Class Total Number Marketed Day Per Operating (1) (2) (3) (Feet) of Liftboats Liftboats Liftboat Days…
Crude Oil Driven Market in U.S. GOM Shelf Oil and condensates account for a Relationship between Oil/Gas Price to Production Mix growing percentage of U.S. GOM Shelf production 7.5 40% 7.0 6.5 % Liquids Production in US GOM…
Loading...
