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MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC

Seadrill Partners LLC · Mar 5, 2014 · 24 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. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 1
    Seadrill Partners LLC Morgan Stanley Midstream MLP & Diversified Natural Gas Corporate Access Event March 2014
  2. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 2
    Company Snapshot Hemen Holding 8 (Fredriksen Group) 5 UDW floaters Number 3 tender rigs 24.6% of rigs Seadrill Limited (NYSE: SDRL) 21.5 MM Common Units Public Unit Holders 16.5 MM Subordinated Units 22.9 MM Common Units…
  3. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 3
    Seadrill Partners Key Investment Highlights Increased production growth coming from Ultra-Deepwater prospects Strong Expectation for increase in development drilling leading to longer Industry Dynamics contract duration in the medium…
  4. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 4
    Seadrill Partners Long-Term Contract Coverage 2014 2015 2016 2017 2018 2019 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q West Vencedor US213,931 West Aquarius US540,000 US615,000 (1) West Capella…
  5. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 5
    Significant Progress Since IPO More Growth to Come 2.25 15% 12-15% increase Major Events to Date increase recommended for Tender rig T-15 acquired for US210 million since IPO Sirius / Leo Tender rig T-16 acquired for US200…
  6. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 6
    Top-Tier Distribution Growth 0.60 40 35 0.50 30 Share price (US) 0.40 25 Dividend per unit 0.30 20 15 0.20 10 0.10 5 0.00 0 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Management Dividend Share price…
  7. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 7
    Two Accretive Dropdowns West Leo West Sirius Acquired by Seadrill Operating LP (30% owned by Acquired by Seadrill Capricorn Holdings LLC (51% SDLP) owned by SDLP) Contract details: Contract details: Dayrate: 605,000 Dayrate:…
  8. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 8
    Transaction Overview Use of Proceeds (mm) Rigs to be Acquired West Leo West Sirius Total SDLP Share Implied Purchase Price 1,250 1,035 2,285 903 Bank Debt (486) (220) (706) (258) Interco Loan to OPCO (230) (230) (117) Equity Portion…
  9. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 9
    US1.8 Billion Term Loan B Refinancing Seadrill Limited (NYSE: SDRL) 21.5 MM Common Units 16.5 MM Subordinated Units Public Unit Holders 22.9 MM Common Units Term Loan B Refinances existing 37.6% 62.4% debt facilities at Seadrill…
  10. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 10
    Market Outlook 11
  11. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 11
    Near Term Outlook Global offshore production by water depth 1960 - 2040 Global E&P Investments and Free Cash Flow 80000 900 70000 800 60000 700 5 mbbl/d Thousand boe/d 600 50000 16 mbbl/d US Billion 500 40000 400…
  12. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 12
    Increased Service Intensity: More rigs working, but declining oil production 25 700 Number of Rigs Contracted Million Barrels per Day 24 600 23 500 22 400 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total…
  13. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 13
    Global Rig Supply & Demand Imbalance Favors Contractors Significant Newbuilds Required to Bridge Expected Demand Gap 500 450 400 350 187 300 62 50 250 455 200 150 318 256 100 50 0 Current Floater Newbuilds 2014- Potential…
  14. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 14
    Seadrill Partners Fleet & Growth Opportunities 15
  15. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 15
    Our Structure Facilitates Continued Growth Larger, diversified pool of jack- Long-term contracted deepwater up and deepwater rigs drilling assets Assets Term contracts with day rate Potentially long-term contracted, exposure modern…
  16. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 16
    Significant Potential Growth Going Forward Additional New Assets from Seadrill 2013 2014 2015 2016 2017 Unit Customer 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q West Saturn - Newbuild West Jupiter - Newbuild West Carina -…
  17. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 17
    Additional Growth Opportunities 1 Acquisition of Additional OPCO Ownership Interests from Seadrill Ltd. (1) - 70% of three UDW and one tender rig - 49% of two UDW rigs 2 Long-Term Contracted Jack-ups US 565,000 - 5 Jack-ups…
  18. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 18
    Summary & Outlook Significant progress made in 2013 Doubled fleet size with the acquisition of four rigs On track to grow distributions 30% since IPO in October 2012 More efficient capital structure following successful Term Loan B…
  19. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 19
    Appendix 20
  20. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 20
    Income Statement Operating income Unaudited accounts in USD millions 4Q13 3Q13 Contract revenues 282.1 262.4 Reimbursable revenues 0.3 3.0 Other revenues - 0.6 Total operating revenues 282.4 266.0 Vessel and rig operating…
  21. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 21
    Income Statement Net Income Unaudited accounts in USD millions 4Q13 3Q13 Net operating income 134.4 118.1 Financial items Interest income 2.2 0.8 Interest expense (28.7) (23.3) Gain / (Loss) on derivative financial instruments…
  22. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 22
    Balance Sheet - Assets Unaudited accounts in USD millions 4Q13 3Q13 Current assets Cash and cash equivalents 89.7 75.4 Accounts receivable, net 175.8 278.6 Mobilization revenue short term 16.6 16.6 Amount due from related…
  23. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 23
    Balance Sheet Liabilities & Members Capital / Owners Equity Unaudited accounts in USD millions 4Q13 3Q13 Current liabilities Current portion of long-term related party payable 108.3 816.4 Revolving credit facility 125.9 75.9 Trade…
  24. MORGAN STANLEY MLP CONFERENCE – Seadrill Partners LLC – slide 24
    Distributable Cash Flow Unaudited accounts in USD millions 4Q13 3Q13 EBITDA for the quarter 171.9 87.1 Less: Amortization of Mobilization Revenue and Expenses (3.3) (2.9) Adjusted EBITDA 168.6 84.2 Cash Interest Income 0.8 1.2 Cash…

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