Citi Global Energy & Utilities Conference May 12, 2015 Mark W. Smith Vice President Chief Accounting Officer & Controller Atwood Oceanics 1
Atwood Oceanics Investment Thesis Modern, high quality rig fleet 6 UDW floaters and 3 high-specification jackups delivered 2011-2016 Bifurcation favors young fleet and supports financial sustainability Industry-leading operations…
Modern, High Quality Fleet - 4.5 billion Investment in Expanding our High Specification Rig Fleet 2015 EBITDA: Approximately 77%1 derived from UDW floaters and Atwood Mako high specification jackups Atwood Manta Atwood…
Modern, High Specification Fleet A- Class Typical 5th Atwood Advantage, Achiever, Specification Drillship Gen Admiral, and Archer Floater Max Water Depth (Ft) 12,000 10,000 Max Drilling Depth (Ft) 40,000 35,000 Variable Deckload (mt)…
Modern, High Quality Fleet - Revenue-weighted Age of Fleet 'Revenue Weighted Age' of Fleet DO RIG ESV RDC NE PGN NE (ex PGN) ATW 35 30 Fleet Age (Years) 25 20 15 10 5 0 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13…
Industry-Leading Operations Performance and Financial Returns - Achieving Top-Tier Execution Value Drivers Revenue Cost Project Key Enablers Efficiency Control Management - Centralized maintenance and technical support 2011 -…
Industry-Leading Operations Performance and Financial Returns - Net Income Margin trailing 8 quarters 35% 32% 30% 28% 27% 25% 20% 20% Peer Group Average: 17% 20% 15% 15% 15% 13% 11% 10% 6% 5% 0% (2) (3) (1) Source:…
Industry-Leading Operations Performance and Financial Returns - Return on Capital Employed 20% 15% 13% 10% 10% 10% 8% 9% 8% 8% 7% 7% 6% 7% 6% 5% 5% 6% 5% 5% 5% 3% 3% 2% 0% RIG PACD ORIG DO RDC NE *SDRL VTG ESV ATW 2015…
Earnings Visibility, Predictability and Built-in Growth - Steady Revenue and Earnings Growth: 2008 - 2014 Revenue Net Income Millions Millions 1,600 500 1,174 400 1,200 341 300 272 787 257 800 651 215 200 527 400…
Revenue and EBITDA Visibility and Balance Sheet Strength Millions 1,200 Revenue backlog of 2.0 billion Contracted Revenue 1 billion in remaining total 1,000 1,074 capital expenditures as of May Contracted EBITDA 1, 2015 800…
Potential for Improving Supply/Demand Balance Similar to the great crew change, recognize the likelihood for the great rig change out Impairments totaling almost 9 billion since July 2014 Rig retirements are accelerating 61…
Why 70 Brent Could Stimulate Demand Recovery Floater rig dayrates approaching 50% reduction from peak Service costs also in decline 15 25% reductions in costs depending of the type of service being provided E&P companies shedding…
Managing Through the Downturn Must deliver high-quality drilling services Increase focus on client engagement Consider more creative contracting structures Delay newbuild drillships until market improves Reduce costs without…
Summary 16
Atwood Investment Thesis Young, High-Quality Fleet Backlog and Cash Flow Visibility Strong Balance Sheet with Significant Liquidity Revenue and Net Income Growth Operational Excellence and Cost Control Lead to Best-in-Class…
Thank You Atwood Achiever Naming Ceremony May 30, 2014 www.atwd.com www.atwd.com 18
Loading...
