Sharp Decline in Oil Prices 130 Brent Crude (/bbl) 120 110 100 90 80 70 60 50 40 30 Source: Thomson One; Brent Crude prices for 31 December 2013 through 26 June 2015 4
What Are We Doing About It 5
Enscos Proactive Fleet Management 2Q14 Moved five floaters to held for sale to proactively reduce expenses; one later sold for scrap value 3Q14 Sold four jackups for more than 200 million 4Q14 Classified additional 4 rigs as…
Proactive Steps to Address Market Downturn Reduce offshore discretionary compensation and onshore support costs 9% unit labor cost decrease for offshore workers; full run rate beginning 2Q15 15% Reduction in Force for onshore…
1Q15 Highlights Strong operational, safety and financial performance 99.6% jackup operational utilization record TRIR of 0.34 revenues and margins increased year over year disciplined expense management 1 in customer…
Current Market Floaters Jackups Contracted 229 331 Active Stacked/Other 39 67 Total 268 398 Fleet % Contracted 85% 83% 17 by SETE 62 by Under Construction 57 Brasil 110 Speculators 12 by SETE 5 by On Order / Planned 17…
Newbuild Floater Order Book 74 Total 16% 23% 12 17 Contracted SETE Brasil, Under Construction 28 12 Uncontracted, SETE Brasil, Under On Order 16% Construction 38% 5 Uncontracted, On Order 7% Source: IHS-ODS Petrodata…
Newbuild Floater Delivery Schedule 35 Under SETE Brasil by Shipyard Constr. On Order Total 30 Estaleiro Atlantico Sul 4 3 7 4 Estaleiro Jurong Aracruz 4 3 7 BrasFELS, Angra dos Reis 5 1 6 25 Estaleiro Enseada do Paraguacu 2 4 6…
Floater Supply Cumulative of rigs rolling off contract 30 years old: 22 57 71 78 47 57 74 45 32 19 43 39 37 35 31 37 37 Assumes all 32 rigs On Order 34 or partially completed including SETE Brasil rigs are 189 201 210…
Newbuild Jackup Order Book 7% 119 Total 8 Contracted, Established Zero rigs have been Drillers contracted by Speculators. 40 62 34% Uncontracted, Uncontracted, 52% Established Speculators Drillers 9 On Order, All…
Newbuild Jackup Delivery Schedule Speculator Newbuilds Under 60 by Shipyard Constr. On Order Total China China Merchants Heavy Industry 15 15 50 Shanghai Waigaoqiao Shipbuilding Yantai CIMC Raffles 7 5 1 8 5 Other 24 2 26…
Jackup Supply Cumulative of rigs rolling off contract 30 years old: 58 98 119 140 110 159 173 73 Assumes all 60 77 30 18 rigs On Order 110 19 20 or partially 121 17 completed including rigs 20 built by 22 Speculators…
Newbuild Cancellations and Deferrals Floaters Reports suggest more than half of the 29 rigs in SETE Brasil program may be cancelled Atwood delays 2 drillships with 2015 expected deliveries by 18 months each Ocean Rig delays 2…
Why Ensco 19
High Quality Fleet 63 Rig Fleet 9 11 3 40 ULTRA & DEEP DYNAMICALLY POSITIONED MOORED PREMIUM WATER DRILLSHIPS SEMISUBMERSIBLES SEMISUBMERSIBLES JACKUPS Note: Includes rigs under construction. Excludes managed rigs and rigs…
Uptime = Net Inc. Margin = Customer Satisfaction Net Income Margin 30.0% 29.6% 19.1% 18.1% 17.7% 15.0% ESV SDRL DO NE RIG RDC Source: Thomson One; sum of trailing eight quarters of net income divided by sum of…
Global Platform Europe & Mediterranean Semi 1 U.S. Gulf of Mexico Jackups 11 Ships 3 Semis 6 Jackups 7 Middle East Jackups 11 Africa Ships 3 Jackups 1 Asia Pacific Ships 1 Semi 3 Brazil Jackups 7 Semis 4 Under Construction…
Contracted Revenue Backlog Diversification 29% 29% 24% 30% Premium National Semis Jackups Independents Oil Companies 10% Majors Drillships Asia Pacific 46% 42% North & South 21% 13% Europe & America Med Brazil 15%…
Safety, Health & Environment Total Recordable Record 1Q15 safety Incident Rate performance as measured by TRIR 1.2 1.0 Leading-edge safety 0.8 management systems 0.6 Major competitive 0.4 advantage; especially 0.2 versus…
Credit Ratings BBB+ BBB+ BBB- Investment BBB- Grade BB+ Not Rated ESV DO NE RDC RIG SDRL Source: Bloomberg composite credit ratings as of 24 April 2015 26
Debt Maturity Profile millions Upsized Revolving Credit Facility 3,000 to 2.25B in Sep. 2014 2,700 2,400 2,100 1,800 2,250 1,500 1,500 1,200 1,025 900 900 700 No significant debt 625 600 maturities for four 500…
Contracted Revenue Backlog 8.4 Billion Total billions 2.8 2.7 1.6 1.3 2Q15 - 4Q15 2016 2017 2018+ Note: Contracted revenue backlog as of 31 March 2015 28
Capital Expenditures billions Note: Final rig enhancement and sustaining project capital expenditure budgets for 2016 1.7B and 2017 TBD once budgets are completed. Zero capital expenditures for newbuild construction in 2017.…
Summary Leader in customer satisfaction five consecutive years Highest net income margin among major competitors Best ever total recordable incident rate: 2014 and 1Q15 High-quality fleet of floaters and jackups o 4 year average…
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