Credit Suisse Mid Cap & Future Energy Conference September 27, 2011 Mark L. Mey Senior Vice President & CFO Positioned for Growth 1
Company Overview 3
Atwood Oceanics Profile (NYSE ticker ATW) Headquartered in Houston, Texas Founded in 1968, operating since 1970 Strong safety, reliability and performance culture Diversified international rig fleet and customer base…
Strong Margins and Capital Returns 60% 50% ATW SDRL ATW SDRL 40% ESV FY 11 RDC DO Margins ESV NE DO EBIT 30% FY 12 RIG RDC 20% RIG NE 10% 0% 0% 2% 4% 6% 8% 10% 12% 14% 16% Capital Return*…
Leading Share Price Performance 20 Year Share Price History */** 5 Year Share Price Growth * 3000% 2700% SDRL 172% ATW 2400% NE RDC ATW 94% 2100% 1800% DO 28% 1500% ESV 20% 1200% 900% RDC 22% 600% NE 17% 300% 0% RIG -14% 91 93 95…
Rig Fleet and Operations 8
Diversified Rig Fleet with Global Presence London Houston, Texas ATWOOD ADVANTAGE ATWOOD SOUTHERN CROSS RICHMOND ATWOOD AURORA Kuala Lumpur p VICKSBURG C S U G ATWOOD BEACON ATWOOD HUNTER ATWOOD FALCON SEAHAWK ATWOOD…
Ensuring Operations Integrity Example Atwood Initiatives People Technology Well control trainingg and drills BOP enhancements Emergency management training BOP testing Competency assurance Tubular shear testing People…
Delivering Performance Excellence Atwood Osprey Mill i ExD Millenium E D semisubmersible i b ibl contracted t t d tto Chevron and partners for Greater Gorgon development in Australia Construction and commissioning at Jurong…
Cost-Effective Maintenance of Rig Fleet Bubble B bbl size i denotes d t average maintenance i t capital it l expenditures as a percent of gross PP&E from 2006 2010 Fleet Maintenance CAPEX / Gross PPE 37 % of Rigs Avg 5 Yrs…
Growth Strategy 13
Executing our Growth Strategy Maximize operating and financial performance from existing fleet to generate cash flow to fund growth Revenue efficiency Cost C control Expand and renew rig fleet, emphasizing high-specification…
Driller Investments in Organic Growth As of September 23, 2011 30.0 s) prise Value (billions 25.0 RIG 20.0 15.0 NE 10.0 DO ESV Enterp 5.0 RDC ATW 0.0 0.0% 20.0% 40.0% 60.0% 80.0% % Newbuild Rigs to Enterprise…
Atwood Condor Ultra-deepwater DP Semi-submersible Scheduled delivery in June 2012 from Jurong Shipyard Design and Capabilities Friede & Goldman Millennium ExD Design Dynamically Positioned 10,000 ft. water depth capability Six-ram…
Atwood Advantage Ultra-deepwater DP-3 Drillship Scheduled delivery in 2 half of 2013 from DSME Shipyard nd Design and Capabilities 12,000 ft. water depth capability Seven-ram S BOP with ith acoustic ti package k 1,250 ton…
Newbuild High-Specification Jackups Atwood Mako, Manta and Orca Scheduled delivery in 2012 and 2013 from PPL Shipyard Design and Capabilities Pacific Class (Baker Marine) 400 design 400 ft. water depth capability 750 ton traveling…
Are We Getting Full Credit For Our Growth Story Five additional high-specification rigs being delivered through September 30, 2013 Two ultra deepwater units Three high specification jackups Estimated built-in EPS growth of 3.08…
Market Outlook and Contracts 21
Floater Market Maturing oil basins, oil production decline rates and deepwater p exploration p success drive long-term demand Day rates continue to improve and are approaching hi 500 500,000 000 per day d for f ultra- lt…
Jackup Market Demand increasing as oil prices remain above 80 per barrel All newbuilds from 2005 2005-2009 2009 cycle have been contracted a 2nd build cycle has started with Atwood a first mover High-spec rig utilization stable…
Atwood Fleet Contract Status - 1.5 billion in backlog* 2011 2012 2013 2014 Rig Class/Rig Customer Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ultra-Deepwater Drillship Atwood Advantage Available Available late 2013…
Growing Revenue and Cash Flow Backlog September 2011 Revenue Backlog 1.5 billion After-Tax Cash Flow Backlog 840 million 679 485 369 301 263 170 58 12 8 31 2011 2012 2013 2014 2015 Fiscal Year CONTRACT REVENUES CONTRACT…
Financial Considerations 26
Balance Sheet Supports Future Growth Debt/EBITDA * Debt/Capitalization * 6.0 58% 4.8 3.4 3.5 35% 32% 33% 2.8 27% 20% 21% 1.1 0.9 ATW RDC DO ESV NE RIG SDRL DO ATW RDC SDRL NE RIG ESV Active 500 million S-3…
New Credit Facility for Growth Strategy 750 million revolving credit agreement Commitment can be increased to 1.1 billion upon delivery of the Atwood Condor Matures May 2016 Balance at August g 22,, 2011 400 million Interest…
Projected Capital Expenditures and Funding* Capex Net Credit Facility Drawdowns Cash flow Net Debt / Capitalization 600 20% 18% 500 16% ation ns 14% Million bt / Capitaliza 400 12% 300 10% 8% Net Deb…
Summary 30
Atwood Oceanics Positioned for Successful Growth Excellent safety systems and operating reputation Leading financial and shareholder performance Diversified customer base and market presence Expanding high-specification rig…
Thank You Mark L. Mey mmeyatwd.com y www.atwd.com www.atwd.com Phone: 281-749-7800 32
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