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NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited

Seadrill Limited · Nov 16, 2011 · 34 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. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 1
    Bank of America CFO Esa Ikaheimonen November 16, 2011
  2. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 2
    Contents Company profile Market outlook Rig fleet Financial gearing Value creation Strategy 6th gen. semi-submersible rig West Pegasus 3
  3. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 3
    Company profile Largest offshore driller based on Enterprise Value 2nd largest ultra-deepwater fleet Largest and most modern jack-up and tender rig fleet 2Q/11 EBITDA annualized US2.3 billion Contract backlog US13.9 billion…
  4. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 4
    Seadrill growth story Step II 111 bbl 40 bbl Growth Performance Scale benefits 5
  5. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 5
    Newbuild orders, acquisitions and disposals Ultra-deepwater (5 rigs, 3bn worth of investment) 3 ultra-deepwater drillships at Samsung US600m per unit ordered 2 Seadragon ultra-deepwater units US600m per unit acquired Shallow…
  6. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 6
    Quality assets built at quality yards 33 Rigs Delivered & Acquired 17 Rigs Under Construction 3 Drillships 3 Drillships 3 x Samsung: Q308, Q408, Q210 3 x Samsung: Q113, Q213, Q313 8 Semi-submersibles 2 Semi-submersibles 2 x…
  7. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 7
    Leading player in our markets Largest modern fleet in our industry 8
  8. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 8
    Worldwide operations Americas North Atlantic 10 units 6 units - 3 Semis Gulf of Mexico - 2 Jack-ups - 2 Semis - 1 Drillship South America - 3 Semis - 1 Drillship - 3 Jack-ups - 1 Semi-tender Africa-Middle Asia Pacific…
  9. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 9
    Seadrill business approach Strengthening of regional presence for performance and growth 10
  10. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 10
    Market outlook and trends Sound oil price environment 160 Brent Spot Price 140 120 Strong growth in E&P spending US per barrel 100 80 60 Trend towards more challenging 40 20 and complex resources continues…
  11. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 11
    Major deepwater regions Deepwater Discoveries Discovered reserves in 2010, by water depth Strong combination of exploration success and new areas 12 Source: DnB NOR Markets, PCF Energy, Pareto, Woodmac, OGX
  12. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 12
    Ultra-deepwater market development UDW FLEET WILL GROW TO 165 UNITS BY 2014 UDW FIXTURES US GoM INCREASINGLY ABSORBUING THE PREMIUM ASSETS UDW CONTRACT COVERAGE AND RIG AVAILABILITY Contract Status & Expected Demand 2005-2013:…
  13. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 13
    Ultra-deepwater daily rates development UDW dayrates reflect tighter market 14 Source: Morgan Stanley July 27, 2011, North America Oil Services, Drilling & Equipment Offshore Drilling Playbook, ODS Petrodata
  14. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 14
    Recent Seadrill ultra-deepwater contracts Rig: West Hercules West Capricorn West Leo Dayrate US505,000 US487,500 US510-561,000 Contract term 4+1 years 5+2 years 1 year Rig type Semi Semi Semi Area of operation Norway US GoM…
  15. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 15
    US9.5 billion contract backlog - Floaters Staggered contract portfolio offers flexibility 16
  16. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 16
    Jack-up rig market - 2011 versus 2001 North Sea: 34 - 42 US GoM: 151 - 77 rigs Mexican GoM: 8 - 32 rigs ME: 67 - 119 rigs Asia: 63 - 134 rigs West Africa: 23 - 34 rigs South America: 12 - 11 rigs Strong migration of…
  17. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 17
    Jack-up market development JACK- JACK-UP FLEET EXPANSION JACK- JACK-UP FIXTURES YTD AVERAGE DAILY RATES JACK- JACK-UPS AVERAGE UTILIZATION RATES JACK- JACK-UPS 100 300,000 95 250,000 90 85 200,000 80 Utilisation…
  18. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 18
    US2.6 billion contract backlog - Jack-ups Strong interest in premium rigs continues 19
  19. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 19
    Tender rig market - 2011 versus 2001 West Africa: 8 - 5 rigs Asia: 15 - 27 rigs South America: 0 - 2 rigs Market for tender rigs are expanding to the Americas 20 Source: ODS Petrodata
  20. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 20
    US1.8 billion contract backlog Tender rigs Long-term visibility strong EBITDA margins 21
  21. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 21
    US13.9 bn contract backlog Quality customers . superb visibility 22
  22. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 22
    US13.9 bn revenue backlog units Average term Average dayrate Current market rate Floaters 19 2.4Y US527,000 US500,000+ HE Jack-up rigs 3 4.4Y US340,000 US360,000 Jack-up rigs 18 0.8Y US147,000 US135,000 Semi-tenders 8 1.8Y…
  23. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 23
    Rig investment economics UDW floaters Jack-ups Tender rigs Dayrate US500,000 US145,000 US170,000 Opex incl. G&A US170,000 US60,000 US60,000 Tax (of revenues) 3.5% 3.5% 3.5% 5Y cash-flow US526 million US133 million US175…
  24. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 24
    EBITDA* development 10% % 52 G R CA 25 * EBITDA earnings before interest, tax, depreciation and amortization
  25. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 25
    Net interest bearing debt and dividend Rigs re-contracted at latest market dayrate UDW floaters 500 BE Jack-ups 135 Semi-tenders 170 Tender barges 115 Debt refinanced at similar terms No conversion has been assumed for…
  26. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 26
    Net interest bearing debt in deepwater unit equivalents Relative gearing significantly reduced per unit Assumptions: 75 cent quarterly dividend, UDW dayrates US500, jack-up dayrates US135 and tender rig dayrates US115-170 27
  27. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 27
    Leverage peer group Active use of secured leverage provide superior equity return 28 Source: Bloomberg, DnBNOR Markets, Moodys and Standard & Poor ratings
  28. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 28
    Value creation and dividends Consistently outperforming peers top dividend yield globally 29
  29. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 29
    Seadrill is uniquely positioned While the other major drillers are spending cash on maintaining and replacing their aging fleet Seadrill are indentifying and selectively growing its already modern fleet at attractive rig…
  30. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 30
    Asset portfolio Core fleet 50 units built after Y2000 10 built before Y2000 17 Ultra-Deepwater Units + 1 Mid-water semi 1 Mid-water Semi 20 High Specification Jack-ups 2 Jack-ups 13 Tender Rigs 7 Tender Rigs…
  31. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 31
    Ultra-deepwater market UDW FLEET WILL GROW TO 165 UNITS BY 2014 UDW FIXTURES US GoM INCREASINGLY ABSORBUING THE PREMIUM ASSETS UDW CONTRACT COVERAGE AND RIG AVAILABILITY 140 100% 100% 100% 92% 90% 120 74% 80% 100 70%…
  32. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 32
    Ultra-deepwater market development US GoM is increasingly absorbing the premium assets UDW FIXTURES Strong increase in contracting activity 33 Source: SEB Enskilda
  33. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 33
    Ultra-deepwater demand Contract Status & Expected Demand 2005-2013: Ultra Deepwater Drilling Units (7,500feet) - Worldwide 160 140 120 100 80 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Existing…
  34. NOVEMBER 2011 INVESTOR PRESENTATION – Seadrill Limited – slide 34
    Jack-up market Re-activation of stacked jack-up rigs No. of stacked rigs No. of contracted rigs Marketed utilization jack-up rigs % 200 400 100 180 360 90 160 320 140 280 80 120 240 70 100 200 60 80 160 M 6 07…

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