Barclays Capital CEO Energy-Power Conference CEO Alf C Thorkildsen September 6, 2011
Contents Company profile Developments last 12m Market outlook Rig fleet Financial gearing Value creation Strategy 6th gen. semi-submersible rig West Pegasus 3
Company profile Second 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 US12.2…
Company development last 12 months Deepwater (5 rigs, 3bn invested) 3 ultra-deepwater vessels at Samsung US600m per unit ordered 2 Seadragon ultra-deepwater units US600m per unit acquired Shallow water (added 9+3 rigs, sold 3,…
Seadrill growth story Step II 112 bbl 40 bbl Growth Performance Scale benefits 7
Quality assets built at quality yards 33 Rigs Delivered 14 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 Samsung: Q108,…
Leading player in our markets Largest modern fleet in our industry 9
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…
Seadrill business approach Strengthening of regional presence for performance and growth 11
Market outlook and trends Brent Spot Price 160 Sound oil price environment 140 120 U S p er b arrel Strong growth in E&P spending 100 80 60 Trend towards more challenging 40 and complex resources continues 20…
Major deepwater regions Deepwater Discoveries Discovered reserves in 2010, by water depth Strong combination of exploration success and new areas 13 Source: DnB NOR Markets, PCF Energy, Pareto, Woodmac, OGX
Floaters and US GoM drilling permits Significant pent-up demand to be unlocked 15
Ultra-deepwater daily rates development Dayrate US1,000 UDW dayrates reflect tighter market rates 500,000 16 Source: Morgan Stanley July 27, 2011, North America Oil Services, Drilling & Equipment Offshore Drilling Playbook
EBITDA* development 10% % 52 G R CA 22 * EBITDA earnings before interest, tax, depreciation and amortization
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…
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 24
Leverage peer group Active use of secured leverage provide superior equity return 25 Source: Bloomberg, DnBNOr Markets, Moodys and Standard & Poor ratings
Value creation and dividends Consistently outperforming peers top dividend yield globally 26
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…
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