UBS Global Oil and Gas Conference Austin, Texas May 24, 2011 Rob Saltiel President and CEO Positioned for Growth 1
Company Overview 3
Atwood Oceanics Profile (NYSE ticker ATW) Headquartered in Houston, Texas Founded in 1968, operating since 1970 Named one of Fortunes fastest growing companies 2007-2010 39th on Forbes 2010 best small companies list Strong safety,…
Diversified Fleet with Global Presence London ATWOOD AURORA Houston, Texas ATWOOD ADVANTAGE ATWOOD SOUTHERN CROSS RICHMOND Kuala Lumpur VICKSBURG ATWOOD BEACON ATWOOD HUNTER ATWOOD FALCON SEAHAWK ATWOOD CONDOR…
Strong Margins and Capital Returns 60% 50% ATW SDRL SDRL ATW ESV 40% DO FY 11 ESV NE PDE DO PDE EBIT 30% RIG RDC Margins RIG FY 12 NE RDC 20% 10% 0% 0% 5% 10% 15% 20% Capital Return Note: DO = Diamond…
Solid Share Price Performance 20 Year Share Price History */** 5 Year Share Price Growth * 2500% ATW 113% 2250% 2000% ATW DO 61% NE 1750% PDE RIG 51% RDC 1500% 1250% ESV 28% 1000% NE 26% 750% PDE 18% 500% 250% RDC 15%…
Operations Integrity Initiatives Example Initiatives People Technology Well control training/drills BOP enhancements Emergency management training BOP testing Competency assurance Tubular shear testing People Technology…
Atwood Growth Strategy Maximize operating and financial performance from existing fleet Renew rig fleet emphasizing high specification jackup and floating assets Ultra deepwater assets will continue as primary investment focus…
Drillers Investments in Fleet Growth As of May 23, 2011 35.0 30.0 RIG 25.0 EV (billions) 20.0 15.0 NE 10.0 DO PDE ESV RDC 5.0 ATW 0.0 0.0% 25.0% 50.0% 75.0% 100.0% % Newbuilds to EV EV = Enterprise Value Source:…
Atwoods Improving Fleet Age Profile 2011 2014 Ultra- Ultra- deepwater deepwater 0 rigs 3 Rigs Avg. 1.5 years Deepwater Deepwater 3 Rigs 3 Rigs Avg. 28 years Avg. 31 years Jackups Jackups 3 Rigs 6 Rigs Avg. 15 years Avg. 6…
Market and Contract Analysis 13
Floater Market Maturing oil basins, oil production decline rates and deepwater exploration success drive long-term demand Day rates have remained in mid-to-high 400,000s per day for ultra-deepwater as newbuild floaters continue…
Jackup Market Demand responding as oil prices stabilize above 90 per barrel All newbuilds from 2005-2009 have been contracted a 2nd build cycle has started with Atwood a first mover High-spec rig utilization stable above 90%…
Atwood Fleet Contract Status - 1.0 billion in backlog* Rig Glass/Rig Customer 2011 2012 2013 2014 Ultra-deepwater Drillship Atwood Advantage Available Available late 2013 Ultra-Deepwater Semisubmersibles Atwood Osprey Chevron 490,000…
Atwood Osprey Ultra-deepwater Semi-submersible Undergoing FinalTests in Australia Contracted to Chevron for Greater Gorgon Design and Capabilities Friede & Goldman Millennium ExD Design 12-point mooring system 8,200 ft. water depth…
Atwood Condor Ultra-deepwater DP Semi-submersible Scheduled delivery in mid-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 BOP with acoustic package 1,250 ton main load path…
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…
Industry Trend Substitution Effect 21
2015 Jackup Age Profile - Substitution Effect 74 newbuilds vs. 194 at risk working rigs over 30 years old 0-10 Years 10-20 20-30 30-35 35+ Years Years Years Years of Rigs (466) 99 25 22 176 144 % of Total 21% 5% 5% 38%…
2015 Floater Age Profile - Substitution Effect 73 newbuilds vs. 107 at risk working rigs over 30 years old 0-10 Years 10-20 20-30 30-35 35+ Years Years Years Years of Rigs (264) 64 45 18 58 79 % of Total 24% 17% 7% 22% 30%…
Financial Returns Still Acceptable Floaters 2006 2011 Change Dayrate 500 k/day 475 k/day 50 k/day Operating Expenses 120 k/day 150 k/day 30 k/day Yearly Cash Flow 119.84 MM 94.61 MM 25.23 MM Investment 650 MM 600 MM 50 MM Payback 5.4…
Financial Considerations 25
Balance Sheet Supports Future Growth Debt/Capitalization * Debt/EBITDA ** 4.4 4.2 3.6 36% 2.7 33% 2.3 31% 29% 27% 23% 24% 1.3 0.9 4% 0.3 ESV ATW RDC DO PDE NE RIG SDRL ESV DO ATW RDC NE RIG SDRL PDE Active 500…
New Debt Faciility Replaces OurTwo Previous Credit Facilities Combined Borrowing Capacity of 580 Million 750 million revolving credit agreement Matures May 2016 Balance at May 9, 2011 429 million Interest rate LIBOR + 2.5%…
Estimated CAPEX and Peak Debt Levels 2011 For the remainder of fiscal 2011, anticipate additional 180 million in capital expenditures Includes shipyard and equipment payments for all rigs under construction and project management…
Summary 29
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…
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