Pareto Securities Oil & Offshore Conference August 31, 2011 Mark L. Mey Senior Vice President and CFO 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…
Leading Share Price Performance 20 Year Share Price History */** 5 Year Share Price Growth * 3000% 2700% SDRL 149% ATW 2400% NE RDC ATW 64% 2100% 1800% DO 3% 1500% ESV -5% 1200% 900% RDC -4% 600% NE -15% 300% 0% RIG -35% 90 92 94…
Atwood Growth Strategy Maximize operating and financial performance from existing fleet to generate cash flow for growth initiative Cost Control Revenue Efficiency Expand and renew rig fleet emphasizing high specification jackup…
Drillers Investments in Organic Growth As of August 22, 2011 30.0 Enterprise Value (billions) 25.0 RIG 20.0 15.0 NE 10.0 DO ESV 5.0 RDC ATW 0.0 0.0% 20.0% 40.0% 60.0% 80.0% % Newbuild Rigs to Enterprise Value EV =…
Fleet Age and Maintenance Capital Expenditures Comparison Bubble size denotes average maintenance capital expenditures as a percent of gross PP&E from 2006 2010 Fleet Maintenance CAPEX / Gross PPE 37 % of Rigs 32 Avg 5 Yrs Avg…
Market and Contract Analysis 11
Floater Market Maturing oil basins, oil production decline rates and deepwater exploration success drive long-term demand Day rates continue to improve and are approaching 500,000 per day for ultra- deepwater as newbuild floaters…
Jackup Market Demand increasing as oil prices remain above 80 per barrel All newbuilds from 2005-2009 cycle 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* 2011 2012 2013 2014 Rig Class/Rig Customer Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ultra-Deepwater Drillship Atwood Advantage Available Available late 2013…
Are We Getting Full Credit For Our Built-in Earnings Growth Five additional high specification rigs being delivered through September 30, 2013 Two ultra deepwater units Three high specification jackups Built in EPS growth of 3.08…
Industry Trend Substitution Effect 16
Bifurcation and Why The easy oil and gas is gone exploration and production companies increasingly seek to operate in more remote international regions Targeting: deeper water environments, deeper wells, longer horizontals, more…
Jackup Rig Profile Current Jackup Status of Rigs 600 8/22/2011 1/1/2015 Age 35 70 30 500 Avg. Jackup of 74 Year 25 Status Rigs 62% Built 400 41 1 3 337 20 1989 15 Working 343 327 (22 yrs) 300 69% 15 Warm 1988…
Floater Rig Profile Current Floater Status of Rigs 400 8/22/2011 1/1/2015 35 Age 350 30 70 Avg. 300 Floater of Year 25 Status Rigs 27 157 Built 4 250 45% 1 2 20 1993 Working 248 144 (18 yrs) 200 113 46% 51% 6% 22…
Jackup Utilization Jackup Utilization by build year 110 100 90 80 Percentage 70 60 50 40 30 20 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul 2008 2008 2008 2008 2008…
Floater Utilization Floater Utilization by build year 105 100 95 Percentage 90 85 80 75 70 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul 2008 2008 2008 2008 2008…
Financial Considerations 22
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 Debt Facility Replaces Our Two Previous Credit Facilities Combined Borrowing Capacity of 580 Million 750 million revolving credit agreement Commitment can be increased to 1.1 billion upon delivery of the Atwood Condor…
Projected Capital Expenditures* 600 500 400 Millions 300 200 100 0 2011** 2012 2013 2014 2015 2016 Fiscal Year * Includes Growth and Maintenance Capex, but excludes capitalized interest ** For 4Q Fiscal Year 2011 25
Estimated CAPEX and Peak Debt Levels 2011 For the 4th quarter of fiscal 2011, anticipate additional 75 million in capital expenditures Includes shipyard and equipment payments for all rigs under construction and project management…
Summary 27
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 www.atwd.com www.atwd.com Phone: 281-749-7800 29
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