EDC Overview Overview: EDC at a glance Investment Case EDCs Position Investment case Growth Potential Outlook Q&A Performance and positioning Growth opportunities Outlook Q&A 3
EDC Overview No.1 459 24% 3,065 Largest independent Rig fleet including Market share Thousand meters drilled Investment Case EDCs Position Growth Potential drilling company in Russia 208 onshore, onshore Russia as measured…
EDC at a glance EDC Head Office Overview Regional/Branch Office Investment Case Support Base EDCs Rig Fabrication Position Operational Areas Growth Potential TIMAN-PECHORA Outlook Q&A EASTERN Usinsk SIBERIA Kogalym WESTERN…
EDC history May 1995 November 2002 December 2006 November 2007 EDC Overview Formation of Incorporation of EDC as a Cayman Entered the offshore EDC becomes a public company; IPO on LSE Investment OAO LUKOIL-Burenie Islands company by…
EDC Russias Onshore Market by Meters Drilled (mln) Total meters drilled onshore Overview Investment Russia during 1H10 were 14% 2012F Case EDCs above 1H09 levels. 2011F Position Growth As per REnergyCo, demand for 2010F…
US Oil production vs Wells drilled Russian Oil Production vs Wells drilled EDC 70 12,000 10 12,000 Overview Investment 60 Case 10,000 10,000 8 Number of New Wells ('000) Number of New wells ('000) US Production (Kbpd)…
EDC Russia Brownfield Oil Production, mln bpd Legacy output (Brownfield Overview Investment 9.30 9.22 production) in Russia has been Case EDCs 9.20 deteriorating since 3Q08; Position 9.10 Growth The industry has lost 320 kbpd in…
EDC Customers demanding hi-spec rigs Fleets must be modern Overview Investment Fleets must be heavier Case Depths/complexity increasing EDCs Position Assets are becoming scarce Fleets must be more efficient Growth Potential…
EDC Financial Highlights Operating Highlights Overview Investment Case Revenue was US 491mln in 3Q 2010 Drilling output of 3,065,111 meters for EDCs Position compared to US 334 mln in 3Q 2009 9M10 was 6% ahead y-o-y (9M09…
EDC Russia Onshore Meters Drilled (th. meters) Market Share Overview Investment Case 2010F 13,044 (9M10) 1H10 EDCs Position 2009 14,554 EDC Growth 24% Potential 2008 15,454 All others Outlook 33% 2007 14,627 Q&A 2006 12,305…
EDC CAGR of 19% in EDC Drilling Volume Performance (th. meters) Overview Investment drilling volumes 4,500 Case during EDCs EDC Forecasts 4,000 EDCs 4,000 Position 4,020 Drilled Meters (thousands) EDC Growth history as an…
EDC 9M 2010 Contracts Developments Overview Investment Case 2% In 2007 the share of our major client 1% Other EDCs 11% accounted for 77% of total meters drilled Position Growth Potential Our continuous efforts on diversifying…
EDC Expected CAPEX Expenditure EDCs Rig Fleet Overview Investment 350 1 Case 320 327 Actual EDCs 300 Position 2010F 75-125 T 160-175 T 200-225 T 250-270 T 320-400 T 450 T Growth 0 Potential 250 200m-250m 1,000 Outlook US…
EDC Primary differences between operations in Russia versus Overview Investment most operations in other parts of the world are: Case EDCs Extremely cold winter conditions combined with warm Position Growth summer temperatures […
EDC Overview Balance Sheet, as of 31-Dec-08 (US mm) Balance Sheet, as of 31-Dec-09 (US mm) Investment Case EDCs Position P, P&E 609 P, P&E 684 Equity Growth 881 1,002 Equity Potential Inventories, trade Inventories, trade…
EDC Overview Investment Case EDCs Position Growth Potential R R IR --550-- Nabors Industries LTD IM --6.3-- Nabors Industries LTD Outlook Q&A G G I --353-- Precision Drilling Corp A --4.7-- Helmrich & Payne, Inc FG --350--…
EDC Overview Acquisition of Russian land drilling/workover businesses Investment Case Asset swap between EDC & Schlumberger announced in October EDCs Position EDC active participant in Slavneft and Gazpromneft divestiture of their…
EDC Transaction with Schlumberger announced 5th October: Overview Investment Case EDC transfers NTS assets (cementing, DD/telemetry and drilling fluids) EDCs Position and crews (24 cementing, 57 DD/telemetry & 50 drilling fluids)…
EDC STATOIL Demand for jack-ups growing in all Overview Exploration Investment Caspian sectors served by EDC: Case NCOC (Exxon) EDCs Exploration In the Russian sector, Lukoil has made Position CMOC (Shell) several discoveries and has…
EDC Iraq opportunities Overview Investment Case Iraq, holder of the worlds third-largest oil EDCs Position reserves, aims to increase crude Growth Potential production to 6 mln barrels a day by 2015 Outlook Q&A Licenses…
EDC Onshore drilling Overview Investment The Companys current forecast for full-year drilling output is approx. 4 million meters Case EDCs Drilling volumes for non-Lukoil customers are expected to increase in aggregate, Position…
EDC Overview Continue to invest in expanding our fleet, implementing state-of-the-art technology Investment and enhancing service quality; Case Increase market share Targeting acquisition of one or more in-house drilling companies;…
EDC Forward calendar Overview Investment Case BofA Merrill Lynch Russia & CIS Conference November 15-18, 2010 (London, New York) EDCs Position Goldman Sachs EEMEA Conference Nov. 29- Dec 1 (London) Growth Potential UBS…
EDC Overview Investment Case EDCs Position Growth Potential Outlook Q&A 27
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West Siberia Eastern Siberia An incremental barrel brings in US 47.2/bbl to An incremental barrel brings in US 18.5/bbl the budget at US 70/bbl oil price at current to the budget at US 70/bbl oil price at tax levels current tax…
250 Est. Rigs Added 200 Projected Demand Numbr of Rigs Built 150 Russias onshore rig fleet has suffered from a long 100 period of underinvestment 50 0 1987 1991 1992 1996 1997 2000 2001 2005…
2007 2008 2009 1H 2009 1H 2010 Audited Audited Audited Unaudited Unaudited Av. Exchange Rate RUB/US 25.6 24.9 31.7 33.1 30.1 Total Revenue 1,492,189 2,101,779 1,382,203 673,188 862,013 Costs and Other Deductions Operating Expenses…
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