Great White Energy Services acquisition webcast Investor Presentation Presented by Jrgen Peter Rasmussen, Christoph Bausch & Lars Bethuelsen 2 August 2011
Great White Energy Services acquisition webcast President & Chief Executive Officer Jrgen Peter Rasmussen Chief Financial Officer & Executive Vice President Christoph Bausch Senior Vice President Investor Relations Lars…
Agenda 1. Investment summary 2. Overview of Great White Energy Services 3. Market information 4. Financial information 5. A complimentary acquisition 6. Q&A session Private and Confidential 3
Investment summary Private and Confidential 4
Investment summary Transaction value: USD 742 million Employees: 805 Operational districts: 13 Headquartered: Oklahoma City Estimated annual turnover 2011: USD 400 million Estimated EBITDA 2011: USD 120 million Estimated EBITDA margin…
Overview of Great White Energy Services Private and Confidential 6
Great White Energy Services Cut through of unconventional well Horizontal & directional Pressure control Pressure pumping drilling Key to drilling horizontal wells Critical to pressure pumping Critical to stimulation of that hit…
Horizontal & directional drilling Great Whites horizontal and directional drilling equipment is designed to efficiently drill unconventional wells The companys 76 drillers plan, manage, and execute horizontal and directional drilling…
Pressure control Designed to operate under high pressures without having to delay or cease production during completion operations designed and assembled in- house to promote quality, safety and efficiency and to ensure customer…
Pressure pumping Hydraulic fracturing services used to force sand or artificial proppants down the wellbore and into the formation to enhance production rates Acidizing Services increased well productivity by injecting highly reactive…
Asset overview Coiled tubing Snubbing Directional drilling Number of units: 12 Number of units: 24 Directional drillers: 76 Average age: < 3 years Average age: < 4 years Drilling kits: 49 Average age: < 3 years Advantages:…
Market overview Private and Confidential 12
Historical market segment growth Understanding Market Activity in US Land today often requires a level of market segmentation beyond Rig Count. Depending on the product line, this typically requires well and frac stage segmentation by…
US land rig count Data Source: Smith Private and Confidential 14
Rapid increase in number of stages Data Source: Smith, Rig Data, Archer Private and Confidential 15
Financials Private and Confidential 16
Historical and projected key financials of Great White 500,000 460,000 160,000 450,000 140,000 140,000 400,000 364,400 350,000 120,000 112,590 300,000 100,000 250,000 206,700 80,000 200,000 60,000 150,000 45,929 98,600 40,000…
Detailed historical Balance sheet Great White Private and Confidential 18
Financing the deal Archer's financing for the transaction is fully guaranteed by its two largest shareholders, Seadrill Limited and Lime Rock Partners. Archer will complete a private placement for approximately 30 million shares prior to…
A complimentary acquisition Private and Confidential 20
Service and geographic overlap Services in Great Major resource plays Great Archer Archer Unconventionals White in US White Tubulars X Permian Basin X X Contract Drilling X Bakken Shale X Directional Drilling X X Marcellus Shale X…
Expanded service offering Drilling services Well services Current Archer service Engineering New service through acquisition Platform / Land drilling Well intervention Modular rigs Electric line / Slick line Directional drilling…
Our scale and reach 134 Wireline trucks 24 Coil Tubing Units 33 Offshore WL Units 23 Snubbing units 20 Nitrogen units 100,000 HHP capacity Over 8,400 employees 77 land rigs 35 offshore platforms 100+ global locations…
Investment Highlights / Summary The acquisition gives Archer an entry point into the rapidly expanding frac market in the USA The acquisition effectively double Archers US coil tubing and directional drilling capacity Great White…
Growth Strategy Organic Growth Acquisitive Growth Realizing synergies Geographical Fit-for-purpose Expansion through and offering more expansion of existing technology local, or regional services at existing technology into new…
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