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ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc.

Hercules Offshore, Inc. · Aug 13, 2013 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 1
    World Class Enercoms The Oil and Gas Conference 18 August 13, 2013
  2. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 2
    World Class Overview
  3. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 3
    A Global Leader in Shallow Water Services Overview Worldwide Operations Global leader in jackup drilling and liftboat services 40 jackup rigs - third largest worldwide fleet 24 liftboats - largest international fleet Operations…
  4. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 4
    Transforming the Company for the Next Chapter Recent Strategic Moves: 1. Acquisition of Discovery Offshore represents significant step toward rig fleet renewal and high-grading of rig fleet 2. Sale of Domestic Liftboats driven by…
  5. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 5
    Discovery Acquisition Rationale Fleet Renewal for Hercules Offshore Higher specification rigs with higher day rates and earning power Discovery rigs are expected to provide 30+ years of earnings capacity Newer assets are expected to…
  6. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 6
    Discovery Offshore Two Ultra High-Spec Jackups KFELS Super A Class is a high-specification design by Keppel FELS for harsh environment Designed for operations in the southern North Sea Able to operate in water depths up to 400 ft.…
  7. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 7
    Discovery Offshore Transaction Overview History of Discovery Offshore S.A. Discovery Offshore S.A., a Luxembourg-based public limited liability company, was formed in early 2011 by Hercules Offshore Discovery ordered two newbuild…
  8. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 8
    World Class Business Outlook
  9. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 9
    Domestic Offshore Segment Overview Global recession and Macondo U.S. GOM Supply/Demand of Marketed Jackups created extreme conditions in 2009 and 2010 120 Near the trough (April 2011), 100 Hercules acquired main competitor,…
  10. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 10
    U.S. GOM Supply vs. Demand U.S. GOM Jackup Supply and Demand as of August 5, 2013 80 92% Industry Utilization Number of Rigs 59 60 of Marketed Rigs 39 38 40 35 (20) (1) 20 0 Current Less: Cold Marketed Planned Jackup…
  11. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 11
    Domestic Offshore Backlog Hercules Offshore Average Backlog per Marketed Rig U.S. GOM (1) 250 225 200 175 Average of Days 150 125 100 75 50 25 0 Strong company backlog per rig near historical high…
  12. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 12
    Leading Edge Dayrates Hercules Offshore Leading Edge Dayrates U.S. GOM 125 140 115 130 105 120 Dayrate (000 per day) Dayrate (000 per day) 95 110 85 100 75 90 65 80 55 45 70 35 60 25 50 Oct11 Oct12…
  13. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 13
    Crude Oil Driven Market in U.S. GOM Shelf Oil and condensates account for a Relationship between Oil/Gas Price to Production Mix growing percentage of US GOM Shelf production 5.0 40% % Liquids Production in US GOM Shelf 4.5 2005…
  14. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 14
    Domestic Customer Base Exposure to Crude Oil Company specific U.S. Gulf of Mexico Customers U.S. GOM Liquids Mix Shelf production shows significant liquids mix Chevron 39% Crude oil from U.S. Gulf of Mexico typically priced at…
  15. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 15
    Large and Diverse Domestic Customer Base Diverse group of operators in the U.S. U.S. GOM Industry Customers Mix (1) GOM, ranging in size from mega-cap to private E&P CVX EXXI 14% 5% Top two operators account for Tana 5%…
  16. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 16
    U.S. GOM Shelf M&A Activity (1) GOM Shelf E&P Transaction Values Closing Date Buyer Seller Deal Value (mm) % Oil Dec-10 Energy XXI ExxonMobil 1,012 55% Feb-11 EPL Oil & Gas Anglo-Suisse 201 92% May-11 Tana Exploration Maritech…
  17. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 17
    Recent Fixture in U.S. GOM vs. International Markets U.S. GOM West Africa Middle East SE Asia Ensco 99 Tommy Craighead Jimmy Puckett Key Gibraltar Fixtures (250 IC) (300 IC) (300 IC) (300 IC) Dayrate 125,000 145,000 140,000…
  18. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 18
    Reactivation Matrix (1) Capital Payback Analysis (m onths to payback) Dayrate Assumption 80,000 90,000 100,000 110,000 120,000 Hercules 209 Reactivation Capital Cost 14 11.4 9.3 7.9 6.8 6.0 reactivation estimate 16 13.0…
  19. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 19
    Domestic Offshore Potential Earnings Upside (1) Incremental EBITDA Analysis ( in m illions, except dayrate) Increase in Average Dayrate 5,000 10,000 15,000 20,000 25,000 18 30 59 89 118 148 Number of Rigs Working 19 47 78…
  20. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 20
    International Offshore Resilient oil prices are supportive of International Jackup Backlog and Dayrates strong growth in capital spending 18 200 National Oil Companies have been 16 175 Backlog per International Marketed Rig…
  21. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 21
    International Jackup Markets Snapshot Current international jackup rig International Jackup Supply/Demand demand above prior peak in 2008 Worldwide ex. US GOM Jackup Supply / Demand Demand in most major international 460 markets…
  22. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 22
    Discovery Offshore Rigs Command Premium Pricing Ultra high-specification jackup segment(1) Jackup fixtures by class since 2010(2) 614 600 300,000 58 550 497 Average 500 250,000 dayrate 19 450 225 214,806 Global jackup rig…
  23. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 23
    International Offshore Drilling Outlook FY 2013E FY 2014E Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Discovery Resilience SE Asia Discovery Triumph SE Asia Hercules 267 W. Africa 108-110K 108-110K Middle Hercules 266 116-118k* 116-118k* East…
  24. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 24
    International Liftboats Largest liftboat provider in West Africa Long term demand growth, tempered by competition creep Recent acquisition of Bull Ray expands high end market opportunities Established presence in Middle East…
  25. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 25
    World Class Corporate Initiatives
  26. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 26
    History of Growth August October January June August September October November February June 2004 2004 2005 2005 2005 2005 2005 2005 2006 2006 Acquired five Acquired 22 Acquired Rig 25 Acquired Rig Acquired the Acquired Initial…
  27. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 27
    Track Record of High Return Acquisitions Asset acquisitions since 2012 ( in millions) Ocean Columbia Ben Avon Titan 2 Date Acquired March 2012 February 2013 February 2013 Seller Diamond Offshore KCA Deutag KS Energy Gross…
  28. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 28
    Gaining Global Diversification Revenue Mix by Geography (1) Figures based on LTM revenue ending March 31, 2013. (2) Pro forma for inland barge and domestic liftboat sales. International Offshore segment includes pro forma estimate…
  29. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 29
    Focusing on Attractive Asset Segments Revenue Mix by Segment (1) Figures based on LTM revenue ending March 31, 2013. (2) International Offshore segment includes pro forma estimate of Discovery (mean of Wall Street consensus…
  30. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 30
    World Class Conclusion
  31. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 31
    Investment Highlights Discovery Offshore acquisition represents significant step toward fleet renewal and high-grading of assets Sale of domestic liftboats and inland barges streamlines company operations and eliminates low…
  32. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 32
    APPENDIX 32 World Class
  33. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 33
    Total Debt Summary Description Amount Coupon Maturity First Call Date (millions) Rate Senior Secured Notes 300 7 1/8% Apr2017 Apr2014 105% Senior Unsecured Notes 300 10 1/2% Oct2017 Oct2013 105% Senior Unsecured Notes 200 10 1/4%…
  34. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 34
    Domestic Offshore Marketed Rig Data Domestic Offshore Fleet Status as of 07/18/13 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Hercules 120 120' - MC, TD GOM Chevron 64-66 166…
  35. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 35
    Domestic Offshore Marketed Rig Data (continued) Domestic Offshore Fleet Status as of 07/18/2013 (continued) Hall-Houston 57-59 - 07/18/13 Hercules 251 250' - MS, TD GOM Shipyard 10/16/13 Hall-Houston 74-76 36 11/21/13 74-76 54…
  36. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 36
    International Offshore Marketed Rig Data International Offshore Fleet Status as of 07/18/2013 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Discovery Resilience 400' - ILC, TD…
  37. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 37
    International Liftboats Fleet Status June 2013 International Liftboat Fleet Status Leg Length/ Actively Revenue Per Liftboat Class Total Number Marketed Day Per Operating (1) (2) (3) (Feet) of Liftboats Liftboats Liftboat Days…
  38. ENERCOMS THE OIL AND GAS CONFERENCE 18 – Hercules Offshore, Inc. – slide 38
    World Class

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