2014 Johnson Rice Energy Conference October 1, 2014 Mark W. Smith VP Chief Accounting Officer & Controller Atwood Oceanics, Inc. Atwood Advantage 1
Investment Thesis 3
Atwood Oceanics Investment Thesis Modern, high quality rig fleet 6 UDW floaters and 3 high-specification jackups delivered 2011-2015 Bifurcation favors young fleet and supports financial sustainability Industry-leading operations…
Modern, High Quality Fleet - 4.5 billion Investment in Expanding our High Specification Rig Fleet 2015 EBITDA: Approximately 81%1 derived from UDW floaters and Atwood Mako high specification jackups Atwood Manta Atwood Orca…
Modern, High Quality Fleet - Bifurcation Why the New Rigs will Rule A- Class Typical 5th Atwood Advantage Specification Drillship Gen Drillship Max Water Depth (Ft) 12,000 10,000 Max Drilling Depth 40,000 35,000 (Ft) Variable…
Modern, High Quality Fleet - Revenue-weighted Age of Fleet 'Revenue Weighted Age' of Fleet DO RIG ESV RDC NE PGN NE (ex PGN) ATW 35 30 Fleet Age (Years) 25 20 15 10 5 0 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13…
Industry-Leading Operations Performance and Financial Returns - Achieving Top-Tier Execution Value Drivers Revenue Cost Project Key Enablers Efficiency Control Management - Centralized maintenance and technical support 2011 -…
Industry-Leading Operations Performance and Financial Returns - Net Income Margin trailing 8 quarters 35% 31% 30% 28% 28% 25% Peer Group Average: 15% 20% 19% 18% 18% 14% 15% 10% 7% 5% 3% 2% 0% Source: SEC Financials…
Industry-Leading Operations Performance and Financial Returns - Return on Capital Employed 20% 15% 15% 11% 11% 11% 11% 10% 10% 10% 9% 10% 10% 9% 9% 9% 8% 8% 8% 7% 7% 7% 5% 5% 0% NE RIG RDC ORIG PACD VTG DO SDRL ESV ATW…
Recent Accomplishments Atwood Advantage delivered - December 2013 Atwood Aurora: 1-year contract extension - February 2014 Expanded and extended Revolving Credit Facility - April 2014 Atwood Orca: 9-month contract extension - May…
Market Snapshot - Floater and Jackup Markets Ultra-Deepwater Deepwater High-Spec Jackups E&P focus on returns and dividends resulting DW rig fleet challenged by Day rates holding up despite in a slowdown of contract awards…
Earnings Visibility, Predictability and Built-in Growth - Revenue Backlog Analysis as of September 1, 2014 Millions By Year By Customer Type 1,600 1,400 1,400 1,200 1.0BN 1,000 1,125 0.9BN 800 600 400 1.2BN 480 200 118…
Earnings Visibility, Predictability and Built-in Growth - Steady Revenue and Earnings Growth: 2008 - 2016 Revenue Net Income Millions Millions 2,000 600 1,661 476 500 1,600 1,182 400 1,200 336 300 272 257 800 787 215 651…
Earnings Visibility, Predictability and Built-in Growth - Planned Capital Expenditures Fully Financed Millions 1.1 billion1 in remaining total 800 capital expenditures as of September 1, 2014 Approximately 1.5 billion in 600 65…
Summary 17
Atwood Investment Thesis Fleet Age and Quality Backlog and Cash Flow Visibility Strong Balance Sheet with Significant Liquidity Revenue, Net Income and Dividend Growth Operational Excellence and Cost Control Lead to Best in…
Thank You Atwood Achiever Naming Ceremony May 30, 2014 www.atwd.com www.atwd.com 19
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