Overview of Paragon Offshore www.paragonoffshore.com 4 Business Overview Worldwide Offshore Presence Offshore contract drilling services provider operating standard specification rigs Spin-off from Noble Corporation completed 1…
Paragon?s Strategy Deliver reliable, safe, cost-efficient operations Match our assets to customers in fit for-purpose applications while maintaining industry-leading utilization Manage our costs to preserve flexibility in changing…
Significant Contract Backlog with Global Customers $ 561 $ 508 $ 99 $ 2 $292 $443 $255 $111 $ 0 $ 250 $ 500 $ 750 2014E Remaining 2015E 2016E 2017E $ in millions Jackups: 52% Floaters: 48% $2.3 Bn of Backlog As of…
Strong History of Utilization Speaks to Quality of Operations & Assets www.paragonoffshore.com 7 Source: IHS Petrodata 08.21.14 70 75 80 85 90 95 100 Paragon Rest of Industry Jackup Utilization 70 75 80 85 90 95 100…
Industry-Leading Safety and Quality Performance Customers recognize our commitment to safety and performance ? ~50% lower TRIR1 than International Association of Drilling Contractors (IADC) in 20132 ? Continued improvement and…
Key Challenges Jackup market capacity additions and potential impact on the market Some customers focusing on more challenging wells (e.g., wells requiring higher specification rigs) Petrobras rollover of current floater…
Newbuild Jackup Orders According to IHS 22 August 2014 138 16 27 95 54 29 12 0 40 80 120 160 Total Newbuilds Contracted Rigs Rigs on Order No Contract Rigs Under Construction-No Contract China Singapore Other (USA, UAE,…
Considerations for the Jackup Markets Large jackup orderbook may be cause for concern, but more nuanced analysis of the market is required. Consider: www.paragonoffshore.com 11 Newbuilds Customer Behavior Standard Fleet Will all…
Paragon?s Contract Coverage 4 August 2014 Fleet Status www.paragonoffshore.com 12 Rig Name Region DPDS3 (NRE) Brazil DPDS2 (NLS) Brazil M1162 (NRR) Arabian Gulf B301 (NJH) Mexico B391 (NJR) North Sea L1113 (NJS) Mexico M842…
Mexico Reform Likely to Continue to Provide Opportunities Mexican Energy Reform Underway ? Round 0: Pemex received 100% of 2P and 67% of Prospective Reserve requests including current shallow water areas ? Round ?0.5? expected:…
Four of Paragon?s floaters operate in the post salt Campos Basin where decline rates are estimated to exceed 10% per year Capex budget for Petrobras has increased by ~4.6% Rigs under construction in Brazil likely to be delayed and…
Disciplined Capital Allocation The Focus for Paragon Offshore www.paragonoffshore.com 16 Free Cash Flow Fleet Maintenance Fleet Growth Retirement Debt Shareholders Return to Disciplined maintenance of existing fleet Upgrades…
Acquisitions: A Balancing Act Given our fleet age profile of 35 years (~19 rebuilt), our acquisition strategy must consider both near and longer term horizons www.paragonoffshore.com 17 Near Term Longer Term Many potential…
Near Term (3Q) Financial Challenges ?Post Spin? 3Q financial report will not be representative: ? Includes the July financial results as a part of Noble (?Predecessor? financials) ? August and September financial results will be…
The Paragon ETR will be >40% ?Post-Spin? The increased effective tax rate (?ETR?) is a function of several factors: ? A recent UK tax law (adopted in July but retroactive to 1 April 2014) affects all of the offshore drillers and will…
Moderate Leverage and Strong Liquidity Provides Financial Stability and Flexibility Net Debt/EBITDA ratio of approximately 1.9x and a Debt/Capitalization of approximately of 57% based on 1st Half 2014 pro-forma results Large backlog…
Why Paragon Offshore? www.paragonoffshore.com 24 Significant Scale, Size and Expertise Low-cost Driller with Proven Record of Excellence Strong Backlog and Established Diverse Customer Base Well-Maintained ?Workhorse? Fleet of…
Management Team with More Than 180 Years of Experience in the Industry www.paragonoffshore.com 26 Randy Stilley President and CEO 38 years experience Steve Manz Senior VP and CFO 25 years experience Lee Ahlstrom Senior VP ?…
Reconciliation to EBITDA www.paragonoffshore.com 27 Predecessor Historical Paragon Offshore Pro Forma Year Ended December 31, Year Ended December 31, Six Months 2011 2012 2013 2013 6/30/2014 Net Income $104,823 $126,237 $360,305…
30 June 2014 Pro-forma Summary Balance Sheet Assets Cash $72,688 Total Current Assets $505,488 PPE, Net $2,883,729 Total Assets $3,484,679 Liabilities and Equity Total Current Liabilities $281,350 Long-term Debt $1,726,750 Other…
Jackup Overview: Rigs 15 Years and Older 323 66 257 8 249 0 50 100 150 200 250 300 350 Total Standard Specification Jackups Mat and IC Slot Rigs ILC jackups Cold stacked/ Out of Service Operating Company Number of…
Jackup Overview: ?Newer? Standard Rigs Less Than 15 Years Old Company Number of ILC Jackups 14 Years and Older Seadrill 16 COSL 16 Ensco 8 CPOE 6 Maersk Drilling 6 Aban Offshore 5 National Drilling 5 Perforadora Central 4…
Floater Overview Drillships and Semisubmersibles 15 Years and Older 144 122 27 23 26 0 20 40 60 80 100 120 140 160 180 Total Standard Specification Floaters Cold stacked/Out of Service Operating Company Drillships…
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