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Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A.

Pacific Drilling S.A. · Sep 29, 2015 · 25 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. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 1
    Deutsche Bank Leveraged Finance Conference Scottsdale, Arizona September 28-30, 2015
  2. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 2
    Topics 1. Macro Oil & Deepwater Picture Oil Supply & Demand Deepwater Cost Curve Improvements Deepwater Rig Supply & Demand 2. Pacific Drilling Performance and Initiatives Operational Excellence Cost Management Financial…
  3. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 3
    Over 20 Million Barrels a Day of New Supply OIL SUPPLY & Needed by 2020 DEMAND Oil Supply Demand Balance Forecast through 20201 100 95 90 85 Million Barrels per Day 80 75 70 65 60 2011 2012 2013 2014…
  4. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 4
    Demand Forecasts Have Increased to Above 2014 OIL SUPPLY & Estimates DEMAND Change in World Oil Demand Forecast from Previous2 Year-Over-Year Change in World Oil Demand Forecast2 mb/d Change vs. t-6 Mo. mb/d Change vs. t-12 Mo.…
  5. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 5
    OIL SUPPLY & OPEC Spare Capacity is at Historic Lows DEMAND OPEC Spare Capacity3 (mmb/d) OPEC Spare Capacity3 (% of Global Supply) 12 Oil markets 20% Oil markets at 58mb/d 18% at 58mb/d 10 16% 8 14% 12% 6 10% Oil markets 8% Oil…
  6. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 6
    Production Forecasts Have a History of Disappointing, OIL SUPPLY & DEMAND Primarily Due to Above-Ground Factors Companies reported production (bars) vs previous guidance4 (lines) (mb/d) Countries reported production vs target4…
  7. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 7
    Sharp Rebound in Shale Drilling Activity Needed OIL SUPPLY & to Resume Annual Increases in Production DEMAND Resuming 1 mb/d shale production growth requires a stabilized decline rate, continued efficiency gains and a rapidly inflecting…
  8. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 8
    Deepwater Resources Will Have to Fill the Supply- OIL SUPPLY & Demand Gap DEMAND Long lead time for DW projects require investment years before production Growth in LNG market should intensify need for DW drilling Projected Call on…
  9. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 9
    DW COST Offshore Project Rework is Lowering Breakevens IMPROVEMENTS Offshore Projects Seeing Notable Reduction in Breakeven by 15-20% After Cost Savings6 /bbl /bbl Likely viable based on futures curve Design Improvements Cost…
  10. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 10
    RIG SUPPLY & Key Deepwater Demand Drivers by 2020 DEMAND Emerging Future Demand: Mexico IOCs are expected to ramp up activity in Mexico over the next few years following current energy reform efforts Focus Returns to Reserve…
  11. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 11
    RIG SUPPLY & The Industry Needs to Remove Excess Capacity DEMAND 8 Contracted vs Available Rigs by Water Depth8 12
  12. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 12
    Floater Rig Demand Could Overtake UDW Rig RIG SUPPLY & Supply by 2017 with Appropriate Attrition DEMAND 8 Contracted vs Available Rigs by Water Depth8 Recovery Timeframe 13
  13. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 13
    High-Spec UDW Drillships Are Best Positioned for RIG SUPPLY & Majority of Work DEMAND 72% of the market is temperate and globally competitive for international drilling contractors; 94% of high-spec floaters operate in less than 7,500…
  14. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 14
    PACDs 100% High-spec Fleet Well Positioned for RIG SUPPLY & DEMAND Future Market Opportunities Percentage of fleet composition by rig capability and type9 8% 20% 17% 8% 38% 44% 47% 63% 33% 54% 88% 15% 100% 12% 16% 85% 8%…
  15. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 15
    Succeeding in a Tough Market, Positioned to Take Advantage of a Future Recovery Pacific Drilling distinguished by operational excellence and cost management Operational excellence more important than ever: expect market to be very tough…
  16. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 16
    Revenue Efficiency Illustrates High Quality Client OPERATIONAL Service Delivery EXCELLENCE Clients want rigs that deliver Post-shakedown fleet Already 9 wells in 2015 delivered ahead revenue efficiency10 of client plan and budget…
  17. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 17
    100m of Run-rate Savings Delivered to-date, with COST MANAGEMENT a Target of 150m of Annualized Savings Sources of savings Labor and Maintenance Operations Miscellaneous personnel costs expenses expenses expenses Travel Engineering…
  18. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 18
    Smart Stacking Results in Idle Rig Costs of…
  19. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 19
    Continuing to Deliver Industry-Leading EBITDA FINANCIAL Margin with Only 5 Rigs on Contract STRENGTH Range of adjusted EBITDA/revenue for offshore drillers11,12 65% 60% 55% 50% 45% 40% 35% 30% 25% 3Q 2013 4Q 2013 1Q 2014…
  20. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 20
    Projected Positive EBITDA Through 2017 Even FINANCIAL with No Additional Contracts STRENGTH Contract status as of September 27, 2015 2015 2016 2017 Pacific Bora Chevron Nigeria, 586k/d Existing contract provisions 2 year…
  21. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 21
    Ongoing Initiatives to Further Strengthen Financial FINANCIAL Position STRENGTH Status of Pacific Zonda delivery currently under discussion with Samsung Finalizing negotiations with agent banks for post-2015 debt covenant…
  22. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 22
    Pacific Drilling Well Positioned to Meet the Worlds Deepwater Oil Needs Oil demand forecast to exceed supply plus excess storage by 2018 Other sources of oil beyond deepwater cannot fill the entire gap Deepwater project costs…
  23. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 23
    Investor Contact Pacific Drilling John Boots VP Finance & Treasurer 8-10 Avenue de la Gare L-1610 Luxembourg Luxembourg Phone: +352 26-84-57-81 Email: Investorpacificdrilling.com www.pacificdrilling.com 24
  24. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 24
    US Shale Sweet Spots Are Clearly Demarcated; OIL SUPPLY & DEMAND Outside Those, Productivity Deteriorates In the low rig count environment, operators have focused on the core sweet spots in their portfolios, reaching high…
  25. Deutsche Bank Leveraged Finance Conference – Pacific Drilling S.A. – slide 25
    DW COST More Potential to Reduce Deepwater Project Cost IMPROVEMENTS Deflation in 65% of total project cost not yet realized due to complexity, long lead times and long term contracts Deepwater Total Project Costs(1) Deepwater…

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