Cowen Ultimate Energy Conference December 2, 2015 www.icdrilling.com
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Overview 14 Rig Fleet: Sectors most technologically advanced fleet 12 200 Series Shaledriller rigs Two non-walking rigs scheduled for conversion to 200 Series pad-optimal status Established reputation for operational excellence and…
ICD Initiatives Postponing all new build activities until market improves Postponing commencement of second rig conversion until market improves Reduction in forward annual cash run rate costs by 3.0 million while maintaining…
Operating Efficiency Fast moving design Internal systemic processes and procedures Holistic safety management system Modular manufacturer Total Hours: Operating, Moving and Downtime 98%+ since inception 98.6% YTD…
HSE Culture Evolution 9.00 900000.0 8.00 800000.0 7.00 700000.0 6.00 600000.0 5.00 500000.0 ICD Total Recordable Incident Rates 4.00 400000.0 TRIR Year End 2014 - 1.14 Manhour Rolling 12 Month 3.00 300000.0 September 15…
Quality Customer Base and Contract Coverage ICD customers include some of the most active players in the Permian Basin Company 2015E Total Capex (MM) Devon Energy 4,250 Apache Corporation 2,200 Concho Resources 2,000 Pioneer…
Pad Optimal Rigs Per Operator Four key drilling package attributes Two key moving attributes 9
Pad Optimal Key Drilling Package Attributes 1,500 hp Bi-Fuel 7,500 psi mud system AC VFD AC is no longer a differentiating technology. It is a minimum requirement. 10
Pad Optimal Key Moving Attributes Fast conventional rig moves 4 days or less Omni-directional walking system 11
Constructing Complex Wellbores Faster 12
Does it Matter The Contract Drillers View: My mechanical/SCR rig can drill the well. The Petroleum Engineers view: Is it a gauge hole Are there doglegs Can I run casing Can I get a good cement job Is the near well bore damaged…
Does it Matter The Contract Drillers View: My skidding system is just as good as a walking system. The E&P C Suite View: We have adopted a well bore manufacturing model. Do I need leveling crews Can I walk pad to pad and eliminate a…
Walking v Skidding Case Study ICD customer contracted a Shaledriller and SCR skidding rig for pad development over a one-year period. ICD Shaledriller received 5,000 per day higher dayrate than the SCR skidding rig. At end of the…
Pad Optimal Rigs As Defined by Operators DISRUPTIVE TECHNOLOGY TO E&P & CONTRACT DRILLING INDUSTRY 1,500 hp Bi-fuel 7,500 psi mud systems AC VFD drive Omnidirectional walking system 3hrs release to spud Four day conventional…
Pad Optimal Rig Value Proposition PAD OPTIMAL RIGS PROVIDE: - Long, accurate gauge wells completable - Minimal formation damage - Fastest drilling down 6,000 ft out 6,500 ft five days - Fastest moving between wells and pads Best…
The Investor Does it Matter ICD/other providers of pad optimal omni-directional walking rigs: Pad optimal fleet utilization 90%(1) Largest provider of skidding rigs skidding fleet utilization: 49%(1) Complete North American rig…
IT MATTERS 19
ICD Financial Flexibility Financial Strategy Financial Flexibility and Liquidity Maintain conservative balance sheet: millions - Postponing all new build activity upon completion of current in-process rig conversion - Current Net…
Capital Expenditures 2015 estimated capital expenditures: - 60 million - Remaining 4th quarter capital expenditures: Conversion of non-walking rig and purchase of equipment for second conversion Purchase of additional equipment for…
ICD Value Proposition Low-cost builder compounding capital advantage Standardized fleet lower capital intensity Leader in rig replacement cycle ICD bends industry cost curve down ICD technology actively participates in Big Data…
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Delivering Value to Stakeholders Large Operators are Leading Unconventional Resource Capture ShaleDriller Offers a Major Secular Shift in Compelling Value Unconventional Proposition to E&P Development is Customers Underway…
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