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 Million Barrels per Day 85 80 75 70 65 60 2011 2012 2013 2014…
OIL SUPPLY & Demand For Oil Increases Year-over-year DEMAND Current world demand forecast outpaces early Year-Over-Year Change in World Oil Demand Forecast2 2015 forecast substantially mb/d and is generally higher 2.5 than prior…
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…
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…
Even With the Supply Growth Potential, OIL SUPPLY & There Still is a Significant Supply-Demand Gap DEMAND Potential Call on Deepwater beyond Sanctioned Projects5 25 Resource development needs to start more than 3 years in 7 20…
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…
RIG SUPPLY & The Industry Needs to Remove Excess Capacity DEMAND 8 Contracted vs Available Rigs by Water Depth8 Cold Stacking/Scrapping Candidates Uncontracted Below 5th gen Uncontracted 5th gen Contracted Below 5th…
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 Early 2017 Late 2019 Uncontracted Below 5th gen…
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…
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%…
Pacific Drilling Performance 15
Succeeding in a Tough Market, PACD 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…
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…
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…
Smart Stacking Results in Idle Rig Costs of…
Continuing to Deliver Industry-Leading EBITDA FINANCIAL Margin with Only 5 Rigs on Contract STRENGTH Range of adjusted EBITDA margin for offshore drillers11,12 65% PACDs EBITDA margin of 57% in Q315 is the highest in its history 60%…
Projected Positive EBITDA Through 2017 Even FINANCIAL with No Additional Contracts STRENGTH Contract status as of October 31, 2015 2015 2016 2017 Pacific Bora Chevron Nigeria, 586k/d Existing contract provisions 2 year extension…
FINANCIAL Recent Events that Solidify Liquidity STRENGTH 2013 RCF and SSCF amendments closed on Nov. 5, 2015 Leverage ratio increased to 6.0x by 3Q16 and beyond Replaced Debt Service Coverage Ratio (DSCR) with a Net Debt/rig…
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…
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
Appendix 25
Footnotes 1. Through 2016: EIA International Petroleum and Other Liquids Production, Consumption, and Inventories, dated Sept 8 2015. Post 2016: PACD assumes 5% decline rate on supply and +1mbbls of demand per year. 2. IEA February…
EBITDA reconciliation EBITDA is defined as earnings before interest, taxes, depreciation and amortization. EBITDA does not represent and should not be considered an alternative to net income, operating income, cash flow from operations or…
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…
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(a) Deepwater…
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…
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