Evercore ISI Oilfield Tour, Growth Company 1x1 Forum & E&P Investor Event March 8, 2016
Strategic Focus Be the premier supplier of rental tools Operational execution and specialized drilling services in select U.S. and international markets Reduce customers operating risks and operating costs Manage downturn and…
Balanced Profile Relative to SmallCap Peers Revenue Profile Portfolio1 Geography1 Backlog2 291 million at December 31, 2015 United Rental States Tools 2017+ 33% 35% 35% International Drilling 67% 2016 65% 65% 12015…
Rental Tools Overview Operating Strengths A leading supplier in U.S. land, U.S. offshore and international markets Strong growth in up cycles, resilient operating margins in down cycles A solid international platform with major…
Drilling Overview Operating Strengths Highly capable fleet to meet challenging drilling requirements O&M contracts leverage drilling experience and expertise Building scale in large and growing international markets Market share…
Current Strategic Focus 1 Successfully navigate the downturn Focus on cash flow Financial flexibility 2 Build on rental tools strength Maintain market leadership of U.S. rentals Further improve operating performance of international…
1 Navigate the Downturn Free Cash Flow Action Items Cash Flow and Capital Spending Capital Spending Operating Cash Flow Lower cost structure 250 250 25% reduction in headcount 226 Both BUs & Corp Deeper cuts in most affected BUs…
1 Navigate the Downturn Financial Flexibility Financial Position ( in millions) 12/31/2015 12/31/2014 Cash 134 108 Revolver Borrowings 7 1/2% Sr Notes due 2020 225 225 6 3/4% Sr Notes due 2022 360 360 Term loan due 2017 30…
2 U.S. Rentals Maintain Market Leadership U.S. Rig Count vs. Rental Tools Gulf of Mexico Revenue (millions) 100 70 PKD U.S. Rental Tools 60 80 Revenue: 50% 50 Indexed at 100 60 40 U.S. Rig Count: 60% 40 30 20 20…
2 Intl Rentals Further Improve Performance Revenue vs. Gross Margin Action Items Variance: 2014 vs. 2015 Revenue Change Gross Margin Change 0 Inserted new management (1.7) 5 Consolidated and closed under 10 performing locations…
3 Maintain U.S. Barge Business for Recovery Break Even Oil Price Comparison, in /bbl GOM inland water market remains attractive 250 Low breakeven oil price 200 Low idle rig costs 150 2,250/day 70% lower vs. YE14 100 50…
4 Build Scale in Core Intl & Alaska Markets Arctic 2 1 Caspian Sea 5 3 Middle East 1 3 22 2 6 Latin America 1 2 1 2 Location and number of Parkerowned rigs 1 Location and number of O&M operations Core PKD…
4 Expand O&M Business Model Drilling Revenues by Service Type 1,2 Generally high profile, complex O&M + customer projects requiring specific Project drilling equipment Services 36% O&M service scope can be scaled to 64%…
5 Leverage Operational Execution to Grow Strategy Execution Checklist Rental tools: Geographic and productline extensions (organic and acquisitions) Drilling: O&M, longterm contracts for newbuilds and opportunistic acquisitions…
Summary Focus on managing cash and liquidity in downturn Favorable product/service and geographic mix relative to smallcap peers Return on capital driving strategies Leverage reputation as innovative, reliable and efficient…
Loading...
