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 Small-Cap Peers Revenue Profile Portfolio1 Geography1 Backlog2 228 million at March 31, 2016 Rental United Tools States 33% 31% 2016 2017+ 51% 49% International Drilling 69% 67% 1Priorfour…
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…
1 Navigate the Downturn Free Cash Flow Action Items Cash Flow and Capital Spending Capital Spending Operating Cash Flow Lower cost structure 250 250 30% reduction in headcount 226 since YE14 Both BUs & Corp 200 190 202 200…
1 Navigate the Downturn Financial Flexibility Financial Position ( in millions) 3/31/2016 Cash 108 Revolver Borrowings - 7 1/2% Sr Notes due 2020 225 6 3/4% Sr Notes due 2022 360 Stockholder's Equity 473 Capitalization 1058…
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: -61% 50 Indexed at 100 60 40 30 40 U.S. Rig Count: -71% 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…
3 Maintain U.S. Barge Business for Recovery GOM inland water market Break Even Oil Price Comparison, in /bbl remains attractive 250 Low breakeven oil price 200 Low idle rig costs 150 100 Solid historical results 2014 Gross…
4 Build Scale in Core Intl & Alaska Markets Arctic 2 1 Caspian Sea 5 3 Middle East 1 3 21 2 6 Latin America 1 2 1 2 Location and number of Parker-owned 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 40% 60% O&M service scope can be scaled to…
5 Leverage Operational Execution to Grow Strategy Execution Checklist Rental tools: Geographic and product-line extensions (organic and acquisitions) Drilling: O&M, long-term contracts for newbuilds and opportunistic acquisitions…
Summary Focus on managing cash and liquidity in downturn Favorable product/service and geographic mix relative to small-cap peers Return on capital driving strategies Leverage reputation as innovative, reliable and efficient…
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