Goldman Sachs Global Energy Conference January 8-9, 2019 Presented by: William Restrepo Chief Financial Officer
Forward-Looking Statements This presentation discusses certain forward-looking statements including new rig technology, rig margin improvement potential, job growth opportunities, cost savings, expectations regarding the performance of…
Non-GAAP Financial Measures The above description of risks and uncertainties is by no means all-inclusive, but is designed to highlight what we believe are important factors to consider. For a discussion of these factors and other…
Current Market Environment WTI crude price weakened to 43-50 range at end of 2018 Lower 48 Commodity price drop creates uncertainty within the client base Oil price volatility could lead U.S. customers to scale back investment…
Recent Company Highlights Lower 48 End-of-year rig count at 114 Estimate 4Q daily gross margin above 9,000 International End-of-year rig count at 93 (after sale of Argentina workover rigs) 4Q daily gross margin below…
2019 Priorities Cautious Start to the New Year Continued focus on cost reductions Reduce annual combined G&A and R&E expenses by 10% Target 2019 capital spending to 400 million Management proposal to reduce quarterly dividend on…
Key Investment Highlights 1 One of the worlds largest global land drilling fleets 2 Capitalizing on global drilling rebound 3 Differentiated cyclical resilience through International 4 Modern super-spec L48 Fleet 5…
Lower 48 Direction Industry rig count grew by 27 rigs in the fourth quarter, to 1056 Super-Spec rigs fully utilized at significant premiums with strong day rates Rig upgrade candidates at attractive returns are limited in…
International Direction Rig count continues to increase, with stable pricing and limited pricing traction in certain markets Sold seven non-contributing small workover rigs in Argentina During 4Q, deployed two rigs in Colombia,…
Debt Maturity Profile - Preliminary as of 12/31/18 All figures in billions Nearest Maturity in 2020 (3) 2,500 Preliminary Debt 12/31/18 Total Debt: 3.59Bn(1) Total Liquidity: 2,000 Net Debt: 3.12Bn(1) 2.20 Billion 438 Available…
Near-Term Drivers 1 L48 Margins Project Free Cash Flow expansion throughout 2018-2019 2 MODS-400 Operations began April 1, 2018 with healthy margin and cash contribution Protects Saudi Arabia business and offers upside with…
Appendix 12
Reconciliation of Net Debt to Total Debt Net debt is computed by subtracting the sum of cash, cash equivalents, and short-term investments from total debt. This non-GAAP measure has limitations and therefore should not be used in…
Loading...
