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GHS 100 Energy Conference – Hercules Offshore, Inc.

Hercules Offshore, Inc. · Jun 25, 2014 · 29 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 1
    World Class GHS 100 Energy Conference June 24-25, 2014
  2. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 2
    World Class Overview
  3. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 3
    A Global Leader in Shallow Water Services Overview Worldwide Operations Global leader in jackup drilling and liftboat services. Marketed fleet consists of: 27 jackup rigs - one of the largest worldwide fleets 23 liftboats -…
  4. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 4
    Five-Year Contract with Maersk Oil Five-Year contract with Maersk Oil UK in Culzean Field Culzean Field High pressure, high temperature (HPHT) gas field discovered in 2008 One of the largest UK discoveries in recent years, it could…
  5. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 5
    Enhanced Newbuild Jackup for Maersk Oil Contract Newbuild Enhanced JU-2000E Turnkey yard cost of 236 million with total delivered cost of approximately 270 million 10/10/80 financing from shipyard Rig design customized to meet…
  6. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 6
    Strategic Attractiveness of Maersk Contract (Part I) High-grade rig fleet International rig fleet will consist of three ultra high-specification newbuild jackups by 2016, compared to zero at the beginning of 2013 Advancing Companys…
  7. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 7
    Strategic Attractiveness of Maersk Contract (Part II) Geographic diversity Entering North Sea under a five-year drilling contract Establishes North Sea shorebase which can scale up as additional assets enter region Improves revenue…
  8. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 8
    Focus on Risk Management FCPA investigation No near-term and concluded with no laddered maturities penalties or findings All unsecured debt of wrongdoing Strong liquidity Safety performance exceeds industry 600 million…
  9. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 9
    Revenue Backlog Total Revenue Backlog Revenue Backlog 1.2 billion 1,250 1,000 Maersk Contracted Backlog (MM) 750 500 250 0 2010 2011 2012 2013 Current * Backlog as of October 2010, October 2011, October…
  10. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 10
    World Class Business Outlook
  11. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 11
    Domestic Offshore Segment Overview Global recession and Macondo U.S. GOM Supply/Demand of Marketed Jackups created extreme conditions in 2009 and 2010 100 90 Near the trough (April 2011), 80 Hercules acquired main competitor,…
  12. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 12
    Current U.S. GOM Jackup Supply vs. Demand U.S. GOM Jackup Supply and Demand as of June 18, 2014 80 86% Industry Utilization of 57 Number of Rigs 60 Marketed Rigs 36 36 40 31 (21) 20 0 0 Current Less: Cold Marketed…
  13. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 13
    Domestic Offshore Average Dayrate Quarterly Average Revenue per Day Domestic Offshore 120,000 100,000 80,000 60,000 40,000 20,000 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Source: Company filings 13 World…
  14. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 14
    Central GOM Lease Sale 231 Central GOM Lease Sale Comparison Central GOM Lease Sales 231 - High Bidders (000s) Mar-2013 Mar-2014 1 McMoran 8,850 2 EPL 8,155 Lease Sale 227 231 3 Castex 7,879 4 GulfSlope Energy 5,822 Blocks…
  15. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 15
    Recent Fixtures in U.S. GOM vs. International Markets U.S. GOM Mexico West Africa Middle East SE Asia Ocean King GSP Fortuna Trident VIII High Island II Trident 16 Fixtures (1973; 300 IC) (1984; 300 IC) (1981; 300 IC) (1979; 300…
  16. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 16
    International Jackup Market Snapshot International jackup rig demand International Jackup Market growth of 10% (CAGR) over past three years Worldwide ex. U.S. GOM Jackup Supply / Demand 500 Total Supply Key international markets…
  17. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 17
    Hercules Triumph and Resilience Contract Status Hercules Triumph: Working in India base dayrate in the 214k - 216k range Received 13 million in mobilization fees Contract term of approximately 9 months Hercules Resilience:…
  18. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 18
    Long-Term Middle East Contract Extensions Five-year contract extensions on the Hercules 261 and Hercules 262 Total revenue backlog of approximately 465 million Extensions are priced more than 50% above current dayrates New…
  19. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 19
    International Offshore Drilling Outlook FY 2014E FY 2015E Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Newbuild Tbn SE Asia Delivery Q2 2016; Five Year Contract 224-226k commencing in Q4 2016 Hercules Triumph SE Asia 214-216k (1) Hercules Resilience…
  20. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 20
    International Liftboats Largest liftboat provider in West Africa Activity levels expected to be volatile throughout 2014 Long-term demand growth, tempered by competition creep Established presence in Middle East Robust demand…
  21. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 21
    World Class Conclusion
  22. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 22
    Investment Highlights Stable pricing in U.S. GOM jackup rig market, with expectation of demand improvement post hurricane season Strategic benefits from five-year newbuild contract with Maersk Oil Confidence in long-term market…
  23. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 23
    APPENDIX 23 World Class
  24. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 24
    Total Debt Summary Description Amount Coupon Maturity First Call Date (MM) Rate Senior Unsecured Notes 200 10 1/4% Apr2019 Apr2015 107 11/16% Senior Unsecured Notes 400 8 3/4% Jul2021 Jul2017 104 3/8% Senior Unsecured Notes 300 7 1/2%…
  25. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 25
    Domestic Offshore Marketed Rig Data Domestic Offshore Fleet Status as of 06/19/14 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Hercules 120 120' - MC, TD GOM Chevron 81-83 195…
  26. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 26
    International Offshore Marketed Rig Data International Offshore Fleet Status as of 06/19/14 Contract Est. Duration (1) Rig Name Rig Type Location Customer / Status Dayrate (000s) Days Date Singapore Under Construction 04/20/16…
  27. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 27
    Historical International Liftboats Fleet Status First Quarter 2014 International Liftboat Fleet Data Leg Length/ Actively Revenue Per Liftboat Class Total Number Marketed Day Per Operating (1) (2) (3) (Feet) of Liftboats Liftboats…
  28. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 28
    Crude Oil Driven Market in U.S. GOM Shelf Oil and condensates account for a growing Relationship between Oil/Gas Price to Production Mix percentage of U.S. GOM Shelf production 7.5 40% % Liquids Production in U.S. GOM Shelf 7.0…
  29. GHS 100 Energy Conference – Hercules Offshore, Inc. – slide 29
    World Class

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