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Execution Year Investor Presentation – Rowan Companies plc

Rowan Companies plc · May 1, 2014 · 38 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. Execution Year Investor Presentation – Rowan Companies plc – slide 1
    Execution Year Investor Presentation May, 2014
  2. Execution Year Investor Presentation – Rowan Companies plc – slide 2
    Rowans Strategic Transitions And Achievements June 2011 June 2011 September 2011 Sold manufacturing Initiated 4 rig, Sold Land business business for 3 bn UDW for 510 mm 1.1 bn in cash drillship expansion in cash December 2011…
  3. Execution Year Investor Presentation – Rowan Companies plc – slide 3
    Following A Clear Strategic Path And Focused On: Cost Capital Execution Effectiveness Allocation Successful UDW entry Reduced off rig costs Reinstating quarterly dividend Reduced jack-up Improved shipyard Speculative rig out of…
  4. Execution Year Investor Presentation – Rowan Companies plc – slide 4
    Rowan Is Reinstating A Quarterly Dividend Initiating a 0.10 per share dividend in Q2 2014 Confident in the earnings growth expected from Rowans well positioned jack-up fleet and ultra-deepwater entry Expect to be able to sustain…
  5. Execution Year Investor Presentation – Rowan Companies plc – slide 5
    Rowans Fleet Is Geographically Diversified 4 Ultra-Deepwater Drillships (1) 19 High-spec Jack-ups 8 Premium Jack-ups 3 Commodity Jack-ups with Skid-base Capability (2) 6 / North Sea 7 / US GOM 10 / Middle East…
  6. Execution Year Investor Presentation – Rowan Companies plc – slide 6
    Strong Backlog Growth And Diversified Customer Base As of 04/23/2014 Growing Backlog Distributed By Geography Morrocco GOM 1% 1% Trinidad Egypt 1% 5.0 Bn SEA 3% 5% UK 5% 22% Norway 2.2 Bn 1.5 Bn 1.2 Bn 24% Middle 40% East…
  7. Execution Year Investor Presentation – Rowan Companies plc – slide 7
    Rowan is the Leader in High-Spec Jack-ups Number of High- Spec Jack-ups 19 20 18 16 14 12 Rowan High- 10 Spec Jack-ups 8 6 4 2 0 Current By YE 2017 8 Includes data supplied by ODS-Petrodata, Inc;…
  8. Execution Year Investor Presentation – Rowan Companies plc – slide 8
    Rowan Achieves Higher Jack-up Day Rates and Utilization Comparison of Current Comparison of Jack-up Marketed Utilization(2) Jack-up Earned Day Rates: 2004 2014 YTD: Rowan vs. Peers (1) Rowan vs. Peers (1) (000s) 100 300 280 80…
  9. Execution Year Investor Presentation – Rowan Companies plc – slide 9
    Global Jack-up Fleet Utilization Is 89%, Marketed 95% Fleet Total 520 Rigs North Sea 100% 47 Rigs Mediterranean 94% Middle East US GOM 18 Rigs 90% 55% 146 Rigs 58 Rigs Southeast Asia Mexico 94% 93% 70 Rigs C&S America 56…
  10. Execution Year Investor Presentation – Rowan Companies plc – slide 10
    Only 182 Competitive Jack-ups Less Than 25 Years Old 520 600 35 Cold Total Stacked / 56 Non- Jack-ups OOS competitive 429 500 Countries Competitive Jack-ups 400 300 200 58% Older Than 100 25 Years 0 Total Supply CS /…
  11. Execution Year Investor Presentation – Rowan Companies plc – slide 11
    Jack-up Market Bifurcation Continues in Improving Market Worldwide Utilization By Rig Class 100 % 80 60 40 20 IS, MS,…
  12. Execution Year Investor Presentation – Rowan Companies plc – slide 12
    Whats Driving Bifurcation In The Jack-up Markets Operators need greater rig capabilities to drill challenging wellbore designs Deep shelf gas Long reach horizontals HPHT Large pipe programs/heavy string weights IOCs and NOCs are…
  13. Execution Year Investor Presentation – Rowan Companies plc – slide 13
    A Wave Of Jack-up Retirements Could Be Coming World jack-up rig population over 40 years old is growing 26 292 300 250 of jack-ups 40+ years 200 JACK-UPS JACK-UPS 40+ YEARS 40+ YEARS 150 TODAY IN 10 YEARS 100 50…
  14. Execution Year Investor Presentation – Rowan Companies plc – slide 14
    Newbuild Jack-ups Needed To Replace Aging Fleet 308 322 80 70 60 50 JACK-UPS JACK-UPS 40 OVER 25 IN LATEST 30 YEARS CYCLE 20 10 0 Jack-ups by Year Built 177 JACK-UPS DELIVERED Includes data supplied by…
  15. Execution Year Investor Presentation – Rowan Companies plc – slide 15
    39 Newbuild Jack-ups are High-Spec 145 Total Newbuilds 63 11% Contracted 60 51 33% Being built by 50 established drilling contractors 40 31 59 NOCs and IOCs require 30 trained and proven 46 operational and safety 20 24…
  16. Execution Year Investor Presentation – Rowan Companies plc – slide 16
    High-Spec Rates Have Increased Through Newbuild Cycle 400 250,000 200,000 Average Earned Day Rate 300 150,000 200 198 100,000 100 50,000 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012…
  17. Execution Year Investor Presentation – Rowan Companies plc – slide 17
    Rowan Is Confident About 2014 Jack-up Fleet Rollovers Currently, 13 of 30 Rowan jack-ups are scheduled to rollover in 2014 (1) Seven of the 13 jack-ups are high-spec rigs, and demand for high-spec equipment continues to be strong…
  18. Execution Year Investor Presentation – Rowan Companies plc – slide 18
    Rowan Is Entering UDW Market With Advantages High-specification drillship design with built-in redundancies in critical systems Core team of highly experienced and respected deepwater professionals in place Contracting success…
  19. Execution Year Investor Presentation – Rowan Companies plc – slide 19
    Rowan UDW Construction Program Progressing Commenced drilling first UDW rig, Rowan Renaissance, on April 22, 2014 UDW manpower ramp up progressing as planned Construction on schedule for next three drillships: Rowan Resolute,…
  20. Execution Year Investor Presentation – Rowan Companies plc – slide 20
    3 of 4 UDW Drillships Contracted 2014 2015 1 2 3 4 Rowan Rowan Rowan Rowan Renaissance Resolute Reliance Relentless Delivered Delivery Delivery Delivery January 2014 June 2014 October 2014 March 2015 3 Year Contract 3 Year…
  21. Execution Year Investor Presentation – Rowan Companies plc – slide 21
    Global Drillship Fleet Utilization is 95%, Marketed 96% Total Fleet 104 Rigs North Sea 100% 1 Rig Middle East Far East Mediterranean 100% 100% USA 0% 1 Rig 2 Rigs 96% 1 Rig 27 Rigs Southeast Asia 67% S. America 6 Rigs Indian…
  22. Execution Year Investor Presentation – Rowan Companies plc – slide 22
    Few Newbuild Drillships Match Rowan Specs 74 Total drillships are under construction 30 6 under construction are less than 10,000 25 21 21 50% contracted 20 18 6 The Rowan Relentless will 15 12 14 be delivered in March 2015,…
  23. Execution Year Investor Presentation – Rowan Companies plc – slide 23
    All of Rowans Drillships Equipped With Dual BOP Stack Market Share of UDW Drillships equipped* with 2 BOP Stacks and 1250 Hookload: 31 Units 10 8 No. of units 6 4 2 0 Includes data supplied by ODS-Petrodata, Inc;…
  24. Execution Year Investor Presentation – Rowan Companies plc – slide 24
    Floater Market Rapidly Bifurcating Worldwide Utilization by Water Depth 100 % 90 80 70 60…
  25. Execution Year Investor Presentation – Rowan Companies plc – slide 25
    UDW Day Rate Volatility Increasing 10,000+ Drillships Rowan Reliance Rowan Renaissance Rowan Resolute 700,000 619K 608K 650,000 602K (4) 600,000 (3) 550,000 (2) 500,000 (1) (1) 450,000 400,000 350,000 300,000 Rowan…
  26. Execution Year Investor Presentation – Rowan Companies plc – slide 26
    Rowan Drillships Drive Sector Leading EPS Growth FactSet estimates as of 05/08/2014 250% Expect further EPS growth Estimated Earnings Growth 200% in 2016+ when all four 136% drillships operate 124% 150% 100%…
  27. Execution Year Investor Presentation – Rowan Companies plc – slide 27
    2015 Earnings Multiple, Book Value Low As As of of May April8,12, 2014 2012 Aggregate Value Price Aggregate to Value Price to ShareShare Price to Earnings Price to Earnings to EBITDA Book to EBITDA Book PricePrice2012…
  28. Execution Year Investor Presentation – Rowan Companies plc – slide 28
    Execution And On Rate Time Top Priorities Operational Downtime Out of Service 3.27% 12% 10% 7-9% Est. 2.47% 14% 1.89% 13% 13% 1.65% 11%11% 10% 10% 10% 1.37% 1.32% 9% 1.10% 8% 0.80% 0.74% 6% 5% Rigs are on contract and…
  29. Execution Year Investor Presentation – Rowan Companies plc – slide 29
    Rowan Newbuild Drillship Program Fully Financed Rowan Newbuild Capex With Four Drillships (1) 1,292 MM 465 MM 2014 2015 Investment Grade Balance Sheet (Baa3/BBB-) Actual Projected (in millions) 03/31/2014 12/31/2014 In…
  30. Execution Year Investor Presentation – Rowan Companies plc – slide 30
    Rowan is One Team built around great equipment, great people, and a shared set of values and purpose. 31
  31. Execution Year Investor Presentation – Rowan Companies plc – slide 31
    Appendix 32
  32. Execution Year Investor Presentation – Rowan Companies plc – slide 32
    Rowan May 6, 2014 Guidance 1Q 2014 2Q 2014 FY 2014 Actual Projected Projected Jack-up Out of Service Time 13% 10% 7-9% Jack-up Operational Downtime 1.1% 2.5% 2.5% (unbillable) Drillship Operational Downtime (1) N/A N/A Slightly…
  33. Execution Year Investor Presentation – Rowan Companies plc – slide 33
    Current Rowan Avg. Regional Offshore Rig Operating Costs (000s per day) Region Jack-ups Gulf of Mexico Low Mid 50s Middle East Mid 50s Mid 70s U.K. North Sea Mid High 80s Norway North Sea Low - Mid 160s Southeast Asia Mid High…
  34. Execution Year Investor Presentation – Rowan Companies plc – slide 34
    2014 Operating Cost Components 9% 3% 1% 4% Labor & Fringes Employee-related * 53% R&M 18% Insurance Rig moves Rebillables 12% All other ** * Employee-related costs include training, catering and crew transportation 35…
  35. Execution Year Investor Presentation – Rowan Companies plc – slide 35
    Outstanding Debt is 2.8B as of March 31, 2014 March 31, 2014 Carrying Value 5% Senior Notes, due 2017 399,031 7.875% Senior Notes, due 2019 498,252 4.875% Senior Notes, due 2022 712,821 4.75% Senior Notes, due 2024 399,600 5.4%…
  36. Execution Year Investor Presentation – Rowan Companies plc – slide 36
    Rowan Drillships Built With The Operator In Mind Two seven-ram BOPs Expanded Capabilities Equipped with 12,000 ft of riser And Built-in Redundancies DP-3 compliant with retractable thrusters Five mud pumps with dual mud…
  37. Execution Year Investor Presentation – Rowan Companies plc – slide 37
    Glossary of Terms and Acronyms Blowout Preventer (BOP): An emergency shut-off device comprised of a series, or stack, of valves that shut the wellbore in the event that hydrocarbons enter the wellbore and pressure containment is…
  38. Execution Year Investor Presentation – Rowan Companies plc – slide 38
    Rowan Companies 2800 Post Oak Blvd. Suite 5450 Houston, TX 77056 713.621.7800 www.rowancompanies.com Investor Contact: Suzanne M. Spera Director, Investor Relations ssperarowancompanies.com 713.960.7517

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