42nd Annual Howard Weil Conference March 24, 2014 Rob Saltiel President and CEO Atwood Oceanics, Inc. Atwood Advantage 1
Investment Thesis 3
Atwood Oceanics Investment Thesis Modern, high quality rig fleet 6 UDW floaters and 3 high-specification jackups delivered from 2011 Industry-leading operations performance and financial returns Superior safety, revenue efficiency,…
Modern, High Quality Fleet - 4.5 billion Investment in Expanding our High Specification Rig Fleet 2015 EBITDA: Approximately 80%1 derived from UDW floaters and Atwood Mako high specification jackups Atwood Manta Atwood Orca…
Modern, High Quality Fleet - Bifurcation Why the New Rigs will Rule A- Class Typical Specification Drillship 5th Gen Atwood Advantage Drillship Max Water Depth (Ft) 12,000 10,000 Max Drilling Depth (Ft) 40,000 35,000 Variable…
Modern, High Quality Fleet - Revenue-weighted Age of Fleet DO RIG NE ESV RDC ATW 30 25 Fleet Age (Years) 20 15 10 5 0 2010 2011 2012 2013 2014 2015 7 Source: Johnson Rice & Company, January 2014
Industry-Leading Operations Performance and Financial Returns - Achieving Top-Tier Execution Value Drivers Revenue Cost Project Key Enablers Efficiency Control Management - Centralized maintenance and technical support 2011 -…
Industry-Leading Operations Performance and Financial Returns - Safety Performance - Fiscal Year 2008-2013 Total Recordable Incident Rate Lost Time Incident Rate 1.2 0.40 0.35 1.0 1.05 0.30 0.8 0.80 0.25 0.26 0.6 0.68 0.67 0.20…
Industry-Leading Operations Performance and Financial Returns - Net Income Margin trailing 8 quarters 40% 35% 34% 30% 27% 27% 25% 24% 20% 17% 15% 13% 15% 10% 5% 0% ATW ESV SDRL DO NE RDC RIG* Source: SEC Financials…
Industry-Leading Operations Performance and Financial Returns - Return on Capital Employed 30% 25% 20% 18% 17% 15% 15% 13% 13% 11% 12% 12% 13% 11% 11% 11% 10% 10% 7% 5% 0% RDC RIG ESV NE ATW SDRL DO 2014 2015…
Industry-Leading Operations Performance and Financial Returns - Consensus Earnings Reliability Earnings revisions influence stock price performance 2014 EPS Estimate Revisions 2013 Stock Price Performance RIG ESV NE DO RDC ATW…
Market Snapshot - Floater and Jackup Markets Ultra-Deepwater Deepwater High-Spec Jackups Atwood Advantage Atwood Falcon Atwood Mako E & P project delays lead to Bifurcation effect to Continued high lack of contract awards…
Earnings Visibility, Predictability and Built-in Growth - Revenue Backlog Analysis as of March 1, 2014 Millions By Year By Customer Type 1,400 1,200 1,243 1,000 1,003 1.3BN 1.0BN 800 743 600 400 1.2BN 200 0…
Earnings Visibility, Predictability and Built-in Growth - Steady Revenue and Earnings Growth: 2008 - 2016 Revenue Net Income Millions Millions 2,000 600 570 1,788 500 1,600 385 1,265 400 1,200 300 272 257 800 787 215 651…
Earnings Visibility, Predictability and Built-in Growth - Trailing 4 Quarters EPS Growth, Indexed to Calendar Year 2010 250 ATW T4Q EPS 200 Peer T4Q EPS 150 Index 100 50 0 19 Source Johnson Rice & Company, January…
Earnings Visibility, Predictability and Built-in Growth - Planned Capital Expenditures Fully Financed Millions 1.6 billion1 in remaining total 800 capital expenditures as of March 1, 2014 Approximately 1.7 billion in 600…
Summary 21
Atwood Investment Thesis Modern, High Quality Rig Fleet Strong Balance Sheet providing Industry-Leading Financial Flexibility Margins Superior Solid Earnings and Shareholder FCF Growth Returns through the Cycle…
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