Barclays CEO Energy Conference Carl Trowell CEO & President 3 September 2014 1
Offshore Drilling Revenues Revenue CAGR Global Offshore Contract Drilling Market (20032013) (03-13) 80 Jackups: Revenues Overall 19% Floaters: Revenues Overall: Revenues Floaters 22% 60 Jackups 14% Revenues (in B) 40…
Enscos Evolution Enscos growth trajectory (1987 2014) 70 60 Global expansion Global offshore drilling 50 US and Jackup focused 40 Plus presence in 30 adjacent services 20 Successful expansion into global deepwater drilling 10…
Current Market Floaters Jackups Contracted 275 371 Uncontracted 10 31 Active Warm Stacked 9 3 Fleet Cold Stacked 3 1 Total 297 406 Marketed 93% 91% Utilization Under Construction 55 93 On Order / Planned 37 30 Newbuilds…
Current Jackup Market Day rates have held up well in face of oncoming supply Healthy demand from diverse customer base North Sea and Middle East markets particularly strong NOC growth has stabilized demand Shallow water drilling…
Newbuild Jackup Order Book 11% 123 Total 13 Contracted, Established Drillers 41 69 Uncontracted, Uncontracted, 33% Established 56% Non-Established Drillers Drillers Source: IHS-ODS Petrodata as of 31 August 2014;…
Jackup Supply 40% CAGR 104 149 68 54 3% CAGR 381 404 380 352 Aug. 2014 Aug. 2015 Aug. 2016 Aug. 2017 < 35 years old = 35 years old Source: IHS-ODS Petrodata as of 31 August 2014; marketed competitive jackups are…
Current Floater Demand Brazil market undersupplied in ultra-deepwater / tender activity increasing more customers entering market following lease purchases midwater demand has declined new rig supply from Brazil has repeatedly…
Current Floater Demand Rest of World pull back in contracting, especially IOCs pressure on customers to tighten capex spending as returns on capital have declined production levels of Majors as a group below 2010 levels…
Newbuild Floater Order Book 92 Total 52 40 57% 43% Contracted Uncontracted Source: IHS-ODS Petrodata as of 31 August 2014 11
Floater Supply 20% of supply is 35+ years old 68 62 58 58 8% CAGR 290 305 267 239 Aug. 2014 Aug. 2015 Aug. 2016 Aug. 2017 < 35 years old = 35 years old Source: IHS-ODS Petrodata as of 31 August 2014; marketed…
Ensco is Well Positioned Fleet highgrading 7 newbuild rigs under construction with differentiated designs major upgrade investments last three years will benefit 2015 and beyond mooring capability to be added to two ENSCO 8500…
Ensco is Well Positioned Capex discipline total capex peaks in 2015 driven by newbuilds upgrade capex to decline sharply next year drillship option not exercised Global presence / diverse customer base operations across six…
2Q14 Highgrading Actions Fleetwide review in light of challenging floater market conditions Five floaters reclassified as held-for-sale / cold stacked quickly reduce expenses and redeploy capital mostly older, midwater floaters…
High Quality Fleet 10 11 3 46 ULTRA & DEEP DYNAMICALLY POSITIONED MOORED PREMIUM WATER DRILLSHIPS SEMISUBMERSIBLES SEMISUBMERSIBLES JACKUP RIGS Note: Includes rigs under construction or on order and excludes rigs in…
Differentiation 18
Operational Utilization Jackups Floaters 99% 98% 94% 92% 2013 1H14 2013 1H14 Note: Operational utilization for rigs in continuing operations. Operational utilization adjusts for uncontracted time and planned out of…
Safety, Health & Environment Total Recordable Leading-edge safety Incident Rate management systems 1.2 Major competitive 1.0 advantage; especially versus non-established 0.8 drillers 0.6 0.4 0.2 0.0 2008 2009 2010 2011 2012 2013…
Net Income Margin 29% 22% 21% 18% 17% 14% ESV SDRL DO RIG NE RDC Source: Thomson One; sum of trailing eight quarters of net income divided by sum of trailing eight quarters of revenue 21
Strong Financial Position 11 billion of contracted revenue backlog Baa1/BBB+ ratings from Moodys/S&P 57% Leverage Ratios 39% 38% 36% 35% 29% SDRL NE RIG RDC DO ESV Source: Bloomberg; total debt-to-total capital ratios…
Payout Ratios 132% 113% 66% 51% 49% 18% SDRL DO RIG ESV NE RDC Source: Thomson Reuters; most recent declared quarterly dividend annualized divided by 2014 earnings per share mean estimate for dividend- paying offshore…
Capital Expenditures billions 2.0B 1.7B Note: Final rig enhancement and sustaining project capital expenditure budgets for 2015 2017 TBD once budgets are completed Sustaining 0.33 * Enhancements 0.57 1.60 Newbuild 0.80…
Planned Surveys and Upgrades of Days 1,650 1,200+ -75% 900+ 400 2012 2013 2014E 2015E Floaters Jackups 26
Enscos Strengths Leader in customer satisfaction four consecutive years High quality fleet Technology advantages, e.g. ENSCO 120 Series jackups and Samsung GF 12,000 drillships Leading operating and safety record Highest net…
Summary Current floater market is challenging; supply pressure in jackup market Mid- to long-term outlook remains positive Ensco is well positioned use strengths to navigate market conditions Pursue opportunities for growth &…
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