Seadrill Howard Weil 42nd Annual Energy Conference CFO - Rune Magnus Lundetrae New Orleans, March 2014
Seadrill Limited Overview 20 Most modern fleet of all the major offshore drillers 16 (1) Diverse asset base of 69 units 34 drillships & semi-submersibles 12 (11 Under Construction) US Billions 32 jack-up rigs (9 Under…
Establishing Vehicles to Offer Exposure to Key Themes 4
Demonstrated Access to Capital Markets West Sirius and West Leo - US465 million in equity raised Seadrill - Cash proceeds of US356 million to Seadrill Limited Partners Dropdowns West Auriga - US400 million in equity raised - Cash…
Key Investment Highlights 6
Key Investment Highlights Global Operational Footprint Modern Fleet with Exposure to Premium Segments Significant Contracted Backlog Providing Dividend Visibility Innovative Capital Structure and Funding Strategy…
Global Operational Footprint North Atlantic 7 units North Atlantic Americas - 4 HE Semis 12 units London - 2 HE Jack-ups - 1 Drillship - 2 Drillships - 5 Semis - 5 jack-ups Gulf of Mexico Middle East Asia Pacific Brazil…
Strategic Focus on Premium Asset Classes One of the largest Offshore Drillers with a Modern Fleet and Exposure to Premium Segments Ultra-Deepwater Units Average Floater Age % Ultra-Deepwater of Total Floaters % of Total Floaters…
Floaters US15.4 Billion Contract Backlog 2013 2014 2015 2016 2017 Unit Customer 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q West Saturn - Newbuild West Jupiter - Newbuild West Carina - Newbuild West Draco - Newbuild West…
Jack-ups - US4.2 Billion Contract Backlog 2013 2014 2015 2016 Unit Customer 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Contracted HE Jack-ups West Epsilon Statoil US286,000 West Elara Statoil US360,000 03.2017 Uncontracted West…
Financial Flexibility Feb 2014 Actual 2015 Illustrative MLP MLP Term Loan B 3% 12% 11% Term Loan B 11% Unsecured 22% Secured 55% Secured 64% Unsecured 22% Capex Per Year 2013-2014 Financing Summary 4,500 4,000…
Dividend Growth Continues to be a Priority while maintaining a Growth Profile Key objective to grow quarterly dividends Quarterly cash dividend raised from 95 cents to 98 cents per share in Q4 Increase reflects improved free cash…
Upstream Market Outlook Market Outlook 14
Increased Service Intensity 25 700 Number of Rigs Contracted Million Barrels per Day 24 600 23 500 22 400 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total Offshore Production Total Offshore Rigs More Rigs…
Recent Discoveries to Become Produced Volumes Discovered resources 1980 to 2013 (Billion boe) 140 120 100 80 60 40 20 - 1980 1985 1990 1995 2000 2005 2013 Shelf Deep Water Ultra deepwater Resources discovered and produced…
Ultra-Deepwater Production Growth Accelerating Global liquids production, by Global offshore production land and water depth by water depth 1960 - 2040 Million bbl/d 2012-2030 Thousand boe/d Replacement CAGR = 1.3% 80000…
Near Term Outlook 1 2014 Projects Pushed to 2015 Block 32 Total Angola Mad Dog 2 BP Gulf of Mexico Stampede Hess Gulf of Mexico Chevron Indonesia Chevron Indonesia Bonga 2 rigs - Nigeria 1 X-axis: total liquids…
Drilling Market Outlook 19
Global Rig Supply & Demand Imbalance Favors Contractors Significant Newbuilds Required to Bridge Expected Demand Gap 500 450 400 165 350 300 64 50 250 455 200 340 150 276 100 50 0 Current Floater Fleet Newbuilds 2014-2016…
Bifurcation in Deepwater is a Reality Customers Demand Better Performance and Safety of New Equipment Newbuild water depth Operating water depth 4500 7500 Greater than 7% 7500 Less than 12% 4500 8% Greater than 4500 7500…
Robust Jack-up Fundamentals Age Development of Contracted Jack-up Fleet Jack-ups Removed from the Market of rigs of rigs 16 250 232 15 215 220 220 208 14 200 12 12 12 11 10 150 10 9 8 8 8 7 100 90 90 6 6 67 6 51 4 4 4…
Conclusion 23
Well Positioned to Weather the Storm.. World oil demand and oil price* by scenario Floater supply and demand Seadrill UDW Coverage 2014 Illustrative daily liquidity cushion West Tellus (1) (1) (2) (3) (4) (1) (1) (1) (1)…
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