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INVESTOR PRESENTATION – Rowan Companies plc

Rowan Companies plc · Mar 1, 2014 · 37 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. INVESTOR PRESENTATION – Rowan Companies plc – slide 1
    Execution Year Investor Presentation March, 2014
  2. 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. 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. 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. 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. INVESTOR PRESENTATION – Rowan Companies plc – slide 6
    Strong Backlog Growth And Diversified Customer Base As of 02/20/2014 Growing Backlog Distributed By Geography GOM 2% Egypt Trinidad 1% SEA 3% 5.0 Bn 5% UK 6% 22% Norway 2.2 Bn 1.5 Bn 1.2 Bn 21% Middle 40% East 2010 2011…
  7. 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. INVESTOR PRESENTATION – Rowan Companies plc – slide 8
    Rowan Achieves Higher Jack-up Day Rates And Utilization Comparison of Current Jack-up Day Rates: Comparison of Jack-up Marketed Utilization (2) Rowan vs. Peers (000s) 2003 2013: Rowan vs. Peers 100 300 280 80 250 200 60 181…
  9. INVESTOR PRESENTATION – Rowan Companies plc – slide 9
    Global Jack-up Fleet Utilization Is 89%, Marketed 95% Fleet Total 513 Rigs North Sea 100% 45 Rigs Mediterranean 89% Middle East US GOM 18 Rigs 90% 59% 145 Rigs 59 Rigs Southeast Asia Mexico 95% 89% 74 Rigs C&S America 53…
  10. INVESTOR PRESENTATION – Rowan Companies plc – slide 10
    Only 177 Competitive Jack-ups Less Than 25 Years Old 516 600 38 Cold Total Stacked / 56 Non- Jack-ups OOS competitive 422 500 Countries Competitive Jack-ups 400 300 200 58% Older Than 100 25 Years 0 Total Supply CS /…
  11. 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. 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. 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 26 293 300 250 of jack-ups 40+ years 200 JACK-UPS JACK-UPS OVER OVER 40+ 40+ YEARS 150 YEARS TODAY IN 10 YEARS…
  14. INVESTOR PRESENTATION – Rowan Companies plc – slide 14
    Newbuild Jack-ups Needed To Replace Aging Fleet 310 311 90 80 70 60 50 JACK-UPS JACK-UPS 40 OVER 25 IN LATEST 30 YEARS CYCLE 20 10 0 Jack-ups by Year Built 172 JACK-UPS DELIVERED Includes data supplied by…
  15. INVESTOR PRESENTATION – Rowan Companies plc – slide 15
    39 Newbuild Jack-ups Are High-Spec 300IC+ Newbuilds Under Construction: 133 Total 60 59 Only 39 of the 133 units under construction are 50 rated as high-spec 41 40 33 48 21% of the high-spec 30 26 newbuilds are contracted 20…
  16. INVESTOR PRESENTATION – Rowan Companies plc – slide 16
    High-Spec Rates Have Increased Through Newbuild Cycle 400 250,000 Average Earned Day Rate 300 200,000 150,000 200 187 100,000 100 50,000 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011…
  17. INVESTOR PRESENTATION – Rowan Companies plc – slide 17
    Rowan Is Confident About 2014 Jack-up Fleet Rollovers Currently, 16 of 30 Rowan jack-ups are scheduled to rollover in 2014 (1) 10 of the 16 jack-ups are high-spec rigs, and demand for high-spec equipment continues to be strong…
  18. 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. INVESTOR PRESENTATION – Rowan Companies plc – slide 19
    Rowan UDW Construction Program Progressing Delivered first UDW rig, Rowan Renaissance, in January 2014 Despite equipment delivery delays, still targeting on rate April 2014 UDW manpower ramp up progressing as planned…
  20. 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. INVESTOR PRESENTATION – Rowan Companies plc – slide 21
    Worldwide Drillship Utilization Is 96% Total Fleet 96 Rigs North Sea 100% 2 Rigs Middle East Far East 100% 100% USA 1 Rig 3 Rigs 95% 22 Rigs Southeast Asia 67% C&S America 6 Rigs Indian Ocean 96% 100% 28 Rigs 11 Rigs…
  22. INVESTOR PRESENTATION – Rowan Companies plc – slide 22
    Few Newbuild Drillships Match Rowan Specs 10,000+ Drillships 69 Total drillships are under construction 30 58% are contracted 25 23 The Rowan Relentless 20 11 17 16 will be delivered in 15 1 March 2015, and few 13 drillships…
  23. INVESTOR PRESENTATION – Rowan Companies plc – slide 23
    Rowans Drillship Specs Unmatched In The Industry % of Drillships Dual BOP 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% RDC ATW DO NE RIG PACD ESV SDRL ORIG RDC ATW ORIG DO NE PACD SDRL RIG ESV UDW Drillships 4 4 9 5 8 8 15…
  24. INVESTOR PRESENTATION – Rowan Companies plc – slide 24
    Floater Market Rapidly Bifurcating Worldwide Utilization by Water Depth 100 % 90 80 70 60…
  25. 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. INVESTOR PRESENTATION – Rowan Companies plc – slide 26
    Rowan Guarded Against Older Equipment Re-pricing Risk Number of Floaters Rolling Off Contract in 2014 and 2015 45 40 35 30 25 20 15 10 5 0 RDC ATW PACD SDRL ESV NE DO RIG Rowans newer, higher capable floater…
  27. INVESTOR PRESENTATION – Rowan Companies plc – slide 27
    Rowan Drillships Drive Sector Leading EPS Growth FactSet estimates as of 03/19/2014 250% Estimated Earnings Growth 200% Expect further EPS growth 153% 139% 150% in 2016+ when all four drillships operate 100% 77%…
  28. INVESTOR PRESENTATION – Rowan Companies plc – slide 28
    Earnings Growth Not Reflected In 2015 Multiples As As of March of April18, 12,2014 2012 Aggregate Value Price Aggregate to Value Price to Share Share Price to Earnings Price to Earnings to EBITDA Bookto EBITDA Book Price…
  29. INVESTOR PRESENTATION – Rowan Companies plc – slide 29
    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% 1.37% 1.32% 9% 9% 8% 0.80% 0.74% 6% 5% Rigs are on contract and…
  30. INVESTOR PRESENTATION – Rowan Companies plc – slide 30
    Rowan Newbuild Drillship Program Fully Financed Rowan Newbuild Capex With Four Drillships (1) 1,727 MM 455 MM 2014 2015 Investment Grade Balance Sheet (Baa3/BBB-) Projected Projected (in millions) 12/31/2013 12/31/2014 In…
  31. INVESTOR PRESENTATION – Rowan Companies plc – slide 31
    Rowan is One Team built around great equipment, great people, and a shared set of values and purpose. 32
  32. INVESTOR PRESENTATION – Rowan Companies plc – slide 32
    Appendix 33
  33. INVESTOR PRESENTATION – Rowan Companies plc – slide 33
    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…
  34. INVESTOR PRESENTATION – Rowan Companies plc – slide 34
    2013 Operating Cost Components 9% 3% 3% 4% Labor & Fringes Employee-related * 52% R&M 18% Insurance Rig moves Rebillables 11% All other ** * Employee-related costs include training, catering and crew transportation 35 **…
  35. INVESTOR PRESENTATION – Rowan Companies plc – slide 35
    Current Rowan Avg. Regional Offshore Rig Operating Costs (000s per day) Region Jack-ups Gulf of Mexico Low Mid 50s Egypt Low - Mid 60s Middle East Low 50s Low 70s U.K. North Sea Low Mid 80s Norway North Sea Low - Mid 160s…
  36. INVESTOR PRESENTATION – Rowan Companies plc – slide 36
    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…
  37. INVESTOR PRESENTATION – Rowan Companies plc – slide 37
    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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