Transocean Ltd (switzerland) · NYSE:RIG
Transocean Ltd (switzerland) — Transocean — Howard Weil 38th Annual Energy Conference 2010
24 slides from Transocean Ltd (switzerland)'s conference presentation, Mar 23, 2010
Slide 1: Your Next Generation Driller: Discoverer Clear Leader
Your Next Generation Driller Discoverer Clear Leader Steven L. Newman, President & CEO Howard Weil 38th Annual Energy Conference March 22, 2010 New Orleans, LA
Slide 2: Forward Looking Statement
Forward Looking Statement The statements described in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements which could be made
Slide 3: Key Investment Highlights
Key Investment Highlights • World’s Largest Offshore Contract Driller – Largest in all asset classes – Operate in all markets worldwide – Significant relationships across the customer spectrum – Contract revenue backlog equal to 2.5 years • Positioned to Lead – Premier position in ultra-deepwater ma
Slide 4: Strategy to Lead in Offshore Resource Development
Strategy to Lead in Offshore Resource Development • Maintain the most capable and extensive technical resources • Leverage unmatched operational expertise • Recruit, train and retain the best people • Develop a multinational organization with global reach • Focus on deepwater, harsh environments and
Slide 5: Largest Offshore Contract Driller
Largest Offshore Contract Driller Enterprise Value(1) (US$ Billions) 5 0 RIG SDRL DO NE PDE ESV Fleet Size(2) RIG NE ESV DO SDRL PDE
Slide 6: Largest Worldwide Rig Fleet
Largest Worldwide Rig Fleet(2) 140 120 100 80 60 40 20 0 (3) 7 6 (4) 6 9 6 4 3 5 6 7 RIG NE ESV DO SDRL PDE Rigs Under Construction Ultra-Deepwater Floaters Deepwater Floaters Harsh Env. Floaters Midwater Floaters Jackups
Slide 7: The Leader in Advanced Technology
The Leader in Advanced Technology (5) RIG Has Most Dynamic Positioning Experience Number of DP Rigs 5 0 RIG Seadrill Pride ENSCO Noble Delba Ocean Schahin Stena Larsen Saipem Vantage Diamond COSL Odjfell Pacific Other Total 350 rig years of DP experience Total 30 rig years of DP experience Under Con
Slide 8: Diversified Revenue Source
Diversified Revenue Source Full Year 2009 - $11.6 billion By Asset Class(6) 2% 2% 2% 26% 22% 46% By Customer 26% 42% 32% High Spec Jackups Contract Intangible Midwater ADTI & CMI Other Integrated NOC Independent
Slide 9: Strong Backlog Creates Visibility
Strong Backlog Creates Visibility Total Contract Revenue Backlog - $30.4 billion (7) (US$ Billions) 8.5 3.8 1.3 0.6 1.8 7.5 4.5 1.1 0.6 0.7 5.3 3.8 0.6 0.3 0.4 4.3 3.3 0.6 0.2 4.8 3.5 0.9 2014-22 Remaining Ultra-Deepwater Floaters Deepwater Floaters Harsh Env. Floaters Midwater Floaters Jackups
Slide 10: Substantial Financial Flexibility From Free Cash Flow Backlog
Substantial Financial Flexibility From Free Cash Flow Backlog(8) Total Free Cash Flow Backlog Exceeds Total Debt By $3.5 billion (US$ Billions) 4 3 2 1 0 2.4 0.5 1.9 3.9 3.5 1.0 2.5 4.0 3.3 1.0 2.3 3.1 1.9 1.0 0.9 2.3 2.0 2.3 2.5 2014-2019 2020-2038 Remaining Forecasted Free Cash Flow Backlog Estima
Slide 11: Expected Newbuild Capex Declines in 2010
Expected Newbuild Capex Declines in 2010 (US$ Billions) 4.0 3.0 2.0 1.0 0.0 3.8 0.5 3.3 * 1.3 0.5 0.8** *5 newbuilds accepted by customer **2 newbuilds accepted by customer & 3 newbuilds to be delivered Other Capex Newbuild Capex
Slide 12: Jackup Market Continues to be Challenging
Jackup Market Continues to be Challenging • Tendering activity and contracting has increased • Some long term opportunities available – Saudi Arabia: 4 rigs for three year terms – India: 7 rigs for three year terms – Nigeria: 4 rigs for 2 year terms • Dayrates are holding well above cash breakeven •
Slide 13: Jackup Availability in 1H2010
Jackup Availability in 1H2010(2) GSF Constellation I GSF Labrador GSF Baltic GSF Rig 124 GSF Rig 134 GSF High Island VII GSF Galveston Key DR Stewart GSF Adriatic VIII GSF Galaxy II Ron Tappmeyer Randolph Yost Trident XII Transocean Comet May-10 May-10 Apr-10 Apr-10 Mar-10 Mar-10 Mar-10 Mar-10 Mar-1
Slide 14: Midwater Market Activity Improving
Midwater Market Activity Improving • No influx of newbuilds • Increase in tendering activity in UK and moderate increase in other markets –Short term duration –Dayrates holding steady • Need continued commodity price stability to improve utilization • Deepwater moored units may be a near term threat
Slide 15: Midwater Availability in 1H2010
Midwater Availability in 1H2010(2) Actinia GSF Rig 135 Sedneth 701 GSF Aleutian Key Sedco 700 GSF Arctic III Sedco 703 C. Kirk Rhein Jr. Sedco 712 Apr-10 1 well option Apr-10 Jan-10 Stacked Stacked Stacked Stacked Stacked Stacked Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10
Slide 16: Deepwater Demand Slower to Respond
Deepwater Demand Slower to Respond Near term contracting potential: • Petrobras in Brazil –5,000 ft DP vessel inquiry open –Could contract more than one rig • Mediterranean –Short term work in the Red Sea –Long term work in Libya and Sicily • Australia –Multiple discoveries in 4,000 ft water depth
Slide 17: Deepwater Availability in 2010
Deepwater Availability in 2010(2) Sovereign Explorer Henry Goodrich Jack Bates Discoverer 534 Transocean Richardson Sedco 709 Transocean Rather Dec-10 Oct-10 Jul-10 Jul-10 Jun-10 Stacked Idle Jan-10 Apr-10 Jul-10 Oct-10
Slide 18: Ultra-Deepwater Remains Strong
Ultra-Deepwater Remains Strong • Petrobras in Brazil –7,900 ft DP requirements –Contracted one unit • West Africa has strongest demand for incremental units –Angola: Awarded one unit; one more to go –Nigeria: Open tendering for up to 7 units • Australia –Open tender with an award expected soon • Gul
Slide 19: Positive Ultra-Deepwater Outlook
Positive Ultra-Deepwater Outlook • Africa –Liberia & Sierra Leone • Fall 2009 discovery confirmed existence of active petroleum system • IOCs have licensed deepwater blocks –Ghana & Cote d’Ivoire • World-class discoveries in 2009 • 2010 plans include exploration and appraisal –Gabon • Call for bids
Slide 20: Positive Ultra-Deepwater Outlook (cont.)
Positive Ultra-Deepwater Outlook (cont.) • Black Sea – Offshore Turkey – exploration campaigns to commence early 2010 • Asia – Indonesia: Campaign about to commence – China: Substantial opportunity – Philippines: Recent discoveries • North America – Mexico: Significant long term potential – US Gulf
Slide 21: Limited Near Term UDW Availability
Limited Near Term UDW Availability(2) Deepwater Nautilus Sedco Express Deepwater Frontier Discoverer Enterprise Discoverer Deep Seas Sedco Energy Dec-11 Nov-11 Aug-11 Mar-11 Feb-11 Dec-10 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11
Slide 22: Key Investment Highlights
Key Investment Highlights • World’s Largest Offshore Contract Driller – Largest in all asset classes – Exposure to all markets worldwide – Significant relationships across the customer spectrum – Contract revenue backlog of 2.5 years • Positioned to Lead – Premier position in ultra-deepwater market
Slide 23: Your Next Generation Driller
Your Next Generation Driller Discoverer Clear Leader Steven L. Newman, President & CEO Howard Weil 38th Annual Energy Conference March 22, 2010 New Orleans, LA
Slide 24: Footnotes
Footnotes (1) Per Bloomberg. Enterprise values are calculated using share prices as of market close on March 3, 2010 and financial statement data as of the most recent reporting period-end (quarter or annual, as applicable). (2) Per Fleet Update Summaries issued March 2, 2010 and February 2, 2010, t
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