Vantage Drilling Company · OTC:VTGDF
Vantage Drilling — Pareto Securities' 2nd Offshore Drilling Conference 2012
22 slides from Vantage Drilling's conference presentation, Apr 18, 2012
Slide 1: Vantage Drilling Company
Exhibit 99.1 Vantage Drilling Company Pareto Securities’ nd 2 Offshore Drilling Conference April 18, 2012 New York, New York
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements in this presentation constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not his
Slide 3: Corporate Overview
Corporate Overview Symbol: VTG (NYSE AMEX) Location: HQ – Houston; Operations – Singapore; Marketing – Dubai Market Cap: $430 million Book Value: $700 million Enterprise Value: $1.6 billion Employees: > 1,000 Contract Backlog: $2.8 billion Owned Fleet: 4 Ultra-Premium Jackups 1 Ultra-Deepwater Drill
Slide 4: Recent Developments
Recent Developments Acquisition of 100% of Titanium Explorer (formerly known as Dragonquest) announced on March 20, 2012; deal will close simultaneously with the delivery of the Titanium Explorer in April 2012. April 2, 2012, closed a $775.0 million 11.5% Senior Notes “Tack-on” financing at on offer
Slide 5: Company Highlights
Company Highlights Premium high-specification drilling units, including four jackup rigs and three drillships Vantage’s modern rigs are capable of drilling to deeper depths and possess enhanced operational Premium Fleet efficiency and technical capabilities, resulting in higher utilization, dayrates
Slide 6: Company Highlights (Cont'd)
Company Highlights (Cont’d) Construction management arrangements for ultra-deepwater drillships, Dragonquest, and Dalian Developer on-going (Dragonquest construction contract will terminate upon the completion of the Construction acquisition in April 2012). Supervision and Management Completed signi
Slide 7: Premium Owned Fleet with a Proven Operational Track Record
Premium Owned Fleet with a Proven Operational Track Record Owned Assets Construction Management Projects Newbuild Ultra-Premium Marine Pacific Class 375 Jackups Ultra-Deepwater Drillship Emerald Driller Sapphire Driller Topaz Driller Aquamarine Driller Dalian Developer • Delivered On-Time, On- • Del
Slide 8: Business Strategy
Business Strategy • Customer demand for new high-specification units supported by: Capitalize on Customer Need for rigs well-suited for drilling through deep and complex formations and drilling horizontally Demand for High- Enhanced efficiency providing faster drilling and moving times Specification
Slide 9: Strong Customer Relationships
Strong Customer Relationships Key Customers 9
Slide 10: Worldwide Operations
Worldwide Operations Topaz Driller Contract: Total Houston Malaysia Contract: Petrobras DragonQuest Aquamarine Driller U.S. GOM Dubai Contract: Petronas Carigaili Malaysia Contract: ONGC Platinum Explorer India Contract: PTT Emerald Driller Singapore Sapphire Driller Contract: Foxtrot Thailand Ivory
Slide 11: Ultra-Premium Jackup Fleet
Ultra-Premium Jackup Fleet Increased Operational Efficiency and Improved Technical Capability: Quarterly Financial Performance • Faster drilling times $60 Revenue EBITDA • Faster moving times • Increased volumes of consumable liquids and $40 drilling fluids • Reduced boat runs and non-productive tim
Slide 12: Titanium Explorer – Preparing for Transit to U.S. GOM
Titanium Explorer – Preparing for Transit to U.S. GOM • Capable of operating in water depths up to 12,000 ft • Total vertical drilling depth of 40,000 ft • Variable deck load of 20,000 tons • Hull measurement of 781 ft long by 137 ft wide • DP3 dynamic positioning system • 1250 short ton hook load,
Slide 13: Tungsten Explorer – Under Construction
Tungsten Explorer – Under Construction • Capable of operating in water depths up to 12,000 ft • Total vertical drilling depth of 40,000 ft • Variable deck load of 20,000 tons • Hull measurement of 781 ft long by 137 ft wide • DP3 dynamic positioning system • 1250 short ton hook load, including 9000
Slide 14: Fleet Status – Average Drilling Revenue/Day
Fleet Status – Average Drilling Revenue/Day(1) Ownershi p 2011 2012 2013 Rig % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jackups Emerald Driller 100% $171 $137K $132K $130K $130K Sapphire Driller 100% $120K $120K $120K (net of taxes) Aquamarine Driller 100% $120K $124K $137K $132K (mutually agreed rates)
Slide 15: Premium Asset Advantage
Premium Asset Advantage International vs. GOM Jackup Utilization Global Jackup Utilization • Premium jackups (350’ + IC rigs) and ultra-deepwater floater have historically maintained significantly higher utilization levels, particularly during downturns in the energy industry Operators demand newer,
Slide 16: Profile of Global Jackup Fleet
Profile of Global Jackup Fleet • Capabilities and age – The current worldwide fleet is comprised mostly of older, inefficient rigs – 22% of today’s jackups are mat-supported and/or have less than 200ft of water depth capability – 68% of today’s jackups are 25 years or older – As of March 2012 a tota
Slide 17: Global Deepwater Market
Global Deepwater Market Ultra-Deepwater Rig Supply is Increasing Significantly Deepwater Exploration is a Young, Rapidly Growing Market Demand is Likely to Exceed Rig Supply Despite Newbuilds Recent fixtures >$550,000 per day Source: ODS-Petrodata, DnB NOR 17
Slide 18: Financial Overview
Financial Overview Balance Sheet ($Millions) December 31, December 31, 2010 2011 Cash and cash equivalents $ 120.4 $ 110.0 Restricted cash 29.0 7.0 Trade receivables 50.2 100.9 Inventory 19.8 24.4 Prepaid expenses and other current assets 11.5 16.9 230.9 259.3 Property and equipment, net 1,718.1 1,8
Slide 19: Debt Repayment
Debt Repayment Maturities and Debt Repayment 2,000 • No near-term maturities provides flexibility 1,500 • Excess cash flow offers opportunity; alternatively we can buy bonds in the market with 1,000 excess cash • First call option February 2013 500 - 2012 2013 2014 2015 2016 2017 Excess cash flow of
Slide 20: Significant Upside Valuation Potential
Significant Upside Valuation Potential Price to Book Value Implied Values – EV/EBITDA Today’s Historical Low Peer Avg. Peer Avg. EBITDA 6.5x 7.8x 11.6x $250 million $1.72 $2.84 $6.11 $300 million $2.84 $4.17 $8.10 $350 million $3.96 $6.35 $10.10 Key Drivers Near Term – • Achieve high productive time
Slide 21: Financial Overview
Financial Overview Historical Financial Information ($ Millions) $140.0 $124.6 $120.9 $121.3 $118.5 $120.0 $100.0 $84.9 $80.0 $68.4 $66.9 $58.3 $60.0 $49.7 $47.3 $42.8 $44.8 $36.4 $38.6 $40.0 $25.3 $24.6 $22.2 $21.3 $20.0 $16.9 $14.3 $14.2 $9.5 $6.4 $5.0 $0.0 3/31/2009 6/30/2009 9/30/2009 12/31/2009
Slide 22: Appendix
Appendix Reconciliation of Net Income (Loss) to Adjusted EBITDA ($Millions) Fiscal Quarter Ended, 6/30/2009 9/30/2009 12/31/2009 3/31/2010 6/30/2010 9/30/2010 12/31/2010 3/31/2011 6/30/2011 9/30/2011 12/31/2011 Net income (loss) $ 4.0 $ 6.8 $ (4.3) $ 6.0 $ (7.0) $ (33.6) $ (13.0) $ (18.7) $ (40.1) $
Vantage Drilling — Pareto Securities' 2nd Offshore Drilling Conference 2012 on 6ix