Archer Limited · OSL:ARCH
Archer — Pareto Securities' Energy Conference 2022
18 slides from Archer's conference presentation, Sep 14, 2022
Slide 1: Pareto Securities' Energy Conference 2022
Archer Pareto Securities’ Energy Conference 2022 Dag Skindlo - CEO 14 September 2022 1
Slide 2: Disclaimer – forward looking statements
Disclaimer – forward looking statements Cautionary Statement Regarding Forward-Looking Statements In addition to historical information, this presentation contains statements relating to our future business and/or results. These statements include certain projections and business trends that are “fo
Slide 3: At a glance
At a glance Diversified operations across three core business segments2 Land Drilling 18% Platform The Well Company 2021 Drilling Adj. EBITDA 50% $93m Well Services 32% $936 million $93 million $2.5+ billion 2021 revenue Adj. EBITDA 2021 Contract backlog Resilient through-the-cycle financial perform
Slide 4: The Well Company
The Well Company Platform Drilling Well Services Land Drilling Energy Transition • Wide range of offshore drilling • High-end products and services • Drilling and workover services the • Firmly aimed at utilising and operations, engineering, and aimed at improving well entire well lifecycle expandin
Slide 5: Proven business resilience under varying and demanding market conditions
Proven business resilience under varying and demanding market conditions Robust development in revenues and EBITDA…. $m EBITDA Revenues Stable positive EBITDA and 1 000 929 936 unlevered FCF generation across 872 863 847 819 94 segments throughout the past 800 85 76 cycle 65 68 600 55 Generated cash
Slide 6: Revenue backlog equalling $250m of EBITDA
Revenue backlog equalling $250m of EBITDA High revenue visibility evidenced by solid backlog coverage Well diversified backlog across segments $m Total estimated backlog of $2.5bn with an estimated $250m of EBITDA Revenue Firm Options $1.0+bn secured so far in 2022 and $1.8bn additional backlog in c
Slide 7: Multi-year energy upcycle setting the stage for further growth
Multi-year energy upcycle setting the stage for further growth Key market fundamentals driving increased activity in core segments Commodity prices evidencing strong market fundamentals… …leading to 5x increase in FCF generation for E&P companies… Continued favourable price sentiment expected to dri
Slide 8: Market-leading position in the North Sea underpinned by stable spending outlook
Market-leading position in the North Sea underpinned by stable spending outlook… Well-placed in a predictable brown field market Archer attains high drilling market share… Platform Drilling market share (Q1 2022) Positioning ✓ Decade-long track record of global operations within Archer Others energy
Slide 9: Argentina rig activity to strengthen in Vaca Muerta and Bolivia restarting activity
Argentina rig activity to strengthen in Vaca Muerta and Bolivia restarting activity Argentina second largest spend in South America after Brazil Overall rig demand expected to grow in Vaca Muerta… Top investments in 10 South American countries during 2021-2030 Other unconventional Conventional Neuqe
Slide 10: Geothermal energy is on the rise and a key growth area
Geothermal energy is on the rise and a key growth area Accelerating growth in geothermal power Wells to be drilled by temperature group Key growth drivers of geothermal demand 50-150 °C 200-250 °C TWh # wells 150-200 °C 250+ °C Energy transition 400 800 +74% 685 705 Geothermal energy is expected to
Slide 11: Industry-leading offering on the NCS
Industry-leading offering on the NCS OneArcher model with Drilling Operation, Well Services and Partners Example FLX Archer and Schlumberger partnering with Equinor in a OneTeam approach to late life well operation Drilling operations Well Services Well Services Drill floor Wireline unit Oiltools En
Slide 12: Archer technology fuelled innovative solutions
Archer technology fuelled innovative solutions Oiltools technology roadmap Technology development setting new standards Archer’s leading technology-infused solutions • First ever company to perform well intervention at >12,375 meters, Holmenkollen utilising the ComTrac® system • The world record is
Slide 13: Proven buy-and-build strategy with further room for accreditive M&A
Proven buy-and-build strategy with further room for accreditive M&A Recent accretive acquisitions are easily integrated in Archer M&A pipeline could enabling Archer to grow and create value • A large number of oil service companies in the energy service sphere are contemplating a full exit and other
Slide 14: Clear pathway towards cementing Archer's market-leading position moving forward
Clear pathway towards cementing Archer’s market-leading position moving forward Growth strategy supported by four key priorities Expand footprint M&A Technology development Energy transition International growth within key Window of opportunity to conduct Pioneer and invest in the R&D of Grow curren
Slide 15: Key take aways
Key take aways Large energy service company with robust operational leverage, innovative technology, and I strong M&A pipeline Delivered strong growth in the North Sea – ongoing international expansion in targeted II regions III Proven track record of generating positive and resilient cash flow thro
Slide 16: Appendix
Appendix 16
Slide 17: Strong track record of world-class health and safety performance across operations
Strong track record of world-class health and safety performance across operations Committed to promoting industry-leading quality, health, safety and environment performance across all operations globally Lost time incident frequency Total recordable incident frequency High potential incidents 0.30
Slide 18: The Archer value proposition is tailored to accommodate industry differentiators
The Archer value proposition is tailored to accommodate industry differentiators Differentiating Maximising well Service and product Pioneering the energy Safety, regulatory market factors economics through integration through transition through new environment, and QHSE efficient solutions and effe