Vantage Drilling Company · OTC:VTGDF
Vantage Drilling — Barclays CEO Energy Conference 2012
19 slides from Vantage Drilling's conference presentation, Sep 5, 2012
Slide 1: Vantage Drilling Company
Exhibit 99.1 Vantage Drilling Company Barclays CEO Energy Conference New York, New York September 5, 2012
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: < $450 million ($1.54 per share) Book Value: < $700 million ($2.40 per share) Enterprise Value: < $2.5 billion Employees: > 1,000 Contract Backlog: $2.8 billion Owned Fleet: 4 Ult
Slide 4: Recent Developments
Recent Developments • Aquamarine Driller contract extended for an additional year at $153,400 per day, adding approximately $56 million of backlog (prior contract at $132,000). • Sapphire Driller awarded additional contracts at $165,000 per day net of taxes through the middle of 2013, adding approxi
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, dayr
Slide 6: Company Highlights (Cont'd)
Company Highlights (Cont’d) • Management team with extensive experience; average of 29 years in the drilling industry Experienced • Includes international and domestic public company experience with industry-leading peers involving Management and numerous acquisitions and debt and equity financings.
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 Specifica
Slide 9: Worldwide Operations
Worldwide Operations Topaz Driller Contract: Total Houston Malaysia Contract: Petrobras Titanium Explorer Aquamarine Driller U.S. GOM Dubai Contract: Petronas Carigaili Malaysia Contract: ONGC Platinum Explorer India Contract: PTT Singapore Sapphire Driller Emerald Driller Contract: Foxtrot Thailand
Slide 10: Strong Customer Relationships
Strong Customer Relationships Key Customers 10
Slide 11: Ultra-Premium Jackup Fleet
Ultra-Premium Jackup Fleet Increased Operational Efficiency and Quarterly Financial Performance Improved Technical Capability: • Faster drilling times • Faster moving times • Increased volumes of consumable liquids and drilling fluids • Reduced boat runs and non-productive time • Improved pipe handl
Slide 12: Fleet Status – Average Drilling Revenue/Day
Fleet Status – Average Drilling Revenue/Day (1) 2012 2013 2014 Ownership Rig % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jackups Emerald Driller 100% $130K Sapphire Driller 100% $120K (net of taxes) $165K (net) $165K (net) $175 (net) Aquamarine Driller 100% $132K $153K Topaz Driller 100% $187K (includes u
Slide 13: 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 Recent leading edge dayrates have reached GOM Rest of World <300 ft. 300 to 3
Slide 14: 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 15: 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 >$650,000 per day Source: ODS-Petrodata, DnB NOR 15
Slide 16: Financial Overview
Financial Overview Balance Sheet ($Millions) December 31, December 31, June 30, 2010 2011 2012 Cash and cash equivalents $ 120.4 $ 110.0 $ 123.7 Restricted cash 29.0 7.0 5.9 Trade receivables 50.2 100.9 78.2 Inventory 19.8 24.4 33.6 Prepaid expenses and other current assets 11.5 16.9 13.0 Long-term
Slide 17: Significant Upside Valuation Potential
Significant Upside Valuation Potential Price to Book Value Implied Values – EV/EBITDA Today’s Historical Peer Group (current) 140% Low Peer Avg. Peer Avg. EBITDA 6.5x 8.8x 11.6x $400 million $2.04 $4.91 $8.42 Peer Group (2009-2010) 190% $450 million $3.04 $6.29 $10.23 Peer Group (2005-2009) 300% $50
Slide 18: Financial Overview
Financial Overview Historical Financial Information Achieved record Revenue and ($ Millions) Adjusted EBITDA in 1st Quarter 2012 $140.0 $131.8 $124.6 $120.9 $121.3 $118.5 $120.0 $105.1 $100.0 $84.9 $80.0 $68.4 $66.9 $58.3 $60.3 $60.0 $49.7 $50.9 $44.8 $47.3 $42.8 $36.4 $38.6 $40.0 $25.3 $24.6 $22.2
Slide 19: Appendix
Appendix Reconciliation of Net Income (Loss) to Adjusted EBITDA ($Millions) 3/31/2010 6/30/2010 9/30/2010 12/31/2010 3/31/2011 6/30/2011 9/30/2011 12/31/2011 3/31/2012 6/30/2012 Net income (loss) $ 6.0 $ (7.0) $ (33.6) $ (13.0) $ (18.7) $ (40.1) $ (11.9) $ (7.3) $ (1.2) $ (10.0) Interest expense, ne
Vantage Drilling — Barclays CEO Energy Conference 2012 on 6ix