Vantage Drilling Company · OTC:VTGDF
Vantage Drilling — J.P. Morgan High Yield & Leveraged Finance Conference 2014
20 slides from Vantage Drilling's conference presentation, Feb 25, 2014
Slide 1: Vantage Drilling Company
Exhibit 99.1 Vantage Drilling Company J.P. Morgan High Yield & Leveraged Finance Conference Miami, Florida February 24, 2014
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: Company Overview
Company Overview NYSE: VTG Market Cap: $519 million Book Value: $567 million Enterprise Value: $3.4 billion Employees: > 1,300 Vantage Offices 4 Jackups 3 Drillships, plus 1 under construction 3
Slide 4: Highlights
Highlights 2013 Achieved Record Revenue, EBITDA, and Income from Operations Ultra-Deepwater Fleet fully contracted through 2015 Jackup fleet 97% contracted for 2014 and 30% contracted for 2015. Refinanced Balance Sheet – Interest savings in excess of $90 million per year Much longer, staggered matur
Slide 5: Vantage Strategic Focus
Vantage Strategic Focus Experienced Vantage was founded with a vision of People bringing the best people together with the highest specification, modern fleet in the offshore drilling industry. With exceptional operating performance and a focus on service, we have built an excellent portfolio of cus
Slide 6: People
People Our senior management team averages over 30 years of Industry experience. The cornerstones of our corporate culture are safety and professionalism. • Industry leading safety record – Lost time incident rate in 2013 and 2012 were .32 and .00, respectively, as we completed approximately 2.5 mil
Slide 7: High Specification Assets
High Specification Assets We have built a fleet of new, premium assets that our customers demand now and for the future. High-specification drillships combined with deep in- house operations and technical teams, have been the key to awards to Vantage of high-profile, complex, ultra-deepwater project
Slide 8: Profile of Global Jackup Fleet
Profile of Global Jackup Fleet • Capabilities and age – The current worldwide fleet is comprised mostly of older, inefficient rigs – 17% of today’s jackups are mat-supported and/or have less than 200ft of water depth capability – 60% of today’s jackups are 25 years or older – As of February 2014 a t
Slide 9: Supply of High Specification Floaters
Supply of High Specification Floaters Bifurcation will drive cold stacking and retirements. Nearly half of the deepwater and ultra-deepwater combined fleet is 25 years of age or older. Age of Floater Fleet Age Rigs % % 25 years or older 149 47% 36% 10 to 24 years 46 15% 11% 0 to 9 years 121 38% 29%
Slide 10: Market Conditions
Market Conditions Continued Growth Cycle Long-term Opportunities • Global demand for oil & gas continues growth driven by emerging economies with long-term forecast for increase E&P spending. • Success in deepwater and ultra-deepwater exploration should provide the map to future growth as developmen
Slide 11: Market Conditions
Market Conditions Short-term Headwinds • Shift in global spending to national oil companies increases contracting time. • North American and European E&P companies facing wave of shareholder activism impacting capital allocations (dividends & share repurchases versus E&P spending). • Confidence in o
Slide 12: Strong Customer Backlog
Strong Customer Backlog We have focused our marketing efforts on $2.8 Billion of backlog with customers with long-term drilling requirements strong customer base: with the opportunity for long-term contracts. 12
Slide 13: Fleet Status
Fleet Status Customer backlog of approximately $2.8 Billion provides visibility to cash flows Ownership 2013 2014 2015 Rig % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jackups Emerald Driller 100% $130,000 $156,000 (2 years) Sapphire Driller 100% $120,000 $165,000 (net) $183,000 (18 months) Aquamarine Dril
Slide 14: Progress on Financial Targets
Progress on Financial Targets Long-term contracts provide visibility to cash flow to support our leverage reduction objectives. • 4 th quarter 2013, with our 7 operational assets all working, we expect to report record Revenue, EBITDA and Income from Operations. • We are on target to achieve our goa
Slide 15: Return on Capital Employed
Return on Capital Employed Strong operational performance from our first 7 rigs, now fully deployed, will lead to industry leading Return on Capital Employed (ROCE). 2014 Target: 11+%. * Based on Last-Twelve-Months reported. 15
Slide 16: Debt Maturities and Leverage
Debt Maturities and Leverage • No significantdebt maturities until 2017. • Cash flow from operations projected to cover all debt service through 2018. • Increased leverage over last 2 years has been to fund deployment of Titanium Explorer and Tungsten Explorer. • As current fleet is all working, lev
Slide 17: Historical Financial
Appendix HISTORICAL FINANCIAL
Slide 18: Balance Sheet
Balance Sheet ($ in millions) December 31, December 31, For the Quarter Ended 2011 2012 31-Mar-13 30-Jun-13 30-Sep-13 Cash and cash equivalents The Debt to EBITDA leverage $ 117.0 $ 506.2 $ 460.5 $ 443.8 $ 71.1 Trade receivables 100.9 119.5 101.9 107.9 144.9 ratio will continue to reduce as Inventor
Slide 19: Statement of Operations
Statement of Operations ($ in millions) December 31,December 31, For the Quarter Ended 2011 2012 31-Mar-13 30-Jun-13 30-Sep-13 REVENUE Contract Drilling Services $ 366.8 $ 423.8 $ 134.7 $ 155.8 $ 158.9 Net income and cash flow from Management Fees 13.7 6.6 3.2 2.4 3.9 operations is increasing Reimbu
Slide 20: EBITDA Reconciliation
EBITDA Reconciliation ($ in millions) December 31, December 31, For the Quarter Ended 2011 2012 31-Mar-13 30-Jun-13 30-Sep-13 Net Income (Loss) $ (80.0) $ (145.3) $ (123.2) $ 4.2 $ 6.8 Interest Expense, Net 154.8 149.0 59.6 51.2 47.4 Income Tax Provision 11.4 18.9 5.6 7.1 4.1 Depreciation 64.5 68.7
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