Vantage Drilling Company · OTC:VTGDF
Vantage Drilling — DnB NOR Offshore & Shipping Management Access Conference (March 2009)
23 slides from Vantage Drilling's conference presentation, Mar 4, 2009
Slide 1: Vantage Drilling Company
Vantage Drilling Company DnB NOR Offshore & Shipping Management Access Conference March 4, 2009
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 Strengths and Focus
Corporate Strengths and Focus § Experienced management team with highest-level drilling expertise § New, modern, efficient rig fleet – Ultra-deepwater drillships and semi-submersibles – Ultra-premium, long-legged jackups § State-of-the-art systems, policies and procedures § Strong safety culture § P
Slide 4: Recent Events
Recent Events § Emerald Driller commenced 2-year contract → FIRST REVENUES § Current operating cash flow run-rate is $70 million annually (1 jackup + construction management contracts) § Awarded $1.1 Billion 5-year contract by ONGC for Platinum Explorer drillship § Awarded $1.8 Billion, 8-year contr
Slide 5: Revenue Backlog
Revenue Backlog Source: DnB NOR Markets Research
Slide 6: Experienced Management Team
Years Experience Relevant Experience Paul A. Bragg 31 years § CEO, Pride International (1999 - 2005) – Chief Operating Officer (1997 - 1999) – Vice President & CFO (1993 - 1997) § Vice President & CFO, ENSCO (1983 - 1987) CEO and Director Douglas Halkett 25 years § Division manager in Northern Europ
Slide 7: Vantage Offices, Owned and Managed Rigs
9k Vantage Offices || Owned Rigs i | Managed Rigs VANTAGE
Slide 8: Rig Fleet
Fleet cost > $5.5 Billion Rig Fleet Four Ultra-premium high-specification Baker Marine Pacific 375 Class jackups Two Moss Maritime CS50 MkII 6 th generation semi-submersibles Three Ultra-deepwater DSME proprietary design drillships
Slide 9: Drillships
Drillships ■ 3 ultra-deepwater drillships ■ DSME proprietary hull design – Drilling depth of 40,000 feet – Operate in up to 12,000 feet of water ■ Construction ongoing at DSME shipyard – Engineering oversight in place at shipyard – Platinum Explorer: Q4 2010 – Titanium Explorer (managed): Q3 2011 –
Slide 10: Semi-submersibles
Semi-submersibles ■ 2 6 th Generation Semi-submersibles ■ Moss Maritime CS50 MkII – Drilling depth of 40,000 feet – Operate in up to 10,000 feet of water ■ Construction ongoing, engineering oversight in place at shipyard – Oban B (managed): Q2 2010 – SDO II (managed): Q3 2011 ■ Oban B contracted for
Slide 11: Jackups
Jackups ■ 4 ultra-premium jackups ■ Baker Marine Pacific Class 375 design – Drilling depth of 30,000 feet – Operate in up to 375 feet of water ■ Construction ongoing at PPL shipyard under turnkey construction contracts – Engineering oversight in place at shipyard – Emerald Driller: Delivered and ope
Slide 12: Increased Operational Efficiency, Improved Technical Capability
Increased Operational Efficiency Improved Technical Capability Baker Marine Pacific Class 375 Jackup § Increased volumes of consumable liquids and drilling fluids § Reduced boat runs and non- productive time § Improved pipe handling capability § Fast preloading time for all tanks § Increased storage
Slide 13: Fleet contract status and dayrates
ea rT [oi] a2] 03] o4) a1] o2[ 03] as | os [a2] a3] os| oi a2 | 03 [a4] 1 J o2[ oa} as] a+ [a2] a3) as] oi] a2] 03 [a4] Jackups Emerald Driller 100% ‘Sapphire Driller 100% Aquamarine Driller 100% Topaz Driller 100% Effective Dayrate- $175,000 Dailshins Platinum Explorer Effective Dayrate - Titanium
Slide 14: Market Overview - Global Oil Production vs. E&P Spending
Market Overview - Global Oil Production vs. E&P Spending
Slide 15: Market Overview - Worldwide Jackup Fleet
Market Overview - Worldwide Jackup Fleet § Capabilities and age - older, less capable rigs are the first to be idled or retired in a downturn. 25% of today’s jackup are mat-supported and/or have less than 200ft of water depth capability. § Rust never sleeps - 73% of today’s jackups are 25 years or o
Slide 16: Market Overview - Profile of Jackup Fleet
Recently Announced - Cold Stacked 12 Retired 4 Conversions 2 Age of Jackup Fleet Water Depth (ft) Age Rigs % % 300+ 200-299 <199 25 years or older 316 73% 62% 133 127 56 5 to 24 years 57 13% 11% 49 5 3 0 to 4 years 62 14% 12% 56 1 5 435 100% 238 133 64 2009 Deliveries 37 7% 33 2 2 2010 Deliveries 26
Slide 17: Market Overview - Jackup Dayrates vs. Oil Price
Market Overview - Jackup Dayrates vs. Oil Price
Slide 18: Deepwater and ultra-deepwater utilization near 100%
Utilization in the deepwater (4,500 ft. +) and ultra-deepwater (7,500 ft +) markets remain near 100%. Major Industry Research Group (January 2009) reached conclusion that customer demand for deepwater units will exceed supply. Contract Status & Expected Demani Ultra Deepwater Criling Units (>7500fe
Slide 19: Financial Metrics - EBITDA
Construction management agreements contribute ≈ $25 million per year 2009-10 Financial Metrics - EBITDA EBITDA Contribution
Slide 20: Financial Metrics - Common Stock Outstanding
Financial Metrics - Common Stock Outstanding Recent Common Stock Transactions - • Drillship Restructuring - TMT exercised 25 million warrants to provide Vantage the funds to invest in Platinum Explorer. • Titanium Explorer Option - The option expiration in November required a breakup fee of $10.0 mi
Slide 21: Summary of Platinum Restructuring
Summary of Platinum Restructuring § Platinum Explorer owned 45% by Vantage and 55% by TMT § Vantage receives operating fees bringing its share of cashflow over 50%. § TMT purchased ≈ $40 million new Vantage equity, retired 25 million warrants and provided $30 million credit facility to VTG (only $10
Slide 22: Highlights
Highlights § Most modern, highest specification fleet in peer group § > $4 Billion Backlog provides cashflow foundation for many years § Operations commenced February 2009 § Management contracts add $25 million of cashflow yearly § Fleet value > $5.5 Billion § Highly successful, experienced team wit
Slide 23: Vantage Drilling Company key strengths
Experienced Management Team Strategic Focus Attractive Valuation Balanced Fleet Serving Shallow & Deepwater Markets Ultra Premium Assets Vantage Drilling Vantage Drilling Company
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