Seadrill Limited · NYSE:SDRL
Seadrill — Merger or Acquisition (December 2022)
13 slides from Seadrill's merger presentation, Dec 22, 2022
Slide 1: Seadrill's Acquisition of Aquadrill
Seadrill’s Acquisition of Aquadrill 22 December, 2022
Slide 2: Disclaimer
Disclaimer We have prepared this document solely for informational purposes. You should not definitively rely upon it or use it to form the basis for any decision, contract, commitment or action whatsoever, with respect to any proposed transaction or otherwise. This announcement includes forward-loo
Slide 3: Overview of the Transaction
Overview of the Transaction Transaction ▪ 100% acquisition of Aquadrill membership units Consideration ▪ Aquadrill unitholders and equity award holders to receive stock consideration comprising an aggregate of 30.645 million common shares in Seadrill Combined ▪ Aquadrill unitholders and equity award
Slide 4: A Highly Attractive Transaction for All Stakeholders
A Highly Attractive Transaction for All Stakeholders Compatible Fleets and Seamless Integration The Aquadrill rigs have a long-standing operational and management history with Seadrill Improved Capacity to Deploy in a Rising Market Substantial Synergies to be Realized Significant Credit and Liquidit
Slide 5: Acquisition of High-Quality, Ultra Deepwater Capacity
Acquisition of High-Quality, Ultra Deepwater Capacity DRILLSHIPS SEMI-SUBS / TENDERS AURIGA VELA AQUARIUS Drillship, 7th Gen (Dual BOP and MPD) Drillship, 7th Gen (Dual BOP and MPD) Semi-submersible, 6th Gen Built 2013 Built 2013 Harsh Environment Built 2009 T-15 Recent Clients Include Recent Client
Slide 6: Strategic Rationale
Strategic Rationale ✓ Global portfolio of 29 rigs, 22 owned and 7 managed 1 Enhanced Fleet and Scale ✓ One of the youngest, high-specification fleets amongst peers ✓ Ability to capitalize on near-term opportunities given active fleet with limited reactivation requirements ✓ Enhances fleet in the US
Slide 7: Enhanced Fleet and Scale
1 Enhanced Fleet and Scale GLOBALLY DIVERSIFIED AND MODERN PORTFOLIO ONE OF THE YOUNGEST FLEETS IN THE INDUSTRY Pro Forma Fleet Pro Forma Average Fleet Age (Years)1 Active Rigs Active Fleet Average Age Idle Rigs Floaters 10 dual-activity drillships (7x 7G and 11 3x 6G) and one 6G 10 years 1 semi-sub
Slide 8: Strengthened Position in Key Strategic Basins
2 Strengthened Position in Key Strategic Basins US GOM BRAZIL ANGOLA Growing Position Among Market-leading International Drillers Strong Market Footprint 25% Seadrill share of benign 26% Seadrill share of benign UDW rig years awarded UDW rig years awarded since 2012 since 2012 ✓ Long-standing track
Slide 9: Strong Cash Flow Generation Potential
3 Strong Cash Flow Generation Potential ADDITIONAL FLOATER CAPACITY TO BE DEPLOYED SIGNIFICANT EARNINGS POTENTIAL IN A MARKET RECOVERY Illustrative EBITDA2 Seadrill Standalone Combined Floater Illustrative Unlevered FCF2 Floater Fleet Breakdown1 Fleet Breakdown1 +c.30% $1.7bn $1.3bn $1.3bn +c.40% 1
Slide 10: At least $70m: Highly Synergistic and Easy-to-Integrate Platform
4 Highly Synergistic and Easy-to-Integrate Platform Management fee1 optimization Logistics / supply chain optimization Incumbent management agreements no longer Standardized equipment and leveraged spend with needed critical vendors At least $70m Estimated annual synergies2 G&A / overhead cost optim
Slide 11: Strengthened Balance Sheet
5 Strengthened Balance Sheet STRONGER LIQUIDITY AND CREDIT PROFILE HIGHLY ACCRETIVE TRANSACTION As of 30 November 2022. Unaudited figures, based on Management estimates Transaction significantly accretive for credit All values in US$ millions Seadrill Aquadrill Combined From Adj. Net Debt (1) to a N
Slide 12: Conclusion: A Highly Attractive Transaction for All Stakeholders
Conclusion: A Highly Attractive Transaction for All Stakeholders Compatible Fleets and Seamless Integration The Aquadrill rigs have a long-standing operational and management history with Seadrill Improved Capacity to Deploy in a Rising Market Substantial Synergies to be Realized Significant Credit
Slide 13: Contract Coverage
Contract Coverage 22 2023 2024 2025 2026 D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D A Polaris Sevan Louisiana West Neptune A Vela A Auriga A Capella West Gemini 1 West Carina Owned Rigs West Jupiter West Tellus West Saturn West Castor 2 West Tuc