Superior Energy Services — 16th Annual Bear Stearns Global Credit Conference 2007
24 slides from Superior Energy Services's conference presentation, May 14, 2007
Slide 1: 16th Annual Bear Stearns Global Credit Conference May 16, 2007
16th Annual Bear Stearns Global Credit Conference May 16, 2007
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, including, in particular, statements about Superior Energy's plans, strategies and prospects. These statements are based on the Company's current assumptions, expectations and projections about future events, which are
Slide 3: Company Overview
Company Overview Highly diversified provider of services, tools and liftboats used to enhance, maintain and extend production Participate in all phases of well life-cycle: drilling, production and decommissioning Value-added production enhancement services Brand name rental tool companies Liftboats
Slide 4: Segment Profile
Segment Profile Segment 2006 Revenues Five-Year CAGR Labor Intensity Capital Intensity Well Intervention $469.1 12.9%1 High Low Rental Tools $371.2 25.0% Low High Marine $140.1 14.4% High Low Oil and Gas $127.7 85.7%2 Low High 1 Well intervention segment CAGR includes revenues from Other Oilfield Se
Slide 5: Well Intervention Segment
Well Intervention Segment Production-related services Mechanical wireline Electric line (cased hole wireline) Coiled tubing Hydraulic workover Pumping and stimulation Snubbing Well performance, testing and evaluation Gas lift Secondary cementing Well control Engineering Marine engineering Project ma
Slide 6: Well Intervention Segment: Competitive Advantages and Revenue Profile
Well Intervention Segment: Competitive Advantages and Revenue Profile Breadth of services Premium services Efficiency Single source of contact Fewer people and equipment Equipment Adding new coiled tubing units Safety record Lowest recordable incident rate among peers Engineering competency Manage a
Slide 7: Rental Tools Segment
Rental Tools Segment Drilling-related tools Drill pipe Specialty tubulars Landing strings Stabilizers Hole openers Drill collars Production-related and other tools Connecting iron BOPs Valves Accommodation units Bolting and nipple-up services Pipe inspection
Slide 8: Rental Tools Segment: Competitive Advantages and Revenue Profile
Rental Tools Segment: Competitive Advantages and Revenue Profile Brand name rental companies Entrepreneurial focused Infrastructure Tools and locations Engineering sales approach Plan and design emphasis Significant barriers to entry Capital Infrastructure Strong reputation Breadth of tool inventory
Slide 9: Marine Segment
Marine Segment Own and operate 27 liftboats Largest owner & operator of modern liftboats with leg lengths of 200 feet and greater Variety of uses Well intervention projects Work platform Lifting capabilities Construction support
Slide 10: A Complementary Business Model
A Complementary Business Model Superior is capable of delivering an integrated solutions package to meet customer needs from project start-to-finish Benefits of Integrated Solutions Package: Customers benefit from continuity and reliability of service Superior gains greater share of E&P spending dol
Slide 11: Revenue and EBITDA Profile
Revenue and EBITDA Profile Well intervention Rental tools Marine Other ('02)/ Oil and gas ('06) Reconciliation between net income and EBITDA at end of presentation 2006 Revenue: $1,093.8 million 2006 EBITDA: $433.8 million Well Intervention 0.43 Rental Tools 0.34 Marine 0.13 Oil and Gas 0.1 Well Int
Slide 12: GOM vs. Non-GOM Revenue
GOM vs. Non-GOM Revenue 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 GOM 104.5 120.1 115.8 100.2 134.4 161.5 178.6 180.5 187.5 Non-GOM 68.7 69.9 68.3 87.8 88.1 100.3 111.9 138.6 175.4 $ in millions
Slide 13: Geographic Mix of Revenue
Geographic Mix of Revenue Gulf of Mexico Domestic land market International 2006 GOM 0.6 Domestic Land 0.25 International 0.15 GOM 0.52 International 0.29 Domestic Land 0.19 2007 1Q Run Rate
Slide 14: Domestic Footprint in Key Producing Basins
Domestic Footprint in Key Producing Basins 63 well intervention locations 45 rental tools locations
Slide 15: Emerging Global Footprint
Emerging Global Footprint 2001 2002 2003 2004 2005 2006 2007E International Revenue 24 39 57 88 99 169 276 (1) 2007E is 1Q07 annualized run rate ($69 million x 4)
Slide 16: Growth Strategy
Growth Strategy Expand global footprint Grow rental tools market share Establish broad service presence Introduce liftboats Build out domestic land markets New equipment New product/service lines New technologies Maintain competitive advantages Integrated portfolio approach Safety
Slide 17: Strong Revenue and EBITDA Growth
2000 2001 2002 2003 2004 2005 2006 2007E Superior 258 449.042 443.1 500.6 564.3 735.3 1094 1452 Strong Revenue and EBITDA Growth 2000 2001 2002 2003 2004 2005 2006 2007E EBITDA 66 138.399 99 117 145 220 434 615 Margin 0.2548 0.3082 0.2224 0.2341 0.2569 0.2987 0.397 0.423 Revenue ($ in millions) EBIT
Slide 18: Capitalization
Capitalization ($ in millions) ($ in millions) ($ in millions) ($ in millions) ($ in millions) 3/31/07 12/31/06 3/31/07 12/31/06 3/31/07 12/31/06 3/31/07 12/31/06 3/31/07 12/31/06 Cash and Cash Equivalents Cash and Cash Equivalents $32.0 $39.0 $39.0 $250 million Revolving Credit Facility $250 millio
Slide 19: Increased Efficiency
Increased Efficiency 1st Qtr 2001 136060 2002 126600 2003 156438 2004 171000 2005 222818 2006 254372 Revenue per Employee
Slide 20: Operating Margins versus Peers
Operating Margins versus Peers SPN Peer average 1Q04 0.093 0.098 2Q04 0.136 0.111 3Q04 0.149 0.12 4Q04 0.153 0.117 1Q05 0.185 0.128 2Q05 0.224 0.146 3Q05 0.145 0.147 4Q05 0.176 0.162 1Q06 0.245 0.2 2Q06 0.29 0.198 3Q06 0.304 0.215 4Q06 0.308 0.203 1Q07 0.311 0.195 1 Peer group includes BJS, OII, OIS
Slide 21: A Track Record of Consistent Outperformance
A Track Record of Consistent Outperformance 2nd in 10-year return 4th in one-, three-, and five-year returns Honor Roll Companies in top 20% in 1-yr, 3-yr, 5-yr and 10-yr returns (Only 24 out of 1,000 companies qualified) Industry Rankings 10th in one- and three-year returns 12th in 10-year return 1
Slide 22: Investment Highlights
Investment Highlights Significant sustainable competitive advantages Experienced management team Exceptional growth prospects Strong and stable free cash flows Consistent track record of delivering shareholder value
Slide 23: Segment EBITDA Reconciliation
Segment EBITDA Reconciliation Earnings before interest, taxes depreciation and amortization (EBITDA) is a non-GAAP financial measurement. Management uses EBITDA because it believes that such a measurement is a widely accepted financial indicator used by investors and analysts to analyze and compare
Slide 24: EBITDA Reconciliation
EBITDA Reconciliation Earnings before interest, taxes depreciation, amortization and loss on early extinguishment of debt (EBITDA) is a non-GAAP financial measurement. We use EBITDA because we believe that such a measurement is a widely accepted financial indictor used by investors and analysts to a
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