S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Investor Presentation (November 2011)
19 slides from S.d. Standard Etc's investor presentation, November 2011
Slide 1: Standard Drilling November 2011 Company Update
Standard Drilling November 2011 Company Update
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by S.D. Standard Drilling Plc (the “Company” or “Standard Drilling”) solely for use at the presentation to investors and other stake holders and may not be reproduced or redistributed, in whole or in part, to any other person. This presentation is str
Slide 3: Largest Pure Play Premium Jackup Company
Largest Pure Play Premium Jackup Company Strong Capital Structure, fully Experienced Board, Building funded until Feb 2013, with $120 million cash projected 2011YE Management Team Strategically Positioned to Premium Rigs Constructed in Capitalize on the Strong a World Class Yard Market Superior Deli
Slide 4: Recent Highlights
Recent Highlights August 2011: Hired Mark Jackson as CEO Mr. Jackson has over 30 years of experience in the energy industry, first having served as CFO of Santa Fe Snyder and Apache Corporation before joining the drilling and oil service sector. Joining Noble Corporation as CFO, he assumed respo
Slide 5: Overview
Overview Founded in December 2010 Background Listed on the Oslo Axess in March 2011 Experienced board with strong track record Pure play premium jackup company Six Keppel FELS Mod V B jackups under construction in Singapore Current Status All rigs possess 20/80 financing and fully financ
Slide 6: Value Added Investor Group
Value Added Investor Group Private equity firm with solid track record in Asia Experienced investment firm with substantial rig experience Experienced in building businesses Successfully invested in 16 rig projects Actively involved in Standard Drilling Actively involved in Standard Dril
Slide 7: Board of Directors
Board of Directors Øystein Stray Spetalen Robert Petty Chairman and owner of Ferncliff TIH AS Managing Partner and Co-Founder of Clearwater Co-Founder and Director of Standard Drilling Capital Partners Successful investment track record Chairman of the Board of Standard Drilling Founder
Slide 8: Premium Rig and World Class Yard
Premium Rig and World Class Yard KFELS B-Class Keppel FELS track record The KFELS B-Class jackup rig is a first class rig design Established in 1967, Keppel FELS is the global o Over 30 orders secured worldwide since design leader in rig design, construction and was launched in 2000 repair, ship
Slide 9: Superior Delivery Schedule
Superior Delivery Schedule Monetized Rig 1 at a solid valuation further strengthening the balance sheet Significant value in early delivery schedule providing substantial value over new orders First remaining rig delivery in February 2013 provides a strategic advantage in marketing Uniform r
Slide 10: Aging Fleet
Aging Fleet Difficult for established players to renew jackup fleet without acquisitions Jackup Fleet For Major Offshore Drillers Current 2011-2014 2014 2014 Fleet Newbuilds Total Fleet Average Age Transocean 61 4 65 30 Ensco 48 3 51 28 Noble 43 6 49 29 Rowan 29 2 31 18 Seadrill 16 6 22 6 Standard
Slide 11: Declining Production Driving Activity
Declining Production Driving Activity Average year over year decline in production of 8% in the third quarter Excluding BP from the analysis, the average decline was still 6% Of the 6% decline, oil production was down 8% Change in 3Q11 Oil and Gas Production Source: Barclays Capital Commodity
Slide 12: Stacked Rigs Decreasing
Stacked Rigs Decreasing Jackup Status 19 warm stacked 14 will enter the market in the next 6 months 59 cold stacked Stacked for an average of 2.2 years 30 are IC and 22 owned by Transocean 29 slot and 22 owned by Hercules Transocean and Hercules will scrap Global Jackup Fleet IC JUs >
Slide 13: Worldwide Distribution
Worldwide Distribution* NW Europe 12 14% # premium % premium rigs rig fleet MENA, Med. Black Sea 22 26% US Gom + Mexico 9 10% # premium % premium rigs rig fleet # premium % premium SE Asia 34% 29 rigs rig fleet West Africa 3 3% # premium % premium rigs rig fleet # premium % premium rigs rig fleet So
Slide 14: Limited Availability of Modern Premium Jackups
Limited Availability of Modern Premium Jackups On average 22 new contracts and extensions were awarded to modern premium jackups over the past 8 quarters On average 12 modern premium jackups available per quarter through YE2013 Modern Premium Jackup Contracts Modern Premium Jackup Availability 4
Slide 15: Valuation – Implied Value Per Rig
Valuation – Implied Value Per Rig USD per Share as of 11/14/2011 USD $1.38 Market Cap as of 11/14/2011 $362 Plus: Outstanding Payments to Keppel $903 Less: Cash estimates as of YE 2011 $120 EV $1,144 EV/Rig $190.7 Current Newbuild Price* $200.0 Newbuild Parity** $218.1 Recent Transaction Estimates**
Slide 16: Significant Equity Upside Potential
Significant Equity Upside Potential Yard prices have increased near $200 million for similar rigs with less favorable financing terms and delivery in 2014 Recent transactions estimates valuation of newbuild around $220 million Asset Value Sensitivity 3,5 Newbuild 3,0 3,0 parity* SDSD @ 2,5 2,5 m
Slide 17: Rig Equity Return Sensitivities – Illustrative Example
Rig Equity Return Sensitivities – Illustrative Example Strong earnings potential Pareto 2012 estimate of $150k/day Earnings Sensitivity on a per rig basis Day Rates 130,000 150,000 170,000 190,000 210,000 EBITDA 23.6 30.5 37.5 44.4 51.3 Net income 5.7 12.7 19.6 26.5 33.5 Implied P/E 10.5x 4.8x 3
Slide 18: Financing Overview
Financing Overview Fully financed until delivery of the first rig in February 2013 Cash of approximately $120 million as of year end 2011 December 2010 May 2011 November, 2011 Completed a $42 Completed a $330 Sale of B319 Closed and million private million private cash of approximately placement
Slide 19: Why Standard Drilling?
Why Standard Drilling? Strategically directed by an experienced board with a strong track record People Committed resources contributed by Ferncliff and Clearwater Assembling a management team committed to “raising the bar” Pure play owner of premium jackups Assets Recognized as the most e
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