Vantage Drilling Company · OTC:VTGDF
Vantage Drilling — Credit Suisse OTC Conference 2011
19 slides from Vantage Drilling's conference presentation, May 4, 2011
Slide 1: Credit Suisse OTC Conference
Exhibit 99.1 Credit Suisse OTC Conference May 3, 2011
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: Recent Developments
Recent Developments • November 15, 2010 - Took delivery of Platinum Explorer • Commenced operations with ONGC on December 29, 2010 • Platinum Explorer achieves impressive utilization – – January 82% – February 93% – March 98% – April 99% • Signed Construction Management Agreement with Aker Drilling
Slide 4: Corporate Overview
Corporate Overview Symbol: VTG (NYSE AMEX) Location: HQ – Houston; Operations – Singapore; Marketing – Dubai Market Cap: $510 million Book Value: $752 million Enterprise Value: $1.6 billion Employees: > 700 Contract Backlog: $3.0 billion Owned Fleet: 4 Ultra-Premium Jackups 1 Ultra-Deepwater Drillsh
Slide 5: Company Highlights
Company Highlights • Premium high-specification drilling units, including four jackup rigs and three drillships • Vantage’s modern rigs are capable of drilling to deeper depths and possess enhanced operational Premium Fleet efficiency and technical capabilities, resulting in higher utilization, dayr
Slide 6: Company Highlights (Cont'd)
Company Highlights (Cont’d) Construction management arrangements for four ultra-deepwater drillships, DragonQuest, Dalian Construction Developer, Aker Drilling 1 & 2 Supervision and Approximately $5.0 million of annual cash flow during the construction phase Management Arrangements Management of Dra
Slide 7: Singapore Operations and Technical Support – Track Record of Excellence
Singapore Operations and Technical Support – Track Record of Excellence Completed Projects Current Projects 4 BMC 375 Jackups DragonQuest All Delivered On-Time, On Budget – • Project 99% complete • Current on-time, on budget nd •Emerald Driller – December 2008 • 2 Successful newbuild at DSME •Sapphi
Slide 8: Worldwide Operations
Worldwide Operations Contract: Phu Quy (1) Topaz Driller Houston Vietnam Contract: Petrobras LOI DragonQuest Aquamarine Driller U.S. GOM Dubai Malaysia Contract: Foxtrot Contract: ONGC Sapphire Driller Platinum Explorer Ivory Coast India Singapore Contract: Pearl LOI: Emerald Driller Sapphire Drille
Slide 9: Jackup Fleet
Jackup Fleet World class assets achieving world class performance – Emerald Driller •Fleet productive time approximately 99% since inception •High-specification jackup fleet meeting today’s challenges: • Faster drilling times • 75’ x 30’ cantilever reach substantially greater • Faster moving times t
Slide 10: Fleet Status – Average Drilling Revenue / Day
Fleet Status – Average Drilling Revenue / Day(1) Ownership 2010 2011 2012 Rig % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jackups Emerald Driller 100% 2 yrs. at $171K 2 mos. at $132K Sapphire Driller 100% 10 mos. at $115.5K 4 mos. at $120K 1 yr at $120K Aquamarine Driller 100% 5 mos. at $154.2K 10 mos. at
Slide 11: Premium Asset Advantage
Premium Asset Advantage International vs. GOM Jackup Utilization Global Jackup Utilization • Premium jackups (350’ + IC rigs) and ultra-deepwater floater have historically maintained significantly higher utilization levels, particularly during downturns in the energy industry – Operators demand newe
Slide 12: Profile of Global Jackup Fleet
Profile of Global Jackup Fleet • Capabilities and age – The current worldwide fleet is comprised mostly of older, inefficient rigs – 27% of today’s jackups are mat-supported and/or have less than 200ft of water depth capability – 70% of today’s jackups are 25 years or older – As of February 2011 a t
Slide 13: Profile of Global Ultra-Deepwater Fleet
Profile of Global Ultra-Deepwater Fleet • The ultra-deepwater rig market maintains the most favorable long-term outlook driven by recent discoveries in Brazil, West Africa, and the U.S. Gulf of Mexico • Ultra-deepwater rigs are capable of working in any water depth where operators are currently like
Slide 14: Financial Overview
Financial Overview Balance Sheet ($Millions) December 31, December 31, 2009 2010 Cash and cash equivalents $ 16.0 $ 120.4 Restricted cash 28.9 29.0 Trade receivables 17.5 50.2 Inventory 10.8 19.8 Prepaid expenses and other current assets 8.0 11.5 81.2 230.9 Property and equipment, net 888.2 1,718.1
Slide 15: Debt Repayment
Debt Repayment • No near-term maturities provides flexibility • Excess cash flow offers opportunity; alternatively we can buy bonds in the market with excess cash • Aquamarine term loan facility matures 2014; can be refinanced beginning September 2011
Slide 16: Financial Overview
Financial Overview Run-Rate Financial Potential of Vantage Owned Assets ($Millions, except dayrates) Illustrative Range of Run-Rate Financial Potential • Strong cash flow backlog to cover debt service • Leveraged to upturn in high- specification jackup market (1) Calculations of rig-level EBITDA inc
Slide 17: Significant Upside Valuation Potential
Significant Upside Valuation Potential Price to Book Value Implied Values – EV/EBITDA Today’s Historical Low Peer Avg. Peer Avg. EBITDA 6.5x 9.5 11.6x $275 million $2.40 $4.41 $7.26 $300 million $2.95 $6.06 $8.26 $350 million $4.08 $7.70 $10.28 Key Drivers Near Term – • Achieve high productive time
Slide 18: Financial Overview
Financial Overview Historical Financial Information ($ Millions)
Slide 19: Appendix
Appendix Reconciliation of Net Income (Loss) to Adjusted EBITDA ($Millions) Fiscal Quarter Ended, 3/31/2009 6/30/2009 9/30/2009 12/31/2009 3/31/2010 6/30/2010 9/30/2010 12/31/2010 Net income (loss) $ 2.4 $ 4.0 $ 6.8 $ (4.3) $ 6.0 $ (7.0) $ (33.6) $ (13.0) Interest expense, net 0.7 1.3 1.9 4.2 8.0 13