Transocean Ltd (switzerland) · NYSE:RIG
Transocean Ltd (switzerland) — Transocean — Investor Presentation (December 2024)
18 slides from Transocean Ltd (switzerland)'s investor presentation, December 2024
Slide 1: Transocean Ltd.
Transocean Ltd. NYSE: RIG December 2024
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER • Forward-Looking Statements • The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statemen
Slide 3: Investment Thesis
INVESTMENT THESIS ATTRACTIVE EXPOSURE TO GLOBAL OFFSHORE DRILLING INDUSTRY Hydrocarbon Favorable Market Portfolio of Value Creation Demand Dynamics Premier Assets • Access to affordable, reliable, • Increasing focus by our • Transocean owns and operates a • As evidenced by our industry- and secure e
Slide 4: Deepwater Growth Needed to Support Projected Oil Demand
DEEPWATER GROWTH NEEDED TO SUPPORT PROJECTED OIL DEMAND Global Oil Demand Global Oil Production Makeup ~ in mbbld ~ in mbbld Historical Forecast % of barrels produced from Deepwater 120 Total Demand 100 56 80 43 16.2% 60 113 100 40 20 12.0% 9.5% 0 2000 2005 2010 2015 2020 2025 2030 Source: Wood Mack
Slide 5: Deepwater Economics Remain Attractive for Project Sanctioning
DEEPWATER ECONOMICS REMAIN ATTRACTIVE FOR PROJECT SANCTIONING Deepwater P50 Breakevens Global Deepwater Greenfield E&P Investments by Approval Year ~ in mbbld USD billion, nominal 100% Historical Forecast 25% 94% 96% 140 Cumulative % of total P50 resources 100% 90% 86% 90% 81% 120 20% 75% 80% 67% 10
Slide 6: Favorable Dayrate Progression
FAVORABLE DAYRATE PROGRESSION Global Drillship Dayrate Fixtures & Average Annual Dayrates1 : 1. Deepwater Atlas: $580K/d Dayrate ($/d) 2. Deepwater Atlas: $635K/d 3. Deepwater Conqueror: $530K/d 700,000 2 600,000 1 3 500,000 400,000 300,000 478,720 200,000 418,632 359,744 233,217 100,000 - 2021 2022
Slide 7: Limited Incremental 6th & 7th Gen Drillship Supply
LIMITED INCREMENTAL 6TH & 7TH GEN DRILLSHIP SUPPLY 9 8 Transocean provides superior value proposition for incremental 7 supply to meet rising demand: 6 • Eight cold-stacked UDW ships available 5 • Estimated cost to bring cold- 4 stacked units to market: $75- 150M 3 Draco, • Estimated cost to purchas
Slide 8: Floater Opportunities
FLOATER OPPORTUNITIES START DATE NEXT 24 MONTHS Well Program Well Program Types Types 96 rig years to be awarded 4% 78 programs 8% Appraisal Harsh 33% Development Exploration 55% Benign P&A 4 4 1 9 1 1 1 4 2 2 2 1 4 <6 months 3 5 1 4 1 3 6-12 months 1 1 10 1-3 years 2 2 4 4 >3 years # Number of prog
Slide 9: Current Global Operations
CURRENT GLOBAL OPERATIONS 34 Rigs Ultra-Deepwater 17 Active 9 Cold Stacked 4 Harsh Environment 7 Active 1 1 Cold stacked 1 7 9 2 1 1 6 2 9
Slide 10: Our Leadership Position
OUR LEADERSHIP POSITION Pure Play Floater Fleet Positioned to Capitalize Through Upcycle FLOATERS BACKLOG 34 $9.3 B 100% UDW & HE As of October 24, 2024 TOTAL LIQUIDITY DRILLSHIP GROWTH POTENTIAL $1.4 B 8 As of September 30, 2024 Transocean owns 50% of the stacked1 drillship capacity 1. Based on 6/7
Slide 11: Transocean Owns the Highest Specification Fleet
TRANSOCEAN OWNS THE HIGHEST SPECIFICATION FLEET Transocean Ownership High Spec HE Semi 7 17 29% 1700 ST 2 100% 1400 ST 1 8 4 67% Up to 1250 ST 7 57 11% Stacked 2 8 8 50% Transocean Peers 1. Includes dual activity, globally marketed assets 2. Includes “stranded” and recently delivered uncontracted ne
Slide 12: Transocean's Industry-Leading Backlog
TRANSOCEAN’S INDUSTRY-LEADING BACKLOG Approximately $9.3 Billion Contract Backlog 1,2 Historic Backlog 4.0 Annual Backlog Breakdown 10.0 3.5 9.0 8.0 0.95 3.0 7.0 2.5 USD Billions USD Billions 6.0 0.74 0.29 5.0 2.0 4.0 1.5 3.0 2.60 2.0 1.0 2.03 2.03 0.16 1.0 0.5 0.0 0.49 Feb Apr Jul Oct Feb Apr Jul O
Slide 13: Exceptional Contract Visibility
EXCEPTIONAL CONTRACT VISIBILITY TRANSOCEAN CONTINUES TO OUTPERFORM PEERS Future committed floater utilization Percent (%) 100% 80% 60% Our active fleet utilization for 2025 exceeds 97% and remains at roughly 86% through the 40% first half of 2026 20% Transocean Seadrill Noble Valaris 0% Source: Ryst
Slide 14: Projected Liquidity
PROJECTED LIQUIDITY 3.0 ~$0.6B - $0.7B ~$0.2B ~$0.5B USD Billions 2.0 ~$0.5B ~$1.2B - $1.3B 1.0 ~$0.8B 0.0 Cash & Short-Term Revolving Credit Facility Operating Cash Flows CapEx / Net Investments Debt Due Through 4Q25 (3) Projected Liquidity @ Investments at 09/30/2024 Through 4Q25 (2) Through 4Q25
Slide 15: First Priority: Strengthen the Balance Sheet
FIRST PRIORITY: STRENGTHEN THE BALANCE SHEET INITIALLY, THE MOST EFFICIENT RESTORATION OF VALUE TO EQUITY HOLDERS • We believe that the cashflow-generating capability of our high-specification rig fleet can support full-cycle leverage of $4 - $4.5 billion, approximately 3x mid-cycle EBITDA. This imp
Slide 16: Investing in a Prosperous Future
INVESTING IN A PROSPEROUS FUTURE DIGITAL We have continuously invested in the digitization of our operational procedures TRANSFORMATION and activities, transforming Transocean and the industry SEA Control of Work OPS Worksight DARIC INTELLIGENT New technology extends our ability to consistently deli
Slide 17: Investment Summary
INVESTMENT SUMMARY We are in a multi-year recovery of the offshore drilling industry. As the industry leader, Transocean provides the ideal investment vehicle • Industry’s largest and highest specification fleet of floating drilling rigs offers the most organic growth potential and consistently comm
Slide 18: Transocean Ltd.
Transocean Ltd. NYSE: RIG December 2024