Archer Limited · OSL:ARCH
Archer — Investor Presentation (February 2025)
21 slides from Archer's investor presentation, February 2025
Slide 1: The Well Company
The Well Company February 2025
Slide 2: At a glance
At a glance Revenue EBITDA $m $m CAGR +14% CAGR +24% 1,400-1,450 155-170 1,301 1,169 135 970 117 86 $1.3bn $135m $3.6bn ’22 ’23 ’24 ’25G ’22 ’23 ’24 ’25G ’24 Revenue ’24 EBITDA Backlog1 Cash contribution Leverage ratio $m CAGR +25% 100-120 5.3x 50+ years 40 5,000+ 73 Operational experience Locations
Slide 3: Archer is positioned in resilient brownfield and energy transition market segments
Archer is positioned in resilient brownfield and energy transition market segments Main market exposure: ~90% of Archer revenue Brownfield operations Energy transition Greenfield operations Renewables Late life production Well P&A and decommissioning Services for exploratory ✓ Services to optimize p
Slide 4: Strong market outlook for Archer's P&A services
Strong market outlook for Archer’s P&A services Global offshore decommissioning spending set to double by '50 Total offshore decommissioning spend of $240bn to '50 $bn, E&P abandonment costs '01-'50 $bn, E&P abandonment costs '24-'50, Archer core market 55 50 52 45 40 39 39 ~2x 36 30 29 30 20 19 18
Slide 5: Solid spending outlook for Archer's brownfield services in core markets
Solid spending outlook for Archer’s brownfield services in core markets E&P brownfield spending in key Archer markets Comments $bn ‘25E-’30E: Main services within brownfield, which is less Shelf North Sea1 US GoM Brazil offshore (<125m)2 20% sensitive to the oil price ~$600bn Deepwater 80% 2 (>125m)
Slide 6: Robust development in EBITDA and cash contribution over time
Robust development in EBITDA and cash contribution over time Historical EBITDA and cash contribution Comments $m • EBITDA growth of 90% between 2022 EBITDA Margin EBITDA - Capex and 2025E 155-170 • Roughly 50/50 split between organic 156 growth and M&A 11% • More than 100% growth in cash 10% contrib
Slide 7: Diversified and cash generative business units
Diversified and cash generative business units Share of ‘25E EBITDA EBITDA development ~40% ▪ Broad well intervention portfolio, $m including P&A solutions 48 52 Well 22 31 32 Continued growth and ▪ Strong EBITDA growth of ~25% Services CAGR since ‘17 including bolt-on margin expansion acquisition s
Slide 8: Well Services: Strong organic growth combined with synergetic acquisitions
Well Services: Strong organic growth combined with synergetic acquisitions High-end well intervention services and technology Strong EBITDA growth over time • High-end solutions ensuring well performance to clients globally $m EBITDA Recent M&As • Leading offering within P&A services • Strong EBITDA
Slide 9: Platform Operations: Leading platform drilling service provider in the North Sea
Platform Operations: Leading platform drilling service provider in the North Sea Platform Operations is production and late life operation Diverse service offering • North Sea and Brazil focused operation based on long-term contracts with operators Platform Operations • Close to 50% market share for
Slide 10: Land Drilling: Growing and cash positive drilling business
Land Drilling: Growing and cash positive drilling business A leading land drilling provider in Vaca Muerta Financial profile • A leading provider of land drilling and workover services in Argentina EBITDA ($m) • Self-sufficient and cash positive business • Market improving in Vaca Muerta on the back
Slide 11: Renewable Services: A broad offering with profitable and growing operations
Renewable Services: A broad offering with profitable and growing operations Renewable services offering ’25E key figures1 ▪ Service offering with geothermal energy, carbon storage, wind and hydropower, without taking EPCI risk ▪ Meaningful underlying demand growth in all markets Revenue above $100m
Slide 12: Strong growth in EBITDA and cash contribution expected in '25
Strong growth in EBITDA and cash contribution expected in ‘25 ‘25 Financial estimates1 Key takeaways $m 1,400-1,450 • Second half of ‘25 expected to be stronger than first half, due to seasonal 1,301 activity and more calendar days Revenue • Renewable Services is launched as a new reported division
Slide 13: Archer's capital allocation strategy
Archer’s capital allocation strategy Balance sheet Capex M&A Shareholder returns Strong balance sheet and Capex maintained at Selective accretive Shareholder healthy debt levels moderate levels bolt-on acquisitions returns • Target a long-term leverage • Targeting total capex of 3-4% of • Discipline
Slide 14: Long track-record of executing accretive acquisitions and driving further growth
Long track-record of executing accretive acquisitions and driving further growth Acquisitions since start of Q3 ‘221 Estimated payback time of 3 years2 M&A focus areas Strengthened presence ~3 years in GoM by acquiring Disciplined and accretive M&A WFR $90-95m Q4 ‘24 Increased ownership in Iceland D
Slide 15: Q4 '24: Successful $50m private placement to fund WFR acquisition
Q4 ‘24: Successful $50m private placement to fund WFR acquisition Oversubscribed transaction Transaction highlights $m $10m upsize Well oversubscribed equity raise +10 50 40 Transaction upsized from $40m to $50m due to strong demand1 Planned Actual equity raise equity raise No value dilution for exi
Slide 16: Q1 '25: Completed refinancing improves flexibility and prolongs debt maturity
Q1 ’25: Completed refinancing improves flexibility and prolongs debt maturity $425m senior secured bond to refinance Outstanding debt following scheduled repayments $m Transaction details Senior secured bond Iceland Drilling facility Other >2x $425m $400m 9.5% fixed 464 23 447 Planned Demand at Actu
Slide 17: Considerable free cash flow to serve as foundation for shareholder returns
Considerable free cash flow to serve as foundation for shareholder returns Illustrative ’25E cash flow bridge Comments $m • Solid EBITDA forms the basis for cash flow generation 155-170 • ‘25 investment in working capital expected to be in line with growth in overall activity and revenue • Moderate
Slide 18: Outlook backed by $3.6bn backlog and steadiness of non-backlog business units
Outlook backed by $3.6bn backlog and steadiness of non-backlog business units Revenue backlog Comments $bn Firm Option • Firm backlog of $2.1bn, with an additional $1.5bn in ~1.0 contract options • 75% of backlog coming from long-term platform operation ~$360m contracts with blue-chip E&P operators,
Slide 19: Production and drilling in Vaca Muerta to grow from infrastructure investments
Production and drilling in Vaca Muerta to grow from infrastructure investments Oil export capacity in Vaca Muerta to increase through infrastructure projects1 Comments kb/d • New legislation is opening up for multi-$bn ~1,500 investments in pipeline expansions, increasing O&G capacity Vaca Muerta •
Slide 20: Gas pipeline and LNG investments to drive drilling and well services in Argentina
Gas pipeline and LNG investments to drive drilling and well services in Argentina Argentina’s gas pipeline network Gas pipeline capacity is expanding Gasoducto • ~$800m gas pipeline reversion project, finished in ‘24 • Vaca Muerta to supply gas to Northern Argentina and to Norte Brazil, via Bolivian
Slide 21: The Well Company
The Well Company I Resilient business model with ~90% of revenues from stable brownfield operations and P&A II Strong EBITDA growth of about 90% since 2022 through organic growth and accretive M&A1 III Robust balance sheet, targeting a long-term leverage ratio of 1.5-2.0x IV Considerable free cash f