Vantage Drilling Company · OTC:VTGDF
Vantage Drilling — Pareto Securities Oil & Offshore Conference 2011
21 slides from Vantage Drilling's conference presentation, Aug 31, 2011
Slide 1: Pareto Securities Oil & Offshore Conference 2011
Exhibit 99.1 Pareto Securities Oil & Offshore Conference 2011 August 31, 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: Corporate Overview
Corporate Overview Symbol: VTG (NYSE AMEX) Location: HQ – Houston; Operations – Singapore; Marketing – Dubai Market Cap: $366.2 million Book Value: $713.8 million Enterprise Value: $1.52 billion Employees: > 700 Contract Backlog: $3.0 billion, including rigs under management Owned Fleet: 4 Ultra-Pre
Slide 4: Recent Developments
Recent Developments Expanded deepwater fleet with order of newbuild drillship Tungsten Explorer for Q2 2013 delivery. Raised ~ $240.0 million with “tack-on” bond offering to refinance term loan and fund drillship down payment. November 15, 2010 - Took delivery of Platinum Explorer – on-time, on budg
Slide 5: Tungsten Explorer
Tungsten Explorer • Capable of operating in water depths up to 12,000 ft • Total vertical drilling depth of 40,000 ft • Variable deck load of 20,000 tons • Hull measurement of 781 ft long by 137 ft wide • DP3 dynamic positioning system • 1250 short ton hook load, including 9000 hp drawworks • Offlin
Slide 6: 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, dayrates
Slide 7: Company Highlights (Cont'd)
Company Highlights (Cont’d) Construction management arrangements for four ultra-deepwater drillships, DragonQuest, Dalian Developer, Aker Drilling 1 & 2 Construction Supervision and Management of DragonQuest once in service Management Arrangements Approximately $12.0 to $15.0 million per year for th
Slide 8: 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 • Project 99% complete All Delivered On-Time, On Budget – nd • 2 Successful newbuild at DSME • Emerald Driller – December 2008 • Sapphire Driller – July 2009 • Aq
Slide 9: Worldwide Operations
Worldwide Operations Topaz Driller Contract: Phu Quy(1) Vietnam Houston Contract: Total Malaysia Contract: Petrobras DragonQuest Aquamarine Driller U.S. GOM Dubai Contract: Salamander Vietnam Contract: Petronas Contract: ONGC Carigaili Platinum Explorer Malaysia India Contract: PTT Sapphire Driller
Slide 10: Strong Customer Relationships
Strong Customer Relationships Key Customers 10
Slide 11: 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
Slide 12: 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 2 years at $171,000 Emerald Driller 100% 2 yrs. at $171K $132K 18 mos. at $130K Sapphire Driller 100% 10 mos. at $115.5K 4 mos. at $120K 1 yr at $120K Aquamarine Driller 100% 5 m
Slide 13: Premium Asset Advantage
Premium Asset Advantage International vs. GOM Jackup Utilization Global Jackup Utilization • Premium jackups (350’ + IC rigs) and ultra-deepwater floater have historically maintained significantly higher utilization levels, particularly during downturns in the energy industry – Operators demand newe
Slide 14: Profile of Global Jackup Fleet
Profile of Global Jackup Fleet • Capabilities and age – The current worldwide fleet is comprised mostly of older, inefficient rigs – 27% of today’s jackups are mat-supported and/or have less than 200ft of water depth capability – 70% of today’s jackups are 25 years or older – As of February 2011 a t
Slide 15: Global Deepwater Market
Global Deepwater Market Ultra-Deepwater Rig Supply is Increasing Significantly Deepwater Exploration is a Young, Rapidly Growing Market Demand is Likely to Exceed Rig Supply Despite Newbuilds Source: ODS-Petrodata, DnB NOR 15
Slide 16: Financial Overview
Financial Overview Balance Sheet ($Millions) December 31, June 30, 2010 2011 Cash and cash equivalents $ 120.4 $ 114.5 Restricted cash 29.0 6.2 Trade receivables 50.2 86.5 Inventory 19.8 22.2 Prepaid expenses and other current assets 11.5 7.3 230.9 236.7 Property and equipment, net 1,718.1 1,803.4 I
Slide 17: 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 • First call option February 2013 17
Slide 18: 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 19: 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 8.5 11.6x $250 million $1.72 $3.44 $6.11 $300 million $2.84 $4.90 $8.10 $350 million $3.96 $6.36 $10.10 Key Drivers Near Term – • Achieve high productive time
Slide 20: Financial Overview
Financial Overview Historical Financial Information ($ Millions) $140.0 $124.6 $120.9 $120.0 $100.0 $84.9 $80.0 $68.4 $66.9 $58.3 $60.0 $48.2 $42.8 $36.4 $38.6 $40.0 $25.3 $24.6 $22.2 $21.3 $20.0 $16.9 $14.3 $14.2 $9.5 $6.4 $5.0 $0.0 3/31/2009 6/30/2009 9/30/2009 12/31/2009 3/31/2010 6/30/2010 9/30/
Slide 21: Appendix
Appendix Reconciliation of Net Income (Loss) to Adjusted EBITDA ($Millions) Fiscal Quarter Ended, 6/30/2009 9/30/2009 12/31/2009 3/31/2010 6/30/2010 9/30/2010 12/31/2010 3/31/2011 6/30/2011 Net income (loss) $ 4.0 $ 6.8 $ (4.3) $ 6.0 $ (7.0) $ (33.6) $ (13.0) $ (18.7) $ (40.1) Interest expense, net
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