Slide 1: Q3 2024 results and update
Archer Q3 2024 results and update Dag Skindlo Chief Executive Officer Espen Joranger Chief Financial Officer 01 November 2024
Slide 2: Disclaimer – forward looking statements
Disclaimer – forward looking statements Cautionary Statement Regarding Forward-Looking Statements In addition to historical information, this presentation contains statements relating to our future business and/or results. These statements include certain projections and business trends that are “fo
Slide 3: Third quarter highlights
Third quarter highlights 1 Record Q3 EBITDA of $34.9m, up 14% YoY 2 Acquiring fishing and P&A specialist Wellbore Fishing & Rental Tools (WFR) 3 Highly successful private placement raising USD 50m of new equity 4 Increasing ownership in Iceland Drilling 5 Updated pro-forma 2024 guidance of $155-160m
Slide 4: Acquiring a leader in well fishing services in GoM, with strong financials
Acquiring a leader in well fishing services in GoM, with strong financials Key company information Well service offering ▪ High market share for standard and advanced well fishing in Gulf Example of fishing operations Fishing services description of Mexico and Permian Basin ▪ Strong reputation and b
Slide 5: WFR is a US based well technology player with a strong customer base
WFR is a US based well technology player with a strong customer base Strong relationships with large operators Leading US Offshore and onshore service provider ▪ WFR operates in the US Gulf of Mexico and Permian Basin, focusing on the well fishing market ▪ The offshore fishing market is highly conso
Slide 6: Transaction has a strong industrial and financial rationale
Transaction has a strong industrial and financial rationale Key investment attributes Impact on pro forma 2024E key metrics1,2 Revenue PF 2024E EBITDA PF 2024E Positioning Archer for $18bn deepwater P&A market in I GoM and strengthen well services offering 3-4% ~10% Attractive revenue synergies for
Slide 7: Creating a foundation for refinancing and dividend distribution
Creating a foundation for refinancing and dividend distribution Illustrative cash flow PF 20241 Comments $m 90-100 WFR to materially improve Archer’s cash flow to equity and support the pathway to dividend capacity Cash Cash PF Cash Cash interest Tax/other PF Cash flow contribution contribution cont
Slide 8: Accretive transaction in line with prior acquisitions
Accretive transaction in line with prior acquisitions Successful track record of accretive Acquisition to contribute strongly We will maintain focus on acquisitions for further value creation value-creative M&A initiatives Acquisitions since start of 20231 WFR acquisition M&A focus areas Estimated p
Slide 9: Highly successful $50m private placement to fund WFR acquisition
Highly successful $50m private placement to fund WFR acquisition Significantly oversubscribed transaction Transaction highlights $m $10m upsize >2x Significantly oversubscribed transaction at more than 2x planned equity raise 50 40 Transaction upsized from $40m to $50m due to strong demand1 Planned
Slide 10: Record Q3 EBITDA
Revenue ($m) +10% +11% Record Q3 EBITDA 1 000 900 864 952 350 303 335 800 300 700 250 Q3 Revenue of $335 million; up 11% YOY 600 200 500 Q3 EBITDA before exceptional $36.4 million, up 13% YOY 400 809 150 725 283 248 300 Record Q3 EBITDA of $34.9 million, up 14% YOY 100 200 50 YTD EBITDA of $98.6 mil
Slide 11: The Well Company: Revenue, EBITDA, cash contribution and leverage
Revenue EBITDA PF IDC + WFR1 $m $m CAGR +36% CAGR +18% 155-160 1,300-1,400 1,169 117 970 The Well Company 86 PF 2024 highlights1 I Annual revenue growth of 18% to $1.3-1.4bn 2022 2023 PF 2024E1 2022 2023 PF 2024E1 II EBITDA increase of ~85% from 2022 to $155-160m Cash contribution Leverage ratio Cas
Slide 12: The Well Company
The Well Company I Leading and growing provider of well services and drilling operations II Resilient cash flow from exposure to brownfield and P&A III More than 30% annual growth in EBITDA and cash contribution since 20221 IV Leverage ratio expected to reach ~2x by year-end 2025 V WFR acquisition s
Slide 13: Appendix
Appendix
Slide 14: Platform Operations
Platform Operations Financials Revenues ($m) EBITDA ($m) +8% 16 • Operational revenue increased by 14%, ending 200 14 at $123 million 151 155 12 150 139 142 140 • EBITDA of $16 million represents an increase of 10 8% compared to previous quarter and 18% 8 +14% 100 compared to Q3 last year, following
Slide 15: Well Services
Well Services Revenues ($m) EBITDA ($m) Financials • Revenue up with $9 million from last quarter 105 15 100 14 • EBITDA increase by $0.6 million from last 95 quarter 90 13 86 85 83 12 80 80 76 75 11 75 71 70 69 10 65 65 65 62 63 59 9 60 55 8 52 Operations 50 47 7 45 6 • Well Services continue to se
Slide 16: Land Drilling
Land Drilling Financials Revenues ($m) EBITDA ($m) +50% 10 • Revenue moderately increased by 2% over the 9 quarter, to $99.2 million 97.3 99.2 100 8 • EBITDA increased by 3% compared to Q2, and by 80.0 78.2 78.5 7 80 50% compared to Q3 2023, ending at $9.2 million 6 60 in the quarter on the back of
Slide 17: Condensed profit & loss
Condensed profit & loss ($ million Q3 2024 Q3 2023 YTD 2024 YTD 2023 • Total revenue of $335.1 million in Q3 2024 represent an increase of $32.4 million from same quarter last Operating revenues 283.5 248.1 809.0 724.8 year, driven by growth in all business areas Reimbursable revenue 51.6 54.6 143.4
Slide 18: Condensed balance sheet
$ million 30.09.2024 31.12.2023 Condensed balance sheet Cash and cash equivalents 56.9 52.1 • Cash and cash equivalents of $56.9 million, Restricted cash 1.7 3.5 increased by $4.8 million compared to year end Accounts receivables 188.2 183.8 2023 Inventories 69.8 75.0 Other current assets 60.3 40.4
Slide 19: Key financials
Key financials Revenue [$m] EBITDA [$m] 350 335 36 305 308 309 34.9 Reimbursable 303 300 34 Operational revenue 32.8 250 32 30.9 30.9 30.7 200 30 150 284 248 252 260 265 28 100 50 26 0 24 Q3-23 Q4-23 Q1-24 Q2 24 Q3 24 Q3-23 Q4-23 Q1-24 Q2 24 Q3 24 NIBD [$m] CAPEX [$m] 24,7 25 400 387 391 386 392 385
Slide 20: Condensed profit and loss statement (unaudited)
Condensed profit and loss statement (unaudited) (Figures in $ million) Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Operating revenues 248.1 252.4 260.2 265.4 283.5 Reimbursable revenue 54.6 52.7 48.1 43.7 51.6 Total Revenues 302.7 305.1 308.3 309.0 335.1 EBITDA before exceptional items 32.3 33.4 32.9 32.2 36.4 To
Slide 21: Condensed balance sheet (unaudited)
Condensed balance sheet (unaudited) $ million 30.09.2023 31.12.2023 31.03.2024 30.06.2024 30.09.2024 Cash, cash equivalents & restricted cash 76.3 55.6 57.8 58.4 58.6 Accounts receivables 173.4 183.8 182.5 173.6 188.2 Inventories 71.8 75.0 72.3 70.6 69.8 Other current assets 36.8 38.7 49.1 56.0 60.3
Slide 22: Condensed cash flow statement – last 5 quarters (unaudited)
Condensed cash flow statement – last 5 quarters (unaudited) (Figures in $ million) Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Operating activities 0.2 18.7 14.3 24.4 19.7 Investing activities 2.6 (22.7) (8.6) (23.4) (20.1) Financing activities 0.5 (19.3) (0.6) (0.5) (1.6) FX effect - 2.6 (2.9) - 2.2 Total* 2.9 (