Vantage Drilling Company · OTC:VTGDF
Vantage Drilling — Pareto Oil & Offshore Conference 2010
23 slides from Vantage Drilling's conference presentation, Sep 1, 2010
Slide 1: Pareto Oil & Offshore Conference
Exhibit 99.1 Pareto Oil & Offshore Conference September 1-2, 2010 Oslo, Norway
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 • Acquired the 55% of Mandarin Drilling Company not previously owned, bringing total ownership of Platinum Explorer drillship to 100% • Raised $1.0 Billion 11.5% Senior Secured Notes to fund the purchase of Platinum Explorer and refinance existing debt; no debt matures prior to 2
Slide 4: Corporate Overview
Corporate Overview Symbol: VTG (NYSE AMEX) Location: HQ – Houston; Operations – Singapore; Marketing - Dubai Market Cap: $390 million Book Value: $773 million Enterprise Value: $1.5 billion Employees: > 700 Contract Backlog: $3.8 billion Owned Fleet: 4 Ultra-Premium Jackups 1 Ultra-Deepwater Drillsh
Slide 5: Company Highlights
Company Highlights • Premium high-specificationdrilling units, including four jackup rigs, three drillships and two semisubmersibles Premium Fleet • Vantage’s modern rigs are capable of drilling to deeper depths and possess enhanced operational efficiency and technical capabilities, resulting in hig
Slide 6: Company Highlights (Cont'd)
Company Highlights (Cont’d) Four construction management arrangements for two ultra-deepwaterdrillships, DragonQuest and Dalian Developer, as well as two 6th generation semisubmersibles Construction Supervision and Approximately $5.0 million of annual cash flow per contract during the construction p
Slide 7: Fleet Overview
Fleet Overview Owned Assets • Significant asset value of owned fleet Platinum Explorer Emerald Driller Sapphire Driller Topaz Driller Aquamarine Driller Managed Assets DragonQuest SeaDragon I SeaDragon II Dalian Developer
Slide 8: Premium Newbuild Fleet
Premium Newbuild Fleet • Owned Fleet: Four newbuild ultra-premium high-specification Baker Marine Pacific Class 375 jackups Platinum Explorer – ultra-deepwater 12,000 ft. drillship (equipped for 10,000 ft.) • The drillship is currently being constructed by Daewoo Shipbuilding & Marine Engineering Co
Slide 9: Worldwide Operations
Worldwide Operations Contract: Phu Quy(1) Topaz Driller Houston Vietnam Contract: Petrobras Contract: Nido DragonQuest Aquamarine Driller U.S. GOM Dubai Philippines Contract: PEMEX Semi I Mexico GOM Contract: ONGC Contract: Foxtrot Platinum Explorer Sapphire Driller India Singapore Ivory Coast Contr
Slide 10: Advantages of Ultra-Premium Jackups
Advantages of Ultra-Premium Jackups The Baker Marine Pacific Class jackup is capable of drilling in up to 375 feet of water and has a maximum drilling depth of 30,000 feet Comparison of Vantage Ultra-Premium Jackup to Standard Jackup Increased Operational Efficiency and Improved Technical Capability
Slide 11: Platinum Explorer Construction Status
Platinum Explorer Construction Status Overall Construction Progress (July 2010) Platinum Explorer as of July 2010 Source: DSME.
Slide 12: Platinum Explorer Path Forward
Platinum Explorer Path Forward Milestone Dates • September 2 – Naming Ceremony • September 28 to October 23 – Sea Trials • November 10 – Rig Delivery • November 20-25 – Arrive Singapore and load riser • December 15 – Arrive East coast of India • December 31 – On Contract with ONGC
Slide 13: Semisubmersibles
Semisubmersibles • Two 6th generation semisubmersibles • Moss Maritime CS50 MkII Drilling depth of 40,000 feet Operate in up to 10,000 feet of water • Construction ongoing at Jurong Shipyard Pte Ltd, Singapore Semi I: Delivery Q4 2010 (PEMEX / five years) Semi II: Delivery Q3 2011 (Currently marketi
Slide 14: 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 Sapphire Driller 100% 10 mos. at $115.5K 8 mos. at $120K Aquamarine Driller 100% 5 mos. at $154.2K 2 yrs. at $120K (2) Repriced to Leading
Slide 15: Contract Overview and Customer Credit Profile
Contract Overview and Customer Credit Profile Contract Party Average Drilling Owned/ Credit Rating Revenue Per Contract Value Operating Vessel Name Managed Contract Party (S&P/Moody’s) Contract Length Day(1) (Gross) Management Fee Emerald Driller Owned AA / Aa3 2 Years $171,000 $126.5 million N/A Ow
Slide 16: Premium Asset Advantage
Premium Asset Advantage International vs. GOM Jackup Utilization Global Jackup Utilization • Premium jackups (350’ + IC rigs) and ultra-deepwater floater have historically maintained significantly higher utilization levels, particularly during downturns in the energy industry – Operators demand newe
Slide 17: Profile of Global Jackup Fleet
Profile of Global Jackup Fleet • Capabilities and age – The current worldwide fleet is comprised mostly of older, inefficient rigs – 27% of today’s jackupsare mat-supported and/or have less than 200ft of water depth capability – 71% of today’s jackupsare 25 years or older – As of July 2010 a total o
Slide 18: Profile of Global Ultra-Deepwater Fleet
Profile of Global Ultra-Deepwater Fleet • The ultra-deepwater rig market maintains the most favorable long-term outlook driven by recent discoveries in Brazil, West Africa, and the U.S. Gulf of Mexico • Ultra-deepwater rigs are capable of working in any water depth where operators are currently like
Slide 19: Financial Overview
Financial Overview Pro Forma Capitalization ($Millions) As of June 30, 2010 Actual As Adjusted Unrestricted Cash $ 18.4 $ 118.2 Restricted Cash 27.2 545.3 Accounts receivable 59.2 59.2 Inventory 14.4 14.4 Other current assets 3.9 3.9 123.1 741.0 Property and equipment, net 888.7 1,159.8 Investment i
Slide 20: Financial Overview
Financial Overview Historical Financial Information ($ Millions)
Slide 21: Financial Overview
Financial Overview Run-Rate Financial Potential of Vantage Owned Assets ($Millions, except dayrates) Illustrative Range of Run-Rate Financial Potential • Rig-Level EBITDA excludes income from management fees and unallocated corporate SG&A (estimated at $17-$20 million per year) (1) Calculations of r
Slide 22: Significant Upside Valuation Potential
Significant Upside Valuation Potential Price to Book Value Implied Values – EV/EBITDA Today’s Historical Peer Avg. Peer Avg. EBITDA 5.5x 6.5x 11.6x $275 million $1.43 $2.40 $7.26 $300 million $1.91 $2.95 $8.26 $350 million $3.11 $4.08 $10.28 Commencement of Platinum Explorer expected to be a catalys
Slide 23: Appendix
Appendix Reconciliation of Net Income (Loss) to Adjusted EBITDA ($Millions) Fiscal Quarter Ended, 3/31/2009 6/30/2009 9/30/2009 12/31/2009 3/31/2010 6/30/2010 Net Income (Loss) $ 2.4 $ 4.0 $ 6.8 $ (4.3) $ 6.0 $ (7.0) Interest Expense, Net 0.7 1.3 1.9 4.2 8.0 13.3 Income Tax Provision (Benefit) 0.6 0
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