Vantage Drilling Company · OTC:VTGDF
Vantage Drilling — Johnson Rice & Co 2nd Annual Energy Conference 2010
25 slides from Vantage Drilling's conference presentation, Oct 5, 2010
Slide 1: Johnson Rice & Co 2nd Annual Energy Conference
Exhibit 99.1 nd Johnson Rice & Co 2 Annual Energy Conference October 4-7, 2010 New Orleans, Louisiana
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 2014
Slide 4: Corporate Overview
Corporate Overview Symbol: VTG (NYSE AMEX) Location: HQ – Houston; Operations – Singapore; Marketing - Dubai Market Cap: $463 million Book Value: $741 million Enterprise Value: $1.6 billion* Employees: > 700 Contract Backlog: $3.8 billion Owned Fleet: 4 Ultra-Premium Jackups 1 Ultra-Deepwater Drills
Slide 5: Company Highlights
Company Highlights Premium high-specification drilling 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 higher
Slide 6: Company Highlights (Cont'd)
Company Highlights (Cont’d) Four construction management arrangements for two ultra-deepwater drillships, 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
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 (on going) • 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 $126.5 million N/A Ow
Slide 16: Premium Asset Advantage
Premium Asset Advantage International vs. GOM Jackup Utilization Global Jackup Utilization • Premium jackups (350’ + IC rigs) and ultra-deepwater floater have historically maintained significantly higher utilization levels, particularly during downturns in the energy industry – Operators demand newe
Slide 17: Profile of Global Jackup Fleet
Profile of Global Jackup Fleet • Capabilities and age – The current worldwide fleet is comprised mostly of older, inefficient rigs – 27% of today’s jackups are mat-supported and/or have less than 200ft of water depth capability – 71% of today’s jackups are 25 years or older – As of July 2010 a total
Slide 18: Profile of Global Ultra-Deepwater Fleet
Profile of Global Ultra-Deepwater Fleet • The ultra-deepwater rig market maintains the most favorable long-term outlook driven by recent discoveries in Brazil, West Africa, and the U.S. Gulf of Mexico • Ultra-deepwater rigs are capable of working in any water depth where operators are currently like
Slide 19: Financial Overview
Financial Overview Pro Forma Capitalization ($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: Bond Summary
Bond Summary Summary of Terms – Senior Secured First Lien Notes Issuer: Offshore Group Investment Limited (the “Issuer”), a subsidiary of Vantage Drilling Company (the “Parent”). Issue: $1,000.0 million Senior Secured First Lien Notes (the “Notes”). Issue Price: 96.361% [Original Issue Discount 3.63
Slide 21: Debt Repayment
Debt Repayment • No near-term maturities provides flexibility • Excess cash flow offers opportunity; alternatively we can buy bonds in the market with excess cash • Aquamarine term loan facility matures 2014; can be refinanced beginning September 2011
Slide 22: Financial Overview
Financial Overview Run-Rate Financial Potential of Vantage Owned Assets ($Millions, except dayrates) Illustrative Range of Run-Rate Financial Potential • Strong cash flow backlog to cover debt service • Leveraged to upturn in high- specification jackupmarket (1) Calculations of rig-level EBITDA inco
Slide 23: 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 $10.28 Commencement of Platinum Explorer expected to be a catalys
Slide 24: Financial Overview
Financial Overview Historical Financial Information ($ Millions)
Slide 25: Appendix
Appendix Reconciliation of Net Income (Loss) to Adjusted EBITDA ($Millions) Fiscal Quarter Ended, 3/31/20096/30/20099/30/200912/31/20093/31/20106/30/2010 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 0.9 1.
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