Borr Drilling Limited · NYSE:BORR
Borr Drilling — Barclays CEO Energy-Power Conference 2022
15 slides from Borr Drilling's conference presentation, Sep 6, 2022
Slide 1: Barclays CEO Energy-Power Conference
BARCLAYS CEO ENERGY-POWER CONFERENCE Patrick Schorn 6 September 2022
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation and related discussions includes forward looking statements, which may be identified by words such as "continue", "estimate", "expect", "illustrative," "intends", "may", "project," "potential," "will" and similar expressions and include expectations regar
Slide 3: The Borr Drilling Story
THE BORR DRILLING STORY BUILT TO MAKE A DIFFERENCE DEC PARAGON MAY SEP TRANSOCEAN OCT HAKURYU - 15 2016 2018 2022 2017 + 2 premium + 1 premium + 9 premium jack-ups jack-ups jack-ups (+Organisation) HERCULES PPL SHIPYARD KFELS SHIPYARD 28 Premium + 2 premium + 9 premium + 5 premium jack-ups jack-ups
Slide 4: A Leading Pure Play Company
A LEADING PURE PLAY COMPANY MODERN JACKUP FLEET AND GLOBAL PRESENCE Total People People 2,267 2,024 (offshore) 243 (onshore) 20 3 5 Contracted Available Under Construction Large and Pure- Modern and Young Play Fleet Fleet 2 Corporate Office 28 ~ 5yr Jackup Rigs Average Age 3 6 2 5 Standardized and C
Slide 5: Strong Experience
STRONG EXPERIENCE Diversified Portfolio of over 30 Customers Across NOCs, Majors And Independent Oil Companies
Slide 6: Why Shallow Water
WHY SHALLOW WATER LARGE RESOURCES AT LOW BREAKEVEN COST MIDDLE EAST GAINING IN SHALLOW WATER 80 Onshore Middle East Shelf Shallow water 60,000 Offshore production1 by region Middle East North American Shale Ultra deepwater (thousand barrels of oil equivalents per day) Other regions Deepwater Row ons
Slide 7: Shallow Water Drilling Is a Growth Market
SHALLOW WATER DRILLING IS A GROWTH MARKET MIDDLE EAST – MAIN SOURCE OF GROWTH IN OIL PRODUCTION ALSO SIGNIFICANT POTENTIAL IN REST OF THE WORLD Region Peak Current vs. peak Peak year SE Asia 71 42 -29 2013 Iran 30 10 -20 2014 Mexico 51 32 -19 2014 West Africa 26 10 -16 2012 US rig count Saudi Arabia
Slide 8: Modern Fleet Availability Is Shrinking Fast
MODERN FLEET AVAILABILITY IS SHRINKING FAST AVAILABILITY IS LIMITED… …AND NEW BUILDS PROVIDE LIMITED RELIEF Not Marketed Contracted Modern Fleet % Marketed Util. 92.5% Adjusted Util. 95.4% Future Util. 93.7% Rigs (#) Contracted Future Contracted 3 Uncompetitive 1 Nearing Uncompetitive 3 Awards 2 Sou
Slide 9: Market Soon to Be Undersupplied
MARKET SOON TO BE UNDERSUPPLIED MODERN RIG DEMAND AHEAD OF SUPPLY AND MARKET BIFURCATION CONTINUES 35 350 30+ 30 300 Modern Rigs 25 250 20 20 Rigs (#) Rigs (#) 6 Newbuilds 200 15 150 10 Standard Rigs 14 Delivered 100 5 0 50 Estimated Availability Visible Demand Jan 2020 Jul 2020 Jan 2021 Jul 2021 Ja
Slide 10: Dayrates Improving Significantly
DAYRATES IMPROVING SIGNIFICANTLY COMMODITY PRICE REMAINS SUPPORTIVE Brent Crude 1 Premium jack-up dayrate 300 100% Marketed utilisation (rhs) 92.5% Peak: $243k 3 250 90% Day Rate (k$/day) / Brent Price ($/bbl) 200 80% Avg. 2006-2014: $175k 2 Utilization 150 70% Recent fixture: $131k 1 100 60% Day ra
Slide 11: Extended Maturity Profile Post Aug 2022 Refinance
EXTENDED MATURITY PROFILE POST AUG 2022 REFINANCE PRE-REFINANCING AMORTISATION SCHEDULE POST-REFINANCING AMORTISATION SCHEDULE 1 2 1 2 Convertible bond Keppel loans Bank facility Hayfin PPL Keppel newbuild Convertible bond Keppel loans Bank facility Hayfin PPL Keppel newbuild 624 Multiple routes to
Slide 12: De-levering
DE-LEVERING Gross debt and newbuild commitments/rig Secured Unsecured 300 Post August 2022 refinancing ~200-250 250 200 $m 150 100 90 79 75 70 50 77 65 61 56 0 Newbuilding price Pre refinancing 2H 2022 YE22 YE23 YE24 1 Gross debt/commitments show outstanding principal on debt + newbuild commitments.
Slide 13: Illustrative Annual Cash Flow Potential
ILLUSTRATIVE ANNUAL CASH FLOW POTENTIAL1 95% utilisation Recent fixture Average 2006-2014 Peak Opex of $50k/day per rig # of rigs $131k/day $175k/day $243k/day Contracted rigs 20 $543m $849m $1,320m Warm stacked2 2 $54m $85m $132m Under construction 2* $54m $85m $132m G&A (1H 2022 annualised) -$38m
Slide 14: Attractive Investment Opportunity
ATTRACTIVE INVESTMENT OPPORTUNITY ✓ Multi-year structural under-investment in the oil and gas market ✓ High asset utilization – heading to 95% – in the sweet spot for rate expansion ✓ No new assets coming to the market – only 2.5% orderbook ✓ A company which is transforming to generating cash – curr
Slide 15: Built to Make a Difference
BUILT TO MAKE A Er Bont « Drilling DIFFERENCE et
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