Transocean Ltd (switzerland) · NYSE:RIG
Transocean Ltd (switzerland) — Transocean — Merger or Acquisition (November 2017)
36 slides from Transocean Ltd (switzerland)'s merger presentation, Nov 22, 2017
Slide 1: Legal Disclaimer
LEGAL DISCLAIMER The statements described in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements contain words
Slide 2: Legal Disclaimer (continued)
LEGAL DISCLAIMER (CONTINUED) INVESTORS AND SECURITYHOLDERS ARE URGED TO READ CAREFULLY THE DEFINITIVE PROXY STATEMENT AND/OR PROSPECTUS REGARDING THE TRANSACTION IN ITS/THEIR ENTIRETY WHEN THEY BECOME AVAILABLE (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) OR ANY DOCUMENTS WHICH ARE INCORPORATED
Slide 3: Our Leadership Position: Fleet, Backlog, Liquidity, Experience
OUR LEADERSHIP POSITION FLEET BACKLOG LIQUIDITY EXPERIENCE 4
Slide 4: Acquisition of Songa Offshore
ACQUISITION OF SONGA OFFSHORE Four New Contracted Fit-for-NCS Purpose Harsh Environment Semisubmersibles Designed by Statoil $3.9B in Contract Backlog into 2024 At least $40M in Annual Synergies; Improved Revenue Efficiency Opportunities Accretive on an EBITDA, Operating Cash Flow, and Net Debt / EB
Slide 5: Value of Songa Acquisition
VALUE OF SONGA ACQUISITION 6 Contract Backlog at 6/30/17* $4.1B Annual EBITDA from Backlog $0.4B Annual Cash Flow from Backlog $0.3B Total Transaction Consideration $3.4B P.V. Backlog** $2.1B Residual Value - Steel / Rigs*** $1.3B *Transocean announced transaction on August 15, 2017 **Assumes ~95% r
Slide 6: Harsh Environment Asset Valuations
HARSH ENVIRONMENT ASSET VALUATIONS 7 Songa’s CAT-Ds Bollsta Dolphin Stranded HE Semis at Shipyards In US$ millions Implied Steel Value / Initial Sales Price $312 $400 ~$500 Capital Spares and Inventory - 25 - 30 25 - 30 Project Management - 5 5 Norway Regulatory Compliance - 10 - 15 10 - 15 Tubulars
Slide 7: Floater Opportunities – Start Date Next Months
FLOATER OPPORTUNITIES – START DATE NEXT 18 MONTHS 1 2 17 2 1 1 1 1 5 2 3 2 6 1 1 2 1 1 2 1 2 2 2 3 5 2 1 U.K. / Norwegian North Sea - Two Most Active Markets Today <6 months 6-12 months >3 years 1-3 years Number of programs Independents NOCs IOCs 33 rig years to be awarded 8
Slide 8: Songa Furthers Our Leadership Position
SONGA FURTHERS OUR LEADERSHIP POSITION Pro Forma 49 $13.3B* $5.6B FLOATERS CONTRACT BACKLOG CURRENT LIQUIDITY SONGA FURTHERS OUR LEADERSHIP POSITION 9 Pro Forma EXPERIENCE >2x UDW >5x HE *As of third quarter 2017 public filings 9
Slide 9: Specification – Data Collection Objective & Data Driven
SPECIFICATION – DATA COLLECTION OBJECTIVE & DATA DRIVEN ~300 53 17,384 FLOATERS CATEGORIES DATA POINTS 10
Slide 10: Weighting – Tailored by Value – Subjective
WEIGHTING – TAILORED BY VALUE – SUBJECTIVE 11 Initial rankings can be adjusted by weighting measurement criteria Sets of defining vessel/rig characteristics Individual factors can be weighted to suit requirements Rig population ranked topto- bottom based on weighting 11
Slide 11: Weighting — Tailored by Value — Subjective
WEIGHTING — TAILORED BY VALUE — SUBJECTIVE [-|-[2]-1=] [-[4[)-|-] OGXOODRROS Hoobredooo. om ne
Slide 12: Ultra Deepwater
ULTRA DEEPWATER Dual Activity Dual BOPs, 7 Rams Passive + Active Compensation Hook Load BOP DP Class Vessel Age 13
Slide 13: Harsh Environment
HARSH ENVIRONMENT Activity WOW Survival Airgap Motion Characteristics Winterization Variable Deck Load Mud Capacity Dual Activity 14
Slide 14: Transocean Fleet Transformation
TRANSOCEAN FLEET TRANSFORMATION 15 April 2013 2017 Pro Forma Combined Fleet* * Includes rigs currently under construction • To date 39 floaters recycled with a continued focus on retiring older, less competitive assets • Rigs in the combined fleet will be re-ranked, which may result in additional ri
Slide 15: Transocean's Industry-Leading Backlog – Pro Forma Songa
TRANSOCEAN’S INDUSTRY-LEADING BACKLOG – PRO FORMA SONGA 16 0.4 1.9 1.4 1.0 1.0 0.7 0.7 2.3 0.2 0.7 0.7 0.7 0.6 0.6 0.4 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Remaining 2017 2018 2019 2020 2021 2022 2023 2024-28 Songa Offshore Transocean Pro Forma $13.3 Billion Contract Backlog of Combined Company* Over 90% wit
Slide 16: Current and Future Contracted Floaters
CURRENT AND FUTURE CONTRACTED FLOATERS 17 0 5 10 15 20 25 30 RIG / SONG Pro Forma RIG SDRL ESV DO NE SONG RDC # of Floaters Sources: Company Fleet Status Reports 17
Slide 17: Nine Floaters Contracted Through 2021 & Beyond
NINE FLOATERS CONTRACTED THROUGH 2021 & BEYOND “Important to note, RIG will now control all nine highmargin floater contracts in the public universe (excluding a few units owned by local Brazilian players) that were priced prior to the downturn and contracted long-term to the end of 2021 and beyond.
Slide 18: Transocean Reactivating for Contracts
TRANSOCEAN REACTIVATING FOR CONTRACTS 19 Henry Goodrich Deepwater Asgard Transocean Barents GSF Development Driller I Development Driller III 19
Slide 19: Our Assets Are Well Preserved
OUR ASSETS ARE WELL PRESERVED Preservation •De-humidification units installed •Volatile Corrosion Inhibitor (VCI) materials used •BOP rubbers removed and BOP filled with Stackguard •Scheduled cycling of critical equipment 20
Slide 20: Experience Beyond the Competition – UDW
EXPERIENCE BEYOND THE COMPETITION – UDW 21 0 50 100 150 200 250 300 350 Transocean Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Unmatched Deepwater Expertise DP Rig Years Experience - UDW Source data © 2017 IHS. All rights reserved. No IHS data/deliverables may be reproduced, reu
Slide 21: Experience Beyond the Competition – HE
EXPERIENCE BEYOND THE COMPETITION – HE 0 100 200 300 400 500 600 700 Transocean Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Unmatched Harsh Environment Experience Rig Years Experience - HE Source data © 2017 IHS. All rights reserved. No IHS data/deliverables may be reproduced, r
Slide 22: Predictability & Reliability
PREDICTABILITY & RELIABILITY Subsea Well Control – Targeted Improvement 23
Slide 23: Performance Through Collaboration
PERFORMANCE THROUGH COLLABORATION Benefits •Improving Uptime for Customers •Business Model Innovation •Reducing Total Cost of Ownership •Reliability-Centered Approach Blowout Preventer (BOP) 24
Slide 24: Performance Through Collaboration
PERFORMANCE THROUGH COLLABORATION Old Cost “unr we oe tow wn wat wn ten foe *Reliability-Centered Approach FS] @cameron Qornce Blow ou Peauasier GOP : NOyY R Bd mhwirth
Slide 25: Performance Through Data
PERFORMANCE THROUGH DATA 25 SIGNIFICANT IMPROVEMENT-UDW TRIPPING TIME Rate Ft/Hr Ave Rate Benchmark Rate Trendline Q3 ‘16 Q2 ‘17 Dedicated Ops Efficiency Calls Tableau Reports Performance Dashboard Phase I Launched ~45% Improvement in UDW Tripping Out Time Q1 ‘16 Q2 ‘16 Q4 ‘16 Q1 ‘17 Q3 ’17 26
Slide 26: Confidence in Contracting
CONFIDENCE IN CONTRACTING 2010 310 Days construction per well Flexible commercial models Integrated approach Performance alignment Efficient well delivery 27
Slide 27: Converting Backlog to Cash
CONVERTING BACKLOG TO CASH 10% 20% 30% 40% 50% 60% 70% 0 600 1,200 1,800 2,400 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 REVENUE & EBITDA Adjusted Normalized Adj Normalized Revenue Adj Normalized EBITDA Adj Normalized EBITDA Margin REVENUE EFFICIENCY Trailing 5 Quarters - 99% Total Flee
Slide 28: Strong Liquidity
STRONG LIQUIDITY 29 0.0 1.0 2.0 3.0 4.0 5.0 Cash at 9/30/17, Pro Forma Operations Cash Flow through 2019*** CapEx through 2019 Debt-Due through 2019 Projected Pro Forma Liquidity @ 12/31/19 US$ Billions *Transocean cash at 9/30/17 less net cash used for Songa transaction **Excludes Eksportfinans deb
Slide 29: Deepwater Competes with Land
DEEPWATER COMPETES WITH LAND $50 30
Slide 30: Cost Reductions Make Offshore Competitive with Onshore
COST REDUCTIONS MAKE OFFSHORE COMPETITIVE WITH ONSHORE Sourced: Morgan Stanley Research, April 2017; Rystad Energy, April 2017 Feb 2017: Shell says breakeven cost of production out of its Gulf of Mexico Kaikias development will be less than $40 per barrel, which is roughly the breakeven price for in
Slide 31: Offshore and Onshore Wells Differ
OFFSHORE AND ONSHORE WELLS DIFFER 0 1 2 3 4 5 6 7 8 9 10 100% 80% 60% 40% 20% 0% 7000 6000 5000 4000 3000 2000 1000 0 GOM Deepwater, US (boe/d) GOM Shelf, US (boe/d) Wolfcamp Shale Onshore (boe/d) GOM Deepwater, US (% IP) GOM Shelf, US (% IP) Wolfcamp Shale Onshore (% IP) Offshore wells characterize
Slide 32: Floater Contracting Activity Is Returning
FLOATER CONTRACTING ACTIVITY IS RETURNING 0 5 10 15 20 25 30 35 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Historical Offshore Rig Contracts Awarded Super Major National Independent Source data © 2017 IHS. All rights reserved. No IHS data/deliverables may
Slide 33: Harsh Environment Activity Accelerating
HARSH ENVIRONMENT ACTIVITY ACCELERATING As of October 2017 Expected Awards Stacked – Estimated reactivation costs and time of $35M-$40M and ~90 days H.E. Fleet - Contract Status Source data © 2017 IHS. All rights reserved. No IHS data/deliverables may be reproduced, reused, or otherwise distributed
Slide 34: Songa Furthers Our Leadership Position
EXPERIENCE 49 $13.3B* $5.6B FLOATERS CONTRACT BACKLOG CURRENT LIQUIDITY SONGA FURTHERS OUR LEADERSHIP POSITION Pro Forma >2x UDW >5x HE * As of third quarter 2017 public filings 35
Slide 35: Investor Meetings
INVESTOR MEETINGS November 2017
Slide 36: Investor Meetings
INVESTOR MEETINGS. November 2017 |