Borr Drilling Limited · NYSE:BORR
Borr Drilling — Barclays CEO Energy-Power Conference 2023
13 slides from Borr Drilling's conference presentation, Sep 6, 2023
Slide 1: Barclays CEO Energy-Power Conference
BARCLAYS CEO ENERGY-POWER CONFERENCE Patrick Schorn - CEO September 6, 2023
Slide 2: Legal Notice
Legal Notice Forward Looking Statements This presentation and related discussions includes forward looking statements as defined in the Private Securities Litigation Reform Act of 1995, which may be identified by words such as "continue", "estimate", "expect", "illustrative," "intends", "may", "proj
Slide 3: A Leading Pure Play Modern Jackup Fleet
A Leading Pure Play Modern Jackup Fleet Company & Global Presence 22 0 2 Fleet Modern People Fleet Contracted Warm Stacked Under construction 24 ~6yr 2,250 (offshore) Premium rigs1 Average Age 300 (onshore) 1 Fleet Contract Adjusted Utilization2 Backlog3 EBITDA Margin4 7 5 100% $1.83bn 45% 3 6 2 Sou
Slide 4: Strong Experience and Portfolio
Strong Experience and Portfolio Increased NOC Exposure Currently 2 out of 3 backlog days are with NOCs (vs. 2 out of 5 in 2019) 4
Slide 5: Jackup Market is Tight with Modern Rigs in Short Supply
Jackup Market is Tight with Modern Rigs in Short Supply Utilization back at 2014 levels Modern rigs taking the lion’s share of demand 100% 350 93.7% 95% 300 90% 250 85% 80% 200 75% 150 70% 100 65% 60% 50 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2015 2016 2017 2018 2019 2020 2021 2022 2
Slide 6: The Global Jackup Fleet at a Glance
The Global Jackup Fleet at a Glance 90 80 Over 30% of the jackup fleet is 30+ years 70 60 50 Over 150 # of Rigs jackups retired from the fleet since 2015 40 30 20 38 years average age of retired rigs 10 0 12-15 15-18 18-21 21-24 24-27 27-30 30-33 33-36 36-39 39-42 42-45 45-48 48-51 51-54 54-57 9-12
Slide 7: Orderbook Insufficient to Address Demand
Orderbook Insufficient to Address Demand 160 Orderbook 30% Reduced Supply Orderbook as % of Total Fleet 20 rigs under construction remain in the yard 140 (vs. 29 at 2021YE and 49 at 2020YE) 25% 4 rigs under construction have future contracts or 120 are owner-operated 20% 100 Limited New Capacity Sev
Slide 8: Set to Deliver Strong Results
Set to Deliver Strong Results Market Rates Sharply Improving for Modern Rigs Higher Rates and Activity Levels Lifting Adjusted EBITDA Adjusted EBITDA and Average Operating Rigs 300 90 24 84.0 80 250 72.4 22 21.3 70 19.9 20.0 200 60 19.6 20 55.1 Dayrate (USDk/day) USDm 50 # Operating Rigs 150 43.9 18
Slide 9: Solid Fleet Coverage at Market Leading Rates
Solid Fleet Coverage at Market Leading Rates % contract coverage and average dayrate1 100% 90% 75% Coverage @ 129k/d 80% 70% 53% Coverage @ 130k/d 60% 50% 40% 30% 8% Coverage 20% @ 133k/d 10% 0% 2024 2025 2026 - 2028 Firm Contract Priced Option Unpriced Option + Open Coverage Source: Company data as
Slide 10: Illustrative Adjusted EBITDA
Illustrative Adjusted EBITDA 2024 2025 2026 Illustrative rig days available days 8,143 8,760 8,760 1 Contracted Revenue Backlog pct. 75% 53% 18% 2 Average Backlog Dayrate $/day 129 130 125 3 Contracted Revenue Backlog $m 751 573 185 Uncontracted Coverage 25% 47% 82% Illustrative Scenarios 150k/d 175
Slide 11: 2024 Adjusted EBITDA Expected to Enable Refinancing
2024 Adjusted EBITDA Expected to Enable Refinancing $1,389m Less than 3x secured debt/Adjusted EBITDA $500 - 550m Secured debt per Q2 23 2024 Adjusted EBITDA guidance All 22 delivered rigs are activated and on contract – already 75% contract coverage for 2024 Current $150m secured bond due 2026 trad
Slide 12: In Conclusion
In Conclusion Strong Q2 2023 45% Adj. EBITDA margin Earnings fall through of 75% on the additional revenue Q-on-Q Backlog quality improving with higher dayrates Premium assets Premium pricing The refinance of 2025 debt maturities is a key priority 2024 Adjusted EBITDA forecast expected to enable ref
Slide 13: Built to Make a Difference
BUILT TO MAKE A . DIFFERENCE vt » Borr ” Drilling < » <
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