Seadrill Limited · NYSE:SDRL
Seadrill — Investor Presentation (September 2019)
16 slides from Seadrill's investor presentation, Sep 3, 2019
Slide 1: Finding Value in an Improving Market
Finding Value in an Improving Market 3 September 2019 Exhibit 99.1
Slide 2: We have prepared this document solely for informational purposes. You should not definitively rely
We have prepared this document solely for informational purposes. You should not definitively rely upon it or use it to form the definitive basis for any decision, contract, commitment or action whatsoever, with respect to any proposed transaction or otherwise. The information contained herein inclu
Slide 3: Seadrill at a Glance
SEADRILL AT A GLANCE We have drilled over 2500 wells in every major oil and gas basin in the world $1.9bn backlog with a premium customer base 40 newbuilds delivered since 2007 (across all asset classes) Over Better than IADC safety average over the last 5 years Leaders in safety… …as well as delive
Slide 4: Our franchise: rigs, management & investments
Non-drilling Investments Group Rigs 19 floaters 16 jack-ups 8 floaters 3 tenders 5 jack-ups 4 floaters1 5 jack-ups2 5 floaters Well services, land, and platform drilling 6 PLSV’s Backlog3 $1.9 billion $697 million $1.0 billion - $656 million $345 million - $1.5 billion Ownership 65% (Economic Intere
Slide 5: Capital Structure and Liquidity
Capital Structure and Liquidity Cash of $1.5 billion No debt amortisation payments until 2020, with the ability to defer up to 2021 using ACE No debt maturities until June 2022 No financial covenants until 2021, other than minimum liquidity Net leverage and DSCR** covenants in 2021 only affect borro
Slide 6: The offshore barrel is well positioned
Source – Rystad Ucube, BP Energy Outlook 2019 Offshore barrels critical to meet future demand Total Liquids Supply and Demand Million Barrels of oil per day Offshore break-evens competitive with Shale Cumulative liquids supply cost curve USD/Barrel -4% Deepwater/ Ultra-Deepwater 10.7mmb/d production
Slide 7: The offshore barrel is well positioned
Source – Rystad Ucube, BP Energy Outlook 2019 Offshore barrels critical to meet future demand Total Liquids Supply and Demand Million Barrels of oil per day Offshore break-evens competitive with Shale Cumulative liquids supply cost curve USD/Barrel -4% Deepwater/ Ultra-Deepwater 12.5mmb/d production
Slide 8: The recovery is progressing
The recovery is progressing Source: IHS Markit Rigpoint, Seadrill Analysis Benign Environment Floaters Premium BE Jack-ups1 Harsh Environment Floaters Key: Linear trend line (fixtures awarded July 2017 – June 2018) Bubble size represents contract duration (rig-days)
Slide 9: The recovery is progressing
The recovery is progressing Source: IHS Markit Rigpoint, Seadrill Analysis Benign Environment Floaters Premium BE Jack-ups1 Harsh Environment Floaters Key: Linear trend line (fixtures awarded July 2018 – June 2019) Bubble size represents contract duration (rig-days)
Slide 10: Deepwater pricing dynamics
Deepwater pricing dynamics Illustrative dayrates: Reactivating cold-stacked rigs >$300k2 Current <$250k 79% Marketed utilization No. of rigs1 Source: IHS Markit Rigpoint, Seadrill Analysis
Slide 11: Common themes: Discipline and contract terms
Common themes: Discipline and contract terms “customers are once again providing downtime, and reimbursements for mobilization and demobilization.” “No reactivations unless good return for stakeholders” “We have established a very high bar for reactivating an asset at this point in time” “where ther
Slide 12: Delivering in an improving market
AOD I Saudi Aramco 3 year extension West Phoenix Equinor, UK & Norway 2 x contract award West Neptune LLOG, GoM Extension + contract award West Gemini West Africa Extension + contract award West Saturn Equinor, Brazil Option exercise West Hercules Equinor, Norway 2 x contract award West Carina Petro
Slide 13: Creating value through Joint Ventures
aa Creating value through Joint Ventures Improved access to market High growth regions Strengthens customer relationships Day 1 cash flow and future dividend potential Limited upfront investment Potential for growing asset base $656 million in total contract value for GDI, option value of $700 milli
Slide 14: Technology that will shape our industry
Technology that will shape our industry Condition-based Maintenance Predicts failures before they happen Reduced overhaul interval results in lowered maintenance spend Reduces out of service time for major maintenance BOP Remote monitoring Developed in-house, at low cost BSEE approved, meets regulat
Slide 15: Our investment proposition
Our investment proposition Large and modern fleet Proven track record Capital, cost and contract discipline Leveraged play on the recovery
Slide 16: Appendix
Appendix UDW fleet based on rigs classified by IHS Markit Rigpoint as of August 2019, as ‘Competitive’, and capable of operating in water depths > 7500ft Estimate based on unlevered free cash flow, two-year pay-back period, $75m investment cost (includes reactivation cost, SPS, and operations prepar