Vantage Drilling Company · OTC:VTGDF
Vantage Drilling — Wells Fargo 2013 Energy Symposium
21 slides from Vantage Drilling's conference presentation, Dec 11, 2013
Slide 1: Vantage Drilling Company – Wells Fargo 2013 Energy Symposium
Exhibit 99.1 Vantage Drilling Company Wells Fargo 2013 Energy Symposium New York December 11, 2013
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: Corporate Overview
Corporate Overview Symbol: VTG (NYSE MKT) Location: Houston (Headquarters), Singapore, Dubai Market Cap: $551 million ($1.82 per share) Enterprise Value: $3.5 billion Employees: > 1,100 Contract Backlog: approximately $3.1 billion Owned Fleet: 4 Ultra-Premium Jackups (operating in SE Asia & West Afr
Slide 4: Recent Developments
Recent Developments Took delivery of UDW drillship Tungsten Explorer on July 11, 2013. Commenced operations on first contract September 20, 2013. Contracted 50 days in Myanmar Contracted 120 days in Malaysia Contracted 45 days in Gabon Contracted 2 years (plus 4 x 6-month options) in Congo (Moho Nor
Slide 5: Vantage Strategic Focus
Vantage Strategic Focus Right Right People To provide the long-term Assets value to our shareholders, we must provide the right people and the right assets. The right customers have long-term business Shareholder opportunities that provide Value sound cash flow necessary to achieve the right financi
Slide 6: Right People
Right People Our senior management team averages over 29 years of Industry experience. The cornerstones of our corporate culture are safety and professionalism. • Industry leading safety record – in 2012, we completed over 2.2 million man-hours with 0 lost time incidents, • Jack-up fleet has achieve
Slide 7: Right Assets
Right Assets We have built a fleet of new, premium assets that our customers demand now and for the future. • Premium high-specification drilling units, including four jackup rigs and three drillships. Total costs of owned fleet of approximately $3.2 billion. • High-specification drillships, combine
Slide 8: Ultra-Deepwater Bifurcation – Vantage Has High-Spec Drillships
Ultra-Deepwater Bifurcation – Vantage Has High-Spec Drillships Platinum Explorer Titanium Explorer Tungsten Explorer Cobalt Explorer Palladium Explorer Derrick Load Paths – - 2x Activity - 1.5x Activity Draw Works (HP) 4,500 6,000 9,000 9,000 / 6,000 11,200 / 6,000 Hook Load (tons) 1,000 1,250 1,250
Slide 9: Premium Fleet with a Proven Track Record
Premium Fleet with a Proven Track Record Owned Assets Management Projects Newbuild Ultra-Premium Marine Pacific Class 375 Jackups Construction Management Emerald Driller Sapphire Driller Topaz Driller Aquamarine Driller Mexican Operator Sonangol drillships Hired by newly formed 2 x “V ships” UDW Del
Slide 10: Strong Demand for Deepwater Assets
Strong Demand for Deepwater Assets Continued Growth Cycle “Investments in global deepwater exploration are predicted by Wood Mackenzie to more than double from last year’s level of $43 billion to as much as $114 billion by 2022, driven by the need to find the world’s remaining hydrocarbons in greate
Slide 11: Jackups
Jackups • Modern, high-spec jackups have been, and continue to be essentially fully contracted • Customers have strong preference for modern, high-spec jackups • We believe the market will easily absorb additional newbuilds for quite some time. 115 Jackups Under 315 Construction Jackups >25 yrs old
Slide 12: Spending Trends
Spending Trends Industry spending trends remain positive for continued strong demand for offshore drilling. Continued E&P Spending Growth Over Half of E&P Spend is Offshore 12
Slide 13: Right Customers
Right Customers We have focused our marketing efforts on customers with long-term drilling requirements providing the opportunity for long-term contracts. Three of our jack-ups are currently working for repeat customers. We currently have over $3.1 billion of backlog. We have continuously improved o
Slide 14: Customers Provide Strong Backlog
Customers Provide Strong Backlog Customer backlog of approximately $3.1 Billion provides visibility to cash flows Ownership 2012 2013 2014 Rig % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jackups Emerald Driller 100% $130,000 $156,000 (2 years) Sapphire Driller 100% $120,000 (net of taxes) $165,000 (net) 1
Slide 15: Right Financial Structure
Right Financial Structure Our financial leverage is counter-balanced by a strong contract backlog and long-term visibility of cash flows. We have refinanced our senior debt – Staggered maturities through 2023, Added flexibility to pre-pay debt without premiums, Reduced annual cash interest costs by
Slide 16: Strong Growing Cash Flow to Service Debt
Strong Growing Cash Flow to Service Debt Long-term contracts provide visibility to cash flow to support existing leverage. Investments made to-date generating favorable returns for the future. Majority of Projected EBITDA is Contracted $600.0 Actual Projected Commencing Q4 2013 $400.0 Vantage has $2
Slide 17: Strategic Focus
Strategic Focus Near Term Next Steps Debt Refinancing – DONE • Deployment of Cobalt Explorer – Aug. 2015 Titanium Explorer back to full day rate – • Deployment of Palladium Explorer (42% VTG) DONE • Accelerating reduction of debt / improved debt Tungsten Explorer contract commencing statistics and r
Slide 18: Historical Financial
Appendix HISTORICAL FINANCIAL 18
Slide 19: Balance Sheet
Balance Sheet ($ in millions) December 31, December 31, For the Quarter Ended 2011 2012 31-Mar-13 30-Jun-13 30-Sep-13 Cash and cash equivalents The Debt to EBITDA leverage $ 117.0 $ 506.2 $ 460.5 $ 443.8 $ 71.1 Trade receivables 100.9 119.5 101.9 107.9 144.9 ratio will continue to reduce as Inventor
Slide 20: Statement of Operations
Statement of Operations ($ in millions) December 31, December 31, For the Quarter Ended 2011 2012 31-Mar-13 30-Jun-13 30-Sep-13 REVENUE Contract Drilling Services $ 366.8 $ 423.8 $ 134.7 $ 155.8 $ 158.9 Net income and cash flow from Management Fees 13.7 6.6 3.2 2.4 3.9 operations is increasing Reimb
Slide 21: EBITDA Reconciliation
EBITDA RECONCILIATION ($ in millions) December 31, December 31, For the Quarter Ended 2011 2012 31-Mar-13 30-Jun-13 30-Sep-13 Net Income (Loss) $ (80.0) $ (145.3) $ (123.2) $ 4.2 $ 6.8 Interest Expense, Net 154.8 149.0 59.6 51.2 47.4 Income Tax Provision 11.4 18.9 5.6 7.1 4.1 Depreciation 64.5 68.7