Vantage Drilling Company · OTC:VTGDF
Vantage Drilling — 2014 Johnson Rice Energy Conference
18 slides from Vantage Drilling's conference presentation, Oct 3, 2014
Slide 1: Vantage Drilling Company
Exhibit 99.1 Vantage Drilling Company 2014 Johnson Rice Energy Conference New Orleans, Louisiana October 1, 2014
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: Company Overview
Company Overview NYSE VTG Market Cap $434 Million Book Value $545 Million Enterprise Value $3.3 Billion Employees >1,300 Vantage Offices 4 Jackups 3 Drillships, plus 1 under Construction
Slide 4: Highlights
Highlights . . . Repaid $57 million of debt in Q2 and $30 million in Q1; on target for approximately $50 million reduction per quarter for the balance of 2014 Ultra-Deepwater Fleet fully contracted through 2015 Ultra-Deepwater drillship, Cobalt Explorer, under construction will provide continued gro
Slide 5: Strategic Overview
Strategic Overview Vantage was founded with a vision of bringing the best people together with the highest specification, modern fleet in Experienced the offshore drilling industry. People High With exceptional operating performance Financial and a focus on service, we have built an Structure Specif
Slide 6: Our People
Our People • Industry leading safety record – Lost time incident rate in 2013 and 2012 were .32 and Our senior management team .00, respectively, as we completed averages over 30 years of approximately 2.5 million and 2.2 million Industry experience man-hours The cornerstones of our Jack-up fleet ha
Slide 7: High Specification Assets
High Specification Assets High-specification drillships combined with deep in-house We have built a fleet of new, premium operations and technical teams, have been the key to assets that our customers demand now and awards to Vantage of high-profile, complex, ultra- for the future. deepwater project
Slide 8: Market Conditions
Market Conditions Near Term • Deliveries of newbuild rigs have saturated the marketplace and are negatively impacting pricing. • Because of ready availability of rigs (from added supply), customers are not contracting rigs as far in advance as they had previously. • Shift in global spending to natio
Slide 9: Market Conditions
Market Conditions Longer Term • Global demand for oil & gas continues growth Continued Growth Cycle driven by emerging economies with long-term forecast for increase E&P spending. • Success in deepwater and ultra-deepwater exploration should provide the map to future growth as developmental drilling
Slide 10: Strong Customer Backlog
Strong Customer Backlog We have focused our marketing efforts on customers with long-term drilling requirements $2.5 Billion of backlog with with the opportunity for long-term contracts strong customer base: 4% IOC 17% NOC 79%
Slide 11: Fleet Status
Fleet Status Customer backlog of approximately $2.5 Billion provides visibility to cash flows Ownership 2013 2014 2015 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 $165,000 (net) $183,000 (18 months) Aquamarine Dril
Slide 12: Significant Growth Achieved
Significant Growth Achieved Revenue Income from Adjusted EBITDA Operations $363.5 $800.0 $732.1 $375.0 $300.0 $256.9 $600.0 $300.0 $485.8 $471.5 $225.0 $216.0 $146.6 $225.0 $176.0 $400.0 $150.0 $110.2 $278.4 $150.0 $75.0 $46.9 $81.8 $200.0 $111.50 $18.4 $75.0 $30.2 $- $- $- 2009 2010 2011 2012 2013
Slide 13: Progress on Financial Targets
Progress on Financial Targets Long Term Contracts provide visibility to cash flow to support our leverage reduction objectives Strong projected EBITDA and Earnings Are • 1H 2014, with our 7 operational assets all Contracted working, we reported record Revenue, $600.0 Actual Projected EBITDA and Inco
Slide 14: Debt Maturities and Leverage
Debt Maturities and Leverage Debt Maturities • No significant debt maturities until 2017 • Cash flow from operations projected to cover all debt service through 2018 • Increased leverage over last 2 years has been to fund deployment of Titanium Explorerand Tungsten Explorer • As current fleet is all
Slide 15: Appendix
Appendix Historical Financial
Slide 16: Statement of Operations
Statement of Operations ($ in millions) December 31,December 31, December 31, Six Months Ended 2011 2012 2013 30-Jun-14 Net income and cash flow REVENUE Contract Drilling Services $ 366.8 $ 423.8 $ 666.2 $ 413.2 from operations is increasing Management Fees 13.7 6.6 14.6 10.6 significantly for Vanta
Slide 17: Balance Sheet
Balance Sheet ($ in millions) December 31, December 31, December 31, June 30, 2011 2012 2013 31-Mar-14 The Debt to EBITDA leverage Cash and cash equivalents $ 117.0 $ 506.2 $ 56.8 $ 89.0 will continue to reduce as Trade receivables 100.9 119.5 168.7 154.7 Vantage realizes full year Inventory, prepai
Slide 18: EBITDA Reconciliation
EBITDA Reconciliation ($ in millions) December 31, December 31, December 31, Six Months Ended 2011 2012 2013 30-Jun-14 Net Income (Loss) $ (80.0) $ (145.3) $ (81.8) $ 35.0 Interest Expense, Net 154.8 149.0 214.0 108.7 Income Tax Provision 11.4 18.9 28.1 27.7 Depreciation 64.5 68.7 106.6 63.3 Loss on
Vantage Drilling — 2014 Johnson Rice Energy Conference on 6ix