Slide 1: Q4 2023 trading update and 2024 outlook
Archer The Well Company Q4 2023 trading update and 2024 outlook 26.01.2024
Slide 2: At a glance
A At a glance The Well Company 117m $1,169m $ $1.7bn 2023 revenue Aopen) Contract backlog reported 50 years 40 4,800+ Operational experience Locations globally Global personnel 2) Carbon neutral since '22 Scope 1 & 2 outside Argentina and Bolivia Ae Skindlo Chief Executive Officer Spen Joranger Chie
Slide 3: Disclaimer - forward looking statements
Disclaimer - forward looking statements Cautionary Statement Regarding Forward-Looking Statements In addition to historical information, this presentation contains statements relating to our future business and/or results. These statements include certain projections and business trends that are “fo
Slide 4: Strong quarter, significant growth and deleverage set to continue
Strong quarter, significant growth and deleverage set to continue Strong Q4 and full year Improved Positive 2023 leverage ratio outlook for 2024 Full year EBITDA: Leverage ratio 2023 year-end: EBITDA growth: $117 million (+36% Y/Y) 2.9x 15-20% Q4 Adjusted EBITDA: Leverage ratio: $33 million (+14% Y/
Slide 5: Continued strong financial performance in Q4
Continued strong financial performance in Q4 Revenue of $305 million; up 15% YOY Adjusted EBITDA of $33.4 million; up 14% YOY EBITDA of $30.9 million, or 10.1% of revenue EBIT-margin of 5.5%, totaling $16.9 million EBITDA-growth of 10% in average each quarter since Q1 2022 Subsequent event Award of
Slide 6: 2023 Summary
A 2023 Summary Archer grew EBITDA by 36% in 2023 and delevered to 2.9 Revenue of $1,169 million; up 20% YOY EBITDA of $116.8 million; up 36% YOY EBIT of $64.7 million; up 121% YOY Exceeded upper range of our financial guidance for 2023 Refinanced and leverage at 2.9 at year-end Expanded P&A portfoli
Slide 7: Delivered ahead of our 2023 promises
Status Delivered ahead of our 2023 promises 1 2 3 4 5
Slide 8: Deleverage through growth, equity issuance and positive cashflow
EBITDA ($m) Deleverage through growth, equity issuance and positive cashflow • • • • • NIBD ($m) and leverage ratio • • •
Slide 9: Market outlook and 2024 guidance
Market outlook and 2024 guidance 9
Slide 10: Market outlook
A Market outlook Well-positioned in segments with attractive long-term outlook UK eK te Ce. =o. ne International Norway F Argentina 1) Mediumsterm growth outlook inv Strong growth as we expand service offering and growing P&A market * Production focused with intervention and workover services + Inte
Slide 11: Positive market fundamentals for Archer's P&A service offerings for decades
A Positive market fundamentals for Archer’s P&A service offerings for decades Total offshore decom. spend exceeding $200B Global offshore decom. set to double $32B in North Sea offshore decom before 2040 49 Mea [12 +55%, Denmark R [ney Y Hl Norway ussia [3 uk Sy Mux Australia 2 Archer Fulmar Scope L
Slide 12: Contract value $165 million, 4-5 years contract
• • Contract value $165 million 4-5 years contract 32 wells to be P&A Key collaboration with partners 12
Slide 13: The broadest full scope P&A offering in the industry today
A The broadest full scope P&A offering in the industry today Innovating for the future RIGLESS LWIV Ptatlorm Dnling ‘Coneacor surtadPrenta Q@ rro¥s —comeyarce en) rch Actes: eratles OFFLINE (Derek Aches ( @ seov eran @ tenes oO Webore Clearing Wetbore Gearing Surface enablers — units (MPB) Surface,
Slide 14: Platform Operations: ~50% market share on platforms in the North Sea
A Platform Operations: ~50% market share on platforms in the North Sea Platform Operations is production and late life operation Resilient EBITDA ($m) 50 50 * North Sea focused operation based on long-term contracts with operators * Stable annual cash contribution! of about $40m during the last four
Slide 15: Well services: Continued growth and margin expansion
Well services: Continued growth and margin expansion Intervention service and technology for well integrity and well performance * Strong EBITDA growth 2017-2023 with CAGR of 29%, of which 26% is organic * Consistent EBITDA margin expansion as we grow internationally and increase high end service of
Slide 16: Land Drilling: Robust growth in improving market
A Land Drilling: Robust growth in improving market Key highlights EBITDA and EBITDA margin from Land Drilling operations ($m) 39 * Leading position as the largest provider of land drilling and EBITDA workover services in Argentina — EBITDA margin * Attractive oil & gas resources in place in Vaca Mue
Slide 17: $125 million contract awards in Argentina
$125 million contract awards in Argentina Pan American Energy contract 1 • Cerro Dragon Field • • • Pan American Energy contract 2 • • • •
Slide 18: 2024 guidance by segment
Figures in USD million ▪ ▪ ▪ ▪ ▪ ▪ Land Drilling Platform Operations Well Services All numbers estimates assumes stable USD/NOK and GBP/USD
Slide 19: The Archer investment opportunity
A The Archer investment opportunity Key takeaways * Significant EBITDA growth as catalyst for value creation « Leverage, expected to be halved by 2024 from 2022 * Limited market downside with brownfield and growing P&A long term exposure * Current valuation-multiples well below historic averages for
Slide 20: Appendix
Appendix
Slide 21: Archer strategy remains firm
Archer strategy remains firm 1 Develop and grow North Sea brownfield and P&A operations 2 Grow selective international regions 3 Grow and develop Land Drilling business with own resources 4 Develop sustainable renewable business lines - Geothermal first focus 5 Create shareholder value through growt
Slide 22: Platform Operations
Vv || 9) Platform Operation Platform Drilling Modular P&A ¥ “=S4 : “i Rigs = = : = ~ Archer well positioned witha Raker ‘ Engineering combination of drilling anda broad Well “ z services offering for production and, ~ aes decommissioning of wells uliys ial OneArcher operating model brings — integrat
Slide 23: Land Drilling
Iceland Diillingae } My 7 ng Drilling tigs conventional and unconventional drilling in Argentina and Bolivia Pullingranits: deliver pulling services to maintain production i producing wells WOTKOVEnTIGS provide heavy well intervention services to improve well *-Geothermal District-heating Carbon sto
Slide 24: Well Services
A Well Services Revenues ($m) EBITDA $m) Financials 15% 85 ' 5 + Revenue decreased by 10% over the 80 quarter, ending at $74.7 million 14 5 7 B + Compared to same quarter last year, 70 EBITDA grew by 77%. Total year EBITDA fa 12 increased by 57% 60 ul * EBITDA decreased by 7% from previous 55 10 qua
Slide 25: Platform Operations
A Platform Operations Financials Revenues ($m) EBITDA ($m) +27% B y + Revenue increased by 9% over the quarter, io iB ending at $151.2 million 140 ts - / 12 + EBITDA increased by 10% from previous 120 quarter, to $14.9 million, based on fall 10 . 100 through from increased activity and final 8 posit
Slide 26: Land Drilling
A Land Drilling Financials Revenues ($m) EBITDA ($m) 100 aM * Revenue reduced by 2.3 % to $78.2 million 80.2 80.2 80.0 782 compared with previous quarter, following the eo 10 sharp depreciation of ARS in December 60 8 * Revenue reported in USD will fluctuate when 40 6 inflation and devaluation diver