Seadrill Limited · NYSE:SDRL
Seadrill — Barclays CEO Energy & Power Conference 2018
23 slides from Seadrill's conference presentation, Sep 5, 2018
Slide 1: Seadrill Investor Presentation – Barclays CEO Energy & Power Conference
Seadrill Investor Presentation Barclays CEO Energy & Power Conference, New York 05 September 2018 Exhibit 99.1
Slide 2: Disclaimer
Disclaimer 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 h
Slide 3: Agenda
Agenda Restructured and strengthened balance sheet Our business Market development Investment proposition
Slide 4: Restructured and strengthened balance sheet
Restructured and strengthened balance sheet
Slide 5: Restructured and strengthened balance sheet
c.$6 billion of debt and other liabilities removed Raised $1.08 billion of fresh capital $880 million of New Secured Notes $200 million of New Equity $2.1 billion cash at emergence $1.6 billion unrestricted No Financial covenants until 2021 other than Minimum Liquidity No bank facility maturities un
Slide 6: Our business
Seadnill Our business
Slide 7: Our business
Notes Market cap as of as of 03 September 2018 for Seadrill Partners, and as of 1 June 2018 for Archer In April 2017 Seadrill converted a subordinated loan made to Archer into a $45MM convertible note. The convertible note has an annual PIK coupon of 5.5%, matures in 2021 and has a conversion price
Slide 8: Our joint ventures and investment holdings
Our joint ventures and investment holdings 50/50 joint venture with Sapura Energy 6 Pipelay Support Vessels $1.8 billion of backlog with Petrobras Debt of $1.1 billion and cash position of $470 million 50/50 joint venture with Fintech 5 high-spec jack-ups $1.3 billion of backlog with PEMEX as of Aug
Slide 9: Improving our competitive position
Improving our competitive position Integrated Services Full suite of third party services e.g. ROV, casing, cuttings, logistics Managed Pressure Drilling First Column Stabilized Drilling Unit to receive the ABS MPD notation Integrated Performance Management Data driven operational efficiency improve
Slide 10: Securing new contracts
West Cressida Working for Ophir Energy, Thailand Starting July 2018 West Tucana Working for GDI, Qatar Starting October 2018 Securing new contracts West Gemini Working for Eni, Angola Recently excised options on 3 wells Starting January 2018 West Neptune Working for LLOG, US-GOM Recently added 1 yea
Slide 11: Market development
Seadnill Market development
Slide 12: Market showing signs of a recovery
…Market showing signs of a recovery… Sources: Rystad Energy, IHS Markit Rigpoint …as is contracting activity… …and utilization Upstream spending is increasing… Upstream E&P Spend (CAPEX) $ billion (as of May 2018) Fixture Awards # awards Total Fleet Utilization %
Slide 13: Reflected in increased contracting activity
…and this is reflected in increased contracting activity Source: IHS Markit Rigpoint Benign Environment Floaters Premium Jack-ups1 Key: Bubble size represents contract duration (rig-days) Harsh Environment Floaters Notes Benign environment jack-ups capable of operating in +350 ft water depths
Slide 14: Investment proposition
Seadnill Investment proposition
Slide 15: Our investment proposition
Our investment proposition Scale with a modern fleet Competitive cost structure Proven track record of safe and efficient operations Restructured balance sheet provides five year runway and enables contracting discipline
Slide 16: Scale: significant global presence
Scale: significant global presence 4300 employees in 24 countries Corporate office in London, with 2 Hemisphere offices / 2 Technical Service Centers covering all major offshore markets HE Floaters2 Ultra Deepwater Floaters Tender rigs Jack-ups Corporate and Hemisphere Offices Technical Services Cen
Slide 17: Scale: large and modern fleet
Number of Rigs1 Scale: large and modern fleet Seadrill and Peer Group Fleet Fleet Average Age4 (3) (3) (2) Sources: Company filings, IHS Markit Rigpoint Notes Excludes newbuilds Seadrill fleet figures include rigs owned by Seadrill Ltd. (excluding 9 newbuilds), and those managed on behalf of Seadril
Slide 18: Scale: focused in the right markets
Scale: focused in the right markets Sources: Company filings, IHS Markit Rigpoint Harsh Environment Floaters Premium Jack-ups3 6th & 7th Generation Floaters (4) 94 % Total Floater Fleet % Total Jackup Fleet % Total Floater Fleet 49 86 41 95 74 54 83 88 83 81 100 100 82 36 23 29 9 17 18 100 (1) (1) 5
Slide 19: Competitive cost structure
Competitive cost structure Sources: Company filings, Seadrill Opex Model All-in operating cost per rig1 $k/day 2 Notes: All-in operating cost per rig comprises reported vessel and rig opex, reimbursable expenses, and G&A (less any restructuring costs); assumes a ratio for daily vessel and rig opex b
Slide 20: Proven track record of safe and efficient operations
Technical Utilization (%) Proven track record of safe and efficient operations Total Incident Frequency & Total Recordable Incident Frequency
Slide 21: Restructured balance sheet: enables contracting discipline
Restructured balance sheet: enables contracting discipline 5-year financial runway No debt maturities until June 2022 No debt amortisation payments until Q1 2020, with the ability to defer up to Q2 2021 No financial covenants until Q1 2021, other than minimum liquidity Net leverage and DSCR covenant
Slide 22: Positioning for the recovery: illustrative returns
Positioning for the recovery: illustrative returns Illustrative Return Sensitivity Increase in equity value resulting from a 10% change in enterprise value ENTRY POINT $ million per floater equivalent Illustrative Equity Returns 250 % % % % % % % Increase in equity value vs change in asset value1 %
Slide 23: Summary
Summary Strongly believe in an offshore market recovery Proven track record of safe and efficient operations Competitive on cost Well positioned, asset, balance sheet and liquidity wise Ability to deploy our assets intelligently and leverage the recovery
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