S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Pareto Offshore Drilling Conference 2011
16 slides from S.d. Standard Etc's conference presentation, Jun 6, 2011
Slide 1: Pareto Offshore Drilling Conference
SD Standard Drilling Plc Pareto Offshore Drilling Conference June 6th & 7th 2011
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by S.D. Standard Drilling Plc (the “Company” or “Standard Drilling”) solely for use at the presentation to investors and other stake holders and may not be reproduced or redistributed, in whole or in part, to any other person. This presentation is str
Slide 3: Standard Drilling
Standard Drilling Largest Pure Play Premium Experienced Board with Jackup Company Strong Track Record Strategically Positioned to Premium Rig and World Class Capitalize on Rising Dayrates Yard and Fleet Renewal Superior Delivery Schedule Source: Company 3
Slide 4: Standard Drilling Overview
Standard Drilling Overview Founded in December 2010 Background Listed on the Oslo Axess in March 2011 Experienced board with strong track record Seven Keppel FELS Mod V B jackups ordered from Keppel FELS in Singapore All rigs possess 20/80 financing and fully financed until delivery of 1st
Slide 5: Value Added Investor Group
Value Added Investor Group ¾ Experienced investment firm with substantial rig ¾ Private equity firm with solid track record in Asia experience ¾ Experienced in building businesses ¾ Successfully invested in 16 rig projects ¾ Actively involved in Standard Drilling ¾ Actively involved in Standard Dril
Slide 6: Experienced Board of Directors
Experienced Board of Directors Øystein Stray Spetalen Robert Petty ¾ Chairman and owner of Ferncliff TIH AS ¾ Managing Partner and Co‐Founder of Clearwater Capital Partners ¾ Co‐Founder and Director of Standard Drilling ¾ Chairman of the Board of Standard Drilling ¾ Successful investment track recor
Slide 7: Building a World Class Management Team
Building a World Class Management Team Interim Management in Place ¾ Interim CEO ‐ Martin Nes ¾ Interim CFO ‐ Espen Lundaas Focused on Building the Right Team ¾ Top down hiring approach ¾ Focused on hiring best‐in‐class, experienced offshore drilling executives ¾ Currently recruiting executive manag
Slide 8: Superior Delivery Schedule
Superior Delivery Schedule ¾ Significant value in early delivery schedule ¾ Earlier delivery = earlier cash flows ¾ Rig 1 is the first delivery of this building cycle providing a strategic advantage in marketing ¾ Uniform rig design reduces project management cost and creates efficiency in post deli
Slide 9: Premium Rig and World Class Yard
Premium Rig and World Class Yard KFELS B‐Class Keppel FELS track record The KFELS B‐Class jackup rig is a first class rig design Established in 1967, Keppel FELS is today a o Over 30 orders secured worldwide since design world leader in the was launched in 2000 design, construction, repair and c
Slide 10: Financing Overview
Financing Overview Fully financed until delivery of the first rig in July 2012 Around $50.8 million of cash as of May 31, 2011 May 2011 December 2010 Completed a $330 million private Completed a $42 placement to fund the May 31, 2011 million private acquisition of the two Clearwater Cash on the
Slide 11: Valuation – Implied Value Per Rig
Valuation – Implied Value Per Rig Stock Price as of June 3rd 2011 NOK 6.60 Exchange Rate as of June 3rd 2011 5.36 USD per Share USD 1.23 Shares Outstanding (mm) 262.0 Market Cap as of June 3rd 2011 322.4 Plus: Keppel Payments 1,046.0 Less: Cash as of May 31 2011 50.8 EV 1,317.6 EV/Rig 188.23 Source:
Slide 12: Significant Equity Upside Potential
Significant Equity Upside Potential Yard prices have increased near $200 million for similar rigs with less favorable financing terms and delivery in 2014 Recent sale of the West Juno valued a Keppel FELS Mod V B at $248.5 million Asset Value Sensitivity West Juno Sale 3,5 3,1 3,0 Newbuild 2,7 2
Slide 13: Premium Jackups Have Better Economics
Premium Jackups Have Better Economics Premium rigs have better economics are more efficient and get higher dayrates Inability of older jackups to handle high pressure wells Increased deck capacity which is positive for deep wells and wells far offshore Safety for employees, in addition to co
Slide 14: Limited Availability of Modern Premium Jackups
Limited Availability of Modern Premium Jackups On average 21 new contracts and extensions were awarded to modern premium jackups over the past 8 quarters including 27 awarded in 1Q11 On average 13 modern premium jackups available per quarter through YE2012 Modern Premium Jack-up contracts Modern
Slide 15: Rig Equity Return Sensitivities – Illustrative Example
Rig Equity Return Sensitivities – Illustrative Example Strong earnings potential Pareto estimates current dayrates in the $135k/day range with 2011 estimate of $150k/day Earnings Sensitivity on a per rig basis Dayrate Sensitivity DAY RATES 130,000 150,000 170,000 190,000 210,000 Utilization % 95
Slide 16: Standard Drilling
Standard Drilling Largest Pure Play Premium Experienced Board with Jackup Company Strong Track Record Strategically Positioned to Premium Rig and World Class Capitalize on Rising Dayrates Yard and Fleet Renewal Superior Delivery Schedule Source: Company 16
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