Borr Drilling Limited · NYSE:BORR
Borr Drilling — Pareto Securities' 31st Annual Energy Conference 2024
15 slides from Borr Drilling's conference presentation, Sep 11, 2024
Slide 1: Pareto Securities' 31st Annual Energy Conference
Pareto Securities' 31st Annual Energy Conference Patrick Schorn, CEO September 11, 2024
Slide 2: Forward Looking Statement
Forward Looking Statement This announcement and related discussions include forward looking statements made under the "safe harbour" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements do not reflect historical facts and may be identified by words such
Slide 3: Borr Drilling – the premium jack-up rig company
Borr Drilling – the premium jack-up rig company Data as of Q2 2024 quarter end 1 Contracted fleet based on delivered fleet of 23 rigs as of August 15th, 2024 2 Adj. EBITDA margin is calculated by Adjusted EBITDA divided by Total Operating Revenues 3 Liquidity includes undrawn RCF of $150 million 4 D
Slide 4: Strong Experience and Portfolio Increased NOC Exposure
Strong Experience and Portfolio 4 Increased NOC Exposure Currently 2 out of 3 backlog days are with NOCs (vs. 2 out of 5 in 2019)
Slide 5: Shallow water is key
Shallow water is key Favorable fundamentals Source: Rystad Energy 1 Based on data from Rystad Energy for oil and gas production in millions of barrels of oil equivalent per day 5 Global offshore production of 31.7 mboe1 Shallow water represents ~66% of offshore production Cost competitive Breakeven
Slide 6: Jackup market is tight with modern rigs preferred
Jackup market is tight with modern rigs preferred Utilisation remain strong and back at 2014 levels Modern rigs taking the lion’s share of demand Source: Petrodata by S&P Global Modern rigs are units delivered in 2000 or after 6 BORR’s fleet competitive advantage: Offline capable 400ft water depth S
Slide 7: A structurally tight market
A structurally tight market 7 ~10 = 328 Aramco suspensions3 (15 to 20) Source: Petrodata by S&P Global as on 12 Aug 2024, Fearnley Offshore and Company data 1 Uncompetitive are units stacked for over 3 years, affected by sanctions or geographically stranded 2 Incremental Demand: 12 to 18 months outl
Slide 8: Our high quality and future proof fleet
Our high quality and future proof fleet The industry’s youngest fleet … amidst an aging global fleet Source: Petrodata by S&P Global 8 Average Age Fleet Size 24 13 2 35 10 4 42 36 # of rigs Over 30% of global fleet is beyond retirement age Age
Slide 9: Orderbook insufficient to address future rig demand
Orderbook insufficient to address future rig demand Source: Petrodata by S&P Global 9 No new jackup orders for approx. a decade 12 rigs in the orderbook (~3% of total fleet), a record low since early 2000’s Only ~4 newbuilds perceived as available and competitive in the next 12 to 18 months Low newb
Slide 10: Strong revenue visibility
Strong revenue visibility 10 Contract Prep Contract Prep Mob 1 Backlog Revenue includes new contracts, LOIs and LOAs including mobilization and demobilization revenues, and includes bareboat charter contracts adjusted to a gross dayrate-equivalent basis. 2 Average dayrate is derived from Backlog Rev
Slide 11: Strong incremental cashflow in 2025 and beyond
Strong incremental cashflow in 2025 and beyond Illustrative reduction in capex requirements Delta 2024 to 2025 Net decrease newbuild capex 1 $80 million Illustrative lower annual Maintenance/SPS capex2 $20 million Illustrative reduction in cash requirement ~$100 million Illustrative improvements in
Slide 12: Streamlined capital structure with deleveraging
Streamlined capital structure with deleveraging Debt maturity profile ($m) Note: The company made a voluntary convertible bond repurchase in 2024. This is not a scheduled amortization and as such no further repurchases are shown in the graph. 1 Cash sweep mechanism in bond optional for bondholders a
Slide 13: Capital allocation framework
Capital allocation framework 1 Replacement cost based on newbuild parity of $300 million for a newbuild, and 30 years expected life 2 Cash sweep mechanism in bond optional for bondholders at 105%, 25 – 75% of “free cashflow to equity” depending on leverage ratio 13
Slide 14: In Conclusion
14 In Conclusion Fundamentally no newbuild supply and over ~30% of fleet above 35 years old Structurally tight supply Supported by higher average dayrate and lower capex requirements Solid cashflow outlook for 2025 and beyond Delivering operational excellence and capturing dayrate premium Premium ja
Slide 15: Built to make a difference
BUILT TO MAKE A DIFFERENCE
Borr Drilling — Pareto Securities' 31st Annual Energy Conference 2024 on 6ix