Archer Limited · OSL:ARCH
Archer — Pareto Securities' Energy Conference 2023
13 slides from Archer's conference presentation, Sep 20, 2023
Slide 1: Pareto Securities' Energy Conference 2023
Archer Pareto Securities’ Energy Conference 2023 Dag Skindlo - CEO 20 September 2023
Slide 2: 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 3: Key financials
Revenue ($m) EBITDA ($m) Key financials 112-116 +15% +11% 1,115-1,160 970 85 86 936 76 824 The Well Company Platform Operations Land Drilling Well Services $1,066m $112m $2.1bn LTM revenue Adj. EBITDA LTM Contract backlog ’20 ’21 ’22 ’23E1 ’20 ’21 ’22 ’23E1 $mGenerating consistent cash flow ($m) 50
Slide 4: The Well Company
Platform Operations Land Drilling The Well Company • Market leading position and high- end offering Well Services • Multiyear upcycle to drive growth • Proven organic growth over time • Robust cash generation through cycles • Brownfield and P&A exposure for the long term • Leading market position in
Slide 5: Q2 Highlights and subsequent events
Revenue ($m) Adjusted EBITDA ($m) +20% +52% 295 32 Q2 Highlights 300 32 30 247 250 • 28 Revenue of $295 million; up 20% YOY 26 200 24 • Adjusted EBITDA of $31.9 million; up 52% YOY 22 21 150 20 • EBITDA of $30.0 million; up 54% YOY 100 199 250 18 16 • EBIT-margin of 6.3%, totaling $18.7 million 50 1
Slide 6: Focused on production and late life operation – we are the well P&A company
Focused on production and late life operation – we are the well P&A company Greenfield vs Brownfield Archer position Greenfield Brownfield • Archer offers a unique combination of Field Phase Discovery evaluation Development Field production Enhanced recovery Decommission drilling operation and a bro
Slide 7: $32B in North Sea decom spend before 2040
$32B in North Sea decom spend before 20401 P&A market a huge opportunity ($m) 4.200 Denmark • Archer uniquely position as we offer both drilling 4.000 Norway 3.800 UK and a broad well services offering for P&A 3.600 Archer Fulmar Scope • P&A of wells is roughly 50% of total decom spend 3.400 3.200 •
Slide 8: Massive decom and well P&A required to clean up the North Sea
Massive decom and well P&A required to clean up the North Sea Key highlight Fulmar award Contract value $165 million Total well scope 4-5 years contract 32 wells to be P&A Repsol Sinopec has elected Archer and our fully integrated operational model for their Fulmar P&A project. The delivery model wi
Slide 9: Land Drilling – option for value creation
Argentina Land Drilling – option for value creation • Attractive oil & gas resources in place and production Production scenario to reach 1 million bpd by 2030» required for internal consumption – ambition to grow export • Growth in production has been limited by of pipelines for transportation. Sev
Slide 10: Growth through accretive acquisitions
Growth through accretive acquisitions Demonstrated recent track record of accretive M&A 2021 2022 2023 YARI® Future M&A initiatives will be targeted towards growth, synergies and broadened service offerings Accretive and value creative Bolt-on acquisitions De-levering De-levering Improved cashflow I
Slide 11: Archer is well financed, and set to further delever
Archer is well financed, and set to further delever 802 9,6x NIBD/EBITDA at 3.5x 605 588 584 Debt maturities in Q2 2027 508 502 506 Average cash interest around SOFR + 395 4.4% (Cost including PIK around SOFR + 6.9%) 3,5x Archer has high degree of flexibility and 367 can elect to settle interest und
Slide 12: Summary and key takeaways
Summary and key takeaways 1) Positioned for continued growth, both organically and through M&A initiatives 2) Significant organic growth potential in the P&A market, particularly in the mature UK sector 3) Argentina option undervalued by investors 4) Committed to energy transition and net zero by 20
Slide 13: Thank you!
Thank you! 13