Seadrill Limited · NYSE:SDRL
Seadrill — DNB Energy & Shipping Conference (March 2022)
25 slides from Seadrill's conference presentation, March 2022
Slide 1: Investor Presentation
Investor Presentation wail WEEN x9 ’ = _—-—-——f as
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: Introducing the New Transformed Seadrill
Introducing the New Transformed Seadrill A platform transformed, offering unique exposure to a recovering offshore drilling market Significant fleet rationalisation Simplified corporate structure High-grading the fleet and operating base Materially strengthened balance sheet $350m in new capital No
Slide 4: Our Investment Proposition
Our Investment Proposition 1 Large fleet of premium and high-specification offshore drilling rigs 2 Well-positioned in key segments with favourable outlook 3 Strategic customer relationships supported by solid backlog 4 Significantly strengthened balance sheet 5 Attractive cash flow outlook and equi
Slide 5: Diversified Fleet of Modern, High-spec Offshore Drilling Rigs
1 Diversified Fleet of Modern, High-spec Offshore Drilling Rigs Floaters Jack-ups Harsh environment Managed rigs West Neptune AOD III West Phoenix West Intrepid Active rigs: 7 rigs 7 rigs 2 rigs 11 rigs Six dual-activity drillships All premium 350ft One 6G semi and one top-tier Four drillships, two
Slide 6: With a Strong Portfolio of Strategic JVs and Investments
1 With a Strong Portfolio of Strategic JVs and Investments Operated by Seadrill Operated by Seadrill ✓ Highly strategic 35% Ownership in Paratus 35% Ownership in Paratus ‒ Standalone entities with no 50/50 JV with Sonangol 50/50 JV with Gulf Drilling Energy Services, which Energy Services, which in
Slide 7: Reintroducing the Leading Offshore Driller
1 Reintroducing the Leading Offshore Driller Seadrill has the youngest fleet of scale… … and the highest share of fleet contracted Average fleet age Share of fleet with current or future contracts 25 83% 79% 77% 75% 62% 14 12 10 10 Attractiveness of fleet demonstrated by superior current Amongst the
Slide 8: Strong Presence in High Demand Regions Globally
2 Strong Presence in High Demand Regions Globally Scale in key markets such as the Golden Triangle and Middle East Floaters Harsh Environment North Sea ✓ Globally diversified portfolio of owned and Jack-ups Harsh Environment Managed Rigs managed rigs ✓ Established relationships with several major IO
Slide 9: Strategically Positioned throughout the Golden Triangle
2 Strategically Positioned throughout the Golden Triangle Brazil: Leading international driller Angola: Leading driller US Gulf of Mexico: Attractive positioning ✓ Largest offshore drilling presence ✓ Largest offshore drilling presence ✓ Long-standing track record amongst international drillers ✓ At
Slide 10: Diversified, Balanced Portfolio with Enhanced Cash Flow Resilience
3 Diversified, Balanced Portfolio with Enhanced Cash Flow Resilience Diversified streams of revenue Nearly 90 unique customers served Strong relationships with key UDW customers Total revenue backlog by rig type1 Cumulative number of customers served since Smedvig Benign UDW rig years awarded per op
Slide 11: Profitable $2.2bn Backlog with a Strong Contract Win Record
3 Profitable $2.2bn Backlog with a Strong Contract Win Record Backlog per 23 February 2022 Large backlog providing the most secure future cash flows Owned and leased rigs1 Average number of backlog months per rig2 Per benign 23 15 16 13 11 UDW rig3 25 Floaters $1.3bn 13 13 11 11 Winning a disproport
Slide 12: Securing Premium UDW Contracts at Better Terms Than Peers
3 Securing Premium UDW Contracts at Better Terms Than Peers Consistently securing contracts at the high-end of the market… … at longer contract durations Average announced benign UDW dayrate ($k/d)1 Average benign UDW contract length (rig Others Seadrill years)1,2 +9% +109% +12% 552 2.0 518 506 464
Slide 13: The Offshore Rig Market is Recovering
3 The Offshore Rig Market is Recovering Bottomed-out rig count Large share of non-competitive rigs Number of contracted floaters Number of benign UDW rigs 300 139 23 5 Limited 200 85 26 Supply 100 0 Contracted Warm Cold Orderbook Global 1985 1990 1995 2000 2005 2010 2015 2020 stacked stacked fleet A
Slide 14: Substantially De-levered and Simplified Capital Structure
4 Substantially De-levered and Simplified Capital Structure Complete rebalancing of the capital structure Conservative debt and ample liquidity Current build-up to net debt 2 $12.6bn >55% $175m First Lien Term Loan Reduction $50m Unsecured Convertible Bond Undrawn: $125m First Lien Revolver Majority
Slide 15: Exceptional Cost and Capital Discipline
5 Exceptional Cost and Capital Discipline Commitment to lowering costs ✓ Disciplined approach to fleet Materially lower operating expenses And a lower G&A cost base management >25% Direct rig operating expenses (benign), $k/day Seadrill G&A ‒ Retired 12 rigs1 from its fleet to Floaters Jack-ups elim
Slide 16: Providing Attractive Earnings in a Market Recovery
5 Providing Attractive Earnings in a Market Recovery Significant earnings potential in a market recovery… …that is converted into cash Illustrative EBITDA Illustrative unlevered FCF / EBITDA Illustrative FCF ~$0.7bn 73% ~$0.5bn ~$0.4bn 63% ~$0.3bn ~$0.2bn ~$0.1bn 36% Dayrate scenario A B C Harsh Env
Slide 17: Low Implied UDW Values Providing Equity Uplift Potential
5 Low Implied UDW Values Providing Equity Uplift Potential Current low implied values per modern UDWs… …providing significant support for strong equity uplift potential Implied UDW equivalent value ($m) UDW equivalent ($m) Implied share price ($)2 Based on trading peers1 850 148 176 431 300 446 750
Slide 18: Historically Unmatched Returns Profile
5 Historically Unmatched Returns Profile Strong earnings capabilities with proven track record of dividend delivery Industry leading profitability Robust through-cycle EBITDA generation THE leading return proposition Average EBITDA Margin Versus Peers1, Cumulative EBITDA2 Since Q4 2008-21 ($bn) Divi
Slide 19: Track Record of Operational Excellence
6 Track Record of Operational Excellence Setting the standard in drilling since 2005 World-class safety standards High performance and utilisation Industry leading business practices Total Recordable Incident Rate >2,700 wells drilled Industry 0.30 in every major Average basin in the world Plato Con
Slide 20: A Culture of Innovation and Sustainability
6 A Culture of Innovation and Sustainability Keeping people and the environment safe, and operations efficient Committed to building sustainable operations An industry leader in how we A case study in Seadrill’s commitment to innovation manage our carbon emissions West Saturn Installations1 Outcomes
Slide 21: Unparalleled Leadership with Extensive Experience
6 Unparalleled Leadership with Extensive Experience New Board brings extensive industry and leadership experience Combined with world-class management Julie Johnson Robertson Stuart Jackson Chair of the Board President and Chief Executive Officer • 35+ years years energy sector experience in CEO • 4
Slide 22: Playing a Key Role in Reshaping the Industry
6 Playing a Key Role in Reshaping the Industry Too many rigs Too much debt Seadrill is well positioned to play a key role in reshaping 123 retired in the last 3 years > $18bn wiped out over the last three years the industry Rig recycling and retirements Deleveraging1 Key segment focus by player # Ri
Slide 23: Why Seadrill?
Why Seadrill? 1 Large fleet of premium and high-specification offshore drilling rigs 2 Well-positioned in key segments with favourable outlook 3 Strategic customer relationships supported by solid backlog 4 Significantly strengthened balance sheet 5 Attractive cash flow outlook and equity upside Pla
Slide 24: Appendix
Appendix Seadnill
Slide 25: Backlog Overview
Backlog Overview Total backlog of $2.2bn with $1.7bn added in 2021 West Saturn 2026 Option – 2030 West Tellus 202 2025 West Carina 6 2025 West Jupiter 2025 West Gemini Option Undisclosed West Neptune Sevan Louisiana Option West Phoenix Option Owned West Elara 2028 Rigs West Linus West Hercules AOD I
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