Noram Drilling As · OSL:NORAM
Noram Drilling As — Investor Presentation (October 2022)
13 slides from Noram Drilling As's investor presentation, October 2022
Slide 1: Investor Presentation October 2022
Investor Presentation October 2022
Slide 2: Disclaimer
Disclaimer This investor presentation (the “Presentation") has been prepared solely for information purposes in connection with a presentation to potential investors held in respect of a contemplated private placement (the “Private Placement”) of new and existing shares in NorAm Drilling Company AS
Slide 3: NorAm – pure play operator of Ultra Super Spec rigs in Permian basin
NorAm – pure play operator of Ultra Super Spec rigs in Permian basin NorAm Drilling in brief Industry leading margins through low opex and G&A1 Modernized Ultra Super Spec rigs USD per day 11 Fully upgraded with state-of-the-art walking systems and racking capacity, with a track record of drilling t
Slide 4: What Is A Ultra Super Spec Rig?
What Is A Ultra Super Spec Rig? NorAm Drilling has a fleet of fully upgraded rigs with a track record of drilling the longest wells (25,000+ feet) in the Permian 25,000 ft racking capacity of 5.5” pipe High torque top drive Crew houses Toolpusher house Operator crew AC generators quarters 3x mud pum
Slide 5: All rigs working and positioned for increasing dayrates
All rigs working and positioned for increasing dayrates Contract mix allows for visibility in near- to medium-term earnings and significant upside potential for new contracts Select customers NorAm | Average contracted dayrates per quarter USD per day Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 100% spot $3
Slide 6: Management with deep industry knowledge and >75 years experience
Management with deep industry knowledge and >75 years experience Executive Management Board of Directors 20+ 25+ 20+ ~10 Ole B. Hjertaker Gunnar Eliassen Christopher Baker Chairman Board Member Board Member Marty Jimmerson Thomas Taylor Steve Scott Marius Furuly CEO & CFO COO Business Development IR
Slide 7: Cash break even and equity return illustration
Cash break even and equity return illustration CBE | Illustrative cash break even and equity return at different dayrates3 FCFE | Illustrative annual free cash flow to equity3 USD per rig USD annual Dividend yield4 Fixed cost/rig per day Equity CF/rig per day 50 NOK/sh 16% 26% 35% 45% 80 NOK/sh 10%
Slide 8: Energy crisis – world turns to oil with soaring energy prices
Energy crisis – world turns to oil with soaring energy prices U.S. natural gas prices up 110% and oil prices up 12% YTD1 Spare capacity of oil plummeting back to 2014 oil crisis levels USD/bbl USD/mmbtu mb/d mb WTI (LHS) Henry HUB (RHS) Global spare capacity (LHS) OECD company inventories at the sta
Slide 9: Energy crisis – lagging global and local investments
Energy crisis – lagging global and local investments Additional E&P investments needed to support current oil demand… …however, we are seeing signs of increased investment activity Global | E&P investments versus oil demand U.S. | Cash Flow versus E&P Investments for select operators1 mboe/d USDbn U
Slide 10: The Permian basin is “the place to be” for onshore drillers
The Permian basin is “the place to be” for onshore drillers By far the most producing region in the US Permian sitting on the largest proved reserves1 Oil and gas shale basin U.S. | Domestic crude oil production by basin 19% of proved mboe per day 6 U.S. reserves 19% Permian 5 BAKKEN ANTRIUM 4 3 2 B
Slide 11: Permian basin is in need of increased drilling activity
Permian basin is in need of increased drilling activity Drilled wells in the Permian basin (2014 – August 2022) # of wells 4,000 Drilled Completed Drilled but uncompleted wells 3,500 $ Lower oil prices have led operators to limit their capex spending by completing drilled wells 3,000 2,500 2,000 DUC
Slide 12: NorAm key figures
NorAm key figures Historical cash flow Historical operating data Historical | Rig utilization % of total available days Annual (USDm) 2018A 2019A 2020A 2021A 99.6% 97.1% Revenues 80 82 55 50 87.1% • Fleet 100% contracted OpEx incl. G&A (56) (58) (45) (44) 62.8% 59.8% • Revenue backlog of $50m EBITDA
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