Superior Energy Services — Howard Weil 34th Annual Investor Conference 2006
25 slides from Superior Energy Services's conference presentation, Mar 22, 2006
Slide 1: Howard Weil 34th Annual Investor Conference March 22, 2006
Howard Weil 34th Annual Investor Conference March 22, 2006
Slide 2: Serving all phases of oil and gas production
Serving all phases of oil and gas production Highly diversified provider of services, tools and liftboats used to enhance, maintain and extend production Participate in drilling, production and decommissioning phases Brand name rental tool companies Value-added production enhancement services Adding
Slide 3: Superior's market participation and footprint
Superior's market participation and footprint Products and services provided by Superior
Slide 4: Core business: Value-Added drilling solutions and production enhancement
Core business: Value-Added drilling solutions and production enhancement
Slide 5: Exposure to oilfield services markets
Exposure to oilfield services markets Drilling Phase Rental tools Capital intensive Low total operating costs Consistently high margins Stable pricing Well intervention services & rentals Liftboats Labor intensive High fixed costs High operating leverage Plug and abandon wells Remove platforms and s
Slide 6: Oil and gas segment leverages product and service asset base
Oil and gas segment leverages product and service asset base Our subsidiary SPN Resources acquires, produces and exploits mature properties Typical productive life of 5 to 10 years Trade P&A and decommissioning liabilities against reserves value Mature properties require most, if not all, of our ser
Slide 7: 2005 segment results
2005 segment results Revenue by Segment EBITDA by Segment Well Intervention 248.6 Rental Tools 243.6 Marine 87.3 Other 91 Oil and Gas 64.9 34% Well Intervention 33% Rental Tools 12% Marine 12% Other Oilfield Services 9% Oil and Gas (1) Well Intervention 53.2 Rental Tools 107.8 Marine 29.4 Other 1.7
Slide 8: Business strategy
Business strategy Take advantage of strong industry fundamentals Gulf of Mexico market: Execute by delivering production-related solutions and assisting with restoration work Non-GOM markets: Continue rapid expansion of rentals and services in domestic land and international market Selectively add o
Slide 9: Industry fundamentals help drive growth
Industry fundamentals help drive growth Customers believe high commodity prices are sustainable Higher percentage of customer cash flows spent on drilling and production Customers locking in service assets and crews, not price shopping Customers driven to add reserves Superior activity, pricing incr
Slide 10: U.S. production-related spending
U.S. production-related spending Includes spending for workovers, completions, abandonments and well service work onshore and offshore U.S. Source: Spears and Associates 2002 2003 2004 2005 2006E Production 12.1 13.5 13.8 14.9 16.3 $ in billions
Slide 11: Liftboat peak capacity analysis
Liftboat peak capacity analysis
Slide 12: Gulf of Mexico hurricane-related damage
Gulf of Mexico hurricane-related damage Katrina+Rita Ivan Destroyed 109 7 Severe Damage 51 20 Katrina+Rita Ivan Adrift 19 5 Severe Damage 19 4 Destroyed 5 1 Platforms Rigs
Slide 13: Phases of hurricane recovery work
Phases of hurricane recovery work
Slide 14: Geographic diversification
Geographic diversification Americas Barnett Shale California Fayetteville Shale Gulf of Mexico Oklahoma Rocky Mountains South Texas Eastern Canada Mexico Trinidad Venezuela Europe North Sea Africa Offshore Nigeria Angola Middle East Egypt Dubai Saudi Arabia Australia Sale Offshore Australia Rentals
Slide 15: Geographic expansion strategy
Geographic expansion strategy Specialty tubulars in North Sea Specialty tubulars in West Africa and Middle East Expand rentals in South America Reposition rental and service assets as necessary in all markets Upgrade/expand rentals and production-related services in North America Position derrick ba
Slide 16: North America expansion strategy
North America expansion strategy Add services if appropriate Coiled tubing Mechanical wireline Electric line Pumping and stimulation Fewer people/dollars at risk Establish a footprint Build relationships
Slide 17: Breakdown 2006 capital expenditures plan
Breakdown 2006 capital expenditures plan Barnett Shale Fayetteville Shale Rocky Mountains North Sea West Africa Middle East Far East (Amounts in Millions) Geographic 56 GOM 19 Derrick barge & tug 27 Maintenance 20 Production-enhancement 63 Other 29 $56 Geographic expansion $19 GOM expansion $27 Derr
Slide 18: Track record of strong growth
Track record of strong growth '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06E Revenue 71.7 117.7 173.5 149.8 257.5 449 443.1 500.6 564.3 735 915 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06E East 18.6 38 46.8 31.7 65.6 138.4 98.5 117.2 145 220 361 Revenue (1)(2)(3) Results for the years 1996, 1997, 1998
Slide 19: Financial strength
Financial strength 2001 2002 2003 2004 2005 Debt/TTM EBITDA 2.07 2.74 2.3 1.77 0.99 Total debt to 12 months EBITDA
Slide 20: Investment highlights
Investment highlights Respected and recognized provider of value-added production enhancement solutions Strategic combination of assets and services that allow Superior to be a fully integrated provider of production enhancement solutions Growing onshore and international focus Utilize oil and gas a
Slide 21: Corporate information Forward-Looking Statement
Corporate information Forward-Looking Statement In addition to historical information, our presentation materials include certain forward-looking statements about the Company's future performance, growth opportunities, outlook, plans, alternatives, strategies, expectations and objectives. These stat
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation
Slide 23: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA Earnings before interest, taxes depreciation and amortization (EBITDA) is a non-GAAP financial measurement. Management uses EBITDA because it believes that such a measurement is a widely accepted financial indicator used by investors and analysts to analyze and
Slide 24: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA Earnings before interest, taxes depreciation and amortization (EBITDA) is a non-GAAP financial measurement. Management uses EBITDA because it believes that such a measurement is a widely accepted financial indicator used by investors and analysts to analyze and
Slide 25: Reconciliation of Net Income to EBITDA
Reconciliation of Net Income to EBITDA (1) The EBITDA calculation for the fiscal years ending December 31, 1996, 1997, 1998 and 1999 reflect the summation of audited financial statements for Superior Energy Services, Inc. and Cardinal Holding Corp. When we acquired Cardinal Holding Corp. on July 15,
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