Vantage Drilling Company · OTC:VTGDF
Vantage Drilling — DNB Markets 7th Annual Oil, Offshore & Shipping Conference (February 2014)
21 slides from Vantage Drilling's conference presentation, Feb 28, 2014
Slide 1: Vantage Drilling Company
Exhibit 99.1 Vantage Drilling Company th DNB Markets 7 Annual Oil, Offshore & Shipping Conference Oslo, Norway March 4, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements in this presentation constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not his
Slide 3: Company Overview
Company Overview NYSE: VTG Market Cap: $519 million Book Value: $567 million Enterprise Value: $3.4 billion Employees: > 1,300 Vantage Offices 4 Jackups 3 Drillships, plus 1 under construction 3
Slide 4: Highlights
Highlights 2013 Achieved Record Revenue, EBITDA, and Income from Operations Ultra-Deepwater Fleet fully contracted through 2015 Jackup fleet 98% contracted for 2014 and 30% contracted for 2015. Refinanced Balance Sheet – Interest savings in excess of $90 million per year Much longer, staggered matur
Slide 5: Vantage Strategic Focus
Vantage Strategic Focus Experienced Vantage was founded with a vision of People bringing the best people together with the highest specification, modern fleet in the offshore drilling industry. With exceptional operating performance and a focus on service, we have built an Financial High-Spec excell
Slide 6: People
People Our senior management team averages over 30 years of Industry experience. The cornerstones of our corporate culture are safety and professionalism. • Industry leading safety record – Lost time incident rate in 2013 and 2012 were .32 and .00, respectively, as we completed approximately 2.5 mil
Slide 7: High Specification Assets
High Specification Assets We have built a fleet of new, premium assets that our customers demand now and for the future. High-specification drillships combined with deep in- house operations and technical teams, have been the key to awards to Vantage of high-profile, complex, ultra-deepwater project
Slide 8: Profile of Global Jackup Fleet
Profile of Global Jackup Fleet • Capabilities and age – The current worldwide fleet is comprised mostly of older, inefficient rigs – 17% of today’s jackups are mat-supported and/or have less than 200ft of water depth capability – 60% of today’s jackups are 25 years or older – As of February 2014 a t
Slide 9: Supply of High Specification Floaters
Supply of High Specification Floaters Bifurcation will drive cold stacking and retirements. Nearly half of the deepwater and ultra-deepwater combined fleet is 25 years of age or older. Age of Floater Fleet Age Rigs % % 25 years or older 149 47% 36% 10 to 24 years 46 15% 11% 0 to 9 years 121 38% 29%
Slide 10: Market Conditions
Market Conditions Continued Growth Cycle Long-term Opportunities • Global demand for oil & gas continues growth driven by emerging economies with long-term forecast for increase E&P spending. • Success in deepwater and ultra-deepwater exploration should provide the map to future growth as developmen
Slide 11: Market Conditions
Market Conditions Short-term Headwinds • Shift in global spending to national oil companies increases contracting time. • North American and European E&P companies facing wave of shareholder activism impacting capital allocations (dividends & share repurchases versus E&P spending). • Confidence in o
Slide 12: Strong Customer Backlog
Strong Customer Backlog We have focused our marketing efforts on customers with long-term drilling requirements with the opportunity for long-term contracts. 12
Slide 13: Fleet Status
Fleet Status Customer backlog of approximately $2.8 Billion provides visibility to cash flows Ownership 2013 2014 2015 Rig % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jackups Emerald Driller 100% $130,000 $156,000 (2 years) Sapphire Driller 100% $120,000 $165,000 (net) $183,000 (18 months) Aquamarine Dril
Slide 14: Significant Growth Achieved
Significant Growth Achieved Emerald Driller Sapphire Driller Aquamarine Driller Topaz Driller Platinum Explorer Titanium Explorer Tungsten Explorer December 2008 July 2009 September 2009 December 2009 November 2010 April 2012 July 2013 14
Slide 15: Progress on Financial Targets
Progress on Financial Targets Long-term contracts provide visibility to cash flow to support our leverage reduction objectives. th • 4 quarter 2013, with our 7 operational assets all working, we reported record Revenue, EBITDA and Income from Operations. • We are on target to achieve our goal of 11.
Slide 16: Return on Capital Employed
Return on Capital Employed Strong operational performance from our first 7 rigs, now fully deployed, will lead to industry leading Return on Capital Employed (ROCE). 2014 Target: 11+%. 16
Slide 17: Debt Maturities and Leverage
Debt Maturities and Leverage • No significant debt maturities until 2017. • Cash flow from operations projected to cover all debt service through 2018. • Increased leverage over last 2 years has been to fund deployment of Titanium Explorer and Tungsten Explorer. • As current fleet is all working, le
Slide 18: Historical Financial
Appendix HISTORICAL FINANCIAL
Slide 19: Statement of Operations
Statement of Operations Net income and cash flow from operations is increasing significantly for Vantage as the Tungsten Explorer commenced operations in September 2013. 19
Slide 20: Balance Sheet – Leverage
Balance Sheet – Leverage The Debt to EBITDA leverage will continue to reduce as Vantage realizes full year operations for its completed fleet and executes on debt retirement plans. 20
Slide 21: EBITDA Reconciliation
EBITDA Reconciliation ($ in millions) December 31,December 31, For the Quarter Ended December 31, 2011 2012 31-Mar-13 30-Jun-13 30-Sep-13 31-Dec-13 2013 Net Income (Loss) $ (80.0) $ (145.3) $ (123.2) $ 4.1 $ 6.8 $ 30.3 $ (72.8) Interest Expense, Net 154.8 149.0 59.6 51.2 47.4 55.8 214.0 Income Tax P
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