World Class Jefferies 2012 Global Energy Conference

Transcription

1 Jefferies 2012 Global Energy Conference November 28-29, 2012

2 Forward-looking Statements The information and statements made in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of These forward-looking statements include statements concerning estimated contract expiration dates, dayrates, estimated dates for completion of repairs and upgrades and commencement dates of new contracts, as well as information that may be affected by the continued delays in obtaining drilling permits in the Gulf of Mexico. Such statements are subject to a number of risks, uncertainties and assumptions, including without limitation, early termination by the customer pursuant to the contract or otherwise, cancellation or completion of certain contracts earlier than expected, our ability to renew or extend our long-term international contracts, or enter into new contracts, when such contracts expire, the potential inability of our customers to obtain drilling permits that would cover the entire duration of our contracts in the U.S. Gulf of Mexico or otherwise satisfy regulatory requirements that may be then in effect, operational difficulties, shipyard and other delays, government and regulatory actions and other factors described in the Company s annual report on Form 10-K and its most recent periodic reports and other documents filed with the Securities and Exchange Commission, which are available free of charge at the SEC s website at or the company s website at The Company cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements 1

3 Overview

4 A Global Leader in Shallow Water Services Overview Global leader in jackup drilling and liftboat services 37 jackup rigs - fourth largest worldwide fleet 63 liftboats - largest worldwide fleet Operations in nine countries on three continents 2,000+ worldwide employees Listed on NASDAQ (ticker: HERO) with an enterprise value of ~ $1.3 billion Highly experienced senior management team Over 250 years of combined drilling industry experience among senior management Experience in all major jackup drilling regions worldwide Worldwide Operations (1) Regions where Hercules Offshore rigs have operated Hercules Offshore current shore base locations Qualified contractor with major integrated oil companies and national oil companies 3

5 Hercules Offshore s Strategy Remains Consistent Maintain Leading Position in Core Businesses Diversify Geographically Opportunistic Growth and Fleet Optimization Focus on Shallow Water Assets Maintain Status as an Efficient, Low-Cost Service Provider 4

6 Business Outlook

7 Domestic Offshore Segment Overview Global recession and Macondo created extreme industry conditions in 2009 and 2010 U.S. GOM Supply/Demand of Marketed Jackups Near the bottom (April 2011), Hercules acquired main competitor just as demand started to improve Customer shift to oil/liquids-rich activity driving demand Since late 2011, marketed jackup utilization has averaged ~90% Dayrates have been on the rise and current backlog at record level Source: ODS-Petrodata 6

8 U.S. GOM Supply vs. Demand U.S. GOM Jackup Supply and Demand as of November 27, Number of Rigs (21) 41 (1) 40 88% Industry Utilization of Marketed Rigs 35 0 Current Jackup Supply (1 Less: Cold Stacked (2 Marketed Supply Planned Jackup Mobilizations to or from the U.S. GOM (3 Visible Marketed Supply GOM Demand Industry utilization of jackup rigs (excluding workover rigs) has been near full utilization since fourth quarter 2011 Hercules Offshore has 19 marketed rigs, with contracts for all marketed rigs (3) Source: ODS-Petrodata and Company estimates (1) Excludes Papaloapan and Coatzacoalcos both under construction, and Hercules 257 and Hercules 259 which were sold in November 2012 (2) Excludes Hercules 257 and Hercules 259 which were sold in November 2012, and Hercules 209 which is undergoing reactivation and actively marketed (3) Expected rig movements out: Atlantic Tiburon 2 and Jawhara 5. Expected rig movements in: Ocean King (4) As of November 28, 2012 Fleet Status Report 7

9 US GOM Shelf Production Mix Crude oil and condensates ( Liquids ) account for a growing percentage of U.S. Gulf of Mexico Shelf production From , liquids made up ~27% of Gulf of Mexico Shelf volume From , liquids mix grew to ~33% Latest data suggest liquids mix could be as high as 40% 45% 40% 35% 30% U.S. GOM Shelf Oil & Condensate Production Mix (water depth < 500 ft) 25% Hercules Offshore has between 70% to 80% of our drilling contracts related 20% to liquids rich activity Source: Bureau of Safety and Environmental Enforcement 8

10 Production Mix and Commodity Price Relationship Price disparity between crude oil and natural gas has been the driver of the shift in production mix Relationship between Oil/Gas Price to Production Mix % In 2004, crude oil (LLS) ~ $42/bbl and natural gas (Henry Hub) ~ $6/mcf, with oil:gas equivalent price 1.2x* In 2011, crude oil (LLS) ~ $112/bbl and natural gas (Henry Hub) ~ $4/mcf, with oil:gas equivalent price 4.7x* As crude oil prices diverged from natural gas, E&P companies have aggressively shifted their drilling portfolio to favor liquids rich prospects Oil:Gas Price Ratio * % 30% 25% 20% % Liquids Production in US GOM Shelf * Henry Hub natural gas price to LLS crude oil price, assuming a 6:1 ratio Source: Bureau of Safety and Environmental Enforcement and Bloomberg 9

11 Domestic Customer Base Exposure to Crude Oil Company specific U.S. Gulf of Mexico Shelf production shows significant liquids mix Crude oil from U.S. Gulf of Mexico typically priced at Louisiana Light Sweet ( LLS ), which trades at a premium to WTI Domestic customers have multiyear inventory of liquids rich drilling prospects Customers U.S. GOM Liquids Mix Apache ~38% Chevron ~39% SandRidge Energy (formerly Dynamic Offshore) ~46% Energy XXI ~68% EPL Oil & Gas ~71% Source: Public disclosures 10

12 Domestic Offshore Backlog Hercules Offshore Average Backlog per Marketed Rig U.S. GOM 240 (1) Strong company backlog per rig at historical high and sustained since early 2012 Average term of recent contract are between 6 months to over a year, versus more typical 3 months or less in prior periods Healthy levels of backlog provides marketing flexibility and pricing support Source: Company Fleet Status Report 11

13 Leading Edge Dayrates Hercules Offshore Leading Edge Dayrates U.S. GOM Dayrate ($000 per day) Dayrate ($000 per day) MC 250MS 250MC* 300MC* 350ILC * Rates for 250MC and 300MC prior to Aril 2011 are based on Seahawk Drilling Fleet Status Report disclosures Source: Company Fleet Status Report disclosures from January 2011 through October

14 Large and Diverse Domestic Customer Base Diverse group of operators in the U.S. GOM, ranging in size from mega-cap to private E&P Top three operators account for approximately 41% of U.S. GOM jackup demand Remaining operators are fragmented, with 15 E&P companies running two or less rigs Hercules Offshore customer base in 2011 and YTD 2012 consists of 34 operators, compared to 23 operators U.S. GOM Industry Customers Mix (1) APA 23% Other 35% CVX 9% EXXI 9% MMR 6% Dynamic 6% EPL 6% Arena 6% in 2009 (1) U.S. GOM jackup rig operators as of November 27, 2012 Source: ODS-Petrodata 13

15 U.S. GOM Shelf M&A Activity GOM Shelf E&P Transaction Values (1) Closing Date Buyer Seller Deal Value ($mm) % Oil Dec-10 Energy XXI ExxonMobil $1,012 55% Feb-11 EPL Oil & Gas Anglo-Suisse $201 92% May-11 Tana Exploration Maritech Resources $222 63% May-11 Black Elk Merit Energy $39 31% May-11 Dynamic Offshore Woodside/Providence $43 16% Aug-11 Dynamic Offshore ExxonMobil $183 39% Aug-11 W&T Offshore Shell $71 27% Sep-11 Dynamic Offshore Moreno Offshore $68 65% Nov-11 EPL Oil & Gas Stone Energy $38 96% Dec-11 KNOC Northstar Offshore $201 NA Apr-12 Sandridge Energy Dynamic Offshore $1,208 51% May-12 EPL Oil & Gas W&T Offshore $32 52% Oct-12 Renaissance Offshore McMoran Exploration $28 77% Nov-12 EPL Oil & Gas Hilcorp $550 54% Pending Northstar (Natural Gas Partners) Private $160 NA (1) Upstream Gulf of Mexico shelf transactions greater than $25 million in value Source: Global Hunter Securities and Company estimates Active M&A market for GOM shelf properties positive for drilling demand Transactions highlight significant oil component to GOM Shelf properties Sandridge s $1.2 billion purchase of Dynamic (51% oil) EPL s $550 million purchase of Hilcorp GOM Shelf assets (54% oil) 14

16 Reactivation Matrix Capital Payback Analysis (1) (m onths to payback) Dayrate Assumption $77,500 $82,500 $87,500 $92,500 $97,500 Reactivation Capital Cost ($ in millions) $ $ $ $ $ Recently announced the reactivation of the Hercules 209, with start up scheduled in 2Q13 Attractive economics for rig reactivation (~9 month capital payback) (1) Hercules Offshore estimates based on 95% utilization and operating cost of $32,000 per day per rig Source: Hercules Offshore estimates 15

17 Domestic Offshore Potential Earnings Upside Incremental EBITDA Analysis (1) ($ in m illions, except dayrate) Increase in Average Dayrate $5,000 $10,000 $15,000 $20,000 $25, $28 $56 $84 $112 $140 Number of Rigs Working 19 $43 $72 $102 $131 $ $57 $88 $119 $150 $ $72 $105 $137 $170 $ $87 $121 $155 $189 $ $101 $137 $173 $208 $ $116 $153 $191 $228 $265 Cost structure for working rigs is relatively fixed, resulting in a large portion of incremental dayrate flowing directly to EBITDA (1) EBITDA is a non-gaap financial measure of earnings, or net income, before interest, income taxes, depreciation and amortization. Calculation shows the incremental EBITDA based on various dayrate changes and assuming 85% utilization. For incremental EBITDA generated from rig reactivation (greater than 18 working rigs), calculation assumes base dayrate of $80,000 plus the Increase in Average Dayrate, 85% utilization, and incremental operating cost of $32,000 per day per rig. Source: Hercules Offshore estimates 16

18 International Offshore Resilient oil prices are supportive of strong growth in international capital spending International Jackup Backlog and Dayrates National Oil Companies have been aggressively adding to their rig fleets since the beginning of 2011 International jackup demand has surpassed prior peak in 2008 Company backlog growth with bluechip customers Company fleet renewal through Discovery Offshore investment Source: ODS-Petrodata and Company estimate 17

19 International Offshore Drilling Outlook FY 2012E Q1 Q2 Q3 Q4 Q1 Q2 FY 2013E Q3 Q4 Hercules 261 Middle East $83-85k $83-85k Hercules 262 Middle East $79-81k $79-81k Hercules 266 Middle East $ k Hercules 260 W. Africa $69-71k $74-76k $90-91k $90-91k Hercules 208 SE Asia $99-101K $99-101K Hercules 170 Middle East Contracted Available Shipyard Source: Fleet Status Report as of November 28,

20 Key International Jackup Markets Snapshot Source: ODS-Petrodata 19 Jan 2005 Apr 2005 Jul 2005 Oct 2005 Jan 2006 Apr 2006 Jul 2006 Oct 2006 Jan 2007 Apr 2007 Jul 2007 Oct 2007 Jan 2008 Apr 2008 Jul 2008 Oct 2008 Jan 2009 Apr 2009 Jul 2009 Oct 2009 Jan 2010 Apr 2010 Jul 2010 Oct 2010 Jan 2011 Apr 2011 Jul 2011 Oct 2011 Jan 2012 Rig Count Apr 2012 Jul 2012 Middle East Jackup Supply / Demand West Africa Jackup Supply / Demand Total Supply Marketed Supply Total Contracted Total Supply Marketed Supply Total Contracted Current Demand: 107 Prior Peak Demand: 97 (Oct-08) Current Excess Marketed Capacity: 12 Current Stacked Capacity: 9 Current Demand: 24 Prior Peak Demand: 26 (Aug-07) Current Excess Marketed Capacity: 1 Current Stacked Capacity: 3 50 Rig Count Jan 2005 Apr 2005 Jul 2005 Oct 2005 Jan 2006 Apr 2006 Jul 2006 Oct 2006 Jan 2007 Apr 2007 Jul 2007 Oct 2007 Jan 2008 Apr 2008 Jul 2008 Oct 2008 Jan 2009 Apr 2009 Jul 2009 Oct 2009 Jan 2010 Apr 2010 Jul 2010 Oct 2010 Jan 2011 Apr 2011 Jul 2011 Oct 2011 Jan 2012 Apr 2012 Jul 2012 Middle East demand driven by aggressive addition by Saudi Aramco Saudi Aramco has grown contracted jackup fleet by ~ 13 rigs since early 2011 Middle East rig count growth despite reduced demand in Qatar of 16 rigs from peak West Africa has tightened, as demand has rebounded and stacked rigs exit the market

21 Discovery Offshore Investment Creative and opportunistic means to establish ownership in premium, long-lived assets Discovery rig capabilities in top 8% of global rig fleet Discovery rig class commands highest dayrates among all jackup designs (except Norway capable rigs which cost twice as much) Shipyard cost of $208 million per rig at order date. Current price for same rig design >$245 million. Thoughtful risk management of investment to Hercules balance sheet Formed Discovery, took initial $10 million equity stake; raised remaining capital to fund rig purchase Favorable shipyard financing that required only 20% down payment, with remainder due at delivery Current ownership at 32% Management agreement entitles Hercules to $6,000 per day per rig and 5% of rig-based EBITDA 20

22 International Liftboats Largest liftboat provider in West Africa and established presence in Middle East Well-established liftboat market and long term demand growth drivers in West Africa, tempered by competition creep Robust Middle East demand, driven by construction and well servicing activity October 2012 International Liftboat Fleet Status Leg Length/ Actively Revenue Per Liftboat Class Total Number Marketed Day Per Operating (Feet) of Liftboats Liftboats (1) Liftboat (2) Days Utilization (3) $ 46, % , % , % , % , % Total/Average $ 23, % (1) Actively marketed liftboats excludes two Nigeria cold-stacked liftboats. The Kingfish, a 230' class liftboat, arrived in the Middle East from the U.S. GOM in July, completed shipyard upgrades and commenced initial contract in November (2) Includes reimbursables (3) Utilization is defined as the total number of operating days in the period as a percentage of the total number of calendar days in the period our liftboats were actively marketed 21

23 Domestic Liftboats Seasonally-driven market demand, with activity levels most active during the summer and fall period Select industry capacity movement out of the Gulf of Mexico, including Company s Kingfish vessel to the Middle East October 2012 Domestic Liftboat Fleet Status Leg Length/ Actively Revenue Per Liftboat Class Total Number Marketed Day Per Operating (Feet) of Liftboats Liftboats (1) Liftboat (2) Days Utilization (3) $ 26, % , % , % , % , % Total/Average $ 9, % (1) Actively marketed liftboats excludes seven GOM cold-stacked liftboats. (2) Includes reimbursables (3) Utilization is defined as the total number of operating days in the period as a percentage of the total number of calendar days in the period our liftboats were actively marketed 22

24 Corporate Initiatives

25 History of Growth August 2004 October 2004 January 2005 June 2005 August 2005 September 2005 October 2005 November 2005 February 2006 Acquired five jack up rigs from Parker Drilling Acquired 22 liftboats from Global Industries Acquired Rig 25 from Parker Drilling and Hercules 257 from Porterhouse Offshore, L.P. Acquired Rig 170 from Transocean and 17 liftboats from Superior Energy Acquired the Whale Shark liftboat from CS Liftboats Acquired Hercules 258 from Hydrocarbon Capital II LLC Initial Public Offering Acquired seven liftboats from Danos & Curole Acquired Hercules 260 from Aries Offshore Partners Ltd. June 2006 November 2006 June 2007 July 2007 March 2008 May 2008 January 2011 April 2011 March 2012 Acquired six liftboats from Laborde Marine Lifts Acquired eight liftboats and assumed rights to operate five additional liftboats from Halliburton Acquired one liftboat from Consolidated Energy Services Acquired TODCO Acquired Hercules 261 and Hercules 350 from Transocean Acquired Hercules 262 from Transocean Investment in Discovery Offshore S.A., owner of two ultra high-spec jackup rigs Acquired 20 jackup rigs from Seahawk Drilling Acquired Hercules 266 from Diamond Offshore 24

26 Successful Debt Reduction and Asset Sales Efforts Net Debt (1) Proceeds from Asset Sales Company has reduced net debt $468 million since 2Q08 Asset sales have generated a cumulative $196 million in proceeds since 2008 Divestitures of mostly idle assets that carried significant costs (1) Excludes restricted cash balance 25

27 Total Debt Summary Description Amount ($millions) Coupon Rate Maturity First Call Date Convertible Senior Notes $ / 8 % Jun 2013* -- Senior Secured Notes $ / 8 % Apr 2017 Apr 105% Senior Unsecured Notes $ / 2 % Oct 2017 Oct 105% Senior Unsecured Notes $ / 4 % Apr 2019 Apr 108% Other $4 7 3 / 8 % Apr Revolver ($75 million) undrawn -- Apr Total Debt $870 Cash & Equivalents $272 Net 9/30/12 $598 * Convertible Senior Notes are redeemable by holder at par in June

28 Conclusion

29 Investment Highlights Positive industry trends continue in the U.S. GOM led by tight jackup rig supply and oil/liquids-rich activity demand driver Strengthening international jackup market, exemplified by Company s Saudi Aramco contract Exposure to the high growth ultra-high specification jackup market through investment in Discovery Offshore Refinancing improves credit profile, extends maturity schedule, and increases operational flexibility Proactive management team that have displayed stewardship of assets and discipline with supply rationalization 28

30 APPENDIX 29

31 Domestic Offshore Marketed Rig Data Domestic Offshore Fleet Status as of 11/28/2012 Contract Est. Duration Rig Name Rig Type Location Customer / Status Dayrate ($000s) (1) Days Date Hercules ' - MC, TD GOM Chevron /31/ /31/13 Apache /18/13 Hercules ' - ILC, TD GOM Chevron /19/13 Arena /28/13 Hercules 173 Hercules ' - MC, TD 200' - MC, TD GOM GOM Chevron Apache /31/12 02/01/ /31/13 05/02/13 Hercules ' - MC, TD GOM EPL /07/ /07/ /08/13 Hercules ' - MC, TD GOM W&T Offshore /15/ /17/13 Castex /30/12 Hercules ' - MC, TD GOM Tarpon /30/12 Castex /13/13 Castex /25/13 Shipyard 12/07/12 Hercules ' - MC, TD GOM /07/13 Black Elk /03/13 Hercules ' - MC, TD GOM Shipyard 04/30/12 Razor/Emerald /04/12 Bois d'arc /30/12 Hercules ' - MC, TD GOM Rooster Petroleum /14/13 Monforte /13/13 W&T Offshore /19/13 (1) Contract dayrates shown in the table above are full contract operating dayrates, which may include estimated contractual adjustments for changes in operating costs and reimbursable cost items for operating expenses such as crew and may also include additional services and personnel that may be requested by the customer from time-to-time. However, the dayrates do not include certain non-recurring revenues such as lump sum mobilizations and demobilizations. The actual dayrate will depend on a number of factors, many of which are beyond the control of the company. The average dayrate over the term of the contract will be lower and could be substantially lower and are subject to numerous risks, as disclosed in the company s filing with the Securities and Exchange Commission. Lower dayrates typically apply when the rig is under contract but not fully operating, including periods when the rig is moving, waiting on weather, on standby, down for repairs or maintenance or during other operational delays or events of force majeure. 30

32 Domestic Offshore Marketed Rig Data (continued) Hercules 213 Hercules ' - MC, TD 200' - MC, TD GOM GOM EPL Apache /15/13 12/20/ /15/13 06/18/13 Walter Oil & Gas /30/12 Walter Oil & Gas /29/13 Hercules ' - MS, TD GOM Hall-Houston /20/13 Hall-Houston /30/13 Hall-Houston /16/13 Hall-Houston /31/13 Hercules ' - MS, TD GOM Shipyard 01/01/13 Tana /10/13 Arena /14/13 Hercules ' - MC, TD GOM Tana /10/13 Tana /07/13 Hercules 264 Hercules ' - MC, TD 250' - MC, TD GOM GOM Energy XXI Gulf Coast Energy Resources /20/13 12/15/12 Castex EPL /18/13 03/15/13 Arena /20/ /30/13 Hercules ' - MC, TD GOM Hercules ' - ILC, TD GOM Domestic Offshore Fleet Status as of 11/28/2012 (continued) Shipyard 09/28/13 Arena /21/ /17/14 Shipyard 12/10/12 Cimarex /03/13 Average 232 days (1) Contract dayrates shown in the table above are full contract operating dayrates, which may include estimated contractual adjustments for changes in operating costs and reimbursable cost items for operating expenses such as crew and may also include additional services and personnel that may be requested by the customer from time-to-time. However, the dayrates do not include certain non-recurring revenues such as lump sum mobilizations and demobilizations. The actual dayrate will depend on a number of factors, many of which are beyond the control of the company. The average dayrate over the term of the contract will be lower and could be substantially lower and are subject to numerous risks, as disclosed in the company s filing with the Securities and Exchange Commission. Lower dayrates typically apply when the rig is under contract but not fully operating, including periods when the rig is moving, waiting on weather, on standby, down for repairs or maintenance or during other operational delays or events of force majeure. 31

33 International Offshore Marketed Rig Data International Offshore Fleet Status as of 11/28/2012 Contract Est. Duration Rig Name Rig Type Location Customer / Status Dayrate ($000s) (1) Days Date Hercules ' - ILC, TD Bahrain Warm Stacked Hercules ' - MC, TD Indonesia Seruway /10/12 Enroute 12/24/12 Myanmar PTTEP /08/13 Hercules ' - ILC, TD Perenco /10/12 Cameroon Shipyard 02/08/13 Perenco /11/13 Hercules ' - ILC, TD Saudi Arabia Saudi Aramco /29/14 Hercules ' - ILC, TD Saudi Arabia Saudi Aramco /08/14 Hercules ' - ILC, TD Shipyard 01/31/13 Saudi Arabia Saudi Aramco ,033 11/30/15 Average 444 days (1) Contract dayrates shown in the table above are full contract operating dayrates, which may include estimated contractual adjustments for changes in operating costs and reimbursable cost items for operating expenses such as crew and may also include additional services and personnel that may be requested by the customer from time-to-time. However, the dayrates do not include certain non-recurring revenues such as lump sum mobilizations and demobilizations. The actual dayrate will depend on a number of factors, many of which are beyond the control of the company. The average dayrate over the term of the contract will be lower and could be substantially lower and are subject to numerous risks, as disclosed in the company s filing with the Securities and Exchange Commission. Lower dayrates typically apply when the rig is under contract but not fully operating, including periods when the rig is moving, waiting on weather, on standby, down for repairs or maintenance or during other operational delays or events of force majeure. 32

34 GOM Shallow Water Operator Data Top 20 Shallow Water (0-350ft) GOM Lease Holders Apache Corp Chevron Operator Current Jackup % of Total Current Stone Energy McMoran O&G W&T Offshore Energy Resource Tech Eni Petroleum LLOG Exploration Tana Exploration Arena Energy BP El Paso E&P Energy Partners Maritech Resources Energy XXI Helis O&G Nippon Oil Merit Energy Partners Number of Active Leases Apache Corp 8 24% Chevron 3 9% Stone Energy 0 0% McMoran O&G 2 6% W&T Offshore 1 3% Energy Resource Tech 0 0% ENI 1 3% LLOG Exploration 1 3% Tana 1 3% Arena Energy 2 6% BP 1 3% El Paso E&P 0 0% EPL 2 6% Maritech Resources 0 0% Energy XXI 3 9% Helis O&G 0 0% Nippon Oil 0 0% Merit Energy Partners 0 0% Total 25 74% Source: Rig data per ODS-Petrodata rig as of October 23,

35 Summary of Discovery Offshore Structure Discovery Offshore is a newly established Luxembourg-based company Constructing two ultra high-specification Keppel FELS Super A jackup rigs with options for two additional rigs Hercules initially invested $10 million, with subsequent investment that increase ownership stake to 32.1% Discovery Offshore strategy Singular focus on ultra high-specification jackup market Leverage Hercules long-standing relationships with national oil companies, majors and independents Fleet expansion via options exercise and acquisitions Managed by Hercules Offshore Manage construction process $7 million fee per rig Manage operations Marketing and contracting of rigs Day-to-day operations Overview Administrative and corporate services Fee of $6,000 per day per rig + 5% of rig based EBITDA Investors Structure 68% ownership 32% ownership Discovery Triumph Delivery 2Q13 DISCOVERY OFFSHORE Market capitalization $138 million (1) Hercules Offshore Discovery Resilience Delivery 4Q13 Construction and management agreements (1) Based on share price and USD/NOK conversion rate as of November 27,

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