Atwood Oceanics, Inc. Oppenheimer Oil Services & Equipment Conference August 10, 2006

Transcription

1 1 Atwood Oceanics, Inc. Oppenheimer Oil Services & Equipment Conference August 10, 2006

2 Forward Looking Disclaimer 2 Except for the historical information contained herein, the matters discussed in this presentation are forward-looking statements. These forward-looking statements reflect our current views with respect to future events, based on what we believe are reasonable assumptions. These statements, however, are subject to risks and uncertainties that could cause actual results to differ materially including, among other things, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations, unexpected future capital expenditures, competition, the success of our risk management activities, governmental regulations and other factors discussed in our filings with the Securities and Exchange Commission (SEC). We refer you to the disclaimers and warnings set forth in these filings with the SEC.

3 Atwood Strategy 3 Maintain a premium fleet of offshore drilling units Focus on attractive international markets Cultivate strong client relationships Provide quality services through a focus on safety Optimize mix of long-term and short-term contracts in portfolio Continue to opportunistically expand offshore rig fleet

4 Reasons to Invest in ATW 4 ATW is the only small cap international offshore driller with shares traded on the NYSE Strong industry outlook in terms of fundamentals Financial upside visibility for FY 07 & 08 Premium fleet focused on three asset classes Leveraged to deepwater & international operations Positioned with growth potential

5 Investment Returns Data 5 RIG ANALYSIS JUNE 30, 2006 (milllions) OPERATING PROJECT PROJECT CASH FLOW YEAR AMOUNT SINCE PROJECT(S) UPGRADES ATWOOD FALCON SEAHAWK VICKSBURG ATWOOD HUNTER 1997/ ATWOOD SOUTHERN CROSS 1997/ RICHMOND ATWOOD EAGLE 2000/ TOTAL UPGRADES NEW CONSTRUCTION ATWOOD BEACON TOTAL FLEET

6 Current Atwood Fleet 6 Rig Water Depth Year Type (Feet) Location Upgraded ATWOOD EAGLE Semisubmersible 5,000 Australia 2000/2003 ATWOOD HUNTER Semisubmersible 5,000 Mediterranean 1997/2002 ATWOOD FALCON Semisubmersible 3,700 1 Malaysia 1998 ATWOOD SOUTHERN CROSS Semisubmersible 2,000 Mediterranean 1997/2006 SEAHAWK Semisubmersible Tender Assist 600 Shipyard 2000 ATWOOD BEACON Jack-up (IC) Vietnam 2003 VICKSBURG Jack-up (IC) 300 Malaysia 1998 RICHMOND Submersible 70 Gulf of Mexico Rig will be upgraded to 5,000 fsw capability for work in Malaysia mid Current plan is to return unit to 400 foot capacity during an appropriate period between future contracts.

7 New Addition to the Atwood Fleet ATWOOD AURORA LeTourneau Super 116E Jack-Up Design 7 Estimated Costs (Including Capitalized Interest and Project Management) Approximately $ 160 Million Target Delivery Late September 2008 Possible Earnings Per Share Impact Assume Dayrate $135,000 $150,000 $180,000 $200,000 Assume Operating Costs (40,000) (40,000) (40,000) (40,000) Assume Depreciation Per Day (17,000) (17,000) (17,000) (17,000) Assume Per Day Income Before Taxes 78,000 93, , ,000 Assume Per Day Taxes (25%) (20,000) (23,000) (31,000) (36,000) Assume Per Day Net Earnings $58,000 $70,000 $92,000 $107,000 EPS PER YEAR $.65 $.80 $1.05 $1.25

8 Global Footprint / International Bias 8 ATWOOD SOUTHERN CROSS Great Yarmouth RICHMOND Corporate Headquarters ATWOOD HUNTER Malta Cairo SEAHAWK Kuala Lumpur Singapore ATWOOD BEACON VICKSBURG ATWOOD FALCON Jakarta NORTH RANKIN A GOODWYN A ATWOOD EAGLE Legend Office / Shorebase Rig Perth

9 Total Contracted Rig Days 9 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY 06 FY 07 FY 08 FY 09 Contracted Rig Days

10 Financial Upside 10 CURRENT AVERAGE AVERAGE HIGHEST PER DAY PER DAY CONTRACTED PERCENTAGE REVENUE REVENUE DAYRATE CHANGE FY 2004 FY 2005 COMMITMENT From FY 2005 ATWOOD EAGLE $ 83,000 $ 95,000 $ 420,000 * 342% ATWOOD HUNTER 53,000 61, ,000 * 302% ATWOOD FALCON 71,000 82, ,000 * 144% ATWOOD SOUTHERN CROSS 34,000 28, ,000 * 989% ATWOOD BEACON 57,000 66, ,500 * 102% VICKSBURG 67,000 66, ,000 * 137% SEAHAWK 51,000 38,000 68,430 * 80% RICHMOND 26,000 32,000 80,000 * 150% AVERAGE DAYRATE INCREASE FOR DRILLING FLEET 241% * Current dayrate commitment represents the highest historical dayrate for the rig.

11 Contract Review 11

12 ATWOOD EAGLE 5,000 ft. Semi-Submersible FY 2006 I FY 2007 I FY2008 I FY2009 I Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 12 WEL BHPB (Firm) BHPB WEL 1 Yr (Firm) Firm Options Current Contract Client: Woodside Energy LTD Location: Australia - NWS Contract: One (1) well remaining Dayrates: $179,000 Follow-on Contracts Client: BHP Billiton Petroleum Contract Term: Ten (10) firm wells, with options for three (3) additional wells Dayrates: Firm Wells - $150,000 to $168,000 Option Wells - $168,000 Client: ENI Australia Contract Term: One well Dayrates: $360,000 As of August 2006 ENI (Firm) Client: Woodside Contract Term: One year Dayrates: $420,000, but can change term to two (2) years at $405,000 or three (3) years at $405,000 dayrate in thousand USD Dayrate Analysis FY04 (avg) FY05 Current Highest Contracted Commitment

13 ATWOOD HUNTER 5,000 ft. Semi-Submersible 13 FY 2006 I FY 2007 I FY2008 I FY2009 I Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Woodside Woodside2 ea 6 mos (Mutually Agreeable Dayrate) Firm Options Current Contract Client: Woodside Energy Limited Location: Anywhere in the World except the United States Contract Term: Two years + 2 ea Six month options Dayrates: $240,000 to $245,000 dayrate in thousand USD Dayrate Analysis FY04 (avg) FY05 Current Highest Contracted Commitment As of August 2006

14 ATWOOD FALCON 3,700 ft. Semi-Submersible 14 FY 2006 I FY 2007 I FY2008 I FY2009 I FY 2010 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Shell 13 Wells Shell 2 Years One Year (Mutually Agreeable Dayrate) Firm Options Current Contract Client: Shell Location: Malaysia Contract Term: July 2009 Dayrates Upgrade period - $90,000 plus $24 million fee Following upgrade through July 10, $93,000 to $113,000 July 2007 thru July 2009 $160,000 to $200,000 Est Completion: FY4Q2009 dayrate in thousand USD Dayrate Analysis FY04 (avg) FY05 Current Highest Contracted Commitment As of August 2006

15 15 ATWOOD SOUTHERN CROSS 2,000 ft rated Semi-Submersible FY 2006 I FY 2007 I FY2008 I FY2009 I Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 AGIP Melrose Toreador TPAO VANCO Firm Options Current Contract Client: AGIP Location: Italy Contract Term: 2 wells Dayrates: $70,000 Est Completion: FY3Q2006 Follow-on Contracts Client: Melrose Resources Location: Black Sea (Bulgaria) Contract Term: 3 firm + 2 option wells Dayrate: $125,000 Client: TPAO Location: Black Sea (Turkey) Contract Term: 3 firm wells, with options for 3 additional wells Dayrate: $290,000 for firm wells and $320,000 for option wells Client: Toreador Location: Black Sea (Turkey) Contract Term: 3 firm wells Dayrate: $125,000 dayrate in thousand USD Client: VANCO Location: Black Sea (Ukraine) Contract Term: 1 firm well, 1 option well Dayrate: $305,000 for firm well and $325,000 for option well Dayrate Analysis FY04 (avg) FY05 Current Highest Contracted Commitment As of August 2006

16 ATWOOD BEACON 375 ft. rated IC Jack-up 16 FY 2006 I FY 2007 I FY2008 I FY2009 I FY 2010 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 HV/HL GSPC One Year (Mutually Agreeable Dayrate) Firm Options Current Contract Client: Hoan Vu/Hoang Long Location: Vietnam Contract: 1 well Dayrate: $110,000 Est Completion: FY4Q2006 Follow-on Contract Client: GSPC Location: India (East Coast) Contract Term: 25 months Dayrates: First 13 months = $113,000 Next 12 months = $133,500 dayrate in thousand USD Dayrate Analysis FY04 (avg) FY05 Current Highest Contracted Commitment As of August 2006

17 VICKSBURG 300 ft. rated IC Jack-up 17 FY 2006 I FY 2007 I FY2008 I FY2009 I Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Petrofac Chevron Chevron Firm Options Current Contract Client: Petrofac Location: Malaysia Contract Term: 7 firm wells Dayrate: Firm - $82,000 (4 wells) & $87,000 (3 wells) Est Completion: FY 1Q2007 Follow-on Contracts Client: Chevron Location: Thailand Contract Term: 8 months (Thailand) / 2 years (Thailand) Dayrate: $94,500 / $154,000 Est Completion: FY3Q2009 dayrate in thousand USD Dayrate Analysis FY04 (avg) FY05 Current Highest Contracted Commitment As of August 2006

18 SEAHAWK 600 ft rated Semi-Submersible TAD 18 FY 2006 I FY 2007 I FY2008 I FY2009 I Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Amerada Amerada Hess Hess 4 Six Mos Options Firm Options Current Activity Dayrate Analysis Location: Equatorial Guinea Contract Term: 730 days + 4 ea. six month options Dayrate: $68,430 Est Completion: FY 4Q2008 dayrate in thousand USD FY04 (avg) FY05 Current Highest Contracted Commitment As of August 2006

19 RICHMOND 70 ft rated submersible 19 FY 2006 I FY 2007 I FY2008 I FY2009 I Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Helis One Option for 4 Wells (Mutually Agreeable Dayrate) Firm Options Current Contract Client: Helis Location: USGoM Contract: 8 firm wells Dayrate: $80,000 (One option for up to four (4) additional wells at mutually agreed dayrates.) Est Completion: FY4Q2007 Client: None Follow-on Contract dayrate in thousand USD Dayrate Analysis FY04 (avg) FY05 Current Highest Contracted Commitment As of August 2006

20 Financial Performance 20 Revenue ($mm) Gross Operating Margin $250 $200 $150 $136 $148 $149 $145 $163 $176 $130 $195 60% 50% 40% 55% 53% 50% 32% 39% 43% 43% 47% $100 30% $50 $0 $70 $60 $50 $40 $30 $20 $10 $0 $(10) $(20) (9 mos) (9 mos) Net Income (Loss) ($mm) $63 $23 $27 $28 $26 $19 $8 $(13) (9 mos) (9 mos) 20% 10% 0% (9 mos) (9 mos) Operating Cash Flow 3 and Capex ($mm) $120 $102 $100 $108 $79 $80 $89 $60 $55 $56 $61 $55 $53 $40 $35 $39 $40 $20 $20 $7 $10 $6 $ Capital Expenditures (9 mos) (9 mos)

21 Use of FY 2006 FCF (E) 21 Planned Use of FY 2006 FCF CAPEX - FY 2006 (E) Falcon* Interest Sustaining CAPEX Debt Repayment New Jack-up FY 2006 Upgrade CAPEX in millions USD Atwood Aurora Seahawk Southern Cross FY 2006 * $24 MM of CAPEX to be reimbursed by Client and amortized over a 30 month contract period.

22 22 STRONG BALANCE SHEET As of June 30, 2006 (In Millions) CASH 46 NET PROPERTY AND EQUIPMENT 428 OTHER NET ASSETS 58 LONG-TERM DEBT (73) OTHER LIABILITIES (25) SHAREHOLDERS' EQUITY 434 DEBT TO TOTAL CAP RATIO 14%

23 Investment Highlights 23 Uniquely positioned to benefit from improving international and premium offshore drilling markets Premium, modern fleet as a result of successful fleet upgrade and new rig construction program Well-balanced portfolio consisting of long-term and short-term drilling contracts Strong, long-standing customer relationships Consistent track record of superior financial performance Highly experienced management team

24 24 Investor Relations Contact Jim Holland SVP & CFO Tele: NYSE: ATW