Energy Summit. February 5-6, Rob Saltiel

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Transcription:

2013 Credit Suisse Energy Summit February 5-6, 2013 Rob Saltiel President and CEO 1

Forward Looking Statements Statements contained in this report with respect to the future are forward-looking statements. These statements reflect management s reasonable judgment with respect to future events. Forward-looking statements are subject to numerous risks, uncertainties and assumptions and actual results could differ materially from those anticipated as a result of various factors including: uncertainties related to the level of activity in offshore oil and gas exploration and development; oil and gas prices; competition and market conditions in the contract drilling industry; the risks inherent in the construction of a rig; delays in the commencement of operations of a rig following delivery; our ability to enter into and the terms of future contracts; possible cancelation or suspension of drilling contracts; the availability of qualified personnel; labor relations; operating hazards and risks; terrorism and political and other uncertainties inherent in foreign operations (including risks of war, civil disturbances, seizure or damage to equipment, and exchange and currency fluctuations); the impact of governmental and industry laws and regulations; and environmental matters. These factors and others are described and discussed in our most recently filed annual report on Form 10-K, in our Forms 10-Q for subsequent periods and in our other filings with the Securities and Exchange Commission which are available on the SEC s website at www.sec.gov. Each forward looking statement speaks only as of the date of this presentation and we undertake no duty to update the content of this presentation or any forward-looking statement contained herein to conform the statement to actual results or to reflect changes in our expectations. 2

3 Company Overview

Transforming Atwood Oceanics Industry leading safety performance Industry-leading coupled with consistent and reliable operational performance Top-tier Top tier revenue efficiency and strict cost control leading to: Best-in-class margins Leading shareholder returns Significant investment in fleet transformation 120% of Enterprise Value invested over 2011 2015 titimeframe f 2011-2015 Youngest ultra-deepwater floater and high specification jack-up fleets in the industry Funded predominantly by cashflow from operations Current contract backlog of $2.6 billion Optimized balance sheet 4 Fully funded capital expenditure program Substantial financial flexibility

Delivering Shareholder Value Revenue Efficiency Cost Control Project Management Execution - Centralized maintenance and technical support 2011 - Consistent compliance - Atwood monitoring Osprey and issue 2012 resolution - Atwood - Common Mako equipment - Atwood across Condor rigs 2013 - Supplier consolidation - Atwood - Organic Manta growth with - Atwood proven Orca rig designs 2014 and world-class - Atwood shipyards Advantage - Early capital project - Atwood scoping Achiever and detailed 2015 project planning - Atwood - Experienced Admiral project management teams Best-in-class Operating and Net Margins Consistent, Superior Shareholder Returns 5

Steady Revenue Growth and Strong Margins 2007-2012 $ Millions Atwood Condor and Atwood Mako delivered $800 $700 $600 Revenue EBITDA Atwood Aurora delivered $587 Atwood Osprey delivered $651 $645 $787 $500 $527 $400 $300 $403 $334 $359 $372 $390 $279 $200 $193 $100 $0 2007 2008 2009 2010 2011 2012 EBITDA Margins: 48.8% 53.1% 56.9% 55.2% 57.7% 49.5% 6 Note: Revenue and EBITDA represented on fiscal year basis.

Industry Leading Margins and Capital Returns 35% 30% ESV SDRL ESV ATW SDRL ATW 25% 20% Net Margins 15% RDC RIG RDC RIG NE NE DO DO FY 13 FY 14 10% 5% 0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Capital Return* 7 Note: DO = Diamond Offshore, ESV = Ensco, NE = Noble, RDC = Rowan, RIG = Transocean, SDRL = Seadrill Capital Return = Net Income / (Debt + Shareholders Equity) Source: First Call estimates dated February 1, 2013

Diversified Rig Fleet and Global Presence Atwood s fleet has a strong presence in Australia, Southeast Asia and West Africa ATWOOD BEACON ATWOOD ADVANTAGE ATWOOD ACHIEVER Houston, Texas ATWOOD AURORA ATWOOD HUNTER ATWOOD ORCA ATWOOD ADMIRAL VICKSBURG ATWOOD MAKO ATWOOD MANTA ATWOOD FALCON ATWOOD OSPREY ATWOOD EAGLE ATWOOD CONDOR Headquarters UDW / DW Semisubmersibles Jack-ups Newbuild Drillships Newbuild Jack-ups 8

9 Growth Strategy

Executing our Growth Strategy Maximize operating and financial performance from existing fleet to generate cash flow to fund growth Revenue efficiency Cost control Expand and renew rig fleet, emphasizing high-specification jackups and floaters Ultra-deepwater t will remain primary investment t focus Target financial returns well in excess of our cost of capital 15% - 20% IRR Payback in less than 6 years Achieve organic fleet growth with minimal execution risk Proven rig designs World class shipyards Turnkey contracts (with back-end weighted payment terms) Large, experienced, shipyard-based project management teams Maintain prudent, flexible and diverse sources of funding 10

Adding UDW and High Specification Rigs 2011 2015 Rig Fleet Additions Atwood Mako 5 Ultra-Deepwater Floaters 3 High-Spec Jackups $3.8 Billion Investment Atwood Manta Atwood Orca Atwood Osprey Atwood Condor Atwood Advantage Atwood Achiever Atwood Admiral 2011 2012 2013 2014 2015 CALENDAR YEAR 11

Newbuild Ultra-Deepwater A Class Drillships * Design and Capabilities 12,000 ft. ft. water depth capability Seven-ram DP-3 positioning BOP with acoustic package 1,250 Two seven-ram ton main load BOPs path with hook acoustic load packages 1,250 active heave drawworks 1,250 ton main load path hook load 1,250 top drive 1,0001,250 ton auxiliary active load heave path drawworks hook load 1,000 1,250 ton top drawworks drive 1,000 1,000 ton auxiliary ton top drive load path hook load 4 x 2,200 1,000 HP ton high-pressure drawworksmud pumps plus Atwood Advantage (2013) riser boost 1,000 pump ton top drive Atwood Achiever (2014) 165 4 x 2,200 ton 200 knuckle HP kl high-pressure boom tree running mud crane pumps plus Atwood Admiral (2015) 3 plus x 100 riser MT boost knuckle pump boom cranes Accommodations 165 ton knuckle boom for up to tree 200 running crane plus 3 x 100 MT knuckle boom cranes Accommodations for up to 200 12 * Plus an option for 1 additional drillship with an expiration on June 30, 2013

Newbuild High-Specification Jackups Design and Capabilities Atwood Mako (working) Atwood Manta (working) Atwood Orca (May 2013) 13 Pacific Class (Baker Marine) design Pacific Class (Baker Marine) 400400 design 400 ft.water waterdepth depthcapability capability 400 ft. 750 tontraveling travelingequipment equipment 750 ton 18 ¾ 15,000 15,000 psi p BOP BOP y 18 ¾,, ppsi System ysystem 3 x 2200 2200HP HPmud mudpumps pumps 7500 forfor 7500 psi psi True offlinestand-building stand-building True offline High capacitymud mud High capacity pitspits High capacitydrill drillwater water tanks High capacity tanks 75 ft.cantilever cantilever 75 ft. Accommodations for150 150 with 2 man Accommodations for with 2 man rooms rooms or better or better

Improving Revenue Quality 2011 vs. 2015 FY 2011 Revenue FY 2015 Revenue 9% 10% 20% 80% 55% 25% High Spec Jackups Other Ultra Deepwater Floaters High Spec Jackups Other Ultra Deepwater Floaters 14 Source: Atwood internal analysis (pro forma estimate for FY 2015)

15 Market Outlook and Contracts

Bullish Outlook for Ultra-Deepwater UDW day rates have risen rapidly as new discoveries and a bullish oil price outlook increase worldwide exploration and appraisal activity and support future development drilling projects UDW rig demand expected to grow significantly in the Golden Triangle driven by: US Gulf of Mexico s continuing recovery and exploration successes Petrobras oil production growth Emerging pre-salt plays in West Africa Expansion of UDW drilling to frontier areas is already consuming rig activity and portends further increases in demand over the next five years UDW newbuild programs by existing drillers are supported by operators preference for high-specification assets and the need to replace older, low-specification rigs Demand for UDW rigs expected to exceed supply for the foreseeable future, supporting a strong outlook on day rates 16

Favorable Jack-Up Outlook 17 Bifurcation in both utilization and dayrates continues between high-specification and standard jack-ups Utilization differentiation currently around 10% Dayrate differentiation increasing Market outlook for 2013 appears favorable Overall utilization rates for actively-marketed rigs continue to increase Dayrates currently in the $155,000 to $180,000 range, depending on the geographic region and contract term Many older rigs are not likely to return to market 63 jack-ups currently either warm or cold stacked 30 jack-up rigs have been permanently removed from the fleet since 2011; this is more than the aggregate for the period 1996 to 2010 Cold-stacked units face extensive reactivation costs Jack-up demand continues to shift toward newer, high-specification rigs Source IHS Petrodata, ISI Group, Pareto Securities

Atwood Fleet Contract Status (by calendar year) Rig Class/Rig Customer Ultra-Deepwater Drillships 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Atwood Advantage Noble Energy $409K $584K Atwood Achiever Available Delivery mid-2014 Atwood Admiral Available Delivery early 2015 Ultra-Deepwater Semisubs Atwood Osprey Chevron $490K $470K Atwood Condor Hess / Shell $514K Deepwater Semisubs Atwood Eagle Woodside / Apache $436K / $385K Atwood Falcon Apache $385K Atwood Hunter Noble Energy $388K-$435K $435K Jack-Ups $134 Atwood Aurora Bowleven / Glencore $155K Atwood Beacon Shemen Oil $151K Vicksburg CEC International $105 $115K Atwood Mako Salamander $145K $155K Atwood Manta CEC International $145K Atwood Orca Mubadala Petroleum $160 18 Contracted (current) Contracted (follow on work) Uncontracted Shipyard (as of 2/01/13) Mobilization Firm Rig Years 19.3 Firm Revenue $ Billions 2.6

19 Financial Considerations

Future Capital Expenditures Fully Financed $2.0 billion* in remaining total capital expenditures as of January 1, 2013 Approximately $1.0 billion in contracted after tax cashflow through 2015 is available to fund these expenditures With the exercise of the $550 million Credit Facility accordion, we are fully funded for all construction costs Credit metrics peak in mid- 2014 with the delivery of the Atwood Achiever ($ millions) 1,000 900 800 700 600 500 400 300 624 200 100 195 429 910 464 101 345 470 245 225 Debt-to-cap to and debt to 0 EBITDA ratios are maintained below 40% and 2.7 times, respectively 2013 2014 2015 Fiscal Year Capex Contracted Cashflow Uncontracted Cash Flow Debt 20 * Includes $225 million of maintenance and other capex and capital spares for 2013, 2014 and 2015

Earnings Growth Through Newbuild Rig Deliveries Potential ti Incremental $6.25 Earnings Per Share from Newbuild Rig Deliveries* i Atwood Condor Atwood Mako Atwood Manta Atwood Orca Atwood Manta Atwood Orca Atwood Advantage Atwood Achiever Atwood Achiever Atwood Admiral Atwood Admiral $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 FY 2013 FY 2014 FY 2015 FY 2016 High-Spec Jack Ups Ultra-Deepwater Floaters Assumptions: UDW Floaters Dayrate of $575,000, operating cost of $190,000 (inflation-adjusted), revenue efficiency of 95% and a tax rate of 13% High Specifications Jack-ups Dayrate of $155,000,operating costs of $71,000 (inflation-adjusted), revenue efficiency of 95% and a tax rate of 13% 21 * EPS analysis excludes any increases in Operating or SG&A costs or interest expense during the 4 year period

22 Summary

The Atwood Advantage High-Quality Operating Fleet with Aggressive Growth Initiative Knowledgeable and Experienced Management Team Attractive Geographic Diversity Strong Backlog with High Quality Customers Significant Liquidity and Financial Flexibility Industry-Leading Margins and Shareholder Returns 23 History and Reputation of Safe and Efficient Operations

Thank You www.atwd.com www.atwd.com 24

Balance Sheet Supports Growth Debt/Capitalization* Debt/EBITDA* Bullet 1 65% 51 5.1 38% 48% 3.2 3.2 3.7 4.1 24% 25% 29% 30% 2.1 1.1 RDC DO ESV ATW NE RIG SDRL DO ATW RDC NE ESV RIG SDRL Issued $450 million in Senior Unsecured bonds on January 12, 2012 Upsized the revolving credit facility s accordion from $350 to $550 million Liquidity of approximately $500 million plus the unexercised accordion 25 * EBITDA for trailing twelve months at September 30, 2012 Source: First Call

Remaining Newbuild Capital Expenditures Newbuild Capex Total = $3.2 billion (millions) Capital Expenditure Outlook Funded 55% cash flow from operations, 45% from revolving credit facility $1,700 Paid as of 12/31/12 Bullet 2 & 3 $1,500 Remaining $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 $613 $69 $544 $908 $78 $830 $494 $69 $425 FY2013 FY2014 FY2015 Newbuild Capex Maintenance/Spares $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 26

Growing Revenue and Cash Flow Backlog ($ millions) Bullet 4 February 1, 2013 Revenue Backlog After-Tax Cash Flow Backlog $2.6 billion $1.3 billion $910 $714 $352 $461 $438 $237 $386 $212 $145 $76 2013 2014 2015 2016 2017 CONTRACT REVENUES Fiscal Year CONTRACT AFTER-TAX CASH FLOW 27