Credit Suisse
19th Annual
Summit Energy
Conference

February 13, 2014

Rob Saltiel
President and CEO
Atwood Oceanics, Inc....
Forward Looking Statements
Statements contained in this report with respect to the future are forward-looking
statements. ...
Investment Thesis

3
Atwood Oceanics Investment Thesis
Modern, high quality rig fleet
 6 UDW floaters and 3 high-specification jackups deliver...
Modern, High Quality Fleet

- $4.5 billion Investment in Expanding our High Specification Rig Fleet

2015 EBITDA: Approxim...
Modern, High Quality Fleet

- Bifurcation – Why the New Rigs will Rule

Specification

“A- Class”
Drillship

Typical
5th G...
Modern, High Quality Fleet
- Revenue-weighted Age of Fleet
DO

RIG

NE

ESV

RDC

ATW

30

Fleet Age (Years)

25
20
15
10
...
Industry-leading Margins and Returns
- Achieving Top-Tier Execution

Value Drivers
Key Enablers
- Centralized
maintenance ...
Industry-leading Margins and Returns
- EBITDA Margin Comparison
RIG

ESV

NE

FY'09

FY'10

FY'11

DO

RDC

ATW

70%

60%
...
Industry-leading Margins and Returns
- Net Income Margin – trailing 8 quarters

40%

35%

34%

30%

27%

27%

25%

24%

20...
Industry-leading Margins and Returns
- Consensus Earnings Reliability
Earnings revisions influence stock price performance...
Market Snapshot

- Floater and Jackup Markets

Ultra-Deepwater

Atwood Advantage

E & P project delays lead to
lack of con...
Earnings Visibility, Predictability and Built-in Growth
- Atwood Fleet Contract Status - (by calendar year)
2014
Rig Class...
Earnings Visibility, Predictability and Built-in Growth
- Revenue Backlog Analysis as of February 1, 2014
By Year

$ Milli...
Earnings Visibility, Predictability and Built-in Growth
- Steady Revenue and Earnings Growth: 2008 - 2016

Revenue

Net In...
Earnings Visibility, Predictability and Built-in Growth
Trailing 4 Quarters EPS Growth, Indexed to Calendar Year 2010

250...
Earnings Visibility, Predictability and Built-in Growth
- Planned Capital Expenditures Fully Financed
• $1.6 billion1 in r...
Summary

18
Atwood Investment Thesis
Modern, High
Quality Rig Fleet

Strong Balance
Sheet providing
Financial Flexibility

Industry-Le...
Thank You

www.atwd.com

20

www.atwd.com
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Credit Suisse Conference Feb 13, 2014

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Credit Suisse, 19th Annual Summit Energy Conference

February 13, 2014

Rob Saltiel
President and CEO
Atwood Oceanics, Inc.

Atwood Oceanics, Inc. is a global offshore drilling contractor engaged in the drilling and completion of exploratory and developmental oil and gas wells. The company currently owns 13 mobile offshore drilling units and is constructing three ultra-deepwater drillships. The company was founded in 1968 and is headquartered in Houston, Texas. Atwood Oceanics, Inc. common stock is traded on the New York Stock Exchange under the symbol "ATW."

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  • Before we begin, let me remind you of the above. A full list of our risks can be found in our quarterly and annual SEC filings.
  • Today I will provide an overview of Atwood Oceanics, walk you thru the details of our growth strategy, recap our view of the market emphasizing Atwood’s fleet and related drilling contracts and share a few thoughts on how we intend financing this growth.
  • Another way to measure cost control plus revenue efficiency are margins. In this chart, you can see……….
  • Another way to measure cost control plus revenue efficiency are margins. In this chart, you can see……….
  • Credit Suisse Conference Feb 13, 2014

    1. 1. Credit Suisse 19th Annual Summit Energy Conference February 13, 2014 Rob Saltiel President and CEO Atwood Oceanics, Inc. Atwood Advantage 1
    2. 2. 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. 3. Investment Thesis 3
    4. 4. Atwood Oceanics Investment Thesis Modern, high quality rig fleet  6 UDW floaters and 3 high-specification jackups delivered from 2011 Industry-leading margins and returns  Early cycle capital investment  Superior revenue efficiency and cost control  Consistent revenue and earnings growth through previous cycles Earnings visibility, predictability and built-in growth  96% of 2014 available days contracted  Limited negative earnings revisions  Expect 15% EPS CAGR through 2016 4
    5. 5. Modern, High Quality Fleet - $4.5 billion Investment in Expanding our High Specification Rig Fleet 2015 EBITDA: Approximately 80%1 derived from UDW floaters and high specification jackups Atwood Mako Atwood Manta Atwood Orca Atwood Archer Atwood Osprey Atwood Condor Atwood Advantage Atwood Achiever 2011 2012 2013 2014 CALENDAR YEAR 5 1 Delivered and Working Under Construction; Contracted Source: FactSet dated February 6, 2014 and Internal Analysis Atwood Admiral 2015
    6. 6. Modern, High Quality Fleet - Bifurcation – Why the New Rigs will Rule Specification “A- Class” Drillship Typical 5th Gen Floater Max Water Depth (Ft) 12,000 10,000 Max Drilling Depth (Ft) 40,000 35,000 Variable Deckload (mt) 23,000 20,000 Dual 15K BOP Yes No BOP Rams 7 6 Hookload (Lbs) 2,500,000 2,000,000 Mud Pumps 5 4 Cranes 3 x 100 mt 3 x 85 mt Compensating Crane Yes – 165 mt No Active Heave with Crown-Mounted Compensator Yes No 6 Atwood Advantage
    7. 7. Modern, High Quality Fleet - Revenue-weighted Age of Fleet DO RIG NE ESV RDC ATW 30 Fleet Age (Years) 25 20 15 10 5 0 2010 7 2011 2012 Source: Johnson Rice & Company, January 2014 2013 2014 2015
    8. 8. Industry-leading Margins and Returns - Achieving Top-Tier Execution Value Drivers Key Enablers - Centralized maintenance and technical support 2011 - Consistent standards - Atwood Osprey and institutionalizing 2012 lessons learned - Atwood Mako - Common equipment - Atwood Condor across rigs and 2013 supplier consolidation - Atwood Manta - Organic growth with - Atwood Orca proven rig designs 2014 and world-class - Atwood shipyards Advantage - Early capital project - Atwood Achiever scoping and detailed 2015 project planning - Atwood Admiral - Experienced project management teams 8 Revenue Efficiency Cost Control Project Management Best-in-class Operating and Net Margins Consistent, Superior Shareholder Returns
    9. 9. Industry-leading Margins and Returns - EBITDA Margin Comparison RIG ESV NE FY'09 FY'10 FY'11 DO RDC ATW 70% 60% 50% 40% 30% 20% FY'08 Source: Tudor, Pickering, Holt & Co. – January 2014 9 FY'12 FY'13 FY'14 FY'15
    10. 10. Industry-leading Margins and Returns - Net Income Margin – trailing 8 quarters 40% 35% 34% 30% 27% 27% 25% 24% 20% 17% 15% 15% 13% RDC RIG* 10% 5% 0% ATW ESV SDRL Source: SEC Financials – Trailing 8 Quarters Net Margin * RIG – Impairment loss not included 10 DO NE
    11. 11. Industry-leading Margins and Returns - Consensus Earnings Reliability Earnings revisions influence stock price performance 2014 EPS Estimate Revisions RIG ESV NE DO RDC 2013 Stock Price Performance ATW 20% 1.05 15% Indexed to 12/31/2012 1.00 0.95 10% 0.90 5% 0.85 0% 0.80 -5% 0.75 -10% 0.70 -15% 0.65 -20% DO Source: Tudor, Pickering, Holt & Co. 11 ESV NE RIG RDC ATW
    12. 12. Market Snapshot - Floater and Jackup Markets Ultra-Deepwater Atwood Advantage E & P project delays lead to lack of contract awards Increased sublet availability in certain geographies Increased customer interest for 2015 project starts 4th and 5th generation rig dayrates under pressure 52 UDW floaters scheduled for delivery in 2014 and 2015 12 Shipyard delivery delays easing contracting pressure Deepwater Atwood Falcon High-Spec Jackups Atwood Mako Bifurcation effect to accentuate utilization differential Continued high utilization and steady dayrates Several assets idle with limited contract opportunities Newbuilds targeted for specific geographic areas Region and asset specific challenges 101 newbuilds scheduled for delivery in 2014 and 2015 may reduce forward utilization rates for standard and commodity jackups
    13. 13. Earnings Visibility, Predictability and Built-in Growth - Atwood Fleet Contract Status - (by calendar year) 2014 Rig Class/Rig Customer Q1 Q2 2015 Q3 Q4 Q1 Q2 2016 Q3 Q4 Q1 Q2 $409K Ultra-Deepwater Drillships Atwood Advantage Noble Energy Atwood Achiever Kosmos Energy Atwood Admiral Available Atwood Archer $584K Available Delivery mid2014 $463K $595K / $661K* Delivery early 2015 Delivery Late 2015 Ultra-Deepwater Semisubs Atwood Osprey Chevron Atwood Condor $490K Shell $470K $555K Deepwater Semisubs Atwood Eagle Apache / Woodside Atwood Falcon Apache / Murphy Oil Atwood Hunter GEPetrol $460K $385K $385K $499K $515K Fiscal 2014 rig availability Jack-Ups Atwood Aurora Glencore / Addax Atwood Beacon ENI Atwood Mako Salamander Atwood Manta CEC International Atwood Orca Mubadala Petroleum 13 Contracted (current) Contracted (follow on work) Shipyard Mobilization (as of 2/01/14) $155K $164K / $193K* $175K $155K $160K $160K Firm Term 22.8 Rig Years Firm Revenue $3.5 Billion * Rates shown are “exclusive of tax / inclusive of tax” Q3 Q4
    14. 14. Earnings Visibility, Predictability and Built-in Growth - Revenue Backlog Analysis as of February 1, 2014 By Year $ Millions By Customer Type $ 1,400 1,200 $1,230 1,000 $960 800 $1.3BN $0.9BN $829 600 400 $1.3BN 200 0 2014 2015 2016 Fiscal Year Percentage of Days Contracted 2014 2015 2016 14 95% 70% 38% Majors/Large NOCs Large Independents Small Independents
    15. 15. Earnings Visibility, Predictability and Built-in Growth - Steady Revenue and Earnings Growth: 2008 - 2016 Revenue Net Income $ Millions $ Millions $2,000 $600 $570 $1,788 $500 $1,600 $1,265 $385 $400 $1,200 $300 $257 $787 $800 $272 $215 $651 $200 $527 $400 $100 $0 $0 2008 15 2010 2012 2014 2016F Note: Revenue and Net Income represented on fiscal year basis. Source: FactSet forecast consensus dated as of January 27, 2014 2008 2010 2012 2014 2016F
    16. 16. Earnings Visibility, Predictability and Built-in Growth Trailing 4 Quarters EPS Growth, Indexed to Calendar Year 2010 250 Index 200 ATW T4Q EPS Peer T4Q EPS 150 100 50 0 16 Source – Johnson Rice & Company, January 2014 -
    17. 17. Earnings Visibility, Predictability and Built-in Growth - Planned Capital Expenditures Fully Financed • $1.6 billion1 in remaining total capital expenditures as of February 1, 2014 • Approximately $1.7 billion in contracted after tax cash flow through FY2016 is available to fund these expenditures • With current liquidity in the revolving credit facility of $245 million and the exercise of the $200 million credit facility accordion, CAPEX is fully funded • Credit metrics peak in FY2014 with the delivery of the Atwood Achiever $ Millions $800 $600 $510 $60 $400 $7022 $510 $4502 $535 $5622 $200 $0 2014 2015 Debt/Cap (EOY) Debt/EBITDA (EOY) 2016 Fiscal Year Contracted Operating Cashflow 17 $525 40.6% 2.6x 35.2% 2.0x 1. Includes $230 million of maintenance and other CAPEX and capital spares for 2014 – 2016 2. Excludes all currently uncontracted operating cashflow Debt CAPEX 27.3% 1.4x
    18. 18. Summary 18
    19. 19. Atwood Investment Thesis Modern, High Quality Rig Fleet Strong Balance Sheet providing Financial Flexibility Industry-Leading Margins Superior Shareholder Returns through the Cycle Solid Earnings and FCF Growth Earnings Visibility and Reliability 19
    20. 20. Thank You www.atwd.com 20 www.atwd.com

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