3. 3Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
InvestmentThesis
Atwood is currently positioned with premium asset exposure in the ultra deepwater
sector of an industry that is trending downward
Atwood Oceanics currently owns one of the most technologically superior fleets in the industry
They boast unsurpassed profit margins and top tier return on capital
Continued organic EPS growth will drive the share price upwards
We recommendAtwood as a Buy with a 12 month price target of $63.00, which
represents an upside of 36.6% from the current share price of $46.13
4. 4Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Business Overview
Headquartered in Houston,Texas
Traded on the NYSE:ATW
Operations in 10 countries
83% of contracts are through foreign countries
Contract oil rigs to exploration and
production companies
Description & Operations 52-WeekTrading Range
Revenue by CustomerKey Statistics
Market Data Capital Structure
Current Price $46.13 Net Debt $1,563.6M
Market Cap $2962M Cash $132.5M
P/E Ratio 8.39x Current Ratio 2.9x
Price/Book 1.29x Quick Ratio 1.8x
Operations Value
TTM Revenue $1,103M EV/Revenue 4.0x
Profit Margin 34.00% EV/EBITDA 7.8x
Diluted EPS $5.50 EV/Cash Flow 10.0x
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
19%
15%
15%14%
37% Chevron
Apache Energy
Hess Corporation
Noble Energy
Other
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
0
10
20
30
40
50
60
70
4/10/2013 7/10/2013 10/10/2013 1/10/2014
Millions
StockPrice
5. 5Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Industry Overview
Perceived over-supply of rigs in the offshore
drilling industry
Pressure on day rates is causing pessimistic
outlook on EPS for the next 12-18 months
Macroeconomic Situation Indexed 2014 EPS Revisions
Industry Revenue BreakdownSwingTowards Ultra Deepwater
38%
19%
12%
6%
21%
4%
Transocean
Ensco
Diamond Offshore
Rowan Companies
Seadrill
Atwood Oceanics
0.65
0.70
0.75
0.80
0.85
0.90
0.95
1.00
1.05
ATW
RIG
ESV
DO
RDC
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg, Barrons
8%
7%
85%
Newbuild
34%
54%
12%
Operating
Less than 4500 4500-7500 Greater than 7500
Water depth (ft.)
6. 6Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Industry Rig Breakdown
Ultra Deepwater Drillships
Self-Propelled, large amounts of supplies
Semisubmersible Rigs
Can operate in more severe sea conditions
Jack-up Rigs
Supported by three legs and drill in shallow water
Types of Rigs Percentage of Drillships with Dual BOP
Average Day Rate by RigTypeAge of Contracted Jack-up Fleet
0
100
200
300
400
500
600
700
Ultra-Deepwater
Drillships
Semisubmersible
Rigs
Jackup Drilling
Rigs
(inthousands)
Industry Average Day Rate
Atwood Average Day Rate
Sources: Atwood 10k, RigZone
0
50
100
150
200
250
2013 2014E 2015E 2020E
NumberofRigs
40 years or more 35 years or more 30 years or more
0%
20%
40%
60%
80%
100%
ATW RDC DO NE RIG ESV SDRL
7. 7Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Effects of Oil
A large portion of revenue has already been
locked in over the next three years
95% for remaining fiscal 2014
72% for fiscal 2015
43% for fiscal 2016
Contract Status Atwood vs. Markets
IEA’s Oil Scenarios
60
70
80
90
100
110
120
130
140
150
160
2008 2009 2010 2011 2012 2013IndexedReturn
Atwood Oceanics
NYSE/AMEX/NASDAQ Stock Markets
Atwood-Determined Peer Group
Brent Oil
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg, IEA projections
$0
$20
$40
$60
$80
$100
$120
$140
$160
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
Brentpriceperbarrel
Current Policies Scenario New Policies 450 Scenario Historical
8. 8Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
“A-Class”Additions
RevenueWeightedAge of Fleet
Project Status
Specification
"A-Class"
Drillship
Typical 5th Gen
Drillship
MaxWater 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
0
10
20
30
2010 2011 2012 2013 2014 2015
FleetAge(years)
ATW DO RIG NE ESV
The Benefits
Atwood’s recent cash flow has gone toward
the production of four “A-Class” ships
The Atwood Advantage was completed in
November 2013 and is currently mobilizing to the
Gulf of Mexico
The Atwood Achiever will be completed in June
2014 when it will pick up contract off the coast of
Morocco
The Atwood Admiral and Atwood Archer are
slated to be completed in March and December 2015,
respectively
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k
9. 9Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
MarginAnalysis
Atwood has numerous clauses in contracts
that protect against margin erosion
Currency stability
Margin preservation
Built-in CPI growth
Forms of Day Rates
CAGR Projections for 2012-2020Variable Contracts
Three main types of day rates
Full-operating rate
Moving rate
Weather rate/repair rate
0%
10%
20%
30%
40%
ATW ESV SDRL DO NE RDC RIG
Sources: Management Conference Call, Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Rystad Energy Consulting
2013 Profit Margin
0%
4%
8%
12%
16%
20%
Offshore Ultra
Deepwater
On Shore Offshore Shelf Offshore Deepwater
10. 10Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Margin Expansion Opportunities
Higher day rates
Accompanied by similar costs
Atwood’s class “A” drillships have already
begun to hit the market, propelling margins
higher
Newer Fleet Benefits
2015 Projected Revenue Breakdown2013 Revenue Breakdown
54%
29%
17%
Ultra Deepwater
Floaters
High Spec Jackups
Other
32%
25%
43%
Ultra Deepwater
Floaters
High Spec Jackups
Other
Sources: Management Conference Call, Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Rystad Energy
Discovered Resources
0
20
40
60
80
100
120
140
1980 1985 1990 1995 2000 2005 2013
(inbillionsofboe)
Shelf Deepwater Ultra Deepwater
11. 11Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Revenue Backlog
Ultra Deepwater revenue backlog will
continue to drive margin expansion
TheAtwoodAdvantage andAtwoodAchiever will
fulfill most of the current backlog
TheAtwoodArcher andAtwoodAdmiral will
continue to drive revenue past 2016
Atwood’s contracts moving forward are
with a variety of customers, providing an
additional layer of safety
Margin Benefits Backlog by RigType
Backlog by CustomerTypeRevenue Diversification
0
200
400
600
800
1000
2014 2015 2016
RevenueBacklog(m)
Ultra-deepwater
Deepwater
Jackups
37%
34%
29%
Majors/Large NOCs
Large Independents
Small Independents
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
12. 12Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Management
Organic growth driven by internal
investment in high end drill ships
High returns on internal investment justify
Atwood’s retention of capital
Very centralized and consistent business
dealings
Common parts and systems across ships
“Lessons are learned once and passed across
the crew and fleet”
Organic Growth Opportunities Return on Capital
Utilization Rate of In-Service RigsManagement Efficiency
0%
4%
8%
12%
16%
20%
RDC RIG ESV NE ATW SDRL DO
2014
2015
75%
80%
85%
90%
95%
100%
2009 2010 2011 2012 2013
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
13. 13Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Earnings Overview
Strong internal investment in new fleet is
driving top line growth
Slight margin expansion will also contribute
to EPS growth
There is a perceived over supply of rigs
New round of upgrades to jack-up market
Negative sentiment on the overall industry
A softening of day rates is projected
Drivers Historical and Projected EPS
Consensus vs.Actual EarningsReason for Analyst Pessimism
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
0%
10%
20%
30%
40%
50%
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
EPSYOYGrowth
EPS
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$1.80
Q4 -
2012
Q1 -
2013
Q2 -
2013
Q3 -
2013
Q4 -
2013
Q1 -
2014
EPS
Estimate
Reported
14. 14Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Financing and Capex Analysis
Atwood has all of its new-build capex
covered with locked in future cash flow
These figures come from only 72% and
43% of the fleet being contracted for 2015
and 2016, respectively
Management expects to refinance a $605
million note due in May 2020
Plan to convert a portion of the revolving
credit facility to long term debt
Seek to maintain around 30% debt to
capital to keepWACC low
Capital Expenditure Coverage Financing of Capital Expenditures
Key MetricsNatural Deleveraging
$405
$707
$581
$85
$490 $520 $525
0
100
200
300
400
500
600
700
800
2014 2015 2016
(inmillions)
Contracted Operating Cash Flow Debt Capex
Sources: Management Conference Call, Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
Debt to Capital Debt to EBITDA
2013 42% 3.1x
2016E 29% 1.5x
15. 15Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
SWOTAnalysis
Strong Margins
Future deleveraging
Strong contracts with hedging for costs and
currency fluctuation
New cutting edge fleet
Explosive growth in the Gulf of Mexico
Strong market demand for new, high spec
rigs
Discovery of new oil fields in ultra
deepwater locations
Financing of Capital Expenditures
Key MetricsNatural Deleveraging
Increased competition in the offshore
market
Stagnation of Brent market
Increased rig supply
Uncontrollable weather events
Governmental regulation
Sources: Management Conference Call, Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
Taking two ships out of cold stacked storage
would be expensive ($50-100 million each)
Not a strong history of cashflows
WeaknessesStrengths
Opportunities Threats
16. 16Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Valuation
Public comparables does not give a
completely accurate valuation
Atwood has been grouped in with a softening
industry
EV/EBITDA ratios vary significantly, leading to
wide valuation range
ComparablesAnalysis Football Field
Segmented DCF Sensitivity AnalysisSegmented DCF vs. DCF
Implied Share Price Sensitivity
WACC
64.97 8.0% 8.3% 8.6% 8.9% 9.2%
4.0% $87.04 $80.82 $75.26 $70.28 $65.79
2.0% $81.36 $75.42 $70.12 $65.36 $61.07
Day Rate Step 0.0% $75.68 $70.02 $64.97 $60.44 $56.35
(3.0%) $67.16 $61.93 $57.25 $53.06 $49.27
(6.0%) $58.65 $53.83 $49.53 $45.67 $42.19
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
Segmented DCF was done by breaking
down revenue projections by each oil rig
Used contracted day rates and operating margins
to project revenue
$35.00 $45.00 $55.00 $65.00 $75.00
DCF
Segmented DCF
Comparables
17. 17Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Valuation
Segmented DCFValuation Calculation ofWACC
ComparablesValuationDCFValuation
Sources: Atwood Oceanics Howard Weil Presentation, Atwood Oceanics 10k, Bloomberg
Debt
Cost of Debt 6.5%
Equity
Cost of Equity 10.2%
Beta 1.40
Risk-Free Rate 2.9%
Return on Market 10.0%
Weighted Average Cost of Capital
Market Value of Equity 3,263.9
Market Value of Debt 1,691.2
Total 4,955.1
Tax Rate 14.0%
WACC 8.64%
PPG Method at 2.75%
Terminal Value 8,273.6
Implied TV EBITDA Multiple 6.6x
Present Value
PV of Free Cash Flows 424.0
PV of Terminal Value 5,468.1
Implied Enterprise Value 5,892.1
Net Debt 1,563.6
Equity Value 4,328.4
Shares Outstanding 64.1
Implied Price per Share 67.53
Implied Premium to Current Price 46.4%
PPG Method at 2.75%
Terminal Value 7,297.7
Implied TV EBITDA Multiple 6.4x
Present Value
PV of Free Cash Flows 599.2
PV of Terminal Value 5,239.6
Implied Enterprise Value 5,838.8
Net Debt 1,563.6
Equity Value 4,275.1
Shares Outstanding 65.8
Implied Price per Share 64.97
Implied Premium to Current Price 40.8%
Implied Valuation
EV/EBITDA
1st Quartile Median Mean 3rd Quartile
Implied Share Price $38.74 $52.02 $52.84 $65.83
Upside (16.0%) 12.8% 14.5% 42.7%
18. 18Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
FinalThoughts
Atwood Oceanics currently owns the most technologically superior fleet in the industry
The “A-Class” drillship,AtwoodAdvantage, is deploying to the Gulf of Mexico
TheAtwoodAchiever is scheduled for deployment in June 2014
TheAtwoodArcher andAtwoodAdmiral will come online in 2015
Within the industry,Atwood boasts unsurpassed profit margins and top tier return on capital
Ultra deepwater drillships will drive margin expansion
Strong internal investment and management efficiency
Continued organic EPS growth will help drive the share price upwards
New drillships will drive top-line growth while keeping margins high
Atwood’s locked in day rates are industry-leading
We recommendAtwood as a Buy with a 12 month price target of $63.00, which
represents an upside of 36.6%
20. 20Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
AppendixTable of Contents
Pro Forma Income Statement
Pro Forma Balance Sheet
Pro Forma Statement of Cash Flows
Segmented DCF Revenue Projections
Comparable CompaniesAnalysis
Fleet Location
Contract Overlook
Competitors 1
Competitors 2
21. 21Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Back
Pro Forma Income Statement
Income Statement Historical Projections
2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E
Total Revenue 586.5 650.6 645.1 787.4 1,063.7 1,255.2 1,518.8 1,792.1 2,060.9 2,308.3
Contract Drilling 586.5 650.6 637.2 756.0 1,017.9 1,201.1 1,453.4 1,715.0 1,972.2 2,208.9
Revenues related to reimbursable expenses 0.0 0.0 7.9 31.4 45.8 54.0 65.4 77.2 88.7 99.4
Operating Costs and Expenses
Contract Drilling 221.7 252.4 218.8 328.5 426.2 480.4 566.8 668.8 769.2 861.5
Depreciation 35.1 37.1 43.6 70.6 117.5 143.4 163.9 184.5 208.3 235.4
Reimbursable expenses 0.0 0.0 4.7 18.7 32.7 33.5 40.5 47.8 55.0 61.6
General and administrative 31.6 40.7 44.4 49.8 56.8 74.1 86.6 98.6 109.2 117.7
Other, net (0.4) (1.9) 4.9 0.4 1.0 2.5 3.0 3.6 4.1 4.6
Total Operating Costs and Expenses 288.0 328.3 316.4 468.0 634.2 733.9 860.9 1,003.3 1,145.8 1,280.8
Operating Income 298.5 322.3 328.7 319.4 429.5 521.3 657.9 788.8 915.1 1,027.4
Interest Expense 2.3 2.7 4.5 6.5 24.9 84.2 70.7 57.2 43.8 61.4
Foreign Exchange Losses (Gains) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Non-Operating Losses (Gains) (0.7) (0.4) (0.7) (0.4) (0.2) (0.1) (0.1) (0.1) (0.1) (0.1)
Pretax Income 296.4 320.0 324.8 313.3 404.8 437.2 587.3 731.7 871.5 966.1
Income Tax Expense 45.7 63.0 53.2 41.1 54.6 61.2 82.2 102.4 122.0 135.3
Income Before XO Items 250.7 257.0 271.7 272.2 350.2 376.0 505.1 629.2 749.5 830.8
Extraordinary Loss Net of Tax 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Minority Interests 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net Income
Net Income 250.7 257.0 271.7 272.2 350.2 376.0 505.1 629.2 749.5 830.8
Abnormal Losses (Gains) (0.4) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Tax Effect on Abnormal Items 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Normalized Income 250.5 257.0 271.7 272.2 350.2 376.0 505.1 629.2 749.5 830.8
Basic EPS Before Abnormal Items 3.90 3.99 4.20 4.17 5.38 5.87 7.88 9.82 11.69 12.96
Basic EPS Before XO Items 3.91 3.99 4.20 4.17 5.38 5.87 7.88 9.82 11.69 12.96
Basic EPS 3.91 3.99 4.20 4.17 5.38 5.87 7.88 9.82 11.69 12.96
Basic Weighted Average Shares 64.17 64.39 64.75 65.27 65.07 64.10 64.10 64.10 64.10 64.10
Diluted EPS Before Abnormal Items 3.89 3.95 4.15 4.14 5.32 5.78 7.77 9.68 11.53 12.78
Diluted EPS Before XO Items 3.89 3.95 4.15 4.14 5.32 5.78 7.77 9.68 11.53 12.78
Diluted EPS 3.89 3.95 4.15 4.14 5.32 5.78 7.77 9.68 11.53 12.78
Diluted Weighted Average Shares 64.49 65.03 65.40 65.78 65.85 65.00 65.00 65.00 65.00 65.00
Dividends Declared per Share 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBITDA 33.2 359.4 372.3 390.0 547.0 664.6 821.8 973.3 1123.4 1262.8
Assumptions
Revenue - 10.9% (0.8%) 22.1% 35.1% 18.00% 21.00% 18.00% 15.00% 12.00%
Contract Drilling Expense as a % of Contract Revenue 37.8% 38.8% 34.3% 43.5% 41.9% 40.00% 39.00% 39.00% 39.00% 39.00%
Reimbursable Expense as a % of Reimbursable Revenue - - 59.5% 59.6% 71.4% 62.00% 62.00% 62.00% 62.00% 62.00%
General and administrative as a % of Total Revenue 5.4% 6.3% 6.9% 6.3% 5.3% 5.90% 5.70% 5.50% 5.30% 5.10%
Other Expenses as a % of Total Revenue (0.1%) (0.3%) 0.8% 0.1% 0.1% 0.20% 0.20% 0.20% 0.20% 0.20%
Interest Expense Rate 0.8% 1.2% 0.9% 0.8% 2.0% 5.00% 4.20% 3.40% 2.60% 3.65%
Tax Rate 15.4% 19.7% 16.4% 13.1% 13.5% 14.00% 14.00% 14.00% 14.00% 14.00%
27. 27Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Back
Contract Overlook
Rig Class/Rig Customer
2014 2015 2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Ultra Deepwater Drillships
Atwood Advantage Noble Energy
Atwood Achiever Kosmos Energy
Atwood Admiral Available
Atwood Archer Available
Ultra Deepwater Semisubs
Atwood Osprey Chevron
Atwood Condor Shell
Deepwater Semisubs
Atwood Eagle Apache / Woodside
Atwood Falcon Apache / Murphy Oil
Atwood Hunter GEPetrol
Jack-Ups
Atwood Aurora Glencore / Addax
Atwood Beacon ENI
Atwood Mako Salamander
Atwood Manta CEC International
Atwood Orca Mubadala Petroleum
$584K
June Delivery $595K
Delivery early 2015
Delivery late 2015
$490K $470K
$385K $460K
$385K $499K
$515K
$155K $158K
$175K
$155K
$160K
$160K
$463K
$409K
$555K
Contracted (current) Contracted (follow on work) Shipyard Mobilization
Sources: Atwood Oceanics Howard Weil Presentation
28. 28Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Back
Competitors
Current Fleet – 91 Rigs
10% of fleet will be 6th gen ultra deepwater
drillships by late-2017
Aging Fleet
Lawsuits in Europe andAmerica
Transocean Ensco
Rig BreakdownUncommitted Fleet Rate
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
2014 2015 2016
High-Specification Floater Midwater Floaters High-Specification Jackups
Current Fleet – 74 Rigs
12% of fleet will be 6th generation ultra
deepwater drillships by late-2016
Rig Utilization rates have been south of
90% since 2009
13%
26%
61%
Drillships
Semisubmersibles
Jackups
Sources: Transocean 10-k, Howard Weil Presentation, Ensco 10-k
29. 29Appendix
Valuation & Final
Thoughts
Growth Opportunities
& Drivers
Industry Dynamics
Investment Thesis &
Overview
Back
Competitors
Current Fleet – 70 Rigs
16% of fleet will be 6th gen ultra deepwater
drillships by late-2015
Pays a 11% dividend
94.8% Debt/Mkt. Cap
Seadrill Rowan
Utilization RateDividends vs. Net Income
Current Fleet – 34 Rigs
12% of fleet will be 6th gen ultra deepwater
drillships by late-2015
Investing heavily in jack-up market
66.0%
77.0%
81.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2011 2012 2013
$0
$500
$1,000
$1,500
$2,000
2011 2012 2013
(inmillions)
Dividend Net Income
Sources: Seadrill 10-k, Howard Weil Presentation, Rowan 10-k