This document provides an overview and summary of Atwood Oceanics for investors attending the 20th Annual Oil & Offshore Conference. It summarizes Atwood's strategy of modernizing and expanding its fleet through newbuild rig deliveries from 2011-2015. This will provide a younger fleet of ultra-deepwater floaters and high-spec jackups. The summary also outlines Atwood's strong safety and operating performance, revenue efficiency, and focus on superior shareholder returns. Key details include $3.9 billion in contracted backlog through 2016 and funding for remaining capital expenditures of $1.4 billion through operating cash flows and credit facilities.
1. 1
September 4, 2013
Pareto Securities 20th
Annual Oil & Offshore
Conference
Mark L. Mey
Sr. Vice President and CFO
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.
4. 4
Transforming Atwood Oceanics
Multi-year investment in fleet modernization and expansion
Delivering 6 UDW floater and 3 jackup newbuilds from 2011 through
2015
Will own youngest high-specification floater and jack-up fleets in the
industry
Industry-leading safety and reliability performance
Top-tier revenue efficiency, cost control and project management
leads to:
Best-in-class margins
Superior shareholder returns
Growth is fully funded and sourced predominantly from operating
cash flow
Current contract backlog of $3.9 billion
Retain substantial balance sheet flexibility
5. 5
$245
Q1
$527
$651
$787
$253
Q2
$273
Q3
$288*
Q4
$0
$200
$400
$600
$800
$1,000
$1,200
2008 2010 2012 2013
Note: Revenue and Net Income represented on fiscal year basis.
Source: * IPREO Factset dated August 27, 2013
Steady Revenue and Earnings Growth
2008-Present
$ Millions
$73
Q1
$215
$257
$272
$86
Q2
$90
Q3
$96*
Q4
$0
$50
$100
$150
$200
$250
$300
$350
2008 2010 2012 2013
$ Millions
Revenue Net Income
6. 6
Shareholder Return: ATW Vs. Peers*
*As of August 28, 2013
Source: FactSet
125.7%
-4.7%
26.3% 26.6%
41.5%
47.4%
154.2%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
ATW RIG NE DO RDC ESV SDRL
Total Shareholder Return: 3 Year Comparison
809.9%
52.8%
118.7% 125.3% 133.8%
416.5%
0%
100%
200%
300%
400%
500%
600%
700%
800%
900%
ATW RDC RIG ESV NE DO
Total Shareholder Return: 10 Year Comparison
4085.0%
745.7%
290.9%
0%
500%
1000%
1500%
2000%
2500%
3000%
3500%
4000%
4500%
ATW NE RDC
Total Shareholder Return: 20 Year Comparison
25.0%
-4.6%
0.8%
2.7% 2.9%
3.4%
20.5%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
ATW RIG ESV RDC NE DO SDRL
Total Shareholder Return: 1 Year Comparison
7. 7
Expanding our High Specification Rig Fleet
Five newbuilds delivered on budget and ahead of schedule
2011 2012 2013 2014 2015
Atwood Osprey
Atwood Orca
Atwood Mako
Atwood Manta
Atwood AdvantageAtwood Condor
CALENDAR YEAR
6 Ultra-Deepwater Floaters
3 High-Spec Jackups
$4.5 Billion Investment
Projected $57 million potential annual revenue per jackup
Projected $200 million potential annual revenue per UDW
$1.4 billion in potential total annual revenue from these 9 rigs
Atwood Achiever Atwood Admiral
Delivered and Working Under Construction; Contracted
Atwood Archer
8. 8
Improving Revenue Quality – 2011 vs. 2015
*Source: Atwood internal analysis (pro forma estimate for FY 2015)
10%
80%
10%
FY 2011 Revenue
Ultra Deepwater Floaters
High Spec Jackups
Other
17%
29%
54%
FY 2015 Revenue*
Ultra Deepwater Floaters
High Spec Jackups
Other
9. 9
Fleet Transformation and Growth
Atwood’s fleet has a strong presence in Australia, Southeast Asia and West Africa
Houston, Texas
Headquarters UDW / DW Semisubmersibles
ATWOOD EAGLE
ATWOOD FALCON
ATWOOD HUNTER
ATWOOD OSPREY
ATWOOD CONDOR
VICKSBURG
ATWOOD BEACON
ATWOOD AURORA
Jack-ups
ATWOOD MANTA
ATWOOD ORCA
ATWOOD MAKO
Newbuild Drillships
ATWOOD ADVANTAGE
ATWOOD ACHIEVER
ATWOOD ADMIRAL
ATWOOD ARCHER
11. 11
Revenue
Efficiency
Achieving Top-Tier Execution
Cost
Control
Project
Management
Best-in-class Operating and Net
Margins
Consistent, Superior Shareholder
Returns
2011
- Atwood Osprey
2012
- Atwood Mako
- Atwood Condor
2013
- Atwood Manta
- Atwood Orca
2014
- Atwood
Advantage
- Atwood Achiever
2015
- Atwood Admiral
Key Enablers
- Centralized
maintenance and
technical support
- Consistent standards
and institutionalizing
lessons learnt
- Common equipment
across rigs and
supplier consolidation
- Organic growth with
proven rig designs
and world-class
shipyards
- Early capital project
scoping and detailed
project planning
- Experienced project
management teams
Value Drivers
12. 12
1.05
0.80
0.68
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2008 2010 2012
Continuous Safety Performance Improvement
Fiscal Year 2008-Present
Total Recordable Incident Rate
Atwood Oceanics recognized as leading offshore driller for HSE in 2012*
0.26
0.18
0.06
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
2008 2010 2012
Lost Time Incident Rate
*Results from EnergyPoint Research customer satisfaction survey published February 20, 2013
13. 13
Signed Orca to initial 2-year contract in Thailand Jan 2013
Announced 1Q FY2013 results with 95% revenue efficiency Jan 2013
DeliveredAtwood Orca 10 weeks ahead of schedule April 2013
Announced 2Q FY2013 results with record quarterly revenue May 2013
Agreed to repurchase 2 million shares from Helmerich & Payne May 2013
SignedAtwood Eagle to 2-year contract inAustralia May 2013
SignedAtwood Condor to 39-month contract in the Gulf of Mexico June 2013
SignedAtwood Beacon to 2-year contract in Italy June 2013
SignedAtwoodAchiever to 3-year contract in Morocco June 2013
AtwoodAnnounces 4th Drillship theAtwoodArcher June 2013
Announced 3Q FY2013 results with record quarterly revenue July 2013
SignedAtwood Manta to 2-year contract extension inThailand August 2013
MajorAccomplishments – Year to Date
Partial Listing
14. 14
Contracting of the Vicksburg (early 2014
availability)
Delivery and start-up of theAtwood
Advantage
Contracting ofAtwoodAdmiral (2015
availability)
Calendar 2013 Priorities and Potential Catalysts
16. 16
64 Recent Discoveries in Floater Water Depths*
December 2011 to June 2013
Source: IHS-Petrodata
5
12
4
7
5
5
12
10
7
9
* Water depths greater than 500 ft.
“Golden
Triangle”
Deepwater and ultra-deepwater prospectivity continues to be excellent
18. 18
65%
70%
75%
80%
85%
90%
95%
100%
105%
0
80
160
240
320
400
480
Total Supply Total Contracted Utilization High Spec Contracted Utilization
Jackups: Dayrate and Utilization Improvement Even
as Supply Grows
Source: IHS-Petrodata
Note: Contracted Utilization equals Working Rigs / Total Supply
386
499
Worldwide Jackup Supply and Utilization
19. 19
Accelerating High Spec Jack-Up Dayrate Outlook
Bifurcation driving increased utilization and day rates
Jack-up tenders up significantly over the past 6 months
Driven by demand in the Middle East, SE Asia, Mexico, North Sea and India
Market outlook for 2013 remains favorable
Overall contracted utilization rates for high spec rigs approximately 100%
Dayrates currently in the $165,000 to $195,000 range, depending on the
geographic region and contract term
67 high specification rigs under construction
17 contracted
50 to be delivered over next 40 months
Many older rigs are not likely to return to market
27 jack-up rigs permanently removed from the fleet in 2011 and 2012;
compared to aggregate of 18 rigs for the previous 15 years ending 2010
Jack-up demand continues to shift toward newer, high-specification rigs
Source – IHS, ISI Group, Pareto Securities
20. 20
Atwood Fleet Contract Status
(by calendar year)
Rig Class/Rig Customer
2013 2014 2015 2016
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Ultra-Deepwater Drillships
Atwood Advantage Noble Energy $409K $584K
Atwood Achiever Kosmos Energy Delivery mid-2014 $463K $595K / $661K*
Atwood Admiral Available Delivery early 2015
Atwood Archer Available Delivery Late 2015
Ultra-Deepwater Semisubs
Atwood Osprey Chevron $490K $470K
Atwood Condor Shell $514K $555K
Deepwater Semisubs
Atwood Eagle
Woodside / BHP /
Apache/Woodside
$436K / $385K $460K
Atwood Falcon Apache $385K
Atwood Hunter Noble Energy/GEPetrol $435K/$510K $515K
Jack-Ups
Atwood Aurora Glencore / Addax $155K $165K / $193K*
Atwood Beacon Shemen Oil / ENI $175K
Atwood Mako Salamander $145K $155K
Atwood Manta CEC International $145K $160K
Atwood Orca Mubadala Petroleum $160K
Vicksburg CEC International $105 / $115K
Contracted (current)
Contracted (follow on work)
Shipyard
Mobilization (as of 9/1/13)
Firm Term
26.7 Rig Years
Firm Revenue
$3.9 Billion
* Rates shown are “exclusive of tax / inclusive of tax”
23. 23
30
945
509 514
30
724
509 514
221
0
100
200
300
400
500
600
700
800
900
1000
CAPEX Contracted Cashflow
Debt Uncontracted Cash Flow
1. Excludes $293 million of maintenance and other CAPEX and capital spares for 2013, 2014, 2015 and 2016
2. CAPEX for 2013 represents projections for remaining month for fiscal 2013
Future Capital Expenditures Fully Financed
($ millions)• $1.4 billion1 in remaining total
capital expenditures as of
September 1, 2013
• Approximately $2.0 billion in
contracted after tax cash flow
through 2016 is available to
fund these expenditures
• With the exercise of the $200
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
• Debt-to-cap and debt to
EBITDA ratios are maintained
below 40% and 2.7 times,
respectively
Fiscal Year
2014 2015 201620132
24. 24
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
FY 2014 FY 2015 FY 2016 FY 2017
High-Spec Jackups Ultra-Deepwater
Earnings Growth Through Newbuild Rig Deliveries
* Comparison versus FY2012 earnings; EPS analysis excludes any increases in Operating or SG&A
costs or interest expense during the 4 year period
Atwood Manta
Atwood Orca
Atwood Advantage
Atwood Achiever
Atwood Achiever
Atwood Admiral
Atwood Admiral
Atwood Archer
Assumptions:
UDW Floaters – Dayrate of $600,000, operating cost of $190,000 (inflation-adjusted), revenue efficiency
of 95% and a tax rate of 13%
High Specifications Jack-ups – Dayrate of $170,000,operating costs of $65,000 (inflation-adjusted),
revenue efficiency of 95% and a tax rate of 13%
Atwood Archer
Potential Incremental $6.74 Earnings Per Share from Newbuild Rig Deliveries*
26. 26
The Atwood Advantage
High-Quality
Operating Fleet
with Aggressive
Growth Initiative
Strong Backlog
with High Quality
Customers
Knowledgeable
and Experienced
Management Team
Attractive
Geographic
Diversity
Established
Reputation for Safe
and Efficient
Operations
Significant
Liquidity and
Financial Flexibility
Industry-Leading
Margins and
Shareholder
Returns