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Investor PresentationNovember 2015
1
Forward-Looking Statements
Statements herein that are not historical facts are forward looking statements within the meaning of thePrivate Securities Litigation Reform Act of 1995, including, without limitation, statements as to theexpectations, beliefs and future expected business, financial performance and prospects of the Company.These forward-looking statements are based on our current expectations and are subject to certain risks,assumptions, trends and uncertainties that could cause actual results to differ materially from thoseindicated by the forward-looking statements. Among the factors that could cause actual results to differmaterially include oil and natural gas prices, the level of offshore expenditures by energy companies,variations in energy demand, changes in day rates, cancellation or renegotiation by our customers ofdrilling contracts, letter agreements or letters of intent or the exercise of early termination provisions,risks associated with fixed cost drilling operations, cost overruns or delays on shipyard repair, constructionor transportation of drilling units, maintenance and repair costs, costs or delays for conversion or upgradeprojects, operating hazards and equipment failure, risks of collision and damage, casualty losses andlimitations on insurance coverage, customer credit and risk of customer bankruptcy, conditions in thegeneral economy and energy industry, weather conditions and severe weather in the Company’s operatingareas, increasing complexity and costs of compliance with environmental and other laws and regulations,changes in tax laws and interpretations by taxing authorities, civil unrest and instability, terrorism andhostilities in our areas of operations that may result in loss or seizure of assets, the outcome of disputesand legal proceedings, effects of the change in our corporate structure, and other risks disclosed in theCompany’s filings with the U.S. Securities and Exchange Commission. Each forward-looking statementspeaks only as of the date hereof, and the Company expressly disclaims any obligation to update or reviseany forward-looking statements, except as required by law.
2
Company Overview & Investment Highlights
Market Dynamics
Delivering Shareholder Value
Conclusion
Company Overview & Investment Highlights
Market Dynamics
Delivering Shareholder Value
Conclusion
Rowan Has Evolved into a Pure Play, High-Spec Offshore Driller
COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS
5
Rowan Overview & Investment Highlights
As a result of our timely strategic decisions and investments,Rowan is well positioned to navigate the current challenging market
Strong financial position
Investment Highlights
• RDC: NYSE-listed
• Investment Grade (BBB- / Baa3)
• 3,555 direct employees worldwide (2)
• 32 offshore drilling units
• 4 UDW(3) drillships
• 28 Jack-ups(4)
• 19 High-Specification and 8 Premium
(1) High-specification defined as rigs with a two million pound or greater hookload capacity(2) As of October 31, 2015(3) Ultra-deepwater (UDW) refers to floating drilling rigs rated for water depths of 7,500 feet or greater(4) Includes one cold stacked commodity jack-up
1
2
3
4
5
Company Overview
6
Competitive differentiation in drilling demanding wells
High-specification(1) fleet well positioned in key industry segments
Solid contract backlog diversified among premium customer base, geographic regions and asset types
Experienced and loyal workforce
COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS
Rowan is Focused on Demanding Drilling Services1
West Franklin
Will K
Al-Shaheen
“Our mission is to be recognized by our customers as the most efficient and capable provider of demanding contract drilling services”
Rowan ranks #1 among offshore drillers for HPHT applications four out of the last five Energypoint
Research Inc. surveys7
Blackbeard
Extended Reach Gas
Forties Field
Lower Tertiary
Rowan’s Demanding Drilling Achievement Highlights:Temperatures up to 450°FPressures greater than 20,000 psiHookloads exceeding 2,000,000 lbsDrilling depths beyond 30,000 ftJU water depths exceeding 400 ft
Jackdaw
Ekofisk
COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS
Rowan Has a Leading Position in High-Spec Jack-ups 2
8
• 2,000,000+ lb hookloadcapability
• Rugged and reliable legs and jacking system
• High pressure drilling systems
• Backlog extending into 2024
• Valued jack-up customers
High-Specification Jack-up Fleet Well Positioned to
Outperform
COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS
Best-in-class drillships, all on contract
• Dual, redundant seven-ram BOPs
• 2,500,000 lb hook load
• Designed and equipped for 12,000 foot water depth
• All four rigs contracted into 2017 and beyond
• Valued UDW customers
Rowan Ultra-Deepwater Drillships are Best-in-Class 2
9
COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS
Rowan’s Fleet Strategically Positioned in Global Markets2
10
COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS
Rowan has Solid Backlog with Diversity of Customers, Geographic Regions, and Asset Base3
* Rowan contract backlog as of November 3, 2015
Contract Backlog by Region & Asset Type
40%
38%
14%3% 3% 1%
Deepwater Middle East
Norway Trinidad
-
500
1,000
1,500
2,000
2015 2016 2017 2018+
Contract Backlog by Year *USD Millions
Contract Backlog by Customer Type
Majors / Independent63%
NOCs37%
Total backlog of $4.1B that extends to 2024
Note: Over 80% of our backlog is with NOCs or investment grade customers
COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS
0%
100%
200%
300%
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
Rowan
Competitors Average Excluding Rowan
Book / Bill **(Backlog Replacement Ratio)
11
** Source: FactSet as of October 21, 2015; competitors include
Transocean, Seadrill, Diamond Offshore, Ensco, Atwood, Noble, Ocean
Rig, Pacific Drilling, Paragon Offshore.
4 Strong Financial Position
Strong balance sheet / Investment grade credit rating (BBB- / Baa3) provides:
Access to capital even in challenging markets
The ability to grow opportunistically
Attractive debt maturity profile with significant untapped borrowing capacity available from $1.5B revolver
Projected free cash flow from existing backlog exceeds debt maturities through 2018
* As of November 3, 2015; weighted-average annual interest rate is 5.6%
2042 2044
Outstanding Debt is $2.8 Billion*
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
5.0
00
%
7.8
75
%
4.8
75
%
4.7
50
%
22
.5 b
ps
(un
dra
wn
)Available $1.5B
revolver
5.4
00
%
5.8
50
%
12
USD
Millions
COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS
4 Strong Financial Position
$0$200$400$600$800
$1,000$1,200$1,400$1,600$1,800$2,000
Newbuild Commitments Through 2017 Debt Maturities Through 2017
Rowan has $0 in Newbuild Capex Commitments and only $400mm in Debt Maturities through 2017*
In M
illio
ns
Total: ~$6,300Debt: ~$3,000
Newbuilds: ~$3,300
Total: ~$11,000Debt: ~$6,000
Newbuilds: ~$5,000
13
COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS
* Source: Company filings; as of September 8, 2015; peer group includes Atwood Oceanics, Diamond Offshore,
Ensco, Noble, Ocean Rig, PacificDrilling, Seadrill, Transocean, Vantage.
92-year history of operating excellence
Culture of continuous improvement
Experienced and loyal employees with proven industry leadership
Strong commitment to safe and reliable operations supports goal of highest customer satisfaction
14
Rowan Has an Experienced and Loyal Workforce5
Rowan is one team built around great equipment, great people, and shared mission and values
COMPANY OVERVIEW & INVESTMENT HIGHLIGHTS
Company Overview & Investment Highlights
Market Dynamics
Delivering Shareholder Value
Conclusion
More Capable Rigs Likely to Work Through the CycleJack-ups
20
40
60
80
100
IS, MS, MC <300'IC 300'IC 350'+ IC High Spec*
%
59 units
122 units
141 units
60 units
Worldwide jack-up total utilization by rig class
16* 350’IC+ jack-ups with two million pound or greater hookload
Includes data supplied by IHS-Petrodata, Inc; Copyright 2015 as of November 8, 2015
160 units
MARKET DYNAMICS
0
2
4
6
8
10
12
14
16
18
20
Current By YE 2020
19Rowan High-Spec
Jack-ups
Includes data supplied by IHS-Petrodata, Inc. Copyright 2015 and Rowan Companies; as of November 8, 2015
Customers Demand Higher-Specification Rigs
• Drilling challenging
wellbore designs
• Focused on achieving
lower wellbore costs
• Higher regulatory
standards
Number of High-Specification Jack-Ups
More Capable Rigs Likely to Work Through the CycleJack-ups
17
MARKET DYNAMICS
More Capable Rigs Likely to Work Through the CycleDrillships & Semi-Submersibles
50
60
70
80
90
100
<5,000' 5,000'-7,499' 7,500'+ / <1,250 tons 7,500'+ / 1,250 tons+
%
*Floater Market includes drillships and semis
Includes data supplied by IHS-Petrodata, Inc; Copyright 2015, as of November 7, 2015
58 units
49 units
95 units
Worldwide floater total utilization by water depth / hookload
107 units
18
MARKET DYNAMICS
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Row
an
Atw
ood
Van
tage
Paci
fic
Dia
mon
d
Ensc
o
Oce
an R
ig
No
ble
Tran
soce
an
Sead
rill
Floater Availability (Uncontracted Days)
2015 2016 2017
• Rowan is the only company with no floater availability through 2016 *• 2017 availability is less than 40%; peers average over 70% *• Rowan is currently in discussions with its deepwater customers to “blend and
extend,” potentially securing additional backlog
19* Source: Company filings; as of September 8, 2015; peer group includes Atwood Oceanics, Diamond Offshore,
Ensco, Noble, Ocean Rig, PacificDrilling, Seadrill, Transocean, Vantage.
More Capable Rigs Likely to Work Through the CycleDrillships & Semi-Submersibles
MARKET DYNAMICS
Co
mp
any
A
Co
mp
any
B
Co
mp
any
E
Co
mp
any
F
Co
mp
any
G
Co
mp
any
H
Co
mp
any
I
Co
mp
any
C
Co
mp
any
D
20
More Capable Rigs Likely to Work Through the CycleDrillships & Semi-Submersibles
Best-in-Class Specifications:
• 1,250 ton hook load
• Dual 7-ram blowout preventers
• Managed Pressure Drilling capable
• Advanced Riser Gas Handling
• 12,000 ft water depth equipped
• IMO Tier III emissions compliance
Few rigs possess the specifications required for today’s demanding wells and pending regulations
MARKET DYNAMICS
19
133
31 37
220
750 tons 1,250 tons 1 BOP
All UDW 1,250 tons 2 x BOP
Only 17% of UDW Rigs *
1,000 tons
* Includes data supplied by IHS-Petrodata, Inc; Copyright 2015;
Rowan estimate, includes newbuilds; as of November 3, 2015.
Company Overview & Investment Highlights
Market Dynamics
Delivering Shareholder Value
Conclusion
22
Priorities to Deliver Shareholder Value
Rowan will improve our return on assets,profit margins, and maximize the earningspower of our fleet
StrongFinancialReturns
Customers want: • Safe and reliable operations• Managed operational risk • Procedural discipline• Low flat spot time• Solid counterparty stability
HighestCustomer Satisfaction
Employees want to be part of a winninghigh- performing team, a career path with development opportunities, and a healthywork-life balance
Best PlaceTo Work
DELIVERING SHAREHOLDER VALUE
23
Rowan is Focused on Strong Financial Returns
Execution
Cost Control
Optimal Capital Allocation
StrongFinancialReturns
DELIVERING SHAREHOLDER VALUE
24
Executing Operational Efficiency
* Out-of-Service Time (OOS) are those days when a rig is out of service and is not able to earn revenue. The Company may be compensated for certain out-of-service days, such as for shipyard stays or for rig transit periods preceding a contract; however, recognition of any such compensation is deferred and recognized over the period of drilling operations.
Rowan is focused on maintaining low levels of operational downtime and reducingout-of-service time to drive higher earnings and improve margins
0%
1%
2%
3%
4%
Unbillable Operational DowntimeJack-up Target: 2.5% Drillship Target: ~5%
Out-of-Service Time (OOS) *
FY 2015 Target: 3-6% (excludes idle time)
0%
5%
10%
15%
20%
25%
30%
DELIVERING SHAREHOLDER VALUE
25
Cost Control: Rowan is Focused on Cost Efficiency
Cost Structure• Review back office and support processes for
efficiency and focus on controlling off-rig costs
• Reducing costs of offshore crews
Cost
Control
• Streamline maintenance systems
• Optimize preventive maintenance
MaintenanceSystems
Rig Inventories
• Optimize inventories of parts and capital spares
• Reduce costs by strategically sourcing with key vendors
Performance Management
• Drive performance through strong key performance
indicators and clear incentives at regional and rig levels
DELIVERING SHAREHOLDER VALUE
26
Cost Control Focus Has Had Material Impact
$ in millionsDELIVERING SHAREHOLDER VALUE
2015 Projections Preliminary (Nov.)
Year-End (Feb.)
May August Current* Reduction
Drilling Expense$1,130 -$1,160
$1,100 -$1,120
$1,015 -$1,030
$1,000 -$1,010
$965 - $970 ~16%
SG&A $133 - $136 $120 - $130 $115 - $120 $115 - $120 $118 ~12%
Non-newbuildCapex
$250 - $310 $190 $190 $190 $175 ~30% - 45%
* As of November 3, 2015
27
Optimal Capital Allocation: Options to Maximize Shareholder Value
Dividends• Enhance shareholder value through a regular quarterly
cash dividend
Optimal
Capital
Allocation Debt Repayment
Share Repurchases
Upgrades of Existing Rigs
As Rowan continues to generate free cash flow, we will consider all capital allocation options while maintaining a strong balance sheet
Asset Acquisitions
and Divestitures
• In this uncertain time, we stay the course. However,
we will continue to opportunistically consider share
repurchases
• Consider early retirement of debt to maintain solid
balance sheet
• Consider acquisition of quality assets if pricing and
contract opportunities are attractive
• Consider building assets against contracts with
suitable rate and term
• Continue divesting older assets
• Invest in older assets only if returns are clear
DELIVERING SHAREHOLDER VALUE
Company Overview & Investment Highlights
Market Dynamics
Delivering Shareholder Value
Conclusion
29
Rowan is Positioned to Benefit from its Strategic Actions
Competitive differentiation in drilling demanding wells 1
High-specification fleet well positioned in key industry segments
2
Solid contract backlog diversified among premiumcustomer base, geographic regions and asset types3
4 Strong financial position
5 Experienced and loyal workforce
Appendix
Worldwide Marketed Jack-up Utilization has dropped to 79%
Includes data supplied by IHS-Petrodata, Inc; Copyright 2015 as of November 8, 2015
US GOM
Indian Ocean
North Sea
Mediterranean
Middle East
Southeast AsiaMexico
C&S America
West AfricaAustralia
43%
23 Rigs
82%
45 Rigs91%
11 Rigs
62%
26 Rigs
92%
37 Rigs
100%
3 Rigs
63%
67 Rigs
86%
152 Rigs
69%
16 Rigs
82%
50 Rigs
Marketed Supply: 476 units
31
APPENDIX
USA
Indian Ocean
SE Asia
C&S America West AfricaAustralia
96%
49 Rigs
84%
38 Rigs83%
35 Rigs
100%
3 Rigs
100%
2 Rig
29%
7 Rigs
0%
1 Rig
Mediterranean
100%
4 Rig
Worldwide Marketed UDW Utilization has dropped to 87%
Marketed Supply: 152 units
32
APPENDIX
Includes data supplied by IHS-Petrodata, Inc; Copyright 2015 as of November 8, 2015
E. Canada
100%
3 Rigs
Mexico
100%
4 Rigs
N Sea
100%
5 Rigs
Far East
50%
2 Rigs
Region Jack-ups ($K/day) Jack-ups ($K/day)
Gulf of Mexico Mid $40s – Low $50s Low – Mid $50s
Middle East Mid $40s – Low $60s Mid $50s – Mid $70s
U.K. North Sea Mid – High $70s Mid – High $80s
Norway North Sea Mid $120s - Low $130s Low – Mid $160s
Southeast Asia Mid – High $40s Mid – High $50s
Trinidad Mid $60s – Mid $70s Mid $60s – Low $70s
As of November 3, 2015. Ranges exclude mobilization amortization and rebills. Daily operating costs vary by rig class and region. Higher capable
rigs generally earn higher day rates and typically have higher operating costs per day. During shipyard stays, crew and other personnel-related
costs are usually capitalized rather than expensed.
Region Drillships ($K/day) Drillships ($K/day)
Gulf of Mexico Low $150s – Low $160s High $160s – High $170s
Current Rowan Avg. Regional Offshore Rig Operating Costs
33
APPENDIX
As of November 2015 As of September 2014
59%
9%
15%
3%
1% 4%
8%
Labor & Fringes
Employee-related *
R&M
Insurance
Rig moves
Rebillables
All other **
* Employee-related costs include training, catering and crew transportation** Other includes rentals, medics, agent commissions, satellite communications and other misc. drilling costs
As of November 3, 2015
Percentage of total operating costs
2015 Operating Cost Components
34
APPENDIX
Rowan Guidance as of November 3, 2015
Key metrics:2Q 2015
Actual
3Q 2015
Actual
FY 2015
Projected
FY 2016
Projected
Jack-up Operational Downtime
(unbillable)
Slightly over 1%
~1% 2.5% 2.5%
Drillship Operational Downtime (1) ~13% ~4%Slightly higher than
5%Slightly higher
than 5%
Contract Drilling Expenses
(excluding rebills)$241 MM $236 MM $965 - $970 MM $930 - $950 MM
SG&A $31 MM $29 MM ~$118 MM $105 - $115 MM
Depreciation $95 MM $104 MMSlightly over $390
MM$405 - $415 MM
Interest Expense,
Net of Capitalized Interest$31 MM $41 MM ~$146 MM $160 - $165 MM
Effective Tax Rate (normalized) ~8% ~8%Q4 rate inmid-teens
N/A
Capital Expenditures $102 MM $58 MM $740 - $745 MM $175 - $200 MM(2)
(1) Rowan expects operational downtime for the drillships to be less than 5% after approximately six-months up to one year break in
period during which operational downtime is likely to be somewhat higher.
(2) Rowan expects 2016 maintenance capital expenditures to range from $175 - $200 MM, excluding any contractual modifications that
may arise due to securing additional work, none of which is currently planned.
APPENDIX
35
Investor Contacts:
Chris Pitre Director, Investor Relations and Corporate [email protected]+1 713 968 6642
Carrie PratiManager, Marketing and Investor [email protected]+1 713 960 7581
36