Transocean Ltd (switzerland) · NYSE:RIG
Transocean Ltd (switzerland) — Transocean — A.G. Edwards Energy Conference 2007
22 slides from Transocean Ltd (switzerland)'s conference presentation, Mar 21, 2007
Slide 1: A.G. Edwards Energy Conference, March 21, 2007, Houston
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Slide 2: Forward-Looking Statement
Forward-Looking Statement The statements described in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements which could be made
Slide 3: Company Overview
Company Overview Industry’s largest offshore contract driller – 82 units total Unique focus on High-Specification fleet 13 Fifth-Generation Deepwater Floaters capable of 7,500+ feet water depths 16 Other Deepwater Floaters capable of 4,500-7,200 feet water depths 4 Other High-Specification Floaters
Slide 4: Largest Offshore Rig Fleet
Largest Offshore Rig Fleet (1) Jackup Semi and Drillship Other MODU (2) Transocean GlobalSantaFe Noble Pride ENSCO Diamond Rowan Offshore (1) Excludes ownership in barges, MOPU’s, platform rigs, land rigs, equity ownership positions, coldstacked rigs and new rig construction (2) Excludes a drillship
Slide 5: Revenues by Source
Revenues by Source Other 3% Jackups Asia/Pacific 5th Gen DW 18% 24% 27% Europe/Africa 45% Other Floaters 23% Other DW North/South 23% Other High- America Spec 31% 6% By Asset Type By Geographic Location 2006 Revenue: $3,882 Million
Slide 6: Company Overview
Company Overview Industry’s largest offshore contract driller – 82 units total Unique focus on High-Specification fleet Geographically diverse fleet and strong customer mix
Slide 7: Revenues by Major Customer
Revenues by Major Customer Chevron 14% Other 24% BP 11% National Oils 25% Anadarko 3% Majors Woodside Shell 11% 54% 3% ONGC 5% Independents 21% Eni Total 6% 8% Statoil Petrobras 7% 8% 2006 Revenue: $3,882 Million 7 Source: Transocean
Slide 8: Company Overview
Company Overview Industry’s largest offshore contract driller – 82 units total Unique focus on High-Specification fleet Geographically diverse fleet and strong customer mix Exceptional business cycle
Slide 9: Exceptional Business Cycle
Exceptional Business Cycle Activity level remains strong in all segments of the fleet Deepwater sector offers exceptional opportunities with long-duration cycle likely Represents significant source of potential hydrocarbon reserves High exploration success, large development projects – limited expos
Slide 10: Expanding Activity Supports Deepwater Sustainability: Established
Expanding Activity Supports Deepwater Sustainability Established Gulf of Mexico Lease expirations driving short-term demand Brazil Exploration success Increased activity from int’l operators West Africa Exploration success New development programs Established
Slide 11: Expanding Activity Supports Deepwater Sustainability: Developing
Expanding Activity Supports Deepwater Sustainability Developing Gulf of Mexico Ultra-deep well bores — 34,000+ feet Taxing capabilities of Fifth-Generation Deepwater fleet Growth in India New discoveries in Brazil Eastern Med. Malaysia Established Developing
Slide 12: Expanding Activity Supports Deepwater Sustainability: Frontier
Expanding Activity Supports Deepwater Sustainability Frontier Mexico Deepwater reserves — 36 billion bbls + Orphan Basin Largest undrilled geological structure in the world East Africa/Pakistan/South China Sea Established Developing Frontier
Slide 13: Exceptional Business Cycle
Exceptional Business Cycle Mid-water floater sector aided by strength in deepwater North Sea demand remains strong, especially Norway Numerous term contract opportunities Recent contract signings confirm current dayrate range $350K — $435K Jackup sector remains robust Some multi-year opportunities –
Slide 14: Company Overview
Company Overview Industry’s largest offshore contract driller – 82 units total Unique focus on High-Specification fleet Geographically diverse fleet and strong customer mix Exceptional business cycle Contract backlog provides excellent earnings , cash flow visibility & growth prospects
Slide 15: Contract Backlog by Years
Contract Backlog by Years Total Contract Backlog (1) = $21.6 Billion $5.0 $4.5 $2.3 $1.2 $2.0 $3.1 $0.5 $3.8 $3.8 $1.6 $1.4 $2.5 $2.6 $0.2 $1.6 $1.2 2007 2008 2009 2010 2011 2012-15 (Remaining) High-Specification Fleet Remaining Fleet (1) Calculated by multiplying the contracted operating dayrate by
Slide 16: High-Specification Floaters Backlog: Transocean vs. All Competitors
High-Specification Floaters Backlog Transocean vs. All Competitors (Billions $USD) All Competitors $16.6 GSF $4.1 SDRL $3.1 PDE $2.9 DO $2.8 NE $1.6 ESV $1.4 RDC $0.0 RIG $14.9 $0 $ 5 $10 $15 $20 Source: Riglogix 16 As of January 31, 2007
Slide 17: Percent of Fleet Committed
Percent of Fleet Committed (1) Under Contract CommitmentsUncommitted 2007 2008 2009 High-Specification 0% 0% 12% Floaters Fleet (37 Rigs (2) ) 100% 100% 88% 7% Other Floaters 24% Fleet (mid-water) 38% 62% (20 Rigs) 76% 93% 5% 36% Jackups Fleet 36% 64% (25 Rigs) 64% 95% Effective February 28, 2007 (1
Slide 18: Focus On Execution & Cost Control
Focus On Execution & Cost Control Safety Recordable incidents at lowest level in company’s history Personnel Recruitment, retention, training – helped by Company size and diversity Effective nationalization plans started in 2001 New recruitment areas Major shipyard projects No more rigs reactivation
Slide 19: Use of Cash
Use of Cash Reinvestment in the business 3 enhanced Enterprise-class newbuilds confirmed 2 major upgrades of existing units ( Sedco 700-series ) Industry consolidation / rigs acquisition : at the right time / at the right price Returning cash to shareholders Stock repurchase program : $4.0 billion a
Slide 20: Return of Value to Shareholders and Reinvestment
Return of Value to Shareholders and Reinvestment Share Repurchases Dividends and Organic Growth New Builds as % of Market Cap Upgrades 26% Share Repurchases Dividends 25% 20% 16% 15% 15% 15% 13% 10% 10% 5% 0% RIG GSF DO NE ESV RDC Source: Public filings and statements by individual companies. 20 Dat
Slide 21: Summary
Summary Exceptional business climate continues Regional outlook appears strong for the foreseeable future in all sectors Contract backlog supports improved long term financial performance Strong cash flow, opportunities for growth Company differentiating itself with premium fleet and technology init
Slide 22: Question & Answer
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