Archer Limited · OSL:ARCH
Archer — Seawell — Merger or Acquisition (August 2010)
32 slides from Archer's merger presentation, Aug 13, 2010
Slide 1: Seawell Ltd. acquires Allis-Chalmers Energy Inc.
Seawell Ltd. acquires Allis-Chalmers Energy Inc. International Drilling & Well Services Company Jorgen P. Rasmussen, Executive Chairman Seawell Limited Munawar H. Hidayatallah , Chairman and CEO, Allis-Chalmers Energy Inc 13 August, 2010
Slide 2: Disclaimer
Confidential Disclaimer Forward-Looking Statements •This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as "will," "anticipate," "estimate," "ex
Slide 3: Table of contents
Table of contents Section 1: Aim and Strategic Rationale Section 2: Transaction Details and Governance Section 3: Seawell and Allis-Chalmers Energy in Short Section 4: Q&A Page 3
Slide 4: Section 1: Aim and Strategic Rationale
Section 1: Aim and Strategic Rationale Page 4
Slide 5: Our aim is to build a first class oil service company
Our aim is to build a first class oil service company • Our service segments would be: Drilling and well services, oilfield rentals and facility engineering • Focused on enhanced oil recovery for our clients • Global footprint to leverage and distribute key technologies • Significant presence in dri
Slide 6: Why Seawell and Allis-Chalmers Energy make sense
Why Seawell and Allis-Chalmers Energy make sense • Highly complimentary • No product or services overlap • Similar business focus, very experienced drilling personnel • No geographical overlap • Significant cross selling synergies • Bring Allis-Chalmers Energy competence to the North Sea • Bring Sea
Slide 7: The Well Company
The Well Company A combination would be: • 6 500 employees in 30+ countries • USD 1.3 billion in revenues in 2010, USD 195 million in EBITDA1 • Leading oil service company in the North Sea • Major onshore player in the Americas • 30+ years experience in drilling and servicing production wells for ou
Slide 8: Considerable revenue synergies
Considerable revenue synergies • The combination would drive increased sales • Improved rental equipment utilization • Market Seawell’s technologies to Allis-Chalmers’ customers • Better positioned to provide integrated projects and services • Bring Allis-Chalmers’ competencies to the North Sea • Di
Slide 9: Combined company would have a global footprint
Combined company would have a global footprint • Complimentary services in common geographies • Next step would be to develop full presence in Middle East and FEA • Use global footprint to distribute technologies as well as grow a unique service offering. Page 9
Slide 10: The combined company would be able to deliver fully integrated projects
The combined company would be able to deliver fully integrated projects Highly complimentary service and product offering Tubular running Under- balanced drilling Bits DD MWD Drilling Coil Tubing fluids Cementing tools / Fishing plugs Rental Ultra tools/pipe Sound Cased Hole Land rigs Logging Platfo
Slide 11: Well positioned to capitalise on the demand for enhanced oil recovery (EOR) services
Well positioned to capitalise on the demand for enhanced oil recovery (EOR) services A combination would be: • Global service footprint • Strength in advanced drilling techniques and services • No. 1 platform driller globally • First class drilling assets • Well intervention technologies and service
Slide 12: Strong positions in key segments
Strong positions in key segments Actual 2009 revenue (USDm)1 Drilling and • Drilling services completion • Workover services Seawell; services • Platform drilling services 509 • Engineering ALY; 304 ALY; Oilfield and • Directional and underbalanced drilling 144 well services services Seawell; • Prod
Slide 13: Geographically diversified revenue base
Geographically diversified revenue base1 Europe Actual 2009 sales 500 400 USDm 300 Americas 200 437 100 148 0 5 Actual 2009 sales 500 Norway UK Denmark 400 USDm 300 200 100 244 188 44 0 - 9 5 Argentina US Brazil Other 500 Actual 2009 sales 400 USDm 300 200 100 30 0 4 Other 1 Source: 2009 annual repo
Slide 14: Among top leading oil service companies
Among top 10 leading oil service companies1 Schlumberger (incl. Smith International) 30 921 Halliburton 14 675 Baker Hughes (incl. BJ Services) 13 786 Weatherford 8 827 Nabors Industries (incl. Superior Well Serv.) 4 091 Superior Energy 1 449 2) Seawell + Allis-Chalmers 1 114 Key Energy Services 1 0
Slide 15: Section 2: Transaction Details and Governance
Section 2: Transaction Details and Governance Page 15
Slide 16: Transaction details
Transaction details • Seawell Ltd. to acquire Allis-Chalmers Energy Inc. for a combination of shares and cash • Terms: • 1.15 Seawell shares offered for each Allis- Chalmers Energy share • Cash alternative at USD 4.25 per share, capped at maximum of 35% of outstanding shares in Allis-Chalmers Energy
Slide 17: Governance
Governance Proposed Board of Directors Executive Management • Saad Bargach, Chairman • Chief Executive Officer & President: • Tor Olav Trøim, Vice Chairman Jørgen Peter Rasmussen (51) • John Reynolds Danish • Alejandro P. Bulgheroni • Chief Operating Officer and EVP: • Gianni Dell'Orto Thorleif Egel
Slide 18: Section 3: Seawell Ltd. and Allis-Chalmers Energy Inc. in short
Section 3: Seawell Ltd. and Allis-Chalmers Energy Inc. in short Page 18
Slide 19: Introduction to Allis-Chalmers Energy
Introduction to Allis-Chalmers Energy Description: Key figures1: 2009 revenues by geography • Provider of services and equipment to oil and natural gas exploration and production Other Intl. companies Brazil 44 30 6% 9% Argentina • Operations in US, Argentina, Brazil, Bolivia US 244 48 % and Mexico
Slide 20: Allis-Chalmers Energy business segments
Allis-Chalmers Energy business segments Drilling and Completion Oilfield Services Rental tools • Drilling • Directional drilling • Premium drill pipe services • BOPs • Completion • Casing and tubular • Other specialized rental • Workover services equipment • Other related services • Underbalanced dr
Slide 21: Allis-Chalmers Energy's land rigs
Allis- Chalmers Energy’s land rigs 30 drilling rigs and 48 service rigs: • Argentina: 17 drilling rigs and 47 service rigs • Brazil : 8 drilling rigs and 1 service rigs • Bolivia : 3 drilling rigs • USA: 2+2 drilling rigs Key clients: • Pan America • Petrobras Page 21
Slide 22: Allis-Chalmers Energy historical key financials and mean estimates
Allis-Chalmers Energy historical key financials and mean estimates Key financials Actual1 Mean estimates2 Figures in USD million 2007 2008 2009 2010E 2011E Revenues 571 676 506 631 718 Revenues growth 18,4 % -25,1 % 24,7 % 13,8 % EBITDA 181 169 76 112 156 EBITDA margin 31,6 % 25,1 % 15,1 % 17,7 % 21
Slide 23: Introduction to Seawell
Introduction to Seawell Description: Key figures1: • Leading oilfield service company operating on nearly 50 2009 revenues by geography 5 95 4 installations in the North Sea 1%% 1 %21% • Offices in Norway, UK, Denmark, US, Brazil, Nigeria, UK Singapore, India and joint ventures in Abu Dhabi and 148
Slide 24: World's No 1 platform drilling company
World’s No 1 platform drilling company Platform Driller of the year in the UK, IADC reward, 3 rd year in a row • 35 Active platforms in the North Sea & 2 in Brazil • 2400+ offshore drillers Photo, Oyvin Hagen Statoil.com • NO LTI on 6 years of operations for Shell in the UK • Safest platform operati
Slide 25: Drilling Facility Engineering
Drilling Facility Engineering • Drilling Facility Design and Upgrades • Modifications, Maintenance & Repairs Norway • Integration of new drillings units England Scotland • Optimizing the drilling system and processes USA • Inspections of Rigs and Risers Brazil Singapore • Seawell has the world’s mos
Slide 26: Offshore Modular Rig systems
Offshore Modular Rig systems • Containerised modular rig built for all kind of offshore installations with full extended reach drilling capability, workovers and P&A services. • Our goal is to build a worldwide Modular Rig Company in the next 5 years Page 26
Slide 27: Well Services – strong competencies
Well Services – strong competencies • Electric and Mechanical Wireline services • Production logging services • Ultra Sound High Definition Logging • Ultra sound active cameras • V0 rated mechanical barrier plugs • Cementing technology • Special well repair & fishing services • Coil tubing services
Slide 28: Seawell backlog - Platform drilling, 2 BN USD
Seawell backlog - Platform drilling, 2 BN USD 2009 2010 2011 2012 2013 Unit Customer 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Statfjord A, B, C StatoilHydro 1 x 2 year Gullfaks A, B, C StatoilHydro 1 x 2 year Veslefrikk A, B StatoilHydro Life of field Ula & Valhall BP Gyda Talisma
Slide 29: Seawell - Steady progress forward
Seawell - Steady progress forward 3 500 600 3 000 500 Op. revenues, NOKm 1) 2 500 400 EBITDA, NOKm 2 000 300 1 500 200 1 000 100 500 0 0 2003 2004 2005 2006 2007 2008 2009 2010 Sales EBITDA Page 29 1) Excl. reimbursables
Slide 30: Seawell historical key financials and mean estimates
Seawell historical key financials and mean estimates Key financials Actual1 Mean estimates2 Figures in NOKm 2007 2008 2009 2010E 2011E Revenues 2 728 3 625 3 825 4 127 4 403 Revenues growth 32,9 % 5,5 % 7,9 % 6,7 % EBITDA 304 413 491 497 585 EBITDA margin 11,2 % 11,4 % 12,8 % 12,0 % 13,3 % EBIT 251
Slide 31: Section 4: Questions & Answer
Section 4: Questions & Answer Page 31
Slide 32: Page 32
SEAWELL Ausecn™ Page 32