Transocean Ltd (Switzerland) · NYSE:RIG
Transocean Ltd (Switzerland) — Transocean — Cowen and Company 5th Annual Ultimate Energy Conference 2015
17 slides from Transocean Ltd (Switzerland)'s conference presentation, Dec 1, 2015
Slide 1: Cowen and Company 5th Annual Ultimate Energy Conference
Cowen and Company 5th Annual Ultimate Energy Conference New York December 1, 2015 Jeremy Thigpen, President and Chief Executive Officer
Slide 2: Legal Disclaimer
Legal Disclaimer 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. These statements contain words such as "possible," "inte
Slide 3: Recent Accomplishments
Recent Accomplishments Continued improvement across key safety metrics Operational Revenue efficiency at or above 95% for 6 of the last 7 quarters Sustained improvements in cost structure and margins Improvement Rationalized headcount and overhead reductions Focus on out-of-service time an
Slide 4: Sustained Operational Out-Performance
Sustained Operational Out-Performance 3Q15 adjusted earnings of $0.87/share on revenues of $1.6 billion Revenue Efficiency Revenue, Adjusted EBITDA & Costs Average Revenue Efficiency 95.2% 100% 3,000 70% 95% 60% 2,400 50% 90% 1,800 (US$ millions) 40% 85% 1,200 30% 80% 600 20% 75% 0 10% 70% 2Q14 3Q14
Slide 5: Industry Leading Execution
Industry Leading Execution Focus on personal and process safety Reducing non-productive time Better planning, improved reliability, lower spend Deliver more wells in record time 5
Slide 6: Global Market Leader
Global Market Leader 27 Ultra-Deepwater 7 Harsh Env. 6 Deepwater 12 Midwater 10 Jackup Transocean fleet composition as of 10/26/15 Fleet Status Report 6
Slide 7: Industry Leading Contract Backlog
Industry Leading Contract Backlog Total backlog - $16.9 billion* 7.0 $6.6 $6.0 6.0 Backlog recognized through October 31, 2015 (US$ billions) 5.0 $4.0 4.0 5.6 3.0 6.0 2.7 $2.5 $1.9 2.0 $1.5 2.0 1.0 0.5 1.7 0.6 1.4 0.1 $1.0 0.5 0.3 0.2 0.3 0.1 0.1 0.2 0.1 0.1 0.0 2015 2016 2017 2018 2019 2020-27 *Con
Slide 8: Challenging Market
Challenging Market Oil prices at post-2009 lows and rig market is oversupplied – rig fleet transformation in progress Ultra-Deepwater Deepwater Midwater High-Spec Jackups Global fleet utilization Global fleet utilization Global fleet utilization Global fleet utilization 86%* 68%* 75%* 78%*
Slide 9: Future Imbalance From Depressed Oil Prices
Future Imbalance From Depressed Oil Prices $50 oil: supply and demand could be in balance in 2015, incremental demand incremental supply @ $70/bbl but supply destruction in out-years is unsustainable mmb/d incremental supply @ $90/bbl incremental supply @ $50/bbl 2.0 $70 oil: continued reinvestm
Slide 10: Future Demand Requires Offshore Development
Future Demand Requires Offshore Development Crude & Condensate Production [mmb/d] Incremental production growth through 2020 requires significant investment, both offshore and onshore Offshore New Projects 6.8 0.4 NAm Onshore (~10 mmb/d) 3.0 RoW Onshore 2.5 Offshore 6.6 NAm Onshore Infill Drilling (
Slide 11: Rig Attrition Key to Rebalance the Market
Rig Attrition Key to Rebalance the Market Marketed Utilization (average last 12 months) Contract Status & Expected Demand 2011-2018 All Floaters - Worldwide 7500’+ 89.2% 4500’-7500’ 78.9% <4500’ 85.4% Active Supply Market Factors Reduce Supply: (+) for RIG 1.Delayed newbuild deliveries Increase Supp
Slide 12: Investing in the Fleet – High Specification Assets
Investing in the Fleet – High Specification Assets 18 Newbuilds Added 2009-2014 12 Newbuilds in Pipeline 2015-2020 11 UDW Drillships 7 UDW Drillships 3 UDW Semisubmersibles 5 HS Jackups 4 HS Jackups ~$12B Investment ~$7B Investment 12
Slide 13: Asset Profile
Asset Profile 2009 Fleet Current Fleet 2020 Projected Fleet* % of Fleet % of Fleet % of Fleet 15% 4% 16% 24% 41% 44% 29% 10% 55% 32% 8% 11% 11% Projected fleet includes: 11 UDW dual BOP rigs Ultra-Deepwater Floaters 8 UDW moored & DP capable rigs Harsh Environment Floaters 5 UDW 20k psi capa
Slide 14: Strong Financial Position
Strong Financial Position $16.9 billion backlog provides solid cash-generation foundation $5.2 billion total liquidity at September 30, 2015 $2.2 billion cash $3.0 billion undrawn revolving credit facility Re-phasing/reduction of capital spending Continuous improvement in operating perfo
Slide 15: Substantial Liquidity
Substantial Liquidity 12 Projected liquidity at 11 December 31, 2017 10 $3.1-$4.1B* ~$2.6B* 9 8 7 $1.7B (US$ billions) 6 $3.0B 5 $4.0-$5.0B* 4 3 $2.2B 2 1 0 Cash at 9/30/15 Revolving Credit Operations Cash Flow CapEx through 2017 Debt Due through Liquidity Facility 2017 at 12/31/17 * Estimate 15
Slide 16: The Path Forward
The Path Forward Transocean will: Deliver the safest, most efficient drilling services Continue to focus on producing strong operating results through: o Strengthening customer relationships o Delivering best-in-class uptime and revenue efficiency o Right-sizing the organization consistent wit
Slide 17: Cowen and Company 5th Annual Ultimate Energy Conference
Cowen and Company 5th Annual Ultimate Energy Conference New York December 1, 2015 Jeremy Thigpen, President and Chief Executive Officer 17
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