Conference Edition 2014
An Overview of Select Oilfield Service Companies
Bill Sanchez – (713) 393-4505
Blake Hutchinson – (713) 393-4507
Dave Wilson, CFA – (713) 393-4509
Jon Donnel – (713) 393-4503
K. Blake Hancock – (713) 393-4502
Howard Weil is a division of Scotia Capital (USA) Inc., a member of the Scotiabank group, and represents Scotiabank’s energy equities business in the United States.
For all relevant disclosures and certifications see Appendix A Important Disclosures of this report.
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
Introduction
The following pages provide an overview of the Howard Weil Oilfield Service universe.
The purpose of this fact book is to provide investors with a better understanding of
select oilfield service companies and to highlight the scope and scale of their
participation in the oil patch.
Market share figures are compiled using our assumptions based on data collection from
numerous sources, namely Company Reports, HW research and industry publications.
Included is a snapshot of the current worldwide offshore rig landscape and regional
detail on the U.S. land drilling market. Composition of the worldwide fleet, individual
Company fleet size, market share and geographic locations are based on ODSPetrodata, the Land Rig Newsletter, Company Filings, Company Reports and HW
research.
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
2
Table of Contents
Alphabetical by Company
Atwood Oceanics (ATW) ............................................... 38
Pacific Drilling S.A (PACD). ...........................................44
Baker Hughes Incorporated (BHI) ................................. 6
Patterson-UTI Energy (PTEN) .......................................54
Basic Energy Services (BAS) ......................................... 14
Pioneer Energy Services (PES) .....................................55
Bristow Group Inc. (BRS) ............................................. 56
Rowan Companies (RDC)..............................................45
Cameron (CAM) ............................................................ 10
Schlumberger Ltd. (SLB).................................................8
Carbo Ceramics, Inc. (CRR) .......................................... 15
Seadrill Ltd. (SDRL) ......................................................47
Core Laboratories N.V. (CLB) ........................................ 16
Superior Energy Services (SPN)....................................19
Diamond Offshore (DO) ................................................ 39
Tenaris S.A. (TS) ...........................................................13
Dresser-Rand Group (DRC) .......................................... 22
TETRA Technologies (TTI) ............................................20
Dril-Quip, Inc. (DRQ) .................................................... 23
Tidewater Inc. (TDW) ...................................................58
Ensco plc (ESV) ............................................................. 40
Transocean Inc. (RIG) ..................................................46
Exterran Holdings (EXH) .............................................. 24
U.S. Silica (SLCA) ..........................................................21
Forum Energy Technologies (FET) ................................ 25
Weatherford International (WFT)...................................9
FMC Technologies (FTI) ................................................ 11
Frank’s International NV (FI) ....................................... 17
Basic Oilfield Definitions .............................................4–5
Gulf Island Fabrication (GIFI) ...................................... 26
Offshore Drillers Summary ...........................................30
Halliburton Co. (HAL) ..................................................... 7
Offshore Rig Definitions and Descriptions ............. 31–32
Helmerich & Payne (HP) ............................................... 52
Offshore Drillers Market Share .............................. 33–37
Hercules Offshore (HERO) ............................................ 41
• Premium Jackups .................................................................. 33
Hornbeck Offshore (HOS) ............................................. 57
• Commodity Jackups .............................................................. 34
Key Energy Services (KEG) ........................................... 18
• Midwater Floaters ................................................................. 35
McDermott International (MDR) .................................. 27
• Deepwater Floaters ............................................................... 36
Nabors Industries (NBR) .............................................. 53
National Oilwell Varco, Inc (NOV) ................................ 12
Noble Corporation (NE) ................................................ 43
North Atlantic Drilling Ltd. (NADL) ............................... 42
Oceaneering International (OII) .................................. 28
Oil States International, Inc. (OIS) .............................. 29
• Ultra-deepwater Floaters ...................................................... 37
Jackup/Floater Newbuild Schedule ...................... 48 – 49
Land Driller Summary ...................................................50
Unconventional Drilling Market Share ..........................51
Valuation Summary. .............................................. 59–60
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
3
Basic Definitions*
Acidizing - A technique for increasing the flow of oil and/or gas into a well. Hydrochloric acid is pumped into
the oil-bearing rock. The acid dissolves limestone in the producing zone enlarging pores and flow into the well
bore with less restrictions.
Subsurface bit location is generally determined by MWD (real-time measurements of location and orientation of
the bottom hole assembly). Deviated drilling is often used in offshore production so multiple reservoirs can be
produced from a single platform.
Actuator - A hydraulic or electric motor used to open or close valves.
Draw Works – the hoisting mechanism on a drill rig used to raise and lower the drill stem and apply the desired
pressure on the bit; essentially a large winch consisting of a wire reel and brake.
AHTS - Anchor-handling towing supply vessel.
Artificial Lift - The process of producing oil or water from wells that do not flow under their own pressure.
Techniques include 1) Electric Submersible Pumps, 2) Progressive Cavity Pumps, 3) Gas Lift
Bbl - Barrels. mmbbls: million barrels. 1 barrel equals 42 U.S. gallons of oil at 60 degrees Fahrenheit.
Blowout - An unexpected violent eruption of oil and gas from a well during the drilling phase of operation.
Occurs when high pressure gas is unexpectedly encountered and the proper precautions have not been taken.
The initial eruption is followed by an uncontrolled flow of fluids from the well.
Blowout Preventer - A "BOP" is a large, specially designed valve mounted on top of the well during the drilling and completion stages of operation. The operator can close this valve to stop the flow of oil or gas in case
of emergency.
Casing - Steel lining used to prevent caving of the sides of a well, to exclude unwanted fluids and to provide
means of control of well pressures and oil and gas production.
Drill Bits - 1) Tricone bits - made of hardened steel or tungsten carbide mounted on three rotating cones. Used in a
wide variety of applications, 2) PDC or diamond bits - use fixed position cutters; excellent for soft drilling formations b/c they offer higher penetration rates and longer life than Tricone
Drill Collars - used to place weight on the drill bit for better control and penetration. Collars are located directly
above the drill bit and are essentially very thick-walled drill pipe or a solid steel bar to provide necessary weight.
Drill pipe - Its primary purpose is to connect the above-surface drilling rig to the drill bit, provide a mechanism to
steer the drill bit and serve as a conduit for drilling fluids and cuttings. A drilling rig will typically have an inventory of 10,000 to 25,000 feet of drill pipe depending on the size and service requirements of the rig. When a drilling
rig is operating, motors mounted on the rig rotate the drill pipe and drill bit. Drill pipe is a capital good that can be
used for the drilling of multiple wells. Once a well is completed, the drill pipe may be used again in drilling another
well until the drill pipe becomes damaged or wears out.
Drill-Ship - Free-floating, offshore drilling unit shaped like a ship, positioned by anchors or dynamic positioning.
Centrifugal compressor - A compressor with an impeller or rotor, a rotor shaft and a casing which discharges
gases under pressure by centrifugal force.
Drilling Fluids – also referred to as drilling mud; pumped through the drill string, exiting nozzles in the drill bit.
Cleans the bottom of the well by transporting cuttings to the surface while also cooling and lubricating the bit and
drill string. Barite or bentonite contained in the fluid provides weight which allows the fluid to hold the wellbore
open to achieve total depth. Types of drilling fluids: 1) Water-base - most widely used for both land and offshore,
2) Oil-base - used to drill water sensitive shales and are used in areas where stuck pipe is likely to occur. Typically
yield higher penetration rates vs. water-based systems, 3) Synthetic-base - used where oil-base fluids are prohibited; advantageous in the deepwater.
Choke - A type of valve used to control the rate and pressure of the flow of production from a well or through
flowlines.
Drilling with Casing - not typical, but does eliminate the need for drill pipe and allows operators to simultaneously
drill, case and evaluate wells.
Christmas Tree - Assembly of valves and fittings located at the head of a well to control flow of oil and gas.
Dynamic Positioning - a series of propellers placed around a ship, and linked to a GPS system, used to maintain
the ship’s position without anchors.
Cementing - A process whereby cement is pumped into the hole between the walls of the hole and the outside
of the casing. Upon hardening, the cement holds the pipe in place and prevents fluid movement in the hole
between strata that have been drilled through.
Coil Tubing - A generic term relating to the use of a coiled tubing string (small diameter reeled pipe) and
associated equipment. Generally used in for well workover and intervention, but can also be used for drilling
and production. Coil tubing offers a midpoint between using drill pipe and wireline for well work.
Completion Fluids – fluids used at the conclusion of drilling during the well completion phase to minimize
formation damage. Typically a solids-free brine liquid used to maintain downhole pressure and prevent the
well from flowing until production starts. Seldom is drilling mud suitable for completion due to its solids
content, pH, etc.
Completions - equipment installed in a well after it is drilled to produce the oil/gas to the surface such as 1)
Liner hangers - suspend a section of casing inside the bottom of the previous section of casing, 2) Packers seal the annular space b/w the production tubing & casing (control flow of fluids in the well and protect the
casing), zonal isolation, 3) Subsurface safety valves - shut off flow of fluids to the surface in emergency
(required in most offshore wells), 4) Gravel Packs/Sand control - used in loosely consolidated formations to
prevent sand from commingling with oil/gas in production.
Decommissioning/Abandonment - Removal of production equipment from depleted oil fields.
Fishing - equipment used to locate, dislodge, and retrieve damaged or stuck pipe, tools, or other objects from inside
the wellbore.
Floater - An offshore drilling platform without a fixed base.
Flowline – A flexible or rigid pipe from a few hundred meters to several kilometers designed to transport hydrocarbons, injection or control fluids between production facilities, subsea equipment, or onshore delivery points, etc.
Formation Evaluation - measure/analyze physical properties of wellbore such as volume of oil/gas and ability to
produce. Two common methods of data collection are wireline logging (pull/push instruments through the wellbore
after it is drilled) and LWD (logging-while-drilling, instruments are attached to the drill string and collect data as
well is drilled).
FPSO - Floating Production Storage and Offloading. A ship-shaped vessel used to produce, separate, store and
offload offshore oil and gas. Similar in functionality to a SPAR.
Directional Drilling - used to guide a well along a predetermined path on vertical, horizontal, and extended Fracturing - The process of pumping fluids into a productive formation at high rates of injection to hydraulically
reach wells, using either a downhole motor (turns the bit independently of the drill string and is placed just break the rock. The "fractures" which are created in the rock act as flow channels for the oil and gas to the well.
above the bit to steer the well's course) or a rotary steerable (the entire drill string is turned from the surface to
supply energy to the bit).
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
4
Basic Definitions*
(cont)
Horizontal Drilling – essentially directional drilling when the wellbore is at least 80% from vertical
Riser - Flexible or rigid pipe used to connect the wellbore of offshore wells to drilling or production equipment on
the surface, and through which drilling fluids or hydrocarbons travel.
Jacket - Supporting structure for an offshore platform and can range from 10-1,000 feet.
ROV – Remotely Operated Vehicles used for underwater construction, pipeline/structural surveys, etc.
Jack-up - Mobile offshore drilling platform consisting of a floating platform with retractable legs the platform
extends to the seabed when operational. Subgroups include independent leg, mat-supported, cantilever, slot,
etc.
Liner - Small diameter casing extending into the producing layer from just inside the bottom of the final string
of casing cemented in a well.
Logging – the process of gathering data typically done by sending instruments down-hole. Open hole logging
involves measurements made before casing is set to provide info on porosity, rock composition, and well temperature. Cased hole logging is done after the casing is set and typically involves cement/pipe evaluation and
reservoir monitoring.
Seismic - a general term referring to the process of utilizing seismic waves to interpret reservoir geology. Pressure
waves created at the surface (for example by dynamite or compressed-air guns) penetrate the earth and bounce back
at each change in subsurface layer. Geologists use this data to map the folds inside the earth and predict the presence of reservoirs.
Semisubmersible - Mobile offshore drilling platform with floats or pontoons, kept in position by anchors or dynamic positioning.
SPAR - A single buoy mooring which includes production equipment and oil storage capacity so that production
can continue even if the weather is too severe for tanker loading. Similar in functionality to an FPSO.
LWD – Logging while drilling offers real-time data acquisition of formation parameters (resistivity, porosity,
etc.).
Surface Pipe – typically a large-diameter pipe through the shallow water sands, cemented in place, and used to
protect shallow aquifers, support equipment (BOPs, etc) and support the remaining casing strings.
MPSV - Multi-purpose service vessel.
Topsides - The top part of a platform positioned on the jacket supporting the production processing equipment,
living accommodations, etc.
Mud Pumps – typically large, high-pressure reciprocating pumps used to circulate drilling fluid; part of the
larger drilling system of screeners, hydrocyclones, mud tanks, etc.
Multi-lateral wells – a well with more than one branch radiating from the main borehole.
MWD – Measurement while drilling offers real-time data acquisition for a variety of information such as down
-hole pressure, temperature, and trajectory. Also see LWD.
OCTG – Oil Country Tubular Goods; oil well casing, tubing, drill pipe, drill collars, etc.
Packers – equipment lowered and expanded to seal-off the sections of the well. Used for both short-term and
long-term applications to isolate specific reservoir sections.
Platform - A fixed structure resting on the seabed or piled into it from which development wells are drilled to
exploit an oil or gas field. Platforms are typically of two kinds, although several novel designs are in existence. Gravity structures, either concrete or hybrid with concrete base, which rest on the seabed by virtue of
their own weight; and steel pile jackets with steel legs and superstructure piled into the seabed.
Perforating - puncturing a well's casing and cement with explosive charges creating a fracture for oil/gas from
the formation to enter the wellbore.
Pressure Pumping – pumping material into the well for a variety of applications (see fracturing, acidizing,
cementing, etc.)
Production Testing - when each new well is competed, a series of tests are run on the well. The various tests
are used to estimate the reservoir characteristics including flowrate, pressure decline, connectivity, and specific
oil properties (API gravity, chemical composition, etc).
Progressive cavity pump – a pump with a corkscrew shape useful for pumping highly viscous fluids.
Proppant - small particles ranging in size that are mixed with fracturing fluid to hold fractures open after a
hydraulic fracturing treatment. Proppant can be naturally occurring or artificially created such as resin-coated
sand or high-strength ceramic materials.
Reciprocating compressor - A compressor in which the compression effect is produced by the reciprocating
motion of pistons and plungers operating in cylinders. Similar in concept to an automobile engine working in
reverse.
Tubing - small diameter pipe installed in the casing. Oil is typically produced through tubing.
Turnkey Contract – a contract in which an operator or drilling contractor agrees to furnish all labor and materials
necessary to drill a well to a certain depth or stage of completion for a specified sum of money. The operator or
contractor assumes all of the responsibility and risks involved in completing the operation.
Umbilical – a flexible bundle of small tubes and wires typically used to link remote subsea drill centers to a central
hub. Umbilicals can control electric or hydraulic valves, carry production chemicals, provide flow assurance during
shut-ins, etc, and can be the size from inches to a foot or two in diameter.
Underbalanced Drilling - occurs when the bottom hole pressure exerted by the hydrostatic head of the drilling
fluid column is less than the pressure of the formation being drilled. The reservoir is able to flow while drilling
takes place, protecting the formation from damage by the drilling fluids.
Underream – enlarging a wellbore beyond its original size allowing a smaller hole to be drilled near the surface
and a larger diameter hole in the reservoir section.
Valve - A device used to control the rate of flow in a line, to open or shut off a line completely, or to serve as an
automatic or semi-automatic safety device.
Wellhead – Specifically the equipment installed at the surface of a wellbore for installing casing hangers during
drilling and supporting the production tubing and Christmas tree; but sometimes used in a general reference to the
entire equipment assembly including Christmas tree.
Wireline - Wire or cable used for downhole operations (see formation evaluation, logging, etc).
Workover - Re-entry into a completed well to improve flow rates by any number of operations including recompletions, re-fracturing, stimulations, installing new equipment, etc.
* Sources – Company reports, industry publications, HW research
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
5
Company Profile:
Baker Hughes provides drilling, formation evaluation, completion and production products and services to the worldwide oil and gas industry. Baker Hughes operates in over
80 countries worldwide providing products and technologies to international oil and gas companies, independent oil and gas companies, and national oil companies.
Drilling and Evaluation - Drilling and Evaluation consists of the following business units.
Drill Bits - product lines include the Tricone roller cone bits and fixed cutter diamond compact bits (PDC).
Drilling Services- services and systems including: MWD/LWD, directional drilling, rotary steerable technology, drilling optimization, coil tubing and wellbore re-entry, coring
drilling, and surface logging.
Wireline Services- services including open-hole and cased-hole logging, casing perforating, pipe recovery, reservoir evaluation coring, fluid characterization, production
logging, well integrity testing, and seismic/microseismic.
Drilling and Completion Fluids - emulsion and water-based drilling fluids and related services, fluids environmental services (FES).
Baker Hughes Inc. - BHI (NYSE)
www.bakerhughes.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$61.52
436
$26,834
4.2
$42.60 - $64.20
11.3%
1.0%
59,400
Management
Martin Craighead, Pres./CEO
Peter Ragauss, CFO
in office since
2012
2006
Investor Relations Contacts
Trey Clark
713-439-8039
Completion and Production - Completion and Production consists of the following business units.
Completion Systems - products and services include: sand control, liner hangers, wellbore isolation, expandable tubulars, multi-laterals, packers and flow control, and tubing
conveyed perforating.
Wellbore Intervention - products and services include: thru-tubing fishing and inflatables, conventional fishing, casing exit, production injection packers, remedial and
stimulation tools, and wellbore cleanup.
Intelligent Production Systems - products and services to monitor and control production including: chemical injection, well monitoring, intelligent well systems, and artificial
lift monitoring.
Artificial Lift - electrical submersible pumping (ESP) systems, progressing cavity pumping (PCP) systems, gas lift systems, and horizontal surface pumping systems.
Upstream Chemicals - chemicals and systems to provide flow assurance, integrity management, and hydrocarbon production.
Pressure Pumping - includes cementing, stimulation, and coiled tubing services for the completion of new wells or remediation of existing wells, both onshore and offshore.
Industrial Services - downstream chemicals, process and pipeline services, and stimulation chemicals. Also, reservoir technology and consulting services and software.
Share Repurchase Snapshot (mil $)
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
$2,000
$1,650
6.1%
BUSINESS SEGMENT BREAKDOWN
2013
2008
BALANCE SHEET (mil.)
12/31/13
Cash & Short Term Investments
$1,399
PP&E (net)
$9,076
Goodwill
$5,996
Total Assets
$27,934
Short-term Debt
$499
Long-term Debt
$3,882
Total Liabilities
$10,022
Minority Interest
$199
Shareholder Equity
$17,713
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
Industrial
and Other
6%
Drilling &
Evaluation
50%
Drilling &
Evaluation
35%
Completion
&
Production
59%
Completion &
Production
43%
$6,717
$40.61
$26.86
18.0%
19.8%
14.4%
2013
2008
Total Revenue: $22,364 million
Total Revenue: $11.864 million
Industrial and
Other
7%
GEOGRAPHIC REVENUE BREAKDOWN
Mid East,
Asia Pac
19%
United States
38%
Mid East, Asia Pac
18%
United
States
45%
Europe/Africa/CIS
19%
Europe/Africa/CIS
29%
Latin America
9%
Canada
6%
Canada
6%
Latin
America
11%
Key Competitor Landscape by Product Line for 2013
$4,000
$2,000
BHI
$0
SLB
BHI
$6,000
HAL
(million)
(million)
$1,000
$0
WFT
SLB
WFT
$8,000
$1,500
$500
$0
BHI
$10,000
SLB
$1,000
HAL
NOV
$2,000
$1,000
$0
HAL
BHI
SLB
$0
$3,000
$2,000
HAL
$500
$2,000
$2,500
BHI
$1,000
(million)
(million)
$3,000
Pressure Pumping
$3,000
$4,000
SLB
$1,500
(million)
$5,000
$4,000
$2,000
Artificial Lift
Directional Drilling
WFT
Completions
Bits
Source: Spears & Associates
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
6
Company Profile:
Halliburton is one of the world's largest providers of products and services to the oil and gas industries with operations in approximately 80 countries. The
Company operates under two main segments:
Halliburton Co. - HAL (NYSE)
www.halliburton.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Total Employees
$56.78
851
$48,312
8.7
$36.77 - $57.42
11.9%
1.1%
77,000
Completion and Production - delivers cementing, stimulation, intervention, artificial lift, and completion services. Services in this segment include: optimization
of oil and gas production through pressure pumping, fracturing, and acidizing; pipeline and facility testing; sand control services for the prevention of formation
sand production; live well intervention and continuous pipe deployment through the use of hydraulic workover systems and coiled tubing tools; and real-time
reservoir analysis.
Drilling and Evaluation - provides field and reservoir modeling, drilling, evaluation, and precise well-bore placement solutions enabling modeling,
measurement, and optimization of well construction activities. This segment includes Baroid Fluid Services (fluid systems for workover operations), Sperry
Drilling (directional and horizontal drilling, measurement-while-drilling, and rig site information systems), Halliburton Drill Bits and Services, Wireline and
Perforating (information on formation evaluation), Testing and Subsea, Landmark (integrated exploration, drilling, and production software information systems),
and project management.
Management
in office since
David J. Lesar, Chairman/CEO
2000
Mark A. McCollum, CFO
2008
BUSINESS SEGMENT BREAKDOWN
Investor Relations Contact
Kelly Youngblood
GEOGRAPHIC REVENUE BREAKDOWN
281-871-2633
Share Repurchase Snapshot (mil $)
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
2013
Total Revenue: $29,402 million
$5,000
$1,694
3.5%
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$2,356
PP&E (net)
$11,322
Goodwill
$2,168
Total Assets
$29,223
Short-term Debt
$0
Long-term Debt
$7,816
Total Liabilities
$15,608
Minority Interest
$34
Shareholder Equity
$13,581
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
2013
2008
2008
Total Revenue: $18,279 million
Drilling &
Evaluation
40%
Drilling & Evaluation
46%
Middle East
17%
Completion &
Production
54%
Completion &
Production
60%
Europe/ Africa
24%
North America
46%
Middle
East
17%
North
America
52%
Europe/
Africa
18%
Latin America
13%
Latin
America
13%
$8,678
$15.96
$13.41
36.5%
36.5%
28.7%
Key Competitor Landscape by Product Line for 2013
(million)
$2,000
$1,000
$0
$4,000
$2,000
BHI
WFT
SLB
HAL
$0
SLB
WFT
HAL
SLB
BHI
BHI
SLB
HAL
$1,000
$0
$0
$0
$6,000
$2,000
BHI
$1,000
$3,000
$3,000
WFT
$2,000
$8,000
BHI
$2,000
$4,000
$4,000
HAL
$3,000
$4,000
$5,000
HAL
(million)
$6,000
(million)
$4,000
Wireline
Completions
(million)
$5,000
$8,000
(million)
Drilling & Completion Fluids
Directional Drilling
SLB
Pressure Pumping
$10,000
Source: Spears & Associates
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
7
Company Profile:
Schlumberger Ltd. - SLB (NYSE)
www.slb.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$90.36
1306
$118,050
5.6
$69.08 - $94.91
0.3%
1.8%
123,000
Management
Paal Kibsgaard, CEO
Simon Ayat, CFO
in office since
2011
2007
Investor Relations Contact
Simon Farrant
713-375-3533
Schlumberger Ltd. operates in each of the major oilfield service markets covering the entire life cycle of the reservoir, managing its business through three major Groups:
Reservoir Characterization Group: Consists of the main Technologies involved in finding and defining hydrocarbon reserves. The group consists of :
• WesternGeco - provides reservoir imaging, monitoring, and development services, with seismic crews and data processing centers, as well as seismic libraries.
Services range from 3D and time-lapse(4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. Operates in land,
marine, and shallow-water transition-zone areas.
• Wireline - provides the information necessary to evaluate the formation, plan and monitor well construction, and monitor and evaluate production.
• Testing Services - includes surface and downhole testing and perforating services.
• Schlumberger Information Solutions - provides consulting, software, information management and IT infrastructure services.
• PetroTechnical Services- supplies measurement, interpretation and integration of all exploration and production data types, as well as expert consulting services for
reservoir characterization, production enhancement, field development planning, and multi-disciplinary reservoir and production solutions.
Drilling Group: Consists of principal technologies used in the drilling and positioning of oil and gas wells. The group is made up of:
• M-I SWACO - provides drilling and completion fluids, solids-control and separation equipment, waste-management services and oilfield production chemicals.
• Bits & Advanced Technologies Designs - manufactures and markets roller cone and fixed cutter drill bits for all environments.
• Geoservices - supplies mud logging services for geological and drilling surveillance.
• Drilling & Measurements and PathFinder - supplies directional drilling, measurements-while-drilling, and logging-while-drilling-services.
• Drilling Tools & Remedial - provides bottom hole assembly drilling tools, borehole enlargement technologies and impact tools, as well as a collection of tubular and
tubular services.
Production Group: Consists of Technologies involved in the lifetime production of oil and gas reservoirs. This group is comprised of:
• Well Services - provides services to construct oil and gas wells, as well as maintain optimal production through the life of an oil and gas field. These include pressure
pumping, well stimulation services, coiled tubing, cementing, and engineering.
• Completions - provides completion and production optimization services, including intelligent well completions.
• Artificial Lift - provides production equipment and optimization services using electrical submersible pumps and gas lift equipment, as well as surface horizontal
pumping systems.
• Well Intervention - develops coiled tubing equipment and services and provides slickline services for downhole mechanical well intervention, reservoir monitoring and
downhole data acquisition.
• Water Services - specializes in the development, management and environmental protection of water resources
• Carbon Services - provides comprehensive geological storage solutions for carbon dioxide.
SLB has a 40% ownership in OneSubsea, a joint venture with CAM. The JV manufactures and develops products, systems and services for the subsea oil and gas market.
SLB's 40% share of net income from the JV is reflected in the results of the Production Group.
Share Repurchase Snapshot (mil $)
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
$10,000
$8,283
7.0%
BUSINESS SEGMENT BREAKDOWN
BALANCE SHEET (mil.)
12/31/13
Cash & Short Term Investments
$8,370
PP&E (net)
$15,096
Goodwill
$14,706
Total Assets
$67,100
Short-term Debt
$2,783
Long-term Debt
$10,393
Total Liabilities
$27,465
Minority Interest
$166
Shareholder Equity
$39,469
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
GEOGRAPHIC REVENUE BREAKDOWN
2013
Total Revenue: $45,266 million
Western Geco
10%
$12,700
$30.21
$18.95
20.8%
25.0%
10.9%
Reservoir
Characterization
27%
Reservoir
Production
35%
Oilfield Service
90%
2013
2008
2008
Total Revenue: $27,163 million
Other
1%
Middle East & Asia
24%
Latin America
17%
Europe/ CIS/ W.
Africa
34%
Drilling
38%
Middle
East &
Asia
24%
North America
24%
Other
1%
North
America
31%
Latin
America
17%
Europe/
CIS/ W.
Africa
27%
Key Competitor Landscape by Product Line for 2013
$2,000
$1,500
$1,000
$500
NOV
HAL
SLB
$0
BHI
$0
$0
TTI
$1,000
BHI
$1,000
Bits
(million)
$2,000
NR
BHI
SLB
HAL
BHI
WFT
SLB
HAL
$0
$2,000
$3,000
SLB
$2,000
(million)
$4,000
HAL
$0
$4,000
$3,000
WFT
$2,000
$4,000
$6,000
BHI
$4,000
$5,000
$8,000
SLB
(million)
(million)
$6,000
$10,000
$5,000
(million)
$8,000
Drilling & Completion Fluids
Directional Drilling
HAL
Pressure Pumping
Wireline
Source: Spears & Associates
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
8
Company Profile:
Weatherford International Ltd. provides equipment and services used for the drilling, evaluation, completion, production and intervention of oil and natural gas wells. The
Company groups their product offerings into two service lines:
Formation Evaluation and Well Construction- in this segment the Company provides formation and evaluation services from early well planning to reservoir management
services, including core analysis, surface logging, well site geochemistry, logging while drilling, and wireline services. The Company also provides well construction services to
help client ensure well integrity for the full life cycle of the well using reliable casing and tubing strings, cementation designs, reliable liner top isolation, and methods that
ensure the well reaches total depth.
Weatherford Int'l - WFT (NYSE)
www.weatherford.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
The product service lines that are grouped within this segment are: Controlled Pressure Drilling and Testing, Drilling Services, Tubular Running Services, Drilling Tools,
Integrated Drilling, Wireline Services, Re-entry and Fishing Services, Cementing, Liner Systems, Integrated Laboratory Services, and Surface Logging Systems.
$16.74
771
$12,910
9.4
$11.11 - $17.53
8.1%
67,000
Management
Bernard Duroc-Danner, Chn/CEO
Krishna Shivram, CFO
in office since
1998
2013
Investor Relations Contact
Karen David-Green
713-836-7430
Completion and Production Services - The completion products, reservoir stimulation design and engineering capabilities are delivered to unlock reserves in deepwater,
unconventional and aging reservoirs. The suite of production optimization services boosts field productivity and profitability through the Company's artificial lift portfolio as well
as production workflows and optimization software.
The product service lines that are grouped within this segment are: Artificial Lift Systems, Stimulation and Chemicals, Completion Systems, Pipeline and Specially Services.
The Company is in the process of divesting its non-core assets which include Land Rigs, Drilling Fluids, Wellhead, Pipelines and Specialty Services, and Well Testing. These
businesses accounted for approximately 20% of WFT sales in FY13.
Share Repurchase Snapshot (mil $)
BUSINESS SEGMENT BREAKDOWN
No Authorization in Place
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$435
PP&E (net)
$8,368
Goodwill
$3,709
Total Assets
$21,977
Short-term Debt
$1,666
Long-term Debt
$7,061
Total Liabilities
$13,774
Minority Interest
$41
Shareholder Equity
$8,162
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
GEOGRAPHIC REVENUE BREAKDOWN
2008
2008
2013
Total Revenue: $9,601 million
Total Revenue: $15,263 million
Completion &
Production
Systems
39%
Completion &
Production Systems
37%
Middle
East/North
Africa/Asia
25%
Formation
Evaluation and Well
Construction
63%
$3,075
$10.58
$5.77
46.4%
51.7%
50.4%
Europe, CIS &
West Africa
16%
Formation
Evaluation and Well
Construction
61%
2013
Middle
East/North
Africa/Asia
22%
United States
35%
Canada
11%
United
States
34%
Europe,
CIS & West
Africa
18%
Latin
America
18%
Latin America
13%
Canada
8%
Key Competitor Landscape by Product Line for 2013
$5,000
$1,000
(million)
$1,000
$500
SLB
WFT
SPN
$0
$0
HAL
SLB
WFT
BHI
HAL
BHI
FI
WFT
$1,000
$500
$0
$0
$1,500
OIS
$500
$0
$2,000
BHI
$1,000
$1,500
$2,000
SLB
$1,500
$3,000
SLB
$200
(million)
(million)
$400
$2,000
(million)
$4,000
$2,500
$600
$2,000
$2,500
WFT
$3,000
$800
(million)
$3,000
$3,500
$1,000
Rental and Fishing
Artificial Lift
Directional Drilling
WFT
Completions
BHI
Casing and Tubing
Services
Source: Spears & Associates
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
9
Company Profile:
Cameron International Corporation manufactures oil and gas pressure control and separation equipment, including valves, wellheads, controls, chokes, blowout
preventers and assembled systems for oil and gas drilling, production and transmission used in onshore, offshore and subsea applications. Cameron also
manufactures centrifugal air compressors, integral and separable gas compressors and turbochargers.
Cameron - CAM (NYSE)
www.c-a-m.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
$62.66
217
$13,584
3.1
$52.50 - $66.12
5.3%
29,000
Management
Jack Moore, CEO
Charles Sledge, CFO
in office since
2008
2008
Investor Relations Contact
Jeff Altamari
713-513-3344
Drilling & Production Systems - products include surface and subsea drilling and production systems, drilling equipment packages, control systems, blowout
preventers (BOPs), oil and gas separation equipment, gate valves, actuators, chokes, wellheads, drilling riser and aftermarket parts and services. Additionally,
DPS manufactures elastomers, which are used in pressure and flow control equipment and other petroleum industry applications, as well as in the petrochemical,
rubber molding and plastics industries. On June 30, 2013 CAM and SLB completed the formation of OneSubsea. CAM has a 60% ownership in OneSubsea, a
joint venture with SLBM. The JV manufactures and develops products, systems and services for the subsea oil and gas market.
Valves & Measurement - valve products include gate valves, ball valves, butterfly valves, Orbit® valves, block and bleed valves, plug valves, globe valves,
check valves, actuators, chokes and aftermarket parts and services. Measurement products include totalizers, turbine meters, flow computers, chart recorders,
ultrasonic flow meters and sampling solutions. Aftermarket services include OEM parts, repair, field service, asset management and remanufactured product to
customers, particularly in support of the installed base of equipment.
Process & Compression Systems - provides reciprocating and centrifugal compression equipment and related aftermarket parts and services. The Company’s
compression equipment is used by gas transmission companies, compression leasing companies, oil and gas producers, independent power producers and in a
variety of other industries. Its aftermarket services include spare parts, technical services, repairs, overhauls and upgrades. The completion of the NATCO
acquisition in late 2009 expanded the size and product offerings of the Company's separation and processing business. Products offered include separators,
heaters, dehydration and desalting units, gas conditioning units, membrane separation systems, water processing systems, and aftermarket parts and services.
Recent Events: On January 20, 2014 the Company announced the sale of its Reciprocating Compression business to GE for approximately $550 million. The
sale is expected to close 3Q14. CAM will realize after-tax proceeds of $400 million.
Share Repurchase Snapshot (mil. shares)
Current Authorization
Remaining as of 1/30/14
Potential Buyback of Shares O/S
$2,400.0
$615.0
4.5%
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$1,854
PP&E (net)
$2,037
Goodwill
$2,925
Total Assets
$14,249
Short-term Debt
$297
Long-term Debt
$2,563
Total Liabilities
$7,333
Minority Interest
$1,064
Shareholder Equity
$5,852
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$3,908
$26.99
$13.50
30.5%
32.8%
14.7%
BUSINESS SEGMENT BREAKDOWN
Total Revenue: $9,838 million
Process &
Compression
Systems
11%
Process &
Compression
Systems
15%
Europe
22%
Other
5%
Europe
16%
North America
35%
Other
3%
North America
39%
Africa
10%
Drilling &
Production
Systems
64%
Valves &
Measurement
21%
Drilling &
Production
Systems
64%
Africa
12%
Asia, including
Middle East
19%
South America
7%
Asia, including
Middle East
24%
South America
8%
Year End Backlog
2013 Subsea Tree Awards
Market Share**
Industry-wide Subsea
Tree Bookings*
$12,000
600
$10,000
GE
8%
$8,000
400
AKS
27%
300
FTI
35%
(million)
500
$6,000
$4,000
200
$2,000
100
V&M
2011
2012
2009
2010
2007
DPS
2013
* *Source: Quest Offshore, HW Research
2008
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014E
* 2014 Estimate per Quest Offshore
CAM
30%
2005
$0
0
2006
# of Trees
2013
2008
2013
2008
Total Revenue: $5,849 million
Valves &
Measurement
25%
GEOGRAPHIC REVENUE BREAKDOWN
PCS
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
10
Company Profile:
FMC Technologies, Inc. provides technology solutions for the energy industry. The Company manufactures systems and products including subsea production
and processing systems, surface wellhead production systems, high pressure fluid control equipment, measurement solutions, and marine loading systems.
FMC Technologies - FTI (NYSE)
Subsea Technologies - designs and manufactures systems and provides services used by oil and gas companies involved in deepwater exploration and
production of crude oil and gas. This segment is broken down into three products and services divisions: subsea systems, Schilling Robotics, and multi phase
meters. Subsea systems made up roughly 63% of the Company's consolidated revenue in 2013.
www.fmctechnologies.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
$51.21
236
$12,086
2.2
$47.58 - $59.79
-1.9%
19,300
Management
John Gremp, Pres./CEO
Maryann T. Seaman, CFO
Investor Relations Contact
Brad Alexander
in office since
2011
2011
Surface Technologies- designs, manufactures and supplies high pressure valves and fittings for oilfield service customers, involved in land and offshore
exploration and production. The three segments are: 1) Surface Wellhead, which provides surface wellheads and production systems to service applications,
2) Fluid Control, which designs and manufactures flowline products, under the Weco/Chicksan trademark, and pumps and valves used in well completion and
stimulation activities, and 3) Completion Services, which provides frac flowback services, cased hole electric wireline, logging services, pressure analysis, and
well optimization and swabbing services. Surface Wellhead and Fluid Control made up roughly 14% and 8% of consolidated revenue in 2013, respectively.
Energy Infrastructure- consists of five different products and services.
- Measurement Solutions: provides solutions for use in custody transfer of crude oil, natural gas, and refined products.
- Loading Systems: provide land and marine based fluid loading and transfer systems.
- Material Handling Solutions: products include bulk conveying systems to the power generation industry.
- Separation Systems: designs and manufactures systems that separate production flows from wells into oil, gas and water.
- Automation and Control: provides automation, control, and information technology to oil and gas and other industries.
281-405-6345
Share Repurchase Snapshot (mil shares)
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
75.0
12.9
5.5%
BUSINESS SEGMENT BREAKDOWN
2008
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$399
PP&E (net)
$1,349
Goodwill
$581
Total Assets
$6,606
Short-term Debt
$43
Long-term Debt
$1,330
Total Liabilities
$4,269
Minority Interest
$19
Shareholder Equity
$2,317
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$1,408
$9.82
$7.36
36.5%
37.2%
29.6%
Industry-wide Subsea
Tree Bookings*
2013
Total Revenue: $4,554 million
Energy
Processing
Systems
19%
GEOGRAPHIC REVENUE BREAKDOWN
Total Revenue: $7,126 million
Surface
Technologies
25%
2013
2008
Energy
Infrastructure
9%
United States
24%
Other
47%
Subsea
Technologies
66%
Energy
Production
Systems
81%
Angola
5%
2013 Subsea Tree Awards
Market Share**
United
States
27%
Other
39%
Norway
24%
Brazil
10%
Angola
7%
Norway
17%
Year End Backlog
$8,000
$7,000
$6,000
GE
8%
300
$3,000
$2,000
FTI
35%
$1,000
$0
2010
100
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014E
0
CAM
30%
Subsea Technolo gies
2013
AKS
27%
200
$4,000
2012
400
$5,000
2011
# of Trees
500
(million)
600
Surface Technologies
Energy Infrastructure
* 2014 Estimate per Quest Offshore
** Source: Quest Offshore, HW Research
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
11
Company Profile:
National Oilwell Varco, Inc. is a worldwide provider of equipment and components used in oil and gas drilling and production operations, oilfield services, and
supply chain integration services to the upstream oil and gas industry. The Company conducts operations in over 1,235 locations across six continents.
National Oilwell Varco - NOV (NYSE)
www.nov.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$73.99
429
$31,707
4.3
$63.08 - $84.71
-7.0%
1.4%
63,779
Management
Clay Williams, CEO
Jeremy Thigpen, CFO
in office since
2014
2012
Investor Relations Contact
Loren Singletary
713-346-7807
Rig Technology - designs, manufactures, and sells capital equipment used in the drilling, completion, and servicing of oil and gas wells including equipment for
offshore and onshore drilling rigs; derricks; pipe lifting, racking, rotating and assembly systems; coiled tubing equipment and pressure pumping units; well
workover rigs; wireline winches; cranes, and rig instrumentation systems. The APL acquisition back in 2010 provided the Company with turret morring systems
and other FPSO manufacturing capabilities. In April 2012 the Company acquired NKT Flexibles, which designs and manufactures flexible pipe products and
systems for the offshore oil and gas industry, including products associated with FPSO's and other offshore vessels, as well as subsea production systems
including flow-lines and flexible risers.
Petroleum Services & Supplies - provides a variety of consumable goods and services used to drill, complete, remediate and workover oil and gas wells and
service pipelines, flowlines and other oilfield tubular goods. The segment manufactures, rents and sells products and equipment used to perform drilling
operations, including drill pipe, transfer pumps, solids control systems, drilling motors, drilling fluids, drill bits and other downhole tools, as well as mud pump
consumables. The segment also provides pipeline and tubular inspection and coating services.
Distribution & Transmission- provides maintenance, repair and operating supplies and spare parts to drill site and production locations throughout North
America and to offshore contractors worldwide. Increasingly, this business is also expanding to locations outside North America, including Mexico, Europe, the
Middle East, Southeast Asia and South America.
Recent Events - On September 24, 2013 the Company announced the plan to spin-off the Company's distribution business from the remainder of the Company,
creating two stand-alone, publicly traded corporations. Upon the completion of the split, Pete Miller will become CEO of the new distribution business.
Share Repurchase Authorization
BUSINESS SEGMENT BREAKDOWN
No Authorization in Place
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$3,436
PP&E (net)
$3,408
Goodwill
$9,049
Total Assets
$34,812
Short-term Debt
$1
Long-term Debt
$3,149
Total Liabilities
$12,482
Minority Interest
$100
Shareholder Equity
$22,230
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$9,745
$51.88
$30.76
12.4%
12.4%
-1.3%
GEOGRAPHIC REVENUE BREAKDOWN
2008
2013
Total Revenue: $13,431 million
Total Revenue: $22,869 million
Distribution
Services
13%
Petroleum
Services and
Supplies
33%
Rig Technology
54%
2013
2008
Rig
Technology
49%
Distribution
Services
21%
United States
33%
United
States
35%
Other
24%
Other
45%
Petroleum
Services
and
Supplies
30%
South Korea
2%
Canada
6%
Norway
4%
Singapore
6%
Canada
6%
SE Asia
27%
Europe
8%
United Kingdom
4%
Key Competitor Landscape by Product Line for 2013
Capital Equipment Backlog
Solids Control
BUSINESS SEGMENT
KEY COMPETITORS
$18,000
$14,000
$12,000
(million)
$1,000
$800
$600
$10,000
$8,000
$6,000
$400
$4,000
$200
$2,000
Source: Spears & Associates
2012
2013
2010
2011
2008
2009
BHI
HAL
2005
2006
2007
$-
$0
NOV
SLB, WFT
SLB, Derrick
$16,000
$1,200
SLB
Petroleum Services and Supplies
Downhole Drilling Tools & Motors
Solids Control
Gardner Denver, CAM
Aker, CAM
NBR, Tesco, Aker, CAM
Aker, CAM
CAM, GE
$1,400
(million)
Rig Technology
Mud pumps*
Draw works*
Top Drives
Pipe Handling
BOPs
Source: Company Reports
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
12
Company Profile:
Tenaris S.A. is the worldwide leader in the manufacturing of oil country tubular goods (OCTG) and related products. OCTG products consist of production casing,
surface casing, production tubing, and drill pipe. TS also manufactures a broad spectrum of line pipe, a wide-diameter tubular product employed in the pipeline
construction process.
Tenaris S. A. - TS (NYSE)
www.tenaris.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
Management
Paolo Rocca, Chairman/CEO
Edgardo Carlos, CFO
Investor Relations Contact
Giovanni Sardagna
Alejandro Trinidad
Raul Garcia
$42.19
590
$24,903
1.3
$38.47 - $49.87
-3.4%
2.0%
26,825
Tubes - the segment includes the operations consisting of the production and sales of both seamless and welded steel tubular products and related services for
the oil and gas industry. We estimate that seamless sales account for about 70% of the Company's production volume. Products primarily consist of OCTG used
in drilling operations, and tubular products used in other industrial applications. The Company also provides couplings which serve as fortified connectors between
joints of tubing. The Company manufactures its own line of premium connections and purchased Hydril in 2006 to gain its connection competencies. Demand in
this segment has historically been very volatile and directly related to the number of oil and gas wells being drilled and re-worked, along with the depth and drilling
conditions of the wells. Sales are primarily to end users with exports facilitated through a managed global distribution network and are done through local
suppliers.
Geographic Information - is reported in five areas: North America, South America, Europe, Middle East and Africa, and Far East and Oceania. Net sales are
allocated based on the customer's geographic location, while the allocation of assets and capital expenditures is based on the location of the assets.
in office since
2006
2013
+39 02 4384 7654
+54 11 4018 4078
713-585-3982
Share Repurchase Snapshot (mil shares)
BUSINESS SEGMENT BREAKDOWN
GEOGRAPHIC REVENUE BREAKDOWN
No Authorization in Place
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$615
PP&E (net)
$4,674
Goodwill
$3,067
Total Assets
$15,931
Short-term Debt
$685
Long-term Debt
$246
Total Liabilities
$3,461
Minority Interest
$179
Shareholder Equity
$12,290
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
2013
Total Revenue: $10,597 million
Projects
11%
Far East
6%
Other
7%
Other
6%
2013
2008
2008
Total Revenue: $11.988 million
North America
40%
ME / Africa
15%
ME / Africa
20%
Far East
5%
North
America
42%
Europe
9%
Europe
15%
Tubes
93%
Tubes
83%
$4,806
$20.82
$15.63
2.0%
7.0%
2.5%
South
America
24%
South America
24%
2013 OCTG Market Share
Premium OCT Consumption by
Application (2013E)
OCTG Demand
18
16
Tenaris
34%
NOV
5%
12
Others Oil
24%
10
8
6
4
TMK
13%
V&M Tubes
19%
0
2009
2010
2011
API
Source: Spears & Associates, Company Reports
Shallow
Water
21%
Others Gas
18%
2
USX
11%
Deepwater
14%
14
In Million Tons
Other
12%
SUMI
6%
2012
2013E
Shale Gas
8%
Shale Oil
15%
Premium
Source: Company Reports
Source: Company Reports
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
13
Company Profile:
Basic Energy Services provides a wide range of well site services to oil and gas drilling and producing companies, including, completion and remedial services,
fluid services, well servicing and contract drilling. The Company has significant presence in the Permian, Bakken, Eagle Ford, Mid-Con, Haynesville, and
Marcellus.
Basic Energy Services - BAS (NYSE)
www.basicenergyservices.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
$25.47
43
$1,083
1.4
$11.06 - $26.22
61.4%
5,400
Management
Roe Patterson, CEO
Alan Krenek, CFO
in office since
2013
2005
Completion and Remedial Services: the segment currently operates the Company's fleet of pressure pumping units, an array of specialized rental equipment
and fishing tools, coiled tubing units, snubbing units, thru-tubing, air compressor packages specially configured for underbalanced drilling operations, cased-hole
wireline units, nitrogen units, and water treatment. This segment operates 232 pumping units, with approximately 297,000 of horsepower capacity. The largest
portion of this business segment consists of pumping services focused on cementing, acidizing and fracturing services in niche markets.
Fluid Services: the segment currently utilizes the Company's fleet of 1,003 fluid service trucks and related assets, including specialized tank trucks, storage
tanks, water wells, disposal facilities and construction related equipment. These services are required in most workover, completion, and remedial projects.
Well Servicing: the segment currently operates 425 well service rigs and related equipment. This business segment encompasses a full range of services
performed with a mobile well service rig, including the installation and removal of downhole equipment and elimination of obstructions in the well bore to facilitate
the flow of oil and gas.
Contract Drilling: the segment currently operates 12 drilling rigs.
Investor Relations Contact
Alan Krenek
817-334-4100
Share Repurchase Snapshot (mil $)
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
$35.2
$23.1
2.1%
2008
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$112
PP&E (net)
$928
Goodwill
$111
Total Assets
$1,543
Short-term Debt
$41
Long-term Debt
$847
Total Liabilities
$1,198
Shareholder Equity
$345
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
BUSINESS SEGMENT BREAKDOWN
Contract Drilling
4%
$238
$8.12
$5.51
71.0%
72.0%
69.2%
Mid-Con
60%
Total Revenue: $1,263 million
Completion and Remedial
Services
30%
Well Servicing
34%
Contract Drilling
4%
Well Servicing
29%
Completion and
Remedial Services
40%
Fluid Services
32%
Pumping Units by Market Area
Rockies
19%
2013
Total Revenue: $1,005 million
Fluid Services
27%
Fluid Trucks by Market Area
Permian
17%
Rockies
14%
Ark-La-Tex
4%
Well Service Rigs by Market Area
Mid-Con
7%
Permian
46%
Ark-La-Tex
18%
Gulf Coast
15%
Ark-La-Tex
9%
Stacked
8%
Appalachia
2%
Permian
45%
Gulf Coast
11%
Rockies
14%
Mid-Con
11%
Source: Company Filings
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
14
Company Profile:
Carbo Ceramics is the world's largest supplier of ceramic proppant and provides fracture simulation software and fracture design and consulting services. The
Company also provides technologies for spill prevention and containment.
Carbo Ceramics, Inc. - CRR (NYSE)
www.carboceramics.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$122.98
23
$2,841
0.3
$62.11 - $132.55
5.5%
1.0%
1,025
Management
Gary Kolstad, President/CEO
Ernesto Bautista III, CFO
in office since
2006
2009
Investor Relations Contact
Mark Thomas
281-921-6458
Ceramic Proppant - the Company primarily manufactures ceramic proppants, the most expensive of the three primary types of proppant utilized in the
hydraulic fracturing process (white sand, resin-coated sand, and ceramic). Proppant is injected into the fracture to maintain porosity and increase flow to the
wellbore. Ceramic proppants are stronger and more homogeneous than sand-based proppants, which tends to increase productivity in certain wellbores and
enables higher initial production and ultimate recovery over the life of the well. CARBO HSP and CARBO PROP are high strength proppants designed
primarily for deep gas wells. CARBO LITE, CARBO ECONOPROP, and CARBO HYDROPROP are lighter weight ceramic proppants. CARBO LITE is
designed for use in medium depth oil and gas wells; CARBO ECONOPROP is designed to compete directly against sand-based proppants, and CARBO
HYDROPROP is designed to improve performance in "slickwater" fracture treatments. In 2010, the Company began production of resin-coated ceramic
proppant (CARBO BOND LITE) and resin-coated sand (CARBO BOND RCS).
The Company's newest product KYRPTOSPHERE-H is a high-performance ceramic proppant made to increase conductivity and durability in the highest
closure stress wells. The Company continues to complete formal qualification milestones with its clients and anticipates initial sales could occur during 3Q14.
Fracture Simulation and Consulting Services - FracPro provides a suite of stimulation software solutions for on-site real-time analysis. StrataGen is a
consulting team that helps operators optimize well placement, fracture treatment design and production stimulation.
Spill Prevention and Containment - in October 2009, the Company acquired BBL Falcon Industries, Ltd, a supplier of spill prevention and containment
systems for the oil and natural gas industry. Falcon uses proprietary technology to extend the life of storage assets, reducing the likelihood of spills.
The Company expects Millen, Georgia line one to be online by the end of the second quarter with capacity of 250 million pounds. Construction of line two is
expected to commence the 1H14 and should be completed by 2Q15 with an additional 250 million pounds of capacity.
Share Repurchase Snapshot (mil shares)
Current Authorization
Remaining as of 2/21/14
Potential Buyback of Shares O/S
2.0
0.0
0.0%
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$94
PP&E (net)
$479
Goodwill
$12
Total Assets
$879
Short-term Debt
$0
Long-term Debt
$0
Total Liabilities
$110
Shareholder Equity
$769
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$315
$33.27
$32.74
0.0%
0.0%
-14.0%
BUSINESS SEGMENT BREAKDOWN
2008
GEOGRAPHIC REVENUE BREAKDOWN
2013*
Total Revenue: $388 million
Other
4%
Falcon
Technologies
6%
Proppant
96%
Other
18%
Other
14%
Other
4%
Canada
11%
Canada
7%
US
71%
Proppant
90%
US
79%
* The Company discontinued segment reporting after selling its Pinnacle assets in 2008 to HAL
2013 Ceramic Proppant
Market Share
Carimbaba
6%
CARBO Production Capacity
Location
Other
10%
Saint Gobain
26%
CARBO
58%
*Source: Spears & Associates
Source: Company Filings
2013
2008
Total Revenue: $667 million
Pounds/Year (MMs)
Eufaula, Alabama
McIntyre, Georgia
Toomsboro, Georgia
Luoyang, China
Kopeysk, Russia
Total Manufacturing Capacity
New Iberia, Louisiana
Total Capacity
275
275
1,000
100
100
1,750
400*
2,150
* Involves resin-coating of previously manufactured
ceramic proppant and white sand. In 2013 the Company
began producing KRYPTOSPHERE-H at New Iberia
Source: Company Filings
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
15
Company Profile:
Core Laboratories is one of the leading providers of proprietary and patented reservoir description, production enhancement, and reservoir management
services to the oil and gas industry.
Core Laboratories NV - CLB (NYSE)
www.corelab.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$198.97
45
$8,927
0.3
$124.27 - $202.53
4.2%
1.0%
5,000
Management
in office since
David Demshur, CEO & President
1994
Richard Bergmark, CFO
1994
Investor Relations Contact
Richard Bergmark
Reservoir Description - the Company analyzes core samples of reservoir rocks for porosity (to determine the reservoir storage capacity) and for permeability
(to define the ability for fluid to flow through the rock). These measurements are used to determine how much oil and gas are present in a given reservoir and at
what rates they can be produced. Proprietary services and technologies are also used to correlate core samples to wireline logs and seismic data.
Production Enhancement - the Company's services and technologies are used to maximize the efficiency of hydraulic fracturing and reservoir flooding
methods. For hydraulic fracturing, the Company provides data on rock strength and type and "tracers" to determine if proppant has been correctly placed in the
fractures, and to evaluate the quantity of fracture fluid that returns to the wellbore. The Company also manufactures high-performance perforating products that
result in deeper, cleaner perforation tunnels into oil and gas shale reservoirs.
Reservoir Management - Core Labs develops and provides industry consortium studies that provide reservoir information to a broad spectrum of clients for
both North American and International projects. Areas of study include, North America natural gas shale reservoirs, deep water Gulf of Mexico, worldwide tightgas sands, deepwater Brazil and West Africa, and international oil and gas shale potential in Europe, North Africa, and Asia.
713-328-2101
Share Repurchase Snapshot
Current Author. (% of issued cap)
Remaining (mil shares)
Potential Buyback of Shares O/S
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$25
PP&E (net)
$139
Goodwill
$163
Total Assets
$661
Short-term Debt
$0
Long-term Debt
$267
Total Liabilities
$492
Minority Interest
$6
Shareholder Equity
$163
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
BUSINESS SEGMENT BREAKDOWN
10.0%
3.0
6.7%
$168
$3.64
($0.00)
62.0%
62.0%
59.7%
GEOGRAPHIC REVENUE BREAKDOWN
2013
2008
Total Revenue: $781 million
2013
2008
Total Revenue: $1,074 million
Reservoir
Management
9%
Reservoir
Management
7%
Other
18%
Europe/
Africa/ME
40%
US
50%
US
47%
Production
Enhancement
37%
Reservoir
Description
56%
Production
Enhancement
42%
Reservoir
Description
49%
Canada
10%
Europe/
Africa/ME
24%
Canada
11%
Source: Core Laboratories NV
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
16
Company Profile:
Frank's International is one of the leading providers of highly engineered tubular services to the oil and gas industry. The Company provides services both
onshore and offshore, with a focus on complex and technically demanding wells. The Company generates revenue from personnel rates for employees who
perform tubular services along with rental rates for the suite of products and equipment that are used to perform these services.
Frank's International NV -
International Services- provides tubular services in international offshore markets and several onshore international regions in approximately 60 countries.
Customers in these international markets are primarily large exploration and production companies, including integrated oil and gas companies and national oil
and gas companies. This segment generates roughly 44% of the Company's revenue.
(NYSE)
www.franksinternational.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$24.20
154
$3,715
0.5
$20.76 - $32.70
-10.4%
1.2%
4,100
Management
Donald Keith Mosing, CEO
Mark Margavio, CFO
in office since
2011
2003
Investor Relations Contact
Thomas Dunavant
713-358-7343
U.S. Services- provides tubular services in almost all of the active onshore oil and gas drilling regions in the U.S., including the Permian, Eagle Ford,
Marcellus, Utica, Barnett, Woodford, Piceance Basin, San Juan Basin, Uintah, and the Bakken. The Company also operates offshore GOM. This segment
generates roughly 40% of the Company's revenue.
Tubular Sales - designs and manufactures products that are sold directly to external customers, including large OD pipe connects. The Company also
provides specialized fabrication and welding services in support of deepwater projects in the GOM. This segment generates roughly 16% of the Company's
revenue.
In August 2013, the Company began trading on the New York Stock Exchange, with 34.5 million shares.
Share Repurchase Snapshot
Current Author. (% of issued cap)
Remaining (mil shares)
Potential Buyback of Shares O/S
BUSINESS SEGMENT BREAKDOWN
NA
NA
NA
2011
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
Intl Land
16%
Source: Spears and Associates
Tubular
Sales
16%
Far East Other
5%
5%
Latin America
13%
International
Services
51%
U.S. Services
36%
$795
$7.15
$7.05
0.0%
0.0%
-58.4%
2013
Total Revenue: $1,077 million
Tubular Sales
13%
Casing and Tubing Market Size
Intl Offshore
38%
2011
2013
Total Revenue: $719 million
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$405
PP&E (net)
$511
Goodwill
$15
Total Assets
$1,561
Short-term Debt
$0
Long-term Debt
$0
Total Liabilities
$228
Minority Interest
$236
Shareholder Equity
$1,097
GEOGRAPHIC REVENUE BREAKDOWN
U.S. Services
40%
International
Services
44%
Casing and Tubing Expected Market Growth
U.S
47%
Far East
6%
Latin
America
7%
Other
8%
Europe/ME
/Africa
29%
Europe/ME
/Africa
30%
Casing and Tubing Market Share
Other
29%
NAM Land
20%
SLB
2%
Odfjell
2%
TESO
6%
NAM Offshore
26%
Source: Frank's International NV
U.S
50%
BHI
7%
WFT
27%
FI
27%
Source: Spears and Associates
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
17
Company Profile:
Key Energy Services, Inc. is the largest well service rig provider in the United States and provides a range of services to oil and natural gas production
companies including: rig-based well maintenance and workover services, well completion and re-completion services, fluid management services, fishing and
rental services, wireline services, and other ancillary oilfield services. Principal operations are located in the United States, Mexico, Columbia, Middle East, and
Russia.
Key Energy Services. - KEG (NYSE)
www.keyenergy.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
$8.67
153
$1,326
2.5
$5.61 - $9.29
9.7%
8,400
Management
Dick Alario, CEO
Trey Wilson, COO
Marshall Dodson, CFO
in office since
2006
2008
2013
Investor Relations Contact
West Gotcher
713-757-5539
US Segment- is made up of four business lines:
Rig-Based Services: provides services including the completion of newly drilled wells, workover and recompletion of existing wells, well maintenance, and the
plugging and abandonment of wells. The Company had a total of 987 rigs with 189 stacked as of December 31, 2014.
Fluid Management Services: provides vacuum truck services, fluid transportation services and disposal services for operators during the drilling, completion
and production phases of development. The Company also provides disposal services for fluids produced subsequent to well completion. These fluids are
removed from the well site and transported for disposal in saltwater disposal wells.
Coil Tubing Services: includes coil tubing pumping and nitrogen service offerings. The coil tubing operation consist of both small diameter conventional units
and large diameter units. As of December 31, 2013 the Company had 20 large diameter units and 31 smaller diameter units.
Fishing and Rental Services: fishing services involve recovering lost or stuck equipment in the well bore utilizing "fishing tools". The rental tool inventory
consists of drill pipe, tubulars, handling tools, pressure-control equipment, pumps, power swivels, reversing units and foam air units, as well as Edge fracstack
and flowback iron.
International Segment- includes operations in Mexico, Colombia, the Middle East, and Russia. Services include rig-based services such as maintenance,
workover, recompletion of wells, completion of new wells, and plugging and abandonment.
Share Repurchase Snapshot
BUSINESS SEGMENT BREAKDOWN
GEOGRAPHIC REVENUE BREAKDOWN
No current authorization in place
2013
2008
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
Production
Services
25%
International
13%
Fishing
& Rental
Services
15%
Well Servicing
75%
$274
$8.18
$4.09
37.9%
38.0%
37.1%
2008
2013
Total Revenue: $1,592 million
Total Revenue: $1,972 million
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$28
PP&E (net)
$1,366
Goodwill
$625
Total Assets
$2,587
Short-term Debt
$4
Long-term Debt
$764
Total Liabilities
$1,336
Shareholder Equity
$1,251
Coiled
Tubing
Services
12%
Rig
Services
42%
International
13%
International
9%
Fluid
Management
17%
U.S.
87%
U.S.
91%
U.S. Revenue Split
2013 U.S. Well Service Market Share
Fishing
17%
KEG
19%
Coiled Tubing
Services
14%
Others
47%
Rig Services
49%
NBR
15%
Eurasia
8%
Source: Spears and Associates
BAS
6%
SPN
5%
Fluid Mgmt.
20%
Source: Company Filings
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
18
Company Profile:
Superior Energy Services, Inc. is a diversified provider of oilfield services and equipment focusing on serving the needs of oil and gas companies primarily
through well intervention, rental tools and marine services.
Superior Energy Services - SPN (NYSE)
www.superiorenergy.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$28.35
159
$4,497
2.5
$22.85 - $29.95
6.5%
1.1%
14,500
Management
David Dunlap, Chairman/CEO
Robert Taylor, CFO
Investor Relations Contact
Gregory Rosenstein
in officer since
2010
1996
504-362-4321
Drilling Products and Services: includes downhole drilling tools and surface rentals.
Downhole drilling tools: includes rentals of tubulars and manufacturing and rentals of bottom hole tools.
Surface rentals: includes rentals of temporary onshore and offshore accommodation modules and accessories.
Onshore Completion and Workover Services: includes pressure pumping, fluid handling and workover services.
Pressure pumping: includes hydraulic fracturing and high pressure pumping services.
Fluid handling: includes services used to obtain, move, store, and dispose of fluids used in exploration, development, and production of reservoirs.
Workover services: provides a variety of well completion, workover, and maintenance services.
Production Services: includes intervention services and specialized pressure-control tools.
Intervention services: includes services to enhance, maintain, and extend oil and gas production during the life of the well, including coiled tubing,
cased hole and mechanical wireline, hydraulic workover and snubbing, and remedial pumping services.
Specialized pressure-control tools: downhole and surface products, such as BOPs, choke, manifolds, frac flow back trees and downhole valves,
used to manage and control pressure through the life of the field.
Subsea and Technical Solutions: include pressure control services, completion tools, subsea construction, end-of-life services, and marine technical services,
which generally address customer specific needs with their application. Most operations in this division require innovative and technical solutions and are
generally in offshore environments during the completion, production and decommissioning phase of the oil and gas well.
Recent Events: On February 25, 2014 the Company announced it was seeking a strategic alternative for its subsea construction business as well as its GOM
decommissioning business. Combined these two businesses contributed roughly 40% of Subsea and Technical Solutions revenue.
Share Repurchase Snapshot (mil $)
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
$400
$389
8.7%
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
PP&E (net)
Goodwill
Total Assets
Short-term Debt
Long-term Debt
Total Liabilities
Shareholder Equity
$196
$3,002
$2,458
$7,411
$20
$1,647
$3,280
$4,131
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$837
$26.05
$10.55
28.5%
28.7%
26.2%
BUSINESS SEGMENT BREAKDOWN
GEOGRAPHIC REVENUE BREAKDOWN
2008
2013
Total Revenue: $1,881 million
Total Revenue: $4,612 million
Marine
7%
Oil and Gas
3%
Rental Tools
29%
Well Intervention
61%
Subsea
and
Technical
Solutions
16%
2008
Drilling
Products
and
Services
18%
Onshore
Completion
and
Workover
Services
35%
Production
Services
31%
2013
US Land
29%
US GOM
20%
International
18%
International
17%
US GOM
54%
US Land
62%
Pressure Pumping Distribution
Bakken
30%
Eagle Ford
33%
Marcellus
11%
Barnet
6%
Source: SPN Analyst Day
Product/Service Line
Drilling Products and
Services
Onshore Completion and Well Servicing
Pressure Pumping
Workover Services
Coiled Tubing
Production Services
Wireline Logging
Production Testing
Subsea and Technical
Completion Tools and Products
Solutions
Position
#3
#4
#11
#4
#5
#5
#6
Permian
20%
Source: SPN
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
19
Company Profile:
TETRA Technologies, Inc. is a geographically diversified oil and gas services company, focused on completion fluids and associated products and services, water
management, after-frac flow back, production well testing, offshore rig cooling, compression-based production enhancement, and selected offshore services. The Company
operates under three divisions – Fluids, Offshore (Offshore Services and Maritech), and Production Enhancement.
Tetra Technologies - TTI (NYSE)
www.tetratec.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
$12.11
79
$955
0.7
$8.15 - $13.41
-2.0%
3,462
Management
Stuart M. Brightman, CEO
Elijio Serrano, CFO
in office since
2008
2012
Investor Relations Contact
Elijio Serrano
281-367-1983
Fluids Division - manufactures and markets clear brine fluids (CBFs), additives and other associated products and services to the oil and gas industry for use in completion
and workover operations. CBFs are solids-free, clear salt solutions that, like conventional drilling fluids, have high specific gravities and are used as weighting fluids to control
bottom hole pressures during oil and gas completion and workover activities. The use of CBFs increases production by reducing the likelihood of damage to the wellbore and
productive pay zone. The Division also markets certain fluids and dry calcium chloride manufactured at its production facilities to a variety of domestic and international
markets outside the energy industry.
Offshore Division - consists of the two following segments:
-- Offshore Services: provides a broad array of services including diving (Epic), marine, engineering, electric wireline, workover, and drilling services required for the
abandonment of depleted oil and gas wells and the decommissioning of platforms, pipelines, and other associated equipment. The segment operates primarily in the onshore
U.S. Gulf Coast region, inland waters and offshore markets of the Gulf of Mexico. The Company owns and operates onshore rigs, barge-mounted rigs, a platform rig, offshore
rigless packages, three heavy lift vessels, several dive support vessels, and other dive support assets.
-- Maritech: produces oil and gas from properties acquired primarily to support and provide a baseload of business for the WA&D Services segment. During 2011 and 2012
Maritech sold substantially all of its oil and gas producing properties, and current operations primarily consist of the ongoing abandonment and decommissioning associated
with its remaining operated and non-operated offshore wells, facilities, and production platforms. Approximately $43.4 million of Maritech decommissioning liabilities remain as
of December 31, 2013 and approximately $38.7 million of this is planned to be performed during 2014.
Production Enhancement Division - provides production testing services (flowback, pressure and volume) to the Texas, New Mexico, Louisiana, offshore Gulf of Mexico,
Rockies, Canada, and certain international markets. In addition, it is engaged in the design, fabrication, sale, lease and service of wellhead compression equipment
(Compressco) primarily used to enhance production from mature, low pressure natural gas wells located principally in the mid-continent, Rocky Mountain, Texas and Louisiana
regions of the United States and western Canada.
Share Repurchase Snapshot (mil $)
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
$20.0
$14.3
1.5%
BUSINESS SEGMENT BREAKDOWN
2008
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$39
PP&E (net)
$573
Goodwill
$188
Total Assets
$1,207
Short-term Debt
$0
Long-term Debt
$388
Total Liabilities
$609
Minority Interest
$42
Shareholder Equity
$556
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
Total Revenue: $1,009 million
Maritech
20%
$201
$7.04
$4.66
41.1%
41.1%
38.6%
Production
Enhancement
22%
Fluids
28%
Offshore
Services
30%
2013
2013
2008
Total Revenue: $909 million
Production
Enhancement
35%
Europe
11%
Asia/ Other
1%
Fluids
42%
South America
2%
Europe
Canada/
Mexico
4%
South
America
4%
8%
Africa
2%
Asia/ Other
3%
Canada/
Mexico
6%
U.S.
74%
U.S.
85%
Offshore
Services
23%
Key Competitor Landscape for 2013
Drilling & Completion Fluids
GEOGRAPHIC REVENUE BREAKDOWN
Oil and Gas Production Life-Cycle
Drilling
Completion
Production
Abandonment
$5,000
(million)
$4,000
FLUIDS
$3,000
$2,000
Production Enhancement
$1,000
TTI
BHI
NR
SLB
Source: Spears & Associates
HAL
$0
Offshore Services
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
20
Company Profile:
U.S. Silica is the second largest domestic provider of commercial silica, and has been around for 113 years. The Company operates 15 facilities across the
United States and controls 297 million tons of reserves. It owns one of the largest frac sand procession plants in the United States and controls approximately
138 million tons of reserves that can be processed to meet American Petroleum Institute (API) frac sand size specifications. The company is organized into
two business segment, Oil & Gas Proppants and Industrial & Specialty Products.
U.S. Silica - SLCA (NYSE)
www.ussilica.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$36.44
54
$1,951
1.9
$18.12 - $37.25
6.8%
1.4%
844
Management
Bryan Shinn, CEO
Donald Merril, CFO
in office since
2011
2013
Investor Relations Contact
Mike Lawson
301-682-0304
Oil & Gas Proppant: the Company's frac sand is used to stimulate and maintain the flow of hydrocarbons in oil and natural gas wells. This segment has
experienced rapid growth due to recent technological advances in the hydraulic fracturing process. The Company is bringing on a new mine in 2Q14 in Utica,
Wisconsin that will provide approximately 1.5 million tons of capacity a year.
Industrial & Specialty Products: products in this division are used in a wide rang of industrial applications, including glassmaking and chemical
manufacturing. In recent years new end markets have developed for high-margin, performance silica products, including solar panels, specialty coatings, wind
turbines, and polymer additives.
Share Repurchase Snapshot (mil $)
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
$25.0
$23.9
1.2%
BUSINESS SEGMENT BREAKDOWN
2009
Total Revenue: $192 million
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
PP&E (net)
Goodwill
Total Assets
Short-term Debt
Long-term Debt
Total Liabilities
Shareholder Equity
$78
$442
$68
$863
$3
$368
$554
$309
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$257
$5.78
$4.50
54.3%
54.6%
48.7%
Oil & Gas
19%
2013
2013
2009
Total Revenue: $546 million
Oil & Gas
15%
Industrial &
Specialty
36%
Oil & Gas
50%
Industrial &
Specialty
81%
Oil & Gas
64%
2013 Raw Sand
Market Share
Other
31%
VOLUME BREAKDOWN
Industrial &
Specialty
50%
Industrial &
Specialty
85%
Percent Transload Sales
70%
60%
Unimin
17%
50%
Santrol
12%
40%
30%
HCLP
4%
Badger Mining
5%
20%
Oglebay-Norton
5%
SLCA
26%
10%
0%
1Q12
Source: Spears & Associates
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
Source: Company Reports, Howard Weil
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
21
Company Profile:
Dresser-Rand is a global supplier of rotating equipment solutions, designing, manufacturing and servicing a wide range of technologically advanced centrifugal and
reciprocating compressors, steam and gas turbines, expanders, multiphase turbine separators, portable ventilators, and control systems. Manufacturing facilities are located
in the United States, France, Germany, Norway, United Kingdom, Spain, and India. Sales and services are located in all of the major international energy markets.
Dresser-Rand Group - DRC (NYSE)
www.dresser-rand.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
$55.91
76
$4,276
1.4
$51.46 - $67.38
-6.2%
8,100
Management
Vincent Volpe, President/CEO
Jan Kees van Gaalen, CFO
in office since
2004
2013
Investor Relations Contact
Blaise Derrico
713-973-5497
Products & Services: applied technology engineered solutions, axial, centrifugal, pipeline, reciprocating, (process and high speed separable) compressors, business
process automation software and services, control systems, field support services (FSS), gas turbines and gas turbine packages, hot gas expanders (FCC, nitric acid),
multiphase separation equipment, portable ventilators, OEM parts, remanufactured units, contract compression services, repairs – local service centers, rerates/revamps,
single and multistage steam turbines, training, upgrades.
Segments
New Units - manufacture and sale of turbo and reciprocating compression equipment as well as steam turbines and special-purpose gas turbines and gas and diesel
engines to end users in all major segments of the energy industry. The Company's services are used for a wide range of applications in the upstream sector, including oil
and gas production, high-pressure field injection and enhanced recovery. Applications in the midstream and downstream sectors target pipelines, refinery processes, natural
gas processing, and petrochemical production.
Aftermarket Parts and Services - consist of aftermarket support solutions for the existing population of installed equipment. The segment includes engineering,
manufacturing, sales and administrative support. With a typical operating life of 30 years or more, DRC's equipment requires substantial reinvestment creating stable,
recurring aftermarket parts and service opportunities. The Company operates 49 service centers in 32 countries. Margins are typically much higher than new unit sales.
Share Repurchase Authorization (mil $)
BUSINESS SEGMENT BREAKDOWN
2013 REVENUE BREAKDOWN
No Authorization in Place
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$190
PP&E (net)
$472
Goodwill
$928
Total Assets
$3,738
Short-term Debt
$40
Long-term Debt
$1,247
Total Liabilities
$2,436
Minority Interest
$4
Shareholder Equity
$1,297
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
Revenue by End Market
2008
2013
Total Revenue: $2,195 million
Total Revenue: $3,033 million
Aftermarket Parts and
Service
50%
Aftermarket Parts
and Service
45%
Environmental
17%
Other
2%
Revenue by Geography
Refining &
Chemical
33%
Middle East,
Africa
12%
North America
31%
Asia-Pacific
17%
$766
$16.96
$4.84
49.0%
49.8%
45.8%
New Unit Sales
55%
New Unit
Sales
50%
Gas Transmission
19%
Oil & Gas
Production
29%
Europe
26%
Latin America
14%
Year End Backlog
Product Platforms
Across Energy Infrastructure Markets
$3,000
Up
Stream
Mid
Stream
Down
Stream
Petro
Chemical
x
x
x
x
x
x
x
x
x
x
x
$2,500
Chemical
Industrial
Power
Environmental
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Reciprocating Compressors
Process
Separable
Steam Turbines
Engines
Source: DRC
(million)
$2,000
Turbo Products
Centrifugal Compressors
Gas Turbines & Power Turbines
Power Recovery Expanders
$1,500
$1,000
$500
x
x
x
x
x
x
x
x
$0
New Unit Backlog
Aftermarket Backlog
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
22
Company Profile:
Dril-Quip designs, manufactures, sells and services offshore drilling and production equipment including subsea and surface wellheads, subsea and surface
production trees, mudline hanger systems, specialty connectors and associated pipe, drilling and production riser systems, wellhead connectors and diverters.
Dril-Quip also provides installation and reconditioning services and rents running tools for use in connection with the installation and retrieval of its products. The
Company’s manufacturing process is vertically integrated; a majority of its forging requirements and essentially all of its heat treatment, machining, fabrication,
inspection, assembly and testing are produced in-house.
Dril-Quip - DRQ (NYSE)
www.dril-quip.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
$103.98
41
$4,230
0.4
$76.44 - $121.07
-5.4%
2,637
Management
Blake DeBerry, CEO
Jerry Brooks, CFO
in office since
2011
1999
Investor Relations Contact
Jerry Brooks
713-939-5308
Subsea Equipment - products include subsea wellheads, mudline hanger systems, specialty connectors and associated pipe, subsea production trees, valves
and TLP and Spar well systems, liner hangers, multiplex subsea control systems and multi-well subsea manifolds. We believe DRQ is the market leader in
subsea wellheads.
Surface Equipment - products include platform wellheads and platform production trees adapted from its existing subsea wellhead and tree technology.
Offshore Rig Equipment - products include drilling and production riser systems, wellhead connectors and diverters. The drilling riser system consists of (i)
lengths of riser pipe and associated riser connectors that secure one to another; (ii) the telescopic joint, which connects the entire drilling riser system to the
diverter at the rig and provides a means to compensate for vertical motion of the rig relative to the ocean floor; and (iii) the wellhead connector, which provides a
means for remote connection and disconnection of the drilling riser system to and from the blowout preventer stack.
Services provided by Dril-Quip include field installation services, reconditioning of customer-owned products and rental running tools for installation and retrieval
of its products. Dril-Quip has major manufacturing facilities in Houston, Texas; Aberdeen, Scotland; Macao, Brazil; and Singapore able to provide machining,
fabrication, inspection, assembly and testing. The Houston facility provides forged and heat treated products to all the major manufacturing facilities.
Share Repurchase Snapshot (mil $)
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$384
PP&E (net)
$305
Goodwill
$0
Total Assets
$1,395
Short-term Debt
$0
Long-term Debt
$0
Total Liabilities
$153
Shareholder Equity
$1,242
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
BUSINESS SEGMENT BREAKDOWN
100.0
90.0
2.1%
2013
2008
Service
16%
Products
84%
Western
Hemisphere
49%
Eastern
Hemisphere
35%
AsiaPacific
17%
Western Hemisphere
56%
Eastern Hemisphere
27%
Year End Backlog
Products and Services
$1,200
Subsea
Equipment
600
Asia-Pacific
16%
Service
16%
Products
84%
Industry-wide Subsea
Tree Bookings*
2013
2008
Total Revenue: $872 million
Total Revenue: $543 million
$936
$30.53
$30.53
0.0%
0.0%
-44.8%
GEOGRAPHIC REVENUE BREAKDOWN
Surface
Equipment
Offshore Rig
Equipment
$1,000
400
300
200
100
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014E
0
Subsea Wellheads
Mudline Suspension Systems
Specialty Connectors
Tieback Connectors
Subsea Production Trees
Production Risers
Template Systems
Subsea Control Systems
Subsea Manifolds
Liner Hangers
Surface Wellheads
Surface Trees
Services
Wellhead Connectors
Diverters
Drilling Risers
Completion Risers
$800
$600
(million)
# of Trees
500
$400
$200
Reconditioning
Rental Tools
Field Installation
$-
* 2014 Estimate per Quest Offshore
Source: Quest Offshore
Source: Company Reports
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
23
Company Profile:
Exterran Holdings, Inc. is a market leader in the full service natural gas compression business and a premier provider of operations, maintenance, service and
equipment of oil and natural gas production, processing and transportation applications. The Company has four business lines:
Exterran Holdings - EXH (NYSE)
www.exterran.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$39.04
66
$2,576
1.3
$23.25 - $41.90
14.2%
1.5%
10,000
Management
D. Bradley Childers, CEO
William Austin, CFO
Investor Relations Contact
David Oatman
North America Contract Operations - segment provides natural gas compression and production and processing services to meet specific customer
requirements utilizing Exterran-owned assets within the United States and Canada. As of December 31, 2013, the Company had a North American capacity of
3.4 million horsepower.
International Contract Operations - segment provides substantially the same services as the North America Contract Operations segment in locations outside
of the United States and Canada. As of December 31, 2013, the Company had an International capacity of 1.3 million horsepower.
Aftermarket Services - segment provides services to support the surface production and processing needs of customers and normal maintenance services to
full operation of a customer's owned assets. Additionally, the segment sells parts to customers who own their own equipment.
Fabrication - segment involves the design, engineering, installation, fabrication, and sale of (i) natural gas compression units and accessories, (ii) production
and processing equipment to meet standard or unique customer specifications, and (iii) equipment used in the production, treating, and processing of crude oil
and natural gas. The segment also provides engineering, procurement and construction services primarily related to the manufacturing of critical process
equipment for refinery and petrochemical facilities, the construction of tank farms, and the construction of evaporators and brine heaters for desalination plants.
in office since
2011
2011
(281) 836-7035
Share Repurchase Snapshot (mil $)
BUSINESS SEGMENT BREAKDOWN
No Authorization in Place
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$37
PP&E (net)
$2,820
Goodwill
$0
Total Assets
$4,227
Short-term Debt
$0
Long-term Debt
$1,502
Total Liabilities
$2,414
Minority Interest
$151
Shareholder Equity
$1,662
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
GEOGRAPHIC REVENUE BREAKDOWN
2008
2013
Total Revenue: $3,179 million
Total Revenue: $3,160 million
North
America
Contract
Ops
20%
North America
Contract Ops
25%
Fabrication
47%
Fabrication
53%
Aftermarket
Services
12%
$580
$25.19
$25.19
47.5%
47.5%
46.9%
International
Contract Ops
16%
2013
2008
Other
40%
Venezuela
5%
United States
49%
Aftermarket
Services
12%
Other
46%
International
Contract
Ops
15%
EXH Worldwide Units per Horsepower Range
United
States
60%
Year End Backlog
Total Horsepower - 4.7 million (2013); Total Units - 8,757
$1,200
4,000
3,500
$1,000
$800
2,500
(million)
# of Units
3,000
2,000
1,500
1,000
500
$600
$400
$200
0
$-
Source: EXH, HW Research
Horsepower Range
Compressor Fabrication
Production & Processing
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
24
Company Profile:
Forum Energy Technologies is a global oilfield products company, serving the subsea, drilling, completion, production and process sectors of the oil and gas industry.
The Company designs and manufactures products and engages in aftermarket services. The Company operates under two business segments, Drilling and Subsea,
and Production and Infrastructure.
Forum Energy Technologies Inc. - FET (NYSE)
www.f-e-t.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
$28.25
93
$2,625
0.4
$24.32 - $32.52
0.0%
3,500
Management
Christopher Gaut, President and CEO
James Harris, CFO
in office since
2010
2010
Investor Relations Contact
Mark Traylor
281-368-1108
Drilling and Subsea: the segment designs and manufactures products and provides related services to the drilling, well construction, completion, intervention and
subsea construction and services market.
-Subsea Technologies: designs and manufactures subsea capital equipment, specialty components and tooling, and applied products for subsea pipelines. The
Company is a designer and manufacturer of a wide range of ROBs to the offshore subsea construction, observation, and related service markets. The Company also
manufacturers subsea products and components, such as ROV launch and recovery systems.
-Downhole Technologies: designs and manufactures downhole products that serve the well construction and production enhancement markets. Products include, casing
and cementing tools, completion products, and downhole protection systems.
-Drilling Technologies: provides both drilling consumables and capital equipment, including tubular handling equipment, torque equipment, offline crane systems, pumps,
valves, and manifolds. The Company does both tubular handling equipment along with flow control and intervention products.
Production and Infrastructure: the segment designs and manufactures products and provides related equipment and services to the well stimulation, completion,
production, and infrastructure markets.
-Flow Equipment: designs, manufactures, and provides flow equipment to the well stimulation, testing, and flowback markets.
-Production Equipment: designs, manufactures, and provides engineering process systems and related field services from the wellhead to inside the refinery fence.
-Valve Solutions: designs, manufactures, and provides a wide range of industrial valves that serve the upstream, midstream, and downstream markets.
Share Repurchase Snapshot ($mm)
BUSINESS SEGMENT BREAKDOWN
GEOGRAPHIC REVENUE BREAKDOWN
No Authorization in Place
2008
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
PP&E (net)
Goodwill
Total Assets
Short-term Debt
Long-term Debt
Total Liabilities
Minority Interest
Shareholder Equity
$40
$180
$802
$2,169
$1
$512
$838
$1
$1,330
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$589
$14.32
$5.68
27.8%
27.8%
26.2%
Production and
Infrastructure
32%
2008
2013
Total Revenue: $973 million
Other
International
34%
Other
International
33%
Production and
Infrastructure
38%
Drilling and
Subsea
68%
Drilling and
Subsea
62%
United States
56%
Canada
11%
Canada
6%
United States
60%
Revenue by Segment
Total Backlog
Detailed Revenue by Geography
2013
Total Revenue: $1,525 million
$450
$400
Latin America
Middle East
4%
4%
Asia-Pacific
10%
Canada
7%
Europe & Africa
15%
$350
Valve Solutions
14%
$300
U.S.
60%
$250
$200
$150
$100
$50
$0
Flow Equipment
8%
Drilling Technologies
30%
Production Equipment
16%
2010
2011
2012
2013
Downhole Technologies
11%
Subsea Technologies
21%
Source: Company Reports
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
25
Company Profile:
Gulf Island Fabrication, Inc., fabricates offshore drilling and production platforms, hull and/or deck sections of floating production platforms and other specialized
structures used in the development and production of offshore oil and gas reserves.
Gulf Island Fabrication - GIFI (NYSE)
www.gulfisland.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (000s)
52-week range
YTD Return
Div. Yield
Employees
$21.41
14
$310
33.3
$18.06 - $26.82
-7.8%
1.9%
2,200
Management
Kirk Meche, CEO/Pres.
Jeffrey Favret, CFO
in office since
2013
2013
Investor Relations Contact
Deborah Kern-Knoblock
985-872-2100
The Company fabricates various structures, including jackets and deck sections of fixed production platforms; hull, tendon, and/or deck sections of floating
production platforms (such as tension leg platforms (“TLPs”)), SPARs and FPSOs, piles, wellhead protectors, subsea templates and various production,
compressor and utility modules, offshore living quarters, tanks and barges.
Services provided by the Company include offshore interconnect pipe hook-up's, inshore marine construction, manufacture and repair of pressure vessels,
heavy lifts such as ship integration and TLP module integration, loading and offloading jack-up drilling rigs or production hulls, semi-submersible drilling rigs,
TLP’s, SPARs or other similar cargo and steel warehousing and sales.
To capitalize on refinery expansions, the Company is also capable of fabricating large processing modules to be shipped and installed in petro-chemical plants.
In August 2008, GIFI formed a limited liability company, Gulf Island Marine Fabricators, L.L.C. (“Gulf Island Marine”), to further develop marine construction
operations by constructing a Dry Dock to supplement the marine construction operations in Houma. The supplement, is able to lift up to 9,000 tons, suitable to
perform maintenance and repairs to third party marine vessels, and newly-fabricated vessels being launched on site.
Share Repurchase Snapshot
No Authorization in Place
GEOGRAPHIC BREAKDOWN
Year End Backlog
2008
$700
Total Revenue: $421 million
2013
Total Revenue: $608 million
$600
$500
(million)
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$37
PP&E (net)
$224
Goodwill
$0
Total Assets
$426
Short-term Debt
$0
Long-term Debt
$0
Total Liabilities
$151
Shareholder Equity
$276
International
6%
International
20%
$400
$300
$200
$100
United States
80%
2012
United
States
94%
2013
2010
2011
2008
2009
2006
2007
$2004
$90
$19.01
$19.01
0.0%
0.0%
-15.3%
2005
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
26
Company Profile:
McDermott International is a leading engineering, procurement, construction and installation ("EPCI") company focused on designing and executing complex offshore oil and
gas projects. The Company has capabilities in both shallow water and deepwater construction, and supports its activities with comprehensive project management and
procurement services. MDR delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning in more than 20 countries
across three business segments.
McDermott International - MDR (NYSE)
www.mcdermott.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (000s)
52-week range
YTD Return
Employees
Atlantic Segment- segment serves the needs of major integrated and other oil and gas companies in the United States, Brazil, Mexico, Trinidad and West Africa. The primary
fabrication facilities for this segment are located in Morgan City, LA and Altamira, Mexico with approximately 2,200 employees.
$8.14
237
$1,930
6077.2
$6.68 - $11.24
-11.1%
14,000
Management
David Dickson, CEO
Perry Elders, CFO
in office since
2013
2010
Investor Relations Contact
Steve Oldham
281-870-5147
Asia Pacific Segment- segment serves the needs of major integrated and other oil and gas companies in Australia, Indonesia, Vietnam, Malaysia and Thailand. The primary
fabrication facility is located in Indonesia with approximately 5,100 employees.
Middle East Segment - segment serves the needs of major integrated and other oil and gas companies Saudi Arabia, Qatar, the U.A.E., Kuwait, India, Azerbaijan, Russia and
Turkmenistan. The primacy fabrication facility for this region is located in Dubai, U.A.E. with approximately 6,700 employees.
In June 2013 the Company commenced a restructuring of its Atlantic operations. The restructuring involves the reductions of management, administrative, fabrication, and
engineering personnel, and a plan to discontinue utilization of the Morgan City facility. Morgan City will be discontinued once existing backlog is completed, which is expected
in the third quarter of 2014.
Share Repurchase Snapshot ($mm)
BUSINESS SEGMENT BREAKDOWN
GEOGRAPHIC REVENUE BREAKDOWN
No Authorization in Place
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$142
PP&E (net)
$1,479
Goodwill
$0
Total Assets
$2,807
Short-term Debt
$40
Long-term Debt
$49
Total Liabilities
$1,367
Minority Interest
$91
Shareholder Equity
$1,350
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
2013
Total Revenue: $2,659 million
Procurement
40%
Offshore
Operations
33%
Installation
Operations
43%
Procurement
30%
Fabrication
Operations
15%
Project
Services and
Engineering
12%
($41)
$5.69
$5.69
3.5%
6.2%
-4.2%
2009
2009
Total Revenue: $3,282 million
Project
Services and
Engineering
13%
Middle East
63%
Fabrication
Operations
14%
4
Atlantic
20%
Year End Backlog
$5,000
$4,000
6
5
Atlantic
7%
Asia
Pacific
36%
$6,000
7
7
Middle
East
44%
Asia Pacific
30%
Vessels by Region
8
2013
$3,000
4
$2,000
$1,000
3
3
$-
2
2
2007
2008
2009
1
0
Atlantic
Middle East
Asia Pacific
Under Construction
Asia Pacific
Atlantic
2010
2011
Middle East
2012
2013
Offshore Oil and Gas
Source: Company Reports, HW Research
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
27
Company Profile:
Oceaneering International, Inc. service offerings include remotely operated vehicles (ROVs), built-to-order specialty hardware, engineering and project
management, subsea intervention systems, non-destructive testing and inspection, and manned diving. Business segments are contained within two businesses
– services and products provided to the oil and gas industry (“Oil and Gas”) and all other services and products (“Advanced Technologies”).
Oceaneering Int'l - OII (NYSE)
www.oceaneering.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$70.83
108
$7,664
1.2
$58.08 - $87.64
-10.2%
1.2%
12,200
Management
Kevin McEvoy, CEO
Cardon Gerner, CFO
Investor Relations Contact
Jack Jurkoshek
officer since
2011
2010
Oil and Gas
-- ROVs - work-class ROVs perform a variety of underwater tasks, including drill support, installation and construction support, pipeline inspection and surveys and
subsea production facility operation and maintenance. ROVs may be outfitted with manipulators, sonar, video cameras, specialized tooling packages and other
equipment or features to facilitate the performance of specific underwater tasks. At December 31, 2013, the Company owned 304 work-class ROVs.
-- Subsea Products - products include: hydraulic, electro-hydraulic and chemical injection umbilicals utilizing thermoplastic hoses and steel tubes; ROV tooling
and work packages; subsea and topside control valves; subsea chemical injection valves; production control equipment; piping clamp connectors; and pipeline
repair systems.
-- Subsea Projects - supply commercial diving services, subsea intervention and hardware installation for subsea well tie-backs; pipeline/flowline tie-ins and
repairs; pipeline crossings; umbilical and other subsea equipment installations; and supporting operations of vessels utilized principally in inspection, repair and
maintenance activities.
-- Asset Integrity - offer a wide range of inspection services to satisfy contractual structural specifications, internal safety standards or regulatory requirements of
both onshore and offshore facilities, primarily to customers in the oil and gas, petrochemical, and power generation industries.
Advanced Technologies - provides underwater intervention, engineering services and related manufacturing to meet a variety of industrial requirements,
including search and recovery, maintenance and repair, civil works projects, commercial theme park equipment and engineering services and products for the
space industry. The segments customers have specialized requirements in underwater or other hazardous environments outside the oil and gas industry including
the US Navy and NASA.
713-329-4670
Share Repurchase Snapshot (mil shares)
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
12.0
8.9
8.2%
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$91
PP&E (net)
$1,189
Goodwill
$344
Total Assets
$3,129
Short-term Debt
$0
Long-term Debt
$0
Total Liabilities
$1,085
Shareholder Equity
$2,043
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
BUSINESS SEGMENT BREAKDOWN
GEOGRAPHIC REVENUE BREAKDOWN
2008
2013
Total Revenue: $1,977 million
Total Revenue: $3,287 million
Advanced Technology
8%
Asset Integrity
Remotely Operated
12%
Vehicles
32%
Mobile Offshore
Asset
Production Systems
Integrity
2%
15%
$706
$18.89
$15.71
0.0%
0.0%
-4.7%
Subsea Projects
13%
Subsea Products
33%
Subsea
Projects
15%
Advanced
Technology
9%
2008
Remotely
Operated
Vehicles
30%
Asia & Australia
5%
Brazil
2013
Asia & Brazil
Australia 6%
10%
Other
4%
6%
United
States
34%
United States
46%
Europe/Africa
39%
Subsea
Products
31%
Other
3%
Europe/
Africa
47%
Year End Subsea Products Backlog
Oilfield Work Class ROV Fleet*
~877 total vehicles
$1,000
$900
Canyon
4%
Technip
4%
Other
14%
$800
OII
35%
C-Innovations
5%
$700
$600
$500
$400
$300
Saipem
5%
$200
$100
$0
DOF
6%
*Source: OII, HW Estimate
Fugro
7%
Subsea 7
20%
2007
2008
2009
2010
2011
2012
2013
*Source: Company Reports
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
28
Company Profile:
Oil States International, Inc. provides a broad range of products and services to the oil and natural gas industry through its Accommodation, Well Site Services,
Offshore Products, and Tubular Services segments. Products and services include: drilling rigs, rental equipment, well site accommodations, offshore
development and drilling products, flexible bearings and connector products, subsea pipeline products, marine winches, mooring and lifting systems, rig
equipment, BOP stack assembly, testing and repair services, and tubular product distribution.
Oil States International, Inc. - OIS (NYSE)
www.oilstatesintl.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
$96.92
53
$5,170
0.7
$71.36 - $113.64
-4.7%
9,167
Management
Cindy Taylor, CEO
Lloyd Hajdik, CFO
in office since
2007
2013
Investor Relations Contact
Patricia Gil
713-470-4860
Accommodations - OIS is the largest integrated services provider of accommodations for remote locations and has installed over 11,000 rooms, since mid2006, in four major lodge properties supporting oil sands developments. The Company acquired The MAC in 2010 and is Australia's largest integrated
accommodations provider that primarily serves coal bed methane mining operations. On July 30, 2013 the Company announced a plan to spin-off the
Accommodations business into a standalone publicly traded corporation. This is expected to be completed during the second quarter of 2014.
Well Site Services - the Company's Well Site Services segment is broken down into drilling services and completion services. The Company provides land
drilling services for shallow to medium depth wells and has 34 drilling rigs as of December 31, 2013. The Company's completion services provides services such
as wireline and coiled tubing, wellhead isolation, pipe recovery, blow out preventers, and well testing equipment.
Offshore Products - OIS designs, manufactures, fabricates, inspects, assembles, repairs, tests, and markets subsea equipment and offshore vessel and rig
equipment. The Company's products are used for the drilling and production of oil and natural gas wells on offshore fixed platforms and mobile production units,
and on other marine vessels, floating rigs, and jack-up rigs. The Company derives the bulk of its offshore products revenues from the USGOM.
On September 6, 2013 the Company announced an agreement to sell off its Tubular Services business for $600 million.
Share Repurchase Snapshot ($mm)
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
BUSINESS SEGMENT BREAKDOWN
500.0
368.8
7.1%
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
2013
Total Revenue: $2,670 million
Well Site
Services
18%
Tubular Services
50%
2008
2013*
2008*
Total Revenue: $2,948 million
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$599
PP&E (net)
$1,903
Goodwill
$514
Total Assets
$4,131
Short-term Debt
$1
Long-term Debt
$973
Total Liabilities
$1,506
Minority Interest
$2
Shareholder Equity
$2,623
GEOGRAPHIC REVENUE BREAKDOWN
Well Site
Services
28%
UK
4%
Other
2%
Canada
14%
Australia
10%
UK
6%
Other
7%
Offshore
Products
33%
Accommodations
14%
Offshore
Products
18%
$1,152
$49.18
$39.55
27.0%
27.1%
12.5%
US
80%
Accommodations
39%
US
50%
Canada
27%
*Well Site Services includes: Completion and Drilling Services
Offshore Products
Offshore Products Backlog
$700
$600
Floating Production
Subsea Pipelines
Steel catenary riser connectors and receptacles
TLP tendon connectors
Riser tensioning equipment
Cranes
Collet connectors and jumpers
Pipeline end manifolds and pipeline tie-in sleds
Pipeline repair equipment and services
Average Available Rooms
25,000
20,000
$500
15,000
$400
10,000
$300
5,000
Offshore Drilling Rigs and Vessels
Mooring and winch systems
Drilling riser FlexJoints
BOP integration and handling equipment
Coiled tubing lift frames
Riser repair services
$200
0
$100
$2005 2006 2007 2008 2009 2010 2011 2012 2013
Canada
Australia
*Source: OIS, HW estimate
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
29
Overview and Market Summary
Of Worldwide Mobile Offshore Drilling Units
(MODU)
Composition of Estimated Worldwide MODU Market
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
14
43
6
5
41
109
W. Africa/
Med.
40
4
14
14
34
106
North Sea
40
5
35
4
8
92
Middle
East
117
30
0
0
1
148
SE Asia/
India
107
28
32
13
19
199
C/S
America
7
11
15
19
38
90
Mexico
53
2
2
0
4
61
Other
8
5
7
1
1
22
TOTAL
386
128
111
56
146
827
GOM
3.6%
33.6%
5.4%
8.9%
28.1%
13.2%
W. Africa/
Med.
10.4%
3.1%
12.6%
25.0%
23.3%
12.8%
North Sea
10.4%
3.9%
31.5%
7.1%
5.5%
11.1%
Middle
East
30.3%
23.4%
0.0%
0.0%
0.7%
17.9%
SE Asia/
India
27.7%
21.9%
28.8%
23.2%
13.0%
24.1%
C/S
America
1.8%
8.6%
13.5%
33.9%
26.0%
10.9%
Mexico
13.7%
1.6%
1.8%
0.0%
2.7%
7.4%
Other
2.1%
3.9%
6.3%
1.8%
0.7%
2.7%
TOTAL
100%
100%
100%
100%
100%
100%
% of Total Market by Asset Class
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
% TOTAL by Region
UltraJackups Midwater Deepwater deepwater Total
Transocean
11
25
14
29
79
ENSCO plc
42
5
8
13
68
Noble Corporation
45
5
9
12
71
Diamond Offshore
6
18
6
9
39
Seadrill Limited
20
0
0
18
38
Hercules Offshore
38
0
0
0
38
Rowan Companies
30
0
0
1
31
Atwood Oceanics
5
0
3
3
11
Pacific Drilling
0
0
0
5
5
Source: Company Fleet Reports, IHS as of 3/11/14; does not include rigs under construction
New Build Jackups by Company
2014
2015
2016
2017+
0
0
0
0
ATW
0
0
0
0
DO
1
1
1
0
ESV
0
0
0
0
HERO
1
0
0
0
NADL
3
0
1
0
NE
0
0
0
0
PACD
0
0
0
0
RDC
0
0
3
2
RIG
1
5
3
0
SDRL
Source: Company Fleet Reports, IHS as of 3/11/14
Total
0
0
3
0
1
4
0
0
5
9
New Build Floaters by Company
2014
2015
2016
2017+
1
2
0
0
ATW
2
1
1
0
DO
2
1
0
0
ESV
0
0
0
0
HERO
0
1
0
0
NADL
2
0
0
0
NE
2
1
0
0
PACD
2
1
0
0
RDC
2
2
3
2
RIG
6
5
0
0
SDRL
Source: Company Fleet Reports, IHS as of 3/11/14
Total
3
4
3
0
1
2
3
3
9
11
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
30
Offshore Rig Definitions and Descriptions
Drillships
Typically used in deepwater applications, drillships are generally self-propelled, shaped like conventional ships and are the most mobile of the
major rig types. Drillships can be dynamically positioned (DP), which allows them to maintain position without anchors through the use of their
onboard propulsion and station-keeping systems, or are operated in a moored configuration. Drillships typically have greater load capacity
than semisubmersible rigs. This enables them to carry more supplies on board, which often makes them better suited for drilling in remote
locations where resupply is more difficult. However, drillships are typically limited to calmer water conditions than those in which
semisubmersibles can operate.
Semisubmersibles
Semisubmersibles are floating vessels that can be submerged by means of a water ballast system such that the lower hulls are below the
water surface during drilling operations. These rigs maintain their position over the well through the use of an anchoring system or computer
controlled dynamic positioning thruster system. Some semisubmersible rigs are self-propelled and move between locations under their own
power when afloat on the pontoons, although most are relocated with the assistance of tugs. Typically, semisubmersibles are better
suited for operations in rougher water conditions than drillships. Semisubmersibles are used in varying water depth ranging from 500' to
8,000'+ and are subcategorized according to age, variable deck load and water depth capability.
Midwater: Generally older units, often referred to as conventional or midwater semis, that typically operate in water depths of < 4,500’
Deepwater: Units that can operate in water depth of >4,500' and extend to 7,500’. This group included many units which were
constructed and/or upgraded in the deepwater newbuild cycle of the mid 1990's to early 2000's. Units within this group are becoming
increasingly bifurcated into a "non-newbuild" and "ultra- deepwater newbuild" subset.
Ultra-deepwater: Units that can operate in water depths >7,500’ and up to 12,000’. This group includes units which were
constructed and/or upgraded in the newbuild cycle of the mid-to-late 2000’s and make up the vast majority of the current newbuilds.
Platform Rig
Consists of drilling equipment arranged in modular packages which are transported to and installed on fixed offshore platforms that provide the
foundation upon which the rig is placed. Platform rigs are often used to provide drilling, horizontal reentry, and workover services.
Tender Assist Rig
Generally non-self-propelled barges moored alongside a platform and contain crew quarters, mud pits, mud pumps, and power generation
systems. The only equipment transferred to the platform for drilling or workover operations is the derrick equipment set consisting of the
substructure, drillfloor, derrick and drawworks.
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
31
Offshore Rig Definitions and Descriptions
(cont.)
Jackups
Jackup rigs are mobile self-elevating drilling platforms equipped with legs that can be lowered to the ocean floor until a foundation is
established to support the drilling platform. Once a foundation is established, the drilling platform is then jacked further up the legs so that the
platform is above the highest expected waves. Generally, jackup rigs are subject to a maximum water depth of approximately 350 to 400 feet
according to leg length, while some jackup rigs have hulls that allow them to drill in water depths as shallow as ten feet. The principle
difference between jackup rigs lies in the areas of leg length, seabed/leg interaction (mat versus independent leg), and drilling mode
capabilities (cantilever versus slot). Mat supported units are equipped with legs that have a lower hull or mat attached to the bottom. While this
provides a more stable foundation in soft bottom areas, it limits the jackups use in instances where the seabed floor slopes. Independently
legged rigs are better suited for harsher or uneven seabed conditions. In terms of drilling capabilities, cantilever jackups enable the drilling
platform to be extended out from the hull, allowing it to perform drilling or workover operations over a pre-existing platform or structure. Slot
type jackup rigs are configured for drilling operations to take place through a slot in the hull. Slot type rigs are usually used for exploratory
drilling because their configuration makes them difficult to position over existing platforms or structures. Typically, utilization and in turn day
rates on higher specification units (longer legged, cantilevered, etc.) move in advance of those of lesser capability.
Heavy Duty Harsh Environment (HDHE): Designed to operate year-round in the harsh environments of the North Sea and offshore
Eastern Canada, typically in water depths > 300'.
Premium Jackups: Typically defined as independent legged, cantilever units operating in 250' of water or greater. Growing
subcategory "ultra" premium jackups are generally newer units, and in many cases newbuilds, capable of drilling in 350'-400' of water.
Commodity Jackups: Units whose water depth capability is less than 250'. These units are generally older and often mat and/or slot
units (rather than independent legged and/or cantilevered).
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
32
Market Share Leaders
by Geography and Asset Class
Premium Jackups
ESV
HERO
8%
3%
DO
7%
RDC
29%
Mexico - 53
Middle East - 117
GOM - 14
DO ESV
7% 8%
NE
12%
RDC
8%
Other
64%
ESV
57%
HERO
7%
SDRL
5%
West Africa/Med - 40
HERO
ATW
5%
5%
ATW
3%
NE
10%
SDRL
3%
RIG
7%
North Sea - 40
ESV
10%
HERO
2%
NE
3%
RDC
RIG
4%
4%
SDRL
8%
Other
66%
DO
14%
Other
29%
NE
14%
NE
23%
NADL
5%
RIG
10%
RDC
15%
SDRL
6%
C/S America - 7
ESV
15%
Other
32%
Other
58%
SE Asia - 107
RDC
2%
Other
68%
NE
21%
SDRL
14%
RDC
29%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
33
Market Share Leaders
by Geography and Asset Class
Middle East - 30
GOM - 43
Commodity Jackups
HERO
3%
Other
30%
RDC
7%
HERO
63%
West Africa/Med - 4
NE
7%
Other
100%
Other
90%
SE Asia - 28
HERO
7%
NE
25%
Other
75%
Mexico - 2
Other
93%
North Sea - 5
C/S America - 11
Other
20%
ESV
80%
Other
100%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
34
Market Share Leaders
by Geography and Asset Class
Midwater Floaters
SE Asia - 32
GOM - 6
Other
17%
DO
13%
DO
50%
RIG
17%
Other
59%
NE
16%
ESV
6% NE
6%
RIG
16%
C/S America - 15
West Africa/Med - 14
ESV
14%
DO
33%
Other
46%
Other
50%
RIG
7%
RIG
36%
North Sea - 35
DO
11%
Other
46%
NADL
3%
ESV
NE
7%
7%
Mexico - 2
NE
3%
RIG
37%
DO
100%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
35
Market Share Leaders
by Geography and Asset Class
Deepwater Floaters
GOM - 5
SE Asia - 13
ATW
15%
DO
40%
Other
31%
DO
8%
NE
60%
ESV
8%
RIG
38%
West Africa/Med - 14
Other
22%
RIG
29%
ATW
7%
DO
7%
C/S America - 19
Other
32%
DO
10%
ESV
21%
ESV
21%
NE
14%
RIG
16%
NE
21%
North Sea - 4
RIG
25%
Other
50%
NADL
25%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
36
Market Share Leaders
by Geography and Asset Class
Ultra-deepwater Floaters
Middle East - 1
GOM - 41
SDRL
12%
Other
10%
ATW
5%
DO
2%
SDRL
25%
ESV
22%
NE
PACD
15%
2%
RIG
32%
Other
38%
SDRL
18%
Other
38%
SE Asia - 19
ATW
5%
NE
3%
PACD
9%
RDC
3%
NE
11%
RIG
32%
C/S America - 38
DO
10%
RIG
25%
NADL
37%
DO
10%
ESV
5%
Other
37%
RIG
17%
North Sea - 8
Other
75%
RIG
100%
West Africa/Med - 34
DO ESV
6% 6%
Mexico - 4
Other
60%
ESV
3%
NE
8%
PACD
3%
RIG
3%
SDRL
13%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
37
Company Profile:
Atwood Oceanics is one of the smaller offshore contract drilling companies in the Howard Weil coverage universe, having 11 active offshore rigs in its
fleet with three rigs under construction. With regards to its rigs under construction, the Company has three ultra-deepwater drillships, which are
scheduled to be delivered between 2014 and 2015.
Atwood Oceanics - ATW (NYSE)
www.atwd.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
$47.04
64
$3,020
0.8
$43.91 - $59.49
-11.9%
1,830
Management
Rob Saltiel, CEO/Pres.
Mark Mey, CFO
Investor Relations Contact
Mark Mey
Share Repurchase Snapshot
Geographic Revenue:
Fleet Mix:
Total Offshore Rigs = 11
2008 = $527 mil
U.S.
3%
U.S.
17%
SE Asia/India
35%
Australia
42%
SE Asia
16%
Africa
18%
Jackups
46%
Deepwater
Floaters
27%
Med.
6%
Med.
27%
in office since
2010
2010
Africa
19%
Notes:
-The Company has three ultra-deepwater floaters under construction
281-749-7902
No Authorization in Place
Composition of ATW MODU
BALANCE SHEET (mil.)
12/31/13
Cash + Equivalents
$132
PP&E (net)
$3,583
Goodwill
$0
Total Assets
$4,079
Short-term Debt
$2
Long-term Debt
$1,603
Total Liabilities
$1,784
Shareholder Equity
$2,295
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
0
0
0
0
2
2
$307
$35.74
$35.74
41.1%
41.2%
39.1%
W. Africa/
Middle
Med. North Sea
East
2
0
0
0
0
0
0
0
0
1
0
0
0
0
0
3
0
0
SE Asia/
India
3
0
0
2
1
6
C/S
America
0
0
0
0
0
0
Mexico
0
0
0
0
0
0
Other
0
0
0
0
0
0
TOTAL
5
0
0
3
3
11
W. Africa/
Middle
Med. North Sea
East
5%
SE Asia/
India
3%
C/S
America
Mexico
Other
0%
0%
0%
TOTAL
1%
0%
0%
5%
2%
1%
% of Total MODU
GOM
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
Australia
17%
Ultra-deepwater
27%
2013 = $1,064 mil
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
7%
5%
2%
3%
0%
0%
15%
5%
3%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
38
Company Profile:
Diamond Offshore is one of the larger offshore drillers in the Howard Weil coverage universe. It's fleet consists of 33 semisubmersibles (one under
construction), seven jackups, and five drillship (three under construction). While having a global reach, the Company's major areas of operations include
South America and Europe/Africa. The Company has four ultra-deepwater floaters under construction two of which will be delivered in 2014, one in
2015, and one in 2016. The Company has one moored semisubmersibles, the Ocean Apex, which is under construction and expected to be delivered
third quarter of 2014. As of December 31, 2013 the Company has one jackup held for sale.
Diamond Offshore - DO (NYSE)
www.diamondoffshore.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
Management
Marc Edwards, CEO
Gary Krenek, CFO
Investor Relations Contact
Darren Daugherty
$45.20
139
$6,284
2.5
$43.69 - $70.38
-20.6%
7.7%
5,500
in office since
2014
2006
Fleet Mix:
Total Offshore Rigs = 39*
Premium
Jackups
15%
Geographic Revenue:
2008 = $3.54 bil
Ultra-deepwater
Floaters
23%
Mexico
9%
SE Asia / ME
16%
Deepwater
Floaters
16%
Midwater
Floaters
46%
S. America
16%
2013 = $2.92 bil
U.S.
41%
Mexico
7%
Australia/Asia
15%
U.S.
11%
Europe /
Africa
25%
S. America
42%
Europe /
Africa
18%
*exc ludes one jac kup held for sale
Notes:
- The Company has three drillships and one harsh-environment semisubmersible under construction.
- The current annualized dividend is $3.50/share, $0.125/share regular quarterly dividend
plus $0.75/share special quarterly dividend.
281-492-5370
Share Repurchase Snapshot
No Authorization in Place
Composition of DO MODU
BALANCE SHEET (mil.)
12/31/13
Cash + Marketable Securities
$2,097
PP&E (net)
$5,467
Goodwill
$0
Total Assets
$8,391
Short-term Debt
$250
Long-term Debt
$2,244
Total Liabilities
$3,754
Shareholder Equity
$4,637
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$1,973
$33.35
$33.35
32.6%
35.0%
7.9%
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
1
0
3
2
1
7
W. Africa/
Middle
Med. North Sea
East
0
0
0
0
0
0
0
4
0
1
0
0
2
0
0
3
4
0
SE Asia/
India
0
0
4
1
2
C/S
America
1
0
5
2
4
Mexico
4
0
2
0
0
Other
0
0
0
0
0
TOTAL
7
12
6
0
39
SE Asia/
India
C/S
America
14%
Mexico
8%
Other
13%
8%
11%
4%
33%
11%
11%
13%
TOTAL
2%
0%
16%
11%
6%
5%
6
0
18
6
9
% of Total MODU
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
7%
50%
40%
2%
6%
W. Africa/
Middle
Med. North Sea
East
11%
7%
6%
3%
4%
0%
100%
10%
0%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
39
Company Profile:
Ensco plc is the one of the largest offshore drillers in the world in terms of fleet size and maintains one of the youngest fleets in the industry. ESV
operates in every major offshore market around the world. The Company currently has six rigs under construction of which two are already
contracted.
Ensco plc - ESV (NYSE)
www.enscous.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$49.62
234
$11,590
2.7
$47.85 - $64.14
-13.2%
6.0%
9,000
Management
Daniel Rabun, President/CEO
Jay Swent, CFO
J. Mark Burns, COO
Investor Relations Contact
Sean O'Neill
Fleet Mix:
Total Offshore Rigs = 68
Commodity Jackups
Midwater
6%
Floaters
7%
Premium
Jackups
56%
in office since
2006
2003
2012
Geographic Revenue:
2008 = $2.5 bil
Ultra-deepwater
Floaters
19%
2013 = $4.9 bil
United States
20%
Other
50%
Deepwater
Floaters
12%
United States
35%
Other
36%
U.K.
20%
Qatar
10%
Brazil
19%
Angola
10%
Notes:
- The Company has three ultra-deepwater drillship under construction (DS-8 and DS-9 both due in 2014 and the DS-10 due in 2015).
- The Company has three high specification jackups under construction with one being delivered in 2014, 2015, and 2016.
(713) 430-4607
Share Repurchase Snapshot (mil $)
$2,000
Current Authorization
Remaining as of 12/31/13
$2,000
Potential Buyback of Shares O/S
17.3%
BALANCE SHEET (mil.)
12/31/13
Cash + Equivalents
$166
PP&E (net)
$14,311
Goodwill
$3,274
Total Assets
$19,473
Short-term Debt
$48
Long-term Debt
$4,719
Total Liabilities
$6,674
Minority Interest
$7
Shareholder Equity
$12,792
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$488
$54.77
$40.75
26.9%
27.1%
26.5%
Composition of ESV MODU
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
8
0
0
0
9
17
% of Total MODU
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
57%
22%
16%
W. Africa/
Middle
Med. North Sea
East
0
6
9
0
4
0
2
0
0
3
0
0
2
0
0
7
10
9
W. Africa/
Middle
Med. North Sea
East
15%
8%
80%
14%
21%
6%
7%
11%
6%
SE Asia/
India
11
0
2
1
1
C/S
America
0
0
1
4
1
Mexico
4
0
0
0
0
Other
0
0
0
0
0
TOTAL
15
6
4
0
68
SE Asia/
India
10%
C/S
America
Mexico
8%
Other
6%
8%
5%
8%
7%
21%
3%
7%
7%
0%
TOTAL
10%
3%
5%
14%
9%
8%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
38
4
5
8
13
40
Company Profile:
Hercules Offshore was formed in July 2004 to provide offshore drilling and liftboat services, primarily in the GOM. HERO's offshore drilling fleet
consists primarily of commodity class jackups and an international liftboat fleet. Two of the Company's international jackups are newbuilds.
Liftboats are self-propelled, self-elevating work platforms complete with legs, cranes and living quarters and perform a broad range of
maintenance and construction operations.
Hercules Offshore - HERO (NASD)
www.herculesoffshore.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
$4.70
160
$751
4.2
$4.38 - $7.96
-28.0%
2,200
Management
John T. Rynd, CEO/Pres.
Stephen Butz, CFO
in office since
2008
2010
Investor Relations Contact
Son Vann
713-350-8508
Fleet Mix:
Total Offshore Rigs = 38
Segment Revenue:
2008 = $1,112 mil
2013 = $858 mil
Premium
Jackups
21%
Malaysia
2%
Mexico
8%
India
8%
Commodity
Jackups
79%
Other
12%
Other
12%
Saudi Arabia
13%
Nigeria
7%
U.S.
63%
U.S.
61%
Nigeria
14%
Notes:
Currently cold stacked assets 2/19/14:
2 - International Jackups
10 - GoM Jackups
Share Repurchase Snapshot
No Authorization in Place
BALANCE SHEET
12/31/13
Cash + Restricted Cash
PP&E (net)
Goodwill
Total Assets
Short-term Debt
Long-term Debt
Total Liabilities
Shareholder Equity
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
Composition of HERO MODU
(mil.)
$198
$1,809
$0
$2,301
$0
$1,211
$1,478
$824
$227
$5.15
$5.15
59.5%
59.5%
55.1%
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
1
27
0
0
0
28
W. Africa/
Middle
Med. North Sea
East
2
0
3
0
0
1
0
0
0
0
0
0
0
0
0
2
0
4
SE Asia/
India
2
2
0
0
0
C/S
America
0
0
0
0
0
Mexico
0
0
0
0
0
Other
0
0
0
0
0
TOTAL
4
0
0
0
38
SE Asia/
India
2%
7%
C/S
America
Mexico
Other
2%
0%
0%
0%
TOTAL
2%
23%
0%
0%
0%
5%
8
30
0
0
0
% of Total MODU
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
7%
63%
26%
W. Africa/
Middle
Med. North Sea
East
5%
3%
3%
2%
0%
3%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
41
Company Profile:
North Atlantic Drilling is an offshore driller focused solely on drilling in harsh environments. The Company currently operates exclusively in offshore
Norway and the United Kingdom. The Company has a fleet of seven harsh environment rigs consisting of four semi-submersibles, one drillship and two
jackup rigs. The Company also has one ultra-deepwater semisubmersible under construction due for delivery in 2Q15 and one jackup set for delivery in
May 2014. SDRL owns 70% of the shares outstanding of NADL.
North Atlantic Drilling Ltd. - NADL (NYSE)
www.nadlcorp.com
Share Price (3/19/14)
$8.38
Shares Out (mil.)
244
Market Cap (mil.)
$2,041
Avg Daily Volume (mil.)
0.5
52-week range
$8.01 - $9.25
YTD Return
-1.4%
Div. Yield
11.0%
Employees
1,632
Management
Alf Ragnar Lovdal, CEO
Ragnvald Kavli, CFO
in office since
2013
2014
Investor Relations Contact
Tore Byberg
+47 51 30 95 42
Fleet Mix:
Total Offshore Rigs = 7
Revenue By Geography:
2013 = $1.3 bil
Ireland
2%
Ultra-deepwater
Floaters
43%
Jackups
29%
UK
13%
Norway
85%
Midwater
28%
Note:
- The Company has an additional one semisubmersible and one jackup currently under construction
Share Repurchase Snapshot
No Authorization in Place
Composition of SDRL MODU
BALANCE SHEET (mil.)
12/31/13
Cash + Equivalents
$109
PP&E (net)
$2,691
Goodwill
$481
Total Assets
$3,699
Short-term Debt
$167
Long-term Debt
$2,281
Total Liabilities
$2,844
Minority Interest
($2)
Shareholder Equity
$858
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
0
0
0
0
0
0
% of Total MODU
GOM
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
($48)
$3.52
$1.55
72.7%
74.1%
73.2%
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
0%
W. Africa/
Middle
Med. North Sea
East
0
2
0
0
0
0
0
1
0
0
1
0
0
3
0
0
7
0
W. Africa/
Middle
Med. North Sea
East
5%
0%
3%
25%
38%
8%
0%
SE Asia/
India
0
0
0
0
0
C/S
America
0
0
0
0
0
Mexico
0
0
0
0
0
Other
0
0
0
0
0
TOTAL
0
0
0
0
7
SE Asia/
India
C/S
America
Mexico
Other
0%
0%
0%
0%
TOTAL
1%
0%
1%
2%
2%
1%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
2
0
1
1
3
42
Company Profile:
Noble Corp. is the third largest provider of mobile offshore drilling units worldwide. NE operates 45 jackups and 26 floating rigs. NE is in the
process of adding several additional rigs to its fleet with two newbuild drillships (two in 2014) and four premium jackups (three delivered in 2014
and on in 2016).
The Company announced in September 2013 that it was spinning off 5 drillships, 3 semisubmersibles, and 34 jackups into a new company. The
new Company is called Paragon Offshore, and the spin should be completed by the end of 2014.
Noble Corporation - NE (NYSE)
www.noblecorp.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
Management
David Williams, Pres./CEO
James A. MacLennan, CFO
$29.94
254
$7,609
3.4
$28.67 - $42.34
-20.1%
5.0%
5,600
Commodity
Jackups
4%
2008 = $3.5 bil
Ultra-deepwater
Floaters
17%
Midwater Floaters
7%
2013 = $4.2 bil
Other
27%
U.S.
20%
U.S.
31%
Mexico
9%
North Sea
19%
North Sea
13%
S. America
20%
W. Africa
12%
Notes:
-Shipyard projects include two ultra-deepwater drillships, and four premium jackups.
Composition of NE MODU
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
0
0
1
3
6
10
W. Africa/
Middle
Med. North Sea
East
4
9
14
1
0
2
0
1
0
2
0
0
1
0
0
8
10
16
SE Asia/
India
3
0
2
0
2
C/S
America
1
0
1
4
3
Mexico
11
0
0
0
0
Other
0
0
0
0
0
TOTAL
7
9
11
0
71
SE Asia/
India
3%
C/S
America
14%
Mexico
21%
Other
6%
7%
21%
8%
10%
18%
0%
TOTAL
11%
2%
5%
16%
8%
9%
42
3
5
9
12
% of Total MODU
GOM
$339
$32.75
$32.75
40.0%
40.0%
39.5%
Other
3%
Middle
East/India
18%
S. America
8%
Premium Jackups
59%
Investor Relations Contact
Jeff Chastain
281-276-6383
Share Repurchase Snapshot (mil shares)
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
Mexico
20%
Deepwater
Floaters
13%
in office since
2008
2012
6.8
Current Authorization
Remaining as of 12/31/13
6.8
Potential Buyback of Shares O/S
2.7%
BALANCE SHEET (mil.)
12/31/13
Cash + Marketable Securities
$114
PP&E (net)
$14,558
Goodwill
$0
Total Assets
$16,218
Short-term Debt
$0
Long-term Debt
$5,556
Total Liabilities
$7,168
Minority Interest
$727
Shareholder Equity
$8,323
Geographic Revenue:
Fleet Mix:
Total Offshore Rigs = 71*
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
17%
60%
15%
9%
W. Africa/
Middle
Med. North Sea
East
10%
23%
12%
25%
7%
3%
14%
3%
8%
11%
11%
11%
4%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
43
Company Profile:
Pacific Drilling is one of the smallest publicly traded offshore contract drilling company in the Howard Weil coverage universe, completely
leveraged to the ultra-deepwater market with five active ultra-deepwater drilling rigs. The Company currently has three more ultra-deepwater
drillships under construction with two expected to be delivered 2014 and one in 2015.
Pacific Drilling - PACD (NYSE)
Fleet Mix:
Total Offshore Rigs = 5
www.pacificdrilling.com
Share Price (3/19/14)
$10.38
Shares Out (mil.)
210
Market Cap (mil.)
$2,180
Avg Daily Volume (mil.)
0.6
52-week range
$8.89 - $12.25
YTD Return
-9.4%
Employees
1,301
Management
Christian Beckett, CEO
Paul Reese, CFO
in office since
2008
2014
Investor Relations Contact
Amy Roddy
832-255-0502
Share Repurchase Snapshot
No Authorization in Place
Geographic Revenue:
2013 = $746 mil
Brazil
22%
Ultra-deepwater Floaters
100%
Nigeria
52%
Notes:
-The Company has three ultra-deepwater rigs under construction (two delivered in 2014 and one in 2015).
Composition of PACD MODU
BALANCE SHEET (mil.)
12/31/13
Cash + Restricted Cash
$204
PP&E (net)
$4,512
Goodwill
$0
Total Assets
$5,164
Short-term Debt
$8
Long-term Debt
$2,423
Total Liabilities
$2,764
Shareholder Equity
$2,400
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
0
0
0
0
1
1
$301
$11.43
$11.43
50.2%
50.3%
48.1%
W. Africa/
Middle
Med. North Sea
East
0
0
0
0
0
0
0
0
0
0
0
0
3
0
0
3
0
0
SE Asia/
India
0
0
0
0
0
C/S
America
0
0
0
0
1
Mexico
0
0
0
0
0
Other
0
0
0
0
0
TOTAL
0
1
0
0
5
SE Asia/
India
C/S
America
Mexico
Other
0%
3%
1%
0%
0%
TOTAL
0%
0%
0%
0%
3%
1%
0
0
0
0
5
% of Total MODU
GOM
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
GOM
26%
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
2%
1%
W. Africa/
Middle
Med. North Sea
East
9%
3%
0%
0%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
44
Company Profile:
Rowan Companies is the largest provider of high specification jackups in the world and is one of the largest providers of premium
jackup rigs in the GOM. In January 2014, the company took delivery of its first ultra-deepwater drillship, the Rowan Renaissance,
which is expected to commence operations in April 2014. The Company has three remaining ultra-deepwater drillships under
construction scheduled for delivery in June 2014, October 2014, and March 2015.
Rowan Companies - RDC (NYSE)
www.rowancompanies.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$32.39
124
$4,023
1.4
$30.21 - $38.65
-8.4%
1.2%
3,499
Management
W. Matt Ralls, CEO
Tom Burke, COO/Pres.
Kevin Bartol, CFO
in office since
2009
2011
2012
Geographic Revenue:
Fleet Mix:
Total Offshore Rigs = 31
Ultradeepwater
Floater
3%
2008 = $2,213 mil
West Africa
5%
Conventional
Jackups
10%
Australia
3%
2013 = $1,579 mil
Other
2%
United States
60%
North Sea
8%
Middle East
22%
Premium
Jackups
87%
SE Asia
14%
Other United States
15%
6%
North Sea
32%
Middle East
33%
Note:
- The Company currently has three ultra-deepwater drillships under construction, scheduled for delivery in 2014 (2), 2015 (1)
Investor Relations Contact
Suzanne Spera
713-960-7517
Share Repurchase Snapshot (mil $)
$150
Current Authorization
Remaining as of 12/31/13
$25
Potential Buyback of Shares O/S
0.6%
BALANCE SHEET (mil.)
12/31/13
Cash + Equivalents
$1,093
PP&E (net)
$6,386
Goodwill
$0
Total Assets
$7,976
Short-term Debt
$0
Long-term Debt
$2,009
Total Liabilities
$3,082
Shareholder Equity
$4,894
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$1,174
$39.40
$39.40
29.1%
29.1%
15.8%
Composition of RDC MODU
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
4
3
0
0
0
7
W. Africa/
Middle
Med. North Sea
East
1
6
10
0
0
0
0
0
0
0
0
0
1
0
0
2
6
10
SE Asia/
India
4
0
0
0
0
C/S
America
2
0
0
0
0
Mexico
0
0
0
0
0
Other
0
0
0
0
0
TOTAL
4
2
0
0
31
SE Asia/
India
4%
C/S
America
29%
Mexico
Other
2%
2%
0%
0%
TOTAL
7%
2%
0%
0%
1%
4%
27
3
0
0
1
% of Total MODU
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
29%
7%
6%
W. Africa/
Middle
Med. North Sea
East
3%
15%
9%
3%
2%
7%
7%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
45
Company Profile:
Transocean is one of the largest publicly traded offshore drilling contractors in the world. The Company owns the largest fleet of
deepwater assets, is the leading provider of midwater floaters in the North Sea, and operates premium jackups in West Africa, India
and SE Asia.
Transocean Inc. - RIG (NYSE)
Fleet Mix:
Total Offshore Rigs = 79
www.deepwater.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$39.81
361
$14,372
6.0
$38.47 - $55.79
-19.4%
7.5%
15,100
Management
Steven Newman, CEO
Esa Ikäheimonen, CFO
in office since
2010
2012
Investor Relations Contact
R. Thaddeus Vayda
713-232-7551
Share Repurchase Snapshot ($mil)*
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
$3,900
$3,682
25.6%
Geographic Revenue:
2008 = $12.7 bil
United
States
20%
Ultra-deepwater
Floaters
37%
Jackups
14%
Other
53%
Midwater
Floaters
31%
Brazil
4%
Deepwater
Floaters
18%
$3,218
$46.23
$37.96
38.3%
39.1%
30.9%
United
Kingdom
16%
India
7%
Norway
13%
Brazil
9%
United
Kingdom
12%
Composition of RIG MODU
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
0
0
1
0
13
14
% of Total MODU
GOM
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
United
States
25%
Other
41%
Notes:
- Five high-specification jackups under construction; with three scheduled for delivery in 2016 and two in 2017
-Nine ultra-deepwater drillships under construction with two due for delivery in 2014, two in 2015, three in 2016, one in 2017 and one in 2018.
* Based on exchange rates as of December 2013
BALANCE SHEET (mil.)
12/31/13
Cash + Equivalents
$3,243
PP&E (net)
$21,707
Goodwill
$2,987
Total Assets
$32,546
Short-term Debt
$323
Long-term Debt
$10,379
Total Liabilities
$15,861
Minority Interest
($6)
Shareholder Equity
$16,691
2013 = $9.5 bil
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
17%
32%
13%
W. Africa/
Middle
Med. North Sea
East
3
4
0
0
0
0
5
13
0
4
1
0
6
2
1
18
20
1
W. Africa/
Middle
Med. North Sea
East
8%
10%
36%
29%
18%
17%
37%
25%
25%
22%
100%
1%
SE Asia/
India
4
0
5
5
6
C/S
America
0
0
1
3
1
Mexico
0
0
0
0
0
Other
0
0
0
1
0
TOTAL
20
5
0
1
79
SE Asia/
India
4%
C/S
America
Mexico
Other
16%
38%
32%
10%
7%
16%
3%
6%
TOTAL
3%
0%
23%
25%
20%
10%
100%
0%
5%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
11
0
25
14
29
46
Company Profile:
Seadrill is a leading offshore drilling contractor that operates 41 rigs including semi-submersibles, drillships, jackups, and tender assist rigs (excludes
the seven rigs associated with NADL, which are consolidated in SDRL's operating results). The Company has an additional 20 drilling rigs currently
under construction, including three semisubmersibles, eight drillships, and nine jackups. The Company owns interests in various oilfield service
companies and other offshore drillers. It owns interests in Archer Limited, an international oilfield service company, Asia Offshore Drilling Ltd., an
offshore drilling company, Sevan Drilling, an offshore drilling company, Varia Perdana Bhd., a tender rig company, North Atlantic Drilling , an offshore
drilling company and SapuraKencana Petroleum, an oilfield service company.
Seadrill Ltd. - SDRL (NYSE)
www.seadrill.com
Share Price (3/19/14)
$33.52
Shares Out (mil.)
469
Market Cap (mil.)
$15,729
Avg Daily Volume (mil.)
5.4
52-week range
$32.83 - $48.09
YTD Return
-18.4%
Div. Yield
11.7%
Employees
8,700
Fleet Mix:
Total Offshore Rigs = 41*
Tender Assist
7%
Revenue By Class:
2013 = $4.9 bil*
Tender Rigs
7%
Ultra-deepwater
Floaters
44%
Jackups
23%
Jackups
49%
in office since
Management
Per Wullf, CEO
2013
Rune Magnus Lundetrae, CFO
2012
Floaters
70%
*Includes 3 Tender Assist rigs
Investor Relations Contact
John Roche
+44 20 8811 4715
*Consolidated revenue including NADL
Note:
- The Company has an additional 20 drilling rigs currently under construction, three semisubmersibles, eight drillships,
nine jackups.
Share Repurchase Snapshot
No shares repurchased in 2013 under
existing repurchase scheme
BALANCE SHEET (mil.)
12/31/13
Cash + Equivalents
$1,328
PP&E (net)
$20,612
Goodwill
$1,200
Total Assets
$26,300
Short-term Debt
$1,566
Long-term Debt
$11,900
Total Liabilities
$18,098
Minority Interest
$690
Shareholder Equity
$7,512
Composition of SDRL MODU
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
GOM
0
0
0
0
5
5
% of Total MODU
GOM
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
($991)
$16.01
$13.45
61.3%
64.2%
61.8%
Premium Jackups (250' IC or >)
Commodity Jackups
Midwater Floaters
Deepwater Floaters
Ultra-deepwater Floaters
TOTAL
12%
5%
W. Africa/
Middle
Med. North Sea
East
1
0
6
0
0
0
0
0
0
0
0
0
6
0
0
7
0
6
W. Africa/
Middle
Med. North Sea
East
3%
5%
18%
7%
0%
4%
SE Asia/
India
9
0
0
0
0
C/S
America
1
0
0
0
5
Mexico
3
0
0
0
1
Other
0
0
0
0
1
TOTAL
9
6
4
1
38
SE Asia/
India
8%
C/S
America
14%
Mexico
6%
Other
5%
13%
7%
25%
7%
100%
5%
TOTAL
5%
0%
0%
0%
12%
5%
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
20
0
0
0
18
47
Jackup Newbuilds
Owner
Rig Name
Water Depth (ft) Ordered Location
CPOE
CPOE-16
Maersk Drilling
Maersk XL Enhanced 1
Seadrill Ltd
West Titania
KS Drilling
KS Java Star 2
KS Drilling
KS Orient Star 1
Noble
Noble Sam Turner
Perforadora Mexico
Campeche
Yantai Raffles
CIMC Raffles JU Tbn1
ICDSSA
CP300-3
National Drilling
Marawwah
Shengli Offshore
New Shengli 1
Prospector Offshore Drilling
PROSPECTOR 5
GOL Offshore
Somnath
CPTDC
DSJ-300 L1
KS Drilling
KS Orient Star 2
UMW Rig Asset
UMW Naga 5
CPTDC
DSJ-300 JU Tbn3
CPTDC
DSJ-300 JU Tbn4
Yantai Raffles
CIMC Raffles JU Tbn2
Apexindo
Tasha
Maersk XL Enhanced 2
Maersk Drilling
Central Panuco
Coatzacoalcos
Perisai
Perisai Pacific 101
Ensco
ENSCO 122
Prospector Offshore Drilling
PROSPECTOR 6
Gulf Drilling International Dukhan
UMW Rig Asset
UMW Naga 6
Noble
Noble Tom Prosser
Coastal Contracts
Coastal Contracts JU Tbn1
CPTDC
DSJ-300 L2
Eurasia Drilling
Mercury
National Drilling
Al Shuwehat
Noble
Noble Sam Hartley
DDW-PaxOcean JU Tbn1
Drydocks World
Star Drilling Pte Ltd
Jindal Explorer
Oro Negro
Impetus
2014 Deliveries
Owner
Rig Name
400
492
400
300
400
400
400
300
300
200
164
400
350
300
400
400
300
300
300
400
492
375
400
400
400
300
375
400
400
300
350
200
400
375
350
400
1Q12
1Q11
2Q11
2Q11
2Q11
1Q11
2Q11
4Q11
1Q12
4Q11
2Q13
3Q11
3Q06
3Q12
2Q11
2Q11
1Q12
2Q12
4Q11
3Q12
1Q11
1Q12
2Q12
4Q11
3Q11
2Q11
4Q12
3Q11
2Q12
2Q13
2Q12
2Q12
3Q11
1Q13
1Q13
1Q13
Shanghai Pudong
Singapore
Dalian
Nantong
Jiangsu
Jurong
Dalian
Yantai
Liaohe
Hamriyah, Sharjah
Yantai
Shanghai Pudong
Maharashtra
Liaohe
Jiangsu
Singapore
Dalian
Dalian
Yantai
Dalian
Singapore
Brownsville, TX
Tuas
Singapore
Shanghai Pudong
Singapore
Shenzhen
Jurong
Yantai
Liaohe
Hamriyah, Sharjah
Hamriyah, Sharjah
Jurong
Batam
Singapore
Pandan
Water Depth (ft) Ordered Location
ES Holding
ES Holding JU Tbn1
Bestford Capital
Bestford JU Tbn5
Clearwater Capital
Clearwater JU Tbn4
Northern Offshore
Northern Offshore JU Tbn1
PPL Shipyard
PPL JU Tbn5
PPL Shipyard
PPL JU Tbn6
Prospector Offshore Drilling
PROSPECTOR 8
Transocean
Transocean JU Tbn5
Tianjin Haiheng
HAIHENG CJ50-2
PPL Shipyard
PPL JU Tbn7
PPL Shipyard
PPL JU Tbn8
FTS Derricks
TS Jade
Seadrill Ltd
West Umbriel
Alliance Offshore
Alliance Offshore JU Tbn2
Contractor TBC
ESSM JU Tbn2
Bestford Capital
Bestford JU Tbn6
Ensco
ENSCO 123
FTS Derricks
TS Coral
Coastal Contracts
Coastal Contracts JU Tbn2
Maersk Drilling
Maersk XL Enhanced 4
Varada Petroleum
Varada 3
Seadrill Ltd
West Dione
Noble
Noble Mariner
Bestford Capital
Bestford JU Tbn7
Fecon
Fecon JU Tbn1
Northern Offshore JU Tbn2
Northern Offshore
Perisai
Perisai JU Tbn3
Transocean
Transocean JU Tbn6
Seadrill Ltd
West Mimas
Vietsovpetro
Tam Dao 05
Fecon
Fecon JU Tbn2
Bestford Capital
Bestford JU Tbn8
Transocean
Transocean JU Tbn7
Fecon
Fecon JU Tbn3
Not known
Gullfaks JU Tbn1
Varada Petroleum
Varada 4
Lovanda Offshore
Lovanda JU Tbn1
Lovansing Offshore
Lovansing JU Tbn1
TS Drilling
TS Offshore JU Tbn1
Not known
Oseberg JU Tbn1
Transocean
Transocean JU Tbn8
Transocean
Transocean JU Tbn9
2016+ Deliveries
220
350
400
350
400
400
400
400
375
400
400
400
400
400
375
350
400
400
400
492
375
400
492
350
400
350
400
400
400
350
400
350
400
400
460
375
400
400
500
460
400
400
Newbuild Jackups on Order:
139
Worldwide Jackup Supply:
514
Worldwide Premium Jackup Supply:
386
Source: ODS-Petrodata, HW Research as of March 11, 2014
4Q12
4Q13
4Q13
4Q13
4Q13
4Q13
1Q13
4Q13
1Q13
4Q13
4Q13
3Q13
2Q13
2Q13
3Q13
4Q13
4Q13
3Q13
4Q13
3Q13
4Q10
3Q13
2Q13
3Q13
1Q14
4Q13
4Q13
4Q13
3Q13
2Q12
1Q14
1Q14
4Q13
1Q14
2Q13
4Q10
1Q14
1Q14
1Q14
2Q13
4Q13
4Q13
Newbuild
as %
27.0%
36.0%
Shangdon
Shenzhen
Singapore
Dalian
Pandan
Pandan
Shanghai Pudong
Singapore
Shenzhen
Pandan
Pandan
Qinhuangdao
Dalian
Guangzhou
Shanghai Pudong
Shenzhen
Singapore
Qinhuangdao
Yantai
Okpo
Dahej, Gujarat
Dalian
Jurong
Shenzhen
Singapore
Dalian
Tuas
Singapore
Dalian
Vung Tao
Singapore
Shenzhen
Singapore
Singapore
Okpo
Dahej, Gujarat
Shanghai
Shanghai
Singapore
Okpo
Singapore
Singapore
Avg. Cost per Rig
Cost est. $MM Delivery Contract/Comments
$500
$220
$194
$235
$220
$167
$211
$165
$194
$196
$500
$205
$208
$260
$211
$197
$220
$245
$235
$167
$245
$209
1Q14
1Q14
1Q14
1Q14
1Q14
1Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
3Q14
3Q14
3Q14
3Q14
3Q14
3Q14
3Q14
4Q14
4Q14
4Q14
4Q14
4Q14
4Q14
4Q14
4Q14
4Q14
36
Not Contracted
Future Contracted
Future Contracted
Future Contracted
Not Contracted
Future Contracted
Not Contracted
Not Contracted
Not Contracted
Future Contracted
Not Contracted
Future Contracted
Not Contracted
Not Contracted
Not Contracted
Future Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Future Contracted
Not Contracted
Not Contracted
Future Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Future Contracted
Future Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Cost est. $MM Delivery Contract/Comments
$180
$220
$180
$220
$250
$218
$230
$180
$285
$218
$220
$230
$596
$206
$217
$180
$212
$250
$230
$217
$250
$217
$650
$220
$200
$200
$500
$650
$250
$250
$241
(in $MM)
1Q16
1Q16
1Q16
1Q16
1Q16
1Q16
1Q16
1Q16
1Q16
1Q16
1Q16
1Q16
1Q16
1Q16
1Q16
2Q16
2Q16
2Q16
2Q16
2Q16
2Q16
2Q16
2Q16
3Q16
3Q16
3Q16
3Q16
3Q16
3Q16
3Q16
4Q16
4Q16
4Q16
4Q16
4Q16
4Q16
1Q17
1Q17
1Q17
1Q17
1Q17
3Q17
42
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Future Contracted
Not Contracted
Not Contracted
Future Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Future Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Future Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Future Contracted
Not Contracted
Not Contracted
Owner
Rig Name
Water Depth (ft) Ordered Location
Jindal Pipes
Jindal Pioneer
350
UMW Rig Asset
UMW Naga 7
375
National Drilling
Butinah
200
BOT Lease Co.
Hakuryu-12
400
Maersk Drilling
Maersk XL Enhanced 3
492
Ensco
ENSCO 110
400
Greatship
Greatdrill Chaaru
350
PEMEX
Kukulkan
400
Teniz Burgylau
Satti
262
PEMEX
Yunuen
400
Bestford Capital
Bestford JU Tbn1
350
Foresight Drilling
Foresight JU Tbn1
350
Seadrill Ltd
West Titan
400
ZPMC
Jap Driller 1
400
Bestford Capital
Bestford JU Tbn2
350
PVDO
PV Drilling VI
400
Oro Negro
Vastus
400
Grupo R
Cantarell I
400
Grupo R
Cantarell II
400
CPLEC
CP400
400
Seadrill Ltd
West Proteus
400
Perisai
Perisai Pacific 102
400
Essar Oilfields Services Varada 1
350
Not known
Polynor JU Tbn1
400
Oro Negro
Animus
400
FTS Derricks
TS Topaz
400
Grupo R
Cantarell III
400
Yantai Raffles
CIMC Raffles JU Tbn4
300
COSL
COSL 943
400
DDW-PaxOcean JU Tbn2
375
Drydocks World
Prospector Offshore Drilling
P ROSPECTOR 7
400
Explorer I
Explorer I
350
China Merchants Capital JU Tbn1
400
Not known
Not known
China Merchants Capital JU Tbn2
400
FTS Derricks
TS Opal
400
Foresight Drilling
Foresight JU Tbn2
350
Landmark Offshore
Landmark JU Tbn1
350
Landmark Offshore
Landmark JU Tbn2
350
Seadrill Ltd
West Rhea
400
Momentum Drilling
Dynamic Momentum
350
Bestford Capital
Bestford JU Tbn3
350
Oro Negro
Supremus
400
UMW Rig Asset
UMW Naga 8
400
COSL
COSL 944
400
Grupo R
Grupo R JU Tbn4
400
Grupo R
Grupo R JU Tbn6
400
Clearwater Capital
Clearwater JU Tbn3
400
Grupo R
Grupo R JU Tbn5
400
Marco Polo Drilling
Marco Polo JU Tbn1
400
Perforadora Central JU Tbn3 400
Central Panuco
Petrolor Oilfield Services Petrolor Oilfield Services JU Tbn1
400
Bestford Capital
Bestford JU Tbn4
350
CSM
CSM JU Tbn1
400
CSM
CSM JU Tbn2
400
Tianjin Haiheng
HAIHENG CJ50-1
375
Seadrill Ltd
West Tethys
400
CPOE
Zhong You Hai 17
400
FTS Derricks
TS Emerald
400
Seadrill Ltd
West Hyperion
400
Contractor TBC
ESSM JU Tbn1
375
Essar Oilfields Services Varada 2
350
2015 Deliveries
1Q13
4Q12
2Q12
2Q13
2Q12
2Q13
3Q13
4Q12
3Q12
4Q12
1Q13
3Q12
1Q13
3Q12
1Q13
3Q13
1Q13
1Q13
1Q13
3Q13
1Q13
1Q13
4Q08
4Q13
3Q13
2Q13
1Q13
2Q13
4Q13
1Q13
1Q13
4Q12
4Q13
4Q13
3Q13
3Q13
2Q14
2Q14
1Q13
4Q13
3Q13
3Q13
1Q14
4Q13
1Q13
3Q13
4Q13
3Q13
1Q14
4Q13
2Q13
4Q13
1Q14
1Q14
1Q13
1Q13
2Q13
3Q13
2Q13
3Q13
4Q08
Hamriyah, Sharjah
Shenzhen
Hamriyah, Sharjah
Pandan
Singapore
Singapore
Hamriyah, Sharjah
Singapore
Aktau
Singapore
Shenzhen
Dalian
Dalian
Nantong
Shenzhen
Singapore
Pandan
Singapore
Singapore
Liaohe
Dalian
Tuas
Dahej, Gujarat
Shenzhen
Pandan
Singapore
Singapore
Yantai
Dalian
Batam
Shanghai Pudong
Jiangsu Province
Shenzhen
Shenzhen
Qinhuangdao
Dalian
Shenzhen
Shenzhen
Dalian
Dalian
Shenzhen
Pandan
Singapore
Shenzhen
Singapore
Singapore
Singapore
Singapore
Pandan
Brownsville, TX
Guangzhou
Shenzhen
Yantai
Yantai
Shenzhen
Dalian
Dalian
Qinhuangdao
Dalian
Shanghai Pudong
Dahej, Gujarat
Cost est. $MM Delivery Contract/Comments
$220
$167
$240
$650
$225
$210
$242
$210
$170
$230
$210
$209
$205
$205
$230
$208
$229
$208
$226
$205
$220
$170
$218
$170
$230
$180
$180
$208
$218
$205
$206
$220
$206
$214
$240
$240
$240
$230
$218
$230
$180
$229
1Q15
1Q15
1Q15
1Q15
1Q15
1Q15
1Q15
1Q15
1Q15
1Q15
1Q15
1Q15
1Q15
1Q15
1Q15
1Q15
1Q15
2Q15
2Q15
2Q15
2Q15
2Q15
2Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
3Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
61
Not Contracted
Not Contracted
Future Contracted
Not Contracted
Future Contracted
Not Contracted
Future Contracted
Not Contracted
Future Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
48
Floater Newbuilds
Owner
Rig Name
Water Depth (ft) Ordered Location
Cost est. $MM Delivery Contract/Comments
Newbuild Drillships
Maersk Drilling
Maersk Valiant
DryShips Inc
Ocean Rig Athena
Transocean
Deepwater Invictus
Pacific Drilling Ltd
Pacific Sharav
Diamond Offshore
Ocean BlackHornet
Noble
Noble Sam Croft
Seadrill Ltd
West Saturn
Atwood Eagle Company
Atwood Achiever
Rowan
Rowan Resolute
Seadrill Ltd
West Neptune
Pacific Drilling Ltd
Pacific Meltem
Maersk Drilling
Maersk Drsh Tbn4
Maersk Drilling
Maersk Venturer
Diamond Offshore
Ocean BlackRhino
Ensco
ENSCO DS-8
Seadrill Ltd
West Jupiter
Dalian Deepwater Developer Ltd Dalian Developer
Noble
Noble Tom Madden
Rowan
Rowan Reliance
Ensco
ENSCO DS-9
Seadrill Ltd
West Carina
Queiroz Galvao
Brava Star
Opus Offshore
Opus Tiger 1
2014 Deliveries
10,000
10,000
10,000
10,000
10,000
10,000
12,000
10,000
12,000
10,000
10,000
10,000
10,000
10,000
10,000
12,000
10,000
10,000
12,000
10,000
12,000
12,000
5,000
2Q11
2Q11
1Q11
1Q11
1Q11
1Q11
2Q12
4Q11
2Q11
1Q12
1Q12
3Q11
3Q11
2Q11
2Q12
1Q12
2Q06
3Q11
4Q11
2Q12
3Q12
4Q12
3Q11
Geoje
Geoje
Okpo
Geoje
Ulsan
Ulsan
Geoje
Okpo
Ulsan
Geoje
Geoje
Geoje
Geoje
Ulsan
Geoje
Geoje
Dalian
Ulsan
Ulsan
Geoje
Geoje
Geoje
Shanghai
DryShips Inc
Diamond Offshore
Pacific Drilling Ltd
Rowan
Atwood
Transocean
Sete Brasil
Opus Offshore
Vantage Drilling
Ensco
Seadrill Ltd
Seadrill Ltd
Seadrill Ltd
Seadrill Ltd
Sonangol
Transocean
DryShips Inc
Ocean Rig Apollo
Ocean BlackLion
Pacific Zonda
Rowan Relentless
Atwood Admiral
Deepwater Thalassa
Arpoador
Opus Tiger 2
Cobalt Explorer
ENSCO DS-10
West Aquila
West Dorado
West Libra
West Draco
Sonangol Drsh Tbn2
Deepwater Proteus
Ocean Rig Santorini
10,000
10,000
10,000
12,000
10,000
12,000
10,000
3,000
12,000
10,000
12,000
12,000
12,000
12,000
12,000
12,000
10,000
4Q12
2Q12
1Q13
3Q12
3Q12
3Q12
1Q11
3Q11
3Q13
2Q13
3Q13
3Q13
3Q13
3Q13
4Q13
3Q12
3Q13
Geoje
Ulsan
Geoje
Ulsan
Okpo
Okpo
Espirito Santo
Shanghai
Okpo
Geoje
Okpo
Okpo
Okpo
Okpo
Okpo
Okpo
Geoje
$683
$655
$634
$773
$635
$840
$792
Atwood
Sonangol
2015 Deliveries
Atwood Archer
Sonangol Drsh Tbn1
10,000
12,000
2Q13
4Q13
Okpo
Okpo
Sete Brasil
Keppel FELS
Transocean
Copacabana
Keppel FELS Drsh Tbn1
Deepwater Pontus
10,000
12,000
12,000
2Q11
4Q13
3Q12
Pernambuco
Singapore
Okpo
Sete Brasil / Etesco / OAS
Cassino
10,000
1Q12
Rio Grande do Sul
$778
3Q16
Future Contracted
Sete Brasil / Odebrecht
Sete Brasil / Odfjell Drilling
Sete Brasil
Transocean
Friede Goldman Offshore
Friede Goldman Offshore
Transocean
Sete Brasil / Seadrill
Friede Goldman Offshore
2016 Deliveries
Ondina
10,000
Deepsea Guarapari
10,000
Grumari
10,000
Deepwater Conqueror
12,000
Friede and Goldman Drsh Tbn112,500
Friede and Goldman Drsh Tbn212,500
Deepwater Poseidon
12,000
Camburi
10,000
Friede and Goldman Drsh Tbn312,500
4Q12
1Q12
2Q11
4Q13
3Q14
3Q14
3Q12
1Q12
3Q14
Bahia
Jurong
Pernambuco
Okpo
$799
$792
$662
$780
Okpo
Espirito Santo
$790
$792
3Q16
3Q16
3Q16
4Q16
4Q16
4Q16
4Q16
4Q16
4Q16
13
Future Contracted
Future Contracted
Future Contracted
Future Contracted
Not Contracted
Not Contracted
Future Contracted
Future Contracted
Not Contracted
Sete Brasil
Sete Brasil / Etesco / OAS
Transocean
Sete Brasil / Odebrecht
Sete Brasil / Odfjell Drilling
Sete Brasil
Sete Brasil / Etesco / OAS
Sete Brasil / Odebrecht
Transocean
Ipanema
Curumim
Transocean Drsh Tbn1
Pituba
Deepsea Itaoca
Leblon
Salinas
Boipeba
Transocean Drsh Tbn2
10,000
10,000
8,000
10,000
10,000
10,000
10,000
10,000
8,000
2Q11
1Q12
1Q14
2Q12
1Q12
2Q11
1Q12
2Q12
1Q14
Pernambuco
Rio Grande do Sul
Jurong
Bahia
Espirito Santo
Pernambuco
Rio Grande do Sul
Bahia
Jurong
$662
$778
$620
$799
$792
$662
$778
$799
$620
1Q17
1Q17
2Q17
2Q17
3Q17
4Q17
4Q17
1Q18
1Q18
Future Contracted
Future Contracted
Not Contracted
Future Contracted
Future Contracted
Future Contracted
Future Contracted
Future Contracted
Not Contracted
Sete Brasil / Seadrill
Sete Brasil
Sete Brasil / Odebrecht
Sete Brasil
Sete Brasil / Odfjell Drilling
Sete Brasil / Etesco / OAS
Sete Brasil
Sete Brasil / Seadrill
Sete Brasil / Etesco / OAS
2017+ Deliveries
Itaunas
Leme
Interlagos
Marambaia
Deepsea Siri
Itapema
Joatinga
Sahy
Comandatuba
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
1Q12
2Q11
2Q12
1Q11
1Q12
2Q12
4Q12
1Q12
2Q12
Espirito Santo
Pernambuco
Bahia
Pernambuco
Espirito Santo
Bahia
Pernambuco
Espirito Santo
Bahia
$792
$662
$799
$662
$792
$799
$662
$792
$799
2Q18
3Q18
3Q18
4Q18
4Q18
2Q19
3Q19
3Q19
1Q20
18
Future Contracted
Future Contracted
Future Contracted
Future Contracted
Future Contracted
Future Contracted
Not Contracted
Future Contracted
Future Contracted
$650
$679
$790
$663
$635
$615
$600
$635
$743
$600
$628
$650
$650
$645
$645
$600
1Q14
1Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
2Q14
3Q14
3Q14
3Q14
3Q14
3Q14
3Q14
3Q14
4Q14
4Q14
4Q14
4Q14
4Q14
4Q14
23
Future Contracted
Future Contracted
Future Contracted
Future Contracted
Future Contracted
Future Contracted
Not Contracted
Future Contracted
Future Contracted
Future Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Future Contracted
Future Contracted
Future Contracted
Not Contracted
Not Contracted
Not Contracted
1Q15
1Q15
1Q15
1Q15
1Q15
2Q15
2Q15
2Q15
3Q15
3Q15
3Q15
4Q15
4Q15
4Q15
4Q15
4Q15
4Q15
Future Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Future Contracted
Future Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Future Contracted
Not Contracted
$635
$620
4Q15
4Q15
19
Not Contracted
Not Contracted
$662
1Q16
2Q16
2Q16
Future Contracted
Not Contracted
Future Contracted
$630
$729
$645
$600
$660
$593
$625
$600
$600
$600
$600
$620
$790
$600
$790
Owner
Rig Name
Newbuild Semis
COSL
Sevan Drilling
Odfjell Drilling
Songa Rig AS
2014 Deliveries
COSLProspector
Sevan Developer
Deepsea Aberdeen
Songa Equinox
5,000
10,000
7,500
1,640
4Q11
2Q11
4Q11
3Q11
Yantai
Qidong
Okpo
Okpo
Songa Rig AS
Seadrill Ltd
Songa Rig AS
North Atlantic Drilling
Songa Rig AS
Fred Olsen Energy
North Sea Rigs
Sete Brasil / Queiroz Galvao
Frigstad Offshore
2015 Deliveries
Songa Endurance
West Mira
Songa Encourage
West Rigel
Songa Enabler
Bollsta Dolphin
North Dragon
Urca
Frigstad Deepwater Rig Alpha
1,640
10,000
1,640
10,000
1,640
7,500
1,650
10,000
12,000
3Q11
2Q12
1Q12
1Q12
1Q12
2Q12
1Q12
4Q11
1Q13
Okpo
Samho
Okpo
Jurong
Okpo
Ulsan
Yantai
Angra dos Reis
Yantai
$660
$650
$660
$720
$660
$740
Diamond Offshore
Stena
Frigstad Offshore
COSL
Not known
Stena
Beacon Holdings Group
Sete Brasil / Petroserv
2016 Deliveries
Ocean GreatWhite
10,000
Stena Semi Tbn1
6,500
Frigstad Deepwater Rig Beta 12,000
Hai Yang Shi You 982
5,000
Caspian Drilling Semi Tbn1
2,625
Stena Semi Tbn2
6,500
Beacon Atlantic
1,650
Frade
10,000
2Q13
3Q13
1Q13
4Q13
2Q13
3Q13
1Q14
1Q12
Ulsan
Okpo
Yantai
Dalian
Baku
Okpo
Yantai
Angra dos Reis
$755
$800
$650
Primepoint
Primepoint
Sete Brasil / Queiroz Galvao
Sete Brasil / Petroserv
Sete Brasil / Queiroz Galvao
Sete Brasil / Odebrecht
2017+ Deliveries
Primepoint Semi Tbn1
Primepoint Semi Tbn2
Bracuhy
Portogalo
Mangaratiba
Botinas
10,000
10,000
10,000
10,000
10,000
10,000
1Q14
1Q14
1Q12
1Q12
1Q12
1Q12
Jiangsu Province
Jiangsu Province
Angra dos Reis
Angra dos Reis
Angra dos Reis
Angra dos Reis
$425
$425
$832
$832
$832
$832
100
313
146
Newbuild
as %
31.9%
68.5%
Summary
Newbuild/Upgraded Floaters on Order:
Worldwide Floater Supply:
Worldwide Deepwater Floater (+7,500')Supply:
Source: ODS-Petrodata, HW Research as of March 11, 2014
Water Depth (ft) Ordered Location
Avg. Cost per Rig
Cost est. $MM Delivery Contract/Comments
$526
$702
$660
$809
$650
$800
$800
$832
3Q14
3Q14
4Q14
4Q14
4
Not Contracted
Not Contracted
Future Contracted
Future Contracted
1Q15
1Q15
2Q15
2Q15
2Q15
3Q15
4Q15
4Q15
4Q15
9
Future Contracted
Future Contracted
Future Contracted
Not Contracted
Future Contracted
Future Contracted
Not Contracted
Future Contracted
Not Contracted
1Q16
2Q16
2Q16
3Q16
4Q16
4Q16
4Q16
4Q16
8
Future Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Not Contracted
Future Contracted
2Q17
3Q17
3Q17
2Q18
4Q18
3Q19
6
Not Contracted
Not Contracted
Future Contracted
Future Contracted
Future Contracted
Future Contracted
$696
(in $MM)
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
49
U.S. Land Drilling Summary
Total Fleet
Mkt'd Units
316
274
HP
275
197
PTEN
281
191
NBR
145
95
PDS
115
82
Nomac
117
71
UNT
117
81
Ensign
65
51
Trinidad
61
51
PES
34
30
Capstar Drilling
Source: Land Rig Newsletter (3/13/14)
Active Units Mkt'd Util.
245
89%
184
93%
175
92%
81
85%
70
85%
59
83%
59
73%
46
90%
43
84%
24
80%
U.S. Land Drilling Regional Market Share (Active Rigs):
Appalachia - 136
ArkLaTex - 83
NBR
19%
Other
35%
Trinidad
5%
Nomac
7%
Scan
11%
HP
8%
Nomac
15%
NBR
5%
Sidewinder
6%
Rockies - 335
HP
6%
Cactus
10%
Other
52%
NBR
6%
PDS
12%
South Texas - 249
NBR
20%
Other
36%
UNT
11%
PTEN
24%
Other
32%
PTEN
15%
Mid Continent - 344
HP
6%
Permian Basin - 540
HP
13%
HP
34%
Other
31%
Nomac
7%
HP
16%
PDS
5%
Cyclone
7%
PTEN
8%
Ensign
8%
PTEN
8%
PTEN
10%
PDS
5%
PDS
6%
Nomac
NBR
7%
10%
PTEN
12%
Other
59%
NBR
6%
Cactus
4%
Savanna
3%
Source: Land Rig Newsletter (3/13/14), HW Research
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
50
U.S. Unconventional Drilling Market Share
Barnett- 23
Bakken - 156
Fayetteville - 9
NBR
17%
Other
44%
Sidewinder
11%
Felderhoff
13%
HP
17%
PDS
7%
Desoto
89%
Steinberger
13%
PTEN
11%
Piceance - 7
Woodford - 5
Haynesville - 19
Other
16%
NBR
28%
Other
37%
PDS
13%
Aztec Well
Svcg.
14%
UNT
20%
Nomac
32%
HP
10%
NBR
57%
Sidewinder
60%
Horizontal Well Drlr.
20%
PTEN
21%
Cyclone
29%
NBR
21%
Marcellus - 59
Other
41%
Greater Green River - 15
PTEN
27%
NBR
13%
Other
7%
Eagle Ford - 211
Other
32%
UNT
33%
HP
37%
PDS
19%
PTEN
20%
Alpha Hunter
5%
Nomac
7%
Ensign
27%
Nomac
8%
Horizontal Drilling - 1,181
Directional Drilling - 101
NBR
10%
HP
18%
PTEN
13%
Nomac
6%
PDS
6%
HP
9%
PTEN
8%
Other
44%
NBR
13%
NBR
11%
PTEN
13%
Other
59%
Rapad
Drilling
6%
Ensign
8%
Source: Land Rig Newsletter (3/13/14), HW Research
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
51
Company Profile:
Helmerich & Payne is a leading provider of North American land contract drilling services with core geographic regions located in South Texas, ArkLa-Tex, Midcontinent, Rockies and the Gulf Coast. HP also operates international land rigs, primarily in South America. In addition, the Company
owns offshore platform rigs. The Company has a fleet of 354 rigs (316 in the U.S., 29 in the international market, and 9 offshore) and will add
another 20 FlexRigs in 2014, as of February 10, 2014.
Helmerich & Payne - HP (NYSE)
www.hpinc.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$102.84
108
$11,059
1.3
$55.78 - $104.93
22.3%
2.4%
10,333
Management
John Lindsay, CEO
Juan Pablo Tardio, CFO
Investor Relations Contact
Aaron Kesler
Share Repurchase Snapshot
in office since
2014
2010
918-588-5125
Segment Revenue:
Fleet Mix
Total Drilling Rigs = 354
Int'l Land
8%
FY 2008 = $2,037 mil
FY 2013 = $3,388 mil
U.S.
Offshore
3%
U.S. Land
89%
Int'l Land
16%
U.S. Offshore
8%
U.S.
Offshore
7%
Int'l Land
11%
U.S. Land
76%
Fleet as of February 2014:
Total # of U.S. Land Drilling Rigs
Total # of Int'l Land Drilling Rigs
Total # of U.S. Platform Drilling Rigs
316
29
9
354
U.S. Land
82%
(including 283 FlexRigs)
(primarily S. America)
Current Authorization
4 million shares/yr
Remaining as of 12/31/13
n/a
Potential Buyback of Shares O/S
n/a
Total New FlexRigs on Order
BALANCE SHEET (mil.)
12/31/13
Cash + Short Term Investments
$581
PP&E (net)
$4,694
Goodwill
$0
Total Assets
$6,411
Short-term Debt
$115
Long-term Debt
$80
Total Liabilities
$1,842
Shareholder Equity
$4,569
Notes:
- Upon completion of the remaining 20 Flex Rigs left to be built as of February 2014, the Company will have a total of 303 FlexRigs.
- As of Sept 30, 2013, the market value of the Company's portfolio was $306 million, which was made up of SLB and ATW stock.
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$912
$42.49
$42.49
1.7%
4.1%
-9.2%
20
Geographic Composition of HP U.S. Land Rig Fleet
Active Rigs (1)
Market Share (2)
Rockies
54
16%
South Tx
85
34%
ArkLaTex Mid Con
7
21
8%
6%
Permian
68
13%
Other
10
Total Active
245
14%
(1) Fleet distribution based on Land Rig Newsletter, company filings and HW research. Given the highly mobile nature of the U.S. Lower 48
market, the regional breakouts are extremely fluid
(2) % share of Active rigs per Land Rig Newsletter Biweekly Recap (3/13/14)
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
52
Company Profile:
Nabors is the largest land drilling contractor in the world. Currently, the Company is actively marketing 485 land drilling rigs and 549 land workover and wellservicing rigs. Nabors is also actively marketing 38 platform rigs, 8 jack-ups rigs and 4 barge rigs. In addition to operating in North America, the Company has
international drilling operations in the Middle East, Mexico, the Far East, the South Pacific, Russia and Africa. The Company also has 800,000 of pressure
pumping horsepower in key basins throughout the United States and Canada.
Nabors Industries - NBR (NYSE)
www.nabors.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
Management
Anthony Petrello, CEO
William Restrepo, CFO
$23.50
297
$6,968
5.7
$14.34 - $23.71
38.3%
0.7%
29,000
in office since
2011
2014
Fleet Summary: (only actively marketed)
Mobile Offshore Drilling Units (MODU)
Platform Rigs
Barge Rigs
Land Drilling Rigs
Well Servicing Rigs
PP Horsepower
2008 = $5.3 bil
8
38
4
485
549
800K
Other
13%
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$1,442
$20.13
$18.40
39.5%
39.6%
36.3%
Production
Services
16%
U.S. Land
Well Service
20%
U.S. Drillilng
30%
U.S. Offshore
7%
Completion
Int'l
37%
Source: Company Filings
Alaska
5%
Canada
14%
Canada
Drilling
6%
Services
17%
Rig Services
8%
International
Drilling
23%
Global Rig Fleet Details
as of 12/31/13
Investor Relations Contact
Dennis Smith
281-775-8038
Share Repurchase Authorization (mil $)
Current Authorization
n/a
Remaining as of 12/31/13
n/a
Potential Buyback of Shares O/S
n/a
BALANCE SHEET (mil.)
12/31/13
Cash + Short Term Investments
$507
PP&E (net)
$8,598
Goodwill
$513
Total Assets
$12,160
Short-term Debt
$10
Long-term Debt
$3,904
Total Liabilities
$6,109
Minority Interest + PS
$81
Shareholder Equity
$5,969
Geographic/Segment Revenue:
2013 = $6.2 bil
AC
5
172
17
35
9
238
Alaska
Lower 48
Canada
International
Offshore
Total
SCR
12
88
19
73
40
232
Mech
2
26
28
26
2
84
Moving Systems
13
151
20
60
n/a
244
Total
19
286
64
134
51
554
*includes rigs scheduled to be delivered and planned moving system additions
Geographic Composition of NBR U.S. Land Rig Fleet
Active Rigs (1)
Market Share (2)
Rockies
66
20%
South Tx
24
10%
ArkLaTex
16
19%
Mid Con Permian
21
35
6%
6%
Other
13
Total Active
175
10%
(1) Fleet distribution based on Land Rig Newsletter, company filings and HW research. Given the highly mobile nature of the U.S. Lower 48
market, the regional breakouts are extremely fluid
(2) % share of Active rigs per Land Rig Newsletter Biweekly Recap (3/13/14)
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
53
Company Profile:
Patterson-UTI Energy is a leading provider of North American land contract drilling services with core geographic regions located in West Texas, South Texas, Ark-LaTex, Rockies, Mid-Continent and Western Canada. The Company has a total of 279 marketable rigs, that include 14 rigs in Canada. PTEN also maintains a pressure
pumping fleet that primarily operates in Texas and the Appalachian Basin, that totals approximately 763,000 horsepower. Pressure pumping services consist primarily
of well stimulation and cementing for completion of new wells and remedial work on existing wells.
Patterson-UTI Energy - PTEN (NASD)
www.patenergy.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
Management
Andy Hendricks, CEO
John Vollmer, CFO
Fleet Mix
Total Drilling Rigs = 279*
$31.03
144
$4,476
3.9
$18.83 - $31.52
22.6%
1.3%
7,800
Canadian
Land Rigs
5%
Pressure
Pumping
10%
* Note: As of 12/31/2013, includes 14 rigs located in Canada
281-765-7170
U.S.
$200
Current Authorization
$187
Remaining as of 12/31/13
Potential Buyback of Shares O/S
4.2%
BALANCE SHEET (mil.)
12/31/13
Cash + Equivalents
$250
PP&E (net)
$3,636
Goodwill
$167
Total Assets
$4,687
Short-term Debt
$10
Long-term Debt
$683
Total Liabilities
$1,931
Shareholder Equity
$2,756
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$454
$19.11
$17.95
19.8%
20.1%
13.8%
Segment Revenue (all North America):
2013 = $2,716 mil
Oil and Gas
2%
Oil and Gas
2%
Pressure
Pumping
36%
Contract
Drilling
82%
in office since
2012
2005
Share Repurchase Authorization (mil $)
Fluids
6%
U.S. Land
Rigs
95%
Investor Relations Contact
Mike Drickamer
2008 = $2,209 mil
Number of Rigs
Canada
Total
Electric
172
8
180
Mechanical
93
6
99
8,000'
to 12,999'
Marketable Rigs:
Contract
Drilling
62%
Marketed Fleet by Drilling Depth
13,000'
15,000'
18,000'
to 14,999'
17,999'
to 25,000'
15
41
90
133
Rockies
28
8%
Appalachia
32
24%
Other
3
Total Active
184
11%
Total
279
Geographic Composition of PTEN U.S. Land Rig Fleet
Active Rigs (1)
Market Share (2)
Permian Basin South Tx
52
30
10%
12%
ArkLaTex
12
14%
Mid Con
27
8%
(1) Fleet distribution based on Land Rig Newsletter, company filings and HW research. Given the highly mobile nature of the
U.S. Lower 48 market, the regional breakouts are extremely fluid
(2) % share of Active rigs per Land Rig Newsletter Biweekly Recap (3/13/14)
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
54
Company Profile:
Pioneer Energy Services provides drilling services and production services to a diverse group of independent and large oil and gas exploration and
production companies, operating in both the United State and Colombia. The Company's Drilling Service segment provides contract land drilling
services with its fleet of 62 rigs. The Production Services segment includes 109 well servicing rigs, 119 wireline units, 13 coiled tubing units, and fishing
and rental services.
Pioneer Energy Services - PES (NYSE)
www.pioneeres.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
Management
Stacy Locke, CEO
Loren Phillips, CFO
$12.46
63
$779
0.8
$6.46 - $12.51
55.6%
3,650
Fleet Mix
Total Drilling Rigs = 62
Segment Revenue (all North America):
2008 = $611 mil
2013 = $960 mil
Colombian
Land Rigs
13%
Production
Services
25%
Production
Services
45%
U.S. Land
Rigs
87%
in office since
2003
2009
Drilling
Services
75%
Vertical
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
BALANCE SHEET (mil.)
12/31/13
Cash + Equivalents
$27
PP&E (net)
$938
Goodwill
$32
Total Assets
$1,230
Short-term Debt
$3
Long-term Debt
$500
Total Liabilities
$711
Shareholder Equity
$518
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$119
$8.29
$7.77
49.1%
49.2%
47.8%
n/a
n/a
n/a
Horizontal
Mechanical/Electric
Top Drive
Mechanical
Electric
16
9
37
% of Fleet
26%
15%
60%
Utilization
69%
89%
92%
Rigs
Share Repurchase Authorization (mil $)
Drilling
Services
55%
* Based on a fleet of 62 rigs
Geographic Composition of PES U.S. Land Rig Fleet
Drilling Rigs (1)
Percentage of Fleet
North Dakota
11
18%
West Tx
18
29%
South Tx
14
23%
Utah
7
11%
Appalachia
4
6%
Colombia
8
13%
Total
62
(1) Fleet distribution based on the Company's 2013 10-K
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
55
Company Profile:
Bristow Group, Inc. is a leading provider of helicopter transportation services to the worldwide offshore oil and gas industry with major operations in the United
States, the North Sea, Australia, Brazil, Mexico, Nigeria, and Trinidad.
Bristow Group Inc. - BRS (NYSE)
www.bristowgroup.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$75.98
36
$2,756
0.4
$59.21 - $85.70
1.2%
1.3%
3,465
Management
Bill Chiles, Pres/CEO
Jonathan Bailiff, CFO
in office since
2004
2010
Investor Relations Contact
Linda McNeill
713-267-7622
Share Repurchase Snapshot
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
As of December 31, 2013, the Company operated 345 aircraft (21 of the owned aircraft are held for sale) and unconsolidated affiliates operated an additional
126 aircraft. Contracts are generally based on a two-tier rate structure consisting of a daily or monthly fixed fee plus additional fees for each hour flown. The
Company also provides services to customers on an “ad hoc” basis, which usually entails a shorter notice period and shorter duration typically at higher rates.
On March 26, 2013 the Company was awarded a new contract with the Department of Transport in the U.K. to provide civilian SAR services. The contract has a
phased-in transition beginning in April 2015 and continuing to July 2017, with a total contract length of ten years. BRS has agreed to provide 11 Sikorsky S-92
and 11 Agusta Westland AW189 that will located at ten bases across the U.K.
On February 6, 2014 the Company acquired a 60% interest in the privately owned Eastern Airways International Limited, for $45 million in cash with possible
earn out consideration of up to $10 million to be paid over a three year period. Eastern Airways is a regional fixed wing operator based at Humberside Airport in
England.
$100.0
$100.0
3.6%
BUSINESS SEGMENT BREAKDOWN *
West Africa
17%
$481
$48.60
$47.78
32.1%
32.3%
22.7%
South & Central
America
6%
Europe
36%
North
America
15%
Other
13%
Norway
17%
Nigeria
17%
BRS New Aircraft Additions by FY
40
Ordered
35
Bristow Academy
30
Other International
25
Australia
20
50
West Africa
15
0
North America
200
150
100
5
Europe
CHC
2
4
36
19
26
19
10
8
22
23
17
9
14
7
0
0
Heavy
Nigeria
20%
( as of 12/31/13)
250
Medium
United
Kingdom
25%
Australia
12%
United Kingdom
35%
BRS Current Distribution of Aircraft (12/31/13)
Under option
BRS PHIIK
ERA
United
States
16%
Other
10%
United States
25%
Australia
10%
Europe
41%
West
Africa
20%
2013
* Note: BRS has March year end.
300
Light
Corporate
& Other
Other
International 3%
9%
Australia
12%
Worldwide Helicopter Fleet
of Key Competitors*
Number of Aircraft
North America
23%
Other
2%
2008
Total Revenue: $1,509 million
Total Revenue: $1,013 million
Other
International
5%
Southeast Asia
11%
GEOGRAPHIC BREAKDOWN *
2013
2008
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$323
PP&E (net)
$2,130
Goodwill
$30
Total Assets
$3,277
Short-term Debt
$8
Long-term Debt
$833
Accrued Pension Liabilities
$125
Total Liabilities
$1,514
Minority Interest
$8
Shareholder Equity
$1,763
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
The Company provides helicopters to transport personnel and time-sensitive equipment from onshore bases to offshore drilling rigs, platforms and other
installations. Customers include major integrated, national, and independent oil and gas companies. The segment also includes technical service operations
that provide helicopter repair and overhaul services, engineering and design services, technical manpower support and transmission testing from facilities in the
U.S. and abroad for both Company owned aircraft and third parties. The Company also operates a training business unit, Bristow Academy, that operates
helicopter training facilities in Titusville, FL, Concord, CA, New Iberia, LA, and Gloucestershire, England.
Fixed Wing
20
Small
Medium
40
60
Large
Fixed Wing
80
Training
2
100
Actual
Ordered
Options
Source: Company Filings, HW Research, *excludes training count
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
56
Company Profile:
Hornbeck Offshore is a leading provider of marine services to exploration and production, oilfield service, offshore construction and military customers. Hornbeck has one of
the largest and youngest fleets of OSV's (Offshore Supply Vessels) in the market. As of February 19,2014, the Company owns 55 OSVs and four MPSVs primarily operating
in the GOM, Brazil, and Mexico.
Hornbeck Offshore - HOS (NYSE)
www.hornbeckoffshore.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Employees
$40.41
36
$1,459
0.6
$38.18 - $59.93
-17.9%
1,397
The Upstream portion of their business caters to the deepwater drilling and production market. The Company operates primarily in the GOM, but also has exposure to Latin
America, the Middle East, and W. Africa markets. The Company also contracts some of its OSVs to the U.S. military. OSVs assist in offshore and subsea construction,
maintenance, repair and decommissioning activities. Unlike conventional cargo ships, OSVs are able to carry liquid mud, potable and drilling water, diesel fuel, dry bulk cement
and personnel to and from offshore drilling and production facilities. Included in the company's upstream fleet are four MPSV's (Multi Purpose Service Vessels) and an AHTS
(Anchor Handling Towing Supply) vessel. Approximately 85% of the Company's Upstream fleet is qualified under the Jones Act.
In August 2013, the Company closed the sale of its Downstream segment's tug and tang barge fleet to Genesis Marine, LLC for net cash proceeds of $227.5 million after deal
cost. This segment was reclassified under discontinued operations, and is not included in the data below.
The Company commenced on its fifth OSV newbuild program in late-2011, which also includes the construction of MPSVs. Following the completion of the vessels currently
contracted or approved for construction under this program the expected Upstream fleet will increase to 68 OSVs and nine MPSVs. Of the remaining 18 vessels under
construction all are expected to be DP-2 vessels. The average dayrate for the delivered newbuild OSV vessels has been in the low-to mid $40k/day range .
Management
in office since
Todd Hornbeck, Pres/CEO/Chairman
1997
James Harp, CFO
2001
Investor Relations Contact
James Harp
985-727-6802
Share Repurchase Snapshot
No Authorization in Place
BUSINESS SEGMENT BREAKDOWN
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$439
PP&E (net)
$2,125
Goodwill
$0
Total Assets
$2,834
Short-term Debt
$0
Long-term Debt
$1,064
Total Liabilities
$1,539
Shareholder Equity
$1,295
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$519
$35.89
$35.89
45.1%
45.1%
32.5%
GEOGRAPHIC REVENUE BREAKDOWN
2013*
2008
2008
Total Revenue: $548 million
Total Revenue: $432 million
Downstream
23%
International
24%
International
19%
Upstream
100%
Upstream
77%
Domestic Average Dayrate
Geographic Vessel Breakdown
Middle East
3%
30
Other LA
2%
$30,000
Mexico
12%
25
20
1
15
13
$24,000
17
5
7
4
MPSV
$27,000
Brazil
7%
27
10
0
United
States
76%
United States
81%
* Downstream classified as discontinued operations
Upstream Fleet*
5
2013
300 Class
Active
As of February 19, 2014
Source: Company Reports
Other U.S
9%
4
280 Class
Under Construction
240 Class
$21,000
GOM
67%
200 Class
Inactive
$18,000
2006
As of December 31, 2013
2007
2008
2009
2010
2011
2012
2013
OSV
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
57
Company Profile:
Tidewater Inc. provides offshore supply vessels and marine support services, with approximately 298 vessels, as of December 31, 2013. Operations include towing and
anchor handling of mobile drilling rigs and equipment; transporting supplies and personnel necessary to sustain drilling, workover and production activities; assisting in offshore
construction activities; and a variety of specialized services.
Tidewater Inc. - TDW (NYSE)
www.tdw.com
Share Price (3/19/14)
Shares Out (mil.)
Market Cap (mil.)
Avg Daily Volume (mil.)
52-week range
YTD Return
Div. Yield
Employees
$46.38
50
$2,302
0.7
$45.51 - $63.22
-21.7%
2.2%
7,900
Management
Jeff Platt, CEO
Quinn P. Fanning, CFO
in office since
2012
2008
Investor Relations Contact
Joseph Bennett
713-470-5305
Deepwater Vessels - this segment includes large platform supply vessels and large, high-horsepower (generally greater than 10,000 horsepower) anchor handling towing
supply vessels. Vessels are chartered to customers for use in transporting supplies and equipment from shore bases to deepwater and intermediate offshore drilling rigs,
platforms and other installations. Platform supply vessels, which have large cargo handling capabilities, serve drilling and production facilities and support offshore construction
and maintenance work. The anchor handling towing supply vessels are equipped for and are capable of towing drilling rigs and other marine equipment, as well as setting
anchors for positioning and mooring drilling rigs.
Towing Supply and Supply Vessels - the Company’s largest fleet class by number of vessels includes anchor handling towing supply vessels and supply vessels with
average horsepower below 10,000HP, and platform supply vessels that are generally less than 230 feet. Vessels in this class perform the same functions and services as their
deepwater vessel class counterparts except they are primarily chartered to customers for use in the intermediate and shallow waters.
Crewboats and Utility Vessels - crewboats and utility vessels are chartered to customers for use in transporting personnel and small quantities of supplies from shore bases
to offshore drilling rigs, platforms and other installations.
Offshore Tugs - offshore tugs tow floating drilling rigs; dock tankers; tow barges; assist pipe laying, cable laying and construction barges; and are used in a variety of other
commercial towing operations, including towing barges carrying a variety of bulk and containerized cargo.
Share Repurchase Snapshot (mil $)
Current Authorization
Remaining as of 12/31/13
Potential Buyback of Shares O/S
$200.0
$200.0
8.7%
BALANCE SHEET (mil.)
12/31/13
Cash & Equivalents
$114
PP&E (net)
$3,546
Goodwill
$284
Total Assets
$4,847
Short-term Debt
$0
Long-term Debt
$1,464
Total Liabilities
$2,207
Shareholder Equity
$2,640
Working Capital
Book Value / Share
Tangible Book Value / Share
LT Debt / Capital
Total Debt / Capital
Net Debt / Capital
$465
$53.18
$47.47
35.7%
35.7%
33.8%
Vessel Fleet*
140
120
GEOGRAPHIC REVENUE BREAKDOWN
2008*
2013*
Total Revenue: $1,270 million
Total Revenue: $1,244 million
Offshore tugs
5%
Crew/utility/tugs
10%
Crew/Utility/Tugs
8%
Deepwater vessels
25%
2008*
Other
4%
Other
1%
Deepwater
vessels
49%
Towingsupply/
supply
42%
Towingsupply/supply
60%
2013*
United States
13%
Sub-Saharan
Africa/Europe
46%
International
83%
Other
1%
Americas
26%
Asia/Pacific
15%
Middle
East/N.
Africa
12%
* Note: TDW has March year end.
Sub-Saharan/Europe
Middle East/North
Africa
Asia/Pacific
160
(# of Vessels)
BUSINESS SEGMENT BREAKDOWN
Americas
100
80
Average Dayrate by Region
Average Dayrate by Class
$21,000
$19,789
$27,000
$16,861
$23,000
$14,261
$12,844
$19,000
$18,000
$15,000
$12,000
$26,626
$15,000
60
$13,580
$9,000
40
$11,000
20
$6,000
$7,000
0
Towing-supply
Deepwater Vessels
Other
$5,430
$3,000
2010
* Note: excluding 11 vessels in JV
As of December 31, 2013
2011
2012
2013
Americas
Asia/Pacific
Middle East/N. Africa
Sub-Saharan Africa/Europe
$3,000
2011
Deepwater
2012
Towing-Supply
2013
Other
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
58
Valuation Summary (as of 3/19/14)
Enterprise
Value
(in $mm)
Analyst
REC
LARGE CAP DIVERSIFIED
Baker Hughes Inc.
Halliburton Co.
Schlumberger Ltd.
Weatherford Int'l, Inc.
Average
BHI
HAL
SLB
WFT
BS
BS
BS
BS
SP
SO
SO
SP
$61.52
$56.78
$90.36
$16.74
$61
$65
$110
$18
$26,834
$48,312
$118,050
$12,910
$2.79
$3.16
$4.75
$0.59
$3.95
$3.95
$5.70
$1.05
$4.04
$3.96
$5.72
$1.04
$5.19
$5.20
$6.78
$1.70
$5.07
$5.04
$6.74
$1.56
22.1x
18.0x
19.0x
28.4x
21.9x
15.6x
14.4x
15.9x
15.9x
15.4x
11.9x
10.9x
13.3x
9.8x
11.5x
$0.81
$0.76
$1.23
$0.10
$0.82
$0.75
$1.22
$0.13
$30,015
$53,806
$123,022
$21,243
$3,785 $4,614
$6,185 $7,287
$13,729 $15,407
$2,651 $3,341
LARGE CAP EQUIPMENT
Cameron
FMC Technologies, Inc.
National Oilwell Varco
Tenaris S A
Average
CAM
FTI
NOV
TS
BS
BS
BS
BS
SP
SO
SP
SO
$62.66
$51.21
$73.99
$42.19
$66
$60
$90
$49
$13,584
$12,086
$31,707
$24,903
$3.28
$2.10
$5.52
$2.63
$3.80
$2.63
$6.00
$2.78
$3.81
$2.66
$6.13
$2.75
$4.75
$3.20
$7.05
$3.13
$4.76
$3.27
$6.95
$3.08
19.1x
24.4x
13.4x
16.0x
18.2x
16.5x
19.5x
12.3x
15.2x
15.9x
13.2x
16.0x
10.5x
13.5x
13.3x
$0.70
$0.48
$1.36
$0.67
$0.71
$0.50
$1.39
$0.67
$15,653
$13,078
$31,521
$25,399
$1,460
$958
$4,169
$2,809
SMALL/MID CAP SERVICE
Basic Energy Services
Carbo Ceramics, Inc.
Core Laboratories, N.V.
Frank's International
Key Energy Services
Superior Energy Services
Tetra Technologies
U.S. Silica
Average
BAS
CRR
CLB
FI
KEG
SPN
TTI
SLCA
BH
BH
BH
BH
BH
BH
BH
BH
SP
SP
SO
SP
SP
SP
SP
SO
$25.47
$122.98
$198.97
$24.20
$8.67
$28.35
$12.11
$36.44
$27
$134
$222
$30
$10
$31
$14
$36
$1,083
$2,841
$8,925
$5,009
$1,326
$4,497
$955
$1,951
($0.64)
$3.70
$5.31
$1.54
($0.07)
$1.56
$0.60
$1.47
$0.08
$4.76
$6.23
$1.33
$0.13
$1.56
$0.80
$1.85
$0.07
$4.62
$6.23
$1.34
$0.14
$1.65
$0.83
$1.83
$0.56
$6.70
$7.05
$1.51
$0.37
$2.20
$0.95
$2.34
$0.73
$5.69
$7.15
$1.50
$0.49
$2.40
$1.10
$2.49
nm
33.2x
37.5x
15.7x
nm
18.2x
20.2x
24.8x
24.9x
nm
25.8x
31.9x
18.2x
nm
18.2x
15.1x
19.7x
21.5x
45.5x
18.4x
28.2x
16.0x
23.4x
12.9x
12.7x
15.6x
21.6x
($0.13)
$1.00
$1.44
$0.31
($0.05)
$0.22
$0.06
$0.37
($0.13)
$1.00
$1.45
$0.31
($0.05)
$0.22
$0.05
$0.35
$1,859
$2,747
$9,173
$4,841
$2,065
$5,969
$1,347
$2,245
SMALL/MID CAP EQUIPMENT
Dresser-Rand Group Inc.
Dril-Quip
Exterran Holdings
Forum Energy Technologies
Gulf Island Fabrication
McDermott Int'l
Oceaneering Int'l
Oil States International, Inc.
Average
DRC
DRQ
EXH
FET
GIFI
MDR
OII
OIS
JD
BH
BH
BH
BH
BH
JD
BH
SP
SO
SO
SO
SO
SP
SO
SO
$55.91
$103.98
$39.04
$28.25
$21.41
$8.14
$70.83
$96.92
$65
$135
$44
$34
$29
$9
$105
$117
$4,265
$4,229
$2,575
$2,625
$310
$1,930
$7,664
$5,170
$2.89
$4.09
$1.04
$1.48
$0.50
($0.54)
$3.44
$6.22
$2.65
$5.25
$0.91
$1.72
$1.55
$0.08
$4.05
$5.75
$2.69
$5.38
$1.00
$1.77
$1.19
$0.04
$4.04
$5.67
$3.25
$5.90
$1.26
$2.14
$1.85
$0.37
$4.75
$6.50
$3.28
$6.39
$1.51
$2.18
$1.65
$0.45
$4.73
$6.53
19.3x
25.4x
37.5x
19.1x
42.8x
nm
20.6x
15.6x
25.8x
21.1x
19.8x
42.9x
16.4x
13.8x
nm
17.5x
16.9x
21.2x
17.2x
17.6x
31.0x
13.2x
11.6x
22.0x
14.9x
14.9x
17.8x
$0.17
$1.18
$0.13
$0.39
$0.36
($0.12)
$0.76
$1.41
$0.19
$1.20
$0.14
$0.39
$0.24
($0.08)
$0.80
$1.39
$5,366
$3,845
$4,191
$3,099
$273
$1,967
$7,572
$5,546
128.58
13.2x
15.8x
14.5x
SPX
1,860.77
M. Cap
St
3/31/2014
SYM
S&P 500
Target
Price
HW
3/31/2014
Current
Price
Earnings Per Share
2013 2014E 2014St
117.40
2015E 2015St
2013
Price/Earnings
2014E
2015E
EBITDA (in $mm)
2013
2014E
2015E
2013
EV/EBITDA
2014E
2015E
$5,584
$8,862
$17,277
$4,295
7.9x
8.7x
9.0x
8.0x
8.4x
6.5x
7.4x
8.0x
6.4x
7.1x
5.4x
6.1x
7.1x
4.9x
5.9x
$1,586
$1,173
$4,663
$2,946
$1,867
$1,387
$5,396
$3,229
10.7x
13.7x
7.6x
9.0x
10.2x
9.9x
11.1x
6.8x
8.6x
9.1x
8.4x
9.4x
5.8x
7.9x
7.9x
$233
$172
$359
$447
$274
$1,082
$182
$151
$296
$218
$404
$472
$311
$1,153
$212
$191
$342
$295
$444
$527
$407
$1,334
$221
$230
8.0x
16.0x
25.5x
10.8x
7.5x
5.5x
7.4x
14.9x
12.0x
6.3x
12.6x
22.7x
10.3x
6.6x
5.2x
6.4x
11.7x
10.2x
5.4x
9.3x
20.7x
9.2x
5.1x
4.5x
6.1x
9.8x
8.8x
$413
$250
$606
$282
$37
($18)
$746
$829
$469
$316
$584
$285
$61
$144
$875
$783
$537
$353
$647
$394
$62
$252
$1,009
$848
13.0x
15.4x
6.9x
11.0x
7.3x
na
10.1x
6.7x
10.1x
11.4x
12.2x
7.2x
10.9x
4.4x
13.7x
8.7x
7.1x
9.4x
10.0x
10.9x
6.5x
7.9x
4.4x
7.8x
7.5x
6.5x
7.7x
28.36
Legend:
FS: Focus Stock
SO: Sector Outperform
SP: Sector Perform
SU: Sector Underperform
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
59
Valuation Summary (as of 3/19/14)
SYM
Analyst
REC
Current
Price
OFFSHORE DRILLERS
(1)
Atwood Oceanics
Diamond Offshore
ENSCO International
Hercules Offshore
North Atlantic Drilling
Noble Corporation
Pacific Drilling
Rowan Companies
Transocean Ltd.
Seadrill Limited
Average
ATW
DO
ESV
HERO
NADL
NE
PACD
RDC
RIG
SDRL
DW
DW
DW
DW
DW
DW
DW
DW
DW
DW
SO
SP
SO
SO
SP
SO
SO
SO
SP
SP
$47.04
$45.20
$49.62
$4.70
$8.38
$29.94
$10.38
$32.39
$39.81
$33.52
$75
$70
$80
$11
$11
$45
$15
$48
$60
$50
LAND DRILLERS
(1)
Helmerich & Payne
Nabors Industries
Pioneer Energy Services
Patterson-UTI Energy
Average
HP
NBR
PES
PTEN
DW
DW
DW
DW
SO
SP
SP
SO
$102.84
$23.50
$12.46
$31.03
$110
$25
$10
$32
$11,059
OFFSHORE TRANSPORT
(2)
Bristow Group, Inc.
Hornbeck Offshore
(2)
Tidewater, Inc.
Average
BRS
HOS
TDW
JD
JD
JD
SO
SO
SO
$75.98
$40.41
$46.38
$95
$53
$60
S&P 500
SPX
1,860.77
Target
Price
M. Cap
$3,020
$6,284
Earnings Per Share
2013
2014E 2014St 2015E 2015St
2013
Price/Earnings
2014E
2015E
HW
3/31/2014
St
3/31/2014
Enterprise
Value
(in $mm)
EBITDA (in $mm)
2013
2014E
2015E
2013
EV/EBITDA
2014E 2015E
$5.32
$4.76
$6.16
$0.23
$1.03
$2.88
$0.43
$1.93
$4.11
$2.72
$5.35
$4.10
$6.40
$0.70
$1.00
$3.25
$0.85
$2.75
$4.55
$3.35
$5.62
$4.01
$6.32
$0.60
NA
$3.37
$0.81
$2.71
$4.69
$3.91
$7.80
$6.85
$7.50
$0.80
$1.05
$4.60
$1.45
$4.75
$5.20
$4.20
$7.59
$5.63
$7.01
$0.71
NA
$4.26
$1.34
$4.52
$4.79
$4.42
8.8x
9.5x
8.1x
20.4x
8.1x
10.4x
24.1x
16.8x
9.7x
12.3x
12.8x
8.8x
11.0x
7.8x
6.7x
8.4x
9.2x
12.2x
11.8x
8.7x
10.0x
9.5x
6.0x
6.6x
6.6x
5.9x
8.0x
6.5x
7.2x
6.8x
7.7x
8.0x
6.9x
$0.78
$0.68
$1.22
$0.17
$0.18
$0.68
$0.18
$0.20
$1.25
$0.74
$0.97
$0.66
$1.29
$0.14
NA
$0.69
$0.15
$0.24
$1.05
$0.69
$4,493
$6,681
$16,198
$1,764
$4,356
$13,778
$4,480
$4,940
$21,801
$28,557
$548
$1,131
$2,371
$288
$549
$1,969
$360
$587
$3,405
$2,748
$593
$1,250
$2,503
$446
$576
$2,341
$583
$775
$3,667
$3,489
$840
$1,988
$2,927
$486
$601
$2,904
$873
$1,144
$3,968
$4,244
8.2x
5.9x
6.8x
6.1x
7.9x
7.0x
12.5x
8.4x
6.4x
10.4x
8.0x
7.6x
5.3x
6.5x
4.0x
7.6x
5.9x
7.7x
6.4x
5.9x
8.2x
6.5x
5.3x
3.4x
5.5x
3.6x
7.2x
4.7x
5.1x
4.3x
5.5x
6.7x
5.2x
$6,968
$779
$4,475
$5.64
$0.86
($0.04)
$1.45
$6.50
$1.15
($0.15)
$1.35
$6.19
$1.16
$0.04
$1.39
$7.00
$1.60
($0.08)
$1.65
$6.75
$1.71
$0.16
$1.69
18.2x
27.3x
nm
21.4x
22.3x
15.8x
20.4x
nm
23.0x
19.7x
14.7x
14.7x
nm
18.8x
16.1x
$1.50
$0.23
($0.05)
$0.29
$1.47
$0.20
($0.05)
$0.30
$10,672
$10,387
$1,254
$4,918
$1,409
$1,661
$180
$919
$1,589
$1,750
$223
$913
$1,680
$1,936
$232
$983
7.6x
6.3x
7.0x
5.4x
6.5x
6.7x
5.9x
5.6x
5.4x
5.9x
6.4x
5.4x
5.4x
5.0x
5.5x
$2,756
$1,459
$2,302
$4.27
$2.17
$3.56
$5.30
$3.05
$5.10
$5.40
$3.32
$4.95
$6.15
$4.75
$6.25
$6.68
$4.94
$5.96
17.8x
18.6x
13.0x
16.5x
14.3x
13.2x
9.1x
12.2x
12.4x
8.5x
7.4x
9.4x
$1.16
$0.33
$0.60
$1.22
$0.52
$0.65
$3,283
$2,084
$3,652
$431
$257
$411
$541
$333
$541
$602
$453
$624
7.6x
8.1x
8.9x
8.2x
6.1x
6.3x
6.7x
6.4x
5.5x
4.6x
5.9x
5.3x
128.58
13.2x
15.8x
14.5x
$11,590
$751
$2,020
$7,609
$2,253
$4,024
$14,348
$15,729
117.40
28.36
Footnotes:
(1)
September FY13, FY14, and FY15
(2)
March FY14, FY15 and FY16
Legend:
FS: Focus Stock
SO: Sector Outperform
SP: Sector Perform
SU: Sector Underperform
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
60
Paul E. Pursley
Head of Howard Weil
Mary Alice Allen
Energy Conference Coordinator
Larry Benedetto
Legal and Compliance
Appendix A: Important Disclosures
(504) 582-2459
(504) 582-2545
(504) 582-2655
Sales
Bennett H. H. Biever
(504) 582-2558
Gary H. Brewster
(504) 582-2525
Charles A. Caplinger, IV
(504) 582-2557
Jason R. Conway
(504) 582-2657
Martin R. de Laureal
(504) 582-2566
Gordon B. Gsell, Jr.
(713) 393-4549
Lauren G. Habetz
(504) 582-2526
Cooper A. Manning
(504) 582-2556
Emily M. Morrison
(504) 582-2533
Richard C. Moss
(504) 582-2565
Andrew B. Rosenberg
(504) 582-2561
William M. Russell
(504) 582-2623
Trading
William F. Brennan
(504) 582-2612
Ryan K. deJong
(504) 582-2616
Kyle Graffagnini
(504) 582-2612
Julie A. Guarino
(504) 582-2612
James H. Lee, Jr.
(504) 582-2612
Blair F. Scanlon
(504) 582-2612
Howard Weil is a division of Scotia Capital (USA) Inc. - a member of FINRA, NYSE and SIPC. The Howard Weil trademark represents the energy equity
business of Scotiabank in the U.S.
We, Jonathan Donnel, K. Blake Hancock, Blake Hutchinson, Bill Sanchez and Dave Wilson, certify that the views expressed in this research report
accurately reflect our personal views about the subject securities or issuers; and we, Jonathan Donnel, K. Blake Hancock, Blake Hutchinson, Bill
Sanchez and Dave Wilson, certify that no part of our compensation was, is, or wll be directly or indirectly related to the specific recommendation or
views contained in this research report.
This report was prepared by a Howard Weil Research analyst. Howard Weil is a Division of Scotia Capital (USA) Inc., a US Registered broker-dealer and
a member of the New York Stock Exchange and FINRA. Howard Weil Research analysts focus primarily on the US Energy Sector. Scotia Capital (USA)
Inc. is a wholly owned subsidiary of Scotia Capital Inc., a Canadian registered investment dealer, and indirectly owned by The Bank of Nova Scotia.
Scotiabank, together with “Global Banking and Markets”, is a marketing name for the global corporate and investment banking and capital markets
businesses of The Bank of Nova Scotia and certain of its affiliates in the countries where they operate, including Scotia Capital Inc. and Scotia Capital
(USA) Inc. In addition to Howard Weil Research, Scotiabank publishes and distributes Scotiabank Global Banking and Markets Equity Research
(“Scotiabank Research”), which is a separate research publication. Howard Weil Research Analysts and Scotiabank Research Analysts are independent from one another and their respective coverage of issuers are different. In addition, because they are independent from one another, Howard Weil
Research Analysts and Scotiabank Research Analysts may have different opinions on the short-term and long-term outlooks of local and global markets and economies.
This report was prepared for general circulation and does not provide investment recommendations specific to individual investors. As such, the financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions based upon
their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider
Howard Weil’s research and/or ratings as only a single factor in making their investment decisions. Past performance of the financial instruments
recommended in this report should not be taken as an indication or guarantee of future results.
All pricing of securities in reports is based on the closing price of the securities’ principal marketplace on the night before the publication date, unless
otherwise explicitly stated.
Equity research reports published by Scotiabank, Global Banking and Markets are available electronically via: Bloomberg, Thomson Financial/First Call
- Research Direct, Reuters, Capital IQ, and FactSet. Institutional clients with questions regarding distribution of equity research should contact us at 1800-208-7666.
Scotia Capital (USA) Inc. is a multidisciplined financial services firm that regularly intends to seek investment banking business with companies covered in its research reports, and thereby seeks to receive compensation from these companies for services including, but not limited to, acting as an
underwriter in an offering or financial advisor in a merger or acquisition, or serving as a placement agent for private transactions. As a result, investors
should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. The information contained herein has been
prepared from sources believed reliable, but is not guaranteed by us and is not a complete summary or statement of all available data, nor is it considered an offer to buy or sell any securities referred to herein. No investments or services mentioned are available in the European Economic Area to
private customers or to anyone in Canada other than a Designated Institution.
Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs
of individual investors. Employees of Howard Weil Incorporated or its affiliates may, at times, release written or oral commentary, technical analysis or
trading strategies that differ from the opinions expressed within.
The equity research analyst(s) responsible for the preparation of this report, receive compensation based upon various factors, including effectiveness
of research recommendations, client feedback, competitive factors and overall firm revenues, which may include revenues from, among other business units, Institutional Equities and Investment Banking.
This email may be considered advertising under federal law. If you decide not to receive Howard Weil products and services, updates, and information
via email, please reply to howardweil@howardweil.com and ask to be removed.
Additional information is available upon request from:
Howard Weil, A division of Scotiabank
1100 Poydras Street, Suite 3500
New Orleans, LA 70163
1.800.322.3005
H O W A R D W E I L A d i v i s i o n o f S c o t i a b a n k | 2014 Energy Conference
61