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8-K - FORM 8-K - Vantage Drilling COd800358d8k.htm
Vantage Drilling Company
2014 Johnson Rice Energy Conference
New Orleans, Louisiana
October 1, 2014
Exhibit 99.1


Forward-Looking Statements
Some of the statements in this presentation constitute forward-looking statements.  Forward-looking statements relate to
expectations, beliefs, projections, future plans and strategies,
anticipated events or trends and similar expressions concerning
matters that are not historical facts.  The forward looking statements contained in this presentation involve risks and
uncertainties as well as statements as to:
our limited operating history;
availability of investment opportunities;
general volatility of the market price of our securities;
changes in our business strategy;
our ability to consummate an appropriate investment opportunity within given time constraints;
availability of qualified personnel;
changes in our industry, interest rates, the debt securities markets or the general economy;
changes in governmental, tax and environmental regulations and similar matters;
changes in generally accepted accounting principles by standard-setting bodies; and
the degree and nature of our competition.
The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into
account all information currently available to us.  These beliefs, assumptions and expectations can change as a result of many
possible events or factors, not all of which are known to us or are within our control.  If a change occurs, our business, financial
condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements.


Company Overview
Vantage Offices
4 Jackups
3 Drillships, plus 1 under Construction
NYSE
VTG
Market
Cap
$434
Million
Book
Value
$545
Million
Enterprise
Value
$3.3
Billion
Employees
>1,300


Highlights . . .
Repaid $57 million of debt in Q2 and $30 million
in Q1; on target for approximately $50 million
reduction per quarter for the balance of 2014
Ultra-Deepwater Fleet fully contracted through
2015
Ultra-Deepwater drillship, Cobalt Explorer, under
construction will provide continued growth
through 2016
Managing two Ultra-deepwater new build ship
construction projects for customer at DSME
shipyard in Korea


Strategic Overview
Vantage was founded with a vision of
bringing the best people together with
the highest specification, modern fleet in
the offshore drilling industry.
With exceptional operating performance
and a focus on service, we have built an
excellent portfolio of customers who
have provided us with significant
backlog and repeat business.
In recent years, we have focused on
improving our financial structure,
reducing our borrowing costs, and now
de-levering the balance sheet.
Financial
Structure
Long Term
Customer
Relationships
High    
Specification
Assets
Experienced
People


Our People
Industry leading safety record
Lost time
incident rate in 2013 and 2012 were .32 and
.00, respectively, as we completed
approximately 2.5 million and 2.2 million
man-hours
Jack-up fleet has achieved approximately
99%
productive
time
over
the
first
60
months
of
operations.
Each
jack-up
construction project was completed on-time
and on budget
Our exceptional operating experience and
technical expertise has resulted in
additional
business
opportunities
as
Vantage
has
been
selected
to
manage
3
rd
party shipyard projects and rig operations
Our senior management team
averages over 30 years of
Industry experience
The cornerstones of our
corporate culture are safety and
professionalism


High Specification Assets
Jackup fleet has achieved approximately 99% productive
time for the first 60 months of operations
High-specification drillships combined with deep in-house
operations and technical teams, have been the key to
awards to Vantage of high-profile, complex, ultra-
deepwater projects
Cobalt
Explorer,
a
7
th
generation,
dual-activity
UDW drillship equipped with (2) seven-ram BOP’s
and 10,000 feet of riser, scheduled for delivery in
2015, will be our most technically advanced
drillship
We have built a fleet of new, premium
assets that our customers demand now and
for the future.


Market Conditions
Deliveries of newbuild rigs have saturated the
marketplace and are negatively impacting
pricing.
Because of ready availability of rigs (from added
supply), customers are not contracting rigs as
far in advance as they had previously.
Shift in global spending to national oil
companies increases contracting time.
North American and European E&P companies
facing wave of shareholder activism impacting
capital allocations (dividends & share
repurchases versus E&P spending).
Near Term


Market Conditions
Global demand for oil & gas continues growth
driven by emerging economies with long-term
forecast for increase E&P spending.
Success in deepwater and ultra-deepwater
exploration should provide the map to future
growth as developmental drilling increases rig
demand.
Customers prefer high-specification rigs due to
greater reliability and performance.  With 149
floaters and 309 jackups older than 25 years of
age, there is a significant opportunity for rig
replacement.
Continued Growth Cycle
Continued E&P Spending Growth
Longer Term


Strong Customer Backlog
IOC
17%
NOC
79%
$2.5 Billion of backlog with
strong customer base:
4%
We have focused our marketing efforts on
customers with long-term drilling requirements
with the opportunity for long-term contracts


Fleet Status
Ownership
2013
2014
2015
Rig
%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Jackups
Emerald Driller
100%
$130,000
$156,000 (2 years)
Sapphire Driller
100%
$120,000
$165,000 (net)
$183,000 (18 months)
Aquamarine Driller
100%
$153,000
$155,000
Topaz Driller
100%
$155,000
$155,000
$152,500 (1 well)
$155,000
Drillships
Platinum Explorer
100%
$590,000 (5 years)
Titanium Explorer
(2)
100%
$585,000 (8 years)
Tungsten Explorer
100%
5 wells (175 days)
60 days
$641,000 (2 years firm)
Cobalt Explorer
100%
Contracted
Option
Letter of Award;
Commisioning /
Construction
Contract
subject to conditions
Mobilization
Notes:
(2) The average drilling revenue per day for the Titanium Explorer includes the achievement of the 12.5% bonus opportunity.
(1) Average drilling revenue per day is based on the total estimated revenue divided by the minimum number of days committed in a contract.  Unless otherwise
noted, the total estimated revenue includes mobilization and demobilization fees and other contractual revenues associated with the drilling services.
Customer backlog of approximately $2.5
Billion provides visibility to cash flows


Significant Growth Achieved
Emerald Driller
Sapphire Driller
Aquamarine Driller
Topaz Driller
Platinum Explorer
Titanium Explorer
Tungsten Explorer
December 2008
July 2009
September 2009
December 2009
November 2010
April 2012
July 2013
-
$200.0
$400.0
$600.0
$800.0
2009
2010
2011
2012
2013
Revenue
$75.0
$150.0
$225.0
$300.0
Income from
Operations
$-
$75.0
$150.0
$225.0
$300.0
$375.0
2009
2010
2011
2012
2013
Adjusted EBITDA
$
$111.50
$278.4
$485.8
$471.5
$732.1
$18.4
$46.9
$110.2
$146.6
$256.9
$81.8
$176.0
$216.0
$363.5
$30.2
$-


Progress on Financial Targets
1H 2014, with our 7 operational assets all
working, we reported record Revenue,
EBITDA and Income from Operations.
We have made substantial progress towards
achieving our Net Debt to EBITDA goal of
5.0X.
EBITDA and EPS will be significantly impacted
by mobilizations and potential client
requested upgrade projects:
We expect to be compensated for all of
the days and upgrade costs.
Should not impact our debt paydown
objectives.
$(200.0)
$-
$200.0
$400.0
$600.0
Strong projected EBITDA and Earnings Are
Contracted
Contracted
Uncontracted
Adj. Net Income
Actual
Long Term Contracts provide visibility to cash flow to support our
leverage reduction objectives
Projected


Debt Maturities and Leverage
No significant debt maturities
until 2017
Cash flow from operations
projected to cover all debt
service through 2018
Increased leverage over last 2
years has been to fund
deployment of Titanium
Explorer
and Tungsten
Explorer
As current fleet is all working,
leverage will rapidly decline –
on target for yearend 2014
leverage of  5.0 X EBITDA
Debt Maturities
2011
2012
2013
Long-term Debt
$1,246.4
$ 2,710.6
$ 2,852.1
Long-term Debt / Long-term EBITDA
7.1 x
12.6 x
7.8 x
Long-term Debt / 4
QTR EBITDA (annualized)
5.5 x
th


Appendix
Historical Financial


Statement of Operations
($ in millions)
December 31,December 31,
December 31,
Six Months Ended
2011
2012
2013
30-Jun-14
REVENUE
Contract Drilling Services
366.8
$   
423.8
$   
666.2
$      
413.2
$             
Management Fees
13.7
      
6.6
        
14.6
          
10.6
                 
Reimbursables
105.3
     
41.0
      
51.3
          
28.4
                 
Total revenues
485.8
     
471.4
     
732.1
        
452.2
               
OPERATING COSTS AND EXPNSES
Operating Costs
284.9
     
230.1
     
335.9
        
199.7
               
General and Administrative
26.3
      
26.0
      
32.7
          
16.5
                 
Depreciation
64.5
      
68.7
      
106.6
        
63.3
                 
Total operating expenses
375.7
     
324.8
     
475.2
        
279.5
               
INCOME FROM OPERATIONS
110.1
     
146.6
     
256.9
        
172.7
               
OTHER INCOME (EXPENSE)
Interest Income
0.1
        
0.1
        
0.2
           
0.0
                   
Interest Expense and Financing
(154.9)
   
(149.1)
   
(214.2)
       
(108.8)
              
Loss on Debt Extinguishment
(25.2)
     
(124.6)
   
(98.3)
        
(1.5)
                 
Other Income
1.3
        
0.6
        
1.7
           
0.2
                   
Total other expenses
(178.7)
   
(273.0)
   
(310.6)
       
(110.0)
              
INCOME (LOSS) BEFORE TAX
(68.6)
     
(126.4)
   
(53.7)
        
62.7
                 
INCOME TAX PROVISION
11.4
      
18.9
      
28.1
          
27.7
                 
Net income (loss)
(80.0)
$   
(145.3)
$  
(81.8)
$       
35.0
$               
INCOME (LOSS) PER SHARE
Basic
(0.28)
$  
(0.50)
$  
(0.27)
$      
0.11
$              
Diluted
(0.28)
$  
(0.50)
$  
(0.27)
$      
0.11
$              
PRO FORMA INCOME (LOSS) PER SHARE
(0.19)
$  
(0.07)
$  
0.05
$       
EBITDA
174.7
$  
215.3
$  
363.5
$     
236.0
$           
LTM EBITDA
174.7
$  
215.3
$  
363.5
$     
448.8
$           
Net income and cash flow
from operations is increasing
significantly for Vantage as
the Tungsten Explorer
commenced operations in
September 2013.


Balance Sheet
The Debt to EBITDA leverage
will continue to reduce as
Vantage realizes full year
operations for its completed
fleet and executes on debt
retirement plans.
($ in millions)
December 31,
December 31,
December 31,
June 30,
2011
2012
2013
31-Mar-14
Cash and cash equivalents
117.0
$     
506.2
$     
56.8
$        
89.0
$               
Trade receivables
100.9
119.5
168.7
154.7
Inventory, prepaids & other
41.3
63.1
79.5
79.8
Total current assets
259.2
688.8
305.0
323.4
Property and Equipment
1,805.1
2,717.5
3,190.6
3,148.4
Other assets
58.2
123.9
132.5
115.0
Total assets
2,122.5
$  
3,530.2
$  
3,628.1
$   
3,586.8
$         
Accounts payable and accruals
150.2
$     
174.4
164.3
158.9
Current maturities
-
31.2
63.5
53.5
Total current liabilities
150.2
205.6
227.8
212.4
Long-term debt
1,246.4
2,710.6
2,852.1
2,782.0
Other long-term liabilities
29.8
45.5
42.8
47.6
Shareholders equity
696.1
568.5
505.4
544.7
Total liabilities and shareholders' equity
2,122.5
$  
3,530.2
$  
3,628.1
$   
3,586.8
$         
Long-term Debt/LTM EBITDA
7.1
X
12.6
X
7.8
X
6.2
X
Long-term Debt/Run Rate EBITDA(1)
5.9
X
(1) Based on first six months EBITDA annualized


EBITDA Reconciliation
($ in millions)
December 31,
December 31,
December 31,
2011
2012
2013
30-Jun-14
Net Income (Loss)
(80.0)
$  
(145.3)
(81.8)
$      
35.0
$              
Interest Expense, Net
154.8
149.0
214.0
108.7
Income Tax Provision
11.4
18.9
28.1
27.7
Depreciation
64.5
68.7
106.6
63.3
Loss on Debt Extinguishment
25.2
124.6
98.3
1.5
Other
(1.2)
(0.6)
(1.7)
(0.2)
EBITDA
174.7
215.3
363.5
$    
236.0
$          
Six Months Ended