Seatankers Investor Day
M a r c h 2 0 2 4
Disclaimer
This presentation contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including NorAm management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although NorAm believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, NorAm cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions. The Company has not taken any steps to verify any of the information contained herein. No representation or warranty (express or implied) is made as to any information contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements. The Company does not accept any liability whatsoever arising directly or indirectly from the use of the materials.
The Presentation may contain certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. Any such forward-looking statements are solely opinions and forecasts reflecting views as of the date set out on the cover of these materials, which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. No liability for such statements, or any obligation to update any such statements or to conform such statements to actual results, is assumed. Furthermore, information about past performance given in this Presentation is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance.
This presentation and related materials speaks only as of the date set out on the cover, and the views expressed are subject to change based on a number of factors. The Company does not undertake any obligation to amend, correct or update the materials or to provide any additional information about any matters described herein, but reserves the right to amend, correct or update the materials and provide additional information.
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NorAm Drilling - A Dividend Legend In The Making
NorAm Drilling in brief | Selected customers |
11 Fully upgraded Ultra Super Spec rigs
100% Permian focus → 60% of US oil reserves
Industry-low cost break-even level
Permian basin has the largest energy reserves in the U.S
Debt free and full payout strategy with 17% yield(1)
U.S. lower-48 |
Note: 1) Based on closing price of NOK 37.5 as of March 7, 2024
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What Is An Ultra Super Spec Rig?
NorAm Drilling has a fleet of fully upgraded rigs with a track record of drilling the longest wells (25,000+ feet) in the Permian
25,000 ft racking | |||||||||||||||||||||||
capacity of 5.5" pipe | |||||||||||||||||||||||
High torque | |||||||||||||||||||||||
top drive | |||||||||||||||||||||||
*First grid transformer installed in | |||||||||||||||||||||||
June 2023 | |||||||||||||||||||||||
Crew houses | Toolpusher | ||||||||||||||||||||||
AC generators | |||||||||||||||||||||||
house | |||||||||||||||||||||||
Operator crew | or grid | ||||||||||||||||||||||
quarters | transformer | ||||||||||||||||||||||
3x mud | |||||||||||||||||||||||
pumps | 4x engines | ||||||||||||||||||||||
Walking | |||||||||||||||||||||||
systems for | |||||||||||||||||||||||
High torque iron | |||||||||||||||||||||||
multiple wells | |||||||||||||||||||||||
roughneck | |||||||||||||||||||||||
Casing | per pad | ||||||||||||||||||||||
Catwalk for efficient | |||||||||||||||||||||||
handling of drill pipe | |||||||||||||||||||||||
and casing |
Pad
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The Permian Basin Is "The Place To Be" For Onshore Drillers
By far the most producing region in the US | Permian sitting on the largest proved reserves(1) | ||
Oil and gas shale basin | |||
U.S. | Permian share of Total US Rig Count | 19% of proved | ||
U.S. reserves | |||
19% | |||
60% | BAKKEN | |||||||
ANTRIUM | ||||||||
50% | ||||||||
40% | ||||||||
30% | ||||||||
20% | WOODFORD | |||||||
10% | MONTEREY | |||||||
2012 | 2014 | 2016 | 2018 | 2020 | 2022 | 2024 | PERMIAN |
Permian | Major E&P operators
EAGLE FORD
60%
17%
60% of proved U.S. reserves
17% of proved U.S. reserves
Note: 1) Crude oil and lease condensate proved reserves | |
Source: U.S. Energy Information Administration, S&P Global, Bloomberg | 5 |
NorAm Is The #1US Land Driller By Drilling Efficiency
Feet/day
1,476 | 1,439 | 1,386 | |||||||
1,357 | 1,299 | ||||||||
1,281 | |||||||||
1,266 | 1,220 | ||||||||
1,174 | |||||||||
NorAm | Ensign | Nabors | Helmerich | Patterson- | Precision | Unit Drilling Akita Drilling Latshaw |
Drilling | & Payne | UTI | Drilling | Drilling |
Source: Enverus Oilfield Pulse Oct 2023 (Q2 2023)
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And The Undisputed #1In Returning Cash To Shareholders
103%
Dividends and buybacks in % of FY23 EBITDA
48% | ||||
25% | ||||
5% | 0% | 0% | ||
0% | ||||
NorAm Drilling | Helmerich | Patterson UTI Precision Drilling Ensign Energy | Nabors | Independence |
& Payne | Industries | Contract Drilling |
Source: Company financials
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Thanks y'all!
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Disclaimer
NorAm Drilling Company AS published this content on 08 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 March 2024 13:26:03 UTC.