Operational and Financial Overview
ENSCOROWAN
$K/day
500
400
High-Quality Fleet Provides Meaningful
Cash Flow in Market Recovery
Historical Average Day Rates
Illustrative Annual EBITDA1 Contribution from
UHE or Modern High-Specification Assets Only
EBITDA in $ millions
Floater Dayrates
$450K/day
$250K
$350K
$450K
927
1,748
2,570
300
200
100
$250K/day
$125K/day
$75K/day
0
2002
2004
2006
2008
2010
2014
2012
2016
2018
Floaters
Jackups
Jackup Dayrates
$125K
$100K
$75K
1,239
2,060
2,882
1,551
2,373
3,194
Based on historical build costs, an average day
rate of $490K for floaters and ~$160K for
jackups would be needed to meet a 15%
unlevered internal rate of return²
Since 2000, the average build costs for floaters was
~$665 million, while jackups averaged ~$200 million
Source: IHS Markit RigPoint
Company's modern high-
specification assets can generate
meaningful cash flow for debt
service and capital commitments in
normalized day rate environment
1 Fleet includes 25 6G+ floaters and 38 jackups < 20 years of age or ultra-harsh environment capable; excludes assets owned by ARO Drilling. EBITDA calculated using illustrative dayrates and a 90% utilization assumption
less average opex of $150K/day for a floater and $50K/day for a jackup over 365 days.
2Simplified discounted cash-flow analysis assumes 35-year useful life, average opex of $150K/day, $5 million of annual maintenance costs, $10 million of survey costs every five years for floaters; and 30-year useful life,
average opex of $50K/day, $2.5 million of annual maintenance costs, $7 million of survey costs every five years for jackups; and 90% operational utilization. Analysis excludes debt service costs, shore-based support costs,
taxes, and assumes no residual value at the end of the asset life.
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