EX-99.1 2 d937417dex991.htm EX-99.1 EX-99.1
Vantage Drilling Company
Vantage Drilling Company
RBC Capital Markets Global Energy and Power Executive Conference
New York
June 1, 2015
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.

Vantage Drilling
Company Overview

Company Overview
Vantage Offices
4 Jackups
3 Drillships, plus 1 under Construction
NYSE
VTG
Market Cap
$115 Million
Book Value
$579 Million
Enterprise Value  $2.6 Billion
Employees
>1,300

Market Conditions Have Significantly
Depressed Corporate Debt and Equity
Reality
Perception
•
The market for offshore rig services (even modern, efficient rigs) is severely depressed and it is believed
that a recovery to more normal conditions will take several years.
•
Vantage has a fleet comprised of all modern, efficient rigs and is currently fully contracted.  The three
UDW drillships have about 9 years of combined backlog with the first contract expiration to occur at
year end 2015.
•
Backlog of $1.9 billion is equivalent to 2.7x run
rate revenues vs. debt of $2.6 billion and assets
of $3.4 billion
•
Market value of debt is only about $1.9 billion –
reflecting high risk
•
Market value of equity is less than 25% of book
value
•
In the last 6 quarters, Vantage has retired
approximately $310 million of debt.  2015
EBITDA should be similar to that of 2014 and
provide further free cash flow for debt reduction.
•
2016/2017 recontracting risk makes debt
retirement highly risky.
•
Debt profile is reasonable with limited maturities
and puts until late 2017
•
$2.2 billion (of $2.6 billion total) debt matures in
2019 or later
•
Is market recovery necessary before late 2017?

Vantage Drilling
Strategic Focus

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.
We believe our strategy provides the
best opportunity to weather a prolonged
market downturn.
Experienced
People
Financial
Structure
Long Term
Customer
Relationships
High    
Specification
Assets

Our People
•
Industry
leading
safety
record
–
Lost
time
incident
rate
in
2014
and
2013
were
.35
and
.32,
respectively,
as
we
completed
approximately
2.8
million
and
2.5
million
man-hours
•
Jack-up
fleet
has
achieved
approximately
99%
productive
time
over
the
first
72
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

Vantage Drilling
High Specification Assets

High Specification Assets
Cobalt
Explorer,
a
7
th
generation,
dual-activity
UDW drillship equipped with (2) seven-ram BOP’s
and 10,000 feet of riser, 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.

Fleet Status
Customer backlog of approximately $1.9
Billion provides visibility to cash flows
2014
2015
2016
Rig
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Jackups
Emerald Driller
$156,000 (2 years)
Sapphire Driller
$183,000 (18 months)
$140,000 (6 months)
Aquamarine Driller
$155,000
$130,000
Topaz Driller
$155,000
$152,500 (1 well)
$155,000
2015 extension
2016 4 well options
Drillships
Platinum Explorer
$590,000 (5 years)
Titanium Explorer
(2)
$585,000 (8 years)
Tungsten Explorer
5 wells
60 days
$641,000 (2 years firm)
Cobalt Explorer
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.

Strong Customer Backlog
We have focused our marketing efforts on
customers with long-term drilling requirements
with the opportunity for long-term contracts

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.
•
The “collapse”
in oil prices has led to drastic
capital spending reductions for offshore drilling
(15-30%)
•
Numerous older and lower-specification rigs
have recently been stacked and are not being
actively marketed.  Many of these will likely
never return to service.  For the first time in
years, rigs are actually being scrapped.
Considerations –
•
By the end of 2016,
How many rigs will have been cold
stacked or scrapped?
Even with new rig deliveries, will the
global fleet of remaining workable
rigs be at the level of 2010/2011?
How soon and how much will
Petrobras demand be a major
factor?
What will be the price of oil?
Perennial growth in oil consumption,
coupled with a double-digit
reduction in E&P spending will
produce higher oil prices.
The recovery may be much faster
than generally expected from initial
uptick in rig demand..

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

Debt Maturities and Leverage
•
No significant debt maturities
until 2017
•
We have retired approximately
$310 million of debt over the
last 6 quarters; saving $18.1
million per year of cash interest
As of December 31,
March 31,
2015
2011
2012
2013
2014
Long-term Debt
$1,246.4
$2,710.6
$2,852.1
$2,632.8
$2,559.5
Long-term Debt / LTM EBITDA
7.1 x
12.6 x
7.8 x
6.3x
6.2x
Long-term
Debt
/
4
th
QTR
EBITDA
(annualized)
5.7x

Vantage Drilling
Questions and Answers