Forward-Looking Statement

Transcription

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2 Forward-Looking Statement The statements described in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of Forward-looking statements which could be made include, but are not limited to, statements involving prospects for the Company, expected revenues, costs and results of operations, market outlook, contract backlog, operational performance, rig demand, dayrates, rig reactivations, major rig upgrades, newbuild and acquisition opportunities, uses of excess cash including stock buybacks, debt reduction, fleet marketing efforts, rig mobilizations and planned shipyard programs. Such statements are subject to numerous risks, uncertainties and assumptions, including but not limited to, uncertainties relating to the level of activity in offshore oil and gas exploration and development, exploration success by producers, oil and gas prices, rig demand, drilling industry market conditions, possible delays or cancellation of drilling contracts, work stoppages, operational or other downtime, the Company's ability to enter into and the terms of future contracts, the availability of qualified personnel, labor relations, future financial results, operating hazards, political and other uncertainties inherent in non-u.s. operations (including exchange and currency fluctuations), war, terrorism and cancellation or unavailability of insurance coverage, the impact of governmental laws and regulations, the adequacy of sources of liquidity, the effect of litigation and contingencies and other factors discussed in the Company's most recent Form 10-K for the year ended December 31, 2004 and in the Company's other filings with the SEC, which are available free of charge on the SEC's website at Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements. All non-gaap financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the Company s web site at 2

3 Company Overview Uniquely positioned in the best business cycle seen in 30 years High-Specification Floaters Fleet industry leader Other Floaters largest fleet, positioned in key market sectors Jackups Fleet focused in Asia and Mideast Record revenue backlog 3

4 Revenue Backlog By Year at January 31, 2006 (1) $3.2 $3.3 Total Revenue Backlog (1) : $11.5 Billion $1.2 $0.9 $2.6 $0.4 $2.4 $2.0 $2.2 $1.5 $0.2 $1.3 $0.8 $0.1 $0.7 $0.1 $ High-Specification Fleet Other Fleet 4 (1) Calculated by multiplying the contracted operating dayrate by the firm contract period from January 31, 2006 forward. Reflects signed contracts only. Revenue backlog excludes revenues from mobilization, demobilization, contract preparation and customer reimbursables. Backlog is indicative of the full contractual dayrate, which could vary due to rig downtime.

5 Company Overview 5 Uniquely positioned in the best business cycle seen in 30 years High-Specification Floaters Fleet industry leader Other Floaters largest fleet, positioned in key market sectors Jackups Fleet focused in Asia and Mideast Record revenue backlog Additional contracts pending (LOIs) total approximately 48 rig years and $3.7 billion in revenues Strong balance sheet Significant debt reduction over past five years Excellent cash flow generation through the cycle Internal growth opportunities Rig reactivations and upgrades New rig construction and/or acquisitions $2 billion stock repurchase authorization

6 High-Specification Floaters Fleet Market Sector Comments Deepwater capable rigs remain in tight supply Further improvement in dayrates expected Especially Other Deepwater units Customers interested in longer-term contracts Supports longer-duration cycle Growing interest in new construction Majors, Independents and NOCs Numerous locations 6

7 Quarterly Dayrate Progression New Contracts Signed Deepwater Floaters Fleet US$ Avg. Qtrly Dayrate Deepwater Nautilus 12 mos. Deepwater Pathfinder 26 mos. 400,000 Discoverer Spirit Sedco Energy 18 mos. 24 mos. Deepwater Expedition Discoverer Spirit 24 mos. 36 mos. 350,000 Deepwater Horizon Deepwater Millennium 60 mos. 24 mos. Deepwater Millennium Deepwater Nautilus 36 mos. 24 mos. 300, , , , ,000 50,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Fifth-Gen. DW Floaters Other DW Floaters

8 Percent of Fleet Under Contract Commitments (1) Fifth-Generation (13 Rigs) 96% 94% 59% Other Deepwater (17 Rigs (2) ) 69% 51% 50% Other High-Spec. (4 Rigs) 90% 75% 75% Committed Uncommitted High-Specification Floaters Fleet (34 Rigs (2) ) 18% 82% 30% 70% 44% 56% 8 Effective January 31, 2006 (1) Excludes letters of intent (2) Includes two Sedco-700 series rig upgrade commitments

9 High-Specification Floaters Fleet Contract Status Horizon Spirit M illennium Expedition Fifth- Generation Naut ilus Discovery Pathfinder Firm Priced Option Frontier Sedco Express Deep Seas Enterprise Sedco Energy Cajun Express Sedco Upg # 2 Navigator Sedco 710 Sedco Upg # 1 Seven Seas Other Deepwater Sedco 707 D534 Peregrine I Leader Rather Richardson Cunningham M arianas SovEx Jack Bates M.G. Hulme Sedco 709 Other High-Spec Arctic Polar Pioneer P.B Loyd 9 Goodrich At January 31,

10 Strong Geology With Expanding Activity Supports Deepwater Sustainability Established Gulf of Mexico Lease expirations driving short-term demand Brazil Exploration success Increased activity from int l operators 10 Established

11 Strong Geology With Expanding Activity Supports Deepwater Sustainability Developing Gulf of Mexico Ultra-deep well bores - 34,000+ feet Taxing capabilities of Fifth- Generation Deepwater fleet 11 Established Developing

12 Strong Geology With Expanding Activity Supports Deepwater Sustainability Frontier Mexico Deepwater reserves - 36 billion bbls + Orphan Basin Largest undrilled geological structure in the world 12 Established Developing Frontier

13 Other Floaters Fleet Market Sector Comments Customer demand remains strong in all regions Fleet largely committed through 2006 Dayrates continuing to increase Average contract length one year Two reactivations underway with attractive contracts Two additional reactivations possible in

14 Quarterly Dayrate Progression New Contracts Signed US$ Avg. Qtrly Dayrate 250, ,000 Other Floaters Fleet First Quarter 2006 Contract Signings To Date Sedco 711 $283,000 J.W. McLean $250, , ,000 50,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Other Floaters Fleet 14

15 Percent of Fleet Under Contract Commitments (1) Committed Uncommitted High-Specification Floaters Fleet (34 Rigs (2) ) 18% 82% 30% 70% 44% 56% Other Floaters Fleet (mid-water) (21 Rigs (2) ) 29% 71% 64% 36% 84% 16% 15 Effective January 31, 2006 (1) Excludes letters of intent (2) Includes two Sedco-700 series rig upgrade commitments

16 Strong customer demand most evident in Asia and the Middle East Dayrate improvement continues Trident 20 $130,000 Previously $90,000 Shelf Explorer $120,000 Previously $70,000 J.T. Angel $ 97,000 Previously $60,000 Contract durations lengthening Transocean has numerous pending contracts (LOIs) 25 rig years Jackups Fleet Market Sector Comments Estimated revenue backlog of approximately $1.2 billion Pursuing fleet upgrade opportunities 16 PetroJack ASA agreement

17 Percent of Fleet Under Contract Commitments (1) Committed Uncommitted High-Specification Floaters Fleet (34 Rigs (2) ) 18% 82% 30% 70% 44% 56% Other Floaters Fleet (mid-water) (21 Rigs (2) ) 29% 71% 64% 36% 84% 16% Jackups Fleet (25 Rigs) 23% 60% 40% 12% 17 77% Effective January 31, 2006 (1) Excludes letters of intent (2) Includes two Sedco-700 series rig upgrade commitments 88%

18 Near-Term Focus Secure forward-start contracts for High-Specification Floaters fleet Significant term and premium rates Capture contracts for High-Specification Floaters construction Execute efficiently Safety is paramount, minimize downtime and cost inflation Projects on time and on budget Attract, train and retain personnel 18

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