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1 REGIONAL EXPANSION IN OMAN AND KUWAIT May 29, 2025
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2 DISCLAIMER This presentation has been prepared by ADNOC Drilling Company PJSC (the “Company”) based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for informational purposes. It should not be construed as an offer to sell or a solicitation of an indication of interest to purchase any equities, security, option, commodity, future, loan or currency including a private sale of shares in the Company (the “Financing Instruments”). It is not targeted to the specific investment objectives, financial situation or particular needs of any recipient. It is not intended to provide the basis for any third-party evaluation of any Financing Instrument or any offering of them and should not be considered as a recommendation that any recipients should subscribe for or purchase any Financing Instruments. The recipient agrees to keep confidential any information contained herein and any other written or oral information otherwise made available in connection with any potential transaction related to this presentation and shall not reproduce, publish, distribute or otherwise divulge such information to any other person(s) other than in accordance with any applicable non-disclosure agreements executed by the recipient with the Company. None of the Company or any of its affiliates or advisors make any representation or warranty as to the fairness, accuracy, adequacy or completeness of the information, the assumptions on which it is based, the reasonableness of any projections or forecasts contained herein or any further information supplied or the suitability of any investment for your purpose. None of the Company or any of its affiliates or advisors, or their respective directors, officers or employees, share any responsibility for any loss, damage or other result arising from your reliance on this information. Each of the Company, its affiliates and advisors therefore disclaim any and all liability relating to this presentation including without limitation any express or implied representations or warranties for statements contained in, and omissions from, the information herein. No recipient of this presentation should rely upon any information contained in this presentation, including but not limited to any historical financial data, forward looking statements, forecasts, projections or predictions. The Company, its affiliates, representatives and advisors are acting solely in the capacity of an arm’s length counterparty and not in the capacity of your financial advisor or fiduciary. Such information is represented as of the date and, if applicable, time indicated and the Company, its affiliates and advisors do not accept any responsibility for updating any such information. Nothing in this presentation should be construed as an advice of, amongst others, legal, tax, regulatory, accounting or investment nature. The recipients should seek and rely upon the advice of its own professionals and other advisors for such matters. This presentation may be recorded, and the Company will assume that by attending this presentation the recipient consents to such recording.
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3 SUSTAINING GROWTH WITH NEW VENUES DELIVERING GROWTH THROUGH ENERSOL, UNCONVENTIONALS AND REGIONAL EXPANSION Enersol Unconventional Resources $1.7bn Awarded to ADNOC Drilling, executed by the JV Turnwell1 Diversified, tech-centric OFS investment platform ADNOC Drilling benefits from Enersol’s OFS tech- enabled acquisitions to further develop its integrated offering and tech ecosystem Total investment to date of ~$0.8bn Additional ~$0.7bn equity to be deployed Sustaining ADNOC Drilling’s growth 144 Wells Drilling 144 oil and gas wells over 2+ years Phase 2 Potential Phase 2 with thousands of wells Regional Geographical Expansion Unlocking a new era of expansion and de-risked, accretive growth Drive future growth by pursuing profitable and value accretive business in the region Cement our status as one of the fastest growing energy services companies 1 JV between ADNOC Drilling, SLB and Patterson Opportunity to capture further upside from our integrated commercial proposition
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4 70%2 SWIFT ACQUISITION OF FIRST PLATFORM IN OMAN AND KUWAIT ADNOC DRILLING PARTNERS WITH SLB IN THEIR KUWAIT AND OMAN LAND RIG BUSINESS Transaction Overview Transaction Structure 30% Cash • Upon closing of the transaction, ADNOC Drilling is expected to fully consolidate the financial results • Agreed mechanism for ADNOC Drilling to acquire remaining stake over time 1. Including an earn-out component of $21 million linked to the overall business performance, $91 million excluding potential earn-out. Final consideration is subject to closing accounts adjustments for net debt (debt minus cash) as at the closing date. 2. Stake to be acquired through an ADNOC Drilling wholly-owned subsidiary. Transaction subject to regulatory approvals and the fulfillment of other closing requirements. ADNOC Drilling will acquire 70%1 stake in SLB’s land rig business in Oman & Kuwait The acquisition consideration for the 70% stake is $112 million1 Perimeter includes eight fully operational land rigs under contract with the respective national oil companies (NOCs) in both countries ADNOC Drilling will fund the transaction through its existing debt capacity The acquisition is expected to be earnings accretive upon closing and to deliver attractive returns Joint Venture Exit plan post lock-up period for SLB 100%
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5 PARTNERSHIP STRATEGIC RATIONALE DE-RISKED, VALUE ACCRETIVE REGIONAL EXPANSION AT ATTRACTIVE VALUATIONS Major step towards creating a dedicated platform for value accretive regional expansion and diversification Expansion in two highly stable geographies with robust drilling programs with top-tier clients De-risked entry into Oman & Kuwait with rigs under contract with the respective NOCs1 Highly credible partner, benefiting from existing strong track record, customer relationships and contracts Attractive valuation at <4x EBITDA with robust financial profile and expected returns, +10% free cash flow yield Further upside potential to returns through our unique integrated commercial offering 1. National oil companies
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6 ENHANCING GROWTH THROUGH EXPANSION IN THE GCC KEY TRANSACTION HIGHLIGHTS & TRANSACTION METRICS Key Transaction Highlights Accretive Transaction for ADNOC Drilling • SLB’s land rig business has a strong operational track record in both Oman and Kuwait, de-risking the expansion into these geographies, while providing stable, and promising regional footprint • Value driven, cost effective route to access new regional geographies via an investment at <4x EBITDA, with marginal impact on ADRILL’s leading margins • De-risked entry into new geographies via partnering with a world class player like SLB, with a strong track record and long-standing NOC relationships in Oman and Kuwait • Deal is earnings accretive for ADNOC Drilling and delivers strong IRR, at a premium to domestic drilling returns1 • Potential upside from offering other OFS/Enersol services/products De-risked entry into regional geographies Calculated strategy, with robust financial discipline Leveraging strategic partnership Value Accretive Premium vs domestic IRR1 Expected unlevered IRR > Domestic drilling IRR under framework agreement EPS accretive transaction Debt funded, gradually optimizing the Balance sheet ~$0.4bn Backlog3 Majority of contracts run till 2028 <4x 25E EV/EBITDA2 Attractive implied entry multiple, at a significant discount to ADNOC Drilling’s levels 1 Unlevered IRR of 10%-13% on domestic drilling, based on the rig framework agreement. 2 Based on the acquisition consideration for the 70% stake of $112 million for ADNOC Drilling, which includes the potential earn-out. Subject to closing accounts adjustments for net debt (debt minus cash) as at the closing date. 3 Based on revenues from existing contracts.
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7 PLATFORM OF 8 OPERATING OWNED RIGS IN OMAN AND KUWAIT 1 Regions marked on the map are indicative and not to scale OVERVIEW OF KEY METRICS AND OPERATIONS Customers Rig fleet size Fleet overview Revenue ($mm) FY25E Kuwait Rigs 801, 802 Oman Rigs 191, 192, 219, 265, 291, 296 Key Metrics Geography of Operations1 Rigs Overview Location Year built / upgradedRig Rig Size (HP) Jaleel 2018Rig 191 1,000 Hanya 2018Rig 192 1,000 Birba 2002Rig 219 2,000 Birba 2014Rig 265 2,000 Birba 2014Rig 291 3,000 Harweel 2006Rig 296 2,000 North 2019Rig 801 3,000 North 2019Rig 802 3,000 EBITDA margin (%) FY25E Transaction Perimeter 8 land rigs 1,000 HP: 2 2,000 HP: 3 3,000 HP: 3 >$120 million +38%
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8 CLOSING REMARKS AND NEXT STEPS First regional acquisition • Marks the beginning of ADNOC Drilling’s geographical expansion strategy • First roll-out in the region through partnership, a natural / de-risked step: – Oman and Kuwait are attractive geographies, with clear ambition to increase capacity and potential for higher rig activity – Leverage ADNOC Drilling’s existing platform in Abu Dhabi • Partnering in an existing operating platform with contracts in place with state-owned entities, providing visibility on long-term cash-flow generation • Relatively small investment at an attractive entry price ensuring accretion and value creation for ADNOC Drilling Supports in optimizing capital structure and creates shareholder value Accretive to financial metrics with attractive payback period De-risked, profitable growth opportunity in regional geographies Opportunity to improve returns from our integrated offering Timing • Transaction expected to close in 1Q 2026, subject to customary regulatory approvals • Upon completion of the transaction, expected full consolidation (“line-by-line”) in the Onshore segment of ADNOC Drilling
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9 THANK YOU ADNOC DRILLING www.adnocdrilling.ae ir@adnocdrilling.ae To access further materials, please click here.