XOAS: SDRL

2Q22 Earnings Presentation

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The information contained herein includes certain statements, Estimates and projections with respect to our anticipated future performance (including illustrative returns on equity) and anticipated industry trends. Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "likely," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements regarding expected financial performance; expected utilization, day rates, revenues, operating expenses, rig commitments and availability, cash flow, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the effect, impact, potential duration and other implications of the ongoing COVID-19 pandemic; impact of our emergence from bankruptcy; the offshore drilling market, including supply and demand, customer drilling programs, stacking of rigs, effects of new rigs on the market and effects of declines in commodity prices; expected work commitments, awards and contracts; effective tax rates; letters of intent; scheduled delivery dates for rigs; the timing of delivery, mobilization, contract commencement, availability, relocation or other movement of rigs; future rig reactivations; expected divestitures of assets; general market, business and industry conditions, trends and outlook; future operations; increasing regulatory complexity; the outcome of tax disputes, assessments and settlements; and expense management. Such statements, Estimates and projections reflect various assumptions concerning anticipated results and industry trends, which assumptions may or may not prove to be correct. Actual results and trends may vary materially and adversely from the projections contained herein. We have prepared this document and the analyses contained in it based, in part, on certain assumptions and information obtained by us from the recipient, its directors, officers, employees, agents, affiliates and/or from other sources. Our use of such assumptions and information does not imply that we have independently verified or necessarily agree with any of such assumptions or information, and we have assumed and relied upon the accuracy and completeness of such assumptions and information for purposes of this document. Neither we nor any of our affiliates, or our or their respective officers, employees, advisors or agents, make any representation or warranty, express or implied, in relation to the accuracy or completeness of the information contained in this document or any oral information provided in connection herewith, or any data it generates and accept no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) in relation to any of such information. We and our affiliates and our and their respective officers, employees, advisors and agents expressly disclaim any and all liability which may be based on this document and any errors therein or omissions therefrom. Neither we nor any of our affiliates, or our or their respective officers, employees, advisors or agents, make any representation or warranty, express or implied, that any transaction has been or may be effected on the terms or in the manner stated in this document, or as to the achievement or reasonableness of future projections, management targets, Estimates, prospects or returns, if any. Any views or terms contained herein are preliminary only, and are based on financial, economic, market and other conditions prevailing as of the date of this document or as at the date stated in respect of that information and are therefore subject to change. We undertake no obligation or responsibility to update any of the information contained in this document. Past performance does not guarantee or predict future performance. Any and all trademarks and trade names referred to in this presentation are the property of their respective owners. In this presentation, we rely on and refer to information and statistics regarding market participants in our industry and other industry data. We obtained this information and statistics from third-party sources, including reports by market research firms and company filings. We have not independently verified the data obtained from these sources and cannot assure you of the data's accuracy or completeness.

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2Q22 at a glance

$284m

Steady operating revenues

in line with expectation

$940m

Backlog added during the

quarter

22

Rigs currently in operation

across 5 continents*

98%

Technical

$75m

Strong adj. EBITDA,

supported by high utilization

1.32

Outperforming TRIF industry

standards of 1.75

6

Rig reactivation and contract preparation projects ongoing to service long-term contracts

98%

Economic

Maintaining high utilization

3

* Owned and managed operating rigs

Overview of the ADES jack-up transaction

Transaction Overview

  • Seadrill has entered into a binding agreement with subsidiaries of ADES Arabia Holding Ltd ("ADES") to sell seven jack-ups in the Kingdom of Saudi Arabia and the associated business
  • Upon completion, the ownership of the seven rigs as well as employment of the crews and the drilling contracts will be transferred to ADES
  • The total consideration is $628 million in cash, subject to adjustment for working capital and other items, and reimbursement to Seadrill for any project costs spent at the time of closing in relation to the reactivation of the three stacked jack-ups
  • This translates into approximately $100 million per rig on a ready to drill basis

Strategic Rationale

Rig Name

Built

Client /Status

AOD I

2013

Saudi Aramco

Operating

AOD II

2013

Saudi Aramco

Operating

AOD III

2013

Saudi Aramco

Operating

West Calisto

2010

Saudi Aramco

Operating

West Ariel

2008

Undisclosed Client

Contract Prep.

West Cressida

2009

Undisclosed Client

Contract Prep.

West Leda

2010

Undisclosed Client

Contract Prep.

Monetize assets at

Significantly deleverage

Maintain advantaged

positioning in core

attractive values

the balance sheet

markets

4

High value, high quality contract wins added to backlog

Order Backlog as at August 31, 2022

Approximately $1 billion added to backlog since the start of 2Q22

Floaters

$1.6bn

$159m*

$217m

$305m

$361m

Angola

US Gulf of Mexico

Middle East

Middle East

TotalEnergies

Talos / LLOG

Undisclosed client

Saudi Aramco

Harsh

$0.6bn

Substantial contract additions outstripping backlog consumption

Environment

Order Backlog, $'billion

Jack-ups$0.8bn

* TotalEnergies contract is with Sonadrill. Seadrill to receive a management fee for managing and operating the rig on behalf of Sonadrill

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Seadrill Ltd. published this content on 01 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 September 2022 13:00:01 UTC.