1 Investor Presentation April 2015
Forward-Looking Statements Statements contained 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 1934. Forward-looking statements include words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “could,” “may,” “might,” “should,” “will” and similar words and specifically include statements involving expected financial performance, effective tax rate, day rates and backlog, estimated rig availability; rig commitments; scheduled delivery dates for rigs; the timing of delivery, mobilization, contract commencement, relocation or other movement of rigs; and general market, business and industry conditions, trends and outlook. Such statements are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including commodity price fluctuations, customer demand, new rig supply, downtime and other risks associated with offshore rig operations, relocations, severe weather or hurricanes; changes in worldwide rig supply and demand, competition and technology; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties; terrorism, piracy and military action; risks inherent to shipyard rig construction, repair, maintenance or enhancement; possible cancellation, suspension or termination of drilling contracts as a result of mechanical difficulties, performance, customer finances, the decline or the perceived risk of a further decline in oil and/or natural gas prices, or other reasons, including terminations for convenience (without cause); the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; environmental or other liabilities, risks or losses; debt restrictions that may limit our liquidity and flexibility; our ability to realize the expected benefits from our redomestication and actual contract commencement dates; cybersecurity risks and threats; and the occurrence or threat of epidemic or pandemic diseases or any governmental response to such occurrence or threat In addition to the numerous factors described above, you should also carefully read and consider “Item 1A. Risk Factors” in Part I and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II of our most recent annual report on Form 10-K, as updated in our subsequent quarterly reports on Form 10-Q, which are available on the SEC’s website at www.sec.gov or on the Investor Relations section of our website at www.enscoplc.com. 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, except as required by law. 2
Profile • #1 in customer satisfaction – five consecutive years • Highest net income margins among major competitors • Best ever total recordable incident rate in 2014 and 1Q15 • High-quality fleet of floaters and jackups • Broad diversification: customer, geography, rig type • Capital management flexibility – no significant debt maturities until 2Q19 – $1.6 billion of cash and short-term investments – $2.25 billion revolving credit facility – $8.4 billion of contracted revenue backlog – investment-grade credit ratings • ~2% dividend yield; top half of S&P 500 Companies 3 Note: Cash and short-term investments, revolving credit facility capacity and contracted revenue backlog as of 31 March 2015
Market Environment • Sharp drop in commodity prices accelerated beginning late fourth quarter 2014 • New lows/increased volatility for oil prices during customers’ budget season • Capital expenditures declining in 2015 as customers re-evaluate programs in light of lower commodity prices • Customers shortening contracts where permitted and requesting concessions • Uncontracted newbuilds and customer sublets creating additional supply • Aging of current global fleet should lead to more retirements and stacking, especially as rigs approach 30/35 year surveys • Some newbuilds being cancelled and others being delayed 4
Sharp Decline in Oil Prices 20% 10% 0% -10% -20% -30% -40% -50% -60% Brent WTI 5 Source: Thomson One; commodity prices indexed to 31 December 2013 close prices; data through 23 April 2015
Ensco’s Proactive Fleet Management 2Q14 • Moved five floaters to held for sale to proactively reduce expenses; one later sold for scrap value 3Q14 • Sold four jackups for more than $200 million 4Q14 • Classified additional 4 rigs as discontinued operations • All held-for-sale rigs cold stacked to quickly reduce expenses 1Q15 • Expedited cold stacking decision for ENSCO 8501 and ENSCO 8502 plus several jackups to accelerate cost savings 6
Proactive Steps to Address Market Downturn • Reduce offshore discretionary compensation and onshore support costs – 9% unit labor cost decrease beginning 2Q15 for total offshore compensation – 15% Reduction in Force for onshore personnel including corporate staff o $27 million annualized savings beginning 2Q15 • Highgrade fleet – delivery of ENSCO DS-9 and ENSCO 110 – divestitures and held-for-sale rigs • Negotiate with vendors and suppliers to lower costs • Successful 1Q15 debt offering to refinance $1.1 billion of near-term debt maturities and improve liquidity/capital management flexibility • Reduced quarterly dividend to $0.15 per share to improve capital management flexibility during downturn 7
1Q15 Highlights • Strong operational, safety and financial performance – 99.6% jackup operational utilization – record TRIR of 0.34 – revenues and margins increased year over year – disciplined expense management • #1 in customer satisfaction – 5 th consecutive year • Investment-grade credit ratings reaffirmed – highest among major offshore drillers 8
Current Market Floaters Jackups Contracted 228 326 Uncontracted 33 58 Active Stacked Marketed Rigs 12 21 Fleet Total 273 405 % Contracted 84% 80% Under Construction 59 106 On Order / Planned 23 12 Newbuilds Total 82 118 Contracted 54% 7% Uncontracted 46% 93% 9 Source: IHS-ODS Petrodata as of April 2015; competitive marketed floaters and jackups (independent leg cantilever rigs)
Newbuild Jackup Order Book 118 Total 7% 8 Contracted, Established Drillers 38 32% Uncontracted, 60 Established Uncontracted, Drillers Non-Established Drillers 51% 12 On Order, All Uncontracted 10% 10 Source: IHS-ODS Petrodata as of April 2015; marketed competitive jackups (independent leg cantilever rigs)
Newbuild Jackup Delivery Schedule Non ‐ Established Drillers Under 60 by Shipyard Constr. On Order Total China China Merchants Heavy Industry 16 ‐ 16 50 Shanghai Waigaoqiao Shipbuilding 6 2 8 Yantai CIMC Raffles 6 ‐ 6 Other 21 2 23 6 Subtotal 49 4 53 40 Singapore & Middle East 32 Keppel FELS, Singapore 11 ‐ 11 UAE & Dubai ‐ 3 3 30 Subtotal 11 3 14 25 Total 60 7 67 2 20 2 3 10 19 9 14 1 4 1 0 2015 2016 2017 2018 Uncontracted, Established Drillers On Order, Established Drillers On Order, Non-Established Drillers Uncontracted, Non-Established Drillers Contracted 11 Source: IHS-ODS Petrodata as of April 2015; marketed competitive jackups (independent leg cantilever rigs)
Jackup Supply 127 169 80 59 Assumes all 65 24 106 rigs ‘On Order’ 18 20 or partially 125 22 completed including rigs built by Non- 23 Established Drillers are 308 303 built, delivered 263 and complete 198 customer acceptance testing Apr. 2015 Apr. 2016 Apr. 2017 Apr. 2018 < 15 years old 15-30 years old 30-35 years old > 35 years old 12 Source: IHS-ODS Petrodata as of April 2015; marketed competitive jackups (independent leg cantilever rigs)
Newbuild Floater Order Book 82 Total 19% 21% 17 SETE Brasil, 16 Under Contracted Construction 12 SETE Brasil, 26 15% On Order Uncontracted, Under 11 32% Construction Uncontracted, On Order 13% 13 Source: IHS-ODS Petrodata as of April 2015; marketed competitive floaters
Newbuild Floater Delivery Schedule 30 Under SETE Brasil by Shipyard Constr. On Order Total 25 Estaleiro Atlantico Sul 4 3 7 4 Estaleiro Jurong Aracruz 4 3 7 BrasFELS, Angra dos Reis 5 1 6 Estaleiro Enseada do Paraguacu 2 4 6 20 Ecovix ‐ Engevix, Rio Grande do Sul 2 1 3 2 8 Total 17 12 29 10 5 15 1 10 2 2 14 10 5 9 6 4 2 1 1 1 0 2015 2016 2017 2018 2019 2020 Uncontracted, Under Construction Uncontracted, On Order SETE Brasil, On Order SETE Brasil, Under Construction Contracted 14 Source: IHS-ODS Petrodata as of April 2015; marketed competitive floaters
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