Seadrill Partners LLC Third quarter 2016 Results November 22, 2016 - PowerPoint PPT Presentation

Seadrill Partners LLC Third quarter 2016 Results November 22, 2016

Forward Looking Statements This presentation includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company’s plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. In particular, statements regarding the Company’s ability to make cash distributions, the expected performance of the drilling units in the Company’s fleet, estimated duration of customer contracts, contract dayrate amounts and the Company’s ability to purchase drilling rigs from Seadrill Limited in the future are considered forward- looking statements. These statements are made based upon management’s current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Important factors that could cause actual results to differ materially from those in the forward looking statements include, but are not limited to offshore drilling market conditions including supply and demand, dayrates, customer dilling programs and effects new rigs on the market, contract awards and rig mobilizations, contract backlog, the performance of the drilling units in the Company’s fleet, delay in payment or disputes with customers, our ability to successfully employ our drilling units, procure or have access to financing, ability to comply with loan covenants, liquidity and adequacy of cash flow from operations, fluctuations in the international price of oil, changes in governmental regulations that affect the Company or the operations of the Company’s fleet, increased competition in the offshore drilling industry, and general economic, political and business conditions globally. Consequently, no forward-looking statement can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks described from time to time in the Company’s filings with the SEC. The Company undertakes no obligation to update any forward looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors,may cause actual results to be materially different from those contained in any forward looking statement. 2

Agenda 1) Highlights 3Q 2016 2) Market Commentary & Financial Performance Overview 3) Summary & Q&A 3

Q3 Highlights  Revenue of $385 million  Adjusted EBITDA of $313 million  West Vencedor  Awarded a 3 well contract with ConocoPhillips  With multiple well-based options  Total backlog addition of $16 million on the firm 3 wells  West Leo  During October a notice of Force Majeure was received from Tullow  The Company disputes the claim and has commenced litigation proceedings  Distribution maintained at $0.10 4

Backlog & Utilization Current backlog 1500  Current order backlog of $2.9 billion 1000 $ million  Average contract term of 2.0 years 500 0 2016 2017 2018 2019+ Economic utilization 100 95  Strong operational quarter Utilization % 90  95% economic utilization* 85 99 99 99 95 80 75 70 Q4 15 Q1 16 Q2 16 Q3 16 * Economic utilization is calculated as total contract revenue excluding bonuses for the period as a proportion of the full operating dayrate multiplied by the number of days in the period. 5

Market Commentary & Financial Performance 6

Assets & contracts 2017 2018 2019 2020 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q West Capella $62.5 milion West Vencedor $115k $115,000 West Aquarius $615,000 West Sirius $297,000 West Polaris $450,000 (1) West Leo $605,000 T-15 $110,000 (2) West Capricorn $316,000 $526,000 T-16 $110,000 West Auriga $562,000 West Vela $525,000 Contracted Option Period Early Termination Fee (1) During October a notice of Force Majeure was received from Tullow Ghana Limited. The Company has disputed Tullow's claim for Force Majeure and has 7 commenced litigation proceedings (2) During July 2016, an agreement was reached to remain on an extended standby rate with expected recommencement of work in late 2017 at the full operating rate

Sequential variance analysis Revenue  Dayrates : West Capricorn full 440 quarter of extended standby rate 420  Utilization : West Vela and West Polaris downtime, partially offset 400 by improved performance across remainder of fleet 380  Idle Units: West Capella 360 termination and West Vencedor contract completion 340  Revenue: West Capella 320 termination fee recognized 300 over remaining contract term 2Q16 Volume Dayrate Utilization Idle units Other 3Q16 and West Vencedor contract Adjusted EBITDA completion 340  Adj. EBITDA: West Capella termination fee received in 320 the 3rd quarter partially offset by West Vencedor 300 contract completion 280  Costs: 260  Lower opex for the West Capricorn while on standby 240  Lower opex for the West Capella and West Vencedor 220 while idle 200  Lower G&A 2Q16 Volume Dayrate Utilization Idle units Costs Other 3Q16 8

Income Statement – Net Income Unaudited accounts in USD millions 3Q16 2Q16 Net operating income 204.0 225.9 Financial items Interest income 2.8 3.2 Interest expense (44.3) (44.5) Gain / (loss) on derivative financial instruments 5.7 (28.3) Currency exchange loss (1.5) (0.5) Total financial items (37.3) (70.1) Income before income taxes 166.7 155.8 Income taxes (13.9) (43.6) Net income 152.8 112.2 Net income attributable to non-controlling interests 69.6 52.4 Net income attributable to Seadrill Partners LLC Members 83.2 59.8 9

Balance Sheet Main Movements 3Q16 2Q16 Unaudited accounts in USD millions Total current assets 1,217.7 1,074.8 Total non-current assets 5,646.7 5,728.5 Total assets 6,864.4 6,803.3 Total current liabilities 782.0 828.8 Total non-current liabilities 3,739.2 3,770.1 Total liabilities 4,521.2 4,598.9 Total equity 2,343.2 2,204.4 Total liabilities and equity 6,864.4 6,803.3 10

Outlook  Fourth quarter adjusted EBITDA expected to be around $230 million:  Receipt of the West Capella termination payment in the third quarter, no payment is due in the fourth quarter  West Leo assumed to be operating for the full quarter  Full quarter of idle time for the West Vencedor  West Vela and West Auriga downtime 11

Q&A 12