Howard Weil Conference - TESCO Corporation

TESCO DeliversWe have delivered growth and earnings…Millions $ USDMillions $ USDREVENUEEBITDA*600500400300$462$535$356$379$5131201008060$79$114$42$57$86200401002002007 2008 2009 2010 201102007 2008 2009 2010 2011*Non-GAAP Measure; please refer to the reconciliation of Non-GAAP measures on our website at www.tescocorp.comunder Investor Relations.© 2012 Tesco Corporation. All rights reserved. 6

Business SegmentsMillions $ USDTOP DRIVESREVENUE – 2011- Sales- Rental- Aftermarket Sales and ServiceTUBULAR SERVICES- Conventional Casing Running- Proprietary Casing Running- CompletionsTop Drives$345 TubularServices$151Total: $513OPERATING INCOME – 2011Millions $ USDCASINGDRILLING$17CASING DRILLING- Levels 1 through 5- Liner DrillingTopDrives$89CASINGDRILLING-$12TubularServices$17Total: $94** Excludes “Corporate and Other” and “Research & Engineering” Segments© 2012 Tesco Corporation. All rights reserved. 8

International ExpansionMillions $ USDMillions $ USD20102011EAME$23AsiaPacific$31Russia$27US$131EAME$29AsiaPacific$41Russia$28US$144LatinAmerica$68Canada$99LatinAmerica$94Canada$177Total: $379 Total: $513Note: U.S. and Canadian revenues include product sales of equipment to customers which may be ultimately destined for internationallocations. Hence, much of this revenue, particularly Canada is categorized as “International”.© 2012 Tesco Corporation. All rights reserved. 9

TESCO Top DrivesRecord revenue in 2011, and Growing...Millions $ USDUNITS SOLDREVENUE14012010012213790115350300250$289$341$225$244$34580692006015040100205002007 2008 2009 2010 201102007 2008 2009 2010 2011© 2012 Tesco Corporation. All rights reserved. 11

CDS Sets the StandardMillions $ USDPROPRIETARY JOBSREVENUE4,0003,5003,0002,5002,0001,5001,0001,4061,9712,5693,1733,557140120100806040$66$87$95 $101$1205002002007 2008 2009 2010 201102007 2008 2009 2010 2011TS Total/ 14.9% 13.5% (2.5)% 6.7% 11.1%OI MarginsObjective next five years: Grow faster and more profitably© 2012 Tesco Corporation. All rights reserved. 15

Tubular ServicesRevenue BreakdownMillions $ USDMillions $ USD2010 2011Conventional$21Conventional$31Proprietary$101Proprietary$120Total: $122Total: $151© 2012 Tesco Corporation. All rights reserved. 16

Conventional Casing Running© 2012 Tesco Corporation. All rights reserved. 17

Proprietary Casing Running© 2012 Tesco Corporation. All rights reserved. 18

Tubular Service Metrics• Approximately $2+ billion market• Revenue = $151 million• Less than 5% penetration of Proprietary Services• 15,185 jobs run to date with CDS as of December 31, 2011• Proprietary CDS requires a Top Drive (any Top Drive)• Approximately 250,000 total casing running jobs per year• 308 CDS units in fleet at December 31, 2011• Typical revenue (varies with size and depth):• Onshore: $15,000 – $18,000 per job• Offshore: $45,000 – $50,000 per job© 2012 Tesco Corporation. All rights reserved. 19

CASING DRILLING• Proprietary technology allows wells to be simultaneouslydrilled and cased• Retrievable (exclusive to TESCO) – Interval or complete well• Non-Retrievable (TESCO, et al) – Interval with drillable shoe• 2010 / 2011 Accomplishments• Drilled the largest number of offshore wells in our history• Designed the first fully-retrievable liner drilling system• Completed field testing of the Liner Drilling system• Commercialized TESCO XCD Level 2 Casing Drill Bits© 2012 Tesco Corporation. All rights reserved. 20

CASING DRILLINGRamping up growth...Millions $ USDREVENUE30$27252015$15$13 $13$1710502007 2008 2009 2010 2011© 2012 Tesco Corporation. All rights reserved. 21

CASING DRILLING TechnologyConventional DrillingCASING DRILLING© 2012 Tesco Corporation. All rights reserved. 22

CASING DRILLING Plastering Effect© 2012 Tesco Corporation. All rights reserved. 23

CASING DRILLING Customers© 2012 Tesco Corporation. All rights reserved. 24

CASING DRILLING Accomplishments• Global expansion of CASING DRILLING applications• Over 3.5 million feet of casing drilled• Drilled 1,314 well intervals to date• Drilled 135 directional well intervals• Drilled 28 horizontal or near horizontal intervals• Drilled 107 offshore well intervals© 2012 Tesco Corporation. All rights reserved. 25

CASING DRILLING Market• TESCO believes this potential market is measured in billions $• Existing technology is applicable to thousands of wells• Today’s market is approximately $50 million USD• On an ongoing onshore project:• $1.5 to $2.5 million / rig-year• On an ongoing offshore rotary steerable project:• $4 to $6 million / rig-year• Applies cost effectively to difficult intervals both on andoffshore*• New market identified in performance drilling offshore top holesections; both vertical and directional* Difficult wells as defined by Spears and Associates are 20-25% of all wells drilled.© 2012 Tesco Corporation. All rights reserved. 26

2012 Objectives• Improve profitability in all segments• Drive record revenue• Accelerate Tubular Services Growth• Find strategic partner for Casing Drilling• Continue to generate free cash from operations• Complete key strategic acquisitions© 2012 Tesco Corporation. All rights reserved. 27

Howard Weil’s 40 th AnnualEnergy ConferenceApril 2012© 2012 Tesco Corporation. All rights reserved.