Keynote: Ready, Set, GO! View of the Future of Energy & HR from the C-Suite, Chris Beckett, CEO, Pacific Drilling

The view from the C-suite is critical as this determines the actions and objectives of HR / Talent Management teams. We can better prepare ourselves to be more strategic by gaining a balanced view from operations and business development executives.

The only constant is change. For Energy companies, never has this saying been more true. As companies grapple with change on every level, the implications for people are profound. Join our Panel of C-Level Executives who will be sharing their view of the future of both energy and hr including;
● HR Competency Needs in 2025
● How does Oil & Gas and HR look 10 years into the future?
● From their C-Level view how is the past vs present vs future and how does Energy HR prepare?
● What are the real business drivers of today?
● Automation / technology role in driving the business

Transcript

1. Chris Beckett CEO WorkforceNEXT Energy Summit March 29, 2017 Amy Roddy SVP Corporate Services
2. Certain statements and information contained in this presentation constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are generally identifiable by the use of words such as “believe,” “estimate,” “expect,” “forecast,” “our ability to,” “plan,” “potential,” “projected,” “target,” “would,” or other similar words, which are generally not historical in nature. The forward-looking statements speak only as of the date hereof, and we undertake no obligation to publicly update or revise any forward- looking statements after the date they are made, whether as a result of new information, future events or otherwise. Our forward-looking statements express our current expectations or forecasts of possible future results or events, including: market outlook; forecasts of trends; future client contract opportunities; contract dayrates; our business strategies and plans and objectives of management; and estimated duration of client contracts. Although we believe that the assumptions and expectations reflected in our forward-looking statements are reasonable and made in good faith, these statements are not guarantees and actual future results may differ materially due to a variety of factors. These statements are subject to a number of risks and uncertainties, many of which are beyond our control. Important factors that could cause actual results to differ materially from our expectations include: the global oil and gas market and its impact on demand for our services; the offshore drilling market, including reduced capital expenditures by our clients; changes in worldwide oil and gas supply and demand; rig availability and supply and demand for high-specification drillships and other drilling rigs competing with our fleet; costs related to stacking of rigs; our ability to enter into and negotiate favorable terms for new drilling contracts or extensions; possible cancellation, renegotiation, termination or suspension of drilling contracts as a result of market changes or other reasons; and the other risk factors described in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 20-F and Current Reports on Form 6-K. These documents are available through our website at www.pacificdrilling.com or through the SEC’s website at www.sec.gov. Forward Looking Statements 2
3. Market expected to rebalance in 2018-2019 0 20 40 60 80 100 120 140 160 0 20 40 60 80 100 120 140 160 Contracted, Available and Warm Stacked 5th and 6th Gen Rigs 2017 2018 2019 2020 2021 Contracted 6th gen Contracted 5th gen Uncontracted 6th gen Uncontracted 5th gen Warm Stacked Rigs Visible Demand Projected Floater Demand Note: Projected Floater Demand excludes demand from harsh environments and globally non-competitive areas Sources: IHS, Rystad, PACD internal estimates 88% Utilization of Marketed/Warm Supply = 114 rigs 2013 – 2015 Demand Range = 124-134 rigs 3
4. Marketed global floater fleet will look very different by 2018 Floater fleet size will be reduced by 42% and employee count reduced by 34% Note: Includes active, hot-stacked, warm-stacked; excludes cold stacked; cold stacking is assumed after a rig is stacked for more than six months or after announced; low spec fleet include 5th gen and older; high spec employee count assumed 200, low spec assumed 120 92 103 263 103 0 50 100 150 200 250 300 350 400 2015 Peak Fleet End of 2018 High Spec Low Spec 355 206 Number of floating rigs 18,400 20,600 31,560 12,360 - 10,000 20,000 30,000 40,000 50,000 60,000 2015 Peak Implied Employee Count End of 2018 49,960 32,960 4
5. 5 Addressing volatility in the offshore workforce is a major challenge Source: IHS-Petrodata for quarters capacity, Rystad for demand forecast Larger, more complex rigs require larger crews, amplifying volatility 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Jan 1985 Dec 1985 Nov 1986 Oct 1987 Sep 1988 Aug 1989 Jul 1990 Jun 1991 May 1992 Apr 1993 Mar 1994 Feb 1995 Jan 1996 Dec 1996 Nov 1997 Oct 1998 Sep 1999 Aug 2000 Jul 2001 Jun 2002 May 2003 Apr 2004 Mar 2005 Feb 2006 Jan 2007 Dec 2007 Nov 2008 Oct 2009 Sep 2010 Aug 2011 Jul 2012 Jun 2013 May 2014 Apr 2015 Mar 2016 Feb 2017 Jan 2018 Dec 2018 Nov 2019 Oct 2020 Sep 2021 Offshore Personnel -36% 50% -36% Floaters Jackups
6. Preparing the workforce for the upturn ▪ Integrated professional development via Project Origin – Robust technical competency assessment – Enhanced technical development tools – Leadership development from rig floor to management ▪ Accurate evaluation of personnel ▪ Workforce planning ▪ Retention of critical knowledge 6