Archer (ARCH) Pareto Securities' 31st annual Energy Conference Presentation summary

Strategic positioning and growth outlook

• Positioned for continued growth through organic expansion and M&A, leveraging a diversified service portfolio across platform operations, well services, land drilling, and renewables.

• Significant growth potential identified in the Plug & Abandonment (P&A) market, supported by long-term decommissioning trends, especially in the North Sea.

• Argentina's favorable policies and infrastructure investments are driving increased drilling activity and rig demand in Vaca Muerta.

• Profitable and cash-positive renewable services portfolio, with exposure to geothermal, wind, carbon storage, and hydropower segments.

• Focus on deleveraging to enhance cash flow to equity.

Financial performance and guidance

• 2023 revenue reached $1,169m, up 16% year-over-year, with 2024 revenue guidance of $1.2–1.3bn.

• 2023 EBITDA was $117m, up 30%, with 2024 guidance of $134–140m.

• Contract backlog stands at $2.5bn, providing strong revenue visibility.

• Deleveraging efforts have reduced NIBD/adj. EBITDA to 2.9x in 2023.

• Cash contribution (EBITDA minus capex) has grown steadily, supporting financial stability.

Business segment highlights

• Platform operations hold ~50% market share in the North Sea, with stable annual cash contributions of ~$40m and a $2.6bn firm backlog.

• Well services have shown strong organic and acquisitive growth, especially in high-end P&A services, with recent acquisitions enhancing capabilities.

• Land drilling in Argentina is cash positive, with six high-spec rigs and over $70m cash repatriated since 2016; market outlook is positive due to new legislation and major LNG projects.

• Renewable services contribute about 5% of revenue, are profitable, and are expanding through contracts like the wind foundation project with TotalEnergies.