Archer (ARCH) Pareto Securities' 32nd Annual Energy Conference Presentation summary

Financial performance and growth

• Revenue projected to reach $1,300–$1,350 million in 2025, with an 11% CAGR since 2022.

• EBITDA expected at $145–$155 million in 2025, reflecting a 21% CAGR.

• Leverage ratio reduced from 5.3x in 2022 to a target of 2.2x–2.5x in 2025.

• Record 2024 financials achieved, supported by a $50 million private placement and acquisition of WFR.

• Cash contribution projected at $90–$110 million in 2025, with a 20% CAGR.

Shareholder returns and capital allocation

• Quarterly cash distributions of ~$5.5 million initiated in Q2 and Q3 2025, with a target to increase over time.

• Annualized per share distribution at NOK 2.48, yielding ~10%.

• $425 million debt refinancing completed and first cash distributions to shareholders made.

• Capital allocation strategy targets a long-term leverage ratio of 1.5–2.0x and capex at 3–4% of revenue.

• Focus on selective, accretive bolt-on acquisitions and regular, sustainable shareholder returns.

Business segments and market positioning

• ~90% of revenue comes from brownfield operations and plug & abandonment (P&A) services.

• Well Services, Platform Operations, Land Drilling, and Renewable Services are key business units.

• Market leader in North Sea P&A, with significant contracts from Equinor and Repsol.

• Land Drilling in Argentina remains cash positive despite reduced activity, with growth expected to rebound in 2026.

• Exposure to least cyclical parts of oil & gas, supporting stable demand and resilient business model.