NorAm Drilling (NORAM) Pareto Securities' 33rd Annual Energy Conference presentation summary

Strategic positioning and operations

• Operates a fleet of modernized ultra super spec rigs, fully upgraded for advanced horizontal drilling in the Permian Basin.

• Focuses exclusively on the Permian, the most active US shale region with the largest proved reserves.

• Rigs feature state-of-the-art walking systems, high racking capacity, and are capable of drilling wells over 25,000 feet.

• Maintains a lean management structure and skilled workforce, optimizing operational costs and efficiency.

Market environment and industry trends

• Permian Basin holds 60% of US proved oil reserves and remains the engine of US shale production.

• DUC (drilled but uncompleted) well inventory in the Permian has dropped 70% since 2022, requiring more new wells to sustain output.

• Permian rig count has rebounded 12% from its February low, reflecting supportive oil prices above breakeven levels.

• WTI oil prices are projected to remain above the $69/bbl Midland breakeven through 2028.

Financial performance and shareholder returns

• Has paid out $100 million in dividends, with monthly distributions totaling NOK ~24 per share since listing.

• Maintains a debt-free balance sheet, enabling high cash returns to shareholders.

• Latest monthly dividend implies an annualized yield of 11%.

• Secured a $25.8 million backlog beyond September 2026, with most rigs contracted to supermajors.

• Achieved 46 consecutive monthly distributions, reflecting stable cash flow.