Paratus Energy Services (PLSV) Pareto Securities' 31st annual Energy Conference Presentation summary

Financial highlights

• Cash position of $246 million and receivables of $215 million as of June 30, 2024, supporting strong liquidity.

• Firm backlog of approximately $1.4 billion, representing 79–86% of market capitalization.

• LTM EBITDA of $247 million with a 54% EBITDA margin, and net debt of $486 million.

• Net leverage at 2.0x, with majority of debt maturities extended to 2029, enhancing capital flexibility.

• Significant deleveraging achieved: ~$1 billion in Seagems and $700 million in Fontis Energy since 2015.

Business operations and structure

• Paratus is the principal holder of Seagems (50% JV, subsea services in Brazil) and Fontis Energy (100% owned, offshore drilling in Mexico).

• Seagems operates six PLSVs with a $2.1 billion firm backlog; Fontis Energy operates five jack-up rigs with a $369 million backlog.

• Holds a 24% stake in Archer, a global oil services provider with $438 million LTM revenue and $150 million market cap.

• Backlog includes recent contract awards for Esmeralda and Rubi, supporting long-term revenue visibility.

• Backlog and favorable market conditions provide strong re-contracting opportunities for both subsea and drilling assets.

Capital allocation and shareholder returns

• Annualized cash distribution yield of ~17% based on inaugural $0.22/share payout, leading the industry.

• Authorized share repurchases up to $100 million, with repurchases to be opportunistic.

• Backlog supports significant cash generation, with illustrative free cash flow to equity of 79–86% of market cap.

• Flexible capital structure with $175 million fixed basket capacity for distributions through 2027.

• Capital allocation policy prioritizes efficient returns to shareholders via distributions and buybacks.