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Hunting Manufactures and distributes products that enable the extraction of oil and gas Hunting PLC Global Footprint 2 2009 Corporate Highlights Completed three acquisitions 47.3m Sale of Hunting Energy France 11.1m Year end


  1. Hunting Manufactures and distributes products that enable the extraction of oil and gas

  2. Hunting PLC Global Footprint 2

  3. 2009 Corporate Highlights � Completed three acquisitions £47.3m � Sale of Hunting Energy France £11.1m � Year end net cash £365.0m � Free cash flow in the year £39.5m � Dividend year on year + 6% 3

  4. 2009 Results Summary 2009 2008 Change £m £m % Revenue 359.9 418.5 -14 EBITDA 50.6 75.7 -33 Profit from operations 35.8 58.8 -39 Finance income (expense) 1.8 (3.4) Profit before tax 38.5 56.6 -32 Effective tax rate 32% 33% Basic EPS 17.7p 26.4p -33 Dividend 10.5p 9.9p +6 4

  5. Segmental Results 2009 2008 Profit Profit from from Revenue Operations Margin Revenue Operations Margin £m £m % £m £m % Hunting Energy Services Well Construction 77.9 3.3 4 112.0 13.5 12 Well Completion 176.2 20.3 12 189.8 26.6 14 Well Intervention 29.4 4.0 14 23.3 4.6 20 Exploration and Production 5.6 0.3 5 14.8 5.9 40 289.1 27.9 10 339.9 50.6 15 Gibson Shipbrokers 20.8 0.7 3 31.2 6.9 22 Field Aviation 50.0 7.2 14 47.4 1.3 3 359.9 35.8 10 418.5 58.8 14 5

  6. Exceptional Items £m Continuing Release of warranty provision 1.5 Additional leasehold property provision (0.9) 0.6 Discontinued Gain on disposal of Hunting Energy France 2.9 Additional Gibson Energy sale proceeds 17.6 Gibson Energy indemnity and tax provisions (16.6) 3.9 6

  7. Balance Sheet 2009 2008 £m £m Total assets 817.7 874.2 Total liabilities (255.9) (316.9) Net assets 561.8 557.3 Net cash 365.0 372.3 7

  8. Capital Expenditure 2009 2008 £m £m Hunting Energy Services Well Construction 9.1 13.6 Well Completion 8.3 10.9 Well Intervention 1.8 0.8 Exploration & Production 1.9 8.8 Others 0.5 0.7 21.6 34.8 Split: Replacement 9.9 24.2 New Business 11.7 10.6 21.6 34.8 8

  9. Acquisitions Update � Three acquisitions completed in the period • NCC for £31.8m PT SMB Industri for £6.3m • • Welltonic for £9.2m � Good pipeline of companies still being assessed 9

  10. Capital Expenditures � Wuxi, China • Cost : $10 million SQ/FT : 300,000 • • Completion Date: Q2 2010 � Conroe, Texas • Cost : $4.5 million SQ/FT : 36,000 • • Completion Date : Q2 2010 � Casper, Wyoming • Cost : $9 million SQ/FT : 60,000 • • Completion Date : Q3 2010 10

  11. Capital Expenditures (continued) � Houma, Louisiana “Mega Center” • Cost : $50 million SQ/FT : 250,000 • • Completion Date : 2011 � Aberdeen, Scotland • Cost : $30 million Consolidation and expansion • • Completion Date : Q1 2012 11

  12. Cash Flow 2009 2008 £m £m EBITDA 50.6 75.7 Working Capital 11.9 (15.7) Others (6.1) (1.9) Capital expenditure - replacement (9.9) (24.2) Interest and tax (7.0) (9.5) FREE CASH FLOW 39.5 24.4 Capital expenditure - growth (11.7) (10.6) Acquisitions (44.4) (1.6) Disposals 24.0 524.4 Dividends (13.8) (11.3) Other (3.8) (2.5) Discontinued Operations 2.9 (11.3) (Decrease)/Increase in net cash (7.3) 511.5 12

  13. Hunting Energy Well Construction 13

  14. Hunting Energy Services Well Construction Profit from Operations £m 2006 2007 2008 2009 8.0 8.1 13.5 3.3 14

  15. Well Construction Product Integration Points Unconventional Gas Land Rigs Deepwater + + Drilling Tools OCTG Premium Connections Mud Motors Carbon SEAL-LOCK Drill Collars Alloy TKC Shock Tools Chrome Licensed Threads APRS 15

  16. Well Construction Products � Mud Motors : Hunting’s mud motors decrease the time it takes to drill wells utilising state of the art technology to manage hydraulics in a means to increase drill bit speed � Annular Pressure Relief System : Hunting’s APRS system provides our customers with additional insurance against casing collapse and loss of well in deepwater applications 16

  17. Well Construction Products Non-Magnetic Drill Collars : � Allow directional drilling operations to have accurate information from sensors located close to the drill bit � WEDGE-LOCK : Hunting’s newest premium connection provides superior capabilities in deviated and directional drilling applications 17

  18. Hunting Energy Well Completion 18

  19. Hunting locations for Shale and Tight Gas plays 19

  20. Hunting Energy Services Well Completion Profit from Operations £m 2006 2007 2008 2009 20.0 30.0 26.6 20.3 20

  21. Well Completion Product Integration Points Unconventional Gas Land Rigs Deepwater Accessory Specialty Tubular + + Manufacturing Threading Systems Completion Accessories Deepwater Facilities SEAL-LOCK TKC Assembly Managed Inventory Licensed Threads Print Part Work Completion Design API Polished Bore Receptacles Thread Protection 21

  22. Well Completion Products � Completion Accessories: Hunting’s global manufacturing footprint provides products and services assisting in the completion of wells • Proprietary products • OEM Equipment � Polished Boring : Hunting provides the market products which have the inside diameter bored and polished for flow maximisation in highly critical applications 22

  23. Well Completion Products � Premium Tubing: Hunting’s global footprint provides the marketplace with tubing connections which have engineered gas tight seal designs • TKC SEAL-LOCK • • 2-Step � Advanced Tubular Systems: Hunting provides the market with environmentally sound running, storage compounds and thread protectors 23

  24. Hunting Energy Well Intervention 24

  25. Hunting Energy Services Well Intervention Profit from Operations £m 2006 2007 2008 2009 3.6 4.1 4.6 4.0 25

  26. Well Intervention Product Integration Work Over Coiled Tubing Subsea + + Manufacturing Subsea Thru-Tubing Tools Pressure Control Equip Coiled Tubing Tools Chemical Injection System OEM Tools Coiled Tubing Motors Hydraulic Valves E-Line Tools Hydraulic Couplings Slickline Tools Weldment Services 26

  27. Well Intervention Products � Pressure Control Equipment: Hunting provides the market with a highly technical and innovative line of products and services in support of wellhead control and management � Downhole Tools: Hunting provides specialty tools for Slickline and Wireline applications as an OEM for major Oilfield Service companies to the global market. Specialty or “print part” work is provided for close tolerance highly technical manufacturing 27

  28. Well Intervention Products Hunting Subsea � Chemical Injection System: Hunting provides a positive displacement metering system with a maximum working pressure of 17,500 PSI. This cost effective, reliable system will redefine flow measurement accuracy � Specialty Valves: Hunting provides a series of highly engineered patented valves to ensure positive pressure in the umbilical line or back pressure at the blow out preventer 28

  29. Thru-Tubing Technology Hunting-Welltonic Thru-Tubing Specialists Coiled tubing tools Design, � manufacture and sales of specialist and custom designed tools to companies worldwide. This covers an extensive range of intervention equipment from mud motors, tubular severance and perforating products to fishing tools. � Coiled tubing Services Advanced services from the in- house design and engineering team for well intervention and workover operations, enhanced by on location sales support, inventory management and rentals. 29

  30. Gibson Shipbrokers � Core activities remain focused on the shipping of energy � Selective recruitment to continue purposeful global expansion Profit from Operations £m 2006 2007 2008 2009 2.9 2.9 6.9 0.7 30

  31. Others � Hunting Exploration and Production Profit from Operations £m 2006 2007 2008 2009 1.8 4.4 5.9 0.3 � Field Aviation Profit from Operations £m 2006 2007 2008 2009 4.2 (0.3) 1.3 7.2 31

  32. US Spot Oil Price (US$ / bbl) 32

  33. World Oil Demand (mbpd) 33

  34. Offshore Capital Spending 34

  35. Operational / Acquisition Strategy 35

  36. Hunting Energy Services Strategy � Hunting Subsea – emphasis on ultra deep water High Pressure High Temperature � Capitalise on Premium Connection Position � Expand Global Footprint � Continued Development of Well Intervention Platform � Acquisitions which Complement Existing Operations and Products 36

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