Investor Presentation July 2015 Forward-Looking Statements - PDF document

1 Investor Presentation July 2015

Forward-Looking Statements Statements contained in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “could,” “may,” “might,” “should,” “will” and similar words and specifically include statements involving expected financial performance, day rates and backlog, estimated rig availability; rig commitments; contract duration, status, terms and other contract commitments; new rig commitments and construction; scheduled delivery dates for rigs; the timing of delivery, mobilization, contract commencement, relocation or other movement of rigs; and general market, business and industry conditions, trends and outlook. Such statements are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including commodity price fluctuations, customer demand, new rig supply, downtime and other risks associated with offshore rig operations, relocations, severe weather or hurricanes; changes in worldwide rig supply and demand, competition and technology; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties; terrorism, piracy and military action; risks inherent to shipyard rig construction, repair, maintenance or enhancement; possible cancellation, suspension or termination of drilling contracts as a result of mechanical difficulties, performance, customer finances, the decline or the perceived risk of a further decline in oil and/or natural gas prices, or other reasons, including terminations for convenience (without cause); the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; environmental or other liabilities, risks or losses; debt restrictions that may limit our liquidity and flexibility; our ability to realize the expected benefits from our redomestication and actual contract commencement dates; cybersecurity risks and threats; and the occurrence or threat of epidemic or pandemic diseases or any governmental response to such occurrence or threat In addition to the numerous factors described above, you should also carefully read and consider “Item 1A. Risk Factors” in Part I and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II of our most recent annual report on Form 10-K, as updated in our subsequent quarterly reports on Form 10-Q, which are available on the SEC’s website at www.sec.gov or on the Investor Relations section of our website at www.enscoplc.com. Each forward-looking statement speaks only as of the date of the particular statement, and we 2 undertake no obligation to publicly update or revise any forward-looking statements, except as required by law.

Profile • #1 in customer satisfaction – five consecutive years • Highest net income margins among major competitors • Best ever total recordable incident rate in 2014 and YTD • High-quality fleet of floaters and jackups • Broad diversification: customer, geography, rig type • Capital management flexibility – no significant debt maturities until 2Q19 – $1.3 billion of cash and short-term investments – $2.25 billion revolving credit facility – $7.4 billion of contracted revenue backlog – investment-grade credit ratings • ~3% dividend yield; top half of S&P 500 Companies 3 Note: Cash and short-term investments, revolving credit facility capacity and contracted revenue backlog as of 30 June 2015

Market Environment • Sharp drop in commodity prices accelerated beginning late fourth quarter 2014 • New lows/increased volatility for oil prices during customers’ budget season; more recently, oil prices have been under pressure • Capital expenditures declining in 2015 as customers re-evaluate programs in light of lower commodity prices • Customers shortening contracts where permitted and requesting concessions • Uncontracted newbuilds and customer sublets creating additional supply • Aging of current global fleet has led to accelerated scrapping of floaters and cold stacking of floaters and jackups • Some newbuilds being cancelled and others being delayed • SETE Brasil newbuild program reportedly to be cut by approximately half 4

Sharp Decline in Oil Prices $130 Brent Crude ($/bbl) $120 $110 $100 $90 $80 $70 $60 $50 $40 $30 5 Source: Thomson One; Brent Crude prices for 31 December 2013 through 21 July 2015

Ensco’s Proactive Fleet Management 2Q14 • Moved five floaters to held for sale to proactively reduce expenses; two later sold for scrap value 3Q14 • Sold four jackups for more than $200 million 4Q14 • Classified additional 4 rigs as discontinued operations • All held-for-sale rigs cold stacked to quickly reduce expenses 1Q15 • Expedited cold stacking decision for ENSCO 8501 and ENSCO 8502 plus four jackups to accelerate cost savings 2Q15 • Cold stacking additional rigs to reduce expenses 6

Proactive Steps to Address Market Downturn • Reduce offshore discretionary compensation and onshore support costs February 2015 – 9% unit labor cost decrease for offshore workers – 15% reduction in force for onshore personnel including corporate staff July 2015 – plan to consolidate five geographic business units into three, centralize certain functions and rationalize office space • Highgrade fleet – delivery of ENSCO 110, ENSCO DS-8 and ENSCO DS-9; all three rigs expected to contribute to earnings by year-end 2015 – sold six rigs since 2Q14; placed another six rigs into held for sale • Deferred ENSCO DS-10 delivery to 1Q17, delaying approx. $300 million in capex • Successful 1Q15 debt offering to refinance $1.1 billion of near-term debt maturities and improve liquidity/capital management flexibility • Reduced quarterly dividend to $0.15 per share to improve capital management flexibility during downturn 7

2Q15 Highlights • Good operational, safety and financial performance – 98% jackup operational utilization – TRIR on track to set another record in 2015 for safety performance – disciplined expense management • ENSCO 110 and ENSCO 104 each contracted for three-year terms in the Middle East • Delivered newbuilds ENSCO 110 and ENSCO DS-9; each will contribute to 2015 earnings • Contract term for ENSCO DS-7 extended by one year to 4Q17 8

Current Market Floaters Jackups Contracted 226 321 Active Stacked/Other 44 75 Total 270 396 Fleet % Contracted 84% 81% 17 by SETE 59 by Under Construction 55 106 Brasil Speculators 12 by SETE 7 by On Order / Planned 17 11 Brasil Speculators Newbuilds Total 72 117 % Contracted 54% 7% % Uncontracted 46% 93% Source: IHS-ODS Petrodata as of July 2015; competitive marketed floaters and jackups (independent leg cantilever rigs); ‘contracted’ includes rigs 9 currently under contract or with a future contract

Newbuild Floater Order Book 72 Total 15% 24% 17 11 SETE Brasil, Contracted Under Construction 27 12 Uncontracted, SETE Brasil, Under 17% On Order Construction 37% 5 Uncontracted, On Order 7% 10 Source: IHS-ODS Petrodata as of July 2015; marketed competitive floaters

Newbuild Floater Delivery Schedule 35 Under SETE Brasil by Shipyard Constr. On Order Total 30 Estaleiro Atlantico Sul 4 3 7 4 Estaleiro Jurong Aracruz 4 3 7 BrasFELS, Angra dos Reis 5 1 6 25 Estaleiro Enseada do Paraguacu 2 4 6 Ecovix ‐ Engevix, Rio Grande do Sul 2 1 3 9 ? Total 17 12 29 20 15 2 10 5 17 2 5 ? 1 1 5 3 ? 6 4 ? 1 5 3 1 ? 1 1 1 0 2015 2016 2017 2018 2019 2020 Uncontracted, Under Construction Uncontracted, On Order SETE Brasil, On Order SETE Brasil, Under Construction Contracted 11 Source: IHS-ODS Petrodata as of July 2015; marketed competitive floaters

Floater Supply Cumulative # of rigs rolling off contract > 30 years old: 21 56 70 77 57 74 47 45 32 19 43 39 31 37 35 39 37 Assumes all 32 rigs ‘On Order’ 32 or partially completed including SETE Brasil rigs are 209 200 187 built, delivered 166 156 and complete customer acceptance 9 SETE* 15 SETE* 23 SETE* testing Current 2015 2016 2017 2018 < 15 years old 15-29 years old 30-35 years old > 35 years old *SETE Brasil rig counts by year are cumulative 12 Source: IHS-ODS Petrodata as of July 2015; marketed competitive floaters

Newbuild Jackup Order Book 117 Total 7% 8 Contracted, Established Zero rigs being built Drillers by Speculators have been contracted. 39 59 33% Uncontracted, 51% Uncontracted, Established Speculators Drillers 11 On Order, All Uncontracted 9% 13 Source: IHS-ODS Petrodata as of July 2015; marketed competitive jackups (independent leg cantilever rigs)