Seadrill Partners LLC Conference Call Second Quarter 2015 Results - PowerPoint PPT Presentation

Seadrill Partners LLC Conference Call – Second Quarter 2015 Results August 27, 2015

Forward Looking Statements This presentation includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company’s plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. In particular, statements regarding the Company’s ability to make cash distributions, the expected performance of the drilling units in the Company’s fleet, estimated duration of customer contracts, contract dayrate amounts and the Company’s ability to purchase drilling rigs from Seadrill Limited in the future are considered forward- looking statements. These statements are made based upon management’s current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Important factors that could cause actual results to differ materially from those in the forwardlooking statements include, but are not limited to offshore drilling market conditions including supply and demand, dayrates, customer dilling programs and effects new rigs on the market, contract awards and rig mobilizations, contract backlog, the performance of the drilling units in the Company’s fleet, delay in payment or disputes with customers, our ability to successfully employ our drilling units, procure or have access to financing, ability to comply with loan covenants, liquidity and adequacy of cash flow from operations, fluctuations in the international price of oil, changes in governmental regulations that affect the Company or the operations of the Company’s fleet, increased competition in the offshore drilling industry, and general economic, political and business conditions globally. Consequently, no forward-looking statement can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks described from time to time in the Company’s filings with the SEC. The Company undertakes no obligation to update any forward looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors,may cause actual results to be materially different from those contained in any forward looking statement. 2

Agenda • Highlights 2Q 2015 • Financial Overview • Summary & Outlook • Q&A session 3

Seadrill Partners – Second Quarter Highlights • Net income attributable to Seadrill Partners Members of $101.3 million • Operating income of $205.5 million. • Economic utilization for the second quarter of 97% • Generated distributable cash flow of $84.7 million • Coverage ratio of 1.53 • Distribution of $0.5675 per unit, in line with the first quarter 2015 distribution • Completed the acquisition of the West Polaris from Seadrill Limited. 4

West Polaris Acquisition West Polaris 204,000,000 Cash 336,000,000 Debt Sellers Credit 50,000,000 590,000,000 Total Consideration Additional Earn-out Provisions Seadrill receives any dayrate in excess of $450,000 per day on current contract ($203k/d) Acquired by Seadrill Operating LP (58% owned by SDLP) Seadrill receives 50% of any dayrate above $450,000 per day, adjusted for daily utilization, after the conclusion of the • Dayrate: $653,000 existing contract until 2025 • Contracted through March 2018 • SDLP order backlog : $493 million Seller's credit due to Seadrill will be reduced if the average contracted dayrate under any replacement contract is below • Location: Angola $450,000 until the seller's credit's maturity in 2021. • Client: Exxon • Water depth: 10,000 ft The seller's credit due will be reduced until Seadrill Partners' • Built: 2008 effective dayrate is $450,000 or until the seller's credit is reduced to zero. 5

Significant Progress Since IPO Major Events to Date Tender rig T-15 acquired for $210 million ~ 46% distribution growth since IPO Tender rig T-16 acquired for $200 million Public offering of $380 million 2.50 West Sirius and West Leo acquired for a total Annualized Distributions per Unit ($) consideration of $2.3 billion on a 100% basis 2.27 2.27 2.21 2.25 2.17 $1.8 billion term loan B and $100 million revolver executed, creating a more efficient capital structure 2.03 2.00 Public offering of $366 million 1.78 West Auriga acquired for $1.24 billion on a 100% 1.75 basis 1.67 1.55 $1.1 billion add-on term loan B 1.50 Public offering of $192 million, and private IPO T-15 T-16 West Sirius West 28% West Vela West placement to Seadrill Limited of $100 million West Leo Auriga additional Polaris Opco interest Acquired an additional 28% interest in Seadrill Operating LP for approximately $373 million Public offering of $245 million West Vela acquired for $900 million on a 100% basis West Polaris acquired for $590 million on a 100% basis 6

Assets & Contracts 2015 2016 2017 2018 2019 2020 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q West Vencedor West Aquarius $541,0 $615,000 (1) West Capella $627,500 (2) West Sirius $297,000 West Polaris $450,000 West Leo $605,000 T-15 $127,000 T-16 $127,000 West Capricorn $535,000 West Auriga $565,000 West Vela $525,000 Contracted Option Period Current average remaining contract term: 3.0 years - Order backlog: $5.0 billion (1) West Capella distributions based on dayrate of US$562,000 7 (2) West Sirius received a notice of termination from BP. In accordance with the cancellation provisions in the West Sirius contract, Seadrill Partners will receive payments over the remaining contract term

Potential Dropdown Opportunities Additional UDW rigs from Seadrill 2015 2016 2017 2018 Unit Customer 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q West Mira Husky Newbu Transit Not Disclosed 01.2021 West Vela BP $565,000 11.2020 West Auriga BP $565,000 10.2020 West Jupiter Total $581,000 12.2019 West Capricorn BP $535,000 07.2019 Sevan Brasil Petrobras $391,000 West Leo Tullow Oil $605,000 West Pegasus PEMEX $365,000 Market Rate West Carina Petrobras $463,000 West Tellus Petrobras $473,000 West Polaris ExxonMobil $653,000 West Neptune LLOG $576,000 West Gemini Total $656,000 West Sirius * - $297,000 Sevan Louisiana LLOG $350,000 West Capella ExxonMobil $627,500 West Aquarius ExxonMobil $541, $615,000 West Hercules Statoil $452,000 West Saturn ExxonMobil $634,000 West Phoenix Total $285,00 $75,000 $285,000 West Orion Petrobras $592,000 West Alpha ExxonMobil $508,000 Sevan Driller Petrobras $417,000 West Venture Statoil West Eminence Petrobras West Eclipse Total West Taurus Petrobras West Navigator - West Rigel - Newbuild Sevan Developer - Newbuild West Aquila - Newbuild West Libra - Newbuild West Draco - Newbuild West Dorado - Newbuild Yard or transit period SDLP Rigs Acquisition of Additional OPCO Ownership Interests from Seadrill Ltd. 42% of four UDW rigs and one tender rig 49% of four UDW rigs * West Sirius received a notice of termination from BP. In accordance with the cancellation provisions in 8 the West Sirius contract, Seadrill Partners will receive payments over the remaining contract term

Financial Performance Highlights 9

Income Statement – Operating income Unaudited accounts in USD millions 2Q15 1Q15 Contract revenues $ 385.6 $ 385.9 Reimbursable revenues 8.9 10.1 Other revenues 22.7 4.7 Total operating revenues $ 417.2 $ 400.7 Vessel and rig operating expenses 122.0 118.5 Amortization of favourable contracts 12.9 11.2 Reimbursable expenses 7.2 9.2 Depreciation and amortization 57.7 57.5 General and administrative expenses 11.9 13.6 Total operating expenses $ 211.7 $ 210.0 Net operating income $ 205.5 $ 190.7 10

Income Statement – Net Income Unaudited accounts in USD millions 2Q15 1Q15 Net operating income $ 205.5 $ 190.7 Financial items Interest income 5.2 1 Interest expense (42.5) (52) (Loss) / Gain on derivative financial instruments 18.3 (51.9) Currency exchange Gain / (Loss) (0.7) (2.6) — Gain on Bargain Purchase 39.6 Total financial items $ 19.9 $ (105.5) Income before income taxes 225.4 85.2 Income taxes (32.9) (14.3) Net income $ 192.5 $ 70.9 Net income attributable to non-controlling interests $ 91.2 $ 32.7 Net income attributable to Seadrill Partners LLC Members $ 101.3 $ 38.2 11

Balance Sheet - Assets Unaudited accounts in USD millions 2Q15 1Q15 Current assets Cash and cash equivalents 197.7 242.0 Accounts receivable, net 272.1 241.6 Amount due from related party 14.6 11.0 Other current assets 192.6 128.6 Total current assets 677.0 623.2 Non-current assets Drilling units 5,629.2 5,098.5 Goodwill 3.2 3.2 Deferred tax assets 20.6 19.2 Other non-current assets 407.2 353.4 Total non-current assets 6,060.2 5,474.3 Total assets 6,737.2 6,097.5 12