NorAm Drilling (NORAM) Pareto Conference 2024 Presentation summary

Strategic positioning and operations

• Operates 11 modernized ultra super spec rigs, fully upgraded for advanced horizontal drilling in the Permian Basin.

• Focuses on the Permian, the largest energy reserve region in the U.S., with a strong track record of drilling the longest wells (25,000+ feet).

• Maintains a lean management team and skilled labor force, resulting in low costs and high operational efficiency.

• Key customers include major E&P operators such as ConocoPhillips, OXY, and Double Eagle.

Market environment and industry trends

• Permian Basin accounts for 60% of U.S. proved oil reserves and is the most productive onshore region.

• DUC (drilled but uncompleted) well inventory is nearly depleted, indicating increased future drilling demand.

• Permian oil production growth is slowing due to fewer well completions and strong capital discipline among E&P operators.

• M&A activity and consolidation are limiting rig counts and operating days.

Financial performance and shareholder returns

• Operates debt free with a strategy to return all excess cash to shareholders through monthly dividends.

• Has distributed NOK 15.5 per share since listing, with the latest monthly payout implying a 15% annualized yield based on recent share price.

• Secured a $33.7 million backlog beyond September 2024, up 55% month-over-month, with 10 of 11 rigs contracted.

• Paid 22 dividends totaling $64 million since listing.