Paratus Energy Services (PLSV) Investor update summary

Transaction Overview and Strategic Rationale

• Announced sale and full divestment of jack-up business Fontis Energy for $400 million, including $148 million cash, $15 million deferred, and $237 million seller's credit at stepped interest rates.

• Approximately $760 million of value extracted from Fontis since 2022, including this transaction, cash distributions, and debt reduction.

• Transaction simplifies operations, making the company a pure-play PLSV operator focused on subsea infrastructure.

• Exiting jack-up segment reduces risk exposure to payment irregularities and contract uncertainties, especially in Mexico.

• Transaction expected to close in H2 2026, subject to regulatory and bondholder approvals.

Financial Impact and Capital Structure

• Pro forma net debt expected to decrease from $581 million to $226 million, reducing leverage from 2.2x to 1.4x EBITDA.

• Seller's credit incentivizes early repayment with increasing interest rates over 2.5 years and is secured by a first lien on all rigs.

• Balance sheet becomes more predictable and less volatile, with improved ability to address 2026 bond maturity.

• No breakup fees are associated with the transaction.

• Sale structured as rigs to a JV between Borr Drilling/CME and Mexico operating entities to CME.

Dividend Policy and Shareholder Returns

• Confident in sustaining current quarterly dividend of $0.22 per share, supported by stable PLSV cash flows.

• Industry-leading yield of approximately 20% expected to be maintained over the long term.

• Commitment to stable dividends, with little quarter-to-quarter variation due to multi-year contracts.

• $261 million paid in dividends since IPO and $25 million in share repurchases executed.

• Illustrative normalized annual cash flows support quarterly DPS of $0.20–$0.22 per share.