Analyst:

1
Energy Sector Update

• Analyst
• Samuel Indyawan
• Alex Li
• Associates
• Porus Prakash
• Alison Friedman
• Eva Olesky

2
Current Events Key Metrics

• Crude Oil Futures 79.45
• Slightly lower due to concerns over US growth
• Weather and political disturbances are at a
  minimum
• Higher refinery utilization helping ease demand
  on oil
• Strong international demand
• Natural Gas Futures 6.38
• Prices have risen due to continued weather
  disturbances

3
Company Information

• Overview
• Contract Drilling Services (Oil Gas)
• Deepwater Harsh-Condition Drilling
• Operations
• North America, South America, Europe, Asia and
  Australia
• Largest Offshore Driller
• 82 units
• Largest Driller by Market Cap

4
Comparables
5
Merger with GlobalSantaFe

• Transocean to merge with GlobalSantaFe by
  12/31/07
• First major recapitalization in deep drilling
  segment
• Together will own over half of offshore rigs
• Combined revenue backlog of 33 billion
• Cost savings of 100 million to 150 million a
  year
• Distribution of 15 billion to stockholders of
  both companies

6
Risks

• Political
• Weather
• Oil Price
• Number of Operational Rigs
• Economic Activity