NorAm Drilling AS

Investor Presentation • Aug 26, 2025

Q2 2025 Presentation

A u g u s t 2 6 , 2 0 2 5

Disclaimer

This presentation contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including NorAm management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although NorAm believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, NorAm cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions. The Company has not taken any steps to verify any of the information contained herein. No representation or warranty (express or implied) is made as to any information contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements. The Company does not accept any liability whatsoever arising directly or indirectly from the use of the materials.

The Presentation may contain certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. Any such forward-looking statements are solely opinions and forecasts reflecting views as of the date set out on the cover of these materials, which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. No liability for such statements, or any obligation to update any such statements or to conform such statements to actual results, is assumed. Furthermore, information about past performance given in this Presentation is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance.

This presentation and related materials speaks only as of the date set out on the cover, and the views expressed are subject to change based on a number of factors. The Company does not undertake any obligation to amend, correct or update the materials or to provide any additional information about any matters described herein, but reserves the right to amend, correct or update the materials and provide additional information.

Q2 2025 Highlights

Revenue • \$24.9 million in Q2 vs. \$25.8 million in Q1 2025

• Utilization 86.0% utilization in Q2 vs. 89.7% in Q1 2025

EBITDA • Adj. EBITDA of \$5.3 million in Q2 vs. \$6.7 million in Q1 2025

Net results

• Profit after tax of \$3.7m
• Earnings per share of \$0.08

Backlog • Backlog of \$12.2 million as of August 25, 2025

Recent Events and Outlook

Monthly cash distributions

Fleet status

outlook

Stable near term

• 33 consecutive monthly distributions, totaling \$82.2m or NOK ~20.05 per share
• Latest distribution of \$0.03/sh implies 13.5% dividend yield p.a.(1)
• We intend to continue to payout excess earnings
• 9 out of 11 rigs contracted

• Pursuing opportunities for the two idle rigs, including outside of Permian

• Uncertainties associated with potential US tariffs and OPEC+

• E&Ps remain focused on operational and capital discipline
• Current WTI prices suggest flat to slightly down activity levels in Permian
• US shale production likely peaking causing longer term optimism for Super Spec rigs

Rig Count Decline Indicates Lower Production Ahead

• Permian rig count down ~50 rigs YTD and down 100 rigs since 2023
• Subject to WTI prices, bottom for Permian rig counts likely happening soon
• Super Spec rigs continue to be the "rig of choice"

Key Operational Figures

Selected operational and financial data

(All amounts in USD per day) unless noted	2Q 2025	1Q 2025	4Q 2024	3Q 2024
Rig utilization	86.0%	89.7%	90.6%	89.3%
Rig metrics per day:
Direct margin	9,602	11,012	10,932	10,643
Operation and SG&A allocation	2,325	2,391	2,415	2,370
Maintenance and capex allocation	448	713	1,054	786
Net cash flow margin	6,830	7,908	7,463	7,487
Operating costs (1)	15,778	14,406	14,899	15,356
Cash break even, working rigs (2)	18,550	17,510	18,368	18,054
Direct stacked cost per day	7,344	10,364	12,052	9.800
Reimbursements of "out-of-pocket" expenses (000's)	2,091	2,405	2,549	3,176

(1) Excludes reimbursements for "out-of-pocket" expenses

(2) Excludes reimbursements for "out-of-pocket" expenses. Excludes operating costs of rigs not active

• Q2 direct margin impacted by stacking of 2 R&M up in Q2 due to repairs and recertifications nd rig and higher R&M
• Continue to see minimal capex requirements

Income statement

(All amounts in USD 1000s)	2Q 2025	1Q 2025	4Q 2024	3Q 2024
Total Operating Income	24,940	25,786	26,604	26,528
Payroll Expenses	8,366	8,660	8,775	8,862
Depreciation of Tangible and Intangible Assets	1,466	1,453	4,970	4,943
Rig Mobilization, Service and Supplies	7,244	6,673	7,578	7,833
Insurance Rigs and Employees	1,894	1,877	1,601	1,499
Other Operating Expenses	2,172	1,921	2,040	2,420
Total Operating Expenses	21,142	20,584	24,964	25,557
Operating Profit (+)/ Loss (-)	3,798	5,203	1,641	970
Net Financial Items	51	150	-26	83
Profit (+)/Loss(-) before Income Tax	3,849	5,352	1,614	1,053
Income Tax Expense	198	200	1,596	353
Net Profit (+)/Loss (-)	3,651	5,152	19	700

Balance Sheet And Cash Flow Statement

(All amounts in USD 1000s)	2Q 2025	1Q 2025	4Q 2024	3Q 2024
Non current assets
Rigs and Accessories	53,865	54,992	55,732	59,660
Vehicles and Office Equipment	566	497	569	641
Current assets
Accounts Receivable	12,421	11,111	12,339	11,965
Other Receivable	3,014	933	1,673	1,732
Bank Deposits/Cash	7,543	12,064	8,365	10,370
Total Assets	77,409	79,597	78,678	84,368
Equity
Issued Capital	12,580	12,580	12,569	12,569
Share Premium	84,842	86,554	91,802	100,403
Other Shareholder Contribution	369	369	369	369
Other Equity	-37,200	-40,852	-46,004	-46,023
Total Equity	60,591	58,651	58,735	67,318
Non current liabilities
Deferred Tax	5,234	5,234	5,234	4,825
Current Liabilities
Accounts Payable	5,837	5,410	3,616	5,102
Tax Payable	400	1,981	1,781	695
Public Duties Payable	168	66	169	159
Other Current Liabilities	5,180	8,255	9,143	6,269
Total Liabilities	11,585	15,712	19,943	17,050
Total Equity & Liabilities	77,409	79,597	78,678	84,368

Balance sheet Cash flow statement

(All amounts in USD 1000s)	2Q 2025	1Q 2025	4Q 2024	3Q 2024
Net Profit (+)/Loss (-) before tax	3,849	5,352	1,614	1,053
Tax	-1,810	-51
Depreciation of fixed assets	1,466	1,453	4,970	4,943
Change in accounts receivable	-1,310	1,228	-374	-742
Change in accounts payable	427	1,792	-1,484	-24
Change in other current balance sheet items	-1,479	-226	-619	447
Net cash flow from operational activities	1,143	9,548	4,107	5,677
Purchase of tangible fixed assets	-407	-641	-971	-723
Net cash flow from investing activities	-407	-641	-971	-723
Repayment of long term debt
Issued capital		12		21
Dividends	-5,257	-5,220	-5,141	-5,183
Net cash flow from financing activities	-5,257	-5,208	-5,141	-5,162
Net change in cash and cash equivalent	-4,521	3,699	-2,005	-209
Cash and cash equivalents opening balance	12,064	8,365	10,370	10,579
Cash and cash equivalents closing balance	7,543	12,064	8,365	10,370

• Cash decreased by ~\$4m due to working capital reversals and Norwegian tax payments

NorAm Drilling - Summary

Permian focus

Fully upgraded with state-of-the-art walking systems and racking capacity, with a track record of drilling the longest wells in the Permian

Top quality customer portfolio

The Permian holds the largest energy reserves in the U.S

Industry low cost break-even

latest horizontal drilling technology

Lean management team, skilled labor and low employee turnover leads to optimized costs and operations

Strategically positioned to unlock untapped oil reserves by employing the

Debt free and full payout strategy

13.5%

11

100%

Monthly dividends with total cash distributions of ~NOK20 per share since December 2022. Latest monthly distribution implies annualized yield of ~13.5%

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