Drilling contractor financial model, built free.
A three-statement Excel model for an oil and gas drilling contractor, built from your own figures and checked to balance.
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- Usually ready within the hour
We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more
Owns land rigs, jack-ups, semisubmersibles and drillships contracted to producers at a dayrate, earning margin over rig operating costs while rigs work and bearing stacking and reactivation costs when they are idle.
In short
- 01
Three linked statements
Income statement, balance sheet and cash flow, linked in every period.
- 02
Valued three ways
Discounted cash flow, trading multiples and net asset value, side by side.
- 03
Monthly to annual
Monthly, quarterly, half-yearly or annual periods, for up to 30 years.
- 04
Checked every period
A Checks sheet shows the balance sheet balances and the cash reconciles.
The sample, as Excel draws it.
Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.
Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.
How the model works for a drilling contractor.
- How it earns revenue3 formulasRig contract revenue · All drilling rigsRig days availableRigs on this contractDays in periodRig contract revenue · All drilling rigsRig operating daysOperating days under contractOperating days at market ratesOil, gas and LNG sales · Oil and gas asset 1Oil, gas and LNG salesOil, condensate and NGL salesGas sales
- What drives its costs3 formulasRig operating costs · All drilling rigsRig operating costsOperating costs while workingIdle rig costsRoyalties and resource taxes · Oil and gas asset 1RoyaltiesWellhead valueRoyalty rateProduction costs · Oil and gas asset 1Production costsNet productionfrom productionProduction cost per boe
- What it invests in3 formulasRig capex, depreciation and impairment · All drilling rigsRig capexMaintenance capexUpgrade capexRig capex, depreciation and impairment · All drilling rigsClosing net book valueOpening net book valueRig capexDepreciationCapex, depletion and exploration · Oil and gas asset 1Development and sustaining capexSustaining capexGrowth capex
- How it is funded3 formulasDebtRepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweepDebtClosing balanceOpening balanceDrawdownsRepaymentsDebtInterest expenseOpening balanceAll-in interest rateshare of the year
- How profit becomes cash3 formulasWorking capitalTrade receivablesRevenuefrom statementsDebtor daysDays in periodWorking capitalInventoryDirect costs (positive)from statementsInventory daysDays in periodWorking capitalTrade payablesCash operating costs (positive)from statementsCreditor daysDays in period
23 parts, each one tested.
Every part is a tested building block with its own checks: yours is put together from the ones your business needs.
- CPI forecastConsensus curve with long-run anchor
- Exchange rate (US dollar)Exchange rate by financial year
- Corporate costsFixed cost base indexed to CPI
- Working capitalFull working capital
- Income taxCorporate rate with tax losses
- DebtAmortising term loan
- Equity raisingDistribution reinvestment plan
- Discounted cash flow valuationDCF on free cash flow to the firm
- Multiples valuationEV / EBITDA multiple
- Net asset valueBook net asset value
- Energy and utility KPIsUpstream unit metricsThe ratios investors and lenders use to judge energy and utility businesses.
- Key-metric summaryLast-twelve-month and run-rate metrics
- Covenant tests and headroomLVR, gearing and ICR for property
- Discount rate (WACC)CAPM at target gearing
- Rig contract revenueContract backlog then market rateOperating days and revenue for each rig from its contract and the market.
- Rig operating costsOperating cost per dayOperating, stacking and reactivation costs for each rig.
- Rig capex, depreciation and impairmentStraight-line to residual valueMaintenance and upgrade capex, newbuild payments, depreciation and impairment of each rig.
- Field and project registerInterest, reserves and book valueWorking interest, reserves and carrying value of each field or LNG project.
- ProductionExponential declineOil, gas and LNG volumes produced each period (net to the company's interest).
- Oil, gas and LNG salesBenchmark × differential by productRealised prices × volumes for oil, condensate, gas and LNG.
- Royalties and resource taxesRoyalty on wellhead valueGovernment and private royalties, production sharing and petroleum resource taxes.
- Production costsCost per boeLifting, processing, transport and liquefaction costs.
- Capex, depletion and explorationUnits-of-production depletionDevelopment and sustaining capex, exploration spend, and depletion of oil and gas properties.
The numbers it tracks.
- 01marketed rigs
- 02utilisation
- 03average dayrate
- 04contract backlog
- 05cost per rig day
- 06EBITDA
- 07net debt / EBITDA
What it is used for.
- Operating forecastGuide · Financial projections
- ValuationGuide · DCF valuation model
- Lending and credit analysisGuide · Three-statement model
- Restructuring and liquidityGuide · Financial modelling services
- Merger or acquisition (strategic)Guide · Financial modelling services
- Scenarios and sensitivities
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Looking for a drilling contractor financial model template? Ours arrives built for your business, with your figures in it.
See a finished model, sheet by sheetThe sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.