UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On August 7, 2023, Diamond Offshore Drilling, Inc. (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended June 30, 2023. A copy of the press release is furnished herewith as Exhibit 99.1.
Item 7.01. Regulation FD Disclosure
A conference call to discuss the Company’s earnings results has been scheduled for 8:00 a.m. Central Time on August 8, 2023. The information for accessing the conference call is included in the press release. A copy of the slide presentation to be referenced in connection with the conference call is posted on the Investor Relations section of the Company’s website at www.diamondoffshore.com.
The Company hereby incorporates by reference into this Item 7.01 the summary report of the status, as of August 8, 2023, of the Company’s offshore drilling rigs attached as Exhibit 99.2.
The information contained in Items 2.02 and 7.01 and Exhibits 99.1 and 99.2 to this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any previous or future registration statement filed under the Securities Act of 1933, as amended (the “Securities Act”), unless specifically identified therein as being incorporated by reference.
Statements in this report and statements in the press release furnished as Exhibit 99.1 to this report or the rig status report furnished as Exhibit 99.2 to this report, and statements made during the conference call described in this report, in each case that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such statements may include, but are not limited to, statements relating to future financial results; future recovery in the offshore contract drilling industry; expectations regarding the Company’s plans, strategies and opportunities; expectations regarding the Company’s business or financial outlook; future borrowing capacity and liquidity; expected utilization, dayrates, revenues, operating expenses, rig commitments and availability, cash flows, tax rates and accounting treatment, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the effect, impact, potential duration and other implications of the COVID-19 pandemic; the offshore drilling market, including supply and demand, customer drilling programs, repricings, stacking of rigs, effects of new rigs on the market and effect of the volatility of commodity prices; expected work commitments, awards and contracts; future operations; increasing regulatory complexity; general market, business and industry conditions, trends and outlook; and general political conditions, including political tensions, conflicts and war, including Russia’s invasion of Ukraine and related sanctions. and other statements that are not of historical fact. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those currently anticipated or expected by management of the Company. A discussion of certain of the risk factors and other considerations that could materially impact these matters as well as the Company’s overall business and financial performance can be found in the Company’s reports filed with the Securities and Exchange Commission, and readers of this report are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available
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through the Company’s website at www.diamondoffshore.com. These risk factors include, among others, risks associated with worldwide demand for drilling services, level of activity in the oil and gas industry, renewing or replacing expired or terminated contracts, contract cancellations and terminations, maintenance and realization of backlog, competition and industry fleet capacity, impairments and retirements, operating risks, litigation and disputes, permits and approvals for drilling operations, the novel coronavirus (COVID-19) pandemic and related disruptions to the global economy, supply chain and normal business operations across sectors and countries, impact of tax laws and related accounting treatment, including changes in tax laws and rates, regulatory initiatives and compliance with governmental regulations, casualty losses, and various other factors, many of which are beyond the Company’s control. Given these risk factors and other considerations, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of such statement, and the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.
Item 9.01. Financial Statements and Exhibits
| (d) | Exhibits. |
| Exhibit number |
Description | |
| 99.1 | Press Release dated August 7, 2023 | |
| 99.2 | Rig Status Report as of August 8, 2023 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: August 8, 2023 | DIAMOND OFFSHORE DRILLING, INC. | |||||
| By: | /s/ David L. Roland | |||||
| David L. Roland Senior Vice President, General Counsel and Secretary | ||||||
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Exhibit 99.1
|
Contact: Kevin Bordosky Senior Director, Investor Relations (281) 647-4035 |
Diamond Offshore Reports Second Quarter 2023 Results
| • | Backlog of $229 Million Added During Second Quarter |
| • | Ocean GreatWhite Completes Second Well Post-Reactivation; First Option Exercised |
| • | Ocean BlackHawk Completes Senegal Contract; Commences Shipyard Project |
| • | Ocean Apex Completes Shipyard Project; Mobilizing to Location Offshore Australia |
HOUSTON, August 7, 2023 — Diamond Offshore Drilling, Inc. (NYSE: DO) today reported the following results for the second quarter of 2023:
| Three Months Ended | ||||||||
| Thousands of dollars, except per share data |
June 30, 2023 | March 31, 2023 | ||||||
| Total revenues | $ | 281,563 | $ | 232,021 | ||||
| Operating income (loss) | 10,240 | (4,960 | ) | |||||
| Adjusted EBITDA | 36,213 | 21,733 | ||||||
| Net income | 238,783 | 7,229 | ||||||
| Income per diluted share |
$ | 2.29 | $ | 0.07 | ||||
Bernie Wolford, Jr., President and Chief Executive Officer of Diamond Offshore, stated “Our clients continue to commit additional capital to offshore drilling and make critical investments in long-lead subsea equipment. This coupled with strong commodity demand outlooks and favorable economics for deepwater projects are setting the stage for sustainable demand for our drilling services as momentum continues to build in this cycle. During the quarter, we secured term work for the Ocean BlackHawk and added a two-well contract for the Ocean Patriot, both at higher dayrates. We also extended the Ocean Endeavor by two wells, and our customers exercised options for the Ocean GreatWhite and the Ocean BlackRhino. These wins, which total more than $229 million in additional backlog, provide increased visibility to our 2024 revenue stream and are a testament to our team’s performance.
We now have $1.6 billion of backlog with notable average day-rate improvement as we transition to new contracts in the back half of this year.”
Second Quarter Results
Contract drilling revenue for the second quarter totaled $282 million compared to $232 million in the first quarter of 2023. The increase in revenue quarter-over-quarter was primarily driven by a full quarter’s utilization for the Ocean Endeavor and the Ocean GreatWhite, and the Ocean BlackHornet benefiting from a full quarter at its higher dayrate, partially offset by the Ocean Apex being in the shipyard the entire quarter for its special periodic survey and upgrades. Results for the second quarter also included $12.2 million in revenue associated with the previously announced termination of the Ocean Patriot’s contract in the North Sea.
Contract drilling expense for the second quarter increased to $213 million, compared to $173 million in the prior quarter, largely due to higher charter costs for the Company’s managed rigs as a result of higher dayrates and more revenue earning days in the quarter and the Ocean Apex incurring additional costs associated with its shipyard activity in the quarter.
General and administrative expenses were $17 million in the second quarter compared to $20 million in the prior quarter. The decrease was primarily attributable to lower personnel costs and professional fees.
Tax benefit for the second quarter was $243 million as compared to $26 million in the prior quarter. The unusually high tax benefit recorded in the second quarter reflects the results of the computation and application of the Company’s annual effective tax rate in accordance with U.S. GAAP accounting standards, adjusted for discrete items. We expect our tax expense to normalize and the recorded benefit to reverse by year end.
Operational Highlights
Operationally, the Company’s rigs continued to perform exceptionally well, achieving revenue efficiency of at least 96% for the fifth consecutive quarter. This is a notable achievement with the Ocean GreatWhite having been reactivated in March 2023 and the Ocean Endeavor coming back online following its special periodic survey. In addition, the Ocean BlackHawk successfully completed its campaign in Senegal in early July and has mobilized to Las Palmas for its upgrades and preparation for its return to the Gulf of Mexico.
CONFERENCE CALL
A conference call to discuss Diamond Offshore’s earnings results has been scheduled for 8:00 a.m. CDT on Tuesday, August 8, 2023. A live webcast of the call will be available online on the Company’s website, www.diamondoffshore.com. Participants who want to join the call via telephone or want to participate in the question and answer session may register here to receive the dial-in numbers and unique PIN to access the call. An online replay will also be available on www.diamondoffshore.com following the call.
ABOUT DIAMOND OFFSHORE
Diamond Offshore is a leader in offshore drilling, providing innovation, thought leadership and contract drilling services to solve complex deepwater challenges around the globe. Additional information and access to the Company’s SEC filings are available at http://www.diamondoffshore.com/.
FORWARD-LOOKING STATEMENTS
Statements contained in this press release and made in the referenced conference call that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, any statement that may project, indicate or imply future results, events, performance or achievements, including statements relating to future financial results; future recovery in the offshore contract drilling industry; expectations regarding the Company’s plans, strategies and opportunities; expectations regarding the Company’s business or financial outlook; future borrowing capacity and liquidity; expected utilization, dayrates, revenues, operating expenses, rig commitments and availability,
cash flows, tax rates and accounting treatment, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the effect, impact, potential duration and other implications of the COVID-19 pandemic; the offshore drilling market, including supply and demand, customer drilling programs, repricings, stacking of rigs, effects of new rigs on the market and effect of the volatility of commodity prices; expected work commitments, awards and contracts; future operations; increasing regulatory complexity; general market, business and industry conditions, trends and outlook; and general political conditions, including political tensions, conflicts and war, including Russia’s invasion of Ukraine and related sanctions. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by management of the Company. A discussion of certain of the risk factors and other considerations that could materially impact these matters as well as the Company’s overall business and financial performance can be found in Item 1A “Risk Factors” in the Company’s most recent annual report on Form 10-K and the Company’s other reports filed with the Securities and Exchange Commission, and readers of this press release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company’s website at www.diamondoffshore.com. These risk factors include, among others, risks associated with worldwide demand for drilling services, levels of activity in the oil and gas industry, renewing or replacing expired or terminated contracts, contract cancellations and terminations, maintenance and realization of backlog, competition and industry fleet capacity, impairments and retirements, operating risks, litigation and disputes, permits and approvals for drilling operations, the COVID-19 pandemic and related disruptions to the global economy, supply chain and normal business operations across sectors and countries, changes in tax laws and rates, regulatory initiatives and compliance with governmental regulations, casualty losses, and various other factors, many of which are beyond the Company’s control. Given these risk factors and other considerations, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
| Three Months Ended | ||||||||
| June 30, | March 31, | |||||||
| 2023 | 2023 | |||||||
| Revenues: |
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| Contract drilling |
$ | 264,990 | $ | 214,383 | ||||
| Revenues related to reimbursable expenses |
16,573 | 17,638 | ||||||
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| Total revenues |
281,563 | 232,021 | ||||||
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| Operating expenses: |
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| Contract drilling, excluding depreciation |
212,947 | 173,490 | ||||||
| Reimbursable expenses |
15,579 | 17,213 | ||||||
| Depreciation |
27,906 | 27,906 | ||||||
| General and administrative |
16,824 | 19,585 | ||||||
| Gain on disposition of assets |
(1,933 | ) | (1,213 | ) | ||||
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| Total operating expenses |
271,323 | 236,981 | ||||||
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| Operating income (loss) |
10,240 | (4,960 | ) | |||||
| Other income (expense): |
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| Interest income |
5 | 7 | ||||||
| Interest expense |
(12,755 | ) | (12,040 | ) | ||||
| Foreign currency transaction loss |
(1,968 | ) | (1,271 | ) | ||||
| Other, net |
136 | (152 | ) | |||||
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| Loss before income tax benefit |
(4,342 | ) | (18,416 | ) | ||||
| Income tax benefit |
243,125 | 25,645 | ||||||
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| Net income |
$ | 238,783 | $ | 7,229 | ||||
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| Income per share |
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| Basic |
$ | 2.35 | $ | 0.07 | ||||
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| Diluted |
$ | 2.29 | $ | 0.07 | ||||
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| Weighted-average shares outstanding, Basic |
101,487 | 101,331 | ||||||
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| Weighted-average shares outstanding, Diluted |
104,236 | 103,936 | ||||||
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
| June 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
| ASSETS |
||||||||
| Current assets: |
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| Cash and cash equivalents |
$ | 29,685 | $ | 63,041 | ||||
| Restricted cash |
14,284 | 34,293 | ||||||
| Accounts receivable, net of allowance for credit losses |
201,080 | 172,053 | ||||||
| Prepaid expenses and other current assets |
137,473 | 48,695 | ||||||
| Asset held for sale |
1,000 | — | ||||||
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| Total current assets |
383,522 | 318,082 | ||||||
| Drilling and other property and equipment, net of accumulated depreciation |
1,138,544 | 1,141,908 | ||||||
| Other assets |
265,704 | 67,966 | ||||||
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| Total assets |
$ | 1,787,770 | $ | 1,527,956 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Total current liabilities |
$ | 257,028 | $ | 261,661 | ||||
| Long-term debt |
365,859 | 360,644 | ||||||
| Noncurrent finance lease liabilities |
122,499 | 131,393 | ||||||
| Deferred tax liability |
705 | 700 | ||||||
| Other liabilities |
108,753 | 93,888 | ||||||
| Stockholders’ equity |
932,926 | 679,670 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 1,787,770 | $ | 1,527,956 | ||||
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
| Six Months Ended | ||||
| June 30, 2023 | ||||
| Operating activities: |
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| Net income |
$ | 246,012 | ||
| Adjustments to reconcile net income to net cash provided by |
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| Depreciation |
55,812 | |||
| Gain on disposition of assets |
(3,146 | ) | ||
| Deferred tax provision |
(200,658 | ) | ||
| Stock-based compensation expense |
8,082 | |||
| Contract liabilities, net |
(2,707 | ) | ||
| Contract assets, net |
(1,980 | ) | ||
| Deferred contract costs, net |
4,893 | |||
| Other assets, noncurrent |
2,577 | |||
| Other liabilities, noncurrent |
16,870 | |||
| Other |
1,501 | |||
| Current income tax assets |
(85,266 | ) | ||
| Net changes in other operating working capital |
(31,247 | ) | ||
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| Net cash provided by operating activities |
10,743 | |||
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| Investing activities: |
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| Capital expenditures |
(58,953 | ) | ||
| Proceeds from disposition of assets, net of disposal costs |
348 | |||
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| Net cash used in investing activities |
(58,605 | ) | ||
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| Financing activities: |
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| Borrowings under credit facility, net of repayments |
5,000 | |||
| Principal payments of finance lease liabilities |
(10,503 | ) | ||
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| Net cash used in financing activities |
(5,503 | ) | ||
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| Net change in cash, cash equivalents and restricted cash |
(53,365 | ) | ||
| Cash, cash equivalents and restricted cash, beginning of period |
97,334 | |||
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| Cash, cash equivalents and restricted cash, end of period |
$ | 43,969 | ||
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATE, UTILIZATION AND OPERATIONAL EFFICIENCY
(Dayrate in thousands)
| TOTAL FLEET | ||||||||||||||||||||||
| Second Quarter | First Quarter | |||||||||||||||||||||
| 2023 | 2023 | |||||||||||||||||||||
| Average Dayrate (1) |
Utilization (2) |
Revenue Efficiency (3) |
Average Dayrate (1) |
Utilization (2) |
Revenue Efficiency (3) |
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| $ | 299 | 70 | % | 95.8 | % | $ | 272 | 63 | % | 95.9 | % | |||||||||||
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| (1) | Average dayrate is defined as total contract drilling revenue for all of the rigs in our fleet (including managed rigs) per revenue-earning day. A revenue-earning day is defined as a 24-hour period during which a rig earns a dayrate after commencement of operations and excludes mobilization, demobilization and contract preparation days. |
| (2) | Utilization is calculated as the ratio of total revenue-earning days divided by the total calendar days in the period for all rigs in our fleet (including managed and cold-stacked rigs). |
| (3) | Revenue efficiency is calculated as actual contract drilling revenue earned divided by potential revenue, assuming a full dayrate is earned. |
Non-GAAP Financial Measures (Unaudited)
To supplement the Company’s unaudited condensed consolidated financial statements presented on a basis in conformity with generally accepted accounting principles in the United States (GAAP), this press release provides investors with adjusted earnings before interest, taxes and depreciation and amortization (or Adjusted EBITDA), which is a non-GAAP financial measure. Management believes that this measure provides meaningful information about the Company’s performance by excluding certain items that may not be indicative of the Company’s ongoing operating results. This allows investors and others to better compare the Company’s financial results across previous and subsequent accounting periods and to those of peer companies and to better understand the long-term performance of the Company. Non-GAAP financial measures should be considered a supplement to, and not as a substitute for, or superior to, contract drilling revenue, contract drilling expense, operating income or loss, cash flows from operations or other measures of financial performance prepared in accordance with GAAP.
Reconciliation of Loss Before Income Tax Benefit (Expense) to Adjusted EBITDA:
(In thousands)
| Three Months Ended | ||||||||
| June 30, | March 31, | |||||||
| 2023 | 2023 | |||||||
| As reported loss before income tax benefit | $ | (4,342 | ) | $ | (18,416 | ) | ||
| Interest expense |
12,755 | 12,040 | ||||||
| Interest income |
(5 | ) | (7 | ) | ||||
| Foreign currency transaction loss |
1,968 | 1,271 | ||||||
| Depreciation |
27,906 | 27,906 | ||||||
| Gain on disposition of assets |
(1,933 | ) | (1,213 | ) | ||||
| Other, net |
(136 | ) | 152 | |||||
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| Adjusted EBITDA |
$ | 36,213 | $ | 21,733 | ||||
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Exhibit 99.2
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Diamond Offshore Drilling, Inc. Rig Status Report August 8, 2023 Recent Commercial Activity (1) |
| New Contracts and Extensions | ||
| Ocean BlackHawk | Secured one-year + one-year priced option contract with Anadarko Petroleum Corporation (a wholly owned subsidiary of Occidental) in the US GOM, estimated to commence in Nov 2023. The firm term is expected to run until Nov 2024. | |
| Ocean BlackRhino | Priced option wells exercised by Woodside in Senegal with an estimated duration of 60 days. The rig is now expected to remain under this contract until Jun 2024. | |
| Ocean GreatWhite | Priced option well exercised by bp in the UK with an estimated duration of 60 days. The rig is now expected to remain under this contract until Apr 2024. | |
| Ocean Endeavor | Secured two-well extension with Shell in the UK with an estimated duration of 120 days, expected to commence mid-contract, in early November 2023. After this extension, the rig reverts to the current contract rate and is expected to remain under this contract until Oct 2024. | |
| Ocean Patriot | Secured two-well contract with Repsol in the UK with an estimated duration of 60 days, estimated to commence in Sep 2023. | |
| Other Activity | ||
| Ocean BlackHawk | Concluded its campaign with Woodside in Senegal in early July and mobilized to Las Palmas to prepare for its next contract in the GOM. | |
| Ocean Patriot | Concluded its campaign with Apache in the UK in early July and is expected to commence its next contract with Repsol in Sep 2023. | |
| Ocean Apex | Concluded its 5-year Special Periodic Survey in July and began mobilizing to its next contract location in Australia with commencement expected in Aug 2023. | |
| Vela | Commenced operations with bp in the GOM in Apr 2023. The term is expected to run until Aug 2023 and thereafter will resume its contract with Beacon and is expected to run through Feb 2024. | |
NOTES
| (1) | Denotes activity since the end of the first quarter 2023. |
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Diamond Offshore Drilling, Inc. Rig Status Report August 8, 2023 Updated information noted in bold print |
| Water Depth¹ |
Year | Estimated | Estimated | |||||||||||||||||||||||||||
| Rig Name |
(feet) | Type2 | Built3 | Location | Operator | Start Date | End Date | Comments | ||||||||||||||||||||||
| Gulf of Mexico (GOM) |
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| Ocean BlackHornet |
12,000 | DS 15K DP | 2014 | US GOM | bp | Feb-23 | Feb-25 | Approximately 30 days out of service in 2024 for 5-year SPS. | ||||||||||||||||||||||
| Ocean BlackLion |
12,000 | DS 15K DP | 2015 | US GOM | bp | Sep-22 | Sep-24 | |||||||||||||||||||||||
| Auriga4 |
12,000 | DS 15K DP | 2013 | US GOM | bp | Mar-23 | Mar-24 | |||||||||||||||||||||||
| Vela4 |
12,000 | DS 15K DP | 2013 | US GOM | bp | Apr-23 | Aug-23 | |||||||||||||||||||||||
| Beacon | Aug-23 | Feb-24 | 2 priced options remain with an estimated duration of 120 days each. | |||||||||||||||||||||||||||
| North Sea / Mediterranean / W. Africa |
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| Ocean Patriot |
3,000 | SS 15K | 1983 | UK | Apache | Jun-21 | Jul-23 | |||||||||||||||||||||||
| Repsol | Sep-23 | Nov-23 | ||||||||||||||||||||||||||||
| Ocean Endeavor |
10,000 | SS 15K | 2007 | UK | Shell | May-19 | Oct-24 | |||||||||||||||||||||||
| Ocean GreatWhite |
10,000 | SS 15K DP | 2016 | UK | bp | Mar-23 | Apr-24 | 7 priced option wells remain with an estimated duration of 60 days each. | ||||||||||||||||||||||
| Ocean BlackHawk |
12,000 | DS 15K DP | 2014 | Senegal | Woodside | Jul-22 | Jul-23 | |||||||||||||||||||||||
| US GOM | |
Anadarko Petroleum Corporation (a wholly owned subsidiary of Occidental) |
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Nov-23 | Nov-24 | Approximately 120 days for 5-year SPS, contract preparation, mobilization and acceptance testing prior to commencement. 1-year priced option. | ||||||||||||||||||||||||
| Ocean BlackRhino |
12,000 | DS 15K DP | 2014 | Senegal | Woodside | Jul-21 | Jun-24 | Approximately 70 days out of service in 2024 for 5-year SPS and MPD upgrade. | ||||||||||||||||||||||
Page 2 of 4
| Water Depth¹ |
Year | Estimated | Estimated | |||||||||||||||||||||||||||
| Rig Name |
(feet) | Type2 | Built3 | Location | Operator | Start Date | End Date | Comments | ||||||||||||||||||||||
| Australasia |
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| Ocean Apex |
6,000 | SS 15K | 2014 | Australia | Woodside | Jun-22 | Apr-23 | |||||||||||||||||||||||
| Australia | Woodside | Aug-23 | Oct-23 | |||||||||||||||||||||||||||
| Australia | Inpex | Oct-23 | Jul-24 | |||||||||||||||||||||||||||
| Australia | Santos | Jul-24 | Feb-25 | 5 priced option wells with an estimated duration of 160 days. | ||||||||||||||||||||||||||
| Australia | Chevron | Feb-25 | Mar-25 | 1 priced option well with an estimated duration of 40 days. | ||||||||||||||||||||||||||
| South America |
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| Ocean Courage |
10,000 | SS 15K DP | 2009 | Brazil | Petrobras | Jun-21 | Sep-23 | |||||||||||||||||||||||
| Nov-23 | Nov-27 | Approximately 110 days for 5-year SPS, contract preparation and acceptance testing prior to commencement. | ||||||||||||||||||||||||||||
| Stacked |
||||||||||||||||||||||||||||||
| Ocean Valiant |
5,500 | SS 15K | 1988 | UK | — | May-20 | — | |||||||||||||||||||||||
| Ocean Onyx |
6,000 | SS 15K | 2014 | Malaysia | — | Sep-22 | — | |||||||||||||||||||||||
| Ocean Monarch |
10,000 | SS 15K | 2008 | Malaysia | — | May-22 | — | |||||||||||||||||||||||
NOTES
| (1) | Water Depth refers to the rig’s rated operating water depth capability. Often, rigs are capable of drilling or have drilled in greater water depths. |
| (2) | Rig Type and Capabilities: DS=Drillship; 15K=15,000 PSI Well-Control System; DP=Dynamically Positioned Rig; SS=Semisubmersible |
| (3) | Year Built represents when rig was built and originally placed in service or year redelivered with significant enhancements that enabled the rig to be classified within a different floater category than when originally constructed. |
| (4) | Managed on behalf of a subsidiary of Seadrill Limited. |
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Diamond Offshore Drilling, Inc. Rig Status Repor |
Statements contained in this report that are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Company’s overall business and financial performance can be found in the Company’s reports filed with the Securities and Exchange Commission, and readers of this report are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company’s website at www.diamondoffshore.com. These risk factors include, among others, risks associated with worldwide demand for drilling services, level of activity in the oil and gas industry, renewing or replacing expired or terminated contracts, contract cancellations and terminations, maintenance and realization of backlog, competition and industry fleet capacity, impairments and retirements, operating risks, changes in tax laws and rates, regulatory initiatives and compliance with governmental regulations, construction of new builds, casualty losses, and various other factors, many of which are beyond the Company’s control. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this report. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.
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