UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: (Date of earliest event reported): November 2, 2015
Diamond Offshore Drilling, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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1-13926 |
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76-0321760 |
(State or other jurisdiction of incorporation) |
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(Commission file number) |
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(I.R.S. Employer Identification No.) |
15415 Katy Freeway
Houston, Texas 77094
(Address of principal executive offices, including
Zip Code)
(281) 492-5300
(Registrants telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition
On November 2, 2015, Diamond Offshore Drilling, Inc. (the Company) issued a press release announcing its financial
results for the fiscal quarter ended September 30, 2015. 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 Companys earnings results has been scheduled for 7:30 a.m. Central Time on November 2, 2015. The information for accessing the conference call is included in
the press release.
The Company hereby incorporates by reference into this Item 7.01 the summary report of the status, as
of November 2, 2015, of the Companys 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 the press release furnished as Exhibit 99.1 to this report and in the summary report furnished as Exhibit 99.2 to this
report and statements made during the conference call described in this report 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 include, but are not limited to, statements concerning drilling rig deliveries, operations and timing; contract effectiveness, effective dates and estimated duration; plans regarding retirement and scrapping of drilling rigs;
future impairments; future dividends; expectations of future backlog, revenue, operating costs and performance; future liquidity, financial condition, market conditions, commodity prices and strategic opportunities; revenue expected to result from
backlog; future credit ratings; future dayrates, future status, start and end dates and future contracts and availability; future contract opportunities and termination rights; contract noncompliance by customers and other third parties; letters of
intent; utilization, surveys, downtime and other aspects of the Companys drilling rigs; customer discussions and outcomes thereof and the impact of these and related events on the Companys operations and revenues; rigs being upgraded or
to be upgraded and rigs under construction; future impact of regulations; 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 the risk factors and other considerations that could materially impact these matters as well as the
Companys overall business and financial performance can be found in the Companys 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. 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,
2
impairments and retirements, declaration of dividends, 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 Companys 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 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 Companys 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
(a) Financial statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Shell company transactions.
Not applicable.
(d) Exhibits.
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Exhibit number |
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Description |
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99.1 |
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Press Release dated November 2, 2015 |
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99.2 |
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Rig Status Report as of November 2, 2015 |
3
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.
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Date: November 2, 2015 |
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DIAMOND OFFSHORE DRILLING, INC. |
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By: |
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/s/ DAVID L. ROLAND |
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David L. Roland Senior Vice
President, General Counsel and Secretary |
4
EXHIBIT INDEX
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Exhibit Number |
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Description |
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99.1 |
|
Press Release dated November 2, 2015 |
|
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99.2 |
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Rig Status Report as of November 2, 2015 |
5
Exhibit 99.1
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Contact: Darren
Daugherty Director, Investor Relations
(281) 492-5370 |
Diamond Offshore Announces Third Quarter 2015 Results
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Reports net income of $136 million, $0.99 per share |
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Confirms one-year contract for semisubmersible rig Ocean Guardian |
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Announces $333 million, 875-day backlog addition to semisubmersible rig Ocean Courage |
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Declares regular cash dividend of $0.125 per share |
HOUSTON, November 2, 2015 Diamond Offshore Drilling, Inc. (NYSE: DO) today reported net income of $136 million, or $0.99 per share, in the third quarter of 2015, compared to $53
million, or $0.38 per share, in the third quarter of 2014. Revenues in the third quarter of 2015 were $610 million, compared to revenues of $738 million in the third quarter of 2014.
I am pleased with our solid third quarter results, which demonstrate Diamond Offshores ability to execute on managing our costs and controlling downtime, said Marc Edwards, President and
Chief Executive Officer. During the quarter, our three newbuild drillships delivered operational efficiency of 99.3 percent, which directly benefits our topline and improves project economics for our clients.
Diamond Offshore also confirmed the Ocean Guardian was awarded a contract for a one-year term in the UK North Sea beginning in March of 2016 at a
rate of $220,000 per day.
The Company announced that it reached agreement with Petrobras for contracts on the semisubmersible rig Ocean
Alliance and the drillship Ocean Clipper to be ended as of October 30, 2015, ahead of their original end dates, in return for an additional 875 days of contract term on the semisubmersible rig Ocean Courage. The additional
term will be at a rate of $380,000 per day, representing revenue backlog of $333 million, and will extend the contract into mid-2020. After export from Brazil, the Ocean Alliance will be cold-stacked and the Ocean Clipper will be
retired and scrapped. The terminated portions of the contracts represent a loss to revenue backlog of approximately $91 million.
Diamond
Offshore also announced that it has declared a regular quarterly dividend of $0.125 per share, payable on December 1, 2015 to shareholders of record as of November 13, 2015.
CONFERENCE CALL
A conference call to discuss Diamond Offshores earnings results has been
scheduled for 7:30 a.m. CST today. A live webcast of the call will be available online on the Companys website, www.diamondoffshore.com. Those interested in participating in the question and answer session should dial 800-247-9979 or
973-321-1100, for international callers. The conference ID number is 60130700. 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 contract drilling services to the energy industry around the globe with a total fleet of 33 offshore drilling rigs, including one rig under
construction. Diamond Offshores fleet consists of 23 semisubmersibles, one of which is under construction, four dynamically positioned drillships, and six jack-ups. Additional information about the Company and access to the Companys SEC
filings are available at www.diamondoffshore.com. Diamond Offshore is owned 53% by Loews Corporation (NYSE: L).
FORWARD-LOOKING STATEMENTS
Contract revenue as stated above assumes 100% rig utilization. Rig utilization rates vary depending on a variety of circumstances, many of
which are beyond the Companys control. Rig utilization rates generally approach 92-98% during contracted periods; however, utilization rates can be adversely impacted by additional downtime due to various operating factors, including, but not
limited to, weather conditions and unscheduled repairs and maintenance. Additional information on the Company and access to the Companys SEC filings is available at www.diamondoffshore.com.
Statements contained in this press release or made during the above conference call that are not historical facts are forward-looking
statements within the meaning of the federal securities laws. Such statements include, but are not limited to, statements concerning drilling rig deliveries, operations and timing; contract effectiveness, effective dates and estimated
duration; plans regarding retirement and scrapping of drilling rigs; future impairments; future dividends; expectations of future backlog, revenue, operating costs and performance; future liquidity, financial condition, market conditions, commodity
prices and strategic opportunities; revenue expected to result from backlog; future credit ratings; future dayrates, future status, start and end dates and future contracts and availability; future contract opportunities and termination rights;
contract noncompliance by customers and other third parties; utilization, surveys, downtime and other aspects of the Companys drilling rigs; statements concerning customer discussions and outcomes thereof and the impact of these and related
events on the Companys operations and revenues; rigs being upgraded or to be upgraded and rigs under construction; 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 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 Companys overall business and financial performance can be found in the Companys 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 Companys 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, declaration of dividends, 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 Companys 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
press release. 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 Companys 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
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2015 |
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2014 |
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2015 |
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2014 |
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Revenues: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
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Contract drilling |
|
$ |
599,036 |
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$ |
727,888 |
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$ |
1,816,055 |
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$ |
2,062,750 |
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Revenues related to reimbursable expenses |
|
|
10,706 |
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|
|
9,794 |
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|
47,775 |
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|
76,600 |
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|
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|
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|
|
|
|
|
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|
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Total revenues |
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|
609,742 |
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|
|
737,682 |
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|
|
1,863,830 |
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2,139,350 |
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Operating expenses: |
|
|
|
|
|
|
|
|
|
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|
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Contract drilling, excluding depreciation |
|
|
277,944 |
|
|
|
399,802 |
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|
|
971,471 |
|
|
|
1,164,968 |
|
Reimbursable expenses |
|
|
10,476 |
|
|
|
9,437 |
|
|
|
46,904 |
|
|
|
75,393 |
|
Depreciation |
|
|
118,086 |
|
|
|
108,854 |
|
|
|
378,714 |
|
|
|
324,771 |
|
General and administrative |
|
|
16,888 |
|
|
|
18,604 |
|
|
|
50,888 |
|
|
|
61,909 |
|
Impairment of assets |
|
|
2,546 |
|
|
|
109,462 |
|
|
|
361,074 |
|
|
|
109,462 |
|
Restructuring and separation costs |
|
|
1,574 |
|
|
|
|
|
|
|
8,735 |
|
|
|
|
|
Loss (gain) on disposition of assets |
|
|
794 |
|
|
|
1,107 |
|
|
|
19 |
|
|
|
(7,612 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
428,308 |
|
|
|
647,266 |
|
|
|
1,817,805 |
|
|
|
1,728,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
181,434 |
|
|
|
90,416 |
|
|
|
46,025 |
|
|
|
410,459 |
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
629 |
|
|
|
86 |
|
|
|
1,796 |
|
|
|
644 |
|
Interest expense |
|
|
(21,350 |
) |
|
|
(9,378 |
) |
|
|
(70,800 |
) |
|
|
(46,056 |
) |
Foreign currency transaction gain (loss) |
|
|
(1,163 |
) |
|
|
425 |
|
|
|
954 |
|
|
|
(3,724 |
) |
Other, net |
|
|
217 |
|
|
|
90 |
|
|
|
702 |
|
|
|
598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax expense |
|
|
159,767 |
|
|
|
81,639 |
|
|
|
(21,323 |
) |
|
|
361,921 |
|
|
|
|
|
|
Income tax expense |
|
|
(23,345 |
) |
|
|
(28,994 |
) |
|
|
(7,578 |
) |
|
|
(73,753 |
) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) |
|
$ |
136,422 |
|
|
$ |
52,645 |
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|
$ |
(28,901 |
) |
|
$ |
288,168 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Income (loss) per share |
|
$ |
0.99 |
|
|
$ |
0.38 |
|
|
$ |
(0.21 |
) |
|
$ |
2.09 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of common stock |
|
|
137,159 |
|
|
|
137,146 |
|
|
|
137,156 |
|
|
|
137,582 |
|
Dilutive potential shares of common stock |
|
|
44 |
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|
|
1 |
|
|
|
|
|
|
|
3 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total weighted average shares outstanding |
|
|
137,203 |
|
|
|
137,147 |
|
|
|
137,156 |
|
|
|
137,585 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
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Three Months Ended |
|
|
|
September 30, |
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June 30, |
|
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September 30, |
|
|
|
2015 |
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2015 |
|
|
2014 |
|
REVENUES |
|
|
|
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|
|
|
|
|
|
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Floaters: |
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater |
|
$ |
376,195 |
|
|
$ |
315,670 |
|
|
$ |
313,124 |
|
Deepwater |
|
|
136,668 |
|
|
|
181,104 |
|
|
|
111,372 |
|
Mid-water |
|
|
69,500 |
|
|
|
96,926 |
|
|
|
258,028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Floaters |
|
|
582,363 |
|
|
|
593,700 |
|
|
|
682,524 |
|
Jack-ups |
|
|
16,673 |
|
|
|
23,742 |
|
|
|
45,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Contract Drilling Revenue |
|
$ |
599,036 |
|
|
$ |
617,442 |
|
|
$ |
727,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues Related to Reimbursable Expenses |
|
$ |
10,706 |
|
|
$ |
16,590 |
|
|
$ |
9,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTRACT DRILLING EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
Floaters: |
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater |
|
$ |
156,107 |
|
|
$ |
161,485 |
|
|
$ |
157,655 |
|
Deepwater |
|
|
67,630 |
|
|
|
86,464 |
|
|
|
72,367 |
|
Mid-water |
|
|
35,784 |
|
|
|
66,735 |
|
|
|
132,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Floaters |
|
|
259,521 |
|
|
|
314,684 |
|
|
|
362,362 |
|
Jack-ups |
|
|
12,507 |
|
|
|
20,873 |
|
|
|
28,056 |
|
Other |
|
|
5,916 |
|
|
|
7,312 |
|
|
|
9,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Contract Drilling Expense |
|
$ |
277,944 |
|
|
$ |
342,869 |
|
|
$ |
399,802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reimbursable Expenses |
|
$ |
10,476 |
|
|
$ |
16,336 |
|
|
$ |
9,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING (LOSS) INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
Floaters: |
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater |
|
$ |
220,088 |
|
|
$ |
154,185 |
|
|
$ |
155,469 |
|
Deepwater |
|
|
69,038 |
|
|
|
94,640 |
|
|
|
39,005 |
|
Mid-water |
|
|
33,716 |
|
|
|
30,191 |
|
|
|
125,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Floaters |
|
|
322,842 |
|
|
|
279,016 |
|
|
|
320,162 |
|
Jack-ups |
|
|
4,166 |
|
|
|
2,869 |
|
|
|
17,308 |
|
Other |
|
|
(5,916 |
) |
|
|
(7,312 |
) |
|
|
(9,384 |
) |
Reimbursable expenses, net |
|
|
230 |
|
|
|
254 |
|
|
|
357 |
|
Depreciation |
|
|
(118,086 |
) |
|
|
(123,329 |
) |
|
|
(108,854 |
) |
General and administrative expense |
|
|
(16,888 |
) |
|
|
(16,548 |
) |
|
|
(18,604 |
) |
Gain (loss) on disposition of assets |
|
|
(794 |
) |
|
|
164 |
|
|
|
(1,107 |
) |
Impairment of assets |
|
|
(2,546 |
) |
|
|
|
|
|
|
(109,462 |
) |
Restructuring and separation costs |
|
|
(1,574 |
) |
|
|
(993 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Income |
|
$ |
181,434 |
|
|
$ |
134,121 |
|
|
$ |
90,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2015 |
|
|
2014 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
141,131 |
|
|
$ |
233,623 |
|
Marketable securities |
|
|
13,621 |
|
|
|
16,033 |
|
Accounts receivable, net of allowance for bad debts |
|
|
515,754 |
|
|
|
463,862 |
|
Prepaid expenses and other current assets |
|
|
163,871 |
|
|
|
185,541 |
|
Assets held for sale |
|
|
6,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
841,077 |
|
|
|
899,059 |
|
Drilling and other property and equipment, net of accumulated depreciation |
|
|
6,888,248 |
|
|
|
6,945,953 |
|
Other assets |
|
|
121,171 |
|
|
|
176,277 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
7,850,496 |
|
|
$ |
8,021,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
|
|
|
$ |
249,962 |
|
Short-term borrowings |
|
|
492,996 |
|
|
|
|
|
Other current liabilities |
|
|
397,421 |
|
|
|
606,684 |
|
Long-term debt |
|
|
1,994,710 |
|
|
|
1,994,526 |
|
Deferred tax liability |
|
|
417,621 |
|
|
|
530,394 |
|
Other liabilities |
|
|
171,595 |
|
|
|
188,160 |
|
Stockholders equity |
|
|
4,376,153 |
|
|
|
4,451,563 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity |
|
$ |
7,850,496 |
|
|
$ |
8,021,289 |
|
|
|
|
|
|
|
|
|
|
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
(Dayrate in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
2015 |
|
|
Second Quarter
2015 |
|
|
Third Quarter
2014 |
|
|
|
Average
Dayrate (1) |
|
|
Utilization (2) |
|
|
Operational Efficiency
(3) |
|
|
Average
Dayrate (1) |
|
|
Utilization (2) |
|
|
Operational Efficiency
(3) |
|
|
Revised Average
Dayrate (4) |
|
|
Utilization (2) |
|
|
Operational Efficiency
(3) |
|
Ultra-Deepwater Floaters |
|
$ |
479 |
|
|
|
71 |
% |
|
|
96.8 |
% |
|
$ |
483 |
|
|
|
63 |
% |
|
|
90.9 |
% |
|
$ |
491 |
|
|
|
77 |
% |
|
|
92.2 |
% |
Deepwater Floaters |
|
$ |
361 |
|
|
|
59 |
% |
|
|
90.3 |
% |
|
$ |
451 |
|
|
|
63 |
% |
|
|
99.3 |
% |
|
$ |
356 |
|
|
|
57 |
% |
|
|
95.5 |
% |
Mid-Water Floaters |
|
$ |
289 |
|
|
|
31 |
% |
|
|
97.5 |
% |
|
$ |
278 |
|
|
|
32 |
% |
|
|
99.7 |
% |
|
$ |
265 |
|
|
|
59 |
% |
|
|
94.1 |
% |
Jack-ups |
|
$ |
97 |
|
|
|
31 |
% |
|
|
99.8 |
% |
|
$ |
83 |
|
|
|
53 |
% |
|
|
98.6 |
% |
|
$ |
99 |
|
|
|
83 |
% |
|
|
99.3 |
% |
Fleet Total |
|
|
|
|
|
|
|
|
|
|
95.5 |
% |
|
|
|
|
|
|
|
|
|
|
95.9 |
% |
|
|
|
|
|
|
|
|
|
|
94.7 |
% |
(1) |
Average dayrate is defined as contract drilling revenue for all of the specified rigs in our fleet 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 specified rigs in our fleet (including
cold-stacked rigs, but excluding rigs under construction). As of September 30, 2015, our cold-stacked rigs included one ultra-deepwater semisubmersible, one deepwater semisubmersible, four mid-water semisubmersibles and five jack-up rigs.
|
(3) |
Operational efficiency is calculated as the ratio of total revenue-earning days divided by the sum of total revenue-earning days plus the number of days (or portions
thereof) associated with unanticipated equipment downtime. |
(4) |
Average dayrate reported in prior period has been revised to conform to current presentation. |
Exhibit 99.2
|
|
|
|
|
Diamond Offshore Drilling, Inc. Rig Status Report November 2, 2011
Updated information noted in bold print |
RECENT COMMITMENTS (See Body of Report For Contract Details)
Ocean Guardian: 1-year term
Ocean Courage: 875-day term extension
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water 1 Depth |
|
|
|
|
Year 3 |
|
|
|
|
|
|
Contract Dayrate |
|
|
Estimated |
|
Estimated |
|
|
|
Planned Downtime 4 (For Periods Lasting >10 days) |
Rig Name |
|
(feet) |
|
|
Type 2 |
|
Built |
|
|
Location |
|
Operator |
|
(USD) |
|
|
Start Date |
|
End Date |
|
Status |
|
4Q15 E |
|
|
Comments |
Gulf of Mexico U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total: |
|
|
145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean BlackHawk |
|
|
12,000 |
|
|
DS 15K DP |
|
|
2014 |
|
|
US GOM |
|
Anadarko |
|
|
495,000 |
|
|
late May 2014 |
|
mid Jun 2019 |
|
5-year term + unpriced option |
|
|
|
|
|
|
Ocean BlackHornet |
|
|
12,000 |
|
|
DS 15K DP |
|
|
2014 |
|
|
US GOM |
|
Anadarko |
|
|
495,000 |
|
|
mid Apr 2015 |
|
mid Apr 2020 |
|
5-year term + unpriced option |
|
|
|
|
|
|
Ocean BlackRhino(note 5) |
|
|
12,000 |
|
|
DS 15K DP |
|
|
2014 |
|
|
US GOM |
|
Murphy |
|
|
398,000 |
|
|
late May 2015 |
|
late Sep 2016 |
|
Extended term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US GOM |
|
|
|
|
|
|
|
late Sep 2016 |
|
mid Dec 2016 |
|
Contract prep and customer acceptance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US GOM |
|
Hess |
|
|
400,000 |
|
|
mid Dec 2016 |
|
mid Dec 2019 |
|
3-year term |
|
|
|
|
|
|
Ocean BlackLion |
|
|
12,000 |
|
|
DS 15K DP |
|
|
2015 |
|
|
US GOM |
|
|
|
|
|
|
|
early Oct 2015 |
|
mid Dec 2015 |
|
Customer preparation and acceptance |
|
|
75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US GOM |
|
Hess |
|
|
400,000 |
|
|
mid Dec 2015 |
|
mid Dec 2019 |
|
4-year term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gulf of Mexico Mexico |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Scepter |
|
|
350 |
|
|
JU 15K IC |
|
|
2008 |
|
|
Mexico |
|
Pemex |
|
|
115,000 |
|
|
early Jan 2015 |
|
early Mar 2016 |
|
Remainder of 639-day term at revised rate |
|
|
|
|
|
|
Ocean Ambassador |
|
|
1,100 |
|
|
SS |
|
|
1975 |
|
|
Mexico |
|
Pemex |
|
|
115,000 |
|
|
early May 2015 |
|
early Mar 2016 |
|
Remainder of 730-day term at revised rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Sea / Mediterranean / W. Africa |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Guardian |
|
|
1,500 |
|
|
SS 15K |
|
|
1985 |
|
|
UK |
|
Dana |
|
|
220,000 |
|
|
early Mar 2016 |
|
early Mar 2017 |
|
1-year term |
|
|
|
|
|
|
Ocean Patriot |
|
|
3,000 |
|
|
SS 15K |
|
|
1983 |
|
|
UK |
|
Shell |
|
|
400,511 |
|
|
late Oct 2014 |
|
late Oct 2017 |
|
3-year term |
|
|
|
|
|
|
Ocean Valiant |
|
|
5,500 |
|
|
SS 15K |
|
|
1988 |
|
|
UK |
|
Premier Oil |
|
|
320,000 |
|
|
early Jun 2015 |
|
late Dec 2015 |
|
Two wells + 4 x 1-well options |
|
|
|
|
|
|
Ocean Endeavor |
|
|
10,000 |
|
|
SS 15K |
|
|
2007 |
|
|
Black Sea |
|
ExxonMobil |
|
|
521,665 |
|
|
late Jun 2014 |
|
late Dec 2015 |
|
18-month term (dayrate incl. 50% of potential 6.6% bonus) |
|
|
|
|
|
|
Ocean Confidence |
|
|
10,000 |
|
|
SS 15K DP |
|
|
2001 |
|
|
Canary Islands |
|
|
|
|
|
|
|
|
|
|
|
Actively marketing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australasia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Quest |
|
|
4,000 |
|
|
SS 15K |
|
|
1973 |
|
|
Malaysia |
|
|
|
|
|
|
|
|
|
|
|
Actively marketing |
|
|
60 |
|
|
Helideck upgrade |
Ocean America |
|
|
5,500 |
|
|
SS 15K |
|
|
1988 |
|
|
Malaysia |
|
|
|
|
|
|
|
|
|
|
|
Actively marketing |
|
|
|
|
|
|
Ocean Apex |
|
|
6,000 |
|
|
SS 15K |
|
|
2014 |
|
|
Malaysia |
|
|
|
|
|
|
|
|
|
|
|
Actively marketing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia |
|
Woodside Energy |
|
|
285,000 |
|
|
Jun 2016 |
|
Nov 2017 |
|
18-month term, convertible to 24-month @ $270k/day + 1 x 12-month + 2 x 6-month unpriced options |
|
|
|
|
|
|
Ocean Rover |
|
|
8,000 |
|
|
SS 15K |
|
|
2003 |
|
|
Malaysia |
|
Murphy |
|
|
465,000 |
|
|
early Mar 2014 |
|
early Mar 2016 |
|
2-year term |
|
|
|
|
|
|
Ocean Monarch |
|
|
10,000 |
|
|
SS 15K |
|
|
2008 |
|
|
Australia |
|
Quadrant / Woodside |
|
|
410,000 |
|
|
mid Jul 2015 |
|
early Oct 2016 |
|
15 months of 18-month term + 1 year option |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia |
|
Apache / Quadrant |
|
|
350,000 |
|
|
early Oct 2016 |
|
early Jan 2017 |
|
3 months at reduced rate on 18-month term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Victory |
|
|
5,500 |
|
|
SS 15K |
|
|
1997 |
|
|
Trinidad |
|
BP |
|
|
398,000 |
|
|
early May 2015 |
|
mid May 2017 |
|
2-year term + 1-year unpriced option |
|
|
|
|
|
|
Ocean Onyx |
|
|
6,000 |
|
|
SS 15K |
|
|
2014 |
|
|
Trinidad |
|
BG International |
|
|
360,000 |
|
|
early Aug 2015 |
|
late Nov 2015 |
|
One well |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Courage (note
6) |
|
|
10,000 |
|
|
SS 15K DP |
|
|
2009 |
|
|
Brazil |
|
Petrobras |
|
|
455,000 |
|
|
late Oct 2015 |
|
late Feb 2018 |
|
3-year extension |
|
|
10 |
|
|
Maintenance |
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
|
Petrobras |
|
|
380,000 |
|
|
late Feb 2018 |
|
late Jul 2020 |
|
Term extension |
|
|
|
|
|
|
Ocean Valor |
|
|
10,000 |
|
|
SS 15K DP |
|
|
2009 |
|
|
Brazil |
|
Petrobras |
|
|
455,000 |
|
|
mid Oct 2015 |
|
mid Oct 2018 |
|
3-year extension |
|
|
|
|
|
|
|
|
|
Please refer to accompanying disclaimer as well as Diamond Offshores 10-K and 10-Q filings with the
SEC. |
|
Page 1 of 3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water 1 Depth |
|
|
|
|
Year 3 |
|
|
|
|
|
|
Contract Dayrate |
|
|
Estimated |
|
Estimated |
|
|
|
Planned Downtime 4 (For Periods Lasting >10 days) |
Rig Name |
|
(feet) |
|
|
Type 2 |
|
Built |
|
|
Location |
|
Operator |
|
(USD) |
|
|
Start Date |
|
End Date |
|
Status |
|
4Q15 E |
|
Comments |
|
|
|
|
|
|
|
|
|
|
|
UNDER CONSTRUCTION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean GreatWhite |
|
|
10,000 |
|
|
SS 15K DP |
|
|
2016 |
|
|
S. Korea |
|
|
|
|
|
|
|
Q3 2013 |
|
H2 2016 |
|
Hyundai shipyard; commissioning; mobe; acceptance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia |
|
BP |
|
|
585,000* |
|
|
H2 2016 |
|
H2 2019 |
|
3-year term + 2 x 1-year priced options
(@ 585,000 + escalations); *Dayrate to increase for customer-requested equipment additions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COLD STACKED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Summit |
|
|
300 |
|
|
JU IC |
|
|
1972 |
|
|
US GOM |
|
|
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
Ocean King |
|
|
300 |
|
|
JU IC |
|
|
1973 |
|
|
US GOM |
|
|
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
Ocean Nugget |
|
|
300 |
|
|
JU IC |
|
|
1976 |
|
|
US GOM |
|
|
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
Ocean Spur |
|
|
300 |
|
|
JU IC |
|
|
1981 |
|
|
Malaysia |
|
|
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
Ocean Titan |
|
|
350 |
|
|
JU 15K IC |
|
|
1974 |
|
|
US GOM |
|
|
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
Ocean Nomad |
|
|
1,200 |
|
|
SS |
|
|
1975 |
|
|
UK |
|
|
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
Ocean Princess |
|
|
1,500 |
|
|
SS 15K |
|
|
1975 |
|
|
UK |
|
|
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
Ocean Vanguard |
|
|
1,500 |
|
|
SS 15K |
|
|
1982 |
|
|
UK |
|
|
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
Ocean General |
|
|
3,000 |
|
|
SS |
|
|
1976 |
|
|
Malaysia |
|
|
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Alliance
(note 6) |
|
|
5,250 |
|
|
SS 15K DP |
|
|
1988 |
|
|
Brazil / US GOM |
|
|
|
|
|
|
|
|
|
|
|
Prep for exportation and cold stacking; Demobe to US GOM |
|
|
|
|
Ocean Star |
|
|
5,500 |
|
|
SS 15K |
|
|
1997 |
|
|
US GOM |
|
|
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
Ocean Baroness |
|
|
8,000 |
|
|
SS 15K |
|
|
2002 |
|
|
US GOM |
|
|
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETIRED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Lexington |
|
|
2,200 |
|
|
SS |
|
|
1976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold in 3Q 2015 |
|
|
|
|
Ocean Clipper (note 6) |
|
|
7,875 |
|
|
DS 15K DP |
|
|
1997 |
|
|
Brazil |
|
|
|
|
|
|
|
|
|
|
|
Prep for exportation, scrapping |
|
|
|
|
NOTES
(1.) Water Depth refers to the rigs rated operating water depth capability. Often, rigs are capable of drilling or have drilled in greater water depths.
(2.) Rig Type and capabilities: JU=Jack-up; SS=Semisubmersible; DS=Drillship; 15K=15,000 PSI Well-Control
System; DP=Dynamically Positioned Rig; IC=Independent-Leg Cantilevered Rig.
(3.) Year Built represents when rig was (or
is expected to be) 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.) Planned Downtime only includes downtime periods that as of this report date are, or have been, planned and estimable and do not necessarily
reflect actual downtime experienced. Additional downtime may be experienced in the form of possible mobes for new jobs not yet contracted, possible acceptance testing at new jobs, and unplanned maintenance and
repairs. Survey start times may also be accelerated or delayed for various reasons.
(5.) Before December 1, 2015, Murphy can revert
contract term on the Ocean BlackRhino to its previous 265-day duration and pay a lump sum payback fee based on a rate of $550,000 per day.
(6.) In October 2015, we reached agreement with Petrobras to terminate the drilling contracts on the Ocean Clipper and Ocean Alliance early, effective on October 30, 2015, and to add
875 days to the end of the current term of the drilling contract on the Ocean Courage at the rate of $380,000 per day. Petrobras has approved the agreement and we are in the process of completing the amendments to the drilling contracts.
General Notes
Average Utilization: Assume rates of 92% for DP units, 95% for conventionally moored rigs, and 97% for jack-ups. Rig utilization
rates can be adversely impacted by additional downtime due to unscheduled repairs and maintenance, and other factors.
Options should
be assumed to be unpriced unless otherwise indicated.
Dayrates exclude amortized revenue related to amounts earned for certain
activities, such as mobe, demobe, contract preparation, etc.
Survey Costs: During surveys, normal operating expense will be incurred,
plus additional costs.
US GOM=U.S. Gulf of Mexico
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Please refer to accompanying disclaimer as well as Diamond Offshores 10-K and 10-Q filings with the
SEC. |
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Page 2 of 3 |
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Diamond Offshore Drilling, Inc. Rig Status Report |
Forward-Looking Statements: This report contains 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, without limitation, any statement that may project, indicate or imply future
results, events, performance or achievements, and may contain or be identified by the words expect, intend, plan, predict, anticipate, estimate, believe,
should, could, may, might, will, will be, will continue, will likely result, project, budget, forecast, and similar
expressions. Statements by the Company in the rig status report that contain forward-looking statements include, but are not limited to, statements regarding the current term, future dayrates, future status, start and end dates, and comments
concerning future contracts and availability, future contract opportunities and termination rights, letters of intent, utilization, surveys, downtime and other aspects of the Companys drilling rigs, as well as statements concerning customer
discussions and outcomes thereof, the impact of these and related events on our operations and revenues, rigs being upgraded or to be upgraded and rigs under construction. Such statements are inherently subject to a variety of assumptions, risks and
uncertainties that could cause actual results to differ materially from those anticipated or projected. A discussion of the risk factors that could impact these areas and the Companys overall business and financial performance can be found in
the Companys reports and other documents filed with the Securities and Exchange Commission. These factors include, among others, general economic and business conditions, contract cancellations, customer bankruptcy, operating risks, casualty
losses, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental
regulations, customer preferences and various other matters, many of which are beyond the Companys control. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking
statement speaks only as of the date of the rig status report, and the Company undertakes no obligation to publicly update or revise any forward-looking statement.
Page 3 of 3
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