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): May 4, 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 May 4, 2015, Diamond Offshore Drilling, Inc. (the Company) issued a press release announcing its financial results for
the fiscal quarter ended March 31, 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 May 4, 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 May 4, 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; 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 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, impairments and retirements, declaration of dividends, operating risks, changes in tax laws and
2
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
(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 May 4, 2015 |
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99.2 |
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Rig Status Report as of May 4, 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: May 4, 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 |
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Senior Vice President, General Counsel and Secretary |
4
Exhibit 99.1
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Contact:
Darren Daugherty
Director, Investor Relations (281)
492-5370 |
Diamond Offshore Announces First Quarter 2015 Results
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Reports loss of $1.86 per share |
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Records impairment charge of $319 million after tax, or $2.33 per share |
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Records restructuring charge of $4 million after tax, or $0.03 per share |
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Declares Regular Cash Dividend of $0.125 per share |
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Announces plans to scrap three mid-water semisubmersibles |
HOUSTON, May 4, 2015 Diamond Offshore Drilling, Inc. (NYSE: DO) today reported a net loss of $256 million, or $1.86 per share, in the first quarter of 2015, compared to net
income of $146 million, or $1.05 per share, in the first quarter of 2014. Revenues in the first quarter of 2015 were $620 million, compared to revenues of $709 million in the first quarter of 2014.
Results for the quarter included a non-cash charge of $319 million after tax, or $2.33 per share, associated with the impairment of eight drilling units,
three of which are to be retired and scrapped. The units to be retired are the mid-water semisubmersibles Ocean Saratoga, Ocean Worker and Ocean Yorktown, which are all cold stacked in the U.S. Gulf of Mexico. Other rigs
included in the impairment group are the mid-water semisubmersibles Ocean Ambassador, Ocean General, Ocean Lexington, Ocean Nomad and the drillship Ocean Clipper.
The Company also recognized a charge during the quarter of $4 million after tax, or $0.03 per share, related to restructuring and employee
separation-related costs.
We have continued to implement cost savings measures while maintaining our focus on safe operations and
delivering performance for our clients, said Marc Edwards, President and Chief Executive Officer. Our first-quarter safety statistics were the best that we have recorded.
During the second quarter, our next two newbuild drillships will begin working in the Gulf of Mexico, and the yard will complete our fourth drillship, which will also be headed to the U.S., where
all four of drillships will work on term contracts extending into 2019 or beyond, added Mr. Edwards.
In addition, the Company
announced that it has declared a regular quarterly dividend of $0.125 per share, payable on June 1, 2015 to shareholders of record as of May 15, 2015.
CONFERENCE CALL
A conference call to discuss Diamond Offshores earnings results has been
scheduled for 7:30 a.m. CDT 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 22913137. 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 35 offshore drilling rigs, including two rigs under
construction. Diamond Offshores fleet consists of 24 semisubmersibles, one of which is under construction, five dynamically positioned drillships, one of which is under construction, 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
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 March 31, |
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2015 |
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2014 |
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Revenues: |
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Contract drilling |
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$ |
599,577 |
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$ |
685,308 |
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Revenues related to reimbursable expenses |
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20,479 |
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24,116 |
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Total revenues |
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620,056 |
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709,424 |
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Operating expenses: |
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Contract drilling, excluding depreciation |
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350,658 |
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369,790 |
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Reimbursable expenses |
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20,092 |
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23,666 |
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Depreciation |
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137,299 |
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107,011 |
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General and administrative |
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17,452 |
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22,827 |
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Impairment of assets |
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358,528 |
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Restructuring and separation costs |
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6,168 |
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Gain on disposition of assets |
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|
(611 |
) |
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|
(147 |
) |
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|
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Total operating expenses |
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889,586 |
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|
523,147 |
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|
|
|
|
|
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Operating (loss) income |
|
|
(269,530 |
) |
|
|
186,277 |
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Other income (expense): |
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Interest income |
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583 |
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|
|
408 |
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Interest expense |
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|
(23,982 |
) |
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|
(18,155 |
) |
Foreign currency transaction gain (loss) |
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5,590 |
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(1,178 |
) |
Other, net |
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|
221 |
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|
327 |
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(Loss) income before income tax (benefit) expense |
|
|
(287,118 |
) |
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|
167,679 |
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Income tax benefit (expense) |
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|
31,409 |
|
|
|
(21,869 |
) |
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|
|
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|
|
|
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Net (loss) income |
|
$ |
(255,709 |
) |
|
$ |
145,810 |
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|
|
|
|
|
|
|
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(Loss) income per share |
|
$ |
(1.86 |
) |
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$ |
1.05 |
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Weighted average shares outstanding: |
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Shares of common stock |
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137,151 |
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138,469 |
|
Dilutive potential shares of common stock |
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4 |
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Total weighted average shares outstanding |
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137,151 |
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|
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138,473 |
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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 |
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Mar 31, |
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Dec 31, |
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Mar 31, |
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2015 |
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2014 |
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2014 |
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REVENUES |
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Floaters: |
|
|
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|
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Ultra-Deepwater |
|
$ |
251,396 |
|
|
$ |
285,991 |
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|
$ |
205,794 |
|
Deepwater |
|
|
138,770 |
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|
|
115,777 |
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|
|
146,559 |
|
Mid-water |
|
|
176,357 |
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|
|
231,933 |
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|
|
285,979 |
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|
|
|
|
|
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Total Floaters |
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566,523 |
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|
633,701 |
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638,332 |
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Jack-ups |
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33,054 |
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40,675 |
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46,976 |
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|
|
|
|
|
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Total Contract Drilling Revenue |
|
$ |
599,577 |
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$ |
674,376 |
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$ |
685,308 |
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|
|
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|
|
|
|
|
|
|
|
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|
Revenues Related to Reimbursable Expenses |
|
$ |
20,479 |
|
|
$ |
945 |
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|
$ |
24,116 |
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|
|
|
|
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|
|
|
|
|
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CONTRACT DRILLING EXPENSE |
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Floaters: |
|
|
|
|
|
|
|
|
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Ultra-Deepwater |
|
$ |
154,539 |
|
|
$ |
133,103 |
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$ |
123,530 |
|
Deepwater |
|
|
63,675 |
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|
|
66,093 |
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|
|
71,949 |
|
Mid-water |
|
|
99,320 |
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|
119,763 |
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|
134,046 |
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Total Floaters |
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317,534 |
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|
|
318,959 |
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|
|
329,525 |
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Jack-ups |
|
|
21,570 |
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|
|
25,268 |
|
|
|
28,029 |
|
Other |
|
|
11,554 |
|
|
|
14,428 |
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|
|
12,236 |
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|
|
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|
|
|
|
|
|
|
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Total Contract Drilling Expense |
|
$ |
350,658 |
|
|
$ |
358,655 |
|
|
$ |
369,790 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reimbursable Expenses |
|
$ |
20,092 |
|
|
$ |
698 |
|
|
$ |
23,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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OPERATING INCOME |
|
|
|
|
|
|
|
|
|
|
|
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Floaters: |
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater |
|
$ |
96,857 |
|
|
$ |
152,888 |
|
|
$ |
82,264 |
|
Deepwater |
|
|
75,095 |
|
|
|
49,684 |
|
|
|
74,610 |
|
Mid-water |
|
|
77,037 |
|
|
|
112,170 |
|
|
|
151,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Floaters |
|
|
248,989 |
|
|
|
314,742 |
|
|
|
308,807 |
|
Jack-ups |
|
|
11,484 |
|
|
|
15,407 |
|
|
|
18,947 |
|
Other |
|
|
(11,554 |
) |
|
|
(14,428 |
) |
|
|
(12,236 |
) |
Reimbursable expenses, net |
|
|
387 |
|
|
|
247 |
|
|
|
450 |
|
Depreciation |
|
|
(137,299 |
) |
|
|
(131,712 |
) |
|
|
(107,011 |
) |
General and administrative expense |
|
|
(17,452 |
) |
|
|
(19,923 |
) |
|
|
(22,827 |
) |
Bad debt recovery |
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on disposition of assets |
|
|
611 |
|
|
|
(2,230 |
) |
|
|
147 |
|
Impairment of assets |
|
|
(358,528 |
) |
|
|
|
|
|
|
|
|
Restructuring and separation costs |
|
|
(6,168 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating (Loss) Income |
|
$ |
(269,530 |
) |
|
$ |
162,103 |
|
|
$ |
186,277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2015 |
|
|
2014 |
|
|
|
|
ASSETS |
|
|
|
|
|
|
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Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
184,775 |
|
|
$ |
233,623 |
|
|
|
|
Marketable securities |
|
|
14,016 |
|
|
|
16,033 |
|
|
|
|
Accounts receivable, net of allowance for bad debts |
|
|
445,685 |
|
|
|
463,862 |
|
|
|
|
Prepaid expenses and other current assets |
|
|
199,321 |
|
|
|
185,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
843,797 |
|
|
|
899,059 |
|
|
|
|
Drilling and other property and equipment, net of accumulated depreciation |
|
|
6,574,142 |
|
|
|
6,945,953 |
|
|
|
|
Other assets |
|
|
117,890 |
|
|
|
176,277 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
7,535,829 |
|
|
$ |
8,021,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
249,979 |
|
|
$ |
249,962 |
|
|
|
|
Other current liabilities |
|
|
521,079 |
|
|
|
606,684 |
|
|
|
|
Long-term debt |
|
|
1,994,587 |
|
|
|
1,994,526 |
|
|
|
|
Deferred tax liability |
|
|
413,009 |
|
|
|
530,394 |
|
|
|
|
Other liabilities |
|
|
177,329 |
|
|
|
188,160 |
|
|
|
|
Stockholders equity |
|
|
4,179,846 |
|
|
|
4,451,563 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity |
|
$ |
7,535,829 |
|
|
$ |
8,021,289 |
|
|
|
|
|
|
|
|
|
|
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
(Dayrate in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter 2015 |
|
|
Fourth Quarter 2014 |
|
|
First 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 |
|
$ |
497 |
|
|
|
51 |
% |
|
|
81.5 |
% |
|
$ |
493 |
|
|
|
66 |
% |
|
|
90.2 |
% |
|
$ |
401 |
|
|
|
66 |
% |
|
|
95.3 |
% |
|
|
|
|
|
|
|
|
|
|
Deepwater Floaters |
|
$ |
486 |
|
|
|
45 |
% |
|
|
95.1 |
% |
|
$ |
431 |
|
|
|
48 |
% |
|
|
97.3 |
% |
|
$ |
427 |
|
|
|
64 |
% |
|
|
96.0 |
% |
|
|
|
|
|
|
|
|
|
|
Mid-Water floaters |
|
$ |
266 |
|
|
|
49 |
% |
|
|
94.1 |
% |
|
$ |
270 |
|
|
|
55 |
% |
|
|
96.8 |
% |
|
$ |
278 |
|
|
|
64 |
% |
|
|
94.4 |
% |
|
|
|
|
|
|
|
|
|
|
Jack-ups |
|
$ |
92 |
|
|
|
66 |
% |
|
|
99.4 |
% |
|
$ |
96 |
|
|
|
77 |
% |
|
|
99.5 |
% |
|
$ |
94 |
|
|
|
79 |
% |
|
|
99.9 |
% |
|
|
|
|
|
|
|
|
|
|
Fleet Total |
|
|
|
|
|
|
|
|
|
|
91.2 |
% |
|
|
|
|
|
|
|
|
|
|
95.5 |
% |
|
|
|
|
|
|
|
|
|
|
95.9 |
% |
(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 fleetincluding
cold-stacked rigs, but excluding rigs under construction. As of May 4, 2015, one deepwater and four mid-water semisubmersible rigs and three jack-up rigs were cold stacked. |
(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 periods has been revised to conform to current presentation. |
Exhibit 99.2
|
|
|
|
|
Diamond Offshore Drilling, Inc. Rig Status Report May 4, 2015
Updated information noted in bold print |
RECENT COMMITMENTS (See Body of Report For Contract Details)
Ocean America: One-well
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
2Q15 E |
|
|
3Q15 E |
|
|
4Q15 E |
|
|
Comments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals: |
|
|
370 |
|
|
|
222 |
|
|
|
60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gulf of Mexico - U.S. |
|
|
|
|
|
|
|
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 |
|
|
14 |
|
|
|
|
|
|
|
|
|
|
Customer acceptance |
Ocean BlackRhino |
|
|
12,000 |
|
|
DS 15K DP |
|
2014 |
|
S. Korea |
|
|
|
|
|
mid Dec 2014 |
|
late May 2015 |
|
Mobe to GOM; customer acceptance |
|
|
60 |
|
|
|
|
|
|
|
|
|
|
Mobe, customer acceptance |
|
|
|
|
|
|
|
|
|
|
US GOM |
|
Murphy |
|
550,000 |
|
late May 2015 |
|
late Feb 2016 |
|
265-day term; prior to commencement of contract, may be converted into term lasting until Jun 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US GOM |
|
|
|
|
|
late Feb 2016 |
|
Q4 2016 |
|
Actively marketing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US GOM |
|
Hess |
|
400,000 |
|
Q4 2016 |
|
Q4 2019 |
|
3-year Term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gulf of Mexico - Mexico |
|
|
|
|
|
|
|
Ocean Nugget (note 5) |
|
|
300 |
|
|
JU IC |
|
1976 |
|
Mexico |
|
Pemex |
|
97,000 |
|
early Jul 2013 |
|
mid Aug 2016 |
|
1,136-day term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Summit (note 5) |
|
|
300 |
|
|
JU IC |
|
1972 |
|
Mexico |
|
Pemex |
|
85,999 |
|
mid Sep 2012 |
|
late May 2015 |
|
985-day term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Scepter |
|
|
350 |
|
|
JU 15K IC |
|
2008 |
|
Mexico |
|
Pemex |
|
158,000 |
|
early Jun 2014 |
|
early Mar 2016 |
|
639-day term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Ambassador (note 5) |
|
|
1,100 |
|
|
SS |
|
1975 |
|
Mexico |
|
Pemex |
|
211,445 |
|
early Mar 2014 |
|
early Mar 2016 |
|
730-day term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Sea / Mediterranean / W. Africa |
|
|
|
Ocean Guardian |
|
|
1,500 |
|
|
SS 15K |
|
1985 |
|
UK |
|
Shell |
|
352,000 |
|
mid Jan 2015 |
|
mid Jul 2015 |
|
Continuation of 1-year extension |
|
|
40 |
|
|
|
|
|
|
|
|
|
|
5-Year Special Survey |
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 |
|
165,000 |
|
early Apr 2015 |
|
early Jun 2015 |
|
Contract prep |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UK |
|
Premier Oil |
|
320,000 |
|
early Jun 2015 |
|
late Oct 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) + 6 x 6-month unpriced options. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Confidence |
|
|
10,000 |
|
|
SS 15K DP |
|
2001 |
|
Canary Islands |
|
|
|
|
|
late Apr 2014 |
|
mid May 2015 |
|
Maintenance |
|
|
45 |
|
|
|
|
|
|
|
|
|
|
Maintenance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actively marketing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
2Q15 E |
|
|
3Q15 E |
|
|
4Q15 E |
|
|
Comments |
Australasia |
|
|
|
|
|
|
|
|
|
|
|
Ocean Quest |
|
|
4,000 |
|
|
SS 15K |
|
1973 |
|
Malaysia |
|
|
|
|
|
early May 2015 |
|
early July 2015 |
|
Actively marketing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
early July 2015 |
|
late Aug 2015 |
|
Mobe; helideck upgrade |
|
|
|
|
|
|
60 |
|
|
|
|
|
|
Helideck upgrade |
Ocean America |
|
|
5,500 |
|
|
SS 15K |
|
1988 |
|
Australia |
|
Chevron |
|
475,000 |
|
late Nov 2013 |
|
late May 2015 |
|
18-month term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia |
|
Apache |
|
265,000 |
|
late May 2015 |
|
late Jul 2015 |
|
One well |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Apex |
|
|
6,000 |
|
|
SS 15K |
|
2014 |
|
Malaysia |
|
|
|
|
|
|
|
|
|
Actively marketing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
Malaysia |
|
|
|
|
|
mid Sep 2014 |
|
early Jun 2015 |
|
Mobe; contract prep; customer acceptance |
|
|
65 |
|
|
|
|
|
|
|
|
|
|
Mobe, contract prep |
|
|
|
|
|
|
|
|
|
|
Australia |
|
Apache Corporation |
|
410,000 |
|
early Jun 2015 |
|
early Oct 2016 |
|
18-month term + 1 year option |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia |
|
Apache Corporation |
|
350,000 |
|
early Oct 2016 |
|
early Dec 2016 |
|
(2 months at reduced rate) on 18-month term + 1 year option |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil / S. America |
|
|
|
Ocean Lexington (note 5) |
|
|
2,200 |
|
|
SS |
|
1976 |
|
Trinidad |
|
BG Intl / Centrica |
|
300,000 |
|
early Nov 2013 |
|
late Jun 2015 |
|
Six wells |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US GOM |
|
BG Intl / Centrica |
|
300,000 |
|
late Jun 2015 |
|
mid Jul 2015 |
|
Prep and demobe to US GOM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US GOM |
|
|
|
|
|
mid Jul 2015 |
|
mid Sep 2015 |
|
Prep, 5-year special survey, and mobe to Mexico |
|
|
0 |
|
|
|
60 |
|
|
|
|
|
|
Prep, 5-year survey, mobe |
|
|
|
|
|
|
|
|
|
|
Mexico |
|
Pemex |
|
160,000 |
|
mid Sep 2015 |
|
late Mar 2018 |
|
Firm term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Alliance |
|
|
5,250 |
|
|
SS 15K DP |
|
1988 |
|
Brazil |
|
Petrobras |
|
367,089 |
|
late Jul 2010 |
|
mid Jun 2016 |
|
6-year term (incl. 50% of potential 15% bonus) |
|
|
15 |
|
|
|
|
|
|
|
|
|
|
Maintenance |
Ocean Victory |
|
|
5,500 |
|
|
SS 15K |
|
1997 |
|
Trinidad |
|
BP |
|
398,000 |
|
early May 2015 |
|
early May 2017 |
|
2-year term + 1-year unpriced option |
|
|
30 |
|
|
|
|
|
|
|
|
|
|
Mobe to Trinidad |
Ocean Onyx |
|
|
6,000 |
|
|
SS 15K |
|
2014 |
|
Trinidad |
|
BG International |
|
390,000 |
|
mid Apr 2015 |
|
late Jun 2015 |
|
One well |
|
|
10 |
|
|
|
|
|
|
|
|
|
|
Customer acceptance |
|
|
|
|
|
|
|
|
|
|
Trinidad |
|
BG International |
|
360,000 |
|
late Jun 2015 |
|
late Aug 2015 |
|
One well |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Clipper |
|
|
7,875 |
|
|
DS 15K DP |
|
1997 |
|
Brazil |
|
Petrobras |
|
312,625 |
|
late Jan 2015 |
|
early Dec 2015 |
|
Remainder of 5-year term contract (incl. 50% of potential 5% bonus) + unpriced option |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Baroness (note 6) |
|
|
8,000 |
|
|
SS 15K |
|
2002 |
|
Brazil |
|
Petrobras |
|
276,750 |
|
early Sep 2011 |
|
early Sep 2015 |
|
Remainder of 5-year term (incl. 50% of potential 5% bonus) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
|
Petrobras |
|
310,000 |
|
early Sep 2015 |
|
early Sep 2018 |
|
3-year extension |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Courage |
|
|
10,000 |
|
|
SS 15K DP |
|
2009 |
|
Brazil |
|
Petrobras |
|
567,000 |
|
late Feb 2015 |
|
late Oct 2015 |
|
3-year extension + $112,000 uplift (incl. 50% of potential 6% bonus) |
|
|
|
|
|
|
10 |
|
|
|
|
|
|
Maintenance |
|
|
|
|
|
|
|
|
|
|
Brazil |
|
Petrobras |
|
455,000 |
|
late Oct 2015 |
|
late Feb 2018 |
|
3-year extension |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Valor |
|
|
10,000 |
|
|
SS 15K DP |
|
2009 |
|
Brazil |
|
Petrobras |
|
440,000 |
|
early Sep 2011 |
|
mid Oct 2015 |
|
Remainder of 5-year term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
|
Petrobras |
|
455,000 |
|
mid Oct 2015 |
|
mid Oct 2018 |
|
3-year extension |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rigs Under Construction |
|
|
|
Ocean BlackLion |
|
|
12,000 |
|
|
DS 15K DP |
|
2015 |
|
S. Korea |
|
|
|
|
|
Q2 2012 |
|
Q4 2015 |
|
Hyundai shipyard; commissioning; mobe; acceptance |
|
|
91 |
|
|
|
92 |
|
|
|
60 |
|
|
Mobe, acceptance testing |
|
|
|
|
|
|
|
|
|
|
US GOM |
|
Hess |
|
400,000 |
|
Q4 2015 |
|
Q4 2019 |
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4-year Term |
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Ocean GreatWhite |
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10,000 |
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SS 15K DP |
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2016 |
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S. Korea |
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Q3 2013 |
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H2 2016 |
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Hyundai shipyard; commissioning; mobe; acceptance |
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Australia |
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BP |
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585,000* |
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H2 2016 |
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H2 2019 |
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3-year term + 2 x 1-year priced options (@ 585,000 + escalations); *Dayrate to increase for customer-requested equipment additions |
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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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Water 1
Depth |
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Year 3 |
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Contract Dayrate |
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Estimated |
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Estimated |
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Planned Downtime 4 (For Periods Lasting >10 days) |
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Rig Name |
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(feet) |
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Type 2 |
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Built |
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Location |
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Operator |
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(USD) |
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Start Date |
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End Date |
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Status |
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2Q15 E |
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3Q15 E |
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4Q15 E |
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Comments |
COLD STACKED |
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Ocean King |
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300 |
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JU IC |
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1973 |
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US GOM |
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Stacked |
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Ocean Titan |
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350 |
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JU 15K IC |
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1974 |
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US GOM |
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Stacked |
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Ocean Spur |
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300 |
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JU IC |
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1981 |
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Malaysia |
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Prepare for cold stacking |
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Ocean Nomad (note 7) |
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1,200 |
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SS |
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1975 |
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UK |
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Stacked |
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Ocean Princess |
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1,500 |
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SS 15K |
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1975 |
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UK |
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Stacked |
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Ocean Vanguard |
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1,500 |
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SS 15K |
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1982 |
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UK |
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Stacked |
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Ocean General |
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3,000 |
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SS |
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1976 |
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Malaysia |
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Stacked |
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Ocean Star |
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5,500 |
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SS 15K |
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1997 |
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US GOM |
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Stacked |
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RETIRED |
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Ocean Winner |
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4,000 |
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SS |
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1976 |
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Brazil |
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Prep for exportation, scrapping |
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Ocean Saratoga |
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2,200 |
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SS |
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1976 |
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US GOM |
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Stacked |
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Ocean Yorktown |
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2,850 |
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SS |
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1976 |
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US GOM |
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Stacked |
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Ocean Worker |
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4,000 |
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SS |
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1982 |
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US GOM |
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Stacked |
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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.) A representative of PEMEX has verbally
informed us of PEMEXs intention to exercise its contractual right to terminate its drilling contracts on the Ocean Ambassador, the Ocean Nugget and the Ocean Summit, and to cancel its drilling contract
on the Ocean Lexington. As of the date of this report, we have not received written notice of termination or cancellation. We are in discussions with PEMEX regarding the rigs.
(6.) Petrobras has notified us that it has a right to terminate the drilling contract on the Ocean Baroness and has verbally informed us that it does not intend to continue to use the
rig. We are in discussions with Petrobras regarding the rig.
(7.) Our subsidiary has received notice of termination of its drilling
contract from Dana Petroleum (E&P) Limited, the customer for the Ocean Nomad. The drilling contract was estimated to conclude in accordance with its terms in August 2015. We do not believe that Dana had a valid basis for
terminating the contract, and we intend to defend our rights under the contract.
General Notes
Average Utilization: Assume rates of 92% for DP units, 96% for conventionally moored rigs, and 98% 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. |
|
Page 3 of 3 |
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