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): February 8, 2016
Diamond Offshore Drilling, Inc.
(Exact name of registrant as specified in its charter)
|
|
|
|
|
Delaware |
|
1-13926 |
|
76-0321760 |
(State or other jurisdiction of incorporation) |
|
(Commission file number) |
|
(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 February 8, 2016, Diamond Offshore Drilling, Inc. (the Company) issued a press release announcing its financial
results for the fiscal quarter and year ended December 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 February 8, 2016. 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 February 8, 2016, 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, statements 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.
|
|
|
Exhibit number |
|
Description |
|
|
99.1 |
|
Press Release dated February 8, 2016 |
|
|
99.2 |
|
Rig Status Report as of February 8, 2016 |
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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|
|
DIAMOND OFFSHORE DRILLING, INC. |
|
|
By: |
|
/s/ DAVID L. ROLAND |
|
|
David L. Roland |
|
|
Senior Vice President, General Counsel and Secretary |
Date: February 8, 2016
4
EXHIBIT INDEX
|
|
|
Exhibit Number |
|
Description |
|
|
99.1 |
|
Press Release dated February 8, 2016 |
|
|
99.2 |
|
Rig Status Report as of February 8, 2016 |
5
Exhibit 99.1
|
|
|
|
|
|
|
|
|
Contact:
Darren Daugherty Director, Investor Relations
(281) 492-5370 |
|
|
|
|
|
|
Diamond Offshore Announces Fourth Quarter 2015 Results
|
|
Reports loss of $1.79 per share |
|
|
Records after-tax impairment charge of $2.68 per share |
|
|
Discontinues quarterly cash dividend |
HOUSTON, February 8, 2016 Diamond Offshore Drilling,
Inc. (NYSE: DO) today reported a fourth quarter 2015 net loss of $245 million, a loss of $1.79 per diluted share, compared to net income of $99 million, or $0.72 per diluted share, in the fourth quarter of 2014. Results for the quarter included a
non-cash charge of $499 million associated with the impairment of nine drilling units, which resulted in an after-tax charge of $2.68 per share. Revenues in the fourth quarter of 2015 were $556 million, compared to revenues of $675 million in the
fourth quarter of 2014.
For full year 2015, Diamond Offshore reported a net loss of $274 million or a loss of $2.00 per diluted share, compared to net
income of $387 million, or $2.81 per diluted share, in 2014. Results for the full year included non-cash charges of $860 million associated with the impairment of 17 drilling units, which resulted in an after-tax charge of $5.05 per share. Revenues
for full year 2015 were $2.419 billion, compared to $2.815 billion in 2014.
Diamond Offshore also announced that its Board of Directors has discontinued
the quarterly cash dividend of $0.125 per share, which will preserve an additional $69 million on an annual basis.
Given the severe and prolonged
downturn in industry fundamentals, we believe it is prudent to bolster our already strong balance sheet, said Marc Edwards, President and Chief Executive Officer. By conserving additional cash, we will have increased flexibility to
manage the company through difficult market conditions and position ourselves for the eventual recovery in offshore drilling.
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 26416613. 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. Additional information 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. 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling |
|
$ |
544,129 |
|
|
$ |
674,376 |
|
|
$ |
2,360,184 |
|
|
$ |
2,737,126 |
|
Revenues related to reimbursable expenses |
|
|
11,434 |
|
|
|
945 |
|
|
|
59,209 |
|
|
|
77,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
555,563 |
|
|
|
675,321 |
|
|
|
2,419,393 |
|
|
|
2,814,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling, excluding depreciation |
|
|
256,393 |
|
|
|
358,655 |
|
|
|
1,227,864 |
|
|
|
1,523,623 |
|
Reimbursable expenses |
|
|
11,146 |
|
|
|
698 |
|
|
|
58,050 |
|
|
|
76,091 |
|
Depreciation |
|
|
114,448 |
|
|
|
131,712 |
|
|
|
493,162 |
|
|
|
456,483 |
|
General and administrative |
|
|
15,574 |
|
|
|
19,923 |
|
|
|
66,462 |
|
|
|
81,832 |
|
Impairment of assets |
|
|
499,367 |
|
|
|
|
|
|
|
860,441 |
|
|
|
109,462 |
|
Restructuring and separation costs |
|
|
1,043 |
|
|
|
|
|
|
|
9,778 |
|
|
|
|
|
(Gain) loss on disposition of assets |
|
|
(2,309 |
) |
|
|
2,230 |
|
|
|
(2,290 |
) |
|
|
(5,382 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
895,662 |
|
|
|
513,218 |
|
|
|
2,713,467 |
|
|
|
2,242,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
|
(340,099 |
) |
|
|
162,103 |
|
|
|
(294,074 |
) |
|
|
572,562 |
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
1,526 |
|
|
|
157 |
|
|
|
3,322 |
|
|
|
801 |
|
Interest expense |
|
|
(23,134 |
) |
|
|
(15,997 |
) |
|
|
(93,934 |
) |
|
|
(62,053 |
) |
Foreign currency transaction gain |
|
|
1,511 |
|
|
|
6,923 |
|
|
|
2,465 |
|
|
|
3,199 |
|
Other, net |
|
|
171 |
|
|
|
84 |
|
|
|
873 |
|
|
|
682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income tax (expense) benefit |
|
|
(360,025 |
) |
|
|
153,270 |
|
|
|
(381,348 |
) |
|
|
515,191 |
|
|
|
|
|
|
Income tax benefit (expense) |
|
|
114,641 |
|
|
|
(54,427 |
) |
|
|
107,063 |
|
|
|
(128,180 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(245,384 |
) |
|
$ |
98,843 |
|
|
$ |
(274,285 |
) |
|
$ |
387,011 |
|
|
|
|
|
|
(Loss) income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(1.79 |
) |
|
$ |
0.72 |
|
|
$ |
(2.00 |
) |
|
$ |
2.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
(1.79 |
) |
|
$ |
0.72 |
|
|
$ |
(2.00 |
) |
|
$ |
2.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares of common stock |
|
|
137,159 |
|
|
|
137,148 |
|
|
|
137,157 |
|
|
|
137,473 |
|
Dilutive potential shares of common stock |
|
|
|
|
|
|
59 |
|
|
|
|
|
|
|
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total weighted average shares outstanding |
|
|
137,159 |
|
|
|
137,207 |
|
|
|
137,157 |
|
|
|
137,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
|
2015 |
|
|
2015 |
|
|
2014 |
|
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
Floaters: |
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater |
|
$ |
395,798 |
|
|
$ |
376,195 |
|
|
$ |
285,991 |
|
Deepwater |
|
|
92,125 |
|
|
|
136,668 |
|
|
|
115,777 |
|
Mid-Water |
|
|
44,766 |
|
|
|
69,500 |
|
|
|
231,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Floaters |
|
|
532,689 |
|
|
|
582,363 |
|
|
|
633,701 |
|
Jack-ups |
|
|
11,440 |
|
|
|
16,673 |
|
|
|
40,675 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Contract Drilling Revenue |
|
$ |
544,129 |
|
|
$ |
599,036 |
|
|
$ |
674,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues Related to Reimbursable Expenses |
|
$ |
11,434 |
|
|
$ |
10,706 |
|
|
$ |
945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTRACT DRILLING EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
Floaters: |
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater |
|
$ |
147,991 |
|
|
$ |
156,107 |
|
|
$ |
133,103 |
|
Deepwater |
|
|
60,010 |
|
|
|
67,630 |
|
|
|
66,093 |
|
Mid-Water |
|
|
28,767 |
|
|
|
35,784 |
|
|
|
119,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Floaters |
|
|
236,768 |
|
|
|
259,521 |
|
|
|
318,959 |
|
Jack-ups |
|
|
10,749 |
|
|
|
12,507 |
|
|
|
25,268 |
|
Other |
|
|
8,876 |
|
|
|
5,916 |
|
|
|
14,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Contract Drilling Expense |
|
$ |
256,393 |
|
|
$ |
277,944 |
|
|
$ |
358,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reimbursable Expenses |
|
$ |
11,146 |
|
|
$ |
10,476 |
|
|
$ |
698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING (LOSS) INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
Floaters: |
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater |
|
$ |
247,807 |
|
|
$ |
220,088 |
|
|
$ |
152,888 |
|
Deepwater |
|
|
32,115 |
|
|
|
69,038 |
|
|
|
49,684 |
|
Mid-Water |
|
|
15,999 |
|
|
|
33,716 |
|
|
|
112,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Floaters |
|
|
295,921 |
|
|
|
322,842 |
|
|
|
314,742 |
|
Jack-ups |
|
|
691 |
|
|
|
4,166 |
|
|
|
15,407 |
|
Other |
|
|
(8,876 |
) |
|
|
(5,916 |
) |
|
|
(14,428 |
) |
Reimbursable expenses, net |
|
|
288 |
|
|
|
230 |
|
|
|
247 |
|
Depreciation |
|
|
(114,448 |
) |
|
|
(118,086 |
) |
|
|
(131,712 |
) |
General and administrative expense |
|
|
(15,574 |
) |
|
|
(16,888 |
) |
|
|
(19,923 |
) |
Impairment of assets |
|
|
(499,367 |
) |
|
|
(2,546 |
) |
|
|
|
|
Restructuring and separation costs |
|
|
(1,043 |
) |
|
|
(1,574 |
) |
|
|
|
|
Gain (loss) on disposition of assets |
|
|
2,309 |
|
|
|
(794 |
) |
|
|
(2,230 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating (Loss) Income |
|
$ |
(340,099 |
) |
|
$ |
181,434 |
|
|
$ |
162,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2015 |
|
|
2014 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
119,028 |
|
|
$ |
233,623 |
|
|
|
|
Marketable securities |
|
|
11,518 |
|
|
|
16,033 |
|
|
|
|
Accounts receivable, net of allowance for bad debts |
|
|
405,370 |
|
|
|
463,862 |
|
|
|
|
Prepaid expenses and other current assets |
|
|
119,479 |
|
|
|
185,541 |
|
|
|
|
Assets held for sale |
|
|
14,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
669,595 |
|
|
|
899,059 |
|
|
|
|
Drilling and other property and equipment, net of accumulated depreciation |
|
|
6,378,814 |
|
|
|
6,945,953 |
|
|
|
|
Other assets |
|
|
116,480 |
|
|
|
176,277 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
7,164,889 |
|
|
$ |
8,021,289 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
|
|
|
$ |
249,962 |
|
|
|
|
Short-term borrowings |
|
|
286,589 |
|
|
|
|
|
|
|
|
Other current liabilities |
|
|
339,134 |
|
|
|
606,684 |
|
|
|
|
Long-term debt |
|
|
1,994,773 |
|
|
|
1,994,526 |
|
|
|
|
Deferred tax liability |
|
|
276,529 |
|
|
|
530,394 |
|
|
|
|
Other liabilities |
|
|
155,094 |
|
|
|
188,160 |
|
|
|
|
Stockholders equity |
|
|
4,112,770 |
|
|
|
4,451,563 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity |
|
$ |
7,164,889 |
|
|
$ |
8,021,289 |
|
|
|
|
|
|
|
|
|
|
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
(Dayrate in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2015 |
|
|
Third Quarter 2015 |
|
|
Fourth Quarter 2014 |
|
|
|
Average Dayrate (1) |
|
|
Utilization (2) |
|
|
Operational Efficiency (3) |
|
|
Average Dayrate (1) |
|
|
Utilization (2) |
|
|
Operational Efficiency (3) |
|
|
Average Dayrate (1) |
|
|
Utilization (2) |
|
|
Operational Efficiency (3) |
|
Ultra-Deepwater Floaters |
|
$ |
531 |
|
|
|
70 |
% |
|
|
95.5 |
% |
|
$ |
479 |
|
|
|
71 |
% |
|
|
96.8 |
% |
|
$ |
493 |
|
|
|
66 |
% |
|
|
90.2 |
% |
|
|
|
|
|
|
|
|
|
|
Deepwater Floaters |
|
$ |
337 |
|
|
|
42 |
% |
|
|
97.7 |
% |
|
$ |
361 |
|
|
|
59 |
% |
|
|
90.3 |
% |
|
$ |
431 |
|
|
|
48 |
% |
|
|
97.3 |
% |
|
|
|
|
|
|
|
|
|
|
Mid-Water Floaters |
|
$ |
249 |
|
|
|
24 |
% |
|
|
97.8 |
% |
|
$ |
289 |
|
|
|
31 |
% |
|
|
97.5 |
% |
|
$ |
270 |
|
|
|
55 |
% |
|
|
96.8 |
% |
|
|
|
|
|
|
|
|
|
|
Jack-ups |
|
$ |
124 |
|
|
|
17 |
% |
|
|
100 |
% |
|
$ |
97 |
|
|
|
31 |
% |
|
|
99.8 |
% |
|
$ |
96 |
|
|
|
77 |
% |
|
|
99.5 |
% |
|
|
|
|
|
|
|
|
|
|
Fleet Total |
|
|
|
|
|
|
|
|
|
|
96.6 |
% |
|
|
|
|
|
|
|
|
|
|
95.5 |
% |
|
|
|
|
|
|
|
|
|
|
95.5 |
% |
(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 December 31, 2015, our cold-stacked rigs included one ultra-deepwater semisubmersible, two deepwater semisubmersibles, 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. |
Exhibit 99.2
|
|
|
|
|
Diamond Offshore Drilling, Inc. Rig Status Report February 8, 2016
Updated information noted in bold print |
RECENT COMMITMENTS (See Body of Report For Contract Details)
Ocean Scepter: 1-year extension
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water1 Depth |
|
|
|
|
Year 3 |
|
|
|
|
|
Contract Dayrate |
|
Estimated |
|
Estimated |
|
|
|
|
Planned Downtime
4 (For Periods Lasting >10 days) |
|
|
|
Rig Name |
|
(feet) |
|
|
Type2 |
|
Built |
|
Location |
|
Operator |
|
(USD) |
|
Start Date |
|
End Date |
|
Status |
|
|
1Q16 E |
|
|
2Q16 E |
|
|
3Q16 E |
|
|
4Q16 E |
|
|
Comments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals: |
|
|
|
188 |
|
|
|
84 |
|
|
|
42 |
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean BlackRhino (note 5) |
|
|
12,000 |
|
|
DS 15K DP |
|
2014 |
|
US GOM |
|
Murphy |
|
550,000 |
|
late May 2015 |
|
mid Feb 2016 |
|
|
265-day term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US GOM |
|
|
|
|
|
mid Feb 2016 |
|
early Dec 2016 |
|
|
Contract prep; standby;customer acceptance |
|
|
|
45 |
|
|
|
15 |
|
|
|
30 |
|
|
|
60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
US GOM |
|
Hess |
|
400,000 |
|
early Dec 2016 |
|
early Dec 2019 |
|
|
3-year term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean BlackLion |
|
|
12,000 |
|
|
DS 15K DP |
|
2015 |
|
US GOM |
|
Hess |
|
400,000 |
|
mid Dec 2015 |
|
mid Dec 2019 |
|
|
4-year term |
|
|
|
37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer acceptance testing |
|
|
|
|
|
|
|
|
|
|
|
|
Gulf of Mexico - Mexico |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Scepter |
|
|
350 |
|
|
JU 15K IC |
|
2008 |
|
Mexico |
|
Pemex |
|
115,000 |
|
early Jan 2015 |
|
early Mar 2017 |
|
|
Term + 1-year extension |
|
|
|
|
|
|
|
|
|
|
|
12 |
|
|
|
|
|
|
|
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 |
|
197,500 |
|
late Dec 2015 |
|
late Apr 2016 |
|
|
First optional well + 3 x 1-well options |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Endeavor |
|
|
10,000 |
|
|
SS 15K |
|
2007 |
|
Romania, Italy |
|
|
|
|
|
late Dec 2015 |
|
late May 2016 |
|
|
Demobe; reassembly |
|
|
|
91 |
|
|
|
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australasia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Apex |
|
|
6,000 |
|
|
SS 15K |
|
2014 |
|
Australia |
|
Woodside Energy |
|
285,000 |
|
early May 2016 |
|
late Oct 2017 |
|
|
18-month term, convertible to 24-month @ $270k/day + 1 x 12-month +
2 x 6- month unpriced options |
|
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
Mobe to Australia |
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 |
|
410,000 |
|
mid Jul 2015 |
|
early Oct 2016 |
|
|
15 months of 18-month term + 1 year option |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Australia |
|
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 Courage |
|
|
10,000 |
|
|
SS 15K DP |
|
2009 |
|
Brazil |
|
Petrobras |
|
455,000 |
|
late Oct 2015 |
|
late Feb 2018 |
|
|
3-year extension |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water1 Depth |
|
|
|
|
Year 3 |
|
|
|
|
|
Contract Dayrate |
|
Estimated |
|
Estimated |
|
|
|
Planned Downtime
4 (For Periods Lasting >10 days) |
|
|
Rig Name |
|
(feet) |
|
|
Type2 |
|
Built |
|
Location |
|
Operator |
|
(USD) |
|
Start Date |
|
End Date |
|
Status |
|
1Q16 E |
|
|
2Q16 E |
|
3Q16 E |
|
4Q16 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 Quest |
|
|
4,000 |
|
|
SS 15K |
|
1973 |
|
Malaysia |
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
|
|
|
|
|
|
|
|
Ocean America |
|
|
5,500 |
|
|
SS 15K |
|
1988 |
|
Malaysia |
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Alliance |
|
|
5,250 |
|
|
SS 15K DP |
|
1988 |
|
Brazil / US GOM |
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Star |
|
|
5,500 |
|
|
SS 15K |
|
1997 |
|
US GOM |
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Onyx |
|
|
6,000 |
|
|
SS 15K |
|
2014 |
|
US GOM |
|
|
|
|
|
|
|
|
|
Stacked |
|
|
15 |
|
|
|
|
|
|
|
|
|
Ocean Baroness |
|
|
8,000 |
|
|
SS 15K |
|
2002 |
|
US GOM |
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
|
|
|
|
|
|
|
|
Ocean Confidence |
|
|
10,000 |
|
|
SS 15K DP |
|
2001 |
|
Canary Islands |
|
|
|
|
|
|
|
|
|
Stacked |
|
|
|
|
|
|
|
|
|
|
|
|
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.) Murphy exercised its option to revert term on the Ocean BlackRhino to its previous 265-day duration and paid a lump sum payback feein 4Q 2015 based on a rate of
$550,000 per day.
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. |
|
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 opportunites 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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