Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 23, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'VTG | ' |
Entity Registrant Name | 'Vantage Drilling CO | ' |
Entity Central Index Key | '0001419428 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 307,792,075 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $81,315 | $54,686 |
Restricted cash | ' | 2,125 |
Trade receivables | 224,572 | 168,654 |
Inventory | 64,485 | 55,804 |
Prepaid expenses and other current assets | 15,821 | 23,717 |
Total current assets | 386,193 | 304,986 |
Property and equipment | ' | ' |
Property and equipment | 3,509,267 | 3,472,407 |
Accumulated depreciation | -376,280 | -281,759 |
Property and equipment, net | 3,132,987 | 3,190,648 |
Other assets | ' | ' |
Investment in joint venture | 1,571 | 32,482 |
Other assets | 83,083 | 100,027 |
Total other assets | 84,654 | 132,509 |
Total assets | 3,603,834 | 3,628,143 |
Current liabilities | ' | ' |
Accounts payable | 57,848 | 65,115 |
Accrued liabilities | 131,168 | 96,382 |
Current maturities of long-term debt and revolving credit agreement | 53,500 | 63,500 |
Total current liabilities | 242,516 | 224,997 |
Long–term debt, net of discount of $30,253 and $39,325 | 2,731,970 | 2,852,050 |
Other long-term liabilities | 87,966 | 45,640 |
Commitments and contingencies | ' | ' |
Shareholders’ equity | ' | ' |
Preferred shares, $0.001 par value, 10,000 shares authorized; none issued or outstanding | ' | ' |
Ordinary shares, $0.001 par value, 500,000 shares authorized; 307,732 and 304,101 shares issued and outstanding | 308 | 304 |
Additional paid-in capital | 903,464 | 896,928 |
Accumulated deficit | -362,390 | -391,776 |
Total shareholders’ equity | 541,382 | 505,456 |
Total liabilities and shareholders’ equity | $3,603,834 | $3,628,143 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Long-term debt, discount | $30,253 | $39,325 |
Preferred shares, par value | $0.00 | $0.00 |
Preferred shares, shares authorized | 10,000 | 10,000 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
Ordinary shares, par value | $0.00 | $0.00 |
Ordinary shares, shares authorized | 500,000 | 500,000 |
Ordinary shares, shares issued | 307,732 | 304,101 |
Ordinary shares, shares outstanding | 307,732 | 304,101 |
Consolidated_Statement_of_Oper
Consolidated Statement of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue | ' | ' | ' | ' |
Contract drilling services | $189,648 | $158,887 | $602,859 | $449,354 |
Management fees | 1,923 | 3,903 | 12,474 | 9,511 |
Reimbursables | 15,947 | 13,095 | 44,368 | 34,658 |
Total revenue | 207,518 | 175,885 | 659,701 | 493,523 |
Operating costs and expenses | ' | ' | ' | ' |
Operating costs | 111,271 | 84,132 | 310,995 | 236,566 |
General and administrative | 9,980 | 8,891 | 26,461 | 23,372 |
Depreciation | 31,639 | 24,886 | 94,894 | 74,727 |
Total operating costs and expenses | 152,890 | 117,909 | 432,350 | 334,665 |
Income from operations | 54,628 | 57,976 | 227,351 | 158,858 |
Other income (expense) | ' | ' | ' | ' |
Interest income | 14 | 26 | 38 | 195 |
Interest expense and other financing charges | -53,376 | -47,379 | -162,149 | -158,296 |
Gain (loss) on debt extinguishment | 1,051 | ' | -462 | -98,327 |
Other, net | 376 | 305 | 616 | 2,195 |
Total other income (expense) | -51,935 | -47,048 | -161,957 | -254,233 |
Income (loss) before income taxes | 2,693 | 10,928 | 65,394 | -95,375 |
Income tax provision | 8,309 | 4,084 | 36,008 | 16,766 |
Net income (loss) | ($5,616) | $6,844 | $29,386 | ($112,141) |
Earnings (loss) per share | ' | ' | ' | ' |
Basic | ($0.02) | $0.02 | $0.10 | ($0.37) |
Diluted | ($0.02) | $0.02 | $0.10 | ($0.37) |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income (loss) | $29,386 | ($112,141) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation expense | 94,894 | 74,727 |
Amortization of debt financing costs | 8,713 | 9,425 |
Amortization of debt discount | 8,496 | 4,605 |
Non-cash loss on debt extinguishment | 462 | 6,070 |
Share-based compensation expense | 6,540 | 5,431 |
Deferred income tax expense (benefit) | -184 | 858 |
Equity in loss of joint venture | 317 | 345 |
Loss on disposal of assets | 558 | 114 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash | 2,125 | 162 |
Trade receivables | -55,917 | -25,463 |
Inventory | -8,681 | -15,146 |
Prepaid expenses and other current assets | 7,686 | 11,709 |
Other assets | 6,660 | -6,866 |
Accounts payable | -7,267 | 5,715 |
Accrued liabilities and other long-term liabilities | 81,194 | -25,146 |
Net cash provided by (used in) operating activities | 174,982 | -65,601 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Additions to property and equipment | -34,137 | -548,621 |
Return of investment in joint venture | 23,250 | ' |
Proceeds from sale of property and equipment | ' | 2 |
Net cash used in investing activities | -10,887 | -548,619 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from issuance of senior secured notes, net | ' | 775,000 |
Proceeds from issuance of term loan, net | ' | 344,750 |
Proceeds from the issuance of senior convertible notes | ' | 100,000 |
Repayment of long-term debt | -127,466 | -1,020,499 |
Proceeds from (repayment of) revolving credit agreement, net | -10,000 | 10,000 |
Debt issuance costs | ' | -30,028 |
Net cash provided by (used in) financing activities | -137,466 | 179,223 |
Net increase (decrease) in cash and cash equivalents | 26,629 | -434,997 |
Cash and cash equivalents—beginning of period | 54,686 | 502,726 |
Cash and cash equivalents—end of period | 81,315 | 67,729 |
Cash paid for: | ' | ' |
Interest | 115,142 | 164,955 |
Taxes | 17,415 | 15,478 |
Non-cash investing and financing transactions: | ' | ' |
Interest capitalized | -3,759 | -17,592 |
Trade-in value on equipment upgrades | -922 | ' |
Discount on repurchase of senior notes | -1,685 | ' |
Fair value of embedded conversion option of Convertible Notes | ' | 11,732 |
Write-off of joint venture deferred construction supervision revenue | $7,344 | ' |
Organization_and_Recent_Events
Organization and Recent Events | 9 Months Ended |
Sep. 30, 2014 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' |
Organization and Recent Events | ' |
1. Organization and Recent Events | |
Vantage Drilling Company is a holding company organized under the laws of the Cayman Islands on November 14, 2007 with no significant operations or assets, other than its interests in its subsidiaries. Through our direct and indirect subsidiaries, Vantage Drilling Company is an international offshore drilling contractor for the oil and gas industry focused on operating a fleet of modern, high-specification mobile offshore drilling units (“MODUs”). Our operating fleet currently consists of four ultra-premium jackup rigs and three ultra-deepwater drillships. Our global fleet is currently located in India, Southeast Asia and West Africa. | |
In the first nine months of 2014, we repurchased in the open market $40.0 million of our 7.125% Senior Secured Notes (the “7.125% Senior Notes”) and $7.0 million of our 7.5% Senior Secured First Lien Notes (the “7.5% Senior Notes”). In June 2014, we made an additional principal payment of $42.0 million on our $500 million Term Loan (the “2017 Term Loan”). In October 2014, we repurchased in the open market $5.0 million of our 7.125% Senior Notes, $12.4 million of our 7.5% Senior Notes and $13.4 million of our 7.875% Senior Convertible Notes (the “7.875% Convertible Notes”). |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||
Basis of Presentation and Significant Accounting Policies | ' | ||||||||||||||||||
2. Basis of Presentation and Significant Accounting Policies | |||||||||||||||||||
Basis of Consolidation: The accompanying interim consolidated financial information as of September 30, 2014 and for the three and nine months ended September 30, 2014 and 2013 has been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and includes our accounts and those of our majority owned subsidiaries. All significant intercompany transactions and accounts have been eliminated. They reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the interim periods, on a basis consistent with the annual audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures made are adequate to provide for fair presentation. The balance sheet at December 31, 2013 is derived from our December 31, 2013 audited financial statements. These interim financial statements should be read in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods. Certain previously reported amounts have been reclassified to conform to the current period presentation. | |||||||||||||||||||
Cash and Cash Equivalents: Includes deposits with financial institutions as well as short-term money market instruments with maturities of three months or less when purchased. | |||||||||||||||||||
Restricted Cash: Consists of cash and cash equivalents established as debt reserves and posted as collateral for bid tenders and performance bonds. | |||||||||||||||||||
Inventory: Consists of materials, spare parts, consumables and related supplies for our drilling rigs and is carried at the lower of average cost or market. | |||||||||||||||||||
Property and Equipment: Consists of the costs of our drilling rigs, furniture and fixtures, computer equipment and capitalized costs for computer software. Drilling rigs are depreciated on a component basis over estimated useful lives ranging from five to thirty-five years on a straight-line basis as of the date placed in service. Other assets are depreciated upon placement in service over estimated useful lives ranging from three to seven years on a straight-line basis. When assets are sold, retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and the gain or loss is recognized. | |||||||||||||||||||
Interest costs and the amortization of debt financing costs related to the financings of our MODUs are capitalized as part of the cost while they are under construction and prior to the commencement of each vessel’s first contract. Total interest and amortization costs capitalized for assets under construction for the three and nine months ended September 30, 2014 were $1.3 million and $3.8 million, respectively. Total interest and amortization costs capitalized for assets under construction for the three and nine months ended September 30, 2013 were $9.5 million and $15.9 million, respectively. We evaluate the realization of property and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss on our property and equipment exists when estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Any impairment loss recognized would represent the excess of the asset’s carrying value over the estimated fair value. | |||||||||||||||||||
Debt Financing Costs: Costs incurred with debt financings are deferred and amortized over the term of the related financing facility on a straight line basis which approximates the interest method. | |||||||||||||||||||
Investment in Joint Venture: In November 2012, we acquired 41.9% of Sigma Drilling, Ltd. (“Sigma”), which had contracted to build an ultra-deepwater drillship, to be known as the Palladium Explorer, at STX Offshore & Shipbuilding Co. Ltd.’s (“STX”) shipyard in Korea. We are currently accounting for our interest in Sigma as an equity method investment. Accordingly, we recognize 41.9% of the profit or loss of Sigma as other income (expense) in our consolidated statement of operations with a corresponding adjustment to our investment in joint venture account. We capitalized interest on our investment in Sigma until September 2013 when STX suspended construction of the drillship. In January 2014, Sigma issued a termination notice to STX on the Palladium Explorer construction contract and Sigma terminated our construction management agreement. In July 2014, a reduction in Sigma’s capital was approved by the appropriate authorities and in August 2014, a distribution of $55.5 million was made to the remaining shareholders of Sigma, of which we received $23.3 million. See “Note 4. Construction Supervision and Operations Management Agreements.” During the three and nine-month periods ended September 30, 2014 and 2013, Sigma recognized losses from operations consisting primarily of general administrative expenses. | |||||||||||||||||||
The change in our investment in joint venture account was composed of the following (in thousands): | |||||||||||||||||||
Balance, December 31, 2013 | $ | 32,482 | |||||||||||||||||
Return of investment | (23,250 | ) | |||||||||||||||||
Write-off of deferred construction supervision revenue | (7,344 | ) | |||||||||||||||||
Vantage share of net losses | (317 | ) | |||||||||||||||||
Balance, September 30, 2014 | $ | 1,571 | |||||||||||||||||
Revenue: Revenue is recognized as services are performed based on contracted dayrates and the number of operating days during the period. | |||||||||||||||||||
In connection with a customer contract, we may receive lump-sum fees for the mobilization of equipment and personnel or the demobilization of equipment and personnel upon completion. Mobilization fees received and costs incurred to mobilize a rig from one geographic market to another are deferred and recognized on a straight-line basis over the term of such contract, excluding any option periods. Costs incurred to mobilize a rig without a contract are expensed as incurred. Fees or lump-sum payments received for capital improvements to rigs are deferred and amortized to income over the term of the related drilling contract. The costs of such capital improvements are capitalized and depreciated over the useful lives of the assets. Upon completion of drilling contracts, any demobilization fees received are recorded as revenue. We record reimbursements from customers for rebillable costs and expenses as revenue and the related direct costs as operating expenses. | |||||||||||||||||||
Rig and Equipment Certifications: We are required to obtain regulatory certifications to operate our drilling rigs and certain specified equipment and must maintain such certifications through periodic inspections and surveys. The costs associated with these certifications, including drydock costs, are deferred and amortized over the corresponding certification periods. | |||||||||||||||||||
Income Taxes: Income taxes are provided for based upon the tax laws and rates in effect in the countries in which operations are conducted and income is earned. Deferred income tax assets and liabilities are computed for differences between the financial statement basis and tax basis of assets and liabilities that will result in future taxable or deductible amounts and are based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. We recognize interest and penalties related to income taxes as a component of income tax expense. | |||||||||||||||||||
Earnings per Share: Basic earnings (loss) per share are based on the weighted average number of ordinary shares outstanding during the applicable period. Diluted earnings (loss) per share are computed based on the weighted average number of ordinary shares and ordinary share equivalents outstanding in the applicable period, as if all potentially dilutive securities were converted into ordinary shares (using the treasury stock method). | |||||||||||||||||||
The following is a reconciliation of the number of shares used for the basic and diluted earnings (loss) per share (“EPS”) computations: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Weighted average ordinary shares outstanding for basic EPS | 306,761 | 302,682 | 306,046 | 301,962 | |||||||||||||||
Options and warrants | - | - | - | - | |||||||||||||||
Convertible notes | - | - | - | - | |||||||||||||||
Adjusted weighted average ordinary shares outstanding for diluted EPS | 306,761 | 302,682 | 306,046 | 301,962 | |||||||||||||||
The following is a reconciliation of the number of shares excluded from diluted EPS computations: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Options and warrants | 2,097 | 2,469 | 2,097 | 2,469 | |||||||||||||||
Convertible notes | 77,561 | 79,059 | 77,561 | 79,059 | |||||||||||||||
Future potentially dilutive ordinary shares excluded from diluted EPS | 79,658 | 81,528 | 79,658 | 81,528 | |||||||||||||||
The warrants and share options are anti-dilutive as the exercise or conversion price of such securities exceeded the average market price of our shares for the applicable periods. The ordinary shares issuable for the convertible notes, if converted, are excluded as the effect of including convertible debt and the related adjustments to income under the “if-converted” method of computing diluted earnings per share is anti-dilutive for the applicable periods. | |||||||||||||||||||
Concentration of Credit Risk: Financial instruments that potentially subject us to a significant concentration of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. We maintain deposits in federally insured financial institutions in excess of federally insured limits. We monitor the credit ratings and our concentration of risk with these financial institutions on a continuing basis to safeguard our cash deposits. Some of our restricted cash is invested in certificates of deposit. We have a limited number of key customers, who are primarily large international oil and gas operators, national oil companies and other international oil and gas companies. Our contracts provide for monthly billings as services are performed and we monitor compliance with contract payment terms on an ongoing basis. Outstanding receivables beyond payment terms are promptly investigated and discussed with the specific customer. We did not have an allowance for doubtful accounts as of September 30, 2014 or December 31, 2013. | |||||||||||||||||||
Share-Based Compensation: We account for share-based compensation using the fair value method as prescribed under U.S. GAAP. Restricted share grants are valued based on the market price of our ordinary shares on the date of grant and the fair value attributable to share options is calculated based on the Black-Scholes option pricing model. The fair values are amortized to expense over the requisite service period which is generally equivalent to the time required to vest the share options and share grants. We recognized approximately $2.3 million and $1.8 million of share-based compensation expense for the three months ended September 30, 2014 and 2013, respectively. For the nine months ended September 30, 2014 and 2013, we recognized approximately $6.5 million and $5.4 million, respectively, of share-based compensation expense. | |||||||||||||||||||
Use of Estimates: The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. While management believes current estimates are appropriate and reasonable, actual results could differ from those estimates. | |||||||||||||||||||
Fair Value of Financial Instruments: The fair value of our short-term financial assets and liabilities approximates the carrying amounts represented in the balance sheet principally due to the short-term nature or floating rate nature of these instruments. At September 30, 2014, the fair value of the 5.50% Convertible Senior Notes (the “5.50% Convertible Notes”), 7.125% Senior Notes, the 7.5% Senior Notes and the 7.875% Convertible Notes was approximately $86.0 million, $649.5 million, $1.1 billion and $54.9 million, respectively, based on quoted market prices, a Level 1 measurement. | |||||||||||||||||||
Derivative Financial Instruments: We may use derivative financial instruments to reduce our exposure to various market risks, primarily interest rate risk. We have documented policies and procedures to monitor and control the use of derivatives. We do not engage in derivative transactions for speculative or trading purposes. At September 30, 2014 and December 31, 2013, we had no outstanding derivative instruments. | |||||||||||||||||||
Recent Accounting Standards: In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. The ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP, including industry-specific guidance. The ASU is based on the principle that revenue is recognized when an entity transfers promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires significant additional disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years, using either a full or a modified retrospective application approach. We are beginning the process of evaluating the impact the pronouncement will have on our consolidated financial statements and related disclosures. |
Transactions_with_F3_Capital_a
Transactions with F3 Capital and Affiliates | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Transactions with F3 Capital and Affiliates | ' |
3. Transactions with F3 Capital and Affiliates | |
F3 Capital Note | |
In connection with the acquisition of the Platinum Explorer, we issued a promissory note to F3 Capital (the “F3 Capital Note”). The F3 Capital Note accrues interest at 5% per annum and matures in January 2018. If we do not repay the F3 Capital Note on its scheduled maturity date or upon the occurrence of certain customary default provisions, the interest rate on any amounts outstanding under the F3 Capital Note will rise to 10% per annum. The F3 Capital Note contains a preemptive right covenant that provides F3 Capital with the right to purchase a pro-rata portion of any equity or convertible debt that we offer at a price per share less than the contingent conversion price of the F3 Capital Note so long as the F3 Capital Note is outstanding. | |
In August 2012, F3 Capital elected to apply $6.5 million aggregate principal amount of the F3 Capital Note as consideration for an equivalent amount of 7.875% Convertible Notes. We did not receive any cash proceeds from this direct placement. | |
We originally valued the F3 Capital Note based on our weighed average cost of capital which resulted in a discounted present value of $27.8 million. As of September 30, 2014, if we were to value the F3 Capital Note at our current weighted average cost of capital, the current discounted present value would be approximately $33.7 million, a Level 3 measurement. In July 2013, F3 Capital delivered formal notice to us that it believes we breached the F3 Capital Note. Among its claims, F3 Capital alleged that we failed to use commercially reasonable efforts to obtain shareholder approval for the issuance of shares upon the conversion of the F3 Capital Note. In connection with its claims, F3 Capital may attempt to accelerate the maturity of the F3 Capital Note in an amount totaling approximately $63.0 million of principal and interest, plus F3 Capital’s claims for penalties and additional interest in excess of $35.0 million. We believe we have met our obligations under the F3 Capital Note to use commercially reasonable efforts to obtain shareholder approvals, and instituted an action for declaratory relief in the English High Court for purposes of obtaining a judicial determination on F3 Capital’s claims. We intend to vigorously defend our position. In recognition that the standards of what constitutes commercially reasonable efforts may be subject to interpretation, there can be no assurances that the court will agree with our interpretation. | |
Lawsuit | |
On August 21, 2012, we filed a lawsuit against Mr. Hsin-Chi Su, a former member of our Board of Directors and the owner of F3 Capital, our largest shareholder, asserting breach of fiduciary duties, fraud, fraudulent inducement and negligent misrepresentation, and unjust enrichment based on Mr. Su’s conduct in his dealings with the Company both immediately prior to and during his tenure as one of our directors. The lawsuit, styled Vantage Drilling Company vs. Hsin-Chi Su a/k/a Nobu Su, is currently pending in the 270th Judicial District Court of Harris County, Texas. In the lawsuit, we are seeking to recover actual and punitive damages as well as other relief, in each case, relating to our past transactions with Mr. Su and F3 Capital, including our joint venture with Mandarin Drilling Corporation, an entity formerly owned and controlled by Mr. Su, our acquisition of the Platinum Explorer from Mandarin Drilling Corporation and the financing thereof, and the acquisition of the Titanium Explorer. In conjunction with the pending lawsuit, on June 20, 2014, we received notice that Mr. Su had filed a countersuit against the Company and certain of the Company's current and former officers and directors. The countersuit alleges fraud, breach of fiduciary duty and theft by the Company and certain of its current and former officers and directors in the Company's dealings with Mr. Su. Further, the countersuit alleges that the Company has wrongfully obtained an injunction against Mr. Su. In his countersuit, Mr. Su asks that the Company recover nothing in its suit against Mr. Su and seeks actual damages of at least $8 billion, exemplary damages, attorneys' fees and other relief. We intend to vigorously defend against the charges made in the countersuit and pursue our claims, but we can provide no assurance as to the outcome of this legal action. | |
Drillship Construction Supervision Agreement | |
We had a construction supervision agreement with an affiliate of F3 Capital that entitled us to payments for supervising the construction of Hull 3608, an ultra-deepwater drillship. In November 2009, pursuant to the terms of the construction supervision agreement, the affiliate of F3 Capital cancelled the agreement. Management fee revenue of approximately $3.0 million for construction services rendered by us in 2009 prior to the suspension and cancellation has not been paid as of September 30, 2014, and remains currently due and payable. We have issued demand letters regarding payment of the overdue amount. |
Construction_Supervision_and_O
Construction Supervision and Operations Management Agreements | 9 Months Ended |
Sep. 30, 2014 | |
Construction Supervision And Operations Management Agreements [Abstract] | ' |
Construction Supervision and Operations Management Agreements | ' |
4. Construction Supervision and Operations Management Agreements | |
In September 2013, we signed an agreement to supervise and manage the construction of two ultra-deepwater drillships for a third party. We receive management fees and reimbursable costs during the construction phase of the two drillships, subject to a maximum amount for each drillship. | |
In connection with our November 2012 investment of $31 million for a 41.9% ownership interest in Sigma, we entered into an agreement to supervise and manage the construction of the Palladium Explorer. Pursuant to the terms of the construction management agreement, we were entitled to a fixed monthly management fee during the expected thirty-six month construction period for the vessel. Following the receipt of notice in September 2013 that STX was suspending construction of the Palladium Explorer, Sigma terminated our construction management agreement in January 2014. In May 2014, we reached an agreement with Sigma regarding amounts owed to us under the construction management agreement, which resulted in payment to us of $4.0 million, including a $3.0 million termination fee. The remaining $1.7 million outstanding will be received on the earlier of the receipt of any further monies from STX or one year from the date of the agreement. In July 2014, a reduction in Sigma’s capital was approved by the appropriate authorities and in August 2014, a distribution of $55.5 million was made to the shareholders of Sigma, of which we received $23.3 million. While we continue to believe we will recover substantially all of our remaining investment, there can be no assurance that we will receive payments equal to the current amount of our investment in Sigma and the amount due under the construction management agreement. | |
In October 2012, we reached an understanding with a contractor in Mexico to manage the construction and operations of a newbuild jackup rig. The contractor subsequently acquired a second jackup rig and ordered two additional rigs, and awarded us construction management contracts for each of the four rigs. Effective September 30, 2013, the contractor assumed construction management responsibilities for the third and fourth rigs, however, we continued to receive our management fees until mid-November. We managed the operations of the first two rigs in Mexico until May 31, 2014 when we transitioned the rig operations to the contractor. In connection therewith, we are receiving a termination fee of $2.75 million, payable in six equal monthly installments beginning June 30, 2014 and have received four payments thus far. | |
In July 2010, we signed an agreement to supervise and manage the construction and marketing of the ultra-deepwater drillship the Dalian Developer. In September 2013, the agreement was modified and notice was given to us that the contract would terminate in six months. The agreement terminated in March 2014 and we have no further obligations with regard to the Dalian Developer. |
Debt
Debt | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Debt Disclosure [Abstract] | ' | |||||||||
Debt | ' | |||||||||
5. Debt | ||||||||||
Our debt was composed of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
(Unaudited) | ||||||||||
(In thousands) | ||||||||||
7.5% Senior Notes, issued at par | $ | 1,143,000 | $ | 1,150,000 | ||||||
7.125% Senior Notes, issued at par | 734,973 | 775,000 | ||||||||
$500 million 2017 Term Loan, net of discount of $4,916 and $7,109 | 378,084 | 455,391 | ||||||||
$350 million 2019 Term Loan, net of discount of $3,893 and $4,561 | 340,857 | 342,814 | ||||||||
5.50% Convertible Notes, net of discount of $7,001 and $9,923 | 92,999 | 90,077 | ||||||||
7.875% Convertible Notes, net of discount of $1,696 and $2,130 | 54,804 | 54,370 | ||||||||
Revolving credit agreement | — | 10,000 | ||||||||
F3 Capital Note, net of discount of $12,747 and $15,602 | 40,753 | 37,898 | ||||||||
2,785,470 | 2,915,550 | |||||||||
Less current maturities of long-term debt and revolving credit facility | 53,500 | 63,500 | ||||||||
Long-term debt | $ | 2,731,970 | $ | 2,852,050 | ||||||
7.5% Senior Notes and $500 Million 2017 Term Loan | ||||||||||
In October 2012, Offshore Group Investment Limited, one of our wholly-owned subsidiaries (“OGIL”), issued $1.150 billion in aggregate principal amount of 7.5% Senior Notes under an indenture. The 7.5% Senior Notes were issued at par and are fully and unconditionally guaranteed, on a senior secured basis, by us and certain of our subsidiaries. The 7.5% Senior Notes mature on November 1, 2019, and bear interest from the date of their issuance at the rate of 7.5% per year. Interest on outstanding 7.5% Senior Notes is payable semi-annually in arrears, commencing on May 1, 2013. Interest is computed on the basis of a 360-day year comprised of twelve 30-day months. | ||||||||||
Concurrently with the closing of the 7.5% Senior Notes, we entered into the 2017 Term Loan. The 2017 Term Loan was issued at 98% of the face value and initially had an interest rate of LIBOR plus 5%, with a LIBOR floor of 1.25%. The 2017 Term Loan has scheduled debt maturities, payable quarterly, of 5% in the first year and 10% in subsequent years with final maturity on October 25, 2017. The original issue discount, reported as a direct deduction from the face amount of the 2017 Term Loan, will be recognized over the life of the 2017 Term Loan using the effective interest rate method. The 2017 Term Loan is secured on a senior secured basis by us and certain of our subsidiaries. | ||||||||||
In November 2013, the 2017 Term Loan was amended to modify the applicable interest rates to: (i) decrease the adjusted LIBOR margin from 5.0% to 4.0% per annum, (ii) decrease the LIBOR floor from 1.25% to 1.0% per annum and (iii) decrease the ABR margin from 4.0% to 3.0%. The amendment also reflected a decrease in the principal amount due from $500 million to $475 million as a result of us making scheduled principal repayments under the original note. | ||||||||||
The net proceeds from the above described financings, after fees and expenses, of approximately $1.6 billion were used (i) to pay the total consideration and accrued and unpaid interest on a concurrent tender offer of $1.0 billion of OGIL’s existing debt and related consent solicitation, (ii) for general corporate purposes, including the funding of the final construction payment for the Tungsten Explorer drillship and (iii) to pay fees and expenses related to both of the financings, consent solicitation and related transactions. | ||||||||||
In June 2014, we made an additional principal payment of $42.0 million on the 2017 Term Loan. In connection with this payment, we recognized a non-cash charge of approximately $1.4 million related to the write-off of deferred financing costs and original issuance discount on the debt. | ||||||||||
In September 2014, we repurchased in the open market, and subsequently cancelled, $7.0 million of the 7.5% Senior Notes. In connection with this transaction, we recognized a non-cash gain of approximately $74,000 related to the early extinguishment of the debt. | ||||||||||
7.125% Senior Notes and $350 Million 2019 Term Loan | ||||||||||
In March 2013, OGIL issued $775.0 million in aggregate principal amount of 7.125% Senior Notes under an indenture. The 7.125% Senior Notes were issued at par and are fully and unconditionally guaranteed, on a senior secured basis, by us and certain of our subsidiaries. The 7.125% Senior Notes mature on April 1, 2023, and bear interest from the date of their issuance at the rate of 7.125% per year. Interest on outstanding 7.125% Senior Notes is payable semi-annually in arrears, commencing on October 1, 2013. Interest is computed on the basis of a 360-day year comprised of twelve 30-day months. | ||||||||||
Additionally during March 2013, we entered into the $350 million 2019 Term Loan (the “2019 Term Loan”). The 2019 Term Loan was issued at 98.5% of the face value and bears interest at LIBOR plus 4.5%, with a LIBOR floor of 1.25%. The 2019 Term Loan has annual scheduled debt maturities of 1% of the original principal amount that are payable quarterly commencing in June 2013. The maturity date of the 2019 Term Loan is March 28, 2019. The original issue discount, reported as a direct deduction from the face amount of the 2019 Term Loan, will be recognized over the life of the 2019 Term Loan using the effective interest rate method. The 2019 Term Loan is secured on a senior secured basis by us and certain of our subsidiaries. | ||||||||||
The net proceeds, after fees and expenses, from the 7.125% Senior Notes and the 2019 Term Loan of approximately $1.1 billion were used to retire approximately $1.0 billion of OGIL’s existing debt for total consideration of approximately $1.1 billion, including $92.3 million paid for the early redemption and consent fees and $18.2 million for accrued and unpaid interest. The balance of the proceeds was used for payment of transaction expenses and general corporate purposes. | ||||||||||
In February 2014, we repurchased in the open market, and subsequently cancelled, $6.0 million of the 7.125% Senior Notes. In connection with this transaction, we recognized a non-cash charge of approximately $106,000 related to the early extinguishment of the debt. In May 2014, we repurchased, and subsequently cancelled, an additional $1.5 million of the 7.125% Senior Notes and recognized a non-cash charge of approximately $10,600 related to the early extinguishment of the debt. In the three months ending September 30, 2014, we repurchased, and subsequently cancelled, an additional $32.5 million of the 7.125% Senior Notes and recognized a non-cash gain of approximately $977,000 related to the early extinguishment of the debt. | ||||||||||
5.50% Senior Convertible Notes | ||||||||||
In July 2013, we issued $100 million aggregate principal amount of 5.50% Convertible Notes under an indenture. The 5.50% Convertible Notes will mature on July 15, 2043, unless earlier converted, redeemed or repurchased, and bear interest at a rate of 5.50% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, commencing on January 15, 2014. The 5.50% Convertible Notes are our senior, unsecured obligations, and rank senior in right of payment to all of our existing and future subordinated indebtedness and equal in right of payment with any of our other existing and future senior unsecured indebtedness, including our 7.875% Convertible Notes. The 5.50% Convertible Notes are structurally subordinated to all debt and other liabilities of our subsidiaries and are effectively junior to our secured debt to the extent of the value of the assets securing such debt. The net proceeds, after fees and expenses, of approximately $96.5 million were used to fund the initial payment of $59.5 million under the Cobalt Explorer construction contract and the remainder was used for general corporate purposes. | ||||||||||
The 5.50% Convertible Notes are convertible into our ordinary shares, cash or a combination of ordinary shares and cash, at our election, based upon an initial conversion rate of 418.6289 ordinary shares per $1,000 principal amount of 5.50% Convertible Notes (equivalent to an initial conversion price of approximately $2.39 per ordinary share). In addition, for conversions by holders after July 15, 2013 and prior to July 15, 2016, converting holders are entitled to a conversion make-whole payment upon conversion. | ||||||||||
The 5.50% Convertible Notes contain an embedded conversion option related to the cash settlement provisions and under U.S. GAAP is required to be separated into liability and equity components. We evaluated the 5.50% Convertible Notes based on the market terms of new, nonconvertible debt issuances made by companies with similar credit ratings, adjusting for the unsecured nature of the 5.50% Convertible Notes. Based on this evaluation, we determined that the fair value of the 5.50% Convertible Notes absent the conversion feature was approximately $88.3 million at issuance. The difference between the par value of the 5.50% Convertible Notes and the fair value at date of issuance is recorded as equity and as a discount to the face amount of the 5.50% Convertible Notes and is being amortized to interest expense over the expected life using the effective interest rate method. | ||||||||||
The 5.50% Convertible Notes are subject to redemption at our option on or after July 15, 2016 and before July 15, 2018 if the volume weighted average price of our ordinary shares is greater than or equal to 150% of the applicable conversion price for at least 20 trading days during any 30 consecutive trading day period ending within five trading days prior to the notice of redemption. In addition, we may redeem the 5.50% Convertible Notes at any time on and after July 15, 2018. In each case, the redemption purchase price is equal to 100% of the principal amount of the 5.50% Convertible Notes being redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. | ||||||||||
The 5.50% Convertible Notes are subject to repurchase by us at the option of holders of the 5.50% Convertible Notes on July 15, 2016 and on July 15, 2018 for cash at a price equal to 100% of the principal amount of the 5.50% Convertible Notes being repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. | ||||||||||
7.875% Senior Convertible Notes | ||||||||||
In August 2012, we issued $56.5 million aggregate principal amount of 7.875% Convertible Notes under an indenture. The 7.875% Convertible Notes will mature on September 1, 2042, unless earlier converted, repurchased or redeemed, and bear interest at a rate of 7.875% per annum, payable semiannually, in arrears, on March 1 and September 1 of each year, commencing on March 1, 2013. The 7.875% Convertible Notes are our senior unsecured obligation and rank equal in payment with our other senior unsecured debt but are structurally subordinated to the debt of our subsidiaries as the 7.875% Convertible Notes are not guaranteed by any of our subsidiaries. We issued $6.5 million of the 7.875% Convertible Notes to F3 Capital. The net proceeds, after fees and expenses, of approximately $48.3 million were used to fund capital expenditures and working capital needs, and for general corporate purposes. | ||||||||||
The 7.875% Convertible Notes are convertible into our ordinary shares, or a combination of cash and ordinary shares, if any, at our election, based upon an initial conversion rate of 476.1905 ordinary shares per $1,000 principal amount of 7.875% Convertible Notes (equivalent to an initial conversion price of approximately $2.10 per ordinary share). Holders of the 7.875% Convertible Notes may voluntarily elect to convert all, or any portion, of their holdings at any time. In addition, for any conversions prior to September 1, 2017, holders will be entitled to a make-whole payment upon conversion. | ||||||||||
Due to the embedded conversion option related to the cash settlement provisions, we evaluated the 7.875% Convertible Notes based on the market terms of new, nonconvertible debt issuances made by companies with similar credit ratings, adjusting for the unsecured nature of the 7.875% Convertible Notes. Based on this evaluation, we determined that the fair value of the 7.875% Convertible Notes absent the conversion feature was approximately $53.6 million at issuance. The difference between the par value and the fair value at date of issuance of the 7.875% Convertible Notes was recorded as equity and as a debt discount, and is being amortized to interest expense over the expected life of the 7.875% Convertible Notes using the effective interest rate method. | ||||||||||
The 7.875% Convertible Notes are subject to redemption at our option on or after September 1, 2015 and before September 1, 2017 if the volume weighted average price of our ordinary shares is greater than or equal to 125% of the applicable conversion price for at least 20 trading days during any 30 consecutive trading day period. Further, the 7.875% Convertible Notes are subject to mandatory conversion at our option on or before September 1, 2015 if the volume weighted average price of our ordinary shares is greater than or equal to 150% of the applicable conversion price for at least 20 trading days during any 30 consecutive trading day period. In each case, the redemption purchase price is equal to 100% of the principal amount of the 5.50% Convertible Notes being redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. | ||||||||||
Credit Agreement | ||||||||||
In June 2012, we entered into a secured revolving credit agreement (the “Credit Agreement”) to provide us with advances and letters of credit up to an aggregate principal amount of $25.0 million. In March 2013, in connection with the issuance of the 7.125% Senior Notes and the 2019 Term Loan, we amended the Credit Agreement to increase the aggregate principal amount to $200.0 million, of which $32.0 million is reserved for letters of credit. The Credit Agreement will now mature on April 25, 2017. Advances under the Credit Agreement bear interest at the adjusted base rate (as defined in the Credit Agreement) plus a margin of 2.50% or LIBOR plus a margin of 3.50%, at our option. We may prepay outstanding advances subject to certain prepayment minimums at any time. | ||||||||||
The Credit Agreement includes customary covenants and events of default, including covenants that, among other things, restrict the granting of liens on certain assets, restrict the incurrence of indebtedness and the conveyance of and modification to vessels and require us to maintain certain financial ratios and provide periodic financial reports. Advances under the Credit Agreement are secured by a lien on certain of our assets, which are substantially similar to those assets pledged in connection with the 7.125% Senior Notes, the 7.5% Senior Notes, the 2017 Term Loan and the 2019 Term Loan. We believe we were in compliance with all financial covenants of the Credit Agreement at September 30, 2014. As of September 30, 2014, we had issued letters of credit for $21.5 million under the Credit Agreement. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
Shareholders' Equity | ' |
6. Shareholders’ Equity | |
Preferred Shares | |
We have 10,000,000 authorized preferred shares, par value $0.001 per share. As of September 30, 2014, no preferred shares were issued and outstanding. | |
Ordinary Shares | |
We have 500,000,000 authorized ordinary shares, par value $0.001 per share. Under our 2007 Long-Term Incentive Plan (the “LTIP”), we may issue a maximum of 45 million ordinary shares. During the nine months ended September 30, 2014, we granted to employees and directors 4,321,289 time-vested restricted shares and 1,978,542 performance unit awards under our LTIP. Time-vested restricted share awards issued to employees vest ratably over four years, while awards to directors vest one year from date of grant. Performance unit awards vest over a three-year period based on the level of attainment of pre-determined criteria; upon vesting, each performance unit award may be converted to ordinary shares at a ratio ranging from 0 to 1.5. The value of the 2014 time-vested restricted share awards and performance units is amortized to expense over the respective vesting period based on the fair value of the awards at the grant dates, which was approximately $11.7 million, based on an average share price of $1.86 per share. For purposes of calculating the grant date fair value of the performance units, the target conversion ratio of one ordinary share for one performance unit was used. In the nine months ended September 30, 2014, 2,836,634 of previously granted time-vested restricted share awards and 668,550 performance units, including 96,176 additional shares issued pursuant to achievement of pre-determined criteria, vested. Additionally, in the nine months ended September 30 2014, we issued 125,971 shares, valued at approximately $230,000, to directors in lieu of cash for directors’ fees. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
7. Income Taxes | |
We are a Cayman Islands entity. The Cayman Islands does not impose corporate income taxes. Consequently, we have provided income taxes based on the tax laws and rates in effect in the countries in which operations are conducted, or in which we and our subsidiaries are considered resident for income tax purposes. We operate in multiple countries under different legal forms. As a result, we are subject to the jurisdiction of numerous domestic and foreign tax authorities, as well as to tax agreements and treaties among these governments. Our operations in these different jurisdictions are taxed on various bases, including (i) actual income before taxes, (ii) deemed profits (which are generally determined by applying a tax rate to revenues rather than profits) and (iii) withholding taxes based on revenue. Determination of taxable income in any jurisdiction requires the interpretation of the related tax laws and regulations and the use of estimates and assumptions regarding significant future events, such as the amount, timing and character of deductions, permissible revenue recognition methods under the tax law and the sources and character of income and tax credits. Changes in tax laws, regulations, agreements and treaties, foreign currency exchange restrictions or our level of operations or profitability in each tax jurisdiction could have an impact on the amount of income taxes that we provide during any given year. | |
We account for income taxes pursuant to ASC 740, Accounting for Income Taxes, which requires recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. We provide for deferred taxes on temporary differences between the financial statements and tax bases of assets and liabilities using the enacted tax rates which are expected to apply to taxable income when the temporary differences are expected to reverse. Deferred tax assets are also provided for certain tax credit carryforwards. A valuation allowance is established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. | |
In certain jurisdictions we are taxed under preferential tax regimes, which may require our compliance with specified requirements to sustain the tax benefits. We believe we are in compliance with the specified requirements and will continue to make all reasonable efforts to comply; however, our ability to meet the requirements of the preferential tax regimes may be affected by changes in laws, our business operations and other factors affecting our company and industry, many of which are beyond our control. | |
Our periodic tax returns are subject to examination by taxing authorities in the jurisdictions in which we operate in accordance with the normal statutes of limitations in the applicable jurisdiction. These examinations may result in assessments of additional taxes that are resolved with the authorities or through the courts. Resolution of these matters involves uncertainties and there are no assurances as to the outcome. Our tax years 2008 and forward remain open to examination in many of our jurisdictions and we are currently involved in several tax examinations in jurisdictions where we are operating or have previously operated. As information becomes available during the course of these examinations, we may increase or decrease our estimates of tax assessments and accruals. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
8. Commitments and Contingencies | |
We are subject to litigation, claims and disputes in the ordinary course of business, some of which may not be covered by insurance. There is an inherent risk in any litigation or dispute and no assurance can be given as to the outcome of any claims. We do not believe the ultimate resolution of any existing litigation, claims or disputes will have a material adverse effect on our financial position, results of operations or cash flows. | |
On August 21, 2012, we filed a lawsuit against Mr. Hsin-Chi Su, a former member of our Board of Directors and the owner of F3 Capital, our largest shareholder, asserting breach of fiduciary duties, fraud, fraudulent inducement and negligent misrepresentation, and unjust enrichment based on Mr. Su’s conduct in his dealings with the Company both immediately prior to, and during his tenure as one of our directors. In June 2014, Mr. Su filed a countersuit against us and certain of our current and former officers and directors. See above under “Note 3. Transactions with F3 Capital and Affiliates—Lawsuit” for additional information. | |
We enter into operating leases in the normal course of business for office space, housing, vehicles and specified operating equipment. Some of these leases contain renewal options which would cause our future cash payments to change if we exercised those renewal options. |
Supplemental_Financial_Informa
Supplemental Financial Information | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Selected Quarterly Financial Information [Abstract] | ' | |||||||||
Supplemental Financial Information | ' | |||||||||
9. Supplemental Financial Information | ||||||||||
Prepaid Expenses and Other Current Assets | ||||||||||
Prepaid expenses and other current assets consisted of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
(Unaudited) | ||||||||||
(In thousands) | ||||||||||
Prepaid insurance | $ | 1,914 | $ | 13,178 | ||||||
Sales tax receivable | 4,822 | 3,621 | ||||||||
Income tax receivable | 2,077 | 962 | ||||||||
Current deferred tax asset | 1,931 | 2,139 | ||||||||
Other receivables | 1,093 | 278 | ||||||||
Deferred mobilization costs | — | 665 | ||||||||
Other | 3,984 | 2,874 | ||||||||
$ | 15,821 | $ | 23,717 | |||||||
Property and Equipment, net | ||||||||||
Property and equipment, net consisted of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
(Unaudited) | ||||||||||
(In thousands) | ||||||||||
Drilling equipment | $ | 3,382,927 | $ | 3,376,631 | ||||||
Assets under construction | 104,911 | 75,993 | ||||||||
Office and technology equipment | 19,449 | 17,750 | ||||||||
Leasehold improvements | 1,980 | 2,033 | ||||||||
3,509,267 | 3,472,407 | |||||||||
Accumulated depreciation | (376,280 | ) | (281,759 | ) | ||||||
Property and equipment, net | $ | 3,132,987 | $ | 3,190,648 | ||||||
Other Assets | ||||||||||
Other assets consisted of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
(Unaudited) | ||||||||||
(In thousands) | ||||||||||
Deferred financing costs, net | $ | 45,861 | $ | 56,145 | ||||||
Performance bond collateral | 6,600 | 24,882 | ||||||||
Deferred certification costs | 7,670 | 6,494 | ||||||||
Deferred agent fees | 6,388 | 7,160 | ||||||||
Deferred mobilization costs | 15,144 | 4,066 | ||||||||
Deferred income taxes | 11 | - | ||||||||
Deposits | 1,409 | 1,280 | ||||||||
$ | 83,083 | $ | 100,027 | |||||||
Accrued Liabilities | ||||||||||
Accrued liabilities consisted of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
(Unaudited) | ||||||||||
(In thousands) | ||||||||||
Interest | $ | 76,750 | $ | 43,064 | ||||||
Compensation | 21,067 | 20,045 | ||||||||
Insurance premiums | — | 10,136 | ||||||||
Unearned income | — | 615 | ||||||||
Deferred revenue | — | 8,928 | ||||||||
Property, service and franchise taxes | — | 1,610 | ||||||||
Income taxes payable | 27,145 | 7,577 | ||||||||
Other | 6,206 | 4,407 | ||||||||
$ | 131,168 | $ | 96,382 | |||||||
Other Long-Term Liabilities | ||||||||||
Other long-term liabilities consisted of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
(Unaudited) | ||||||||||
(In thousands) | ||||||||||
Deferred revenue | $ | 75,034 | $ | 34,385 | ||||||
Deferred income taxes | 2,409 | 2,801 | ||||||||
Other non-current liabilities | 10,523 | 8,454 | ||||||||
$ | 87,966 | $ | 45,640 | |||||||
Business_Segment_and_Significa
Business Segment and Significant Customer Information | 9 Months Ended |
Sep. 30, 2014 | |
Segment Reporting [Abstract] | ' |
Business Segment and Significant Customer Information | ' |
10. Business Segment and Significant Customer Information | |
We aggregate our contract drilling operations into one reportable segment even though we provide contract drilling services with different types of MODUs, including jackup rigs and drillships, and in different geographic regions. Our operations are dependent on the global oil and gas industry and our MODUs are relocated based on demand for our services and customer requirements. Our customers consist primarily of large international oil and gas companies, national or government-controlled oil and gas companies and other international exploration and production companies. We also provide construction supervision and operations management services for drilling units owned by others. | |
For 2014 and 2013, the majority of our revenue was from countries outside of the United States. Consequently, we are exposed to the risk of changes in economic, political and social conditions inherent in foreign operations. Four customers accounted for approximately 32%, 24%, 18% and 11% of consolidated revenue for the three months ended September 30, 2014. For the nine months ended September 30, 2014, four customers accounted for 23%, 21%, 20% and 15% of consolidated revenue. Three customers accounted for 31%, 30 % and 10% of consolidated revenue for the three months ended September 30, 2013. For the nine months ended September 30, 2013, three customers accounted for 32%, 26% and 11% of consolidated revenue. |
Supplemental_Condensed_Consoli
Supplemental Condensed Consolidating Financial Information | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | |||||||||||||||||||||||||
Supplemental Condensed Consolidating Financial Information | ' | |||||||||||||||||||||||||
11. Supplemental Condensed Consolidating Financial Information | ||||||||||||||||||||||||||
The 7.125% Senior Notes and 7.5% Senior Notes were issued under separate indentures and are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by us and certain of our subsidiaries (the “Subsidiary Guarantors”). Our other subsidiaries have not guaranteed or pledged assets to secure the 7.125% Senior Notes or the 7.5% Senior Notes (collectively, the “Non-Guarantors”). | ||||||||||||||||||||||||||
The following tables present the condensed consolidating financial information as of September 30, 2014 and 2013 and for the three and nine months ended September 30, 2014 and 2013 of (i) Vantage Drilling Company (the “Parent”), (ii) OGIL, (iii) the Subsidiary Guarantors, (iv) the Non-Guarantors and (v) consolidating and elimination entries representing adjustments to eliminate (a) investments in our subsidiaries and (b) intercompany transactions. | ||||||||||||||||||||||||||
The financial information reflects all adjustments which are, in management’s opinion, necessary for a fair presentation of the financial position as of September 30, 2014 and 2013 and results of operations for the three and nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet (in thousands) | ||||||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||||||||
Cash and cash equivalents | $ | 3,364 | $ | 39,375 | $ | 32,412 | $ | 6,164 | $ | — | $ | 81,315 | ||||||||||||||
Other current assets | 615 | 73 | 289,807 | 14,383 | — | 304,878 | ||||||||||||||||||||
Total current assets | 3,979 | 39,448 | 322,219 | 20,547 | — | 386,193 | ||||||||||||||||||||
Property and equipment, net | — | 1,121 | 2,836,674 | 109,372 | 185,820 | 3,132,987 | ||||||||||||||||||||
Investment in and advances to subsidiaries | 653,679 | 1,433,914 | 1,053,496 | 2,104 | (3,143,193 | ) | — | |||||||||||||||||||
Investment in joint venture | — | — | — | 1,571 | — | 1,571 | ||||||||||||||||||||
Other assets | 9,546 | 42,702 | 26,158 | 4,677 | — | 83,083 | ||||||||||||||||||||
Total assets | $ | 667,204 | $ | 1,517,185 | $ | 4,238,547 | $ | 138,271 | $ | (2,957,373 | ) | $ | 3,603,834 | |||||||||||||
Accounts payable and accrued liabilities | $ | 19,004 | $ | 62,048 | $ | 83,325 | $ | 24,639 | $ | — | $ | 189,016 | ||||||||||||||
Current maturities of long-term debt | — | 53,500 | — | — | — | 53,500 | ||||||||||||||||||||
Intercompany (receivable) payable | (296,590 | ) | (765,545 | ) | 990,031 | 72,104 | — | — | ||||||||||||||||||
Total current liabilities | (277,586 | ) | (649,997 | ) | 1,073,356 | 96,743 | — | 242,516 | ||||||||||||||||||
Long-term debt | 188,556 | 2,543,414 | — | — | — | 2,731,970 | ||||||||||||||||||||
Other long term liabilities | — | — | 79,503 | 8,463 | — | 87,966 | ||||||||||||||||||||
Shareholders’ equity (deficit) | 756,234 | (376,232 | ) | 3,085,688 | 33,065 | (2,957,373 | ) | 541,382 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 667,204 | $ | 1,517,185 | $ | 4,238,547 | $ | 138,271 | $ | (2,957,373 | ) | $ | 3,603,834 | |||||||||||||
Condensed Consolidating Statement of Operations (in thousands) | ||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Consolidated | ||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 203,271 | $ | 4,247 | $ | 207,518 | ||||||||||||||||
Operating costs and expenses | 2,859 | 165 | 139,538 | 10,328 | 152,890 | |||||||||||||||||||||
Income (loss) from operations | (2,859 | ) | (165 | ) | 63,733 | (6,081 | ) | 54,628 | ||||||||||||||||||
Other, net | (4,508 | ) | (47,812 | ) | 393 | (8 | ) | (51,935 | ) | |||||||||||||||||
Income (loss) before income taxes | (7,367 | ) | (47,977 | ) | 64,126 | (6,089 | ) | 2,693 | ||||||||||||||||||
Income tax provision (benefit) | — | — | 7,563 | 746 | 8,309 | |||||||||||||||||||||
Net income (loss) | $ | (7,367 | ) | $ | (47,977 | ) | $ | 56,563 | $ | (6,835 | ) | $ | (5,616 | ) | ||||||||||||
Condensed Consolidating Statement of Operations (in thousands) | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Consolidated | ||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 631,054 | $ | 28,647 | $ | 659,701 | ||||||||||||||||
Operating costs and expenses | 6,590 | 475 | 384,450 | 40,835 | 432,350 | |||||||||||||||||||||
Income (loss) from operations | (6,590 | ) | (475 | ) | 246,604 | (12,188 | ) | 227,351 | ||||||||||||||||||
Other, net | (13,678 | ) | (148,924 | ) | (188,113 | ) | 188,758 | (161,957 | ) | |||||||||||||||||
Income (loss) before income taxes | (20,268 | ) | (149,399 | ) | 58,491 | 176,570 | 65,394 | |||||||||||||||||||
Income tax provision (benefit) | — | — | 33,800 | 2,208 | 36,008 | |||||||||||||||||||||
Net income (loss) | $ | (20,268 | ) | $ | (149,399 | ) | $ | 24,691 | $ | 174,362 | $ | 29,386 | ||||||||||||||
Condensed Consolidating Statement of Cash Flows (in thousands) | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Consolidated | ||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (32,916 | ) | $ | (102,868 | ) | $ | 301,548 | $ | 9,218 | $ | 174,982 | ||||||||||||||
Net cash provided by (used in) investing activities | — | (217 | ) | (11,782 | ) | 1,112 | (10,887 | ) | ||||||||||||||||||
Net cash provided by (used in) financing activities | 32,791 | 136,992 | (294,842 | ) | (12,407 | ) | (137,466 | ) | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (125 | ) | 33,907 | (5,076 | ) | (2,077 | ) | 26,629 | ||||||||||||||||||
Cash and cash equivalents—beginning of period | 3,489 | 5,468 | 37,488 | 8,241 | 54,686 | |||||||||||||||||||||
Cash and cash equivalents—end of period | $ | 3,364 | $ | 39,375 | $ | 32,412 | $ | 6,164 | $ | 81,315 | ||||||||||||||||
Condensed Consolidating Balance Sheet (in thousands) | ||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||||||||
Cash and cash equivalents | $ | 27,386 | $ | 8,817 | $ | 25,902 | $ | 5,624 | $ | — | $ | 67,729 | ||||||||||||||
Other current assets | 443 | 2,125 | 198,799 | 12,819 | — | 214,186 | ||||||||||||||||||||
Total current assets | 27,829 | 10,942 | 224,701 | 18,443 | — | 281,915 | ||||||||||||||||||||
Property and equipment, net | — | 1,227 | 3,119,328 | 86,646 | — | 3,207,201 | ||||||||||||||||||||
Investment in and advances to subsidiaries | 654,624 | 1,437,787 | 1,056,395 | 1,804 | (3,150,610 | ) | — | |||||||||||||||||||
Investment in joint venture | — | — | — | 32,650 | — | 32,650 | ||||||||||||||||||||
Other assets | 12,112 | 53,224 | 26,938 | 3,736 | — | 96,010 | ||||||||||||||||||||
Total assets | $ | 694,565 | $ | 1,503,180 | $ | 4,427,362 | $ | 143,279 | $ | (3,150,610 | ) | $ | 3,617,776 | |||||||||||||
Accounts payable and accrued liabilities | $ | 15,732 | $ | 64,159 | $ | 67,992 | $ | 28,831 | $ | — | $ | 176,714 | ||||||||||||||
Current maturities of long-term debt | — | 63,500 | — | — | — | 63,500 | ||||||||||||||||||||
Intercompany (receivable) payable | (285,369 | ) | (1,131,153 | ) | 1,335,985 | 80,537 | — | — | ||||||||||||||||||
Total current liabilities | (269,637 | ) | (1,003,494 | ) | 1,403,977 | 109,368 | — | 240,214 | ||||||||||||||||||
Long-term debt | 180,252 | 2,682,255 | — | — | — | 2,862,507 | ||||||||||||||||||||
Other long term liabilities | — | — | 34,756 | 6,792 | — | 41,548 | ||||||||||||||||||||
Shareholders’ equity (deficit) | 783,950 | (175,581 | ) | 2,988,629 | 27,119 | (3,150,610 | ) | 473,507 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 694,565 | $ | 1,503,180 | $ | 4,427,362 | $ | 143,279 | $ | (3,150,610 | ) | $ | 3,617,776 | |||||||||||||
Condensed Consolidating Statement of Operations (in thousands) | ||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Consolidated | ||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 163,506 | $ | 12,379 | $ | 175,885 | ||||||||||||||||
Operating costs and expenses | 3,263 | 50 | 97,701 | 16,895 | 117,909 | |||||||||||||||||||||
Income (loss) from operations | (3,263 | ) | (50 | ) | 65,805 | (4,516 | ) | 57,976 | ||||||||||||||||||
Other, net | (4,446 | ) | (42,916 | ) | 199 | 115 | (47,048 | ) | ||||||||||||||||||
Income (loss) before income taxes | (7,709 | ) | (42,966 | ) | 66,004 | (4,401 | ) | 10,928 | ||||||||||||||||||
Income tax provision (benefit) | — | 59 | 2,943 | 1,082 | 4,084 | |||||||||||||||||||||
Net income (loss) | $ | (7,709 | ) | $ | (43,025 | ) | $ | 63,061 | $ | (5,483 | ) | $ | 6,844 | |||||||||||||
Condensed Consolidating Statement of Operations (in thousands) | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Consolidated | ||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 462,035 | $ | 31,488 | $ | 493,523 | ||||||||||||||||
Operating costs and expenses | 6,504 | 112 | 281,541 | 46,508 | 334,665 | |||||||||||||||||||||
Income (loss) from operations | (6,504 | ) | (112 | ) | 180,494 | (15,020 | ) | 158,858 | ||||||||||||||||||
Other income (expense) | (10,687 | ) | (245,782 | ) | (1,647 | ) | 3,883 | (254,233 | ) | |||||||||||||||||
Income (loss) before income taxes | (17,191 | ) | (245,894 | ) | 178,847 | (11,137 | ) | (95,375 | ) | |||||||||||||||||
Income tax provision (benefit) | — | 138 | 15,041 | 1,587 | 16,766 | |||||||||||||||||||||
Net income (loss) | $ | (17,191 | ) | $ | (246,032 | ) | $ | 163,806 | $ | (12,724 | ) | $ | (112,141 | ) | ||||||||||||
Condensed Consolidating Statement of Cash Flows (in thousands) | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Consolidated | ||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (27,152 | ) | $ | (254,448 | ) | $ | 206,052 | $ | 9,947 | $ | (65,601 | ) | |||||||||||||
Net cash provided by (used in) investing activities | — | (658 | ) | (473,474 | ) | (74,487 | ) | (548,619 | ) | |||||||||||||||||
Net cash provided by (used in) financing activities | 39,067 | (158,544 | ) | 235,381 | 63,319 | 179,223 | ||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 11,915 | (413,650 | ) | (32,041 | ) | (1,221 | ) | (434,997 | ) | |||||||||||||||||
Cash and cash equivalents—beginning of period | 15,471 | 422,467 | 57,943 | 6,845 | 502,726 | |||||||||||||||||||||
Cash and cash equivalents—end of period | $ | 27,386 | $ | 8,817 | $ | 25,902 | $ | 5,624 | $ | 67,729 | ||||||||||||||||
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||
Basis of Consolidation | ' | ||||||||||||||||||
Basis of Consolidation: The accompanying interim consolidated financial information as of September 30, 2014 and for the three and nine months ended September 30, 2014 and 2013 has been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and includes our accounts and those of our majority owned subsidiaries. All significant intercompany transactions and accounts have been eliminated. They reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the interim periods, on a basis consistent with the annual audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures made are adequate to provide for fair presentation. The balance sheet at December 31, 2013 is derived from our December 31, 2013 audited financial statements. These interim financial statements should be read in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods. Certain previously reported amounts have been reclassified to conform to the current period presentation. | |||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||
Cash and Cash Equivalents: Includes deposits with financial institutions as well as short-term money market instruments with maturities of three months or less when purchased. | |||||||||||||||||||
Restricted Cash | ' | ||||||||||||||||||
Restricted Cash: Consists of cash and cash equivalents established as debt reserves and posted as collateral for bid tenders and performance bonds. | |||||||||||||||||||
Inventory | ' | ||||||||||||||||||
Inventory: Consists of materials, spare parts, consumables and related supplies for our drilling rigs and is carried at the lower of average cost or market. | |||||||||||||||||||
Property and Equipment | ' | ||||||||||||||||||
Property and Equipment: Consists of the costs of our drilling rigs, furniture and fixtures, computer equipment and capitalized costs for computer software. Drilling rigs are depreciated on a component basis over estimated useful lives ranging from five to thirty-five years on a straight-line basis as of the date placed in service. Other assets are depreciated upon placement in service over estimated useful lives ranging from three to seven years on a straight-line basis. When assets are sold, retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and the gain or loss is recognized. | |||||||||||||||||||
Interest costs and the amortization of debt financing costs related to the financings of our MODUs are capitalized as part of the cost while they are under construction and prior to the commencement of each vessel’s first contract. Total interest and amortization costs capitalized for assets under construction for the three and nine months ended September 30, 2014 were $1.3 million and $3.8 million, respectively. Total interest and amortization costs capitalized for assets under construction for the three and nine months ended September 30, 2013 were $9.5 million and $15.9 million, respectively. We evaluate the realization of property and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss on our property and equipment exists when estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Any impairment loss recognized would represent the excess of the asset’s carrying value over the estimated fair value. | |||||||||||||||||||
Debt Financing Costs | ' | ||||||||||||||||||
Debt Financing Costs: Costs incurred with debt financings are deferred and amortized over the term of the related financing facility on a straight line basis which approximates the interest method. | |||||||||||||||||||
Investment in Joint Venture | ' | ||||||||||||||||||
Investment in Joint Venture: In November 2012, we acquired 41.9% of Sigma Drilling, Ltd. (“Sigma”), which had contracted to build an ultra-deepwater drillship, to be known as the Palladium Explorer, at STX Offshore & Shipbuilding Co. Ltd.’s (“STX”) shipyard in Korea. We are currently accounting for our interest in Sigma as an equity method investment. Accordingly, we recognize 41.9% of the profit or loss of Sigma as other income (expense) in our consolidated statement of operations with a corresponding adjustment to our investment in joint venture account. We capitalized interest on our investment in Sigma until September 2013 when STX suspended construction of the drillship. In January 2014, Sigma issued a termination notice to STX on the Palladium Explorer construction contract and Sigma terminated our construction management agreement. In July 2014, a reduction in Sigma’s capital was approved by the appropriate authorities and in August 2014, a distribution of $55.5 million was made to the remaining shareholders of Sigma, of which we received $23.3 million. See “Note 4. Construction Supervision and Operations Management Agreements.” During the three and nine-month periods ended September 30, 2014 and 2013, Sigma recognized losses from operations consisting primarily of general administrative expenses. | |||||||||||||||||||
The change in our investment in joint venture account was composed of the following (in thousands): | |||||||||||||||||||
Balance, December 31, 2013 | $ | 32,482 | |||||||||||||||||
Return of investment | (23,250 | ) | |||||||||||||||||
Write-off of deferred construction supervision revenue | (7,344 | ) | |||||||||||||||||
Vantage share of net losses | (317 | ) | |||||||||||||||||
Balance, September 30, 2014 | $ | 1,571 | |||||||||||||||||
Revenue | ' | ||||||||||||||||||
Revenue: Revenue is recognized as services are performed based on contracted dayrates and the number of operating days during the period. | |||||||||||||||||||
In connection with a customer contract, we may receive lump-sum fees for the mobilization of equipment and personnel or the demobilization of equipment and personnel upon completion. Mobilization fees received and costs incurred to mobilize a rig from one geographic market to another are deferred and recognized on a straight-line basis over the term of such contract, excluding any option periods. Costs incurred to mobilize a rig without a contract are expensed as incurred. Fees or lump-sum payments received for capital improvements to rigs are deferred and amortized to income over the term of the related drilling contract. The costs of such capital improvements are capitalized and depreciated over the useful lives of the assets. Upon completion of drilling contracts, any demobilization fees received are recorded as revenue. We record reimbursements from customers for rebillable costs and expenses as revenue and the related direct costs as operating expenses. | |||||||||||||||||||
Rig and Equipment Certifications | ' | ||||||||||||||||||
Rig and Equipment Certifications: We are required to obtain regulatory certifications to operate our drilling rigs and certain specified equipment and must maintain such certifications through periodic inspections and surveys. The costs associated with these certifications, including drydock costs, are deferred and amortized over the corresponding certification periods. | |||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||
Income Taxes: Income taxes are provided for based upon the tax laws and rates in effect in the countries in which operations are conducted and income is earned. Deferred income tax assets and liabilities are computed for differences between the financial statement basis and tax basis of assets and liabilities that will result in future taxable or deductible amounts and are based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. We recognize interest and penalties related to income taxes as a component of income tax expense. | |||||||||||||||||||
Earnings per Share | ' | ||||||||||||||||||
Earnings per Share: Basic earnings (loss) per share are based on the weighted average number of ordinary shares outstanding during the applicable period. Diluted earnings (loss) per share are computed based on the weighted average number of ordinary shares and ordinary share equivalents outstanding in the applicable period, as if all potentially dilutive securities were converted into ordinary shares (using the treasury stock method). | |||||||||||||||||||
The following is a reconciliation of the number of shares used for the basic and diluted earnings (loss) per share (“EPS”) computations: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Weighted average ordinary shares outstanding for basic EPS | 306,761 | 302,682 | 306,046 | 301,962 | |||||||||||||||
Options and warrants | - | - | - | - | |||||||||||||||
Convertible notes | - | - | - | - | |||||||||||||||
Adjusted weighted average ordinary shares outstanding for diluted EPS | 306,761 | 302,682 | 306,046 | 301,962 | |||||||||||||||
The following is a reconciliation of the number of shares excluded from diluted EPS computations: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Options and warrants | 2,097 | 2,469 | 2,097 | 2,469 | |||||||||||||||
Convertible notes | 77,561 | 79,059 | 77,561 | 79,059 | |||||||||||||||
Future potentially dilutive ordinary shares excluded from diluted EPS | 79,658 | 81,528 | 79,658 | 81,528 | |||||||||||||||
The warrants and share options are anti-dilutive as the exercise or conversion price of such securities exceeded the average market price of our shares for the applicable periods. The ordinary shares issuable for the convertible notes, if converted, are excluded as the effect of including convertible debt and the related adjustments to income under the “if-converted” method of computing diluted earnings per share is anti-dilutive for the applicable periods. | |||||||||||||||||||
Concentration of Credit Risk | ' | ||||||||||||||||||
Concentration of Credit Risk: Financial instruments that potentially subject us to a significant concentration of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. We maintain deposits in federally insured financial institutions in excess of federally insured limits. We monitor the credit ratings and our concentration of risk with these financial institutions on a continuing basis to safeguard our cash deposits. Some of our restricted cash is invested in certificates of deposit. We have a limited number of key customers, who are primarily large international oil and gas operators, national oil companies and other international oil and gas companies. Our contracts provide for monthly billings as services are performed and we monitor compliance with contract payment terms on an ongoing basis. Outstanding receivables beyond payment terms are promptly investigated and discussed with the specific customer. We did not have an allowance for doubtful accounts as of September 30, 2014 or December 31, 2013. | |||||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||||
Share-Based Compensation: We account for share-based compensation using the fair value method as prescribed under U.S. GAAP. Restricted share grants are valued based on the market price of our ordinary shares on the date of grant and the fair value attributable to share options is calculated based on the Black-Scholes option pricing model. The fair values are amortized to expense over the requisite service period which is generally equivalent to the time required to vest the share options and share grants. We recognized approximately $2.3 million and $1.8 million of share-based compensation expense for the three months ended September 30, 2014 and 2013, respectively. For the nine months ended September 30, 2014 and 2013, we recognized approximately $6.5 million and $5.4 million, respectively, of share-based compensation expense. | |||||||||||||||||||
Use of Estimates | ' | ||||||||||||||||||
Use of Estimates: The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. While management believes current estimates are appropriate and reasonable, actual results could differ from those estimates. | |||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||
Fair Value of Financial Instruments: The fair value of our short-term financial assets and liabilities approximates the carrying amounts represented in the balance sheet principally due to the short-term nature or floating rate nature of these instruments. At September 30, 2014, the fair value of the 5.50% Convertible Senior Notes (the “5.50% Convertible Notes”), 7.125% Senior Notes, the 7.5% Senior Notes and the 7.875% Convertible Notes was approximately $86.0 million, $649.5 million, $1.1 billion and $54.9 million, respectively, based on quoted market prices, a Level 1 measurement. | |||||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||||
Derivative Financial Instruments: We may use derivative financial instruments to reduce our exposure to various market risks, primarily interest rate risk. We have documented policies and procedures to monitor and control the use of derivatives. We do not engage in derivative transactions for speculative or trading purposes. At September 30, 2014 and December 31, 2013, we had no outstanding derivative instruments. | |||||||||||||||||||
Recent Accounting Standards | ' | ||||||||||||||||||
Recent Accounting Standards: In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. The ASU will supersede most of the existing revenue recognition requirements in U.S. GAAP, including industry-specific guidance. The ASU is based on the principle that revenue is recognized when an entity transfers promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also requires significant additional disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The ASU is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those years, using either a full or a modified retrospective application approach. We are beginning the process of evaluating the impact the pronouncement will have on our consolidated financial statements and related disclosures. |
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||
Change in Investment in Joint Venture | ' | ||||||||||||||||||
The change in our investment in joint venture account was composed of the following (in thousands): | |||||||||||||||||||
Balance, December 31, 2013 | $ | 32,482 | |||||||||||||||||
Return of investment | (23,250 | ) | |||||||||||||||||
Write-off of deferred construction supervision revenue | (7,344 | ) | |||||||||||||||||
Vantage share of net losses | (317 | ) | |||||||||||||||||
Balance, September 30, 2014 | $ | 1,571 | |||||||||||||||||
Reconciliation of Number of Shares Used for Basic and Diluted Earnings (Loss) per Share ("EPS") Computations | ' | ||||||||||||||||||
The following is a reconciliation of the number of shares used for the basic and diluted earnings (loss) per share (“EPS”) computations: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Weighted average ordinary shares outstanding for basic EPS | 306,761 | 302,682 | 306,046 | 301,962 | |||||||||||||||
Options and warrants | - | - | - | - | |||||||||||||||
Convertible notes | - | - | - | - | |||||||||||||||
Adjusted weighted average ordinary shares outstanding for diluted EPS | 306,761 | 302,682 | 306,046 | 301,962 | |||||||||||||||
Reconciliation of Number of Shares Excluded from Diluted EPS Computations | ' | ||||||||||||||||||
The following is a reconciliation of the number of shares excluded from diluted EPS computations: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||||
Options and warrants | 2,097 | 2,469 | 2,097 | 2,469 | |||||||||||||||
Convertible notes | 77,561 | 79,059 | 77,561 | 79,059 | |||||||||||||||
Future potentially dilutive ordinary shares excluded from diluted EPS | 79,658 | 81,528 | 79,658 | 81,528 | |||||||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Debt Disclosure [Abstract] | ' | |||||||||
Long-term Debt | ' | |||||||||
Our debt was composed of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
(Unaudited) | ||||||||||
(In thousands) | ||||||||||
7.5% Senior Notes, issued at par | $ | 1,143,000 | $ | 1,150,000 | ||||||
7.125% Senior Notes, issued at par | 734,973 | 775,000 | ||||||||
$500 million 2017 Term Loan, net of discount of $4,916 and $7,109 | 378,084 | 455,391 | ||||||||
$350 million 2019 Term Loan, net of discount of $3,893 and $4,561 | 340,857 | 342,814 | ||||||||
5.50% Convertible Notes, net of discount of $7,001 and $9,923 | 92,999 | 90,077 | ||||||||
7.875% Convertible Notes, net of discount of $1,696 and $2,130 | 54,804 | 54,370 | ||||||||
Revolving credit agreement | — | 10,000 | ||||||||
F3 Capital Note, net of discount of $12,747 and $15,602 | 40,753 | 37,898 | ||||||||
2,785,470 | 2,915,550 | |||||||||
Less current maturities of long-term debt and revolving credit facility | 53,500 | 63,500 | ||||||||
Long-term debt | $ | 2,731,970 | $ | 2,852,050 | ||||||
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2014 | ||||||||||
Selected Quarterly Financial Information [Abstract] | ' | |||||||||
Prepaid Expenses and Other Current Assets | ' | |||||||||
Prepaid expenses and other current assets consisted of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
(Unaudited) | ||||||||||
(In thousands) | ||||||||||
Prepaid insurance | $ | 1,914 | $ | 13,178 | ||||||
Sales tax receivable | 4,822 | 3,621 | ||||||||
Income tax receivable | 2,077 | 962 | ||||||||
Current deferred tax asset | 1,931 | 2,139 | ||||||||
Other receivables | 1,093 | 278 | ||||||||
Deferred mobilization costs | — | 665 | ||||||||
Other | 3,984 | 2,874 | ||||||||
$ | 15,821 | $ | 23,717 | |||||||
Property and Equipment, Net | ' | |||||||||
Property and equipment, net consisted of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
(Unaudited) | ||||||||||
(In thousands) | ||||||||||
Drilling equipment | $ | 3,382,927 | $ | 3,376,631 | ||||||
Assets under construction | 104,911 | 75,993 | ||||||||
Office and technology equipment | 19,449 | 17,750 | ||||||||
Leasehold improvements | 1,980 | 2,033 | ||||||||
3,509,267 | 3,472,407 | |||||||||
Accumulated depreciation | (376,280 | ) | (281,759 | ) | ||||||
Property and equipment, net | $ | 3,132,987 | $ | 3,190,648 | ||||||
Other Assets | ' | |||||||||
Other assets consisted of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
(Unaudited) | ||||||||||
(In thousands) | ||||||||||
Deferred financing costs, net | $ | 45,861 | $ | 56,145 | ||||||
Performance bond collateral | 6,600 | 24,882 | ||||||||
Deferred certification costs | 7,670 | 6,494 | ||||||||
Deferred agent fees | 6,388 | 7,160 | ||||||||
Deferred mobilization costs | 15,144 | 4,066 | ||||||||
Deferred income taxes | 11 | - | ||||||||
Deposits | 1,409 | 1,280 | ||||||||
$ | 83,083 | $ | 100,027 | |||||||
Accrued Liabilities | ' | |||||||||
Accrued liabilities consisted of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
(Unaudited) | ||||||||||
(In thousands) | ||||||||||
Interest | $ | 76,750 | $ | 43,064 | ||||||
Compensation | 21,067 | 20,045 | ||||||||
Insurance premiums | — | 10,136 | ||||||||
Unearned income | — | 615 | ||||||||
Deferred revenue | — | 8,928 | ||||||||
Property, service and franchise taxes | — | 1,610 | ||||||||
Income taxes payable | 27,145 | 7,577 | ||||||||
Other | 6,206 | 4,407 | ||||||||
$ | 131,168 | $ | 96,382 | |||||||
Other Long-term Liabilities | ' | |||||||||
Other long-term liabilities consisted of the following: | ||||||||||
September 30, | December 31, | |||||||||
2014 | 2013 | |||||||||
(Unaudited) | ||||||||||
(In thousands) | ||||||||||
Deferred revenue | $ | 75,034 | $ | 34,385 | ||||||
Deferred income taxes | 2,409 | 2,801 | ||||||||
Other non-current liabilities | 10,523 | 8,454 | ||||||||
$ | 87,966 | $ | 45,640 | |||||||
Supplemental_Condensed_Consoli1
Supplemental Condensed Consolidating Financial Information (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||
Table Text Block Supplement [Abstract] | ' | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | ' | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet (in thousands) | ||||||||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||||||||
Cash and cash equivalents | $ | 3,364 | $ | 39,375 | $ | 32,412 | $ | 6,164 | $ | — | $ | 81,315 | ||||||||||||||
Other current assets | 615 | 73 | 289,807 | 14,383 | — | 304,878 | ||||||||||||||||||||
Total current assets | 3,979 | 39,448 | 322,219 | 20,547 | — | 386,193 | ||||||||||||||||||||
Property and equipment, net | — | 1,121 | 2,836,674 | 109,372 | 185,820 | 3,132,987 | ||||||||||||||||||||
Investment in and advances to subsidiaries | 653,679 | 1,433,914 | 1,053,496 | 2,104 | (3,143,193 | ) | — | |||||||||||||||||||
Investment in joint venture | — | — | — | 1,571 | — | 1,571 | ||||||||||||||||||||
Other assets | 9,546 | 42,702 | 26,158 | 4,677 | — | 83,083 | ||||||||||||||||||||
Total assets | $ | 667,204 | $ | 1,517,185 | $ | 4,238,547 | $ | 138,271 | $ | (2,957,373 | ) | $ | 3,603,834 | |||||||||||||
Accounts payable and accrued liabilities | $ | 19,004 | $ | 62,048 | $ | 83,325 | $ | 24,639 | $ | — | $ | 189,016 | ||||||||||||||
Current maturities of long-term debt | — | 53,500 | — | — | — | 53,500 | ||||||||||||||||||||
Intercompany (receivable) payable | (296,590 | ) | (765,545 | ) | 990,031 | 72,104 | — | — | ||||||||||||||||||
Total current liabilities | (277,586 | ) | (649,997 | ) | 1,073,356 | 96,743 | — | 242,516 | ||||||||||||||||||
Long-term debt | 188,556 | 2,543,414 | — | — | — | 2,731,970 | ||||||||||||||||||||
Other long term liabilities | — | — | 79,503 | 8,463 | — | 87,966 | ||||||||||||||||||||
Shareholders’ equity (deficit) | 756,234 | (376,232 | ) | 3,085,688 | 33,065 | (2,957,373 | ) | 541,382 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 667,204 | $ | 1,517,185 | $ | 4,238,547 | $ | 138,271 | $ | (2,957,373 | ) | $ | 3,603,834 | |||||||||||||
Condensed Consolidating Balance Sheet (in thousands) | ||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||||||||
Cash and cash equivalents | $ | 27,386 | $ | 8,817 | $ | 25,902 | $ | 5,624 | $ | — | $ | 67,729 | ||||||||||||||
Other current assets | 443 | 2,125 | 198,799 | 12,819 | — | 214,186 | ||||||||||||||||||||
Total current assets | 27,829 | 10,942 | 224,701 | 18,443 | — | 281,915 | ||||||||||||||||||||
Property and equipment, net | — | 1,227 | 3,119,328 | 86,646 | — | 3,207,201 | ||||||||||||||||||||
Investment in and advances to subsidiaries | 654,624 | 1,437,787 | 1,056,395 | 1,804 | (3,150,610 | ) | — | |||||||||||||||||||
Investment in joint venture | — | — | — | 32,650 | — | 32,650 | ||||||||||||||||||||
Other assets | 12,112 | 53,224 | 26,938 | 3,736 | — | 96,010 | ||||||||||||||||||||
Total assets | $ | 694,565 | $ | 1,503,180 | $ | 4,427,362 | $ | 143,279 | $ | (3,150,610 | ) | $ | 3,617,776 | |||||||||||||
Accounts payable and accrued liabilities | $ | 15,732 | $ | 64,159 | $ | 67,992 | $ | 28,831 | $ | — | $ | 176,714 | ||||||||||||||
Current maturities of long-term debt | — | 63,500 | — | — | — | 63,500 | ||||||||||||||||||||
Intercompany (receivable) payable | (285,369 | ) | (1,131,153 | ) | 1,335,985 | 80,537 | — | — | ||||||||||||||||||
Total current liabilities | (269,637 | ) | (1,003,494 | ) | 1,403,977 | 109,368 | — | 240,214 | ||||||||||||||||||
Long-term debt | 180,252 | 2,682,255 | — | — | — | 2,862,507 | ||||||||||||||||||||
Other long term liabilities | — | — | 34,756 | 6,792 | — | 41,548 | ||||||||||||||||||||
Shareholders’ equity (deficit) | 783,950 | (175,581 | ) | 2,988,629 | 27,119 | (3,150,610 | ) | 473,507 | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 694,565 | $ | 1,503,180 | $ | 4,427,362 | $ | 143,279 | $ | (3,150,610 | ) | $ | 3,617,776 | |||||||||||||
Condensed Consolidating Statement of Operations | ' | |||||||||||||||||||||||||
Condensed Consolidating Statement of Operations (in thousands) | ||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Consolidated | ||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 203,271 | $ | 4,247 | $ | 207,518 | ||||||||||||||||
Operating costs and expenses | 2,859 | 165 | 139,538 | 10,328 | 152,890 | |||||||||||||||||||||
Income (loss) from operations | (2,859 | ) | (165 | ) | 63,733 | (6,081 | ) | 54,628 | ||||||||||||||||||
Other, net | (4,508 | ) | (47,812 | ) | 393 | (8 | ) | (51,935 | ) | |||||||||||||||||
Income (loss) before income taxes | (7,367 | ) | (47,977 | ) | 64,126 | (6,089 | ) | 2,693 | ||||||||||||||||||
Income tax provision (benefit) | — | — | 7,563 | 746 | 8,309 | |||||||||||||||||||||
Net income (loss) | $ | (7,367 | ) | $ | (47,977 | ) | $ | 56,563 | $ | (6,835 | ) | $ | (5,616 | ) | ||||||||||||
Condensed Consolidating Statement of Operations (in thousands) | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Consolidated | ||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 631,054 | $ | 28,647 | $ | 659,701 | ||||||||||||||||
Operating costs and expenses | 6,590 | 475 | 384,450 | 40,835 | 432,350 | |||||||||||||||||||||
Income (loss) from operations | (6,590 | ) | (475 | ) | 246,604 | (12,188 | ) | 227,351 | ||||||||||||||||||
Other, net | (13,678 | ) | (148,924 | ) | (188,113 | ) | 188,758 | (161,957 | ) | |||||||||||||||||
Income (loss) before income taxes | (20,268 | ) | (149,399 | ) | 58,491 | 176,570 | 65,394 | |||||||||||||||||||
Income tax provision (benefit) | — | — | 33,800 | 2,208 | 36,008 | |||||||||||||||||||||
Net income (loss) | $ | (20,268 | ) | $ | (149,399 | ) | $ | 24,691 | $ | 174,362 | $ | 29,386 | ||||||||||||||
Condensed Consolidating Statement of Operations (in thousands) | ||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Consolidated | ||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 163,506 | $ | 12,379 | $ | 175,885 | ||||||||||||||||
Operating costs and expenses | 3,263 | 50 | 97,701 | 16,895 | 117,909 | |||||||||||||||||||||
Income (loss) from operations | (3,263 | ) | (50 | ) | 65,805 | (4,516 | ) | 57,976 | ||||||||||||||||||
Other, net | (4,446 | ) | (42,916 | ) | 199 | 115 | (47,048 | ) | ||||||||||||||||||
Income (loss) before income taxes | (7,709 | ) | (42,966 | ) | 66,004 | (4,401 | ) | 10,928 | ||||||||||||||||||
Income tax provision (benefit) | — | 59 | 2,943 | 1,082 | 4,084 | |||||||||||||||||||||
Net income (loss) | $ | (7,709 | ) | $ | (43,025 | ) | $ | 63,061 | $ | (5,483 | ) | $ | 6,844 | |||||||||||||
Condensed Consolidating Statement of Operations (in thousands) | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Consolidated | ||||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 462,035 | $ | 31,488 | $ | 493,523 | ||||||||||||||||
Operating costs and expenses | 6,504 | 112 | 281,541 | 46,508 | 334,665 | |||||||||||||||||||||
Income (loss) from operations | (6,504 | ) | (112 | ) | 180,494 | (15,020 | ) | 158,858 | ||||||||||||||||||
Other income (expense) | (10,687 | ) | (245,782 | ) | (1,647 | ) | 3,883 | (254,233 | ) | |||||||||||||||||
Income (loss) before income taxes | (17,191 | ) | (245,894 | ) | 178,847 | (11,137 | ) | (95,375 | ) | |||||||||||||||||
Income tax provision (benefit) | — | 138 | 15,041 | 1,587 | 16,766 | |||||||||||||||||||||
Net income (loss) | $ | (17,191 | ) | $ | (246,032 | ) | $ | 163,806 | $ | (12,724 | ) | $ | (112,141 | ) | ||||||||||||
Condensed Consolidating Statement of Cash Flows | ' | |||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows (in thousands) | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Consolidated | ||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (32,916 | ) | $ | (102,868 | ) | $ | 301,548 | $ | 9,218 | $ | 174,982 | ||||||||||||||
Net cash provided by (used in) investing activities | — | (217 | ) | (11,782 | ) | 1,112 | (10,887 | ) | ||||||||||||||||||
Net cash provided by (used in) financing activities | 32,791 | 136,992 | (294,842 | ) | (12,407 | ) | (137,466 | ) | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (125 | ) | 33,907 | (5,076 | ) | (2,077 | ) | 26,629 | ||||||||||||||||||
Cash and cash equivalents—beginning of period | 3,489 | 5,468 | 37,488 | 8,241 | 54,686 | |||||||||||||||||||||
Cash and cash equivalents—end of period | $ | 3,364 | $ | 39,375 | $ | 32,412 | $ | 6,164 | $ | 81,315 | ||||||||||||||||
Condensed Consolidating Statement of Cash Flows (in thousands) | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Parent | OGIL | Subsidiary Guarantors | Non-Guarantors | Consolidated | ||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (27,152 | ) | $ | (254,448 | ) | $ | 206,052 | $ | 9,947 | $ | (65,601 | ) | |||||||||||||
Net cash provided by (used in) investing activities | — | (658 | ) | (473,474 | ) | (74,487 | ) | (548,619 | ) | |||||||||||||||||
Net cash provided by (used in) financing activities | 39,067 | (158,544 | ) | 235,381 | 63,319 | 179,223 | ||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 11,915 | (413,650 | ) | (32,041 | ) | (1,221 | ) | (434,997 | ) | |||||||||||||||||
Cash and cash equivalents—beginning of period | 15,471 | 422,467 | 57,943 | 6,845 | 502,726 | |||||||||||||||||||||
Cash and cash equivalents—end of period | $ | 27,386 | $ | 8,817 | $ | 25,902 | $ | 5,624 | $ | 67,729 | ||||||||||||||||
Organization_and_Recent_Events1
Organization and Recent Events - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2013 | Sep. 30, 2014 | Oct. 31, 2012 | Aug. 31, 2012 | Jun. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2012 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
7.125% Senior Notes | 7.125% Senior Notes | 7.5% Senior Notes | 7.5% Senior Notes | 7.875% Senior Convertible Notes | 2017 Term Loan | 2017 Term Loan | 2017 Term Loan | Subsequent Event | Subsequent Event | Subsequent Event | Ultra-Premium Jackup Rigs | Ultra-Deepwater Drillships | ||
7.125% Senior Notes | 7.5% Senior Notes | 7.875% Senior Convertible Notes | Rigs | Drillship | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of incorporation | 14-Nov-07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of fleet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 3 |
Operating fleet | 'Our global fleet is currently located in India, Southeast Asia and West Africa. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, repurchased | ' | $40 | ' | $7 | ' | ' | ' | ' | ' | $5 | $12.40 | $13.40 | ' | ' |
Interest rate on notes | ' | 7.13% | 7.13% | 7.50% | 7.50% | 7.88% | ' | ' | ' | ' | ' | 7.88% | ' | ' |
Debt instrument, extinguishment amount | ' | ' | ' | ' | ' | ' | 42 | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | $775 | ' | $1,150 | $56.50 | ' | $500 | $500 | ' | ' | ' | ' | ' |
Basis_of_Presentation_and_Sign3
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 31, 2014 | Nov. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
5.5% Convertible Notes | 5.5% Convertible Notes | 7.125% Senior Notes | 7.125% Senior Notes | 7.125% Senior Notes | 7.5% Senior Notes | 7.5% Senior Notes | 7.5% Senior Notes | 7.875% Convertible Notes | 7.875% Convertible Notes | Sigma Drilling Ltd | Sigma Drilling Ltd | Drilling Equipment | Drilling Equipment | Office Equipment | Office Equipment | ||||||
Level 1 | Level 1 | Level 1 | Level 1 | Minimum | Maximum | Minimum | Maximum | ||||||||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, useful lives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '35 years | '3 years | '7 years |
Capitalized interest and amortization cost | $1,300,000 | $9,500,000 | $3,800,000 | $15,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investments ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41.90% | ' | ' | ' | ' |
Distribution made to shareholders | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,500,000 | ' | ' | ' | ' | ' |
Return of investment in joint venture | ' | ' | 23,250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,250,000 | ' | ' | ' | ' | ' |
Share-based compensation expense | 2,300,000 | 1,800,000 | 6,500,000 | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of notes outstanding | ' | ' | ' | ' | ' | ' | 86,000,000 | ' | ' | 649,500,000 | ' | ' | 1,100,000,000 | ' | 54,900,000 | ' | ' | ' | ' | ' | ' |
Interest rate on notes | ' | ' | ' | ' | ' | 5.50% | ' | 7.13% | 7.13% | ' | 7.50% | 7.50% | ' | 7.88% | ' | ' | ' | ' | ' | ' | ' |
Outstanding derivative instruments | $0 | ' | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change_in_Investment_in_Joint_
Change in Investment in Joint Venture (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Equity Method Investments And Joint Ventures [Abstract] | ' | ' |
Beginning Balance | $32,482 | ' |
Return of investment | -23,250 | ' |
Write-off of deferred construction supervision revenue | -7,344 | ' |
Vantage share of net losses | -317 | -345 |
Ending Balance | $1,571 | $32,650 |
Reconciliation_of_Number_of_Sh
Reconciliation of Number of Shares Used for Basic and Diluted Earnings (Loss) Per Share Computations (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings (loss) per share | ' | ' | ' | ' |
Weighted average ordinary shares outstanding for basic EPS | 306,761 | 302,682 | 306,046 | 301,962 |
Options and warrants | 0 | 0 | 0 | 0 |
Convertible notes | 0 | 0 | 0 | 0 |
Adjusted weighted average ordinary shares outstanding for diluted EPS | 306,761 | 302,682 | 306,046 | 301,962 |
Recovered_Sheet1
Reconciliation Of Number of Shares Excluded From Diluted EPS Computations (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Future potentially dilutive ordinary shares excluded from diluted EPS | 79,658 | 81,528 | 79,658 | 81,528 |
Options and Warrants | ' | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Future potentially dilutive ordinary shares excluded from diluted EPS | 2,097 | 2,469 | 2,097 | 2,469 |
Convertible Notes | ' | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Future potentially dilutive ordinary shares excluded from diluted EPS | 77,561 | 79,059 | 77,561 | 79,059 |
Transactions_with_F3_Capital_a1
Transactions with F3 Capital and Affiliates - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Jun. 20, 2014 | Sep. 30, 2014 |
7.875% Convertible Notes | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Interest rate on notes | ' | 7.88% |
F3 Capital | Pending Litigation | Principal and Interest | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Actual damages recoverable, maximum amount | ' | 63 |
F3 Capital | Pending Litigation | Minimum | Penalties and Additional Interest | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Actual damages recoverable, maximum amount | ' | 35 |
F3 Capital | F3 Capital Note | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Interest rate on notes | ' | 5.00% |
Outstanding interest amount of F3 Capital Note | ' | 10.00% |
Promissory note maturity period | ' | 'January 2018 |
Additional aggregate principal amount of convertible notes | ' | 6.5 |
Discounted present value of weighted average cost of capital at the time of issue | ' | 27.8 |
F3 Capital | F3 Capital Note | Level 3 Measurement | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Current discounted present value of weighted average cost of capital | ' | 33.7 |
Nob Su Counter Claim | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Actual damages recoverable, maximum amount | 8,000 | ' |
Loss contingency, lawsuit filing date | ' | 'June 20, 2014 |
Drillship Construction Supervision Agreement | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Outstanding constructions supervision fee | ' | 3 |
Construction_Supervision_and_O1
Construction Supervision and Operations Management Agreements - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | |||||||
Nov. 30, 2012 | Sep. 30, 2014 | 31-May-14 | Dec. 31, 2013 | Sep. 30, 2013 | Oct. 31, 2012 | Aug. 31, 2014 | 31-May-14 | Nov. 30, 2012 | Oct. 31, 2012 | |
Drillship | Orders | Sigma Drilling Ltd | Sigma Drilling Ltd | Sigma Drilling Ltd | Mexico Contractor | |||||
Rigs | ||||||||||
Construction Contracts [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of ultra-deepwater drillships for supervise and manage construction | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Investment in joint venture | ' | $1,571,000 | ' | $32,482,000 | $32,650,000 | ' | ' | ' | $31,000,000 | ' |
Equity method investments ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | 41.90% | ' |
Fixed monthly management fee receiving period during construction | '36 months | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Termination fee | ' | 1,700,000 | 4,000,000 | ' | ' | ' | ' | 3,000,000 | ' | 2,750,000 |
Distribution made to shareholders | ' | ' | ' | ' | ' | ' | 55,500,000 | ' | ' | ' |
Return of investment in joint venture | ' | $23,250,000 | ' | ' | ' | ' | $23,250,000 | ' | ' | ' |
Number of jackup rigs | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' |
LongTerm_Debt_Detail
Long-Term Debt (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | $2,785,470 | $2,915,550 | ' |
Less current maturities of long-term debt and revolving credit facility | 53,500 | 63,500 | ' |
Long-term debt | 2,731,970 | 2,852,050 | 2,862,507 |
Revolving credit agreement | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | ' | 10,000 | ' |
7.5% Senior Notes | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | 1,143,000 | 1,150,000 | ' |
7.125% Senior Notes | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | 734,973 | 775,000 | ' |
5.50% Convertible Notes | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | 92,999 | 90,077 | ' |
7.875% Convertible Notes | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | 54,804 | 54,370 | ' |
2017 Term Loan | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | 378,084 | 455,391 | ' |
2019 Term Loan | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | 340,857 | 342,814 | ' |
F3 Capital Note | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | $40,753 | $37,898 | ' |
LongTerm_Debt_Parenthetical_De
Long-Term Debt (Parenthetical) (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Jul. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Oct. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
5.50% Convertible Notes | 5.50% Convertible Notes | 5.50% Convertible Notes | 7.875% Convertible Notes | 7.875% Convertible Notes | 2017 Term Loan | 2017 Term Loan | 2017 Term Loan | 2019 Term Loan | 2019 Term Loan | 2019 Term Loan | F3 Capital Note | F3 Capital Note | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | $100,000,000 | ' | ' | $500,000,000 | ' | $500,000,000 | $350,000,000 | ' | $350,000,000 | ' | ' |
Discount on senior secured notes | $7,001,000 | $9,923,000 | ' | $1,696,000 | $2,130,000 | $4,916,000 | $7,109,000 | ' | $3,893,000 | $4,561,000 | ' | $12,747,000 | $15,602,000 |
Debt_75_Senior_Notes_and_500_M
Debt - 7.5% Senior Notes and $500 Million 2017 Term Loan - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2014 | Sep. 30, 2014 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Nov. 30, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2012 | Oct. 31, 2012 | Sep. 30, 2014 | Mar. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | |
LIBOR Plus | Base Rate | 2017 Term Loan | 2017 Term Loan | 2017 Term Loan | 2017 Term Loan | 2017 Term Loan | 2017 Term Loan | 2017 Term Loan | 2017 Term Loan | 2017 Term Loan Amended | 2017 Term Loan Amended | 2017 Term Loan Amended | 2017 Term Loan Amended | 7.5% Senior Notes | 7.5% Senior Notes | O G I L Existing Debt | O G I L Existing Debt | O G I L Existing Debt | ||||
LIBOR Plus | LIBOR floor | Base Rate | First Year | Subsequent Years | LIBOR Plus | LIBOR floor | Base Rate | 2017 Term Loan 7.5 % Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | $500,000,000 | $500,000,000 | ' | ' | ' | ' | ' | $475,000,000 | ' | ' | ' | $1,150,000,000 | ' | ' | ' | ' |
Debt instrument, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | 7.50% | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Nov-19 | ' | ' | ' | ' |
Debt instrument, interest rate term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Interest on outstanding 7.5% Senior Notes is payable semi-annually in arrears, commencing on May 1, 2013. Interest is computed on the basis of a 360-day year comprised of twelve 30-day months. | ' | ' | ' |
Debt instrument, issuance date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-May-13 | ' | ' | ' | ' |
Debt instrument, issuance rate of the face value | ' | ' | ' | ' | ' | ' | ' | 98.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest in term loan above LIBOR | ' | ' | ' | 3.50% | 2.50% | ' | ' | ' | 5.00% | ' | 4.00% | ' | ' | ' | 4.00% | ' | 3.00% | ' | ' | ' | ' | ' |
Libor floor rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' |
Percentage of debt maturities payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, payment terms | ' | ' | ' | ' | ' | ' | 'The 2017 Term Loan has scheduled debt maturities, payable quarterly, of 5% in the first year and 10% in subsequent years with final maturity on October 25, 2017. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceed from issuance of long term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000,000 |
Debt instrument, extinguishment amount | ' | ' | ' | ' | ' | 42,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | 1,000,000,000 | ' |
Non-cash charge on the written-off deferred financing cost | ' | ' | ' | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument repurchased, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' |
Gain (loss) on debt extinguishment | $1,051,000 | ($462,000) | ($98,327,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($74,000) | ($92,300,000) | ' | ' |
Debt_7125_Senior_Notes_and_350
Debt - 7.125% Senior Notes and $350 Million 2019 Term Loan - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2012 | Mar. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | 31-May-14 | Feb. 28, 2014 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Oct. 31, 2012 | |
LIBOR Plus | 2019 Term Loan | 2019 Term Loan | 2019 Term Loan | 2019 Term Loan | 2019 Term Loan | 7.125% Senior Notes | 7.125% Senior Notes | 7.125% Senior Notes | 7.125% Senior Notes | 7.125% Senior Notes | 2019 Tem Loan 7.125 % Senior Notes | O G I L Existing Debt | O G I L Existing Debt | ||||
LIBOR Plus | LIBOR floor | ||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | $350,000,000 | ' | $350,000,000 | ' | ' | ' | ' | $775,000,000 | ' | ' | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | ' | 28-Mar-19 | ' | ' | ' | ' | ' | ' | 1-Apr-23 | ' | ' | ' | ' | ' |
Debt instrument, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.13% | 7.13% | 7.13% | ' | ' | ' |
Debt instrument, interest rate term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Payable semi-annually in arrears, commencing on October 1, 2013. | ' | ' | ' |
Debt instrument, issuance rate of the face value | ' | ' | ' | ' | 98.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest in term loan above LIBOR | ' | ' | ' | 3.50% | ' | ' | ' | 4.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Libor floor rate | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of debt maturities payable | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceed from issuance of long term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' | ' |
Debt instrument, extinguishment amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | 1,000,000,000 |
Amount paid to retire debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' |
Gain (loss) on debt extinguishment | 1,051,000 | -462,000 | -98,327,000 | ' | ' | ' | ' | ' | ' | -11,000 | -106,000 | ' | -977,000 | ' | ' | -92,300,000 | ' |
Accrued and unpaid Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,200,000 | ' |
Debt instrument repurchased, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,500,000 | $6,000,000 | ' | $32,500,000 | $32,500,000 | ' | ' | ' |
Debt_550_Senior_Convertible_No
Debt - 5.50% Senior Convertible Notes - Additional Information (Detail) (5.50% Convertible Notes, USD $) | 1 Months Ended | 9 Months Ended |
Jul. 31, 2013 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, face amount | $100,000,000 | ' |
Debt instrument, maturity date | 15-Jul-43 | ' |
Debt instrument, issuance date | 15-Jan-14 | ' |
Debt instrument, interest rate | 5.50% | ' |
Proceed from issuance of long term debt | 96,500,000 | ' |
Conversion rate of ordinary shares | ' | 418.6289 |
Conversion rate of amount of notes | ' | 1,000 |
Initial conversion price | ' | $2.39 |
Long-term Debt, Fair Value | 88,300,000 | ' |
Percent of applicable conversion price required for redemption | ' | 150.00% |
Debt Instrument, Redemption Price, Percentage | ' | 100.00% |
Debt instrument repurchase terms | ' | 'cash at a price equal to 100% of the principal amount of the 5.50% Convertible Notes being repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date |
Debt instrument repurchase initial date | ' | 15-Jul-16 |
Debt instrument repurchase subsequent date | ' | 15-Jul-18 |
Redemption Period, One | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Policy for redemption | ' | 'At least 20 trading days during any 30 consecutive trading day period ending within five trading days prior to the notice of redemption. |
Debt Instrument, redemption, start date | ' | 15-Jul-16 |
Debt Instrument, redemption, end date | ' | 15-Jul-18 |
Redemption Period, One and Two | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Policy for redemption | ' | 'equal to 100% of the principal amount of the 5.50% Convertible Notes being redeemed, plus accrued and unpaid interest to, but excluding, the redemption date |
Redemption Period, Two | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, redemption, start date | ' | 15-Jul-16 |
Cobalt Explorer Construction Contract | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Payment of construction contract charges | $59,500,000 | ' |
Debt_7875_Senior_Convertible_N
Debt - 7.875% Senior Convertible Notes - Additional Information (Detail) (7.875% Senior Convertible Notes, USD $) | 1 Months Ended | 9 Months Ended |
Aug. 31, 2012 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, face amount | $56,500,000 | ' |
Debt instrument, maturity date | 1-Sep-42 | ' |
Debt instrument, interest rate term | ' | 'Payable semiannually, in arrears, on March 1 and September 1 of each year, commencing on March?1, 2013 |
Debt instrument, interest rate | 7.88% | ' |
Proceed from issuance of long term debt | 48,300,000 | ' |
Conversion rate of ordinary shares | ' | 476.1905 |
Conversion rate of amount of notes | ' | 1,000 |
Initial conversion price | ' | $2.10 |
Long-term Debt, Fair Value | 53,600,000 | ' |
Redemption on or after September 1, 2015 and before September 1, 2017 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Percent of applicable conversion price required for redemption | ' | 125.00% |
Redemption on or before September 1, 2015 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Percent of applicable conversion price required for redemption | ' | 150.00% |
Redemption Period, Two | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, redemption, start date | ' | 1-Sep-15 |
Debt Instrument, redemption, end date | ' | 1-Sep-17 |
Redemption Period, One | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt Instrument, redemption, end date | ' | 1-Sep-15 |
Policy for redemption | ' | 'At least 20 trading days during any 30 consecutive trading day period. |
Redemption Period, One and Two | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Policy for redemption | ' | 'The redemption purchase price is equal to 100% of the principal amount of the 5.50% Convertible Notes being redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. |
F3 Capital Note | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, face amount | $6,500,000 | ' |
Debt_Credit_Agreement_Addition
Debt - Credit Agreement - Additional Information (Detail) (USD $) | 1 Months Ended | 1 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2012 | Mar. 31, 2013 | Jun. 30, 2012 | Mar. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2012 |
2019 Tem Loan 7.125 % Senior Notes | Revolving credit agreement | Letter of Credit | Standby Letters of Credit | Base Rate | LIBOR Plus | ||
2019 Tem Loan 7.125 % Senior Notes | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Revolving credit, maximum borrowing capacity | ' | $200 | $25 | $32 | ' | ' | ' |
Advances and letter of credit maturity date | 25-Apr-17 | ' | ' | ' | ' | ' | ' |
Interest in term loan above LIBOR | ' | ' | ' | ' | ' | 2.50% | 3.50% |
Line of Credit Facility, Amount Outstanding | ' | ' | ' | ' | $21.50 | ' | ' |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Long Term Incentive Plan | Long Term Incentive Plan | Long Term Incentive Plan | Long Term Incentive Plan | Long Term Incentive Plan | Long Term Incentive Plan | Long Term Incentive Plan | Long Term Incentive Plan | Long Term Incentive Plan | Long Term Incentive Plan | |||
Director | Restricted Shares | Restricted Shares | Performance Share | Performance Share | Restricted Share Awards And Performance Unit | Maximum | Maximum | Minimum | ||||
Director | Additional Shares | Performance Share | Performance Share | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred shares, shares authorized | 10,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred shares, par value | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred shares, shares issued | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred shares, shares outstanding | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ordinary shares, par value | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ordinary shares authorixed under Long-term incentive plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' |
Restricted shares granted | ' | ' | ' | ' | 4,321,289 | ' | 1,978,542 | ' | ' | ' | ' | ' |
Time-vested restricted share awards | ' | ' | ' | ' | '4 years | '1 year | '3 years | ' | ' | ' | ' | ' |
Number of shares of target level | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | 0 |
Share compensation award date value vested | ' | ' | ' | ' | ' | ' | ' | ' | $11,700,000 | ' | ' | ' |
Average share price | ' | ' | ' | ' | $1.86 | ' | ' | ' | ' | ' | ' | ' |
Performance unit target conversion ratio | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' |
Shares vested | ' | ' | ' | ' | 2,836,634 | ' | 668,550 | 96,176 | ' | ' | ' | ' |
Stock Issued During Period, Shares, Other | ' | ' | ' | 125,971 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period, value, other | ' | ' | ' | $230,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Directors in lieu of cash for directors’ fees, description | ' | ' | 'Additionally, in the nine months ended September 30 2014, we issued 125,971 shares, valued at approximately $230,000, to directors in lieu of cash for directors’ fees. | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (Minimum) | 9 Months Ended |
Sep. 30, 2014 | |
Minimum | ' |
Income Tax Contingency [Line Items] | ' |
Open tax year | '2008 |
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' |
Prepaid insurance | $1,914 | $13,178 |
Sales tax receivable | 4,822 | 3,621 |
Income tax receivable | 2,077 | 962 |
Current deferred tax asset | 1,931 | 2,139 |
Other receivables | 1,093 | 278 |
Deferred mobilization costs | ' | 665 |
Other | 3,984 | 2,874 |
Prepaid expenses and other current assets | $15,821 | $23,717 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Property Plant And Equipment [Line Items] | ' | ' | ' |
Property and equipment | $3,509,267 | $3,472,407 | ' |
Accumulated depreciation | -376,280 | -281,759 | ' |
Property and equipment, net | 3,132,987 | 3,190,648 | 3,207,201 |
Marine Services Equipment | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' |
Property and equipment | 3,382,927 | 3,376,631 | ' |
Assets under Construction | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' |
Property and equipment | 104,911 | 75,993 | ' |
Office and Technology Equipment | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' |
Property and equipment | 19,449 | 17,750 | ' |
Leasehold Improvements | ' | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' | ' |
Property and equipment | $1,980 | $2,033 | ' |
Other_Assets_Detail
Other Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ' | ' |
Deferred financing costs, net | $45,861 | $56,145 | ' |
Performance bond collateral | 6,600 | 24,882 | ' |
Deferred certification costs | 7,670 | 6,494 | ' |
Deferred agent fees | 6,388 | 7,160 | ' |
Deferred mobilization costs | 15,144 | 4,066 | ' |
Deferred income taxes | 11 | ' | ' |
Deposits | 1,409 | 1,280 | ' |
Total other assets | $83,083 | $100,027 | $96,010 |
Accrued_Liabilities_Detail
Accrued Liabilities (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ' | ' |
Interest | $76,750 | $43,064 |
Compensation | 21,067 | 20,045 |
Insurance premiums | ' | 10,136 |
Unearned income | ' | 615 |
Deferred revenue | ' | 8,928 |
Property, service and franchise taxes | ' | 1,610 |
Income taxes payable | 27,145 | 7,577 |
Other | 6,206 | 4,407 |
Accrued liabilities | $131,168 | $96,382 |
Other_Longterm_Liabilities_Det
Other Long-term Liabilities (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Accounts Payable And Accrued Liabilities Noncurrent [Abstract] | ' | ' | ' |
Deferred revenue | $75,034 | $34,385 | ' |
Deferred income taxes | 2,409 | 2,801 | ' |
Other non-current liabilities | 10,523 | 8,454 | ' |
Other long-term liabilities Total | $87,966 | $45,640 | $41,548 |
Business_Segment_and_Significa1
Business Segment and Significant Customer Information - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Customer | Customer | Segment | Customer | |
Customer | ||||
Entity Wide Revenue Major Customer [Line Items] | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 1 | ' |
Number of customers accounted for revenues | 4 | 3 | 4 | 3 |
Sales | Customer One | ' | ' | ' | ' |
Entity Wide Revenue Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of revenue from outside customers | 32.00% | 31.00% | 23.00% | 32.00% |
Sales | Customer Two | ' | ' | ' | ' |
Entity Wide Revenue Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of revenue from outside customers | 24.00% | 30.00% | 21.00% | 26.00% |
Sales | Customer Three | ' | ' | ' | ' |
Entity Wide Revenue Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of revenue from outside customers | 18.00% | 10.00% | 20.00% | 11.00% |
Sales | Customer Four | ' | ' | ' | ' |
Entity Wide Revenue Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of revenue from outside customers | 11.00% | ' | 15.00% | ' |
Supplemental_Condensed_Consoli2
Supplemental Condensed Consolidating Financial Information - Additional Information (Detail) | Sep. 30, 2014 | Mar. 31, 2013 | Sep. 30, 2014 | Oct. 31, 2012 |
7.125% Senior Notes | 7.125% Senior Notes | 7.5% Senior Notes | 7.5% Senior Notes | |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Interest rate on notes | 7.13% | 7.13% | 7.50% | 7.50% |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheet (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Condensed Balance Sheet Statements Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $81,315 | $54,686 | $67,729 | $502,726 |
Other current assets | 304,878 | ' | 214,186 | ' |
Total current assets | 386,193 | 304,986 | 281,915 | ' |
Property and equipment, net | 3,132,987 | 3,190,648 | 3,207,201 | ' |
Investment in joint venture | 1,571 | 32,482 | 32,650 | ' |
Other assets | 83,083 | 100,027 | 96,010 | ' |
Total assets | 3,603,834 | 3,628,143 | 3,617,776 | ' |
Accounts payable and accrued liabilities | 189,016 | ' | 176,714 | ' |
Current maturities of long-term debt | 53,500 | ' | 63,500 | ' |
Total current liabilities | 242,516 | 224,997 | 240,214 | ' |
Long-term debt | 2,731,970 | 2,852,050 | 2,862,507 | ' |
Other long-term liabilities | 87,966 | 45,640 | 41,548 | ' |
Shareholders’ equity (deficit) | 541,382 | 505,456 | 473,507 | ' |
Total liabilities and shareholders’ equity | 3,603,834 | 3,628,143 | 3,617,776 | ' |
Consolidation, Eliminations | ' | ' | ' | ' |
Condensed Balance Sheet Statements Captions [Line Items] | ' | ' | ' | ' |
Property and equipment, net | 185,820 | ' | ' | ' |
Investment in and advances to subsidiaries | -3,143,193 | ' | -3,150,610 | ' |
Total assets | -2,957,373 | ' | -3,150,610 | ' |
Shareholders’ equity (deficit) | -2,957,373 | ' | -3,150,610 | ' |
Total liabilities and shareholders’ equity | -2,957,373 | ' | -3,150,610 | ' |
Parent | ' | ' | ' | ' |
Condensed Balance Sheet Statements Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 3,364 | 3,489 | 27,386 | 15,471 |
Other current assets | 615 | ' | 443 | ' |
Total current assets | 3,979 | ' | 27,829 | ' |
Investment in and advances to subsidiaries | 653,679 | ' | 654,624 | ' |
Other assets | 9,546 | ' | 12,112 | ' |
Total assets | 667,204 | ' | 694,565 | ' |
Accounts payable and accrued liabilities | 19,004 | ' | 15,732 | ' |
Intercompany (receivable) payable | -296,590 | ' | -285,369 | ' |
Total current liabilities | -277,586 | ' | -269,637 | ' |
Long-term debt | 188,556 | ' | 180,252 | ' |
Shareholders’ equity (deficit) | 756,234 | ' | 783,950 | ' |
Total liabilities and shareholders’ equity | 667,204 | ' | 694,565 | ' |
OGIL | ' | ' | ' | ' |
Condensed Balance Sheet Statements Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 39,375 | 5,468 | 8,817 | 422,467 |
Other current assets | 73 | ' | 2,125 | ' |
Total current assets | 39,448 | ' | 10,942 | ' |
Property and equipment, net | 1,121 | ' | 1,227 | ' |
Investment in and advances to subsidiaries | 1,433,914 | ' | 1,437,787 | ' |
Other assets | 42,702 | ' | 53,224 | ' |
Total assets | 1,517,185 | ' | 1,503,180 | ' |
Accounts payable and accrued liabilities | 62,048 | ' | 64,159 | ' |
Current maturities of long-term debt | 53,500 | ' | 63,500 | ' |
Intercompany (receivable) payable | -765,545 | ' | -1,131,153 | ' |
Total current liabilities | -649,997 | ' | -1,003,494 | ' |
Long-term debt | 2,543,414 | ' | 2,682,255 | ' |
Shareholders’ equity (deficit) | -376,232 | ' | -175,581 | ' |
Total liabilities and shareholders’ equity | 1,517,185 | ' | 1,503,180 | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Balance Sheet Statements Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 32,412 | 37,488 | 25,902 | 57,943 |
Other current assets | 289,807 | ' | 198,799 | ' |
Total current assets | 322,219 | ' | 224,701 | ' |
Property and equipment, net | 2,836,674 | ' | 3,119,328 | ' |
Investment in and advances to subsidiaries | 1,053,496 | ' | 1,056,395 | ' |
Other assets | 26,158 | ' | 26,938 | ' |
Total assets | 4,238,547 | ' | 4,427,362 | ' |
Accounts payable and accrued liabilities | 83,325 | ' | 67,992 | ' |
Intercompany (receivable) payable | 990,031 | ' | 1,335,985 | ' |
Total current liabilities | 1,073,356 | ' | 1,403,977 | ' |
Other long-term liabilities | 79,503 | ' | 34,756 | ' |
Shareholders’ equity (deficit) | 3,085,688 | ' | 2,988,629 | ' |
Total liabilities and shareholders’ equity | 4,238,547 | ' | 4,427,362 | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Balance Sheet Statements Captions [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 6,164 | 8,241 | 5,624 | 6,845 |
Other current assets | 14,383 | ' | 12,819 | ' |
Total current assets | 20,547 | ' | 18,443 | ' |
Property and equipment, net | 109,372 | ' | 86,646 | ' |
Investment in and advances to subsidiaries | 2,104 | ' | 1,804 | ' |
Investment in joint venture | 1,571 | ' | 32,650 | ' |
Other assets | 4,677 | ' | 3,736 | ' |
Total assets | 138,271 | ' | 143,279 | ' |
Accounts payable and accrued liabilities | 24,639 | ' | 28,831 | ' |
Intercompany (receivable) payable | 72,104 | ' | 80,537 | ' |
Total current liabilities | 96,743 | ' | 109,368 | ' |
Other long-term liabilities | 8,463 | ' | 6,792 | ' |
Shareholders’ equity (deficit) | 33,065 | ' | 27,119 | ' |
Total liabilities and shareholders’ equity | $138,271 | ' | $143,279 | ' |
Condensed_Consolidating_Statem
Condensed Consolidating Statement of Operations (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Income Statements Captions [Line Items] | ' | ' | ' | ' |
Revenues | $207,518 | $175,885 | $659,701 | $493,523 |
Operating costs and expenses | 152,890 | 117,909 | 432,350 | 334,665 |
Income from operations | 54,628 | 57,976 | 227,351 | 158,858 |
Other, net | -51,935 | -47,048 | -161,957 | -254,233 |
Income (loss) before income taxes | 2,693 | 10,928 | 65,394 | -95,375 |
Income tax provision (benefit) | 8,309 | 4,084 | 36,008 | 16,766 |
Net income (loss) | -5,616 | 6,844 | 29,386 | -112,141 |
Parent | ' | ' | ' | ' |
Condensed Income Statements Captions [Line Items] | ' | ' | ' | ' |
Operating costs and expenses | 2,859 | 3,263 | 6,590 | 6,504 |
Income from operations | -2,859 | -3,263 | -6,590 | -6,504 |
Other, net | -4,508 | -4,446 | -13,678 | -10,687 |
Income (loss) before income taxes | -7,367 | -7,709 | -20,268 | -17,191 |
Net income (loss) | -7,367 | -7,709 | -20,268 | -17,191 |
OGIL | ' | ' | ' | ' |
Condensed Income Statements Captions [Line Items] | ' | ' | ' | ' |
Operating costs and expenses | 165 | 50 | 475 | 112 |
Income from operations | -165 | -50 | -475 | -112 |
Other, net | -47,812 | -42,916 | -148,924 | -245,782 |
Income (loss) before income taxes | -47,977 | -42,966 | -149,399 | -245,894 |
Income tax provision (benefit) | ' | 59 | ' | 138 |
Net income (loss) | -47,977 | -43,025 | -149,399 | -246,032 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Income Statements Captions [Line Items] | ' | ' | ' | ' |
Revenues | 203,271 | 163,506 | 631,054 | 462,035 |
Operating costs and expenses | 139,538 | 97,701 | 384,450 | 281,541 |
Income from operations | 63,733 | 65,805 | 246,604 | 180,494 |
Other, net | 393 | 199 | -188,113 | -1,647 |
Income (loss) before income taxes | 64,126 | 66,004 | 58,491 | 178,847 |
Income tax provision (benefit) | 7,563 | 2,943 | 33,800 | 15,041 |
Net income (loss) | 56,563 | 63,061 | 24,691 | 163,806 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Income Statements Captions [Line Items] | ' | ' | ' | ' |
Revenues | 4,247 | 12,379 | 28,647 | 31,488 |
Operating costs and expenses | 10,328 | 16,895 | 40,835 | 46,508 |
Income from operations | -6,081 | -4,516 | -12,188 | -15,020 |
Other, net | -8 | 115 | 188,758 | 3,883 |
Income (loss) before income taxes | -6,089 | -4,401 | 176,570 | -11,137 |
Income tax provision (benefit) | 746 | 1,082 | 2,208 | 1,587 |
Net income (loss) | ($6,835) | ($5,483) | $174,362 | ($12,724) |
Condensed_Consolidating_Statem1
Condensed Consolidating Statement of Cash Flow (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Cash Flow Statements Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | $174,982 | ($65,601) |
Net cash provided by (used in) investing activities | -10,887 | -548,619 |
Net cash provided by (used in) financing activities | -137,466 | 179,223 |
Net increase (decrease) in cash and cash equivalents | 26,629 | -434,997 |
Cash and cash equivalents—beginning of period | 54,686 | 502,726 |
Cash and cash equivalents—end of period | 81,315 | 67,729 |
Parent | ' | ' |
Condensed Cash Flow Statements Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | -32,916 | -27,152 |
Net cash provided by (used in) financing activities | 32,791 | 39,067 |
Net increase (decrease) in cash and cash equivalents | -125 | 11,915 |
Cash and cash equivalents—beginning of period | 3,489 | 15,471 |
Cash and cash equivalents—end of period | 3,364 | 27,386 |
OGIL | ' | ' |
Condensed Cash Flow Statements Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | -102,868 | -254,448 |
Net cash provided by (used in) investing activities | -217 | -658 |
Net cash provided by (used in) financing activities | 136,992 | -158,544 |
Net increase (decrease) in cash and cash equivalents | 33,907 | -413,650 |
Cash and cash equivalents—beginning of period | 5,468 | 422,467 |
Cash and cash equivalents—end of period | 39,375 | 8,817 |
Guarantor Subsidiaries | ' | ' |
Condensed Cash Flow Statements Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | 301,548 | 206,052 |
Net cash provided by (used in) investing activities | -11,782 | -473,474 |
Net cash provided by (used in) financing activities | -294,842 | 235,381 |
Net increase (decrease) in cash and cash equivalents | -5,076 | -32,041 |
Cash and cash equivalents—beginning of period | 37,488 | 57,943 |
Cash and cash equivalents—end of period | 32,412 | 25,902 |
Non-Guarantor Subsidiaries | ' | ' |
Condensed Cash Flow Statements Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | 9,218 | 9,947 |
Net cash provided by (used in) investing activities | 1,112 | -74,487 |
Net cash provided by (used in) financing activities | -12,407 | 63,319 |
Net increase (decrease) in cash and cash equivalents | -2,077 | -1,221 |
Cash and cash equivalents—beginning of period | 8,241 | 6,845 |
Cash and cash equivalents—end of period | $6,164 | $5,624 |