Ocean Rig UDW 6-K 10 Aug 15 2015 Q2 Current report (foreign) Financial data

Document and Entity Information

Document and Entity Information - Jun. 30, 2015 - shares	Total
Document And Entity Information [Abstract]
Document Type	6-K
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Entity Registrant Name	Ocean Rig UDW Inc.
Entity Central Index Key	1,447,382
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Trading Symbol	orig
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Well Known Seasoned Issuer	Yes
Entity Common Stock Shares Outstanding	160,888,606
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 821,662	$ 528,933
Restricted cash	1,892	2,564
Trade accounts receivable, net of allowance for doubtful receivables of $2,825 and $43,953 at December 31, 2014 and June 30, 2015, respectively	393,135	345,187
Due from related parties, current (Note 3)	78,307	0
Other current assets (Note 4)	104,667	101,508
Total current assets	1,399,663	978,192
FIXED ASSETS, NET:
Advances for drillships under construction and related costs (Note 5)	363,506	622,507
Drilling rigs, drillships, machinery and equipment, net (Note 6)	6,853,508	6,207,633
Total fixed assets, net	7,217,014	6,830,140
OTHER NON-CURRENT ASSETS:
Restricted cash (Note 8)	10,000	0
Financial instruments (Note 9)	4,660	10,101
Due from a related party, non-current (Note 3)	0	117,219
Other non-current assets (Note 7)	58,177	105,969
Total non-current assets, net	72,837	233,289
Total assets	8,689,514	8,041,621
CURRENT LIABILITIES:
Current portion of long-term debt, net of deferred financing costs (Note 8)	56,982	19,858
Due to related parties (Note 3)	0	11,287
Accounts payable and other current liabilities	78,074	72,030
Accrued liabilities	149,910	175,058
Deferred revenue	147,892	121,579
Financial instruments (Note 9)	15,284	17,881
Total current liabilities	448,142	417,693
NON-CURRENT LIABILITIES
Long term debt, net of current portion and deferred financing costs (Note 8)	4,754,669	4,352,592
Financial instruments (Note 9)	5,284	8,617
Deferred revenue	79,768	81,359
Other non-current liabilities	12,727	15,084
Total non-current liabilities	$ 4,852,448	$ 4,457,652
COMMITMENTS AND CONTINGENCIES (Note 14)
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value; 500,000,000 shares authorized at December 31, 2014 and June 30, 2015, nil issued and outstanding at December 31, 2014 and June 30, 2015, respectively	$ 0	$ 0
Common stock, $0.01 par value; 1,000,000,000 shares authorized, at December 31, 2014 and June 30, 2015 132,017,178 and 160,888,606 issued and outstanding at December 31, 2014 and June 30, 2015, respectively (Note 10)	1,609	1,320
Treasury stock (Note 3)	(44)	0
Additional paid-in capital	3,651,069	3,494,957
Accumulated other comprehensive loss	(23,380)	(23,938)
Accumulated deficit	(240,330)	(306,063)
Total stockholders' equity	3,388,924	3,166,276
Total liabilities and stockholders' equity	$ 8,689,514	$ 8,041,621

Unaudited Consolidated Balance3

Unaudited Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Consolidated Balance Sheets
Allowance for doubtful receivables	$ 43,953	$ 2,825
Preferred stock par value	$ 0.01	$ 0.01
Preferred stock shares authorized	500,000,000	500,000,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock par value	$ 0.01	$ 0.01
Common stock shares authorized	1,000,000,000	1,000,000,000
Common stock shares issued	160,888,606	132,017,178
Common stock shares outstanding	160,888,606	132,017,178

Unaudited Interim Condensed Con

Unaudited Interim Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
REVENUES:
Service revenue , net	$ 835,299	$ 802,197
Total Revenues	835,299	802,197
EXPENSES:
Drilling rigs and drillships operating expenses	295,711	334,604
Depreciation and amortization (Note 6)	177,150	158,091
General and administrative expenses	53,411	63,405
Other, net	(2,630)	1,588
Operating income	311,657	244,509
OTHER INCOME / (EXPENSES):
Interest and finance costs (Note 12)	(141,987)	(150,483)
Interest income	6,827	6,727
Loss on interest rate swaps (Note 9)	(10,061)	(10,167)
Other, net	(7,626)	1,397
Total other expenses, net	(152,847)	(152,526)
INCOME BEFORE INCOME TAXES	158,810	91,983
Income taxes (Note 11)	(42,797)	(23,933)
NET INCOME ATTRIBUTABLE TO OCEAN RIG UDW INC.	116,013	68,050
NET INCOME ATTRIBUTABLE TO OCEAN RIG UDW INC COMMON STOCKHOLDERS (Note 13)	$ 115,536	$ 67,856
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS, BASIC AND DILUTED (Note 13)	$ 0.86	$ 0.51
WEIGHTED AVERAGE NUMBER OF COMMON SHARES, BASIC AND DILUTED (Note 13)	134,927,763	131,837,490
Dividend declared per share	$ 0.38	$ 0.19

Unaudited Interim Condensed Co5

Unaudited Interim Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statements of Comprehensive Income/(Loss)
Net income	$ 116,013	$ 68,050
Other Comprehensive income:
Reclassification of realized losses associated with capitalized interest to the Unaudited Interim Condensed Consolidated Statement of Operations, net	516	517
Actuarial gains	42	491
Total Other Comprehensive income	558	1,008
Total Comprehensive income	$ 116,571	$ 69,058

Unaudited Interim Condensed Co6

Unaudited Interim Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statements Of Cash Flows (Abstract)
Net Cash Provided by Operating Activities	$ 257,628	$ 189,647
Cash Flows Provided by/(Used in) Investing Activities:
Advances for drillships under construction and related costs	(58,521)	(232,355)
Drilling rigs, drillships machinery, equipment and other improvements	(469,575)	(439,879)
Increase in restricted cash	(9,328)	(24,597)
Net Cash Used in Investing Activities	(537,424)	(696,831)
Cash Flows Provided by/(Used in) Financing Activities:
Proceeds from long term debt and senior notes	462,000	950,000
Principal payments and repayments of long-term debt and senior notes	(25,726)	(561,078)
Net proceeds from common stock issuance	192,707	0
Dividends paid	(50,281)	(25,055)
Payment of financing costs, net	(6,175)	(4,273)
Net Cash Provided by Financing Activities	572,525	359,594
Net increase/(decrease) in cash and cash equivalents	292,729	(147,590)
Cash and cash equivalents at beginning of period	528,933	605,467
Cash and cash equivalents at end of period	$ 821,662	$ 457,877

Basis of Presentation and Gener

Basis of Presentation and General Information	6 Months Ended
	Jun. 30, 2015
Basis of Presentation and General Information [Abstract]
Basis of Presentation and General Information	1. Basis of Presentation and General Information: The accompanying unaudited interim condensed consolidated financial statements include the accounts of Ocean Rig UDW Inc., its subsidiaries and consolidated Variable Interest Entities ("VIEs") (collectively, the "Company," "Ocean Rig UDW" or "Group"). Ocean Rig was formed on December 10, 2007, under the laws of the Republic of the Marshall Islands under the name Primelead Shareholders Inc. The Company was established by DryShips Inc. ("DryShips" or formerly the "Parent") for the purpose of being the holding company of its drilling segment. From June 8, 2015, and followirg a public offering (Note 10), the Company has been considered as an affiliate entity and not as a controlled subsidiary of DryShips. DryShips is currently impacted by the prolonged downturn in the drybulk charter market. The Company, in the preparation of its consolidated financial statements, has considered its relationship to DryShips and any impact to its formerly Parent's financial condition might have on its own consolidated financial statements. Based on its assessment, the Company has concluded that there is no impact on the basis of preparation of its consolidated financial statements. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America ("U.S. GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. These statements and the accompanying notes should be read in conjunction with the Company's Annual Report on Form 20-F (File No. 001-35298) for the fiscal year ended December 31, 2014, filed with the SEC on March 9, 2015. These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the Company's annual consolidated financial statements and include the accounts and operating results of Ocean Rig UDW, its wholly-owned subsidiaries and its VIEs. As of December 31, 2014 and June 30, 2015, the Company consolidated one VIE for which it is deemed to be the primary beneficiary, i.e. it has a controlling financial interest in this entity. The VIE's total assets and liabilities, as of December 31, 2014, were $64,314 and $65,358, respectively, while total liabilities exceeded total assets by $1,044. The VIE's total assets and liabilities, as of June 30, 2015, were $67,821 and $74,010, respectively, while total liabilities exceeded total assets by $6,189. In the opinion of the management, these unaudited interim condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation of the Company's financial position, results of operations and cash flows for the periods presented. Operating results for the six-month period ended June 30, 2015, are not necessarily indicative of the results that might be expected for the fiscal year ending December 31, 2015.

Significant Accounting policies

Significant Accounting policies	6 Months Ended
	Jun. 30, 2015
Significant Accounting policies [Abstract]
Significant Accounting policies	2. Significant Accounting Policies: A discussion of the Company's significant accounting policies can be found in the Company's consolidated financial statements included in the Annual Report on Form 20-F for the fiscal year ended December 31, 2014, filed with the SEC on March 9, 2015 (the "Consolidated Financial Statements for the year ended December 31, 2014"). There have been no material changes to these policies in the six-month period ended June 30, 2015.

Transactions with Related Parti

Transactions with Related Parties	6 Months Ended
	Jun. 30, 2015
Transactions with Related Parties [Abstract]
Transactions with Related Parties	3. Transactions with Related Parties: December 31, June 30, 2014 2015 Balance Sheet Due from a related party, current (accrued interest) - Dryships Inc. - 78,306 Due from a related party, current - Cardiff Drilling Inc. - 1 Due from related party, current - Total - 78,307 Due from a related party, non-current - Dryships Inc. 117,219 - Due from related party, non-current - Total 117,219 - Due to related parties - Cardiff Drilling Inc. 4,287 - Due to related parties - Azara Services S.A. 4,000 - Due to related parties - Basset Holding Inc. 3,000 - Due to related parties - Total 11,287 - Advances for drillships under construction and related costs - Cardiff Drilling Inc. $ 1,546 $ 314 Drilling rigs, drillships, machinery and equipment, net - Cardiff Drilling Inc. $ 2,885 $ 2,961 Six-month period ended June 30, Statement of Operations 2014 2015 Service revenue, net - Cardiff Drilling Inc. $ (7,729 ) $ (8,439 ) General and administrative expenses: -Vivid Finance Limited 5,706 1,350 -Azara Services S.A. 1,250 1,250 -Basset Holding Inc. 616 249 -Amortization of CEO's stock based compensation 653 1,598 Interest income - Dryships Inc. $ - $ 5,252 Cardiff Drilling Inc.: Vivid Finance Limited: On July 29, 2015, the Company amended its agreement with Vivid to expand the scope of the services provided under the agreement to the Company and its subsidiaries or affiliates, to cover certain management and investment services. In exchange for its services in respect of the Company, Vivid is entitled to a fee equal to 30% of any profits provided the profits are at least 10% of the invested amount. Basset Holdings Inc Basset is also the owner of 114,286 shares of the Company's common stock, as of June 30, 2015. Steel Wheel Investments Limited: Azara Services S.A.: In addition, on August 20, 2013, the Company's Compensation Committee approved a sign-on bonus of $2,500 cash and 150,000 shares of the Company's common stock to Azara, relating to the services of Mr. George Economou as Chief Executive Officer of the Company. The shares vest over a period of two years with 50,000 shares vesting on the grant date, 50,000 shares vesting on August 20, 2014 and 50,000 vesting on August 20, 2015, respectively. The stock based compensation is being recognized to expenses over the vesting period and based on the fair value of the Ocean Rig's shares on the grant date of $17.56 per share. On August 19, 2014, Company's Compensation Committee approved a bonus in the form of $2,500 cash and 150,000 shares of Company's common stock to Azara, relating to the services of Mr. George Economou as Chief Executive Officer of the Company, rendered during 2013. The shares vest over a period of three years with 50,000 shares vesting on December 31, 2014, 50,000 shares vesting on December 31, 2015, and 50,000 vesting on December 31, 2016. The stock-based compensation is being recognized to expenses over the vesting period and based on the fair value of Ocean Rig shares on the grant date of $18.37 per share. On December 30, 2014, Company's Compensation Committee approved a bonus in the form of $4,000 cash and 300,000 shares of Company's common stock to Azara, relating to the services of Mr. George Economou as Chief Executive Officer, during 2014. The shares vest over a period of three years with 100,000 shares vesting on December 31, 2015, 100,000 shares vesting on December 31, 2016, and 100,000 vesting on December 31, 2017. The stock-based compensation is being recognized to expenses over the vesting period and based on the fair value of Ocean Rig shares on the grant date of $9.46 per share. The shares were issued during the first quarter of 2015. DryShips Inc. On November 18, 2014, the Company entered into a $120,000 unsecured facility with its former parent company, DryShips. The loan from the Company to DryShips bears interest at a LIBOR plus margin rate and is due in May 2016. The Company has the option to exchange this loan for its common shares owned by DryShips at a fixed price per share, provided the DryShips $200,000 Secured Bridge Credit facility has been repaid in full. If such exchange occurs, the margin of the loan will be reduced from inception. The above terms were amended with relevant supplemental agreements on DryShip's $200,000 Secured Bridge Credit facility. On June 4, 2015, the Company and DryShips signed an amendment under the $120,000 unsecured facility to, among other things, partially exchange $40,000 of the loan for 4,444,444 Company's shares owned by Dryships, amend the interest of the loan and pledged to the Company 20,555,556 shares of the Company's stock owned by Dryships. On July 30, 2015, the Company reached an agreement with DryShips to exchange the remaining outstanding balance of $80,000 owed to the Company under the $120,000 Exchangeable Promissory Note, for 17,777,778 shares of the Company owned by DryShips. During the six-month period ended June 30, 2015, the Company earned interest income amounting to $5,252 from DryShips under this loan agreement. During the six-month period ended June 30, 2015, the Company paid dividends of $50,281 out of which $29,755 were paid to DryShips.

Other Current Assets

Other Current Assets	6 Months Ended
	Jun. 30, 2015
Other Current Assets [Abstract]
Other Current Assets	4. Other Current Assets: The amount of other current assets shown in the accompanying unaudited interim condensed consolidated balance sheets is analyzed as follows: December 31, 2014 June 30, 2015 Inventories $ 6,609 $ 10,534 Deferred mobilization expenses 66,169 62,351 Prepayments and advances 22,880 25,371 Other 5,850 6,411 $ 101,508 $ 104,667

Advances for drillships under c

Advances for drillships under construction and related costs	6 Months Ended
	Jun. 30, 2015
Advances For Drillships Under Construction And Related Costs [Abstract]
Advances for drillships under construction and related costs	5. Advances for drillships under construction and related costs: The amounts shown in the accompanying consolidated balance sheets include milestone payments under the shipbuilding contracts with the shipyards, supervision costs and any material related expenses incurred during the construction periods, all of which are capitalized in accordance with the accounting policy discussed in Note 2 of the Consolidated Financial Statements for the year ended December 31, 2014. The movement of the account during the six month period ended June 30, 2015, was as follows: Balance, December 31, 2014 $ 622,507 Advances for drillships under construction and related costs 468,687 Drillships delivered (727,688 ) Balance, June 30, 2015 $ 363,506 On March 5, 2015, the Company took delivery of the drillship Ocean Rig Apollo The Ocean Rig Santorini The Company has advanced $108,400 and $76,600, respectively to the yard for each of the new drillships, which are equipped with two blow-out preventers. The total project cost is approximately $743,000, per drillship. On April 27, 2015, the Company reached an agreement to postpone the delivery of the Ocean Rig Crete Ocean Rig Amorgos

Drilling rigs, drillships, mach

Drilling rigs, drillships, machinery and equipment, net	6 Months Ended
	Jun. 30, 2015
Drilling Rigs, Drillships, Machinery And Equipment, Net [Abstract]
Drilling rigs, drillships, machinery and equipment, net	6. Drilling rigs, drillships, machinery and equipment, net: The amounts in the accompanying consolidated balance sheets are analyzed as follows: Cost Accumulated Depreciation Net Book Value Balance December 31, 2014 $ 7,331,372 $ (1,123,739 ) $ 6,207,633 Additions/ Transfer from drillships under construction 821,784 - 821,784 Depreciation - (175,909 ) (175,909 ) Balance June 30, 2015 $ 8,153,156 (1,299,648) 6,853,508 As of June 30, 2015, all of the Company's operating drilling rigs and drillships have been pledged as collateral to secure bank loans, the Company's 6.50% senior secured notes due 2017 and term loan B facilities (Note 8).

Other non-current assets

Other non-current assets	6 Months Ended
	Jun. 30, 2015
Other non-current assets [Abstract]
Other non-current assets	7. Other non-current assets: The amount of other non-current assets shown in the accompanying consolidated balance sheets is analyzed as follows: December 31, 2014 June 30, Deferred mobilization expenses $ 43,327 $ 30,536 Intangible assets, net 4,732 4,010 Prepaid investments 57,910 23,631 Total $ 105,969 $ 58,177

Long-term Debt

Long-term Debt	6 Months Ended
	Jun. 30, 2015
Long-term Debt [Abstract]
Long-term Debt	8. Long-term Debt: December 31, 2014 June 30, 2015 $1.3 billion Senior Secured Term Loan B Facility $ 1,296,750 $ 1,290,250 $1.9 billion Secured Term Loan B Facility 1,876,250 1,866,750 $462 million Senior Secured Credit Facility - 452,274 7.25% Senior Unsecured Notes 500,000 500,000 6.5% Senior Secured Notes 800,000 800,000 Less: Deferred financing costs (100,550 ) (97,623 ) Total debt 4,372,450 4,811,651 Less: Current portion (19,858 ) (56,982 ) Long-term portion $ 4,352,592 $ 4,754,669 6.5% Senior Secured Notes due 2017 On September 20, 2012, the Company's wholly owned subsidiary Drill Rigs Holdings Inc. (the "Issuer"), issued $800,000 aggregate principal amount of 6.50% Senior Secured Notes due 2017 (the "Drill Rigs Senior Notes") offered in a private offering, resulting in net proceeds of approximately $781,965. The Company used a portion of the net proceeds of the notes to repay the full amount outstanding under its $1,040,000 senior secured credit facility as at September 20, 2012. The Drill Rigs Senior Notes are secured obligations and rank senior in right of payment to any future subordinated indebtedness and equally in right of payment to all of its existing and future unsecured senior indebtedness. The Drill Rigs Senior Notes are fully and unconditionally guaranteed by the Company and certain of its existing and future subsidiaries (collectively, the "Issuer Subsidiary Guarantors" and, together with the Company, the "Guarantors"). Upon a change of control, which occurs if 50% or more of the Company's shares are acquired by any person or group other than DryShips or its affiliates, the Issuer will be required to make an offer to repurchase the Drill Rigs Senior Notes at a price equal to 101% of the principal amount thereof, plus any accrued and unpaid interest thereon to the date of repurchase. On or after October 1, 2015, the Issuer may, at its option, redeem all or a portion of the Drill Rigs Senior Notes, at one time or from time to time at 103.25% (from October 1, 2015 to September 30, 2016) or 100% (October 1, 2016 and thereafter) of the principal amount thereof, plus any accrued and unpaid interest thereon to the date of redemption. The Drill Rigs Senior Notes and the Drill Rigs Senior Notes guarantees are secured, on a first priority basis, by a security interest on the Issuer's two semi-submersible offshore drilling rigs, the Leiv Eiriksson Eirik Raude 7.25% Senior Unsecured Notes due 2019 On March 26, 2014, the Company issued $500,000 aggregate principal amount of 7.25% senior unsecured notes due 2019 (the "7.25% Senior Unsecured Notes") offered in a private placement, resulting in net proceeds of approximately $493,625. The Senior Notes are unsecured obligations and rank senior in right of payment to any future subordinated indebtedness and equally in right of payment to all of its existing and future unsecured senior indebtedness. The Company used the net proceeds from the offering of the 7.25% Senior Unsecured Notes, together with cash on hand and repurchased $462,300 of its 9.5% Senior Unsecured Notes, of which $500,000 in aggregate principal amount was outstanding prior to closing of the 7.25% Notes Offering, at a tender premium of 105.375%, while the remaining $37,700,was redeemed at a redemption price of 104.5% on May 13, 2014. The 7.25% Senior Unsecured Notes are not guaranteed by any of the Company's subsidiaries. Upon a change of control, which would occur if 50% or more of the Company's shares are acquired by any person or group other than DryShips or its affiliates, the noteholders will have an option to require the Company to purchase all outstanding notes at a redemption price of 101% of the principal amount thereof plus accrued and unpaid interest to the date of purchase. The contractual semi-annual coupon interest rate is 7.25% per year. $1.3 billion Senior Secured Term Loan B Facility On July 25, 2014, the Company's wholly owned subsidiary, Drillships Ocean Ventures Inc., entered into a $1.3 billion Senior Secured Term Loan B ("New Term Loan B") facility to repay the $1.35 billion Senior Secured Credit Facility, which had an outstanding loan balance of approximately $1.3 billion on that date. The unamortized balance of deferred finance fees associated with the repaid loans, amounting to approximately $19,797, were written off in the consolidated statement of operations upon the extinguishment of the related debt in July 2014. In addition, restricted cash of $75,000 associated with the respective debt was released upon the repayment. The New Term Loan B facility which is secured primarily by first priority mortgages on the vessels, the Ocean Rig Mylos Ocean Rig Skyros Ocean Rig Athena $1.9 billion Secured Term Loan B Facility On February 7, 2014, the Company refinanced its then existing short-term Tranche B-2 Term Loans with a fungible add-on to its existing long-term Tranche B-1 Term Loans. As a result of this refinancing, the total $1.9 billion of Tranche B-1 Term Loans will mature no earlier than the third quarter of 2020. $462 million Senior Secured Credit Facility On February 13, 2015, the Company's wholly owned subsidiary, Drillship Alonissos Owners Inc., entered into a secured term loan facility agreement with a syndicate of lenders and DNB Bank ASA, as facility agent and security agent, for up to $475,000 to partially finance the construction costs of the Ocean Rig Apollo The Company's outstanding debt is secured by, among other things, first priority mortgages over the Company's operating drilling units, corporate guarantees, first priority assignments of all freights, earnings, insurances and requisition compensation relating to such drilling units and a pledge of the shares of capital stock of certain of the Company's subsidiaries. Certain of our debt instruments contain financial covenants, minimum coverage ratio requirements and minimum liquidity and working capital requirements and restrict, without the bank's prior consent, the Company's and its subsidiaries ability to, among other things, pay dividends, change the management and ownership of its drillships, incur additional indebtedness, incur and create liens on its assets, and change in the general nature of the Company's business and require that the Company maintain an established place of business in the United States or the United Kingdom. Total interest and debt amortization cost incurred on long-term debt for the six month periods ended June 30, 2014 and 2015, amounted to $ 139,241 and $149,804, respectively, of which $ 18,037 and $14,378, respectively, were capitalized as part of the cost of the drillships under construction. Total interest incurred and amortization of debt issuance cost on long-term debt, net of capitalized interest, are included in "Interest and finance costs" in the accompanying unaudited interim condensed consolidated statements of operations. The aggregate available undrawn amounts under the Company's facilities at June 30, 2015, were $0. The Company's weighted average interest rates on the above bank loans and notes were 6.27% and 6.28%, as of June 30, 2014 and 2015, respectively. The annual principal payments required to be made after June 30, 2015, including balloon payments, totaling $4,909,274 due through July 2021, are as follows: June 30, 2016 $ 70,905 June 30, 2017 70,905 June 30, 2018 870,905 June 30, 2019 570,905 June 30, 2020 328,654 June 30, 2021 and thereafter 2,997,000 Total principal payments 4,909,274 Less: Deferred financing costs (97,623 ) Total debt $ 4,811,651

Financial Instruments and Fair

Financial Instruments and Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Financial Instruments and Fair Value Measurements [Abstract]
Financial Instruments and Fair Value Measurements	9. Financial Instruments and Fair Value Measurements ASC 815, "Derivatives and Hedging" requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the statement of financial position. Effective January 1, 2011, the Company removed the designation of the cash flow hedges and discontinued hedge accounting for the associated interest rate swaps. The Company recognizes all derivative instruments as either assets or liabilities at fair value on its consolidated balance sheets. Changes in the fair value of derivative instruments that have not been designated as hedging instruments are reported in the accompanying unaudited interim condensed consolidated statement of operations. The Company enters into interest rate swap transactions to manage interest costs and risk associated with changing interest rates with respect to its variable interest rate loans and credit facilities. The Company also enters from time to time into foreign currency forward contracts in order to manage risks associated with fluctuations in foreign currencies. All of the Company's derivative transactions are entered into for risk management purposes. As of June 30, 2015, the Company had outstanding seven interest rate swap agreements, of $1.7 billion notional amount, maturing from April 2016 through November 2017. Tabular disclosure of financial instruments is as follows: Fair Values of Derivative Instruments in the Balance Sheet: Derivatives not designated as Hedging Instruments Balance Sheet Location December 31, 2014 Fair value June 30, 2015 Fair value Interest rate swaps Financial Instruments non-current assets $ 10,101 $ 4,660 Interest rate swaps Financial Instruments current liabilities (17,881 ) (15,284 ) Interest rate swaps Financial Instruments non-current liabilities (8,617 ) (5,284 ) Total derivatives $ (16,397 ) $ (15,908) During the six-month periods ended June 30, 2014 and 2015, the losses transferred from accumulated other comprehensive loss in the accompanying unaudited interim condensed consolidated statements of operations were $517 and $516, respectively. The estimated net amount of existing losses at June 30, 2015, that will be reclassified into earnings within the next twelve months relating to previously designated cash flow hedges is $1,035. The effects of derivative instruments not designated or qualifying as hedging instruments on the unaudited interim condensed consolidated statements of operations is as follows: Amount of Loss Derivatives not designated as hedging instruments Location of Loss Recognized Six-month period ended June 30, 2014 Six-month period ended June 30, 2015 Interest rate swaps Loss on interest rate swaps, net (10,167 ) (10,061 ) Total $ (10,167) $ (10,061) The carrying amounts of cash and cash equivalents, restricted cash, trade accounts receivable, accounts payable, other current liabilities, due from related parties and due to related parties reported in the consolidated balance sheets approximate their respective fair values because of the short-term nature of these accounts. The carrying value approximates the fair market value for floating rate loans and intercompany loan. The carrying value of non-current restricted cash receiving floating interest rate approximates the fair value. The fair value of the interest rate swaps was determined using a discounted cash flow method based on market-based LIBOR swap yield curves, taking into account current interest rates and the creditworthiness of both the financial instrument counterparty and the Company. The 7.25% Senior Unsecured Notes and the 6.5% Senior Secured Notes have a fixed rate and their estimated fair values are determined through Level 2 inputs of the fair value hierarchy (quoted price in the over-the countermarket). The fair value of the outstanding balance of the $1.9 billion Secured Term Loan B Facility and $1.3 billion Senior Secured Term Loan B Facility which have a fixed rate is estimated through Level 2 inputs of the fair value hierarchy by discounting future cash flows using rates currently available for debt with similar terms, credit risk and remaining maturities. The estimated fair value of the above 7.25% Senior Unsecured Notes and 6.5% Senior Secured Notes, as at December 31, 2014, was approximately $380,000 and $666,000, respectively. The estimated fair value of the above $1.9 billion Secured Term Loan B Facility and $1.3 billion Senior Secured Term Loan B Facility was approximately the same as their carrying value net of finance fees. For the aforementioned senior notes and term loans their carrying value net of finance fees as at December 31, 2014 was $492,214, $788,224, $1,825,671 and $1,266,341, respectively. The estimated fair value of the above 7.25% Senior Unsecured Notes and 6.5% Senior Secured as at June 30, 2015, is approximately $422,500, $702,000 respectively. The estimated fair value of the above $1.9 billion Secured Term Loan B Facility and $ 1.3 billion Senior Secured Term Loan B Facility is $2,013,802 and $1,374,483, respectively. For the aforementioned senior notes and term loans their carrying value net of finance fees as at June 30, 2015 is $492,995, $790,179, $ 1,820,124 and $ 1,261,911, respectively. The $120,000 facility to DryShips approximately is the same as its fair market value, compared to a carrying amount net of financing fees of $78,306. The guidance for fair value measurement applies to all assets and liabilities that are being measured and reported on a fair value basis. This guidance enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The statement requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories. Fair value measurements are classified based upon inputs used to develop the measurement under the following hierarchy: Level 1--Quoted market prices in active markets for identical assets or liabilities. Level 2--Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3--Unobservable inputs that are not corroborated by market data. The following table summarizes the valuation of assets and liabilities measured at fair value on a recurring basis as of the valuation date. June 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Interest rate swaps-asset position $ 4,660 - 4,660 $ - Interest rate swaps-liability position (20,568 ) - (20,568 ) - Total $ (15,908 ) - (15,908 ) $ -

Common Stock and Additional Pai

Common Stock and Additional Paid-in Capital	6 Months Ended
	Jun. 30, 2015
Common Stock and Additional Paid-in Capital [Abstract]
Common Stock and Additional Paid-in Capital	10. Common Stock and Additional Paid-in Capital: Issuance of common shares On June 8, 2015, the Company successfully completed the offering of 28,571,428 shares of its common stock, par value $0.01 per share, at a price of $7.00 per share, resulting in net proceeds of $194,134, after deducting placement fees . As part of the offering, George Economou, the Company's Chairman, President and Chief Executive Officer, purchased $10,000, or 1,428,571 shares, of common stock in the offering at the public offering price. Restricted stock awards: On February 14, 2012, the Company's Compensation Committee approved the grant of 112,950 shares of non-vested common stock to officers and key employees of the Company's subsidiary, Ocean Rig AS, as a bonus for their services rendered during 2011. The shares vested over a period of three years. The stock-based compensation was being recognized to expenses over the vesting period and based on the fair value of the shares on the grant date of $16.50 per share. On March 21, 2012, the Company's Board of Directors approved the 2012 Equity Incentive Plan (the "Plan") and reserved a total of 2,000,000 common shares. Under the Plan, officers, key employees, and directors are eligible to receive awards of stock options, stock appreciation rights, restricted stock, restricted stock units, phantom stock units and unrestricted stock. On May 15, 2012, Ocean Rig's Compensation Committee approved the grant of: a) 4,500 shares of non-vested common stock to an officer as an additional bonus for his services rendered during 2011 and, b) 28,200 shares to new recruited employees as a sign-up stock bonus. The shares vested over a period of three years. The stock-based compensation was being recognized to expenses over the vesting period and based on the fair value of the Ocean Rig shares on the grant date of $15.92 per share. On May 16, 2013, the Company's Compensation Committee approved the grant of 192,400 shares of non-vested common stock to the Company's employees. The shares vest over a period of three years. The stock-based compensation is being recognized to expenses over the vesting period and based on the fair value of the Ocean Rig Shares on the grant date of $16.90 per share. On August 20, 2013, the Company's Compensation Committee approved a sign-on bonus of 150,000 shares of the Company's common stock to Azara, pursuant to a consultancy agreement with Azara effective January 1, 2013, relating to the services of Mr. George Economou as Chief Executive Officer of the Company. The shares vest over a period of two years with 50,000 shares vesting on the grant date, 50,000 shares vesting on August 20, 2014 and 50,000 vesting on August 20, 2015, respectively. The stock based compensation is being recognized to expenses over the vesting period and based on the fair value of the Ocean Rig Shares on the grant date of $17.56 per share. On March 31, 2014, Ocean Rig's Compensation Committee approved the grant of 161,200 shares of non-vested common stock to employees of Ocean Rig. The shares vest over a period of three years. The stock-based compensation is being recognized to expenses over the vesting period and based on the fair value of the Ocean Rig shares on the grant date of $17.79 per share. On August 19, 2014, the Compensation Committee approved a bonus in the form of 150,000 shares to be granted to Azara for the contribution of Mr. George Economou for Chief Executive Officer's services rendered during 2013. The shares vest over a period of three years with 50,000 shares vesting on December 31, 2014, 50,000 shares vesting on December 31, 2015, and 50,000 vesting on December 31, 2016. The stock-based compensation is being recognized to expenses over the vesting period and based on the fair value of the Ocean Rig shares on the grant date of $18.37 per share. On November 4, 2014, the Company's Compensation Committee approved the grant of 45,450 shares of non-vested common stock to employees of Ocean Rig. The shares vest over a period of three years. The stock-based compensation is being recognized to expenses over the vesting period and based on the fair value of the Ocean Rig shares on the grant date of $12.60 per share. On December 30, 2014, the Company's Compensation Committee approved a bonus in the form of 300,000 shares to be granted to Azara for the contribution of Mr. George Economou for Chief Executive Officer's services rendered during 2014. The shares vest over a period of three years with 100,000 shares vesting on December 31, 2015, 100,000 shares vesting on December 31, 2016, and 100,000 vesting on December 31, 2017. The stock-based compensation is being recognized to expenses over the vesting period and based on the fair value of the Ocean Rig shares on the grant date of $9.46 per share. On April 29, 2015, the Company's Compensation Committee approved the grant of 173,200 shares of non-vested common stock to employees of Ocean Rig. The shares vest over a period of three years. The stock-based compensation is being recognized to expenses over the vesting period and based on the fair value of the Ocean Rig shares on the grant date of $7.24 per share. As of June 30, 2015, 294,352 shares have vested, while 181,626 shares were forfeited due to employees' resignations. The movement during the six-month period ended June 30, 2015, is presented below: Number of Weighted average grant date fair value per non vested shares Balance December 31, 2014 612,798 13.49 Granted 173,200 7.24 Forfeited (10,000 ) 14.79 Balance June 30, 2015 775,998 12.08 As of December 31, 2014 and June 30, 2015, there was $6,235 and $5,012 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted by the Company, respectively. That cost is expected to be recognized over a period of 2 years. The amounts of $1,655 and $2,381 represent the stock based compensation expense and are recorded in "General and administrative expenses", in the accompanying unaudited interim condensed consolidated statements of operations for the periods ended June 30, 2014 and 2015, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes [Abstract]
Income Taxes	11. Income Taxes: Ocean Rig UDW operates through its various subsidiaries in a number of countries throughout the world. Income taxes have been provided based upon the tax laws and rates in the countries in which operations are conducted and income is earned. The countries in which the Company operates have taxation regimes with varying nominal rates, deductions, credits and other tax attributes. Consequently, there is not an expected relationship between the provision for/or benefit from income taxes and income or loss before income taxes.

Interest and Finance Costs

Interest and Finance Costs	6 Months Ended
	Jun. 30, 2015
Interest and Finance Costs [Abstract]
Interest and Finance Costs	12. Interest and Finance Costs: The amounts in the accompanying unaudited interim condensed consolidated statements of operations are analyzed as follows: Six-month period ended June 30, 2014 2015 Interest on long-term debt, including amortization of financing costs $ 139,241 $ 149,804 Capitalized borrowing costs (18,037 ) (14,378 ) Premium on 9.5% Senior Unsecured Notes (Note 8) 26,546 - Discount on receivable from drilling contract - 5,419 Commissions, commitment fees and other financial expenses 2,733 1,142 Total $ 150,483 $ 141,987

Earnings per share

Earnings per share	6 Months Ended
	Jun. 30, 2015
Earnings per share :
Earnings per share	13. Earnings per share: Six-month period ended June 30, 2014 2015 Income (numerator) Weighted- average number of outstanding shares (denominator) Amount per share Loss (numerator) Weighted- average number of outstanding shares (denominator) Amount per share Net income $ 68,050 - - $ 116,013 - - Less: Non-vested common stock dividends declared and undistributed earnings (194 ) - - (477 ) - - Basic and diluted EPS Income attributable to common stockholders $ 67,856 131,837,490 $ 0.51 $ 115,536 134,927,763 0.86 Non-vested share-based payment awards that contain rights to receive non forfeitable dividends or dividend equivalents (whether paid or unpaid) and participate equally in undistributed earnings are participating securities and, thus, are included in the two-class method of computing earnings per share for the six-month periods ended June 30, 2014 and 2015,. For the six-month period ended June 30, 2014 and 2015, non-vested participating restricted common stock were not included in the computation of diluted earnings per share because the effect is anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	14. Commitments and Contingencies: 14.1 Legal proceedings: Various claims, suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course of the offshore drilling business. As part of the Company's normal course of operations, the Company's customer may disagree on amounts due to the Company under the provision of the contracts which are normally settled through negotiations with the customer. Disputed amounts are normally reflected in revenues at such time as the Company reaches agreement with the customer on the amounts due. During March 2015, one of Ocean Rig's drillships was redelivered approximately 6 months ahead of the contractual redelivery date of August 2015. The Company is presently in discussions with its customer and intends to legally defend its rights if an amicable solution fails. The Company is not a party to any material litigation where claims or counterclaims have been filed against the Company other than routine legal proceedings incidental to its business. 14.2 Purchase Obligations: The following table sets forth the Company's contractual purchase obligations as of June 30, 2015, and giving effect to the agreement dated April 27, 2015 (Note 5). 2016 2017 2018 2019 Total Drillships building contracts $ 413,000 157,200 464,000 495,800 $ 1,530,000 Total obligations $ 413,000 157,200 464,000 495,800 $ 1,530,000

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events	15. Subsequent Events: 15.1 On July 30, 2015, the Company's Board of Directors decided to suspend its quarterly dividend until market conditions improve.

Transactions with Related Par22

Transactions with Related Parties (Tables)	6 Months Ended
	Jun. 30, 2015
Transactions with Related Parties [Abstract]
Schedule of related party transactions	December 31, June 30, 2014 2015 Balance Sheet Due from a related party, current (accrued interest) - Dryships Inc. - 78,306 Due from a related party, current - Cardiff Drilling Inc. - 1 Due from related party, current - Total - 78,307 Due from a related party, non-current - Dryships Inc. 117,219 - Due from related party, non-current - Total 117,219 - Due to related parties - Cardiff Drilling Inc. 4,287 - Due to related parties - Azara Services S.A. 4,000 - Due to related parties - Basset Holding Inc. 3,000 - Due to related parties - Total 11,287 - Advances for drillships under construction and related costs - Cardiff Drilling Inc. $ 1,546 $ 314 Drilling rigs, drillships, machinery and equipment, net - Cardiff Drilling Inc. $ 2,885 $ 2,961 Six-month period ended June 30, Statement of Operations 2014 2015 Service revenue, net - Cardiff Drilling Inc. $ (7,729 ) $ (8,439 ) General and administrative expenses: -Vivid Finance Limited 5,706 1,350 -Azara Services S.A. 1,250 1,250 -Basset Holding Inc. 616 249 -Amortization of CEO's stock based compensation 653 1,598 Interest income - Dryships Inc. $ - $ 5,252

Other Current Assets (Tables)

Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2015
Other Current Assets [Abstract]
Other Current Assets	December 31, 2014 June 30, 2015 Inventories $ 6,609 $ 10,534 Deferred mobilization expenses 66,169 62,351 Prepayments and advances 22,880 25,371 Other 5,850 6,411 $ 101,508 $ 104,667

Advances for drillships under24

Advances for drillships under construction and related costs (Tables)	6 Months Ended
	Jun. 30, 2015
Advances For Drillships Under Construction And Related Costs [Abstract]
Advances for drillships under construction and related costs	Balance, December 31, 2014 $ 622,507 Advances for drillships under construction and related costs 468,687 Drillships delivered (727,688 ) Balance, June 30, 2015 $ 363,506

Drilling rigs, drillships, ma25

Drilling rigs, drillships, machinery and equipment, net (Tables)	6 Months Ended
	Jun. 30, 2015
Drilling Rigs, Drillships, Machinery And Equipment, Net [Abstract]
Drilling rigs, drillships, machinery and equipment, net	Cost Accumulated Depreciation Net Book Value Balance December 31, 2014 $ 7,331,372 $ (1,123,739 ) $ 6,207,633 Additions/ Transfer from drillships under construction 821,784 - 821,784 Depreciation - (175,909 ) (175,909 ) Balance June 30, 2015 $ 8,153,156 (1,299,648) 6,853,508

Other non-current assets (Table

Other non-current assets (Tables)	6 Months Ended
	Jun. 30, 2015
Other non-current assets [Abstract]
Other non-current assets	December 31, 2014 June 30, Deferred mobilization expenses $ 43,327 $ 30,536 Intangible assets, net 4,732 4,010 Prepaid investments 57,910 23,631 Total $ 105,969 $ 58,177

Long-term Debt (Tables)

Long-term Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Long-term Debt [Abstract]
Long-term debt	December 31, 2014 June 30, 2015 $1.3 billion Senior Secured Term Loan B Facility $ 1,296,750 $ 1,290,250 $1.9 billion Secured Term Loan B Facility 1,876,250 1,866,750 $462 million Senior Secured Credit Facility - 452,274 7.25% Senior Unsecured Notes 500,000 500,000 6.5% Senior Secured Notes 800,000 800,000 Less: Deferred financing costs (100,550 ) (97,623 ) Total debt 4,372,450 4,811,651 Less: Current portion (19,858 ) (56,982 ) Long-term portion $ 4,352,592 $ 4,754,669
Annual principal payments	June 30, 2016 $ 70,905 June 30, 2017 70,905 June 30, 2018 870,905 June 30, 2019 570,905 June 30, 2020 328,654 June 30, 2021 and thereafter 2,997,000 Total principal payments 4,909,274 Less: Deferred financing costs (97,623 ) Total debt $ 4,811,651

Financial Instruments and Fai28

Financial Instruments and Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Financial Instruments and Fair Value Measurements [Abstract]
Fair Values of Derivative Instruments in the Statement of Financial Position and Statement of Operations	Derivatives not designated as Hedging Instruments Balance Sheet Location December 31, 2014 Fair value June 30, 2015 Fair value Interest rate swaps Financial Instruments non-current assets $ 10,101 $ 4,660 Interest rate swaps Financial Instruments current liabilities (17,881 ) (15,284 ) Interest rate swaps Financial Instruments non-current liabilities (8,617 ) (5,284 ) Total derivatives $ (16,397 ) $ (15,908)
Schedule of amounts recognized in other comprehensive income/ (loss)	Amount of Loss Derivatives not designated as hedging instruments Location of Loss Recognized Six-month period ended June 30, 2014 Six-month period ended June 30, 2015 Interest rate swaps Loss on interest rate swaps, net (10,167 ) (10,061 ) Total $ (10,167) $ (10,061)
Recurring measurements	June 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Interest rate swaps-asset position $ 4,660 - 4,660 $ - Interest rate swaps-liability position (20,568 ) - (20,568 ) - Total $ (15,908 ) - (15,908 ) $ -

Common Stock and Additional P29

Common Stock and Additional Paid-in Capital (Tables)	6 Months Ended
	Jun. 30, 2015
Common Stock and Additional Paid-in Capital [Abstract]
Common Stock and Additional Paid-in Capital	Number of Weighted average grant date fair value per non vested shares Balance December 31, 2014 612,798 13.49 Granted 173,200 7.24 Forfeited (10,000 ) 14.79 Balance June 30, 2015 775,998 12.08

Interest and Finance Costs (Tab

Interest and Finance Costs (Tables)	6 Months Ended
	Jun. 30, 2015
Interest and Finance Costs [Abstract]
Interest And Finance Costs	Six-month period ended June 30, 2014 2015 Interest on long-term debt, including amortization of financing costs $ 139,241 $ 149,804 Capitalized borrowing costs (18,037 ) (14,378 ) Premium on 9.5% Senior Unsecured Notes (Note 8) 26,546 - Discount on receivable from drilling contract - 5,419 Commissions, commitment fees and other financial expenses 2,733 1,142 Total $ 150,483 $ 141,987

Earnings per share (Tables)

Earnings per share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings per share :
Schedule of Earnigns per share	Six-month period ended June 30, 2014 2015 Income (numerator) Weighted- average number of outstanding shares (denominator) Amount per share Loss (numerator) Weighted- average number of outstanding shares (denominator) Amount per share Net income $ 68,050 - - $ 116,013 - - Less: Non-vested common stock dividends declared and undistributed earnings (194 ) - - (477 ) - - Basic and diluted EPS Income attributable to common stockholders $ 67,856 131,837,490 $ 0.51 $ 115,536 134,927,763 0.86

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies [Abstract]
Purchase obligations	2016 2017 2018 2019 Total Drillships building contracts $ 413,000 157,200 464,000 495,800 $ 1,530,000 Total obligations $ 413,000 157,200 464,000 495,800 $ 1,530,000

Basis of Presentation and Gen33

Basis of Presentation and General Information (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Basis of Presentation and General Information [Abstract]
VIE, total assets	$ 67,821	$ 64,314
VIE, total liabillities	74,010	65,358
VIE, net assets	$ (6,189)	$ (1,044)

Transaction with Related Partie

Transaction with Related Parties - Balance Sheet (Table) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Due from a related party, current	$ 78,307	$ 0
Due from a related paty, non-current	0	117,219
Due to related parties	0	11,287
Advances for drillships under construction and related costs	363,506	622,507
Drilling rigs, drillships, machinery and equipment, net	6,853,508	6,207,633
Dryships Inc.
Due from a related party, current	78,306	0
Due from a related paty, non-current	0	117,219
Cardiff Drilling Inc.
Due from a related party, current	1	0
Due to related parties	0	4,287
Advances for drillships under construction and related costs	314	1,546
Drilling rigs, drillships, machinery and equipment, net	2,961	2,885
Azara Services S.A.
Due to related parties	0	4,000
Basset Holding Inc.
Due to related parties	$ 0	$ 3,000

Transaction with Related Part35

Transaction with Related Parties - Statement of Operations (Table) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cardiff Drilling Inc.
Service Revenue, net	$ (8,439)	$ (7,729)
Vivid Finance Limited
General and administrative expenses:
General and administrative expenses	1,350	5,706
Azara Services S.A.
General and administrative expenses:
General and administrative expenses	1,250	1,250
Basset Holding Inc.
General and administrative expenses:
General and administrative expenses	249	616
Chairman, President and Chief Executive Officer
General and administrative expenses:
Amortization of CEO's stock based compensation	1,598	653
Dryships Inc.
General and administrative expenses:
Interest income	$ 5,252	$ 0

Transactions with Related Par36

Transactions with Related Parties - Cardiff Drilling, Vivid, Basset, Steel, Azara, Dryships (Details) $ / shares in Units, € in Thousands, $ in Thousands

5 Months Ended

6 Months Ended

7 Months Ended

8 Months Ended

12 Months Ended

30 Months Ended

31 Months Ended

Jun. 04, 2015USD ($)shares

Jun. 30, 2015USD ($)shares

Jun. 30, 2015EUR (€)shares

Jun. 30, 2014USD ($)

Jul. 30, 2015USD ($)shares

Jul. 29, 2015

Aug. 19, 2014USD ($)$ / sharesshares

Aug. 20, 2013USD ($)$ / sharesshares

Dec. 31, 2014USD ($)shares

Dec. 30, 2014USD ($)$ / sharesshares

Jun. 30, 2015USD ($)

Dec. 31, 2014USD ($)shares

Dec. 31, 2014EUR (€)

Dec. 31, 2017shares

Dec. 31, 2016shares

Dec. 31, 2015shares

Aug. 20, 2015shares

Nov. 18, 2014USD ($)

Aug. 20, 2014shares

Related Party Transaction [Line Items]

Shares granted | shares

173,200

173,200

Unsecured debt to parent company

$ 0

$ 117,219

$ 0

$ 117,219

Dividends paid

50,281

$ 25,055

75,194

Due from a related party, current

78,307

0

78,307

0

Cardiff Drilling Inc.

Related Party Transaction [Line Items]

Due from a related party, current

$ 1

$ 0

$ 1

0

Steel Wheel Investments Limited

Related Party Transaction [Line Items]

Ownership in Ocean Rig | shares

1,570,226

1,570,226

Global Services Agreement January 2013 | Cardiff Drilling Inc.

Related Party Transaction [Line Items]

Commissions in connection with employment arrangements

1.00%

Commission on purchase and sale activities

0.75%

Consultancy Agreement January 2013 | Vivid Finance Limited

Related Party Transaction [Line Items]

Commission on financing related services

0.20%

Consultancy Agreement January 2013 | Profits at least 10% of the invested amount | Vivid Finance Limited

Related Party Transaction [Line Items]

Commission fee on profits

30.00%

Consultancy Agreement 2012 | Basset

Related Party Transaction [Line Items]

Annual Remuneration

$ 500

€ 450

$ 1,000

€ 900

Ownership in Ocean Rig | shares

114,286

114,286

Consultancy Agreement CEO Services January 2013 | Azara Services S.A.

Related Party Transaction [Line Items]

Annual Remuneration

$ 2,500

Cash Bonus

$ 2,500

Vesting period

2 years

Grant date fair value | $ / shares

$ 17.56

Shares granted | shares

150,000

Shares vested in period | shares

50,000

50,000

Shares vested on grant date | shares

50,000

Consultancy Agreement CEO Services January 2013 | Azara Services S.A. on 19 August 2014

Related Party Transaction [Line Items]

Cash Bonus

$ 2,500

Vesting period

3 years

Grant date fair value | $ / shares

$ 18.37

Shares granted | shares

150,000

Shares vested in period | shares

50,000

50,000

50,000

50,000

Consultancy Agreement CEO Services January 2013 | Azara Services S.A. on 30 December 2014

Related Party Transaction [Line Items]

Cash Bonus

$ 4,000

Vesting period

3 years

Grant date fair value | $ / shares

$ 9.46

Shares granted | shares

300,000

Shares vested in period | shares

100,000

100,000

100,000

Dryships Inc.

Related Party Transaction [Line Items]

Unsecured debt to parent company

$ 0

$ 117,219

0

$ 117,219

Interest Received

5,252

$ 0

Dividends paid

29,755

Due from a related party, current

$ 78,306

$ 0

$ 78,306

$ 0

Dryships Inc. | Related party

Related Party Transaction [Line Items]

Unsecured debt to parent company

$ 120,000

Debt Instrument - variable rate basis

LIBOR

LIBOR

Payment terms

The Company has the option to exchange this loan for its common shares owned by DryShips at a fixed price per share, provided the DryShips $200,000 Secured Bridge Credit facility has been repaid in full. If such exchange occurs, the margin of the loan will be reduced from inception. The above terms were amended with relevant supplemental agreements on DryShip's $200,000 Secured Bridge Credit facility.

The Company has the option to exchange this loan for its common shares owned by DryShips at a fixed price per share, provided the DryShips $200,000 Secured Bridge Credit facility has been repaid in full. If such exchange occurs, the margin of the loan will be reduced from inception. The above terms were amended with relevant supplemental agreements on DryShip's $200,000 Secured Bridge Credit facility.

Maturity Date Of Loan

May 2,016

May 2,016

Dryships Inc. | Exchange of debt instrument with shares

Related Party Transaction [Line Items]

Ownership in Ocean Rig | shares

4,444,444

Unsecured debt to parent company

$ 40,000

Number of shares pledged as security | shares

20,555,556

Dryships Inc. | Exchange of $120.0 million Exchangeable Promissory Note

Related Party Transaction [Line Items]

Ownership in Ocean Rig | shares

17,777,778

Due from a related party, current

$ 80,000

Other Current Assets (Table) (D

Other Current Assets (Table) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Other Current Assets [Abstract]
Inventories	$ 10,534	$ 6,609
Deferred mobilization expenses	62,351	66,169
Prepayments and advances	25,371	22,880
Other	6,411	5,850
Total	$ 104,667	$ 101,508

Advances for drillships under38

Advances for drillships under construction and related costs (Table) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
Advances For Drillships Under Construction And Related Costs [Abstract]
Balance at beginning of year	$ 622,507
Advances for drillships under construction and related costs	468,687
Drillships delivered	(727,688)
Balance at end of year	$ 363,506

Advances for drillships under39

Advances for drillships under construction and related costs (Details) - USD ($) $ in Thousands	4 Months Ended	6 Months Ended
	Apr. 27, 2015	Jun. 30, 2015	Dec. 31, 2014	Aug. 30, 2013
Advances for rigs and drillships under construction		$ 363,506	$ 622,507
Ocean Rig Apollo
Drillships delivery		March 5, 2015
Ocean Rig Santorini
Price per drillship				$ 644,000
Advances for rigs and drillships under construction				$ 137,000
Drillships delivery		June 2,016
7th generation Drillship
Price per drillship		$ 743,000
Advances for rigs and drillships under construction		$ 108,400
Drillships delivery		Q1 2018
Project costs increase per each drillship	$ 15,000
7th generation Drillship
Price per drillship		$ 743,000
Advances for rigs and drillships under construction		$ 76,600
Drillships delivery		Q1 2019
Project costs increase per each drillship	$ 15,000

Drilling rigs, drillships, ma40

Drilling rigs, drillships, machinery and equipment, net (Table) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
Property, Plant and Equipment [Line Items]
Balance	$ 6,207,633
Balance	6,853,508
Drilling rigs, drillships, machinery and equipment | Cost
Property, Plant and Equipment [Line Items]
Balance	7,331,372
Additions / Transfer from drillships under construction	821,784
Balance	8,153,156
Drilling rigs, drillships, machinery and equipment | Accumulated Depreciation
Property, Plant and Equipment [Line Items]
Balance	(1,123,739)
Depreciation	(175,909)
Balance	(1,299,648)
Drilling rigs, drillships, machinery and equipment | Net Book Value
Property, Plant and Equipment [Line Items]
Balance	6,207,633
Additions / Transfer from drillships under construction	821,784
Depreciation	(175,909)
Balance	$ 6,853,508

Other non-current assets (Tab41

Other non-current assets (Table) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Other non-current assets [Abstract]
Deferred mobilization expenses	$ 30,536	$ 43,327
Intangible assets, net	4,010	4,732
Prepaid investments	23,631	57,910
Total	$ 58,177	$ 105,969

Long-term Debt (Table) (Details

Long-term Debt (Table) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Less: Deferred financing costs	$ (97,623)	$ (100,550)
Total debt	4,811,651	4,372,450
Less: Current portion	(56,982)	(19,858)
Long-term portion	4,754,669	4,352,592
1.3 billion Senior Secured Term Loan B Facility
Debt Instrument [Line Items]
Secured Facility	1,290,250	1,296,750
1.9 billion Secured Term Loan B Facility
Debt Instrument [Line Items]
Secured Facility	1,866,750	1,876,250
$462 million Senior Secured Credit Facility
Debt Instrument [Line Items]
Secured Facility	452,274	0
7.25% Senior Unsecured Notes
Debt Instrument [Line Items]
Senior Notes	500,000	500,000
6.5% Senior Secured Notes
Debt Instrument [Line Items]
Senior Notes	$ 800,000	$ 800,000

Long-term Debt - Principal Paym

Long-term Debt - Principal Payments (Table) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Long-term Debt, by Maturity [Abstract]
June 30, 2016	$ 70,905
June 30, 2017	70,905
June 30, 2018	870,905
June 30, 2019	570,905
June 30, 2020	328,654
June 30, 2021 and thereafter	2,997,000
Total principal payments	4,909,274
Less: Deferred financing costs	(97,623)	$ (100,550)
Total debt	$ 4,811,651	$ 4,372,450

Long-term Debt - Senior Notes (

Long-term Debt - Senior Notes (Details) - USD ($) $ in Thousands	3 Months Ended	4 Months Ended	9 Months Ended
	Mar. 26, 2014	May. 13, 2014	Sep. 20, 2012	Oct. 01, 2016	Oct. 01, 2015
Debt Instrument [Line Items]
Redemption price of senior note as a percentage of principal amount	101.00%
Senior Secured Credit Facility Repaid
Debt Instrument [Line Items]
Principal amount			$ 1,040,000
9.5% Senior Unsecured Notes due 2016
Debt Instrument [Line Items]
Redemption price of senior note as a percentage of principal amount	105.375%	104.50%
Repayment of debt	$ 462,300	$ 37,700
6.5% Senior Secured Notes due 2017
Debt Instrument [Line Items]
Principal amount			$ 800,000
Senior notes interest rate			6.50%
Proceeds from issuance of secured debt			$ 781,965
Redemption price of senior note as a percentage of principal amount			101.00%	100.00%	103.25%
7.25% Senior Unsecured Notes due 2019
Debt Instrument [Line Items]
Principal amount	$ 500,000
Senior notes interest rate	7.25%
Proceeds from issuance of senior unsecured notes	$ 493,625

Long-term Debt - Term bank loan

Long-term Debt - Term bank loans/ Credit facilities (Details) - USD ($) $ in Thousands	2 Months Ended	6 Months Ended		7 Months Ended
	Mar. 03, 2015	Jun. 30, 2015	Jun. 30, 2014	Jul. 25, 2014	Feb. 13, 2015	Dec. 31, 2014	Feb. 07, 2014
Debt Instrument [Line Items]
Payment of financing costs		$ 6,175	$ 4,273
Long-term Debt		$ 4,811,651				$ 4,372,450
1.3 billion Senior Secured Term Loan B Facility
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 1,300,000
Maturity Date Of Loan		July 25, 2021
Amortization And Write Off Of Financing Costs				19,797
Release of restricted cash				$ 75,000
1.9 billion Secured Term Loan B Facility
Debt Instrument [Line Items]
Maturity Date Of Loan		Q3 2020
Line of Credit Facility, Maximum Borrowing Capacity							$ 1,900,000
$462 million Senior Secured Credit Facility
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 475,000
Line of credit faciliy amount drawn down	$ 462,000
Restricted cash pledged as security	$ 10,000
Debt Instrument Maturity Date Description		5 years
Variable rate basis		LIBOR

Long-term Debt - Additional Inf

Long-term Debt - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Debt [Abstract]
Capitalized interest	$ 14,378	$ 18,037
Interest expense	$ 149,804	$ 139,241
Weighted average interest rate	6.28%	6.27%
Available amount of loan facility	$ 0

Financial Instruments and Fai47

Financial Instruments and Fair Value Measurements - Derivatives Not Designated as Hedging Instruments in the Balance Sheet (Table) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Derivative [Line Items]
Financial Instruments non-current assets	$ 4,660	$ 10,101
Financial Instruments current liabilities	(15,284)	(17,881)
Financial Instruments-non current liabilities	(5,284)	(8,617)
Total derivatives	(15,908)	(16,397)
Interest rate swaps
Derivative [Line Items]
Financial Instruments non-current assets	4,660	10,101
Financial Instruments current liabilities	(15,284)	(17,881)
Financial Instruments-non current liabilities	$ (5,284)	$ (8,617)

Financial Instruments and Fai48

Financial Instruments and Fair Value Measurements - Derivatives Not Designated as Hedging Instruments on the Consolidated Statement of Operations (Table) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Derivative [Line Items]
Loss on interest rate swaps, net	$ (10,061)	$ (10,167)
Total	(10,061)	(10,167)
Interest rate swaps
Derivative [Line Items]
Loss on interest rate swaps, net	$ (10,061)	$ (10,167)

Financial Instruments and Fai49

Financial Instruments and Fair Value Measurements - Measured on a Recurring Basis (Table) (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps-asset position	$ 4,660	$ 10,101
Interest rate swaps-liability position	(20,568)
Total	(15,908)	$ (16,397)
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps-asset position	4,660
Interest rate swaps-liability position	(20,568)
Total	$ (15,908)

Financial Instruments and Fai50

Financial Instruments and Fair Value Measurements - Interest Rate Swaps (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)
Interest rate swaps and cap floor agreements:
Reclassification of losses on previously designated cash flow hedges associated with capitalized interest to depreciation and amortization	$ (516)	$ (517)
Estimated net amount of existing losses to be reclassified within twelve months	$ 1,035
Interest Rate Swaps
Interest rate swaps and cap floor agreements:
Number of interest rate swap held	7
Notional amount of interest rate swaps	$ 1,700,000

Financial Instruments and Fai51

Financial Instruments and Fair Value Measurements - Senior Notes and Credit Facilities (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
6.5% Senior Secured Notes
Senior notes and credit facilities:
Debt instrument - carrying value, net of financing fees	$ 790,179	$ 788,224
7.25% Senior Unsecured Notes
Senior notes and credit facilities:
Debt instrument - carrying value, net of financing fees	492,995	492,214
$120.0 million Loan from Affiliate
Senior notes and credit facilities:
Debt instrument - carrying value, net of financing fees	78,306
Significant Other Observable Inputs (Level 2) | 6.5% Senior Secured Notes
Senior notes and credit facilities:
Debt instrument - estimated fair value	702,000	666,000
Significant Other Observable Inputs (Level 2) | 7.25% Senior Unsecured Notes
Senior notes and credit facilities:
Debt instrument - estimated fair value	422,500	380,000
1.3 billion Senior Secured Term Loan B Facility
Senior notes and credit facilities:
Debt instrument - carrying value, net of financing fees	1,261,911	1,266,341
1.3 billion Senior Secured Term Loan B Facility | Significant Other Observable Inputs (Level 2)
Senior notes and credit facilities:
Debt instrument - estimated fair value	1,374,483
1.9 billion Secured Term Loan B Facility
Senior notes and credit facilities:
Debt instrument - carrying value, net of financing fees	1,820,124	$ 1,825,671
1.9 billion Secured Term Loan B Facility | Significant Other Observable Inputs (Level 2)
Senior notes and credit facilities:
Debt instrument - estimated fair value	$ 2,013,802

Common Stock and Additional P52

Common Stock and Additional Paid-in Capital - Non-Vested Shares (Table) (Details) - $ / shares	6 Months Ended
	Jun. 30, 2015
Number of non-vested shares
Balance	612,798
Granted	173,200
Forfeited	(10,000)
Balance	775,998
Weighted average grant date fair value per non vested shares
Balance	$ 13.49
Granted	7.24
Forfeited	14.79
Balance	$ 12.08

Common Stock and Additional P53

Common Stock and Additional Paid-in Capital -Dividends - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Thousands

2 Months Ended

3 Months Ended

4 Months Ended

5 Months Ended

6 Months Ended

8 Months Ended

10 Months Ended

12 Months Ended

Feb. 14, 2012

Mar. 31, 2014

Apr. 29, 2015

May. 15, 2012

Jun. 08, 2015

May. 16, 2013

Jun. 30, 2015

Jun. 30, 2014

Aug. 19, 2014

Aug. 20, 2013

Nov. 04, 2014

Dec. 31, 2014

Dec. 30, 2014

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Aug. 20, 2015

Aug. 20, 2014

Mar. 21, 2012

Number of common shares offered in a public offering

28,571,428

Common stock par value

$ 0.01

$ 0.01

$ 0.01

Share price

$ 7

Net proceeds from common stock issuance

$ 194,134

$ 192,707

$ 0

Shares granted

173,200

Number of vested shares

294,352

Number of forfeited shares

181,626

171,626

Unrecognized compensation cost

$ 5,012

$ 6,235

Expected period of recognition for unrecognized compensation costs

2 years

Compensation cost allocated in "General and administrative expenses"

2,381

1,655

$ 3,576

Shares authorized under Equity Plan

2,000,000

Chairman, President and Chief Executive Officer

Number of common shares offered in a public offering

1,428,571

Common stock value purchased

$ 10,000

Amortization of stock based compensation

$ 1,598

$ 653

Officer

Shares granted

4,500

Vesting period

3 years

Grant date fair value

$ 15.92

Officers and key employees of Ocean Rig AS

Shares granted

112,950

Grant date fair value

$ 16.5

Expected period of recognition for unrecognized compensation costs

3 years

Employees | Stock Compensation Plan

Shares granted

161,200

173,200

28,200

192,400

45,450

Vesting period

3 years

3 years

3 years

3 years

3 years

Grant date fair value

$ 17.79

$ 7.24

$ 15.92

$ 16.9

$ 12.6

Consultancy Agreement CEO Services January 2013 | Azara Services S.A.

Shares granted

150,000

Vesting period

2 years

Grant date fair value

$ 17.56

Vested In Period

50,000

50,000

Shares vested on grant date

50,000

Consultancy Agreement CEO Services January 2013 | Azara Services S.A. on 19 August 2014

Shares granted

150,000

Vesting period

3 years

Grant date fair value

$ 18.37

Vested In Period

50,000

50,000

50,000

Consultancy Agreement CEO Services January 2013 | Azara Services S.A. on 30 December 2014

Shares granted

300,000

Vesting period

3 years

Grant date fair value

$ 9.46

Vested In Period

100,000

100,000

100,000

Interest and Finance costs (T54

Interest and Finance costs (Table) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Interest and Finance Costs [Abstract]
Interest on long-term debt, including amortization of financing costs	$ 149,804	$ 139,241
Capitalized borrowing costs	(14,378)	(18,037)
Premium on 9.5% Senior Unsecured Notes (Note 8)	0	26,546
Discount on receivable from drilling contract	5,419	0
Commissions, commitment fees and other financial expenses	1,142	2,733
Total	$ 141,987	$ 150,483

Earnings per share (Table) (Det

Earnings per share (Table) (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Earnings per share :
Net income	$ 116,013	$ 68,050
Less: Non-vested common stock dividends declared and undistributed earnings	(477)	(194)
Income/ Loss (numerator)	$ 115,536	$ 67,856
Weighted-average number of outstanding shares (denominator)	134,927,763	131,837,490
Basic and diluted EPS Income attributable to common stockholders	$ 0.86	$ 0.51

Commitments and Contingencies -

Commitments and Contingencies - Purchase Obligations (Table) (Details) $ in Thousands	Jun. 30, 2015USD ($)
Unrecorded Unconditional Purchase Obligation [Line Items]
2,016	$ 413,000
2,017	157,200
2,018	464,000
2,019	495,800
Total	1,530,000
Drillships building contracts
Unrecorded Unconditional Purchase Obligation [Line Items]
2,016	413,000
2,017	157,200
2,018	464,000
2,019	495,800
Total	$ 1,530,000