Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 27, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Vantage Drilling International | ||
Entity Central Index Key | 0001465872 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 13,229,280 | ||
Entity Public Float | $ 52,713,000 | ||
Entity File Number | 333-159299 | ||
Entity Tax Identification Number | 98-1372204 | ||
Entity Address, Address Line One | 777 Post Oak Boulevard | ||
Entity Address, Address Line Two | Suite 440 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77056 | ||
City Area Code | 281 | ||
Local Phone Number | 404-4700 | ||
Document Annual Report | true | ||
Entity Incorporation, State or Country Code | E9 | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Firm ID | 243 | ||
Auditor Name | BDO USA, LLP | ||
Auditor Location | Houston, Texas |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 74,026 | $ 73,343 |
Restricted cash | 16,450 | 1,621 |
Trade receivables, net of allowance for credit losses of $5.0 million each year | 62,776 | 37,527 |
Materials and supplies | 41,250 | 37,580 |
Assets held for sale | 117,117 | |
Prepaid expenses and other current assets | 25,621 | 18,309 |
Total current assets | 220,123 | 285,497 |
Property and equipment | ||
Property and equipment | 647,909 | 645,622 |
Accumulated depreciation | (309,453) | (266,018) |
Property and equipment, net | 338,456 | 379,604 |
Operating lease ROU assets | 1,648 | 2,450 |
Other assets | 18,334 | 31,843 |
Total assets | 578,561 | 699,394 |
Current liabilities | ||
Accounts payable | 57,775 | 31,420 |
Other current liabilities | 66,179 | 31,533 |
Liabilities held for sale | 6,720 | |
Total current liabilities | 123,954 | 69,673 |
Long-term debt, net of discount and financing costs of $773 and $3,142 | 179,227 | 346,858 |
Other long-term liabilities | 12,881 | 17,012 |
Commitments and contingencies (see Note 8) | ||
Shareholders' equity | ||
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 shares issued and outstanding each year | 13 | 13 |
Additional paid-in capital | 633,863 | 633,847 |
Accumulated deficit | (373,147) | (369,792) |
Controlling interest shareholders' equity | 260,729 | 264,068 |
Noncontrolling interests | 1,770 | 1,783 |
Total equity | 262,499 | 265,851 |
Total liabilities and shareholders’ equity | $ 578,561 | $ 699,394 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 5,000 | $ 5,000 |
Long-term debt, discount and financing costs | $ 773 | $ 3,142 |
Ordinary shares, par value | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 |
Ordinary shares, shares issued | 13,115,026 | 13,115,026 |
Ordinary shares, shares outstanding | 13,115,026 | 13,115,026 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Total revenue | $ 278,716 | $ 158,420 | $ 126,862 |
Operating costs and expenses | |||
Operating costs | 234,832 | 150,668 | 149,084 |
General and administrative | 23,009 | 20,539 | 21,022 |
Depreciation | 44,428 | 56,242 | 69,216 |
Gain on EDC Sale | (61,409) | 0 | 0 |
Loss on impairment | 128,876 | ||
Total operating costs and expenses | 240,860 | 227,449 | 368,198 |
Income (Loss) from operations | 37,856 | (69,029) | (241,336) |
Other income (expense) | |||
Interest income | 1,108 | 124 | 871 |
Interest expense and other financing charges | (34,351) | (34,034) | (34,041) |
Other, net | (3,668) | (2,171) | 2,646 |
Total other expense | (36,911) | (36,081) | (30,524) |
Income (loss) before income taxes | 945 | (105,110) | (271,860) |
Income tax provision | 4,313 | 5,141 | 4,897 |
Net loss | (3,368) | (110,251) | (276,757) |
Net loss attributable to noncontrolling interests | (13) | (114) | (38) |
Net loss attributable to shareholders | $ (3,355) | $ (110,137) | $ (276,719) |
Loss per share | |||
Loss per share, basic | $ (0.26) | $ (8.40) | $ (21.10) |
Loss per share, diluted | $ (0.26) | $ (8.40) | $ (21.10) |
Contract Drilling Services | |||
Revenue | |||
Total revenue | $ 154,116 | $ 131,703 | $ 112,013 |
Management Fees | |||
Revenue | |||
Total revenue | 10,834 | 2,351 | 798 |
Reimbursables and Other | |||
Revenue | |||
Total revenue | $ 113,766 | $ 24,366 | $ 14,051 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Accumulated Earnings (Deficit) | Non-Controlling Interests |
Beginning Balance at Dec. 31, 2019 | $ 653,091 | $ 13 | $ 634,770 | $ 17,064 | $ 1,244 |
Beginning Balance (in shares) at Dec. 31, 2019 | 13,115,000 | ||||
Share-based compensation | 1,615 | 1,615 | |||
Share-based compensation - dividend equivalents | (2,204) | (2,204) | |||
Net loss | (276,757) | (276,719) | (38) | ||
Ending Balance at Dec. 31, 2020 | 375,745 | $ 13 | 634,181 | (259,655) | 1,206 |
Ending Balance (in shares) at Dec. 31, 2020 | 13,115,000 | ||||
Share-based compensation | 395 | 395 | |||
Share-based compensation - dividend equivalents | (729) | (729) | |||
Contributions from holders of noncontrolling interests | 691 | 691 | |||
Net loss | (110,251) | (110,137) | (114) | ||
Ending Balance at Dec. 31, 2021 | $ 265,851 | $ 13 | 633,847 | (369,792) | 1,783 |
Ending Balance (in shares) at Dec. 31, 2021 | 13,115,026 | 13,115,000 | |||
Share-based compensation | $ 79 | 79 | |||
Share-based compensation - dividend equivalents | (63) | (63) | |||
Net loss | (3,368) | (3,355) | (13) | ||
Ending Balance at Dec. 31, 2022 | $ 262,499 | $ 13 | $ 633,863 | $ (373,147) | $ 1,770 |
Ending Balance (in shares) at Dec. 31, 2022 | 13,115,026 | 13,115,000 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | $ (3,368) | $ (110,251) | $ (276,757) |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Depreciation expense | 44,428 | 56,242 | 69,216 |
Amortization of debt financing costs | 1,639 | 1,639 | 1,640 |
Share-based compensation expense | 79 | 395 | 1,615 |
Loss on debt extinguishment | 730 | 0 | 0 |
Deferred income tax expense | 708 | 369 | 221 |
(Gain)/loss on disposal of assets | (1,600) | (2,640) | 52 |
Gain on EDC Sale | (61,409) | 0 | 0 |
Gain on settlement of restructuring agreement | 0 | 0 | (2,278) |
Loss on impairment | 0 | 0 | 128,876 |
Changes in operating assets and liabilities: | |||
Trade receivables, net | (42,241) | (20,116) | 21,787 |
Materials and supplies | (4,155) | (1,624) | (1,852) |
Prepaid expenses and other current assets | (9,878) | (3,306) | (1,237) |
Other assets | (22,461) | (12,312) | 3,716 |
Accounts payable | 44,469 | 10,094 | (23,683) |
Other current liabilities and other long-term liabilities | 34,185 | 11,119 | (6,618) |
Net cash used in operating activities | (18,874) | (70,391) | (85,302) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Additions to property and equipment | (10,277) | (7,045) | (3,155) |
Net proceeds from EDC Sale | 198,700 | 0 | 0 |
Net proceeds from sale of assets | 3,100 | 0 | 0 |
Net proceeds from sale of Titanium Explorer | 0 | 13,557 | 0 |
Net cash provided by (used in) investing activities | 191,523 | 6,512 | (3,155) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repayment of long-term debt | (170,000) | 0 | 0 |
Net cash used in financing activities | (170,000) | 0 | 0 |
Net increase (decrease) in unrestricted and restricted cash and cash equivalents | 2,649 | (63,879) | (88,457) |
Unrestricted and restricted cash and cash equivalents—beginning of period | 90,608 | 154,487 | 242,944 |
Unrestricted and restricted cash and cash equivalents—end of period | 93,257 | 90,608 | 154,487 |
Cash paid for: | |||
Interest | 34,101 | 32,390 | 32,388 |
Income taxes (net of refunds) | $ 6,609 | 3,393 | 7,780 |
Non-cash investing and financing transactions: | |||
Conversion of ADES Shareholder loan to Additional paid-in-capital | $ 691 | ||
Reallocation of Soehanah jackup rig acquisition value from equipment to materials and supplies | $ 1,019 |
Organization and Recent Events
Organization and Recent Events | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Recent Events | 1. Organization and Recent Events Vantage Drilling International, a Cayman Islands exempted company, together with its consolidated subsidiaries (collectively the “Company”), is an international offshore drilling company focused on operating a fleet of modern, high specification drilling units. Our principal business is to contract drilling units, related equipment and work crews, primarily on a dayrate basis to drill oil and gas wells for our customers. Through our fleet of drilling units, we are a provider of offshore contract drilling services to major, national and independent oil and gas companies, focused on international markets. Additionally, for third-party owned drilling units, we provide operational and marketing services for operating and stacked rigs, construction supervision services for rigs that are under construction, and preservation management services for rigs that are stacked. Redemption of the 9.25% First Lien Notes On November 22, 2022, the Company issued a notice of partial redemption to the then existing recordholders (the “Notice of Partial Redemption”) of the 9.25% First Lien Notes. On February 3, 2023, the Company subsequently issued a notice of full conditional redemption to the then existing recordholders (the “Notice of Full Conditional Redemption”) of the 9.25% First Lien Notes. See “ Note 5. Debt ” of these “Notes to Consolidated Financial Statements” for further information regarding the Notice of Partial Redemption and Notice of Full Conditional Redemption. 9.50% First Lien Notes Offering On February 14, 2023, the Company priced an offering of $ 200.0 million in aggregate principal amount of the 9.50% First Lien Notes and entered into a purchase agreement with several investors pursuant to which the Company agreed to sell the 9.50% First Lien Notes (the “9.50% First Lien Notes Offering”) to the purchasers in reliance on an exemption from registration provided by Section 4(a)(2), Rule 144A and/or Regulation S of the Securities Act. On March 1, 2023, the Company closed on the sale of the 9.50% First Lien Notes Offering. See “ Note 5. Debt ” of the “Notes to Consolidated Financial Statements” for further information regarding the 9.50% First Lien Notes Offering. Share Purchase Agreement to Sell EDC to ADES Arabia Holding On December 6, 2021, VHI, a wholly owned subsidiary of the Company, entered into a certain Share Purchase Agreement (as amended, the “EDC Purchase Agreement”) with ADES Arabia Holding (“ADES Arabia”), which wholly owns ADES, pursuant to which VHI agreed to sell to ADES Arabia all of the issued and outstanding equity of VHI’s wholly owned subsidiary, EDC (the “EDC Sale”). EDC is the owner of the following jackup rigs, each of which are currently operating in Qatar and were included within our Drilling Services segment: the Emerald Driller ; the Sapphire Driller ; and the Aquamarine Driller . The EDC Purchase Agreement became effective on December 20, 2021 and the transactions contemplated under the EDC Purchase Agreement closed on May 27, 2022 (the “EDC Closing Date”). On the EDC Closing Date, VHI received $ 170.0 million as purchase price consideration and $ 30.0 million in certain contract preparation expense reimbursement. In accordance with the terms of the EDC Purchase Agreement, an additional $ 4.0 million of proceeds was retained in an escrow fund (the “Adjustment Escrow Fund”) as security for potential purchase price adjustments. During the third quarter of 2022, the entirety of the Adjustment Escrow Fund was released to ADES Arabia and a payment of $ 1.3 million was paid by VHI to ADES Arabia to finalize the purchase price adjustments pursuant to the EDC Purchase Agreement. As a result of these transactions, VHI recognized a net gain of approximately $ 61.4 million . Simultaneously with the EDC Sale, certain subsidiaries of the Company and ADES entered into three separate support services agreements (collectively, the "EDC Support Services Agreements"), pursuant to which a subsidiary of the Company agreed to provide, in exchange for customary fees and reimbursements, support services to EDC with respect of the Emerald Driller , Sapphire Driller and Aquamarine Driller for a three-year term. The Company and ADES also entered into an agreement on December 6, 2021 (the "Collaboration Agreement") to pursue a global strategic alliance to leverage both the EDC Support Services Agreement and ADVantage, the parties’ existing joint venture in Egypt. Pursuant to the Collaboration Agreement, the parties agreed to collaborate on exploring future commercial and operational opportunities. Tungsten Explorer Contract Award On June 9, 2022, a subsidiary of VDI entered into a drilling services contract with a subsidiary of TotalEnergies (the “TotalEnergies Contract”) in respect of VDI’s ultra-deepwater drillship, the Tungsten Explorer . The TotalEnergies Contract contains a minimum term of 225 days, which commenced in the first quarter of 2023. Contractual Arrangements with Advanced Energy Services, S.A.E. On September 22, 2022, three wholly owned subsidiaries of VHI entered into several related agreements with Advanced Energy Services, S.A.E., a subsidiary of ADES (“ADES SAE” and together with ADES Arabia, the “ADES Group”), including a (i) secondment agreement, (ii) services agreement and (iii) bareboat charter agreement, in each case to support a drilling campaign that will utilize the Topaz Driller jackup rig (collectively, the “ADES Ancillary Agreements”). The ADES Ancillary Agreements generally provide for: (a) reimbursement of loaned employee personnel costs plus a service fee; (b) a fixed fee based on days the rig is drilling; (c) a variable fee based on a percentage of gross margin generated on a monthly basis; and (d) reimbursement for purchases of supplies, equipment and personnel services, and other services provided at the request of ADES SAE. Fees earned in connection with the ADES Ancillary Agreements are included in “Reimbursable and other” in our Consolidated Statement of Operations within the Drilling Services segment as reported in “ Note 10. Business Segment and Significant Customer Information ” of these “Notes to Consolidated Financial Statements”. Ongoing Impact of the COVID-19 Pandemic The global spread of COVID-19, including its highly contagious variants and sub-lineages, continues to pose significant risks and challenges worldwide, and has caused and continues to cause widespread illness and significant loss of life, leading governments across the world to impose and re-impose severely stringent and extensive limitations on movement and human interaction, with certain countries, including those where we maintain significant operations and derive material revenue, implementing quarantine, testing and vaccination requirements. These governmental reactions to the COVID-19 pandemic, as well as changes to and extensions of such approaches, have led to, and continue to result in, uncertain and volatile economic activity worldwide, including within the oil and gas industry and the regions and countries in which we operate. The recent easing of COVID-19 related restrictions in China (including travel to, from and within China), along with the relatively low immunity rates within the population more generally, could contribute to an increase in the overall rate of infections from (and lead to further variants of) COVID-19. The extent, degree and impact of such increases and the prevalence of new and contagious variants are unknown at this time, but any adverse changes arising from COVID-19 could have a material and adverse effect on our operations and financial condition. While the Company has previously managed, and continues to actively manage, the business in an attempt to mitigate any ongoing and material impact from the spread of COVID-19, management anticipates that our industry, and the world at large, will need to continue to operate in, and further adapt, to the current environment for the foreseeable future. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies Basis of Consolidation: The accompanying consolidated financial information as of December 31, 2022 and 2021, and for the years ended December 31, 2022, 2021 and 2020, have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the SEC and include our accounts and those of our majority owned subsidiaries and VIEs discussed below. All significant intercompany transactions and accounts have been eliminated. Certain previously reported amounts included in “Reimbursables and other” have been reclassified to “Management fees” on the Consolidated Statement of Operations to conform to the current period presentation. In addition to the consolidation of our majority owned subsidiaries, we also consolidate VIEs when we are determined to be the primary beneficiary of a VIE. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our determination of the primary beneficiary of a VIE considers all relationships between us and the VIE. ADVantage is a joint venture company formed to operate deepwater drilling rigs in Egypt. We determined that ADVantage met the criteria of a VIE for accounting purposes because its equity at risk was insufficient to permit it to carry on its activities without additional subordinated financial support from us. We also determined that we are the primary beneficiary for accounting purposes since we are entitled to use ADVantage for deepwater drilling contract opportunities rejected by ADES, and have the (a) power to direct the operating activities associated with the deepwater drilling rigs, which are the activities that most significantly impact the entity’s economic performance, and (b) obligation to absorb losses or the right to receive a majority of the benefits that could be potentially significant to the VIE. As a result, we consolidate ADVantage in our consolidated financial statements, we eliminate intercompany transactions and we present the interests that are not owned by us as “Noncontrolling interests” in our Consolidated Balance Sheets. The carrying amount associated with ADVantage was as follows: December 31, 2022 December 31, 2021 (unaudited, in thousands) Current assets $ 11,383 $ 8,099 Non-current assets 1,590 212 Current liabilities 4,749 2,838 Non-current liabilities 4,637 1,859 Net carrying amount $ 3,587 $ 3,614 As ADVantage is a majority owned subsidiary of the Company, it serves as a guarantor under the First Lien Indenture related to the 9.25% First Lien Notes and the 9.50% First Lien Notes. The 9.25% First Lien Notes and 9.50% First Lien Notes are secured by a first priority lien on all of the assets of ADVantage, subject to certain exceptions. Creditors’ recourse against ADVantage for liabilities of ADVantage is limited to the assets of ADVantage. See “ Note 9. Supplemental Financial Information ” of these “Notes to Consolidated Financial Statements” for additional information regarding related party transactions associated with this joint venture. Use of Estimates: The preparation of financial statements in accordance with U.S. GAAP requires our 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 revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to property and equipment, income taxes, insurance, employee benefits and contingent liabilities. Actual results could differ from these estimates. 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. Materials and Supplies: Consists of materials, spare parts, consumables and related supplies for our drilling rigs. We record these materials and supplies at their average cost. Property and Equipment: Consists 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 35 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 balance sheet and the resulting gain or loss is included in “Operating costs” or “General and administrative” expenses on the Consolidated Statement of Operations, depending on the nature of the asset. We recognized net gain of approximately $ 1.6 million and $ 2.6 million, and a loss of approximately $ 0.1 million, for the years ended December 31, 2022, 2021 and 2020, respectively, related to the sale or retirement of assets. Property and equipment held-for-sale is recorded at the lower of net book value or fair value less cost to sell. 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 be computed as the excess of the asset’s carrying value over the estimated fair value. Estimates of future cash flows require us to make long-term forecasts of our future revenues and operating costs with regard to the assets subject to review. Our business, including the utilization rates and dayrates we receive for our drilling rigs, depends on the level of our customers’ expenditures for oil and gas exploration, development and production expenditures. Oil and gas prices and customers’ expectations of potential changes in these prices, the general outlook for worldwide economic growth, political and social stability in the major oil and gas producing basins of the world, availability of credit and changes in governmental laws and regulations, among many other factors, significantly affect our customers’ levels of expenditures. Sustained declines in or persistent depressed levels of oil and gas prices, worldwide rig counts and utilization, reduced access to credit markets, reduced or depressed sale prices of comparably equipped jackups and drillships and any other significant adverse economic news could require us to evaluate the realization of our drilling rigs. As a result of our impairment testing, we determined that the carrying amount of our longer-term warm stacked drillship, the Titanium Explorer , was impaired and we subsequently recognized a non-cash loss on impairment of $ 128.9 million as of September 30, 2020. The Company performed a recoverability analysis for the years ended December 31, 2022 and 2021 , and no impairment loss was recorded. Interest costs and the amortization of debt financing costs related to the financings of our drilling rigs are capitalized as part of the cost while they are under construction and prior to the commencement of each vessel’s first contract. We did no t capitalize any interest for the reported periods. 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. Debt issuance costs related to a recognized debt liability are presented in the consolidated balance sheets as a direct deduction from the carrying amount of that debt liability. 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. Revenue Recognition : See “ Note 3. Revenue from Contracts with Customers ” of these “Notes to Consolidated Financial Statements” for further information. Income Taxes: Income taxes are provided for based upon the tax laws and rates in effect in the countries in which our 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 tax-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. We do not establish deferred tax liabilities for certain of our foreign earnings that we intend to indefinitely reinvest to finance foreign activities. 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. Concentrations 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. 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. Payment terms on customer invoices typically range from 30 to 45 days. Outstanding receivables beyond payment terms are promptly investigated and discussed with the specific customer. Four customers accounted for approximately 30 %, 25 %, 17 % and 14 % of our consolidated trade receivables, net for the year ended December 31, 2022 and three customers accounted for approximately 19 %, 18 % and 10 % of our consolidated trade receivables, net for the year ended December 31, 2021. Credit Losses – Accounts Receivable: The allowance for credit losses is based on the Company’s assessment of the collectability of customer accounts. Current estimates of expected credit losses consider factors such as the historical experience and credit quality of our customers. The Company considers historical loss information as the most reasonable basis on which to determine expected credit losses unless current or forecasted future conditions for customers or customer groups indicate that risk characteristics have changed. We also considered the impact of the COVID-19 pandemic and the associated oil price and market share volatility on our allowance for credit losses on our current estimate of credit losses as of December 31, 2022 . The allowance for credit losses on our trade receivables was $ 5.0 million as of each of December 31, 2022 and 2021 . This amount represents a customer’s decision not to pay us for days impacted by what we believe were force majeure and other events for which we would still be entitled to receive payment under our contract with such customer. We disagree with their decision and are evaluating remedies, if any, under the contract. Earnings (loss) per Share: We compute basic and diluted EPS in accordance with the two-class method. We include restricted stock units granted to employees that contain non-forfeitable rights to dividends as such grants are considered participating securities. Basic earnings (loss) per share are based on the weighted average number of Ordinary Shares outstanding during the applicable period. Diluted EPS 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 EPS computations: Year Ended December 31, 2022 2021 2020 (In thousands) Weighted average Ordinary Shares outstanding for basic EPS 13,115 13,115 13,115 Restricted share equity awards — — — Adjusted weighted average Ordinary Shares outstanding for diluted EPS 13,115 13,115 13,115 The following sets forth the number of shares excluded from diluted EPS computations: Year Ended December 31, 2022 2021 2020 (In thousands) Restricted share equity awards 221 218 200 Future potentially dilutive Ordinary Shares excluded from diluted EPS 221 218 200 Functional Currency: We consider USD to be the functional currency for all of our operations since the majority of our revenues and expenditures are denominated in USD, which limits our exposure to currency exchange rate fluctuations. We recognize currency exchange rate gains and losses in “Other, net” in our Consolidated Statement of Operations. For the years ended December 31, 2022, 2021 and 2020 , we recognized a net gain of $ 3.7 million, $ 2.2 million and $ 0.4 million, respectively, related to currency exchange rates. Fair Value of Financial Instruments: The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable, and accounts payable. These items are considered Level 1 due to their short-term nature and their market interest rates and are therefore considered a reasonable estimate of fair value. The Company classifies short-term investments within Level 1 in the fair value hierarchy, because quoted prices for identical assets in active markets are used to determine fair value. At December 31, 2022 , the fair value of the 9.25% First Lien Notes was approximately $ 178.2 million based on quoted market prices in a less active market, a Level 2 measurement. See “ Note 5. Debt ” of these “Notes to Consolidated Financial Statements” for additional information on the 9.25% First Lien Notes. Share-based Compensation: TBGs granted under the 2016 Amended MIP vest annually, ratably over four years ; however, accelerated vesting is provided for in the event of a QLE. Otherwise, the settlement of any vested TBGs occurs upon the seventh anniversary of the effective date set forth in each individual award letter. PBGs granted under the 2016 Amended MIP contain vesting eligibility provisions tied to the earlier of a QLE or seven years from the Effective Date. Upon the occurrence of a vesting eligibility event, the number of PBGs that actually vest will be dependent on the achievement of pre-determined TEV targets specified in the grants. Both the TBGs and PBGs were classified as liabilities consistent with the classification of the underlying securities prior to the Conversion. Following the Conversion, outstanding TBGs and PBGs were subject to modification accounting and were re-classified as equity awards. Under the provisions of ASC 718 Compensation – Stock Compensation share-based compensation expense is recognized over the requisite service period from the grant date to the fourth-year vest date for TBGs. For PBGs, expense will be recognized when it is probable that the TEV targets will be met. Once it is probable the performance condition will be met, compensation expense based on the fair value of the PBGs at the conversion date of the Convertible Notes will be recognized for the service period completed to the seventh anniversary of the Effective Date for PBGs. Noncontrolling Interest: Noncontrolling interests represent the equity investments of the minority owner in ADVantage, a joint venture with ADES that we consolidate in our financial statements. Recently Adopted Accounting Standards: No new accounting standards were adopted during the year ended December 31, 2022 . Recently Issued Accounting Standards: There have been no new accounting pronouncements not yet effective that have significance with respect to our consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers The activities that primarily drive the revenue earned in our drilling contracts with customers include (i) providing our drilling rig, work crews, related equipment and services necessary to operate the rig, (ii) delivering the drilling rig by mobilizing to and demobilizing from the drill site, and (iii) performing pre-operating activities, including rig preparation activities and/or equipment modifications required for the contract. The integrated drilling services that we perform under each drilling contract represent a single performance obligation satisfied over time and comprised of a series of distinct time increments, or service periods. We have elected to exclude from the transaction price measurement all taxes assessed by a governmental authority. Dayrate Drilling Revenue. Our drilling contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The dayrate billed to the customer is determined based on varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly increment it relates to within the contract term and therefore, recognized as we perform the daily drilling services. For rigs owned by a third-party that we manage or support, the contracts generally provide for a fixed fee based on various factors, including the status of the rig or a specific duration. In addition, we may earn a marketing fee based on a percentage of the effective dayrate of a drilling contract secured on behalf of the third party and a variable management fee of the gross margin associated with managing an operating rig. For certain contractual arrangements we are considered the principal or agent in such transactions; therefore, we record the associated revenue at the gross or net amounts billed to the customers, respectively. Amortizable Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for (i) the mobilization of equipment and personnel prior to the commencement of drilling services, (ii) the demobilization of equipment and personnel upon contract completion or (iii) postponement fees in consideration for the postponement of a contract until a later date. These activities are not considered to be distinct within the context of the contract and therefore, the associated revenue is allocated to the overall single performance obligation. Mobilization fees received prior to commencement of drilling operations are recorded as a contract liability and amortized on a straight ‑ line basis over the initial contract period. Demobilization fees expected to be received upon contract completion are estimated at contract inception and recognized on a straight-line basis over the initial contract term, with an offset to an accretive contract asset. In many contracts, demobilization fees are contingent upon the occurrence or non-occurrence of a future event and the estimate for such revenue may therefore be constrained. In such cases, this may result in cumulative-effect adjustments to demobilization revenues upon changes in our estimates of future events during the contract term. Postponement fees received that are contingent upon the occurrence or non-occurrence of a future event are recognized on a straight-line basis over the contract term. Fees received for the mobilization or demobilization of equipment and personnel are included in “Contract drilling services” in our Consolidated Statement of Operations. Capital Upgrade/Contract Preparation Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for requested capital upgrades to our drilling rigs or for other contract preparation work. These activities are not considered to be distinct within the context of the contract and therefore, fees received are recorded as a contract liability and amortized to contract drilling revenues on a straight-line basis over the initial contract term. Charter Lease Revenue. In relation to certain bareboat charter agreements where we lease our owned rigs to third parties, we receive a fixed fee based on days the rig is drilling and in certain bareboat charter agreements we receive a variable fee based on a percentage of gross margin generated on a monthly basis. Revenues Related to Reimbursable Expenses. We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request in accordance with a drilling contract or other agreement. We may be considered a principal or an agent in such transactions and therefore, we recognize reimbursable revenues and the corresponding costs either on a gross or net basis, as applicable, as we provide the customer ‑ requested goods and services. Disaggregation of Revenue The following tables present our revenue disaggregated by revenue source for the periods indicated: Year ended December 31, 2022 Jackups Deepwater Managed Consolidated (in thousands) Dayrate revenue $ 42,375 $ 101,351 $ 13,176 $ 156,902 Amortized revenue 2,321 5,462 265 8,048 Charter lease revenue 2,707 — — 2,707 Reimbursable revenue 9,117 15,861 86,081 111,059 Total revenue $ 56,520 $ 122,674 $ 99,522 $ 278,716 Year ended December 31, 2021 Jackups Deepwater Managed Consolidated (in thousands) Dayrate revenue $ 90,614 $ 30,076 $ 2,351 $ 123,041 Amortized revenue 10,491 522 — 11,013 Reimbursable revenue 14,110 1,004 9,252 24,366 Total revenue $ 115,215 $ 31,602 $ 11,603 $ 158,420 Year ended December 31, 2020 Jackups Deepwater Managed Consolidated (in thousands) Dayrate revenue $ 59,624 $ 46,455 $ 798 $ 106,877 Amortized revenue 1,889 4,045 — 5,934 Charter lease revenue 476 — — 476 Reimbursable revenue 7,576 5,582 417 13,575 Total revenue $ 69,565 $ 56,082 $ 1,215 $ 126,862 Dayrate revenue and amortized revenue for “Jackups” and “Deepwater” are included within “Contract drilling services” in our Consolidated Statement of Operations. Dayrate revenue for “Managed” is included within “Contract drilling services” and “Management fees” within our Consolidated Statement of Operations. All other revenue is included within “Reimbursables and other” in our Consolidated Statement of Operations. Accounts Receivable, Contract Liabilities and Contract Costs Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on customer invoices typically range from 30 to 45 days . We recognize contract liabilities, recorded in other “Other current liabilities” and “Other long-term liabilities” on our Consolidated Balance Sheets, for prepayments received from customers and for deferred revenue received for mobilization, contract preparation and capital upgrades. Certain direct and incremental costs incurred for contract preparation, initial mobilization and modifications of contracted rigs represent contract fulfillment costs as they relate directly to a contract, enhance resources that will be used to satisfy our performance obligations in the future and are expected to be recovered. These costs are deferred as a current or noncurrent asset depending on the length of the initial contract term and are amortized on a straight-line basis to operating costs as services are rendered over the initial term of the related drilling contract. Costs incurred for capital upgrades are capitalized and depreciated over the useful life of the asset. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. Costs incurred to mobilize a rig without a contract are expensed as incurred. The following table provides information about contract cost assets and contract revenue liabilities from contracts with customers: December 31, 2022 December 31, 2021 (in thousands) Current contract cost assets $ 7,324 $ 1,405 Noncurrent contract cost assets — 6,832 Noncurrent contract cost assets - held for sale — 4,196 Current contract revenue assets — 1,903 Current contract revenue liabilities 35,085 12,311 Noncurrent contract revenue liabilities — 1,893 Significant changes in contract cost assets and contract revenue liabilities during the year ended December 31, 2022 are as follows: Contract Cost Assets Contract Revenue Assets Contract Revenue Liabilities (in thousands) Balance as of December 31, 2021 $ 12,433 $ 1,903 $ 14,204 Increase due to contractual additions 7,757 — 112,535 Decrease due to disposal of held for sale balances (2) ( 3,895 ) — — Decrease due to recognition ( 8,971 ) ( 1,903 ) ( 91,654 ) Balance as of December 31, 2022 (1) $ 7,324 $ — $ 35,085 (1) We expect to recognize contract revenues of approximately $ 35.1 million in 2023 related to unsatisfied performance obligations existing as of December 31, 2022 , which includes $ 29.1 million related to customer prefunding of reimbursables . (2) “Noncurrent c ontract cost assets - held for sale” were included in the calculation of the gain recognized on the EDC Sale. See “ Note 1. Organization and Recent Events - Share Purchase Agreement to Sell EDC to ADES Arabia Holdings ” of these “Notes to the Consolidated Financial Statements” for additional information regarding such sale. We have elected to utilize an optional exemption that permits us to exclude disclosure of the estimated transaction price related to the variable portion of unsatisfied performance obligations at the end of the reporting period, as our transaction price is based on a single performance obligation consisting of a series of distinct hourly increments, the variability of which will be resolved at the time the future services are rendered. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 4. Leases We have operating leases expiring at various dates, principally for office space, onshore storage yards and certain operating equipment. Additionally, we sublease certain office space to third parties. We determine if an arrangement is a lease at inception. Operating leases with an initial term greater than 12 months are included in “Operating lease ROU assets”, “Other current liabilities”, and “Other long-term liabilities” on our Consolidated Balance Sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made prior to or at the commencement date and is reduced by lease incentives received and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally not accounted for separately. Certain of our leases include provisions for variable payments. These variable payments are not included in the calculation of lease liability and ROU assets. The components of lease expense were as follows: (in thousands) Classification in the Consolidated Statement of Operations 2022 2021 Operating lease cost (1) Operating costs $ 1,039 $ 2,405 Operating lease cost (1) General and administrative 1,136 607 Sublease income Operating costs — ( 485 ) Sublease income General and administrative ( 863 ) ( 247 ) Total operating lease cost $ 1,312 $ 2,280 (1) Short-term lease costs were $ 0.4 million during each of the years ended December 31, 2022 and 2021 . Operating cash flows used for operating leases approximates lease expense. (in thousands) Classification in the Consolidated Balance Sheets December 31, 2022 December 31, 2021 Assets: Operating lease assets Operating lease ROU assets $ 1,648 $ 2,450 Operating lease ROU assets - Held for sale — 197 Total leased assets $ 1,648 $ 2,647 Liabilities: Current operating Other current liabilities $ 1,520 $ 1,710 Other current liabilities - Held for sale — 103 Noncurrent operating Other long-term liabilities 222 969 Other long-term liabilities - Held for sale — 93 Total lease liabilities $ 1,742 $ 2,875 As of December 31, 2022, maturities of lease liabilities were as follows: (unaudited, in thousands) Operating Leases 2023 $ 1,594 2024 137 2025 102 2026 — 2027 — Total future lease payments $ 1,833 Less imputed interest ( 91 ) Present value of lease obligations $ 1,742 The weighted average discount rate for operating leases was 9.25 % as of each of the years ended December 31, 2022 and 2021 . The weighted average remaining lease term for operating leases was 1.19 years and 1.56 years as of December 31, 2022 and 2021, respectively. We entered into a bareboat charter contract in October 2022 to lease the Polaris , one of the Aquadrill rigs, to complete a drilling campaign with one of our customers. The bareboat charter contract is accounted for as a short-term operating lease with charter lease expense included in “Operating costs and expenses” on the Consolidated Statement of Operations. The bareboat charter contract on the Soehanah jackup rig was accounted for as an operating lease with charter revenue included in “Reimbursables and other” in the Consolidated Statement of Operations. In May 2019, the parties to the bareboat charter terminated the charterer’s right to acquire the rig at the end of the term of the bareboat charter, which was originally intended to end on December 31, 2019. However, under the terms of the bareboat charter, the lease term continued until the rig was redelivered to the Company, which occurred on February 3, 2020. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt Our debt was composed of the following as of the dates indicated: December 31, 2022 2021 (in thousands) 9.25% First Lien Notes, net of financing costs of $ 773 and $ 3,142 , respectively $ 179,227 $ 346,858 Less current maturities of long-term debt — — Long-term debt, net $ 179,227 $ 346,858 Aggregate scheduled principal maturities of our debt for the next five years and thereafter are as follows (in thousands): 2023 $ 180,000 2024 — 2025 — 2026 — 2027 — Thereafter — Total debt (1) 180,000 Less: Current maturities of long-term debt — Future amortization of financing costs ( 773 ) Long-term debt $ 179,227 (1) Excludes financing costs of $ 0.8 million on the 9.25% First Lien Notes. 9.25% First Lien Notes. On November 30, 2018, the Company issued $ 350.0 million in aggregate principal amount of 9.25% First Lien Notes in a private placement. The 9.25% First Lien Notes were issued at par and were fully guaranteed on senior secured basis, by the Company’s direct and indirect subsidiaries and are secured by a first priority lien on substantially all of the assets of the Company and its subsidiaries, in each case subject to certain exceptions. The 9.25% First Lien Notes were subject to first payment priority in favor of holders of up to $ 50.0 million of future super-priority debt and were subject to both mandatory and optional redemption provisions. The 9.25% First Lien Notes were scheduled to mature on November 15, 2023 and bore interest from the date of their issuance at the rate of 9.25 % per year. Interest was computed on the basis of a 360-day year comprised of twelve 30-day months and is payable semi-annually in arrears, commencing on May 15, 2019. Concurrently with the issuance of the 9.25% First Lien Notes, we entered into a letter of credit agreement with Credit Suisse AG (the “Credit Suisse Letter Agreement”) to replace the letter of credit facility formerly existing under the 2016 Term Loan Facility. The Credit Suisse Letter Agreement provided for up to $ 50.0 million in letters of credit, with all outstanding letters of credit being cash collateralized. The Credit Suisse Letter Agreement expired in November 2022. We subsequently transitioned our letter of credit needs to JPMorgan Chase Bank N.A., which provides us with individual letters of credit on demand and not part of any formal letter of credit facility. These letters of credit support our bank guarantee and similar needs. As of December 31, 2022 , we had letters of credit outstanding in the amount of $ 21.5 million, $ 13.6 million of which relate to bank guarantees supporting obligations under drilling contracts we no longer are a party to as they were included in the EDC Sale. On November 22, 2022, the Company issued a notice of partial redemption (the “Notice of Partial Redemption”) of the 9.25% First Lien Notes. Pursuant to the Notice of Partial Redemption, the Company gave the existing recordholders of the 9.25% First Lien Notes notice that it intended to redeem $ 170.0 million of the outstanding 9.25% First Lien Notes on December 22, 2022 (the “Redemption Date”), at a redemption price equal to 100.0 % of the aggregate principal amount of the 9.25% First Lien Notes to be redeemed, plus accrued and unpaid interest and additional amounts, if any, but not including, the date fixed for the redemption of the 9.25% First Lien Notes. On the Redemption Date, the Company made a payment of approximately $ 171.6 million, an amount which included principal and interest. On February 3, 2023, the Company issued a notice of full conditional redemption (the “Notice of Full Conditional Redemption”) pursuant to the First Lien Indenture. Pursuant to the Notice of Full Conditional Redemption, the Company gave existing recordholders of the 9.25% First Lien Notes notice that, upon the satisfaction of the Condition Precedent (as defined below), it intended to redeem all $ 180.0 million of its outstanding 9.25% First Lien Notes at a redemption price equal to 100.0 % of the aggregate principal amount of the 9.25% First Lien Notes to be redeemed, plus accrued and unpaid interest and Additional Amounts (as defined in the First Lien Indenture), if any, to, but not including, the date of redemption. The redemption of the 9.25% First Lien Notes was conditioned upon the receipt by the Company of proceeds from a completed debt financing in an amount sufficient, in the Company’s opinion, to fund the Redemption Price on the date of redemption pursuant to the terms of the Indenture (the “Condition Precedent”). The 9.25% First Lien Notes were redeemed in full on March 6, 2023 , using proceeds derived from the issuance of the 9.50% First Lien Notes (as discussed below). D ue the Company’s intent and ability to replace the 9.25% First Lien Notes with the 9.50% First Lien Notes, which mature in 2028, the 9.25% First Lien Notes have been presented as long-term on the Consolidated Balance Sheets as of December 31, 2022. 9.50% First Lien Notes. On February 14, 2023, the Company priced an offering of $ 200.0 million in aggregate principal amount of 9.50% First Lien Notes and entered into a purchase agreement with several investors pursuant to which the Company agreed to sell the 9.50% First Lien Notes (the “9.50% First Lien Notes Offering”) to the purchasers in reliance on an exemption from registration provided by Section 4(a)(2), Rule 144A and/or Regulation S of the Securities Act. On March 1, 2023, the Company closed on the sale of the 9.50% First Lien Notes. The proceeds derived from the 9.50% First Lien Notes Offering were used (i) to redeem all outstanding 9.25% First Lien Notes (as discussed above), (ii) to pay fees and expenses related to the 9.50% First Lien Notes Offering and (iii) for general corporate purposes. The 9.50% First Lien Notes will mature on February 15, 2028 . The Company will pay interest on the 9.50% First Lien Notes on February 15 and August 15 of each year, commencing on August 15, 2023. Interest on the 9.50% First Lien Notes will accrue from March 1, 2023, at a rate of 9.500 % per annum, and be payable in cash. The 9.50% First Lien Notes will be guaranteed on a joint and several basis by the Company’s current and future direct and indirect subsidiaries, subject to certain exceptions (including Vantage Financial Management Co.), and will be secured by a first priority lien on substantially all of the assets of the Company and such subsidiaries, in each case subject to certain exceptions. In connection with the issuance of the 9.50% First Lien Notes, we are permitted to have up to $ 25.0 million in letters of credit outstanding to support our operations. The 9.50% First Lien Notes are subject to redemption at the option of the Company, including upon certain change of control events occurring on or after February 15, 2025, and in certain cases upon the occurrence of certain events, as further described in the 9.50% First Lien Indenture. The 9.50% First Lien Indenture contains customary covenants that will limit the Company’s and, in certain instances, the ability of the Company’s subsidiaries, to borrow money, create liens on assets, make distributions and pay dividends on or redeem or repurchase stock, make certain types of investments, enter into agreements that restrict dividends or other payments from subsidiaries, enter into transactions with affiliates, issue guarantees of debt, and sell assets or merge with other companies. These limitations are subject to a number of important exceptions and qualifications set forth in the 9.50% First Lien Indenture. Events of default under the 9.50% First Lien Indenture include, among other events, the following with respect to the 9.50% First Lien Notes: default for 30 days in the payment when due of interest on the 9.50% First Lien Notes; default in payment when due of the principal of, or premium, if any, on the 9.50% First Lien Notes; failure to comply with certain covenants in the 9.50% First Lien Indenture for 30 days (or 60 days in respect of the reporting covenant contained therein) after the receipt of notice from the trustee or holders of 25.0 % in aggregate principal amount of the 9.50% First Lien Notes; acceleration or payment default of debt of the Company or a restricted subsidiary in excess of $ 30.0 million (subject to a cure right within 60 days); certain judgments in excess of $ 50.0 million subject to certain exceptions; and certain events of bankruptcy or insolvency. In the case of an event of default arising from certain events of bankruptcy or insolvency, all 9.50% First Lien Notes then outstanding will become due and payable immediately without further action or notice. If any other event of default occurs with respect to the 9.50% First Lien Notes, the trustee or holders of 25.0% in aggregate principal amount of the 9.50% First Lien Notes may declare all the 9.50% First Lien Notes to be due and payable immediately. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity (Deficit) | 6. Shareholders’ Equity Stock Issuance VDI has 50,000,000 authorized Ordinary Shares. Upon emergence from bankruptcy on the Effective Date, VDI issued 5,000,053 Ordinary Shares in connection with the settlement of LSTC in accordance with the Reorganization Plan and the VDC Note. On December 4, 2019, VDI issued an additional 8,114,977 Ordinary Shares to convert all of the outstanding Convertible Notes. As of December 31, 2022 , 13,115,026 Ordinary Shares were issued and outstanding. Share-based Compensation On August 9, 2016, the Company adopted the Amended 2016 MIP to align the interests of participants with those of the shareholders by providing incentive compensation opportunities tied to the performance of the Company’s equity securities. Pursuant to the 2016 Amended MIP, the Compensation Committee may grant to employees, directors and consultants stock options, restricted stock, restricted stock units or other awards. As of December 31, 2022 , there were 356,488 shares available for future grant under the Amended 2016 MIP. Pursuant to the Amended 2016 MIP and the terms of the applicable unit awards, participants holding restricted stock units are contractually entitled to receive all dividends or other distributions that are paid to VDI shareholders provided that any such dividends will be subject to the same vesting requirements of the underlying units. Dividend payments accrue to outstanding awards (both vested and unvested) in the form of “Dividend Equivalents” equal to the dividend per share underlying the applicable MIP award. On November 18, 2019, the Company announced that its Board of Directors had declared a special cash distribution in the aggregate amount of $ 525.0 million, or $ 40.03 per share, which was paid on December 17, 2019 , to shareholders of record as of the close of business on December 10, 2019 (the “Special Cash Distribution”). As a result of the Special Cash Distribution, $ 5.3 million has been recorded in “Other current liabilities” and $ 3.5 million has been recorded in “Other long-term liabilities” in our Consolidated Balance Sheets at December 31, 2022 to be paid on settlement of TBGs. For the years ended December 31, 2022, 2021 and 2020 , we recognized share-based compensation related to the TBGs of approximately $ 0.1 million, $ 0.4 million and $ 1.6 million, respectively. The remaining unrecognized share-based compensation expense related to TBGs, which was immaterial as of December 31, 2022 , is expected to be recognized over the remaining weighted average vesting period of approximately 0.18 years. The total award date value of time vested restricted shares that vested during the year ended December 31, 2022 was approximately $ 0.1 million. Share-based compensation expense for PBGs will be recognized when it is probable that the TEV targets will be met. Once it is probable the performance condition will be met, compensation expense based on the fair value of the PBGs at the conversion date will be recognized for the service period completed. As of December 31, 2022 , we concluded that it was not probable that the TEV performance condition would be met and therefore, no share-based compensation expense was recognized for PBGs, which have a remaining weighted average vesting period of approximately 0.11 years. A summary of the status of non-vested restricted units at December 31, 2022 and changes during the year ended December 31, 2022 is as follows: Time Weighted Performance Weighted Nonvested restricted units at December 31, 2020 20,707 $ 66.26 434,437 $ 66.26 Awarded — — — — Vested ( 18,224 ) 66.26 — — Forfeited — — ( 48,249 ) 66.26 Nonvested restricted units at December 31, 2021 2,483 $ 66.26 386,188 $ 66.26 Awarded — — — — Vested ( 1,564 ) 66.26 — — Forfeited — — — — Nonvested restricted units at December 31, 2022 919 $ 66.26 386,188 $ 66.26 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes VDI is a Cayman Islands company operating in multiple countries through its subsidiaries. The Cayman Islands do not impose corporate income taxes. Consequently, we have calculated income taxes based on the laws and tax 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. Our income taxes are generally dependent upon the results of our operations and when we generate significant revenues in jurisdictions where the income tax liability is based on gross revenues or asset values, there is no correlation to the net operating results and the income tax expense. Furthermore, in some jurisdictions we do not pay taxes, pay taxes at lower rates or receive benefits for certain income and expense items, including interest expense, loss on extinguishment of debt, gains or losses on disposal or transfer of assets, reorganization expenses and write-off of development costs. On January 22, 2020, VDI filed the Tax Election with the IRS to be treated as a partnership, rather than a corporation, for U.S. federal income tax purposes, with an effective date retroactive to December 9, 2019. As a result, U.S. Holders are required to take into account their allocable share of items of income, gain, loss deduction and credit of VDI for each taxable year of VDI ending with or within the U.S. Holder’s taxable year, regardless of whether any distribution has been or will be received from VDI. Each item generally will have the same character and source (either U.S. or foreign) as though the U.S. Holder had realized the item directly. VDI's change in tax status has not had a material impact on our consolidated financial statements as of December 31, 2022. The income tax expense (benefit) consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Current $ 3,605 $ 4,772 $ 4,676 Deferred 708 369 221 Total $ 4,313 $ 5,141 $ 4,897 A reconciliation of statutory and effective income tax rates is shown below: Year Ended December 31, 2022 2021 2020 Statutory rate 0.0 % 0.0 % 0.0 % Effect of: Taxes on foreign earnings 806.1 % ( 7.8 ) % ( 2.5 ) % Uncertain tax positions ( 154.4 ) % 1.2 % 0.3 % Other ( 195.2 ) % 1.7 % 0.4 % Total 456.5 % ( 4.9 ) % ( 1.8 ) % The components of the net deferred tax assets and liabilities were as follows: December 31, 2022 December 31, 2021 (in thousands) Deferred tax assets: Share-based compensation $ 1,168 $ 1,168 Accrued bonuses/compensation 199 146 Special compensation — 203 Start-up costs — 11 Loss carry-forwards 2,469 1,595 Property and equipment 191 — Deferred revenue 249 88 Total deferred tax assets 4,276 3,211 Valuation allowance ( 2,362 ) ( 1,590 ) Net deferred tax assets 1,914 1,621 Deferred tax liabilities: Property and equipment — ( 1,007 ) Deferred cost — ( 4 ) Other deferred tax liability ( 747 ) ( 24 ) Total deferred tax liabilities ( 747 ) ( 1,035 ) Net deferred tax asset (1) $ 1,167 $ 586 (1) Includes $ 1.2 million deferred income taxes within "Liabilities held for sale" on our Consolidated Balance Sheets as of December 31, 2021. At December 31, 2022 , we had foreign tax loss carry forwards of approximately $ 8.8 million, which will expire beginning in 2023 . The increase in foreign tax loss carry forwards is primarily due to additional losses incurred during the Current Year. The increase in the valuation allowance primarily results from the additional loss carryforwards. We include as a component of our income tax provision potential interest and penalties related to recognized tax contingencies within our global operations. Net interest and penalties benefit of approximately $( 0.2 ) million is included in 2022 income tax expense and total interest and penalties of approximately $ 0.3 million are accrued as of December 31, 2022. A reconciliation of our unrecognized tax benefits amount, excluding interest and penalties that we recognize as a component of income tax expense, is as follows (in thousands): Gross balance at January 1, 2022 $ 1,787 Additions based on tax positions related to the prior years 91 Expiration of statues ( 1,365 ) Gross balance at December 31, 2022 513 Related tax benefits — Net uncertain tax positions at December 31, 2022 $ 513 Our periodic tax returns are subject to examination by taxing authorities in the jurisdictions in which we operate in accordance with the normal statute 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 from 2012 onward 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 | 12 Months Ended |
Dec. 31, 2022 | |
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. Brazil Improbity Action On April 27, 2018, the Company was added as an additional defendant in a legal proceeding (the "Improbity Action"), initiated by the Brazilian Federal Prosecutor against certain individuals, including an executive of Petrobras and two political lobbyists, in connection with the contracting of the Titanium Explorer drillship to Petrobras under the Agreement for the Provision of Drilling Services for the Titanium Explorer , dated February 4, 2009, between Petrobras Venezuela Investments & Services, BV and Vantage Deepwater Company (and subsequently novated to Petrobras America, Inc. and Vantage Deepwater Drilling, Inc.), with the Brazilian government and Petrobras as plaintiffs. Vantage is alleged to have been involved in and benefitted from the purported bribery scheme at Petrobras through Hamylton Padilha, the Brazilian agent, our former parent company, VDC, used in the contracting of the Titanium Explorer drillship to Petrobras, and Mr. Hsin -Chi Su, a former member of VDC’s board of directors and a significant shareholder of VDC. We first became aware of the legal proceeding on July 19, 2018 as it was previously under seal. On March 22, 2019, we were formally served in the United States and on April 12, 2019, we subsequently filed our preliminary statement of defense with the 11 th Federal court of the Judicial Branch of Curitiba, State of Parana, Brazil (the “Brazilian Federal Court”). On August 20, 2020, the Brazilian Federal Court dismissed our preliminary statement of defense. On October 5, 2020, we subsequently filed a motion to clarify with the Brazilian Federal Court requesting the reconsideration of certain aspects of the decision dismissing our preliminary statement of defense. Our motion to clarify was denied on December 14, 2020, and on February 10, 2021 we filed an interlocutory appeal with the 4 th Circuit of the Federal Court of Appeals in Porto Alegre, State of Rio Grande do Sul, Brazil (the “Brazilian Appellate Court”), the appellate court hearing appeals in the “Car Wash” cases, seeking to reverse the Brazilian Federal Court’s denial of our preliminary defense. On April 15, 2021, the Brazilian authorities served us indirectly through the U.S. Department of Justice agreeing to formally send us documents related to the Improbity Action. On May 13, 2021, the Brazilian Appellate Court’s reporting judge for our matter granted our request for preliminary relief and ordered an immediate stay of the Improbity Action (as it applies to the Company). A proceeding with regard to the interlocutory appeal commenced on August 30, 2022 (the “August 2022 Proceeding”), and on December 6, 2022, the Brazilian Appellate Court ruled in our favor, revoking the asset freeze order, which had already been stayed pending a decision from the court, and immediately dismissed the Improbity Action as to the Company (the “Improbity Decision”). The Improbity Decision is still subject to clarification and appeal by the Brazilian government and Petrobras, and on January 30, 2023 and February 1, 2023, Petrobras and the Brazilian federal government filed respective motions to clarify the Improbity Decision. The Company will be notified by the Brazilian Appellate Court of the deadline to respond to the motions. The Company understands that the Improbity Action is a civil action and is part of the Brazilian Federal Prosecutor’s larger “Car Wash” investigation into money laundering and corruption allegations in Brazil. Separately, Federal Law no. 14,230/2021 (the “New Administrative Improbity Law”) was enacted on October 26, 2021, substantially, amending the existing Brazilian improbity legal framework. While the Company believes that the developments arising from the enactment of the New Administrative Improbity Law render the case against it moot, the Company cannot predict the ultimate outcome of the August 2022 Proceeding and the Company will be obligated to file a statement of defense in the matter if the Improbity Decision is later reversed. The damages claimed in the proceeding are in the amount of BRL 102.8 million (approximately $ 20.1 million, changes in the USD amounts result from foreign exchange rate fluctuations), together with a civil fine equal to three times that amount. The Company understands that the Brazilian Federal Court previously issued an order authorizing the seizure and freezing of the assets of the Company and the other three defendants in the legal proceeding, as a precautionary measure, in the amount of approximately $ 80.1 million. The Company and the other three defendants are jointly and severally liable for this amount. The seizure order has not had an effect on the Company’s assets or operations, as the Company does not own any assets in Brazil and does not currently intend to relocate any assets to Brazil. On February 13, 2019, we learned that the Brazilian Federal Prosecutor had previously requested mutual legal assistance from the DOJ pursuant to the United Nations Convention against Corruption of 2003 to obtain a freezing order against the Company’s U.S. assets in the amount of approximately $ 80.1 million. On April 12, 2019, the Company filed an interlocutory appeal with the Brazilian Appellate Court to stay the seizure and freezing order of the Brazilian Federal Court. On May 20, 2019, the Company announced that the Brazilian Appellate Court's reporting judge ruled in favor of the Company’s appeal to stay the seizure and freezing order of the Brazilian Federal Court. As noted above, the Brazilian Appellate Court ruled in favor of the Company in the Improbity Decision, which, among other things, revoked the asset freeze order. The Improbity Decision is still subject to clarification and appeal by the Brazilian government and Petrobras, and on January 30, 2023 and February 1, 2023, Petrobras and the Brazilian federal government filed respective motions to clarify the Improbity Decision. The Company will be notified by the Brazilian Appellate Court of the deadline to respond to the motions. The Company previously communicated the Brazilian Appellate Court’s ruling to the DOJ and has asked the Brazilian Federal Court to do the same. On July 18, 2019, the Company announced that the Brazilian Government made a filing with the Brazilian Federal Court reporting that the DOJ has advised the Brazilian Ministry of Justice that it would not be possible for the DOJ to comply with the mutual assistance request in respect of the asset freeze order. The Company also announced that it learned from the Brazilian Ministry of Justice that the DOJ’s response to the request for mutual assistance stated that no legal grounds existed for implementing the requested asset freeze, and that the DOJ was returning the request without taking action and considers the matter concluded. The Company has defended, and intends to continue to vigorously defend against the allegations made in the Improbity Action and oppose and defend against any attempts to seize the Company's assets. However, we can neither predict the ultimate outcome of this matter nor that there will not be further developments in the “Car Wash” investigation or in any other ongoing investigation or related proceeding that could adversely affect us. We are not able to determine the likelihood of loss, if any, arising from this matter as of the date of this Annual Report. 2022 Cyber Matters In 2022, we experienced additional e-mail related cybersecurity intrusions (the “2022 Cyber Matters”). We became aware of the 2022 Cyber Matters in the fourth quarter of 2022 that resulted in (i) two unauthorized transfers of cash from a company bank account to an outside bank account, (ii) one attempted transfer that was stopped and reversed by a financial institution and (iii) one attempted transfer that was stopped by the Company’s internal controls. We have since taken, and continue to take, measures designed to detect, remediate and prevent similar cybersecurity intrusions and threats from recurring. Because the 2022 Cyber Matters are still under investigation, we can neither predict the ultimate outcome of this matter nor whether there will be further developments in the 2022 Cyber Matters investigation that could adversely affect us. Our investigation to date as not revealed any information that suggests the 2022 Cyber Matters will result in a material loss to the Company. However, we are not able to determine the likelihood of loss, if any, arising from this matter as of the date of this Annual Report. Furthermore, we cannot provide assurance that we will not in the future experience any other actual or attempted breaches of our cybersecurity, or that our security efforts and remedial measures will prevent future security threats from materializing, if at all. Restructuring Agreement and Associated Settlement Agreement Pursuant to the terms of the Restructuring Agreement among VDC and a majority of our secured creditors, the Company agreed to the Reorganization Plan and VDC agreed to commence official liquidation proceedings under the laws of the Cayman Islands. On December 2, 2015, pursuant to the Restructuring Agreement, the Company acquired two subsidiaries responsible for the management of the Company from VDC in exchange for the VDC Note. In connection with our separation from VDC, we and the Joint Official Liquidators, appointed to oversee the liquidation of VDC, entered into discussions regarding the settlement of certain intercompany receivables and payables as between the Company and its subsidiaries, on the one hand, and VDC and its subsidiaries on the other. On March 4, 2020, we and our subsidiaries, on the one hand, and VDC and their subsidiaries, on the other, entered into a settlement agreement pursuant to which the parties to the settlement agreement agreed to release each other from certain claims in exchange for Vantage paying VDC $ 15.0 million, subject to the approval of the Court of Grand Cayman. On March 16, 2020, the Court of Grand Cayman approved the settlement agreement. On March 25, 2020, the Company paid $ 15.0 million in accordance with the settlement agreement, fully resolving the matter. We recorded a gain of $ 2.3 million related to the settlement agreement included in “Other Income” in the Consolidated Statement of Operations for the year ended December 31, 2020. Other Commitments 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. See “ Note 4. Leases ” of these “Notes to Consolidated Financial Statements” for information pertaining to our future minimum lease obligations. At December 31, 2022 , we had purchase commitments of $ 19.9 million. Our purchase commitments consist of obligations outstanding to external vendors primarily related to capital upgrades, materials, spare parts, consumables and related supplies for our drilling rigs. We are from time to time threatened with or made party to various tax and regulatory matters, as well as litigation, lawsuits and claims, both asserted and unasserted, in the ordinary course of our business. While we cannot predict with certainty the ultimate outcome or effect, if any, of the matters described above, we do not anticipate that the associated liability resulting from such matters will have a material adverse effect on our consolidated statement of operations, results of operations and cash flows. Nevertheless, we can provide no assurance that our beliefs or expectations as to the outcome or effect of any tax or regulatory matter, lawsuit, litigation or claim will prove correct. Moreover, the circumstances underlying such matters may vary and the eventual outcome and actual results of these matters could vary materially and significantly from management’s current expectations and estimates. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Financial Information | 9. Supplemental Financial Information Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: December 31, 2022 2021 (in thousands) Sales tax receivable $ 5,407 $ 8,445 Down payments to vendors 6,269 972 Prepaid fuel 3,200 2,350 Income tax receivable 1,373 1,423 Current deferred contract costs 7,324 1,405 Current contract asset — 1,903 Other 2,048 1,811 $ 25,621 $ 18,309 Assets Held for Sale Assets held for sale consisted of the following: December 31, 2022 2021 (in thousands) Trade receivables, net $ — $ 7,306 Materials and supplies — 13,510 Prepaid expenses and other current assets — 3,768 Property & equipment, net — 87,441 Noncurrent deferred contract costs — 4,196 Operating lease ROU assets — 197 Other noncurrent assets — 699 $ — $ 117,117 Property and Equipment, net Property and equipment, net consisted of the following: December 31, 2022 2021 (in thousands) Drilling equipment $ 624,739 $ 626,546 Assets under construction 4,075 148 Office and technology equipment 18,405 18,405 Leasehold improvements 690 523 647,909 645,622 Accumulated depreciation ( 309,453 ) ( 266,018 ) Property and equipment, net $ 338,456 $ 379,604 Other Assets Other assets consisted of the following: December 31, 2022 2021 (in thousands) Noncurrent restricted cash $ 2,781 $ 15,644 Deferred certification costs 3,308 5,199 Noncurrent deferred contract costs — 6,832 Deferred income taxes 1,897 1,776 Noncurrent sales tax receivable 4,766 — Noncurrent security deposits 5,582 2,392 $ 18,334 $ 31,843 Other Current Liabilities Other current liabilities consisted of the following: December 31, 2022 2021 (in thousands) Interest $ 2,126 $ 4,136 Compensation (1) 8,786 7,040 2016 MIP - Dividend equivalent (2) 5,278 — Income taxes payable 2,662 5,589 Current deferred revenue 35,085 12,311 Current portion of operating lease liabilities 1,520 1,710 Current customer prefunding 10,049 — Other 673 747 $ 66,179 $ 31,533 (1) Includes $ 2.3 million as of December 31, 2021 related to cash awards granted to certain key employees of the Company pursuant to underlying award agreements and issued under the 2016 MIP. The final payout of this cash award was made in June 2022. (2) “Dividend equivalents” on vested TBGs are payable upon settlement of the applicable award. See “ Note 6. Shareholders’ Equity ” of these “Notes to Consolidated Financial Statements” for additional information regarding the Dividend Equivalents. Liabilities Held for Sale Liabilities held for sale consisted of the following: December 31, 2022 2021 (in thousands) Accounts payable — 4,140 Compensation — 464 Income taxes payable — 716 Current portion of operating lease liabilities — 103 Deferred income taxes — 1,190 Noncurrent operating lease liabilities — 93 Other — 14 $ — $ 6,720 Other Long-term Liabilities Other long-term liabilities consisted of the following: December 31, 2022 2021 (in thousands) Deferred income taxes $ 730 $ — 2016 MIP - Dividend equivalents (1) 3,520 8,735 Noncurrent deferred revenue — 1,893 Noncurrent operating lease liabilities 222 969 Noncurrent customer prefunding 3,950 — Indirect tax contingencies 4,339 4,925 Other noncurrent liabilities 120 490 $ 12,881 $ 17,012 (1) Dividend Equivalents on vested TBGs are payable on settlement of the applicable award. See “ Note 6. Shareholders’ Equity ” of these “Notes to Consolidated Financial Statements” for additional information regarding the Dividend Equivalents. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statement of Cash Flows as of the dates indicated: December 31, 2022 2021 (in thousands) Cash and cash equivalents $ 74,026 $ 73,343 Restricted cash 16,450 1,621 Restricted cash included within Other assets 2,781 15,644 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 93,257 $ 90,608 Restricted cash represents cash held by banks as collateralizing letters of credit. Related Party Transactions The Company does not currently have any reportable transactions with entities that meet the definition of related parties as specifically defined by ASC 850 Related Party Disclosures . The Company does, however, engage in recurring transactions and enter into agreements in the ordinary course of business with ADES and Aquadrill, as described below. See also “ Note 1. Organization and Recent Events ” and “ Note 2. Basis of Presentation and Significant Accounting Policies ” of these “Notes to Financial Statements” for further information regarding these arrangements. ADES In conjunction with the establishment of ADVantage, the Company entered into a series of agreements with ADES, including a (i) secondment agreement; (ii) a manpower agreement; and (iii) a supply services agreement. Pursuant to these agreements, the Company, largely through its seconded employees, will provide various services to ADES and ADES will in turn provide various services to ADVantage. On December 6, 2021, we entered into the EDC Purchase Agreement with ADES Arabia to sell all of the issued and outstanding equity of EDC, which owns the Emerald Driller , Sapphire Driller and Aquamarine Driller . The transactions contemplated by the EDC Purchase Agreement closed on the EDC Closing Date. Simultaneously with the EDC Sale, certain subsidiaries of the Company and ADES entered into the EDC Support Services Agreements, pursuant to which a subsidiary of the Company agreed to provide, in exchange for customary fees and reimbursements, support services to EDC with respect to the Emerald Driller , Sapphire Driller and Aquamarine Driller for a three-year term. Fees earned in connection with these agreements are included in “Management fees” and “Reimbursable and other” in our Consolidated Statement of Operations within the Managed Services segment as reported in “ Note 10. Business Segment and Significant Customer Information ” of these “Notes to Consolidated Financial Statements”. For additional information regarding the EDC Purchase Agreement and the transactions contemplated thereby, please see “ Share Purchase Agreement to Sell EDC to ADES Arabia Holding” under “ Note 1. Organization and Recent Events ” of these “Notes to Consolidated Financial Statements”. On September 22, 2022, three wholly owned subsidiaries of VHI entered into several related agreements with Advanced Energy Services, S.A.E., a subsidiary of ADES (“ADES SAE” and together with ADES Arabia, the “ADES Group”), including a (i) secondment agreement, (ii) services agreement and (iii) bareboat charter agreement, in each case to support a drilling campaign that will utilize the Topaz Driller jackup (collectively, the “ADES Ancillary Agreements”). These contracts generally provide for: (a) reimbursement of loaned employee personnel costs plus a service fee; (b) a fixed fee based on days the rig is drilling; (c) a variable fee based on a percentage of gross margin generated on a monthly basis; and (d) reimbursement for purchases of supplies, equipment and personnel services, and other services provided at the request of ADES SAE. Fees earned in connection with these agreements are included in “Reimbursable and other” in our Consolidated Statement of Operations within the Drilling Services segment as reported in “ Note 10. Business Segment and Significant Customer Information ” of these “Notes to Consolidated Financial Statements”. For the year ended December 31, 2022 , we recognized revenue of $ 8.1 million from the ADES Group in connection with the ADES Ancillary Agreements. In association with the establishment of ADVantage, the Company and ADES contributed cash in 2019 in the approximate amount of $ 691,000 to ADVantage in excess of the issued capital of the joint venture, with the understanding that such amounts were to be treated as shareholder loans. The excess cash contribution and accrued interest were included in “Other current liabilities” on the Consolidated Balance Sheets. On July 29, 2021, the excess cash contribution to ADVantage was reflected on the commercial register of ADVantage in Egypt. As such, the amount was converted to capital contributions and reclassified from “Other current liabilities” to “Additional paid-in capital” on the Consolidated Balance Sheets. The Company and ADES also entered into an agreement on December 20, 2021 to pursue a global strategic alliance (the “Global Strategic Alliance”) in order to leverage both the EDC Support Services Agreements and ADVantage, the parties’ existing joint venture in Egypt . Pursuant to the Global Strategic Alliance, the parties agreed to collaborate on exploring future commercial and operational opportunities. Aquadrill VHI previously entered into certain Framework Agreements and related Management and Marketing Agreements, as amended, on March 16, 2021 with Aquadrill, pursuant to which certain subsidiaries of VHI agreed to provide operating, management and marketing services to Aquadrill and its subsidiaries (the “Aquadrill Entities”). Fees earned in connection with these agreements are included in “Management fees” and “Reimbursable and other” in our Consolidated Statement of Operations within the Managed Services segment as reported in “ Note 10. Business Segment and Significant Customer Information . ” of these “Notes to Consolidated Financial Statements”. For the years ended December 31, 2022 and 2021 , we recognized revenue of $ 84.9 million and $ 11.2 million, respectively. Two of our shareholders that own a significant portion of our Ordinary Shares also owns an interest in Aquadrill. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | 10. Business Segment Information Our operations are dependent on the global oil and gas industry and our rigs 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 global exploration and production companies. As the result of an increase in activity related to operating, management and marketing services for rigs owned by third parties, the Company has two reportable segments: (1) “Drilling Services,” which includes activities related to owned jackup rigs and drillships; and (2) “Managed Services,” which consists of activities related to rigs owned by third parties that we manage, support or operate through bareboat charters. The chief operating decision maker evaluates the performance of our reportable segments using adjusted operating income (loss), which is a segment performance measure, because this financial measure reflects our ongoing profitability and performance. Adjusted operating income (loss) is defined as segment income (loss) from operations plus depreciation. General and administrative expenses, other (expense) income, and income taxes are not allocated to the operating segments for purposes of measuring segment income (loss) from operations and are included in “Unallocated” in the table below. There are no intersegment revenues. Our segment results for the periods indicated were as follows: Year ended December 31, 2022 Drilling Services Managed Services Unallocated Consolidated (in thousands) Revenue Contract drilling services $ 151,509 $ 2,607 $ — $ 154,116 Management fees — 10,834 — 10,834 Reimbursables and other 27,685 86,081 — 113,766 Total revenue 179,194 99,522 — 278,716 Operating costs and expenses Operating costs 142,935 91,896 1 234,832 General and administrative — — 23,009 23,009 Depreciation 42,813 — 1,615 44,428 Gain on EDC Sale — — ( 61,409 ) ( 61,409 ) Total operating costs and expenses 185,748 91,896 ( 36,784 ) 240,860 (Loss) income from operations ( 6,554 ) 7,626 36,784 37,856 Other (expense) income Interest income — — 1,108 1,108 Interest expense and financing charges — — ( 34,351 ) ( 34,351 ) Other, net — — ( 3,668 ) ( 3,668 ) Total other expense — — ( 36,911 ) ( 36,911 ) (Loss) income before income taxes $ ( 6,554 ) $ 7,626 $ ( 127 ) $ 945 Reconciliation of (loss) income from operations to segment adjusted operating income: Drilling Services Managed Services (Loss) income from operations $ ( 6,554 ) $ 7,626 Depreciation 42,813 — Segment adjusted operating income $ 36,259 $ 7,626 Year ended December 31, 2021 (in thousands) Drilling Services Managed Services Unallocated Consolidated Revenue Contract drilling services $ 131,703 $ — $ — $ 131,703 Management fees — 2,351 — 2,351 Reimbursables and other 15,114 9,252 — 24,366 Total revenue 146,817 11,603 — 158,420 Operating costs and expenses Operating costs 140,138 10,530 — 150,668 General and administrative — — 20,539 20,539 Depreciation 54,565 — 1,677 56,242 Gain on EDC Sale — — — — Total operating costs and expenses 194,703 10,530 22,216 227,449 (Loss) income from operations ( 47,886 ) 1,073 ( 22,216 ) ( 69,029 ) Other (expense) income Interest income — — 124 124 Interest expense and financing charges — — ( 34,034 ) ( 34,034 ) Other, net — — ( 2,171 ) ( 2,171 ) Total other expense — — ( 36,081 ) ( 36,081 ) (Loss) income before income taxes $ ( 47,886 ) $ 1,073 $ ( 58,297 ) $ ( 105,110 ) Reconciliation of (loss) income from operations to segment adjusted operating income: Drilling Services Managed Services (Loss) income from operations $ ( 47,886 ) $ 1,073 Depreciation 54,565 — Segment adjusted operating income $ 6,679 $ 1,073 Year ended December 31, 2020 Drilling Services Managed Services Unallocated Consolidated (in thousands) Revenue Contract drilling services $ 112,013 $ — $ — $ 112,013 Management fees — 798 — 798 Reimbursables and other 13,634 417 — 14,051 Total revenue 125,647 1,215 — 126,862 Operating costs and expenses Operating costs 148,444 640 — 149,084 General and administrative — — 21,022 21,022 Depreciation 66,427 — 2,789 69,216 Loss on impairment 128,876 — — 128,876 Total operating costs and expenses 343,747 640 23,811 368,198 (Loss) income from operations ( 218,100 ) 575 ( 23,811 ) ( 241,336 ) Other (expense) income Interest income — — 871 871 Interest expense and financing charges — — ( 34,041 ) ( 34,041 ) Other, net — — 2,646 2,646 Total other expense — — ( 30,524 ) ( 30,524 ) (Loss) income before income taxes $ ( 218,100 ) $ 575 $ ( 54,335 ) $ ( 271,860 ) Reconciliation of (loss) income from operations to segment operating income (loss): Drilling Services Managed Services (Loss) income from operations $ ( 218,100 ) $ 575 Depreciation 66,427 — Loss on impairment 128,876 — Segment adjusted operating income (loss) $ ( 22,797 ) $ 575 Our revenues by country and segment were as follows: For the Years Ended December 31, Country Segment 2022 2021 2020 (in thousands) UAE Managed Services $ 81,715 $ 11,256 $ — Montenegro Drilling Services 3,272 43,402 — Qatar Drilling Services and Managed Services 14,319 30,250 21,679 India Drilling Services and Managed Services 54,786 29,492 31,836 Egypt Drilling Services 27,926 1,860 6,640 Cyprus Drilling Services 42,573 250 224 Indonesia Drilling Services and Managed Services 32,643 15,919 19,832 Lebanon Drilling Services — — 17,376 Congo Drilling Services — 3 13,299 Other countries Drilling Services and Managed Services 21,482 25,988 15,976 Total revenues $ 278,716 $ 158,420 $ 126,862 For the years ended December 31, 2022, 2021 and 2020 , a substantial amount of our revenue was derived from non-U.S. countries. Revenue with customers that contributed 10% or more of revenue for the periods indicated were as follows: Year Ended December 31, Segment 2022 2021 2020 Customer 1 Managed Services 31 % 7 % 0 % Customer 2 Drilling Services and Managed Services 20 % 19 % 25 % Customer 3 Drilling Services 10 % 1 % 5 % Customer 4 Drilling Services 15 % 27 % 10 % Customer 5 Drilling Services 5 % 13 % 0 % Customer 6 Drilling Services 1 % 6 % 31 % Customer 7 Drilling Services 6 % 0 % 12 % Information related to the Company’s “Total Assets” as reported on the Consolidated Balance Sheets is not available by reportable segment; however, a substantial portion of our assets are mobile drilling units included in the Drilling Services segment. Asset locations at the end of the reporting period are not necessarily indicative of the geographic distribution of the revenues generated by such assets during such periods. Our property and equipment, net by country was as follows: December 31, 2022 December 31, 2021 (in thousands) International Waters (2) $ 158,785 $ — India 81,309 96,583 Indonesia 58,663 63,581 Egypt — 173,187 Other countries (1) 39,699 46,253 Total property and equipment $ 338,456 $ 379,604 (1) “Other countries” represent countries in which we operate that individually had property equipment, net representing less than 10% of total property and equipment, net. (2) Rig was mobilizing to a new contract location and not located within the territorial waters of any jurisdiction. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation: The accompanying consolidated financial information as of December 31, 2022 and 2021, and for the years ended December 31, 2022, 2021 and 2020, have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the SEC and include our accounts and those of our majority owned subsidiaries and VIEs discussed below. All significant intercompany transactions and accounts have been eliminated. Certain previously reported amounts included in “Reimbursables and other” have been reclassified to “Management fees” on the Consolidated Statement of Operations to conform to the current period presentation. In addition to the consolidation of our majority owned subsidiaries, we also consolidate VIEs when we are determined to be the primary beneficiary of a VIE. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our determination of the primary beneficiary of a VIE considers all relationships between us and the VIE. ADVantage is a joint venture company formed to operate deepwater drilling rigs in Egypt. We determined that ADVantage met the criteria of a VIE for accounting purposes because its equity at risk was insufficient to permit it to carry on its activities without additional subordinated financial support from us. We also determined that we are the primary beneficiary for accounting purposes since we are entitled to use ADVantage for deepwater drilling contract opportunities rejected by ADES, and have the (a) power to direct the operating activities associated with the deepwater drilling rigs, which are the activities that most significantly impact the entity’s economic performance, and (b) obligation to absorb losses or the right to receive a majority of the benefits that could be potentially significant to the VIE. As a result, we consolidate ADVantage in our consolidated financial statements, we eliminate intercompany transactions and we present the interests that are not owned by us as “Noncontrolling interests” in our Consolidated Balance Sheets. The carrying amount associated with ADVantage was as follows: December 31, 2022 December 31, 2021 (unaudited, in thousands) Current assets $ 11,383 $ 8,099 Non-current assets 1,590 212 Current liabilities 4,749 2,838 Non-current liabilities 4,637 1,859 Net carrying amount $ 3,587 $ 3,614 As ADVantage is a majority owned subsidiary of the Company, it serves as a guarantor under the First Lien Indenture related to the 9.25% First Lien Notes and the 9.50% First Lien Notes. The 9.25% First Lien Notes and 9.50% First Lien Notes are secured by a first priority lien on all of the assets of ADVantage, subject to certain exceptions. Creditors’ recourse against ADVantage for liabilities of ADVantage is limited to the assets of ADVantage. See “ Note 9. Supplemental Financial Information ” of these “Notes to Consolidated Financial Statements” for additional information regarding related party transactions associated with this joint venture. |
Use of Estimates | Use of Estimates: The preparation of financial statements in accordance with U.S. GAAP requires our 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 revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to property and equipment, income taxes, insurance, employee benefits and contingent liabilities. Actual results could differ from these estimates. |
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. |
Materials and Supplies | Materials and Supplies: Consists of materials, spare parts, consumables and related supplies for our drilling rigs. We record these materials and supplies at their average cost. |
Property and Equipment | Property and Equipment: Consists 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 35 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 balance sheet and the resulting gain or loss is included in “Operating costs” or “General and administrative” expenses on the Consolidated Statement of Operations, depending on the nature of the asset. We recognized net gain of approximately $ 1.6 million and $ 2.6 million, and a loss of approximately $ 0.1 million, for the years ended December 31, 2022, 2021 and 2020, respectively, related to the sale or retirement of assets. Property and equipment held-for-sale is recorded at the lower of net book value or fair value less cost to sell. 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 be computed as the excess of the asset’s carrying value over the estimated fair value. Estimates of future cash flows require us to make long-term forecasts of our future revenues and operating costs with regard to the assets subject to review. Our business, including the utilization rates and dayrates we receive for our drilling rigs, depends on the level of our customers’ expenditures for oil and gas exploration, development and production expenditures. Oil and gas prices and customers’ expectations of potential changes in these prices, the general outlook for worldwide economic growth, political and social stability in the major oil and gas producing basins of the world, availability of credit and changes in governmental laws and regulations, among many other factors, significantly affect our customers’ levels of expenditures. Sustained declines in or persistent depressed levels of oil and gas prices, worldwide rig counts and utilization, reduced access to credit markets, reduced or depressed sale prices of comparably equipped jackups and drillships and any other significant adverse economic news could require us to evaluate the realization of our drilling rigs. As a result of our impairment testing, we determined that the carrying amount of our longer-term warm stacked drillship, the Titanium Explorer , was impaired and we subsequently recognized a non-cash loss on impairment of $ 128.9 million as of September 30, 2020. The Company performed a recoverability analysis for the years ended December 31, 2022 and 2021 , and no impairment loss was recorded. Interest costs and the amortization of debt financing costs related to the financings of our drilling rigs are capitalized as part of the cost while they are under construction and prior to the commencement of each vessel’s first contract. We did no t capitalize any interest for the reported periods. |
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. Debt issuance costs related to a recognized debt liability are presented in the consolidated balance sheets as a direct deduction from the carrying amount of that debt liability. |
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. |
Revenue Recognition | Revenue Recognition : See “ Note 3. Revenue from Contracts with Customers ” of these “Notes to Consolidated Financial Statements” for further information. The activities that primarily drive the revenue earned in our drilling contracts with customers include (i) providing our drilling rig, work crews, related equipment and services necessary to operate the rig, (ii) delivering the drilling rig by mobilizing to and demobilizing from the drill site, and (iii) performing pre-operating activities, including rig preparation activities and/or equipment modifications required for the contract. The integrated drilling services that we perform under each drilling contract represent a single performance obligation satisfied over time and comprised of a series of distinct time increments, or service periods. We have elected to exclude from the transaction price measurement all taxes assessed by a governmental authority. Dayrate Drilling Revenue. Our drilling contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The dayrate billed to the customer is determined based on varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly increment it relates to within the contract term and therefore, recognized as we perform the daily drilling services. For rigs owned by a third-party that we manage or support, the contracts generally provide for a fixed fee based on various factors, including the status of the rig or a specific duration. In addition, we may earn a marketing fee based on a percentage of the effective dayrate of a drilling contract secured on behalf of the third party and a variable management fee of the gross margin associated with managing an operating rig. For certain contractual arrangements we are considered the principal or agent in such transactions; therefore, we record the associated revenue at the gross or net amounts billed to the customers, respectively. Amortizable Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for (i) the mobilization of equipment and personnel prior to the commencement of drilling services, (ii) the demobilization of equipment and personnel upon contract completion or (iii) postponement fees in consideration for the postponement of a contract until a later date. These activities are not considered to be distinct within the context of the contract and therefore, the associated revenue is allocated to the overall single performance obligation. Mobilization fees received prior to commencement of drilling operations are recorded as a contract liability and amortized on a straight ‑ line basis over the initial contract period. Demobilization fees expected to be received upon contract completion are estimated at contract inception and recognized on a straight-line basis over the initial contract term, with an offset to an accretive contract asset. In many contracts, demobilization fees are contingent upon the occurrence or non-occurrence of a future event and the estimate for such revenue may therefore be constrained. In such cases, this may result in cumulative-effect adjustments to demobilization revenues upon changes in our estimates of future events during the contract term. Postponement fees received that are contingent upon the occurrence or non-occurrence of a future event are recognized on a straight-line basis over the contract term. Fees received for the mobilization or demobilization of equipment and personnel are included in “Contract drilling services” in our Consolidated Statement of Operations. Capital Upgrade/Contract Preparation Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for requested capital upgrades to our drilling rigs or for other contract preparation work. These activities are not considered to be distinct within the context of the contract and therefore, fees received are recorded as a contract liability and amortized to contract drilling revenues on a straight-line basis over the initial contract term. Charter Lease Revenue. In relation to certain bareboat charter agreements where we lease our owned rigs to third parties, we receive a fixed fee based on days the rig is drilling and in certain bareboat charter agreements we receive a variable fee based on a percentage of gross margin generated on a monthly basis. Revenues Related to Reimbursable Expenses. We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request in accordance with a drilling contract or other agreement. We may be considered a principal or an agent in such transactions and therefore, we recognize reimbursable revenues and the corresponding costs either on a gross or net basis, as applicable, as we provide the customer ‑ requested goods and services. Disaggregation of Revenue The following tables present our revenue disaggregated by revenue source for the periods indicated: Year ended December 31, 2022 Jackups Deepwater Managed Consolidated (in thousands) Dayrate revenue $ 42,375 $ 101,351 $ 13,176 $ 156,902 Amortized revenue 2,321 5,462 265 8,048 Charter lease revenue 2,707 — — 2,707 Reimbursable revenue 9,117 15,861 86,081 111,059 Total revenue $ 56,520 $ 122,674 $ 99,522 $ 278,716 Year ended December 31, 2021 Jackups Deepwater Managed Consolidated (in thousands) Dayrate revenue $ 90,614 $ 30,076 $ 2,351 $ 123,041 Amortized revenue 10,491 522 — 11,013 Reimbursable revenue 14,110 1,004 9,252 24,366 Total revenue $ 115,215 $ 31,602 $ 11,603 $ 158,420 Year ended December 31, 2020 Jackups Deepwater Managed Consolidated (in thousands) Dayrate revenue $ 59,624 $ 46,455 $ 798 $ 106,877 Amortized revenue 1,889 4,045 — 5,934 Charter lease revenue 476 — — 476 Reimbursable revenue 7,576 5,582 417 13,575 Total revenue $ 69,565 $ 56,082 $ 1,215 $ 126,862 Dayrate revenue and amortized revenue for “Jackups” and “Deepwater” are included within “Contract drilling services” in our Consolidated Statement of Operations. Dayrate revenue for “Managed” is included within “Contract drilling services” and “Management fees” within our Consolidated Statement of Operations. All other revenue is included within “Reimbursables and other” in our Consolidated Statement of Operations. Accounts Receivable, Contract Liabilities and Contract Costs Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on customer invoices typically range from 30 to 45 days . We recognize contract liabilities, recorded in other “Other current liabilities” and “Other long-term liabilities” on our Consolidated Balance Sheets, for prepayments received from customers and for deferred revenue received for mobilization, contract preparation and capital upgrades. Certain direct and incremental costs incurred for contract preparation, initial mobilization and modifications of contracted rigs represent contract fulfillment costs as they relate directly to a contract, enhance resources that will be used to satisfy our performance obligations in the future and are expected to be recovered. These costs are deferred as a current or noncurrent asset depending on the length of the initial contract term and are amortized on a straight-line basis to operating costs as services are rendered over the initial term of the related drilling contract. Costs incurred for capital upgrades are capitalized and depreciated over the useful life of the asset. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. Costs incurred to mobilize a rig without a contract are expensed as incurred. The following table provides information about contract cost assets and contract revenue liabilities from contracts with customers: December 31, 2022 December 31, 2021 (in thousands) Current contract cost assets $ 7,324 $ 1,405 Noncurrent contract cost assets — 6,832 Noncurrent contract cost assets - held for sale — 4,196 Current contract revenue assets — 1,903 Current contract revenue liabilities 35,085 12,311 Noncurrent contract revenue liabilities — 1,893 Significant changes in contract cost assets and contract revenue liabilities during the year ended December 31, 2022 are as follows: Contract Cost Assets Contract Revenue Assets Contract Revenue Liabilities (in thousands) Balance as of December 31, 2021 $ 12,433 $ 1,903 $ 14,204 Increase due to contractual additions 7,757 — 112,535 Decrease due to disposal of held for sale balances (2) ( 3,895 ) — — Decrease due to recognition ( 8,971 ) ( 1,903 ) ( 91,654 ) Balance as of December 31, 2022 (1) $ 7,324 $ — $ 35,085 (1) We expect to recognize contract revenues of approximately $ 35.1 million in 2023 related to unsatisfied performance obligations existing as of December 31, 2022 , which includes $ 29.1 million related to customer prefunding of reimbursables . (2) “Noncurrent c ontract cost assets - held for sale” were included in the calculation of the gain recognized on the EDC Sale. See “ Note 1. Organization and Recent Events - Share Purchase Agreement to Sell EDC to ADES Arabia Holdings ” of these “Notes to the Consolidated Financial Statements” for additional information regarding such sale. We have elected to utilize an optional exemption that permits us to exclude disclosure of the estimated transaction price related to the variable portion of unsatisfied performance obligations at the end of the reporting period, as our transaction price is based on a single performance obligation consisting of a series of distinct hourly increments, the variability of which will be resolved at the time the future services are rendered. |
Income Taxes | Income Taxes: Income taxes are provided for based upon the tax laws and rates in effect in the countries in which our 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 tax-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. We do not establish deferred tax liabilities for certain of our foreign earnings that we intend to indefinitely reinvest to finance foreign activities. 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. |
Concentrations of Credit Risk | Concentrations 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. 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. Payment terms on customer invoices typically range from 30 to 45 days. Outstanding receivables beyond payment terms are promptly investigated and discussed with the specific customer. Four customers accounted for approximately 30 %, 25 %, 17 % and 14 % of our consolidated trade receivables, net for the year ended December 31, 2022 and three customers accounted for approximately 19 %, 18 % and 10 % of our consolidated trade receivables, net for the year ended December 31, 2021. Credit Losses – Accounts Receivable: The allowance for credit losses is based on the Company’s assessment of the collectability of customer accounts. Current estimates of expected credit losses consider factors such as the historical experience and credit quality of our customers. The Company considers historical loss information as the most reasonable basis on which to determine expected credit losses unless current or forecasted future conditions for customers or customer groups indicate that risk characteristics have changed. We also considered the impact of the COVID-19 pandemic and the associated oil price and market share volatility on our allowance for credit losses on our current estimate of credit losses as of December 31, 2022 . The allowance for credit losses on our trade receivables was $ 5.0 million as of each of December 31, 2022 and 2021 . This amount represents a customer’s decision not to pay us for days impacted by what we believe were force majeure and other events for which we would still be entitled to receive payment under our contract with such customer. We disagree with their decision and are evaluating remedies, if any, under the contract. |
Earnings (Loss) per Share | Earnings (loss) per Share: We compute basic and diluted EPS in accordance with the two-class method. We include restricted stock units granted to employees that contain non-forfeitable rights to dividends as such grants are considered participating securities. Basic earnings (loss) per share are based on the weighted average number of Ordinary Shares outstanding during the applicable period. Diluted EPS 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 EPS computations: Year Ended December 31, 2022 2021 2020 (In thousands) Weighted average Ordinary Shares outstanding for basic EPS 13,115 13,115 13,115 Restricted share equity awards — — — Adjusted weighted average Ordinary Shares outstanding for diluted EPS 13,115 13,115 13,115 The following sets forth the number of shares excluded from diluted EPS computations: Year Ended December 31, 2022 2021 2020 (In thousands) Restricted share equity awards 221 218 200 Future potentially dilutive Ordinary Shares excluded from diluted EPS 221 218 200 |
Functional Currency | Functional Currency: We consider USD to be the functional currency for all of our operations since the majority of our revenues and expenditures are denominated in USD, which limits our exposure to currency exchange rate fluctuations. We recognize currency exchange rate gains and losses in “Other, net” in our Consolidated Statement of Operations. For the years ended December 31, 2022, 2021 and 2020 , we recognized a net gain of $ 3.7 million, $ 2.2 million and $ 0.4 million, respectively, related to currency exchange rates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable, and accounts payable. These items are considered Level 1 due to their short-term nature and their market interest rates and are therefore considered a reasonable estimate of fair value. The Company classifies short-term investments within Level 1 in the fair value hierarchy, because quoted prices for identical assets in active markets are used to determine fair value. At December 31, 2022 , the fair value of the 9.25% First Lien Notes was approximately $ 178.2 million based on quoted market prices in a less active market, a Level 2 measurement. See “ Note 5. Debt ” of these “Notes to Consolidated Financial Statements” for additional information on the 9.25% First Lien Notes. |
Share-based Compensation | Share-based Compensation: TBGs granted under the 2016 Amended MIP vest annually, ratably over four years ; however, accelerated vesting is provided for in the event of a QLE. Otherwise, the settlement of any vested TBGs occurs upon the seventh anniversary of the effective date set forth in each individual award letter. PBGs granted under the 2016 Amended MIP contain vesting eligibility provisions tied to the earlier of a QLE or seven years from the Effective Date. Upon the occurrence of a vesting eligibility event, the number of PBGs that actually vest will be dependent on the achievement of pre-determined TEV targets specified in the grants. Both the TBGs and PBGs were classified as liabilities consistent with the classification of the underlying securities prior to the Conversion. Following the Conversion, outstanding TBGs and PBGs were subject to modification accounting and were re-classified as equity awards. Under the provisions of ASC 718 Compensation – Stock Compensation share-based compensation expense is recognized over the requisite service period from the grant date to the fourth-year vest date for TBGs. For PBGs, expense will be recognized when it is probable that the TEV targets will be met. Once it is probable the performance condition will be met, compensation expense based on the fair value of the PBGs at the conversion date of the Convertible Notes will be recognized for the service period completed to the seventh anniversary of the Effective Date for PBGs. |
Noncontrolling Interest | Noncontrolling Interest: Noncontrolling interests represent the equity investments of the minority owner in ADVantage, a joint venture with ADES that we consolidate in our financial statements. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards: No new accounting standards were adopted during the year ended December 31, 2022 . |
Recently Issued Accounting Standards | Recently Issued Accounting Standards: There have been no new accounting pronouncements not yet effective that have significance with respect to our consolidated financial statements. |
Leases | Leases We have operating leases expiring at various dates, principally for office space, onshore storage yards and certain operating equipment. Additionally, we sublease certain office space to third parties. We determine if an arrangement is a lease at inception. Operating leases with an initial term greater than 12 months are included in “Operating lease ROU assets”, “Other current liabilities”, and “Other long-term liabilities” on our Consolidated Balance Sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made prior to or at the commencement date and is reduced by lease incentives received and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally not accounted for separately. Certain of our leases include provisions for variable payments. These variable payments are not included in the calculation of lease liability and ROU assets. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Carrying Amounts of Assets and Liabilities of VIE | The carrying amount associated with ADVantage was as follows: December 31, 2022 December 31, 2021 (unaudited, in thousands) Current assets $ 11,383 $ 8,099 Non-current assets 1,590 212 Current liabilities 4,749 2,838 Non-current liabilities 4,637 1,859 Net carrying amount $ 3,587 $ 3,614 |
Schedule of Reconciliation of Number of Shares Used for Basic and Diluted EPS Computations | The following is a reconciliation of the number of shares used for the basic and diluted EPS computations: Year Ended December 31, 2022 2021 2020 (In thousands) Weighted average Ordinary Shares outstanding for basic EPS 13,115 13,115 13,115 Restricted share equity awards — — — Adjusted weighted average Ordinary Shares outstanding for diluted EPS 13,115 13,115 13,115 |
Schedule of Number of Shares Excluded from Diluted EPS Computations | The following sets forth the number of shares excluded from diluted EPS computations: Year Ended December 31, 2022 2021 2020 (In thousands) Restricted share equity awards 221 218 200 Future potentially dilutive Ordinary Shares excluded from diluted EPS 221 218 200 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated by Revenue | The following tables present our revenue disaggregated by revenue source for the periods indicated: Year ended December 31, 2022 Jackups Deepwater Managed Consolidated (in thousands) Dayrate revenue $ 42,375 $ 101,351 $ 13,176 $ 156,902 Amortized revenue 2,321 5,462 265 8,048 Charter lease revenue 2,707 — — 2,707 Reimbursable revenue 9,117 15,861 86,081 111,059 Total revenue $ 56,520 $ 122,674 $ 99,522 $ 278,716 Year ended December 31, 2021 Jackups Deepwater Managed Consolidated (in thousands) Dayrate revenue $ 90,614 $ 30,076 $ 2,351 $ 123,041 Amortized revenue 10,491 522 — 11,013 Reimbursable revenue 14,110 1,004 9,252 24,366 Total revenue $ 115,215 $ 31,602 $ 11,603 $ 158,420 Year ended December 31, 2020 Jackups Deepwater Managed Consolidated (in thousands) Dayrate revenue $ 59,624 $ 46,455 $ 798 $ 106,877 Amortized revenue 1,889 4,045 — 5,934 Charter lease revenue 476 — — 476 Reimbursable revenue 7,576 5,582 417 13,575 Total revenue $ 69,565 $ 56,082 $ 1,215 $ 126,862 |
Schedule of Contract Cost Assets and Contract Revenue Liabilities from Contracts with Customers | The following table provides information about contract cost assets and contract revenue liabilities from contracts with customers: December 31, 2022 December 31, 2021 (in thousands) Current contract cost assets $ 7,324 $ 1,405 Noncurrent contract cost assets — 6,832 Noncurrent contract cost assets - held for sale — 4,196 Current contract revenue assets — 1,903 Current contract revenue liabilities 35,085 12,311 Noncurrent contract revenue liabilities — 1,893 |
Schedule of Significant Changes in Contract Cost Assets and Contract Revenue Liabilities | Significant changes in contract cost assets and contract revenue liabilities during the year ended December 31, 2022 are as follows: Contract Cost Assets Contract Revenue Assets Contract Revenue Liabilities (in thousands) Balance as of December 31, 2021 $ 12,433 $ 1,903 $ 14,204 Increase due to contractual additions 7,757 — 112,535 Decrease due to disposal of held for sale balances (2) ( 3,895 ) — — Decrease due to recognition ( 8,971 ) ( 1,903 ) ( 91,654 ) Balance as of December 31, 2022 (1) $ 7,324 $ — $ 35,085 (1) We expect to recognize contract revenues of approximately $ 35.1 million in 2023 related to unsatisfied performance obligations existing as of December 31, 2022 , which includes $ 29.1 million related to customer prefunding of reimbursables . (2) “Noncurrent c ontract cost assets - held for sale” were included in the calculation of the gain recognized on the EDC Sale. See “ Note 1. Organization and Recent Events - Share Purchase Agreement to Sell EDC to ADES Arabia Holdings ” of these “Notes to the Consolidated Financial Statements” for additional information regarding such sale. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: (in thousands) Classification in the Consolidated Statement of Operations 2022 2021 Operating lease cost (1) Operating costs $ 1,039 $ 2,405 Operating lease cost (1) General and administrative 1,136 607 Sublease income Operating costs — ( 485 ) Sublease income General and administrative ( 863 ) ( 247 ) Total operating lease cost $ 1,312 $ 2,280 (1) Short-term lease costs were $ 0.4 million during each of the years ended December 31, 2022 and 2021 . Operating cash flows used for operating leases approximates lease expense. |
Schedule of Operating Leases Included in Consolidated Balance Sheet | (in thousands) Classification in the Consolidated Balance Sheets December 31, 2022 December 31, 2021 Assets: Operating lease assets Operating lease ROU assets $ 1,648 $ 2,450 Operating lease ROU assets - Held for sale — 197 Total leased assets $ 1,648 $ 2,647 Liabilities: Current operating Other current liabilities $ 1,520 $ 1,710 Other current liabilities - Held for sale — 103 Noncurrent operating Other long-term liabilities 222 969 Other long-term liabilities - Held for sale — 93 Total lease liabilities $ 1,742 $ 2,875 |
Schedule of Maturities of Operating Lease Liabilities | As of December 31, 2022, maturities of lease liabilities were as follows: (unaudited, in thousands) Operating Leases 2023 $ 1,594 2024 137 2025 102 2026 — 2027 — Total future lease payments $ 1,833 Less imputed interest ( 91 ) Present value of lease obligations $ 1,742 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Our debt was composed of the following as of the dates indicated: December 31, 2022 2021 (in thousands) 9.25% First Lien Notes, net of financing costs of $ 773 and $ 3,142 , respectively $ 179,227 $ 346,858 Less current maturities of long-term debt — — Long-term debt, net $ 179,227 $ 346,858 |
Schedule of Aggregate Principal Maturities of Long-term Debt | Aggregate scheduled principal maturities of our debt for the next five years and thereafter are as follows (in thousands): 2023 $ 180,000 2024 — 2025 — 2026 — 2027 — Thereafter — Total debt (1) 180,000 Less: Current maturities of long-term debt — Future amortization of financing costs ( 773 ) Long-term debt $ 179,227 (1) Excludes financing costs of $ 0.8 million on the 9.25% First Lien Notes. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Summary of Status of Non-Vested Restricted Units and Changes | A summary of the status of non-vested restricted units at December 31, 2022 and changes during the year ended December 31, 2022 is as follows: Time Weighted Performance Weighted Nonvested restricted units at December 31, 2020 20,707 $ 66.26 434,437 $ 66.26 Awarded — — — — Vested ( 18,224 ) 66.26 — — Forfeited — — ( 48,249 ) 66.26 Nonvested restricted units at December 31, 2021 2,483 $ 66.26 386,188 $ 66.26 Awarded — — — — Vested ( 1,564 ) 66.26 — — Forfeited — — — — Nonvested restricted units at December 31, 2022 919 $ 66.26 386,188 $ 66.26 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) | The income tax expense (benefit) consisted of the following (in thousands): Year Ended December 31, 2022 2021 2020 Current $ 3,605 $ 4,772 $ 4,676 Deferred 708 369 221 Total $ 4,313 $ 5,141 $ 4,897 |
Reconciliation of Statutory and Effective Income Tax Rates | A reconciliation of statutory and effective income tax rates is shown below: Year Ended December 31, 2022 2021 2020 Statutory rate 0.0 % 0.0 % 0.0 % Effect of: Taxes on foreign earnings 806.1 % ( 7.8 ) % ( 2.5 ) % Uncertain tax positions ( 154.4 ) % 1.2 % 0.3 % Other ( 195.2 ) % 1.7 % 0.4 % Total 456.5 % ( 4.9 ) % ( 1.8 ) % |
Components of Net Deferred Tax Assets and Liabilities | The components of the net deferred tax assets and liabilities were as follows: December 31, 2022 December 31, 2021 (in thousands) Deferred tax assets: Share-based compensation $ 1,168 $ 1,168 Accrued bonuses/compensation 199 146 Special compensation — 203 Start-up costs — 11 Loss carry-forwards 2,469 1,595 Property and equipment 191 — Deferred revenue 249 88 Total deferred tax assets 4,276 3,211 Valuation allowance ( 2,362 ) ( 1,590 ) Net deferred tax assets 1,914 1,621 Deferred tax liabilities: Property and equipment — ( 1,007 ) Deferred cost — ( 4 ) Other deferred tax liability ( 747 ) ( 24 ) Total deferred tax liabilities ( 747 ) ( 1,035 ) Net deferred tax asset (1) $ 1,167 $ 586 (1) Includes $ 1.2 million deferred income taxes within "Liabilities held for sale" on our Consolidated Balance Sheets as of December 31, 2021. |
Reconciliation of Unrecognized Tax Benefits Excluding Interest And Penalties | A reconciliation of our unrecognized tax benefits amount, excluding interest and penalties that we recognize as a component of income tax expense, is as follows (in thousands): Gross balance at January 1, 2022 $ 1,787 Additions based on tax positions related to the prior years 91 Expiration of statues ( 1,365 ) Gross balance at December 31, 2022 513 Related tax benefits — Net uncertain tax positions at December 31, 2022 $ 513 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: December 31, 2022 2021 (in thousands) Sales tax receivable $ 5,407 $ 8,445 Down payments to vendors 6,269 972 Prepaid fuel 3,200 2,350 Income tax receivable 1,373 1,423 Current deferred contract costs 7,324 1,405 Current contract asset — 1,903 Other 2,048 1,811 $ 25,621 $ 18,309 |
Assets Held for Sale | Assets held for sale consisted of the following: December 31, 2022 2021 (in thousands) Trade receivables, net $ — $ 7,306 Materials and supplies — 13,510 Prepaid expenses and other current assets — 3,768 Property & equipment, net — 87,441 Noncurrent deferred contract costs — 4,196 Operating lease ROU assets — 197 Other noncurrent assets — 699 $ — $ 117,117 |
Property and Equipment, Net | Property and equipment, net consisted of the following: December 31, 2022 2021 (in thousands) Drilling equipment $ 624,739 $ 626,546 Assets under construction 4,075 148 Office and technology equipment 18,405 18,405 Leasehold improvements 690 523 647,909 645,622 Accumulated depreciation ( 309,453 ) ( 266,018 ) Property and equipment, net $ 338,456 $ 379,604 |
Other Assets | Other assets consisted of the following: December 31, 2022 2021 (in thousands) Noncurrent restricted cash $ 2,781 $ 15,644 Deferred certification costs 3,308 5,199 Noncurrent deferred contract costs — 6,832 Deferred income taxes 1,897 1,776 Noncurrent sales tax receivable 4,766 — Noncurrent security deposits 5,582 2,392 $ 18,334 $ 31,843 |
Other Current Liabilities | Other current liabilities consisted of the following: December 31, 2022 2021 (in thousands) Interest $ 2,126 $ 4,136 Compensation (1) 8,786 7,040 2016 MIP - Dividend equivalent (2) 5,278 — Income taxes payable 2,662 5,589 Current deferred revenue 35,085 12,311 Current portion of operating lease liabilities 1,520 1,710 Current customer prefunding 10,049 — Other 673 747 $ 66,179 $ 31,533 (1) Includes $ 2.3 million as of December 31, 2021 related to cash awards granted to certain key employees of the Company pursuant to underlying award agreements and issued under the 2016 MIP. The final payout of this cash award was made in June 2022. (2) “Dividend equivalents” on vested TBGs are payable upon settlement of the applicable award. See “ Note 6. Shareholders’ Equity ” of these “Notes to Consolidated Financial Statements” for additional information regarding the Dividend Equivalents. |
Liabilities Held for Sale | Liabilities held for sale consisted of the following: December 31, 2022 2021 (in thousands) Accounts payable — 4,140 Compensation — 464 Income taxes payable — 716 Current portion of operating lease liabilities — 103 Deferred income taxes — 1,190 Noncurrent operating lease liabilities — 93 Other — 14 $ — $ 6,720 |
Other Long-term Liabilities | Other long-term liabilities consisted of the following: December 31, 2022 2021 (in thousands) Deferred income taxes $ 730 $ — 2016 MIP - Dividend equivalents (1) 3,520 8,735 Noncurrent deferred revenue — 1,893 Noncurrent operating lease liabilities 222 969 Noncurrent customer prefunding 3,950 — Indirect tax contingencies 4,339 4,925 Other noncurrent liabilities 120 490 $ 12,881 $ 17,012 (1) Dividend Equivalents on vested TBGs are payable on settlement of the applicable award. See “ Note 6. Shareholders’ Equity ” of these “Notes to Consolidated Financial Statements” for additional information regarding the Dividend Equivalents. |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statement of Cash Flows as of the dates indicated: December 31, 2022 2021 (in thousands) Cash and cash equivalents $ 74,026 $ 73,343 Restricted cash 16,450 1,621 Restricted cash included within Other assets 2,781 15,644 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 93,257 $ 90,608 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Our segment results for the periods indicated were as follows: Year ended December 31, 2022 Drilling Services Managed Services Unallocated Consolidated (in thousands) Revenue Contract drilling services $ 151,509 $ 2,607 $ — $ 154,116 Management fees — 10,834 — 10,834 Reimbursables and other 27,685 86,081 — 113,766 Total revenue 179,194 99,522 — 278,716 Operating costs and expenses Operating costs 142,935 91,896 1 234,832 General and administrative — — 23,009 23,009 Depreciation 42,813 — 1,615 44,428 Gain on EDC Sale — — ( 61,409 ) ( 61,409 ) Total operating costs and expenses 185,748 91,896 ( 36,784 ) 240,860 (Loss) income from operations ( 6,554 ) 7,626 36,784 37,856 Other (expense) income Interest income — — 1,108 1,108 Interest expense and financing charges — — ( 34,351 ) ( 34,351 ) Other, net — — ( 3,668 ) ( 3,668 ) Total other expense — — ( 36,911 ) ( 36,911 ) (Loss) income before income taxes $ ( 6,554 ) $ 7,626 $ ( 127 ) $ 945 Reconciliation of (loss) income from operations to segment adjusted operating income: Drilling Services Managed Services (Loss) income from operations $ ( 6,554 ) $ 7,626 Depreciation 42,813 — Segment adjusted operating income $ 36,259 $ 7,626 Year ended December 31, 2021 (in thousands) Drilling Services Managed Services Unallocated Consolidated Revenue Contract drilling services $ 131,703 $ — $ — $ 131,703 Management fees — 2,351 — 2,351 Reimbursables and other 15,114 9,252 — 24,366 Total revenue 146,817 11,603 — 158,420 Operating costs and expenses Operating costs 140,138 10,530 — 150,668 General and administrative — — 20,539 20,539 Depreciation 54,565 — 1,677 56,242 Gain on EDC Sale — — — — Total operating costs and expenses 194,703 10,530 22,216 227,449 (Loss) income from operations ( 47,886 ) 1,073 ( 22,216 ) ( 69,029 ) Other (expense) income Interest income — — 124 124 Interest expense and financing charges — — ( 34,034 ) ( 34,034 ) Other, net — — ( 2,171 ) ( 2,171 ) Total other expense — — ( 36,081 ) ( 36,081 ) (Loss) income before income taxes $ ( 47,886 ) $ 1,073 $ ( 58,297 ) $ ( 105,110 ) Reconciliation of (loss) income from operations to segment adjusted operating income: Drilling Services Managed Services (Loss) income from operations $ ( 47,886 ) $ 1,073 Depreciation 54,565 — Segment adjusted operating income $ 6,679 $ 1,073 Year ended December 31, 2020 Drilling Services Managed Services Unallocated Consolidated (in thousands) Revenue Contract drilling services $ 112,013 $ — $ — $ 112,013 Management fees — 798 — 798 Reimbursables and other 13,634 417 — 14,051 Total revenue 125,647 1,215 — 126,862 Operating costs and expenses Operating costs 148,444 640 — 149,084 General and administrative — — 21,022 21,022 Depreciation 66,427 — 2,789 69,216 Loss on impairment 128,876 — — 128,876 Total operating costs and expenses 343,747 640 23,811 368,198 (Loss) income from operations ( 218,100 ) 575 ( 23,811 ) ( 241,336 ) Other (expense) income Interest income — — 871 871 Interest expense and financing charges — — ( 34,041 ) ( 34,041 ) Other, net — — 2,646 2,646 Total other expense — — ( 30,524 ) ( 30,524 ) (Loss) income before income taxes $ ( 218,100 ) $ 575 $ ( 54,335 ) $ ( 271,860 ) Reconciliation of (loss) income from operations to segment operating income (loss): Drilling Services Managed Services (Loss) income from operations $ ( 218,100 ) $ 575 Depreciation 66,427 — Loss on impairment 128,876 — Segment adjusted operating income (loss) $ ( 22,797 ) $ 575 |
Summary of Revenues by Country | Our revenues by country and segment were as follows: For the Years Ended December 31, Country Segment 2022 2021 2020 (in thousands) UAE Managed Services $ 81,715 $ 11,256 $ — Montenegro Drilling Services 3,272 43,402 — Qatar Drilling Services and Managed Services 14,319 30,250 21,679 India Drilling Services and Managed Services 54,786 29,492 31,836 Egypt Drilling Services 27,926 1,860 6,640 Cyprus Drilling Services 42,573 250 224 Indonesia Drilling Services and Managed Services 32,643 15,919 19,832 Lebanon Drilling Services — — 17,376 Congo Drilling Services — 3 13,299 Other countries Drilling Services and Managed Services 21,482 25,988 15,976 Total revenues $ 278,716 $ 158,420 $ 126,862 |
Summary of Revenue by Customers | Revenue with customers that contributed 10% or more of revenue for the periods indicated were as follows: Year Ended December 31, Segment 2022 2021 2020 Customer 1 Managed Services 31 % 7 % 0 % Customer 2 Drilling Services and Managed Services 20 % 19 % 25 % Customer 3 Drilling Services 10 % 1 % 5 % Customer 4 Drilling Services 15 % 27 % 10 % Customer 5 Drilling Services 5 % 13 % 0 % Customer 6 Drilling Services 1 % 6 % 31 % Customer 7 Drilling Services 6 % 0 % 12 % |
Schedule of Property and Equipment, Net by Country | Our property and equipment, net by country was as follows: December 31, 2022 December 31, 2021 (in thousands) International Waters (2) $ 158,785 $ — India 81,309 96,583 Indonesia 58,663 63,581 Egypt — 173,187 Other countries (1) 39,699 46,253 Total property and equipment $ 338,456 $ 379,604 (1) “Other countries” represent countries in which we operate that individually had property equipment, net representing less than 10% of total property and equipment, net. (2) Rig was mobilizing to a new contract location and not located within the territorial waters of any jurisdiction. |
Organization and Recent Events
Organization and Recent Events - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jun. 09, 2022 | May 27, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 14, 2023 | |
Organization And Recent Events [Line Items] | |||||||
Payment of adjustment escrow fund | $ 1,300 | ||||||
Net gain | $ (3,355) | $ (110,137) | $ (276,719) | ||||
TotalEnergies contract minimum term | 225 days | ||||||
EDC Support Services Agreements [Member] | |||||||
Organization And Recent Events [Line Items] | |||||||
Exchange for customary fees and reimbursements, support services term | 3 years | ||||||
Subsidiary Agreement | EDC Purchase Agreement [Member] | |||||||
Organization And Recent Events [Line Items] | |||||||
Purchase price consideration | $ 170,000 | ||||||
Contract preparation expense reimbursement | 30,000 | ||||||
Proceeds in escrow fund | $ 4,000 | ||||||
Net gain | $ 61,400 | ||||||
9.50% First Lien Notes | Subsequent Event | |||||||
Organization And Recent Events [Line Items] | |||||||
Issuance of debt | $ 200,000 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Schedule of Carrying Amounts of Assets and Liabilities of VIE (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 220,123 | $ 285,497 |
Current liabilities | 123,954 | 69,673 |
ADVantage | ||
Variable Interest Entity [Line Items] | ||
Current assets | 11,383 | 8,099 |
Non-current assets | 1,590 | 212 |
Current liabilities | 4,749 | 2,838 |
Non-current liabilities | 4,637 | 1,859 |
Net carrying amount | $ 3,587 | $ 3,614 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Sep. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) Customer | Dec. 31, 2021 USD ($) Customer | Dec. 31, 2020 USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Net gain (loss) on sale or retirement of assets | $ 1,600,000 | $ 2,640,000 | $ (52,000) | |
Impairment loss | 0 | 0 | ||
Capitalized interest | 0 | 0 | 0 | |
Loss on impairment | $ 0 | $ 0 | 128,876,000 | |
Number of customers | Customer | 4 | 3 | ||
Allowance for credit loss | $ 5,000,000 | $ 5,000,000 | ||
Foreign currency transaction gain (loss) | $ 3,700,000 | $ 2,200,000 | $ 400,000 | |
TBGs | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Vesting period | 4 years | |||
Terms of TBGs vesting and settlement | TBGs granted under the 2016 Amended MIP vest annually, ratably over four years; however, accelerated vesting is provided for in the event of a QLE. Otherwise, the settlement of any vested TBGs occurs upon the seventh anniversary of the effective date set forth in each individual award letter. | |||
PBGs | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Vesting period | 7 years | |||
Trade receivables | Customer Concentration Risk | Customer One | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Risk percentage | 30% | 19% | ||
Trade receivables | Customer Concentration Risk | Customer Two | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Risk percentage | 25% | 18% | ||
Trade receivables | Customer Concentration Risk | Customer Three | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Risk percentage | 17% | 10% | ||
Trade receivables | Customer Concentration Risk | Customer Four | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Risk percentage | 14% | |||
Minimum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Term of customer invoice payment | 30 days | |||
Maximum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Term of customer invoice payment | 45 days | |||
Drilling Equipment | Minimum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful lives | 5 years | |||
Drilling Equipment | Maximum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful lives | 35 years | |||
Office and Technology Equipment | Minimum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful lives | 3 years | |||
Office and Technology Equipment | Maximum | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Property, plant and equipment, useful lives | 7 years | |||
Titanium Explorer | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Loss on impairment | $ 128,900,000 | |||
9.25% First Lien Notes | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Debt instrument, interest rate | 9.25% | |||
Debt instrument, maturity date | Nov. 15, 2023 | |||
Fair value of notes outstanding | $ 178,200,000 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Schedule of Reconciliation of Number of Shares Used For Basic and Diluted EPS Computation (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Weighted average Ordinary Shares outstanding for basic EPS | 13,115,000 | 13,115,000 | 13,115,000 |
Adjusted weighted average Ordinary Shares outstanding for diluted EPS | 13,115,000 | 13,115,000 | 13,115,000 |
Restricted Shares Equity Award | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Restricted share equity awards | 0 | 0 | 0 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Schedule of Number of Shares Excluded from Diluted EPS Computation (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Future potentially dilutive Ordinary Shares excluded from diluted EPS | 221 | 218 | 200 |
Restricted Shares Equity Award | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Future potentially dilutive Ordinary Shares excluded from diluted EPS | 221 | 218 | 200 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Disaggregation Of Revenue [Line Items] | |
Term of customer invoice payment | 30 days |
Maximum | |
Disaggregation Of Revenue [Line Items] | |
Term of customer invoice payment | 45 days |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Disaggregated by Revenue (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 278,716 | $ 158,420 | $ 126,862 |
Jackups | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 56,520 | 115,215 | 69,565 |
Deepwater | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 122,674 | 31,602 | 56,082 |
Managed | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 99,522 | 11,603 | 1,215 |
Dayrate Revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 156,902 | 123,041 | 106,877 |
Dayrate Revenue | Jackups | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 42,375 | 90,614 | 59,624 |
Dayrate Revenue | Deepwater | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 101,351 | 30,076 | 46,455 |
Dayrate Revenue | Managed | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 13,176 | 2,351 | 798 |
Charter Lease Revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,707 | 476 | |
Charter Lease Revenue | Jackups | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,707 | 476 | |
Amortized Revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 8,048 | 11,013 | 5,934 |
Amortized Revenue | Jackups | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 2,321 | 10,491 | 1,889 |
Amortized Revenue | Deepwater | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 5,462 | 522 | 4,045 |
Amortized Revenue | Managed | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 265 | ||
Reimbursable Revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 111,059 | 24,366 | 13,575 |
Reimbursable Revenue | Jackups | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 9,117 | 14,110 | 7,576 |
Reimbursable Revenue | Deepwater | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 15,861 | 1,004 | 5,582 |
Reimbursable Revenue | Managed | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 86,081 | $ 9,252 | $ 417 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Contract Cost Assets and Contract Revenue Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Current contract cost assets | $ 7,324 | $ 1,405 |
Noncurrent contract cost assets | 0 | 6,832 |
Noncurrent contract cost assets - held for sale | 4,196 | |
Current contract revenue assets | 1,903 | |
Current contract revenue liabilities | 35,085 | 12,311 |
Noncurrent contract revenue liabilities | $ 0 | $ 1,893 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Schedule of Significant Changes in Contract Cost Assets and Contract Revenue Liabilities (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | ||
Revenue from Contract with Customer [Abstract] | ||
Beginning balance, contract cost assets | $ 12,433 | |
Increase due to contractual additions, contract cost assets | 7,757 | |
Decrease due to disposal of held for sale balances, contract cost assets | (3,895) | [1] |
Decrease due to recognition, contract cost assets | (8,971) | |
Ending balance, contract cost assets | 7,324 | [2] |
Beginning balance, contract revenue assets | 1,903 | |
Decrease due to recognition, contract revenue assets | (1,903) | |
Beginning balance, contract revenue liabilities | 14,204 | |
Increase due to contractual additions, contract revenue liabilities | 112,535 | |
Decrease due to recognition, contract revenue liabilities | (91,654) | |
Ending balance, contract revenue liabilities | $ 35,085 | [2] |
[1] ontract cost assets - held for sale” were included in the calculation of the gain recognized on the EDC Sale. See “ Note 1. Organization and Recent Events - Share Purchase Agreement to Sell EDC to ADES Arabia Holdings ” of these “Notes to the Consolidated Financial Statements” for additional information regarding such sale. We expect to recognize contract revenues of approximately $ 35.1 million in 2023 related to unsatisfied performance obligations existing as of December 31, 2022 , which includes $ 29.1 million related to customer prefunding of reimbursables . |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Schedule of Significant Changes in Contract Cost Assets and Contract Revenue Liabilities (Parenthetical) (Detail) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Disaggregation Of Revenue [Line Items] | |
Contract revenues, remaining performance obligation | $ 35.1 |
Contract revenues, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Customer prefunding reimbursible | $ 29.1 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Lessee Lease Description [Line Items] | |||
Total operating lease cost | $ 1,312 | $ 2,280 | |
Operating Costs | |||
Lessee Lease Description [Line Items] | |||
Total operating lease cost | [1] | 1,039 | 2,405 |
Sublease income | (485) | ||
General and Administrative | |||
Lessee Lease Description [Line Items] | |||
Total operating lease cost | [1] | 1,136 | 607 |
Sublease income | $ (863) | $ (247) | |
[1] Short-term lease costs were $ 0.4 million during each of the years ended December 31, 2022 and 2021 . Operating cash flows used for operating leases approximates lease expense. |
Leases - Components of Lease _2
Leases - Components of Lease Expense (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Short term lease costs | $ 0.4 | $ 0.4 |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases Included in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Operating lease assets | $ 1,648 | $ 2,450 |
Total leased assets | 1,648 | 2,647 |
Liabilities: | ||
Current operating | 1,520 | 1,710 |
Noncurrent operating | 222 | 969 |
Total lease liabilities | 1,742 | 2,875 |
Operating Lease ROU Assets | ||
Assets: | ||
Operating lease assets | 1,648 | 2,450 |
Operating Lease ROU Assets - Held for Sale | ||
Assets: | ||
Operating lease assets | 0 | 197 |
Other Current Liabilities | ||
Liabilities: | ||
Current operating | 1,520 | 1,710 |
Other Current Liabilities - Held for Sale | ||
Liabilities: | ||
Current operating | 0 | 103 |
Other Long-term Liabilities | ||
Liabilities: | ||
Noncurrent operating | 222 | 969 |
Other Long-term Liabilities - Held for Sale | ||
Liabilities: | ||
Noncurrent operating | $ 0 | $ 93 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 1,594 | |
2024 | 137 | |
2025 | 102 | |
2026 | 0 | |
2027 | 0 | |
Total future lease payments | 1,833 | |
Less imputed interest | (91) | |
Present value of lease obligations | $ 1,742 | $ 2,875 |
Leases - Additional Information
Leases - Additional Information (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted average discount rate for operating leases | 9.25% | 9.25% |
Weighted average remaining lease term for operating leases | 1 year 2 months 8 days | 1 year 6 months 21 days |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Less current maturities of long-term debt | $ 0 | $ 0 |
Long-term debt, net | 179,227 | 346,858 |
9.25% First Lien Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 179,227 | $ 346,858 |
Debt - Long-Term Debt (Parenthe
Debt - Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt financing cost | $ 773 | |
9.25% First Lien Notes | ||
Debt Instrument [Line Items] | ||
Debt financing cost | $ 773 | $ 3,142 |
Debt - Schedule of Aggregate Pr
Debt - Schedule of Aggregate Principal Maturities of Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |||
2023 | $ 180,000 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 0 | ||
Thereafter | 0 | ||
Total debt | [1] | 180,000 | |
Current maturities of long-term debt | 0 | $ 0 | |
Future amortization of financing costs | (773) | ||
Long-term debt | $ 179,227 | $ 346,858 | |
[1] Excludes financing costs of $ 0.8 million on the 9.25% First Lien Notes. |
Debt - Schedule of Aggregate _2
Debt - Schedule of Aggregate Principal Maturities of Long-term Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt financing cost | $ 773 | |
9.25% First Lien Notes | ||
Debt Instrument [Line Items] | ||
Debt financing cost | $ 773 | $ 3,142 |
Debt - First Lien Notes - Addit
Debt - First Lien Notes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Feb. 03, 2023 | Nov. 22, 2022 | Nov. 30, 2018 | Dec. 31, 2022 | Mar. 01, 2023 | Feb. 14, 2023 | Dec. 22, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||||
Letters of credit | $ 21,500 | |||||||
Letters of credit bank guarantees obligations | $ 13,600 | |||||||
9.25% First Lien Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Issuance of debt | $ 350,000 | |||||||
Debt instrument, interest rate | 9.25% | |||||||
Debt outstanding | $ 179,227 | $ 346,858 | ||||||
Debt instrument, maturity date | Nov. 15, 2023 | |||||||
Debt purchase price as percentage of principal amount | 100% | |||||||
Debt Instrument Principal and interest | $ 171,600 | |||||||
Debt instrument date of redemption | Mar. 06, 2023 | |||||||
9.25% First Lien Notes | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt purchase price as percentage of principal amount | 100% | |||||||
9.25% First Lien Notes | Credit Suisse Letter Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | 50,000 | |||||||
9.25% First Lien Notes | First Payment | Partial Redemption | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt outstanding | $ 170,000 | |||||||
9.25% First Lien Notes | First Payment | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of debt | $ 50,000 | |||||||
9.25% First Lien Notes | Full Conditional Redemption | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt outstanding | $ 180,000 | |||||||
9.50% First Lien Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | Feb. 15, 2028 | |||||||
Line of credit facility, maximum amount outstanding | $ 25,000 | |||||||
Debt instrument price percentage of aggregate principal amount | 25% | |||||||
Debt Instruments Interest Payable Period One | --02-15 | |||||||
Debt Instruments Interest Payable Period Two | --08-15 | |||||||
9.50% First Lien Notes | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Issuance of debt | $ 200,000 | |||||||
Debt instrument, interest rate | 9.50% | |||||||
9.50% First Lien Notes | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument excess of certain exceptions | $ 50,000 | |||||||
9.50% First Lien Notes | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument restricted subsidiary access | $ 30,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||||
Dec. 17, 2019 | Dec. 04, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 10, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | |||||
Ordinary shares, shares issued | 13,115,026 | 13,115,026 | 5,000,053 | ||||
Additional ordinary shares issued for convertible notes | 8,114,977 | ||||||
Ordinary shares, shares outstanding | 13,115,026 | 13,115,026 | |||||
Number of shares available for future grant | 356,488 | ||||||
Time-based Restricted Stock Unit | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share based compensation expense | $ 100,000 | $ 400,000 | $ 1,600,000 | ||||
Weighted average vesting period (years) | 2 months 4 days | ||||||
Total award date value of time vested restricted shares | $ 100,000 | ||||||
Performance-based Restricted Stock Unit | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share based compensation expense | $ 0 | ||||||
Weighted average vesting period (years) | 1 month 9 days | ||||||
Ordinary Shares | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Ordinary shares, shares outstanding | 13,115,000 | 13,115,000 | 13,115,000 | 13,115,000 | |||
Special Cash Distribution | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Distribution paid | $ 525,000,000 | ||||||
Distribution paid per share | $ 40.03 | ||||||
Record date | Dec. 10, 2019 | ||||||
Payable date | Dec. 17, 2019 | ||||||
Special Cash Distribution | Time-based Restricted Stock Unit | Other Current Liabilities | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Dividends cash | $ 5,300,000 | ||||||
Special Cash Distribution | Time-based Restricted Stock Unit | Other Long-term Liabilities | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Dividends cash | $ 3,500,000 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Status of Non-Vested Restricted Units and Changes (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Time Vested Restricted Units | ||
Non-vested restricted units | ||
Nonvested restricted units, Beginning balance | 2,483 | 20,707 |
Vested | (1,564) | (18,224) |
Nonvested restricted units, Ending balance | 919 | 2,483 |
Weighted Average Award Date Unit Price | ||
Weighted Average Award Date Unit Price, Beginning balance | $ 66.26 | $ 66.26 |
Weighted Average Award Date Unit Price, Vested | 66.26 | 66.26 |
Weighted Average Award Date Unit Price, Ending balance | $ 66.26 | $ 66.26 |
Performance Vested Restricted Units | ||
Non-vested restricted units | ||
Nonvested restricted units, Beginning balance | 386,188 | 434,437 |
Forfeited | (48,249) | |
Nonvested restricted units, Ending balance | 386,188 | 386,188 |
Weighted Average Award Date Unit Price | ||
Weighted Average Award Date Unit Price, Beginning balance | $ 66.26 | $ 66.26 |
Weighted Average Award Date Unit Price, Forfeited | 66.26 | |
Weighted Average Award Date Unit Price, Ending balance | $ 66.26 | $ 66.26 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current | $ 3,605 | $ 4,772 | $ 4,676 |
Deferred | 708 | 369 | 221 |
Total | $ 4,313 | $ 5,141 | $ 4,897 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory and Effective Income Tax Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory rate | 0% | 0% | 0% |
Taxes on foreign earnings | 806.10% | (7.80%) | (2.50%) |
Uncertain tax positions | (154.40%) | 1.20% | 0.30% |
Other | (195.20%) | 1.70% | 0.40% |
Total | 456.50% | (4.90%) | (1.80%) |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred tax assets: | |||
Share-based compensation | $ 1,168 | $ 1,168 | |
Accrued bonuses/compensation | 199 | 146 | |
Special compensation | 0 | 203 | |
Start-up costs | 0 | 11 | |
Loss carry-forwards | 2,469 | 1,595 | |
Property and equipment | 191 | 0 | |
Deferred revenue | 249 | 88 | |
Total deferred tax assets | 4,276 | 3,211 | |
Valuation allowance | (2,362) | (1,590) | |
Net deferred tax assets | 1,914 | 1,621 | |
Deferred tax liabilities: | |||
Property and equipment | 0 | (1,007) | |
Deferred cost | 0 | (4) | |
Other deferred tax liability | (747) | (24) | |
Total deferred tax liabilities | (747) | (1,035) | |
Net deferred tax asset | [1] | $ 1,167 | $ 586 |
[1] Includes $ 1.2 million deferred income taxes within "Liabilities held for sale" on our Consolidated Balance Sheets as of December 31, 2021. |
Income Taxes - Components of _2
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Parenthetical) (Detail) $ in Thousands | Dec. 31, 2021 USD ($) |
Disclosure Components Of Net Deferred Tax Assets And Liabilities [Abstract] | |
Deferred income taxes | $ 1,190 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Income Tax Contingency [Line Items] | |
Foreign Tax loss carry forwards | $ 8.8 |
Foreign Tax loss carry forwards year of expiration | 2023 |
Income tax net interest and penalties benefit | $ (0.2) |
Income Tax expense accrued interest and penalties | $ 0.3 |
Minimum | |
Income Tax Contingency [Line Items] | |
Open tax year | 2012 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits Excluding Interest And Penalties (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Gross Beginning Balance | $ 1,787 |
Additions based on tax positions related to the current year | 91 |
Expiration of statues | (1,365) |
Gross Ending Balance | 513 |
Related tax benefits | 0 |
Net Uncertain Tax Positions Ending Balance | $ 513 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) R$ in Millions, $ in Millions | 12 Months Ended | ||||||
Mar. 25, 2020 USD ($) | Mar. 04, 2020 USD ($) | Feb. 13, 2019 USD ($) | Apr. 27, 2018 BRL (R$) Defendant | Apr. 27, 2018 USD ($) Defendant | Dec. 31, 2022 USD ($) | Dec. 31, 2020 USD ($) | |
Loss Contingencies [Line Items] | |||||||
Purchase commitments | $ 19.9 | ||||||
Brazil Improbity Action | Brazil | |||||||
Loss Contingencies [Line Items] | |||||||
Allegations - description | On April 27, 2018, the Company was added as an additional defendant in a legal proceeding (the "Improbity Action"), initiated by the Brazilian Federal Prosecutor against certain individuals, including an executive of Petrobras and two political lobbyists, in connection with the contracting of the Titanium Explorer drillship to Petrobras under the Agreement for the Provision of Drilling Services for the Titanium Explorer, dated February 4, 2009, between Petrobras Venezuela Investments & Services, BV and Vantage Deepwater Company (and subsequently novated to Petrobras America, Inc. and Vantage Deepwater Drilling, Inc.), with the Brazilian government and Petrobras as plaintiffs. Vantage is alleged to have been involved in and benefitted from the purported bribery scheme at Petrobras through Hamylton Padilha, the Brazilian agent, our former parent company, VDC, used in the contracting of the Titanium Explorer drillship to Petrobras, and Mr. Hsin -Chi Su, a former member of VDC’s board of directors and a significant shareholder of VDC. We first became aware of the legal proceeding on July 19, 2018 as it was previously under seal. | ||||||
Loss contingency, damages claimed | R$ 102.8 | $ 20.1 | |||||
Court authorization to seizure and freezing assets of defendants | $ 80.1 | ||||||
Loss contingency, number of defendants | Defendant | 3 | 3 | |||||
Loss contingency, actions taken by court | On February 13, 2019, we learned that the Brazilian Federal Prosecutor had previously requested mutual legal assistance from the DOJ pursuant to the United Nations Convention against Corruption of 2003 to obtain a freezing order against the Company’s U.S. assets in the amount of approximately $80.1 million. | ||||||
Brazil Improbity Action | United States | |||||||
Loss Contingencies [Line Items] | |||||||
Court authorization to seizure and freezing assets of defendants | $ 80.1 | ||||||
Restructuring Agreement and the Associated Settlement Agreement | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation settlement, amount awarded to other party | $ 15 | ||||||
Agreement settlement amount paid | $ 15 | ||||||
Restructuring Agreement and the Associated Settlement Agreement | Other Income | |||||||
Loss Contingencies [Line Items] | |||||||
Gain (loss) related to litigation settlement | $ 2.3 |
Supplemental Financial Inform_3
Supplemental Financial Information - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Sales tax receivable | $ 5,407 | $ 8,445 |
Down payments to vendors | 6,269 | 972 |
Prepaid fuel | 3,200 | 2,350 |
Income tax receivable | 1,373 | 1,423 |
Current deferred contract costs | 7,324 | 1,405 |
Current contract asset | 1,903 | |
Other | 2,048 | 1,811 |
Prepaid expenses and other current assets | $ 25,621 | $ 18,309 |
Supplemental Financial Inform_4
Supplemental Financial Information - Assets Held for Sale (Detail) $ in Thousands | Dec. 31, 2021 USD ($) |
Assets, Current [Abstract] | |
Trade receivables, net | $ 7,306 |
Materials and supplies | 13,510 |
Prepaid expenses and other current assets | 3,768 |
Property & equipment, net | 87,441 |
Noncurrent deferred contract costs | 4,196 |
Operating lease ROU assets | 197 |
Other noncurrent assets | 699 |
Assets held for sale | $ 117,117 |
Supplemental Financial Inform_5
Supplemental Financial Information - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 647,909 | $ 645,622 |
Accumulated depreciation | (309,453) | (266,018) |
Property and equipment, net | 338,456 | 379,604 |
Drilling Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 624,739 | 626,546 |
Assets under Construction | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 4,075 | 148 |
Office and Technology Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 18,405 | 18,405 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 690 | $ 523 |
Supplemental Financial Inform_6
Supplemental Financial Information - Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Noncurrent restricted cash | $ 2,781 | $ 15,644 |
Deferred certification costs | 3,308 | 5,199 |
Noncurrent deferred contract costs | 0 | 6,832 |
Deferred income taxes | 1,897 | 1,776 |
Noncurrent sales tax receivable | 4,766 | |
Noncurrent security deposits | 5,582 | 2,392 |
Total other assets | $ 18,334 | $ 31,843 |
Supplemental Financial Inform_7
Supplemental Financial Information - Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |||
Interest | $ 2,126 | $ 4,136 | |
Compensation | [1] | 8,786 | 7,040 |
2016 MIP - Dividend equivalent | [2] | 5,278 | |
Income taxes payable | 2,662 | 5,589 | |
Current deferred revenue | 35,085 | 12,311 | |
Current portion of operating lease liabilities | 1,520 | 1,710 | |
Current customer prefunding | 10,049 | ||
Other | 673 | 747 | |
Other current liabilities | $ 66,179 | $ 31,533 | |
[1] Includes $ 2.3 million as of December 31, 2021 related to cash awards granted to certain key employees of the Company pursuant to underlying award agreements and issued under the 2016 MIP. The final payout of this cash award was made in June 2022. “Dividend equivalents” on vested TBGs are payable upon settlement of the applicable award. See “ Note 6. Shareholders’ Equity ” of these “Notes to Consolidated Financial Statements” for additional information regarding the Dividend Equivalents. |
Supplemental Financial Inform_8
Supplemental Financial Information - Other Current Liabilities (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Current Liabilities [Line Items] | |||
Compensation | [1] | $ 8,786 | $ 7,040 |
Cash Awards To Certain Key Employees | |||
Other Current Liabilities [Line Items] | |||
Compensation | $ 2,300 | ||
[1] Includes $ 2.3 million as of December 31, 2021 related to cash awards granted to certain key employees of the Company pursuant to underlying award agreements and issued under the 2016 MIP. The final payout of this cash award was made in June 2022. |
Supplemental Financial Inform_9
Supplemental Financial Information - Liabilities Held for Sale (Detail) $ in Thousands | Dec. 31, 2021 USD ($) |
Liabilities, Current [Abstract] | |
Accounts payable | $ 4,140 |
Compensation | 464 |
Income taxes payable | 716 |
Current portion of operating lease liabilities | 103 |
Deferred income taxes | 1,190 |
Noncurrent operating lease liabilities | 93 |
Other | 14 |
Liabilities Held for Sale | $ 6,720 |
Supplemental Financial Infor_10
Supplemental Financial Information - Other Long-term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Liabilities, Noncurrent [Abstract] | |||
Deferred income taxes | $ 730 | ||
2016 MIP - Dividend equivalents | [1] | 3,520 | $ 8,735 |
Noncurrent deferred revenue | 0 | 1,893 | |
Noncurrent operating lease liabilities | 222 | 969 | |
Noncurrent customer prefunding | 3,950 | ||
Indirect tax contingencies | 4,339 | 4,925 | |
Other noncurrent liabilities | 120 | 490 | |
Other long-term liabilities | $ 12,881 | $ 17,012 | |
[1] Dividend Equivalents on vested TBGs are payable on settlement of the applicable award. See “ Note 6. Shareholders’ Equity ” of these “Notes to Consolidated Financial Statements” for additional information regarding the Dividend Equivalents. |
Supplemental Financial Infor_11
Supplemental Financial Information - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 74,026 | $ 73,343 |
Restricted cash | 16,450 | 1,621 |
Restricted cash included within Other assets | $ 2,781 | $ 15,644 |
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | $ 93,257 | $ 90,608 |
Supplemental Financial Infor_12
Supplemental Financial Information - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
ADES | |||
Supplemental Financial Information [Line Items] | |||
Revenue recognized | $ 8,100,000 | ||
Aquadrill | |||
Supplemental Financial Information [Line Items] | |||
Revenue recognized | $ 84,900,000 | $ 11,200,000 | |
ADVantage | Shareholder Loan | |||
Supplemental Financial Information [Line Items] | |||
Cash contributions in excess of issued capital of joint venture | $ 691,000 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Entity Wide Revenue Major Customer [Line Items] | |
Number of reportable segments | 2 |
Business Segment Information _2
Business Segment Information - Summary of Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Total revenue | $ 278,716 | $ 158,420 | $ 126,862 |
Operating costs and expenses | |||
Operating costs | 234,832 | 150,668 | 149,084 |
General and administrative | 23,009 | 20,539 | 21,022 |
Depreciation | 44,428 | 56,242 | 69,216 |
Gain on EDC Sale | (61,409) | 0 | 0 |
Loss on impairment | 0 | 0 | 128,876 |
Total operating costs and expenses | 240,860 | 227,449 | 368,198 |
Income (Loss) from operations | 37,856 | (69,029) | (241,336) |
Other (expense) income | |||
Interest income | 1,108 | 124 | 871 |
Interest expense and other financing charges | (34,351) | (34,034) | (34,041) |
Other, net | (3,668) | (2,171) | 2,646 |
Total other expense | (36,911) | (36,081) | (30,524) |
Income (loss) before income taxes | 945 | (105,110) | (271,860) |
Reconciliation of (loss) income from operations to segment adjusted operating income: | |||
(Loss) income from operations | 37,856 | (69,029) | (241,336) |
Depreciation expense | 44,428 | 56,242 | 69,216 |
Contract Drilling Services | |||
Revenue | |||
Total revenue | 154,116 | 131,703 | 112,013 |
Management Fees | |||
Revenue | |||
Total revenue | 10,834 | 2,351 | 798 |
Reimbursables and Other | |||
Revenue | |||
Total revenue | 113,766 | 24,366 | 14,051 |
Operating Segments | Drilling Services | |||
Revenue | |||
Total revenue | 179,194 | 146,817 | 125,647 |
Operating costs and expenses | |||
Operating costs | 142,935 | 140,138 | 148,444 |
Depreciation | 42,813 | 54,565 | 66,427 |
Loss on impairment | 128,876 | ||
Total operating costs and expenses | 185,748 | 194,703 | 343,747 |
Income (Loss) from operations | (6,554) | (47,886) | (218,100) |
Other (expense) income | |||
Income (loss) before income taxes | (6,554) | (47,886) | (218,100) |
Reconciliation of (loss) income from operations to segment adjusted operating income: | |||
(Loss) income from operations | (6,554) | (47,886) | (218,100) |
Depreciation expense | 42,813 | 54,565 | 66,427 |
Segment adjusted operating income | 36,259 | 6,679 | (22,797) |
Operating Segments | Drilling Services | Contract Drilling Services | |||
Revenue | |||
Total revenue | 151,509 | 131,703 | 112,013 |
Operating Segments | Drilling Services | Reimbursables and Other | |||
Revenue | |||
Total revenue | 27,685 | 15,114 | 13,634 |
Operating Segments | Managed Services | |||
Revenue | |||
Total revenue | 99,522 | 11,603 | 1,215 |
Operating costs and expenses | |||
Operating costs | 91,896 | 10,530 | 640 |
Total operating costs and expenses | 91,896 | 10,530 | 640 |
Income (Loss) from operations | 7,626 | 1,073 | 575 |
Other (expense) income | |||
Income (loss) before income taxes | 7,626 | 1,073 | 575 |
Reconciliation of (loss) income from operations to segment adjusted operating income: | |||
(Loss) income from operations | 7,626 | 1,073 | 575 |
Segment adjusted operating income | 7,626 | 1,073 | 575 |
Operating Segments | Managed Services | Contract Drilling Services | |||
Revenue | |||
Total revenue | 2,607 | ||
Operating Segments | Managed Services | Management Fees | |||
Revenue | |||
Total revenue | 10,834 | 2,351 | 798 |
Operating Segments | Managed Services | Reimbursables and Other | |||
Revenue | |||
Total revenue | 86,081 | 9,252 | 417 |
Operating Segments | Unallocated | |||
Operating costs and expenses | |||
Operating costs | 1 | ||
General and administrative | 23,009 | 20,539 | 21,022 |
Depreciation | 1,615 | 1,677 | 2,789 |
Gain on EDC Sale | (61,409) | ||
Total operating costs and expenses | (36,784) | 22,216 | 23,811 |
Income (Loss) from operations | 36,784 | (22,216) | (23,811) |
Other (expense) income | |||
Interest income | 1,108 | 124 | 871 |
Interest expense and other financing charges | (34,351) | (34,034) | (34,041) |
Other, net | (3,668) | (2,171) | 2,646 |
Total other expense | (36,911) | (36,081) | (30,524) |
Income (loss) before income taxes | (127) | (58,297) | (54,335) |
Reconciliation of (loss) income from operations to segment adjusted operating income: | |||
(Loss) income from operations | 36,784 | (22,216) | (23,811) |
Depreciation expense | $ 1,615 | $ 1,677 | $ 2,789 |
Business Segment Information _3
Business Segment Information - Summary of Revenues by Country (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | $ 278,716 | $ 158,420 | $ 126,862 |
UAE | Managed Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 81,715 | 11,256 | |
Montenegro | Drilling Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 3,272 | 43,402 | |
Qatar | Drilling Services and Managed Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 14,319 | 30,250 | 21,679 |
India | Drilling Services and Managed Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 54,786 | 29,492 | 31,836 |
Egypt | Drilling Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 27,926 | 1,860 | 6,640 |
Cyprus | Drilling Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 42,573 | 250 | 224 |
Indonesia | Drilling Services and Managed Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 32,643 | 15,919 | 19,832 |
Lebanon | Drilling Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 17,376 | ||
Congo | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 2,020 | ||
Congo | Drilling Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 3 | 13,299 | |
Other countries | Drilling Services and Managed Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | $ 21,482 | $ 25,988 | $ 15,976 |
Business Segment Information _4
Business Segment Information - Summary of Revenue by Customers (Details) - Customer Concentration Risk - Sales | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Customer One | Managed Services | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue (excluding reimbursable revenue) | 31% | 7% | 0% |
Customer Two | Drilling Services and Managed Services | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue (excluding reimbursable revenue) | 20% | 19% | 25% |
Customer Three | Drilling Services | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue (excluding reimbursable revenue) | 10% | 1% | 5% |
Customer Four | Drilling Services | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue (excluding reimbursable revenue) | 15% | 27% | 10% |
Customer Five | Drilling Services | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue (excluding reimbursable revenue) | 5% | 13% | 0% |
Customer Six | Drilling Services | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue (excluding reimbursable revenue) | 1% | 6% | 31% |
Customer Seven | Drilling Services | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue (excluding reimbursable revenue) | 6% | 0% | 12% |
Business Segment Information _5
Business Segment Information - Schedule of Property and Equipment, Net by Country (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | $ 338,456 | $ 379,604 | |
International Waters | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | [1] | 158,785 | |
India | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 81,309 | 96,583 | |
Indonesia | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 58,663 | 63,581 | |
Egypt | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 173,187 | ||
Other countries | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | [2] | $ 39,699 | $ 46,253 |
[1] Rig was mobilizing to a new contract location and not located within the territorial waters of any jurisdiction. “Other countries” represent countries in which we operate that individually had property equipment, net representing less than 10% of total property and equipment, net. |