Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 08, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | DO | |
Entity Registrant Name | DIAMOND OFFSHORE DRILLING, INC. | |
Entity Central Index Key | 0000949039 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 101,381,096 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Entity Current Reporting Status | Yes | |
Entity File Number | 1-13926 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 76-0321760 | |
Entity Address, Address Line One | 15415 Katy Freeway | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77094 | |
City Area Code | 281 | |
Local Phone Number | 492-5300 | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Bankruptcy Proceedings, Reporting Current | true |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 42,897 | $ 38,388 |
Restricted cash | 14,727 | 24,341 |
Accounts receivable | 156,984 | 151,917 |
Less: allowance for credit losses | (5,610) | (5,582) |
Accounts receivable, net | 151,374 | 146,335 |
Prepaid expenses and other current assets | 65,871 | 61,440 |
Asset held for sale | 0 | 1,000 |
Total current assets | 274,869 | 271,504 |
Drilling and other property and equipment, net of accumulated depreciation | 1,159,535 | 1,175,895 |
Other assets | 80,319 | 84,041 |
Total assets | 1,514,723 | 1,531,440 |
Current liabilities: | ||
Accounts payable | 48,942 | 38,661 |
Accrued liabilities | 145,730 | 143,736 |
Taxes payable | 26,774 | 34,500 |
Current finance lease liabilities | 16,401 | 15,865 |
Total current liabilities | 237,847 | 232,762 |
Long-term debt | 306,438 | 266,241 |
Noncurrent finance lease liabilities | 140,087 | 148,358 |
Deferred tax liability | 2,306 | 1,626 |
Other liabilities | 104,193 | 114,748 |
Commitments and contingencies (Note 8) | ||
Total liabilities | 790,871 | 763,735 |
Stockholders’ equity: | ||
Preferred stock (par value $0.0001, 50,000 shares authorized, none issued and outstanding at June 30, 2022 and December 31, 2021) | 0 | 0 |
Common stock (par value $0.0001, 750,000 shares authorized; 100,149 shares issued and 100,131 shares outstanding at June 30, 2022 and 100,075 shares issued and outstanding at December 31, 2021) | 10 | 10 |
Additional paid-in capital | 957,608 | 945,039 |
Treasury stock | (139) | 0 |
Accumulated deficit | (233,627) | (177,344) |
Total stockholders’ equity | 723,852 | 767,705 |
Total liabilities and stockholders’ equity | $ 1,514,723 | $ 1,531,440 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000 | 50,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 750,000 | 750,000 |
Common stock, shares issued | 100,149 | 100,075 |
Common stock, shares outstanding | 100,131 | 100,075 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended |
Apr. 23, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Apr. 23, 2021 | Jun. 30, 2022 | |
Revenues: | |||||
Total revenues | $ 34,562 | $ 114,911 | $ 205,702 | $ 169,379 | $ 391,941 |
Operating expenses: | |||||
Depreciation | 18,132 | 18,735 | 25,693 | 92,758 | 52,645 |
General and administrative | 2,670 | 16,217 | 19,753 | 15,036 | 36,485 |
Impairment of assets | 0 | 197,027 | 0 | ||
Gain on disposition of assets | (85) | (176) | (685) | (5,486) | (4,729) |
Total operating expenses | 64,410 | 142,059 | 215,465 | 496,438 | 435,620 |
Operating loss | (29,848) | (27,148) | (9,763) | (327,059) | (43,679) |
Other income (expense): | |||||
Interest income | 0 | 1 | 0 | 30 | 1 |
Interest expense, net of amounts capitalized | (2,265) | (7,097) | (10,103) | (34,827) | (18,428) |
Foreign currency transaction gain (loss) | (797) | (914) | 1,607 | (172) | (522) |
Reorganization items, net | (1,604,512) | (5,538) | 0 | (1,639,763) | 0 |
Other, net | (90) | 10,706 | (47) | 398 | 1,315 |
Loss before income tax (expense) benefit | (1,637,512) | (29,990) | (18,306) | (2,001,393) | (61,313) |
Income tax (expense) benefit | 37,204 | (17,303) | (3,623) | 39,404 | 5,030 |
Net loss | $ (1,600,308) | $ (47,293) | $ (21,929) | $ (1,961,989) | $ (56,283) |
Loss per share, Basic | $ (11.59) | $ (0.47) | $ (0.22) | $ (14.21) | $ (0.56) |
Loss per share, Diluted | $ (11.59) | $ (0.47) | $ (0.22) | $ (14.21) | $ (0.56) |
Weighted-average shares outstanding, Basic | 138,054 | 100,059 | 100,108 | 138,054 | 100,092 |
Weighted-average shares outstanding, Diluted | 138,054 | 100,059 | 100,108 | 138,054 | 100,092 |
Contract Drilling [Member] | |||||
Revenues: | |||||
Total revenues | $ 30,811 | $ 98,033 | $ 176,879 | $ 153,364 | $ 327,131 |
Operating expenses: | |||||
Contract drilling, excluding depreciation | 40,053 | 90,711 | 142,150 | 181,626 | 287,052 |
Reimbursable Expenses [Member] | |||||
Revenues: | |||||
Total revenues | 3,751 | 16,878 | 28,823 | 16,015 | 64,810 |
Operating expenses: | |||||
Contract drilling, excluding depreciation | $ 3,640 | $ 16,572 | $ 28,554 | $ 15,477 | $ 64,167 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 1 Months Ended | 4 Months Ended |
Apr. 23, 2021 | Apr. 23, 2021 | |
Income Statement [Abstract] | ||
Contractual interest expense of debt | $ 7,124 | $ 35,390 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2020 | $ 1,982,566 | $ 1,453 | $ 2,029,979 | $ 157,297 | $ (206,163) |
Beginning Balance, shares at Dec. 31, 2020 | 145,264,000 | 7,210,000 | |||
Net loss | (1,961,989) | (1,961,989) | |||
Cancellation of Predecessor equity | (20,577) | $ (1,453) | (2,029,979) | 1,804,692 | $ 206,163 |
Cancellation of Predecessor equity, shares | (145,264,000) | (7,210,000) | |||
Ending Balance at Apr. 23, 2021 | 0 | $ 0 | 0 | 0 | $ 0 |
Ending Balance, shares at Apr. 23, 2021 | 0 | 0 | |||
Beginning Balance at Mar. 31, 2021 | 1,620,885 | $ 1,453 | 2,029,979 | (204,384) | $ (206,163) |
Beginning Balance, shares at Mar. 31, 2021 | 145,264,000 | 7,210,000 | |||
Net loss | (1,600,308) | (1,600,308) | |||
Cancellation of Predecessor equity | (20,577) | $ (1,453) | (2,029,979) | 1,804,692 | $ 206,163 |
Cancellation of Predecessor equity, shares | (145,264,000) | (7,210,000) | |||
Ending Balance at Apr. 23, 2021 | 0 | $ 0 | 0 | 0 | $ 0 |
Ending Balance, shares at Apr. 23, 2021 | 0 | 0 | |||
Issuance of Successor equity | 934,810 | $ 10 | 934,800 | ||
Issuance of Successor equity, shares | 100,000,000 | ||||
Ending Balance at Apr. 24, 2021 | 934,810 | $ 10 | 934,800 | ||
Ending Balance, shares at Apr. 24, 2021 | 100,000,000 | ||||
Beginning Balance at Apr. 23, 2021 | 0 | $ 0 | 0 | 0 | $ 0 |
Beginning Balance, shares at Apr. 23, 2021 | 0 | 0 | |||
Net loss | (47,293) | (47,293) | |||
Stock-based compensation, net of tax | 992 | 992 | |||
Stock-based compensation, net of tax, shares | 75,000 | ||||
Ending Balance at Jun. 30, 2021 | 888,509 | $ 10 | 935,792 | (47,293) | |
Ending Balance, shares at Jun. 30, 2021 | 100,075,000 | ||||
Beginning Balance at Dec. 31, 2021 | 767,705 | $ 10 | 945,039 | (177,344) | |
Beginning Balance, shares at Dec. 31, 2021 | 100,075,000 | ||||
Net loss | (56,283) | (56,283) | |||
Stock-based compensation, net of tax | 12,430 | 12,569 | $ (139) | ||
Stock-based compensation, net of tax, shares | 56,000 | 18,000 | |||
Ending Balance at Jun. 30, 2022 | 723,852 | $ 10 | 957,608 | (233,627) | $ (139) |
Ending Balance, shares at Jun. 30, 2022 | 100,131,000 | 18,000 | |||
Beginning Balance at Mar. 31, 2022 | 737,823 | $ 10 | 949,511 | (211,698) | |
Beginning Balance, shares at Mar. 31, 2022 | 100,075,000 | ||||
Net loss | (21,929) | (21,929) | |||
Stock-based compensation, net of tax | 7,958 | 8,097 | $ (139) | ||
Stock-based compensation, net of tax, shares | 56,000 | 18,000 | |||
Ending Balance at Jun. 30, 2022 | $ 723,852 | $ 10 | $ 957,608 | $ (233,627) | $ (139) |
Ending Balance, shares at Jun. 30, 2022 | 100,131,000 | 18,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 2 Months Ended | 4 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Apr. 23, 2021 | Jun. 30, 2022 | |
Operating activities: | |||
Net loss | $ (47,293) | $ (1,961,989) | $ (56,283) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 18,735 | 92,758 | 52,645 |
Loss on impairment of assets | 0 | 197,027 | 0 |
Reorganization items, net | 1,587,392 | ||
Gain on disposition of assets | (176) | (5,486) | (4,729) |
Deferred tax provision | 9,952 | (35,894) | (1,975) |
Stock-based compensation expense | 1,134 | 12,658 | |
Contract liabilities, net | 23,572 | 10,617 | (20,870) |
Contract assets, net | (509) | (742) | (3,348) |
Deferred contract costs, net | (14,987) | (12,034) | (3,859) |
Collateral deposits | 17,464 | ||
Other assets, noncurrent | (1,426) | 2,685 | (443) |
Other liabilities, noncurrent | 458 | (371) | 428 |
Other | 654 | 3,158 | 842 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (53,759) | 2,108 | (5,039) |
Prepaid expenses and other current assets | (26) | (2,791) | (9,417) |
Accounts payable and accrued liabilities | (9,972) | 29,302 | 28,832 |
Taxes payable | 7,604 | (5,804) | (17,711) |
Net cash used in operating activities | (66,039) | (100,064) | (10,805) |
Investing activities: | |||
Capital expenditures | (23,973) | (49,119) | (32,353) |
Proceeds from disposition of assets, net of disposal costs | 193 | 7,484 | 5,788 |
Net cash used in investing activities | (23,780) | (41,635) | (26,565) |
Financing activities: | |||
Repayment of borrowings under revolving credit facility | (442,034) | ||
Proceeds from exit facilities | 30,000 | 200,000 | 40,000 |
Issuance of exit notes | 75,000 | ||
Principal payments of finance lease liabilities | (2,240) | (7,735) | |
Debt issuance costs and arrangement fees | (6,218) | ||
Net cash provided by (used in) financing activities | 27,760 | (173,252) | 32,265 |
Net change in cash, cash equivalents and restricted cash | (62,059) | (314,951) | (5,105) |
Cash, cash equivalents and restricted cash, beginning of period | 115,429 | 430,380 | 62,729 |
Cash, cash equivalents and restricted cash, end of period | $ 53,370 | $ 115,429 | $ 57,624 |
General Information
General Information | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
General Information | 1. General Information The unaudited condensed consolidated financial statements of Diamond Offshore Drilling, Inc. and subsidiaries, which we refer to as “Diamond Offshore,” “Company,” “we,” “us” or “our,” should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021, as amended by Amendment No. 1 on Form 10-K/A (File No. 1-13926). To facilitate our financial statement presentations, we refer to the post-emergence reorganized company in these unaudited condensed consolidated financial statements and footnotes as the “Successor” for periods subsequent to April 23, 2021 and to the pre-emergence company as the “Predecessor” for periods on or prior to April 23, 2021. This delineation between Predecessor periods and Successor periods is shown in the unaudited condensed consolidated financial statements, certain tables within the footnotes to the unaudited condensed consolidated financial statements and other parts of this Quarterly Report on Form 10-Q through the use of a black line, calling out the lack of comparability between periods. Interim Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, pursuant to such rules and regulations, they do not include all disclosures required by GAAP for annual financial statements. The condensed consolidated financial information has not been audited but, in the opinion of management, includes all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of Diamond Offshore’s condensed consolidated balance sheets, statements of operations, statements of stockholders’ equity and statements of cash flows at the dates and for the periods indicated. Results of operations for interim periods are not necessarily indicative of results of operations for the respective full years. Fresh Start Accounting Upon our emergence from bankruptcy on April 23, 2021 (or the Effective Date), we met the criteria for and were required to adopt fresh start accounting in accordance with the Financial Accounting Standards Board (or FASB) Accounting Standards Codification Topic No. 852 – Reorganizations , which on the Effective Date resulted in a new entity, the Successor, for financial reporting purposes, with no beginning retained earnings or deficit as of the fresh start reporting date. Fresh start accounting requires that new fair values be established for the Company’s assets, liabilities, and equity as of the Effective Date. The Effective Date fair values of the Successor’s assets and liabilities differ materially from their recorded values as reflected on the historical balance sheets of the Predecessor. In addition, as a result of the application of fresh start accounting and the effects of the implementation of our restructuring plan, the financial statements for periods after April 23, 2021 will not be comparable with the financial statements prior to and including April 23, 2021. References to “Successor” refer to the Company and its financial position and results of operations after the Effective Date (including December 31, 2021, June 30, 2022, the three-month and six-month periods ended June 30, 2022 and the period from April 24, 2021 through June 30, 2021). References to “Predecessor” refer to the Company and its financial position and results of operations on or before the Effective Date (including the period from January 1, 2021 through April 23, 2021 and the period from April 1, 2021 through April 23, 2021). Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles (or GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated. Restricted Cash We maintain a restricted cash bank account which is subject to restrictions pursuant to a management and marketing services agreement with an offshore drilling company. See Note 2 “Revenue from Contracts with Customers.” We classify such restricted cash accounts in current assets if the restrictions are expected to expire or otherwise be resolved within one year or if such funds are considered to offset current liabilities. At June 30, 2022 and December 31, 2021, our restricted cash was considered to be current and was recorded in “Restricted cash” in our unaudited Condensed Consolidated Balance Sheets. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 2. Revenue from Contracts with Customers The activities that primarily drive the revenue earned from our contract drilling services include (i) providing a drilling rig and the crew and supplies necessary to operate the rig, (ii) mobilizing and demobilizing the rig to and from the drill site and (iii) performing rig preparation activities and/or modifications required for the contract. Consideration received for performing these activities may consist of dayrate drilling revenue, mobilization and demobilization revenue, contract preparation revenue and reimbursement revenue. We account for these integrated services provided within our drilling contracts as a single performance obligation satisfied over time and comprised of a series of distinct time increments in which we provide drilling services. Consideration for activities that are not distinct within the context of our contracts and do not correspond to a distinct time increment within the contract term are allocated across the single performance obligation and recognized ratably over the initial term of the contract (which is the period we estimate to be benefited from the corresponding activities and generally ranges from two to 60 months ). Such consideration may include mobilization, demobilization, contract preparation and capital modification revenue that is stipulated in our drilling contracts. Consideration for activities that correspond to a distinct time increment within the contract term is recognized in the period when the services are performed. The total transaction price is determined for each individual contract by estimating both fixed and variable consideration expected to be earned over the term of the contract. Revenues Related to Managed Rigs In May 2021, we entered into an arrangement with Aquadrill LLC, an offshore drilling company, for us to provide management and marketing services (or the MMSA) for three of its rigs. In July 2022, we received notice of termination of the MMSA for one of these rigs, the West Capricorn . However, we will continue performing management services for this rig for a period of time pursuant to the notice of termination and the MMSA. Per the MMSA, for stacked rigs we earn a daily service fee and are entitled to reimbursement of direct costs incurred in accordance with the agreement. For rigs operating under a drilling contract, in addition to the service fee and reimbursement of direct costs, we are entitled to a gross margin bonus, as adjusted pursuant to the MMSA, and a commission. The daily service fee revenue is recognized in line with the contractual rate billed for the services provided and is reported in “Contract drilling” in our unaudited Condensed Consolidated Statements of Operations. We record the revenue relating to reimbursed expenses at the gross amount incurred and billed to the rig owner, as “Revenues related to reimbursable expenses” in our unaudited Condensed Consolidated Statements of Operations. In March 2022, the West Auriga , one of the three managed rigs, began a one-year contract in the U.S. Gulf of Mexico (or GOM). Upon commencement of operations of the West Auriga , the MMSA for this rig was suspended and replaced by a charter agreement for the duration of the drilling contract. We have entered into the drilling contract directly with the customer and will receive and recognize revenue under the terms of the contract and have reported the revenue earned as “Contract drilling” in our unaudited Condensed Consolidated Statements of Operations. We have determined that the charter arrangement is an operating lease, and the related charter fee has been reported as lease expense within “Contract drilling, excluding depreciation” in our unaudited Condensed Consolidated Statements of Operations. Contract Balances The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers (in thousands): Successor June 30, December 31, 2022 2021 Trade receivables $ 140,777 $ 130,021 Current contract assets (1) 5,183 1,835 Current contract liabilities (deferred revenue) (1) ( 22,442 ) ( 38,506 ) Noncurrent contract liabilities (deferred revenue) (1) ( 4,980 ) ( 9,787 ) (1) Contract assets and contract liabilities may reflect balances which have been netted together on a contract basis. Net current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Accrued liabilities,” respectively, and net noncurrent contract liability balances are included in “Other liabilities” in our unaudited Condensed Consolidated Balance Sheets. Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands): Successor Net Contract Balances Contract assets at January 1, 2022 $ 1,835 Contract liabilities at January 1, 2022 ( 48,293 ) Net balance at January 1, 2022 ( 46,458 ) Decrease due to amortization of revenue included in the beginning contract liability balance 12,582 Decrease due to cash received, excluding amounts recognized as revenue during the period 8,104 Increase due to revenue recognized during the period but contingent on future performance 3,533 Net balance at June 30, 2022 $ ( 22,239 ) Contract assets at June 30, 2022 $ 5,183 Contract liabilities at June 30, 2022 ( 27,422 ) Transaction Price Allocated to Remaining Performance Obligations The following table reflects the specified types of revenue expected to be recognized in the future related to unsatisfied performance obligations as of June 30, 2022 (in thousands): For the Years Ending December 31, 2022 (1) 2023 2024 Total Mobilization and contract preparation revenue $ 4,462 $ 6,252 $ 225 $ 10,939 Capital modification revenue 8,489 5,364 287 14,140 Demobilization and other deferred revenue 2,563 82 — 2,645 Total $ 15,514 $ 11,698 $ 512 $ 27,724 (1) Represents the six-month period beginning July 1, 2022. The revenue included above consists of expected fixed mobilization and upgrade revenue for both wholly and partially unsatisfied performance obligations, as well as expected variable mobilization and upgrade revenue for partially unsatisfied performance obligations, which has been estimated for purposes of allocating across the entire corresponding performance obligations. The amounts are derived from the specific terms within drilling contracts that contain such provisions, and the expected timing for recognition of such revenue is based on the estimated start date and duration of each respective contract based on information known at June 30, 2022. The actual timing of recognition of such amounts may vary due to factors outside of our control. We have applied the disclosure practical expedient in FASB Accounting Standards Update (or ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) and its related amendments, and have not included estimated variable consideration related to wholly unsatisfied performance obligations or to distinct future time increments within our contracts, including dayrate revenue. |
Impairment of Assets
Impairment of Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of Assets | 3. Impairment of Assets 2021 Impairment. During the first quarter of 2021, we identified indicators that the carrying amounts of certain of our assets may not be recoverable and evaluated three of our drilling rigs with indicators of impairment. Based on our assumptions and analysis at that time, we determined that the carrying value of one of these rigs, for which we had concerns regarding future opportunities, was impaired (or the 2021 Impaired Rig). We estimated the fair value of the 2021 Impaired Rig using an income approach, whereby the fair value of the rig was estimated based on a calculation of the rig’s future net cash flows. These calculations utilized significant unobservable inputs, including management’s assumptions related to estimated dayrate revenue, rig utilization, estimated capital expenditures, repair and regulatory survey costs, as well as estimated proceeds that may be received on ultimate disposition of the rig. Our fair value estimate was representative of a Level 3 fair value measurement due to the significant level of estimation involved and the lack of transparency as to the inputs used. We recorded asset impairments aggregating $ 197.0 million for the Predecessor period from January 1, 2021 through April 23, 2021. No asset impairments were recorded in the Successor six-month period ended June 30, 2022 or the period from April 24, 2021 through June 30, 2021. |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | 4. Supplemental Financial Information Unaudited Condensed Consolidated Balance Sheets Information Accounts receivable, net of allowance for credit losses, consist of the following (in thousands): Successor June 30, December 31, 2022 2021 Trade receivables $ 140,777 $ 130,021 Federal income tax receivables 9,320 9,278 Value added tax receivables 4,833 9,729 Related party receivables 76 66 Other 1,978 2,823 156,984 151,917 Allowance for credit losses ( 5,610 ) ( 5,582 ) Total $ 151,374 $ 146,335 The allowance for credit losses at June 30, 2022 and December 31, 2021 represents our estimate of credit losses associated with our “Trade receivables” and “Current contract assets.” See Note 5 “Financial Instruments and Fair Value Disclosures” for a discussion of our concentrations of credit risk and allowance for credit losses. Prepaid expenses and other current assets consist of the following (in thousands): Successor June 30, December 31, 2022 2021 Prepaid taxes $ 18,989 $ 16,163 Deferred contract costs 13,859 7,267 Rig spare parts and supplies 8,847 3,716 Prepaid insurance 6,446 3,436 Current contract assets 5,183 1,835 Prepaid rig costs 4,673 4,048 Collateral deposits — 17,480 Other 7,874 7,495 Total $ 65,871 $ 61,440 Accrued liabilities consist of the following (in thousands): Successor June 30, December 31, 2022 2021 Rig operating costs $ 40,250 $ 42,532 Deferred revenue 22,442 38,506 Payroll and benefits 32,074 29,268 Current operating lease liability 16,121 15,998 Contract advances 15,699 — Shorebase and administrative costs 6,729 5,776 Personal injury and other claims 4,776 5,598 Interest payable 2,462 2,986 Accrued capital project/upgrade costs 2,234 2,219 Other 2,943 853 Total $ 145,730 $ 143,736 Unaudited Condensed Consolidated Statements of Cash Flows Information Noncash operating, investing and financing activities excluded from the unaudited Condensed Consolidated Statements of Cash Flows and other supplemental cash flow information are as follows (in thousands): Successor Predecessor Period from Period from Six Months Ended April 24, 2021 January 1, 2021 June 30, through June 30, through April 23, 2022 2021 2021 Accrued but unpaid capital expenditures at period end $ 2,234 $ 8,805 $ 18,617 Accrued but unpaid debt issuance costs and arrangement fees (1) — 7,047 7,588 Common stock withheld for payroll tax obligations (2) 139 — — Cash interest payments 12,514 1,346 37,593 Cash paid for reorganization items, net — 15,809 37,566 Cash income taxes paid, net of (refunds): Foreign 11,578 101 3,460 U.S. Federal 2,387 — — State — — ( 34 ) (1) Represents unpaid debt issuance costs related to our exit financing that were incurred and capitalized during the Predecessor period from January 1, 2021 through April 23, 2021. (2) Represents the cost of 17,806 shares of common stock withheld to satisfy payroll tax obligations incurred as a result of the vesting of restricted stock in the Successor six-month period ended June 30, 2022. These costs for the Successor six-month period ended June 30, 2022 are presented as a deduction from stockholders’ equity in “Treasury stock” in our unaudited Condensed Consolidated Successor Balance Sheet at June 30, 2022. |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosures | 5. Financial Instruments and Fair Value Disclosures Concentrations of Credit Risk and Allowance for Credit Losses Our credit risk corresponds primarily to trade receivables. Since the market for our services is the offshore oil and gas industry, our customer base consists primarily of major and independent oil and gas companies, as well as government-owned oil companies. At June 30, 2022, we believe that we have potentially significant concentrations of credit risk due to the number of rigs we currently have contracted and our limited number of customers, as some of our customers have contracted for multiple rigs. In general, before working for a customer with whom we have not had a prior business relationship and/or whose financial stability may be uncertain, we perform a credit review on that customer, including a review of its credit ratings and financial statements. Based on our credit review, we may require that the customer have a bank issue a letter of credit on its behalf, prepay for the services in advance or provide other credit enhancements. We have not required any credit enhancements by our customers or required any to pay for services in advance at June 30, 2022. We have historically used the specific identification method to identify and reserve for uncollectible accounts. The amounts reserved for uncollectible accounts in previous periods have not been significant, individually or in comparison to our total revenues. At June 30, 2022, $ 8.0 million in trade receivables were considered past due by 30 days or more, of which $ 7.5 million were fully reserved for in previous years and $ 0.3 million of the remaining $ 0.5 million were more than 90 days past due. Pursuant to FASB ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and its related amendments (or collectively, CECL), we have reviewed our historical credit loss experience over a look-back period of ten years, which we deem to be representative of both up-turns and down-cycles in the offshore drilling industry. Based on this review, we developed a credit loss factor using a weighted-average ratio of our actual credit losses to revenues during the look-back period. In addition, we also considered current and future anticipated economic conditions in determining our credit loss factor, including crude oil prices and liquidity of credit markets. In applying the requirements of CECL, we segregated our trade receivables into three credit loss risk pools based on customer credit ratings, each of which represents a tier of increasing credit risk. We calculated a credit loss factor based on historical loss rate information and then applied a multiple of our credit loss factor to each of these risk pools, considering the impact of current and future economic information and the level of risk associated with these pools, to calculate our current estimate of credit losses. Trade receivables that are fully covered by allowances for credit losses are excluded from these risk pools for purposes of calculating our current estimate of credit losses. For purposes of calculating our current estimate of credit losses at June 30, 2022 and December 31, 2021, all trade receivables were deemed to be in a single risk pool based on their credit ratings at each respective period. Our current estimate of credit losses under CECL was $ 0.1 million at both June 30, 2022 and December 31, 2021. Our total allowance for credit losses was $ 5.6 million at both June 30, 2022 and December 31, 2021. See Note 4 “Supplemental Financial Information.” Fair Values Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy prescribed by GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 Quoted prices for identical instruments in active markets. Level 2 Quoted market prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Level 3 assets and liabilities generally include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation or for which there is a lack of transparency as to the inputs used. Certain of our assets and liabilities are required to be measured at fair value on a recurring basis in accordance with GAAP. In addition, certain assets and liabilities may be recorded at fair value on a nonrecurring basis. Generally, we record assets at fair value on a nonrecurring basis as a result of impairment charges. Assets and liabilities measured at fair value are summarized below (in thousands). Successor June 30, 2022 Fair Value Measurements Using Total Gains Level 1 Level 2 Level 3 Liabilities at Three Months Ended (1) Six Months Ended (1) Recurring fair value measurements: Liability-classified Director restricted stock units $ 617 $ — $ — $ 617 $ 120 $ 241 (1) Represents a reduction in stock compensation expense due to marking-to-market liability-classified restricted stock units granted to our non-employee directors in April 2021. Successor December 31, 2021 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Nonrecurring fair value measurements: Impaired assets (1) $ — $ — $ 77,900 $ 77,900 (1) Represents the total book value as of December 31, 2021 of two semisubmersible rigs, which were written down to estimated fair value. We believe that the carrying amounts of our other financial assets and liabilities (excluding our Exit Term Loans and First Lien Notes (each as defined below in Note 7 “Successor Long-Term Debt”)), which are not measured at fair value in our unaudited Condensed Consolidated Balance Sheets, approximate fair value based on the following assumptions: • Cash and cash equivalents and restricted cash – The carrying amounts approximate fair value because of the short maturity of these instruments. • Accounts receivable and accounts payable – The carrying amounts approximate fair value based on the nature of the instruments. • Exit RCF borrowings - The carrying amount of borrowings under our Exit RCF (as defined below in Note 7 “Successor Long-Term Debt”) approximates fair value since the variable interest rates are tied to current market rates and the applicable margins represent market rates. Our debt is not measured at fair value on a recurring basis; however, under the GAAP fair value hierarchy, our long term debt would be considered Level 2 liabilities. The fair value of these instruments was derived using valuation specialists at June 30, 2022 and December 31, 2021. Fair values and related carrying values of our long-term debt are shown below (in millions). Successor June 30, 2022 December 31, 2021 Fair Value Carrying Value Fair Value Carrying Value Exit Term Loans $ 87.6 $ 100.0 $ 100.0 $ 100.0 First Lien Notes 85.1 86.1 86.2 86.1 We have estimated the fair value amounts by using appropriate valuation methodologies and information available to management. Considerable judgment is required in developing these estimates, and accordingly, no assurance can be given that the estimated values are indicative of the amounts that would be realized in a free market exchange. |
Drilling and Other Property and
Drilling and Other Property and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Drilling and Other Property and Equipment | 6. Drilling and Other Property and Equipment Cost and accumulated depreciation of drilling and other property and equipment are summarized as follows (in thousands): Successor June 30, December 31, 2022 2021 Drilling rigs and equipment $ 1,093,694 $ 1,057,739 Finance lease right of use asset 174,571 174,571 Land and buildings 9,985 9,823 Office equipment and other 2,426 2,264 Cost 1,280,676 1,244,397 Less: accumulated depreciation ( 121,141 ) ( 68,502 ) Drilling and other property and equipment, net $ 1,159,535 $ 1,175,895 |
Successor Long-Term Debt
Successor Long-Term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Successor Long-Term Debt | 7. Successor Long-Term Debt Exit Revolving Credit Agreement On the Effective Date, we entered into a senior secured revolving credit agreement (or the Exit Revolving Credit Agreement), which provides for a $ 400.0 million senior secured revolving credit facility with a $ 100.0 million sublimit for the issuance of letters of credit thereunder, which is scheduled to mature on April 22, 2026 (or the Exit RCF). Borrowings under the Exit RCF may be used to finance capital expenditures, for working capital and other general corporate purposes. Availability of borrowings under the Exit RCF is subject to the satisfaction of certain conditions, including restrictions on borrowings, as provided in the Exit Revolving Credit Agreement. At June 30, 2022, we had borrowings outstanding of $ 123.5 million under the Exit RCF, including $ 3.5 million in payment-in-kind loans, and $ 24.1 million had been utilized for the issuance of letters of credit. The weighted average interest rate on the combined borrowings outstanding under the Exit RCF at June 30, 2022 was 5.44 %. At August 8, 2022, we had borrowings of $ 143.5 million outstanding under the Exit RCF and had utilized $ 18.0 million for the issuance of letters of credit. As of August 8, 2022, approximately $ 242.0 million was available for borrowings or the issuance of letters of credit under the Exit RCF, subject to its terms and conditions. On the Effective Date, we also entered into a senior secured term loan credit agreement (or the Exit Term Loan Credit Agreement), which provides for a $ 100.0 million senior secured term loan credit facility scheduled to mature on April 22, 2027 , under which $ 100.0 million was drawn on the Effective Date (or the Exit Term Loans). The interest rate applicable to borrowings outstanding under the Exit Term Loan Credit Agreement was 7.624 % at June 30, 2022. Exit Debt At June 30, 2022, the carrying value of the Successor long-term debt (or Exit Debt), net of unamortized discount, premium and debt issuance costs, was comprised as follows (in thousands): Successor June 30, 2022 Borrowings under Exit RCF $ 123,478 Exit Term Loans 99,111 First Lien Notes 83,849 Total Exit Debt, net $ 306,438 The borrower under the Exit RCF and Exit Term Loan Credit Agreement (or, collectively, the Credit Facilities) is Diamond Foreign Asset Company (or DFAC) (or the Borrower) and the co-issuers of the 9.00 %/ 11.00 %/ 13.00 % Senior Secured First Lien PIK Toggle Notes due 2027 (or the First Lien Notes) are DFAC and Diamond Finance, LLC, a wholly-owned subsidiary of DFAC that was newly formed in connection with our emergence from bankruptcy. The Credit Facilities and the First Lien Notes are unconditionally guaranteed, on a joint and several basis, by the Borrower and certain of its direct and indirect subsidiaries (or, collectively with the Borrower, the Credit Parties and each, a Credit Party) and secured by senior priority liens on substantially all of the assets of, and the equity interests in, each Credit Party, including all rigs owned by the Company as of the Effective Date or acquired thereafter and certain assets related thereto, in each case, subject to certain exceptions and limitations described in the Credit Facilities and the indenture governing the First Lien Notes. The Exit Revolving Credit Agreement obligates the Borrower and its restricted subsidiaries to comply with certain financial maintenance covenants as defined in the Exit Revolving Credit Agreement. The Exit Revolving Credit Agreement, Exit Term Loan Credit Agreement and the indenture governing the First Lien Notes contain negative covenants that limit, among other things, the Borrower’s ability and the ability of its restricted subsidiaries to: (i) incur, assume or guarantee additional indebtedness; (ii) create, incur or assume liens; (iii) make investments; (iv) merge or consolidate with or into any other person or undergo certain other fundamental changes; (v) transfer or sell assets; (vi) pay dividends or distributions on capital stock or redeem or repurchase capital stock; (vii) enter into transactions with certain affiliates; (viii) repay, redeem or amend certain indebtedness; (ix) sell stock of its subsidiaries; or (x) enter into certain burdensome agreements. These negative covenants are subject to a number of important limitations and exceptions. Additionally, these agreements contain other covenants, representations and warranties and events of default that are customary for a financing of this type. At June 30, 2022, we were in compliance with all covenants under the Exit Revolving Credit Agreement. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Various claims have been filed against us in the ordinary course of business, including claims by offshore workers alleging personal injuries. With respect to each claim or exposure, we have made an assessment, in accordance with GAAP, of the probability that the resolution of the matter would ultimately result in a loss. When we determine that an unfavorable resolution of a matter is probable and such amount of loss can be determined, we record a liability for the amount of the estimated loss at the time that both of these criteria are met. Our management believes that we have recorded adequate accruals for any liabilities that may reasonably be expected to result from these claims. Non-Income Tax and Related Claims. We have received assessments related to, or otherwise have exposure to, non-income tax items such as sales and-use tax, value-added tax, ad valorem tax, custom duties, and other similar taxes in various taxing jurisdictions. We have determined that w e have a probable loss for certain of these taxes and the related penalties and interest and, accordingly, have recorded a $ 13.9 m illion and $ 13.7 million liability at June 30, 2022 and December 31, 2021, respectively, in "Other liabilities" in our unaudited Condensed Consolidated Balance Sheets. We intend to defend these matters vigorously; however, the ultimate outcome of these assessments and exposures could result in additional taxes, interest and penalties for which the fully assessed amounts would have a material adverse effect on our financial condition, results of operations or cash flows. Other Litigation. We have been named in various other claims, lawsuits or threatened actions that are incidental to the ordinary course of our business, including a claim by one of our customers in Brazil, Petróleo Brasileiro S.A. (or Petrobras), that it will seek to recover from its contractors, including us, any taxes, penalties, interest and fees that it must pay to the Brazilian tax authorities for our applicable portion of withholding taxes related to Petrobras’ charter agreements with its contractors. We intend to defend these matters vigorously; however, litigation is inherently unpredictable, and the ultimate outcome or effect of any claim, lawsuit or action cannot be predicted with certainty. As a result, there can be no assurance as to the ultimate outcome of any litigation matter. Any claims against us, whether meritorious or not, could cause us to incur significant costs and expenses and require significant amounts of management and operational time and resources. In the opinion of our management, no such pending or known threatened claims, actions or proceedings against us are expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows. Personal Injury Claims. Under our current insurance policies, we self-insure $ 1.0 million to $ 5.0 million per occurrence, depending on jurisdiction, with respect to personal injury claims not related to named windstorms in the U.S. Gulf of Mexico, which primarily result from Jones Act liability in the U.S. Gulf of Mexico. Depending on the nature, severity and frequency of claims that might arise during a policy year, if the aggregate level of claims exceed certain thresholds, we may self-insure up to $ 100.0 million for each subsequent occurrence. For personal injury claims arising due to named windstorms in the U.S. Gulf of Mexico, we self-insure $ 10.0 million for the first occurrence and, if the aggregate level of claims exceed certain thresholds, we self-insure up to $ 100.0 million for each subsequent occurrence, depending on the nature, severity and frequency of claims that might arise during the policy year. The Jones Act is a federal law that permits seamen to seek compensation for certain injuries during the course of their employment on a vessel and governs the liability of vessel operators and marine employers for the work-related injury or death of an employee. We engage outside consultants to assist us in estimating our aggregate liability for personal injury claims based on our historical losses and utilizing various actuarial models. We allocate a portion of the aggregate liability to “Accrued liabilities” based on an estimate of claims expected to be paid within the next twelve months with the residual recorded as “Other liabilities.” At June 30, 2022 our estimated liability for personal injury claims was $ 14.2 million, of which $ 4.8 million and $ 9.4 m illion were recorded in “Accrued liabilities” and “Other liabilities,” respectively, in our Successor unaudited Condensed Consolidated Balance Sheets. At December 31, 2021 our estimated liability for personal injury claims was $ 13.5 million, of which $ 5.4 million and $ 8.1 million were recorded in “Accrued liabilities” and “Other liabilities,” respectively, in our unaudited Condensed Consolidated Balance Sheets. The eventual settlement or adjudication of these claims could differ materially from our estimated amounts due to uncertainties such as: • the severity and volume of personal injuries claimed; • the unpredictability of legal jurisdictions where the claims will ultimately be litigated; • inconsistent court decisions; and • the risks and lack of predictability inherent in personal injury litigation. Purchase Obligations. At June 30, 2022, we had no purchase obligations for major rig upgrades or any other significant obligations, except for those related to our direct rig operations, which arise during the normal course of business. Services Agreement. In February 2016, we entered into a ten-year agreement with a subsidiary of Baker Hughes Company (formerly named Baker Hughes, a GE company) to provide services with respect to certain blowout preventer and related well control equipment (or Well Control Equipment) on our drillships. Such services include management of maintenance, certification and reliability with respect to such equipment. Future commitments under the contractual services agreements are estimated to be approximately $ 24.0 million per year or an estimated $ 137.2 million in the aggregate over the remaining term of the agreements. In addition, we lease Well Control Equipment for our drillships under ten-year finance leases. Letters of Credit and Other. W e were contingently liable as of June 30, 2022 in the amount of $ 42.7 million under certain tax, performance, supersedeas, VAT and customs bonds and letters of credit. Agreements relating to approximately $ 18.6 million of customs, tax, VAT and supersedeas bonds can require collateral at any time, while the remaining agreements, aggregating $ 24.1 million, cannot require collateral except in events of default. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes We currently claim benefits provided under an existing tax treaty between the United Kingdom and the Republic of Senegal that allows us to claim a reduced rate of income tax withholding with respect to certain bareboat charter revenue from Senegalese sources. On May 10, 2022, The Republic of Senegal deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (or the MLI), which will alter certain provisions of the existing United Kingdom-Senegal Tax Treaty, effective for periods beginning on or after January 1, 2023. We are currently analyzing the impact that the Republic of Senegal’s ratification of the MLI will have on our tax position and, consequently, our consolidated financial position, results of operations and cash flows. |
Segments and Geographic Area An
Segments and Geographic Area Analysis | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segments and Geographic Area Analysis | . Segments and Geographic Area Analysis We provide contract drilling services with different types of offshore drilling rigs and also provide such services in many geographic locations. However, we have aggregated these operations into one reportable segment based on the similarity of economic characteristics due to the nature of the revenue-earning process as it relates to the offshore drilling industry over the operating lives of our drilling rigs and other qualitative factors such as (i) the nature of services provided (contract drilling), (ii) similarity in operations (interchangeable rig crews and shared management and marketing, engineering, marine and maintenance support) (iii) similar regulatory environment (depending on customer and/or location), and (iv) similar contractual arrangements with customers. Our drilling rigs are highly mobile and may be moved to other markets throughout the world in response to market conditions or customer needs. At June 30, 2022 , our active drilling rigs were located offshore four countries in addition to the United States. Revenues by geographic area are presented by attributing revenues to the individual country where the services were performed. The following tables provide information about disaggregated revenue by country (in thousands): Successor Three Months Ended June 30, 2022 Total Revenues Total United States $ 79,171 $ 15,964 $ 95,135 Australia 32,162 3,442 35,604 Senegal 26,704 4,103 30,807 United Kingdom 19,089 2,459 21,548 Brazil 19,753 — 19,753 Myanmar — 2,855 2,855 Total $ 176,879 $ 28,823 $ 205,702 Successor Six Months Ended June 30, 2022 Total Revenues Total United States $ 155,453 $ 42,203 $ 197,656 Australia 47,860 6,046 53,906 Senegal 53,820 5,849 59,669 United Kingdom 21,395 3,887 25,282 Brazil 39,019 — 39,019 Myanmar 9,584 6,825 16,409 Total $ 327,131 $ 64,810 $ 391,941 Successor Period from April 24, 2021 through June 30, 2021 Total Revenues Total United States $ 50,777 $ 8,723 $ 59,500 Australia 23,949 5,280 29,229 United Kingdom 12,915 953 13,868 Brazil 3,224 — 3,224 Myanmar 7,168 1,922 9,090 Total $ 98,033 $ 16,878 $ 114,911 Predecessor Period from April 1, 2021 through April 23, 2021 Total Revenues Total United States $ 19,171 $ 1,055 $ 20,226 Australia 5,357 1,543 6,900 United Kingdom 3,876 350 4,226 Myanmar 2,407 803 3,210 Total $ 30,811 $ 3,751 $ 34,562 Predecessor Period from January 1, 2021 through April 23, 2021 Total Revenues Total United States $ 93,215 $ 7,048 $ 100,263 Australia 17,031 4,697 21,728 United Kingdom 27,967 2,300 30,267 Brazil 3,421 — 3,421 Myanmar 11,730 1,970 13,700 Total $ 153,364 $ 16,015 $ 169,379 |
General Information (Policies)
General Information (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles (or GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated. |
Restricted Cash | Restricted Cash We maintain a restricted cash bank account which is subject to restrictions pursuant to a management and marketing services agreement with an offshore drilling company. See Note 2 “Revenue from Contracts with Customers.” We classify such restricted cash accounts in current assets if the restrictions are expected to expire or otherwise be resolved within one year or if such funds are considered to offset current liabilities. At June 30, 2022 and December 31, 2021, our restricted cash was considered to be current and was recorded in “Restricted cash” in our unaudited Condensed Consolidated Balance Sheets. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Information about Receivables, Contract Assets and Contract Liabilities from Contracts with Customers | The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers (in thousands): Successor June 30, December 31, 2022 2021 Trade receivables $ 140,777 $ 130,021 Current contract assets (1) 5,183 1,835 Current contract liabilities (deferred revenue) (1) ( 22,442 ) ( 38,506 ) Noncurrent contract liabilities (deferred revenue) (1) ( 4,980 ) ( 9,787 ) (1) Contract assets and contract liabilities may reflect balances which have been netted together on a contract basis. Net current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Accrued liabilities,” respectively, and net noncurrent contract liability balances are included in “Other liabilities” in our unaudited Condensed Consolidated Balance Sheets. |
Summary of Significant Changes in Contract Assets and Contract Liabilities Balances | Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands): Successor Net Contract Balances Contract assets at January 1, 2022 $ 1,835 Contract liabilities at January 1, 2022 ( 48,293 ) Net balance at January 1, 2022 ( 46,458 ) Decrease due to amortization of revenue included in the beginning contract liability balance 12,582 Decrease due to cash received, excluding amounts recognized as revenue during the period 8,104 Increase due to revenue recognized during the period but contingent on future performance 3,533 Net balance at June 30, 2022 $ ( 22,239 ) Contract assets at June 30, 2022 $ 5,183 Contract liabilities at June 30, 2022 ( 27,422 ) |
Summary of Specified Types Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations | The following table reflects the specified types of revenue expected to be recognized in the future related to unsatisfied performance obligations as of June 30, 2022 (in thousands): For the Years Ending December 31, 2022 (1) 2023 2024 Total Mobilization and contract preparation revenue $ 4,462 $ 6,252 $ 225 $ 10,939 Capital modification revenue 8,489 5,364 287 14,140 Demobilization and other deferred revenue 2,563 82 — 2,645 Total $ 15,514 $ 11,698 $ 512 $ 27,724 (1) Represents the six-month period beginning July 1, 2022. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts Receivable, Net of Allowance for Credit Losses | Accounts receivable, net of allowance for credit losses, consist of the following (in thousands): Successor June 30, December 31, 2022 2021 Trade receivables $ 140,777 $ 130,021 Federal income tax receivables 9,320 9,278 Value added tax receivables 4,833 9,729 Related party receivables 76 66 Other 1,978 2,823 156,984 151,917 Allowance for credit losses ( 5,610 ) ( 5,582 ) Total $ 151,374 $ 146,335 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): Successor June 30, December 31, 2022 2021 Prepaid taxes $ 18,989 $ 16,163 Deferred contract costs 13,859 7,267 Rig spare parts and supplies 8,847 3,716 Prepaid insurance 6,446 3,436 Current contract assets 5,183 1,835 Prepaid rig costs 4,673 4,048 Collateral deposits — 17,480 Other 7,874 7,495 Total $ 65,871 $ 61,440 |
Accrued Liabilities | Accrued liabilities consist of the following (in thousands): Successor June 30, December 31, 2022 2021 Rig operating costs $ 40,250 $ 42,532 Deferred revenue 22,442 38,506 Payroll and benefits 32,074 29,268 Current operating lease liability 16,121 15,998 Contract advances 15,699 — Shorebase and administrative costs 6,729 5,776 Personal injury and other claims 4,776 5,598 Interest payable 2,462 2,986 Accrued capital project/upgrade costs 2,234 2,219 Other 2,943 853 Total $ 145,730 $ 143,736 |
Noncash Operating, Investing and Financing Activities | Noncash operating, investing and financing activities excluded from the unaudited Condensed Consolidated Statements of Cash Flows and other supplemental cash flow information are as follows (in thousands): Successor Predecessor Period from Period from Six Months Ended April 24, 2021 January 1, 2021 June 30, through June 30, through April 23, 2022 2021 2021 Accrued but unpaid capital expenditures at period end $ 2,234 $ 8,805 $ 18,617 Accrued but unpaid debt issuance costs and arrangement fees (1) — 7,047 7,588 Common stock withheld for payroll tax obligations (2) 139 — — Cash interest payments 12,514 1,346 37,593 Cash paid for reorganization items, net — 15,809 37,566 Cash income taxes paid, net of (refunds): Foreign 11,578 101 3,460 U.S. Federal 2,387 — — State — — ( 34 ) (1) Represents unpaid debt issuance costs related to our exit financing that were incurred and capitalized during the Predecessor period from January 1, 2021 through April 23, 2021. (2) Represents the cost of 17,806 shares of common stock withheld to satisfy payroll tax obligations incurred as a result of the vesting of restricted stock in the Successor six-month period ended June 30, 2022. These costs for the Successor six-month period ended June 30, 2022 are presented as a deduction from stockholders’ equity in “Treasury stock” in our unaudited Condensed Consolidated Successor Balance Sheet at June 30, 2022. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Values and Related Carrying Values of Our Debt Instruments | Fair values and related carrying values of our long-term debt are shown below (in millions). Successor June 30, 2022 December 31, 2021 Fair Value Carrying Value Fair Value Carrying Value Exit Term Loans $ 87.6 $ 100.0 $ 100.0 $ 100.0 First Lien Notes 85.1 86.1 86.2 86.1 |
Recurring Fair Value Measurements [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | Assets and liabilities measured at fair value are summarized below (in thousands). Successor June 30, 2022 Fair Value Measurements Using Total Gains Level 1 Level 2 Level 3 Liabilities at Three Months Ended (1) Six Months Ended (1) Recurring fair value measurements: Liability-classified Director restricted stock units $ 617 $ — $ — $ 617 $ 120 $ 241 Represents a reduction in stock compensation expense due to marking-to-market liability-classified restricted stock units granted to our non-employee directors in April 2021. |
Nonrecurring Fair Value Measurements [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Measured at Fair Value on Recurring and Nonrecurring Basis | Successor December 31, 2021 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Nonrecurring fair value measurements: Impaired assets (1) $ — $ — $ 77,900 $ 77,900 Represents the total book value as of December 31, 2021 of two semisubmersible rigs, which were written down to estimated fair value. |
Drilling and Other Property a_2
Drilling and Other Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Cost and Accumulated Depreciation of Drilling and Other Property and Equipment | Cost and accumulated depreciation of drilling and other property and equipment are summarized as follows (in thousands): Successor June 30, December 31, 2022 2021 Drilling rigs and equipment $ 1,093,694 $ 1,057,739 Finance lease right of use asset 174,571 174,571 Land and buildings 9,985 9,823 Office equipment and other 2,426 2,264 Cost 1,280,676 1,244,397 Less: accumulated depreciation ( 121,141 ) ( 68,502 ) Drilling and other property and equipment, net $ 1,159,535 $ 1,175,895 |
Successor Long-Term Debt (Table
Successor Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Value of Long-term Debt, Net of Unamortized Discount, Premium and Debt Issuance Costs | At June 30, 2022, the carrying value of the Successor long-term debt (or Exit Debt), net of unamortized discount, premium and debt issuance costs, was comprised as follows (in thousands): Successor June 30, 2022 Borrowings under Exit RCF $ 123,478 Exit Term Loans 99,111 First Lien Notes 83,849 Total Exit Debt, net $ 306,438 |
Segments and Geographic Area _2
Segments and Geographic Area Analysis (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Information About Disaggregated Revenue by Country | The following tables provide information about disaggregated revenue by country (in thousands): Successor Three Months Ended June 30, 2022 Total Revenues Total United States $ 79,171 $ 15,964 $ 95,135 Australia 32,162 3,442 35,604 Senegal 26,704 4,103 30,807 United Kingdom 19,089 2,459 21,548 Brazil 19,753 — 19,753 Myanmar — 2,855 2,855 Total $ 176,879 $ 28,823 $ 205,702 Successor Six Months Ended June 30, 2022 Total Revenues Total United States $ 155,453 $ 42,203 $ 197,656 Australia 47,860 6,046 53,906 Senegal 53,820 5,849 59,669 United Kingdom 21,395 3,887 25,282 Brazil 39,019 — 39,019 Myanmar 9,584 6,825 16,409 Total $ 327,131 $ 64,810 $ 391,941 Successor Period from April 24, 2021 through June 30, 2021 Total Revenues Total United States $ 50,777 $ 8,723 $ 59,500 Australia 23,949 5,280 29,229 United Kingdom 12,915 953 13,868 Brazil 3,224 — 3,224 Myanmar 7,168 1,922 9,090 Total $ 98,033 $ 16,878 $ 114,911 Predecessor Period from April 1, 2021 through April 23, 2021 Total Revenues Total United States $ 19,171 $ 1,055 $ 20,226 Australia 5,357 1,543 6,900 United Kingdom 3,876 350 4,226 Myanmar 2,407 803 3,210 Total $ 30,811 $ 3,751 $ 34,562 Predecessor Period from January 1, 2021 through April 23, 2021 Total Revenues Total United States $ 93,215 $ 7,048 $ 100,263 Australia 17,031 4,697 21,728 United Kingdom 27,967 2,300 30,267 Brazil 3,421 — 3,421 Myanmar 11,730 1,970 13,700 Total $ 153,364 $ 16,015 $ 169,379 |
General Information - Additiona
General Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 | |
Restricted Cash And Cash Equivalents Items [Line Items] | |
Restricted cash, nature of restriction, description | We maintain a restricted cash bank account which is subject to restrictions pursuant to a management and marketing services agreement with an offshore drilling company. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - Rig | 1 Months Ended | 6 Months Ended |
May 31, 2021 | Jun. 30, 2022 | |
Revenue From Contract With Customers [Line Items] | ||
Number of rigs managed | 3 | |
Minimum [Member] | ||
Revenue From Contract With Customers [Line Items] | ||
Initial term of contract | 2 months | |
Maximum [Member] | ||
Revenue From Contract With Customers [Line Items] | ||
Initial term of contract | 60 months |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Information about Receivables, Contract Assets and Contract Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Trade receivables | $ 140,777 | $ 130,021 | |
Current contract assets | [1] | 5,183 | 1,835 |
Current contract liabilities (deferred revenue) | [1] | (22,442) | (38,506) |
Noncurrent contract liabilities (deferred revenue) | [1] | $ (4,980) | $ (9,787) |
[1] Contract assets and contract liabilities may reflect balances which have been netted together on a contract basis. Net current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Accrued liabilities,” respectively, and net noncurrent contract liability balances are included in “Other liabilities” in our unaudited Condensed Consolidated Balance Sheets. |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Significant Changes in Contract Assets and Contract Liabilities Balances (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract assets at January 1, 2022 | $ 1,835 |
Contract liabilities at January 1, 2022 | (48,293) |
Net balance at January 1, 2022 | (46,458) |
Decrease due to amortization of revenue included in the beginning contract liability balance | 12,582 |
Decrease due to cash received, excluding amounts recognized as revenue during the period | 8,104 |
Increase due to revenue recognized during the period but contingent on future performance | 3,533 |
Net balance at June 30, 2022 | (22,239) |
Contract assets at June 30, 2022 | 5,183 |
Contract liabilities at June 30, 2022 | $ (27,422) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Summary of Specified Types of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail) $ in Thousands | Jun. 30, 2022 USD ($) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation | $ 27,724 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months | |
Revenue remaining performance obligation | $ 15,514 | [1] |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue remaining performance obligation | $ 11,698 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue remaining performance obligation | $ 512,000 | |
Mobilization And Contract Preparation Revenue [Member] | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation | 10,939 | |
Mobilization And Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation | 4,462 | [1] |
Mobilization And Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation | 6,252 | |
Mobilization And Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation | 225 | |
Capital Modification Revenue [Member] | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation | 14,140 | |
Capital Modification Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation | 8,489 | [1] |
Capital Modification Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation | 5,364 | |
Capital Modification Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation | 287 | |
Demobilization And Other Deferred Revenue [Member] | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation | 2,645 | |
Demobilization And Other Deferred Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation | 2,563 | [1] |
Demobilization And Other Deferred Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Revenue remaining performance obligation | $ 82 | |
[1] Represents the six-month period beginning July 1, 2022. |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Summary of Specified Types of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail 1) $ in Thousands | Jun. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 27,724 |
Mobilization And Contract Preparation Revenue [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 10,939 |
Capital Modification Revenue [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 14,140 |
Demobilization And Other Deferred Revenue [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 2,645 |
Impairment of Assets - Addition
Impairment of Assets - Additional Information (Detail) $ in Thousands | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended |
Jun. 30, 2021 USD ($) | Mar. 31, 2021 Rig | Apr. 23, 2021 USD ($) | Jun. 30, 2022 USD ($) | |
Schedule Of Asset Impairment Charges [Line Items] | ||||
Impairment of assets | $ 0 | $ 197,027 | $ 0 | |
2021 Impaired Rigs [Member] | ||||
Schedule Of Asset Impairment Charges [Line Items] | ||||
Number of rigs evaluated for impairment | Rig | 3 | |||
Number of rigs impaired during period | Rig | 1 | |||
Impairment of assets | $ 197,000 | |||
2022 Impaired Rigs [Member] | ||||
Schedule Of Asset Impairment Charges [Line Items] | ||||
Impairment of assets | $ 0 | $ 0 |
Supplemental Financial Inform_3
Supplemental Financial Information - Accounts Receivable, Net of Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Trade receivables | $ 140,777 | $ 130,021 |
Federal income tax receivables | 9,320 | 9,278 |
Value added tax receivables | 4,833 | 9,729 |
Related party receivables | 76 | 66 |
Other | 1,978 | 2,823 |
Receivables Gross Current, Total | 156,984 | 151,917 |
Allowance for credit losses | (5,610) | (5,582) |
Accounts receivable, net | $ 151,374 | $ 146,335 |
Supplemental Financial Inform_4
Supplemental Financial Information - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid taxes | $ 18,989 | $ 16,163 | |
Deferred contract costs | 13,859 | 7,267 | |
Rig spare parts and supplies | 8,847 | 3,716 | |
Prepaid insurance | 6,446 | 3,436 | |
Current contract assets | [1] | 5,183 | 1,835 |
Prepaid rig costs | 4,673 | 4,048 | |
Collateral deposits | 17,480 | ||
Other | 7,874 | 7,495 | |
Change in prepaid expenses and other current assets | $ 65,871 | $ 61,440 | |
[1] Contract assets and contract liabilities may reflect balances which have been netted together on a contract basis. Net current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Accrued liabilities,” respectively, and net noncurrent contract liability balances are included in “Other liabilities” in our unaudited Condensed Consolidated Balance Sheets. |
Supplemental Financial Inform_5
Supplemental Financial Information - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |||
Rig operating costs | $ 40,250 | $ 42,532 | |
Payroll and benefits | 32,074 | 29,268 | |
Deferred revenue | [1] | 22,442 | 38,506 |
Current operating lease liability | 16,121 | 15,998 | |
Contract advances | 15,699,000 | ||
Personal injury and other claims | 4,776 | 5,598 | |
Shorebase and administrative costs | 6,729 | 5,776 | |
Accrued capital project/upgrade costs | 2,234 | 2,219 | |
Interest payable | 2,462 | 2,986 | |
Other | 2,943 | 853 | |
Change in accrued liabilities | $ 145,730 | $ 143,736 | |
[1] Contract assets and contract liabilities may reflect balances which have been netted together on a contract basis. Net current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Accrued liabilities,” respectively, and net noncurrent contract liability balances are included in “Other liabilities” in our unaudited Condensed Consolidated Balance Sheets. |
Supplemental Financial Inform_6
Supplemental Financial Information - Noncash Operating, Investing and Financing Activities (Detail) - USD ($) $ in Thousands | 2 Months Ended | 4 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Apr. 23, 2021 | Jun. 30, 2022 | |
Condensed Financial Statements, Captions [Line Items] | |||
Accrued but unpaid capital expenditures at period end | $ 8,805 | $ 18,617 | $ 2,234 |
Accrued but unpaid debt issuance costs and arrangement fees | 7,047 | 7,588 | |
Common stock withheld for payroll tax obligations | 139 | ||
Cash interest payments | 1,346 | 37,593 | 12,514 |
Cash paid for reorganization items, net | 15,809 | 37,566 | |
Foreign [Member] | |||
Cash income taxes paid, net of (refunds): | |||
Cash income taxes paid, net of refunds | $ 101 | 3,460 | 11,578 |
Domestic [Member] | |||
Cash income taxes paid, net of (refunds): | |||
Cash income taxes paid, net of refunds | $ 2,387 | ||
State [Member] | |||
Cash income taxes paid, net of (refunds): | |||
Cash income taxes paid, net of refunds | $ (34) |
Supplemental Financial Inform_7
Supplemental Financial Information - Noncash Operating, Investing and Financing Activities (Detail) (Parenthetical) | 6 Months Ended |
Jun. 30, 2022 shares | |
Restricted Stock [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Number of shares of common stock withheld | 17,806 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Disclosures - Additional Information (Detail) - USD ($) $ in Thousands | 2 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Apr. 23, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Trade receivables past due | $ 8,000 | |||
Trade receivables reserved for previous years | 7,500 | |||
Trade receivables remaining past due | 500 | |||
Trade receivables, older than 90 Days past due | 300 | |||
Allowance for credit losses | 5,610 | $ 5,582 | ||
Loss on impairment of assets | $ 0 | $ 197,027 | 0 | |
ASU 2016-13 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Estimate of credit losses | $ 100 | $ 100 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Disclosures - Assets Measured at Fair Value on Recurring and Nonrecurring Basis (Detail) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2022 | Apr. 23, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Impairment of assets | $ 0 | $ 197,027 | $ 0 | ||
Nonrecurring Fair Value Measurements [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Impaired assets | $ 77,900 | ||||
Director [Member] | Recurring Fair Value Measurements [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Liability-classified Director restricted stock units | $ 617 | 617 | |||
Total Gains | 120 | 241 | |||
Level 1 [Member] | Director [Member] | Recurring Fair Value Measurements [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Liability-classified Director restricted stock units | $ 617 | $ 617 | |||
Level 3 | Nonrecurring Fair Value Measurements [Member] | |||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||
Impaired assets | $ 77,900 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Disclosures - Assets Measured at Fair Value on Nonrecurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | 2 Months Ended | 4 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Apr. 23, 2021 | Jun. 30, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Loss on impairment of assets | $ 0 | $ 197,027 | $ 0 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Disclosures - Fair Value and Related Carrying Values of Our Debt Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Exit Term Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 87.6 | $ 100 |
Carrying Value | 100 | 100 |
First Lien Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 85.1 | 86.2 |
Carrying Value | $ 86.1 | $ 86.1 |
Drilling and Other Property a_3
Drilling and Other Property and Equipment - Summary of Cost and Accumulated Depreciation of Drilling and Other Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,280,676 | $ 1,244,397 |
Less: accumulated depreciation | (121,141) | (68,502) |
Drilling and other property and equipment, net | 1,159,535 | 1,175,895 |
Drilling Rigs and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,093,694 | 1,057,739 |
Land and Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 9,985 | 9,823 |
Office Equipment and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 2,426 | 2,264 |
Finance Lease Right of Use Asset [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 174,571 | $ 174,571 |
Drilling and Other Property a_4
Drilling and Other Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended |
Apr. 23, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Apr. 23, 2021 | Jun. 30, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Impairment charge of assets | $ 0 | $ 197,027 | $ 0 | ||
Gain on disposition of assets | $ 85 | $ 176 | $ 685 | $ 5,486 | $ 4,729 |
Successor Long-Term Debt - Addi
Successor Long-Term Debt - Additional Information (Details) - First Lien Notes [Member] | Apr. 23, 2021 |
Debt Instrument [Line Items] | |
Debt Instrument Maturity Year | 2027 |
Cash Pay Rate [Member] | |
Debt Instrument [Line Items] | |
Interest rate of senior notes | 9% |
Cash Pay Rate and Payment in Kind Rate [Member] | |
Debt Instrument [Line Items] | |
Interest rate of senior notes | 11% |
Payment in Kind Rate [Member] | |
Debt Instrument [Line Items] | |
Interest rate of senior notes | 13% |
Successor Long-Term Debt - Summ
Successor Long-Term Debt - Summary of Carrying Value of Long-term Debt, Net of Unamortized Discount, Premium and Debt Issuance Costs (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total Exit Debt, net | $ 306,438 | $ 266,241 |
Exit Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total Exit Debt, net | 123,478 | |
Exit Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total Exit Debt, net | 99,111 | |
First Lien Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total Exit Debt, net | $ 83,849 |
Successor Long-Term Debt - Exit
Successor Long-Term Debt - Exit Revolving Credit Agreement - Additional Information (Detail) - USD ($) $ in Millions | Apr. 23, 2021 | Aug. 08, 2022 | Jun. 30, 2022 |
Senior Secured Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Amount available for general purposes | $ 400 | ||
Sublimit for issuance of letters of credit | $ 100 | ||
Credit facility, scheduled maturity date | Apr. 22, 2026 | ||
Exit Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit | $ 123.5 | ||
Borrowing accrue interest | 5.44% | ||
Exit Revolving Credit Facility [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit | $ 143.5 | ||
Amount available for issuance of letter of credit under credit facility | 242 | ||
Exit Revolving Credit Facility [Member] | Financial Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit | $ 24.1 | ||
Exit Revolving Credit Facility [Member] | Financial Letter of Credit [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit | $ 18 | ||
Exit Revolving Credit Facility [Member] | Payment in Kind (PIK) Note [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit | $ 3.5 |
Successor Long-Term Debt - Ex_2
Successor Long-Term Debt - Exit Term Loan Credit Agreement - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Apr. 23, 2021 | Jun. 30, 2022 | |
Exit Term Loan Credit Agreement[ Member] | ||
Debt Instrument [Line Items] | ||
Outstanding line of credit facility interest rate | 7.624% | |
Senior Secured Term Loan Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 100 | |
Debt instrument maturity date | Apr. 22, 2027 | |
Debt instrument carrying amount | $ 100 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Feb. 29, 2016 | Jun. 30, 2022 | Dec. 31, 2021 | |
Contingencies And Commitments [Line Items] | |||
Estimated sales tax and related penalties and interest | $ 13.9 | $ 13.7 | |
Range of deductible for liability coverage for personal injury claims, upper limit | 100 | ||
Purchase Obligations | 0 | ||
Maximum [Member] | |||
Contingencies And Commitments [Line Items] | |||
Range of deductible for liability coverage for personal injury claims, upper limit | 5 | ||
Minimum [Member] | |||
Contingencies And Commitments [Line Items] | |||
Range of deductible for liability coverage for personal injury claims, upper limit | 1 | ||
Loss from Catastrophes [Member] | |||
Contingencies And Commitments [Line Items] | |||
Deductible for marine liability coverage including personal injury claims, per first occurrence | 10 | ||
Range of deductible for liability coverage for personal injury claims, upper limit | 100 | ||
Personal Injury Claims [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | 14.2 | 13.5 | |
Total Contingent Liabilities Under Letters of Credit and Bonds [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | 42.7 | ||
Services Agreement [Member] | |||
Contingencies And Commitments [Line Items] | |||
Maturity of service arrangement | 10 years | ||
Annual payments due under service agreement | 24 | ||
Total remaining payments due under service agreement | 137.2 | ||
Potentially Collateralized Contingent Liability Under Letters Of Credit and Bonds [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | 18.6 | ||
Uncollateralized Contingent Liability Under Letters of Credit and Bonds [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | 24.1 | ||
Accrued Liabilities [Member] | Personal Injury Claims [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | 4.8 | 5.4 | |
Other Liabilities [Member] | Personal Injury Claims [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | $ 9.4 | $ 8.1 |
Segments and Geographic Area _3
Segments and Geographic Area Analysis - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 Country Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 1 |
Number of countries with rigs | Country | 4 |
Segments and Geographic Area _4
Segments and Geographic Area Analysis - Summary of Information about Disaggregated Revenue by Country (Detail) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended |
Apr. 23, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Apr. 23, 2021 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 34,562 | $ 114,911 | $ 205,702 | $ 169,379 | $ 391,941 |
Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 30,811 | 98,033 | 176,879 | 153,364 | 327,131 |
Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 3,751 | 16,878 | 28,823 | 16,015 | 64,810 |
United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 20,226 | 59,500 | 95,135 | 100,263 | 197,656 |
United States [Member] | Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 19,171 | 50,777 | 79,171 | 93,215 | 155,453 |
United States [Member] | Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,055 | 8,723 | 15,964 | 7,048 | 42,203 |
Australia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 6,900 | 29,229 | 35,604 | 21,728 | 53,906 |
Australia [Member] | Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 5,357 | 23,949 | 32,162 | 17,031 | 47,860 |
Australia [Member] | Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,543 | 5,280 | 3,442 | 4,697 | 6,046 |
Senegal [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 30,807 | 59,669 | |||
Senegal [Member] | Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 26,704 | 53,820 | |||
Senegal [Member] | Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 4,103 | 5,849 | |||
United Kingdom [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 4,226 | 13,868 | 21,548 | 30,267 | 25,282 |
United Kingdom [Member] | Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 3,876 | 12,915 | 19,089 | 27,967 | 21,395 |
United Kingdom [Member] | Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 350 | 953 | 2,459 | 2,300 | 3,887 |
Brazil [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 3,224 | 19,753 | 3,421 | 39,019 | |
Brazil [Member] | Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 3,224 | 19,753 | 3,421 | 39,019 | |
Myanmar [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 3,210 | 9,090 | 2,855 | 13,700 | 16,409 |
Myanmar [Member] | Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 2,407 | 7,168 | 11,730 | 9,584 | |
Myanmar [Member] | Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 803 | $ 1,922 | $ 2,855 | $ 1,970 | $ 6,825 |