Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 23, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
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 | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 102,467,107 | ||
Entity Public Float | $ 1,447,652,256 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity File Number | 1-13926 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 76-0321760 | ||
Entity Address, Address Line One | 777 N. Eldridge Parkway, Suite 1100 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77079 | ||
City Area Code | 281 | ||
Local Phone Number | 492-5300 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
ICFR Auditor Attestation Flag | true | ||
Entity Bankruptcy Proceedings, Reporting Current | true | ||
Documents Incorporated by Reference | The information called for by Part III, Items 10, 11, 12, 13 and 14 of this Form 10-K, will be included in a definitive proxy statement or an amendment to this Form 10-K to be filed within 120 days after the end of the fiscal year covered by this Form 10-K, and is incorporated herein by reference. | ||
Auditor Firm ID | 34 | ||
Auditor Name | DELOITTE & TOUCHE LLP | ||
Auditor Location | Houston, Texas | ||
Document Financial Statement Error Correction [Flag] | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 124,457 | $ 63,041 |
Restricted cash | 14,231 | 34,293 |
Accounts receivable | 260,124 | 177,675 |
Allowance for credit losses | (5,801) | (5,622) |
Accounts receivable, net | 254,323 | 172,053 |
Prepaid expenses and other current assets | 63,412 | 48,695 |
Assets held for sale | 1,000 | 0 |
Total current assets | 457,423 | 318,082 |
Drilling and other property and equipment, net of accumulated depreciation | 1,156,368 | 1,141,908 |
Other assets | 98,762 | 67,966 |
Total assets | 1,712,553 | 1,527,956 |
Current liabilities: | ||
Accounts payable | 42,037 | 47,647 |
Accrued liabilities | 203,336 | 166,785 |
Taxes payable | 34,817 | 30,264 |
Current finance lease liabilities | 15,960 | 16,965 |
Total current liabilities | 296,150 | 261,661 |
Long-term debt | 533,514 | 360,644 |
Noncurrent finance lease liabilities | 113,201 | 131,393 |
Deferred tax liability | 10,966 | 700 |
Other liabilities | 113,871 | 93,888 |
Commitments and contingencies (Note 11) | ||
Total liabilities | 1,067,702 | 848,286 |
Stockholders’ equity: | ||
Preferred stock (par value $0.0001, 50,000 shares authorized, none issued and outstanding) | 0 | 0 |
Common stock (par value $0.0001, 750,000 shares authorized; 103,189 shares issued and 102,322 shares outstanding at December 31, 2023; 101,884 shares issued and 101,320 shares outstanding at December 31, 2022) | 10 | 10 |
Additional paid-in capital | 978,575 | 964,467 |
Treasury stock | (8,493) | (4,252) |
Accumulated deficit | (325,261) | (280,555) |
Accumulated other comprehensive income | 20 | 0 |
Total stockholders’ equity | 644,851 | 679,670 |
Total liabilities and stockholders’ equity | $ 1,712,553 | $ 1,527,956 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 103,189,000 | 101,884,000 |
Common stock, shares outstanding | 102,322,000 | 101,320,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues: | ||||
Total revenues | $ 169,379,000 | $ 556,066,000 | $ 1,056,179,000 | $ 841,278,000 |
Operating expenses: | ||||
Depreciation | 92,758,000 | 68,504,000 | 111,301,000 | 103,478,000 |
General and administrative | 15,036,000 | 53,494,000 | 72,248,000 | 70,196,000 |
Impairment of assets | 197,027,000 | 132,449,000 | 0 | 0 |
Gain on disposition of assets | (5,486,000) | (1,024,000) | (4,382,000) | (4,895,000) |
Total operating expenses | 496,438,000 | 707,246,000 | 1,005,118,000 | 904,723,000 |
Operating income (loss) | (327,059,000) | (151,180,000) | 51,061,000 | (63,445,000) |
Other income (expense): | ||||
Interest income | 30,000 | 3,000 | 1,637,000 | 18,000 |
Interest expense (excludes $35,390 of contractual interest expense on debt subject to compromise for the period from January 1, 2021 through April 23, 2021.) | (34,827,000) | (26,180,000) | (53,416,000) | (40,423,000) |
Foreign currency transaction loss | (172,000) | (997,000) | (5,920,000) | (3,023,000) |
Loss on extinguishment of long-term debt | 0 | 0 | (6,529,000) | 0 |
Reorganization items, net | (1,639,763,000) | (8,088,000) | 0 | 0 |
Other, net | 398,000 | 10,752,000 | (556,000) | 1,267,000 |
Loss before income tax (expense) benefit | (2,001,393,000) | (175,690,000) | (13,723,000) | (105,606,000) |
Income tax (expense) benefit | 39,404,000 | (1,654,000) | (30,983,000) | 2,395,000 |
Net loss | $ (1,961,989,000) | $ (177,344,000) | $ (44,706,000) | $ (103,211,000) |
Earnings Per Share, Basic | $ (14.21) | $ (1.77) | $ (0.44) | $ (1.03) |
Earnings Per Share, Diluted | $ (14.21) | $ (1.77) | $ (0.44) | $ (1.03) |
Weighted Average Number of Shares Outstanding, Basic | 138,054 | 100,071 | 101,842 | 100,561 |
Weighted Average Number of Shares Outstanding, Diluted | 138,054 | 100,071 | 101,842 | 100,561 |
Contract Drilling [Member] | ||||
Revenues: | ||||
Total revenues | $ 153,364,000 | $ 465,328,000 | $ 983,983,000 | $ 724,744,000 |
Operating expenses: | ||||
Contract drilling, excluding depreciation | 181,626,000 | 364,539,000 | 757,193,000 | 620,982,000 |
Reimbursable Expenses [Member] | ||||
Revenues: | ||||
Total revenues | 16,015,000 | 90,738,000 | 72,196,000 | 116,534,000 |
Operating expenses: | ||||
Contract drilling, excluding depreciation | $ 15,477,000 | $ 89,284,000 | $ 68,758,000 | $ 114,962,000 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) $ in Thousands | 4 Months Ended |
Apr. 23, 2021 USD ($) | |
Income Statement [Abstract] | |
Contractual interest expense of debt | $ 35,390 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income or Loss - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ (1,961,989) | $ (177,344) | $ (44,706) | $ (103,211) |
Other comprehensive income, net of tax: | ||||
Unrealized gain on marketable securities (net of tax of $1) | 0 | 0 | 20 | 0 |
Comprehensive loss | $ (1,961,989) | $ (177,344) | $ (44,686) | $ (103,211) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income or Loss (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain on marketable securities (net of tax) | $ 1 | $ 1 | $ 1 | $ 1 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Gains (Losses) [Member] | Treasury Stock Common [Member] |
Beginning Balance at Dec. 31, 2020 | $ 1,982,566 | $ 1,453 | $ 2,029,979 | $ 157,297 | $ 0 | $ (206,163) |
Beginning Balance, shares at Dec. 31, 2020 | 145,264 | 7,210 | ||||
Net Income (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) | (7,210) | ||||
Ending Balance at Apr. 23, 2021 | 0 | $ 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 | |||||
Ending Balance at Apr. 24, 2021 | 934,810 | 934,800 | ||||
Ending Balance at Apr. 24, 2021 | $ 10 | |||||
Ending Balance, shares at Apr. 24, 2021 | 100,000 | |||||
Beginning Balance, shares at Apr. 23, 2021 | 0 | 0 | ||||
Net Income (Loss) | (177,344) | |||||
Ending Balance at Dec. 31, 2021 | 767,705 | $ 10 | 945,039 | (177,344) | 0 | $ 0 |
Ending Balance, shares at Dec. 31, 2021 | 100,075 | 0 | ||||
Beginning Balance at Apr. 24, 2021 | 934,810 | 934,800 | ||||
Beginning Balance, shares at Apr. 24, 2021 | 100,000 | |||||
Net Income (Loss) | (177,344) | (177,344) | ||||
Stock-based compensation, net of tax | 10,239 | 10,239 | ||||
Stock-based compensation, net of tax, shares | 75 | |||||
Ending Balance at Dec. 31, 2021 | 767,705 | $ 10 | 945,039 | (177,344) | 0 | $ 0 |
Ending Balance, shares at Dec. 31, 2021 | 100,075 | 0 | ||||
Net Income (Loss) | (103,211) | (103,211) | ||||
Stock-based compensation, net of tax | 15,176 | 19,428 | $ (4,252) | |||
Stock-based compensation, net of tax, shares | 1,245 | 564 | ||||
Ending Balance at Dec. 31, 2022 | 679,670 | $ 10 | 964,467 | (280,555) | $ (4,252) | |
Ending Balance, shares at Dec. 31, 2022 | 101,320 | 564 | ||||
Net Income (Loss) | (44,706) | (44,706) | ||||
Stock-based compensation, net of tax | 9,867 | 14,108 | $ (4,241) | |||
Stock-based compensation, net of tax, shares | 1,002 | 303 | ||||
Unrealized gain on marketable securities | 20 | 20 | ||||
Ending Balance at Dec. 31, 2023 | $ 644,851 | |||||
Ending Balance at Dec. 31, 2023 | $ 10 | $ 978,575 | $ (325,261) | $ 20 | $ (8,493) | |
Ending Balance, shares at Dec. 31, 2023 | 102,322 | 867 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities: | ||||
Net loss | $ (1,961,989,000) | $ (177,344,000) | $ (44,706,000) | $ (103,211,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation | 92,758,000 | 68,504,000 | 111,301,000 | 103,478,000 |
Loss on impairment of assets | 197,027,000 | 132,449,000 | 0 | 0 |
Reorganization items,net | 1,587,392,000 | 0 | 0 | 0 |
Gain on disposition of assets | (5,486,000) | (1,024,000) | (4,382,000) | (4,895,000) |
Loss on extinguishment of long-term debt | 0 | 0 | 6,529,000 | 0 |
Deferred tax provision | (35,894,000) | (3,482,000) | (4,617,000) | 479,000 |
Stock-based compensation expense | 0 | 10,766,000 | 14,103,000 | 20,159,000 |
Contract liabilities, net | 10,617,000 | 48,293,000 | 4,580,000 | (36,292,000) |
Contract assets, net | (742,000) | (1,418,000) | (2,434,000) | 1,694,000 |
Deferred contract costs, net | (12,034,000) | (13,081,000) | (12,099,000) | (1,594,000) |
Long-term employee remuneration programs | 475,000 | 119,000 | 0 | 0 |
Collateral deposits | 0 | 6,030,000 | (11,857,000) | 17,479,000 |
Other assets, noncurrent | 2,685,000 | 361,000 | 1,254,000 | (2,950,000) |
Other liabilities, noncurrent | (371,000) | (2,092,000) | (709,000) | 115,000 |
Other | 2,683,000 | 1,579,000 | 2,900,000 | 2,256,000 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 2,108,000 | (16,984,000) | (88,714,000) | (25,718,000) |
Prepaid expenses and other current assets | (2,791,000) | 305,000 | (3,887,000) | 2,028,000 |
Accounts payable and accrued liabilities | 29,302,000 | (40,133,000) | 21,369,000 | 55,006,000 |
Taxes payable | (5,804,000) | 6,056,000 | 23,149,000 | (19,170,000) |
Net cash provided by (used in) operating activities | (100,064,000) | 18,904,000 | 11,780,000 | 8,864,000 |
Investing activities: | ||||
Capital expenditures | (49,119,000) | (42,812,000) | (131,449,000) | (60,023,000) |
Proceeds from disposition of assets, net of disposal costs | 7,484,000 | 1,053,000 | 11,105,000 | 5,959,000 |
Deposits on asset sales | 0 | 0 | 307,000 | 1,670,000 |
Net cash used in investing activities | (41,635,000) | (41,759,000) | (120,037,000) | (52,394,000) |
Financing activities: | ||||
Proceeds from issuance of second lien notes | 0 | 0 | 550,000,000 | 0 |
Repayments of revolving credit facility | (442,034,000) | 0 | 0 | 0 |
Borrowings on exit facilities | 200,000,000 | 50,000,000 | 40,000,000 | 94,000,000 |
Extinguishment of long-term debt | 0 | 0 | (192,182,000) | 0 |
Repayments on exit facilities | 0 | (70,000,000) | (214,000,000) | 0 |
Debt issuance costs and arrangement fees | (6,218,000) | 0 | (17,242,000) | 0 |
Issuance of exit notes | 75,000,000 | 0 | 0 | 0 |
Principal payments of finance lease liabilities | 0 | (9,845,000) | (16,965,000) | (15,865,000) |
Net cash provided by (used in) financing activities | (173,252,000) | (29,845,000) | 149,611,000 | 78,135,000 |
Net change in cash, cash equivalents and restricted cash | (314,951,000) | (52,700,000) | 41,354,000 | 34,605,000 |
Cash, cash equivalents and restricted cash, beginning of period | 430,380,000 | 115,429,000 | 97,334,000 | 62,729,000 |
Cash, cash equivalents and restricted cash, end of period | $ 115,429,000 | $ 62,729,000 | $ 138,688,000 | $ 97,334,000 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | |||||
Net Income (Loss) | $ (1,961,989) | $ (177,344) | $ (177,344) | $ (44,706) | $ (103,211) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
General Information
General Information | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
General Information | 1. General Information Diamond Offshore Drilling, Inc. provides contract drilling services to the energy industry around the globe with a fleet of 13 offshore drilling rigs, consisting of four owned drillships, seven owned semisubmersible rigs and two managed rigs. Unless the context otherwise requires, references in these Notes to “Diamond Offshore,” “we,” “us” or “our” mean Diamond Offshore Drilling, Inc. and our consolidated subsidiaries. We were incorporated in Delaware in 1989. To facilitate our financial statement presentations, we refer to the post-emergence reorganized company in these Consolidated Financial Statements and Notes 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 Consolidated Financial Statements, certain tables within the footnotes to the Consolidated Financial Statements and other parts of this Annual Report on Form 10-K through the use of a black line, calling out the lack of comparability between periods. Principles of Consolidation Our Consolidated Financial Statements include the accounts of Diamond Offshore Drilling, Inc. and our wholly-owned subsidiaries after elimination of intercompany transactions and balances. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States (or U.S.), or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues, and expenses during the reporting period. Actual results could differ from those estimated. Cash and Cash Equivalents We consider short-term, highly liquid investments that have an original maturity of three months or less and deposits in money market mutual funds that are readily convertible into cash to be cash equivalents. The effect of exchange rate changes on cash balances held in foreign currencies was not material for the Successor periods for the years ended December 31, 2023 and December 31, 2022. Asset Held for Sale We reported the $ 1.0 million carrying value of the Ocean Monarch as an “Asset held for sale” in our Successor Consolidated Balance Sheets at December 31, 2023. We are marketing the rig for recycling and expect to complete a sale in early 2024. Drilling and Other Property and Equipment We carry our drilling and other property and equipment at cost, less accumulated depreciation. Maintenance and routine repairs are charged to income while replacements and betterments that upgrade or increase the functionality of our existing equipment and that significantly extend the useful life of an existing asset are capitalized. Significant judgments, assumptions and estimates may be required in determining whether or not such replacements and betterments meet the criteria for capitalization and in determining useful lives and salvage values of such assets. Changes in these judgments, assumptions and estimates could produce results that differ from those reported. During the Successor periods for the years ended December 31, 2023 and December 31, 2022, we capitalized $ 124.3 million and $ 69.1 million, respectively, in replacements and betterments of our drilling fleet. Costs incurred for major rig upgrades and/or the construction of rigs are accumulated in construction work-in-progress, with no depreciation recorded on the additions, until the month the upgrade or newbuild is completed and the rig is placed in service. Upon retirement or sale of a rig, the cost and related accumulated depreciation are removed from the respective accounts and any gains or losses are reported in our Consolidated Statements of Operations as “Gain on disposition of assets.” Depreciation is recognized up to applicable salvage values by applying the straight-line method over the remaining estimated useful lives from the year the asset is placed in service. Drilling rigs and equipment are depreciated over their estimated useful lives ranging from 3 to 30 years . Impairment of Long-Lived Assets We evaluate our property and equipment for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be recoverable (such as, but not limited to, a change in the economic useful life of a rig, cold stacking a rig, the expectation of cold stacking a rig in the near term, a decision to retire or scrap a rig, or excess spending over budget on a newbuild, construction project, reactivation or major rig upgrade). We utilize an undiscounted probability-weighted cash flow analysis in testing an asset for potential impairment. Our assumptions and estimates underlying this analysis include the following: • dayrate by rig; • utilization rate by rig if active, warm-stacked or cold-stacked (expressed as the actual percentage of time per year that the rig would be used at certain dayrates); • the per day operating cost for each rig if active, warm-stacked or cold-stacked; • the estimated annual cost for rig replacements and/or enhancement programs; • the estimated maintenance and inspection or other reactivation costs associated with a rig returning to work; • the remaining economic useful life of a rig; • salvage value for each rig; and • estimated proceeds that may be received on disposition of each rig. Based on these assumptions, we develop a matrix for each rig under evaluation using multiple utilization/dayrate scenarios, to each of which we have assigned a probability of occurrence. We arrive at a projected probability-weighted cash flow for each rig based on the respective matrix and compare such amount to the carrying value of the asset to assess recoverability. The underlying assumptions and assigned probabilities of occurrence for utilization and dayrate scenarios are developed using a methodology that examines historical data for each rig, which considers the rig’s age, rated water depth and other attributes and then assesses its future marketability in light of the current and projected market environment at the time of assessment. Other assumptions, such as operating, maintenance, inspection and reactivation costs, are estimated using historical data adjusted for known developments, cost projections for re-entry of rigs into the market and future events that are anticipated by management at the time of the assessment. Management’s assumptions are necessarily subjective and are an inherent part of our asset impairment evaluation, and the use of different assumptions could produce results that differ from those reported. Our methodology generally involves the use of significant unobservable inputs, representative of a Level 3 fair value measurement, which may include assumptions related to future dayrate revenue, costs and rig utilization, quotes from rig brokers, the long-term future performance of our rigs and future market conditions. Management’s assumptions involve uncertainties about future demand for our services, dayrates, expenses and other future events, and management’s expectations may not be indicative of future outcomes. Significant unanticipated changes to these assumptions could materially alter our analysis in testing an asset for potential impairment. For example, changes in market conditions that exist at the measurement date or that are projected by management could affect our key assumptions. Other events or circumstances that could affect our assumptions may include, but are not limited to, a further sustained decline in oil and gas prices, cancellations of our drilling contracts or contracts of our competitors, contract modifications, costs to comply with new governmental regulations, capital expenditures required due to advances in offshore drilling technology, growth in the global oversupply of oil and geopolitical events, such as lifting sanctions on oil-producing nations. Should actual market conditions in the future vary significantly from market conditions used in our projections, our assessment of impairment would likely be different. See Note 4 “Asset Impairments.” Survey Costs C oncurrent with emergence from bankruptcy, the Successor entity adopted a new policy providing for the deferral and amortization of costs associated with planned periodic inspections of its drilling rigs (or vessels) to ensure compliance with applicable regulations and maintain certifications for vessels with classification societies that typically occur on five-year or two-and-one-half year intervals. These costs include mobilization of the vessel into the shipyard, drydocking, support services while in shipyard and the associated survey or inspection costs necessary to maintain class certifications. These recertification costs are typically incurred while the vessel is in drydock and may be performed concurrent with other vessel maintenance and improvement activities. Costs related to the recertification of vessels are deferred and amortized over the survey interval on a straight-line basis. Maintenance costs incurred at the time of the recertification drydocking that are not related to the recertification of the vessel are expensed as incurred. Costs for vessel improvements that either extend the vessel’s useful life or increase the vessel's functionality are capitalized and depreciated. The Predecessor’s previous policy was to expense vessel recertification costs in the period incurred. For the Successor periods for the years ended December 31, 2023 and December 31, 2022, we deferred $ 3.5 million and $ 3.3 million, respectively, in survey costs. At December 31, 2023 and December 31, 2022, deferred survey costs of $ 1.4 million and $ 0.8 million, respectively, were reported in “Prepaid expenses and other current assets” and $ 4.3 million and $ 2.5 million, respectively, were reported in “Other assets” in our Successor Consolidated Balance Sheets. We amortized $ 1.1 million and $ 0.7 million in deferred survey costs as “Contract drilling, excluding depreciation” in the Successor’s Consolidated Statements of Operations for the years ended December 31, 2023 and 2022, respectively. Lease Accounting and Revenue Recognition Financial Accounting Standards Board (or FASB) Accounting Standards Update (or ASU), No. 2016-02, Leases (Topic 842) (or ASU 2016-02), requires lessees to recognize a right of use asset and a lease liability on the balance sheet for most leases. Upon adoption of ASU 2016-02, we concluded that our drilling contracts contain a lease component for the use of our drilling rigs based on the updated definition of a lease. However, ASU 2016-02 provides for a practical expedient for lessors whereby, under certain circumstances, the lessor may combine the lease and non-lease components and account for the combined component in accordance with the accounting treatment for the predominant component. We have determined that our current drilling contracts qualify for this practical expedient and have combined the lease and service components of our standard drilling contracts. We continue to account for the combined component under FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606 ) and its related amendments (collectively referred to as Topic 606). See Note 3 “Revenue from Contracts with Customers.” Fair Value of Financial Instruments We believe that the carrying amount of our current financial instruments approximates fair value because of the short maturity of these instruments. See Note 8 “Financial Instruments and Fair Value Disclosures.” Debt Issuance Costs Deferred costs associated with our credit facility are presented in “Other assets” in the Successor's Consolidated Balance Sheets at December 31, 2023 and 2022 and amortized as interest expense over the respective terms of the credit facility. Deferred costs associated with our other long-term debt are presented in the Successor's Consolidated Balance Sheets at December 31, 2023 and 2022 as a reduction in the related long-term debt and are amortized over the respective terms of the related debt as interest expense. See Note 2 “Chapter 11 Proceedings” and Note 10 “Long-Term Debt” for a discussion of deferred arrangement fees associated with our Successor and Predecessor credit facilities and long-term debt. Income Taxes We account for income taxes in accordance with accounting standards that require the recognition of the amount of taxes payable or refundable for the current year and an asset and liability approach in recognizing the amount of deferred tax liabilities and assets for the future tax consequences of events that have been currently recognized in our financial statements or tax returns. In each of our tax jurisdictions we recognize a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax asset or liability for the estimated future tax effects attributable to temporary differences and carryforwards. Deferred tax assets are reduced by a valuation allowance, if necessary, which is determined by the amount of any tax benefits that, based on available evidence, are not expected to be realized under a “more likely than not” approach. Deferred tax assets and liabilities are classified as noncurrent in a classified statement of financial position. We make judgments regarding future events and related estimates especially as they pertain to the forecasting of our effective tax rate, the potential realization of deferred tax assets such as utilization of foreign tax credits, and exposure to the disallowance of items deducted on tax returns upon audit. We record both interest and penalties related to accrued uncertain tax positions in “Income tax (expense) benefit” in our Consolidated Statements of Operations. Liabilities for uncertain tax positions, including any interest and penalties, are denominated in the currency of the related tax jurisdiction and are revalued for changes in currency exchange rates. The revaluation of such liabilities for uncertain tax positions is reported in “Income tax (expense) benefit” in our Consolidated Statements of Operations. See Note 13 “Income Taxes.” Comprehensive Loss Comprehensive (loss) income is the change in equity of a business enterprise during a period from transactions and other events and circumstances except those transactions resulting from investments by owners and distributions to owners. Comprehensive loss for the Successor periods for the years ended December 31, 2023 and 2022 and from April 24, 2021 through December 31, 2021 and the Predecessor period from January 1, 2021 through April 23, 2021 includes net losses and unrealized holding gains on marketable securities. Foreign Currency Our functional currency is the U.S. dollar. Transactions incurred in currencies other than the U.S. dollar are subject to gains or losses due to fluctuations in those currencies. We report foreign currency transaction gains and losses as “Foreign currency transaction loss” in our Consolidated Statements of Operations. The revaluation of assets and liabilities related to foreign income taxes, including deferred tax assets and liabilities and uncertain tax positions, including any interest and/or penalties, is reported in “Income tax (expense) benefit” in our Consolidated Statements of Operations. Accounting Principles Not Yet Adopted In December 2023, the FASB issued ASU No. 2023-09, Income Tax (Topic 740): Improvements to Income Tax Disclosures (or ASU 2023-09). ASU 2023-09 requires business entities on an annual basis to (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet certain quantitative thresholds. The new guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statement disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (or ASU 2023-07). ASU 2023-07 modifies the disclosure and presentation requirements of reportable segments and requires the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit and loss. In addition, the new guidance enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and other disclosure requirements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statement disclosures. |
Chapter 11 Proceedings
Chapter 11 Proceedings | 12 Months Ended |
Dec. 31, 2023 | |
Reorganizations [Abstract] | |
Chapter 11 Proceedings | 2. Chapter 11 Proceedings Chapter 11 Cases On April 26, 2020 (or the Petition Date), Diamond Offshore Drilling, Inc. (or the Company) and certain of its direct and indirect subsidiaries (which we refer to, together with the Company, as the Debtors) filed voluntary petitions (or the Chapter 11 Cases) for relief under chapter 11 (or Chapter 11) of title 11 of the United States Code (or the Bankruptcy Code) in the United States Bankruptcy Court for the Southern District of Texas (or the Bankruptcy Court). The Chapter 11 Cases were jointly administered under the caption In re Diamond Offshore Drilling, Inc., et al ., Case No. 20-32307 (DRJ). On January 22, 2021, the Debtors entered into a Plan Support Agreement (or the PSA) among the Debtors, certain holders of the Company’s then-existing 5.70 % Senior Notes due 2039 , 3.45 % Senior Notes due 2023 , 4.875 % Senior Notes due 2043 and 7.875 % Senior Notes due 2025 (collectively, the Senior Notes) party thereto and certain holders of claims (collectively, the RCF Claims) under the Company’s then-existing $ 950.0 million syndicated revolving credit facility. Concurrently, the Debtors entered into the Backstop Agreement (as defined in the PSA) with certain holders of Senior Notes and entered into the Commitment Letter (as defined in the PSA) with certain holders of RCF Claims to provide exit financing upon emergence from bankruptcy. The Debtors filed a joint Chapter 11 plan of reorganization with the Bankruptcy Court on January 22, 2021, which was subsequently amended on February 24, 2021 and February 26, 2021 (or the Plan). On March 23, 2021, the Debtors filed the plan supplement for the Plan with the Bankruptcy Court, which was subsequently amended on April 6, 2021 and April 22, 2021 (or the Plan Supplement). Chapter 11 Emergence On April 8, 2021 , the Bankruptcy Court entered an order confirming the Plan (or the Confirmation Order). On April 23, 2021 (or the Effective Date), all conditions precedent to the Plan were satisfied, the Plan became effective in accordance with its terms, and the Debtors emerged from Chapter 11 reorganization. New Diamond Common Shares and New Warrants On the Effective Date, in connection with the effectiveness of, and pursuant to the terms of, the Plan and the Confirmation Order, the Company’s common stock outstanding immediately before the Effective Date was canceled. The new organizational documents of the Reorganized Company (as defined below) became effective, authorizing the issuance of shares of common stock representing 100 % of the equity interests in the Reorganized Company (or the New Diamond Common Shares). Pursuant to the Warrant Agreement (as defined below), the Emergence Warrants (as defined below) were issued by the Company to holders of existing shares of common stock in the amounts, and on the terms, set forth in the Plan and the Plan Supplement. Thus, the Company, as reorganized on the Effective Date in accordance with the Plan (or the Reorganized Company), issued the New Diamond Common Shares and the Emergence Warrants, and the 9.00 %/ 11.00 %/ 13.00 % Senior Secured First Lien PIK Toggle Notes due 2027 (or the First Lien Notes) were issued by Diamond Foreign Asset Company (or DFAC), a Cayman Islands exempted company limited by shares that is a wholly-owned subsidiary of the Company, and Diamond Finance, LLC (or DFLLC), a newly-formed wholly-owned subsidiary of DFAC (collectively, the New Capital). The New Capital issued pursuant to the Plan was issued in reliance upon the exemption from the registration requirements of the Securities Act of 1933, as amended (or the Securities Act), provided by section 1145 of the Bankruptcy Code and, to the extent such exemption was unavailable, was issued in reliance on the exemption provided by section 4(a)(2) of the Securities Act or another applicable exemption. The new organizational documents authorized the Company to issue two classes of stock designated, respectively, common stock and preferred stock. The total number of shares of capital stock that the Company has authority to issue is 800 million consisting of 750 million shares of common stock, having a par value of $ 0.0001 per share (or Common Stock), and 50 million shares of preferred stock, having a par value of $ 0.0001 per share. On the Effective Date, pursuant to the Plan: • 70.0 million New Diamond Common Shares were transferred pro rata to holders of Senior Notes Claims (as defined in the Plan) in exchange for the cancellation of the Senior Notes; • 30.0 million New Diamond Common Shares were transferred pro rata to holders of Senior Notes Claims in exchange for providing $ 114.7 million of new-money commitments to the Debtors pursuant to the Rights Offerings, the Private Placement, and the Backstop Commitments (each as defined in the Backstop Agreement); and • 7.5 million Emergence Warrants were issued to the holders of Existing Parent Equity Interests (as defined in the Plan). As of th e Effective Date, 100.0 million New Diamond Common Shares were issued and outstanding. On the Effective Date and pursuant to the Plan, the Company entered into a Warrant Agreement (or the Warrant Agreement) with Computershare Inc., a Delaware corporation, and Computershare Trust Company, N.A., a federally chartered trust company, as warrant agent, which provides for the issuance of an aggregate of 7.5 million five-year warrants with no Black Scholes protection (or the Emergence Warrants). The Emergence Warrants have an exercise period of five years and are exercisable into 7 % of the New Diamond Common Shares measured at the time of the exercise, subject to dilution by the MIP Equity Shares (as defined in the Plan). The Emergence Warrants are initially exercisable for one New Diamond Common Share per Emergence Warrant at an exercise price of $ 29.22 per Emergence Warrant (as may be adjusted from time to time pursuant to the Warrant Agreement). Pursuant to the Warrant Agreement, no holder of Emergence Warrants shall have or exercise any rights held by holders of New Diamond Common Shares solely by virtue thereof as a holder of Emergence Warrants, including the right to vote or to receive dividends and other distributions as a holder of New Diamond Common Shares. New Debt at Emergence On the Effective Date, pursuant to the terms of the Plan, the Company and DFAC entered into the following debt instruments: • a senio r secured revolving credit agreement (or the Exit Revolving Credit Agreement), which provided for a $ 400.0 million senior secured revolving credit facility (or the Exit RCF); • a senior secured term loan credit agreement (or the Exit Term Loan Credit Agreement), which provided for a $ 100.0 million senior secured term loan credit facility (or the Exit Term Loan Credit Facility and, together with the Exit RCF, the Exit Facilities), which was scheduled to mature on April 22, 2027 under which $ 100.0 million was drawn on the Effective Date (or the Exit Term Loans); • an indenture (or the First Lien Notes Indenture), pursuant to which approximately $ 85.3 million in aggregate principal amount of First Lien Notes maturing on April 22, 2027 were issued on the Effective Date; and • approximately $ 39.7 million in the form of delayed draw note commitments that were issuable as additional First Lien Notes after the Effective Date (or the Last Out Incremental Debt), no ne of which had been issued as of December 31, 2023. On September 21, 2023, DFAC and DFLLC, (or, together with DFAC, the Issuers), issued $ 550.0 million aggregate principal amount of 8.5 % Senior Secured Second Lien Notes due 2030 (or Second Lien Notes) in a private placement (or the Notes Offering). We used the proceeds from the Notes Offering to fully repay outstanding borrowings under and terminate our Exit Term Loan Credit Facility, redeem in full our First Lien Notes and repay all amounts outstanding under the Exit RCF. See Note 10 “Long-Term Debt.” Claims Treatment Under the Plan In accordance with the Plan, holders of claims against and interests in the Debtors received the following treatment on the Effective Date, or as soon as reasonably practicable thereafter: • Other Secured Claims . Except to the extent that such holder agreed to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of, and in exchange for such Other Secured Claim (as defined in the Plan), each such holder received (i) payment in full in cash or (ii) such other treatment so as to render such holder’s claim unimpaired. • Other Priority Claims . Except to the extent that such holder agreed to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of, and in exchange for such claim each holder of an Allowed Other Priority Claim (as defined in the Plan) received (i) payment in cash of the unpaid portion of its claim or (ii) other treatment consistent with the provisions of section 1129(a)(9) of the Bankruptcy Code. • RCF Claims . Except to the extent that such holder agreed to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of, and in exchange for each RCF Claim (as defined in the Plan), each holder of an Allowed RCF Claim (as defined in the Plan) received (A) first, its pro rata share calculated as a percentage of all holders in such class that elected to participate in the Exit RCF of the RCF Cash Paydown (as defined in the Plan); (B) second, to the extent such holder’s RCF Claims were not satisfied in full after the application of the RCF Cash Paydown, its Participating RCF Lender Share (as defined in the Plan) of up to $ 100 million of funded loans under the Exit RCF; and (C) third, to the extent such holder’s RCF Claims were not satisfied in full after the application of the RCF Cash Paydown and the allocation of funded loans under the Exit RCF, a share of $ 200 million (less the amount of aggregate funded loans under the Exit RCF on the Effective Date) of the Exit Term Loan Credit Facility that was equal to the remaining unsatisfied amount of such holder’s RCF Claims. • Senior Notes Claims . Except to the extent that such holder agreed to a less favorable treatment, in full and final satisfaction, settlement, release and discharge of, and in exchange for such Senior Notes Claims (as defined in the Plan), each holder of an Allowed Senior Notes Claim (as defined in the Plan) received its pro rata share of 70.00 % of the New Diamond Common Shares, subject to dilution by the Emergence Warrants and the MIP Equity Shares. • General Unsecured Claims . Except to the extent that such holder agreed to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of, and in exchange for such General Unsecured Claims (as defined in the Plan), each holder of an Allowed General Unsecured Claim (as defined in the Plan) received (i) payment in full in cash (inclusive of post-petition interest); (ii) Reinstatement (as defined in the Plan); or (iii) such other treatment sufficient to render such claims unimpaired. • Existing Parent Equity Interests . Each holder of an Allowed Existing Parent Equity Interest (as defined in the Plan) received its pro rata share of the Emergence Warrants, subject to dilution by the MIP Equity Shares. • Intercompany Claims . All Intercompany Claims (as defined in the Plan) were adjusted, Reinstated (as defined in the Plan), or discharged at the Debtors’ discretion. • Intercompany Interests . All Intercompany Interests (as defined in the Plan) were (i) canceled (or otherwise eliminated) and received no distribution under the Plan or (ii) Reinstated at the Debtors’ option. Fresh Start Accounting Upon emergence from bankruptcy, we met the criteria and were required to adopt fresh start accounting in accordance with ASC 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 required that new fair values be established for the Company’s assets, liabilities, and equity as of the date of emergence from bankruptcy on April 23, 2021. The Effective Date fair values of the Successor’s assets and liabilities differed 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 the Plan, the financial statements for the period after April 23, 2021 are not 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. References to “Predecessor” refer to the Company and its financial position and results of operations on or before the Effective Date (or from January 1, 2021 to April 23, 2021). |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers Our contracts with customers provide for an offshore drilling rig and drilling services on a dayrate contract basis. The integrated services provided under our contracts primarily include (i) provision of an offshore drilling rig, the work crew and supplies of equipment and services necessary to operate the rig, (ii) mobilization and demobilization of the rig to and from the drill site and (iii) performance of rig preparation activities and/or modifications required for each contract. We have concluded that our drilling contracts contain a lease component. However, we have elected to apply the practical expedient provided under ASU 2016-02 to not separate the lease and non-lease components and apply the revenue recognition guidance in Topic 606. Therefore, we account for the integrated services provided within our drilling contracts as a single performance obligation satisfied over time, comprised of a series of distinct time increments in which we provide drilling services. The total transaction price is recognized for each drilling contract by estimating both fixed and variable consideration expected to be earned over the contract term (which is the period we estimate to be benefited from the corresponding activities and generally ranges from two to 60 months ). The amount estimated for variable consideration may be constrained (reduced) and is only recognized in revenue to the extent that it is probable that a significant reversal will not occur throughout the term of the contract. When determining if variable consideration should be constrained, management considers whether there are factors outside of our control that could result in a significant reversal of revenue, as well as the likelihood and magnitude of a potential reversal of revenue. These estimates are reassessed each reporting period as required. See below for further discussion regarding the allocation of the transaction price to the remaining performance obligations. Dayrate Drilling Revenue. Our drilling contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted, restricted by equipment breakdowns, adverse environmental conditions, etc. The dayrate invoices billed to the customer are typically determined based on the varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly increment it relates to within the contract term, and therefore recognized in line with the contractual rate billed for the services provided for any given hour. Certain of our contracts contain performance based incentives, whereby we may earn a bonus or incur penalties based on pre-established performance metrics. Consideration related to the performance incentive is generally recognized in the specific time period to which the performance criteria were attributed. Mobilization/Demobilization Revenue. We may receive fees (on either a fixed lump-sum or variable dayrate basis) for the mobilization and demobilization of our rigs. These activities are not considered to be distinct within the context of the contract, and therefore the associated revenue is allocated to the overall performance obligation. We record a contract liability for mobilization fees received and amortize such on a straight-line basis to contract drilling revenue as services are rendered over the term of the related drilling contract. Demobilization revenue expected to be received upon contract completion is estimated as part of the overall transaction price at contract inception and recognized as contract drilling revenue on a straight-line basis over the term of the contract with an offset to an accretive contract asset. In some contracts, there is uncertainty as to the likelihood and amount of expected demobilization revenue to be received. For example, contractual provisions may require that a rig demobilize a certain distance before the demobilization revenue is payable or the amount may vary dependent upon whether or not the rig has additional contracted work within a certain distance from the wellsite. Therefore, the estimate for such revenue may be constrained, as described above, depending on the facts and circumstances pertaining to the specific contract. We assess the likelihood of receiving such revenue based on our past experience and knowledge of market conditions. Contract Preparation Revenue. Some of our drilling contracts require downtime before the start of the contract to prepare the rig to meet customer requirements. At times, the customer may compensate us for such work (on either a fixed lump-sum or variable dayrate basis). These activities are not considered to be distinct within the context of the contract. We record a contract liability for contract preparation upfront fees received, which is amortized on a straight-line basis to contract drilling revenue over the term of the related drilling contract. Capital Modification Revenue . From time to time, we may receive fees from our customers for capital improvements or upgrades to our rigs to meet contractual requirements (on either a fixed lump-sum or variable dayrate basis). The activities related to these capital modifications are not considered to be distinct within the context of our contracts. We record a contract liability for the upfront fees received and recognize them on a straight-line basis to contract drilling revenue over the term of the related drilling contract. Termination Fees. Certain of our drilling contracts may be cancelable for the convenience of the customer, typically with the payment of an early termination fee. Termination fees are not considered distinct within the context of the contract and are typically recognized ratably over the remaining term of the contract once notice of termination is received, and such fee can be reasonably estimated and collection is probable. During the Successor year ended December 31, 2023, we recognized fees of $ 12.5 million and $ 6.7 million related to the termination of contracts for the Ocean Patriot and Ocean Apex , respectively. Revenues Related to Reimbursable Expenses . We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request. Such reimbursable revenue is variable and subject to uncertainty, as the amounts received and timing thereof are highly dependent on factors outside of our influence. Accordingly, reimbursable revenue is fully constrained and not recognized until the uncertainty is resolved, which typically occurs when the related costs are incurred on behalf of a customer. We are generally considered a principal in such transactions and record the associated revenue at the gross amount billed to the customer, as “Revenues related to reimbursable expenses” in our Consolidated Statements of Operations. Revenues Related to Managed Rigs. In May 2021, we entered into an arrangement with an offshore drilling company whereby we would provide management and marketing services (or the MMSA) for certain of their rigs. The MMSA provided for (i) a daily fixed fee, based on status of the drilling rig, (ii) marketing fees based on a percentage of the earned dayrate of a drilling contract secured by us on behalf of the rig owner, (iii) a variable management fee and (iv) reimbursement of direct cost incurred. The fixed and variable fees were recognized in “Contract Drilling Revenue” in our Consolidated Statements of Operations. Revenue related to the reimbursement of expenses incurred and billed to the rig owner were recorded as “Revenues related to reimbursable expenses” in our Consolidated Statements of Operations. We may enter into certain drilling contracts directly with a customer. We are considered principal or agent of these transactions and recognize revenue under the terms of the contract. Such amounts are reported as "Contract Drilling Revenue" in our Consolidated Statements of Operations. In addition, we charter the related drilling rig from the rig owner to satisfy our performance obligation under the contract. We have determined that the arrangement to charter the rig is an operating lease, and the related charter fee has been reported as lease expense within "Contract Drilling, excluding depreciation" in our Consolidated Statements of Operations. The marketing arrangement for both rigs was terminated in 2023, and the charter agreement for the West Auriga was terminated in 2024. The West Auriga is expected to be returned to the rig owner upon completion of its drilling contract during the first quarter of 2024. Contract Balances Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on invoiced amounts are typically 30 days. Contract asset balances consist primarily of demobilization revenue that we expect to receive and is recognized ratably throughout the contract term, but invoiced upon completion of the demobilization activities. Once the demobilization revenue is invoiced, the corresponding contract asset is transferred to accounts receivable. Contract assets may also include amounts recognized in advance of amounts invoiced due to the blending of rates when a contract has operating dayrates that increase over the initial contract term. Contract liabilities include payments received for mobilization as well as rig preparation and upgrade activities which are allocated to the overall performance obligation and recognized ratably over the initial term of the contract. Contract liabilities may also include amounts invoiced in advance of amounts recognized due to the blending of rates when a contract has operating dayrates that decrease over the initial contract term. Contract balances are netted at a contract level, such that deferred revenue for mobilization, contract preparation and capital modifications (contract liabilities) is netted with any accrued demobilization revenue (contract asset) for each applicable contract. The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers (in thousands): December 31, 2023 2022 Trade receivables $ 253,367 $ 155,956 Current contract assets (1) 2,575 141 Noncurrent contract assets (1) — — Current contract liabilities (deferred revenue) (1) ( 12,634 ) ( 11,513 ) Noncurrent contract liabilities (deferred revenue) (1) ( 3,947 ) ( 487 ) (1) Contract assets and contract liabilities may reflect balances that 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 asset and liability balances are included in “Other assets” and “Other liabilities,” respectively, in our Consolidated Balance Sheets as of December 31, 2023 and 2022 . Significant changes in net contract assets and the contract liabilities balances during the period are as follows (in thousands): Contract Contract Assets Liabilities Balance as of January 1, 2022 $ 1,835 $ ( 48,293 ) Decrease due to amortization of revenue included in the beginning contract liability balance — 26,909 Increase due to cash received, excluding amounts recognized as revenue during the period — ( 2,444 ) Increase due to revenue recognized during the period but contingent on future performance 6,618 — Decrease due to transfer to receivables during the period ( 8,312 ) — Adjustments (1) — 11,828 Balance as of December 31, 2022 $ 141 $ ( 12,000 ) Decrease due to amortization of revenue included in the beginning contract liability balance — 11,512 Increase due to cash received, excluding amounts recognized as revenue during the period — ( 16,093 ) Increase due to revenue recognized during the period but contingent on future performance 12,177 — Decrease due to transfer to receivables during the period ( 9,743 ) — Balance as of December 31, 2023 $ 2,575 $ ( 16,581 ) (1) Upon commencement of drilling operations, the MMSA for the managed rigs was suspended and replaced by a charter agreement for the duration of the contract. As a result, we reclassified $ 11.1 million previously recorded as a contract liability to “Contract advances,” which was reported as a component of “Accrued liabilities” in our Consolidated Balance Sheets at December 31, 2022. Deferred Contract Costs Certain direct and incremental costs incurred for upfront preparation, initial mobilization and modifications of contracted rigs represent costs of fulfilling a contract as they relate directly to a contract, enhance resources that will be used in satisfying our performance obligations in the future and are expected to be recovered. Such costs are deferred and amortized ratably to contract drilling e xpense as services are rendered over the term of the related drilling contract. Such deferred contract costs in the amount of $ 20.6 million and $ 6.2 million are reported in “Prepaid expenses and other current assets” and “Other assets,” respectively, in our Consolidated Balance Sheets at December 31, 2023 . Deferred contract costs in the amount of $ 14.4 million and $ 0.3 million are reported in “Prepaid expenses and other current assets” and “Other assets,” respectively, in our Consolidated Balance Sheets at December 31, 2022 . The amount of amortization of such costs was $ 16.2 million and $ 7.3 million for the years ended December 31, 2023 and 2022, respectively. There was no impairment loss in relation to capitalized costs. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. Costs incurred for rig modifications or upgrades required for a contract, which are considered to be capital improvements, are capitalized as drilling and other property and equipment and depreciated over the estimated useful life of the improvement. Transaction Price Allocated to Remaining Performance Obligations The following table reflects revenue expected to be recognized in the future related to unsatisfied performance obligations as of December 31, 2023 (in thousands): For the Year Ending December 31, 2024 2025 2026 2027 Total Mobilization and contract $ 6,256 $ 1,350 $ 1,350 $ 1,235 $ 10,191 Capital modification revenue 4,381 — — — 4,381 Blended rate/other revenue 2,009 — — — 2,009 Demobilization and other deferred revenue 472 198 198 181 1,049 Total $ 13,118 $ 1,548 $ 1,548 $ 1,416 $ 17,630 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. Revenue expected to be recognized in the future related to the blending of rates when a contract has operating dayrates that decrease over the initial contract term has also been included. 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 December 31, 2023 . 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 Topic 606 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. |
Asset Impairments
Asset Impairments | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Asset Impairments | 4. Asset Impairments For the Successor years ended December 31, 2023 and 2022, we did not identify any indicators that the carrying amounts of our assets were not recoverable, and, thus, recorded no impairment losses for each of the periods then ended, respectively. 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 was impaired. We recorded an asset impairment aggregating $ 197.0 million for the Predecessor period from January 1, 2021 through April 23, 2021 related to this rig. Pursuant to fresh start accounting, our long-lived assets, including our drilling rigs, were valued at their estimated fair value on the Effective Date based on assumptions and market factors that we believed to be accurate at that time. On the Effective Date, the remaining economic useful life of each individual rig was validated or revised, if so indicated. Subsequently, at the end of 2021, we reviewed the marketability, age and physical condition of certain of our rigs in conjunction with other factors specific to the geographic markets in which our rigs are capable of operating and determined that, based on circumstances that arose in the fourth quarter of 2021, which we believed to be other than temporary, the economic useful lives of certain of the rigs in our fleet were materially different than that determined at the Effective Date. At December 31, 2021, we identified three semisubmersible rigs for which we believed a change in the economic useful life was appropriate. In connection with this reassessment, we evaluated each rig for recoverability and determined that the carrying values of two of these rigs were impaired. We recorded an aggregate impairment loss of $ 132.4 million in the Successor period from April 24, 2021 through December 31, 2021 to write down the carrying value of these rigs to their estimated fair values. In addition, we reviewed one other rig with an indicator of impairment and determined that no impairment had occurred at December 31, 2021. We estimated the fair values of the impaired rigs using an income approach, whereby the fair value of each 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 and, when applicable, 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. See Note 1 “General Information — Impairment of Long-Lived Assets” and Note 8 “Financial Instruments and Fair Value Disclosures.” |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | 5. Supplemental Financial Information Consolidated Balance Sheets Information Accounts receivable, net of allowance for bad debts, consists of the following (in thousands): December 31, 2023 2022 Trade receivables $ 253,367 $ 155,956 Value added tax receivables 5,256 6,075 Related party receivables 155 73 Federal income tax receivables — 9,450 Other 1,346 6,121 260,124 177,675 Allowance for credit losses ( 5,801 ) ( 5,622 ) Total $ 254,323 $ 172,053 The allowance for credit losses at December 31, 2023 and 2022 represents our current estimate of credit losses associated with our “Trade receivables” and “Current contract assets.” See Note 8 “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): December 31, 2023 2022 Deferred contract costs 20,552 14,373 Collateral deposit 11,857 — Prepaid taxes 10,868 16,922 Rig spare parts and supplies 4,694 5,091 Prepaid rig costs 3,668 4,001 Prepaid insurance 3,437 3,022 Current contract assets 2,575 141 Deferred survey costs 1,418 838 Software maintenance agreements and subscriptions 1,408 1,212 Other 2,935 3,095 Total $ 63,412 $ 48,695 Accrued liabilities consist of the following (in thousands): December 31, 2023 2022 Contract advances $ 63,618 $ 52,743 Rig operating costs 42,893 39,288 Payroll and benefits 35,215 29,408 Interest payable 13,013 1,897 Deferred revenue 12,634 11,513 Accrued capital project/upgrade costs 10,766 8,419 Current operating lease liability 8,436 13,480 Personal injury and other claims 7,391 3,738 Shorebase and administrative costs 5,699 4,365 Deposit for equipment sale 1,977 1,670 Other 1,694 264 Total $ 203,336 $ 166,785 Consolidated Statements of Cash Flows Information Noncash investing activities excluded from the Consolidated Statements of Cash Flows and other supplemental cash flow information is as follows (in thousands): Successor Predecessor Year Ended Period from April 24 Period from January 1 December 31, through December 31, through April 23, 2023 2022 2021 2021 Accrued but unpaid capital expenditures at period end $ 10,766 $ 8,419 $ 2,219 $ 18,617 Accrued but unpaid debt issuance costs and arrangement fees (1) — — — 7,588 Common stock withheld for payroll tax obligations (2) 4,241 4,252 — — Cash interest payments 30,949 27,767 13,671 37,593 Cash paid for reorganization items, net — — 36,154 37,566 Cash income taxes paid (refunded), net: Foreign 7,449 13,178 1,969 3,460 U.S. federal ( 2,446 ) 110 468 — State 4 — — ( 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, which were accrued at April 23, 2021. In total, we incurred and capitalized financing costs of $ 13.8 million in relation to our exit financing . (2) Represents the cost of 302,833 and 563,727 shares of common stock withheld to satisfy the payroll tax obligation incurred as a result of the vesting of equity awards in the years ended December 31, 2023 and 2022, respectively. These costs are presented as a deduction from stockholders’ equity in “Treasury stock” in our Consolidated Balance Sheets at December 31, 2023 and 2022, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 6. Stock-Based Compensation We have an equity incentive compensation plan for our officers, independent contractors, employees and non-employee directors which is designed to encourage stock ownership by such persons. We may grant both time-vesting and performance-vesting awards, which are earned on the achievement of certain performance criteria. The following types of awards may be granted under our incentive plan: • Stock options (including incentive stock options and nonqualified stock options); • Stock appreciation rights (or SARs); • Restricted stock; • Restricted stock units (or RSUs); • Performance shares or units; and • Other stock-based awards (including dividend equivalents). Successor Plan The Diamond Offshore Drilling, Inc. 2021 Long-Term Stock Incentive Plan (or the Equity Incentive Plan) provides for the grant of stock options, SARs, restricted stock, RSUs, performance awards, and other stock-based awards or any combination thereof to eligible participants. Vesting conditions and other terms and conditions of awards under the Equity Incentive Plan are determined by our Board of Directors (or Board) or the compensation committee of our Board, subject to the terms of the Equity Incentive Plan. RSUs and restricted stock awards may be issued with performance-vesting or time-vesting features, which may or may not be participating securities. The aggregate number of shares of Common Stock initially available for issuance pursuant to awards under the Equity Incentive Plan was 11,111,111 . Total compensation cost recognized for all awards under the Equity Incentive Plan for the Successor periods for the years ended December 31, 2023 and 2022 and for the period from April 24, 2021 to December 31, 2021 was $ 14.2 million, $ 20.2 million and $ 10.8 million, respectively. Tax benefits recognized for the Successor periods for the years ended December 31, 2023 and 2022 and for the period from April 24, 2021 to December 31, 2021 were $ 2.5 million, $ 2.9 million and $ 2.0 million, respectively. As of December 31, 2023, total unrecognized compensation cost related to non-vested awards under the Equity Incentive Plan aggregated $ 10.7 million, which we expect to recognize over a weighted average period of one year . Time-Vesting Awards RSUs . RSUs are contractual rights to receive shares of our Common Stock in the future if the applicable vesting conditions are met. As of December 31, 2023, an aggregate 318,292 time-vesting RSU awards were outstanding with respect to awards to our non-employee members of the Board (or Board RSUs). The Board RSUs vest and become non-forfeitable on the first anniversary of the grant date, subject to the recipient’s continuous service through the applicable vesting date. The vested Board RSUs will be issued at the earliest of (i) the fifth anniversary of the grant date, (ii) a separation from service or (iii) a change in control. Effective July 1, 2021, the Board approved a new key employee retention and incentive plan covering executive officers and certain non-executive key employees. During the Successor periods for the years ended December 31, 2023 and 2022 and from April 24, 2021 to December 31, 2021, we granted 593,205 , 535,516 and 1,916,043 time-vesting RSUs, respectively, to our executive officers and other non-key executive employees. The RSUs vest annually over a period of three years from the grant date. Restricted Stock Awards . Pursuant to the terms of the Equity Incentive Plan, we granted 222,222 shares of time-vesting restricted stock awards to our Chief Executive Officer in 2021, which had fully vested by May 2023. Holders of restricted stock have all privileges of a stockholder of the Company with respect to the restricted stock, including without limitation the right to vote any shares underlying such restricted stock and to receive dividends or other distributions in respect thereof. The fair value of time-vesting RSUs and restricted stock awards granted under the Equity Incentive Plan was estimated based on the fair market value of our Common Stock on the date of grant. A summary of time-vesting RSU and restricted stock award activity under the Successor Equity Incentive Plan as of December 31, 2023 and changes during the year then ended is as follows: Number Weighted Nonvested awards at January 1, 2023 1,945,138 $ 8.20 Granted 692,236 $ 11.34 Vested ( 854,293 ) $ 8.31 Forfeited ( 98,460 ) $ 8.31 Nonvested awards at December 31, 2023 1,684,621 $ 6.81 The weighted average grant-date fair value per share of restricted stock awards granted during the Successor periods for the years ended December 31, 2023 and 2022 and the period from April 24, 2021 to December 31, 2021 was $ 11.34 , $ 6.68 and $ 8.75 , respectively. The total fair value of the restricted stock awards that vested during the Successor periods for the years ended December 31, 2023 and 2022 and for the period from April 24, 2021 to December 31, 2021 was $ 11.3 million, $ 3.9 million and $ 0.6 million, respectively. Performance-Vesting Awards RSUs . During the Successor periods for the years ended December 31, 2023 and 2022 and the period from April 24, 2021 to December 31, 2021, we granted 431,241 , 709,148 and 1,733,404 performance-vesting RSU awards, respectively. The performance-vesting RSUs granted during years ended December 31, 2023 and 2022 will vest at the end of a three-year period upon the achievement of certain market conditions and continuous employment of the award holder. The fair value of these shares was estimated using a Monte Carlo simulation. The performance-vesting RSUs granted during the Successor period from April 24, 2021 to December 31, 2021 vest annually over a three-year cycle and are distributed based on performance metrics and continuous employment. The fair value of these shares was estimated based on the fair market value of our Common Stock on the date of grant. A summary of performance-vesting RSU activity under the Equity Incentive Plan as of December 31, 2023 and changes during the year then ended is as follows: Number Weighted Nonvested awards at January 1, 2023 1,521,297 $ 7.42 Granted 431,241 $ 13.99 Vested ( 419,736 ) $ 8.75 Forfeited ( 24,453 ) $ 8.75 Nonvested awards at December 31, 2023 1,508,349 $ 4.62 The weighted average grant-date fair value per share of performance awards granted during the Successor periods for the years ended December 31, 2023 and 2022 and the period from April 24, 2021 to December 31, 2021 was $ 13.99 , $ 5.71 and $ 8.75 , respectively. The total fair value of performance awards vested during Successor years ended December 31, 2023 and 2022 was $ 6.5 million and $ 3.2 million, respectively. Restricted Stock . In May 2021, we granted 777,777 shares of performance-vesting restricted stock awards to our Chief Executive Officer pursuant to the terms of the Equity Incentive Plan. These awards vested upon achievement of both a market and performance condition. Vesting was contingent upon certain conditions (as defined in the award agreement under the Equity Incentive Plan). All vesting conditions have now been satisfied and 30,370 restricted shares and 747,407 restricted shares vested during 2023 and 2022, respectively. The weighted-average grant-date fair value of these performance-vesting restricted stock awards was $ 6.89 per share, or $ 5.4 million in the aggregate, which we recognized as compensation expense during the Successor year ended December 31, 2022. The total fair value of the awards that vested during the Successor years ended December 31, 2023 and 2022 was $ 0.4 million and $ 6.2 million, respectively. The performance-vesting restricted stock awards granted during the Successor years ended December 31, 2023 and 2022 were valued using a Monte Carlo simulation assuming a Geometric Brownian Motion in a risk-neutral framework and using the following assumptions: Awards granted 2023 2022 Expected life of awards (in years) 3 3 Expected volatility 70.50 % 75.00 % Risk-free interest rate 3.70 % 2.71 % |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Loss Per Share | 7. Loss Per Share We present basic and diluted loss per share on our Consolidated Statements of Operations. Basic loss per share excludes dilution and is computed by dividing net loss by the weighted-average number of shares of common stock outstanding for the period. We experienced net losses for the Successor periods for the years ended December 31, 2023 and 2022 and the period from April 24, 2021 through December 31, 2021 and the Predecessor period from January 1, 2021 through April 23, 2021. We have excluded shares of common stock issuable upon exercise of outstanding stock appreciation rights and vesting of outstanding restricted stock units from the calculation of weighted-average shares because their inclusion would be antidilutive. |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosures | 8. Financial Instruments and Fair Value Disclosures Concentrations of Credit Risk and Allowance for Credit Losses Our credit risk arises primarily from trade receivables. The market for our services is the offshore oil and gas industry, and our customer base consists primarily of major and independent oil and gas companies, as well as government-owned oil companies. At December 31, 2023, we believe that we had potentially significant concentrations of credit risk due to the number of rigs we currently had contracted and the 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 that 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 currently have one customer for which prepayments are required and full payment is due prior to commencement of the contract in mid-2024. At December 31, 2023, no amounts were owed by this customer. Prior to the adoption of FASB ASU No. 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (or ASU 2016-13), we historically recorded a provision for bad debts on a case-by-case basis when facts and circumstances indicated that a customer receivable may not be collectible. In establishing these reserves, we considered historical and other factors that predicted collectability of such customer receivables, including write-offs, recoveries and the monitoring of credit quality. The amounts reserved for uncollectible accounts in previous periods have not been significant, individually or in comparison to our total revenues. ASU 2016-13 requires an entity to measure credit losses of certain financial assets, including trade receivables, utilizing a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to form credit loss estimates. Pursuant to ASU 2016-13, we review 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 develop a credit loss factor using a weighted-average ratio of our actual credit losses to revenues during the look-back period. We also consider 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 ASU 2016-13 and its related amendments (or collectively, CECL), we determined that it would be appropriate to segregate 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 calculate a credit loss factor based on historical loss rate information and apply 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. At December 31, 2023, $ 11.1 million in trade receivables were considered past due by 30 days or more, of which $ 5.5 million have been fully reserved. The remaining $ 5.6 million were less than a year past due and considered collectible. For purposes of calculating our current estimate of credit losses at December 31, 2023 and 2022, all trade receivables, except for those fully reserved, were deemed to be in a single risk pool based on their credit ratings at each respective period. Our total allowance for credit losses was $ 5.8 million and $ 5.6 million at December 31, 2023 and 2022, including $ 0.3 million and $ 0.2 million at December 31, 2023 and 2022, respectively, related to our current estimate of credit losses under CECL. See Note 5 “Supplemental Financial Information — Consolidated Balance Sheets 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. We recorded impairment charges related to certain of our drilling rigs, which were measured at fair value on a nonrecurring basis during the Successor period from April 24, 2021 through December 31 2021 and the Predecessor period from January 1, 2021 through April 23, 2021. The aggregate losses for the periods have been presented as “Impairment of assets” in our Consolidated Statements of Operations for the Successor period from April 24, 2021 through December 31, 2021 and the Predecessor period from January 1, 2021 through April 23, 2021. See Note 4 “Asset Impairments.” Assets and liabilities measured at fair value are summarized below (in thousands). Successor December 31, 2023 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets and Liabilities at Total Losses for Year Ended (2) Recurring fair value measurements Short-term investments (1) $ 92,308 $ — $ — $ 92,308 $ — Liability-classified Director restricted stock units (2) $ ( 1,259 ) $ — $ — $ ( 1,259 ) $ ( 252 ) Successor December 31, 2022 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets and Liabilities at Total Losses for Year Ended (2) Recurring fair value measurements Liability-classified Director restricted stock units (2) $ ( 1,258 ) $ — $ — $ ( 1,258 ) $ ( 201 ) (1) Represents short-term investments in debt securities classified as available for sale. As the original maturities of these debt securities are three months or less, we have reported our $ 92.3 million investment in these debt securities as Cash and cash equivalents in our Consolidated Balance Sheets at December 31, 2023. (2) The fair value of restricted stock units was estimated based on the quoted market price of our Common Stock at the respective balance sheet date. The total loss for the year includes an increase in stock compensation expense due to the “marking-to-market” of liability-classifie d restricted stock units granted to our non-employee directors on a recurring basis. We believe that the carrying amounts of our other financial assets and liabilities (excluding our Second Lien Notes, Exit Term Loans and First Lien Notes), which are not measured at fair value in our 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 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 Second Lien Notes, Exit Term Loans and First Lien Notes would be considered Level 2 liabilities. The fair value of these instruments was derived using a third-party pricing service at December 31, 2023 and 2022. We perform control procedures over information we obtain from pricing services and brokers to test whether prices received represent a reasonable estimate of fair value. These procedures include the review of pricing service or broker pricing methodologies. Fair values and related carrying values of our Second Lien Notes, Exit Term Loans and First Lien Notes (see Note 10 "Long-Term Debt") are shown below (in millions). December 31, 2023 2022 Fair Carrying Fair Carrying Second Lien Notes $ 562.6 $ 550.0 $ — $ — Exit Term Loans — — 91.1 100.0 First Lien Notes — — 78.3 85.3 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 | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Drilling and Other Property and Equipment | 9. Drilling and Other Property and Equipment Cost and accumulated depreciation of drilling and other property and equipment are summarized as follows (in thousands): December 31, 2023 2022 Drilling rigs and equipment $ 1,244,798 $ 1,126,793 Finance lease right of use asset 174,571 174,571 Land and buildings 10,040 10,001 Office equipment and other 5,180 2,515 Cost 1,434,589 1,313,880 Less: accumulated depreciation ( 278,221 ) ( 171,972 ) Drilling and other property and equipment, net $ 1,156,368 $ 1,141,908 |
Long Term Debt
Long Term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long Term Debt | 10. Long-Term Debt At December 31 , 2023 and 2022, the carrying value of our long-term debt, net of unamortized discount, premium and debt issuance costs, was comprised as follows (in thousands): December 31, 2023 2022 $ 550 Million Senior Secured Second Lien Notes due 2030 $ 533,514 $ — Borrowings under Exit RCF — 177,478 $ 100.0 Million Exit Term Loan — 99,190 9.00 %/ 11.00 %/ 13.00 % Senior Secured First Lien PIK Toggle Notes due 2027 — 83,976 Total Long-term debt $ 533,514 $ 360,644 At December 31, 2023, the aggregate annual maturity of our Senior Secured Second Lien Notes, excluding net debt issuance costs of $ 16.5 million, was as follows (in thousands): Year ending December 31, Aggregate Principal Amount 2024 — 2025 — 2026 — 2027 — 2028 — Thereafter 550,000 Total maturities of long-term debt $ 550,000 Second Lien Notes On September 21, 2023, DFAC and DFLLC (which we refer to collectively as the Issuers) issued $ 550 million aggregate principal amount of 8.5 % Senior Secured Second Lien Notes due 2030 (which we refer to as the Second Lien Notes) in a private placement. The Second Lien Notes were issued at par for net proceeds of approximately $ 540.0 million after deduction of certain estimated offering expenses. The Second Lien Notes mature on October 1, 2030 , and i nterest is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2024. The Second Lien Notes are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by Diamond Offshore Drilling, Inc. (or DODI) and each of its existing restricted subsidiaries (other than the Issuers) and by certain of DODI’s future restricted subsidiaries (other than the Issuers) that guarantee any debt of the Issuers or any guarantor under any syndicated credit facility or capital markets debt in an aggregate principal amount in excess of a certain amount (or, collectively, the Subsidiary Guarantors and, together with DODI, the Guarantors). The Second Lien Notes and the related guarantees are secured on a second-priority basis, subject to certain permitted liens, by substantially all the assets of, and equity interests in, the Issuers and the Subsidiary Guarantors. On or after October 1, 2026, the Issuers may, at their option, redeem all or any portion of the Second Lien Notes from time to time upon not less than 10 days nor more than 60 days prior notice, at the redemption prices set forth below, plus accrued and unpaid interest if any, to, but excluding, the redemption date. The following prices are for Second Lien Notes redeemed during the 12-month period commencing on October 1 of the years set forth below, and are expressed as percentages of principal amount: Redemption Year Price 2026 104.25 % 2027 102.13 % 2028 and thereafter 100.00 % At any time and from time to time, prior to October 1, 2026, the Issuers may, on any one or more occasions, redeem up to 35 % of the aggregate principal amount of the Second Lien Notes issued under the Indenture (as defined below) (including any additional Second Lien Notes, if any) with an amount equal to or less than the net cash proceeds of one or more equity offerings, at a redemption price equal to 108.500 % of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to but excluding, the redemption date provided; however, that immediately after giving effect to any such redemption, at least 65 % of the original aggregate principal amount of Second Lien Notes issued on the issue date (excluding Second Lien Notes held by DODI or its subsidiaries) remains outstanding. In addition, at any time prior to October 1, 2026, the Issuers may redeem up to 10 % of the original aggregate principal amount of the Second Lien Notes issued under the Indenture (including additional Second Lien Notes, if any) during any twelve-month period at a redemption price equal to 103.000 % of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. At any time prior to October 1, 2026, the Issuers may redeem some or all of the Second Lien Notes at a price equal to 100 % of the principal amount of the Second Lien Notes redeemed, plus accrued and unpaid interest, if any, to, but not including, the redemption date, plus a “make-whole” premium. The Second Lien Notes are governed by an indenture, dated as of September 21, 2023 (or the Indenture), entered into by the Issuers, DODI and certain of its subsidiaries named therein and HSBC Bank USA, National Association (or HSBC), as trustee and collateral agent. The Indenture contains covenants that, among other things, restrict DODI’s ability and the ability of certain of its subsidiaries to: (i) incur additional debt and issue certain preferred stock; (ii) incur or create liens; (iii) make certain dividends, distributions, investments and other restricted payments; (iv) sell or otherwise dispose of certain assets; (v) engage in certain transactions with affiliates; and (vi) merge, consolidate, amalgamate or sell, transfer, lease or otherwise dispose of all or substantially all of DODI’s assets. These covenants are subject to important exceptions and qualifications. In addition, many of these covenants will be suspended with respect to the Second Lien Notes during any time that the Second Lien Notes have investment grade ratings from at least two rating agencies and no default with respect to the Second Lien Notes has occurred and is continuing. Upon the occurrence of a certain Change of Control Triggering Event (as defined in the Indenture), the Issuers may be required to make an offer to repurchase all of the Second Lien Notes then outstanding at a price equal to 101 % of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. We used a portion of the net proceeds from the Notes Offering to fully repay outstanding borrowings under and terminate our Exit Term Loan Credit Facility, redeem in full our 9.00 %/ 11.00 %/ 13.00 % Senior Secured First Lien PIK Toggle Notes due 2027 (which we refer to as the First Lien Notes) and repay all amounts outstanding under the Exit RCF. The remaining net proceeds will be used for general corporate purposes. The Second Lien Notes were valued at par and presented net of unamortized debt issuance co sts of $ 17.0 million, which are being amortized as interest expense over the stated maturity of the Second Lien Notes using the effective interest method. At December 31, 2023, the effective interest rate on the Second Lien Not es was 9.09 %. Amended Revolving Credit Agreement On April 23, 2021, we entered into the Exit Revolving Credit Agreement, which provided for a $ 400.0 million senior secured revolving credit facility and also originally provided for certain lenders (or the LC Lenders) to issue up to $ 100.0 million of letters of credit thereunder (which we refer to as the Exit RCF). Prior to the Notes Offering, three of the four initial LC Lenders had resigned, reducing availability to issue letters of credit under the Exit RCF to $ 25.0 million. On September 12, 2023, DFAC, as borrower, DODI, as parent, certain of the lenders party thereto, and HSBC, as administrative agent and collateral agent, entered into an amendment (or the Credit Agreement Amendment) to the Exit Revolving Credit Agreement. The Credit Agreement Amendment amended the Exit RCF (or, as amended, the Amended RCF) to, among other things, (i) reduce the aggregate commitment of the lenders thereunder from $ 400.0 million to $ 300.0 million, (ii) permit the Notes Offering and (iii) permit us to incur up to an aggregate of $ 50.0 million of indebtedness in respect of outstanding letters of credit that may be issued on our behalf outside of the Amended RCF. The Credit Agreement Amendment became effective concurrently with the consummation of the Notes Offering, which was conditioned on the Credit Agreement Amendment becoming effective. Borrowings under the Amended RCF may be used to finance capital expenditures, pay fees, commissions and expenses in connection with the loan transactions and consummation of the Plan, and for working capital and other general corporate purposes. Availability of borrowings under the Amended RCF is subject to the satisfaction of certain conditions, including restrictions on borrowings if, after giving effect to any such borrowings and the application of the proceeds thereof, (i) the aggregate amount of Available Cash (as defined in the Amended RCF) would exceed $ 125.0 million, (ii) the Amended RCF Collateral Coverage Ratio (as defined below) would be less than 2.00 to 1.00 or (iii) the Total Collateral Coverage Ratio (as defined below) would be less than 1.30 to 1.00. Available Cash in excess of $ 125.0 million is also required to be applied periodically to prepay loans. The loans under the Amended RCF may be voluntarily prepaid and the commitments thereunder voluntarily terminated or reduced by DFAC at any time without premium or penalty, other than customary breakage costs. The Amended RCF obligates DODI, DFAC and their restricted subsidiaries to comply with the following financial maintenance covenants: as of the last day of each fiscal quarter, the ratio of (a) the Collateral Rig Value (as defined in the Amended RCF), to (b) the aggregate outstanding principal amount of all Loans and L/C Obligations (each as defined in the Amended RCF) thereunder (or the Amended RCF Collateral Coverage Ratio) is not permitted to be less than 2.00 to 1.00; and as of the last day of each fiscal quarter, the ratio of (a) the Collateral Rig Value to (b) the sum of (1) the aggregate outstanding principal amount of all Loans and L/C Obligations thereunder, plus (2) the aggregate outstanding principal amount of the Second Lien Notes as of such date (or the Total Collateral Coverage Ratio) not permitted to be less than 1.30 to 1.00. The Amended RCF contains negative covenants that limit, among other things, the ability of each of DODI, DFAC and their 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) prepay, 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, the Amended RCF contains other covenants, representations and warranties and events of default that are customary for a financing of this type. Events of default include, among other things, nonpayment of principal or interest, breach of covenants, breach of representations and warranties, failure to pay final judgments in excess of a specified threshold, failure of a guarantee to remain in effect, failure of a security document to create an effective security interest in collateral, bankruptcy and insolvency events, cross-default to other material indebtedness, and a change of control. Loans under the Amended RCF bear interest at (i) the Base Rate plus the Applicable Margin (each as defined in the Amended RCF) or (ii) Adjusted Term SOFR (as defined in the Amended RCF) plus the Applicable Margin. DFAC is required to pay a quarterly commitment fee under the Amended RCF, which accrues at a rate per annum equal to 0.50 % on the average daily unused portion of the lenders’ commitments under the Amended RCF. DFAC is also required to pay customary letter of credit and fronting fees. On September 21, 2023, we repaid the aggregate principal amount of borrowings outstanding under the Amended RCF of approximately $ 189.0 million plus accrued and unpaid interest thereon through the repayment date in full with a portion of the proceeds of the Notes Offering. In addition, we wrote off a pro rata portion of unamortized deferred debt arrangement fees related to the reduction in borrowing capacity under the Amended RCF. We reported the $ 1.3 million write-off of fees as “Loss on extinguishment of long-term debt” in our Consolidated Statements of Operations for the year ended December 31, 2023. On October 24, 2023, Barclays Bank PLC (or Barclays), gave notice of its resignation as an LC Lender under the Amended RCF. Our capacity for issuing additional letters of credit under the Amended RCF has been reduced to zero . However, the Amended RCF permits us to incur up to $ 50.0 million of indebtedness in respect of outstanding letters of credit that may be issued on our behalf outside of the Amended RCF. At December 31, 2023 and February 23, 2024 , we had no borrowings outstanding under the Amended RCF and had utilized $ 1.9 million for the issuance of a letter of credit. The outstanding letter of credit will expire on maturity in May 2024, unless replaced. As of February 23, 2024 , approximately $ 298.1 million was available for borrowings under the Amended RCF subject to its terms and conditions. There was no capacity t o issue additional letters of credit under the Amended RCF. At December 31, 2023, we were in compliance with all covenants under the Second Lien Notes and Amended RCF. $100.0 Million Exit Term Loan Our Exit Term Lo an Credit Agreement provided for a $ 100.0 million senior secured term loan credit facility which was used in its entirety to refinance a portion of the prepetition revolving credit facility. The Exit Term Loan Credit Facility was set to mature on April 22, 2027 . The Exit Term Loans bore interest at a rate per annum equal to the applicable margin plus, at the borrower’s option, either (a) the reserve-adjusted LIBOR Rate (as defined in the Exit Term Loan Credit Agreement) subject to a floor of 1.00 % (or LIBOR Rate Term Loans), or (b) a base rate (or Base Rate Term Loans), subject to a floor of 2.00 %, determined as the greatest of (i) the Wells Fargo Prime Rate (as defined in the Exit Term Loan Credit Agreement), (ii) the federal funds effective rate plus ½ of 1.00 %, and (iii) the reserve-adjusted one-month LIBOR Rate plus 1.00 %. The margin applicable to LIBOR Rate Term Loans was 6.00 %. In terest on Base Rate Term Loans was paid quarterly. In September 2023, we used a portion of the proceeds from the Notes Offering to repay all outstanding Exit Term Loans, aggregating $ 100.0 million, and unpaid interest thereon through the repayment date. As a result of the repayment of the Exit Term Loans, we wrote off $ 0.7 million in unamortized deferred arrangement fees as “Loss on extinguishment of long-term debt” in our Consolidated Statements of Operations for the Successor year ended December 31, 2023. 9.00%/11.00%/13.00% Senior Secured First Lien PIK Toggle Notes due 2027 On the Effective Date, we issued the 9.00%/11. 00%/13.00% Senior Secured First Lien PIK Toggle Notes in the aggregate amount of $ 85.3 million with an original maturity date of April 22, 2027 . The First Lien Notes were issued at 101 % of par value. Interest on the First Lien Notes accrued at a rate of 9.00 % per annum, assuming a cash interest payment option, and was payable semi-annually in arrears on April 30 and October 31 of each year. In addition, the Issuers incurred a commitment premium of 3 % per annum on the aggregate principal amount of undrawn delayed draw First Lien Notes pursuant to the terms of the First Lien Notes Indenture. We redeemed the First Lien Notes in full, in the aggregate principal amount of $ 85.3 million, including accrued and unpaid interest through September 21, 2023, at 104 % in accordance with the First Lien Notes Indenture with a portion of the proceeds of the Notes Offering. The $ 3.4 million call premium paid on retirement of the First Lien Notes, in addition to the write-off of $( 0.6 ) million and $ 1.7 million of unamortized premium and deferred arrangement fees, respectively, were reported as “Loss on extinguishment of long-term debt” i n our Consolidated Statements of Operations for the Successor year ended December 31, 2023. Upon retirement of the First Lien Notes, unfunded delayed draw commitments aggregating $ 39.7 million under the First Lien Notes Indenture also terminated. Collateral Agency Agreement On Sept ember 21, 2023, DODI, the Issuers and the subsidiary guarantors that are also grantors of collateral entered into an Amended and Restated Collateral Agency and Intercreditor Agreement with HSB as trustee, collateral agent and administrative agent under the Amended RCF (or the Collateral Agency Agreement). The Collateral Agency Agreement, among other things, sets forth the terms on which the collateral agent will receive, hold, administer, maintain, enforce and distribute the proceeds of all liens upon any property of the Issuers and the Guarantors at any time held by it, for the benefit of the current and future holders of First Lien Obligations and Junior Lien Obligations (each as defined in the Collateral Agency Agreement) as well as establishing the priority of the liens on the collateral as between the First Lien Obligations and Junior Lien Obligations. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. 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 estimated, we record a liability 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 we have a probable loss for certain of these taxes and the related penalties and interest and, accordingly, have recorded a $ 12.7 million an d $ 12.4 million liability at December 31, 2023 and 2022, respectively. 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. 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 December 31, 2023 , our estimated liability for personal injury claims was $ 14.6 million, of which $ 7.4 million and $ 7.2 million were recorded in “Accrued liabilities” and “Other liabilities,” respectively, in our Consolidated Balance Sheets. At December 31, 2022 , our estimated liability for personal injury claims was $ 18.3 million, of which $ 3.7 million and $ 14.6 million were recorded in “Accrued liabilities” and “Other liabilities,” respectively, in our 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 of personal injuries claimed; • significant changes in the volume of personal injury claims; • 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 December 31, 2023, 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) (or Baker Hughes) 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, certif ication and reliability with respect to such equipment. Future commitments under the contractual services agreements are estimated to be approximately $ 26.4 million annually. Total future commitments are projected to be $ 96.2 million in the aggregate over the remaining term of the agreement, including a $ 37.0 million commitment for the purchase of consumables and capital spare parts owned and controlled by the vendor at the end of the service arrangement. In addition, we lease Well Control Equipment for our drillships under ten-year finance leases. See Note 12 “Leases and Lease Commitments.” Letters of Credit and Other. We were contingently liable as of December 31, 2023 in connection with a $ 1.9 million surety bond associated with a building lease that had been issued on our behalf. The letter of credit collateralizing this bond was issued under our revolving credit facility and cannot require collateral except in events of default. |
Leases and Lease Commitments
Leases and Lease Commitments | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases and Lease Commitments | 12. Leases and Lease Commitments Our leasing activities primarily consist of operating leases for our corporate and shorebase offices, office and information technology equipment, employee housing, onshore storage yards and certain rig equipment and tools. We also lease Well Control Equipment under finance leases . Our leases have original terms ranging from one month to ten years , some of which include options to extend the lease for up to five years and/or to terminate the lease within one year . We are participants in four sale and leaseback arrangements with a subsidiary of Baker Hughes pursuant to the 2016 sale of Well Control Equipment on our drillships and corresponding agreements to lease back that equipment under ten-year finance leases for approximately $ 26.0 million per year in the aggregate with renewal options for two successive five-year periods . At inception, these leases were determined to be operating leases. On March 31, 2021, we signed an amendment to the operating lease agreement for the Well Control Equipment. The general terms of the lease were unchanged, including the stipulated cost per day and available renewal options; however, a ceiling was added to a previously unpriced purchase option at the end of the original 10 -year lease term. This amendment was considered a lease modification, whereby we were required to reassess lease classification and remeasure the corresponding right-of-use (or ROU) asset and lease liability. Due to the purchase option ceiling provision included in the amendment, we now believe that we are reasonably certain to exercise the purchase option at the end of the original lease term. Therefore, we have changed the lease classification from an operating lease to a finance lease and remeasured the ROU asset and lease liability to include the estimated purchase option price of the Well Control Equipment. In applying ASU 2016-02, we utilize an exemption for short-term leases whereby we do not record leases with terms of one year or less on the balance sheet. We have also made an accounting policy election not to separate lease components from non-lease components for each of our classes of underlying assets, except for subsea equipment, which includes the Well Control Equipment discussed above. At inception, the consideration for the overall Well Control Equipment arrangement was allocated between the lease and service components based on an estimation of stand-alone selling price of each component, which maximized observable inputs. The costs associated with the service portion of the agreement are accounted for separately from the cost attributable to the equipment leases based on that allocation and thus, are not included in our ROU asset or lease liability balances. The non-lease components for each of our other classes of assets generally relate to maintenance, monitoring and security services and are not separated from their respective lease components. See Note 11 “Commitments and Contingencies.” The lease term used for calculating our ROU assets and lease liabilities is determined by considering the noncancelable lease term, as well as any extension options that we are reasonably certain to exercise. The determination to include option periods is generally made by considering the activity in the region or for the rig corresponding to the respective lease, among other contract-based and market-based factors. We have used our incremental borrowing rate to discount future lease payments as the rate implicit in our leases is not readily determinable. The incremental borrowing rate was determined primarily based on secured borrowing rates negotiated in relation to our new debt and existing revolving credit facility. Amounts recognized in our Consolidated Balance Sheets for both our operating and finance leases are as follows (in thousands): December 31, Operating Leases: 2023 2022 Other assets $ 37,876 $ 30,332 Accrued liabilities ( 8,436 ) ( 13,480 ) Other liabilities ( 29,438 ) ( 16,542 ) Finance Leases: Drilling and other property and equipment, net of accumulated depreciation 128,303 145,510 Current finance lease liabilities ( 15,960 ) ( 16,965 ) Noncurrent finance lease liabilities ( 113,201 ) ( 131,393 ) Components of lease expense are as follows (in thousands): Successor Predecessor Year Ended Period from Period from April 24, 2021 through January 1, 2021 through 2023 2022 December 21, 2021 April 23, 2021 Operating lease cost $ 15,712 $ 19,479 $ 11,754 $ 11,799 Finance lease cost: Amortization of ROU assets 17,207 17,207 11,854 — Interest on lease liabilities 9,315 10,415 7,796 — Short-term lease cost 101 242 199 101 Variable lease cost (1) 107,848 12,804 1,237 598 Total lease cost $ 150,183 $ 60,147 $ 32,840 $ 12,498 (1) Includes charter expenses incurred post-commencement of drilling operations for the managed rigs. Supplemental information related to leases is as follows (in thousands, except weighted-average data): Successor Predecessor Year Ended Period from Period from April 24, 2021 through January 1, 2021 through Operating Leases: 2023 2022 December 31. 2021 April 23, 2021 Operating cash flows used $ 15,014 $ 19,031 $ 12,005 $ 10,817 ROU assets obtained in exchange for lease liabilities 21,027 8,662 19,064 1,076 Weighted-average remaining lease term (1) 4.6 years 4.0 years 4.4 years 5.9 years Weighted-average discount rate (1) 9 % 7 % 7 % 6.89 % Finance Leases: Operating cash flows used $ 9,315 $ 10,415 $ 7,796 $ — Financing cash flows used 16,965 15,865 9,845 — ROU assets obtained in exchange for lease liabilities — — 174,571 — Weighted-average remaining lease term (1) 2.5 years 3.5 years 4.5 years n/a Weighted-average discount rate (1) 7 % 7 % 7 % n/a (1) Amounts represent the weighted average remaining lease term or discount rate as of the end of the respective period presented. Maturities of lease liabilities as of December 31, 2023 are as follows (in thousands): Operating Leases Finance Leases Total 2024 $ 11,181 $ 26,352 $ 37,533 2025 9,658 26,280 35,938 2026 9,386 94,198 103,584 2027 8,566 — 8,566 2028 4,771 — 4,771 Thereafter 2,788 — 2,788 Total lease payments $ 46,350 $ 146,830 $ 193,180 Less: Interest ( 8,476 ) ( 17,669 ) ( 26,145 ) Total lease liability $ 37,874 $ 129,161 $ 167,035 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes In April 2021, we reorganized under Chapter 11 of the U.S. Bankruptcy Code in a transaction treated as a tax free reorganization under section 368(a)(1)(G) of the Internal Revenue Code of 1986, as amended (or the IRC). We realized approximately $ 1.3 billion of cancellation of indebtedness (or COD) income for U.S. tax purposes in 2021. Under exceptions applying to COD income resulting from a bankruptcy reorganization, we were not required to recognize this COD income currently as taxable income. Instead, our tax attribute carryforwards, including net operating losses, other noncurrent assets and the stock of our foreign corporate subsidiaries, were reduced under the operative tax statute and applicable regulations, affecting the balance of deferred taxes where appropriate. The total reduction of tax attributes under these rules amounted to approximately $ 1.3 billion, which impacted net operating losses and, without giving rise to deferred tax consequences, reduced the tax basis of foreign subsidiaries’ stock. The tax attribute reduction occurs on the first day of a company's tax year following the tax year in which COD income was realized, or, in our case, January 1, 2022. In the event of a change in ownership, IRC sections 382 and 383 provide an annual limitation with respect to a corporation’s ability to utilize its tax attributes, as well as certain built-in-losses, against future U.S. taxable income in the event of a change in ownership. Our emergence from the Chapter 11 Cases resulted in a change in ownership for purposes of IRC section 382. The limitation under the IRC is based on the value of the company as of the emergence date. To achieve business and administrative efficiencies, we undertook an internal restructuring in conjunction with emergence from bankruptcy, resulting in realignment of substantially all our assets and operations under a wholly owned foreign subsidiary, DFAC. In December 2023, we organized a new subsidiary, Diamond Offshore (Switzerland) GmbH (or DOSG), under the laws of Switzerland and DOSG acquired all the issued and outstanding DFAC shares. Effective December 31, 2023, DOSG now owns directly or indirectly all the shares of various foreign subsidiaries that own and operate our fleet of rigs. Our management has determined that we will permanently reinvest foreign earnings of foreign subsidiaries. The potential unrecognized deferred tax liability related to these undistributed earnings was not practicable to estimate at December 31, 2023. Our income tax expense is a function of the mix between our domestic and international pre-tax earnings or losses, the mix of international tax jurisdictions in which we operate and recognition of valuation allowances for deferred tax assets for which the tax benefits are not likely to be realized. The components of income tax (benefit) expense are as follows (in thousands): Successor Predecessor Year Ended Period from Period from April 24, 2021 through January 1, 2021 through 2023 2022 December 31, 2021 April 23, 2021 Federal – current $ 8,375 $ 1,267 $ 3,645 $ 171 State – current 10 10 — — Foreign – current 27,215 ( 4,151 ) 1,491 ( 3,681 ) Total current 35,600 ( 2,874 ) 5,136 ( 3,510 ) Federal – deferred 6,580 4,538 ( 6,742 ) ( 30,955 ) Foreign – deferred ( 11,197 ) ( 4,059 ) 3,260 ( 4,939 ) Total deferred ( 4,617 ) 479 ( 3,482 ) ( 35,894 ) Total $ 30,983 $ ( 2,395 ) $ 1,654 $ ( 39,404 ) The difference between actual income tax expense and the tax provision computed by applying the statutory federal income tax rate to income before taxes is attributable to the following (in thousands): Successor Predecessor Year Ended Period from Period from April 24, 2021 through January 1, 2021 through 2023 2022 December 31, 2021 April 23, 2021 (Loss) income before income tax expense: U.S. $ 443 $ ( 7,054 ) $ ( 1,048 ) $ 686,202 Foreign ( 14,166 ) ( 98,552 ) ( 174,642 ) ( 2,687,595 ) $ ( 13,723 ) $ ( 105,606 ) $ ( 175,690 ) $ ( 2,001,393 ) Expected income tax benefit at federal statutory rate $ ( 2,882 ) $ ( 22,177 ) $ ( 36,895 ) $ ( 420,292 ) Withholding taxes $ 486 — — — Effect of tax rate changes — — 9,871 — Reorganization items — — 266 ( 225,563 ) Post-petition interest expense — — — ( 6,771 ) Disallowed officers' compensation and restricted stock unit awards ( 459 ) 2,205 — — Interest and penalties reported as income tax expense 831 3,318 — — Effect of foreign operations 32,384 12,639 79,600 163,236 Valuation allowance ( 20,527 ) ( 23,135 ) ( 45,919 ) 515,421 Uncertain tax positions, settlements and adjustments relating to prior years 21,039 25,692 ( 7,220 ) ( 67,626 ) Other 111 ( 937 ) 1,951 2,191 Income tax (benefit) expense $ 30,983 $ ( 2,395 ) $ 1,654 $ ( 39,404 ) Deferred Income Taxes. Significant components of our deferred income tax assets and liabilities are as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards, or NOLs $ 252,732 $ 412,152 Foreign tax credits 28,769 27,223 Disallowed interest deduction 66,632 69,604 Worker’s compensation and other current accruals 5,808 6,273 Deferred deductions 7,078 7,661 Deferred revenue 1,467 33 Operating lease liability 19,744 22,011 Property, plant and equipment 332,981 129,938 Other 5,617 7,234 Total deferred tax assets 720,828 682,129 Valuation allowance ( 629,665 ) ( 650,193 ) Net deferred tax assets 91,163 31,936 Deferred tax liabilities: Right-of-use assets ( 18,964 ) ( 21,374 ) 'Property, plant and equipment ( 56,409 ) Other ( 1,197 ) ( 652 ) Total deferred tax liabilities ( 76,570 ) ( 22,026 ) Net deferred tax asset $ 14,593 $ 9,910 Net Operating Loss Carryforwards . As of December 31, 2023, we recorded a deferred tax asset of $ 252.7 million for the benefit of NOL carryforwards, comprised of $ 57.7 million related to our U.S. losses and $ 195.0 million related to our international operations. Approximately $ 139.1 million of this deferred tax asset relates to NOL carryforwards that have an indefinite life. The remaining $ 273.0 million relates to NOL carryforwards in several foreign jurisdictions, as well as in the U.S. Unless utilized, these NOL carryforwards will expire between 2024 and 2037 . As a result of our emergence from bankruptcy, we have significant limitations on our ability to utilize certain U.S. deferred tax assets. Foreign Tax Credits. As of December 31, 2023, we recorded a deferred tax asset of $ 28.7 million for the benefit of foreign tax credits in the U.S. Of this balance, $ 2.6 million relates to a foreign tax credit carryback, which is expected to generate a cash tax benefit. The remaining credits will expire, unless utilized, between 2023 and 2028 . Valuation Allow ances. We record a valuation allowance on a portion of our deferred tax assets not expected to be ultimately realized. In determining the need for a valuation allowance, we consider current and historical financial results, expectations for future taxable income and the availability of tax planning strategies that can be implemented, if necessary, to realize deferred tax assets. As of Dece mber 31, 2022, valuation allowances aggregating $ 629.7 million have been recorded for our net operating losses, forei gn tax credits and other deferred tax assets for which the tax benefits are not likely to be realized. We intend to maintain a valuation allowance on our net federal and foreign deferred tax assets until there is sufficient evidence to support the reversal of these allowances. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. However, the exact timing and amount of the valuation allowance release are subject to change based on the level of profitability achieved. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future U.S. taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as the Company's projections for growth and/or tax planning strategies. Unrecognized Tax Benefits. Our income tax returns are subject to review and examination in the various jurisd ictions in which we operate, and we are currently contesting various tax assessments. We accrue for income tax contingencies, or uncertain tax positions, that we believe are not likely to be realized. A roll forward of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): Successor Predecessor Year Ended For the Period For the Period April 24, 2021 January 1, 2021 through through 2023 2022 December 31, 2021 April 23, 2021 Balance, beginning of period $ ( 21,540 ) $ ( 21,148 ) $ ( 26,678 ) $ ( 214,626 ) Additions for current year tax positions ( 7,391 ) ( 5,993 ) ( 3,553 ) — Additions for prior year tax positions ( 705 ) ( 504 ) ( 1,424 ) ( 1,282 ) Reductions for prior year tax positions 1,141 4,345 1,730 187,389 Reductions related to statute of limitation expirations 3,878 1,760 8,777 1,841 Reductions related to settlements with taxing authorities 52 — — — Balance, end of period $ ( 24,565 ) $ ( 21,540 ) $ ( 21,148 ) $ ( 26,678 ) The $ 7.4 million addition for current year uncertain tax positions recorded in the year ended December 31, 2023 was attri butable principally to transfer pricing for certain related party transactions. The $ 1.1 million reduction of uncertain tax positions recorded in the year ended December 31, 2023, principally reflected the strengthening of the U.S. dollar relative to foreign currencies. The $ 3.9 million reduction of uncertain tax positions recorded in the year ended December 31, 2023 was due to the expiry of applicable statutes of limitation for tax returns filed between 2007 and 2019 in several jurisdictions. The $ 6.0 million addition for current year uncertain tax positions recorded in the year ended December 31, 2022 was attributable principally to transfer pricing for certain related party transactions. The $ 4.3 million reduction of uncertain tax positions recorded in the year ended December 31, 2022, principally reflected the strengthening of the U.S. dollar relative to foreign currencies. At December 31, 2023, $ 2.2 million and $ 46.4 million of the net liability for uncertain tax positions were reflected in “Deferred tax liability” and “Other liabilities,” respectively, in our Consolidated Balance Sheets. At December 31, 2022, $ 0.2 million, $ 1.5 million and $ 34.7 million of the net liability for uncertain tax positions were reflected in “Other assets,” “Deferred tax liability” and “Other liabilities,” respectively, in our Consolidated Balance Sheets. At December 31, 2021, $ 0.3 million, $ 1.7 million and $ 47.6 million of the net liability for uncertain tax positions were reflected in “Other assets,” “Deferred tax liability” and “Other liabilities,” respectively, in our Consolidated Balance Sheets. Of the net unrecognized tax benefits at December 31, 2023, 2022, and 2021,$ 48.6 million, $ 36.0 million and $ 48.9 million, respectively, would affect the effective tax rates if recognized. At Dec ember 31, 2023, the amount of accrued interest and penalties related to uncertain tax positions was $ 2.1 m illion and $ 25.0 million, respectively. At December 31, 2022, the amount of accrued interest and penalties related to uncertain tax positions was $ 3.1 million and $ 12.6 million, respectively. Interest exp ense (benefit) recognized during the Successor periods for the years ended December 31, 2023 and 2022 and the period from April 24, 2021 through December 31, 2021 and the Predecessor period from January 1, 2021 through April 23, 2021 related to uncertain tax positions was $ 0.8 million, $ 0.9 million, $ 1.8 million and $ 0.1 million, respectively. Penalties recognized during the Successor periods for the years ended December 31, 2023 and 2022 and the period from April 24, 2021 through December 31, 2021 and the Predecessor period from January 1, 2021 through April 23, 2021 related to uncertain tax positions were $ 16.6 million, $ 1.0 million, $ 0.04 million and $( 0.4 ) million, respectively. Of the total 2023 penalties, $ 16.4 million relates to a 2023 Egyptian court ruling against us for an additional tax assessment on income for taxable years 2006 through 2008. We expect the statute of limitations for the 2014 tax year to expire in 2024 for our subsidiary operating in Romania. We anticipate that the related unrecognized tax benefit will decrease by $ 0.7 million at that time. Tax Returns and Examinations . We file income tax returns in the U.S. federal jurisdiction, various state jurisdictions and various foreign jurisdictions. We remain subject to examination by these jurisdictions or are contesting assessments raised upon examinations in respect to the year 2000 and the years 2006 to 2023. We are currently under examination or contesting assessments in Brazil, Egypt, Equatorial Guinea, Malaysia, Romania, and Trinidad and Tobago. In June 2023, we recorded an uncertain tax liability of $ 17.7 million related to an assessment by Egypt’s tax authorities for tax years 2006 through 2008. In January 2024, we received notice that Trinidad and Tobago’s tax authority had rejected our administrative appeal of an assessment for taxable year 2015. We intend to bring an action in the Tax Appeal Board seeking annulment of the assessment and have not recorded any reserve related to this disputed assessment. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 14. Employee Benefit Plans Defined Contribution Plans We maintain defined contribution retirement plans for our U.S., U.K., and third-country national (or TCN) employees. The plan for our U.S. employees (or the 401k Plan) is designed to qualify under Section 401(k) of the IRC. Under the 401k Plan, each participant may elect to defer taxation on a portion of his or her eligible earnings, as defined by the 401k Plan, by directing his or her employer to withhold a percentage of such earnings. A participating employee may also elect to make after-tax contributions to the 401k Plan. Under the 401k Plan, the employer may elect to match a percentage of each employee's qualifying annual compensation contributed to the 401k Plan on a pre-tax or Roth elective deferral basis. Participants are fully vested in any employer match immediately upon enrollment in the 401k Plan. During 2023, we matched 100 % of the first 4 % of each employee's qualifying annual compensation contributed to the 401k Plan and, in 2022, matched 50 % of the first 6 % of each employee's qualifying annual compensation contributed to the plan. Our provision for contributions was $ 5.4 million and $ 3.2 million for the Successor years ended December 31, 2023 and 2022, respectively. There was no provision for contributions to the 401k Plan for the Successor period from April 24, 2021 through December 31, 2021 and the Predecessor period from January 1, 2021 through April 23, 2021, as contributions to the plan were suspended effective November 2020 and did not resume until 2022. The defined contribution retirement plan for our U.K. employees provides that we make annual contributions in an amount equal to the employee's contributions to the plan, generally up to a maximum percentage of the employee's defined compensation per year. Our contributions during 2023, 2022 and 2021 for employees working in the U.K. sector of the North Sea was 5.25 %, 4 % and 4 %, respectively, of the employee's defined compensation. Our provision for contributions was $ 1.8 million, $ 0.9 million, $ 0.6 million and $ 0.3 million for the Successor periods for the years ended December 31, 2023 and 2022 and from April 24, 2021 through December 31, 2021 and the Predecessor period from January 1, 2021 through April 23, 2021, respectively. The defined contribution retirement plan for our TCN employees (or the International Savings Plan) is similar to the 401k Plan. During 2023, we matched 100 % of the first 4 % of each employee's qualifying annual compensation contributed to the International Savings Plan, and in 2022 matched 50 % of the first 6 % of each employee's qualifying annual compensation contributed to the plan. Our provision for contributions was $ 0.1 million and $ 0.1 million for the Successor years ended December 31, 2023 and 2022, respectively. There was no provision for contributions to the International Savings Plan for the Successor period from April 24, 2021 through December 31, 2021 and the Predecessor period from January 1, 2021 through April 23, 2021, as contributions to the plan were suspended effective November 2020 and did not resume until 2022. Deferred Compensation and Supplemental Executive Retirement Plan Our Amended and Restated Diamond Offshore Management Company Supplemental Executive Retirement Plan, or Supplemental Plan, provides benefits to a select group of our management or other highly compensated employees to compensate such employees for any portion of the applicable percentage of the base salary contribution and/or matching contribution under the 401k Plan that could not be contributed to that plan because of limitations within the Code. We ceased matching contributions to the Supplemental Plan effective January 2020. |
Segments and Geographic Area An
Segments and Geographic Area Analysis | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segments and Geographic Area Analysis | 15. 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 December 31, 2023 , 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 or areas where the services were performed. The following tables provide information about disaggregated revenue by equipment-type and country (in thousands): Successor Year Ended December 31, 2023 Total Revenues Total United States $ 513,226 $ 36,645 $ 549,871 Senegal 169,223 11,586 180,809 United Kingdom 168,894 14,708 183,602 Australia 67,846 9,257 77,103 Brazil 64,794 — 64,794 Total $ 983,983 $ 72,196 $ 1,056,179 Successor Year Ended December 31, 2022 Total Revenues Total United States $ 322,021 $ 75,069 $ 397,090 Senegal 154,574 11,929 166,503 United Kingdom 66,116 8,478 74,594 Australia 92,939 14,082 107,021 Brazil 80,185 — 80,185 Myanmar 8,909 6,976 15,885 Total $ 724,744 $ 116,534 $ 841,278 Successor Period from April 24, 2021 through December 31, 2021 Total Revenues Total United States $ 194,912 $ 55,471 $ 250,383 Senegal 48,758 10,110 58,868 United Kingdom 55,245 3,859 59,104 Australia 95,601 15,132 110,733 Brazil 42,215 — 42,215 Myanmar 28,597 6,166 34,763 Total $ 465,328 $ 90,738 $ 556,066 Predecessor Period from January 1, 2021 through April 23, 2021 Total Revenues Total United States $ 93,215 $ 7,048 $ 100,263 United Kingdom 27,967 2,300 30,267 Australia 17,031 4,697 21,728 Brazil 3,421 — 3,421 Myanmar 11,730 1,970 13,700 Total $ 153,364 $ 16,015 $ 169,379 The following table presents the locations of our long-lived tangible assets by country as of December 31, 2023, 2022 and 2021. A substantial portion of our assets is comprised of rigs that are mobile and, therefore, asset locations at the end of the period are not necessarily indicative of the geographic distribution of the earnings generated by such assets during the periods and may vary from period to period due to the relocation of rigs. In circumstances where our drilling rigs were in transit at the end of a calendar year, they have been presented in the tables below within the country in which they were expected to operate (in thousands). December 31, Drilling and other property and equipment, net: 2023 2022 2021 United States $ 543,930 $ 362,813 $ 559,288 International: United Kingdom 251,049 256,837 98,338 Senegal 169,627 352,655 188,694 Australia 98,793 91,089 106,173 Brazil 86,057 69,596 76,383 Spain (1) — — 142,930 Other countries (2) 6,912 8,918 4,089 612,438 779,095 616,607 Total $ 1,156,368 $ 1,141,908 $ 1,175,895 (1) The Ocean GreatWhite was relocated to the U.K. in 2022 for reactivation and contract preparation activities. (2) Countries with long-lived assets that individually comprise less than 5 % of total drilling and other property and equipment, net of accumulated depreciation. Major Customers Our customer base includes major and independent oil and gas companies and government-owned oil companies. Revenues from our major customers for the Successor periods for the years ended December 31, 2023 and 2022 and the period from April 24, 2021 through December 31, 2021 and the Predecessor period from January 1, 2021 through April 23, 2021 that contributed more than 10% of our total revenues are as follows: Successor Predecessor Year Ended Period from Period from December 31, April 24, 2021 through January 1, 2021 through 2023 (1) 2022 (1) December 31, 2021 (1) April 23, 2021 BP 48.4 % 33.1 % 25.4 % 39.8 % Woodside 21.5 % 29.7 % 22.4 % 0.5 % Oxy 2.9 % 3.9 % 11.5 % 21.4 % |
General Information (Policies)
General Information (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our Consolidated Financial Statements include the accounts of Diamond Offshore Drilling, Inc. and our wholly-owned subsidiaries after elimination of intercompany transactions and balances. |
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 accounting principles generally accepted in the United States (or U.S.), or GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues, and expenses during the reporting period. Actual results could differ from those estimated. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider short-term, highly liquid investments that have an original maturity of three months or less and deposits in money market mutual funds that are readily convertible into cash to be cash equivalents. The effect of exchange rate changes on cash balances held in foreign currencies was not material for the Successor periods for the years ended December 31, 2023 and December 31, 2022. |
Assets Held for Sale | Asset Held for Sale We reported the $ 1.0 million carrying value of the Ocean Monarch as an “Asset held for sale” in our Successor Consolidated Balance Sheets at December 31, 2023. We are marketing the rig for recycling and expect to complete a sale in early 2024. |
Drilling and Other Property and Equipment | Drilling and Other Property and Equipment We carry our drilling and other property and equipment at cost, less accumulated depreciation. Maintenance and routine repairs are charged to income while replacements and betterments that upgrade or increase the functionality of our existing equipment and that significantly extend the useful life of an existing asset are capitalized. Significant judgments, assumptions and estimates may be required in determining whether or not such replacements and betterments meet the criteria for capitalization and in determining useful lives and salvage values of such assets. Changes in these judgments, assumptions and estimates could produce results that differ from those reported. During the Successor periods for the years ended December 31, 2023 and December 31, 2022, we capitalized $ 124.3 million and $ 69.1 million, respectively, in replacements and betterments of our drilling fleet. Costs incurred for major rig upgrades and/or the construction of rigs are accumulated in construction work-in-progress, with no depreciation recorded on the additions, until the month the upgrade or newbuild is completed and the rig is placed in service. Upon retirement or sale of a rig, the cost and related accumulated depreciation are removed from the respective accounts and any gains or losses are reported in our Consolidated Statements of Operations as “Gain on disposition of assets.” Depreciation is recognized up to applicable salvage values by applying the straight-line method over the remaining estimated useful lives from the year the asset is placed in service. Drilling rigs and equipment are depreciated over their estimated useful lives ranging from 3 to 30 years . |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We evaluate our property and equipment for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be recoverable (such as, but not limited to, a change in the economic useful life of a rig, cold stacking a rig, the expectation of cold stacking a rig in the near term, a decision to retire or scrap a rig, or excess spending over budget on a newbuild, construction project, reactivation or major rig upgrade). We utilize an undiscounted probability-weighted cash flow analysis in testing an asset for potential impairment. Our assumptions and estimates underlying this analysis include the following: • dayrate by rig; • utilization rate by rig if active, warm-stacked or cold-stacked (expressed as the actual percentage of time per year that the rig would be used at certain dayrates); • the per day operating cost for each rig if active, warm-stacked or cold-stacked; • the estimated annual cost for rig replacements and/or enhancement programs; • the estimated maintenance and inspection or other reactivation costs associated with a rig returning to work; • the remaining economic useful life of a rig; • salvage value for each rig; and • estimated proceeds that may be received on disposition of each rig. Based on these assumptions, we develop a matrix for each rig under evaluation using multiple utilization/dayrate scenarios, to each of which we have assigned a probability of occurrence. We arrive at a projected probability-weighted cash flow for each rig based on the respective matrix and compare such amount to the carrying value of the asset to assess recoverability. The underlying assumptions and assigned probabilities of occurrence for utilization and dayrate scenarios are developed using a methodology that examines historical data for each rig, which considers the rig’s age, rated water depth and other attributes and then assesses its future marketability in light of the current and projected market environment at the time of assessment. Other assumptions, such as operating, maintenance, inspection and reactivation costs, are estimated using historical data adjusted for known developments, cost projections for re-entry of rigs into the market and future events that are anticipated by management at the time of the assessment. Management’s assumptions are necessarily subjective and are an inherent part of our asset impairment evaluation, and the use of different assumptions could produce results that differ from those reported. Our methodology generally involves the use of significant unobservable inputs, representative of a Level 3 fair value measurement, which may include assumptions related to future dayrate revenue, costs and rig utilization, quotes from rig brokers, the long-term future performance of our rigs and future market conditions. Management’s assumptions involve uncertainties about future demand for our services, dayrates, expenses and other future events, and management’s expectations may not be indicative of future outcomes. Significant unanticipated changes to these assumptions could materially alter our analysis in testing an asset for potential impairment. For example, changes in market conditions that exist at the measurement date or that are projected by management could affect our key assumptions. Other events or circumstances that could affect our assumptions may include, but are not limited to, a further sustained decline in oil and gas prices, cancellations of our drilling contracts or contracts of our competitors, contract modifications, costs to comply with new governmental regulations, capital expenditures required due to advances in offshore drilling technology, growth in the global oversupply of oil and geopolitical events, such as lifting sanctions on oil-producing nations. Should actual market conditions in the future vary significantly from market conditions used in our projections, our assessment of impairment would likely be different. See Note 4 “Asset Impairments.” |
Survey Costs | Survey Costs C oncurrent with emergence from bankruptcy, the Successor entity adopted a new policy providing for the deferral and amortization of costs associated with planned periodic inspections of its drilling rigs (or vessels) to ensure compliance with applicable regulations and maintain certifications for vessels with classification societies that typically occur on five-year or two-and-one-half year intervals. These costs include mobilization of the vessel into the shipyard, drydocking, support services while in shipyard and the associated survey or inspection costs necessary to maintain class certifications. These recertification costs are typically incurred while the vessel is in drydock and may be performed concurrent with other vessel maintenance and improvement activities. Costs related to the recertification of vessels are deferred and amortized over the survey interval on a straight-line basis. Maintenance costs incurred at the time of the recertification drydocking that are not related to the recertification of the vessel are expensed as incurred. Costs for vessel improvements that either extend the vessel’s useful life or increase the vessel's functionality are capitalized and depreciated. The Predecessor’s previous policy was to expense vessel recertification costs in the period incurred. For the Successor periods for the years ended December 31, 2023 and December 31, 2022, we deferred $ 3.5 million and $ 3.3 million, respectively, in survey costs. At December 31, 2023 and December 31, 2022, deferred survey costs of $ 1.4 million and $ 0.8 million, respectively, were reported in “Prepaid expenses and other current assets” and $ 4.3 million and $ 2.5 million, respectively, were reported in “Other assets” in our Successor Consolidated Balance Sheets. We amortized $ 1.1 million and $ 0.7 million in deferred survey costs as “Contract drilling, excluding depreciation” in the Successor’s Consolidated Statements of Operations for the years ended December 31, 2023 and 2022, respectively. |
Lease Accounting and Revenue Recognition | Lease Accounting and Revenue Recognition Financial Accounting Standards Board (or FASB) Accounting Standards Update (or ASU), No. 2016-02, Leases (Topic 842) (or ASU 2016-02), requires lessees to recognize a right of use asset and a lease liability on the balance sheet for most leases. Upon adoption of ASU 2016-02, we concluded that our drilling contracts contain a lease component for the use of our drilling rigs based on the updated definition of a lease. However, ASU 2016-02 provides for a practical expedient for lessors whereby, under certain circumstances, the lessor may combine the lease and non-lease components and account for the combined component in accordance with the accounting treatment for the predominant component. We have determined that our current drilling contracts qualify for this practical expedient and have combined the lease and service components of our standard drilling contracts. We continue to account for the combined component under FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606 ) and its related amendments (collectively referred to as Topic 606). See Note 3 “Revenue from Contracts with Customers.” |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We believe that the carrying amount of our current financial instruments approximates fair value because of the short maturity of these instruments. See Note 8 “Financial Instruments and Fair Value Disclosures.” |
Debt Issuance Costs | Debt Issuance Costs Deferred costs associated with our credit facility are presented in “Other assets” in the Successor's Consolidated Balance Sheets at December 31, 2023 and 2022 and amortized as interest expense over the respective terms of the credit facility. Deferred costs associated with our other long-term debt are presented in the Successor's Consolidated Balance Sheets at December 31, 2023 and 2022 as a reduction in the related long-term debt and are amortized over the respective terms of the related debt as interest expense. See Note 2 “Chapter 11 Proceedings” and Note 10 “Long-Term Debt” for a discussion of deferred arrangement fees associated with our Successor and Predecessor credit facilities and long-term debt. |
Income Taxes | Income Taxes We account for income taxes in accordance with accounting standards that require the recognition of the amount of taxes payable or refundable for the current year and an asset and liability approach in recognizing the amount of deferred tax liabilities and assets for the future tax consequences of events that have been currently recognized in our financial statements or tax returns. In each of our tax jurisdictions we recognize a current tax liability or asset for the estimated taxes payable or refundable on tax returns for the current year and a deferred tax asset or liability for the estimated future tax effects attributable to temporary differences and carryforwards. Deferred tax assets are reduced by a valuation allowance, if necessary, which is determined by the amount of any tax benefits that, based on available evidence, are not expected to be realized under a “more likely than not” approach. Deferred tax assets and liabilities are classified as noncurrent in a classified statement of financial position. We make judgments regarding future events and related estimates especially as they pertain to the forecasting of our effective tax rate, the potential realization of deferred tax assets such as utilization of foreign tax credits, and exposure to the disallowance of items deducted on tax returns upon audit. We record both interest and penalties related to accrued uncertain tax positions in “Income tax (expense) benefit” in our Consolidated Statements of Operations. Liabilities for uncertain tax positions, including any interest and penalties, are denominated in the currency of the related tax jurisdiction and are revalued for changes in currency exchange rates. The revaluation of such liabilities for uncertain tax positions is reported in “Income tax (expense) benefit” in our Consolidated Statements of Operations. See Note 13 “Income Taxes.” |
Comprehensive Loss | Comprehensive Loss Comprehensive (loss) income is the change in equity of a business enterprise during a period from transactions and other events and circumstances except those transactions resulting from investments by owners and distributions to owners. Comprehensive loss for the Successor periods for the years ended December 31, 2023 and 2022 and from April 24, 2021 through December 31, 2021 and the Predecessor period from January 1, 2021 through April 23, 2021 includes net losses and unrealized holding gains on marketable securities. |
Foreign Currency | Foreign Currency Our functional currency is the U.S. dollar. Transactions incurred in currencies other than the U.S. dollar are subject to gains or losses due to fluctuations in those currencies. We report foreign currency transaction gains and losses as “Foreign currency transaction loss” in our Consolidated Statements of Operations. The revaluation of assets and liabilities related to foreign income taxes, including deferred tax assets and liabilities and uncertain tax positions, including any interest and/or penalties, is reported in “Income tax (expense) benefit” in our Consolidated Statements of Operations. |
Accounting Principles Not Yet Adopted | Accounting Principles Not Yet Adopted In December 2023, the FASB issued ASU No. 2023-09, Income Tax (Topic 740): Improvements to Income Tax Disclosures (or ASU 2023-09). ASU 2023-09 requires business entities on an annual basis to (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet certain quantitative thresholds. The new guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statement disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (or ASU 2023-07). ASU 2023-07 modifies the disclosure and presentation requirements of reportable segments and requires the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit and loss. In addition, the new guidance enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and other disclosure requirements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statement disclosures. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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): December 31, 2023 2022 Trade receivables $ 253,367 $ 155,956 Current contract assets (1) 2,575 141 Noncurrent contract assets (1) — — Current contract liabilities (deferred revenue) (1) ( 12,634 ) ( 11,513 ) Noncurrent contract liabilities (deferred revenue) (1) ( 3,947 ) ( 487 ) (1) Contract assets and contract liabilities may reflect balances that 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 asset and liability balances are included in “Other assets” and “Other liabilities,” respectively, in our Consolidated Balance Sheets as of December 31, 2023 and 2022 . |
Summary of Significant Changes in Net Contract Assets and Contract Liabilities Balances | Significant changes in net contract assets and the contract liabilities balances during the period are as follows (in thousands): Contract Contract Assets Liabilities Balance as of January 1, 2022 $ 1,835 $ ( 48,293 ) Decrease due to amortization of revenue included in the beginning contract liability balance — 26,909 Increase due to cash received, excluding amounts recognized as revenue during the period — ( 2,444 ) Increase due to revenue recognized during the period but contingent on future performance 6,618 — Decrease due to transfer to receivables during the period ( 8,312 ) — Adjustments (1) — 11,828 Balance as of December 31, 2022 $ 141 $ ( 12,000 ) Decrease due to amortization of revenue included in the beginning contract liability balance — 11,512 Increase due to cash received, excluding amounts recognized as revenue during the period — ( 16,093 ) Increase due to revenue recognized during the period but contingent on future performance 12,177 — Decrease due to transfer to receivables during the period ( 9,743 ) — Balance as of December 31, 2023 $ 2,575 $ ( 16,581 ) (1) Upon commencement of drilling operations, the MMSA for the managed rigs was suspended and replaced by a charter agreement for the duration of the contract. As a result, we reclassified $ 11.1 million previously recorded as a contract liability to “Contract advances,” which was reported as a component of “Accrued liabilities” in our Consolidated Balance Sheets at December 31, 2022. |
Summary of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations | The following table reflects revenue expected to be recognized in the future related to unsatisfied performance obligations as of December 31, 2023 (in thousands): For the Year Ending December 31, 2024 2025 2026 2027 Total Mobilization and contract $ 6,256 $ 1,350 $ 1,350 $ 1,235 $ 10,191 Capital modification revenue 4,381 — — — 4,381 Blended rate/other revenue 2,009 — — — 2,009 Demobilization and other deferred revenue 472 198 198 181 1,049 Total $ 13,118 $ 1,548 $ 1,548 $ 1,416 $ 17,630 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts Receivable, Net of Allowance for Doubtful Accounts | Accounts receivable, net of allowance for bad debts, consists of the following (in thousands): December 31, 2023 2022 Trade receivables $ 253,367 $ 155,956 Value added tax receivables 5,256 6,075 Related party receivables 155 73 Federal income tax receivables — 9,450 Other 1,346 6,121 260,124 177,675 Allowance for credit losses ( 5,801 ) ( 5,622 ) Total $ 254,323 $ 172,053 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2023 2022 Deferred contract costs 20,552 14,373 Collateral deposit 11,857 — Prepaid taxes 10,868 16,922 Rig spare parts and supplies 4,694 5,091 Prepaid rig costs 3,668 4,001 Prepaid insurance 3,437 3,022 Current contract assets 2,575 141 Deferred survey costs 1,418 838 Software maintenance agreements and subscriptions 1,408 1,212 Other 2,935 3,095 Total $ 63,412 $ 48,695 |
Accrued Liabilities | Accrued liabilities consist of the following (in thousands): December 31, 2023 2022 Contract advances $ 63,618 $ 52,743 Rig operating costs 42,893 39,288 Payroll and benefits 35,215 29,408 Interest payable 13,013 1,897 Deferred revenue 12,634 11,513 Accrued capital project/upgrade costs 10,766 8,419 Current operating lease liability 8,436 13,480 Personal injury and other claims 7,391 3,738 Shorebase and administrative costs 5,699 4,365 Deposit for equipment sale 1,977 1,670 Other 1,694 264 Total $ 203,336 $ 166,785 |
Noncash Investing and Financing Activities | Noncash investing activities excluded from the Consolidated Statements of Cash Flows and other supplemental cash flow information is as follows (in thousands): Successor Predecessor Year Ended Period from April 24 Period from January 1 December 31, through December 31, through April 23, 2023 2022 2021 2021 Accrued but unpaid capital expenditures at period end $ 10,766 $ 8,419 $ 2,219 $ 18,617 Accrued but unpaid debt issuance costs and arrangement fees (1) — — — 7,588 Common stock withheld for payroll tax obligations (2) 4,241 4,252 — — Cash interest payments 30,949 27,767 13,671 37,593 Cash paid for reorganization items, net — — 36,154 37,566 Cash income taxes paid (refunded), net: Foreign 7,449 13,178 1,969 3,460 U.S. federal ( 2,446 ) 110 468 — State 4 — — ( 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, which were accrued at April 23, 2021. In total, we incurred and capitalized financing costs of $ 13.8 million in relation to our exit financing . (2) Represents the cost of 302,833 and 563,727 shares of common stock withheld to satisfy the payroll tax obligation incurred as a result of the vesting of equity awards in the years ended December 31, 2023 and 2022, respectively. These costs are presented as a deduction from stockholders’ equity in “Treasury stock” in our Consolidated Balance Sheets at December 31, 2023 and 2022, respectively. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Time-vesting RSU and Restricted Stock [Member] | |
Summary of Activity Under Stock Plan | A summary of time-vesting RSU and restricted stock award activity under the Successor Equity Incentive Plan as of December 31, 2023 and changes during the year then ended is as follows: Number Weighted Nonvested awards at January 1, 2023 1,945,138 $ 8.20 Granted 692,236 $ 11.34 Vested ( 854,293 ) $ 8.31 Forfeited ( 98,460 ) $ 8.31 Nonvested awards at December 31, 2023 1,684,621 $ 6.81 |
Performance-Vesting RSUs [Member] | |
Summary of Activity Under Stock Plan | A summary of performance-vesting RSU activity under the Equity Incentive Plan as of December 31, 2023 and changes during the year then ended is as follows: Number Weighted Nonvested awards at January 1, 2023 1,521,297 $ 7.42 Granted 431,241 $ 13.99 Vested ( 419,736 ) $ 8.75 Forfeited ( 24,453 ) $ 8.75 Nonvested awards at December 31, 2023 1,508,349 $ 4.62 |
Performance-vesting Restricted Stock [Member] | |
Weighted Average Assumptions Used in Estimating Fair Value of Restricted Stock | The performance-vesting restricted stock awards granted during the Successor years ended December 31, 2023 and 2022 were valued using a Monte Carlo simulation assuming a Geometric Brownian Motion in a risk-neutral framework and using the following assumptions: Awards granted 2023 2022 Expected life of awards (in years) 3 3 Expected volatility 70.50 % 75.00 % Risk-free interest rate 3.70 % 2.71 % |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Nonrecurring and Recurring Basis | Assets and liabilities measured at fair value are summarized below (in thousands). Successor December 31, 2023 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets and Liabilities at Total Losses for Year Ended (2) Recurring fair value measurements Short-term investments (1) $ 92,308 $ — $ — $ 92,308 $ — Liability-classified Director restricted stock units (2) $ ( 1,259 ) $ — $ — $ ( 1,259 ) $ ( 252 ) Successor December 31, 2022 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets and Liabilities at Total Losses for Year Ended (2) Recurring fair value measurements Liability-classified Director restricted stock units (2) $ ( 1,258 ) $ — $ — $ ( 1,258 ) $ ( 201 ) (1) Represents short-term investments in debt securities classified as available for sale. As the original maturities of these debt securities are three months or less, we have reported our $ 92.3 million investment in these debt securities as Cash and cash equivalents in our Consolidated Balance Sheets at December 31, 2023. (2) The fair value of restricted stock units was estimated based on the quoted market price of our Common Stock at the respective balance sheet date. The total loss for the year includes an increase in stock compensation expense due to the “marking-to-market” of liability-classifie d restricted stock units granted to our non-employee directors on a recurring basis. |
Fair Values and Related Carrying Values of Our Debt Instruments | Fair values and related carrying values of our Second Lien Notes, Exit Term Loans and First Lien Notes (see Note 10 "Long-Term Debt") are shown below (in millions). December 31, 2023 2022 Fair Carrying Fair Carrying Second Lien Notes $ 562.6 $ 550.0 $ — $ — Exit Term Loans — — 91.1 100.0 First Lien Notes — — 78.3 85.3 |
Drilling and Other Property a_2
Drilling and Other Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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): December 31, 2023 2022 Drilling rigs and equipment $ 1,244,798 $ 1,126,793 Finance lease right of use asset 174,571 174,571 Land and buildings 10,040 10,001 Office equipment and other 5,180 2,515 Cost 1,434,589 1,313,880 Less: accumulated depreciation ( 278,221 ) ( 171,972 ) Drilling and other property and equipment, net $ 1,156,368 $ 1,141,908 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Value of Long-term Debt, Net of Unamortized Discount, Premium and Debt Issuance Costs | At December 31 , 2023 and 2022, the carrying value of our long-term debt, net of unamortized discount, premium and debt issuance costs, was comprised as follows (in thousands): December 31, 2023 2022 $ 550 Million Senior Secured Second Lien Notes due 2030 $ 533,514 $ — Borrowings under Exit RCF — 177,478 $ 100.0 Million Exit Term Loan — 99,190 9.00 %/ 11.00 %/ 13.00 % Senior Secured First Lien PIK Toggle Notes due 2027 — 83,976 Total Long-term debt $ 533,514 $ 360,644 |
Summary of Aggregate Annual Maturity of Senior Secured Second Lien Notes | At December 31, 2023, the aggregate annual maturity of our Senior Secured Second Lien Notes, excluding net debt issuance costs of $ 16.5 million, was as follows (in thousands): Year ending December 31, Aggregate Principal Amount 2024 — 2025 — 2026 — 2027 — 2028 — Thereafter 550,000 Total maturities of long-term debt $ 550,000 |
Summary of Debt Instrument Redemption | The following prices are for Second Lien Notes redeemed during the 12-month period commencing on October 1 of the years set forth below, and are expressed as percentages of principal amount: Redemption Year Price 2026 104.25 % 2027 102.13 % 2028 and thereafter 100.00 % |
Leases and Lease Commitments (T
Leases and Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Amounts Recognized in Unaudited Condensed Consolidated Balance Sheets | Amounts recognized in our Consolidated Balance Sheets for both our operating and finance leases are as follows (in thousands): December 31, Operating Leases: 2023 2022 Other assets $ 37,876 $ 30,332 Accrued liabilities ( 8,436 ) ( 13,480 ) Other liabilities ( 29,438 ) ( 16,542 ) Finance Leases: Drilling and other property and equipment, net of accumulated depreciation 128,303 145,510 Current finance lease liabilities ( 15,960 ) ( 16,965 ) Noncurrent finance lease liabilities ( 113,201 ) ( 131,393 ) |
Components of Lease Expense | Components of lease expense are as follows (in thousands): Successor Predecessor Year Ended Period from Period from April 24, 2021 through January 1, 2021 through 2023 2022 December 21, 2021 April 23, 2021 Operating lease cost $ 15,712 $ 19,479 $ 11,754 $ 11,799 Finance lease cost: Amortization of ROU assets 17,207 17,207 11,854 — Interest on lease liabilities 9,315 10,415 7,796 — Short-term lease cost 101 242 199 101 Variable lease cost (1) 107,848 12,804 1,237 598 Total lease cost $ 150,183 $ 60,147 $ 32,840 $ 12,498 (1) Includes charter expenses incurred post-commencement of drilling operations for the managed rigs. |
Supplemental Information Related to Leases | Supplemental information related to leases is as follows (in thousands, except weighted-average data): Successor Predecessor Year Ended Period from Period from April 24, 2021 through January 1, 2021 through Operating Leases: 2023 2022 December 31. 2021 April 23, 2021 Operating cash flows used $ 15,014 $ 19,031 $ 12,005 $ 10,817 ROU assets obtained in exchange for lease liabilities 21,027 8,662 19,064 1,076 Weighted-average remaining lease term (1) 4.6 years 4.0 years 4.4 years 5.9 years Weighted-average discount rate (1) 9 % 7 % 7 % 6.89 % Finance Leases: Operating cash flows used $ 9,315 $ 10,415 $ 7,796 $ — Financing cash flows used 16,965 15,865 9,845 — ROU assets obtained in exchange for lease liabilities — — 174,571 — Weighted-average remaining lease term (1) 2.5 years 3.5 years 4.5 years n/a Weighted-average discount rate (1) 7 % 7 % 7 % n/a (1) Amounts represent the weighted average remaining lease term or discount rate as of the end of the respective period presented. |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2023 are as follows (in thousands): Operating Leases Finance Leases Total 2024 $ 11,181 $ 26,352 $ 37,533 2025 9,658 26,280 35,938 2026 9,386 94,198 103,584 2027 8,566 — 8,566 2028 4,771 — 4,771 Thereafter 2,788 — 2,788 Total lease payments $ 46,350 $ 146,830 $ 193,180 Less: Interest ( 8,476 ) ( 17,669 ) ( 26,145 ) Total lease liability $ 37,874 $ 129,161 $ 167,035 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax (Benefit) Expense | The components of income tax (benefit) expense are as follows (in thousands): Successor Predecessor Year Ended Period from Period from April 24, 2021 through January 1, 2021 through 2023 2022 December 31, 2021 April 23, 2021 Federal – current $ 8,375 $ 1,267 $ 3,645 $ 171 State – current 10 10 — — Foreign – current 27,215 ( 4,151 ) 1,491 ( 3,681 ) Total current 35,600 ( 2,874 ) 5,136 ( 3,510 ) Federal – deferred 6,580 4,538 ( 6,742 ) ( 30,955 ) Foreign – deferred ( 11,197 ) ( 4,059 ) 3,260 ( 4,939 ) Total deferred ( 4,617 ) 479 ( 3,482 ) ( 35,894 ) Total $ 30,983 $ ( 2,395 ) $ 1,654 $ ( 39,404 ) |
Difference Between Actual Income Tax Expense and Tax Provision Computed by Applying Statutory Federal Income Tax Rate to Income Before Taxes | The difference between actual income tax expense and the tax provision computed by applying the statutory federal income tax rate to income before taxes is attributable to the following (in thousands): Successor Predecessor Year Ended Period from Period from April 24, 2021 through January 1, 2021 through 2023 2022 December 31, 2021 April 23, 2021 (Loss) income before income tax expense: U.S. $ 443 $ ( 7,054 ) $ ( 1,048 ) $ 686,202 Foreign ( 14,166 ) ( 98,552 ) ( 174,642 ) ( 2,687,595 ) $ ( 13,723 ) $ ( 105,606 ) $ ( 175,690 ) $ ( 2,001,393 ) Expected income tax benefit at federal statutory rate $ ( 2,882 ) $ ( 22,177 ) $ ( 36,895 ) $ ( 420,292 ) Withholding taxes $ 486 — — — Effect of tax rate changes — — 9,871 — Reorganization items — — 266 ( 225,563 ) Post-petition interest expense — — — ( 6,771 ) Disallowed officers' compensation and restricted stock unit awards ( 459 ) 2,205 — — Interest and penalties reported as income tax expense 831 3,318 — — Effect of foreign operations 32,384 12,639 79,600 163,236 Valuation allowance ( 20,527 ) ( 23,135 ) ( 45,919 ) 515,421 Uncertain tax positions, settlements and adjustments relating to prior years 21,039 25,692 ( 7,220 ) ( 67,626 ) Other 111 ( 937 ) 1,951 2,191 Income tax (benefit) expense $ 30,983 $ ( 2,395 ) $ 1,654 $ ( 39,404 ) |
Components of Deferred Income Tax Assets and Liabilities | Deferred Income Taxes. Significant components of our deferred income tax assets and liabilities are as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards, or NOLs $ 252,732 $ 412,152 Foreign tax credits 28,769 27,223 Disallowed interest deduction 66,632 69,604 Worker’s compensation and other current accruals 5,808 6,273 Deferred deductions 7,078 7,661 Deferred revenue 1,467 33 Operating lease liability 19,744 22,011 Property, plant and equipment 332,981 129,938 Other 5,617 7,234 Total deferred tax assets 720,828 682,129 Valuation allowance ( 629,665 ) ( 650,193 ) Net deferred tax assets 91,163 31,936 Deferred tax liabilities: Right-of-use assets ( 18,964 ) ( 21,374 ) 'Property, plant and equipment ( 56,409 ) Other ( 1,197 ) ( 652 ) Total deferred tax liabilities ( 76,570 ) ( 22,026 ) Net deferred tax asset $ 14,593 $ 9,910 |
Summary of Rollforward of Beginning and Ending Amount of Unrecognized Tax Benefits, Excluding Interest and Penalties | A roll forward of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): Successor Predecessor Year Ended For the Period For the Period April 24, 2021 January 1, 2021 through through 2023 2022 December 31, 2021 April 23, 2021 Balance, beginning of period $ ( 21,540 ) $ ( 21,148 ) $ ( 26,678 ) $ ( 214,626 ) Additions for current year tax positions ( 7,391 ) ( 5,993 ) ( 3,553 ) — Additions for prior year tax positions ( 705 ) ( 504 ) ( 1,424 ) ( 1,282 ) Reductions for prior year tax positions 1,141 4,345 1,730 187,389 Reductions related to statute of limitation expirations 3,878 1,760 8,777 1,841 Reductions related to settlements with taxing authorities 52 — — — Balance, end of period $ ( 24,565 ) $ ( 21,540 ) $ ( 21,148 ) $ ( 26,678 ) |
Segments and Geographic Area _2
Segments and Geographic Area Analysis (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Information About Disaggregated Revenue by Equipment type and Country | The following tables provide information about disaggregated revenue by equipment-type and country (in thousands): Successor Year Ended December 31, 2023 Total Revenues Total United States $ 513,226 $ 36,645 $ 549,871 Senegal 169,223 11,586 180,809 United Kingdom 168,894 14,708 183,602 Australia 67,846 9,257 77,103 Brazil 64,794 — 64,794 Total $ 983,983 $ 72,196 $ 1,056,179 Successor Year Ended December 31, 2022 Total Revenues Total United States $ 322,021 $ 75,069 $ 397,090 Senegal 154,574 11,929 166,503 United Kingdom 66,116 8,478 74,594 Australia 92,939 14,082 107,021 Brazil 80,185 — 80,185 Myanmar 8,909 6,976 15,885 Total $ 724,744 $ 116,534 $ 841,278 Successor Period from April 24, 2021 through December 31, 2021 Total Revenues Total United States $ 194,912 $ 55,471 $ 250,383 Senegal 48,758 10,110 58,868 United Kingdom 55,245 3,859 59,104 Australia 95,601 15,132 110,733 Brazil 42,215 — 42,215 Myanmar 28,597 6,166 34,763 Total $ 465,328 $ 90,738 $ 556,066 Predecessor Period from January 1, 2021 through April 23, 2021 Total Revenues Total United States $ 93,215 $ 7,048 $ 100,263 United Kingdom 27,967 2,300 30,267 Australia 17,031 4,697 21,728 Brazil 3,421 — 3,421 Myanmar 11,730 1,970 13,700 Total $ 153,364 $ 16,015 $ 169,379 |
Long-Lived Tangible Assets by Country | The following table presents the locations of our long-lived tangible assets by country as of December 31, 2023, 2022 and 2021. A substantial portion of our assets is comprised of rigs that are mobile and, therefore, asset locations at the end of the period are not necessarily indicative of the geographic distribution of the earnings generated by such assets during the periods and may vary from period to period due to the relocation of rigs. In circumstances where our drilling rigs were in transit at the end of a calendar year, they have been presented in the tables below within the country in which they were expected to operate (in thousands). December 31, Drilling and other property and equipment, net: 2023 2022 2021 United States $ 543,930 $ 362,813 $ 559,288 International: United Kingdom 251,049 256,837 98,338 Senegal 169,627 352,655 188,694 Australia 98,793 91,089 106,173 Brazil 86,057 69,596 76,383 Spain (1) — — 142,930 Other countries (2) 6,912 8,918 4,089 612,438 779,095 616,607 Total $ 1,156,368 $ 1,141,908 $ 1,175,895 (1) The Ocean GreatWhite was relocated to the U.K. in 2022 for reactivation and contract preparation activities. (2) Countries with long-lived assets that individually comprise less than 5 % of total drilling and other property and equipment, net of accumulated depreciation. |
Revenues from Major Customers that Contributed More than 10% of Total Revenues | Revenues from our major customers for the Successor periods for the years ended December 31, 2023 and 2022 and the period from April 24, 2021 through December 31, 2021 and the Predecessor period from January 1, 2021 through April 23, 2021 that contributed more than 10% of our total revenues are as follows: Successor Predecessor Year Ended Period from Period from December 31, April 24, 2021 through January 1, 2021 through 2023 (1) 2022 (1) December 31, 2021 (1) April 23, 2021 BP 48.4 % 33.1 % 25.4 % 39.8 % Woodside 21.5 % 29.7 % 22.4 % 0.5 % Oxy 2.9 % 3.9 % 11.5 % 21.4 % |
General Information - Additiona
General Information - Additional Information (Detail) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 23, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) Rig | Dec. 31, 2022 USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Number of offshore rigs owned | Rig | 13 | |||
Survey Costs | $ 3,500 | $ 3,300 | ||
Net book value of assets | $ 1,175,895 | 1,156,368 | 1,141,908 | |
Gain on disposition of assets | $ 5,486 | $ 1,024 | $ 4,382 | 4,895 |
Period considered to treat short-term, highly liquidity investments as cash equivalents | three months or less | |||
Amount capitalized for asset replacements and betterments | $ 124,300 | 69,100 | ||
Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Deferral and amortization costs incurred period | 2 years 6 months | |||
Estimated useful life for drilling rigs and equipment | 3 years | |||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Deferral and amortization costs incurred period | 5 years | |||
Estimated useful life for drilling rigs and equipment | 30 years | |||
Contract Drilling [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Amortized deferred survey costs | $ 1,100 | 700 | ||
Prepaid Expenses and Other Current Assets [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Survey Costs | 1,400 | 800 | ||
Other Assets [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Survey Costs | $ 4,300 | $ 2,500 | ||
Ultra-deepwater Drillship [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of offshore rigs owned | Rig | 4 | |||
Semisubmersible Rigs [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of offshore rigs owned | Rig | 7 | |||
Ocean Monarch [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Net book value of assets | $ 1,000 | |||
Managed rigs [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of offshore rigs owned | Rig | 2 |
Chapter 11 Proceedings - Additi
Chapter 11 Proceedings - Additional Information (Detail) - USD ($) | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||||||
Sep. 21, 2023 | Apr. 23, 2021 | Jan. 22, 2021 | Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Liabilities Subject To Compromise [Line Items] | |||||||||
Reorganization, date plan confirmed | Apr. 08, 2021 | ||||||||
Reorganization, effective date of plan | Apr. 23, 2021 | ||||||||
Authorizing issuance of shares of common stock representing equity interests percentage | 100% | 100% | |||||||
Total capital stock authorized | 800,000,000 | 800,000,000 | |||||||
Common stock, shares authorized | 750,000,000 | 750,000,000 | 750,000,000 | 750,000,000 | |||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Common stock transferred | 30,000,000 | ||||||||
New-money commitments to Debtors | $ 114,700,000 | ||||||||
New stock warrants issued in exchange for common stock | 7,500,000 | ||||||||
Common stock, shares issued | 100,000,000 | 100,000,000 | 103,189,000 | 101,884,000 | |||||
Common stock, shares outstanding | 100,000,000 | 100,000,000 | 102,322,000 | 101,320,000 | |||||
Payment for professional fees and vendor cancellation costs | $ 37,566,000 | $ 36,154,000 | |||||||
Accrued interest | $ 13,013,000 | $ 1,897,000 | |||||||
Interest expense | 34,827,000 | 26,180,000 | 53,416,000 | 40,423,000 | |||||
Net Income (Loss) | (1,961,989,000) | $ (177,344,000) | (177,344,000) | (44,706,000) | (103,211,000) | ||||
Asset Impairment Charges | 197,027,000 | 132,449,000 | 0 | 0 | |||||
Contractual interest expense not recorded | $ 35,390,000 | ||||||||
Computershare Inc. [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Warrants issued | 7,500,000 | ||||||||
Warrants term | 5 years | 5 years | |||||||
Warrants exercise years | 5 years | ||||||||
Warrants exercisable percentage | 7% | ||||||||
Warrants exercise price | $ 29.22 | $ 29.22 | |||||||
Senior Notes [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Common stock transferred | 70,000,000 | ||||||||
Amount available for general purposes | 550,000,000 | $ 550,000,000 | |||||||
Pro rata share received percentage | 70% | ||||||||
Senior Secured Term Loan Credit Agreement [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Senior notes | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | ||||||
Debt instrument maturity date | Apr. 22, 2027 | Apr. 22, 2027 | |||||||
Debt instrument carrying amount | $ 100,000,000 | 100,000,000 | $ 100,000,000 | ||||||
Additional First Lien Notes [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Senior notes | 39,700,000 | 39,700,000 | |||||||
Debt instrument carrying amount | $ 0 | $ 0 | |||||||
Exit Revolving Credit Facility [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Line of credit | $ 950,000,000 | ||||||||
Exit Revolving Credit Facility [Member] | Maximum [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Credit facility pro rata share amount of funded loans | 100,000,000 | ||||||||
Senior Secured Revolving Credit Facility [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Amount available for general purposes | 400,000,000 | 400,000,000 | |||||||
Sublimit for issuance of letters of credit | $ 100,000,000 | 100,000,000 | |||||||
First Lien Notes [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Aggregate principal amount | $ 85,300,000 | ||||||||
Senior notes maturity year | 2027 | 2027 | |||||||
Senior notes | $ 85,300,000 | $ 85,300,000 | |||||||
Debt instrument maturity date | Apr. 22, 2027 | Apr. 22, 2027 | |||||||
First Lien Notes [Member] | Cash Pay Rate [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Interest rate of senior notes | 9% | 9% | 9% | 9% | |||||
First Lien Notes [Member] | Cash Pay Rate and Payment in Kind Rate [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Interest rate of senior notes | 11% | 11% | 11% | 11% | |||||
First Lien Notes [Member] | Payment in Kind Rate [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Interest rate of senior notes | 13% | 13% | 13% | 13% | |||||
Second Lien Notes [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Debt instrument maturity date | Oct. 01, 2030 | ||||||||
Second Lien Notes [Member] | Senior Notes [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Interest rate of senior notes | 8.50% | ||||||||
Aggregate principal amount | $ 550,000,000 | ||||||||
Senior notes maturity year | 2030 | ||||||||
5.70% Senior Notes due 2039 [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Interest rate of senior notes | 5.70% | ||||||||
Senior notes maturity year | 2039 | ||||||||
3.45% Senior Notes due 2023 [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Interest rate of senior notes | 3.45% | ||||||||
Senior notes maturity year | 2023 | ||||||||
4.875% Senior Notes due 2043 [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Interest rate of senior notes | 4.875% | ||||||||
Senior notes maturity year | 2043 | ||||||||
7.875% Senior Notes due 2025 [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Interest rate of senior notes | 7.875% | ||||||||
Senior notes maturity year | 2025 | ||||||||
Exit Term Loan Credit Facility [Member] | |||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||
Senior notes | $ 100,000,000 | $ 100,000,000 | |||||||
Maximum portion of facility used to settle RCF claims | $ 200,000,000 |
Fresh Start Accounting - Schedu
Fresh Start Accounting - Schedule of Reconciles Enterprise Value to Estimated Fair Value of Successor's Equity (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fresh-Start Balance Sheet [Abstract] | ||
Cash and cash equivalents | $ 124,457 | $ 63,041 |
Fresh Start Accounting - Sche_2
Fresh Start Accounting - Schedule of Fresh Start Adjustments to Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 24, 2021 | Dec. 31, 2020 |
Current assets: | |||||
Cash and cash equivalents | $ 124,457 | $ 63,041 | |||
Restricted cash | 14,231 | 34,293 | |||
Accounts receivable | 260,124 | 177,675 | |||
Less: allowance for credit losses | (5,801) | (5,622) | |||
Accounts receivable, net | 254,323 | 172,053 | |||
Prepaid expenses and other current assets | 63,412 | 48,695 | |||
Assets held for sale | 1,000 | 0 | |||
Total current assets | 457,423 | 318,082 | |||
Drilling and other property and equipment, net of accumulated depreciation | 1,156,368 | 1,141,908 | |||
Other assets | 98,762 | 67,966 | |||
Total assets | 1,712,553 | 1,527,956 | |||
Current liabilities: | |||||
Accounts payable | 42,037 | 47,647 | |||
Accrued liabilities | 203,336 | 166,785 | |||
Current finance lease liabilities | 15,960 | 16,965 | |||
Taxes payable | 34,817 | 30,264 | |||
Total current liabilities | 296,150 | 261,661 | |||
Deferred tax liability | 10,966 | 700 | |||
Other liabilities | 113,871 | 93,888 | |||
Noncurrent finance lease liabilities | 113,201 | 131,393 | |||
Long-term debt | 533,514 | 360,644 | |||
Stockholders’ equity: | |||||
Predecessor or Successor preferred stock | 0 | 0 | |||
Predecessor or Successor common stock | 10 | 10 | |||
Predecessor treasury stock, at cost | (8,493) | (4,252) | |||
Accumulated deficit | (325,261) | (280,555) | |||
Total stockholders’ equity | 644,851 | 679,670 | $ 767,705 | $ 934,810 | $ 1,982,566 |
Total liabilities and stockholders’ equity | $ 1,712,553 | 1,527,956 | |||
Common Stock [Member] | |||||
Stockholders’ equity: | |||||
Total stockholders’ equity | $ 10 | $ 10 | $ 1,453 |
Fresh Start Accounting - Sche_3
Fresh Start Accounting - Schedule of Net Cash Payments (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Reorganization, Chapter 11 [Line Items] | ||
Change in cash and cash equivalents | $ 124,457 | $ 63,041 |
Fresh Start Accounting - Sche_4
Fresh Start Accounting - Schedule of Change in Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Reorganization, Chapter 11 [Line Items] | ||
Change in restricted cash | $ 14,231 | $ 34,293 |
Fresh Start Accounting - Sche_5
Fresh Start Accounting - Schedule of Changes in Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Reorganization, Chapter 11 [Line Items] | ||
Change in prepaid expenses and other current assets | $ 63,412 | $ 48,695 |
Fresh Start Accounting - Reorga
Fresh Start Accounting - Reorganization Adjustments (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Reorganization, Chapter 11 [Line Items] | ||
ROU asset | $ 37,876 | $ 30,332 |
Finance lease liabilities | 129,161 | |
Reduction in accounts payable | $ 42,037 | $ 47,647 |
Fresh Start Accounting - Sche_6
Fresh Start Accounting - Schedule of Changes in Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Reorganization, Chapter 11 [Line Items] | ||
Change in other assets | $ 98,762 | $ 67,966 |
Fresh Start Accounting - Sche_7
Fresh Start Accounting - Schedule of Changes in Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Reorganization, Chapter 11 [Line Items] | ||
Change in accrued liabilities | $ 203,336 | $ 166,785 |
Fresh Start Accounting - Sche_8
Fresh Start Accounting - Schedule of Changes in Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Reorganization, Chapter 11 [Line Items] | ||
Change in long-term debt | $ 533,514 | $ 360,644 |
Fresh Start Accounting - Sche_9
Fresh Start Accounting - Schedule of Reconciles Reorganization Adjustments Made to Successor's Common Stock and Successor's Additional Paid-in Capital (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Reorganization, Chapter 11 [Line Items] | ||
Less: Par value of Successor common stock | $ (10) | $ (10) |
Successor additional paid-in capital | $ 978,575 | $ 964,467 |
Fresh Start Accounting - Sch_10
Fresh Start Accounting - Schedule of Cumulative Net Impact of Effects on Accumulated Deficit (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Reorganization, Chapter 11 [Line Items] | ||
Change in accumulated deficit | $ (325,261) | $ (280,555) |
Fresh Start Accounting - Fresh
Fresh Start Accounting - Fresh Start Adjustments (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Reorganization, Chapter 11 [Line Items] | ||
Adjustment to deferred taxes | $ 10,966 | $ 700 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue From Contract With Customers [Line Items] | ||
Payment terms on invoiced amounts | 30 days | |
Deferred contract costs | $ 20,552,000 | $ 14,373,000 |
Contract costs amortization | 16,200,000 | 7,300,000 |
Contract costs impairment loss | 0 | |
Ocean Patriot [Member] | ||
Revenue From Contract With Customers [Line Items] | ||
Contract termination fee | 12,500,000 | |
Ocean Apex [Member] | ||
Revenue From Contract With Customers [Line Items] | ||
Contract termination fee | 6,700,000 | |
Prepaid Expenses and Other Current Assets [Member] | ||
Revenue From Contract With Customers [Line Items] | ||
Deferred contract costs | 20,600,000 | 14,400,000 |
Other Assets [Member] | ||
Revenue From Contract With Customers [Line Items] | ||
Deferred contract costs | $ 6,200,000 | $ 300,000 |
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 | Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||
Trade receivables | $ 253,367 | $ 155,956 | |
Current contract assets | [1] | 2,575 | 141 |
Current contract liabilities (deferred revenue) | [1] | (12,634) | (11,513) |
Noncurrent contract liabilities (deferred revenue) | [1] | $ (3,947) | $ (487) |
[1] Contract assets and contract liabilities may reflect balances that 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 asset and liability balances are included in “Other assets” and “Other liabilities,” respectively, in our Consolidated Balance Sheets as of December 31, 2023 and 2022 . |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Significant Changes in Net Contract Assets and Contract Liabilities Balances (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Revenue from Contract with Customer [Abstract] | |||
Contract assets, beginning of period | $ 141 | $ 1,835 | |
Contract liabilities, beginning of period | (12,000) | (48,293) | |
Decrease due to amortization of revenue included in the beginning contract liability balance | 11,512 | 26,909 | |
Increase due to cash received, excluding amounts recognized as revenue during the period | (16,093) | (2,444) | |
Increase due to revenue recognized during the period but contingent on future performance | 12,177 | 6,618 | |
Decrease due to transfer to receivables during the period | (9,743) | (8,312) | |
Adjustments | [1] | 11,828 | |
Contract assets at end of period | 2,575 | 141 | |
Contract liabilities at end of period | $ (16,581) | $ (12,000) | |
[1] Upon commencement of drilling operations, the MMSA for the managed rigs was suspended and replaced by a charter agreement for the duration of the contract. As a result, we reclassified $ 11.1 million previously recorded as a contract liability to “Contract advances,” which was reported as a component of “Accrued liabilities” in our Consolidated Balance Sheets at December 31, 2022. |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Summary of Significant Changes in Net Contract Assets and Contract Liabilities Balances (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Adjustments | $ 11.1 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Summary of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 17,630 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 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, Expected Timing of Satisfaction, Start Date: 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 | $ 13,118 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
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 | $ 1,548 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |
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 | $ 1,548 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01 | |
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 | $ 1,416 |
Mobilization and Contract Preparation Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 10,191 |
Mobilization and Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 6,256 |
Mobilization and Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 1,350 |
Mobilization and Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 1,350 |
Mobilization and Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 1,235 |
Capital Modification Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 4,381 |
Capital Modification Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 4,381 |
Blended Rate and Other Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 2,009 |
Blended Rate and Other Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 2,009 |
Demobilization and Other Deferred Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 1,049 |
Demobilization and Other Deferred Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 472 |
Demobilization and Other Deferred Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 198 |
Demobilization and Other Deferred Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 198 |
Demobilization and Other Deferred Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 181 |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Summary of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail 1) $ in Thousands | Dec. 31, 2023 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 17,630 |
Mobilization and Contract Preparation Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 10,191 |
Capital Modification Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 4,381 |
Demobilization and Other Deferred Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 1,049 |
Blended Rate and Other Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 2,009 |
Asset Impairments - Additional
Asset Impairments - Additional Information (Detail) | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 Rig | Mar. 31, 2021 Rig | Apr. 23, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 Rig | |
Schedule Of Asset Impairment Charges [Line Items] | |||||||
Loss on impairment of assets | $ | $ 197,027,000 | $ 132,449,000 | $ 0 | $ 0 | |||
2021 Impaired Rigs [Member] | |||||||
Schedule Of Asset Impairment Charges [Line Items] | |||||||
Number of rigs evaluated for impairment | Rig | 3 | 3 | 1 | ||||
Number of rigs impaired during period | Rig | 2 | 1 | |||||
Loss on impairment of assets | $ | $ 197,000,000 | $ 132,400,000 | |||||
2020 Impaired Rigs [Member] | |||||||
Schedule Of Asset Impairment Charges [Line Items] | |||||||
Impaired long-lived assets held and used, method for determining fair value | We estimated the fair values of the impaired rigs using an income approach, whereby the fair value of each 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 and, when applicable, 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. |
Supplemental Financial Inform_3
Supplemental Financial Information - Accounts Receivable, Net of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Trade receivables | $ 253,367 | $ 155,956 |
Value added tax receivables | 5,256 | 6,075 |
Federal income tax receivable | 0 | 9,450 |
Other | 1,346 | 6,121 |
Receivables Gross Current, Total | 260,124 | 177,675 |
Allowance for credit losses | (5,801) | (5,622) |
Accounts receivable, net | 254,323 | 172,053 |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | $ 155 | $ 73 |
Supplemental Financial Inform_4
Supplemental Financial Information - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Deferred contract costs | $ 20,552 | $ 14,373 | |
Collateral deposits | 11,857 | 0 | |
Prepaid taxes | 10,868 | 16,922 | |
Rig spare parts and supplies | 4,694 | 5,091 | |
Prepaid rig costs | 3,668 | 4,001 | |
Prepaid insurance | 3,437 | 3,022 | |
Current contract assets | [1] | 2,575 | 141 |
Deferred survey costs | 1,418 | 838 | |
Software maintenance agreements and subscriptions | 1,408 | 1,212 | |
Other | 2,935 | 3,095 | |
Change in prepaid expenses and other current assets | $ 63,412 | $ 48,695 | |
[1] Contract assets and contract liabilities may reflect balances that 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 asset and liability balances are included in “Other assets” and “Other liabilities,” respectively, in our Consolidated Balance Sheets as of December 31, 2023 and 2022 . |
Supplemental Financial Inform_5
Supplemental Financial Information - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |||
Contract advances | $ 63,618 | $ 52,743 | |
Rig operating costs | 42,893 | 39,288 | |
Payroll and benefits | 35,215 | 29,408 | |
Interest payable | 13,013 | 1,897 | |
Deferred revenue | [1] | 12,634 | 11,513 |
Accrued capital project/upgrade costs | 10,766 | 8,419 | |
Current operating lease liability | 8,436 | 13,480 | |
Personal injury and other claims | 7,391 | 3,738 | |
Shorebase and administrative costs | 5,699 | 4,365 | |
Deposit for equipment sale | 1,977 | 1,670 | |
Other | 1,694 | 264 | |
Change in accrued liabilities | $ 203,336 | $ 166,785 | |
[1] Contract assets and contract liabilities may reflect balances that 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 asset and liability balances are included in “Other assets” and “Other liabilities,” respectively, in our Consolidated Balance Sheets as of December 31, 2023 and 2022 . |
Supplemental Financial Inform_6
Supplemental Financial Information - Noncash Investing Activities (Detail) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Accrued but unpaid capital expenditures at period end | $ 18,617 | $ 2,219 | $ 10,766 | $ 8,419 |
Accrued but unpaid debt issuance costs and arrangement fees | 7,588 | |||
Common stock withheld for payroll tax obligations | 4,241 | 4,252 | ||
Cash interest payments | 37,593 | 13,671 | 30,949 | 27,767 |
Cash paid for reorganization items, net | 37,566 | 36,154 | ||
Foreign [Member] | ||||
Cash income taxes paid (refunded), net: | ||||
Cash income taxes paid (refunded), net | 3,460 | 1,969 | 7,449 | 13,178 |
U.S. Federal [Member] | ||||
Cash income taxes paid (refunded), net: | ||||
Cash income taxes paid (refunded), net | $ 468 | (2,446) | $ 110 | |
State [Member] | ||||
Cash income taxes paid (refunded), net: | ||||
Cash income taxes paid (refunded), net | $ (34) | $ 4 |
Supplemental Financial Inform_7
Supplemental Financial Information - Noncash Investing and Financing Activities (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Apr. 23, 2021 | |
Condensed Financial Statements, Captions [Line Items] | |||
Capitalized financing costs | $ 13.8 | ||
Restricted Stock [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Number of shares of common stock withheld | 302,833 | 563,727 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 8 Months Ended | 12 Months Ended | |
May 31, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Performance-Vesting RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity instruments awarded in period | 431,241 | |||
Vesting | 419,736 | |||
Weighted-average grant date fair value per share, vested | $ 8.75 | |||
Weighted-average grant-date fair value of performance-vesting restricted stock | 4.62 | $ 7.42 | ||
Weighted-Average Grant Date Fair Value Per Share, granted | 13.99 | |||
Performance-vesting Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant date fair values of awards granted | $ 8.75 | $ 13.99 | $ 5.71 | |
Share based compensation arrangement by Share based payment award options vested in period fair value 1 | $ 6.5 | $ 3.2 | ||
Time-vesting RSU and Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity instruments awarded in period | 692,236 | |||
Vesting | 854,293 | |||
Weighted-average grant date fair value per share, vested | $ 8.31 | |||
Weighted-average grant-date fair value of performance-vesting restricted stock | 6.81 | $ 8.20 | ||
Weighted-Average Grant Date Fair Value Per Share, granted | 11.34 | |||
Weighted-average grant date fair values of awards granted | $ 8.75 | $ 11.34 | $ 6.68 | |
Share based compensation arrangement by Share based payment award options vested in period fair value 1 | $ 0.6 | $ 11.3 | $ 3.9 | |
Equity Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost recognized for awards under the Equity Plan | 10.8 | 14.2 | 20.2 | |
Tax benefits recognized | $ 2 | 2.5 | 2.9 | |
Unrecognized compensation cost related to nonvested awards under the Equity Plan | $ 10.7 | |||
Expected weighted average period to recognized compensation cost related to nonvested awards under the Equity Plan | 1 year | |||
Equity Plan [Member] | Performance-vesting Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of awards vested | $ 5.4 | |||
Vesting | 30,370 | 747,407 | ||
Weighted-average grant date fair value per share, vested | $ 6.89 | |||
Share based compensation arrangement by Share based payment award options vested in period fair value 1 | $ 0.4 | $ 6.2 | ||
2021 Long-Term Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares of common stock available for issuance | 11,111,111 | |||
2021 Long-Term Stock Incentive Plan [Member] | Time-vesting RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity instruments awarded in period | 1,916,043 | 593,205 | 535,516 | |
Vesting period | 3 years | |||
2021 Long-Term Stock Incentive Plan [Member] | Time-vesting RSUs [Member] | Non-Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity instruments awarded in period | 318,292 | |||
2021 Long-Term Stock Incentive Plan [Member] | Time-vesting Restricted Stock [Member] | Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity instruments awarded in period | 222,222 | |||
2021 Long-Term Stock Incentive Plan [Member] | Performance-Vesting RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity instruments awarded in period | 1,733,404 | 431,241 | 709,148 | |
Vesting period | 3 years | 3 years | 3 years | |
2021 Long-Term Stock Incentive Plan [Member] | Performance-vesting Restricted Stock [Member] | Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity instruments awarded in period | 777,777 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Restricted Stock Unit and Restricted Stock Awarded Under Equity Plan (Detail) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Time-vesting RSU and Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards, Nonvested, Beginning Balance | shares | 1,945,138 |
Number of Awards, granted | shares | 692,236 |
Number of Awards, vested | shares | (854,293) |
Number of Awards, forfeited | shares | (98,460) |
Number of Awards, Nonvested, Ending Balance | shares | 1,684,621 |
Weighted-Average Grant Date Fair Value Per Share, Nonvested, Beginning Balance | $ / shares | $ 8.20 |
Weighted-Average Grant Date Fair Value Per Share, granted | $ / shares | 11.34 |
Weighted-Average Grant Date Fair Value Per Share, vested | $ / shares | 8.31 |
Weighted-Average Grant Date Fair Value Per Share, forfeited | $ / shares | 8.31 |
Weighted-Average Grant Date Fair Value Per Share, Nonvested, Ending Balance | $ / shares | $ 6.81 |
Performance-Vesting RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards, Nonvested, Beginning Balance | shares | 1,521,297 |
Number of Awards, granted | shares | 431,241 |
Number of Awards, vested | shares | (419,736) |
Number of Awards, forfeited | shares | (24,453) |
Number of Awards, Nonvested, Ending Balance | shares | 1,508,349 |
Weighted-Average Grant Date Fair Value Per Share, Nonvested, Beginning Balance | $ / shares | $ 7.42 |
Weighted-Average Grant Date Fair Value Per Share, granted | $ / shares | 13.99 |
Weighted-Average Grant Date Fair Value Per Share, vested | $ / shares | 8.75 |
Weighted-Average Grant Date Fair Value Per Share, forfeited | $ / shares | 8.75 |
Weighted-Average Grant Date Fair Value Per Share, Nonvested, Ending Balance | $ / shares | $ 4.62 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions Used in Estimating Fair Value of Restricted Stock (Detail) - Performance-vesting Restricted Stock [Member] | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life of awards (in years) | 3 years | 3 years |
Expected volatility | 70.50% | 75% |
Risk free interest rate | 3.70% | 2.71% |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Disclosures - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trade receivables past due | $ 11,100 | |
Trade receivables reserved for previous years | 5,500 | |
Trade receivables remaining past due | 5,600 | |
Estimate of credit losses | 300 | $ 200 |
Allowance for credit losses | $ 5,801 | $ 5,622 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Disclosures - Assets Measured at Fair Value on Nonrecurring and Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-Term Investments | $ 92,300 | |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Costs and Expenses | Costs and Expenses |
Recurring Fair Value Measurements [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-Term Investments | $ 92,308 | |
Recurring Fair Value Measurements [Member] | Director [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liability-classified Director restricted stock units | (1,259) | $ (1,258) |
Total Losses | (252) | (201) |
Recurring Fair Value Measurements [Member] | Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 92,308 | |
Recurring Fair Value Measurements [Member] | Level 1 [Member] | Director [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liability-classified Director restricted stock units | $ (1,259) | $ (1,258) |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Disclosures - Assets Measured at Fair Value on Nonrecurring and Recurring Basis (Parenthetical) (Detail) $ in Millions | Dec. 31, 2023 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Short-Term Investments | $ 92.3 |
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 | Dec. 31, 2023 | Dec. 31, 2022 |
First Lien Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 0 | $ 78.3 |
Carrying Value | 0 | 85.3 |
Second Lien Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 562.6 | 0 |
Carrying Value | 550 | 0 |
Exit Term Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 91.1 |
Carrying Value | $ 0 | $ 100 |
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 | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,434,589 | $ 1,313,880 |
Less: accumulated depreciation | (278,221) | (171,972) |
Drilling and other property and equipment, net | 1,156,368 | 1,141,908 |
Drilling Rigs and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,244,798 | 1,126,793 |
Finance Lease Right of Use Asset [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 174,571 | 174,571 |
Land and Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 10,040 | 10,001 |
Office Equipment and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 5,180 | $ 2,515 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Debt issuance costs | $ 16.5 |
Long Term Debt - Second Lien No
Long Term Debt - Second Lien Notes - Additional Information (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |||
Sep. 21, 2023 | Apr. 23, 2021 | Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Net proceeds | $ 550,000 | |||||
Debt issuance costs | $ 6,218 | $ 0 | 17,242 | $ 0 | ||
First Lien Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 85,300 | |||||
Debt instrument, maturity year | 2027 | 2027 | ||||
Debt instrument maturity date | Apr. 22, 2027 | Apr. 22, 2027 | ||||
First Lien Notes [Member] | Cash Pay Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate of senior notes | 9% | 9% | 9% | 9% | ||
First Lien Notes [Member] | Cash Pay Rate and Payment in Kind Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate of senior notes | 11% | 11% | 11% | 11% | ||
First Lien Notes [Member] | Payment in Kind Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate of senior notes | 13% | 13% | 13% | 13% | ||
Second Lien Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Net proceeds | $ 540,000 | |||||
Debt instrument maturity date | Oct. 01, 2030 | |||||
Payment of Interest on the second lien notes | interest is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 1, 2024. | |||||
Redemption of debt description | On or after October 1, 2026, the Issuers may, at their option, redeem all or any portion of the Second Lien Notes from time to time upon not less than 10 days nor more than 60 days prior notice, at the redemption prices set forth below, plus accrued and unpaid interest if any, to, but excluding, the redemption date. | |||||
Debt issuance costs | $ 17,000 | |||||
Borrowings effective interest rate | 9.09% | |||||
Second Lien Notes [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 550,000 | |||||
Interest rate of senior notes | 8.50% | |||||
Debt instrument, maturity year | 2030 | |||||
Triggering event, redemption price percentage | 101% | |||||
Debt Instrument Principle Percentage Redemption One | Second Lien Notes [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principle redemption | 35% | |||||
Redemption price percentage | 108.50% | |||||
Principle redemption outstanding | 65% | |||||
Debt Instrument Principle Percentage Redemption Two | Second Lien Notes [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principle redemption | 10% | |||||
Redemption price percentage | 103% | |||||
Debt Instrument Principle Percentage Redemption Three | Second Lien Notes [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price percentage | 100% |
Long Term Debt - Summary of Car
Long Term Debt - Summary of Carrying Value of Long-term Debt, Net of Unamortized Discount, Premium and Debt Issuance Costs (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total Long-Term Debt | $ 533,514 | $ 360,644 |
Second Lien Notes [Member] | Payment in Kind Rate [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 0 | 83,976 |
Second Lien Notes [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 533,514 | 0 |
Exit Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | 0 | 177,478 |
Exit Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Debt | $ 0 | $ 99,190 |
Long-Term Debt - Summary of Car
Long-Term Debt - Summary of Carrying Value of Long-term Debt, Net of Unamortized Discount, Premium and Debt Issuance Costs (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 23, 2021 |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 550 | $ 550 | |
First Lien Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 85.3 | ||
First Lien Notes [Member] | Cash Pay Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of senior notes | 9% | 9% | 9% |
First Lien Notes [Member] | Cash Pay Rate and Payment in Kind Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of senior notes | 11% | 11% | 11% |
First Lien Notes [Member] | Payment in Kind Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of senior notes | 13% | 13% | 13% |
Exit Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 100 | $ 100 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt - Debt Instrument Redemption (Detail) - Senior Notes [Member] - Second Lien Notes [Member] | Sep. 21, 2023 |
Redemption Year, 2026 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption Price | 104.25% |
Redemption Year, 2027 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption Price | 102.13% |
Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Redemption Price | 100% |
Long Term Debt - Summary of Agg
Long Term Debt - Summary of Aggregate Annual Maturity of Senior Secured Second Lien Notes (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Thereafter | $ 550,000 |
Total maturities of long-term debt | $ 550,000 |
Long-Term Debt - Amended Revolv
Long-Term Debt - Amended Revolving Credit Agreement - Additional Information (Detail) - USD ($) | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||||||
Feb. 23, 2024 | Oct. 24, 2023 | Sep. 21, 2023 | Sep. 12, 2023 | Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 11, 2023 | |
Debt Instrument [Line Items] | |||||||||
Loss on retirement of debt | $ 0 | $ 0 | $ (6,529,000) | $ 0 | |||||
Senior Secured Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount available for general purposes | 400,000,000 | ||||||||
Sublimit for issuance of letters of credit | 100,000,000 | ||||||||
Exit Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount available for general purposes | $ 25,000,000 | ||||||||
Amended Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 189,000,000 | ||||||||
Amount available for general purposes | $ 50,000,000 | $ 300,000,000 | $ 400,000,000 | ||||||
Aggregate amount of available cash triggering repayment of debt | $ 125,000,000 | ||||||||
Minimum line of credit collateral coverage ratio | 2% | ||||||||
Minimum line of credit total collateral coverage ratio | 1.30% | ||||||||
Commitment premium percentage | 0.50% | ||||||||
Debt instrument covenant description | The Amended RCF contains negative covenants that limit, among other things, the ability of each of DODI, DFAC and their 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) prepay, 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. | ||||||||
Line of credit | $ 1,900,000 | ||||||||
Loss on retirement of debt | $ 1,300,000 | ||||||||
Reduction in issuance of additional letters of credit | $ 0 | ||||||||
Amended Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit | 298,100,000 | ||||||||
Reduction in issuance of additional letters of credit | $ 0 | ||||||||
Amended Revolving Credit Facility [Member] | Letter of Credit [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount available for general purposes | $ 50,000,000 | ||||||||
Amended Revolving Credit Facility [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate amount of available cash | $ 125,000,000 | ||||||||
Amended Revolving Credit Facility [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Total collateral coverage ratio | 1.30% | ||||||||
Collateral coverage ratio | 2% |
Long-Term Debt - Exit Term Loan
Long-Term Debt - Exit Term Loan - Additional Information (Detail) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |||
Apr. 23, 2021 | Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Debt Instrument [Line Items] | ||||||
Loss on retirement of debt | $ 0 | $ 0 | $ (6,529) | $ 0 | ||
Exit Term Loan Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loss on retirement of debt | 700 | |||||
Senior Secured Term Loan Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes | $ 100,000 | 100,000 | $ 100,000 | |||
Debt instrument maturity date | Apr. 22, 2027 | Apr. 22, 2027 | ||||
Debt instrument carrying amount | $ 100,000 | $ 100,000 | $ 100,000 | |||
Debt instrument, interest rate term description | The Exit Term Loans bore interest at a rate per annum equal to the applicable margin plus, at the borrower’s option, either (a) the reserve-adjusted LIBOR Rate (as defined in the Exit Term Loan Credit Agreement) subject to a floor of 1.00% (or LIBOR Rate Term Loans), or (b) a base rate (or Base Rate Term Loans), subject to a floor of 2.00%, determined as the greatest of (i) the Wells Fargo Prime Rate (as defined in the Exit Term Loan Credit Agreement), (ii) the federal funds effective rate plus ½ of 1.00%, and (iii) the reserve-adjusted one-month LIBOR Rate plus 1.00%. The margin applicable to LIBOR Rate Term Loans was 6.00%. Interest on Base Rate Term Loans was paid quarterly. | |||||
Senior Secured Term Loan Credit Agreement [Member] | Base Rate Subject to Floor [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2% | |||||
Senior Secured Term Loan Credit Agreement [Member] | Federal Funds Effective Rate Plus [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Senior Secured Term Loan Credit Agreement [Member] | Reserve-Adjusted One Month LIBOR Rate Plus [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Senior Secured Term Loan Credit Agreement [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 6% | |||||
Senior Secured Term Loan Credit Agreement [Member] | LIBOR Rate Subject to Floor [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1% |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured First Lien PIK Toggle Notes due 2027 - Additional Information (Detail) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 23, 2021 | Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Loss on retirement of debt | $ 0 | $ 0 | $ (6,529) | $ 0 | |
First Lien Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 85,300 | ||||
Percentage of debt instrument payment | 104% | ||||
Call premium paid | $ 3,400 | ||||
Loss on retirement of debt | (600) | ||||
Unamortized premium deferred arrangement fees | $ 1,700 | ||||
Debt instrument maturity date | Apr. 22, 2027 | Apr. 22, 2027 | |||
Unfunded delayed draw commitments | $ 39,700 | ||||
Debt instrument frequency of periodic payment | semi-annually | ||||
Debt instrument, commitment fee on undrawn principal amount | 3% | ||||
Debt instrument par value percentage | 101% | ||||
Redeemed aggregate principal amount | $ 85,300 | ||||
Cash Pay Rate [Member] | First Lien Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate of senior notes | 9% | 9% | 9% | 9% | |
Cash Pay Rate and Payment in Kind Rate [Member] | First Lien Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate of senior notes | 11% | 11% | 11% | 11% | |
Payment in Kind Rate [Member] | First Lien Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate of senior notes | 13% | 13% | 13% | 13% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Feb. 29, 2016 | Dec. 31, 2023 | Dec. 31, 2022 | |
Contingencies And Commitments [Line Items] | |||
Estimated sales tax and related penalties and interest | $ 12,700 | $ 12,400 | |
Range of deductible for liability coverage for personal injury claims, upper limit | 100,000 | ||
Purchase obligations | 0 | ||
Annual payments due under service agreement | 37,533 | ||
Total remaining payments due under service agreement | 193,180 | ||
Maximum [Member] | |||
Contingencies And Commitments [Line Items] | |||
Range of deductible for liability coverage for personal injury claims, upper limit | 5,000 | ||
Minimum [Member] | |||
Contingencies And Commitments [Line Items] | |||
Range of deductible for liability coverage for personal injury claims, upper limit | 1,000 | ||
Total Contingent Liabilities Under Letters of Credit and Bonds [Member] | |||
Contingencies And Commitments [Line Items] | |||
Contingent liability under letters of credit and other bonds | 1,900 | ||
Services Agreement [Member] | |||
Contingencies And Commitments [Line Items] | |||
Maturity of service arrangement | 10 years | ||
Annual payments due under service agreement | 26,400 | ||
Total remaining payments due under service agreement | 96,200 | ||
Consumables and Capital Spare Parts [Member] | |||
Contingencies And Commitments [Line Items] | |||
Total remaining payments due under service agreement | 37,000 | ||
Windstorms in U.S. Gulf of Mexico [Member] | |||
Contingencies And Commitments [Line Items] | |||
Deductible for marine liability coverage including personal injury claims, per first occurrence | 10,000 | ||
Range of deductible for liability coverage for personal injury claims, upper limit | 100,000 | ||
Personal Injury Claims [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | 14,600 | 18,300 | |
Personal Injury Claims [Member] | Accrued Liabilities [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | 7,400 | 3,700 | |
Personal Injury Claims [Member] | Other Liabilities [Member] | |||
Contingencies And Commitments [Line Items] | |||
Personal injury claims recorded | $ 7,200 | $ 14,600 |
Leases and Lease Commitments -
Leases and Lease Commitments - Additional Information (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee Lease Description [Line Items] | ||||
Options to extend the leases | 5 years | |||
Operating cash flows used for operating leases | $ 10,817 | $ 12,005 | $ 15,014 | $ 19,031 |
Sale and Lease-back Equipment [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease term | 10 years | |||
Sale and Lease-back Equipment [Member] | ASC 842 | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease term | 10 years | |||
Options to extend the leases | 5 years | |||
Operating cash flows used for operating leases | $ 26,000 | |||
Sale lease back transaction renewal term description | renewal options for two successive five-year periods | |||
Minimum [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease term | 1 month | |||
Maximum [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease term | 10 years | |||
Options to terminate the leases | 1 year |
Leases and Lease Commitments _2
Leases and Lease Commitments - Schedule of Amounts Recognized in Unaudited Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating leases, right of use asset | $ 37,876 | $ 30,332 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Operating leases, lease liabilities current | $ (8,436) | $ (13,480) |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Operating leases, lease liabilities noncurrent | $ (29,438) | $ (16,542) |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Finance leases, right-of-use-asset | $ 128,303 | $ 145,510 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization | Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization |
Current finance lease liabilities | $ (15,960) | $ (16,965) |
Noncurrent finance lease liabilities | $ (113,201) | $ (131,393) |
Leases and Lease Commitments _3
Leases and Lease Commitments - Components of Lease Expense (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Leases [Abstract] | |||||
Operating lease cost | $ 11,799 | $ 11,754 | $ 15,712 | $ 19,479 | |
Amortization of ROU assets | 11,854 | 17,207 | 17,207 | ||
Interest on lease liabilities | 7,796 | 9,315 | 10,415 | ||
Short-term lease cost | 101 | 199 | 101 | 242 | |
Variable lease cost | [1] | 598 | 1,237 | 107,848 | 12,804 |
Total lease cost | $ 12,498 | $ 32,840 | $ 150,183 | $ 60,147 | |
[1] Includes charter expenses incurred post-commencement of drilling operations for the managed rigs. |
Leases and Lease Commitments _4
Leases and Lease Commitments - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Leases [Abstract] | |||||
Operating cash flows used for operating leases | $ 10,817 | $ 12,005 | $ 15,014 | $ 19,031 | |
ROU assets obtained in exchange for lease liabilities | $ 1,076 | $ 19,064 | $ 21,027 | $ 8,662 | |
Weighted-average remaining lease term | [1] | 5 years 10 months 24 days | 4 years 4 months 24 days | 4 years 7 months 6 days | 4 years |
Weighted-average discount rate | [1] | 6.89% | 7% | 9% | 7% |
Operating cash flows used | $ 7,796 | $ 9,315 | $ 10,415 | ||
Financing cash flows used | $ 0 | 9,845 | 16,965 | 15,865 | |
ROU assets obtained in exchange for lease liabilities | $ 174,571 | $ 0 | $ 0 | ||
Weighted-average remaining lease term | [1] | 4 years 6 months | 2 years 6 months | 3 years 6 months | |
Weighted-average discount rate | [1] | 7% | 7% | 7% | |
[1] Amounts represent the weighted average remaining lease term or discount rate as of the end of the respective period presented. |
Leases and Lease Commitments _5
Leases and Lease Commitments - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 11,181 |
2025 | 9,658 |
2026 | 9,386 |
2027 | 8,566 |
2028 | 4,771 |
Thereafter | 2,788 |
Operating Leases, Total lease payments | 46,350 |
Less: Interest | (8,476) |
Operating lease liabilities | 37,874 |
2024 | 26,352 |
2025 | 26,280 |
2026 | 94,198 |
Finance Leases, Total lease payments | 146,830 |
Less: Interest | (17,669) |
Finance lease liabilities | 129,161 |
2024 | 37,533 |
2025 | 35,938 |
2026 | 103,584 |
2027 | 8,566 |
2028 | 4,771 |
Thereafter | 2,788 |
Total lease payments | 193,180 |
Less: Interest | (26,145) |
Total lease liability | $ 167,035 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Apr. 23, 2021 | Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 30, 2021 | |
Income Tax Contingency [Line Items] | |||||||
Estimated amount of cancellation of debt income | $ 1,300,000 | ||||||
Net tax benefit related to tax law change | $ 187,389 | $ 1,730 | 1,141 | $ 4,345 | |||
Net operating loss carryforwards, or NOLs | 252,732 | 412,152 | |||||
Deferred tax asset relates to NOL carryforwards | 139,100 | ||||||
Net operating loss carryforwards to expire | $ 273,000 | ||||||
Net operating loss carryforwards expiring years | 2024 and 2037 | ||||||
Foreign tax credit carryback | $ 2,600 | ||||||
Deferred tax assets for foreign tax credits | 28,769 | 27,223 | |||||
Uncertain tax position recorded for current year | 3,553 | 7,391 | 5,993 | ||||
Reductions related to statute of limitation expirations | 1,841 | 8,777 | 3,878 | 1,760 | |||
Valuation allowance of net operating losses | 629,700 | ||||||
Net liability for uncertain tax positions | 26,678 | $ 26,678 | 21,148 | 24,565 | 21,540 | $ 214,626 | |
Net increase in uncertain tax positions from prior years | $ 1,282 | 1,424 | 705 | 504 | |||
Net unrecognized tax benefits that would affect the effective tax rate | 48,900 | 48,600 | 36,000 | ||||
Accrued interest on uncertain tax positions | 2,100 | 3,100 | |||||
Accrued penalties on uncertain tax positions | 25,000 | 12,600 | |||||
Interest expense (benefit) recognized related to uncertain tax positions | 100 | 1,800 | 800 | 900 | |||
Penalties recognized related to uncertain tax positions | $ (400) | 40 | 16,600 | 1,000 | |||
Tax Year 2014 Through 2024 [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Decrease in unrecognized tax benefit | 700 | ||||||
Other Assets [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net liability for uncertain tax positions | 300 | 200 | |||||
Deferred Tax Liability [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net liability for uncertain tax positions | 1,700 | 2,200 | 1,500 | ||||
Other Liabilities [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net liability for uncertain tax positions | $ 47,600 | 46,400 | 34,700 | ||||
United States [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net tax benefit related to tax law change | 1,100 | $ 4,300 | |||||
Deferred tax assets for foreign tax credits | 28,700 | ||||||
U.S. Federal [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net operating loss carryforwards, or NOLs | 57,700 | ||||||
Foreign [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Net operating loss carryforwards, or NOLs | 195,000 | ||||||
Egyptian Tax Authority [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Penalties recognized related to uncertain tax positions | $ 16,400 | ||||||
Egyptian Tax Authority [Member] | Tax Year 2006 Through 2008 [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Uncertain tax liability | $ 17,700 | ||||||
Foreign Tax Credit Carryforwards [Member] | United States [Member] | |||||||
Income Tax Contingency [Line Items] | |||||||
Foreign tax credits expiration periods | between 2023 and 2028 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax (Benefit) Expense (Detail) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Federal – current | $ 171 | $ 3,645 | $ 8,375 | $ 1,267 |
State – current | 10 | 10 | ||
Foreign – current | (3,681) | 1,491 | 27,215 | (4,151) |
Total current | (3,510) | 5,136 | 35,600 | (2,874) |
Federal – deferred | (30,955) | (6,742) | 6,580 | 4,538 |
Foreign – deferred | (4,939) | 3,260 | (11,197) | (4,059) |
Total deferred | (35,894) | (3,482) | (4,617) | 479 |
Income tax (benefit) expense | $ (39,404) | $ 1,654 | $ 30,983 | $ (2,395) |
Income Taxes - Difference Betwe
Income Taxes - Difference Between Actual Income Tax Expense and Tax Provision Computed by Applying Statutory Federal Income Tax Rate to Income Before Taxes (Detail) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
(Loss) income before income tax expense: | ||||
U.S. | $ 686,202 | $ (1,048) | $ 443 | $ (7,054) |
Foreign | (2,687,595) | (174,642) | (14,166) | (98,552) |
Loss before income tax (expense) benefit | (2,001,393) | (175,690) | (13,723) | (105,606) |
Expected income tax benefit at federal statutory rate | (420,292) | (36,895) | (2,882) | (22,177) |
Withholding taxes | 486 | |||
Effect of tax rate changes | 9,871 | |||
Reorganization items | (225,563) | 266 | ||
Post-petition interest expense | (6,771) | |||
Disallowed officers' compensation and restricted stock unit awards | (459) | 2,205 | ||
Interest and penalties reported as income tax expense | 831 | 3,318 | ||
Effect of foreign operations | 163,236 | 79,600 | 32,384 | 12,639 |
Valuation allowance | 515,421 | (45,919) | (20,527) | (23,135) |
Uncertain tax positions, settlements and adjustments relating to prior years | (67,626) | (7,220) | 21,039 | 25,692 |
Other | 2,191 | 1,951 | 111 | (937) |
Income tax (benefit) expense | $ (39,404) | $ 1,654 | $ 30,983 | $ (2,395) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards, or NOLs | $ 252,732 | $ 412,152 |
Foreign tax credits | 28,769 | 27,223 |
Disallowed interest deduction | 66,632 | 69,604 |
Worker’s compensation and other current accruals | 5,808 | 6,273 |
Deferred deductions | 7,078 | 7,661 |
Deferred revenue | 1,467 | 33 |
Operating lease liability | 19,744 | 22,011 |
Property, plant and equipment | 332,981 | 129,938 |
Other | 5,617 | 7,234 |
Total deferred tax assets | 720,828 | 682,129 |
Valuation allowance | (629,665) | (650,193) |
Net deferred tax assets | 91,163 | 31,936 |
Deferred tax liabilities: | ||
Right-of-use assets | (18,964) | (21,374) |
'Property, Plant and Equipment | (56,409) | |
Other | (1,197) | (652) |
Total deferred tax liabilities | (76,570) | (22,026) |
Net deferred tax asset | $ 14,593 | $ 9,910 |
Income Taxes - Summary of Rollf
Income Taxes - Summary of Rollforward of Beginning and Ending Amount of Unrecognized Tax Benefits, Excluding Interest and Penalties (Detail) - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits, Beginning Balance | $ (214,626) | $ (26,678) | $ (21,540) | $ (21,148) |
Additions for current year tax positions | (3,553) | (7,391) | (5,993) | |
Additions for prior year tax positions | (1,282) | (1,424) | (705) | (504) |
Reductions for prior year tax positions | 187,389 | 1,730 | 1,141 | 4,345 |
Reductions related to statute of limitation expirations | 1,841 | 8,777 | 3,878 | 1,760 |
Reductions related to settlements with taxing authorities | 52 | |||
Unrecognized Tax Benefits, Ending Balance | $ (26,678) | $ (21,148) | $ (24,565) | $ (21,540) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
US Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employers percentage matching of first 5% of each employee's qualifying annual compensation | 100% | 50% | |||
Defined Contribution Plan, Matching Contribution per employee by the company | 4% | 6% | |||
Defined contribution plan, cost recognized | $ 0 | $ 0 | $ 5.4 | $ 3.2 | |
UK Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution plan, cost recognized | 0.3 | 0.6 | $ 1.8 | $ 0.9 | |
UK Plan [Member] | U. K. Sector of North Sea [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Contribution Plan, Matching Contribution by the company | 5.25% | 4% | 4% | ||
International Savings Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employers percentage matching of first 5% of each employee's qualifying annual compensation | 100% | 50% | |||
Defined Contribution Plan, Matching Contribution per employee by the company | 4% | 6% | |||
Defined contribution plan, cost recognized | $ 0 | $ 0 | $ 0.1 | $ 0.1 |
Segments and Geographic Area _3
Segments and Geographic Area Analysis - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2023 Country Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 1 |
Number of countries with rigs | Country | 4 |
Customer Concentration Risk [Member] | Revenues [Member] | |
Segment Reporting Information [Line Items] | |
Concentration risk benchmark | contributed more than 10% of our total revenues |
Segments and Geographic Area _4
Segments and Geographic Area Analysis - Summary of Information about Disaggregated Revenue by Equipment-type and Country (Detail) - USD ($) $ in Thousands | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 169,379 | $ 556,066 | $ 1,056,179 | $ 841,278 |
Contract Drilling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 153,364 | 465,328 | 983,983 | 724,744 |
Reimbursable Expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 16,015 | 90,738 | 72,196 | 116,534 |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 100,263 | 250,383 | 549,871 | 397,090 |
United States [Member] | Contract Drilling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 93,215 | 194,912 | 513,226 | 322,021 |
United States [Member] | Reimbursable Expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 7,048 | 55,471 | 36,645 | 75,069 |
Australia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 21,728 | 110,733 | 77,103 | 107,021 |
Australia [Member] | Contract Drilling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 17,031 | 95,601 | 67,846 | 92,939 |
Australia [Member] | Reimbursable Expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 4,697 | 15,132 | 9,257 | 14,082 |
United Kingdom [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 30,267 | 59,104 | 183,602 | 74,594 |
United Kingdom [Member] | Contract Drilling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 27,967 | 55,245 | 168,894 | 66,116 |
United Kingdom [Member] | Reimbursable Expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 2,300 | 3,859 | 14,708 | 8,478 |
Senegal [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 58,868 | 180,809 | 166,503 | |
Senegal [Member] | Contract Drilling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 48,758 | 169,223 | 154,574 | |
Senegal [Member] | Reimbursable Expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 10,110 | 11,586 | 11,929 | |
Brazil [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 3,421 | 42,215 | 64,794 | 80,185 |
Brazil [Member] | Contract Drilling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 3,421 | 42,215 | $ 64,794 | 80,185 |
Myanmar [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 13,700 | 34,763 | 15,885 | |
Myanmar [Member] | Contract Drilling [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 11,730 | 28,597 | 8,909 | |
Myanmar [Member] | Reimbursable Expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 1,970 | $ 6,166 | $ 6,976 |
Segments and Geographic Area _5
Segments and Geographic Area Analysis - Long-Lived Tangible Assets by Country (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net book value of assets | $ 1,156,368 | $ 1,141,908 | $ 1,175,895 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net book value of assets | 543,930 | 362,813 | 559,288 |
Senegal [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net book value of assets | 169,627 | 352,655 | 188,694 |
Spain [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net book value of assets | 142,930 | ||
Australia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net book value of assets | 98,793 | 91,089 | 106,173 |
United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net book value of assets | 251,049 | 256,837 | 98,338 |
Brazil [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net book value of assets | 86,057 | 69,596 | 76,383 |
Other Countries [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net book value of assets | 6,912 | 8,918 | 4,089 |
International [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net book value of assets | $ 612,438 | $ 779,095 | $ 616,607 |
Segments and Geographic Area _6
Segments and Geographic Area Analysis - Long-Lived Tangible Assets by Country (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2023 | |
Other Countries [Member] | Drilling and Other Property and Equipment , Net of Accumulated Depreciation [Member] | Maximum [Member] | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Concentration risk percentage | 5% |
Segments and Geographic Area _7
Segments and Geographic Area Analysis - Revenues from Major Customers that Contributed More than 10% of Total Revenues (Detail) - Revenues [Member] - Customer Concentration Risk [Member] | 4 Months Ended | 8 Months Ended | 12 Months Ended | |
Apr. 23, 2021 | Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
BP [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenues from major customers | 39.80% | 25.40% | 48.40% | 33.10% |
Woodside [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenues from major customers | 0.50% | 22.40% | 21.50% | 29.70% |
Oxy [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenues from major customers | 21.40% | 11.50% | 2.90% | 3.90% |