Diamond Offshore Drilling (DODRW) 8-K Diamond Offshore Announces First Quarter 2015 Results

Exhibit 99.1

Contact: Darren Daugherty Director, Investor Relations (281) 492-5370

Diamond Offshore Announces First Quarter 2015 Results

• Reports loss of $1.86 per share

• Records impairment charge of $319 million after tax, or $2.33 per share

• Records restructuring charge of $4 million after tax, or $0.03 per share

• Declares Regular Cash Dividend of $0.125 per share

• Announces plans to scrap three mid-water semisubmersibles

HOUSTON, May 4, 2015 — Diamond Offshore Drilling, Inc. (NYSE: DO) today reported a net loss of $256 million, or $1.86 per share, in the first quarter of 2015, compared to net income of $146 million, or $1.05 per share, in the first quarter of 2014. Revenues in the first quarter of 2015 were $620 million, compared to revenues of $709 million in the first quarter of 2014.

Results for the quarter included a non-cash charge of $319 million after tax, or $2.33 per share, associated with the impairment of eight drilling units, three of which are to be retired and scrapped. The units to be retired are the mid-water semisubmersiblesOcean Saratoga,Ocean Worker andOcean Yorktown, which are all cold stacked in the U.S. Gulf of Mexico. Other rigs included in the impairment group are the mid-water semisubmersiblesOcean Ambassador,Ocean General,Ocean Lexington,Ocean Nomad and the drillshipOcean Clipper.

The Company also recognized a charge during the quarter of $4 million after tax, or $0.03 per share, related to restructuring and employee separation-related costs.

“We have continued to implement cost savings measures while maintaining our focus on safe operations and delivering performance for our clients,” said Marc Edwards, President and Chief Executive Officer. “Our first-quarter safety statistics were the best that we have recorded.”

“During the second quarter, our next two newbuild drillships will begin working in the Gulf of Mexico, and the yard will complete our fourth drillship, which will also be headed to the U.S., where all four of drillships will work on term contracts extending into 2019 or beyond,” added Mr. Edwards.

In addition, the Company announced that it has declared a regular quarterly dividend of $0.125 per share, payable on June 1, 2015 to shareholders of record as of May 15, 2015.

CONFERENCE CALL

A conference call to discuss Diamond Offshore’s earnings results has been scheduled for 7:30 a.m. CDT today. A live webcast of the call will be available online on the Company’s website, www.diamondoffshore.com. Those interested in participating in the question and answer session should dial 800-247-9979 or 973-321-1100, for international callers. The conference ID number is 22913137. An online replay will also be available on www.diamondoffshore.com following the call.

ABOUT DIAMOND OFFSHORE

Diamond Offshore is a leader in offshore drilling, providing contract drilling services to the energy industry around the globe with a total fleet of 35 offshore drilling rigs, including two rigs under construction. Diamond Offshore’s fleet consists of 24 semisubmersibles, one of which is under construction, five dynamically positioned drillships, one of which is under construction, and six jack-ups. Additional information about the Company and access to the Company’s SEC filings are available at www.diamondoffshore.com. Diamond Offshore is owned 53% by Loews Corporation (NYSE: L).

FORWARD-LOOKING STATEMENTS

Statements contained in this press release or made during the above conference call that are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. Such statements include, but are not limited to, statements concerning drilling rig deliveries, operations and timing; contract effectiveness, effective dates and estimated duration; plans regarding retirement and scrapping of drilling rigs; future impairments; future dividends; expectations of future backlog, revenue, operating costs and performance; future liquidity, financial condition, market conditions, commodity prices and strategic opportunities; revenue expected to result from backlog; future credit ratings; future dayrates, future status, start and end dates and future contracts and availability; future contract opportunities and termination rights; contract noncompliance by customers and other third parties; utilization, surveys, downtime and other aspects of the Company’s drilling rigs; statements concerning customer discussions and outcomes thereof and the impact of these and related events on the Company’s operations and revenues; rigs being upgraded or to be upgraded and rigs under construction; and other statements that are not of historical fact. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Company’s overall business and financial performance can be found in the Company’s reports filed with the Securities and Exchange Commission, and readers of this press release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company’s website at www.diamondoffshore.com. These risk factors include, among others, risks associated with worldwide demand for drilling services, level of activity in the oil and gas industry, renewing or replacing expired or terminated contracts, contract cancellations and terminations, maintenance and realization of backlog, competition and industry fleet capacity, impairments and retirements, declaration of dividends, operating risks, changes in tax laws and rates, regulatory initiatives and compliance with governmental regulations, construction of new builds, casualty losses, and various other factors, many of which are beyond the Company’s control. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

	Three Months Ended March 31,
	2015			2014
Revenues:
Contract drilling	$	599,577		$	685,308
Revenues related to reimbursable expenses		20,479			24,116
Total revenues		620,056			709,424
Operating expenses:
Contract drilling, excluding depreciation		350,658			369,790
Reimbursable expenses		20,092			23,666
Depreciation		137,299			107,011
General and administrative		17,452			22,827
Impairment of assets		358,528			—
Restructuring and separation costs		6,168			—
Gain on disposition of assets		(611	)		(147	)
Total operating expenses		889,586			523,147
Operating (loss) income		(269,530	)		186,277
Other income (expense):
Interest income		583			408
Interest expense		(23,982	)		(18,155	)
Foreign currency transaction gain (loss)		5,590			(1,178	)
Other, net		221			327
(Loss) income before income tax (benefit) expense		(287,118	)		167,679
Income tax benefit (expense)		31,409			(21,869	)
Net (loss) income	$	(255,709	)	$	145,810
(Loss) income per share	$	(1.86	)	$	1.05
Weighted average shares outstanding:
Shares of common stock		137,151			138,469
Dilutive potential shares of common stock		—			4
Total weighted average shares outstanding		137,151			138,473

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS

(Unaudited)

(In thousands)

	Three Months Ended
	Mar 31,			Dec 31,			Mar 31,
	2015			2014			2014
REVENUES
Floaters:
Ultra-Deepwater	$	251,396		$	285,991		$	205,794
Deepwater		138,770			115,777			146,559
Mid-water		176,357			231,933			285,979
Total Floaters		566,523			633,701			638,332
Jack-ups		33,054			40,675			46,976
Total Contract Drilling Revenue	$	599,577		$	674,376		$	685,308
Revenues Related to Reimbursable Expenses	$	20,479		$	945		$	24,116
CONTRACT DRILLING EXPENSE
Floaters:
Ultra-Deepwater	$	154,539		$	133,103		$	123,530
Deepwater		63,675			66,093			71,949
Mid-water		99,320			119,763			134,046
Total Floaters		317,534			318,959			329,525
Jack-ups		21,570			25,268			28,029
Other		11,554			14,428			12,236
Total Contract Drilling Expense	$	350,658		$	358,655		$	369,790
Reimbursable Expenses	$	20,092		$	698		$	23,666
OPERATING INCOME
Floaters:
Ultra-Deepwater	$	96,857		$	152,888		$	82,264
Deepwater		75,095			49,684			74,610
Mid-water		77,037			112,170			151,933
Total Floaters		248,989			314,742			308,807
Jack-ups		11,484			15,407			18,947
Other		(11,554	)		(14,428	)		(12,236	)
Reimbursable expenses, net		387			247			450
Depreciation		(137,299	)		(131,712	)		(107,011	)
General and administrative expense		(17,452	)		(19,923	)		(22,827	)
Bad debt recovery		—			—			—
Gain (loss) on disposition of assets		611			(2,230	)		147
Impairment of assets		(358,528	)		—			—
Restructuring and separation costs		(6,168	)		—			—
Total Operating (Loss) Income	$	(269,530	)	$	162,103		$	186,277

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

	March 31,		December 31,
	2015		2014
ASSETS
Current assets:
Cash and cash equivalents	$	184,775	$	233,623
Marketable securities		14,016		16,033
Accounts receivable, net of allowance for bad debts		445,685		463,862
Prepaid expenses and other current assets		199,321		185,541
		843,797		899,059
Drilling and other property and equipment, net of accumulated depreciation		6,574,142		6,945,953
Other assets		117,890		176,277
Total assets	$	7,535,829	$	8,021,289
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	249,979	$	249,962
Other current liabilities		521,079		606,684
Long-term debt		1,994,587		1,994,526
Deferred tax liability		413,009		530,394
Other liabilities		177,329		188,160
Stockholders’ equity		4,179,846		4,451,563
Total liabilities and stockholders’ equity	$	7,535,829	$	8,021,289

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

AVERAGE DAYRATES AND UTILIZATION

(Dayrate in thousands)

	First Quarter 2015								Fourth Quarter 2014								First Quarter 2014
	Average Dayrate (1)		Utilization (2)			Operational Efficiency (3)			Average Dayrate (1)		Utilization (2)			Operational Efficiency (3)			Revised Average Dayrate (4)		Utilization (2)			Operational Efficiency (3)
Ultra-Deepwater Floaters	$	497		51	%		81.5	%	$	493		66	%		90.2	%	$	401		66	%		95.3	%
Deepwater Floaters	$	486		45	%		95.1	%	$	431		48	%		97.3	%	$	427		64	%		96.0	%
Mid-Water floaters	$	266		49	%		94.1	%	$	270		55	%		96.8	%	$	278		64	%		94.4	%
Jack-ups	$	92		66	%		99.4	%	$	96		77	%		99.5	%	$	94		79	%		99.9	%
Fleet Total							91.2	%							95.5	%							95.9	%

(1) Average dayrate is defined as contract drilling revenue for all of the specified rigs in our fleet per revenue earning day. A revenue earning day is defined as a 24-hour period during which a rig earns a dayrate after commencement of operations and excludes mobilization, demobilization and contract preparation days.

(2) Utilization is calculated as the ratio of total revenue-earning days divided by the total calendar days in the period for all specified rigs in our fleet—including cold-stacked rigs, but excluding rigs under construction. As of May 4, 2015, one deepwater and four mid-water semisubmersible rigs and three jack-up rigs were cold stacked.

(3) Operational efficiency is calculated as the ratio of total revenue-earning days divided by the sum of total revenue-earning days plus the number of days (or portions thereof) associated with unanticipated equipment downtime.

(4) Average dayrate reported in prior periods has been revised to conform to current presentation.