Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 01, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | DIAMOND OFFSHORE DRILLING, INC. | |
Entity Central Index Key | 0000949039 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding | 100,074,948 | |
Entity Current Reporting Status | Yes | |
Entity File Number | 1-13926 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 76-0321760 | |
Entity Address, Address Line One | 15415 Katy Freeway | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77094 | |
City Area Code | 281 | |
Local Phone Number | 492-5300 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 27,296 | $ 405,869 |
Restricted cash | 24,266 | 24,511 |
Accounts receivable | 175,633 | 136,222 |
Less: allowance for credit losses | (5,614) | (5,562) |
Accounts receivable, net | 170,019 | 130,660 |
Prepaid expenses and other current assets | 62,101 | 62,275 |
Assets held for sale | 1,000 | 2,000 |
Total current assets | 284,682 | 625,315 |
Drilling and other property and equipment, net of accumulated depreciation | 1,328,825 | 4,122,809 |
Other assets | 78,226 | 200,329 |
Total assets | 1,691,733 | 4,948,453 |
Current liabilities: | ||
Accounts payable | 35,725 | 33,437 |
Accrued liabilities | 134,186 | 140,788 |
Taxes payable | 29,245 | 27,214 |
Current finance lease liabilities | 15,599 | |
Total current liabilities | 214,755 | 201,439 |
Long-term debt | 306,145 | |
Noncurrent finance lease liabilities | 152,457 | |
Deferred tax liability | 2,433 | 28,338 |
Other liabilities | 128,122 | 117,305 |
Commitments and contingencies (Note 11) | ||
Total liabilities not subject to compromise | 803,912 | 347,082 |
Liabilities subject to compromise | 2,618,805 | |
Total liabilities | 803,912 | 2,965,887 |
Stockholders’ equity: | ||
Predecessor preferred stock (par value $0.01, 25,000 shares authorized, none issued and outstanding) and Successor preferred stock (par value of $0.0001, 50,000 shares authorized, none issued and outstanding | ||
Predecessor common stock (par value $0.01, 500,000 shares authorized; 145,264 shares issued and 138,054 shares outstanding at December 31, 2020) and Successor common stock (par value $0.0001, 750,000 shares authorized; 100,075 shares issued and outstanding at September 30, 2021) | 10 | 1,453 |
Predecessor treasury stock, at cost | (206,163) | |
Predecessor additional paid-in capital and Successor additional paid-in capital | 940,286 | 2,029,979 |
(Accumulated deficit) retained earnings | (52,475) | 157,297 |
Total stockholders’ equity | 887,821 | 1,982,566 |
Total liabilities and stockholders’ equity | $ 1,691,733 | $ 4,948,453 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.01 |
Common stock, shares authorized | 750,000,000 | 500,000,000 |
Common stock, shares issued | 100,075,000 | 145,264,000 |
Common stock, shares outstanding | 100,075,000 | 138,054,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Apr. 23, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | |||||
Total revenues | $ 213,877 | $ 138,257 | $ 169,379 | $ 328,788 | $ 565,630 |
Operating expenses: | |||||
Depreciation | 25,150 | 75,330 | 92,758 | 43,885 | 243,208 |
General and administrative | 20,976 | 12,781 | 15,036 | 37,193 | 44,827 |
Impairment of assets | 197,027 | 774,028 | |||
Restructuring and separation costs | 344 | 17,463 | |||
Gain on disposition of assets | (767) | (479) | (5,486) | (943) | (4,132) |
Total operating expenses | 210,613 | 227,475 | 496,438 | 352,672 | 1,584,767 |
Operating income (loss) | 3,264 | (89,218) | (327,059) | (23,884) | (1,019,137) |
Other income (expense): | |||||
Interest income | 2 | 22 | 30 | 3 | 520 |
Interest expense, net of amounts capitalized (excludes $37,834 of contractual interest expense on debt subject to compromise for the three-month period ended September 30, 2020) | (9,777) | (98) | (34,827) | (16,874) | (42,753) |
Foreign currency transaction gain (loss) | 1,173 | (661) | (172) | 259 | (1,458) |
Reorganization items, net | (1,916) | (8,663) | (1,639,763) | (7,454) | (62,640) |
Other, net | (14) | 107 | 398 | 10,692 | 349 |
Loss before income tax benefit (expense) | (7,268) | (98,511) | (2,001,393) | (37,258) | (1,125,119) |
Income tax benefit (expense) | 2,086 | (95) | 39,404 | (15,217) | 19,753 |
Net loss | $ (5,182) | $ (98,606) | $ (1,961,989) | $ (52,475) | $ (1,105,366) |
Loss per share, Basic and Diluted | $ (0.05) | $ (0.71) | $ (14.21) | $ (0.52) | $ (8.01) |
Weighted-average shares outstanding, Basic and Diluted | 100,075 | 138,054 | 138,054 | 100,068 | 137,976 |
Contract Drilling [Member] | |||||
Revenues: | |||||
Total revenues | $ 183,156 | $ 129,345 | $ 153,364 | $ 281,189 | $ 535,848 |
Operating expenses: | |||||
Contract drilling, excluding depreciation | 135,181 | 130,921 | 181,626 | 225,892 | 481,376 |
Reimbursable Expenses [Member] | |||||
Revenues: | |||||
Total revenues | 30,721 | 8,912 | 16,015 | 47,599 | 29,782 |
Operating expenses: | |||||
Contract drilling, excluding depreciation | $ 30,073 | $ 8,578 | $ 15,477 | $ 46,645 | $ 27,997 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Apr. 23, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | |||
Contractual interest expense of debt | $ 37,834 | $ 35,390 | $ 62,470 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Apr. 23, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net loss | $ (5,182) | $ (98,606) | $ (1,961,989) | $ (52,475) | $ (1,105,366) |
Other comprehensive losses, net of tax: | |||||
Reclassification adjustment for loss on derivative financial instruments included in net loss | 21 | 18 | |||
Total other comprehensive loss | 21 | 18 | |||
Comprehensive loss | $ (5,182) | $ (98,585) | $ (1,961,989) | $ (52,475) | $ (1,105,348) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Gains (Losses) [Member] |
Beginning Balance at Dec. 31, 2019 | $ 3,232,210 | $ 1,448 | $ 2,024,347 | $ 1,412,201 | $ (205,768) | $ (18) |
Beginning Balance, shares at Dec. 31, 2019 | 144,782,000 | 7,078,000 | ||||
Net loss | (1,105,366) | (1,105,366) | ||||
Stock-based compensation, net of tax | 5,242 | $ 5 | 5,632 | $ (395) | ||
Stock-based compensation, net of tax, shares | 482 | 132 | ||||
Net gain on derivative financial instruments | 18 | 18 | ||||
Ending Balance at Sep. 30, 2020 | 2,132,104 | $ 1,453 | 2,029,979 | 306,835 | $ (206,163) | |
Ending Balance, shares at Sep. 30, 2020 | 145,264,000 | 7,210,000 | ||||
Beginning Balance at Jun. 30, 2020 | 2,230,689 | $ 1,453 | 2,029,978 | 405,441 | $ (206,162) | (21) |
Beginning Balance, shares at Jun. 30, 2020 | 145,259,000 | 7,208,000 | ||||
Net loss | (98,606) | (98,606) | ||||
Stock-based compensation, net of tax | 1 | $ (1) | ||||
Stock-based compensation, net of tax, shares | 5 | 2 | ||||
Net gain on derivative financial instruments | 21 | $ 21 | ||||
Ending Balance at Sep. 30, 2020 | 2,132,104 | $ 1,453 | 2,029,979 | 306,835 | $ (206,163) | |
Ending Balance, shares at Sep. 30, 2020 | 145,264,000 | 7,210,000 | ||||
Beginning Balance at Dec. 31, 2020 | 1,982,566 | $ 1,453 | 2,029,979 | 157,297 | $ (206,163) | |
Beginning Balance, shares at Dec. 31, 2020 | 145,264,000 | 7,210,000 | ||||
Net loss | (1,961,989) | (1,961,989) | ||||
Cancellation of Predecessor equity | (20,577) | $ (1,453) | (2,029,979) | 1,804,692 | $ 206,163 | |
Cancellation of Predecessor equity, shares | (145,264,000) | (7,210,000) | ||||
Ending Balance at Apr. 23, 2021 | 934,810 | |||||
Ending Balance, shares at Apr. 23, 2021 | ||||||
Ending Balance at Apr. 23, 2021 | ||||||
Issuance of Successor equity | 934,810 | $ 10 | 934,800 | |||
Issuance of Successor equity, shares | 100,000,000 | |||||
Ending Balance at Apr. 24, 2021 | 934,810 | $ 10 | 934,800 | |||
Ending Balance, shares at Apr. 24, 2021 | 100,000,000 | |||||
Beginning Balance at Apr. 23, 2021 | 934,810 | |||||
Beginning Balance, shares at Apr. 23, 2021 | ||||||
Net loss | (52,475) | (52,475) | ||||
Stock-based compensation, net of tax | 5,486 | 5,486 | ||||
Stock-based compensation, net of tax, shares | 75,000 | |||||
Ending Balance at Sep. 30, 2021 | 887,821 | $ 10 | 940,286 | (52,475) | ||
Ending Balance, shares at Sep. 30, 2021 | 100,075,000 | |||||
Beginning Balance at Jun. 30, 2021 | 888,509 | $ 10 | 935,792 | (47,293) | ||
Beginning Balance, shares at Jun. 30, 2021 | 100,075,000 | |||||
Net loss | (5,182) | (5,182) | ||||
Stock-based compensation, net of tax | 4,494 | 4,494 | ||||
Ending Balance at Sep. 30, 2021 | $ 887,821 | $ 10 | $ 940,286 | $ (52,475) | ||
Ending Balance, shares at Sep. 30, 2021 | 100,075,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Apr. 23, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Operating activities: | ||||||||
Net loss | $ (1,961,989) | $ (52,475) | $ (1,105,366) | |||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation | $ 25,150 | $ 75,330 | 92,758 | 43,885 | 243,208 | |||
Loss on impairment of assets | 197,027 | 774,028 | ||||||
Reorganization items, net | 1,587,392 | 22,107 | ||||||
Gain on disposition of assets | (767) | (479) | (5,486) | (943) | (4,132) | |||
Deferred tax provision | (35,894) | 9,122 | (16,865) | |||||
Stock-based compensation expense | 5,822 | 5,637 | ||||||
Contract liabilities, net | 10,617 | 51,275 | 9,814 | |||||
Contract assets, net | (742) | (974) | 3,048 | |||||
Deferred contract costs, net | (12,034) | (14,971) | (2,578) | |||||
Long-term employee remuneration programs | 475 | 164 | (4,803) | |||||
Collateral deposits | 4,939 | (18,262) | ||||||
Other assets, noncurrent | 2,685 | (72) | (8,513) | |||||
Other liabilities, noncurrent | (371) | (1,354) | (3,240) | |||||
Other | 2,683 | 965 | 2,964 | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 2,108 | (40,668) | 107,148 | |||||
Prepaid expenses and other current assets | (2,791) | 2 | 3,957 | |||||
Accounts payable and accrued liabilities | 29,302 | (54,447) | (10,440) | |||||
Taxes payable | (5,804) | 8,759 | 9,728 | |||||
Net cash (used in) provided by operating activities | (100,064) | (40,971) | 7,440 | |||||
Investing activities: | ||||||||
Capital expenditures | (49,119) | (37,845) | (162,621) | |||||
Proceeds from sale of foreign bonds | 5,915 | |||||||
Proceeds from disposition of assets, net of disposal costs | 7,484 | 960 | 5,378 | |||||
Net cash used in investing activities | (41,635) | (36,885) | (151,328) | |||||
Financing activities: | ||||||||
(Repayments of) borrowings under Predecessor credit facility | (442,034) | 436,000 | ||||||
Borrowings on exit facilities | 200,000 | 50,000 | ||||||
Repayments of exit facilities | (30,000) | |||||||
Issuance of exit notes | 75,000 | |||||||
Debt issuance costs and arrangement fees | (6,218) | |||||||
Principal payments of finance lease liabilities | (6,011) | |||||||
Net cash provided by (used in) financing activities | (173,252) | 13,989 | 436,000 | |||||
Net change in cash, cash equivalents and restricted cash | (314,951) | (63,867) | 292,112 | |||||
Cash, cash equivalents and restricted cash, beginning of period | $ 448,393 | 430,380 | 115,429 | $ 430,380 | 156,281 | $ 156,281 | ||
Cash, cash equivalents and restricted cash, end of period | $ 51,562 | $ 430,380 | $ 448,393 | $ 115,429 | $ 51,562 | $ 51,562 | $ 448,393 | $ 430,380 |
General Information
General Information | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
General Information | 1. General Information The unaudited condensed consolidated financial statements of Diamond Offshore Drilling, Inc. and subsidiaries, which we refer to as “Diamond Offshore,” “we,” “us” or “our,” should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020, as amended by Amendment No. 1 on Form 10-K/A (File No. 1-13926). To facilitate our financial statement presentations, we refer to the post-emergence reorganized company in these unaudited condensed consolidated financial statements and footnotes as the “Successor” for periods subsequent to April 23, 2021 and to the pre-emergence company as the “Predecessor” for periods on or prior to April 23, 2021. This delineation between Predecessor periods and Successor periods is shown in the unaudited condensed consolidated financial statements, certain tables within the footnotes to the unaudited condensed consolidated financial statements and other parts of this Quarterly Report on Form 10-Q through the use of a black line, calling out the lack of comparability between periods. Interim Financial Information The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (or GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, pursuant to such rules and regulations, they do not include all disclosures required by GAAP for annual financial statements. The condensed consolidated financial information has not been audited but, in the opinion of management, includes all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of Diamond Offshore’s condensed consolidated balance sheets, statements of operations, statements of comprehensive loss, statements of stockholders’ equity and statements of cash flows at the dates and for the periods indicated. Results of operations for interim periods are not necessarily indicative of results of operations for the respective full years. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated. Restricted Cash We maintain restricted cash bank accounts, of which $24.2 million is subject to restrictions pursuant to a management and marketing services agreement with an offshore drilling company and $0.1 million is subject to restrictions pursuant to a court order, to settle certain professional fees incurred upon or prior to our emergence from bankruptcy. See Note 2 “Chapter 11 Proceedings.” We classify such restricted cash accounts in current assets if the restrictions are expected to expire or otherwise be resolved within one year or if such funds are considered to offset current liabilities. At September 30, 2021, our restricted cash was considered to be current and was recorded in “Restricted cash” in our unaudited Condensed Consolidated Balance Sheets. Change in Accounting Policies 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, which are not related to the recertification of the vessel are expensed as incurred. Costs for vessel improvements which either extend the vessel’s useful life or increase the vessels functionality are capitalized and depreciated. The company’s previous policy (Predecessor) was to expense vessel recertification costs in the period incurred . |
Chapter 11 Proceedings
Chapter 11 Proceedings | 9 Months Ended |
Sep. 30, 2021 | |
Reorganizations [Abstract] | |
Chapter 11 Proceedings | 2. Chapter 11 Proceedings Chapter 11 Cases As previously disclosed, 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) commenced voluntary cases (or the Chapter 11 Cases) for relief under chapter 11 (or Chapter 11) of title 11 of the United States 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., ., Case No. 20-32307 (DRJ). On and following the Petition Date, the Debtors filed motions with the Bankruptcy Court seeking authorization to continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the United States Bankruptcy Code (or the Bankruptcy Code) and orders of the Bankruptcy Court. 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 (or RCF). 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 . 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 is 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 to be designated, respectively, common stock and preferred stock. The total number of shares of capital stock that the Company shall have authority to issue is 800,000,000, consisting of 750,000,000 shares of common stock, having a par value of $0.0001 per share (or Common Stock), and 50,000,000 shares of preferred stock, having a par value of $0.0001 per share. On the Effective Date, pursuant to the Plan: • • • Emergence As of the Effective Date, 100,000,019 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 7,526,894 five-year Registration Rights Agreement On the Effective Date, the Company entered into a registration rights agreement (or the Registration Rights Agreement) with certain parties who received New Diamond Common Shares under the Plan (or the RRA Shareholders). The RRA Shareholders exercised their right to require the Company to file a shelf registration statement and on June 22, 2021, the Company filed a registration statement on Form S-1, as amended by Amendment No. 1 to Form S-1 filed August 27, 2021, to register 22,892,773 shares of Common Stock owned by the RRA Shareholders. The Company will not receive any proceeds from the sale of these shares and will bear all expenses associated with the registrations of such shares. As of the date of this report the registration statement is not yet effective. 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 senior secured revolving credit agreement (or the Exit Revolving Credit Agreement), which provides for a $400.0 million senior secured revolving credit facility, with a $100.0 million sublimit for the issuance of letters of credit thereunder (or the Exit RCF); • a senior secured term loan credit agreement (or the Exit Term Loan Credit Agreement), which provides for a $100.0 million senior secured term loan credit facility (or the Exit Term Loan Credit Facility and, together with the Exit RCF, the Exit Facilities), which is 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 (or the Exit 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 may be issued as additional First Lien Notes after the Effective Date (or the Last Out Incremental Debt), none of which had been issued as of September 30, 2021. See Note 10 “Prepetition Revolving Credit Facility, Senior Notes and Exit 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) cancelled (or otherwise eliminated) and received no distribution under the Plan or (ii) Reinstated at the Debtors’ option. Changes to Board of Directors and Executive Officers In accordance with the Plan, Anatol Feygin, Paul G. Gaffney II, Alan H. Howard, Peter McTeague, Kenneth I. Siegel and James S. Tisch resigned from the board of directors of the Company (or the Board) on the Effective Date. In addition, Marc Edwards resigned from his position as Chairman of the Board, President and Chief Executive Officer of the Company on the Effective Date. Also on the Effective Date, the following new directors were appointed to the Board: Neal Goldman, John Hollowell, Raj Iyer, Ane Launy, Patrick Carey Lowe and Adam Peakes; and Ron Woll, the Company’s Executive Vice President and Chief Operating Officer, assumed the role of Interim Chief Executive Officer and Interim President. Effective May 8, 2021, Bernie G. Wolford, Jr. was named President and Chief Executive Officer and was also appointed to the Board. Upon emergence and in accordance with the Plan, the Company adopted the Diamond Offshore Drilling, Inc. Severance Plan (or the Severance Plan) providing for protection for loss of salary and benefits in the event of certain voluntary and involuntary terminations of employment from the Company for eight key employees. Prior to the expiration of the Severance Plan, three of the key employees exercised their right under the Severance Plan and resigned from the Company in September 2021. Effective on September 20, 2021, the Company promoted Dominic A. Savarino from Vice President and Chief Accounting & Tax Officer to Senior Vice President and Chief Financial Officer. Chapter 11 Accounting Reorganization Items The following tables provide information about reorganization items incurred during the three-month periods ended September 30, 2020 and 2021, the period from April 24 through September 30, 2021, the period from January 1 through April 23, 2021 and the nine-month period ended September 30, 2020 (in thousands): Successor Predecessor Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Professional fees $ 1,916 $ 18,634 Net gain on settlement with certain unsecured vendors — (9,971 ) Total reorganization items, net $ 1,916 $ 8,663 Successor Predecessor Period from April 24 through Period from January 1 through Nine Months Ended September 30, 2021 April 23, 2021 September 30, 2020 Professional fees $ 7,454 $ 51,084 $ 39,293 Fresh start valuation adjustments — 2,699,422 — Net gain on settlement of liabilities subject to compromise — (1,129,892 ) — Accrued backstop commitment premium — 10,424 — Write-off of predecessor directors and officers tail insurance policy — 6,932 — Other — 1,793 (4,205 ) Write-off of debt issuance costs — — 27,552 Total reorganization items, net $ 7,454 $ 1,639,763 $ 62,640 Payments of $35.4 million, $37.6 million and $23.8 million related to professional fees have been presented as cash outflows from operating activities in our unaudited Condensed Consolidated Statements of Cash Flows for the period from April 24 to September 30, 2021, the period from January 1 to April 23, 2021 and for the nine months ended September 30, 2020, respectively. See Note 6 “Supplemental Financial Information.” Liabilities Subject to Compromise . We have reported prepetition unsecured and under-secured obligations that may be impacted by the Chapter 11 Cases as “Liabilities subject to compromise” in our Consolidated Balance Sheets at December 31, 2020. Financial Accounting Standards Board (or FASB) Accounting Standards Codification (or ASC) Topic No. 852 – Reorganizations (or ASC 852) requires prepetition liabilities that are subject to compromise to be reported at the amounts expected to be allowed by the Bankruptcy Court. The amounts reported as liabilities subject to compromise at December 31, 2020 were preliminary and subject to potential future adjustment depending on Bankruptcy Court actions, further developments with respect to disputed claims, determinations of the secured status of certain claims, the values of any collateral securing such claims, rejection of executory contracts, continued reconciliation or other events. Upon filing the Plan in January 2021, we reclassified all prepetition liabilities out of “Liabilities subject to compromise,” because these claims were to be paid in full and were unimpaired per the Plan, except for our Senior Notes and the corresponding prepetition interest, which were the only claims considered to be impaired and unsecured per the Plan. Thus, at April 23, 2021, “ Liabilities subject to compromise” was comprised of the principal balance of our Senior Notes of $2.0 billion and the corresponding accrued interest of $44.9 million. Liabilities subject to compromise at December 31, 2020 consisted of the following (in thousands): Predecessor December 31, 2020 Debt subject to compromise: Borrowings under RCF $ 436,000 3.45% Senior Notes due 2023 250,000 7.875% Senior Notes due 2025 500,000 5.70% Senior Notes due 2039 500,000 4.875% Senior Notes due 2043 750,000 Lease liabilities 112,646 Accrued interest 47,636 Accounts payable 16,725 Other accrued liabilities 1,302 Other liabilities 4,496 Total liabilities subject to compromise $ 2,618,805 Upon filing of the Chapter 11 Cases on April 26, 2020, we ceased accruing interest on our Senior Notes and borrowings under the RCF. However, due to provisions in the PSA signed in January 2021 and other orders of the Bankruptcy Court, we resumed recognizing interest on our outstanding borrowings under the RCF and also recorded the unpaid post-petition interest not previously recognized. As a result, during the period from January 1 to April 23, 2021, we accrued interest expense of $35.3 million for the period from April 26, 2020 through March 31, 2021, inclusive of a $23.4 million catch-up adjustment for the period from April 26, 2020 to December 31, 2020, and have reported such amount as “Interest expense” in our unaudited Condensed Consolidated Statements of Operations for the period from January 1 to April 23, 2021. Going Concern In our Annual Report on Form 10-K for the year ended December 31, 2020, we previously disclosed, based on our financial condition and our projected operating results, the defaults under our debt agreements, and the risks and uncertainties surrounding the Chapter 11 Cases, that there was substantial doubt as to our ability to continue as a going concern at that time. Our ability to continue as a going concern was contingent upon confirmation of the Plan by the Bankruptcy Court and our ability to successfully implement the Plan. After the Debtors’ emergence from the Chapter 11 Cases on April 23, 2021 and based on our post-emergence capital structure and liquidity position, we concluded that there is no longer substantial doubt regarding our ability to continue as a going concern for the next 12 months. |
Fresh Start Accounting
Fresh Start Accounting | 9 Months Ended |
Sep. 30, 2021 | |
Fresh Start Balance Sheet [Abstract] | |
Fresh Start Accounting | 3. Fresh Start Accounting Upon emergence from bankruptcy, we met the criteria and were required to adopt fresh start accounting in accordance with ASC 852, 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. The criteria requiring fresh start accounting are: (i) the holders of the then-existing voting shares of the Predecessor (or legacy entity prior to the Effective Date) received less than 50 percent of the new voting shares of the Successor outstanding upon emergence from bankruptcy, and (ii) the reorganization value of the Company’s assets immediately prior to confirmation of the Plan was less than the total of all post-petition liabilities and allowed claims. Fresh start accounting requires 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 differ materially from their recorded values as reflected on the historical balance sheets of the Predecessor. In addition, as a result of the application of fresh start accounting and the effects of the implementation of the Plan, the financial statements for the period after April 23, 2021 will not be comparable with the financial statements prior to and including April 23, 2021. References to “Successor” refer to the Company and its financial position and results of operations after the Effective Date (or from April 24 to September 30, 2021). 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 to April 23, 202 1 ) . Reorganization Value Reorganization value approximates the fair value of the Successor’s total assets and the amount a willing buyer would pay for the assets immediately after restructuring. Under fresh start accounting, the Company allocated the reorganization value to its individual assets based on their estimated fair values (except for deferred income taxes) in conformity with ASC Topic 805, Business Combinations Fair Value Measurement Income Taxes The Company’s reorganization value is derived from management projections and the valuation models determined by the Company’s financial advisors in setting an estimated range of enterprise values. Enterprise value represents the estimated fair value of an entity’s shareholders’ equity plus long-term debt and other interest-bearing liabilities less unrestricted cash and cash equivalents. The Company’s bankruptcy financial advisor did not contemplate any value within the selected estimated ranges of enterprise value for deferred tax assets or uncertain tax positions due to various unknown factors at the time the enterprise value assumptions were produced. At emergence, the resulting values calculated for the deferred tax asset and uncertain tax liabilities have a net accretive impact on the value of the Successor equity. As set forth in the disclosure statement approved by the Bankruptcy Court, the valuation analysis resulted in an enterprise value between $805.0 million and $1,520.0 million with a selected mid-point of $1,130.0 million. For U.S. GAAP purposes, we valued the Successor’s individual assets, liabilities, and equity instruments and determined the value of the enterprise was $1,130.0 million as of the Effective Date, which fell in line within the selected mid-point of the forecasted enterprise value ranges approved by the Bankruptcy Court. Specific valuation approaches and key assumptions used to arrive at reorganization value, and the value of discrete assets and liabilities resulting from the application of fresh start accounting, are described below in greater detail within the valuation process. The following table reconciles the enterprise value to the estimated fair value of the Successor’s equity as of the Effective Date (in thousands): April 23, 2021 Enterprise value $ 1,130,000 Plus: Cash and cash equivalents 79,982 Plus: Deferred tax assets and uncertain tax positions 10,810 Less: Fair value of debt (285,982 ) Fair value of Successor equity $ 934,810 The following table reconciles enterprise value to the reorganization value of the Successor ( i.e. April 23, 2021 Enterprise value $ 1,130,000 Plus: Cash and cash equivalents 79,982 Plus: Non-interest bearing current liabilities 225,637 Plus: Non-interest bearing non-current liabilities 276,418 Plus: Deferred tax assets and uncertain tax positions 10,810 Reorganization value of Successor assets $ 1,722,847 With the assistance of third-party valuation advisors, we determined the enterprise and corresponding equity value of the Successor using various valuation approaches and methods, including: (i) income approach using a calculation of the present value of future cash flows based on our financial projections, (ii) market approach using selling prices of similar assets and (iii) cost approach. The enterprise value and corresponding equity value are dependent upon achieving future financial results set forth in our valuations, as well as the realization of certain other assumptions. All estimates, assumptions, valuations and financial projections, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond our control. Accordingly, the estimates, assumptions, valuations or financial projections may not be realized and actual results could vary materially. Valuation Process Under the application of fresh start accounting and with the assistance of valuation experts, we conducted an analysis of the Condensed Consolidated Balance Sheet to determine if any of the Company’s net assets would require a fair value adjustment as of the Effective Date. The results of our analysis indicated that our principal assets, which include drilling and other property and equipment; warehouse stock and fuel inventory; leases; long-term debt and warrants would require a fair value adjustment on the Effective Date. Drilling and Other Property and Equipment. The valuation of our offshore drilling units and other related tangible assets was determined by using a combination of (1) the discounted free cash flows expected to be generated from our drilling assets over their remaining useful lives and (2) the cost to replace our drilling assets, as adjusted by the current market for similar offshore drilling assets. Assumptions used in our assessment of the discounted free cash flows included, but were not limited to, the expected operating dayrates, operating costs, utilization rates, tax rates, capital expenditures, working capital requirements and estimated economic useful lives. The cash flows were discounted at a market participant weighted average cost of capital (or WACC), which was derived from a blend of market participant after-tax cost of debt and market participant cost of equity, and computed using public share price information for similar offshore drilling market participants, certain U.S. Treasury rates, and certain risk premiums specific to the assets of the Company. For rigs where an active secondary market exists or that were expected to be scrapped, the market approach was used to estimate the fair value of the assets which involved gathering and analyzing recent market data of comparable assets. The fair value of land assets was estimated using a sales comparison method of the market approach which was based on third party databases identifying listings of recent sales, discussions held with local market participants and comparable properties within relevant market areas. Buildings and improvements and rig spare equipment were valued using a cost approach, in which we estimated the replacement cost of the assets and applied adjustments for physical depreciation and obsolescence, where applicable, to arrive at a fair value. The remaining property and equipment was valued by applying an economic obsolescence adjustment of 80% to the carrying value based on the implied economic obsolescence observed from the offshore rig fleet. The fair value of the blow out preventer (or BOP) lease right-of-use (or ROU) asset was also included within the “ Drilling and Other Property and Equipment Leases Warehouse Stock and Fuel Inventory. The fair value of warehouse stock was determined by applying an economic obsolescence adjustment of 80% to the carrying value based on the implied economic obsolescence observed from the offshore rig fleet. The fair value of fuel inventory was included at carrying value, which was representative of the price per gallon on the date of emergence from bankruptcy. These balances were included within the “ ” caption. Leases. The fair value of leases was estimated using the present value of the remaining lease payments discounted at a weighted average incremental borrowing rate (or IBR) of 6.7% for the emergent entity on the date of remeasurement ( i.e. , the Effective Date) with a further adjustment to the ROU assets for prepaid rent which was akin to an off-market term. Long-term Debt . The fair values of the Exit RCF and the Exit Term Loans were based on relevant market data as of the Effective Date and the terms of each respective instrument. Considering the interest rates were consistent with a range of comparable market yields (with considerations for term and seniority), the fair values of the Exit RCF and Exit Term Loans were consistent with the corresponding principal amounts outstanding as of the Effective Date. Thus, the values were reflected at par value. The fair value of the Exit Notes was based on relevant market data as of the Effective Date, the contractual terms including the pre-payment terms, and a yield-to-worst analysis as of the Effective Date, which resulted in an estimated fair value of 101.0% of par as of the Effective Date. Warrants . The fair value of the warrants issued upon the Effective Date was estimated using the Black-Scholes-Merton option pricing model. The Black-Scholes-Merton model is an option pricing model used to estimate the fair value of options and warrants based on the following input assumptions: stock price, strike price, term, risk-free rate, volatility, and dividend yield. In using the Black-Scholes-Merton option pricing model to estimate the fair value of the warrants, the following assumptions were used: the stock price assumption was based on the common value per share from the equity value as of the Effective Date and the equity capital structure; for the strike price assumption, the contractual strike price of $29.22 was used; the term assumption was based on the contractual term of the warrants of five years as of the Effective Date; the expected volatility assumption of 70% was estimated using market data for certain similar publicly traded entities with considerations for differences in size and leverage of the Company versus the similar publicly traded entities; and the risk-free rate assumption of 0.83% was based on United States Constant Maturity Treasury rates as of the Effective Date. Consolidated Balance Sheet The following illustrates the effects on the Company’s consolidated balance sheet due to the reorganization and fresh start accounting adjustments. The explanatory notes following the table below provide further details on the adjustments, including the assumptions and methods used to determine fair value for its assets, liabilities, and warrants. Unless otherwise indicated, dollar amounts are stated in thousands. April 23, 2021 Transaction Accounting Predecessor Reorganization Adjustments Fresh Start Adjustments Successor ASSETS Current assets: Cash and cash equivalents $ 333,699 $ (253,717 ) (a) $ — $ 79,982 Restricted cash 3,274 32,173 (b) — 35,447 Accounts receivable 134,104 — 802 (r) 134,906 Less: allowance for credit losses (5,555 ) — — (5,555 ) Accounts receivable, net 128,549 — 802 129,351 Prepaid expenses and other current assets 108,594 (15,484 ) (c) (34,455 ) (s) 58,655 Assets held for sale 1,000 — — 1,000 Total current assets 575,116 (237,028 ) (33,653 ) 304,435 Drilling and other property and equipment, net of accumulated depreciation 3,892,150 182,985 (d) (2,720,485 ) (t) 1,354,650 Other assets 179,783 (112,454 ) (e) (10,282 ) (u) 57,047 Deferred tax asset — — 6,716 (r) 6,716 Total assets $ 4,647,049 $ (166,497 ) $ (2,757,704 ) $ 1,722,848 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 66,397 $ (996 ) (f) $ — $ 65,401 Accrued liabilities 246,141 (67,125 ) (g) (55,961 ) (v) 123,055 Short-term debt 442,034 (442,034 ) (h) — Finance lease right of use liabilities, current — 15,148 (i) — 15,148 Taxes payable 22,034 — — 22,034 Total current liabilities 776,606 (495,007 ) (55,961 ) 225,638 Deferred tax liability 23,060 3,869 (j) (34,447 ) (w) — 7,518 (r) Other liabilities 217,434 (90,098 ) (k) (9,837 ) (x) 117,499 Finance lease right of use liabilities, noncurrent — 158,919 (l) — 158,919 Long-term debt — 285,982 (m) — 285,982 Total liabilities not subject to compromise 1,017,100 (136,335 ) (92,727 ) 788,038 Liabilities subject to compromise 2,044,877 (2,044,877 ) (n) — — Stockholders’ equity: Predecessor preferred stock — — — — Predecessor common stock 1,453 (1,453 ) (o) — — Predecessor additional paid-in capital 2,029,978 (2,029,978 ) (o) — — Predecessor treasury stock (206,163 ) 206,163 (o) — — Successor preferred stock — — — — Successor common stock — 10 (p) — 10 Successor additional paid-in capital — 934,800 (p) — 934,800 Successor treasury stock — — — — Accumulated deficit (240,196 ) 2,905,173 (q) (2,664,977 ) (y) — Total stockholders’ equity 1,585,072 2,014,715 (2,664,977 ) 934,810 Total liabilities and stockholders’ equity $ 4,647,049 $ (166,497 ) $ (2,757,704 ) $ 1,722,848 Reorganization Adjustments (a) Reflects the net cash payments that occurred on the Effective Date as follows: April 23, 2021 Funding of professional fee escrow account $ (35,003 ) Payment of non-retained professional fees (14,087 ) Payment of Predecessor revolving credit facility, including accrued interest (479,627 ) Proceeds from Exit Facilities 200,000 Receipt of cash from the issuance of Exit Notes through primary Private Placement and primary Rights Offering 75,000 Change in cash and cash equivalents $ (253,717 ) (b) Reflects the change in restricted cash for the following activities: April 23, 2021 Funding of professional fee escrow account $ 35,003 Payment of key employee incentive plan holdback escrow account (1,697 ) Payment of pre-petition trade claims (1,133 ) Change in restricted cash $ 32,173 (c) Reflects the changes in prepaid expenses and other current assets for the following activities: April 23, 2021 Reduction of prepaid expense for success fees $ (1,095 ) Reclassification of debt issuance costs to other assets and long-term debt (10,328 ) Reclassification of payment-in-kind upfront fee related to the Exit RCF to other assets (3,478 ) Write-off of Predecessor directors and officers tail insurance policy (583 ) Change in prepaid expenses and other current assets $ (15,484 ) (d) As a result of an amendment that became effective on the Effective Date, the BOP leases were recharacterized from operating leases to finance leases pursuant to ASC Topic 842, Leases (or ASC 842). The impact of the recharacterization resulted in the reclassification of the ROU asset of $116.2 million from “Other assets” into “Drilling and other property and equipment.” The value of the BOP ROU assets and the corresponding finance lease liabilities after the amendment were increased by an adjustment of $66.8 million in accordance with the modification guidance of ASC 842. (e) Reflects the changes in other assets for the following activities: April 23, 2021 Reclassification of BOP lease asset to drilling and other property and equipment $ (116,242 ) Reclassification of payment-in-kind upfront fee related to the Exit RCF from prepaid expenses and other current assets 3,478 Record debt issuance costs related to the Exit RCF 6,659 Write-off of Predecessor directors and officers tail insurance policy (6,349 ) Change in other assets $ (112,454 ) (f) Reflects the $1.0 million reduction in accounts payable for the payment of pre-petition trade claims and associated post-petition interest related to general unsecured claims. (g) Reflects the changes in accrued liabilities for the following activities: April 23, 2021 Record accrued liability related to success fees $ 10,699 Record accrued liability related to a bonus accrual under the amended BOP services agreement 831 Reclassification of BOP short-term lease liability into a finance lease (17,225 ) Payment of non-retained professional fees (8,762 ) Payment of key employee incentive plan holdback awards (1,697 ) Payment of accrued interest related to Predecessor revolving credit facility (37,593 ) Reclassification of payment-in-kind upfront fee into the Exit RCF (3,478 ) Reclassification of backstop commitment premium to payment-in-kind Exit Notes (9,900 ) Change in accrued liabilities $ (67,125 ) (h) Reflects the changes in short-term debt for the following activities: April 23, 2021 Record Predecessor revolving credit facility cash paydown of principal $ (242,034 ) Reflects payment in full of the borrowings outstanding under the Predecessor RCF on the Effective Date (200,000 ) Change in short-term debt $ (442,034 ) (i) Reflects the reclassification of the current BOP operating lease liability to a finance lease of $17.2 million, net of the modification pursuant to ASC 842 of the current BOP finance lease liability of $2.1 million. (j) Reflects the adjustment to deferred taxes of $3.9 million due to the step plan adjustments recorded as a result of the Plan. (k) Reflects the reclassification of the non-current BOP operating lease liability to a finance lease of $(90.1) million. (l) Reflects the reclassification of the non-current BOP operating lease liability to a finance lease of $90.1 million and the modification of the non-current BOP finance lease liability of $68.8 million pursuant to ASC 842. (m) Reflects the changes in long-term debt for the following activities: April 23, 2021 Borrowings drawn under the Exit Facilities $ 200,000 Record payment-in-kind upfront fee related to the Exit RCF 3,478 Issuance of Exit Notes for cash 75,000 Record 1% premium associated with Exit Notes 749 Record backstop commitment premium to payment-in-kind Exit Notes 10,424 Record debt issuance costs related to Exit Term Loans and Exit Notes (3,669 ) Change in long-term debt $ 285,982 (n) Liabilities subject to compromise were settled as follows in accordance with the Plan: April 23, 2021 Senior Notes Claims $ 2,044,877 Total settled liabilities subject to compromise 2,044,877 Issuance of New Diamond Common Shares to holders of Senior Notes Claims (639,965 ) Issuance of New Diamond Common Shares to participants of the Rights Offering and Private Placements (274,271 ) Record 1% premium associated with Exit Notes (749 ) Pre-tax gain on settlement of liabilities subject to compromise $ 1,129,892 (o) Reflects the cancelation of the Predecessor’s common stock, treasury stock and related components of the Predecessor’s additional paid-in capital. (p) The following reconciles reorganization adjustments made to the Successor’s common stock and Successor’s additional paid-in capital: April 23, 2021 Fair value of New Diamond Common Shares issued to holders of Senior Notes Claims $ 914,236 Fair value of Emergence Warrants issued to Predecessor equity holders 20,574 Total change in Successor common stock and additional paid-in capital 934,810 Less: Par value of Successor common stock (10 ) Successor additional paid-in capital $ 934,800 (q) Reflects the cumulative net impact of the effects on accumulated deficit as follows: April 23, 2021 Success fee recognized on the Effective Date $ (17,120 ) Pre-tax gain on settlement of liabilities subject to compromise 1,129,892 Backstop commitment expense to record difference between accrued termination fee and issuance of payment-in-kind Exit Notes upon emergence (524 ) Write-off of Predecessor directors and officers tail insurance policy (6,932 ) Other emergence effects (137 ) Expense related to bonus accrual under BOP services agreement (831 ) Cancellation of Predecessor common stock, additional paid-in capital and treasury stock 1,825,268 Issuance of Emergence Warrants to Predecessor equity holders (20,574 ) Change in deferred tax as a result of step plan adjustments (3,869 ) Change in accumulated deficit $ 2,905,173 Fresh Start Adjustments (r) Reclassification of a net debit in the “Deferred tax liability” account to “Deferred tax asset” after the adjustment pursuant to ASC 740 based on the impact of the tax effects of the reorganization and the fair value ascribed to the enterprise upon emergence, with a portion classified to “Accounts receivable” based on the expected amount to be received from the amended tax return. (s) Reflects the write-off of current deferred contract assets of $(27.3) million, as there is no future benefit to be recognized by the Successor, and the fair value adjustment of $(7.2) million to rig spare parts and supplies. (t) Reflects the fair value adjustment to “Drilling and other property and equipment” and the elimination of accumulated depreciation of $(2,712.1) million. In addition, the adjustment reflects the fair value adjustment of $(8.4) million to the BOP finance lease assets by setting the ROU assets equal to the ROU liabilities less the prepaid amounts. Refer to the valuation procedures set forth above with respect to valuing the rigs and related equipment. (u) Reflects the fair value adjustments to “Other assets” for the following: April 23, 2021 Write-off of long-term contract assets $ (10,029 ) Fair value adjustment to set asset equal to right-of-use liability for other operating leases (1,998 ) Fair value adjustment to true-up other operating leases for change in incremental borrowing rate 1,745 Change in other assets $ (10,282 ) (v) Reflects the write-off of current deferred contract liabilities of $(56.4) million as there is no future obligation to be performed by the Successor and the fair value adjustment of $0.4 million to current other lease liabilities because of the impact of applying the IBR at the Effective Date at emergence. (w) Reflects the adjustment to deferred taxes of $(34.4) million pursuant to ASC 740 based on the impact of the tax effects of the reorganization, inclusive of the Successor company’s tax basis, and the fair value ascribed to the enterprise upon emergence. (x) Reflects the write-off of non-current deferred contract liabilities of $(11.1) million as there is no future obligation to be performed by the Successor and the fair value adjustment of $1.3 million to non-current other lease liabilities. (y) Reflects the cumulative effect of the fresh start accounting adjustments discussed above. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 4. Revenue from Contracts with Customers The activities that primarily drive the revenue earned from our contract drilling services include (i) providing a drilling rig and the crew and supplies necessary to operate the rig, (ii) mobilizing and demobilizing the rig to and from the drill site and (iii) performing rig preparation activities and/or modifications required for the contract. Consideration received for performing these activities may consist of dayrate drilling revenue, mobilization and demobilization revenue, contract preparation revenue and reimbursement revenue. We account for these integrated services provided within our drilling contracts as a single performance obligation satisfied over time and comprised of a series of distinct time increments in which we provide drilling services. Consideration for activities that are not distinct within the context of our contracts and do not correspond to a distinct time increment within the contract term are allocated across the single performance obligation and recognized ratably over the initial term of the contract (which is the period we estimate to be benefited from the corresponding activities and generally ranges from two to 60 months). Such consideration may include mobilization, demobilization, contract preparation and capital modification revenue that is stipulated in our drilling contracts. Consideration for activities that correspond to a distinct time increment within the contract term is recognized in the period when the services are performed. The total transaction price is determined for each individual contract by estimating both fixed and variable consideration expected to be earned over the term of the contract. In May 2021, we entered into an arrangement with an offshore drilling company whereby we provide management and marketing services (or MMSA) for three of its rigs. Per the MMSA, for stacked rigs we earn a daily service fee and are entitled to reimbursement of direct costs incurred in accordance with the agreement. The daily service fee revenue is recognized in line with the contractual rate billed for the services provided and is reported in “Contract Drilling Revenue” in our unaudited Condensed Consolidated Statements of Operations. unaudited Condensed Contract Balances The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers (in thousands): Successor Predecessor September 30, December 31, 2021 2020 Trade receivables $ 157,292 $ 115,732 Current contract assets (1) 1,392 2,870 Current contract liabilities (deferred revenue) (1) (38,564 ) (51,763 ) Noncurrent contract liabilities (deferred revenue) (1) (12,711 ) (5,164 ) (1) Contract assets and contract liabilities may reflect balances which have been netted together on a contract basis. Net current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Accrued liabilities,” respectively, and net noncurrent contract liability balances are included in “Other liabilities” in our unaudited Condensed Consolidated Balance Sheets. Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands): Net Contract Balances Contract assets at January 1, 2021 (Predecessor) $ 2,870 Contract liabilities at January 1, 2021 (Predecessor) (56,927 ) Net balance at January 1, 2021 (Predecessor) (54,057 ) Decrease due to amortization of revenue included in the beginning contract liability balance 15,341 Increase due to cash received, excluding amounts recognized as revenue during the period (22,553 ) Increase due to revenue recognized during the period but contingent on future performance 1,442 Decrease due to transfer to receivables during the period (700 ) Write-off of deferred revenue due to application of fresh start accounting 60,945 Net balance at April 23, 2021 (Predecessor) $ 418 Increase due to cash received, excluding amounts recognized as revenue during the period (51,275 ) Increase due to revenue recognized during the period but contingent on future performance 974 Net balance at September 30, 2021(Successor) $ (49,883 ) Contract assets at September 30, 2021 (Successor) $ 1,392 Contract liabilities at September 30, 2021 (Successor) (51,275 ) Transaction Price Allocated to Remaining Performance Obligations The following table reflects the specified types of revenue expected to be recognized in the future related to unsatisfied performance obligations as of September 30, 2021 (in thousands): For the Years Ending December 31, 2021 (1) 2022 2023 2024 Total Mobilization and contract preparation revenue $ 1,008 $ 3,941 $ 3,912 $ 332 $ 9,193 Capital modification revenue 7,542 23,485 5,270 414 36,711 Demobilization and other deferred revenue 5,837 255 — — 6,092 Total $ 14,387 $ 27,681 $ 9,182 $ 746 $ 51,996 (1) Represents the three-month The revenue included above consists of expected fixed mobilization and upgrade revenue for both wholly and partially unsatisfied performance obligations, as well as expected variable mobilization and upgrade revenue for partially unsatisfied performance obligations, which has been estimated for purposes of allocating across the entire corresponding performance obligations. The amounts are derived from the specific terms within drilling contracts that contain such provisions, and the expected timing for recognition of such revenue is based on the estimated start date and duration of each respective contract based on information known at September 30, 2021. The actual timing of recognition of such amounts may vary due to factors outside of our control. We have applied the disclosure practical expedient in FASB Accounting Standards Update (or ASU) No. 2014-09, Revenue from Contracts with Customers |
Impairment of Assets
Impairment of Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Impairment of Assets | 5 . Impairment of Assets 2021 Impairment. During the first quarter of 2021, we identified indicators that the carrying amounts of certain of our assets may not be recoverable and evaluated three of our drilling rigs with indicators of impairment. Based on our assumptions and analysis at that time, we determined that the carrying value of one of these rigs, for which we had concerns regarding future opportunities, was impaired (or the 2021 Impaired Rig). We estimated the fair value of the 2021 Impaired Rig using an income approach, whereby the fair value of the rig was estimated based on a calculation of the rig’s future net cash flows. These calculations utilized significant unobservable inputs, including management’s assumptions related to estimated dayrate revenue, rig utilization, estimated capital expenditures, repair and regulatory survey costs, as well as estimated proceeds that may be received on ultimate disposition of the rig. Our fair value estimate was representative of a Level 3 fair value measurement due to the significant level of estimation involved and the lack of transparency as to the inputs used. We recorded asset impairments aggregating $197.0 million for the period from January 1 through April 23, 2021 2020 Impairment . In the first quarter of 2020 , we identified indicators that the carrying amounts of certain of our assets may not be recoverable and evaluated five of our drilling rigs that had indicators of impairment. Based on our assumptions and analysis at that time, we determined that the carrying values of four of these rigs were impaired (we collectively refer to these four rigs as the 2020 Impaired Rigs ) . We estimated the fair values of the 2020 Impaired Rigs using an income approach, which utilized significant unobservable inputs, including management’s assumptions related to estimated dayrate revenue, rig utilization, estimated capital expenditures and repair costs, as well as See Note 9 “Drilling and Other Property and Equipment.” |
Supplemental Financial Informat
Supplemental Financial Information | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Supplemental Financial Information | 6. Supplemental Financial Information Condensed Accounts receivable, net of allowance for credit losses, consist of the following (in thousands): Successor Predecessor September 30, December 31, 2021 2020 Trade receivables $ 157,292 $ 115,732 Value added tax receivables 9,667 10,781 Federal income tax receivables 8,420 8,420 Related party receivables 71 78 Other 183 1,211 175,633 136,222 Allowance for credit losses (5,614 ) (5,562 ) Total $ 170,019 $ 130,660 The allowance for credit losses at September 30, 2021 and December 31, 2020 represents our 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): Successor Predecessor September 30, December 31, 2021 2020 Collateral deposits $ 18,570 $ — Prepaid taxes 17,440 16,112 Deferred contract costs 7,501 19,808 Prepaid insurance 4,292 2,446 Prepaid rig costs 3,575 2,317 Rig spare parts and supplies 3,251 12,606 Current contract assets 1,392 2,870 Prepaid legal retainers 432 2,408 Other 5,648 3,708 Total $ 62,101 $ 62,275 Accrued liabilities consist of the following (in thousands): Successor Predecessor September 30, December 31, 2021 2020 Deferred revenue $ 38,564 $ 51,763 Payroll and benefits 31,122 30,296 Rig operating costs 27,678 21,123 Current operating lease liability 16,354 5,072 Personal injury and other claims 5,710 6,495 Shorebase and administrative costs 5,536 17,275 Interest payable 5,254 — Accrued capital project/upgrade costs 3,096 7,075 Other 872 1,689 Total $ 134,186 $ 140,788 Condensed Consolidated Statements of Cash Flows Information Noncash operating, investing and financing activities excluded from the unaudited Condensed Consolidated Statements of Cash Flows and other supplemental cash flow information is as follows (in thousands): Successor Predecessor Period from April 24 Period from January 1 Nine Months Ended through September 30, through April 23, September 30, 2021 2021 2020 Accrued but unpaid capital expenditures at period end $ 3,096 $ 18,617 $ 5,242 Accrued but unpaid debt issuance costs and arrangement fees (1) — 7,588 — Common stock withheld for payroll tax obligations (2) — — 395 Cash interest payments 5,431 37,593 19,843 Cash paid for reorganization items, net 35,398 37,566 23,818 Cash income taxes paid, net of (refunds): Foreign 1,464 3,460 11,229 U.S. Federal 468 — (42,462 ) State — (34 ) 36 (1) related to our exit financing that were we incurred and capitalized financing costs of $13.8 million in relation to our exit financing ( 2 ) Represents the cost of 131,698 shares of common stock withheld to satisfy payroll tax obligations incurred as a result of the vesting of restricted stock units during the nine-month period ended September 30, 2020. This cost is presented as a deduction from stockholders’ equity in “Treasury stock” in the Predecessor’s unaudited Condensed Consolidated Balance Sheet at December 31, 2020. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation Pursuant to the terms of the Plan, the Diamond Offshore Drilling, Inc. 2021 Long-Term Stock Incentive Plan (or the Equity Incentive Plan) was adopted and approved on the Effective Date. The Equity Incentive Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, and other stock-based awards or any combination thereof to eligible participants. The aggregate number of shares of Company Common Stock that are available for issuance pursuant to awards under the Equity Incentive Plan is 11,111,111. During the Successor period, we granted an aggregate 337,662 time-vesting restricted stock unit (or RSU) awards to our non-employee members of the Board. The time-vesting RSUs vest and become non-forfeitable with respect to 30% of the RSUs on the first anniversary of the grant date and 70% of the RSUs on the second anniversary of the grant date, subject to the recipient’s continuous service through the applicable vesting date. The vested 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. In addition, pursuant to the terms of the Equity Incentive Plan we granted 222,222 shares of time-vesting restricted stock awards and 777,777 shares of performance-vesting restricted stock awards to our Chief Executive Officer. One-third two-thirds (as defined in the award agreement under the Equity Incentive Plan) During the Successor period from April 24 through September 30, 2021, we recognized compensation expense of $1.9 million in relation to the time-vesting awards described above. Effective July 1, 2021, the Board approved a new key employee retention and incentive plan covering executive officers and certain non-executive key employees. In connection with this plan, we granted 1,831,353 and 1,613,669 time- and performance-vesting RSUs, respectively, that vest annually over three years and had a grant date fair value aggregating approximately $30 million. During the third quarter of 2021, 491,590 of the unvested RSUs under this plan were forfeited by key employees who left the Company. Also, in connection with the new plan, we granted short-term cash incentive awards payable quarterly over one year (aggregating approximately $5 million). During the three-month period ended September 30, 2021, we recognized compensation expense of $3.9 million and $1.2 million related to these RSUs and short-term cash incentives, respectively. |
Financial Instruments and Fair
Financial Instruments and Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2021 | |
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 corresponds primarily to trade receivables. Since the market for our services is the offshore oil and gas industry, our customer base consists primarily of major and independent oil and gas companies, as well as government-owned oil companies. At September 30, 2021, we believe that we have potentially significant concentrations of credit risk due to the number of rigs we currently have contracted and our limited number of customers, as some of our customers have contracted for multiple rigs. In general, before working for a customer with whom we have not had a prior business relationship and/or whose financial stability may be uncertain, we perform a credit review on that customer, including a review of its credit ratings and financial statements. Based on our credit review, we may require that the customer have a bank issue a letter of credit on its behalf, prepay for the services in advance or provide other credit enhancements. We currently have one customer for which we required a letter of credit to guarantee a portion of the revenue to be earned pursuant to a contract extension amendment signed during 2020. The letter of credit guaranteed $4.6 million of revenue at September 30, 2021, of which $2.3 million expired on October 31, 2021. We have not required any other credit enhancements by our customers or required any to pay for services in advance at September 30, 2021. We have historically used the specific identification method to identify and reserve for uncollectible accounts. The amounts reserved for uncollectible accounts in previous periods have not been significant, individually or in comparison to our total revenues. At September 30, 2021, $7.3 million in trade receivables were considered past due by 30 days or more, of which $5.5 million were fully reserved for in previous years and $0.3 million of the remaining $1.8 million were older than 90 days past due. Pursuant to FASB ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments For purposes of calculating our current estimate of credit losses at September 30, 2021 and December 31, 2020, all trade receivables were deemed to be in a single risk pool based on their credit ratings at each respective period. Our current estimate of credit losses under CECL was $0.1 million at both September 30, 2021 and December 31, 2020. Our total allowance for credit losses was $5.6 million at both September 30, 2021 and December 31, 2020. See Note 6 “Supplemental Financial Information.” Fair Values Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy prescribed by GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 Quoted prices for identical instruments in active markets. Level 2 Quoted market prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Level 3 assets and liabilities generally include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation or for which there is a lack of transparency as to the inputs used. Certain of our assets and liabilities are required to be measured at fair value on a recurring basis in accordance with GAAP. In addition, certain assets and liabilities may be recorded at fair value on a nonrecurring basis. Generally, we record assets at fair value on a nonrecurring basis as a result of impairment charges. We recorded impairment charges related to certain of our drilling rigs, which were measured at fair value on a nonrecurring basis at March 31, 2021 and December 31, 2020, and have presented the aggregate loss in “Impairment of assets” in our unaudited Condensed Consolidated Statements of Operations for period from January 1 to April 23, 2021. We had no assets measured at fair value on a recurring basis at September 30, 2021. Assets measured at fair value are summarized below (in thousands). Successor September 30, 2021 Fair Value Measurements Using Successor Predecessor Level 1 Level 2 Level 3 Assets at Fair Value Total Losses for Period from April 24 to September 30, 2021 Total Losses for Period from January 1 to April 23, 2021 (1) Nonrecurring fair value measurements: Impaired assets (1) $ — $ — $ — $ — $ — $ 197,027 (1) Represents an impairment charge recognized during the three months ended March 31, 2021 of one semisubmersible rig, which was written down to its estimated fair value. See Note 5 “Impairment of Assets.” Predecessor December 31, 2020 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Total Losses for Year Ended (1) Nonrecurring fair value measurements: Impaired assets (2) $ — $ — $ 1,000 $ 1,000 $ 842,016 (1) (2) Represents the total book value as of December 31, 2020 of one semisubmersible rig, which was written down to its estimated fair value during the fourth quarter of 2020. We believe that the carrying amounts of our other financial assets and liabilities (excluding our Exit Term Loans, Exit Notes and the Predecessor Senior Notes), which are not measured at fair value in our unaudited Condensed Consolidated Balance Sheets, approximate fair value based on the following assumptions: • Cash and cash equivalents and restricted cash -- The carrying amounts approximate fair value because of the short maturity of these instruments. • Accounts receivable and accounts payable -- The carrying amounts approximate fair value based on the nature of the instruments. • Exit RCF Borrowings - The carrying amount 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 Exit Term Loans, Exit Notes and the Predecessor Senior Notes would be considered Level 2 liabilities. The fair value of these instruments was derived using a third-party pricing service at September 30, 2021 and December 31, 2020. 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 and for the Senior Notes, comparing fair value estimates to actual trade activity executed in the market for these instruments occurring generally within a 10-day period of the report date. Fair values and related carrying values of our long-term debt and the Senior Notes are shown below (in millions). Successor Predecessor September 30, 2021 December 31, 2020 Fair Value Carrying Value Fair Value Carrying Value Exit Term Loans $ 100.0 $ 100.0 — — Exit Notes 86.2 86.1 — — 3.45% Senior Notes due 2023 — — $ 30.6 $ 250.0 7.875% Senior Notes due 2025 — — 61.3 500.0 5.70% Senior Notes due 2039 — — 61.2 500.0 4.875% Senior Notes due 2043 — — 91.9 750.0 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 | 9 Months Ended |
Sep. 30, 2021 | |
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): Successor Predecessor September 30, December 31, 2021 2020 Drilling rigs and equipment $ 1,186,100 $ 6,987,630 Finance lease right of use asset 174,571 — Land and buildings 9,823 41,072 Office equipment and other 2,217 83,016 Cost 1,372,711 7,111,718 Less: accumulated depreciation (43,886 ) (2,988,909 ) Drilling and other property and equipment, net $ 1,328,825 $ 4,122,809 All assets were adjusted to fair value as of the Effective Date of fresh start accounting. See Note 3 “Fresh Start Accounting.” During the period from January 1 through April 23, 2021, we recorded an impairment charge of $197.0 million to write down a drilling rig with indicators of impairment to its estimated fair value. See Note 5 “Impairment of Assets” and Note 8 “Financial Instruments and Fair Value Disclosures.” We have reported the $1.0 million net book value of the Ocean Valor , a previously impaired semisubmersible rig, as “Assets held for sale” in our unaudited Condensed Consolidated Balance Sheet at September 30, 2021. During the period from January 1 through April 23, 2021, we sold the Ocean America and Ocean Rover , both previously impaired semisubmersible rigs that were reported as “Assets held for sale” in our unaudited Condensed Consolidated Balance Sheet at December 31, 2020, for an aggregate net pre-tax gain of $4.4 million. |
Prepetition Revolving Credit Fa
Prepetition Revolving Credit Facility, Senior Notes and Exit Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Prepetition Revolving Credit Facility, Senior Notes and Exit Debt | 10. Prepetition Revolving Credit Facility, Senior Notes and Exit Debt Prepetition Revolving Credit Facility On the Petition Date, we had borrowings outstanding under our prepetition RCF aggregating . Upon filing of the Chapter 11 Cases, which constituted an event of default under the RCF, the principal and interest under the RCF became immediately due and payable . We ceased accruing interest on borrowings under the RCF as of the Petition Date. Subsequently, as a result of the filing of the Chapter 11 Cases, we received notification on April 28, 2020 that the commitments under the RCF had been reduced from $950.0 million to approximately $442.0 million. In January 2021, a was drawn on by the beneficiary and converted to an adjusted base rate loan under the RCF, resulting in total outstanding borrowings of $442.0 million. The outstanding borrowings and accrued prepetition interest under the RCF were presented as “Liabilities subject to compromise” in the Predecessor’s unaudited Condensed Consolidated Balance Sheet at December 31, 2020. However, as a result of the signing of the PSA in January 2021, we no longer considered the outstanding borrowings and accrued pre-petition interest to be “Liabilities subject to compromise” as such claims, including accrued interest since the Petition Date, would be settled in full upon emergence from bankruptcy. Due to provisions in the PSA and other orders of the Bankruptcy Court, we resumed recognizing interest on our outstanding borrowings under the RCF and also recorded the unpaid post-petition interest not previously recognized. See Note 2 “Chapter 11 Proceedings – Chapter 11 Cases .” On the Effective Date, the RCF claims were settled as follows: • • Exit Debt Exit Debt Senior Notes At December 31, 2020, the Senior Notes were comprised of the following debt issues and were reported as “Liabilities subject to compromise” in the Predecessor’s unaudited Condensed Consolidated Balance Sheet (in thousands): Predecessor December 31, 2020 3.45% Senior Notes due 2023 $ 250,000 7.875% Senior Notes due 2025 500,000 5.70% Senior Notes due 2039 500,000 4.875% Senior Notes due 2043 750,000 Total Senior Notes, net $ 2,000,000 On the Effective Date, New Diamond Common Shares were transferred pro rata to the holders of the Senior Notes in exchange for the cancellation of the Senior Notes. See Note 2 “Chapter 11 Proceedings – Chapter 11 Cases .” As a result of the cancellation of the Senior Notes and associated accrued interest of $44.9 million, we recognized a pre-tax gain on extinguishment of debt of approximately $ 1.1 billion which was reported in “Reorganization items, net” in the Predecessor ’s unaudited Condensed Consolidated Statement of Operations for the period January 1 through April 23, 2021 . Exit Debt At September 30, 2021, the carrying value of the Successor long-term debt (or Exit Debt), net of unamortized discount, premium and debt issuance costs, was comprised as follows (in thousands): Successor September 30, 2021 Borrowings under Exit RCF $ 123,478 Exit Term Loans 98,995 Exit Notes 83,672 Total Exit Debt, net $ 306,145 The borrower under the Exit RCF and Exit Term Loan Credit Agreement (or, collectively, the Credit Facilities) is DFAC (or the Borrower) and the co-issuers of the Exit Notes are DFAC and Diamond Finance, LLC, a newly-formed wholly-owned subsidiary of DFAC (or, together, the Issuers). The Credit Facilities and the Exit Notes are unconditionally guaranteed, on a joint and several basis, by the Borrower and certain of its direct and indirect subsidiaries (or, collectively with the Borrower, the Credit Parties and each, a Credit Party) and secured by senior priority liens on substantially all of the assets of, and the equity interests in, each Credit Party, including all rigs owned by the Company as of the Effective Date or acquired thereafter and certain assets related thereto, in each case, subject to certain exceptions and limitations described in the Credit Facilities and the First Lien Notes Indenture. As of September 30, 2021, the aggregate annual maturity of the Successor Exit Debt, excluding net unamortized premium and debt issuance costs of $0.8 million and $3.5 million, respectively, was as follows (in thousands): Aggregate Principal Amount Year Ending December 31, 2021 $ — 2022 — 2023 — 2024 — 2025 — Thereafter 308,799 Total maturities of long-term debt $ 308,799 Exit Revolving Credit Agreement On the Effective Date, the Company entered into the Exit Revolving Credit Agreement, which provides for a $400.0 million senior secured revolving credit facility, with a $100.0 million sublimit for the issuance of letters of credit thereunder, which is scheduled to mature on April 22, 2026. Borrowings under the Exit 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 Exit 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 Exit Revolving Credit Agreement) would exceed $125.0 million or (ii) the Collateral Coverage Ratio (as defined below) would be less than 2.00 to 1.00 and the aggregate principal amount outstanding under the Exit RCF would exceed $400.0 million and/or the Total Collateral Coverage Ratio (as defined below) would be less than 1.30 to 1.00. On the Effective Date, the Borrower incurred loans under the Exit RCF in an aggregate amount of approximately $103.5 million, of which $100.0 million was deemed incurred in exchange for certain obligations of the Company under its prepetition RCF and approximately $3.5 million was deemed incurred in satisfaction of certain upfront fees payable to the lenders under the prepetition RCF (or PIK Loans). The PIK Loans do not reduce the amount of available commitments under the Exit RCF, and if repaid or prepaid may not be reborrowed. Loans outstanding under the Exit RCF bear interest at a rate per annum equal to the applicable margin plus plus 1.00 plus The Borrower is required to pay a quarterly commitment fee to each lender under the Exit Revolving Credit Agreement, which accrues at a rate per annum equal to 0.50% on the average daily unused portion of such lender’s commitments under the Exit RCF. The Borrower is also required to pay customary letter of credit and fronting fees. The Exit Revolving Credit Agreement obligates the Borrower and its 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 Exit Revolving Credit Agreement), to (b) the aggregate outstanding principal amount of all Loans and L/C Obligations (both as defined in the Exit Revolving Credit Agreement) thereunder (or the 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 Exit Term Loans, plus (3) the aggregate outstanding principal amount of the Exit Notes, plus (4) the aggregate outstanding principal amount of the Last Out Incremental Debt (or the Total Collateral Coverage Ratio) as of the last day of any such fiscal quarter is not permitted to be less than 1.30 to 1.00. The Exit Revolving Credit Agreement contains negative covenants that limit, among other things, the Borrower’s ability and the ability of its restricted subsidiaries to: (i) incur, assume or guarantee additional indebtedness; (ii) create, incur or assume liens; (iii) make investments; (iv) merge or consolidate with or into any other person or undergo certain other fundamental changes; (v) transfer or sell assets; (vi) pay dividends or distributions on capital stock or redeem or repurchase capital stock; (vii) enter into transactions with certain affiliates; (viii) repay, redeem or amend certain indebtedness; (ix) sell stock of its subsidiaries; or (x) enter into certain burdensome agreements. These negative covenants are subject to a number of important limitations and exceptions. Additionally, the Exit Revolving Credit Agreement 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. At September 30, 2021, we were in compliance with all covenants under the Exit Revolving Credit Agreement. We incurred $6.6 million in debt issuance costs and $3.5 million in paid-in-kind upfront fees in connection with the Exit RCF, which are presented as a component of “Other assets” in our unaudited Condensed Consolidated Balance Sheet at September 30, 2021. Debt issuance costs are amortized as incremental interest expense over the term of the Exit RCF on a straight-line basis. At September 30, 2021, we had borrowings outstanding of $123.5 million under the Exit RCF, including $3.5 million in PIK Loans. In July 2021, we utilized $6.1 million for the issuance of letters of credit in replacement of a previously existing letter of credit. The weighted average interest rate on the combined borrowings outstanding under the Exit RCF at September 30, 2021 was 5.35%. At November 1, 2021, we had borrowings of $113.5 million outstanding under the Exit RCF, and we had utilized $6.1 million for the issuance of letters of credit in replacement of a previously existing letter of credit. As of November 1, 2021, approximately $283.9 million was available for borrowings or the issuance of letters of credit under the Exit RCF, subject to its terms and conditions. Exit Term Loan Credit Agreement The Exit Term Loan Credit Agreement provides for a $100.0 million senior secured term loan credit facility, scheduled to mature on April 22, 2027. On the Effective Date, the Borrower utilized the entire $100.0 million under the Exit Term Loan Credit Facility to refinance a portion of the Predecessor obligations under the prepetition RCF. The Exit Term Loans outstanding under the Exit Term Loan Credit Facility bear interest at a rate per annum equal to the applicable margin plus plus ½ of 1.00 plus The Exit Term Loan Credit Agreement contains negative covenants that limit, among other things, the Borrower’s ability and the ability of its restricted subsidiaries to: (i) incur, assume or guarantee additional indebtedness; (ii) create, incur or assume liens; (iii) make investments; (iv) merge or consolidate with or into any other person or undergo certain other fundamental changes; (v) transfer or sell assets; (vi) pay dividends or distributions on capital stock or redeem or repurchase capital stock; (vii) enter into transactions with certain affiliates; (viii) repay, redeem or amend certain indebtedness; (ix) sell stock of its subsidiaries; or (x) enter into certain burdensome agreements. These negative covenants are subject to a number of important limitations and exceptions. Additionally, the Exit Term Loan Credit Agreement 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, any material default under certain material contracts and agreements, cross-default to other material indebtedness, and a change of control. At September 30, 2021, we were in compliance with all covenants under the Exit Term Loan Credit Agreement. The Exit Term Loans were valued at par for fresh start accounting purposes and are presented net of debt issuance costs of $1.0 million, which are being amortized as interest expense over the stated maturity of the loans using the effective interest method. At September 30, 2021, we had Exit Term Loans outstanding of $100.0 million, which accrue interest at 7.0% per annum, assuming a six-month LIBOR and cash interest payment option, and had an effective interest rate of 7.2% per annum. First Lien Notes Indenture On the Effective Date, we entered into the First Lien Notes Indenture and, pursuant to the Backstop Agreement and in accordance with the Plan, (i) consummated the primary rights offering of the Issuers’ First Lien Notes and associated New Diamond Common Shares at an aggregate subscription price of approximately $46.9 million, (ii) closed the delayed draw rights offering of the First Lien Notes and associated New Diamond Common Shares at an aggregate subscription price of approximately $21.9 million, which was committed to but unfunded as of the Effective Date, (iii) consummated the primary private placement of the Issuers’ First Lien Notes and associated New Diamond Common Shares in an aggregate amount of approximately $28.1 million, (iv) closed the delayed draw private placement of the Issuers’ First Lien Notes and associated New Diamond Common Shares in an aggregate amount of approximately $17.8 million, which was committed to but unfunded as of the Effective Date, and (v) paid as consideration to the participants in the Backstop Agreement a commitment premium in the form of additional First Lien Notes in a principal amount of approximately $10.3 million, equal to 9.00% of the aggregate amount of the committed First Lien Notes (or the PIK Exit Notes). Exit Notes in the aggregate principal amount of $85.3 million were issued on the Effective Date and will mature on April 22, 2027. Interest on the First Lien Notes accrues, at the Issuers’ option, at a rate of: (i) 9.00% per annum, payable in cash; (ii) 11.00% per annum, with 50% of such interest to be payable in cash and 50% of such interest to be payable by issuing additional First Lien Notes (or PIK Notes); or (iii) 13.00% per annum, with the entirety of such interest to be payable by issuing PIK Notes. The Issuers shall pay interest semi-annually in arrears on April 30 and October 31 of each year, commencing October 31, 2021. In addition, the Issuers shall pay 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. The First Lien Notes Indenture provides for the early redemption of the First Lien Notes by the Issuers as follows: • before October 23, 2021, all of the First Lien Notes may be redeemed at 101% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date; • on or after October 23, 2021 and prior to April 22, 2023, the First Lien Notes may be redeemed, in whole or in part, at any time and from time to time at a redemption price equal to 100% of the principal amount plus the Applicable Premium (as defined in the First Lien Notes Indenture) as of, and accrued and unpaid interest, if any, to, but excluding, the applicable redemption date; • on or after April 22, 2023, the First Lien Notes may be redeemed, in whole or in part, at any time and from time to time at fixed redemption prices (expressed as percentages of the principal amount) plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date; and • upon a Change of Control (as defined in the First Lien Notes Indenture), the Issuers must offer to purchase all remaining outstanding First Lien Notes at a redemption price equal to 101% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date, within 30 days of such Change of Control. The First Lien Notes Indenture contains covenants that limit, among other things, the ability of the Company and certain of its subsidiaries to: (i) incur, assume or guarantee additional indebtedness; (ii) pay dividends or distributions on capital stock or redeem or repurchase capital stock; (iii) make investments; (iv) repay or redeem junior debt; (v) sell stock of its subsidiaries; (vi) transfer or sell assets; (vii) enter into sale and leaseback transactions; (viii) create, incur or assume liens; or (ix) enter into transactions with certain affiliates. These covenants are subject to a number of important limitations and exceptions. The First Lien Notes Indenture also provides for certain customary events of default, including, among other things, nonpayment of principal or interest, breach of covenants, 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, and cross acceleration, which would permit the principal, premium, if any, interest and other monetary obligations on all the then outstanding First Lien Notes to be declared due and payable immediately. At September 30, 2021, we were in compliance with all covenants under the First Lien Notes Indenture. The Exit Notes were valued at a 101% of par value for fresh start accounting purposes and are presented net of debt issuance costs of $2.5 million, which are being amortized as interest expense over the stated maturity of the notes using the effective interest method. At September 30, 2021, we had Exit Notes outstanding aggregating $85.3 million, which accrue interest at 9.0% per annum, assuming a cash interest payment option, and had an effective interest rate of 9.7% per annum. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
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 determined, we record a liability for the amount of the estimated loss at the time that both of these criteria are met. Our management believes that we have recorded adequate accruals for any liabilities that may reasonably be expected to result from these claims. Asbestos Litigation We are one of several unrelated defendants in lawsuits filed in Louisiana state courts alleging that defendants manufactured, distributed or utilized drilling mud containing asbestos and, in our case, allowed such drilling mud to have been utilized aboard our drilling rigs. The plaintiffs seek, among other things, an award of unspecified compensatory and punitive damages. The manufacture and use of asbestos-containing drilling mud had already ceased before we acquired any of the drilling rigs addressed in these lawsuits. We believe that we are not liable for the damages asserted in the lawsuits pursuant to the terms of our 1989 asset purchase agreement with Diamond M Corporation. We are unable to estimate our potential exposure, if any, to these lawsuits at this time but do not believe that our ultimate liability, if any, resulting from this litigation will have a material effect on our consolidated financial condition, results of operations or cash flows. 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 these taxes and the related penalties and interest and, accordingly, have recorded a $14.2 million and $13.5 million liability at September 30, 2021 and December 31, 2020, 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 consolidated financial condition, results of operations or cash flows. In addition, to defend against these assessments through all applicable proceedings, including any necessary judicial appeals, we could be required to post appeal bonds or other forms of guarantees, some of which may require cash collateral for up to the full amount of the guarantees. If we are required to post cash collateral to support any such guarantees, we intend to utilize a combination of cash on hand and availability under our Exit Revolving Credit Agreement, which could have a material adverse effect on our liquidity. Other Litigation We have been named in various other claims, lawsuits or threatened actions that are incidental to the ordinary course of our business, including a claim by one of our customers in Brazil, Petróleo Brasileiro S.A. (or Petrobras) that it will seek to recover from its contractors, including us, any taxes, penalties, interest and fees that it must pay to the Brazilian tax authorities for our applicable portion of withholding taxes related to Petrobras’ charter agreements with its contractors. We intend to defend these matters vigorously; however, litigation is inherently unpredictable, and the ultimate outcome or effect of any claim, lawsuit or action cannot be predicted with certainty. As a result, there can be no assurance as to the ultimate outcome of any litigation matter. Any claims against us, whether meritorious or not, could cause us to incur significant costs and expenses and require significant amounts of management and operational time and resources. In the opinion of our management, no such pending or known threatened claims, actions or proceedings against us are expected to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Personal Injury Claims Under our primary insurance policies, our deductibles for marine liability insurance coverage with respect to personal injury claims, which primarily result from Jones Act liability in the U.S. Gulf of Mexico, are $5.0 million for the first occurrence and vary in amounts ranging between $5.0 million and, if aggregate claims exceed certain thresholds, 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 September 30, 2021 our estimated liability for personal injury claims was $13.0 million, of which $5.5 million and $7.5 million were recorded in “Accrued liabilities” and “Other liabilities,” respectively, in our unaudited Condensed Consolidated Balance Sheets. At December 31, 2020 our estimated liability for personal injury claims was $14.7 million, of which $5.9 million and $8.8 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 and volume of personal injuries claimed; • the unpredictability of legal jurisdictions where the claims will ultimately be litigated; • inconsistent court decisions; and • the risks and lack of predictability inherent in personal injury litigation. Letters of Credit and Other We were contingently liable as of September 30, 2021 in the aggregate amount of $24.5 million under certain customs, performance, tax and VAT bonds and letters of credit. Agreements relating to approximately $18.4 million of these tax and customs bonds can require collateral at any time, while the remaining agreements, aggregating $6.1 million, cannot require collateral except in events of default. At September 30, 2021, w 6.0 Prepaid expenses and other current assets” at September 30, 2021 |
Leases and Lease Commitments
Leases and Lease Commitments | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases and Lease Commitments | 12. Leases and Lease Commitments On March 31, 2021, we signed an amendment to our long-term operating lease agreement for BOP and related well control equipment (or Well Control Equipment) on our four drillships, which became effective on the Effective Date. 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 is considered a lease modification effective on April 23, 2021, whereby we were required to reassess lease classification and remeasure the corresponding 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 right-of-use asset and lease liability to include the estimated purchase option price of the Well Control Equipment. At the date of the modification, we had an aggregate prepaid rent balance attributable to the original sale and lease back transaction for the Well Control Equipment operating lease right-of-use asset within “Other assets” in our Consolidated Balance Sheets. This balance was written off in connection with fresh start accounting at the Effective Date. We have used our incremental borrowing rate to discount the future lease payments for these finance leases as the rate implicit in the leases is not readily determinable. The incremental borrowing rate was determined based on the secured borrowing rates negotiated in relation to our reorganization and the valuations received for our new debt. Components of expense attributable to these finance leases are as follows (in thousands): Successor Period from April 24 through September 30, 2021 Finance lease cost: Amortization of ROU assets $ 7,552 Interest on lease liabilities 5,006 Total $ 12,558 Supplemental information related to the finance leases is as follows (in thousands, except weighted-average data): Successor Period from April 24 through September 30, 2021 Finance Leases: Operating cash flows used $ 5,006 Financing cash flows used 6,011 ROU assets obtained in exchange for lease liabilities 174,571 Weighted-average remaining lease term 4.69 years Weighted-average discount rate 6.72 % Maturities of the finance lease liabilities as of September 30, 2021 are as follows (in thousands): 2021 (excluding nine months ended September 30, 2021) $ 6,624 2022 26,280 2023 26,280 2024 26,352 2025 26,280 2026 96,430 Thereafter — Total lease payments 208,246 Less: interest (40,190 ) Total lease liability $ 168,056 Additionally, during the period from April 24 through September 30, 2021, we commenced various new operating leases associated with an integrated services agreement with one of our customers under which we lease requested equipment for the duration of the drilling contract. As a result, we recorded approximately $13 million of ROU assets and offsetting lease liabilities during the period for the leased equipment which had an estimated remaining lease term of approximately 14 months at September 30, 2021. Amounts recognized in our unaudited Condensed Consolidated Balance Sheets for both our operating and finance leases are as follows: Successor Predecessor September 30, 2021 December 31, 2020 Operating Leases: Other assets $ 41,812 $ 154,796 Accrued liabilities (16,354 ) (5,072 ) Other liabilities (25,373 ) (23,476 ) Liabilities subject to compromise (1) — (112,646 ) Finance Leases: Drilling and other property and equipment, net of accumulated depreciation 167,019 — Current finance lease liabilities (15,599 ) — Noncurrent finance lease liabilities (152,457 ) — (1) Balance at December 31, 2020 included current and noncurrent operating lease liabilities of $16.7 million and $95.9 million, respectively |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes Upon emergence from the Chapter 11 Cases, we recognized Cancellation of Debt Income (or CODI). The Internal Revenue Code provides that a debtor in a Chapter 11 bankruptcy case may exclude CODI from taxable income but must reduce certain tax attributes. The estimated amount of CODI is $1,266.0 million, which is expected to be fully offset by a decrease in net operating losses and tax basis in assets. The actual reduction in tax attributes does not occur until the end of the calendar year and is expected to be fully offset by a corresponding decrease in valuation allowance. As a result of the emergence from bankruptcy, the Company experienced an ownership change under Section 382 of the Internal Revenue Code, which is expected to result in future annual limitations on the usage of any remaining U.S. outstanding tax attributes. On September 3, 2019, the Swiss federal government, along with the Canton of Zug, enacted tax legislation, which we refer to as Swiss Tax Reform, effective January 1, 2020. At the time Swiss Tax Reform was enacted, uncertainty with regard to the tax basis of depreciable property led us to record a $187.0 million reserve for uncertain tax positions. Further clarification has been provided by the Swiss tax authorities such that we reversed the aforementioned reserve for uncertain tax positions during the period from April 1 through April 23, 2021. The reversal was offset by a corresponding increase in valuation allowance. |
Segments and Geographic Area An
Segments and Geographic Area Analysis | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segments and Geographic Area Analysis | 14. Segments and Geographic Area Analysis Although we provide contract drilling services with different types of offshore drilling rigs and also provide such services in many geographic locations, 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. 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 September 30, 2021, our active drilling rigs were located offshore five countries in addition to the United States. Revenues by geographic area are presented by attributing revenues to the individual country where the services were performed. The following tables provide information about disaggregated revenue by country (in thousands): Successor Three Months Ended September 30, 2021 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 71,954 $ 17,075 $ 89,029 Australia 34,671 3,530 38,201 Senegal 23,223 6,679 29,902 United Kingdom 22,271 1,576 23,847 Brazil 20,511 — 20,511 Myanmar 10,526 1,861 12,387 Total $ 183,156 $ 30,721 $ 213,877 Successor Period from April 24, 2021 through September 30, 2021 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 122,732 $ 25,806 $ 148,538 Australia 58,620 8,810 67,430 Senegal 23,223 6,671 29,894 United Kingdom 35,186 2,529 37,715 Brazil 23,735 — 23,735 Myanmar 17,693 3,783 21,476 Total $ 281,189 $ 47,599 $ 328,788 Predecessor Period from January 1, 2021 through April 23, 2021 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 93,215 $ 7,048 $ 100,263 Australia 17,031 4,697 21,728 United Kingdom 27,967 2,300 30,267 Brazil 3,421 — 3,421 Myanmar 11,730 1,970 13,700 Total $ 153,364 $ 16,015 $ 169,379 Predecessor Three Months Ended September 30, 2020 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 57,523 $ 2,569 $ 60,092 Brazil 25,774 16 25,790 United Kingdom 25,178 2,198 27,376 Australia 16,279 2,570 18,849 Malaysia (1) 4,591 1,559 6,150 Total $ 129,345 $ 8,912 $ 138,257 Predecessor Nine Months Ended September 30, 2020 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 244,578 $ 8,998 $ 253,576 Brazil 145,921 (24 ) 145,897 United Kingdom 86,949 7,075 94,024 Australia 49,663 10,682 60,345 Malaysia (1) 8,737 3,051 11,788 Total $ 535,848 $ 29,782 $ 565,630 (1) Revenue earned by the Ocean Monarch during a standby period in Malaysia while awaiting clearance to begin operations in Myanmar waters. |
General Information (Policies)
General Information (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated. |
Restricted Cash | Restricted Cash We maintain restricted cash bank accounts, of which $24.2 million is subject to restrictions pursuant to a management and marketing services agreement with an offshore drilling company and $0.1 million is subject to restrictions pursuant to a court order, to settle certain professional fees incurred upon or prior to our emergence from bankruptcy. See Note 2 “Chapter 11 Proceedings.” We classify such restricted cash accounts in current assets if the restrictions are expected to expire or otherwise be resolved within one year or if such funds are considered to offset current liabilities. At September 30, 2021, our restricted cash was considered to be current and was recorded in “Restricted cash” in our unaudited Condensed Consolidated Balance Sheets. |
Change in Accounting Policies | Change in Accounting Policies 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, which are not related to the recertification of the vessel are expensed as incurred. Costs for vessel improvements which either extend the vessel’s useful life or increase the vessels functionality are capitalized and depreciated. The company’s previous policy (Predecessor) was to expense vessel recertification costs in the period incurred . |
Chapter 11 Proceedings (Tables)
Chapter 11 Proceedings (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Reorganizations [Abstract] | |
Schedule of Reorganization Items Incurred | The following tables provide information about reorganization items incurred during the three-month periods ended September 30, 2020 and 2021, the period from April 24 through September 30, 2021, the period from January 1 through April 23, 2021 and the nine-month period ended September 30, 2020 (in thousands): Successor Predecessor Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Professional fees $ 1,916 $ 18,634 Net gain on settlement with certain unsecured vendors — (9,971 ) Total reorganization items, net $ 1,916 $ 8,663 Successor Predecessor Period from April 24 through Period from January 1 through Nine Months Ended September 30, 2021 April 23, 2021 September 30, 2020 Professional fees $ 7,454 $ 51,084 $ 39,293 Fresh start valuation adjustments — 2,699,422 — Net gain on settlement of liabilities subject to compromise — (1,129,892 ) — Accrued backstop commitment premium — 10,424 — Write-off of predecessor directors and officers tail insurance policy — 6,932 — Other — 1,793 (4,205 ) Write-off of debt issuance costs — — 27,552 Total reorganization items, net $ 7,454 $ 1,639,763 $ 62,640 |
Summary of Liabilities Subject to Compromise | Liabilities subject to compromise at December 31, 2020 consisted of the following (in thousands): Predecessor December 31, 2020 Debt subject to compromise: Borrowings under RCF $ 436,000 3.45% Senior Notes due 2023 250,000 7.875% Senior Notes due 2025 500,000 5.70% Senior Notes due 2039 500,000 4.875% Senior Notes due 2043 750,000 Lease liabilities 112,646 Accrued interest 47,636 Accounts payable 16,725 Other accrued liabilities 1,302 Other liabilities 4,496 Total liabilities subject to compromise $ 2,618,805 |
Fresh Start Accounting (Tables)
Fresh Start Accounting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fresh Start Balance Sheet [Abstract] | |
Schedule of Reconciles Enterprise Value to Estimated Fair Value of Successor's Equity | The following table reconciles the enterprise value to the estimated fair value of the Successor’s equity as of the Effective Date (in thousands): April 23, 2021 Enterprise value $ 1,130,000 Plus: Cash and cash equivalents 79,982 Plus: Deferred tax assets and uncertain tax positions 10,810 Less: Fair value of debt (285,982 ) Fair value of Successor equity $ 934,810 |
Schedule of Reconciles Enterprise Value to Reorganization Value of Successors Equity | The following table reconciles enterprise value to the reorganization value of the Successor ( i.e. April 23, 2021 Enterprise value $ 1,130,000 Plus: Cash and cash equivalents 79,982 Plus: Non-interest bearing current liabilities 225,637 Plus: Non-interest bearing non-current liabilities 276,418 Plus: Deferred tax assets and uncertain tax positions 10,810 Reorganization value of Successor assets $ 1,722,847 |
Schedule of Effects on Consolidated Balance Sheet Due to Reorganization and Fresh Start Accounting Adjustments | The following illustrates the effects on the Company’s consolidated balance sheet due to the reorganization and fresh start accounting adjustments. The explanatory notes following the table below provide further details on the adjustments, including the assumptions and methods used to determine fair value for its assets, liabilities, and warrants. Unless otherwise indicated, dollar amounts are stated in thousands. April 23, 2021 Transaction Accounting Predecessor Reorganization Adjustments Fresh Start Adjustments Successor ASSETS Current assets: Cash and cash equivalents $ 333,699 $ (253,717 ) (a) $ — $ 79,982 Restricted cash 3,274 32,173 (b) — 35,447 Accounts receivable 134,104 — 802 (r) 134,906 Less: allowance for credit losses (5,555 ) — — (5,555 ) Accounts receivable, net 128,549 — 802 129,351 Prepaid expenses and other current assets 108,594 (15,484 ) (c) (34,455 ) (s) 58,655 Assets held for sale 1,000 — — 1,000 Total current assets 575,116 (237,028 ) (33,653 ) 304,435 Drilling and other property and equipment, net of accumulated depreciation 3,892,150 182,985 (d) (2,720,485 ) (t) 1,354,650 Other assets 179,783 (112,454 ) (e) (10,282 ) (u) 57,047 Deferred tax asset — — 6,716 (r) 6,716 Total assets $ 4,647,049 $ (166,497 ) $ (2,757,704 ) $ 1,722,848 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 66,397 $ (996 ) (f) $ — $ 65,401 Accrued liabilities 246,141 (67,125 ) (g) (55,961 ) (v) 123,055 Short-term debt 442,034 (442,034 ) (h) — Finance lease right of use liabilities, current — 15,148 (i) — 15,148 Taxes payable 22,034 — — 22,034 Total current liabilities 776,606 (495,007 ) (55,961 ) 225,638 Deferred tax liability 23,060 3,869 (j) (34,447 ) (w) — 7,518 (r) Other liabilities 217,434 (90,098 ) (k) (9,837 ) (x) 117,499 Finance lease right of use liabilities, noncurrent — 158,919 (l) — 158,919 Long-term debt — 285,982 (m) — 285,982 Total liabilities not subject to compromise 1,017,100 (136,335 ) (92,727 ) 788,038 Liabilities subject to compromise 2,044,877 (2,044,877 ) (n) — — Stockholders’ equity: Predecessor preferred stock — — — — Predecessor common stock 1,453 (1,453 ) (o) — — Predecessor additional paid-in capital 2,029,978 (2,029,978 ) (o) — — Predecessor treasury stock (206,163 ) 206,163 (o) — — Successor preferred stock — — — — Successor common stock — 10 (p) — 10 Successor additional paid-in capital — 934,800 (p) — 934,800 Successor treasury stock — — — — Accumulated deficit (240,196 ) 2,905,173 (q) (2,664,977 ) (y) — Total stockholders’ equity 1,585,072 2,014,715 (2,664,977 ) 934,810 Total liabilities and stockholders’ equity $ 4,647,049 $ (166,497 ) $ (2,757,704 ) $ 1,722,848 Reorganization Adjustments (a) Reflects the net cash payments that occurred on the Effective Date as follows: April 23, 2021 Funding of professional fee escrow account $ (35,003 ) Payment of non-retained professional fees (14,087 ) Payment of Predecessor revolving credit facility, including accrued interest (479,627 ) Proceeds from Exit Facilities 200,000 Receipt of cash from the issuance of Exit Notes through primary Private Placement and primary Rights Offering 75,000 Change in cash and cash equivalents $ (253,717 ) (b) Reflects the change in restricted cash for the following activities: April 23, 2021 Funding of professional fee escrow account $ 35,003 Payment of key employee incentive plan holdback escrow account (1,697 ) Payment of pre-petition trade claims (1,133 ) Change in restricted cash $ 32,173 (c) Reflects the changes in prepaid expenses and other current assets for the following activities: April 23, 2021 Reduction of prepaid expense for success fees $ (1,095 ) Reclassification of debt issuance costs to other assets and long-term debt (10,328 ) Reclassification of payment-in-kind upfront fee related to the Exit RCF to other assets (3,478 ) Write-off of Predecessor directors and officers tail insurance policy (583 ) Change in prepaid expenses and other current assets $ (15,484 ) (d) As a result of an amendment that became effective on the Effective Date, the BOP leases were recharacterized from operating leases to finance leases pursuant to ASC Topic 842, Leases (or ASC 842). The impact of the recharacterization resulted in the reclassification of the ROU asset of $116.2 million from “Other assets” into “Drilling and other property and equipment.” The value of the BOP ROU assets and the corresponding finance lease liabilities after the amendment were increased by an adjustment of $66.8 million in accordance with the modification guidance of ASC 842. (e) Reflects the changes in other assets for the following activities: April 23, 2021 Reclassification of BOP lease asset to drilling and other property and equipment $ (116,242 ) Reclassification of payment-in-kind upfront fee related to the Exit RCF from prepaid expenses and other current assets 3,478 Record debt issuance costs related to the Exit RCF 6,659 Write-off of Predecessor directors and officers tail insurance policy (6,349 ) Change in other assets $ (112,454 ) (f) Reflects the $1.0 million reduction in accounts payable for the payment of pre-petition trade claims and associated post-petition interest related to general unsecured claims. (g) Reflects the changes in accrued liabilities for the following activities: April 23, 2021 Record accrued liability related to success fees $ 10,699 Record accrued liability related to a bonus accrual under the amended BOP services agreement 831 Reclassification of BOP short-term lease liability into a finance lease (17,225 ) Payment of non-retained professional fees (8,762 ) Payment of key employee incentive plan holdback awards (1,697 ) Payment of accrued interest related to Predecessor revolving credit facility (37,593 ) Reclassification of payment-in-kind upfront fee into the Exit RCF (3,478 ) Reclassification of backstop commitment premium to payment-in-kind Exit Notes (9,900 ) Change in accrued liabilities $ (67,125 ) (h) Reflects the changes in short-term debt for the following activities: April 23, 2021 Record Predecessor revolving credit facility cash paydown of principal $ (242,034 ) Reflects payment in full of the borrowings outstanding under the Predecessor RCF on the Effective Date (200,000 ) Change in short-term debt $ (442,034 ) (i) Reflects the reclassification of the current BOP operating lease liability to a finance lease of $17.2 million, net of the modification pursuant to ASC 842 of the current BOP finance lease liability of $2.1 million. (j) Reflects the adjustment to deferred taxes of $3.9 million due to the step plan adjustments recorded as a result of the Plan. (k) Reflects the reclassification of the non-current BOP operating lease liability to a finance lease of $(90.1) million. (l) Reflects the reclassification of the non-current BOP operating lease liability to a finance lease of $90.1 million and the modification of the non-current BOP finance lease liability of $68.8 million pursuant to ASC 842. (m) Reflects the changes in long-term debt for the following activities: April 23, 2021 Borrowings drawn under the Exit Facilities $ 200,000 Record payment-in-kind upfront fee related to the Exit RCF 3,478 Issuance of Exit Notes for cash 75,000 Record 1% premium associated with Exit Notes 749 Record backstop commitment premium to payment-in-kind Exit Notes 10,424 Record debt issuance costs related to Exit Term Loans and Exit Notes (3,669 ) Change in long-term debt $ 285,982 (n) Liabilities subject to compromise were settled as follows in accordance with the Plan: April 23, 2021 Senior Notes Claims $ 2,044,877 Total settled liabilities subject to compromise 2,044,877 Issuance of New Diamond Common Shares to holders of Senior Notes Claims (639,965 ) Issuance of New Diamond Common Shares to participants of the Rights Offering and Private Placements (274,271 ) Record 1% premium associated with Exit Notes (749 ) Pre-tax gain on settlement of liabilities subject to compromise $ 1,129,892 (o) Reflects the cancelation of the Predecessor’s common stock, treasury stock and related components of the Predecessor’s additional paid-in capital. (p) The following reconciles reorganization adjustments made to the Successor’s common stock and Successor’s additional paid-in capital: April 23, 2021 Fair value of New Diamond Common Shares issued to holders of Senior Notes Claims $ 914,236 Fair value of Emergence Warrants issued to Predecessor equity holders 20,574 Total change in Successor common stock and additional paid-in capital 934,810 Less: Par value of Successor common stock (10 ) Successor additional paid-in capital $ 934,800 (q) Reflects the cumulative net impact of the effects on accumulated deficit as follows: April 23, 2021 Success fee recognized on the Effective Date $ (17,120 ) Pre-tax gain on settlement of liabilities subject to compromise 1,129,892 Backstop commitment expense to record difference between accrued termination fee and issuance of payment-in-kind Exit Notes upon emergence (524 ) Write-off of Predecessor directors and officers tail insurance policy (6,932 ) Other emergence effects (137 ) Expense related to bonus accrual under BOP services agreement (831 ) Cancellation of Predecessor common stock, additional paid-in capital and treasury stock 1,825,268 Issuance of Emergence Warrants to Predecessor equity holders (20,574 ) Change in deferred tax as a result of step plan adjustments (3,869 ) Change in accumulated deficit $ 2,905,173 Fresh Start Adjustments (r) Reclassification of a net debit in the “Deferred tax liability” account to “Deferred tax asset” after the adjustment pursuant to ASC 740 based on the impact of the tax effects of the reorganization and the fair value ascribed to the enterprise upon emergence, with a portion classified to “Accounts receivable” based on the expected amount to be received from the amended tax return. (s) Reflects the write-off of current deferred contract assets of $(27.3) million, as there is no future benefit to be recognized by the Successor, and the fair value adjustment of $(7.2) million to rig spare parts and supplies. (t) Reflects the fair value adjustment to “Drilling and other property and equipment” and the elimination of accumulated depreciation of $(2,712.1) million. In addition, the adjustment reflects the fair value adjustment of $(8.4) million to the BOP finance lease assets by setting the ROU assets equal to the ROU liabilities less the prepaid amounts. Refer to the valuation procedures set forth above with respect to valuing the rigs and related equipment. (u) Reflects the fair value adjustments to “Other assets” for the following: April 23, 2021 Write-off of long-term contract assets $ (10,029 ) Fair value adjustment to set asset equal to right-of-use liability for other operating leases (1,998 ) Fair value adjustment to true-up other operating leases for change in incremental borrowing rate 1,745 Change in other assets $ (10,282 ) (v) Reflects the write-off of current deferred contract liabilities of $(56.4) million as there is no future obligation to be performed by the Successor and the fair value adjustment of $0.4 million to current other lease liabilities because of the impact of applying the IBR at the Effective Date at emergence. (w) Reflects the adjustment to deferred taxes of $(34.4) million pursuant to ASC 740 based on the impact of the tax effects of the reorganization, inclusive of the Successor company’s tax basis, and the fair value ascribed to the enterprise upon emergence. (x) Reflects the write-off of non-current deferred contract liabilities of $(11.1) million as there is no future obligation to be performed by the Successor and the fair value adjustment of $1.3 million to non-current other lease liabilities. (y) Reflects the cumulative effect of the fresh start accounting adjustments discussed above. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Information about Receivables, Contract Assets and Contract Liabilities from Contracts with Customers | The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers (in thousands): Successor Predecessor September 30, December 31, 2021 2020 Trade receivables $ 157,292 $ 115,732 Current contract assets (1) 1,392 2,870 Current contract liabilities (deferred revenue) (1) (38,564 ) (51,763 ) Noncurrent contract liabilities (deferred revenue) (1) (12,711 ) (5,164 ) (1) Contract assets and contract liabilities may reflect balances which have been netted together on a contract basis. Net current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Accrued liabilities,” respectively, and net noncurrent contract liability balances are included in “Other liabilities” in our unaudited Condensed Consolidated Balance Sheets. |
Summary of Significant Changes in Contract Assets and Contract Liabilities Balances | Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands): Net Contract Balances Contract assets at January 1, 2021 (Predecessor) $ 2,870 Contract liabilities at January 1, 2021 (Predecessor) (56,927 ) Net balance at January 1, 2021 (Predecessor) (54,057 ) Decrease due to amortization of revenue included in the beginning contract liability balance 15,341 Increase due to cash received, excluding amounts recognized as revenue during the period (22,553 ) Increase due to revenue recognized during the period but contingent on future performance 1,442 Decrease due to transfer to receivables during the period (700 ) Write-off of deferred revenue due to application of fresh start accounting 60,945 Net balance at April 23, 2021 (Predecessor) $ 418 Increase due to cash received, excluding amounts recognized as revenue during the period (51,275 ) Increase due to revenue recognized during the period but contingent on future performance 974 Net balance at September 30, 2021(Successor) $ (49,883 ) Contract assets at September 30, 2021 (Successor) $ 1,392 Contract liabilities at September 30, 2021 (Successor) (51,275 ) |
Summary of Specified Types Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations | The following table reflects the specified types of revenue expected to be recognized in the future related to unsatisfied performance obligations as of September 30, 2021 (in thousands): For the Years Ending December 31, 2021 (1) 2022 2023 2024 Total Mobilization and contract preparation revenue $ 1,008 $ 3,941 $ 3,912 $ 332 $ 9,193 Capital modification revenue 7,542 23,485 5,270 414 36,711 Demobilization and other deferred revenue 5,837 255 — — 6,092 Total $ 14,387 $ 27,681 $ 9,182 $ 746 $ 51,996 (1) Represents the three-month |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Accounts Receivable, Net of Allowance for Credit Losses | Accounts receivable, net of allowance for credit losses, consist of the following (in thousands): Successor Predecessor September 30, December 31, 2021 2020 Trade receivables $ 157,292 $ 115,732 Value added tax receivables 9,667 10,781 Federal income tax receivables 8,420 8,420 Related party receivables 71 78 Other 183 1,211 175,633 136,222 Allowance for credit losses (5,614 ) (5,562 ) Total $ 170,019 $ 130,660 |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): Successor Predecessor September 30, December 31, 2021 2020 Collateral deposits $ 18,570 $ — Prepaid taxes 17,440 16,112 Deferred contract costs 7,501 19,808 Prepaid insurance 4,292 2,446 Prepaid rig costs 3,575 2,317 Rig spare parts and supplies 3,251 12,606 Current contract assets 1,392 2,870 Prepaid legal retainers 432 2,408 Other 5,648 3,708 Total $ 62,101 $ 62,275 |
Accrued Liabilities | Accrued liabilities consist of the following (in thousands): Successor Predecessor September 30, December 31, 2021 2020 Deferred revenue $ 38,564 $ 51,763 Payroll and benefits 31,122 30,296 Rig operating costs 27,678 21,123 Current operating lease liability 16,354 5,072 Personal injury and other claims 5,710 6,495 Shorebase and administrative costs 5,536 17,275 Interest payable 5,254 — Accrued capital project/upgrade costs 3,096 7,075 Other 872 1,689 Total $ 134,186 $ 140,788 |
Noncash Operating, Investing and Financing Activities | Noncash operating, investing and financing activities excluded from the unaudited Condensed Consolidated Statements of Cash Flows and other supplemental cash flow information is as follows (in thousands): Successor Predecessor Period from April 24 Period from January 1 Nine Months Ended through September 30, through April 23, September 30, 2021 2021 2020 Accrued but unpaid capital expenditures at period end $ 3,096 $ 18,617 $ 5,242 Accrued but unpaid debt issuance costs and arrangement fees (1) — 7,588 — Common stock withheld for payroll tax obligations (2) — — 395 Cash interest payments 5,431 37,593 19,843 Cash paid for reorganization items, net 35,398 37,566 23,818 Cash income taxes paid, net of (refunds): Foreign 1,464 3,460 11,229 U.S. Federal 468 — (42,462 ) State — (34 ) 36 (1) related to our exit financing that were we incurred and capitalized financing costs of $13.8 million in relation to our exit financing ( 2 ) Represents the cost of 131,698 shares of common stock withheld to satisfy payroll tax obligations incurred as a result of the vesting of restricted stock units during the nine-month period ended September 30, 2020. This cost is presented as a deduction from stockholders’ equity in “Treasury stock” in the Predecessor’s unaudited Condensed Consolidated Balance Sheet at December 31, 2020. |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Nonrecurring Basis | Assets measured at fair value are summarized below (in thousands). Successor September 30, 2021 Fair Value Measurements Using Successor Predecessor Level 1 Level 2 Level 3 Assets at Fair Value Total Losses for Period from April 24 to September 30, 2021 Total Losses for Period from January 1 to April 23, 2021 (1) Nonrecurring fair value measurements: Impaired assets (1) $ — $ — $ — $ — $ — $ 197,027 (1) Represents an impairment charge recognized during the three months ended March 31, 2021 of one semisubmersible rig, which was written down to its estimated fair value. See Note 5 “Impairment of Assets.” Predecessor December 31, 2020 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Total Losses for Year Ended (1) Nonrecurring fair value measurements: Impaired assets (2) $ — $ — $ 1,000 $ 1,000 $ 842,016 (1) (2) Represents the total book value as of December 31, 2020 of one semisubmersible rig, which was written down to its estimated fair value during the fourth quarter of 2020. |
Fair Values and Related Carrying Values of Our Debt Instruments | Fair values and related carrying values of our long-term debt and the Senior Notes are shown below (in millions). Successor Predecessor September 30, 2021 December 31, 2020 Fair Value Carrying Value Fair Value Carrying Value Exit Term Loans $ 100.0 $ 100.0 — — Exit Notes 86.2 86.1 — — 3.45% Senior Notes due 2023 — — $ 30.6 $ 250.0 7.875% Senior Notes due 2025 — — 61.3 500.0 5.70% Senior Notes due 2039 — — 61.2 500.0 4.875% Senior Notes due 2043 — — 91.9 750.0 |
Drilling and Other Property a_2
Drilling and Other Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Cost and Accumulated Depreciation of Drilling and Other Property and Equipment | Cost and accumulated depreciation of drilling and other property and equipment are summarized as follows (in thousands): Successor Predecessor September 30, December 31, 2021 2020 Drilling rigs and equipment $ 1,186,100 $ 6,987,630 Finance lease right of use asset 174,571 — Land and buildings 9,823 41,072 Office equipment and other 2,217 83,016 Cost 1,372,711 7,111,718 Less: accumulated depreciation (43,886 ) (2,988,909 ) Drilling and other property and equipment, net $ 1,328,825 $ 4,122,809 |
Prepetition Revolving Credit _2
Prepetition Revolving Credit Facility, Senior Notes and Exit Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Senior Notes | At December 31, 2020, the Senior Notes were comprised of the following debt issues and were reported as “Liabilities subject to compromise” in the Predecessor’s unaudited Condensed Consolidated Balance Sheet (in thousands): Predecessor December 31, 2020 3.45% Senior Notes due 2023 $ 250,000 7.875% Senior Notes due 2025 500,000 5.70% Senior Notes due 2039 500,000 4.875% Senior Notes due 2043 750,000 Total Senior Notes, net $ 2,000,000 |
Summary of Carrying Value of Long-term Debt, Net of Unamortized Discount, Premium and Debt Issuance Costs | At September 30, 2021, the carrying value of the Successor long-term debt (or Exit Debt), net of unamortized discount, premium and debt issuance costs, was comprised as follows (in thousands): Successor September 30, 2021 Borrowings under Exit RCF $ 123,478 Exit Term Loans 98,995 Exit Notes 83,672 Total Exit Debt, net $ 306,145 |
Summary of Aggregate Annual Maturity of Exit Debt | As of September 30, 2021, the aggregate annual maturity of the Successor Exit Debt, excluding net unamortized premium and debt issuance costs of $0.8 million and $3.5 million, respectively, was as follows (in thousands): Aggregate Principal Amount Year Ending December 31, 2021 $ — 2022 — 2023 — 2024 — 2025 — Thereafter 308,799 Total maturities of long-term debt $ 308,799 |
Leases and Lease Commitments (T
Leases and Lease Commitments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Components of Expense Attributable to Finance Leases | Components of expense attributable to these finance leases are as follows (in thousands): Successor Period from April 24 through September 30, 2021 Finance lease cost: Amortization of ROU assets $ 7,552 Interest on lease liabilities 5,006 Total $ 12,558 |
Supplemental Information Related to Finance Leases | Supplemental information related to the finance leases is as follows (in thousands, except weighted-average data): Successor Period from April 24 through September 30, 2021 Finance Leases: Operating cash flows used $ 5,006 Financing cash flows used 6,011 ROU assets obtained in exchange for lease liabilities 174,571 Weighted-average remaining lease term 4.69 years Weighted-average discount rate 6.72 % |
Schedule of Maturities of Finance Lease Liabilities | Maturities of the finance lease liabilities as of September 30, 2021 are as follows (in thousands): 2021 (excluding nine months ended September 30, 2021) $ 6,624 2022 26,280 2023 26,280 2024 26,352 2025 26,280 2026 96,430 Thereafter — Total lease payments 208,246 Less: interest (40,190 ) Total lease liability $ 168,056 |
Schedule of Amounts Recognized in Unaudited Condensed Consolidated Balance Sheets | Amounts recognized in our unaudited Condensed Consolidated Balance Sheets for both our operating and finance leases are as follows: Successor Predecessor September 30, 2021 December 31, 2020 Operating Leases: Other assets $ 41,812 $ 154,796 Accrued liabilities (16,354 ) (5,072 ) Other liabilities (25,373 ) (23,476 ) Liabilities subject to compromise (1) — (112,646 ) Finance Leases: Drilling and other property and equipment, net of accumulated depreciation 167,019 — Current finance lease liabilities (15,599 ) — Noncurrent finance lease liabilities (152,457 ) — (1) Balance at December 31, 2020 included current and noncurrent operating lease liabilities of $16.7 million and $95.9 million, respectively |
Segments and Geographic Area _2
Segments and Geographic Area Analysis (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Information about Disaggregated Revenue by Country | The following tables provide information about disaggregated revenue by country (in thousands): Successor Three Months Ended September 30, 2021 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 71,954 $ 17,075 $ 89,029 Australia 34,671 3,530 38,201 Senegal 23,223 6,679 29,902 United Kingdom 22,271 1,576 23,847 Brazil 20,511 — 20,511 Myanmar 10,526 1,861 12,387 Total $ 183,156 $ 30,721 $ 213,877 Successor Period from April 24, 2021 through September 30, 2021 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 122,732 $ 25,806 $ 148,538 Australia 58,620 8,810 67,430 Senegal 23,223 6,671 29,894 United Kingdom 35,186 2,529 37,715 Brazil 23,735 — 23,735 Myanmar 17,693 3,783 21,476 Total $ 281,189 $ 47,599 $ 328,788 Predecessor Period from January 1, 2021 through April 23, 2021 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 93,215 $ 7,048 $ 100,263 Australia 17,031 4,697 21,728 United Kingdom 27,967 2,300 30,267 Brazil 3,421 — 3,421 Myanmar 11,730 1,970 13,700 Total $ 153,364 $ 16,015 $ 169,379 Predecessor Three Months Ended September 30, 2020 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 57,523 $ 2,569 $ 60,092 Brazil 25,774 16 25,790 United Kingdom 25,178 2,198 27,376 Australia 16,279 2,570 18,849 Malaysia (1) 4,591 1,559 6,150 Total $ 129,345 $ 8,912 $ 138,257 Predecessor Nine Months Ended September 30, 2020 Total Contract Drilling Revenues Revenues Related to Reimbursable Expenses Total United States $ 244,578 $ 8,998 $ 253,576 Brazil 145,921 (24 ) 145,897 United Kingdom 86,949 7,075 94,024 Australia 49,663 10,682 60,345 Malaysia (1) 8,737 3,051 11,788 Total $ 535,848 $ 29,782 $ 565,630 (1) Revenue earned by the Ocean Monarch during a standby period in Malaysia while awaiting clearance to begin operations in Myanmar waters. |
General Information - Additiona
General Information - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 | |
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 24,266 | $ 35,447 | $ 24,511 |
Restricted cash, nature of restriction, description | We maintain restricted cash bank accounts, of which $24.2 million is subject to restrictions pursuant to a management and marketing services agreement with an offshore drilling company and $0.1 million is subject to restrictions pursuant to a court order, to settle certain professional fees incurred upon or prior to our emergence from bankruptcy. | ||
Management and Marketing Services Agreement [Member] | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 24,200 | ||
Professional Fees [Member] | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 100 |
Chapter 11 Proceedings - Additi
Chapter 11 Proceedings - Additional Information (Detail) - USD ($) | Apr. 23, 2021 | Jan. 22, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Apr. 23, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 22, 2021 | Mar. 31, 2021 |
Liabilities Subject To Compromise [Line Items] | |||||||||||
Line of credit | $ 436,000,000 | ||||||||||
Reorganization, date plan confirmed | Apr. 8, 2021 | ||||||||||
Reorganization, effective date of plan | Apr. 23, 2021 | ||||||||||
Authorizing issuance of shares of common stock representing equity interests percentage | 100.00% | 100.00% | |||||||||
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 | 500,000,000 | 750,000,000 | |||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.01 | $ 0.0001 | |||||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 25,000,000 | 50,000,000 | |||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.01 | $ 0.0001 | |||||
Common stock transferred | 30,000,000 | ||||||||||
New-money commitments to Debtors | $ 114,675,000 | ||||||||||
New stock warrants issued in exchange for common stock | 7,526,894 | ||||||||||
Common stock, shares issued | 100,000,019 | 100,075,000 | 100,000,019 | 100,075,000 | 145,264,000 | 100,075,000 | |||||
Common stock, shares outstanding | 100,000,019 | 100,075,000 | 100,000,019 | 100,075,000 | 138,054,000 | 100,075,000 | |||||
Warrants term | 5 years | 5 years | |||||||||
Common stock shares registration | 22,892,773 | ||||||||||
Senior notes | $ 2,000,000,000 | ||||||||||
Payment for professional fees | $ 37,566,000 | $ 35,398,000 | $ 23,818,000 | ||||||||
Accrued interest | $ 5,254,000 | 5,254,000 | $ 5,254,000 | ||||||||
Interest expense | 9,777,000 | $ 98,000 | $ 34,827,000 | 16,874,000 | $ 42,753,000 | ||||||
Computershare Inc. [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Warrants issued | 7,526,894 | ||||||||||
Warrants term | 5 years | 5 years | |||||||||
Warrants exercise years | 5 years | ||||||||||
Warrants exercisable percentage | 7.00% | ||||||||||
Warrants exercise price | $ 29.22 | $ 29.22 | |||||||||
Senior Notes [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Common stock transferred | 70,000,019 | ||||||||||
Pro rata share received percentage | 70.00% | ||||||||||
Liabilities subject to compromise principal balance | $ 2,000,000,000 | $ 2,000,000,000 | |||||||||
Liabilities subject to compromise accrued interest | 44,900,000 | 44,900,000 | |||||||||
Senior Secured Term Loan Credit Agreement [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Senior notes | $ 100,000,000 | 100,000,000 | |||||||||
Debt instrument maturity date | Apr. 22, 2027 | ||||||||||
Debt instrument carrying amount | $ 100,000,000 | 100,000,000 | |||||||||
First Lien Notes [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Senior notes | $ 85,300,000 | 85,300,000 | |||||||||
Debt instrument maturity date | Apr. 22, 2027 | ||||||||||
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 | 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 | ||||||||||
First Lien Notes [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Senior notes maturity year | 2027 | ||||||||||
First Lien Notes [Member] | Cash Pay Rate [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Interest rate of senior notes | 9.00% | 9.00% | |||||||||
First Lien Notes [Member] | Cash Pay Rate and Payment in Kind Rate [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Interest rate of senior notes | 11.00% | 11.00% | |||||||||
First Lien Notes [Member] | Payment in Kind Rate [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Interest rate of senior notes | 13.00% | 13.00% | |||||||||
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 | |||||||||
Credit Facility [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Accrued interest | $ 35,300,000 | ||||||||||
Interest expense | $ 23,400,000 | ||||||||||
5.70% Senior Notes due 2039 [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Interest rate of senior notes | 5.70% | 5.70% | |||||||||
Senior notes maturity year | 2039 | ||||||||||
Senior notes | $ 500,000,000 | ||||||||||
3.45% Senior Notes due 2023 [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Interest rate of senior notes | 3.45% | 3.45% | |||||||||
Senior notes maturity year | 2023 | ||||||||||
Senior notes | $ 250,000,000 | ||||||||||
4.875% Senior Notes due 2043 [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Interest rate of senior notes | 4.875% | 4.875% | |||||||||
Senior notes maturity year | 2043 | ||||||||||
Senior notes | $ 750,000,000 | ||||||||||
7.875% Senior Notes due 2025 [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Interest rate of senior notes | 7.875% | 7.875% | |||||||||
Senior notes maturity year | 2025 | ||||||||||
Senior notes | $ 500,000,000 | ||||||||||
Exit Term Loan Credit Facility [Member] | |||||||||||
Liabilities Subject To Compromise [Line Items] | |||||||||||
Line of credit | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | ||||||||
Senior notes | 100,000,000 | $ 100,000,000 | |||||||||
Maximum portion of facility used to settle RCF claims | $ 200,000,000 |
Chapter 11 Proceedings - Schedu
Chapter 11 Proceedings - Schedule of Reorganization Items Incurred (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Apr. 23, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reorganizations [Abstract] | |||||
Professional fees | $ 1,916 | $ 18,634 | $ 51,084 | $ 7,454 | $ 39,293 |
Fresh start valuation adjustments | 2,699,422 | ||||
Net gain on settlement with certain unsecured vendors and liabilities subject to compromise | (9,971) | (1,129,892) | |||
Accrued backstop commitment premium | 10,424 | ||||
Write-off of predecessor directors and officers tail insurance policy | 6,932 | ||||
Other | 1,793 | (4,205) | |||
Write-off of debt issuance costs | 27,552 | ||||
Total reorganization items, net | $ 1,916 | $ 8,663 | $ 1,639,763 | $ 7,454 | $ 62,640 |
Chapter 11 Proceedings - Summar
Chapter 11 Proceedings - Summary of Liabilities Subject to Compromise (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Debt subject to compromise: | |
Borrowings under RCF | $ 436,000 |
Senior Notes | 2,000,000 |
Lease liabilities | 112,646 |
Accrued interest | 47,636 |
Accounts payable | 16,725 |
Other accrued liabilities | 1,302 |
Other liabilities | 4,496 |
Total liabilities subject to compromise | 2,618,805 |
3.45% Senior Notes due 2023 [Member] | |
Debt subject to compromise: | |
Senior Notes | 250,000 |
7.875% Senior Notes due 2025 [Member] | |
Debt subject to compromise: | |
Senior Notes | 500,000 |
5.70% Senior Notes due 2039 [Member] | |
Debt subject to compromise: | |
Senior Notes | 500,000 |
4.875% Senior Notes due 2043 [Member] | |
Debt subject to compromise: | |
Senior Notes | $ 750,000 |
Chapter 11 Proceedings - Summ_2
Chapter 11 Proceedings - Summary of Liabilities Subject to Compromise (Parenthetical) (Detail) | Jan. 22, 2021 | Dec. 31, 2020 |
3.45% Senior Notes due 2023 [Member] | ||
Liabilities Subject To Compromise [Line Items] | ||
Interest rate of senior notes | 3.45% | 3.45% |
7.875% Senior Notes due 2025 [Member] | ||
Liabilities Subject To Compromise [Line Items] | ||
Interest rate of senior notes | 7.875% | 7.875% |
5.70% Senior Notes due 2039 [Member] | ||
Liabilities Subject To Compromise [Line Items] | ||
Interest rate of senior notes | 5.70% | 5.70% |
4.875% Senior Notes due 2043 [Member] | ||
Liabilities Subject To Compromise [Line Items] | ||
Interest rate of senior notes | 4.875% | 4.875% |
Fresh Start Accounting - Additi
Fresh Start Accounting - Additional Information (Detail) $ in Thousands | Apr. 23, 2021USD ($)$ / shares |
Reorganization Chapter11 [Line Items] | |
Voting share of percentage | 50.00% |
Value of enterprise | $ 1,130,000 |
Percentage of economic obsolescence adjustment | 80.00% |
Weighted average incremental borrowing rate | 6.70% |
Percentage of estimated fair value of effective date | 101.00% |
Contractual strike price | $ / shares | 29.22 |
Warrants term | 5 years |
Expected volatility assumption | 70.00% |
Warrants risk-free rate assumption | 0.83% |
Minimum [Member] | |
Reorganization Chapter11 [Line Items] | |
Value of enterprise | $ 805,000 |
Maximum [Member] | |
Reorganization Chapter11 [Line Items] | |
Value of enterprise | 1,520,000 |
Mid-point | |
Reorganization Chapter11 [Line Items] | |
Value of enterprise | $ 1,130,000 |
Fresh Start Accounting - Schedu
Fresh Start Accounting - Schedule of Reconciles Enterprise Value to Estimated Fair Value of Successor's Equity (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Fresh Start Balance Sheet [Abstract] | |||
Enterprise value | $ 1,130,000 | ||
Cash and cash equivalents | $ 27,296 | 79,982 | $ 405,869 |
Plus: Deferred tax assets and uncertain tax positions | 10,810 | ||
Less: Fair value of debt | (285,982) | ||
Fair value of Successor equity | $ 934,810 |
Fresh Start Accounting - Sche_2
Fresh Start Accounting - Schedule of Reconciles Enterprise Value to Reorganization Value of Successors Equity (Detail) $ in Thousands | Apr. 23, 2021USD ($) |
Fresh Start Balance Sheet [Abstract] | |
Enterprise value | $ 1,130,000 |
Plus: Cash and cash equivalents | 79,982 |
Plus: Non-interest bearing current liabilities | 225,637 |
Plus: Non-interest bearing non-current liabilities | 276,418 |
Plus: Deferred tax assets and uncertain tax positions | 10,810 |
Reorganization value of Successor assets | $ 1,722,847 |
Fresh Start Accounting - Sche_3
Fresh Start Accounting - Schedule of Fresh Start Adjustments to Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Apr. 24, 2021 | Apr. 23, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||||||||
Cash and cash equivalents | $ 27,296 | $ 79,982 | $ 405,869 | |||||
Restricted cash | 24,266 | 35,447 | 24,511 | |||||
Accounts receivable | 175,633 | 134,906 | 136,222 | |||||
Less: allowance for credit losses | (5,614) | (5,555) | (5,562) | |||||
Accounts receivable, net | 170,019 | 129,351 | 130,660 | |||||
Prepaid expenses and other current assets | 62,101 | 58,655 | 62,275 | |||||
Assets held for sale | 1,000 | 1,000 | 2,000 | |||||
Total current assets | 284,682 | 304,435 | 625,315 | |||||
Drilling and other property and equipment, net of accumulated depreciation | 1,328,825 | 1,354,650 | 4,122,809 | |||||
Other assets | 78,226 | 57,047 | 200,329 | |||||
Noncurrent deferred tax assets, net | 6,716 | |||||||
Total assets | 1,691,733 | 1,722,848 | 4,948,453 | |||||
Current liabilities: | ||||||||
Accounts payable | 35,725 | 65,401 | 33,437 | |||||
Accrued liabilities | 134,186 | 123,055 | 140,788 | |||||
Current finance lease liabilities | 15,599 | 15,148 | ||||||
Taxes payable | 29,245 | 22,034 | 27,214 | |||||
Total current liabilities | 214,755 | 225,638 | 201,439 | |||||
Deferred tax liability | 2,433 | 28,338 | ||||||
Other liabilities | 128,122 | 117,499 | 117,305 | |||||
Noncurrent finance lease liabilities | 152,457 | 158,919 | ||||||
Long-term debt | 306,145 | 285,982 | ||||||
Total liabilities not subject to compromise | 803,912 | 788,038 | 347,082 | |||||
Liabilities subject to compromise | 2,618,805 | |||||||
Stockholders’ equity: | ||||||||
Predecessor or Successor preferred stock | ||||||||
Predecessor or Successor common stock | 10 | 1,453 | ||||||
Predecessor treasury stock, at cost | (206,163) | |||||||
Successor additional paid-in capital | 934,800 | |||||||
(Accumulated deficit) retained earnings | (52,475) | 157,297 | ||||||
Total stockholders’ equity | 887,821 | $ 888,509 | $ 934,810 | 934,810 | 1,982,566 | $ 2,132,104 | $ 2,230,689 | $ 3,232,210 |
Total liabilities and stockholders’ equity | 1,691,733 | 1,722,848 | 4,948,453 | |||||
Fresh Start Adjustments | ||||||||
Current assets: | ||||||||
Accounts receivable | 802 | |||||||
Accounts receivable, net | 802 | |||||||
Prepaid expenses and other current assets | (34,455) | |||||||
Total current assets | (33,653) | |||||||
Drilling and other property and equipment, net of accumulated depreciation | (2,720,485) | |||||||
Other assets | (10,282) | |||||||
Noncurrent deferred tax assets, net | 6,716 | |||||||
Total assets | (2,757,704) | |||||||
Current liabilities: | ||||||||
Accrued liabilities | (55,961) | |||||||
Total current liabilities | (55,961) | |||||||
Deferred tax liability | (34,447) | |||||||
Deferred tax asset, reclassification | 7,518 | |||||||
Other liabilities | (9,837) | |||||||
Total liabilities not subject to compromise | (92,727) | |||||||
Stockholders’ equity: | ||||||||
Predecessor or Successor preferred stock | ||||||||
(Accumulated deficit) retained earnings | (2,664,977) | |||||||
Total stockholders’ equity | (2,664,977) | |||||||
Total liabilities and stockholders’ equity | (2,757,704) | |||||||
Preferred Stock | ||||||||
Stockholders’ equity: | ||||||||
Predecessor or Successor preferred stock | ||||||||
Preferred Stock | Fresh Start Adjustments | ||||||||
Stockholders’ equity: | ||||||||
Predecessor or Successor preferred stock | ||||||||
Common Stock [Member] | ||||||||
Stockholders’ equity: | ||||||||
Predecessor or Successor common stock | 10 | |||||||
Total stockholders’ equity | $ 10 | $ 10 | $ 10 | $ 1,453 | $ 1,453 | $ 1,453 | $ 1,448 | |
Previously Reported | Reorganization, Chapter 11, Predecessor, before Adjustment | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 333,699 | |||||||
Restricted cash | 3,274 | |||||||
Accounts receivable | 134,104 | |||||||
Less: allowance for credit losses | (5,555) | |||||||
Accounts receivable, net | 128,549 | |||||||
Prepaid expenses and other current assets | 108,594 | |||||||
Assets held for sale | 1,000 | |||||||
Total current assets | 575,116 | |||||||
Drilling and other property and equipment, net of accumulated depreciation | 3,892,150 | |||||||
Other assets | 179,783 | |||||||
Total assets | 4,647,049 | |||||||
Current liabilities: | ||||||||
Accounts payable | 66,397 | |||||||
Accrued liabilities | 246,141 | |||||||
Short-term debt | 442,034 | |||||||
Taxes payable | 22,034 | |||||||
Total current liabilities | 776,606 | |||||||
Deferred tax liability | 23,060 | |||||||
Other liabilities | 217,434 | |||||||
Total liabilities not subject to compromise | 1,017,100 | |||||||
Liabilities subject to compromise | 2,044,877 | |||||||
Stockholders’ equity: | ||||||||
Predecessor or Successor preferred stock | ||||||||
Predecessor or Successor common stock | 1,453 | |||||||
Predecessor additional paid-in capital | 2,029,978 | |||||||
Predecessor treasury stock, at cost | (206,163) | |||||||
(Accumulated deficit) retained earnings | (240,196) | |||||||
Total stockholders’ equity | 1,585,072 | |||||||
Total liabilities and stockholders’ equity | 4,647,049 | |||||||
Previously Reported | Preferred Stock | Reorganization, Chapter 11, Predecessor, before Adjustment | ||||||||
Stockholders’ equity: | ||||||||
Predecessor or Successor preferred stock | ||||||||
Reorganization Adjustments | Reorganization, Chapter 11, Predecessor, before Adjustment | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | (253,717) | |||||||
Restricted cash | 32,173 | |||||||
Prepaid expenses and other current assets | (15,484) | |||||||
Total current assets | (237,028) | |||||||
Drilling and other property and equipment, net of accumulated depreciation | 182,985 | |||||||
Other assets | (112,454) | |||||||
Total assets | (166,497) | |||||||
Current liabilities: | ||||||||
Accounts payable | (996) | |||||||
Accrued liabilities | (67,125) | |||||||
Short-term debt | (442,034) | |||||||
Current finance lease liabilities | 15,148 | |||||||
Total current liabilities | (495,007) | |||||||
Deferred tax liability | 3,869 | |||||||
Other liabilities | (90,098) | |||||||
Noncurrent finance lease liabilities | 158,919 | |||||||
Long-term debt | 285,982 | |||||||
Total liabilities not subject to compromise | (136,335) | |||||||
Liabilities subject to compromise | (2,044,877) | |||||||
Stockholders’ equity: | ||||||||
Predecessor or Successor preferred stock | ||||||||
Predecessor or Successor common stock | (1,453) | |||||||
Predecessor additional paid-in capital | (2,029,978) | |||||||
Predecessor treasury stock, at cost | 206,163 | |||||||
Successor additional paid-in capital | 934,800 | |||||||
(Accumulated deficit) retained earnings | 2,905,173 | |||||||
Total stockholders’ equity | 2,014,715 | |||||||
Total liabilities and stockholders’ equity | (166,497) | |||||||
Reorganization Adjustments | Preferred Stock | Reorganization, Chapter 11, Predecessor, before Adjustment | ||||||||
Stockholders’ equity: | ||||||||
Predecessor or Successor preferred stock | ||||||||
Reorganization Adjustments | Common Stock [Member] | Reorganization, Chapter 11, Predecessor, before Adjustment | ||||||||
Stockholders’ equity: | ||||||||
Predecessor or Successor common stock | $ 10 |
Fresh Start Accounting - Sche_4
Fresh Start Accounting - Schedule of Net Cash Payments (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Reorganization Chapter11 [Line Items] | |||
Change in cash and cash equivalents | $ 27,296 | $ 79,982 | $ 405,869 |
Reorganization Adjustments | Reorganization, Chapter 11, Predecessor, before Adjustment | |||
Reorganization Chapter11 [Line Items] | |||
Funding of professional fee escrow account | (35,003) | ||
Payment of non-retained professional fees | (14,087) | ||
Payment of Predecessor revolving credit facility, including accrued interest | (479,627) | ||
Proceeds from Exit Facilities | 200,000 | ||
Receipt of cash from the issuance of Exit Notes through primary Private Placement and primary Rights Offering | 75,000 | ||
Change in cash and cash equivalents | $ (253,717) |
Fresh Start Accounting - Sche_5
Fresh Start Accounting - Schedule of Change in Restricted Cash (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Reorganization Chapter11 [Line Items] | |||
Change in restricted cash | $ 24,266 | $ 35,447 | $ 24,511 |
Reorganization Adjustments | Reorganization, Chapter 11, Predecessor, before Adjustment | |||
Reorganization Chapter11 [Line Items] | |||
Funding of professional fee escrow account | 35,003 | ||
Payment of key employee incentive plan holdback escrow account | (1,697) | ||
Payment of pre-petition trade claims | (1,133) | ||
Change in restricted cash | $ 32,173 |
Fresh Start Accounting - Sche_6
Fresh Start Accounting - Schedule of Changes in Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Reorganization Chapter11 [Line Items] | |||
Change in prepaid expenses and other current assets | $ 62,101 | $ 58,655 | $ 62,275 |
Reorganization Adjustments | Reorganization, Chapter 11, Predecessor, before Adjustment | |||
Reorganization Chapter11 [Line Items] | |||
Reduction of prepaid expense for success fees | (1,095) | ||
Reclassification of debt issuance costs to other assets and long-term debt | (10,328) | ||
Reclassification of payment-in-kind upfront fee related to the Exit RCF to other assets | (3,478) | ||
Write-off of Predecessor directors and officers tail insurance policy | (583) | ||
Change in prepaid expenses and other current assets | $ (15,484) |
Fresh Start Accounting - Reorga
Fresh Start Accounting - Reorganization Adjustments (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Reorganization Chapter11 [Line Items] | |||
ROU asset | $ 41,812 | $ 154,796 | |
Finance lease liabilities | 168,056 | ||
Reduction in accounts payable | $ 35,725 | $ 65,401 | $ 33,437 |
Reorganization Adjustments | |||
Reorganization Chapter11 [Line Items] | |||
Reclassification of current BOP operating lease liability to finance lease | 17,200 | ||
Adjustment to deferred taxes | 3,900 | ||
Reclassification of non-current BOP operating lease liability to finance lease | 90,100 | ||
ASC 842 | Reorganization Adjustments | |||
Reorganization Chapter11 [Line Items] | |||
Current BOP finance lease liability | 2,100 | ||
Non-current BOP finance lease liability | 68,800 | ||
Reorganization Adjustments | |||
Reorganization Chapter11 [Line Items] | |||
ROU asset | 116,200 | ||
Reorganization Adjustments | ASC 842 | |||
Reorganization Chapter11 [Line Items] | |||
Finance lease liabilities | 66,800 | ||
Reorganization, Chapter 11, Predecessor, before Adjustment | Reorganization Adjustments | |||
Reorganization Chapter11 [Line Items] | |||
Reduction in accounts payable | 1,000 | ||
Reorganization, Chapter 11, Predecessor, before Adjustment | Reorganization Adjustments | |||
Reorganization Chapter11 [Line Items] | |||
Reduction in accounts payable | $ (996) |
Fresh Start Accounting - Sche_7
Fresh Start Accounting - Schedule of Changes in Other Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Reorganization Chapter11 [Line Items] | |||
Change in other assets | $ 78,226 | $ 57,047 | $ 200,329 |
Reorganization Adjustments | Reorganization, Chapter 11, Predecessor, before Adjustment | |||
Reorganization Chapter11 [Line Items] | |||
Reclassification of BOP lease asset to drilling and other property and equipment | (116,242) | ||
Reclassification of payment-in-kind upfront fee related to the Exit RCF from prepaid expenses and other current assets | 3,478 | ||
Record debt issuance costs related to the Exit RCF | 6,659 | ||
Write-off of Predecessor directors and officers tail insurance policy | (6,349) | ||
Change in other assets | $ (112,454) |
Fresh Start Accounting - Sche_8
Fresh Start Accounting - Schedule of Changes in Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Reorganization Chapter11 [Line Items] | |||
Change in accrued liabilities | $ 134,186 | $ 123,055 | $ 140,788 |
Reorganization Adjustments | Reorganization, Chapter 11, Predecessor, before Adjustment | |||
Reorganization Chapter11 [Line Items] | |||
Record accrued liability related to success fees | 10,699 | ||
Record accrued liability related to a bonus accrual under the amended BOP services agreement | 831 | ||
Reclassification of BOP short-term lease liability into a finance lease | (17,225) | ||
Payment of non-retained professional fees | (8,762) | ||
Payment of key employee incentive plan holdback awards | (1,697) | ||
Payment of accrued interest related to Predecessor revolving credit facility | (37,593) | ||
Reclassification of payment-in-kind upfront fee into the Exit RCF | (3,478) | ||
Reclassification of backstop commitment premium to payment-in-kind Exit Notes | (9,900) | ||
Change in accrued liabilities | $ (67,125) |
Fresh Start Accounting - Sche_9
Fresh Start Accounting - Schedule of Changes in Short-Term Debt (Detail) - Reorganization Adjustments - Reorganization, Chapter 11, Predecessor, before Adjustment $ in Thousands | Apr. 23, 2021USD ($) |
Reorganization Chapter11 [Line Items] | |
Record Predecessor revolving credit facility cash paydown of principal | $ (242,034) |
Reflects payment in full of the borrowings outstanding under the Predecessor RCF on the Effective Date | (200,000) |
Change in short-term debt | $ (442,034) |
Fresh Start Accounting - Sch_10
Fresh Start Accounting - Schedule of Changes in Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 |
Reorganization Chapter11 [Line Items] | ||
Change in long-term debt | $ 306,145 | $ 285,982 |
Reorganization Adjustments | ||
Reorganization Chapter11 [Line Items] | ||
Record 1% premium associated with Exit Notes | 749 | |
Reorganization Adjustments | Reorganization, Chapter 11, Predecessor, before Adjustment | ||
Reorganization Chapter11 [Line Items] | ||
Borrowings drawn under the Exit Facilities | 200,000 | |
Record payment-in-kind upfront fee related to the Exit RCF | 3,478 | |
Issuance of Exit Notes for cash | 75,000 | |
Record 1% premium associated with Exit Notes | 749 | |
Record backstop commitment premium to payment-in-kind Exit Notes | 10,424 | |
Record debt issuance costs related to Exit Term Loans and Exit Notes | (3,669) | |
Change in long-term debt | $ 285,982 |
Fresh Start Accounting - Sch_11
Fresh Start Accounting - Schedule of Changes in Long-Term Debt (Parenthetical) (Detail) | Apr. 23, 2021 |
Reorganization Adjustments | |
Reorganization Chapter11 [Line Items] | |
Percentage of premium associated with exit notes | 1.00% |
Fresh Start Accounting - Sch_12
Fresh Start Accounting - Schedule of Liabilities Subject to Compromise were Settled (Detail) - Reorganization Adjustments $ in Thousands | Apr. 23, 2021USD ($) |
Reorganization Chapter11 [Line Items] | |
Senior Notes Claims | $ 2,044,877 |
Total settled liabilities subject to compromise | 2,044,877 |
Issuance of New Diamond Common Shares to holders of Senior Notes Claims | (639,965) |
Issuance of New Diamond Common Shares to participants of the Rights Offering and Private Placements | (274,271) |
Record 1% premium associated with Exit Notes | (749) |
Pre-tax gain on settlement of liabilities subject to compromise | $ 1,129,892 |
Fresh Start Accounting - Sch_13
Fresh Start Accounting - Schedule of Liabilities Subject to Compromise were Settled (Parenthetical) (Detail) | Apr. 23, 2021 |
Reorganization Adjustments | |
Reorganization Chapter11 [Line Items] | |
Percentage of premium associated with exit notes | 1.00% |
Fresh Start Accounting - Sch_14
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 | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Reorganization Chapter11 [Line Items] | |||
Less: Par value of Successor common stock | $ (10) | $ (1,453) | |
Successor additional paid-in capital | $ 940,286 | $ 2,029,979 | |
Reorganization Adjustments | Reorganization, Chapter 11, Predecessor, before Adjustment | |||
Reorganization Chapter11 [Line Items] | |||
Fair value of New Diamond Common Shares issued to holders of Senior Notes Claims | $ 914,236 | ||
Fair value of Emergence Warrants issued to Predecessor equity holders | 20,574 | ||
Total change in Successor common stock and additional paid-in capital | 934,810 | ||
Less: Par value of Successor common stock | 1,453 | ||
Successor additional paid-in capital | 934,800 | ||
Common Stock [Member] | |||
Reorganization Chapter11 [Line Items] | |||
Less: Par value of Successor common stock | (10) | ||
Common Stock [Member] | Reorganization Adjustments | Reorganization, Chapter 11, Predecessor, before Adjustment | |||
Reorganization Chapter11 [Line Items] | |||
Less: Par value of Successor common stock | $ (10) |
Fresh Start Accounting - Sch_15
Fresh Start Accounting - Schedule of Cumulative Net Impact of Effects on Accumulated Deficit (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Reorganization Chapter11 [Line Items] | |||
Change in accumulated deficit | $ (52,475) | $ 157,297 | |
Reorganization Adjustments | |||
Reorganization Chapter11 [Line Items] | |||
Pre-tax gain on settlement of liabilities subject to compromise | $ 1,129,892 | ||
Reorganization Adjustments | Reorganization, Chapter 11, Predecessor, before Adjustment | |||
Reorganization Chapter11 [Line Items] | |||
Success fee recognized on the Effective Date | (17,120) | ||
Pre-tax gain on settlement of liabilities subject to compromise | 1,129,892 | ||
Backstop commitment expense to record difference between accrued termination fee and issuance of payment-in-kind Exit Notes upon emergence | (524) | ||
Write-off of Predecessor directors and officers tail insurance policy | (6,932) | ||
Other emergence effects | (137) | ||
Expense related to bonus accrual under BOP services agreement | (831) | ||
Cancellation of Predecessor common stock, additional paid-in capital and treasury stock | 1,825,268 | ||
Issuance of Emergence Warrants to Predecessor equity holders | (20,574) | ||
Change in deferred tax as a result of step plan adjustments | (3,869) | ||
Change in accumulated deficit | $ 2,905,173 |
Fresh Start Accounting - Fresh
Fresh Start Accounting - Fresh Start Adjustments (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Reorganization Chapter11 [Line Items] | |||
Fair value adjustment of rig spare parts and supplies | $ (7,200) | ||
Write-off of current deferred contract assets | (27,300) | ||
Fair value adjustment to drilling and other property and equipment net of accumulated depreciation | (2,712,100) | ||
Fair value adjustment of BOP finance lease assets | (8,400) | ||
Write-off of current deferred contract liabilities | (56,400) | ||
Fair value adjustment to current other lease liabilities | 400 | ||
Adjustment to deferred taxes | $ 2,433 | $ 28,338 | |
Write-off of non-current deferred contract liabilities | (11,100) | ||
Fair value adjustment of non-current other lease liabilities | 1,300 | ||
ASC 740 | Reorganization, Chapter 11, Fresh-Start Adjustment | |||
Reorganization Chapter11 [Line Items] | |||
Adjustment to deferred taxes | $ (34,400) |
Fresh Start Accounting - Sch_16
Fresh Start Accounting - Schedule of Fair Value Adjustments to Other assets (Detail) - Reorganization, Chapter 11, Fresh-Start Adjustment $ in Thousands | Apr. 23, 2021USD ($) |
Reorganization Chapter11 [Line Items] | |
Write-off of long-term contract assets | $ (10,029) |
Fair value adjustment to set asset equal to right-of-use liability for other operating leases | (1,998) |
Fair value adjustment to true-up other operating leases for change in incremental borrowing rate | 1,745 |
Change in other assets | $ (10,282) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Revenue From Contract With Customer [Abstract] | ||
Trade receivables | $ 157,292 | $ 115,732 |
Current contract assets | 1,392 | 2,870 |
Current contract liabilities (deferred revenue) | (38,564) | (51,763) |
Noncurrent contract liabilities (deferred revenue) | $ (12,711) | $ (5,164) |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Significant Changes in Contract Assets and Contract Liabilities Balances (Detail) - USD ($) $ in Thousands | 4 Months Ended | 5 Months Ended |
Apr. 23, 2021 | Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | ||
Contract assets at January 1, 2021 | $ 2,870 | |
Contract liabilities at January 1, 2021 | (56,927) | |
Net balance beginning | (54,057) | $ 418 |
Decrease due to amortization of revenue included in the beginning contract liability balance | 15,341 | |
Increase due to cash received, excluding amounts recognized as revenue during the period | (22,553) | (51,275) |
Increase due to revenue recognized during the period but contingent on future performance | 1,442 | 974 |
Decrease due to transfer to receivables during the period | (700) | |
Write-off of deferred revenue due to application of fresh start accounting | 60,945 | |
Net balance ending | $ 418 | (49,883) |
Contract assets at September 30, 2021 | 1,392 | |
Contract liabilities at September 30, 2021 | $ (51,275) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Summary of Specified Types of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 51,996 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue remaining performance obligation | $ 14,387 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
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 | $ 27,681 |
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 | $ 9,182 |
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 | $ 746 |
Mobilization and Contract Preparation Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 9,193 |
Mobilization and Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 1,008 |
Mobilization and Contract Preparation Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 3,941 |
Mobilization and Contract Preparation Revenue [Member] | 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 | 3,912 |
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 | 332 |
Capital Modification Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 36,711 |
Capital Modification Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 7,542 |
Capital Modification Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 23,485 |
Capital Modification Revenue [Member] | 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 | 5,270 |
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 | 414 |
Demobilization and Other Deferred Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 6,092 |
Demobilization and Other Deferred Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 5,837 |
Demobilization and Other Deferred Revenue [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 255 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Summary of Specified Types of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail 1) $ in Thousands | Sep. 30, 2021USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 51,996 |
Mobilization and Contract Preparation Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 9,193 |
Capital Modification Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | 36,711 |
Demobilization and Other Deferred Revenue [Member] | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue remaining performance obligation | $ 6,092 |
Revenue from Contracts with C_8
Revenue from Contracts with Customers - Summary of Specified Types of Revenue Expected to be Recognized in Future Related to Unsatisfied Performance Obligations (Detail) (Parenthetical) | Sep. 30, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
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: 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 |
Impairment of Assets - Addition
Impairment of Assets - Additional Information (Detail) $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021Rig | Mar. 31, 2020Rig | Apr. 23, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020Rig | |
Schedule Of Asset Impairment Charges [Line Items] | ||||||
Number of rigs impaired during period | 1 | 1 | ||||
Impairment of asset | $ | $ 197,027 | $ 774,028 | ||||
2021 Impaired Rigs [Member] | ||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||
Number of rigs evaluated for impairment | 3 | |||||
Number of rigs impaired during period | 1 | |||||
Impairment of asset | $ | $ 197,000 | |||||
2020 Impaired Rigs [Member] | ||||||
Schedule Of Asset Impairment Charges [Line Items] | ||||||
Number of rigs evaluated for impairment | 5 | |||||
Number of rigs impaired during period | 4 | |||||
Impairment of asset | $ | $ 774,000 |
Supplemental Financial Inform_3
Supplemental Financial Information - Accounts Receivable, Net of Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | |||
Trade receivables | $ 157,292 | $ 115,732 | |
Value added tax receivables | 9,667 | 10,781 | |
Federal income tax receivables | 8,420 | 8,420 | |
Related party receivables | 71 | 78 | |
Other | 183 | 1,211 | |
Receivables Gross Current, Total | 175,633 | $ 134,906 | 136,222 |
Allowance for credit losses | (5,614) | (5,555) | (5,562) |
Accounts receivable, net | $ 170,019 | $ 129,351 | $ 130,660 |
Supplemental Financial Inform_4
Supplemental Financial Information - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Collateral deposits | $ 18,570 | ||
Prepaid taxes | 17,440 | $ 16,112 | |
Deferred contract costs | 7,501 | 19,808 | |
Prepaid insurance | 4,292 | 2,446 | |
Prepaid rig costs | 3,575 | 2,317 | |
Rig spare parts and supplies | 3,251 | 12,606 | |
Current contract assets | 1,392 | 2,870 | |
Prepaid legal retainers | 432 | 2,408 | |
Other | 5,648 | 3,708 | |
Change in prepaid expenses and other current assets | $ 62,101 | $ 58,655 | $ 62,275 |
Supplemental Financial Inform_5
Supplemental Financial Information - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | |||
Deferred revenue | $ 38,564 | $ 51,763 | |
Payroll and benefits | 31,122 | 30,296 | |
Rig operating costs | 27,678 | 21,123 | |
Current operating lease liability | 16,354 | 5,072 | |
Personal injury and other claims | 5,710 | 6,495 | |
Shorebase and administrative costs | 5,536 | 17,275 | |
Interest payable | 5,254 | ||
Accrued capital project/upgrade costs | 3,096 | 7,075 | |
Other | 872 | 1,689 | |
Change in accrued liabilities | $ 134,186 | $ 123,055 | $ 140,788 |
Supplemental Financial Inform_6
Supplemental Financial Information - Noncash Operating, Investing and Financing Activities (Detail) - USD ($) $ in Thousands | 4 Months Ended | 5 Months Ended | 9 Months Ended |
Apr. 23, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Condensed Financial Statements, Captions [Line Items] | |||
Accrued but unpaid capital expenditures at period end | $ 18,617 | $ 3,096 | $ 5,242 |
Accrued but unpaid debt issuance costs and arrangement fees | 7,588 | ||
Common stock withheld for payroll tax obligations | 395 | ||
Cash interest payments | 37,593 | 5,431 | 19,843 |
Cash paid for reorganization items, net | 37,566 | 35,398 | 23,818 |
Foreign [Member] | |||
Cash income taxes paid, net of (refunds): | |||
Cash income taxes paid, net of refunds | 3,460 | 1,464 | 11,229 |
State [Member] | |||
Cash income taxes paid, net of (refunds): | |||
Cash income taxes paid, net of refunds | $ (34) | 36 | |
U.S. Federal [Member] | |||
Cash income taxes paid, net of (refunds): | |||
Cash income taxes paid, net of refunds | $ 468 | $ (42,462) |
Supplemental Financial Inform_7
Supplemental Financial Information - Noncash Operating, Investing and Financing Activities (Parenthetical) (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 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 | 131,698 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - 2021 Long-Term Stock Incentive Plan [Member] - USD ($) $ in Millions | Jul. 01, 2021 | Sep. 30, 2021 | Sep. 30, 2021 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares of common stock available for issuance | 11,111,111 | 11,111,111 | |
Maximum [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of potential cash-settled RSUs | 40.00% | ||
Time-vesting RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense recognized for awards under the equity incentive plan | $ 1.9 | ||
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 | 337,662 | ||
Time-vesting RSUs [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 | ||
Liability-classified Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
RSUs vest and non-forfeitable percentage | 40.00% | ||
Equity-classified Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
RSUs vest and non-forfeitable percentage | 60.00% | ||
Performance-Vesting RSUs [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 | ||
Time Vesting RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of equity instruments awarded in period | 1,831,353 | ||
Performance and Time-vesting RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Fair value of awards granted | $ 30 | ||
Forfeited in Period | 491,590 | ||
Performance Vesting RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of equity instruments awarded in period | 1,613,669 | ||
Short Term Cash Incentives [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Short-term cash incentive awards | $ 5 | ||
Compensation expense recognized for cash incentive awards | 1.2 | ||
RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense recognized for awards under the equity incentive plan | $ 3.9 | ||
First Anniversary of Grant Date [Member] | Time-vesting RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
RSUs vest and non-forfeitable percentage | 30.00% | ||
Second Anniversary of Grant Date [Member] | Time-vesting RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
RSUs vest and non-forfeitable percentage | 70.00% | ||
Immediately Vested on May 8, 2021 Grant Date [Member] | Time-vesting RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
RSUs vest and non-forfeitable percentage | 33.33% | ||
First and Second Anniversaries of Grant Date | Time-vesting RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
RSUs vest and non-forfeitable percentage | 66.67% |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Disclosures - Additional Information (Detail) - USD ($) $ in Thousands | 4 Months Ended | 9 Months Ended | 12 Months Ended | |
Apr. 23, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Letters of credit to guarantee | $ 4,600 | |||
Expired letter of credit | 2,300 | |||
Trade receivables past due | 7,300 | |||
Trade receivables reserved for previous years | 5,500 | |||
Trade receivables remaining past due | 1,800 | |||
Trade receivables, older than 90 Days past due | 300 | |||
Allowance for credit losses | $ 5,555 | $ 5,614 | $ 5,562 | |
Loss on impairment of assets | $ 197,027 | $ 774,028 | ||
Measurement period for determining fair value of debt instruments | 10 days | |||
Fair Value Recurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Loss on impairment of assets | $ 0 | 0 | ||
ASU 2016-13 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Estimate of credit losses | $ 100 | $ 100 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Disclosures - Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | 4 Months Ended | 9 Months Ended | 12 Months Ended |
Apr. 23, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impairment of assets | $ 197,027 | $ 774,028 | |
Nonrecurring Fair Value Measurements [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impairment of assets | $ 197,027 | $ 842,016 | |
Impaired assets | 1,000 | ||
Fair Value, Inputs, Level 3 | Nonrecurring Fair Value Measurements [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Impaired assets | $ 1,000 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Disclosures - Assets Measured at Fair Value on Nonrecurring Basis (Parenthetical) (Detail) $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021Rig | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Apr. 23, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020Rig | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Number of rigs impaired during period | Rig | 1 | 1 | ||||
Loss on impairment of assets | $ 197,027 | $ 774,028 | ||||
Four Semisubmersible Rigs [Member] | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Loss on impairment of assets | $ 68,000 | $ 774,000 |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Exit Term Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 100 | |
Carrying Value | 100 | |
Exit Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 86.2 | |
Carrying Value | $ 86.1 | |
3.45% Senior Notes due 2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 30.6 | |
Carrying Value | 250 | |
7.875% Senior Notes due 2025 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 61.3 | |
Carrying Value | 500 | |
5.70% Senior Notes due 2039 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 61.2 | |
Carrying Value | 500 | |
4.875% Senior Notes due 2043 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 91.9 | |
Carrying Value | $ 750 |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Disclosures - Fair Value and Related Carrying Values of Our Debt Instruments (Parenthetical) (Detail) | Jan. 22, 2021 | Dec. 31, 2020 |
3.45% Senior Notes due 2023 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate of senior notes | 3.45% | 3.45% |
7.875% Senior Notes due 2025 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate of senior notes | 7.875% | 7.875% |
5.70% Senior Notes due 2039 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate of senior notes | 5.70% | 5.70% |
4.875% Senior Notes due 2043 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate of senior notes | 4.875% | 4.875% |
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 | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 1,372,711 | $ 7,111,718 | |
Less: accumulated depreciation | (43,886) | (2,988,909) | |
Drilling and other property and equipment, net | 1,328,825 | $ 1,354,650 | 4,122,809 |
Drilling Rigs and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 1,186,100 | 6,987,630 | |
Land and Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 9,823 | 41,072 | |
Office Equipment and Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 2,217 | $ 83,016 | |
Finance Lease Right of Use Asset [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 174,571 |
Drilling and Other Property a_4
Drilling and Other Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Apr. 23, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | |||||
Impairment charge of assets | $ 197,027 | $ 774,028 | |||
Gain (loss) on disposition of assets | $ 767 | $ 479 | 5,486 | $ 943 | $ 4,132 |
Ocean Valor [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Net book value of assets | $ 1,000 | $ 1,000 | |||
Ocean America and Ocean Rover [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Gain (loss) on disposition of assets | $ 4,400 |
Prepetition Revolving Credit _3
Prepetition Revolving Credit Facility, Senior Notes and Exit Debt - Additional Information (Detail) - USD ($) | 4 Months Ended | |||||
Apr. 23, 2021 | Sep. 30, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Apr. 28, 2020 | Apr. 26, 2020 | |
Debt Instrument [Line Items] | ||||||
Borrowings outstanding | $ 436,000,000 | |||||
Accrued interest | $ 47,636,000 | |||||
Unamortized premium | $ 800,000 | |||||
Debt issuance costs | $ 3,500,000 | |||||
Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Accrued interest | $ 44,900,000 | |||||
Pre-tax gain on extinguishment of debt | 1,100,000,000 | |||||
Prepetition Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings outstanding | $ 442,000,000 | $ 436,000,000 | ||||
Amount available for general purposes | $ 442,000,000 | $ 950,000,000 | ||||
Claims settled in cash | 279,600,000 | |||||
Aggregate amount of rollover debt | $ 200,000,000 | |||||
Prepetition Revolving Credit Facility [Member] | Financial Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings outstanding | $ 6,000,000 |
Prepetition Revolving Credit _4
Prepetition Revolving Credit Facility, Senior Notes and Exit Debt - Summary of Senior Notes (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
Total Senior Notes, net | $ 2,000,000 |
3.45% Senior Notes due 2023 [Member] | |
Debt Instrument [Line Items] | |
Total Senior Notes, net | 250,000 |
7.875% Senior Notes due 2025 [Member] | |
Debt Instrument [Line Items] | |
Total Senior Notes, net | 500,000 |
5.70% Senior Notes due 2039 [Member] | |
Debt Instrument [Line Items] | |
Total Senior Notes, net | 500,000 |
4.875% Senior Notes due 2043 [Member] | |
Debt Instrument [Line Items] | |
Total Senior Notes, net | $ 750,000 |
Prepetition Revolving Credit _5
Prepetition Revolving Credit Facility, Senior Notes and Exit Debt - Summary of Senior Notes (Parenthetical) (Detail) | Jan. 22, 2021 | Dec. 31, 2020 |
3.45% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of senior notes | 3.45% | 3.45% |
7.875% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of senior notes | 7.875% | 7.875% |
5.70% Senior Notes due 2039 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of senior notes | 5.70% | 5.70% |
4.875% Senior Notes due 2043 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of senior notes | 4.875% | 4.875% |
Prepetition Revolving Credit _6
Prepetition Revolving Credit Facility, Senior Notes and Exit Debt - Summary of Carrying Value of Long-term Debt, Net of Unamortized Discount, Premium and Debt Issuance Costs (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 |
Debt Instrument [Line Items] | ||
Total Exit Debt, net | $ 306,145 | $ 285,982 |
Exit Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total Exit Debt, net | 123,478 | |
Exit Term Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total Exit Debt, net | 98,995 | |
Exit Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total Exit Debt, net | $ 83,672 |
Prepetition Revolving Credit _7
Prepetition Revolving Credit Facility, Senior Notes and Exit Debt - Summary of Aggregate Annual Maturity of Exit Debt (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
Thereafter | $ 308,799 |
Total maturities of long-term debt | $ 308,799 |
Prepetition Revolving Credit _8
Prepetition Revolving Credit Facility, Senior Notes and Exit Debt - Exit Revolving Credit Agreement - Additional Information (Detail) - USD ($) | Apr. 23, 2021 | Apr. 23, 2021 | Sep. 30, 2021 | Nov. 01, 2021 | Jul. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||||
Line of credit | $ 436,000,000 | |||||
Debt issuance costs | $ 6,218,000 | |||||
Senior Secured Revolving Credit Facility [Member] | ||||||
Debt Instrument [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 | ||||
Credit facility, scheduled maturity date | Apr. 22, 2026 | |||||
Exit Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit | $ 103,500,000 | 103,500,000 | $ 123,500,000 | |||
Incurred in exchange for certain obligations | 100,000,000 | |||||
Upfront fees incurred | 3,500,000 | |||||
Aggregate amount of available cash triggering repayment of debt | $ 125,000,000 | $ 125,000,000 | ||||
Debt instrument, interest rate term description | Loans outstanding under the Exit RCF bear interest at a rate per annum equal to the applicable margin plus, at the Borrower’s option, either: (i) the reserve-adjusted London Inter-bank Offered Rate (or LIBOR Rate), subject to a floor of 1.00%, or (ii) a base rate, subject to a floor of 2.00%, determined as the greatest of (x) the rate per annum publicly announced from time to time by Wells Fargo Bank, National Association, as its prime rate (or the Wells Fargo Prime Rate), (y) the federal funds effective rate plus ½ of 1.00%, and (z) the reserve-adjusted one-month LIBOR Rate plus 1.00%. The applicable margin is initially 4.25% per annum for LIBOR Rate loans and 3.25% per annum for base rate loans. Mandatory prepayments and, under certain circumstances, commitment reductions are required under the Exit RCF in connection with certain specified asset dispositions (subject to reinvestment rights if no event of default exists). Available Cash (as defined in the Exit Revolving Credit Agreement) in excess of $125 million is also required to be applied periodically to prepay loans (without a commitment reduction). The loans under the Exit RCF may be voluntarily prepaid and the commitments thereunder voluntarily terminated or reduced by the Borrower at any time without premium or penalty, other than customary breakage costs. | |||||
Line of credit facility commitment fee percentage | 0.50% | |||||
Minimum line of credit collateral coverage ratio | 2.00% | |||||
Minimum line of credit total collateral coverage ratio | 1.30% | |||||
Debt issuance costs | $ 6,600,000 | |||||
Upfront fees | $ 3,500,000 | |||||
Borrowing accrue interest | 5.35% | 5.35% | ||||
Exit Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit | $ 113,500,000 | |||||
Amount available for issuance of letter of credit under credit facility | 283,900,000 | |||||
Exit Revolving Credit Facility [Member] | Financial Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit | $ 6,100,000 | |||||
Exit Revolving Credit Facility [Member] | Financial Letter of Credit [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit | $ 6,100,000 | |||||
Exit Revolving Credit Facility [Member] | PIK Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit | $ 3,500,000 | $ 3,500,000 | ||||
Exit Revolving Credit Facility [Member] | Reserve-Adjusted LIBOR Rate Subject To Floor [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Exit Revolving Credit Facility [Member] | Base Rate Subject to Floor [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
Exit Revolving Credit Facility [Member] | Federal Funds Effective Rate Plus [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Exit Revolving Credit Facility [Member] | Reserve-Adjusted One Month LIBOR Rate Plus [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Exit Revolving Credit Facility [Member] | Libor Rate Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate of senior notes | 4.25% | 4.25% | ||||
Exit Revolving Credit Facility [Member] | Base Rate Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate of senior notes | 3.25% | 3.25% | ||||
Exit Revolving Credit Facility [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amount available for general purposes | $ 400,000,000 | $ 400,000,000 | ||||
Aggregate amount of available cash | $ 125,000,000 | $ 125,000,000 | ||||
Exit Revolving Credit Facility [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Collateral coverage ratio | 2.00% | |||||
Total collateral coverage ratio | 1.30% |
Prepetition Revolving Credit _9
Prepetition Revolving Credit Facility, Senior Notes and Exit Debt - Exit Term Loan Credit Agreement - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 23, 2021 | Apr. 23, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 2,000,000 | |||
Debt issuance costs | $ 6,218 | |||
Line of credit | $ 436,000 | |||
Senior Secured Term Loan Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 100,000 | 100,000 | ||
Debt instrument maturity date | Apr. 22, 2027 | |||
Exit Term Loan Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 100,000 | $ 100,000 | ||
Debt instrument, interest rate term description | The Exit Term Loan Credit Agreement provides for a $100.0 million senior secured term loan credit facility, scheduled to mature on April 22, 2027. On the Effective Date, the Borrower utilized the entire $100.0 million under the Exit Term Loan Credit Facility to refinance a portion of the Predecessor obligations under the prepetition RCF. The Exit Term Loans outstanding under the Exit Term Loan Credit Facility bear interest at a rate per annum equal to the applicable margin plus, at the Borrower’s option, either: (i) the reserve-adjusted or LIBOR Rate, subject to a floor of 1.00% (or LIBOR Rate Term Loans), or (ii) a base rate (or Base Rate Term Loans), subject to a floor of 2.00%, determined as the greatest of (x) the Wells Fargo Prime Rate, (y) the federal funds effective rate plus ½ of 1.00%, and (z) the reserve-adjusted one-month LIBOR Rate plus 1.00%. The margin applicable to LIBOR Rate Term Loans is, at the Borrower’s option: (i) 6.00%, paid in cash; (ii) 4.00% paid in cash plus an additional 4.00% paid in kind; or (iii) 10.00% paid in kind. The margin applicable to Base Rate Term Loans is, at the Borrower’s option: (i) 5.00%, paid in cash; (ii) 3.50% paid in cash plus an additional 3.50% paid in kind; or (iii) 9.00% paid in kind. The Exit Term Loans may be voluntarily prepaid, and the commitments thereunder voluntarily terminated or reduced, by the Borrower at any time without premium or penalty, other than customary breakage costs. Interest on LIBOR Rate Term Loans is payable one, two, three, six, or, if agreed by all lenders, twelve months after such LIBOR Rate Term Loan is disbursed as, converted to or continued as a LIBOR Rate Term Loan, as selected by the Borrower. Interest on Base Rate Term Loans is payable quarterly. | |||
Debt Instrument covenant description | The Exit Term Loan Credit Agreement contains negative covenants that limit, among other things, the Borrower’s ability and the ability of its restricted subsidiaries to: (i) incur, assume or guarantee additional indebtedness; (ii) create, incur or assume liens; (iii) make investments; (iv) merge or consolidate with or into any other person or undergo certain other fundamental changes; (v) transfer or sell assets; (vi) pay dividends or distributions on capital stock or redeem or repurchase capital stock; (vii) enter into transactions with certain affiliates; (viii) repay, redeem or amend certain indebtedness; (ix) sell stock of its subsidiaries; or (x) enter into certain burdensome agreements. These negative covenants are subject to a number of important limitations and exceptions. | |||
Debt issuance costs | $ 1,000 | |||
Line of credit | $ 100,000 | |||
Borrowing accrue interest | 7.00% | |||
Exit Term Loan Credit Facility [Member] | LIBOR Rate Subject to Floor [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Exit Term Loan Credit Facility [Member] | Base Rate Subject to Floor [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Exit Term Loan Credit Facility [Member] | Federal Funds Effective Rate Plus [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Exit Term Loan Credit Facility [Member] | Reserve-Adjusted One Month LIBOR Rate Plus [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Exit Term Loan Credit Facility [Member] | Libor Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate term description | Interest on LIBOR Rate Term Loans is payable one, two, three, six, or, if agreed by all lenders, twelve months after such LIBOR Rate Term Loan is disbursed as, converted to or continued as a LIBOR Rate Term Loan, as selected by the Borrower. | |||
Borrowings effective interest rate | 7.20% | |||
Exit Term Loan Credit Facility [Member] | Base Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate term description | Interest on Base Rate Term Loans is payable quarterly. | |||
Debt instrument frequency of periodic payment | quarterly | |||
Exit Term Loan Credit Facility [Member] | Paid in Cash [Member] | Libor Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 6.00% | |||
Exit Term Loan Credit Facility [Member] | Paid in Cash [Member] | Base Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 5.00% | |||
Exit Term Loan Credit Facility [Member] | Combined Cash and PIK Note Paid in Cash [Member] | Libor Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 4.00% | |||
Exit Term Loan Credit Facility [Member] | Combined Cash and PIK Note Paid in Cash [Member] | Base Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.50% | |||
Exit Term Loan Credit Facility [Member] | Combined Cash and PIK Note Paid in Kind [Member] | Libor Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 4.00% | |||
Exit Term Loan Credit Facility [Member] | Combined Cash and PIK Note Paid in Kind [Member] | Base Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.50% | |||
Exit Term Loan Credit Facility [Member] | Payment in Kind Rate [Member] | Libor Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 10.00% | |||
Exit Term Loan Credit Facility [Member] | Payment in Kind Rate [Member] | Base Rate Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 9.00% |
Prepetition Revolving Credit_10
Prepetition Revolving Credit Facility, Senior Notes and Exit Debt - First Lien Notes Indenture - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 23, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 2,000,000 | ||
First Lien Notes [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 85,300 | ||
Commitment premium percentage | 9.00% | ||
Exit notes maturity date | Apr. 22, 2027 | ||
Debt instrument frequency of periodic payment | semi-annually | ||
Debt instrument, date of first required payment | Oct. 31, 2021 | ||
Debt instrument, commitment fee on undrawn principal amount | 3.00% | ||
Debt instrument, interest rate term description | Interest on the First Lien Notes accrues, at the Issuers’ option, at a rate of: (i) 9.00% per annum, payable in cash; (ii) 11.00% per annum, with 50% of such interest to be payable in cash and 50% of such interest to be payable by issuing additional First Lien Notes (or PIK Notes); or (iii) 13.00% per annum, with the entirety of such interest to be payable by issuing PIK Notes. The Issuers shall pay interest semi-annually in arrears on April 30 and October 31 of each year, commencing October 31, 2021. In addition, the Issuers shall pay 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. | ||
Debt instrument, redemption price, percentage | 101.00% | ||
Debt instrument, redemption, description | upon a Change of Control (as defined in the First Lien Notes Indenture), the Issuers must offer to purchase all remaining outstanding First Lien Notes at a redemption price equal to 101% of the principal amount, | ||
Period for debt redemption on change of control | 30 days | ||
Debt instrument par value percentage | 101.00% | ||
Debt issuance costs net | $ 2,500 | ||
Debt instruments outstanding aggregate amount | $ 85,300 | ||
Borrowing accrue interest | 9.00% | ||
Debt instrument effective interest rate | 9.70% | ||
First Lien Notes [Member] | Redemption of Notes before October 23, 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 101.00% | ||
Debt instrument, redemption period, end date | Oct. 23, 2021 | ||
Debt instrument, redemption, description | before October 23, 2021, all of the First Lien Notes may be redeemed at 101% of the principal amount, | ||
First Lien Notes [Member] | Redemption of Notes on or after October 23, 2021 and prior to April 22, 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption price, percentage | 100.00% | ||
Debt instrument, redemption period, end date | Apr. 22, 2023 | ||
Debt instrument, redemption, description | on or after October 23, 2021 and prior to April 22, 2023, the First Lien Notes may be redeemed, in whole or in part, at any time and from time to time at a redemption price equal to 100% of the principal amount | ||
Debt instrument, redemption period, start date | Oct. 23, 2021 | ||
First Lien Notes [Member] | Redemption of Notes on or after April 22, 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, redemption, description | on or after April 22, 2023, the First Lien Notes may be redeemed, in whole or in part, at any time and from time to time at fixed redemption prices (expressed as percentages of the principal amount) | ||
Debt instrument, redemption period, start date | Apr. 22, 2023 | ||
First Lien Notes [Member] | Cash Pay Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of senior notes | 9.00% | ||
First Lien Notes [Member] | Cash Pay Rate and Payment in Kind Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of senior notes | 11.00% | ||
Percentage of interest payable in cash | 50.00% | ||
Percentage of interest payable in kind | 50.00% | ||
First Lien Notes [Member] | Payment in Kind Rate [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate of senior notes | 13.00% | ||
First Lien Notes [Member] | Commitment Premium [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 10,300 | ||
First Lien Notes [Member] | Private Placement [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 28,100 | ||
First Lien Notes [Member] | Private Placement [Member] | Unfunded Loan Commitment [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 17,800 | ||
First Lien Notes [Member] | Rights Offerings [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 46,900 | ||
First Lien Notes [Member] | Rights Offerings [Member] | Unfunded Loan Commitment [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 21,900 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Contingencies And Commitments [Line Items] | ||
Estimated sales tax and related penalties and interest | $ 14.2 | $ 13.5 |
Deductible for marine liability coverage including personal injury claims, per first occurrence | 5 | |
Range of deductible for liability coverage for personal injury claims, lower limit | 5 | |
Range of deductible for liability coverage for personal injury claims, upper limit | 100 | |
Total Contingent Liabilities Under Letters of Credit and Bonds [Member] | ||
Contingencies And Commitments [Line Items] | ||
Contingent liability under letters of credit and other bonds | 24.5 | |
Potentially Collateralized Contingent Liability Under Letters Of Credit and Bonds [Member] | ||
Contingencies And Commitments [Line Items] | ||
Contingent liability under letters of credit and other bonds | 18.4 | |
Uncollateralized Contingent Liability Under Letters of Credit and Bonds [Member] | ||
Contingencies And Commitments [Line Items] | ||
Contingent liability under letters of credit and other bonds | 6.1 | |
Collateralized Contingent Liability Under Financial Letters of Credit and Surety Bond [Member] | ||
Contingencies And Commitments [Line Items] | ||
Contingent liability under letters of credit and other bonds | 6 | |
Cash Collateralized Contingent Liability Under Letters of Credit and Bonds [Member] | ||
Contingencies And Commitments [Line Items] | ||
Contingent liability under letters of credit and other bonds | 18.6 | |
Personal Injury Claims [Member] | ||
Contingencies And Commitments [Line Items] | ||
Personal injury claims recorded | 13 | 14.7 |
Personal Injury Claims [Member] | Accrued Liabilities [Member] | ||
Contingencies And Commitments [Line Items] | ||
Personal injury claims recorded | 5.5 | 5.9 |
Personal Injury Claims [Member] | Other Liabilities [Member] | ||
Contingencies And Commitments [Line Items] | ||
Personal injury claims recorded | $ 7.5 | $ 8.8 |
Leases and Lease Commitments -
Leases and Lease Commitments - Additional Information (Details) $ in Thousands | Mar. 31, 2021Rig | Sep. 30, 2021USD ($) | Apr. 23, 2021USD ($) | Dec. 31, 2020USD ($) |
Lessee Lease Description [Line Items] | ||||
Number of offshore rigs subject to well control equipment agreements | Rig | 4 | |||
Operating leases, ROU | $ 41,812 | $ 154,796 | ||
Equipment [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating leases, ROU | $ 13,000 | |||
Operating lease, weighted average remaining lease term | 14 months | |||
Sale and Lease-back Equipment [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease term | 10 years | |||
Prepaid rent | $ 8,400 |
Leases and Lease Commitments _2
Leases and Lease Commitments - Components of Expense Attributable to Finance Leases (Details) $ in Thousands | 5 Months Ended |
Sep. 30, 2021USD ($) | |
Finance lease cost: | |
Amortization of ROU assets | $ 7,552 |
Interest on lease liabilities | 5,006 |
Total | $ 12,558 |
Leases and Lease Commitments _3
Leases and Lease Commitments - Supplemental Information Related to Finance Leases (Details) $ in Thousands | 5 Months Ended |
Sep. 30, 2021USD ($) | |
Finance Leases: | |
Operating cash flows used | $ 5,006 |
Financing cash flows used | 6,011 |
ROU assets obtained in exchange for lease liabilities | $ 174,571 |
Weighted-average remaining lease term | 4 years 8 months 8 days |
Weighted-average discount rate | 6.72% |
Leases and Lease Commitments _4
Leases and Lease Commitments - Schedule of Maturities of Finance Lease Liabilities (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
2021 (excluding nine months ended September 30, 2021) | $ 6,624 |
2022 | 26,280 |
2023 | 26,280 |
2024 | 26,352 |
2025 | 26,280 |
2026 | 96,430 |
Total lease payments | 208,246 |
Less: interest | (40,190) |
Total lease liability | $ 168,056 |
Leases and Lease Commitments _5
Leases and Lease Commitments - Schedule of Amounts Recognized in Unaudited Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 23, 2021 | Dec. 31, 2020 |
Leases [Abstract] | |||
Operating leases, right of use asset | $ 41,812 | $ 154,796 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets | |
Operating leases, lease liabilities current | $ (16,354) | $ (5,072) | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | |
Operating leases, lease liabilities noncurrent | $ (25,373) | $ (23,476) | |
Operating Lease Liability Noncurrent Statement Of Financial Position Extensible List | Other liabilities | Other liabilities | |
Operating leases, lease liabilities subject to compromise | $ (112,646) | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | |
Finance leases, right-of-use-asset | $ 167,019 | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets | |
Current finance lease liabilities | $ (15,599) | $ (15,148) | |
Noncurrent finance lease liabilities | $ (152,457) | $ (158,919) |
Leases and Lease Commitments _6
Leases and Lease Commitments - Schedule of Amounts Recognized in Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Lessee Lease Description [Line Items] | ||
Operating leases, lease liabilities current | $ 16,354 | $ 5,072 |
Operating leases, lease liabilities noncurrent | $ 25,373 | 23,476 |
Operating Lease Liabilities Subject To Compromise | ||
Lessee Lease Description [Line Items] | ||
Operating leases, lease liabilities current | 16,700 | |
Operating leases, lease liabilities noncurrent | $ 95,900 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Apr. 23, 2021 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Estimated amount of cancellation of debt income | $ 1,266 | |
Reversal of uncertain tax position reserve and offsetting valuation allowance for swiss tax reform | $ 187 |
Segments and Geographic Area _3
Segments and Geographic Area Analysis - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021SegmentCountry | |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 1 |
Number of countries with rigs | Country | 5 |
Segments and Geographic Area _4
Segments and Geographic Area Analysis - Summary of Information about Disaggregated Revenue by Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Apr. 23, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 213,877 | $ 138,257 | $ 169,379 | $ 328,788 | $ 565,630 |
Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 183,156 | 129,345 | 153,364 | 281,189 | 535,848 |
Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 30,721 | 8,912 | 16,015 | 47,599 | 29,782 |
United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 89,029 | 60,092 | 100,263 | 148,538 | 253,576 |
United States [Member] | Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 71,954 | 57,523 | 93,215 | 122,732 | 244,578 |
United States [Member] | Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 17,075 | 2,569 | 7,048 | 25,806 | 8,998 |
United Kingdom [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 23,847 | 27,376 | 30,267 | 37,715 | 94,024 |
United Kingdom [Member] | Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 22,271 | 25,178 | 27,967 | 35,186 | 86,949 |
United Kingdom [Member] | Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 1,576 | 2,198 | 2,300 | 2,529 | 7,075 |
Australia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 38,201 | 18,849 | 21,728 | 67,430 | 60,345 |
Australia [Member] | Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 34,671 | 16,279 | 17,031 | 58,620 | 49,663 |
Australia [Member] | Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 3,530 | 2,570 | 4,697 | 8,810 | 10,682 |
Senegal [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 29,902 | 29,894 | |||
Senegal [Member] | Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 23,223 | 23,223 | |||
Senegal [Member] | Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 6,679 | 6,671 | |||
Brazil [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 20,511 | 25,790 | 3,421 | 23,735 | 145,897 |
Brazil [Member] | Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 20,511 | 25,774 | 3,421 | 23,735 | 145,921 |
Brazil [Member] | Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 16 | (24) | |||
Myanmar [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 12,387 | 13,700 | 21,476 | ||
Myanmar [Member] | Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 10,526 | 11,730 | 17,693 | ||
Myanmar [Member] | Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 1,861 | $ 1,970 | $ 3,783 | ||
Malaysia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 6,150 | 11,788 | |||
Malaysia [Member] | Contract Drilling [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 4,591 | 8,737 | |||
Malaysia [Member] | Reimbursable Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 1,559 | $ 3,051 |