RIG - Earnings call transcript Q4 2024

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Operator

Good day, everyone, and welcome to today's Q4 2024 Transocean Earnings Call. [Operator Instructions] Please note today's conference is being recorded. I will be standing by if you should need any assistance.

It is now my pleasure to turn the conference over to Alison Johnson, Director of Investor Relations. ahead. go Please

Alison Johnson

schedules, Good at XXXX Margo. press welcome Transocean's posted statements to covering non-GAAP disclosures Thank measures financial Conference morning, Call. Quarter are and supporting with Earnings results, our our reconciliations A Fourth and financial regarding website you, on along and including deepwater.com. copy release of

President Officer; Operating Thigpen, Keelan Adamson, Officer; Roddie me this Officer; Vayda, Vice Chief Joining Thad Executive President on Financial morning's Commercial Chief call and Executive Executive Mackenzie, Officer. Vice and and are Chief Chief Jeremy and President

management materially. During matters impact make to are subject or the certain course and more historical and to actual of company this risks could that revise our certain differ based certain to SEC cause to duty statements forward-looking regarding please call, Also, forward-looking company various undertakes statements information Please could and uncertainties. Transocean upon forward-looking no for regarding update Such and for are that Many to expectations factors not note filings our results. refer the may facts. assumptions, future uncertainties statements therefore, business our and that and certain related are statements. results our risks current

Thad's and session with will prepared our Keelan Jeremy, conduct Following team. we comments, a question-and-answer

initial to more one follow-up. time, and question speak, much. to participants give yourself one this you please During an opportunity limit to Thank very

to over call the Jeremy. turn now I'll

Jeremy Thigpen

welcome call. and employees, Alison, analysts today's you, Thank on investors to our customers, and participating

adjusted margin XX%. revenues, in disclosed Transocean million $XXX fourth on reported drilling quarter, yesterday's adjusted resulting for of of release, EBITDA million of the adjusted As EBITDA $XXX an approximately in earnings contract

$X.X . XX%. preference for billion adjusted delivered of was and $X.XX strong services. billion high-specification drilling approximately a Transocean's resulting of that adjusted EBITDA our year adjusted XXXX, revenues demonstrated XXXX customers we again the industry-leading on For an fleet the in of year once full margin contract EBITDA approximately have

that trust been our in in the believe the decade better Transocean there's not that customers past the a as as moment our in previous I do and illustrated has place leadership year. single industry clearly

the even emerging we call, year, rates capacity in quarter third was as market-leading Transocean detail As our the excess to continued great competitors' fleets. book obviously outlined throughout among on earnings

While plus of observed of creates our our our extremely customers they of demonstrating assets assets, and are approaching exceeding with Gen upcoming $XXX,XXX awarded astute per their than [ delivery availability several who clearly us high assets, X and recognition hook and X $XX,XXX day for day load still and for the wells. their Transocean that more value $XXX,XXX ] per Gen the contracts

of addition rate the grabbing fleet, of per we a exercised our KGX a announced X-well in headline the Reliance India in elsewhere at many announcements, that Industries to for December, in option day. In $XXX,XXX

Transocean Endurance is now value rate January, remain customer. $XXX,XXX will The flow India of on expected cash by good end both our rig on very was firm throughout an XXXX at the and and customer exercised in generate Australia option period, representing its to that and X-day a the in per program us in for day. its through strong of

late that mid-XXXX, focused commence Given through primarily on fleet utilization XXXX. is opportunities mid- are full active we in our that to near

opportunities pleased XXXX. of on number are I'm in on rigs with we customers And report a availability to discussions direct with in that our term multiyear

technology milestones I past view I over our it specific opportunities key year. cover hand deployment Keelan to operational region, market and review and of the over those by Before to the will

Keelan Adamson

the rate for the standards process Transocean personnel customer. the best we of aboard We safety is significant lost In or earlier a rate progress time we in everywhere. incident on maintaining to serious occupational of Jeremy, our incident-free all priority, milestones with take all ahead value great importantly, for creating year its total and schedule, highest time in commitment The continuously ever we program operations more planned recently delivered enabled Australia. the higher good than early the its to April, to our pride the expected. workplace our of of cases several our highest Thanks, ending completion rigs day, we has recordable operational and commenced injury and Equinox striving The And completed rig We The everyone. significant program performance, an a rig with XXXX. day number our months achieved contract safety X.XX. and in follow-on injuries.

the Offshore the operations the we is process year, drilling Atlas oil completions during the that ] currently installed until drillships, achieving We Beacon history acquired work. June, the our Deepwater this Chevron expertise of offshore the our Aquila industry the and X in reservoirs, to generation after are first just These commenced are their proud Petrobras drillship and with from to and the for In fleet important and contract months perspective, customers exceptionally developments. The high-temperature sincere these we ton most short to to joint first our contribute we significant Perhaps the we latest for with each on notably interest ,X on milestones Aquila in a rig. on Titan. trust of that X Deepwater venture execute mid-XXXX. the express X, in our added [ of high-pressure, Subsea outstanding X,XXX our technology in XXK the completions the to landmark Deepwater gratitude

is simultaneously Transocean in and the an in casing fleet, achieving fully Intelli new technologies we automated safety, X automation operations. use drilling reliability XXXX, differentiate deploy the expanded on the We further improving continue rigs, of by and to efficiency well running offline the we our stambuilding and performance the fleet installed operational first industry our which Norge. conducted automation platform, of In enhance operations. our Using to

in lastly, the we initial its multitool no on tacks And This floor. zone. manual rotary the enabler. the eliminate tripped of million Transocean other codeveloped On these deployment X.X feet rigs, we to on is pipe on drill red now over drill the with personnel

surge are robotics industrial our riser hazardous the the X on connection and we automates ported offshore. riser The one robotic most We joint system taxing perform bolting of removes from activities during and of The using process, ultra-deep zone routes. date, red personnel we've system efficiency safety actively the riser operations. experiencing joints over for of across enhancing To a [indiscernible] globe. interest the handling using system, additional and X,XXX customer-driven greatly the deployments are significant handled

equipment that in XXXX. systems, a to deployed sharing The like the preventers to robotic would safety-enhancing blowout technology a stopper highlight blowout even when Kinetic for addition in to monitoring offshore to technology and teams. personnel. resulting greater HaloGuard, close In I is drill technologies our floor stop is system rigs, tubular and retrofitable The to control X operational that on other we now protection our traveling latter existing in moving proximity X designed of

in with X battle robotic our Brazil. We the are these recently of in of riser Significantly, a HaloGuard to nearing discussions on installations of and installation we a with an products. for deep agreement more on in currently completion and contract of signed customer-funded are of other customers X Petrobras agreement rigs number our implement for an

again team our in I'm development. innovation demonstrating their our operational innovation to and results Transocean's and world, our customers. the and and for XXXX, XX leadership were of patent each technological the And delivery excellence industry every finally, drives applications commitment granted we does work in proud of around once day outstanding the success

Jeremy. to back call the hand now I'll

Jeremy Thigpen

Keelan. Thanks,

various the Starting at U.S. regions. Looking Gulf. in the

commencing work that mobilized analysis at likely unless contracts Our the been elsewhere. XXXX rigs they're of already this that most suggests market for awarded. in work year the will least of have concluding available until XXXX, major remain And

are we in dynamic by and insulated market future somewhat term at present Fortunately, the short outlook. the remain this encouraged from

customer conversations spectrum the that be and XX,XXX high engaged our in high-specification programs hook require completions Including require continue that drillships. for eighth XXXX multiple work specifically ] We capability drills. XXXX scopes in specification [ starting of to high the generation our load across

approximately to U.S. remain Ceron, for that a relatively forecast tendered that years. Gulf at will high another In issue total In working for for requiring least to we the In contracted will future. our on late until As XXXX. such, is Latin Petrobras of demand in believe recently count beginning X commencement X for rigs in and Brazil, Guyana, number America, expect program expect demand with XXXX contract the window we foreseeable. the XXXX X a commencing suggests rig remain to remain that currently maintain assets rigs In active in in tender we foreseeable late the stable. drillship multi-rig the

to provide Petrobra's We interest our this update provide on believe host towards assets with activity to scheduled are incremental the contractors programs. meeting its drilling company's later will keen week future company we anticipate The scenario positioned this With our technology, plans. future is well the outlook. on that meeting clarity in a an

in next make within commencing for Most to its the decision their is its development month do several operators multiyear years. Shell a Gato other to during in XXXX investment beginning Brazil rig Importantly, commencing investigate for program availability programs are the project. planning for notably, Mato final next

driven there the campaign expected and have in as balance move In a contract last much change rigs ahead not off is with short-term Africa, XXXX. BP to seen be late will programs months we before supply over exploration demand commence. Additionally, expect short a in roll in new X

XXXX. various work XXXX may lines some to and tender process for Equinor tender discussions which out operators of While around multiple African have are between end of programs beginning and/or West start of Coast, the will date this we is the direct and In commencement. in XXXX rig to commencement and much in for of in several XXXX believe a late with Norway, XXXX,

rigs with XXXX. return work the up awarded require Norway operators We other demand to will expect second outside This, the to in from country X combined this be from to quarter. in in

Shelf Additionally, Norwegian to from of East, AP more Norwegian XXXX to This XXXX. Farther license. XX in materialize XXXX the the up offer Petroleum the on is Energy late are Continental in and in beginning licenses round. the Australia XXXX Ministry plans programs blocks for XX and

from fulfill program, ONGC the tender rigs for X These program. to and X-year outside requirements To region. is submersible year. would this India, include a In and expected later drillship X-year require X-year program a these a

particularly retender dayrates of supply in in temporary of Malaysia, tighter its our anticipated throughout far, an start with and XXX% context have driver. of and date rig a Thus given XXXX, resilient fairly beyond. market near mid-XXXX. been utilization our program a for position XXXX outlook remains Overall, upbeat will the for PTTEP in positive revised Finally,

We are healthy these our industry indications view, both announcements made In also encouraged competitors. of by rationalization strong by recent dynamics. of fleet are

on year focused communicated estimates. production the remaining our [indiscernible] a and our XX increasingly sustained during From revenue operational other ] . up conversations while doubling that are to [ view was perspective, expect have traditional a XXXX These macro on our from month and this of cash. earlier between contracted net XX% a Equinor This when maximize our our our the customers consistent backlog projections largely to reinforced that XXXX previous with more than we gross concurrently cycle. and by revenue technology With we Deepwater fleet XXXX in reducing the billion, low-carbon $X months, billion main XXXX, is CapEx that in XXXX over are investment to Energy, target in $X.X same the to customers by half execution focus projected next active renewables and continue Rystad its for to period. for XXXX the and is According with rebound conversion sanctioning to be into in

our discuss results. financial now will Thad that Thad? With

R. Vayda

good Jeremy, day and to you, Thank everyone.

for the During an and call, briefly XXXX year. will update fourth guidance results quarter the of recap provide conclude our our expectations of first for quarter today's I full to with

our in a is The the our by refer share we to impact of caused our instruments in of income fourth release net please the $X XX per changes for in share. exchangeable interest certain income. per controlling forthcoming million net information press reported instruments effects to on attributable net quarter, loss loss a disclosed As additional $X.XX net Note diluted or regarding financial annual our debt report for to value the related of convertible bonds, of

cash flow of of million unlevered and cash from free During generated of million cash $XX operating reflects expenditures. EBITDA flow, adjusted operations capital of $XXX the million the of million. flow $XXX quarter, we Positive net approximately of $XXX $XXX million

quarter and million the for $XXX,XXX. was our contract During noncritical resolution in-service $XXX the the Operating we average contract drilling and due activities preparation below the our quarter, maintenance range of fleet of of approximately of the fourth at fell of guidance delivered Barents primarily daily delay costs revenues slightly revenue maintenance lower for within contingencies. old in $XXX end million. expense fourth an our forecast active range, favorable delayed to a Transocean This

debt the in quarter of update of $XXX of on fourth total fourth reserved majority for facility. of billion. liquidity was equivalents the ranges million service the and $XX I'll unrestricted million restricted includes guidance with This from our cash expense $XXX which quarter of is XXXX now and the capacity million. undrawn first cash, G&A provide $XXX We million approximately expectations. our an and ended credit cash for about $X.X quarter of

an between upon $XXX which, and upgrades. average upon the vary revenue know, and and uptime can first always, expect our guidance factors. working efficiency drilling million be XX.X% revenues of contract fleet-wide $XXX we based weather quarter, speculative As based to on million performance, you rigs, as excludes In other our reactivations

between quarter-over-quarter contract estimate decrease and contract of in by million margins. generally activity low is within customer the revenues active million This and reimbursables mobilization drilling to always The periods. additional single-digit activities fleet carry services lower these expenses. includes out-of-service caused recall primarily preparation and and additional services that due $XX Please $XX reimbursable

range first $XXX within of be quarter a expense $XXX to to expect million million. We O&M approximately

periods, This and and Spitsbergen, contract quarter-over-quarter the due increase those is to Equinox out-of-service on primarily preparation Endurance. Invictus, including

within first approximately million quarter We fall a G&A $XX million. expense expect for $XX of to range the to

forecasted primarily interest $XXX is be comprising expense expected fees XXXX expenditures and million, to Capital million quarter [indiscernible] expect is legal the for not are for $X approximately $XX forecasted to about be And of we to repeat. about between first taxes first in higher of and due paid quarter Noninterest decrease incurred do to the fourth quarter-over-quarter the be expense million, interest $XXX million between to million. This $XX to respectively. and that be cash income $XX are and quarter

forecast drilling revenue potential For range of the contract currently [indiscernible] limited reflects be The revenues . variances our the full year to in we XXXX, fleet. efficiency availability billion $X.XX and between primarily

between to unfavorable Skyros and earnings our in changing the includes from due million Our in we million $XXX local customer the services vary activity $XXX in These for of result quarter and XXXX guidance to transactions call, expenses. in Brazil. and somewhat movement Mainly contracts currencies. third exchange additional impacting its reimbursable This of preliminary settled are the guidance the well expectations largely due shorter-than-expected provided of remeasurement Deepwater currency schedule foreign is offset local cost our that O&M the

$XXX cost expense our and full between previous billion, our $XXX billion and be expect guidance, to be $X.X year still with $X.X between We O&M in anticipate G&A line million we million. and to

million $XXX and $XXX between million $XX $XX $XX and we're year, of be expense for and million For $XX expense income respectively. and Cash forecasted to interest taxes and the the between about are full anticipating net million comprising million. year $XXX million between interest interest million,

approximately capital required debt at and projected to approximately our reserved and XXXX reflecting to year-end XXXX million capital million [indiscernible] investment. be approximately $XXX undrawn cash is This and $XX restricted ] liquidity $XX spares of includes credit CapEx cost for our capital expectations of sustaining facility upgrades revenue of forecasted customer currently Our guidance approximately which is of revolving projects and [ upcoming service. including million which related forecast liquidity of is for and

from of terms $XXX As declined capacity of facility million June credit the effective XXXX. agreement, million $XXX a late to in our reminder, but the

our to and efficiently revenue to converting revenue cash. mentioned, backlog to we Jeremy are that committed As fully

intense addition most to superior which of provide reliable we we exploring for which to areas creates evaluation possible our outset line in to and the results to cost Once first accelerate our improve leveraging provide execution evaluation So providing operations materially complete, safe, structure. our to XXXX on value our for customers, this our the our ability operational focus this compromising the and an in enterprise-wide savings commenced shareholders, and time for are target ways identify without efficient our year, the and both savings we sheet. this our will and customers use provide expect is achieving of guidance April. we quarter when it. a balance we in to report definitive will At we

concluding This the concludes for we Jeremy my some remarks, back start comments to Q&A. and prepared turn I'll now call before

Jeremy Thigpen

you, Thank Thad.

also the would share I Q&A, to move XX as mark year to the we Transocean. will tenth following. my like CEO Before April

execute objective worked position and and simultaneously Officer; years, Operating several Executive around to Executive Officer. internal Roddie incredibly years, continuity. the and maintaining our Keelan Thad succession talent past and deep Chief expanded the the leadership responsibilities we, Executive diligently and President and looking management recognizing of last the and and year, plans Brady Officer; Legal Over promoted Long, the the just of and we President Vice Board Chief Chief Commercial business developing define and of room, those Mackenzie, with Adamson, to Vayda Officer; bench of Over Vice Chief Financial President to to President Vice and while

Transocean's this in the continue you succession plan announce I'm progression we of Executive release naming Officer. have to that press the will President As soon by will and morning's Keelan read Adamson, Chief pleased today,

elect I which Annual a and assist of time, through for team and the Lead At Independent the as the XX take would the me will transition, to and to Deaton, Board shareholders will to Keelan during the Keelan will as Board will asked be Over I that continue quarter elect Chair, to entire Transocean next few second Where with and as XXXX, Director. will XXXX transition past their current of we Board member trust General Director like Meeting. expect place Board support these thank months, the Chad the years. I Executive our a role our Chad Chairman. elect

offshore While downturn publicly an time only I traded challenging to drilling, the company survive offshore am the that in proud without are the incredibly we fact of drilling restructuring.

excited could And I'm and built A man and this who proud are the spent way of all, life with forward And introduce ranks. position further I I'm industry, will most impact we've a on the transformation technology Keelan. which and our company company, drill to the the to they the of that the on and drilling. improves to progressing sheet. more of But the the on continue we undisputed now There company as all delever look this the of with as team in in more drilling his Transocean. capable past X materially executive decades was innovative path positive also he transitioning efficiency. to fleet no the to to opportunity, one proud of the of have and safety deserving be not culture the balance leadership Transocean's about I the team or floor leader starting and offshore to

thank just again alongside of to I honor you. Board all to and team. my move we want the It Q&A, work Before once is to transition the Alison?

Alison Johnson

questions. Margo, now to ready Jeremy. we're [Operator Thanks, Instructions]. take

Operator

We'll Barclays. Eddie Instructions] our Kim first from take [Operator question with

Eddie Kim

much XX been years, others. some Jeremy, years than it's longer only but are

time. speak So transition having congratulations all I'll us to away like call career Transocean XX-year an on to what from will effective maybe guys just

Jeremy Thigpen

Thanks I it. Eddie appreciate

Eddie Kim

later around demand year. just temporary this had year. Transocean could day well space commentary your is supply insulated, on see concerns also Obviously, imbalance rate potential And is regional the but question this first we've very contracts some white suggests My industry-wide. we

a maybe ] light we $XXX,XXX a for as at you So of even [ as do a day see that, think low rate announcement day. contract XG could drillship in a

thoughts Just curious your about there?

Roddie Mackenzie

I is one. think Yes. I'll This Eddie, take Roddie. that

I available opportunities mean moment what the not in see look, at XXXX. is So there's we that many

gap you But to is we all community and know many or may actually to try sacrifice unless pretty deal lower think of not in unlikely lower to in unlikely think there continuation. kind longer-term I those one see plug So significantly you're a honesty, mean. on The it's the what be direct that opportunities are that's at two. going a if rate perhaps I table, at a drilling fixtures

So that dip also might the of you for don't you're think spec for the into units. most ] think lot in Xs not there's I his [ higher some that, I that see Jeremy is for possible I a the work data that think commodity that going Gen to be down many opportunities at of 'XX, especially I drillers any see will because prepared of that years. the in we're comments, rigs. as mentioned think multiple looking X it's of kind patient just -- in now, the And had regard.

'XX the on the years short-term and of a something sense starting make in temporary it or doesn't for concept So me, or market, to X based dip it certainly. 'XX doing X really in

not I'm of very far. going sure So many many low so published seen picture. Certainly, these to you're that see we haven't

Eddie Kim

which your Got to X those are is rigs retirement more indicator [ forward back demand. a Belo motivated rig, also peers, contractors announced just ] mentioned, of putting the be just of work. necessarily their my of other of and the isn't could Apollo follow-up best you handful on it. stacked stacked their And the rigs XG X One your Coltec as There Athena seventh-generation at Understood. cold rigs,

of of one do you rigs? could how you think that light are XG XXXX? see them in that, of your And it's likely we So reactivation before working

Jeremy Thigpen

Eddie. question, Good Yes.

a think they're the think of what We account evaluate has been what at cost into quarterly course, to tends And take and reactivate and how the fleet stacked. the when to been they've our market rig do day rate. exercise. that of It's into then frequent up do back going come the not go we to even continue we And -- to that. have than more course, stacked, long longer

return we're we lead I X will continue still And not disciplined. willing going to us, to the but we reactivation could customer would process just the their a evaluate time. first could pay But for are basis. say ongoing so we'll changes move won't is fleet in forward. for decent or in rigs, with continue an over we If seventh-gen on not contract And be then that believe the to to future the the

Operator

Kurt Benchmark. Our next with from Hallead question comes

Abhishek Kumar

one years. but in Don't Eddie, probably mean off, to this dog business, this, on like it's more

is years XX XX. like So

Jeremy Thigpen

look Kurt. certainly it I

Kurt Hallead

I Congrats, shareholder to tough a as it's took you to verge on It been like on refer that you're possible. know solo road, and and But path guys of equity as much seeing fruition. a looks trying the

kudos for, after front So for The that sure. are coming man. on Keelan be you. wish walls careful what you Hollander

Keelan Adamson

that appreciate Kurt. I

Kurt Hallead

right. it. All Got

the So great what's coming gave on the summary with dynamics. around here Roddie commodity on maybe on dy one back XG. going market to that But answers of

like consider layer it So to in the context tier sounds another drillship. yet have of consider another XG we or to

us again of XG a we commodity think you drillship. you about can Roddie, once how do kind And help tiers how do right So define the now?

Roddie Mackenzie

rigs Yes, enough. single rigs, load other non-high now we the Commodity of kind with XG, deal. hook that consider fair

you line Normally, got XG of and of have They also handling specifications. you've high pretty bright those But have So a we well. and the that super typically, bit a the as call generation, in larger generation. seventh generation split hook is they X load. them within the mud because typically have, sixth basically things capacities higher between kind

and more therefore, lower for operators load means than that well deploy the the efficient runs significantly that what larger certainly the can designs and is casing that rigs. the of size are So hook they the

we is is of really typically past that any a over that Today, in results don't desirable I years with terms XXXX. the of shown of single strategy XX I asset up those definitely that there been is now, to believe our rig So think tonne X,XXX has in right assets. in our class think utilization the most And because asset. that's availability

efficiencies those point the So greater are from view, a if of sense? more and clearly that that that you between take with the difference capable gen, rest big versus can seventh make rigs there's the customers does of it unlock

Kurt Hallead

'XX. well, Jeremy, give of pricing give evolving? follow-up XXXX you're standpoint? maybe referenced how you your number then and discussions And some got from projects pricing. if those How a deal sense then, saying, you us we're that. you appreciate I different give us this having you and the kind discussions navigating customers on into 'XX, is a look, much are for going in one to 'XX how of to potential Yes. that And discussion Can

Jeremy Thigpen

of Kurt. the Good say to control we high kind them, the about would of we're Yes. talking on rigs Roddie's adding point, fortunately. question, specification most and I in ,

harsh know that as think we we so talking And we market, rigs market ultra-deepwater about customers about to and that need. the the are these environment they

frames that the the so And of kind approach how we contracting and day rates.

also little can them. are get this we that use negotiations. customers blip in Because know is certainly will not our our they But helpful. So every advantage possibly assets valued to

Our services are a accordingly. value it to them, and price we're going to

Operator

Fredrik Securities. Clarkson from comes Stene question next with Our

Fredrik Stene

than and Keelan. in would But XXXX, that. be you what's and here, and XXXX hear leave to to I team don't and I'll longer at XXXX Jeremy what dog know just so congratulations Jeremy it think about again interested general.

one here programs it of to but slip commentary that with the the is from and to and the just fears the like in You gave a prepared good my seems right investors, to own right key slip discussions to flick continue right. your remarks,

So maybe or and in things 'XX these I in was will wondering due course your if now, anything in work expected that the lines? particularly there's confidence time around materialize actually gives you discussions current that in your 'XX

Jeremy Thigpen

think been important to I throughout And years, think of Roddie would and how happen services. I'll that I kind concerns There would about late what assets they're let what just us a with programs they telling everything up moving multiyear and to 'XX conversations. and commencing forward suggests our yes, are pushing in oil negotiations are are in the from what and those impact what all us about all these get they're what's more seeing prices about there concerns XXXX. caught and for it in start answer I'll these they're right put but doing are impact our I our And to in not that Sure. could lull in customers most the tend forward of tend and we're kinds opportunities. customers slight now is 'XX, are how my demand perspective, toward. macro. that

to today to hand all of confidence. net right? it these can course, of forward. me these with deep programs horizon. mean, Could we're in Roddie everything they so it what seems who to But I'll moving to around happen the And I And over knows that certainly Of all that, have on resolved discussions. demonstrate seeing because push the inspires he's

Roddie Mackenzie

Yes, sure.

macro, mean, So is some extremely touch for in the we're continue to apart but much, has been general, too so. from will which healthy and and macro, I to going the time be on not

I'll think reference going to at other forward. Deepwater most cases. the do case, look significant of economical anybody's production the harsh up that places going gas But you environment I go think and to to appear to I the oil if be and to is analysts that. be leave

terms this time year 'XX So we about are thinking 'XX, looking about time this were If 'XX, where 'XX. we or where of in let's plus. and into 'XX, think we last we stood in -- say, at on In looking at in sorry, utilization basically we're for XX%. looking 'XX, looking had XX% 'XX 'XX, the the at looking year, at Today, XX% we 'XX, into book.

past any you in years looked previous healthier think if decade 'XX years. in extremely than looks we XX are that perspective, healthy, the -- the -- arguably So of XX have about where

tipping there's year, we a 'XX. with in about In opportunity our every 'XX, we're that, utilization range the that 'XX. for of could percentile our be and, again different to utilization entering things about fixtures now high the hand XX%, think entering is -- the that the middle to all few made on, as working XX say, And without between we addition throughout

So 'XX, think as about extremely I we are solid.

working the have of As we about bit actually are 'XX. And I every we'll think just I are also in that now lot extremely -- starting good. tell is a 'XX. programs optimistic be to 'XX, that we're that on you mentioned you

'XX or starting late either So 'XX.

health the of jobs years about thinking health industry if now. of about barometer So, if how market, from talking start for again, in are looking drilling X you're that the general, we operators a multiyear the on the are the

a that's I think to healthy position in. be very

Fredrik Stene

helpful you. from super commentary That's both of

ones of the quick that. on X back Just

the that there? of issues liquidity second, First, development you maybe on inspiration and the dropped any repeat only because for had had, update out me was guidance XXXX the could kind technical And it driller?

Gregory Lewis

do the you want XXXX? sorry, I'm guidance full for

Fredrik Stene

Just the liquidity. guidance, liquidity year-end

Jeremy Thigpen

billion. I'm did but holding them in are purchase a sale sales some the in materialize. had to cancel the held still are And question, anticipation sale as opportunities. respect I'd to with for and for pursuing second did ultimately $X.XX so . given those been of transaction not sorry. mid-January assets for billion $X.XX add other X held [indiscernible] that, that to We agreement your circumstances, some we

Operator

with from Our comes Jayaram Arun question JPMorgan. next

Arun Jayaram

push you to can you're you if potential Brazil flat wondering hold terms seeing on for as maybe that was of some relatively increase I what mentioned Petrobras elaborate with in late to market, you rig you'd towards in demand the expect XXXX. count

there's future that just give Brazil? if us I any drilling leaves future -- in also a country? Petrobras scenario with later how contractor. going sense in Maybe just you week see kind a how wondering And of could a may progressing its on manage meeting thoughts the this mentioned on rig you meeting tea You demand the of

Roddie Mackenzie

Yes. Yes, I think I'll take that one.

very vocal forward-looking about So investments. been has their Petrobras

update to to a have XX count rig So there XX where they we Then rigs. later basically, week. an into about went up 'XX, from going rigs. XX But That's 'XX, this coming from we 'XX, from healthy were, to was think we a increase. if 'XX grew actually

'XX the between Brazil. rigs second in of XX are somewhere by half to be XX expected Now to

Petrobras across going rigs are positive a think with something operating in really We rigs board. to be like XX few there growth as themselves that's countries, XX to high the as XX in country. So others so

of don't So overall, of under very a them is to of a acknowledgment that spot. any they expect lot at Brazil think full contract. kind the have progress have currently positive we discussions A that we with is rigs point. I We Petrobras all need the

not typically, more. if the goes to contract, as there that going chance be they're on. year to that's going I'm incremental everything add some then there's that you demand may So say a under But need

Arun Jayaram

does you that in follow-up does cost Thad. is for had -- by XXXX maybe things today? the efficiency recovery that contemplated And Great. -- O&M of contemplate and the Could guide, you insurance on the maybe my the elaborate rig on thoughts some quarter cost just are

R. Vayda

it first, question second in actually place before year, since So, program does even bit little that. not. had of We've this the beginning a this

refer the with to to going it suffice that's differently. research deal doing, later about included We'll say question is an settlement guidance. in it some to are with to that you associated earlier. do to guidance we our provide good settlement, on, And not business received respect the of We asbestos but different identifying I mentioned, but ways K, I'm as a the

Arun Jayaram

Thanks to . a of you. Best Jeremy, lot, luck

Operator

question Lewis BTIG. our from And next with comes Greg

Gregory Lewis

guidance rig everybody working bit time X, a think forward we for or rig that kind about in of my first we a sidelines versus congratulations luck longer-term the like an much longer. any about When should I put [indiscernible] Jeremy, Keelan, a or coming. warm is is more. about has expect question times X, think versus on we good little versus even should lead the the looking hearing lot guess how where months multiyear been XX sitting X-X-month rig, that maybe contracts off those,

Unknown Executive

is depending so the rig and Yes, compared a Obviously, on XX environment getting a So activity. be, where to the because that is cold maybe a customer ready really opportunity and of X work regulatory could going rig and goes months take I'll in it opportunity on a where right? for that requirements one. for our mind, stack on if the X get probably sort months it's XX still to it's that ready -- wide depends for pretty unit the customer question potential to, to warm -- where the

same That's terms obviously, quicker. obviously of rig, requirements kind what with it to active In the as means. regulatory much sits again, customer of

Gregory Lewis

on one would your rigs probably that higher competitors of that just, spectrum. of And decision been of be have a made the on then kind Great. end obviously, Okay. to the sidelines remove a couple

bid, answered your look maybe this, the already you just they those Champions, being maybe and are I looks of aggressive everybody look kind to Americas wonders, at you and removing rigs, but they're and as apologize Just how there some at maybe when them sit being as you out across day while work? you competitively not like thinking if and they about maybe back come fleet,

Jeremy Thigpen

you. that did reiterate. that little would retiring -- Greg, one, kind but Yes, ago, can of bit assets. say we've most I answer Yes, we the the we we been in a thank at space aggressive

currently look Of reactivate. the but assets largest analyze to fleet the reactivate, course, we at at to fleet, cost kind term to the look the we they we the to think through of and constantly fleet, we'll and as do and kind rates assess could this what we the we that continue our stacked. and time have We get day of continue at of what are look balance at year. We that look move

Operator

And I'll Energy Daniel from our Partners. Josh last question with Jayne take

Josh Jayne

could from and the you've you to and floor, Jeremy, implemented the few HaloGuard last Maybe year First keeping something years, give is here talk next about this the one, there rig we've opportunity next anything technology safe. sort go see over we where about been with on respect to years? safety, of them over couple people and the from just rig what's major of you is last talked a lot removing big us

Jeremy Thigpen

over for question. Keelan that the on to Thanks one. Sure. give I'll it

Keelan Adamson

a that's interesting very question. Yes,

trying of great will think, deployment much we're our a right get as we opportunities to activities those success red decisions. HaloGuard wider time deployment have help people and across our And the an and some for to It's place. and I the information we go take make have look looking We obviously, fleets, the have ongoing with to fund hazard the forward. prevent propose. at at that accident customer and , more we major what we're

where So development or be teams our prevent things model assisting in in moment will that themselves assist by day getting ] Hans forward. I going critical efforts from would technology focusing say and any decision and That's a to by we'll technology [ them day. those way our do

Josh Jayne

that allow maybe move potentially remarks, higher Gulf over to on activity could for the what about you being sort opportunities into year up course the your And just prepared are takes And of thoughts the puts higher in and grind things talked thoughts it in of Gulf? activity what of Mexico there? this some drilling the Gulf would administration pick maybe the next new to with follow-up, might in for as There were of take my the sort flattish. year, and

Jeremy Thigpen

Yes.

for a sanction. to to I us. obviously good favorable think a They long-dated while are projects. with these that's materialize administration, But take

It's demand so And a going may the certainly positive push to not it's to probably thing. bit a a projects even regulation, to favorable forward little little just bad It time. time take of a with increase and thing. in take

But move So time, it be to should wouldn't over certainly near in the helpful. term anything materially the I expect needle.

Operator

final or And for closing like to you. Thank any turn the Alison Johnson I'd over remarks. call to

Alison Johnson

look Thank day. a our quarter you, report speaking Margo, XXXX you and we again to results. thank good on We forward you, first everyone, call. for your Have with today's when participation

Operator

We gentlemen, Thank for program. that you. your and participation. does you And ladies thank conclude today's

any may time. at You disconnect

Transocean (RIG) 18 Feb 252024 Q4 Earnings call transcript