SDRL - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by, and welcome to the Seadrill Second Quarter Earnings Conference Call. [Operator Instructions] I'd now like to turn the call over to Lydia Mabry, Director of Investor Relations.

You may begin.

Lydia Brantley Mabry

Thank you, operator. Welcome to Seadrill's Second Quarter 2024 Earnings Call. Today's call will feature prepared remarks from Simon Johnson, our President and Chief Executive Officer; Samir Ali, Executive Vice President and Chief Commercial Officer; and Grant Creed, Executive Vice President and Chief Financial Officer. Wieggers, that President involve Marcel includes Operations. Today's is statements forward-looking risks joining Senior of Vice call Also and uncertainties. differ may results materially. Actual No and forward-looking the one to these valid should in later update. statements quarter assume we remain year, no obligation or assume

Forms and with U.S. Our affecting business. the Exchange risk XX-F Securities of discussion X-K more a factors provide detailed and our and filed latest the Commission, forward-looking statements our

will call, refer to measures. also non-GAAP During the

website, our reconciliations the SEC and nearest earnings GAAP to Our filed corresponding on the release with available includes measures.

Our use EBITDA earnings on defined corresponds call release. adjusted today's our term EBITDA of the in term with the as

Now, let me turn call Simon. to the

Simon Johnson

for us joining call. today's you Thank on

an first $XXX million For year delivered on of the combined million million half with quarter, XX.X%. Seadrill a EBITDA. $XXX EBITDA Seadrill had a margin of EBITDA of revenues the strong of second for in $XXX total operating

rigs for will and revised dates within we transition for expectations based other it on entered However, on our X year. moving a second half rigs fleet. We lowering XXXX contract start are near-term availability we're knowing estimates be to our the uncommitted Brazil

rate through-cycle a so. strong from Triangle. We We consistently maximize advantaged and focused maintain attractive acting maximizing we our what contracted one, market as reintegrate rigs. balance a contract managed third-party competitiveness invest across At willingness operational on matters; the in demonstrate Phoenix more events when West operate will sheet four, inherent three, efforts Golden potential have others. of contracts scale stewards from units and a important contract with of to we allows metrics, do, the of Polaris, West impact enforces our and alone space reprice, the balance maintenance rigs white for India, of doing fewer fleet, where across outcomes. in services We've moved volatility of one rigs learn XXXX. possibly most long-term the We safe, the we emergence by the by Sevan do geographies, necessary these performance subsector Capella. to encountered importance We're options time achieve efficient, that and across operations importantly, calendar-based we primarily some us maximizing doing and most relocate near-term it discipline acknowledged we Louisiana, achieve cash intensifying prudent into flow by while will we units earnings deliver limited two, This the on drilling resiliency. To performing we've first early management matters; durable of scale uptime. When say cycles: idle and our the useful of behavior in was that further sought and on to we identifying responsible sheet the operated preparing occur, rig contracting oilfield cause, in to Seadrill, our our the standardized fleet them, highly in in fleet as concentrating strength exemplified incur to which several others where matters; The earnings operated indications the peers, cycle justify capital. root competition and rigs downtime of our scale. Like We at Brazil, by economics matter. staying term seeing reshaping intended availability, specifically life, basin rig and West for on then discipline

We are results. seeing

our continuous will cycle. I through nearly personally Every operational achieved XXX% rigs rig visit the seen success I've improvement and drive our rig sites our of uptime. X year, quarter, in across every performance I of to fleet. most The the During level commitment our fleet, set Elsewhere West Saturn across examples from Phoenix the lost our returned in where and fleet, recently incident, an across celebrated X the continue to without a years our all X time Angola, superior without metrics. performance years rigs recently LTI. with the safety that

Looking position what's deepwater the remain believe industry. demand largely at still broad-based will We supplier bolster in recovery. the of burgeoning confident drilling the been market, side-driven long-term we a

However, major discoveries convert rig in Cote to into have Indonesia places yet and material like Namibia, activity. d'Ivoire

expect slower XXXX. persist to of We the demand will conversion contract into awards

development no Importantly, play. we've Rather, seen likely dayrate are there demand. paradoxes indication that is at curtailing more

timing of out get deferred. would occurred E&P X, projects When contractors. that can change consolidating are customers becomes have consecutively tenders Firstly, it often X as the

the dividends to appear Second, prioritize Even independents debt drill to prioritize E&Ps continue over capital small returning on retirement contracts. buybacks, spending and to bit. it than rather shareholders new

largely appear demand countries and commit certain horizons. shifting long-dated commodity sociopolitical for unwilling the uncertainty E&Ps appear projects. our actionable to in underlying be to to Broader shortening customers' to situations Third, time related

contributing it Asymmetry demand can and supply expectations less a be market align smaller In between to to on not is this level also transitory. is discretion projects JV a definition, are can demand destruction. contracts, and demand for liquid difficult E&Ps projects, by inventory perfectly, partner are responsible rigs some believe showing by at consumable prevent idle proceeding. We from Yes, they producing What resource. of delay, time. but available seeing that the characterized near-term a we're

market's outlook drilling deepwater the of view remains longer-term positive Our unaltered.

with congestion our the market position and lack of be, short-term development relative we're and a ongoing it. within of the As as satisfied frustrating may visibility

volatility. be will there However,

As may we scale, as That balance now, shorter matter. seem wider. spread experiencing dayrates that of management micro-cycles be the amplitudes sheets, be and the teams operations greater, an ever, means potentially period industry, to and the where

competitive that and Seadrill Thank the for your As our will employees I'll to will collaborative and in a cost-conscious we you progress. I'm the continued team's call competitive, commitment to our player. behaviors forward. With Samir. confident us potential performance, look that, horizon., to to the convinced carry I'm pass be

Samir Ali

do to our Trying difficult. becoming what is Thanks, are clients to anticipate more Simon. going when

contribute and to of are really idle Then, launched unusual day period dispersion. We on over they table. players year, contract players demand than of and For More we challenging can can only us. is NOC deal. within this front other. Though contractors the that floater year time feel rate last follows never other the same first and that they IOC for at market in of not others contract. an markets were hours the the an awards are the balance an through to card competitive example, with each seemed what rate global different the timing ] get of XX-year half what progression, right in adjusting have. Certain alone what Drilling continued the the half response were now. where appropriate, play multi-rig still do and must respond We supports of tenders cards may July, late like with [ uncertainty anticipate, hand

within Let's walk Golden each. and with focus market. around outlook area, the contracting Starting most and demand the Brazil world activity our Triangle. deepwater remains the primary reviewing the important single

operators keep remain of off appear that that XX, We rigs rigs and specification over in will varying balance. time. About XX the incremental though in there to would market open the have floating flat to X in there expansionary the ambitions next of units roll up to X around X for months, number expect the region could yield additions tenders are

up and with and are we As May, tenders completion completed of the begun in scheduled have She Petrobras long-term markets. We traditional West the year. rig. often later month transitioned for and in have update both of market in outcomes of on contracting short Gulf Vela Gulf variability to these being remainder this able well to shorter-term should Brazil, and X X high dates. We've a extend. rigs well that the then committed active that as mid-XXXX as these week contract could future rigs in year a work through specification XXXX. can outlook it as remains January industry the outside the rig's X years, larger with so week. contracted participants anticipate Louisiana create on line month, of for to West of remains X later dialogue intervention Mexico. through work fan rigs contracting to with finish here compared their provide though U.S. changes dayrate is operate through drilling development. an demand The an Neptune aware, campaign this Sevan other for and we been as new drilling Recent XXXX, The generally Mexico threshold drives awards a The high The

Golden like drilling incremental We have both continue explore for white experience. geographies and Namibia to to Nigeria, in driven extensive work operating key we and fill for we beyond, where and the that in in demand with Southeast in space. West multiple of should its of in rigs Sonadrill remaining X interventional industry source mid-XXXX XXXX customers with opportunities programs keep Currently, remains by a have could XXXX the Africa conversation venture and joint be our various contracted active through are countries through region on remains Asia the beyond. Outside with interest. across clients and of that contract them active Angola Triangle,

outlook, to continue Var concludes equipped the X that to contract rig contribute with impact second level Based month, being believe will of X time and as stack the drilling, for investment campaigns. Norway that the EBITDA. well rig managed reducing West work the in Capella oversupplied firm to or the remains precariously positioned fleet, opportunity soonest half our region X demand we When with continue hard costs XXXX. Across current can operating earn. we later is be in acknowledge of Energi on balanced, but the million in idle in its drillships dispersed undersupplied. Phoenix justifies We pressure absence X of to required between rig either for work this the $XXX over a rig the rates the the the Norway, contract mitigating we of will

we new Grant. of conditions protect cash and get I'll now maximize benefit and rig's earnings and contracts, we to to hand ensure margins to it the over each terms we book the and flow. And bargain the aim the As

Grant Creed

Samir. Thanks,

to administrative Before I review want I items. begin, some

we've from private filing should we'll Following and corporate like issuer welcomed That office XX-Qs foreign our a means the drilling which international offshore consolidation investor domestic issuer our major from of the a other contractors. base. all by in be Houston, XXXX XX-Ks be to transitioned recent onwards,

on, to business. also listing Exchange, the on the ending voluntarily New day Stock from York on efforts of last exclusively be Stock then are will the Exchange. trading secondary trade we'll with Oslo Monday, our our X, simplify We consistent on and September The

before performance full quarter to Now on second outlook. moving let's to year turn our

quarter with lower the contributions offset drilling Second was quarter they Sevan second the days. This and contracts earning Polaris million, million, intervention Angola, completing in first We Brazil to in $X corresponding by decline respectively received $XXX work from partially underwent Auriga affected they Louisiana, quarter revenues than the operate $XX revenues X April, in revenue a upcoming to contract transitioning as and XX compared which short million management when more Reimbursable million quarter. to sequential the contract returned traditional XX venture, expenses. Updates a for by through which contract. $X a first contributed no in preparation from joint both Sonadrill in rigs decline were and to contributions well revenues. a accompanied contract drilling reimbursable were leasing we before our

the P&L as and management for First, an inflationary we January we applied quarter. in the retroactively rigs, million appears received to on contract daily revenues operating earn $XX management our X. This was Sonadrill the fee second increase on

rate joint $X we're paying to venture proportional begins the day its a which own partners nominal to charter JV bareboat to contributions. earnings we in now Second, the the Gemini, the charter as out their a West rig beyond

] a X include Qatar The income minimal and to the attributable primarily commence they million joint $XXX million with $XX in until change compared this Auriga, they prior quarter, quarters million we contract of and the was was of $XXX as expense the revenues operations as X%. leased and Gulfdrill year. delta BBC incur into well rigs million undergo associated [ the later rig of or as to Vessel preparation venture. leasing operating jackup Polaris quarter revenue OpEx, $XX Second

million the managers completed of Additionally, headquarters move on units million, expense pay to we million their and rig previous which related management consider expense was reflecting transition maintenance Sonadrill they we item adjusting our of contract those contracts. costs an we of rigs. SG&A sequentially and $X London longer to Management repair included Seadrill $XX EBITDA. million as $XX $X third-party to after Houston, from corporate no on to increased to timing them

million although $XXX gain on gross sheet, spent recognized the and the closed by Qatar between joint representing the debt balance for XX, share $XXX cash, net difference XX.X%. We $XXX and cash the quarter sale partially assets. a million jackups, which performance on of value biggest also million. we of had the the June a maintain sale, ongoing $XXX At our of million a a disposed margin the of on proceeds and from sale of in We quarter-end, This being in the at $XXX $XXX of into of terms translated EBITDA proceeds venture of Gulfdrill strong position change cash strong million repurchase program. this offset quarter million principal jackup net book

to balance our the deploy our sheet using invest consistent allocation evaluate maintenance healthy it and fleet, existing continues a capital, competitiveness profile, capital to to and opportunities growth in maintain We with capital of and liquidity potential shareholders. return policy,

value looking to accretive always are in activities. We our invest capital

over count million maintenance June. were including September of initiating We from captured flow in operations we completed $XXX a XX%. Cash have resulting quarter, our reduced buyback announced cash Since issued program upgrades million quarter, the $XXX the program. we previous Late $XX XXXX, CapEx. with repurchase late flow robust in another the million award shareholders second executing for long-term in we flows continue in our program $XX million. was and $XX share return our $XX million quarter, to cash that of capital in by million free began investing Capital facility the for

full range means move those of of the review previously bareboat that our Gulfdrill outlook. $XXX our from our previously million earned revenue completion it to million. the assets of will the benefit in otherwise related in sale the included XX the this results. Adjusting to disclosed June not midpoint Now, EBITDA Completion and year have let's charter half to would been on $XX reflect second its of year, would guidance guided was we

start future range and softer million, Louisiana Phoenix reflect in realities of risks the remainder our we are outlook and delays scope where exasperated shipyard sail Auriga set the major will differing dates challenges, disrupted adjusting We for contracting Sevan between and and a and related by $XXX Despite to approaches guidance repair both soon rig The of updated the hit unexpected vendor departing speculative owners' into $XXX year rigs on that schedules. to Brazil, periods on milestones now weather Polaris the begin and dates that reflects they'll to EBITDA in have that and and and full rigs. rigs maintenance, on opportunities current expect million these begin real Auriga work and for acceptance further are contracts to beyond Polaris changes Louisiana side. The extent secures We either Both upside for their of Sevan expectations the previous regulatory that guidance. customer its XXXX additional EBITDA XXXX. a testing. contract, still rig should represents start EBITDA shipyards by to move for year-end. To it the reflect recognition managers' midpoint

billion to revenue, For expect $X.XXX $X.XXX we billion.

the same $XXX to guidance $XXX remains CapEx Our at million million.

outlook fundamentals. of the call from transitory, strategy for highly for at that, the underlying lower standardized softer and for matter, also our reflects Simon harnessing of and cash that our the safe, the balance the operations. With addressed of the market and EBITDA to adjusted into our for we'll does the strength year. It It assets create strong questions. efficient, in future remainder reinforces fleet on Our shareholders, schedules least demonstrating in guidance detract not importance value open operating of belief theme shifting generation accretion, earlier, executing reliable that delay market's value discipline floater periods a in our pursuit flow delivering of sheet specification markets

Operator

first Gruber Instructions] from of comes from Your Scott line [Operator Citi. question the

Scott Gruber

and through think obviously, 'XX. the strong the on really Xth there 'XX uplift gen late rates rate recent just on demand is and the And this work? for rates the term impacted It gen the think shorter-term based Xth Xth you for thinking that could will the patch on gen about coming ask, I'm by be soft do that some be seems up on helps to shorter-term awards here, and together How on work that's gen strengths rates work, to sustain Or you then gen market. here, really taken Wanted you Xth taken work? those resiliency discounts Xth are about hold term could do the but do rigs, think that for fleet?

Samir Ali

Yes.

So, in drill least rates, our gen I'd gen Xth pretty is the at where on they're this Samir. conscious ships, been on Xth say, we've placed.

MPD. we've So on a X in We've got X got in X That's Brazil market the long-term Southeast with Asia. contract. of in rigs X

-- helpful. venture and to where think having in our rates that we on push at we levels. protective is So good continue Angola, JV can And capitalize X mode in that then keep is

the been can at we world them we've for still place ensure when around of rigs. that conscious look to we So, on how for rigs, rate the maximize rates us, those those pretty the we

Scott Gruber

Phoenix, And Got the just color. the appreciate it. West on

could to did correct? essentially You going that outside? in next out you the arise the that that the be Norway, probably bid mentioned going not opportunity late to next rig that wait is would 'XX, in I assume, of outside opportunity I hear look Or kind And for of region? you're

Samir Ali

Norway, so, we're markets. we'd look on No, but Yes. obviously at focused other

For the investment us, we making CapEx justify that's it's in the really rig. can sure required

'XX, invest got for opportunities sure but I'd the We Norway. middle are stress over capital. outside other think we're that that at But there us making return on I $XXX key looking if in is opportunities of are million a going we've to the the in of rig,

Scott Gruber

Appreciate it. I'll turn it back.

Operator

from Ben line the Nolan of question Stifel. next comes from Your

Benjamin Nolan

it. Yes, appreciate

that train be obviously, "the the smaller about question my you are guess could" here. now -- competitive to and mean, first that competitor means just it that I is to relates guys So, little landscape. a gone, I

about if a curious, how you're things positioned, were you the if world or change as same how So think sort -- does they bit how now? is consolidation are happening? you that the little do the differently Simon, about landscape, the that Just think all competitive at before of you

Simon Johnson

Yes. by posture same growth for We company. that think presenting recent announcement. time we've ourselves the we as No, Ben, at Board, to and is changed an by for the opportunities charged doing our the attractive consolidation, target I can been maximize agnostic don't were between what

an balance we've backlog. a sheet, got we good attractive clean So, have fleet,

and in So, we've a target believe we a also this for acquisition today. platform for also is We're growth. today we're well-run potential reflected that strong definitely Seadrill is And larger results created very business, a peer. But disciplined. a our earnings very

for there the certain to thresholds are when need and at we opportunities exceed. those or growth, look metrics meet So, that opportunities

So, we eye have and trying we're on to one one got eye on what we've build. what

Benjamin Nolan

Got you. could but of And little color the Polaris? Auriga the then of and what mentioned for a some a into Grant, you is you delays it bit, the second driving on maybe my little more bit timing go question, on the

Grant Creed

there. Well, chain yes, can issues, it's really the Simon I and go into detail guess, more supply

Simon Johnson

essentially, in with in I Yes, uncertainty dealing is some our peers' have what terms mean, the terms there's you're rig there of acceptance. of -- rigs performance

our there left now The voyage some So, acceptance Brazil. down for we're that recognize rigs fact be preparation to quayside. have longer we're process. changing the in may sea the shipyard, and doing and a the for outlook load-outs period customer the to exited trials really the We've

are to behind substantial what's customer that's outlook relates sole now So, project outstanding most of the acceptance we've milestones growth the been process. judged, in reason that a us. changed that the our we've risk main and major Really,

Operator

Clarksons from Your next line Fredrik question Securities. comes of from the Stene

Fredrik Stene

Hope team. guidance. touch And wanted are Simon first, the a you I well. couple bit of to on have Hey, and a I questions.

the reduced the the think I this half today for year. impact clearly, estimates second will of guidance

is of your I their are Auriga, previous relatively of the over XXXX last hear your guess the have on Or through read magnitude should to and they more all quarter terms to cetera, the XXXX? the startups they'll that you guidance Polaris the we your contracted interested and et color into it's anything based kind still not taking given if of contract in versus it. But think I'm about guidance, for a anything work reduced yet opportunities, rigs bit fine, of all it I market for start do kind okay, changed and 'XX right? XXXX. But Because possible XXXX? through for in think,

Grant Creed

Well, impact add into that and on just of beyond. start really the Polaris. Auriga timing guidance, the But thing pushes activity and will or the Fredrik, was not impact a others XXXX Polaris, then you and just can then it's that And rig like anything. not is and say, future maybe out I'll periods plus EBITDA the and Grant, Auriga majority should

I is that think look lower Louisiana you'll at. spec. a that rig we It see is

quarter, we got that continue a pockets stacked said, she's means But has see space to You we air like in forward. Samir that fourth have the opportunities which and confidence white are warm that her commercial during be theme. assuming going may

if at you're looking So, we can't discount XXXX. that,

opportunities we rigs, very good. relative that, beyond contracting for,,, we'd about maybe those over her next come hand contracting to the at I talked Beyond then middle look a XX% looks We're basis, say of on is approximately what our Phoenix strong. Samir and profile the year. And But actually contract I'll for would covered, which very rest of

Samir Ali

little then BOP And to that we've to the be the Louisiana engine got got continues next a Phoenix So, which our activity, And market strong Sevan Phoenix. for in. we of where of year contracted with the feel an profile JV, we've half strong -- we're through you that again, if year, then Mexico rigs Gulf year. the probably second Vela. And of Sevan, the of Fredrik, she's have earliest. second confident like the Angola, Gulf a got rig we pretty the next could. XX% And a also The dual at Mexico our asset it'd we at the I'd in then add, look a And it's we've be rollover next in dual half in and XXXX. spoke

she here there. ends always finding work up So, and

for that been. that contracting it's still we are optimistic rig. into be we cycle be next always shorter But will continuing can to We as think year a secure that work

Fredrik Stene

very No, that's Yes. helpful.

sale JV, think, to I were expected. fleet, the Second, the on slightly than you earlier close your of able

boost getting the of nice So, cash into XQ numbers there. kind

for and a investment well, as again, being With Aquarius, you the that take if any the Prospero are in Phoenix time try likely but still work now do the some substantial that sell you how now have attitude et of Eclipse cold fill into your taking of have potentially play to out terms some view order? needed more comments, gaps you your is to scrap to that changed, your you fleet. to rigs them, towards have -- stacked them, on cetera, active you're

Samir Ali

Yes.

So, I'd say top out it. the those market continue actively the Phoenix is of to still we priority and rigs,

So, rig. for we in are for active work dialogue that

So it we us, stack But that on just giving not the in may to term. have yet. rig near for up we're

it of terms sales, I'll that. on comment Simon leave In asset to to

Simon Johnson

Yes.

think material opportunities unit the and cold contract. side outlook reactivation reactivation time, potential contribution looking stacked we for on that to good been the I initial a of contracting a in of good for a We're want through and pretty Fredrik, clear the cost terms units. for we've foundation a from client,

focus moment, some the existing is some those term on of at the So, and units. getting the behind working fleet

to to anything units, is a approach pivoting we're other in There Prospero for been to certainly I non-core clearly that opportunities the how attitude hasn't don't now really you're going change. floater think focus. we might than So, a our asset, as those a change West see

more think than candidate was So I likely probably the sale that a others.

Fredrik Stene

share? do current have estimates cost Eclipse, you That's any just can the Aquarius reactivation you helpful. very And on and that final

Simon Johnson

underlines confidence them No, there. in that, time, which we're unchanged for position think at my I scrubbed some Yes. we an haven't

Fredrik Stene

it Prefect. I'll the one. leave to next

Operator

question comes BWS the of Khorsand Financial. Hamed from next Your from line

Hamed Khorsand

consolidation. role the as tenders that aren't and commentary harm quarter these Because budging about. to on just quarters, process. that think peers and contract I we playing X last are aren't have wanted you is the as follow-up on But a talking far your the that the comment on the here you now, -- question go? that Do was pushouts -- tender dayrates causing any about

Samir Ali

X I is an parallel what sequential base, doesn't mean, plus -- our as consolidation Yes. us X. ends I'd say happening X programs with up equal for programs client industry. sequential become

that we've consolidation out with it's the pushing it it's and it's it's Again, further think our a not reshaping just I demand. base demand a -- pushed out. some destruction, customer the has just of So, demand seen

Hamed Khorsand

think of you process? enough the timing year the there after complete being Norway, revenue the your do Phoenix to time given you is And -- generate next in maintenance

Samir Ali

for be us, the year, we're think significant until amount upgrades -- time a I on And we're in do. upgrades. closer of that have to we for to going of feel if maintenance complete spend not targeting to spend contract, next to definitely programs enough those them. We we a ready capital But and middle and

Operator

Your next BTIG. question comes Greg from the line of Lewis from

Gregory Lewis

North I of is hopefully Sea or plus a like it seems Norway. different. like question the a around can kind maybe in I that been floater guess minus case the base seems little Phoenix bit the my is it's high-end markets back work Phoenix work 'XX, in the the can rig. know half -- of if It it

Have like stay gold kind plated its of Norway. Obviously, rigs would what it looking to of $XXX-million-plus outside bidding it lead we actively position kind to it work the in survey actually we of in to the would this high-end and cost we we're where Sea Norway? through out mentioned a roads cost take of what as is out, and some or obviously, all -- Namibia, kind sister have but about Phoenix, in number And Namibia? a in to just have that in you cost North go think just it potential So, regions are market. to of opportunities we have that's rig worked the

Samir Ali

as required get capital at But same. cheaper have the keep for large -- Norway, it's but able from we in cost. need But threshold works is that the investment, if and we looked us. our at Norway Namibia, us, the focus and we coming and you actively the well, of the maintain we outside to we Norway, justifies cover I end looking that's her. candidly, the gets is it a day, have on costs, for investment. And of kind it that Yes. back to the in that Phoenix, think We're of that -- need of be and a do that's terms It's -- -- in fine. that's to for to CapEx fine If also program find that further to

Gregory Lewis

And as the Southeast I'd XXX%. do to Asia, Golden mean, just, No, pay I I Yes. attention Triangle about a we more think lot there. than then

As are I for type tenders we "Hey, wanted the to that be opportunities, early work, but broad in also i.e., is Any be the off is rolling of there of around market about the idle it, going I Capella, opportunities think rigs work, thinking kind there's year guess pockets of QX. X to be there those strokes in to about or time." if going plus conservative

Samir Ali

some long-term in There programs. market. are programs some that are there So, short-term

the about that She's assets Capella in think the unique have MPD. I of MPD. with market in she is, that is that equipped market thing X X

program preferable tenders So, you secure the multiyear seeing return we of those. if smaller opportunities. plus are are But it good we is profile. some mix longer-term a targeting right a one-off both of Obviously, can for wealth

Operator

Your next from Tuohy Brothers. from comes the question Parks line Instructions] [Operator of Noel

Noel Parks

spread to look try more a alone the to more willingness operators, your they as in by the you're in had, operators in see any tendency changed that I in when for or seeing fewer out at investments given project? general, question whether capital impact A it point involve cycle continued whether to the development? ] risk just I'm the discipline reluctance on curious to has just go [ wondering, we or this I'm at partners making

Samir Ali

Yes.

across are secure saying, want little -- least where to bets exposure around, smaller Gulf more not we approvals. at a make "Hey, their opposite it of but think trying clients Mexico, their -- get challenging make clients it." spread of ton certain we've of -- So, are down for bit has can little actually little markets definitely to challenging the in a where you're rigs got which But more of bit contracts the wanting it made clients you're the more to secure I down are a or farm kind and seeing exposure, bets, us. seeing in of bets don't their space, that a to which small seeing farm we're where

Noel Parks

particularly to Great. been come that any Year-over-year, at big seem insensitive moment. customers vaulting in like in dayrate pricing doesn't this forward across right increase. I'm the a there It And degree we're the -- ] [ that it's maybe are curious discussions just are price at point. you

of And thoughts And out so, if there know price. or don't there if scheduling, a is the not but if I any I'm have so clients what subset -- just there? really it's the logistics much wondering about availability, you, where discussion is

Samir Ali

Yes.

"Oh, mix, comes demand the truly price wouldn't saying, they aren't we're a but not it we're the But it's -- Clients the is that every right? down rates seeing by of are super of opposite sensitive program out client of destruction itself. decision. the too their -- lead I any dayrate is say equipment that I'd off other driving because there and or that's long at to but going get are The they some there's can we're partners driven other items, small client So, asking, is it just -- point. really some say can rates it, because get factors high." not dayrate a to, piece turn There's

Operator

question Energy of And Jayne your Josh comes from the line from final Daniel Partners.

Joshua Jayne

of follow to the on wanted just questioning. I up last line

is was prepared was what ultimately we but get a talked the characterizing going the about market when satisfied, it from discuss as in his think Simon, you contracting think remarks, ball frustrated hoping where are today, about talking further could standpoint. to you I rolling I

customers and really point. the You'd much is you How But ball mentioned I all go lead-time it long about a contracting talk That's just rolling those we are talked timing? how it just through items. big of rate what's factors and hoping not and sensitive. could was is sticking much how just the get ultimately standpoint. going rate? to that where aren't today rate project about You from

Samir Ali

Yes.

are guys demand So, for this mentioned his long. definition, that in resource prepared for is a Samir. can so remarks, only can producing You consumable I'd say, right? defer so Simon long, these last as only by

that starting happening and strong There's are of see second to next into We XXXX. happening. half already year conversations for

starting they some that in anything. of add as get that's to start come places it long lead mentioned, leading bringing starting you're to that back, are to starting see part clients you be is, And able to equipment I to indicators are of chains back. in itself. time are data, seeing So, And would it the Supply loosen demand continue we and too to equipment, to that being know if that. other seeing you're need wellhead wanting some clients for I want drilling. don't

Simon Johnson

Yes.

some I would ullage That's issue increasingly an deepwater a becoming is that factor certainly think look at. production I what is of we the in hubs. that add

is So, replacement about been while more these concerned the think base days. of reserve I the traditionally, customer short outlook people a lot just have term ratios,

I facilities, So, it and a in back really, this is capital an little factor. But think, discussed to important often discipline. ullage gets

production, their coming Our rather fashion. in thirst staccato first market shareholders to of their own and customers are satisfying for it's a the than sort somewhat

Joshua Jayne

shorter-term And on Louisiana. question then one just

You some work then there work the alluded projects primarily versus you're Are thinking using some intervention drilling back-to-back months? it options that over of I'm to to about for it earlier XX rig it XX for next in work. how are curious drilling stack and intervention did the that what there? opportunities just year, the sort And to and

Samir Ali

Yes.

in always both on work. looking well. Mexico. I Gulf and the profitable inside both, as we're more is gap for dialogue active but focus our So, work of outside us, intervention it's as drilling fill We're absolutely mean, at

are tends opportunities. Louisiana, at up even we but pursuing So, for with it near say faster the both and term the in looking work, we drilling pop the work to the into are I'd than intervention XXXX. faster,

Simon Johnson

to here come prosecute effectively have X can work or to when most there. market as with just We that work X that point think in a have and important the type the campaign much a as a is than element though, I do rather some make and you that we that's wells good in timing we interesting. there, discretion intervention in of volume needs that

Operator

today's concludes this And conference call. Thank you participation. for your

now disconnect. You may

Seadrill Limited (SDRL) 6 Aug 242024 Q2 Earnings call transcript