morning, quarter ARO provide our remarks third for Thanks, my financial prepared cover Tom, on remainder XXXX, provide for spend and synergies quarter an of our commentary some our of finally, second today, guidance I'll I'll some and outlook the XXXX CapEx recent level our the also capital drilling. results, allocation position costs. high and and financial good in discussing update transaction And everyone. I year debt In merger on time light will tender.
days because reminder, This quarter acquirer in accounting April of Therefore, XX we merger and is for press legacy on corporations the second the was quarter the from closed the a in release and company of the As XXXX XX. results merger. [ph] reflect the the onwards. first XX ENSCO our and combined only legacy April
fleet naming you rig jackups comments fleet now will with to categories. subdivided names call rig categories attempted with and aligning rebranding, to names know legacy with into simplify in categorization more in Additionally, our large for report this conjunction status ease transition. My the on reflect The we've our the to is fleet. the logical those organizations rig
forward, names reflected will going rig material. updated However, in investor our the be
call. reporting our combined quarter is results conference actual commentary a company. provided second My Given on our first against guidance period compare will XXXX that as prior
a EBITDA million I'll strong detail. Adjusted for million. driven This $XX was factors compared quarter guidance disciplined which variety to operational in expense approximately by the and management, was performance review including feat $XX more of of
impact deferral the quarter that will into third However, also adverse and as the an of have Tom quarter. expenses of mentioned, into reflect effectively second which forward on it'll quarter, portion pull certain the EBITDA the
higher the Ole Rowan revenue million and the of days Rowan utilization of $XXX revenue and to operational million, for fleet with [ph] beat Starting $XXX across quarter more second versus the guidance primarily operating the is Viking. due
the was prior due expense approximately to costs, and This the costs to rig million drilling from maintenance repair transfer mobilization lower the and plan, conference into contractor $XX expected rig our guidance, third active reactivation call transaction drilling availability million. removal an with Excluding is due than quarter. an certain of mainly contract to $XXX of of the deferral costs a and the
million changes which $X higher Rowan expense to quarter $XXX Second was of guidance, million, fair the depreciation Legacy assets. was than to primarily value due
Legacy change Rowan measurement estimates the we finalize one required As are reminder, the value fair those a the preliminary of and may assets during accounting period. liabilities and as from estimates year
this costs, Excluding our is disciplined general and second lower administrative $XX due $X million quarter than million, transaction expenses, to guidance cost management.
which we During costs, press $XX related presented share million the in incurred the second approximately the quarter, of merger adjusted excluded for the per release. are and EBITDA loss transaction adjusted
in net and transaction purchase quarter, of $XXX and $XXX related income offset bargain Other second partially $X million and million merger expense gain of related was $XXX million costs. by driven to interest the fees services by the transition million other
in million, call. expense conference line our was with $XX we tax guidance prior Finally, provided on the
drop contract are expecting loss in outlook, and quarter XXXX Now roll for utilization. to maintenance, due including to and moving between repair off contracted of we a see EBITDA contracts time mobilizations seasonal variety our some factors gaps third in to and a meaningful
will We the expect total primarily contract loss be approximately across quarter million the to sequential $XXX revenues decline roll floater due fleet. with
lower substantially mentioned that revenue which earlier, Tom in XXXX. XXXX for in the of analyst estimates and EBITDA the near second-half side full-year result than are see uncertainty market the As may for more floater term and we sell
million approximately ARO from quarter million Drilling million Jackup and reimbursable lease to in $XXX million as $XXX $XX including $XX segment breaks revenue million to ARO two revenues U.S. segment, managed from $XX other our Drilling, revenue million from million revenue down third floater $XXX related of rigs Gulf. our of Our and the $XX outlook $XXX of to million
operating commenced The quarter Excluding with the DS-XX expense to transaction mostly during new the quarter from will along which quarter and million. operating costs, fleet. ENSCO their Rowan a sequential contractor third Norway due operations partial Norway a we own our of operating be Ralph contract is change a for fourth of to remaining DS-X location Mobilization of from alliance, commence XXX its to quarter to drilling which is portion ENSCO and due higher Rowan contracts Rowan the costs Norway Turkey due drill anticipate costs in that full contribution and third DS-X, approximately second increase Coffman, Legacy with $XXX to quarter quarter quarter. the of costs
revenue. from not off While contract in reduction operating costs in number we in be to a have roll these will which reductions quarter, third excluding take the Therefore in the correspond we anticipate see to days. to when stack does drilling quarter levels to are warm gradual $XXX were of second expense would costs immediate state drilling reducing that XX XX cost floaters decline fourth transaction levels we floater contract expense can contract quarter expected with The million. expect benefit the below of total
depreciation along approximately quarter expect active expense Brands, increase Earnest to XXX, with for full of We and Legacy $XXX a assets ENSCO joining depreciation million Rowan due will fleet. to the Best Dees
G&A to million expected of is approximately $XX to to the costs transaction synergies. decline expense excluding due realization
to discrete Finally, million be debt $XX quarter tax tender. extinguishment the will provision we our estimate debt recently expense following inclusive gain third completed of the tax on related approximately
venture the to XXXX between total In Saudi EBITDA Drilling offshore Drilling. like range Valaris towards and million upper move drilling of the $XXX half Aramco, which Drilling prior $XXX a and be the non-consolidated is will ARO now for full-year. Aramco. expect I'd for to and ARO XX:XX we joint rigs of million operates guidance owns ARO Saudi
include merger date the SEC from Note activity. forward Drilling tables and press in that release filing results not will from pre-merger ARO our present
XX, Drilling revenue to seven in shareholder interest Valaris bear that cash and five at backlog. seven contracted XX-year X%. own As exchange of assets Drilling substantial ARO plus ARO contributed for assets of LIBOR with these notes June
on of On added Drilling's either in to cash. will principal loan basis, directors the ARO shareholder an the decide the interest notes annual board paid whether or balance
As XXth, notes balance these of approximately June the million. is of $XXX shareholder
opportunity that and ARO which a no the is Drilling a financing external given has meaningful rig backlog. As future contracted debt reminder, revenue has presents company's fleet fully
$XX out approximately of payment costs million. the outlook final months approximately team, excluding and XXXX Ensco to the at expenditures through capital $XXX million the for enhancements fully and capital six earnings G of remaining expected the upgrades year, This of to drill second-half includes milestone portion the the required our including upgrades and of Moving best be fees on expenditure costs are addition transaction of schedule for brands minor customer [indiscernible]. these are reimbursable. rig the on and A floor automated a Rowan upgrades
We jackup primarily newbuild delivered million $XX anticipate also for of rigs. CapEx recently and
are these of which its ENSCO related third of the XXX costs expected in is during commence main quarter. mobilization startup contract North Most and to Sea the to the
drillships for remaining DS-XX only have demand. an commitments days are uncertain drillships Our ENSCO for many our of DS-XX. outlook floater on near-term and might newbuild uncontracted delivered We with rig coupled
shipyard rigs. the in are delivery delivery do rigs. discussions delay to these of with delay the We not We of
finance X% maturity have The the shipyard milestone to rig. at with for accrued would the We final per note a year XXXX. bear option year-end interest with million interest promissory the payments note promissory through at totaling $XXX plus the
maturities focus cost our position, financial of financial and capital on now been reducing priorities Turning the of our total with management a closing and debt main has since to managing merger one debt.
Subsequently, $XXX a million $XXX discount total and put we actions in a carried $XX this tender holders and downgrade XX%. principal by of and reduced and both pre-tax interest Moody's limited capital the repurchasing by first the launched Rowan which that double within with of change XXXX management annual S&P granting completed and debt mechanism by contained drill XX million a payments trigger event after a Legacy provision recently the that debt period. a closing, in debt savings million our option changing days both time of were senior control an average of the notes During realizing
of $X.X the which $X.X results the XXXX approximately million including of debt pro-forma short of steps totaled approximately billion tender, down Adjusted $XXX XX facility to term as XXXX. million revolving investments cash billion a $X.X and October credit and June from liquidity to for September
senior draw our our we and repaying source $XXX that have consequence a the To tender, equivalents current this on million in notes will revolving we advance as conditions. of cash a the debt market mature of drawn reduced and we that to need significantly of point, available we the on credit funding XXXX have anticipate facility As revolver today. under our
on of market, protracted the the outlook our facility important as an greater deepwater credit navigate we available the floater revolving liquidity term as Given we uncertainty near source for recovery. view
these capital book The credit of represent key owning revolving from book ratio marketing total entities covenants total maintaining a the in rig that X.XXX from net subsidiaries debt of below fleet at providing XX% our size value of net guarantees facility. having and are such our to least value facility of coverage certain the least rig XX% at as our is
is unsecured on covenants this cash has Importantly, operating revolver and no based flows.
capital through the unsecured debt. maintain flexibility to guaranteed raise additional also asset and the issuance of sales We
In will financial fleet floaters capital look the approximately as believe world navigate is research. modern this important rigs debt next comprised steps, that to available capital billion gross flexibility our fleet additional and increase note and jack-ups terms with is provide we raise we $XX offshore the and of primarily access value address in our of to of to our have with according to It the capital third-party cyclicality. an that profile opportunistically should drilling market largest and structure maturities. which asset unsecured us We we liquidity to near-term of unencumbered
I'll an update synergies transaction Finally, cost. and provide on
approximately million we evaluating with synergies earlier, As achieve to achieve annual synergies additional are this Tom $XXX the potential and beyond opportunities alluded track target. on to our to expense are we
million closing result and are rate expected capitalized these full these expect more year-end at are $XXX in synergies reach of synergies year synergies of XX% approximately than In of to to we $X.X of run value, XXXX. total, capture billion one to expected within
expense June $XX which G&A forward. rate million drilling had of reached XX, As contract will benefit and we synergies run going of
Consistent will with prior with costs total $XXX fees employee transaction closing by incurred we our severance legal related the prior the associated our costs, These with and recent re-branding. approximately transaction Legacy cost guidance, associated merger costs. to related cash and costs as include those anticipate estimates other integration million professional Rowan costs
XX, As expected in certain cash total results. $XX have $XXX as of of the and merger this in a quarter incurred second-half majority remaining as charges such the incurred charges of incurred we with transaction costs of incurred June lease the million approximately they to be million our $X also non-cash million the impairment of year second approximately result of the
We'll continue shareholders. we our effectively conference that In execute structure to providing maximize priorities on proactively I capital for calls. to our in continue strategic achievement closing, most our updates synergy to manage reiterate want and transaction costs will and value subsequent
so to managing continue company the evaluate base synergies achieve best targeted us to actively focused we options will these cost We for that our position help remain the delivering objectives, our and and future. on
to over Now, I'll back turn call the Nick.
