Form 8-K DIAMOND OFFSHORE DRILLIN For: Feb 08

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report: (Date of earliest event reported): February 8, 2016

 

 

Diamond Offshore Drilling, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware		1-13926		76-0321760
(State or other jurisdiction of incorporation)		(Commission file number)		(I.R.S. Employer Identification No.)

15415 Katy Freeway

Houston, Texas 77094

(Address of principal executive offices, including Zip Code)

(281) 492-5300

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Item 2.02. Results of Operations and Financial Condition

On February 8, 2016, Diamond Offshore Drilling, Inc. (the “Company”) issued a press release announcing its financial results for the fiscal quarter and year ended December 31, 2015. A copy of the press release is furnished herewith as Exhibit 99.1.

Item 7.01. Regulation FD Disclosure

A conference call to discuss the Company’s earnings results has been scheduled for 7:30 a.m. Central Time on February 8, 2016. The information for accessing the conference call is included in the press release.

The Company hereby incorporates by reference into this Item 7.01 the summary report of the status, as of February 8, 2016, of the Company’s offshore drilling rigs attached as Exhibit 99.2.

The information contained in Items 2.02 and 7.01 and Exhibits 99.1 and 99.2 to this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any previous or future registration statement filed under the Securities Act of 1933, as amended (the “Securities Act”), unless specifically identified therein as being incorporated by reference.

Statements in the press release furnished as Exhibit 99.1 to this report, statements in the summary report furnished as Exhibit 99.2 to this report and statements made during the conference call described in this report that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such statements include, but are not limited to, statements concerning drilling rig deliveries, operations and timing; contract effectiveness, effective dates and estimated duration; plans regarding retirement and scrapping of drilling rigs; future impairments; future dividends; expectations of future backlog, revenue, operating costs and performance; future liquidity, financial condition, market conditions, commodity prices and strategic opportunities; revenue expected to result from backlog; future credit ratings; future dayrates, future status, start and end dates and future contracts and availability; future contract opportunities and termination rights; contract noncompliance by customers and other third parties; letters of intent; utilization, surveys, downtime and other aspects of the Company’s drilling rigs; customer discussions and outcomes thereof and the impact of these and related events on the Company’s operations and revenues; rigs being upgraded or to be upgraded and rigs under construction; future impact of regulations; and other statements that are not of historical fact. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those currently anticipated or expected by management of the Company. A discussion of the risk factors and other considerations that could materially impact these matters as well as the Company’s overall business and financial performance can be found in the Company’s reports filed with the Securities and Exchange Commission, and readers of this report are urged to review those reports carefully when considering these forward-looking statements. These risk factors include, among others, risks associated with worldwide demand for drilling services, level of activity in the oil and gas industry, renewing or replacing expired or terminated contracts, contract cancellations and terminations, maintenance and realization of backlog, competition and industry fleet capacity,

 

2

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impairments and retirements, declaration of dividends, operating risks, changes in tax laws and rates, regulatory initiatives and compliance with governmental regulations, construction of new builds, casualty losses and various other factors, many of which are beyond the Company’s control. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of such statement, and the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

Item 9.01. Financial Statements and Exhibits

 

(a)	Financial statements of businesses acquired.

Not applicable.

 

(b)	Pro forma financial information.

Not applicable.

 

(c)	Shell company transactions.

Not applicable.

 

(d)

Exhibits.

 

Exhibit number		Description
99.1		Press Release dated February 8, 2016
99.2		Rig Status Report as of February 8, 2016

 

3

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: February 8, 2016

 

4

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EXHIBIT INDEX

 

Exhibit Number		Description
99.1		Press Release dated February 8, 2016
99.2		Rig Status Report as of February 8, 2016

 

5

Exhibit 99.1

 

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

Diamond Offshore Announces Fourth Quarter 2015 Results

 

•

Reports loss of $1.79 per share

 

•

Records after-tax impairment charge of $2.68 per share

 

•

Discontinues quarterly cash dividend

HOUSTON, February 8, 2016 — Diamond Offshore Drilling, Inc. (NYSE: DO) today reported a fourth quarter 2015 net loss of $245 million, a loss of $1.79 per diluted share, compared to net income of $99 million, or $0.72 per diluted share, in the fourth quarter of 2014. Results for the quarter included a non-cash charge of $499 million associated with the impairment of nine drilling units, which resulted in an after-tax charge of $2.68 per share. Revenues in the fourth quarter of 2015 were $556 million, compared to revenues of $675 million in the fourth quarter of 2014.

For full year 2015, Diamond Offshore reported a net loss of $274 million or a loss of $2.00 per diluted share, compared to net income of $387 million, or $2.81 per diluted share, in 2014. Results for the full year included non-cash charges of $860 million associated with the impairment of 17 drilling units, which resulted in an after-tax charge of $5.05 per share. Revenues for full year 2015 were $2.419 billion, compared to $2.815 billion in 2014.

Diamond Offshore also announced that its Board of Directors has discontinued the quarterly cash dividend of $0.125 per share, which will preserve an additional $69 million on an annual basis.

“Given the severe and prolonged downturn in industry fundamentals, we believe it is prudent to bolster our already strong balance sheet,” said Marc Edwards, President and Chief Executive Officer. “By conserving additional cash, we will have increased flexibility to manage the company through difficult market conditions and position ourselves for the eventual recovery in offshore drilling.”

CONFERENCE CALL

A conference call to discuss Diamond Offshore’s earnings results has been scheduled for 7:30 a.m. CST today. A live webcast of the call will be available online on the Company’s website, www.diamondoffshore.com. Those interested in participating in the question and answer session should dial 800-247-9979 or 973-321-1100, for international callers. The conference ID number is 26416613. An online replay will also be available on www.diamondoffshore.com following the call.

ABOUT DIAMOND OFFSHORE

Diamond Offshore is a leader in offshore drilling, providing contract drilling services to the energy industry around the globe. Additional information and access to the Company’s SEC filings are available at www.diamondoffshore.com. Diamond Offshore is owned 53% by Loews Corporation (NYSE: L).

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FORWARD-LOOKING STATEMENTS

Statements contained in this press release or made during the above conference call that are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Company’s overall business and financial performance can be found in the Company’s reports filed with the Securities and Exchange Commission, and readers of this press release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company’s website at www.diamondoffshore.com. These risk factors include, among others, risks associated with worldwide demand for drilling services, level of activity in the oil and gas industry, renewing or replacing expired or terminated contracts, contract cancellations and terminations, maintenance and realization of backlog, competition and industry fleet capacity, impairments and retirements, declaration of dividends, operating risks, changes in tax laws and rates, regulatory initiatives and compliance with governmental regulations, construction of new builds, casualty losses, and various other factors, many of which are beyond the Company’s control. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

# # # #

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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

 

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2015				2014				2015				2014
Revenues:
Contract drilling		$	544,129			$	674,376			$	2,360,184			$	2,737,126
Revenues related to reimbursable expenses			11,434				945				59,209				77,545
Total revenues			555,563				675,321				2,419,393				2,814,671
Operating expenses:
Contract drilling, excluding depreciation			256,393				358,655				1,227,864				1,523,623
Reimbursable expenses			11,146				698				58,050				76,091
Depreciation			114,448				131,712				493,162				456,483
General and administrative			15,574				19,923				66,462				81,832
Impairment of assets			499,367				—				860,441				109,462
Restructuring and separation costs			1,043				—				9,778				—
(Gain) loss on disposition of assets			(2,309	)			2,230				(2,290	)			(5,382	)
Total operating expenses			895,662				513,218				2,713,467				2,242,109
Operating (loss) income			(340,099	)			162,103				(294,074	)			572,562
Other income (expense):
Interest income			1,526				157				3,322				801
Interest expense			(23,134	)			(15,997	)			(93,934	)			(62,053	)
Foreign currency transaction gain			1,511				6,923				2,465				3,199
Other, net			171				84				873				682
(Loss) income before income tax (expense) benefit			(360,025	)			153,270				(381,348	)			515,191
Income tax benefit (expense)			114,641				(54,427	)			107,063				(128,180	)
Net (loss) income		$	(245,384	)		$	98,843			$	(274,285	)		$	387,011
(Loss) income per share:
Basic		$	(1.79	)		$	0.72			$	(2.00	)		$	2.82
Diluted		$	(1.79	)		$	0.72			$	(2.00	)		$	2.81
Weighted average shares outstanding:
Shares of common stock			137,159				137,148				137,157				137,473
Dilutive potential shares of common stock			—				59				—				50
Total weighted average shares outstanding			137,159				137,207				137,157				137,523

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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS

(Unaudited)

(In thousands)

 

		Three Months Ended
		December 31,				September 30,				December 31,
		2015				2015				2014
REVENUES
Floaters:
Ultra-Deepwater		$	395,798			$	376,195			$	285,991
Deepwater			92,125				136,668				115,777
Mid-Water			44,766				69,500				231,933
Total Floaters			532,689				582,363				633,701
Jack-ups			11,440				16,673				40,675
Total Contract Drilling Revenue		$	544,129			$	599,036			$	674,376
Revenues Related to Reimbursable Expenses		$	11,434			$	10,706			$	945
CONTRACT DRILLING EXPENSE
Floaters:
Ultra-Deepwater		$	147,991			$	156,107			$	133,103
Deepwater			60,010				67,630				66,093
Mid-Water			28,767				35,784				119,763
Total Floaters			236,768				259,521				318,959
Jack-ups			10,749				12,507				25,268
Other			8,876				5,916				14,428
Total Contract Drilling Expense		$	256,393			$	277,944			$	358,655
Reimbursable Expenses		$	11,146			$	10,476			$	698
OPERATING (LOSS) INCOME
Floaters:
Ultra-Deepwater		$	247,807			$	220,088			$	152,888
Deepwater			32,115				69,038				49,684
Mid-Water			15,999				33,716				112,170
Total Floaters			295,921				322,842				314,742
Jack-ups			691				4,166				15,407
Other			(8,876	)			(5,916	)			(14,428	)
Reimbursable expenses, net			288				230				247
Depreciation			(114,448	)			(118,086	)			(131,712	)
General and administrative expense			(15,574	)			(16,888	)			(19,923	)
Impairment of assets			(499,367	)			(2,546	)			—
Restructuring and separation costs			(1,043	)			(1,574	)			—
Gain (loss) on disposition of assets			2,309				(794	)			(2,230	)
Total Operating (Loss) Income		$	(340,099	)		$	181,434			$	162,103

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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 

		December 31,				December 31,
		2015				2014
ASSETS
Current assets:
Cash and cash equivalents		$	119,028			$	233,623
Marketable securities			11,518				16,033
Accounts receivable, net of allowance for bad debts			405,370				463,862
Prepaid expenses and other current assets			119,479				185,541
Assets held for sale			14,200				—
			669,595				899,059
Drilling and other property and equipment, net of accumulated depreciation			6,378,814				6,945,953
Other assets			116,480				176,277
Total assets		$	7,164,889			$	8,021,289
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt		$	—			$	249,962
Short-term borrowings			286,589				—
Other current liabilities			339,134				606,684
Long-term debt			1,994,773				1,994,526
Deferred tax liability			276,529				530,394
Other liabilities			155,094				188,160
Stockholders’ equity			4,112,770				4,451,563
Total liabilities and stockholders’ equity		$	7,164,889			$	8,021,289

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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

AVERAGE DAYRATES AND UTILIZATION

(Dayrate in thousands)

 

		Fourth Quarter 2015												Third Quarter 2015												Fourth Quarter 2014
		Average Dayrate (1)				Utilization (2)				Operational Efficiency (3)				Average Dayrate (1)				Utilization (2)				Operational Efficiency (3)				Average Dayrate (1)				Utilization (2)				Operational Efficiency (3)
Ultra-Deepwater Floaters		$	531				70	%			95.5	%		$	479				71	%			96.8	%		$	493				66	%			90.2	%
Deepwater Floaters		$	337				42	%			97.7	%		$	361				59	%			90.3	%		$	431				48	%			97.3	%
Mid-Water Floaters		$	249				24	%			97.8	%		$	289				31	%			97.5	%		$	270				55	%			96.8	%
Jack-ups		$	124				17	%			100	%		$	97				31	%			99.8	%		$	96				77	%			99.5	%
Fleet Total											96.6	%											95.5	%											95.5	%

 

(1)

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

(2)

Utilization is calculated as the ratio of total revenue-earning days divided by the total calendar days in the period for all specified rigs in our fleet (including cold-stacked rigs, but excluding rigs under construction). As of December 31, 2015, our cold-stacked rigs included one ultra-deepwater semisubmersible, two deepwater semisubmersibles, four mid-water semisubmersibles and five jack-up rigs.

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

Exhibit 99.2

 

		Diamond Offshore Drilling, Inc. Rig Status Report February 8, 2016 Updated information noted in bold print

RECENT COMMITMENTS (See Body of Report For Contract Details)

Ocean Scepter: 1-year extension

 

Water1 Depth

Year 3

Contract Dayrate

Estimated

Estimated

Planned Downtime 4 (For Periods Lasting >10 days)

Rig Name

(feet)

Type2

Built

Location

Operator

(USD)

Start Date

End Date

Status

1Q16 E

2Q16 E

3Q16 E

4Q16 E

Comments

Totals:

188

84

42

60

Gulf of Mexico - U.S.

Ocean BlackHawk

12,000

DS 15K DP

2014

US GOM

Anadarko

495,000

late May 2014

mid Jun 2019

5-year term + unpriced option

Ocean BlackHornet

12,000

DS 15K DP

2014

US GOM

Anadarko

495,000

mid Apr 2015

mid Apr 2020

5-year term + unpriced option

Ocean BlackRhino (note 5)

12,000

DS 15K DP

2014

US GOM

Murphy

550,000

late May 2015

mid Feb 2016

265-day term

US GOM

—

—

mid Feb 2016

early Dec 2016

Contract prep; standby;customer acceptance

45

15

30

60

US GOM

Hess

400,000

early Dec 2016

early Dec 2019

3-year term

Ocean BlackLion

12,000

DS 15K DP

2015

US GOM

Hess

400,000

mid Dec 2015

mid Dec 2019

4-year term

37

Customer acceptance testing

Gulf of Mexico - Mexico

Ocean Scepter

350

JU 15K IC

2008

Mexico

Pemex

115,000

early Jan 2015

early Mar 2017

Term + 1-year extension

12

Ocean Ambassador

1,100

SS

1975

Mexico

Pemex

115,000

early May 2015

early Mar 2016

Remainder of 730-day term at revised rate

North Sea / Mediterranean / W. Africa

Ocean Guardian

1,500

SS 15K

1985

UK

Dana

220,000

early Mar 2016

early Mar 2017

1-year term

Ocean Patriot

3,000

SS 15K

1983

UK

Shell

400,511

late Oct 2014

late Oct 2017

3-year term

Ocean Valiant

5,500

SS 15K

1988

UK

Premier Oil

197,500

late Dec 2015

late Apr 2016

First optional well + 3 x 1-well options

Ocean Endeavor

10,000

SS 15K

2007

Romania, Italy

—

—

late Dec 2015

late May 2016

Demobe; reassembly

91

49

Australasia

Ocean Apex

6,000

SS 15K

2014

Australia

Woodside Energy

285,000

early May 2016

late Oct 2017

18-month term, convertible to 24-month @ $270k/day + 1 x 12-month + 2 x 6- month unpriced options

20

Mobe to Australia

Ocean Rover

8,000

SS 15K

2003

Malaysia

Murphy

465,000

early Mar 2014

early Mar 2016

2-year term

Ocean Monarch

10,000

SS 15K

2008

Australia

Quadrant

410,000

mid Jul 2015

early Oct 2016

15 months of 18-month term + 1 year option

Australia

Quadrant

350,000

early Oct 2016

early Jan 2017

3 months at reduced rate on 18-month term

South America

Ocean Victory

5,500

SS 15K

1997

Trinidad

BP

398,000

early May 2015

mid May 2017

2-year term + 1-year unpriced option

Ocean Courage

10,000

SS 15K DP

2009

Brazil

Petrobras

455,000

late Oct 2015

late Feb 2018

3-year extension

Brazil

Petrobras

380,000

late Feb 2018

late Jul 2020

Term extension

Ocean Valor

10,000

SS 15K DP

2009

Brazil

Petrobras

455,000

mid Oct 2015

mid Oct 2018

3-year extension

 

Please refer to accompanying disclaimer as well as Diamond Offshore’s 10-K and 10-Q filings with the SEC.		Page 1 of 3

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		Water1 Depth						Year 3						Contract Dayrate		Estimated		Estimated				Planned Downtime 4 (For Periods Lasting >10 days)
Rig Name		(feet)				Type2		Built		Location		Operator		(USD)		Start Date		End Date		Status		1Q16 E				2Q16 E		3Q16 E		4Q16 E		Comments
UNDER CONSTRUCTION
Ocean GreatWhite			10,000			SS 15K DP		2016		S. Korea		—		—		Q3 2013		H2 2016		Hyundai shipyard; commissioning; mobe; acceptance
										Australia		BP		585,000*		H2 2016		H2 2019		3-year term + 2 x 1-
																				year priced options (@ 585,000 + escalations); *Dayrate to increase for customer-requested equipment additions
COLD STACKED
Ocean Summit			300			JU IC		1972		US GOM		—		—		—		—		Stacked
Ocean King			300			JU IC		1973		US GOM		—		—		—		—		Stacked
Ocean Nugget			300			JU IC		1976		US GOM		—		—		—		—		Stacked
Ocean Spur			300			JU IC		1981		Malaysia		—		—		—		—		Stacked
Ocean Titan			350			JU 15K IC		1974		US GOM		—		—		—		—		Stacked
Ocean Nomad			1,200			SS		1975		UK		—		—		—		—		Stacked
Ocean Princess			1,500			SS 15K		1975		UK		—		—		—		—		Stacked
Ocean Vanguard			1,500			SS 15K		1982		UK		—		—		—		—		Stacked
Ocean General			3,000			SS		1976		Malaysia		—		—		—		—		Stacked
Ocean Quest			4,000			SS 15K		1973		Malaysia		—		—		—		—		Stacked
Ocean America			5,500			SS 15K		1988		Malaysia		—		—		—		—		Stacked
Ocean Alliance			5,250			SS 15K DP		1988		Brazil / US GOM		—		—		—		—		Stacked
Ocean Star			5,500			SS 15K		1997		US GOM		—		—		—		—		Stacked
Ocean Onyx			6,000			SS 15K		2014		US GOM		—		—		—		—		Stacked			15
Ocean Baroness			8,000			SS 15K		2002		US GOM		—		—		—		—		Stacked
Ocean Confidence			10,000			SS 15K DP		2001		Canary Islands		—		—		—		—		Stacked

NOTES

(1.) Water Depth refers to the rig’s rated operating water depth capability. Often, rigs are capable of drilling or have drilled in greater water depths.

(2.) Rig Type and capabilities:

JU=Jack-up; SS=Semisubmersible; DS=Drillship; 15K=15,000 PSI Well-Control System; DP=Dynamically Positioned Rig; IC=Independent-Leg Cantilevered Rig.

(3.) Year Built represents when rig was (or is expected to be) built and originally placed in service or year redelivered with significant enhancements that enabled the rig to be classified within a different floater category than when originally constructed.

(4.) Planned Downtime only includes downtime periods that as of this report date are, or have been, planned and estimable and do not necessarily reflect actual downtime experienced. Additional downtime may be experienced in the form of possible mobes for new jobs not yet contracted, possible acceptance testing at new jobs, and unplanned maintenance and repairs. Survey start times may also be accelerated or delayed for various reasons.

(5.) Murphy exercised its option to revert term on the Ocean BlackRhino to its previous 265-day duration and paid a lump sum “payback fee“in 4Q 2015 based on a rate of $550,000 per day.

General Notes

Average Utilization: Assume rates of 92% for DP units, 95% for conventionally moored rigs, and 97% for jack-ups. Rig utilization rates can be adversely impacted by additional downtime due to unscheduled repairs and maintenance, and other factors.

Options should be assumed to be unpriced unless otherwise indicated.

Dayrates exclude amortized revenue related to amounts earned for certain activities, such as mobe, demobe, contract preparation, etc.

Survey Costs: During surveys, normal operating expense will be incurred, plus additional costs.

US GOM=U.S. Gulf of Mexico

 

Please refer to accompanying disclaimer as well as Diamond Offshore’s 10-K and 10-Q filings with the SEC.		Page 2 of 3

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		Diamond Offshore Drilling, Inc. Rig Status Report

Forward-Looking Statements: This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain or be identified by the words “expect,” “intend,” “plan,” “predict,” “anticipate,” “estimate,” believe,” “should,” “could,” “may,” “might,” “will,” “will be,” “will continue,” “will likely result,” “project,” “budget,” “forecast,” and similar expressions. Statements by the Company in the rig status report that contain forward-looking statements include, but are not limited to, statements regarding the current term, future dayrates, future status, start and end dates, and comments concerning future contracts and availability, future contract opportunites and termination rights, letters of intent, utilization, surveys, downtime and other aspects of the Company’s drilling rigs, as well as statements concerning customer discussions and outcomes thereof, the impact of these and related events on our operations and revenues, rigs being upgraded or to be upgraded and rigs under construction. Such statements are inherently subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or projected. A discussion of the risk factors that could impact these areas and the Company’s overall business and financial performance can be found in the Company’s reports and other documents filed with the Securities and Exchange Commission. These factors include, among others, general economic and business conditions, contract cancellations, customer bankruptcy, operating risks, casualty losses, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental regulations, customer preferences and various other matters, many of which are beyond the Company’s control. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the rig status report, and the Company undertakes no obligation to publicly update or revise any forward-looking statement.

 

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