Form 8-K DIAMOND OFFSHORE DRILLIN For: Feb 09

�

�

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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�9, 2015

�

�

Diamond Offshore Drilling, Inc.

(Exact Name of Registrant as Specified in Charter)

�

�

�

Delaware	�	1-13926	�	76-0321760
(State or Other Jurisdiction of Incorporation)	�	(Commission File Number)	�	(IRS Employer Identification No.)

15415 Katy Freeway

Houston, Texas 77094

(Address of Principal Executive Offices and Zip Code)

Registrant�s telephone number, including area code: (281)�492-5300

Not Applicable

(Former name or former address, if changed since last report)

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�

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

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

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

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

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�	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�9, 2015, Diamond Offshore Drilling, Inc. (the �Company�) issued a press release announcing its financial results for the fiscal quarter and year ended December�31, 2014. A copy of such 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�9, 2015. 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�9, 2015, 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 and 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 contain �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 and effective dates; 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; current term, future dayrates, future status, start and end dates and comments concerning 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; statements concerning 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; 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

�

2

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statements. These risk factors include, among others, risks associated with general economic and business conditions, contract cancellations and terminations, customer or vendor bankruptcy, impairments, operating risks, litigation, casualty losses, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, dividend policy, renewing or replacing expired or terminated contracts, maintenance and realization of backlog, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental regulations, customer preferences, timing of construction of new builds, collection of receivables and various other matters, 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. 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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Item�9.01.

Financial Statements and Exhibits

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�

(d)

Exhibits.

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Exhibit number	��	Description
99.1	��	Press Release dated February 9, 2015
99.2	��	Rig Status Report as of February 9, 2015

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3

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SIGNATURES

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

�

Dated: February�9, 2015

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4

Exhibit 99.1

�

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

Diamond Offshore Announces Fourth Quarter 2014 Results

�

�

�

Confirms Delivery of Drillships�Ocean BlackHornet and Ocean BlackRhino

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�

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Confirms Delivery of Semisubmersible Rig�Ocean Apex

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Declares Regular Cash Dividend of $0.125 per Share; Does Not Declare Special Dividend

HOUSTON, February�9, 2015 � Diamond Offshore Drilling, Inc. (NYSE: DO) today reported fourth quarter 2014 net income of $99 million, or $0.72 per diluted share, compared to net income of $93 million, or $0.67 per diluted share, in the fourth quarter of 2013. Revenues in the fourth quarter of 2014 were $675 million, compared to revenues of $726 million in the fourth quarter of 2013.

For full year 2014, Diamond Offshore reported net income of $387 million, or $2.81 per diluted share, compared to net income of $549 million, or $3.95 per diluted share, in 2013. Full year 2014 results included a $0.95 per share non-cash impairment charge related to the retirement and scrapping of six mid-water semisubmersible rigs. Results for the fourth quarter of 2013 and full year 2013 were negatively impacted by $0.41 per share to reserve for an uncertain tax position, partially offset by a gain of $0.12 per share related to a settlement agreement with a customer. Revenues for full year 2014 were $2.815 billion, compared to $2.920 billion in 2013.

Diamond Offshore also announced today that the Company has declared a regular quarterly dividend of $0.125 per share, payable March�2, 2015 to shareholders of record on February�20, 2015. Additionally, the Board of Directors of the Company, after careful consideration, has chosen not to declare a special dividend.

�Since Diamond Offshore began paying a special dividend to shareholders in January of 2006, we have paid total dividends of over $41 per share, or approximately $5.7 billion,� said Marc Edwards, President and Chief Executive Officer. �Paying substantial dividends while simultaneously adding new-build capacity to our fleet have been key aspects of our capital allocation strategy. We have achieved these aims while maintaining a strong balance sheet and the highest credit rating among our industry peers.�

�Given the significant downturn in industry fundamentals, we believe it is prudent to retain cash so that the Company is in a stronger position to take advantage of opportunities that may materialize in a distressed market,� added Mr.�Edwards.

�In 2014, we took delivery of three new-build drillships and two deepwater semis, and in the first quarters of 2015 and 2016, respectively, we expect to take delivery of our fourth new-build drillship and a new-build harsh environment semisubmersible. All of our new-build units have attractive term contracts in place.�

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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 65678867. 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 with a total fleet of 38 offshore drilling rigs, including two rigs under construction. Diamond Offshore�s fleet consists of 27 semisubmersibles, one of which is under construction, five dynamically positioned drillships, one of which is under construction, and six jack-ups. Additional information about the Company and access to the Company�s SEC filings are available at www.diamondoffshore.com. Diamond Offshore is owned 52% by Loews Corporation (NYSE: L).

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. Such statements include, but are not limited to, statements concerning drilling rig deliveries, operations and timing; contract effectiveness and effective dates; plans regarding retirement and scrapping of drilling rigs; expectations of future backlog, revenue, operating costs and performance; future liquidity, financial condition, market conditions and strategic opportunities; revenue expected to result from backlog; declaration and payment of dividends; future credit ratings; 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 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 general economic and business conditions, contract cancellations, customer or vendor bankruptcy, operations, litigation, 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 and sanction initiatives and compliance with governmental regulations, customer preferences, obtaining necessary partner and third party approvals, timing of construction of new builds, collection of receivables, and various other matters, 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,

�

�

��

2014

�

�

2013

�

�

2014

�

�

2013

�

Revenues:

��

�

�

�

Contract drilling

��

$

674,376

��

�

$

707,972

��

�

$

2,737,126

��

�

$

2,843,584

��

Revenues related to reimbursable expenses

��

�

945

��

�

�

18,525

��

�

�

77,545

��

�

�

76,837

��

��

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Total revenues

��

�

675,321

��

�

�

726,497

��

�

�

2,814,671

��

�

�

2,920,421

��

��

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Operating expenses:

��

�

�

�

Contract drilling, excluding depreciation

��

�

358,655

��

�

�

408,907

��

�

�

1,523,623

��

�

�

1,572,525

��

Reimbursable expenses

��

�

698

��

�

�

17,969

��

�

�

76,091

��

�

�

74,967

��

Depreciation

��

�

131,712

��

�

�

96,985

��

�

�

456,483

��

�

�

388,092

��

General and administrative

��

�

19,923

��

�

�

16,298

��

�

�

81,832

��

�

�

64,788

��

Bad debt (recovery) expense

��

�

���

��

�

�

(50

)�

�

�

���

��

�

�

22,513

��

Loss (gain) on disposition of assets

��

�

2,230

��

�

�

(1,281

)�

�

�

(5,382

)�

�

�

(4,070

)�

Impairment of assets

��

�

���

��

�

�

���

��

�

�

109,462

��

�

�

���

��

��

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Total operating expenses

��

�

513,218

��

�

�

538,828

��

�

�

2,242,109

��

�

�

2,118,815

��

��

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Operating income

��

�

162,103

��

�

�

187,669

��

�

�

572,562

��

�

�

801,606

��

Other income (expense):

��

�

�

�

Interest income

��

�

157

��

�

�

(323

)�

�

�

801

��

�

�

701

��

Interest expense

��

�

(15,997

)�

�

�

(7,130

)�

�

�

(62,053

)�

�

�

(24,843

)�

Foreign currency transaction gain (loss)

��

�

6,923

��

�

�

(966

)�

�

�

3,199

��

�

�

(4,915

)�

Other, net

��

�

84

��

�

�

945

��

�

�

682

��

�

�

1,691

��

��

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Income before income tax expense

��

�

153,270

��

�

�

180,195

��

�

�

515,191

��

�

�

774,240

��

Income tax expense

��

�

(54,427

)�

�

�

(87,580

)�

�

�

(128,180

)�

�

�

(225,554

)�

��

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Net Income

��

$

98,843

��

�

$

92,615

��

�

$

387,011

��

�

$

548,686

��

��

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Income per share:

��

�

�

�

Basic

��

$

0.72

��

�

$

0.67

��

�

$

2.82

��

�

$

3.95

��

��

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Diluted

��

$

0.72

��

�

$

0.67

��

�

$

2.81

��

�

$

3.95

��

��

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Weighted average shares outstanding:

��

�

�

�

Shares of common stock

��

�

137,148

��

�

�

139,035

��

�

�

137,473

��

�

�

139,035

��

Dilutive potential shares of common stock

��

�

59

��

�

�

12

��

�

�

50

��

�

�

29

��

��

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Total weighted average shares outstanding

��

�

137,207

��

�

�

139,047

��

�

�

137,523

��

�

�

139,064

��

��

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS

(Unaudited)

(In thousands)

�

�

��

Three Months Ended

�

�

��

Dec 31,

�

�

Sep 30,

�

�

Dec 31,

�

�

��

2014

�

�

2014

�

�

2013

�

REVENUES

��

�

�

Floaters:

��

�

�

Ultra-Deepwater

��

$

285,991

��

�

$

313,124

��

�

$

236,842

��

Deepwater

��

�

115,777

��

�

�

111,372

��

�

�

121,222

��

Mid-water

��

�

231,933

��

�

�

258,028

��

�

�

306,485

��

��

�

�

�

�

�

�

�

�

�

�

�

Total Floaters

�

633,701

��

�

682,524

��

�

664,549

��

Jack-ups

�

40,675

��

�

45,364

��

�

43,423

��

��

�

�

�

�

�

�

�

�

�

�

�

Total Contract Drilling Revenue

$

674,376

��

$

727,888

��

$

707,972

��

��

�

�

�

�

�

�

�

�

�

�

�

Revenues Related to Reimbursable Expenses

$

945

��

$

9,794

��

$

18,525

��

��

�

�

�

�

�

�

�

�

�

�

�

CONTRACT DRILLING EXPENSE

Floaters:

Ultra-Deepwater

$

133,103

��

$

157,655

��

$

135,153

��

Deepwater

�

66,093

��

�

72,367

��

�

76,649

��

Mid-water

�

119,763

��

�

132,340

��

�

156,075

��

��

�

�

�

�

�

�

�

�

�

�

�

Total Floaters

�

318,959

��

�

362,362

��

�

367,877

��

Jack-ups

�

25,268

��

�

28,056

��

�

29,349

��

Other

�

14,428

��

�

9,384

��

�

11,681

��

��

�

�

�

�

�

�

�

�

�

�

�

Total Contract Drilling Expense

$

358,655

��

$

399,802

��

$

408,907

��

��

�

�

�

�

�

�

�

�

�

�

�

Reimbursable Expenses

$

698

��

$

9,437

��

$

17,969

��

��

�

�

�

�

�

�

�

�

�

�

�

OPERATING INCOME

Floaters:

Ultra-Deepwater

$

152,888

��

$

155,469

��

$

101,689

��

Deepwater

�

49,684

��

�

39,005

��

�

44,573

��

Mid-water

�

112,170

��

�

125,688

��

�

150,410

��

��

�

�

�

�

�

�

�

�

�

�

�

Total Floaters

�

314,742

��

�

320,162

��

�

296,672

��

Jack-ups

�

15,407

��

�

17,308

��

�

14,074

��

Other

�

(14,428

)�

�

(9,384

)�

�

(11,681

)�

Reimbursable expenses, net

�

247

��

�

357

��

�

556

��

Depreciation

�

(131,712

)�

�

(108,854

)�

�

(96,985

)�

General and administrative expense

�

(19,923

)�

�

(18,604

)�

�

(16,298

)�

Bad debt recovery

�

���

��

�

���

��

�

50

��

Gain (loss) on disposition of assets

�

(2,230

)�

�

(1,107

)�

�

1,281

��

Impairment of assets

�

���

��

�

(109,462

)�

�

���

��

��

�

�

�

�

�

�

�

�

�

�

�

Total Operating Income

$

162,103

��

$

90,416

��

$

187,669

��

��

�

�

�

�

�

�

�

�

�

�

�

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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

�

�	��	December�31,		�	��	December�31,		�
�	��	2014		�	��	2013		�
ASSETS	��				��
Current assets:	��				��
Cash and cash equivalents	��	$	233,623	��	��	$	347,011	��
Marketable securities	��	�	16,033	��	��	�	1,750,053	��
Accounts receivable, net of allowance for bad debts	��	�	463,862	��	��	�	469,355	��
Prepaid expenses and other current assets	��	�	185,541	��	��	�	143,997	��
Asset held for sale	��	�	���	��	��	�	7,694	��
	��	�	�	�	��	�	�	�
	��	�	899,059	��	��	�	2,718,110	��
Drilling and other property and equipment, net of accumulated depreciation	��	�	6,945,953	��	��	�	5,467,227	��
Other assets	��	�	176,277	��	��	�	206,097	��
	��	�	�	�	��	�	�	�
Total assets	��	$	8,021,289	��	��	$	8,391,434	��
	��	�	�	�	��	�	�	�
LIABILITIES AND STOCKHOLDERS� EQUITY	��				��
Current portion of long-term debt	��	$	249,962	��	��	$	249,954	��
Other current liabilities	��	�	606,684	��	��	�	495,628	��
Long-term debt	��	�	1,994,526	��	��	�	2,244,189	��
Deferred tax liability	��	�	530,394	��	��	�	525,541	��
Other liabilities	��	�	188,160	��	��	�	238,864	��
Stockholders� equity	��	�	4,451,563	��	��	�	4,637,258	��
	��	�	�	�	��	�	�	�
Total liabilities and stockholders� equity	��	$	8,021,289	��	��	$	8,391,434	��
	��	�	�	�	��	�	�	�

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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

AVERAGE DAYRATES AND UTILIZATION

(Dayrate in thousands)

�

�

�

Fourth Quarter 2014

�

�

Third Quarter 2014

�

�

Fourth Quarter 2013

�

�

�

Average Dayrate (1)

�

�

Utilization (2)

�

�

Operational Efficiency (3)

�

�

Revised Average Dayrate (4)

�

�

Utilization (2)

�

�

Operational Efficiency (3)

�

�

Revised Average Dayrate (4)

�

�

Utilization (2)

�

�

Operational Efficiency (3)

�

Ultra-Deepwater Floaters

�

$

493

��

�

�

66

%�

�

�

90.2

%�

�

$

491

��

�

�

77

%�

�

�

92.2

%�

�

$

403

��

�

�

80

%�

�

�

91.0

%�

Deepwater Floaters

�

$

431

��

�

�

48

%�

�

�

97.3

%�

�

$

356

��

�

�

57

%�

�

�

95.5

%�

�

$

404

��

�

�

65

%�

�

�

97.4

%�

Mid-Water floaters

�

$

270

��

�

�

55

%�

�

�

96.8

%�

�

$

265

��

�

�

59

%�

�

�

94.1

%�

�

$

292

��

�

�

63

%�

�

�

97.6

%�

Jack-ups

�

$

96

��

�

�

77

%�

�

�

99.5

%�

�

$

99

��

�

�

83

%�

�

�

99.3

%�

�

$

89

��

�

�

76

%�

�

�

97.7

%�

Fleet Total

�

�

�

�

95.5

%�

�

�

�

�

94.7

%�

�

�

�

�

95.9

%�

�

(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, 2014, three of our mid-water semisubmersible drilling rigs (Ocean General, Ocean Saratoga, and Ocean Vanguard) were cold-stacked.

(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.

(4)	Average dayrate reported in prior periods has been revised to conform to fourth quarter of 2014 presentation.

Exhibit 99.2

�

	��	Diamond Offshore Drilling, Inc. Rig Status Report February�9, 2015 Updated information noted in bold print

RECENT COMMITMENTS (See Body of Report For Contract Details)

No new contract commitments

�

�

�

Water�1 Depth

�

�

�

�

Year�3

�

�

�

�

�

Contract Dayrate

�

Estimated

�

Estimated

�

�

�

�

Planned Downtime 4 (For Periods Lasting >10 days)

�

�

�

Rig Name

�

(feet)

�

�

Type�2

�

Built

�

Location

�

Operator

�

(USD)

�

Start�Date

�

End Date

�

Status

�

�

1Q15�E

�

�

2Q15�E

�

�

3Q15�E

�

�

4Q15�E

�

�

Comments

�

�

�

�

�

�

�

�

�

�

Totals:

��

�

�

556

��

�

�

335

��

�

�

165

��

�

�

60

��

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Gulf of Mexico - U.S. (6)

�

�

�

�

�

�

�

�

�

�

�

Ocean Star

�

�

5,500

��

�

SS�15K

�

1997

�

US�GOM

�

���

�

���

�

���

�

���

�

�

Actively�marketing

��

�

�

�

�

�

Ocean Victory

�

�

5,500

��

�

SS 15K

�

1997

�

US GOM

�

���

�

���

�

���

�

���

�

�

Customer Prep

��

�

�

�

�

�

�

�

�

�

US GOM

�

���

�

���

�

late�Mar�2015

�

early�May�2015

�

�

Mobe to Trinidad

��

�

�

10

��

�

�

30

��

�

�

�

Mobe

�

�

�

�

Trinidad

�

BP

�

398,000

�

early�May�2015

�

late�Apr�2017

�

� � �

2-year term + 1- year unpriced option

� �� ��

�

�

�

�

�

Ocean Onyx

�

�

6,000

��

�

SS 15K

�

2014

�

US GOM

�

Apache�Corporation

�

490,000

�

late Oct 2014

�

mid Feb 2015

�

� �

Remainder of 1- year term

� ��

�

�

�

�

�

�

�

�

�

US GOM

�

���

�

���

�

mid Feb 2015

�

early Apr 2015

�

� � �

Prep, mobe to Trinidad, acceptance

�� �� ��

�

�

45

��

�

�

2

��

�

�

�

Prep,�mobe,�acceptance

�

�

�

�

Trinidad

�

BG International

�

390,000

�

early Apr 2015

�

early Aug 2015

�

�

One well

��

�

�

�

�

�

�

�

�

�

Trinidad

�

BG International

�

360,000

�

early Aug 2015

�

early Oct 2015

�

�

One well

��

�

�

�

�

�

Ocean BlackHawk

�

�

12,000

��

�

DS�15K�DP

�

2014

�

US GOM

�

Anadarko

�

495,000

�

late May 2014

�

mid Jun 2019

�

� �

5-year term + unpriced option

�� ��

�

�

11

��

�

�

�

�

Installation�of�2nd�BOP

Ocean BlackHornet

�

�

12,000

��

�

DS 15K DP

�

2014

�

S. Korea

�

���

�

���

�

early Dec 2014

�

Apr 2015

�

� � �

Mobe to GOM; customer acceptance

�� �� ��

�

�

90

��

�

�

�

�

Mobe,�acceptance�testing

�

�

�

�

US GOM

�

Anadarko

�

495,000

�

Apr 2015

�

Apr 2020

�

� �

5-year term + unpriced option

�� ��

�

�

�

�

�

Ocean BlackRhino

�

�

12,000

��

�

DS 15K DP

�

2014

�

S. Korea

�

���

�

���

�

mid Dec 2014

�

Apr 2015

�

� � �

Mobe to GOM; customer acceptance

�� �� ��

�

�

90

��

�

�

15

��

�

�

�

Mobe, acceptance testing

�

�

�

�

US GOM

�

Murphy

�

550,000

�

Apr 2015

�

Jan 2016

�

� � � � � � � �

265-day term; prior to commencement of contract, may be converted into term lasting until Jun 2016 at $485,000/day

�� �� �� �� �� �� �� ��

�

�

�

�

�

�

�

�

�

US GOM

�

���

�

���

�

Jan 2016

�

Q4 2016

�

�

Actively marketing

��

�

�

�

�

�

�

�

�

�

US GOM

�

Hess

�

400,000

�

Q4 2016

�

Q4 2019

�

�

3-year Term

��

�

�

�

�

�

Gulf of Mexico - Mexico (5)

�

�

�

�

�

�

�

�

�

�

�

Ocean Nugget

�

�

300

��

�

JU IC

�

1976

�

Mexico

�

Pemex

�

97,000

�

early Jul 2013

�

mid Aug 2016

�

�

1,136-day term

��

�

�

�

�

�

Ocean Summit

�

�

300

��

�

JU IC

�

1972

�

Mexico

�

Pemex

�

85,999

�

mid Sep 2012

�

late May 2015

�

�

985-day term

��

�

�

�

�

�

Ocean Scepter

�

�

350

��

�

JU 15K IC

�

2008

�

Mexico

�

Pemex

�

158,000

�

early Jun 2014

�

early Mar 2016

�

�

639-day term

��

�

�

�

�

�

Ocean Ambassador

�

�

1,100

��

�

SS

�

1975

�

Mexico

�

Pemex

�

211,445

�

early Mar 2014

�

early Mar 2016

�

�

730-day term

��

�

�

�

�

�

Ocean Yorktown

�

�

2,850

��

�

SS

�

1976

�

Mexico

�

Pemex

�

184,000

�

early Jan 2012

�

early Mar 2015

�

�

219-day extension

��

�

�

�

�

�

North Sea / Mediterranean / W. Africa (7)

�

�

�

�

�

�

�

�

�

�

�

Ocean Nomad

�

�

1,200

��

�

SS

�

1975

�

UK

�

Dana Petroleum

�

330,000

�

mid Aug 2013

�

mid Aug 2015

�

�

2-year term

��

�

�

�

�

�

Ocean Guardian

�

�

1,500

��

�

SS 15K

�

1985

�

UK

�

Shell

�

352,000

�

mid Jan 2015

�

mid Jul 2015

�

� �

Continuation of 1- year extension

� ��

�

�

�

60

��

�

�

�

5-Year Special Survey

Ocean Princess

�

�

1,500

��

�

SS 15K

�

1975

�

UK

�

EnQuest

�

230,000

�

late Nov 2014

�

late Feb 2015

�

�

One well

��

�

�

�

�

�

Ocean Patriot

�

�

3,000

��

�

SS 15K

�

1983

�

UK

�

Shell

�

400,511

�

late Oct 2014

�

late Oct 2017

�

� � �

3-year term + 2 x 1-year unpriced options

�� �� ��

�

�

�

�

�

Ocean Valiant

�

�

5,500

��

�

SS 15K

�

1988

�

UK

�

���

�

���

�

���

�

���

�

�

Contract prep

��

�

�

65

��

�

�

�

�

Mobe,�contract�prep

�

�

�

�

UK

�

Premier Oil

�

320,000

�

early Mar 2015

�

late Jul 2015

�

� �

Two wells + 4 x 1- well options

� ��

�

�

�

�

�

Ocean Endeavor

�

�

10,000

��

�

SS 15K

�

2007

�

Black�Sea

�

ExxonMobil

�

521,665

�

late Jun 2014

�

late Dec 2015

�

� � � � � �

18-month term (dayrate incl. 50% of potential 6.6% bonus) + 6 x 6- month unpriced options.

�� �� �� � �� ��

�

�

�

�

�

Ocean Confidence

�

�

10,000

��

�

SS 15K DP

�

2001

�

Canary�Islands

�

���

�

���

�

late Apr 2014

�

Mar 2015

�

�

Maintenance

��

�

�

90

��

�

�

�

�

Maintenance

�

�

�

�

�

���

�

���

�

���

�

���

�

�

Actively marketing

��

�

�

�

�

�

�

Please refer to accompanying disclaimer as well as Diamond Offshore�s 10-K and 10-Q filings with the SEC.	��	Page�1�of�4

---

�

�

Water�1 Depth

�

�

�

�

Year� 3 Built

�

�

�

�

�

�

Contract Dayrate

�

�

Estimated

�

Estimated

�

�

�

Planned Downtime�4 (For�Periods�Lasting�>10�days)

�

�

�

Rig Name

�

(feet)

�

�

Type�2

�

�

Location

�

Operator

�

(USD)

�

�

Start�Date

�

End�Date

�

Status

�

1Q15�E

�

�

2Q15�E

�

�

3Q15�E

�

�

4Q15�E

�

�

Comments

Australasia (5)

�

�

�

�

�

�

�

�

�

Ocean Quest

�

�

4,000

��

�

SS�15K

�

�

1973

��

�

Vietnam

�

PVEP

�

�

198,900

��

�

late Apr 2014

�

late Mar 2015

�

Remainder of 4th well + 6 x one-well priced options

�

�

�

60

��

�

�

�

Maintenance

Ocean America

�

�

5,500

��

�

SS 15K

�

�

1988

��

�

Australia

�

Chevron

�

�

475,000

��

�

late Nov 2013

�

late May 2015

�

18-month term

�

�

�

�

�

Ocean Apex

�

�

6,000

��

�

SS 15K

�

�

2014

��

�

Vietnam

�

ExxonMobil

�

�

485,000

��

�

late Jan 2015

�

mid Apr 2015

�

One well

�

�

20

��

�

�

�

�

Mobe,�acceptance�testing

Ocean Rover

�

�

8,000

��

�

SS 15K

�

�

2003

��

�

Malaysia

�

Murphy

�

�

465,000

��

�

early Mar 2014

�

early Mar 2016

�

2-year�term�+�1-year�unpriced option

�

�

�

�

�

Ocean Monarch

�

�

10,000

��

�

SS 15K

�

�

2008

��

�

Malaysia

�

���

�

�

���

��

�

mid Sep 2014

�

early�May�2015

�

Mobe; contract prep

�

�

63

��

�

�

37

��

�

�

�

Mobe, contract prep

�

�

�

�

Australia

�

Apache�Corporation

�

�

410,000

��

�

early�May�2015

�

mid Oct 2016

�

18-month term + 1 year option

�

�

�

�

�

Brazil / S. America (8)

�

�

�

�

�

�

�

�

�

Ocean Spur

�

�

300

��

�

JU IC

�

�

1981

��

�

Ecuador

�

Saipem

�

�

30,000

��

�

mid Oct 2012

�

late Apr 2015

�

bareboat charter + 1 x 6-month priced option

�

�

�

�

�

Ocean Lexington

�

�

2,200

��

�

SS

�

�

1976

��

�

Trinidad

�

BG Intl / Centrica

�

�

300,000

��

�

early�Nov�2013

�

mid May 2015

�

Six wells

�

�

�

�

�

�

�

�

�

US�GOM

�

BG Intl / Centrica

�

�

300,000

��

�

mid May 2015

�

early Jun 2015

�

Prep and demobe to US GOM

�

�

�

�

�

�

�

�

�

US�GOM

�

���

�

�

���

��

�

early Jun 2015

�

early�Sep�2015

�

Prep, 5-year special survey, and mobe to Mexico

�

�

�

25

��

�

�

63

��

�

�

Prep, 5-year survey, mobe

�

�

�

�

Mexico

�

Pemex

�

�

160,000

��

�

early Sep 2015

�

late Mar 2018

�

Firm term

�

�

�

�

�

Ocean Winner

�

�

4,000

��

�

SS

�

�

1976

��

�

Brazil

�

Petrobras

�

�

283,500

��

�

mid Oct 2010

�

mid Mar 2015

�

5-year term (incl. 50% of potential 6% bonus)

�

�

�

�

�

�

�

�

�

Brazil

�

���

�

�

���

��

�

���

�

���

�

Rig to be retired following completion of contract term

�

�

�

�

�

Ocean Alliance

�

�

5,250

��

�

SS�15K�DP

�

�

1988

��

�

Brazil

�

Petrobras

�

�

367,089

��

�

late Jul 2010

�

mid Jun 2016

�

6-year term (incl. 50% of potential 15% bonus) + unpriced option

�

�

�

15

��

�

�

�

Maintenance

Ocean Clipper

�

�

7,875

��

�

DS�15K�DP

�

�

1997

��

�

Brazil

�

Petrobras

�

�

312,625

��

�

late Jan 2015

�

early Dec 2015

�

Remainder of 5-year term contract (incl. 50% of potential 5% bonus) + unpriced option

�

�

10

��

�

�

�

�

Under�Water�in Lieu�of�Dry-dock rig inspection

Ocean Baroness

�

�

8,000

��

�

SS 15K

�

�

2002

��

�

Brazil

�

Petrobras

�

�

276,750

��

�

early Sep 2011

�

early Sep 2015

�

Remainder of 5-year term (incl. 50% of potential 5% bonus)

�

�

�

�

�

�

�

�

�

Brazil

�

Petrobras

�

�

310,000

��

�

early Sep 2015

�

early Sep 2018

�

3-year extension

�

�

�

�

�

Ocean Courage

�

�

10,000

��

�

SS�15K�DP

�

�

2009

��

�

Brazil

�

Petrobras

�

�

522,210

��

�

late Sep 2014

�

late Feb 2015

�

5-year term + $112,000 uplift (incl. 50% of potential 6% bonus)

�

�

�

�

�

�

�

�

�

Brazil

�

Petrobras

�

�

567,000

��

�

late Feb 2015

�

late Oct 2015

�

3-year extension + $112,000 uplift

�

�

�

�

10

��

�

�

Maintenance

�

�

�

�

Brazil

�

Petrobras

�

�

455,000

��

�

late Oct 2015

�

late Feb 2018

�

3-year extension

�

�

�

�

�

Ocean Valor

�

�

10,000

��

�

SS�15K�DP

�

�

2009

��

�

Brazil

�

Petrobras

�

�

440,000

��

�

early�Sep�2011

�

mid Oct 2015

�

Remainder of 5-year term

�

�

�

�

�

�

�

�

�

Brazil

�

Petrobras

�

�

455,000

��

�

mid Oct 2015

�

mid Oct 2018

�

3-year extension

�

�

�

�

�

Rigs Under Construction (2)

�

�

�

�

�

�

�

�

�

Ocean BlackLion

�

�

12,000

��

�

DS�15K�DP

�

�

2015

��

�

S. Korea

�

���

�

�

���

��

�

Q2 2012

�

Q4 2015

�

Hyundai shipyard; commissioning; mobe; acceptance

�

�

�

91

��

�

�

92

��

�

�

60

��

�

Mobe, acceptance testing

�

�

�

�

US�GOM

�

Hess

�

�

400,000

��

�

Q4 2015

�

Q4 2019

�

4-year Term

�

�

�

�

�

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

�

�

�

�

�

�

Please refer to accompanying disclaimer as well as Diamond Offshore�s 10-K and 10-Q filings with the SEC.	��	Page�2�of�4

---

�

�

Water�1 Depth

�

�

�

�

Year�3

�

�

�

�

�

Contract Dayrate

�

Estimated

�

Estimated

�

�

�

Planned Downtime 4 (For Periods Lasting >10 days)

�

�

Rig Name

�

(feet)

�

�

Type�2

�

Built

�

Location

�

Operator

�

(USD)

�

Start�Date

�

End Date

�

Status

�

1Q15�E

�

�

2Q15�E

�

3Q15�E

�

4Q15�E

�

Comments

COLD STACKED (6)

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Ocean King

�

�

300

��

�

JU�IC

�

1973

�

US GOM

�

���

�

���

�

���

�

���

�

Prep�for�stacking

�

�

�

�

�

Ocean Titan

�

�

350

��

�

JU�15K�IC

�

1974

�

US GOM

�

���

�

���

�

���

�

���

�

Prep for stacking

�

�

�

�

�

Ocean Vanguard

�

�

1,500

��

�

SS 15K

�

1982

�

UK

�

���

�

���

�

���

�

���

�

Stacked,�Actively marketing

�

�

�

�

�

Ocean Saratoga

�

�

2,200

��

�

SS

�

1976

�

US GOM

�

���

�

���

�

���

�

���

�

Stacked

�

�

�

�

�

Ocean General

�

�

3,000

��

�

SS

�

1976

�

Indonesia

�

���

�

���

�

���

�

���

�

Stacked

�

�

�

�

�

Ocean Worker

�

�

4,000

��

�

SS

�

1982

�

US GOM

�

���

�

���

�

���

�

���

�

In transit to US GOM for Cold Stacking

�

�

62

��

�

�

�

�

Mobe,�prep�for�stacking

RETIRED

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Ocean Concord

�

�

2,300

��

�

SS

�

1975

�

���

�

���

�

���

�

���

�

���

�

Sold

�

�

�

�

�

Ocean Epoch

�

�

3,000

��

�

SS

�

1977

�

Malaysia

�

���

�

���

�

���

�

���

�

Stacked

�

�

�

�

�

Ocean Yatzy

�

�

3,300

��

�

SS DP

�

1989

�

Brazil

�

���

�

���

�

���

�

���

�

Prep for exportation, scrapping

�

�

�

�

�

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.

General Notes

Average Utilization: Assume rates of 92% for DP units, 96% for conventionally moored rigs, and 98% 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

UWILD=Under Water in Lieu of Dry-dock rig inspection.

�

Please refer to accompanying disclaimer as well as Diamond Offshore�s 10-K and 10-Q filings with the SEC.	��	Page�3�of�4

---

�	��	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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