Contract Drilling Backlog and Revenue - As of July 1, 2021, the contract drilling backlog was $1,073 million, down from $1,187 million on January 1, 2021, and $1,192 million on July 1, 2020[213]. - The contract drilling backlog for 2021 is projected to generate $370 million, with $529 million for 2022, $169 million for 2023, and $5 million for 2024[214]. - For the period from April 24 through June 30, 2021, the company reported contract drilling revenue of $114.9 million, with 498 revenue-earning (R-E) days and an average daily revenue of $197,000[232]. - The company recognized $0.2 million of contract drilling revenue related to a management and marketing services arrangement that commenced in May 2021[232]. - Total revenues for the six months ended June 30, 2020, were $427.4 million, attributed to 1,615 revenue-earning days and an average daily revenue of $251,700[254]. Financial Performance and Losses - The net loss for the period from April 24 through June 30, 2021, was $47.3 million, a significant improvement from a net loss of $1.6 billion in the prior period[240]. - The company reported a net loss of $47.3 million for the period from April 24 through June 30, 2021, compared to a net loss of $1.0 billion for the six months ended June 30, 2020[250]. - The effective tax rate for the period from April 24 through June 30, 2021, was negative 57.7%, resulting in a tax expense of $17.3 million[248]. - The effective tax rate for the period from April 24 through June 30, 2021, was negative 57.7%, primarily due to the mix of estimated pre-tax income and loss[267]. Costs and Expenses - Contract drilling expense, excluding depreciation, was $90.7 million for the period from April 24 through June 30, 2021, reflecting lower costs compared to previous periods[234]. - Depreciation expense for the period from April 24 through June 30, 2021, was $18.7 million, down from $74.8 million in the same period of the previous year[238]. - The company incurred additional costs due to COVID-19, including increased travel expenses and health protocols for crew safety[219][220]. - The company incurred $5.5 million in professional fees directly related to Chapter 11 cases during the period from April 24 through June 30, 2021[243]. - Interest expense for the period from April 24 through June 30, 2021, was $4.9 million related to new debt on the Effective Date[262]. Utilization and Operational Metrics - The percentage of rig days committed for 2021 is 77%, with projections of 53% for 2023 and 15% for 2024[216]. - Global floater contracted utilization was approximately 64% at the end of Q2 2021, with 127 out of 197 available rigs contracted[207]. - The total utilization rate for the period was 61%, compared to 52% for the prior period from April 1 through April 23, 2021[230]. - The total utilization rate for the period from April 24 through June 30, 2021, was 61%, reflecting planned downtime for two rigs[252]. Bankruptcy and Restructuring - The company emerged from Chapter 11 bankruptcy on April 23, 2021, adopting fresh start accounting, resulting in a new entity for financial reporting purposes[200][201]. - The company emerged from Chapter 11 reorganization on April 23, 2021, significantly reducing its indebtedness and entering into a $400 million senior secured revolving credit facility[271]. - The company incurred $7.4 million in legal and other professional advisor fees related to restructuring alternatives during the first half of 2020[260]. Cash Flow and Liquidity - For the period from April 24 to June 30, 2021, the company reported a cash outflow of $66 million from operating activities, with total cash expenditures of $134.4 million[276]. - The company expects capital expenditures for the remaining six months of 2021 to be approximately $20 million to $25 million, totaling $95 million to $100 million for the year[281]. - The company plans to manage liquidity needs through cash flows from operations and cash reserves, focusing on servicing debt and funding capital expenditures[272]. - Total contractual cash obligations as of June 30, 2021, amounted to $863.8 million, including various debt instruments and service agreements[284]. - As of July 30, 2021, the company had $153.5 million in borrowings under the Exit RCF and $243.9 million available for further borrowings[271]. Market Conditions and Strategic Alternatives - The offshore contract drilling market is facing challenges due to an oversupply of rigs and depressed commodity prices, although prices have shown modest improvement[206]. - Brent crude oil prices rose to the high-$60-per-barrel range, supported by OPEC+ supply commitments and increased summer demand[207]. - The company has appointed an independent committee to explore strategic alternatives, including potential asset acquisitions or business combinations[205]. - Forward-looking statements indicate potential impacts from market conditions, customer spending, and ongoing business strategies, with a focus on maximizing shareholder value[292]. Risks and Legal Proceedings - The company is subject to various risks and uncertainties that could materially affect its business and financial performance[295]. - The company is involved in ongoing litigation and legal proceedings that may affect its financial condition[300]. - The company has plans and strategies in place to address the impacts of the COVID-19 pandemic on its operations[300]. Asset Management and Impairments - The company recognized an impairment charge of $197.0 million during the period from January 1 to April 23, 2021, and an aggregate impairment charge of $774.0 million for the first six months of 2020[259]. - The company is evaluating asset impairments and has assets held for sale[300]. - The company is focused on capital expenditure budgets and the timing and cost of completion of capital projects[300].

[FORM 10-Q Cover Page](index=1&type=section&id=FORM%2010-Q%20Cover%20Page) This section provides key filing details for Diamond Offshore Drilling, Inc.'s Quarterly Report on Form 10-Q - **Diamond Offshore Drilling, Inc.** filed its Quarterly Report on Form 10-Q for the period ended March 31, 2021[1](index=1&type=chunk) - The registrant is a **non-accelerated filer** and is not a shell company[1](index=1&type=chunk) - As of May 3, 2021, **100,000,019 shares of common stock** were outstanding[1](index=1&type=chunk) [TABLE OF CONTENTS](index=2&type=section&id=TABLE%20OF%20CONTENTS) This section outlines the report's structure, detailing financial and other information with page numbers - The table of contents outlines the report's structure, including **Part I (Financial Information)** and **Part II (Other Information)**, with specific items and their corresponding page numbers[3](index=3&type=chunk) [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents unaudited condensed consolidated financial statements and management's discussion and analysis [ITEM 1. Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20%28Unaudited%29) This section provides unaudited condensed consolidated financial statements and explanatory notes on key financial impacts [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and equity at specific points in time | Metric (in thousands) | March 31, 2021 | December 31, 2020 | | :-------------------- | :------------- | :---------------- | | Total Assets | $4,679,442 | $4,948,453 | | Total Current Assets | $581,984 | $625,315 | | Cash and Cash Equivalents | $311,357 | $405,869 | | Restricted Cash | $34,308 | $24,511 | | Accounts Receivable, net | $145,653 | $130,660 | | Total Liabilities not subject to compromise | $1,013,680 | $347,082 | | Liabilities subject to compromise | $2,044,877 | $2,618,805 | | Total Stockholders' Equity | $1,620,885 | $1,982,566 | - **Total Assets** decreased by **$269.00 million** from December 31, 2020, to March 31, 2021, while **Total Liabilities not subject to compromise** significantly increased by **$666.60 million**[5](index=5&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This statement details the company's revenues, expenses, and net loss over specific periods | Metric (in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Total Revenues | $134,817 | $229,170 | | Operating Loss | $(297,211) | $(846,437) | | Impairment of Assets | $197,027 | $774,028 | | Reorganization items, net | $(35,252) | $0 | | Net Loss | $(361,681) | $(861,940) | | Loss per share, Basic and Diluted | $(2.62) | $(6.25) | - **Total Revenues** decreased by **$94.35 million**, and **Net Loss** improved by **$500.26 million**, primarily due to significantly lower impairment charges in Q1 2021 compared to Q1 2020[7](index=7&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This statement presents the net loss and other comprehensive income or loss components for the period | Metric (in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net Loss | $(361,681) | $(861,940) | | Total other comprehensive loss | $0 | $(1) | | Comprehensive Loss | $(361,681) | $(861,941) | - Comprehensive loss for Q1 2021 was entirely attributable to **Net Loss**, with no other comprehensive losses, unlike Q1 2020 which had a minor reclassification adjustment for derivative financial instruments[9](index=9&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%27%20Equity) This statement tracks changes in the company's equity accounts, including common stock and retained earnings | Metric (in thousands) | January 1, 2021 | March 31, 2021 | | :-------------------- | :-------------- | :------------- | | Common Stock Amount | $1,453 | $1,453 | | Additional Paid-In Capital | $2,029,979 | $2,029,979 | | Retained Earnings (Accumulated Deficit) | $157,297 | $(204,384) | | Treasury Stock Amount | $(206,163) | $(206,163) | | Total Stockholders' Equity | $1,982,566 | $1,620,885 | - **Total stockholders' equity** decreased by **$361.68 million** from January 1, 2021, to March 31, 2021, primarily due to the **Net Loss** incurred during the period, resulting in an accumulated deficit[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement details cash inflows and outflows from operating, investing, and financing activities | Metric (in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(49,208) | $(22,841) | | Net cash used in investing activities | $(33,217) | $(70,302) | | Net cash (used in) provided by financing activities | $(2,290) | $436,000 | | Net change in cash, cash equivalents and restricted cash | $(84,715) | $342,857 | | Cash, cash equivalents and restricted cash, end of period | $345,665 | $499,138 | - **Net cash used in operating activities** increased by **$26.37 million** in Q1 2021 compared to Q1 2020; financing activities shifted from a **$436.00 million inflow** in Q1 2020 to a **$2.29 million outflow** in Q1 2021[14](index=14&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the unaudited financial statements [1. General Information](index=8&type=section&id=1.%20General%20Information) This note outlines the basis of financial statement preparation and key accounting policies - The unaudited condensed consolidated financial statements are prepared in accordance with **GAAP** for interim financial information and **SEC Form 10-Q** instructions[17](index=17&type=chunk) - Management's estimates and assumptions are integral to financial statement preparation, and actual results may differ[18](index=18&type=chunk) - Restricted cash accounts, subject to court order for professional fees, are classified as **current assets** if restrictions are expected to resolve within one year[19](index=19&type=chunk)[20](index=20&type=chunk) [2. Chapter 11 Proceedings](index=8&type=section&id=2.%20Chapter%2011%20Proceedings) This note details the company's Chapter 11 bankruptcy filing, emergence, and financial impact of reorganization - Diamond Offshore and certain subsidiaries commenced **Chapter 11 cases** on April 26, 2020, and emerged from reorganization on April 23, 2021, after the Plan was confirmed[21](index=21&type=chunk)[22](index=22&type=chunk) - Substantial doubt about the company's ability to continue as a **going concern** has been resolved post-emergence due to the new capital structure and liquidity[23](index=23&type=chunk) | Reorganization Item (in thousands) | Three Months Ended March 31, 2021 | | :--------------------------------- | :-------------------------------- | | Professional fees | $25,670 | | Accrued backstop commitment premium | $9,900 | | Net gain on adjustments for allowed claims | $(318) | | Total reorganization items, net | $35,252 | - Liabilities subject to compromise decreased from **$2.62 billion** at December 31, 2020, to **$2.04 billion** at March 31, 2021, as certain prepetition liabilities were reclassified or settled[25](index=25&type=chunk) - **Fresh start accounting** will be applied upon emergence, revaluing assets and liabilities to fair value, making post-Effective Date financial statements non-comparable to prior periods[25](index=25&type=chunk)[26](index=26&type=chunk) [Debtor Financial Statements](index=12&type=section&id=Debtor%20Financial%20Statements) This section presents unaudited condensed combined financial statements for the Debtors, excluding non-Debtor subsidiaries - Unaudited condensed combined financial statements are presented for the **Debtors**, excluding non-Debtor subsidiaries, with inter-Debtor transactions eliminated[27](index=27&type=chunk) | Metric (in thousands) | March 31, 2021 | December 31, 2020 | | :-------------------- | :------------- | :---------------- | | Total Assets | $7,088,182 | $7,356,102 | | Total Liabilities not subject to compromise | $2,307,542 | $1,646,912 | | Liabilities subject to compromise | $2,044,877 | $2,618,805 | | Total Debtors' Equity | $2,735,763 | $3,090,385 | | Metric (in thousands) | Three Months Ended March 31, 2021 | | :-------------------- | :-------------------------------- | | Total Revenues | $131,397 | | Operating Loss | $(290,828) | | Net Loss | $(354,631) | | Metric (in thousands) | Three Months Ended March 31, 2021 | | :-------------------- | :-------------------------------- | | Net cash used in operating activities | $(42,908) | | Net cash used in investing activities | $(39,163) | | Net cash used in financing activities | $(2,290) | | Net change in cash, cash equivalents and restricted cash | $(84,361) | | Cash, cash equivalents and restricted cash, end of period | $330,557 | [3. Revenue from Contracts with Customers](index=15&type=section&id=3.%20Revenue%20from%20Contracts%20with%20Customers) This note details the company's revenue recognition policies for contract drilling services and contract balances - Contract drilling services are accounted for as a **single performance obligation** satisfied over time, comprising distinct time increments[33](index=33&type=chunk) | Contract Balance (in thousands) | March 31, 2021 | December 31, 2020 | | :------------------------------ | :------------- | :---------------- | | Trade receivables | $130,998 | $115,732 | | Current contract assets | $3,196 | $2,870 | | Current contract liabilities (deferred revenue) | $(57,185) | $(51,763) | | Noncurrent contract liabilities (deferred revenue) | $(6,715) | $(5,164) | | Revenue Type (in thousands) | 2021 (9 months) | 2022 | 2023 | 2024 | Total | | :-------------------------- | :-------------- | :--- | :--- | :--- | :---- | | Mobilization and contract preparation revenue | $26,861 | $5,540 | $2,908 | $80 | $35,389 | | Capital modification revenue | $10,070 | $1,452 | $0 | $0 | $11,522 | | Blended rate revenue and other | $15,054 | $1,070 | $0 | $0 | $16,124 | | Total | $51,985 | $8,062 | $2,908 | $80 | $63,035 | - **Fresh start accounting** upon emergence from bankruptcy is expected to redetermine contract asset and liability balances, potentially impacting future revenue recognition[35](index=35&type=chunk) [4. Impairment of Assets](index=16&type=section&id=4.%20Impairment%20of%20Assets) This note explains impairment charges recognized on drilling rigs and the methodology for fair value estimation - Aggregate impairment charges were **$197.00 million** for Q1 2021 (one rig) and **$774.00 million** for Q1 2020 (four rigs)[37](index=37&type=chunk) - Fair value estimates for impaired rigs use an **income approach** with significant unobservable inputs (**Level 3 fair value measurement**)[36](index=36&type=chunk) - Further deterioration in market fundamentals or delayed recovery could lead to **additional impairment charges** in future periods[37](index=37&type=chunk) [5. Supplemental Financial Information](index=17&type=section&id=5.%20Supplemental%20Financial%20Information) This note provides detailed breakdowns of accounts receivable, prepaid expenses, other current assets, and accrued liabilities | Accounts Receivable (in thousands) | March 31, 2021 | December 31, 2020 | | :--------------------------------- | :------------- | :---------------- | | Trade receivables | $130,998 | $115,732 | | Value added tax receivables | $10,642 | $10,781 | | Federal income tax receivables | $8,420 | $8,420 | | Related party receivables | $46 | $78 | | Other | $1,118 | $1,211 | | Total | $151,224 | $136,222 | | Allowance for credit losses | $(5,571) | $(5,562) | | Total, net | $145,653 | $130,660 | | Prepaid Expenses and Other Current Assets (in thousands) | March 31, 2021 | December 31, 2020 | | :------------------------------------------------------- | :------------- | :---------------- | | Deferred contract costs | $23,280 | $19,808 | | Prepaid taxes | $15,312 | $16,112 | | Rig spare parts and supplies | $13,007 | $12,606 | | Deferred debt issuance costs | $12,430 | $0 | | Collateral deposits | $8,625 | $0 | | Current contract assets | $3,196 | $2,870 | | Prepaid rig costs | $2,548 | $2,317 | | Prepaid legal retainers | $2,309 | $2,408 | | Prepaid insurance | $2,196 | $2,446 | | Other | $6,763 | $3,708 | | Total | $89,666 | $62,275 | | Accrued Liabilities (in thousands) | March 31, 2021 | December 31, 2020 | | :--------------------------------- | :------------- | :---------------- | | Deferred revenue | $57,185 | $51,763 | | Accrued interest | $35,329 | $0 | | Payroll and benefits | $33,216 | $30,296 | | Shorebase and administrative costs | $23,547 | $17,275 | | Current operating lease liability | $22,548 | $5,072 | | Rig operating costs | $20,673 | $21,123 | | Accrued capital project/upgrade costs | $17,255 | $7,075 | | Deferred debt issuance costs and financing fees | $10,140 | $0 | | Accrued backstop commitment premium | $9,900 | $0 | | Personal injury and other claims | $5,346 | $6,495 | | Other | $1,510 | $1,689 | | Total | $236,649 | $140,788 | [6. Financial Instruments and Fair Value Disclosures](index=18&type=section&id=6.%20Financial%20Instruments%20and%20Fair%20Value%20Disclosures) This note discusses credit risk concentrations, credit loss estimates, fair value measurements, and senior notes valuation - The company faces significant concentrations of **credit risk** due to its limited customer base in the offshore oil and gas industry[42](index=42&type=chunk) - Under **CECL**, the estimated credit losses were **$0.10 million** at both March 31, 2021, and December 31, 2020, with a total allowance for credit losses of **$5.60 million**[44](index=44&type=chunk) - Impaired assets are measured at **fair value** on a nonrecurring basis, primarily using **Level 3 inputs** due to significant estimation and lack of transparency[45](index=45&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) | Senior Notes (in millions) | March 31, 2021 Fair Value | March 31, 2021 Carrying Value | December 31, 2020 Fair Value | December 31, 2020 Carrying Value | | :------------------------- | :------------------------ | :---------------------------- | :--------------------------- | :------------------------------- | | 3.45% Senior Notes due 2023 | $42.7 | $250.0 | $30.6 | $250.0 | | 7.875% Senior Notes due 2025 | $85.0 | $500.0 | $61.3 | $500.0 | | 5.70% Senior Notes due 2039 | $85.0 | $500.0 | $61.2 | $500.0 | | 4.875% Senior Notes due 2043 | $127.5 | $750.0 | $91.9 | $750.0 | [7. Drilling and Other Property and Equipment](index=21&type=section&id=7.%20Drilling%20and%20Other%20Property%20and%20Equipment) This note provides a breakdown of property and equipment, including drilling rigs, impairment charges, and asset sales | Asset Category (in thousands) | March 31, 2021 | December 31, 2020 | | :---------------------------- | :------------- | :---------------- | | Drilling rigs and equipment | $6,558,577 | $6,987,630 | | Land and buildings | $40,425 | $41,072 | | Office equipment and other | $83,226 | $83,016 | | Cost | $6,682,228 | $7,111,718 | | Less: accumulated depreciation | $(2,781,814) | $(2,988,909) | | Net | $3,900,414 | $4,122,809 | - A **$197.00 million** impairment charge was recorded in Q1 2021 to write down one drilling rig to its estimated fair value[51](index=51&type=chunk) - The **Ocean Valor** is reported as 'Assets held for sale' at **$1.00 million**; the **Ocean America** and **Ocean Rover** were sold in Q1 2021 for a net pre-tax gain of **$4.40 million**[51](index=51&type=chunk) [8. Credit Agreements](index=21&type=section&id=8.%20Credit%20Agreements) This note discusses the impact of Chapter 11 on credit facilities and recognition of post-petition interest expense - The **$436.00 million** borrowed under the **RCF** became immediately due and payable upon the Chapter 11 filing, constituting an event of default[52](index=52&type=chunk) - Post-Plan Support Agreement (**PSA**), outstanding RCF borrowings and accrued pre-petition interest were reclassified to **'Current maturities of long-term debt'**[53](index=53&type=chunk) - Accrued post-petition interest expense of **$32.60 million** was recognized in Q1 2021, including a **$23.40 million catch-up adjustment**, with a weighted average interest rate of **8.50%**[53](index=53&type=chunk) [9. Commitments and Contingencies](index=22&type=section&id=9.%20Commitments%20and%20Contingencies) This note outlines various legal proceedings, tax assessments, personal injury claims, and contingent liabilities - The company is involved in various legal proceedings, including **asbestos litigation**, non-income tax assessments, and other claims[54](index=54&type=chunk) - A **$14.10 million liability** was recorded for probable losses related to non-income tax items at March 31, 2021[54](index=54&type=chunk) - The estimated liability for personal injury claims was **$15.00 million** at March 31, 2021, with **$5.10 million current** and **$9.90 million non-current**[55](index=55&type=chunk) - Contingent liabilities totaled **$25.00 million** under various bonds and letters of credit, with **$23.50 million** in aggregate collateral deposits[56](index=56&type=chunk) [10. Segments and Geographic Area Analysis](index=23&type=section&id=10.%20Segments%20and%20Geographic%20Area%20Analysis) This note explains the company's single reportable segment and provides a breakdown of revenues by geographic area - The company aggregates all operations into **one reportable segment** due to the similar economic characteristics of its contract drilling services[57](index=57&type=chunk) | Country | Three Months Ended March 31, 2021 Total Revenues (in thousands) | Three Months Ended March 31, 2020 Total Revenues (in thousands) | | :--------------- | :-------------------------------------------------------------- | :-------------------------------------------------------------- | | United States | $80,039 | $108,044 | | United Kingdom | $26,041 | $35,844 | | Australia | $14,827 | $22,103 | | Myanmar | $10,489 | $0 | | Brazil | $3,421 | $63,179 | | Total | $134,817 | $229,170 | [11. Subsequent Events](index=24&type=section&id=11.%20Subsequent%20Events) This note details events after the balance sheet date, including Chapter 11 emergence, new capital structure, and management changes - The Debtors emerged from **Chapter 11 reorganization** on April 23, 2021, following the Bankruptcy Court's confirmation order[59](index=59&type=chunk) - **New Diamond Common Shares (100,000,019 shares outstanding)** and **Emergence Warrants (7,526,894 issued)** were distributed to former Senior Notes holders and existing equity interest holders, respectively[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - New debt instruments include a **$400.00 million Revolving Credit Facility**, a **$100.00 million Term Loan Credit Facility**, and approximately **$85.30 million in First Lien Notes**, all secured by company assets and maturing between 2026 and 2027[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) - The Plan outlined specific treatments for various claims, including **cash payments, new debt, or new equity** for secured, priority, RCF, Senior Notes, and general unsecured claims[78](index=78&type=chunk) - The Board of Directors and CEO changed upon emergence, with **Ron Woll appointed Interim Chief Executive Officer and Interim President**[79](index=79&type=chunk) - Amendments to well control equipment service and lease agreements resulted in a reclassification of the lease from **operating to finance lease** due to a purchase option ceiling[81](index=81&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of financial condition and results, covering Chapter 11 impact, market challenges, backlog, and liquidity [Company Overview](index=31&type=section&id=Company%20Overview) This section provides an overview of Diamond Offshore Drilling, Inc.'s global contract drilling services and fleet - **Diamond Offshore Drilling, Inc.** provides contract drilling services globally with a fleet of **12 floater rigs** (four drillships and eight semisubmersibles), including two cold-stacked rigs[83](index=83&type=chunk) - The company sold the **Ocean America** and **Ocean Rover** for scrap value in Q1 2021 and is marketing the **Ocean Valor** for sale[83](index=83&type=chunk) [Bankruptcy Filing](index=31&type=section&id=Bankruptcy%20Filing) This section summarizes the company's Chapter 11 filing and subsequent emergence with new financing arrangements - Diamond Offshore and certain subsidiaries commenced **Chapter 11 cases** on April 26, 2020, and emerged from reorganization on April 23, 2021, following the confirmation of its Plan of Reorganization[84](index=84&type=chunk) - The emergence was supported by a **Plan Support Agreement** and new exit financing arrangements[84](index=84&type=chunk) [Market Overview](index=31&type=section&id=Market%20Overview) This section describes the challenging offshore contract drilling market, including rig oversupply, commodity prices, and utilization - The offshore contract drilling market remains severely challenged by an **oversupply of rigs**, depressed commodity prices, and reduced drilling projects[85](index=85&type=chunk) - The global **COVID-19 outbreak** significantly impacted oil demand, though commodity prices have modestly recovered to the **high-$60-per-barrel range** for Brent crude by the report date[85](index=85&type=chunk) - Global floater contracted utilization was approximately **63%** at the end of Q1 2021, with **131 of 207 available rigs** contracted[86](index=86&type=chunk) - Drilling contractors retired **seven additional floaters** in 2021 to manage supply; **45 floaters** are currently cold-stacked, with increasing reactivation costs over time[86](index=86&type=chunk) - The company recognized a **$197.00 million** asset impairment in Q1 2021 for one semisubmersible rig due to concerns over future opportunities[86](index=86&type=chunk) [Contract Drilling Backlog](index=32&type=section&id=Contract%20Drilling%20Backlog) This section provides a summary of the company's contract drilling backlog and committed rig days | Date | Contract Drilling Backlog (in millions) | | :--------------- | :-------------------------------------- | | April 1, 2021 | $1,092 | | January 1, 2021 | $1,187 | | April 1, 2020 | $1,393 | | Year | Contract Drilling Backlog (in millions) | | :--------------- | :-------------------------------------- | | 2021 (9 months) | $530 | | 2022 | $415 | | 2023 | $144 | | 2024 | $3 | | Total | $1,092 | | Year | Percentage of Rig Days Committed | | :--------------- | :------------------------------- | | 2021 (9 months) | 76% | | 2022 | 12% | | 2023 | 0% | | 2024 | 0% | - The backlog calculation assumes **full utilization** and excludes revenues for mobilization, demobilization, contract preparation, and customer reimbursables[87](index=87&type=chunk) [Important Factors That May Impact Our Operating Results, Financial Condition or Cash Flows](index=34&type=section&id=Important%20Factors%20That%20May%20Impact%20Our%20Operating%20Results%2C%20Financial%20Condition%20or%20Cash%20Flows) This section discusses key factors, including reorganization costs, COVID-19 impacts, planned downtime, and insurance, affecting future financial performance - The company expects to incur **$20 million to $25 million** in incremental reorganization costs during Q2 2021 for professional fees related to the Chapter 11 Cases[91](index=91&type=chunk) - The **COVID-19 pandemic** continues to impact operations through travel restrictions, increased personnel costs, freight surcharges, and additional health protocols[92](index=92&type=chunk) - Planned downtime for regulatory inspections, upgrades, contract preparation, and rig mobilizations negatively impacts operating income; approximately **195 days** are expected in the remainder of 2021[92](index=92&type=chunk) - The company is **self-insured** for physical damage from U.S. Gulf of Mexico named windstorms and carries marine liability insurance with deductibles up to **$100.00 million** for subsequent occurrences[92](index=92&type=chunk)[93](index=93&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, focusing on revenue, expenses, and net loss | Key Performance Indicator | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :------------------------ | :-------------------------------- | :-------------------------------- | | Revenue-Earning Days | 580 | 795 | | Utilization | 54% | 56% | | Average Daily Revenue | $211,300 | $273,900 | | Financial Metric (in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :------------------------------ | :-------------------------------- | :-------------------------------- | | Contract Drilling Revenue | $122,553 | $217,866 | | Contract Drilling Expense, Excluding Depreciation | $141,573 | $184,511 | | Depreciation Expense | $74,626 | $93,043 | | Impairment of Assets | $197,027 | $774,028 | | Interest Expense, net | $(32,562) | $(32,321) | | Reorganization Items, net | $(35,252) | $0 | | Net Loss | $(361,681) | $(861,940) | - Contract drilling revenue decreased by **$95.30 million** due to **215 fewer revenue-earning days** and lower average daily revenue; contract drilling expense, excluding depreciation, decreased by **$42.90 million** due to cold-stacking and cost-cutting initiatives[95](index=95&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, new debt instruments, operating cash flow, and capital expenditure plans - Post-emergence from Chapter 11, the company established new debt instruments: a **$400.00 million Revolving Credit Facility**, a **$100.00 million Term Loan Credit Facility**, and approximately **$85.30 million in First Lien Notes**[96](index=96&type=chunk)[97](index=97&type=chunk) - Cash flow from operations decreased by **$26.40 million** in Q1 2021 compared to Q1 2020, primarily due to lower cash receipts from contract drilling services[99](index=99&type=chunk) - Expected cash capital expenditures for the last nine months of 2021 are **$50 million to $70 million**, totaling **$90 million to $110 million** for the full year, including equipment upgrades[99](index=99&type=chunk) - As of March 31, 2021, the company had **$311.40 million cash** available for current operations and a contractual backlog of **$1.10 billion**[98](index=98&type=chunk) [Off-Balance Sheet Arrangements](index=38&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms the absence of off-balance sheet debt or other arrangements at the reporting dates - The company reported **no off-balance sheet debt** or other off-balance sheet arrangements at March 31, 2021, and December 31, 2020[101](index=101&type=chunk) [Forward-Looking Statements](index=38&type=section&id=Forward-Looking%20Statements) This section cautions readers about forward-looking statements, their inherent risks, and the company's disclaimer regarding updates - The report contains **forward-looking statements** regarding future results, events, and financial performance, identified by specific terminology[102](index=102&type=chunk) - These statements are subject to inherent risks and uncertainties, including the ability to continue as a **going concern**, increased bankruptcy-related costs, market conditions, and the effects of the **COVID-19 pandemic**[102](index=102&type=chunk)[103](index=103&type=chunk) - Investors should not place undue reliance on forward-looking statements, and the company disclaims any obligation to update them[104](index=104&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section reports no material changes in market risk components for Q1 2021, referencing the Annual Report on Form 10-K for details - **No material changes** in market risk components were identified for the three months ended March 31, 2021[106](index=106&type=chunk) [ITEM 4. Controls and Procedures](index=40&type=section&id=ITEM%204.%20Controls%20and%20Procedures) The CEO and CFO concluded effective disclosure controls and procedures as of March 31, 2021, with no material changes in internal control during Q1 2021 - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2021[107](index=107&type=chunk) - **No material changes** in internal control over financial reporting were identified during the first fiscal quarter of 2021[107](index=107&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part includes information on legal proceedings, risk factors, and a list of exhibits filed with the report [ITEM 1. Legal Proceedings](index=41&type=section&id=ITEM%201.%20Legal%20Proceedings) This section incorporates by reference details on legal proceedings from Note 9 and Chapter 11 Cases from Note 2 - Information related to legal proceedings is incorporated by reference from **Note 9 'Commitments and Contingencies'** in the financial statements[110](index=110&type=chunk) - Information related to the Chapter 11 Cases is incorporated by reference from **Note 2 'Chapter 11 Proceedings – Chapter 11 Cases'**[110](index=110&type=chunk) [ITEM 1A. Risk Factors](index=41&type=section&id=ITEM%201A.%20Risk%20Factors) This section confirms no material changes to risk factors discussed in the Annual Report on Form 10-K for 2020 - **No material changes** have been made to the risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2020, as of March 31, 2021[111](index=111&type=chunk) [ITEM 6. Exhibits](index=42&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Chapter 11 Plan, organizational documents, Plan Support Agreement, and certifications - Exhibits include the **Second Amended Joint Chapter 11 Plan of Reorganization**, Third Amended and Restated Certificate of Incorporation, Second Amended and Restated Bylaws, and the **Plan Support Agreement**[112](index=112&type=chunk) - Also included are **Rule 13a-14(a) Certifications** from the CEO and CFO, **Section 1350 Certification**, and **Inline XBRL documents**[112](index=112&type=chunk) [SIGNATURES](index=43&type=section&id=SIGNATURES) This section provides the official signatures for the Form 10-Q report - The report was signed on **May 7, 2021**, by **Scott Kornblau**, Senior Vice President and Chief Financial Officer, and **Dominic A. Savarino**, Vice President and Chief Accounting & Tax Officer[113](index=113&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-13926 DIAMOND OFFSHORE DRILLING, INC. (Exact name of registrant as specified in its charter) Delaware 76-0321760 (State or other jurisdiction of i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-13926 | --- | --- | |--------------------------------------------------------------------------------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-13926 DIAMOND OFFSHORE DRILLING, INC. (Exact name of registrant as specified in its charter) Delaware 76-0321760 (State or other ju ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-13926 DIAMOND OFFSHORE DRILLING, INC. (Exact name of registrant as specified in its charter) Delaware 76-0321760 (State or other j ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-13926 DIAMOND OFFSHORE DRILLING, INC. (Exact name of registrant as specified in its charter) Delaware 76-0321760 (State or other jurisdiction of i ...

Diamond Offshore Drilling Inc. (NYSE:DO) Q4 2019 Earnings Conference Call February 10, 2020 9:00 AM ET Company Participants Samir Ali - Investor Relations Marc Edwards - President and Chief Executive Officer Ron Woll - Executive Vice President and Chief Commercial Officer Scott Kornblau - Senior Vice President and Chief Financial Officer Conference Call Participants Sean Meakim - JPMorgan Cole Sullivan - Wells Fargo James West - Evercore ISI Ian McPherson - Simmons Mike Sabella - Bank of America Taylor Zurc ...

Diamond Offshore Drilling, Inc. (NYSE:DO) Q3 2019 Earnings Conference Call October 28, 2019 9:00 AM ET Company Participants Samir Ali - Vice President, Investor Relations and Corporate Development Marc Edwards - President and Chief Executive Officer Scott Kornblau - Senior Vice President and Chief Financial Officer Ronald Woll - Executive Vice President and Chief Commercial Officer Conference Call Participants Ian MacPherson - Simmons & Company International Michael Sabella - Bank of America Merrill Lynch J ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-13926 DIAMOND OFFSHORE DRILLING, INC. (Exact name of registrant as specified in its charter) Title of each class Trading Symbo ...