Financial Data and Key Metrics Changes - For the full year 2025, the company delivered EBITDA of $353 million, exceeding the midpoint of the original guidance range [4] - Total operating revenues for Q4 2025 were $362 million, slightly down from $363 million in the prior quarter [24] - Contract drilling revenues decreased by $7 million to $373 million due to fewer operating days for the West Vela [24] - Total operating expenses for Q4 were $344 million, an increase of $7 million primarily due to higher depreciation and amortization costs [25] - The company ended 2025 with a total cash balance of $365 million, including $26 million in restricted cash [25] Business Line Data and Key Metrics Changes - The West Neptune achieved a record-breaking six-zone completion for LLOG in the U.S. Gulf, completing the program in 11 days, exceeding the prior benchmark by 60% [5] - The West Elara earned ConocoPhillips Supplier of the Year Award, reflecting performance metrics and reliability [6] - The Sevan Louisiana successfully executed two well interventions using Trendsetter's innovative Trident system, broadening its market potential [7] Market Data and Key Metrics Changes - The ultra-deepwater market entered 2026 with renewed strength, with tightening supply and increasing visibility indicating a robust 2027 [9] - The International Energy Agency projects that oil and gas demand will grow through 2050, reversing prior expectations of a near-term peak [9] - The market will require approximately 25 million barrels per day of new production by 2035 to remain in balance [9] Company Strategy and Development Direction - The company is focused on maximizing utilization across its high-specification fleet, with a backlog profile providing strong revenue visibility into 2026 and beyond [8] - The strategic partnership with Trendsetter is expected to deliver advantages for both companies well into the future [7] - The company aims to capitalize on the growing deepwater demand, particularly in regions like Africa and Southeast Asia [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in deepwater demand for 2026 and beyond, with expectations of increasing day rates and utilization [17] - The company highlighted that operators are beginning to prioritize long-term contracts as they anticipate supply constraints [70] - Management noted that the current macro environment is the most favorable in recent memory, with a broad-based increase in demand across various regions [9][78] Other Important Information - The company anticipates total operating revenues of $1.4 billion to $1.45 billion for full year 2026, excluding $50 million of reimbursable revenues [26] - Full year EBITDA guidance for 2026 is set at $350 million to $400 million, including a non-cash expense of $26 million [27] - The company expects a significant step down in capital expenditures for 2026, ranging from $200 million to $240 million [27] Q&A Session Summary Question: Expectations for day rates in 2027 - Management expects day rates to exceed current levels based on market data and increasing demand [34][36] Question: Update on Petrobras negotiations - Management is having positive discussions with Petrobras but cannot predict the timing of contract conclusions [38] Question: Strategic positioning of the fleet - The company is open to moving rigs to maximize cash flow, depending on market opportunities [46][47] Question: Thoughts on recent ONGC tenders - Management views the recent ONGC tenders as a positive sign of increasing demand in the Indian market [63] Question: Conversations with customers about pricing - Management noted that discussions vary by client, with some willing to negotiate for better day rates [88]