Core Insights - Transocean Ltd. has secured new contracts for its ultra-deepwater drillship and harsh-environment semisubmersible rigs, adding approximately $89 million to its firm contract backlog [1][9]. Summary by Sections Ultra-Deepwater Drillship Contracts - The company has extended its contract for the ultra-deepwater drillship, Deepwater Mykonos, after Petrobras exercised a 90-day option, contributing about $33 million to the backlog. The drillship, built in 2011, can accommodate 205 personnel and has a maximum drilling depth of 35,000 feet and a water-depth capability of 10,000 feet, making it suitable for challenging deepwater operations [2]. Harsh-Environment Rigs Developments - In Norway, a two-well option was exercised for the Transocean Enabler, a harsh-environment semi-submersible rig, operating at a dayrate of $453,000. This rig can drill to a maximum depth of 8,500 meters and operate in water depths up to 500 meters. Additionally, OMV Petrom in Romania exercised a one-well option for the Transocean Barents at a dayrate of $480,000, further enhancing Transocean's presence in the harsh-environment segment in Europe [3]. Strategic Importance and Backlog - Transocean is recognized as the world's largest offshore drilling contractor, providing drilling management services globally. The company operates a modern and adaptable fleet focused on complex offshore projects, with a significant presence in various regions including the Gulf of Mexico, Brazil, West Africa, the North Sea, Australia, and Southeast Asia. As of October 2025, Transocean held a backlog of $6.7 billion, which is now bolstered by the recent contracts [4]. Financial Implications - The increase in backlog is crucial for Transocean as it directly impacts sales, earnings, and cash flows. Securing new contracts enhances the company's financial outlook, creating a positive trajectory for stakeholders [5].

Core Insights - Transocean Ltd. announced contract fixtures for one ultra-deepwater drillship and two harsh environment semisubmersibles, totaling approximately $89 million in firm contract backlog [1] - Petrobras exercised a 90-day option for the Deepwater Mykonos, contributing approximately $33 million to the backlog [1] - A two-well option was exercised for the Transocean Enabler in Norway at a dayrate of $453,000, while OMV Petrom exercised a one-well option for the Transocean Barents in Romania at a dayrate of $480,000 [2] Company Overview - Transocean is a leading international provider of offshore contract drilling services, focusing on technically demanding sectors, particularly ultra-deepwater and harsh environment drilling [3] - The company operates the highest specification floating offshore drilling fleet globally, consisting of 27 mobile offshore drilling units, including 20 ultra-deepwater floaters and seven harsh environment floaters [4]

Core Points - Vantage Drilling International Ltd. will host a conference call on November 25, 2025, at 10:00 AM Eastern Time to discuss its third-quarter operating results for 2025 [1] - The earnings release will be available on Vantage's website prior to the call [1] Accessing the Conference Call - Participants can join the conference call by completing an online registration form via the provided Call Link [2] - Two options are available for joining the call: Dial-In Option with a unique PIN or Call Me Option for an immediate callback [3] Company Overview - Vantage is an offshore drilling contractor based in Bermuda, primarily contracting drilling units and related services on a dayrate basis for oil and gas wells globally [4] - The company also provides management services for third-party-owned drilling units [4]

Financial Data and Key Metrics Changes - Revenue increased by $9.4 million quarter over quarter, with adjusted EBITDA rising 2% to $135.6 million, resulting in a margin of 48.9% [3][6] - Net income for the quarter was $27.8 million, with total operating revenues increasing due to a $2.5 million rise in day-rate revenue and a $6.4 million increase in variable charter revenue [9][6] - Free cash position at the end of Q3 was $227.8 million, with total available liquidity of $461.8 million [9][10] Business Line Data and Key Metrics Changes - The increase in day-rate revenue was primarily due to more operating days and higher day rates for specific rigs, while variable charter revenue increased due to rigs being fully operational [6][8] - Total rig operating and maintenance expenses rose by $6.3 million, mainly due to increased reimbursable expenses for the Gersemi [8] Market Data and Key Metrics Changes - The company reported a technical utilization of 97.9% and economic utilization of 97.4% across the fleet [3] - There are clear signs of demand inflection in Saudi Arabia and Mexico, with expectations of a tightening market supporting higher utilization and day-rate levels [5][19] Company Strategy and Development Direction - The company is expanding its footprint into the Gulf of Mexico and Angola, diversifying its customer base and portfolio [4][12] - The strategy includes evolving the Mexico contract portfolio to reduce exposure to Pemex and enhance payment terms [21][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued normalization of payments in Mexico, with expectations for improved payment terms and reduced working capital needs [4][39] - The outlook for the jack-up market is positive, with anticipated demand increases in key regions, including Saudi Arabia and Mexico, and a tightening supply-demand balance [5][19] Other Important Information - The company secured 22 new commitments year-to-date, adding $625 million to its backlog [12] - The full-year adjusted EBITDA is anticipated to be in the range of $450 million to $470 million, aligned with earlier expectations [22] Q&A Session Summary Question: Outlook for the global jack-up market in the next 12 to 24 months - Management indicated that the inflection in demand is driven by the recovery of headwinds in Saudi Arabia and Pemex, with utilization levels at 93% being healthy [25][26] Question: Pricing for the two-year extensions on rigs in Mexico - The day rates for the extensions are above current levels, with improved contract and payment terms [31][32] Question: Expectations for payments from Pemex - Management expects a return to normal monthly settlements and improved payment terms under new contracts [39][40] Question: Potential for M&A activity - The company is open to participating in consolidation opportunities but emphasizes maintaining the quality of its fleet and a strong balance sheet [41][44] Question: Balancing portfolio diversification and scale in markets - The company aims to expand in adjacent markets while maintaining strong operations in existing ones, with a cautious approach to new markets like the U.S. [46][47] Question: Expectations for operating cost trends - Operating costs have remained steady, with no significant changes expected in the near future [64]

Financial Data and Key Metrics Changes - Total operating revenues for Q3 2025 were $363 million, a sequential decrease of $14 million [21] - Contract drilling revenues declined by $8 million to $280 million due to fewer operating days for West Vela and Savannah, Louisiana [21] - Adjusted EBITDA was $86 million, a sequential decrease of $20 million from the prior quarter [22] - Total cash increased by $9 million to $428 million, including $26 million of restricted cash [22] Business Line Data and Key Metrics Changes - The management contract revenues decreased by $2 million to $63 million, influenced by a prior quarter catch-up for inflationary increases [21] - Reimbursable revenues decreased by $5 million to $11 million, offset by a corresponding decrease in reimbursable expenses [21] - The West Vela and Savannah, Louisiana secured new contracts, adding a combined firm term of 195 days [7][16] Market Data and Key Metrics Changes - The company added over $300 million to its backlog, bringing the total contracted backlog to approximately $2.5 billion [14] - The U.S. Gulf market showed resilience with new contracts secured, while there are expectations of potential weakness in West Africa and Brazil [27][29] - The International Energy Agency reported that nearly 90% of upstream investment since 2019 has gone towards offsetting production declines rather than adding new capacity [17] Company Strategy and Development Direction - The company aims to build backlog coverage through 2026 and minimize exposure to contract gaps [24] - A collaborative approach with customers and operational excellence are key strategies to maintain competitive edge [5] - The company is strategically positioned to capture value from the renewed focus on offshore resources amid a decade of underinvestment [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a market recovery, with signs of increased contracting momentum and global tendering activity [17] - The company highlighted the need for renewed investment in offshore drilling to meet future energy demand [12] - Management noted that the offshore industry is at an inflection point, with a shift in capital allocation towards offshore drilling [20] Other Important Information - The company has maintained a robust balance sheet with total liquidity of approximately $600 million [22] - The West Gemini is expected to commence a well-based contract in the next few months after completing its special periodic survey [6] Q&A Session Summary Question: What are the leading-edge day rates in the Golden Triangle? - Management indicated that day rates in the U.S. Gulf are resilient, while there may be some weakness in West Africa and Brazil [27][29] Question: What is the medium to long-term outlook for Asia? - Management highlighted optimism in India, Malaysia, and Indonesia, with various operators showing interest [31] Question: What are the current thoughts on potential downtime for the Capella and Carina rigs? - Management expressed confidence in minimizing exposure to downtime, with ongoing efforts to secure contracts [37][39] Question: How are conversations with Petrobras regarding cost reductions progressing? - Management noted early discussions with Petrobras, focusing on mutual benefits and potential blend and extend contracts [51][52] Question: How is economic utilization trending? - Management acknowledged a slip in economic utilization but emphasized that most rigs performed well, with a technical uptime of 97.6% excluding one incident [53][54]

Fleet Status Overview - The report is a Fleet Status Report from Seadrill Limited, dated November 5, 2025[1] - The report contains forward-looking statements and is subject to risks and uncertainties that could cause actual results to differ materially[2, 3, 4] Active Rigs - Seadrill has 13 active rigs across various locations including S E Asia, Brazil, U S Gulf, Norway and Angola[7] - 6 rigs are located in Brazil, 3 in the U S Gulf, 3 in Angola, 1 in S E Asia and 1 in Norway[7] Contract Details - West Auriga has a contract with Petrobras in Brazil until December 2027, with a total contract value at signing of approximately $577 million, including mobilization and additional services[9] - West Carina has a contract with Petrobras in Brazil until January 2026[9] - West Jupiter has a contract with Petrobras in Brazil from April 2026 to April 2029, with a total contract value at signing of approximately $525 million, including mobilization and additional services[9] - West Polaris has a contract with Petrobras in Brazil until January 2028, with a total contract value at signing of approximately $518 million, including mobilization and additional services[9] - West Tellus has a contract with Petrobras in Brazil until February/April 2026, with a total contract value at signing of approximately $539 million, including mobilization and additional services, and another contract from June 2026 to June 2029[9] - West Neptune has a contract with LLOG in the U S Gulf until November 2025/May 2026, with a total contract value at signing of approximately $86 million, excluding additional services, for an approximate 180-day duration[9] - West Vela has a contract with Walter Oil & Gas in the U S Gulf from March 2026 to May/June 2026, with a total contract value at signing of approximately $26 million, excluding MPD[9] - West Elara has a contract with ConocoPhillips in Norway until March 2028, but a notice of suspension has been received for the period from late Q3 2026 to late Q4 2027[10]

Core Viewpoint - Seadrill Limited reported a net loss of $11 million for the third quarter of 2025, a significant improvement from a net loss of $42 million in the previous quarter, while total operating revenues decreased to $363 million from $377 million [3][4][6]. Financial Highlights - Total operating revenues for Q3 2025 were $363 million, down from $377 million in Q2 2025, primarily due to lower economic utilization and fewer rig operating days [4][6]. - Contract revenues amounted to $280 million, compared to $288 million in the prior quarter [3][19]. - Adjusted EBITDA was reported at $86 million, down from $106 million in the previous quarter, with an adjusted EBITDA margin of 24.4% [3][6][27]. - The diluted loss per share improved to $0.17 from $0.68 in the prior quarter [3][19]. Operational Results - The company secured over $300 million in new contracts across five rigs, enhancing its order backlog [5][6]. - Economic utilization for the quarter was reported at 91.1%, down from 93.4% in the previous quarter [29][31]. - Total operating expenses decreased by $34 million to $337 million, with a notable reduction in management contract expenses [6][19]. Balance Sheet and Cash Flow - As of September 30, 2025, Seadrill had gross principal debt of $625 million and cash and cash equivalents of $428 million, resulting in a net debt position of $197 million [7][21]. - Net cash provided by operating activities during Q3 2025 was $28 million, with free cash flow reported at $9 million [7][32][33]. Order Backlog - Seadrill's order backlog as of November 5, 2025, was approximately $2.5 billion, reflecting the company's strong position in securing contracts [9][11].

Core Viewpoint - Sable Offshore Corp. (SOC) is experiencing significant stock volatility, with a recent price target set by Roth Capital indicating a potential upside despite current challenges in the offshore drilling industry [2][3][5] Company Overview - SOC operates in the offshore drilling industry, focusing on oil and gas exploration and extraction [1] - The company competes with major players such as Transocean and Noble Corporation, maintaining a notable market presence [1] Stock Performance - SOC's stock is currently priced at $7.27, reflecting a decrease of 30.50% or $3.19 [4][5] - The stock has fluctuated between a low of $6.79 and a high of $9.98 during the day, with a 52-week high of $35 and a low of $6.80 [4][5] - The market capitalization of SOC is approximately $723.4 million, with a trading volume of 16.6 million shares [4] Analyst Ratings - Roth Capital has set a price target of $28 for SOC, suggesting a potential upside of approximately 244.37% [2][5] - Despite the downturn, Roth Capital maintains a "buy" rating for SOC, contrasting with Weiss Ratings' "sell (d-)" rating [3] - The average rating for SOC from six equities research analysts is "Moderate Buy," with two analysts issuing a Sell rating [3]

Financial Data and Key Metrics Changes - Total revenues for the third quarter were $596 million, down from $615 million in the prior quarter, primarily due to fewer operating days for the floater fleet [29] - Adjusted EBITDA was $163 million compared to $201 million in the prior quarter, with the decrease attributed to fewer operating days and a non-recurring benefit recognized in the previous quarter [30] - Adjusted free cash flow for the quarter was $237 million, with cash flow from operations amounting to $198 million [30] Business Line Data and Key Metrics Changes - The jackup segment saw increased EBITDA year over year, driven by more operating days and higher average day rates [13] - The drillship fleet added approximately $1.4 billion of backlog year to date, representing nine years of total contract duration [16] - The total backlog now stands at $4.5 billion, significantly enhancing contract coverage for 2026 and beyond [17] Market Data and Key Metrics Changes - Global utilization for the jackup fleet remains around 90%, driven by national oil companies focused on energy security [12] - The offshore drilling market is expected to see a recovery in utilization rates, with seventh-generation drillships anticipated to exit 2026 with utilization levels around 90% [11] - Demand for offshore drilling services is developing, particularly in deepwater projects, with a robust pipeline of opportunities expected [10] Company Strategy and Development Direction - The company remains focused on operational excellence, commercial execution, and disciplined cost management to drive long-term value for shareholders [4] - A strategic focus on securing attractive contracts has resulted in all four drillships with near-term availability being contracted for work beginning next year [9] - The company is in advanced discussions for additional contracts, particularly for rigs scheduled to complete contracts in the second half of 2026 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for the offshore drilling industry, citing a need for sustained investment in oil and gas [10] - The company anticipates meaningful growth in deepwater project sanctioning over the next few years as customers pursue exploration and development [11] - Management highlighted the importance of ongoing investment to offset natural field declines, with the IEA estimating a potential 8% annual decline in global oil production without continued investment [10] Other Important Information - The company repurchased $75 million of shares during the quarter, reflecting its commitment to returning capital to shareholders [5] - The sale of the 27-year-old jackup Valaris 247 for $108 million was noted as part of the company's disciplined approach to cost management [14] - The company expects to receive approximately $70 million in upfront payments from customers this year for contract-specific upgrades [33] Q&A Session Summary Question: Share repurchase strategy and cash utilization - Management confirmed a commitment to returning capital to shareholders and indicated that repurchases would be opportunistic based on market conditions [40][42] Question: Exploration activity and customer discussions - Management noted an increase in exploration discussions, driven by the necessity to meet future energy needs, which is seen as positive for the market [46] Question: Future asset sales and shareholder returns - Management emphasized that operational cash flow will drive capital returns, with asset sales being opportunistic to enhance financial flexibility [48][50] Question: Day rates and market outlook - Management believes day rates for high-spec ships have troughed in the high $300,000s to low $400,000 range, with expectations for recovery in utilization and day rates [58][59] Question: Rig contracts and market dynamics - Management expressed confidence in securing extensions for rigs in Angola and highlighted ongoing discussions for gap-fill work for idle rigs [60][61]

Financial Data and Key Metrics Changes - The company reported contract drilling revenues of $1.03 billion for Q3 2025, with an average daily revenue of approximately $462,000, slightly above guidance due to the performance of the Deepwater Skiros [18] - Operating and maintenance expenses were $584 million, below guidance primarily due to deferred maintenance costs and a favorable legal dispute outcome [19] - Total liquidity at the end of Q3 was approximately $1.8 billion, including $833 million in unrestricted cash and $510 million from an undrawn revolving credit facility [19][20] - The company expects to end 2025 with total liquidity slightly above $1.4 billion, reflecting cash usage for debt reduction [23] Business Line Data and Key Metrics Changes - The company plans to retire nine rigs by mid-2026, including four drillships and one semi-submersible, to align with evolving costs and customer needs [6][7] - The fleet now consists of 24 contracted ultra-deepwater drillships and high-specification harsh environment semi-submersibles, with three additional seventh-generation drillships currently cold stacked [8] Market Data and Key Metrics Changes - Industry projections suggest an increase in upstream investment in offshore drilling, particularly in the deepwater segment, driven by the need to address supply imbalances [10] - The company anticipates a 10% growth in contracted floaters over the next 18 months, with stable activity in the U.S. Gulf and upcoming tenders in Brazil and Africa [11][12] Company Strategy and Development Direction - The company is focused on optimizing asset value and maintaining a disciplined approach to deploying its high-specification fleet, while also reducing debt and interest expenses [6][17] - Recent capital market transactions have allowed the company to reduce gross debt by approximately $1.2 billion and annualized interest expense by about $87 million [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in increasing deepwater utilization, projecting over 90% utilization by the end of 2026, with a potential increase in exploration activity from customers [30][31] - The company noted that customers are prioritizing free cash flow for debt reduction and are taking a measured approach to capital commitments, resulting in deferred near-term demand for drilling services [9] Other Important Information - The company achieved a revenue efficiency of 100% in September and 97.5% for the entire third quarter, reflecting strong operational performance [15] - The company is engaged with Petrobras to explore cost reduction opportunities, which could stimulate more work in Brazil [51][52] Q&A Session Summary Question: Confidence level on deepwater utilization increase - Management remains confident that utilization will exceed 90% by the end of 2026, with expectations for increased exploration activity from oil companies [30][31] Question: Discussions with Petrobras on cost reduction - The company confirmed ongoing discussions with Petrobras focused on reducing costs without materially affecting activity levels [51][52] Question: Future equity raise potential - Management indicated that they anticipate meeting obligations from cash flow and are focused on reducing debt rather than pursuing an equity raise [56][58] Question: Exploratory drilling timelines - Management noted that there is a growing conversation among customers about increasing exploration activity, with expectations for commitments to rigs in 2027 and 2028 [61][62]