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]

Investor Presentation O c t o b e r 2 0 2 5 Forward-Looking Statements Statements contained in this investor presentation that are not historical facts are 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 words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "likely," "outlook," "plan," "project," "could," "may," "might," "s ...

Core Insights - Transocean Ltd. reported a net loss attributable to controlling interest of $1.92 billion, or $2.00 per diluted share, for the three months ended September 30, 2025, reflecting significant unfavorable items impacting financial performance [1][2][3]. Financial Performance - Contract drilling revenues increased sequentially by $40 million to $1.03 billion, driven by improved rig utilization, revenue efficiency, and an increase in dayrate for one rig, despite lower revenues from an idle rig [3][4]. - Operating and maintenance expenses decreased to $584 million from $599 million in the prior quarter, primarily due to lower expenses on a rig that completed a special periodic survey [4]. - Adjusted EBITDA for the quarter was $397 million, with an adjusted EBITDA margin of 38.7%, up from 34.9% in the previous quarter [1][8]. Loss and Adjustments - The third quarter included net unfavorable items totaling $1.985 billion, leading to an adjusted net income of $62 million, or $0.06 earnings per diluted share [2][8]. - The effective tax rate was (1.4)%, a decrease from 14.2% in the prior quarter, mainly due to losses on rig impairments [6][7]. Cash Flow and Debt Management - Cash provided by operating activities was $246 million, an increase of $118 million compared to the prior quarter, attributed to a reduction in working capital [7]. - The company took steps to reduce total debt by approximately $1.2 billion by the end of 2025, which is expected to lower annual interest expense by about $83 million [8]. Fleet and Operational Statistics - As of September 30, 2025, Transocean's backlog stood at $6.7 billion, indicating a strong pipeline of future work [1]. - The average daily revenue for ultra-deepwater floaters was $460,200, while for harsh environment floaters it was $467,100, contributing to a total fleet average daily revenue of $462,300 [28]. Summary of Financial Metrics - For the nine months ended September 30, 2025, contract drilling revenues totaled $2.92 billion, compared to $2.57 billion for the same period in 2024 [21]. - The company reported a net loss of $2.94 billion for the nine months ended September 30, 2025, compared to a loss of $519 million for the same period in 2024 [26].

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $254 million for Q3 2025, with a free cash flow of $139 million and a cash balance of $478 million, up $140 million from the previous quarter [4][14][15] - Contract drilling services revenue for Q3 totaled $798 million, with an adjusted EBITDA margin of 32% [14] - The total backlog as of October 27 stands at $7 billion, with approximately $2.4 billion and $1.9 billion scheduled for revenue conversion in 2026 and 2027, respectively [15][16] Business Line Data and Key Metrics Changes - The company achieved operational uptime and HSE performance, with significant achievements in well construction and completion activities in Guyana and the U.S. Gulf [5][6] - The backlog increased to $7 billion, supported by key contract awards, including extensions for the Noble Black Lion and Noble Black Hornet rigs [7][10] Market Data and Key Metrics Changes - The committed UDW rig count is approximately 100 rigs, with marketed utilization slightly up to low 90% [10] - Deepwater contracting momentum is on an uptrend, with an average of 18 UDW rig years per quarter fixed in Q2 and Q3, up 10% compared to the preceding two years [10] Company Strategy and Development Direction - The company is focused on maintaining a robust return of capital program and a prudent balance sheet position, with expectations for a healthy EBITDA and cash flow inflection late next year [19] - The management emphasized the importance of deepwater in the global upstream supply stack, indicating a strategic long-term focus on deepwater exploration [22][67] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the tightening of the deepwater market, with expectations for increased activity in late 2026 and 2027 [21][43] - The company is closely monitoring customer budget announcements, which have been less inspiring, but noted the resiliency of rig contracting activity despite macroeconomic challenges [22][66] Other Important Information - The company plans to provide 2026 guidance in the next quarter's earnings call [16] - The management is focused on cost management and optimizing cash flow, with ongoing discussions around contract opportunities for available rigs [12][76] Q&A Session Summary Question: Thoughts on improving utilization for high-spec floater fleet - Management indicated that discussions are ongoing for rigs like the Noble Viking, Jerry DeSouza, and Black Rhino, with a target of achieving 90 to 100% utilization by the second half of 2026 [25][31] Question: Details on Diamond Offshore BOP leases - Management explained the termination of the service agreement and the lease agreement, with a total cash outlay of up to $135 million expected, offset by annual savings of approximately $45 million [26][27] Question: Expectations for first half of 2026 - Management noted that there is limited work expected in the first half of 2026, with a more favorable outlook for the second half of the year [40][41] Question: Confidence in deepwater utilization recovery - Management expressed cautious optimism based on existing contracts and market tightening, indicating that day rates may have bottomed [43] Question: Demand in West Africa and macroeconomic sentiment - Management acknowledged that West Africa is a long-cycle region and noted a mix of firm and delayed project timelines, with overall demand expected to improve in late 2026 and 2027 [71][72]