Transocean Ltd (Switzerland)

To all sites on hold, we appreciate your patience in holding. We ask that you please continue to stand by. Again, to all sites on hold, we do thank you for your patience in holding. We ask that you can please continue to stand by. so so Thank you. Good day, everyone. and welcome to the Transocean fourth quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing the star and one on your touchtone phone. You may withdraw yourself from the queue by pressing star and two. Please note this call will be recorded and I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Allison Johnson, Director of Investor Relations. Please go ahead.

Thank you, Todd. Good morning and welcome to Transocean's fourth quarter 2022 earnings conference call. A copy of our press release covering financial results, along with supporting statements and schedules, including recommendations and disclosures regarding non-GAAP financial measures, are posted on our website at deepwater.com. Joining me on this morning's call are Jeremy Thigpen, Chief Executive Officer, Keelan Adamson, President and Chief Operating Officer, Mark May, Executive Vice President and Financial Officer, and Roddy McKenzie, Executive Vice President and Chief Commercial Officer. During the course of this call, Transocean Management may make certain forward-looking statements regarding various matters related to our business and company that are not historical facts. Such statements are based upon current expectations and certain assumptions, and therefore are subject to certain risks and uncertainties. Many factors could cause actual results to differ materially. Please refer to our SEC filings for our forward-looking statements and for more information regarding certain risks and uncertainties that could impact our future results. Also, please note that the company undertakes no duty to update or revise forward-looking statements. Following Jeremy, Keelan, and Mark's prepared comments, we will conduct a question-and-answer session with our team. During this time, to give more participants an opportunity to speak, please limit yourself to one initial question and one follow-up question. Thank you very much. I'll now turn the call over to Jeremy.

Thank you, Allison, and welcome to our employees, customers, investors, and analysts participating on today's call. As reported in yesterday's earnings release, for the fourth quarter, Transocean delivered adjusted EBITDA of $140 million on $625 million in adjusted revenue, resulting in an adjusted EBITDA margin of approximately 20%, which, when combined with the new fixtures we were awarded in the fourth quarter, helped us to close the full year 2022 on a very positive note. Indeed, we think that 2022 will be remembered as a pivotal year in the offshore drilling industry, particularly for Transocean. Offshore contracting activity increased significantly, driving utilization rates and day rates materially higher throughout the year. And as evidenced by our December and January contract announcements, Transocean continues to be a primary beneficiary of this heightened demand. Needless to say, the last several months have been a very busy but rewarding time for the Transocean marketing team, as they helped us to secure an incremental $1.5 billion in backlog during the quarter, bringing our full-year backlog added to approximately $4 billion. As a reminder of our recent contract awards, in the U.S. Gulf of Mexico, the Deepwater Invictus was awarded a three-well contract with an independent operator at $425,000 per day for an estimated 100 days. The contract is expected to commence in direct continuation of the RIG's current program. In Brazil, the KG2 was awarded a 910-day contract at approximately $430,000 per day, including integrated services. The contract is expected to start in the third quarter this year. Also in Brazil, the contracts for the previously disclosed selection of Deepwater Corcovado and Deepwater Orion for the pool tender have been finalized. As a reminder, Deepwater Corcovado was awarded a four-year contract at $399,000 per day and is expected to begin in direct continuation of the RIG's current program. The Deepwater Orion was awarded a three-year contract at $416,000 per day and is expected to commence in the fourth quarter of this year. In Suriname, Coppell Energy surcized a one-well option at a rate of $360,000 per day on its contract with Development Driller 3. The incremental well is expected to last 90 days and keeps the rig busy through the third quarter. In Norway, some previously disclosed options under the Transition Norgate contract with Wintherthorshaw DEA and OMB are now firm. The average day rate for this incremental term of 773 days is approximately $428,000 per day. In the UK North Sea, TransOcean Barrens was awarded a one-well contract with a major operator at a rate of $310,000 per day. The work is anticipated to commence this quarter and last approximately 110 days. Finally, and also in the UK North Sea, Harbor Energy exercised the third option on its contract with Paul B. Lloyd Jr. for eight P&A wells at $175,000 per day. The additional term is expected to last 275 days and extends the contract to the third quarter of 2024. As you've no doubt seen, our finance and legal organizations have also been extremely busy supporting a variety of transactions. In November, we announced our minority stake in Laquila Ventures, a joint venture with Lime Rock Partners in Perestroika. We're excited to partner with these two organizations that have a deep... understanding of the offshore drilling market to bring Deepwater Aquila, another high hook load ultra deepwater drill ship, to the market. As part of the agreement with our joint venture partners, Transocean maintains the exclusive right to market and manage the operations of this rig. In early January, we raised secure financing on the Deepwater Titan, and we also refined a certain series of our secured notes, improving our liquidity. Mark will discuss these and other efforts to simplify our balance sheet in a few moments. Additionally, earlier this month, we announced our investment in Global Sea Mineral Resources, or GSR, a deep sea minerals exploratory company, which included the contribution of one of our stacked drill ships, Ocean Rig Olympia. The Olympia was an optimal candidate for this transaction based on a number of criteria, including hull size and ease of conversion to a nodule collection vessel. The contribution of this rig also further rationalizes the global fleet of the nine environment floaters, and we believe will... ultimately proved to be a better use of this asset, benefiting our shareholders over time. In exchange for our investment, TransOcean received a non-controlling interest in GSR, with GSR responsible for operations of the vessel. This is TransOcean's second investment in the deep sea minerals exploration industry. As you recall, last year we purchased a minority interest in Ocean Minerals Limited. Through these transactions, we are excited to play a role in contributing to the diversification of global energy supply and a lower carbon economy. Our projects and operations teams also accomplished key objectives throughout 2022. Notably, the Deepwater Atlas commenced its major contract with Beacon Offshore, and we took delivery of the Deepwater Titan from the shipyard. I'm very pleased to share that in just its first few months of operation, the Atlas has already set a new record for the longest 14-inch casing run, nearly 3.8 miles, likely the first of many records to be set with this new class of drilling assets. In fact, at this time, I'll hand it over to Keelan to further discuss these two state-of-the-art eighth-generation drill ships. Keelan?