Transocean Ltd (Switzerland)

Please stand by. Your program is about to begin. If you need audio assistance during today's program, please press star zero. Good day, everyone, and welcome to today's Q4 2024 Transocean Earnings 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, then the one key on your telephone keypad. You may withdraw yourself from the queue by pressing the star two key. Please note today's conference is being recorded. 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, Margo. Good morning, and welcome to TransOcean's fourth quarter 2024 earnings conference call. A copy of our press release covering financial results along with supporting statements and schedules, including reconciliations 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, Thad Veda, Executive Vice President and Chief 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 Thad'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. 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 disclosed in yesterday's earnings release, for the fourth quarter, Transocean reported adjusted EBITDA of $323 million on $952 million of adjusted contract drilling revenues, resulting in an adjusted EBITDA margin of approximately 34%. For the full year 2024, we delivered adjusted EBITDA of $1.15 billion on approximately $3.5 billion of adjusted contract drilling revenues, resulting in an adjusted EBITDA margin of approximately 33%. 2024 was a year that once again demonstrated the strong preference our customers have for Transocean's industry-leading high specification fleet and services. I do not believe that there has been a single moment in the previous decade that has better illustrated our industry leadership and the trust our customers place in Transocean as clearly as in the past year. As we outlined in great detail on the third quarter earnings call, throughout the year, Transocean continued to book market-leading rates, even as excess capacity was obviously emerging among our competitors' fleet. While our customers, who are extremely astute, observed an upcoming availability of assets they still awarded us with several contracts approaching and exceeding $500,000 per day for our high-hook load 7th Gen Plus assets and more than $600,000 per day for our 8th Gen 20K assets, clearly demonstrating their recognition of the value that Transocean creates in the delivery of their wells. In addition to many of our headline-grabbing announcements, elsewhere in the fleet, in December, we announced that Reliance Industries exercised a four-well option for the KG-1 in India at a rate of $410,000 per day. The rig is now expected to remain in India on its firm program through the end of 2027 and will generate strong cash flow throughout that period, representing very good value for both us and our customer. And in January, an eight-day option was exercised on the Transocean Endurance by its customer in Australia at a rate of $390,000 per day. Given that our active fleet is near full utilization through mid-2026, we are primarily focused on opportunities that commence in mid to late 2026, And I'm pleased to report that we are in direct discussions with a number of customers on multi-year term opportunities on our rigs with availability in 2026. Before I cover those specific opportunities and our view of the market by region, I will hand it over to Keelan to review key operational milestones and technology deployments over the past year.