Seadrill Limited

Thank you for standing by. At this time, I would like to welcome everyone to the CEDRIL first quarter 2026 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. Today, we ask that you limit to one question and one follow up. If you would like to ask a question, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, Press star one again. Thank you. I would now like to turn the call over to Kevin Smith. Please proceed.

Hello, and welcome to CEDRAL's first quarter 2026 earnings call. I'm Kevin Smith, Vice President of Corporate Finance and Investor Relations, and I'm joined today by Samira Lee, President and Chief Executive Officer, Grant Creed, Executive Vice President and Chief Financial Officer, and Jacob Taylor, Vice President Commercial. Our call will include forward-looking statements that involve risks and certainty. Actual results may differ materially. No one should assume these forward-looking statements remain valid later in the quarter or year, and we assume no obligation to update them except as required by securities laws. Our filings with the U.S. Securities and Exchange Commission provide a more detailed discussion of our forward-looking statements and the risk factors affecting our business. During the call, we will also reference non-GAAP measures. Our earnings release, furnished to the SEC and available on our website, includes reconciliations with the nearest corresponding GAAP measures. Our use of the term EBITDA on today's call corresponds with the term adjusted EBITDA as defined in our earnings release. I'll now turn the call over to Sameer.

Thanks, Kevin. Welcome, everyone, and thank you for joining us. I'll begin with CEDRAL's key priorities, followed by first quarter highlights, including recent contract awards, and a brief market update. Grant will then review our financial results and speak to our improved full year 2026 guidance before I close with final remarks. CDRIL's priorities continue to be driven by our motto of focus on the drill bit. It reflects the fundamentals of our business and the standards we hold ourselves to every day. First and foremost, Operational discipline underpins everything we do. Our goal is to deliver safe, efficient, and reliable operations across our fleet with a focus on zero incidents while maximizing uptime. This is supported by an adherence to our procedures, disciplined risk management, and systematically learning from our experiences. By identifying issues early, closing gaps quickly, and applying lessons learned across our fleet, We seek to strengthen CEDRAL's performance quarter over quarter. Next, we are sharpening our focus on free cash flow. This means winning the right contracts and then effectively converting that backlog into cash. It also means delivering projects on time and on budget, while continuing to simplify our onshore organization so every dollar spent supports value creation. Third, we are committed to capturing the upside ahead of us. Three legacy dairy contracts roll off in 2026, and we have already recontracted two of the associated rigs, an important milestone that strengthens our earnings and cash flow profiles this year. As we look ahead, we believe the opportunity to reprice the West Carina at current market rates, combined with our contracting leverage in an improving market, positions us for meaningful earnings and free cash flow growth in 2027. Executing ANSI's priorities is reflected in our first quarter performance. but the Westalis re-acceptance and the West Capella reactivation projects were completed ahead of schedule and on budget, enabling early startup and revenue generation. We delivered a solid quarter both financially and operationally with EBITDA of $97 million and strong economic utilization. As a result of this performance, we are raising full-year revenue and EBITDA guidance, which Grant will cover in more detail. Importantly, We remain on track for meaningful free cash flow generation starting in the second half of 2026. I want to extend a special thank you to our offshore crews for the tremendous work delivered this quarter. Our performance is driven by your collaboration and operational discipline, and your continued efforts strengthen Sea Drill's position as a leader in deepwater drilling. Turning to our contract awards, since our last call, we have added approximately $860 million to our backlog. In the U.S. Gulf, industry-leading performance continues to translate into follow-on work. In April, the West Neptune and West Vela each secured new contracts with LOG, adding approximately $260 million to our backlog. We are pleased to expand our relationship with LOG, now a subsidiary of Harbor Energy, and look forward to supporting their ambitions to establish a leading position in the U.S. Gulf with a second drill ship now unlocking valuable resources. Last quarter, we noted that seven drill ships were expected to roll off contract in the U.S. Gulf before year end. Removing white space for both of our drill ships in the region significantly improves revenue visibility and reduces idle time in 2026 for CEDRAL. Both rigs are now positioned to capitalize on improving supply-demand fundamentals in 2027 as other assets find work or leave the region. Ultimately, we believe improving market utilization will drive the potential upward day rate momentum. In Angola, the Songon Kingela had a seven well-priced option exercised, committing the rig into mid-2028. Lastly, in Brazil, the West Polaris was awarded a three-year extension with Petrobras in direct continuation of the current program, extending a six-generation drill trip into the next decade. Consistent with our focus on free cash flow, this extension has no additional CapEx requirements and does not require lengthy acceptance testing normally found in Petrobras contracts. In addition, we now anticipate the West Carina will remain on contract until mid-June. We continue to see a strong demand pipeline driven by growing deepwater exploration as operators intensify efforts to secure future growth. There's a clear shift amongst majors and large independents towards allocating incremental capital to deepwater, addressing the exploration underinvestment of the past decade and offsetting production declines. At an industry conference in March, the largest operators in the world highlighted the reality of production declines and the maturation of onshore plays. Chevron's CEO noted that the natural decline of existing fields as a growing supply challenge. He described the loss as the equivalent of five Saudi Arabias over the next decade. Similarly, ConocoPhillips' CEO noted that the peak in shale output has helped shape their strategy of targeting major new conventional discoveries. This decline, coupled with recent exploration successes from ENI in Indonesia, Egypt, and Libya, Petrobras in Brazil and Colombia, and Oxy in the U.S. Gulf, to name just a few, further strengthens our thesis that a new exploration cycle is emerging. At the start of the year, geopolitical tensions pushed import-dependent economies to prioritize energy security, with examples such as India's initiative to drill approximately 150 wells over seven years amid sanctions on Russian crude. The Iran conflict has further intensified this focus, reinforcing the need for domestically anchored supply, where deepwater will be the beneficiary. With production shortfalls already hundreds of millions of barrels and pressure to rebuild strategic reserves, deepwater resources are becoming increasingly attractive and even better positioned for development. Energy security is back in vogue. In summary, Sentiment has improved since our last call. Demand in Brazil has crystallized, with several multi-year extensions recently awarded. Despite a softer 26 in the U.S. Gulf, we've contracted both of our drill ships in a highly competitive environment. Going forward, we expect available capacity to be redeployed across the Atlantic Basin towards the eastern hemisphere, where demand continues to strengthen. Taken together, rising demand from deepwater exploration and a renewed focus on energy security, increases our confidence in an improving 2027, and a firmer commodity backdrop provides an additional tailwind for offshore project economics. With that, I'll hand the call over to Grant.