Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | VANTAGE DRILLING INTERNATIONAL | |
Entity Central Index Key | 0001465872 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 13,229,280 | |
Entity File Number | 333-159299 | |
Entity Tax Identification Number | 98-1372204 | |
Entity Address, Address Line One | 777 Post Oak Boulevard | |
Entity Address, Address Line Two | Suite 440 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77056 | |
City Area Code | 281 | |
Local Phone Number | 404-4700 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | E9 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 79,650 | $ 74,026 |
Restricted cash | 455 | 16,450 |
Trade receivables, net of allowance for credit losses of $3,850 and $4,962, respectively | 83,109 | 62,776 |
Materials and supplies | 44,759 | 41,250 |
Prepaid expenses and other current assets | 40,166 | 25,621 |
Total current assets | 248,139 | 220,123 |
Property and equipment | ||
Property and equipment | 649,910 | 647,909 |
Accumulated depreciation | (330,911) | (309,453) |
Property and equipment, net | 318,999 | 338,456 |
Operating lease ROU assets | 812 | 1,648 |
Other assets | 12,659 | 18,334 |
Total assets | 580,609 | 578,561 |
Current liabilities | ||
Accounts payable | 55,570 | 57,775 |
Other current liabilities | 65,770 | 66,179 |
Total current liabilities | 121,340 | 123,954 |
Long-term debt, net of discount and financing costs of $11,080 and $773, respectively | 188,920 | 179,227 |
Other long-term liabilities | 9,678 | 12,881 |
Commitments and contingencies (see Note 8) | ||
Shareholders' equity | ||
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,229,280 and 13,115,026 shares issued and outstanding, each period | 13 | 13 |
Additional paid-in capital | 633,605 | 633,863 |
Accumulated deficit | (373,971) | (373,147) |
Controlling interest shareholders' equity | 259,647 | 260,729 |
Noncontrolling interests | 1,024 | 1,770 |
Total equity | 260,671 | 262,499 |
Total liabilities and shareholders' equity | $ 580,609 | $ 578,561 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 3,850 | $ 4,962 |
Long-term debt, discount and financing costs | $ 11,080 | $ 773 |
Ordinary shares, par value | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 |
Ordinary shares, shares issued | 13,229,280 | 13,115,026 |
Ordinary shares, shares outstanding | 13,229,280 | 13,115,026 |
Consolidated Statement of Opera
Consolidated Statement of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue | ||||
Total revenue | $ 107,840 | $ 73,238 | $ 184,912 | $ 131,569 |
Operating costs and expenses | ||||
Operating costs | 74,383 | 59,405 | 140,938 | 103,338 |
General and administrative | 5,161 | 6,910 | 9,992 | 13,492 |
Depreciation | 11,045 | 11,087 | 22,094 | 22,382 |
(Gain) loss on EDC Sale | (60,781) | 3 | (60,781) | |
Total operating costs and expenses | 90,589 | 16,621 | 173,027 | 78,431 |
Income from operations | 17,251 | 56,617 | 11,885 | 53,138 |
Other (expense) income | ||||
Interest income | 141 | 7 | 190 | 11 |
Interest expense and other financing charges | (5,346) | (8,503) | (10,904) | (17,007) |
Other, net | (457) | (1,011) | (135) | (1,786) |
Total other expense | (5,662) | (9,507) | (10,849) | (18,782) |
Income before income taxes | 11,589 | 47,110 | 1,036 | 34,356 |
Income tax provision (benefit) | 10,584 | (1,221) | 2,606 | 217 |
Net income (loss) | 1,005 | 48,331 | (1,570) | 34,139 |
Net (loss) income attributable to noncontrolling interests | (457) | 232 | (746) | 938 |
Net income (loss) attributable to shareholders | $ 1,462 | $ 48,099 | $ (824) | $ 33,201 |
Earnings (loss) per share, basic | ||||
Basic | $ 0.11 | $ 3.67 | $ (0.06) | $ 2.53 |
Earnings (loss) per share, diluted | ||||
Diluted | $ 0.11 | $ 3.61 | $ (0.06) | $ 2.49 |
Contract Drilling Services | ||||
Revenue | ||||
Total revenue | $ 67,673 | $ 42,744 | $ 115,590 | $ 87,657 |
Management Fees | ||||
Revenue | ||||
Total revenue | 5,569 | 2,840 | 7,689 | 3,943 |
Reimbursables and Other | ||||
Revenue | ||||
Total revenue | $ 34,598 | $ 27,654 | $ 61,633 | $ 39,969 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Non-Controlling Interests |
Beginning Balance at Dec. 31, 2021 | $ 265,851 | $ 13 | $ 633,847 | $ (369,792) | $ 1,783 |
Beginning Balance (in shares) at Dec. 31, 2021 | 13,115 | ||||
Share-based compensation | 26 | 26 | |||
Share-based compensation - dividend equivalents | (63) | (63) | |||
Net (loss) income | (14,192) | (14,898) | 706 | ||
Ending Balance at Mar. 31, 2022 | 251,622 | $ 13 | 633,810 | (384,690) | 2,489 |
Ending Balance (in shares) at Mar. 31, 2022 | 13,115 | ||||
Beginning Balance at Dec. 31, 2021 | 265,851 | $ 13 | 633,847 | (369,792) | 1,783 |
Beginning Balance (in shares) at Dec. 31, 2021 | 13,115 | ||||
Net (loss) income | 34,139 | ||||
Ending Balance at Jun. 30, 2022 | 299,971 | $ 13 | 633,828 | (336,591) | 2,721 |
Ending Balance (in shares) at Jun. 30, 2022 | 13,115 | ||||
Beginning Balance at Mar. 31, 2022 | 251,622 | $ 13 | 633,810 | (384,690) | 2,489 |
Beginning Balance (in shares) at Mar. 31, 2022 | 13,115 | ||||
Share-based compensation | 18 | 18 | |||
Net (loss) income | 48,331 | 48,099 | 232 | ||
Ending Balance at Jun. 30, 2022 | 299,971 | $ 13 | 633,828 | (336,591) | 2,721 |
Ending Balance (in shares) at Jun. 30, 2022 | 13,115 | ||||
Beginning Balance at Dec. 31, 2022 | $ 262,499 | $ 13 | 633,863 | (373,147) | 1,770 |
Beginning Balance (in shares) at Dec. 31, 2022 | 13,115,026 | 13,115 | |||
Share-based compensation issuance of shares | 114 | ||||
Shares repurchased to settle withholding taxes | $ (246) | (246) | |||
Share-based compensation | 11 | 11 | |||
Share-based compensation - dividend equivalents | (37) | (37) | |||
Net (loss) income | (2,575) | (2,286) | (289) | ||
Ending Balance at Mar. 31, 2023 | 259,652 | $ 13 | 633,591 | (375,433) | 1,481 |
Ending Balance (in shares) at Mar. 31, 2023 | 13,229 | ||||
Beginning Balance at Dec. 31, 2022 | $ 262,499 | $ 13 | 633,863 | (373,147) | 1,770 |
Beginning Balance (in shares) at Dec. 31, 2022 | 13,115,026 | 13,115 | |||
Net (loss) income | $ (1,570) | ||||
Ending Balance at Jun. 30, 2023 | $ 260,671 | $ 13 | 633,605 | (373,971) | 1,024 |
Ending Balance (in shares) at Jun. 30, 2023 | 13,229,280 | 13,229 | |||
Beginning Balance at Mar. 31, 2023 | $ 259,652 | $ 13 | 633,591 | (375,433) | 1,481 |
Beginning Balance (in shares) at Mar. 31, 2023 | 13,229 | ||||
Share-based compensation | 14 | 14 | |||
Net (loss) income | 1,005 | 1,462 | (457) | ||
Ending Balance at Jun. 30, 2023 | $ 260,671 | $ 13 | $ 633,605 | $ (373,971) | $ 1,024 |
Ending Balance (in shares) at Jun. 30, 2023 | 13,229,280 | 13,229 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net (loss) income | $ (1,570) | $ 34,139 |
Adjustments to reconcile net income (loss) to net cash used in operating activities | ||
Depreciation | 22,094 | 22,382 |
Amortization of debt financing costs | 862 | 820 |
Share-based compensation expense | 25 | 44 |
Loss on debt extinguishment | 703 | 0 |
Deferred income tax expense | 733 | 410 |
Gain on disposal of assets | 0 | (1,630) |
(Gain) loss on EDC Sale | 3 | (60,781) |
Changes in operating assets and liabilities: | ||
Trade receivables, net | (20,333) | (58,864) |
Materials and Supplies | (3,509) | (1,811) |
Prepaid expenses and other current assets | (5,379) | 3,369 |
Other assets | 5,269 | (25,043) |
Accounts payable | (2,205) | 29,564 |
Other current liabilities and other long-term liabilities | (7,773) | 17,696 |
Net cash used in operating activities | (11,080) | (39,705) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to property and equipment | (2,637) | (7,736) |
Net proceeds from EDC sale | 0 | 200,000 |
Net proceeds from sale of assets | 0 | 3,100 |
Net cash (used in) provided by investing activities | (2,637) | 195,364 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repayment of long-term debt | (180,000) | 0 |
Shares repurchased for tax withholdings on settlement of RSUs | (246) | 0 |
Payments of dividend equivalents | (5,278) | 0 |
Debt issuance costs | (5,645) | 0 |
Net cash provided by financing activities | 2,831 | 0 |
Net (decrease) increase in unrestricted and restricted cash and cash equivalents | (10,886) | 155,659 |
Unrestricted and restricted cash and cash equivalents—beginning of period | 93,257 | 90,608 |
Unrestricted and restricted cash and cash equivalents—end of period | 82,371 | 246,267 |
Cash paid for: | ||
Interest | 5,179 | 16,229 |
Income taxes (net of refunds) | 6,657 | 686 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | ||
Accrued debt issuance costs | 227 | 0 |
Accrued additions to property and equipment | 0 | 8,908 |
9.50% First Lien Notes | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from notes | $ 194,000 | $ 0 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 1,462 | $ 48,099 | $ (824) | $ 33,201 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Recent Events
Organization and Recent Events | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Recent Events | 1. Organization and Recent Events Vantage Drilling International, a Cayman Islands exempted company, together with its consolidated subsidiaries (collectively the “Company”), is an international offshore drilling company focused on operating a fleet of modern, high specification drilling units. Our principal business is to contract drilling units, related equipment and work crews, primarily on a dayrate basis to drill oil and gas wells for our customers. Through our fleet of drilling units, we are a provider of offshore contract drilling services to major, national and independent oil and gas companies, focused on international markets. Additionally, for third party owned drilling units, we provide operations and marketing services for operating and stacked rigs, construction supervision services for rigs that are under construction, and preservation management services for rigs that are stacked. Redemption of the 9.25% First Lien Notes On February 3, 2023, the Company issued a notice of full conditional redemption to the then existing recordholders (the “Notice of Full Conditional Redemption”) of the remaining portion of the 9.25% First Lien Notes then outstanding after the partial redemption consummated in December 2022. The balance of the 9.25% First Lien Notes was redeemed in full on March 6, 2023 with proceeds derived from the issuance of the 9.50% First Lien Notes (as discussed immediately below). See “ Note 5. Debt ” of these “Notes to Unaudited Consolidated Financial Statements” for further information regarding the Notice of Full Conditional Redemption. 9.50% First Lien Notes Offering On February 14, 2023, the Company priced an offering of $ 200.0 million in aggregate principal amount of the 9.50% First Lien Notes and entered into a purchase agreement with several investors pursuant to which the Company agreed to sell the 9.50% First Lien Notes (the “9.50% First Lien Notes Offering”) to the purchasers in reliance on an exemption from registration provided by Section 4(a)(2), Rule 144A and/or Regulation S of the Securities Act. On March 1, 2023, the Company closed on the sale of the 9.50% First Lien Notes. See “ Note 5. Debt ” of these “Notes to Unaudited Consolidated Financial Statements” for further information regarding the 9.50% First Lien Notes Offering. The Aquadrill Merger and the Termination of Certain Agreements VHI previously entered into a framework agreement with Aquadrill LLC (“Aquadrill”) on February 9, 2021 (the “Framework Agreement”), and, certain subsidiaries of VHI (the “VHI Entities”) subsequently entered into a series of related management and marketing agreements (collectively, the “Marketing and Management Agreements” and together with the Framework Agreement, the “Framework, Management and Marketing Agreements”) with certain subsidiaries of Aquadrill (collectively, the “Aquadrill Entities”). Pursuant to the Framework, Management and Marketing agreements, the VHI Entities agreed to provide certain marketing and operational management services with respect to the Capella , Polaris and Aquarius floaters . As of August 8, 2023, the Capella and the Polaris were performing drilling services for clients under their respective drilling contracts, while the Aquarius is currently in Norway and is no longer under the Company’s management. Pursuant to the terms of the Framework, Management and Marketing Agreements, the Company is eligible to receive the following fees associated with the management and marketing of the Aquadrill rigs: (i) first, the Company is to be paid a fixed management fee of $ 2,000 , $ 4,000 , $ 6,000 and $ 10,000 per day to manage a cold stacked rig, warm stacked rig, reactivating rig or operating rig, respectively (provided, that, certain discounts are to be provided on the management fee associated with cold stacked rigs to the extent there are more than one such rigs managed by the Company for Aquadrill); (ii) second, there are certain bonus/malus amounts that are applied to the fixed management fee that are contingent on whether the actual expenditures for a particular rig that is stacked, mobilizing, being reactivated or preparing for a contract exceed or come in under budget; (iii) third, the Company is eligible to receive a marketing fee of 1.5 % of the effective day rate of a drilling contract secured for the benefit of Aquadrill; (iv) fourth, the Company is eligible to earn a variable fee equal to 13 % of the gross margin associated with managing an operating rig for Aquadrill; and (v) lastly, all costs incurred by the Company are reimbursed by Aquadrill (other than incremental overhead costs incurred by Vantage). In accordance with the terms of the Framework, Marketing and Management Agreements, Aquadrill may also terminate such agreements upon 90 days’ notice (the “Notice Termination Period”), subject to certain conditions set forth in such agreements. On December 23, 2022, Seadrill Ltd. announced that it had entered into a merger agreement with Aquadrill, pursuant to which Aquadrill would become a wholly owned subsidiary of Seadrill Ltd. (the “Aquadrill Merger”), and on April 3, 2023, Seadrill Ltd. announced that it had closed the Aquadrill Merger. Subsequent to the Aquadrill Merger, Aquadrill was renamed to Seadrill LLC (”Seadrill”). On April 10, 2023, we received a notice of termination (the “Termination Notice”) of the management agreement (the “ Aquarius Management Agreement”) and marketing agreement with respect to the Aquarius (the “ Aquarius Marketing Agreement,” and together with the Aquarius Management Agreement, the “ Aquarius Agreements”), and the marketing agreements with respect to the Capella and Polaris (the “ Capella and Polaris Marketing Agreements”), in each case as a result of the Aquadrill Merger. Given that the Notice Termination Period has now lapsed, we are therefore no longer managing or marketing the Aquarius nor eligible to earn management fees under the Aquarius Management Agreement as of July 9, 2023. Notwithstanding the termination of the Aquarius Agreements and the Capella and Polaris Marketing Agreements, certain provisions survived such termination and, therefore, to the extent that a drilling contract(s) is secured and executed in respect of outstanding bids or tenders for the Aquarius , Polaris and/or Capella , we will still be eligible to earn the marketing fee in respect of such secured and executed contracts, as well as in respect of existing drilling contracts. Moreover, as the management agreements with respect to the Capella and Polaris remain in effect as of the date hereof, we continue to manage and operate those rigs for Seadrill Ltd. (and for the oil and gas clients under their respective drilling contracts) and therefore, remain eligible to receive the management and variable fees described immediately above. Nevertheless, there is no guarantee that such arrangements will remain in place in the near- and long-term and any further terminations of such arrangements could have a material impact on our financial condition and future results of operations. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies Basis of Consolidation: The accompanying interim consolidated financial information as of June 30, 2023, and for the three and six months ended June 30, 2023 and 2022, has been prepared without audit, pursuant to the rules and regulations promulgated by the SEC, and includes our accounts and those of our majority owned subsidiaries and VIEs (as discussed below). All significant intercompany transactions and accounts have been eliminated. They reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the financial position and results of operations for the interim periods, on a basis consistent with the annual audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC, although we believe that the disclosures made are adequate to provide for fair statement. Our Consolidated Balance Sheet at December 31, 2022 is derived from our audited consolidated financial statements for the year ended December 31, 2022. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on March 31, 2023. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods. Certain previously reported amounts have been reclassified to conform to the current period presentation. In addition to the consolidation of our majority owned subsidiaries, we also consolidate VIEs when we are determined to be the primary beneficiary of a VIE. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our determination of the primary beneficiary of a VIE considers all relationships between us and the VIE. ADVantage is a joint venture company formed to operate deepwater drilling rigs in Egypt. We determined that ADVantage met the criteria of a VIE for accounting purposes because its equity at risk was insufficient to permit it to carry on its activities without additional subordinated financial support from us. We also determined that we are the primary beneficiary for accounting purposes since we are entitled to use ADVantage for deepwater drilling contract opportunities rejected by ADES, and have the (a) power to direct the operating activities associated with the deepwater drilling rigs, which are the activities that most significantly impact the entity’s economic performance, and (b) obligation to absorb losses or the right to receive a majority of the benefits that could be potentially significant to the VIE. As a result, we consolidate ADVantage in our consolidated financial statements, we eliminate intercompany transactions and we present the interests that are not owned by us as “Noncontrolling interests” in our Consolidated Balance Sheets. The carrying amount associated with ADVantage was as follows: June 30, 2023 December 31, 2022 (unaudited, in thousands) Current assets $ 4,380 $ 11,383 Non-current assets 736 1,590 Current liabilities 983 4,749 Non-current liabilities 2,068 4,637 Net carrying amount $ 2,065 $ 3,587 As ADVantage is a majority owned subsidiary of the Company, it serves as a guarantor under the 9.50% First Lien Indenture. The 9.50% First Lien Notes are secured by a first priority lien on all of the assets of ADVantage, subject to certain exceptions. Creditors’ recourse against ADVantage for liabilities of ADVantage is limited to the assets of ADVantage. See “ Note 9. Supplemental Financial Information ” of these “Notes to Unaudited Consolidated Financial Statements” for additional information regarding related party transactions associated with this joint venture. Use of Estimates: The preparation of financial statements in accordance with U.S. GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to property and equipment, income taxes, insurance, employee benefits and contingent liabilities. Actual results could differ from these estimates. Cash and Cash Equivalents: Includes deposits with financial institutions and compliant financial instruments with maturities of three months or less when purchased. Materials and Supplies: Consists of materials, spare parts, consumables and related supplies for our drilling rigs. We record these materials and supplies at their average cost. Property and Equipment: Consists of our drilling rigs, furniture and fixtures, computer equipment and capitalized costs for computer software. Drilling rigs are depreciated on a component basis over estimated useful lives ranging from five to 35 years on a straight-line basis as of the date placed in service. Other assets are depreciated upon placement in service over estimated useful lives ranging from three to seven years on a straight-line basis. When assets are sold, retired or otherwise disposed of, the cost and related accumulated depreciation are removed from our Consolidated Balance Sheets and the resulting gain or loss is included in “Operating costs” or “General and administrative” expenses on the Consolidated Statement of Operations, depending on the nature of the asset. For the three and six months ended June 30, 2022, we recognized a net loss of approximately $ 0.3 million and net gain of approximately $ 1.6 million, respectively, r elated to the sale or retirement of assets. The gain/loss related to the sale or retirement of assets for the three and six months ended June 30, 2023 was immaterial. We evaluate the realization of property and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss on our property and equipment exists when estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Any impairment loss recognized would be computed as the excess of the asset’s carrying value over the estimated fair value. Estimates of future cash flows require us to make long-term forecasts of our future revenues and operating costs with regard to the assets subject to review. Our business, including the utilization rates and dayrates we receive for our drilling rigs, depends on the level of our customers’ expenditures for oil and gas exploration, development and production expenditures. Oil and gas prices and customers’ expectations of potential changes in these prices, the general outlook for worldwide economic growth, political and social stability in the major oil and gas producing basins of the world, availability of credit and changes in governmental laws and regulations, among many other factors, significantly affect our customers’ levels of expenditures. Sustained declines in or persistent depressed levels of oil and gas prices, worldwide rig counts and utilization, reduced access to credit markets, reduced or depressed sale prices of comparably equipped jackups and drillships and any other significant adverse economic news could require us to evaluate the realization of our drilling rigs. As of June 30, 2023, no triggering event has occurred to indicate that the carrying value of our drilling rigs may not be recoverable. Interest costs and the amortization of debt financing costs related to the financings of our drilling rigs are capitalized as part of the cost while they are under construction and prior to the commencement of each vessel’s first contract. We did no t capitalize any interest for the reported periods. Debt Financing Costs: Costs incurred with financing debt are deferred and amortized over the term of the related financing facility on a straight-line basis, which approximates the effective interest method. Debt issuance costs are presented in the Consolidated Balance Sheets as a direct deduction from the carrying amount of that debt liability. Rig and Equipment Certifications: We are required to obtain regulatory certifications to operate our drilling rigs and certain specified equipment, and must maintain such certifications through periodic inspections and surveys. These certifications are typically valid for approximately 2.5 to 5 years . The costs associated with these certifications, including drydock costs, are deferred and amortized over the corresponding certification periods. Revenue Recognition: See “ Note 3. Revenue from Contracts with Customers ” of these “Notes to Unaudited Consolidated Financial Statements” for further information. Income Taxes: Income taxes are provided for based upon the tax laws and rates in effect in the countries in which our operations are conducted and income is earned. Deferred income tax assets and liabilities are computed for differences between the financial statement basis and tax basis of assets and liabilities that will result in future taxable or tax-deductible amounts and are based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. We do not establish deferred tax liabilities for certain of our foreign earnings that we intend to indefinitely reinvest to finance foreign activities. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. We recognize interest and penalties related to income taxes as a component of income tax expense. Concentrations of Credit Risk: Financial instruments that potentially subject us to a significant concentration of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. We maintain deposits in federally insured financial institutions in excess of federally insured limits. We monitor the credit ratings and our concentration of risk with these financial institutions on a continuing basis to safeguard our cash deposits. We have a limited number of key customers, who are primarily large international oil and gas operators, national oil companies and other international oil and gas companies. Our contracts provide for monthly billings as services are performed and we monitor compliance with contract payment terms on an ongoing basis. Payment terms on customer invoices typically range from 30 to 45 days . Outstanding receivables beyond payment terms are promptly investigated and discussed with the specific customer. Four customers accounted for approximately 30 %, 22 %, 15 % and 15 % o f our consolidated trade receivables, net as of June 30, 2023 , and three customers accounted for approximately 34 %, 26 % and 12 % of our consolidated trade receivables, net as of June 30, 2022. Credit Losses – Accounts Receivable: The allowance for credit losses is based on the Company’s assessment of the collectability of customer accounts. Current estimates of expected credit losses consider factors such as the historical experience and credit quality of our customers. The Company considers historical loss information as the most reasonable basis on which to determine expected credit losses unless current or forecasted future conditions for customers (or customer groups) indicate that risk characteristics have changed. We also considered the impact of oil price and market share volatility, as well as other applicable macroeconomic considerations, on our allowance for credit losses. The following is a summary of the allowance for credit losses: June 30, 2023 December 31, 2022 (unaudited, in thousands) Beginning balance $ 4,962 $ 4,962 Additions charged to expenses 942 — Write-offs ( 2,054 ) — Ending balance $ 3,850 $ 4,962 The allowance for credit loss includes an amount that represents a customer’s decisions not to pay us for days impacted by what we believe were force majeure and other similar events for which we would still be entitled to receive payment under the applicable contracts. We disagree with the customer's decision and are currently evaluating our remedies, if any, under the applicable contracts. The write-offs in the period represent items where the Company has used reasonable collection efforts and are deemed as uncollectible receivables. Earnings (loss) per Share: We compute basic and diluted EPS in accordance with the two-class method. We include restricted stock units granted to employees and directors that contain non-forfeitable rights to dividends as such grants are considered participating securities. Basic earnings (loss) per share are based on the weighted average number of Ordinary Shares outstanding during the applicable period. Diluted EPS are computed based on the weighted average number of Ordinary Shares and ordinary share equivalents outstanding in the applicable period, as if all potentially dilutive securities were converted into Ordinary Shares (using the treasury stock method). The following is a reconciliation of the number of shares used for the basic and diluted EPS computations: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (unaudited, in thousands) Weighted average Ordinary Shares outstanding for basic EPS 13,229 13,115 13,204 13,115 Restricted share equity awards 91 217 — 215 Adjusted weighted average Ordinary Shares outstanding for diluted EPS 13,320 13,332 13,204 13,330 The following sets forth the number of shares excluded from diluted EPS computations due to their antidilutive effect: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (unaudited, in thousands) Restricted share equity awards — — 103 — Future potentially dilutive Ordinary Shares excluded from diluted EPS — — 103 — Functional Currency: We consider USD to be the functional currency for all of our operations since the majority of our revenues and expenditures are denominated in USD, which limits our exposure to currency exchange rate fluctuations. We recognize currency exchange rate gains and losses in “Other, net” in our Consolidated Statement of Operations. For the three and six months ended June 30, 2023 , we recognized a net loss of approximately $ 0.5 million and $ 0.1 million, respectively, related to currency exchange rates. For the three and six months ended June 30, 2022 , we recognized a net loss of approximately $ 1.0 million and $ 1.8 million, respectively, related to currency exchange rates. Fair Value of Financial Instruments: The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable and accounts payable. These items are considered Level 1 due to their short-term nature and their market interest rates and are, therefore, considered a reasonable estimate of fair value. The Company classifies short-term investments within Level 1 in the fair value hierarchy because quoted prices for identical assets in active markets are used to determine fair value. As of June 30, 2023, the fair value of the 9.50% First Lien Notes was approximately $ 196.6 million bas ed on quoted market prices in a less active market, a Level 2 measurement. See “ Note 5. Debt ” of these “Notes to Unaudited Consolidated Financial Statements” for additional information on the 9.50% First Lien Notes. Share-based Compensation: TBGs granted under the 2016 Amended MIP vest annually, ratably over four years ; however, accelerated vesting is provided for in the event of a QLE. Otherwise, the settlement of any vested TBGs occurs upon the seventh anniversary of the effective date set forth in each individual award letter. PBGs granted under the 2016 Amended MIP contain vesting eligibility provisions tied to the earlier of a QLE or seven years from the Effective Date. Upon the occurrence of a vesting eligibility event, the number of PBGs that vest will be dependent on the achievement of pre-determined TEV targets specified in the grants. Both the TBGs and PBGs are classified as equity awards. Under the provisions of ASC 718 Compensation – Stock Compensation share-based compensation expense is recognized over the requisite service period from the grant date to the fourth-year vest date for TBGs. For PBGs, expense will be recognized when it is probable that the TEV targets will be met. Once it is probable the performance condition will be met, compensation expense based on the fair value of the PBGs at the conversion date of the Convertible Notes will be recognized for the service period completed to the seventh anniversary of the Effective Date for PBGs. Noncontrolling Interest: Noncontrolling interests represent the equity investments of the minority owner in ADVantage, a joint venture with ADES that we consolidate in our financial statements. Recently Adopted Accounting Standards: No new accounting standards were adopted during the three-month period ended June 30, 2023 . Recently Issued Accounting Standards: There have been no new accounting pronouncements not yet effective that have significance with respect to our consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers The activities that primarily drive the revenue earned in our drilling contracts with customers include (i) providing our drilling rig, work crews, related equipment and services necessary to operate the rig, (ii) delivering the drilling rig by mobilizing to, and demobilizing from, the drill site, and (iii) performing pre-operating activities, including rig preparation activities and/or equipment modifications required for the contract. The integrated drilling services that we perform under each drilling contract represent a single performance obligation satisfied over time and comprised of a series of distinct time increments, or service periods. We have elected to exclude from the transaction price measurement all taxes assessed by a governmental authority. Dayrate Drilling Revenue. Our drilling contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The dayrate billed to the customer is determined based on varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly increment it relates to within the contract term and therefore, recognized as we perform the daily drilling services. For rigs owned by a third party that we manage or support, the contracts generally provide for a fixed fee based on various factors, including the status of the rig or a specific duration. In addition, we may earn a marketing fee based on a percentage of the effective dayrate of a drilling contract secured on behalf of the third party and a variable management fee of the gross margin associated with managing an operating rig. We are considered the principal or agent with respect to certain contractual arrangements and therefore, we record the associated revenue at the gross or net amounts billed to the customers, respectively. Amortizable Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for (i) the mobilization of equipment and personnel prior to the commencement of drilling services, (ii) the demobilization of equipment and personnel upon contract completion or (iii) postponement fees in consideration for the postponement of a contract until a later date. These activities are not considered to be distinct within the context of the contract and therefore, the associated revenue is allocated to the overall single performance obligation. Mobilization fees received prior to the commencement of drilling operations are recorded as a contract liability and amortized on a straight‑line basis over the initial contract period. Demobilization fees expected to be received upon contract completion are estimated at contract inception and recognized on a straight-line basis over the initial contract term, with an offset to an accretive contract asset. In many contracts, demobilization fees are contingent upon the occurrence or non-occurrence of a future event and the estimate for such revenue may therefore be constrained. In such cases, this may result in cumulative-effect adjustments to demobilization revenues upon changes in our estimates of future events during the contract term. Postponement fees received that are contingent upon the occurrence or non-occurrence of a future event are recognized on a straight-line basis over the contract term. Fees received for the mobilization or demobilization of equipment and personnel are included in “Contract drilling services” in our Consolidated Statement of Operations. Capital Upgrade/Contract Preparation Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for requested capital upgrades to our drilling rigs or for other contract preparation work. These activities are not considered to be distinct within the context of the contract and therefore, fees received are recorded as a contract liability and amortized to contract drilling revenues on a straight-line basis over the initial contract term. Charter Lease Revenue. In relation to certain bareboat charter agreements where we lease our owned rigs to unaffiliated third parties, we receive a fixed fee based on the number of days the rig is drilling. Furthermore, under certain other bareboat charter agreements, we receive a variable fee based on a percentage of gross margin generated on a monthly basis. Revenues Related to Reimbursable Expenses . We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request in accordance with a drilling contract or other agreement. We may be considered a principal or an agent in such transactions and therefore, we recognize reimbursable revenues and the corresponding costs either on a gross or net basis, as applicable, as we provide the requested goods and services. Disaggregation of Revenue The following tables present our revenue disaggregated by revenue source for the periods indicated: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Jackups Deepwater Managed Consolidated Jackups Deepwater Managed Consolidated (unaudited, in thousands) Dayrate revenue $ 4,975 $ 35,177 $ 25,526 $ 65,678 $ 15,963 $ 24,304 $ 2,840 $ 43,107 Amortized revenue 123 6,103 1,338 7,564 1,439 1,038 — 2,477 Charter lease revenue 3,152 — — 3,152 — — — — Reimbursable revenue 3,237 1,445 26,764 31,446 1,944 3,175 22,535 27,654 Total revenue $ 11,487 $ 42,725 $ 53,628 $ 107,840 $ 19,346 $ 28,517 $ 25,375 $ 73,238 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Jackups Deepwater Managed Consolidated Jackups Deepwater Managed Consolidated (unaudited, in thousands) Dayrate revenue $ 10,098 $ 54,752 $ 47,251 $ 112,101 $ 31,294 $ 50,300 $ 3,943 $ 85,537 Amortized revenue 236 8,280 2,662 11,178 1,659 4,404 — 6,063 Charter lease revenue 5,302 — — 5,302 — — — — Reimbursable revenue 6,455 2,499 47,377 56,331 4,151 6,151 29,667 39,969 Total revenue $ 22,091 $ 65,531 $ 97,290 $ 184,912 $ 37,104 $ 60,855 $ 33,610 $ 131,569 Dayrate revenue and amortized revenue for “Jackups” and “Deepwater” are included within “Contract drilling services” in our Consolidated Statement of Operations. Dayrate revenue for “Managed” is included within “Contract drilling services” and “Management fees” within our Consolidated Statement of Operations. All other revenue is included within “Reimbursables and other” in our Consolidated Statement of Operations. Accounts Receivable, Contract Liabilities and Contract Costs Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on customer invoices typically range from 30 to 45 days . We recognize contract liabilities, recorded in other “Other current liabilities” and “Other long-term liabilities” within our Consolidated Balance Sheets, for prepayments received from customers and for deferred revenue received for mobilization, contract preparation and capital upgrades. Certain direct and incremental costs incurred for contract preparation, initial mobilization and modifications of contracted rigs represent contract fulfillment costs as they relate directly to a contract, enhance resources that will be used to satisfy our performance obligations in the future and are expected to be recovered. These costs are deferred as a current or noncurrent asset depending on the length of the initial contract term and are amortized on a straight-line basis to operating costs as services are rendered over the initial term of the related drilling contract. Costs incurred for capital upgrades are capitalized and depreciated over the useful life of the asset. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. Costs incurred to mobilize a rig without a contract are expensed as incurred. The following table provides information about contract cost assets and contract revenue liabilities from contracts with customers: June 30, 2023 December 31, 2022 (unaudited, in thousands) Classification in the Consolidated Balance Sheets Current contract cost assets Prepaid expenses and other current assets $ 7,141 $ 7,324 Current contract revenue liabilities Other current liabilities 35,506 35,085 Significant changes in contract cost assets and contract revenue liabilities during the six months ended June 30, 2023 are as follows: Contract Cost Assets Contract Revenues (unaudited, in thousands) Balance as of December 31, 2022 $ 7,324 $ 35,085 Increase due to contractual changes 9,412 64,458 Decrease due to recognition of revenue ( 9,595 ) ( 64,037 ) Balance as of June 30, 2023 (1) $ 7,141 $ 35,506 (1) We expect to recognize contract revenues of approximately $ 35.5 million during the remaining six months of 2023 related to unsatisfied performance obligations existing as of June 30, 2023, which inclu des $ 26.1 million r elated to customer prefunding of reimbursables. We have elected to utilize an optional exemption that permits us to exclude disclosure of the estimated transaction price related to the variable portion of unsatisfied performance obligations at the end of the reporting period, as our transaction price is based on a single performance obligation consisting of a series of distinct hourly increments, the variability of which will be resolved at the time the future services are rendered. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease | 4. Leases We have operating leases expiring at various dates, principally for office space, onshore storage yards and certain operating equipment. Additionally, we sublease certain office space to third parties. We determine if an arrangement is a lease at inception. Operating leases with an initial term greater than 12 months are included in “Operating lease ROU assets”, “Other current liabilities”, and “Other long-term liabilities” on our Consolidated Balance Sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made prior to or at the commencement date and is reduced by lease incentives received and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally not accounted for separately. Certain of our leases include provisions for variable payments. These variable payments are not included in the calculation of lease liability and ROU assets. The components of lease expense for the periods indicated were as follows: Three Months Ended June 30, Six Months Ended June 30, (unaudited, in thousands) Classification in the Consolidated Statement of Operations 2023 2022 2023 2022 Operating lease cost (1) Operating costs $ 197 $ 313 $ 414 $ 568 Operating lease cost (1) General and administrative 284 193 568 477 Sublease income General and administrative ( 208 ) ( 224 ) ( 423 ) ( 407 ) Total operating lease cost $ 273 $ 282 $ 559 $ 638 (1) Short-term lease costs were approximately $ 9.6 million and $ 19.3 million during each of the three and six months ended June 30, 2023, respectively, which includes bareboat charter expense for a third party owned rig operated by the Company. For the three and six months ended June 30, 2022 , short-term lease costs were approximately $ 0.2 million and $ 0.3 million, respectively. Operating cash flows used for operating leases approximates lease expense. (unaudited, in thousands) Classification in the Consolidated Balance Sheets June 30, 2023 December 31, 2022 Assets: Operating lease assets Operating lease ROU assets $ 812 $ 1,648 Total leased assets $ 812 $ 1,648 Liabilities: Current operating Other current liabilities $ 679 $ 1,520 Noncurrent operating Other long-term liabilities 164 222 Total lease liabilities $ 843 $ 1,742 As of June 30, 2023, maturities of lease liabilities were as follows: (unaudited, in thousands) Operating Leases Remaining six months of 2023 $ 637 2024 139 2025 104 Total future lease payments $ 880 Less imputed interest ( 37 ) Present value of lease obligations $ 843 The weighted average discount rate was 9.25 % as of each of June 30, 2023 and December 31, 2022 . The weighted average remaining lease term for operating leases was 0.99 years and 1.19 years as of June 30, 2023 and December 31, 2022 , respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt Our debt was composed of the following as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) 9.25% First Lien Notes, net of financing costs of $ 0 and $ 773 , respectively $ — $ 179,227 9.50% First Lien Notes, net of financing costs of $ 11,080 and $ 0 , respectively 188,920 — 188,920 179,227 Less current maturities of long-term debt — — Long-term debt, net $ 188,920 $ 179,227 9.25% First Lien Notes. On November 30, 2018, the Company issued $ 350.0 million in aggregate principal amount of 9.25 % First Lien Notes in a private placement. The 9.25 % First Lien Notes were issued at par and are fully guaranteed on a senior secured basis by the Company’s direct and indirect subsidiaries, and were secured by a first priority lien on substantially all of the assets of the Company and its subsidiaries, in each case subject to certain exceptions. The 9.25 % First Lien Notes were subject to first payment priority in favor of holders of up to $ 50.0 million of future super-priority debt and were subject to both mandatory and optional redemption provisions. The 9.25% First Lien Notes were scheduled to mature on November 15, 2023 and bore interest from the date of their issuance at the rate of 9.25 % per year. Interest was computed on the basis of a 360-day year comprised of twelve 30-day months and was payable semi-annually in arrears, commencing on May 15, 2019. On November 22, 2022, the Company issued a notice of partial redemption (the “Notice of Partial Redemption”) of the 9.25% First Lien Notes. Pursuant to the Notice of Partial Redemption, the Company gave the existing recordholders of the 9.25% First Lien Notes notice that it intended to redeem $ 170.0 million of the outstanding 9.25% First Lien Notes on December 22, 2022 (the “Redemption Date”), at a redemption price equal to 100.0 % of the aggregate principal amount of the 9.25% First Lien Notes to be redeemed, plus accrued and unpaid interest and Additional Amounts (as defined in the 9.25% First Lien Indenture), if any, but not including, the date fixed for the redemption of the 9.25% First Lien Notes. On the Redemption Date, the Company made a payment of approximately $ 171.6 million, an amount which included principal and interest. On February 3, 2023, the Company issued a notice of full conditional redemption (the “Notice of Full Conditional Redemption”) pursuant to the 9.25% First Lien Indenture. Pursuant to the Notice of Full Conditional Redemption, the Company gave existing recordholders of the 9.25% First Lien Notes notice that, upon the satisfaction of the Condition Precedent (as defined below), it intended to redeem all $ 180.0 million of its outstanding 9.25% First Lien Notes at a redemption price equal to 100.0 % of the aggregate principal amount of the 9.25% First Lien Notes to be redeemed, plus accrued and unpaid interest and Additional Amounts (as defined in the 9.25% First Lien Indenture), if any, to, but not including, the date of redemption. The redemption of the 9.25% First Lien Notes was conditioned upon the receipt by the Company of proceeds from a completed debt financing in an amount sufficient, in the Company’s opinion, to fund the Redemption Price on the date of redemption pursuant to the terms of the Indenture (the “Condition Precedent”). The 9.25% First Lien Notes were redeemed in full on March 6, 2023 for approximately $ 185.1 million including principal and interest, using proceeds derived from the issuance of the 9.50% First Lien Notes (as discussed immediately below). Due to the Company’s intention and ability to replace the 9.25% First Lien Notes with the 9.50% First Lien Notes, which mature in February 2028, the 9.25% First Lien Notes have been presented as long-term liabilities on our Consolidated Balance Sheets as of December 31, 2022. 9.50% First Lien Notes . On February 14, 2023, the Company priced an offering of $ 200.0 million in aggregate principal amount of 9.50% First Lien Notes at an issue price of 97 % and entered into a purchase agreement with several investors pursuant to which the Company agreed to sell the 9.50% First Lien Notes (the “9.50% First Lien Notes Offering”) to the purchasers in reliance on an exemption from registration provided by Section 4(a)(2), Rule 144A and/or Regulation S of the Securities Act. On March 1, 2023, the Company closed the sale of the 9.50% First Lien Notes. The proceeds derived from the 9.50% First Lien Notes Offering were used (i) to redeem all outstanding 9.25% First Lien Notes for approximately $ 185.1 million, including principal and interest (as discussed immediately above), (ii) to pay fees and expenses related to the 9.50% First Lien Notes Offering and (iii) for general corporate purposes. The 9.50% First Lien Notes will mature on February 15, 2028 . The Company will pay interest on the 9.50% First Lien Notes on February 15 and August 15 of each year, commencing on August 15, 2023. Interest on the 9.50% First Lien Notes will accrue from March 1, 2023, at a rate of 9.50 % per annum, and be payable in cash. The 9.50% First Lien Notes will be guaranteed on a joint and several basis by the Company’s current and future direct and indirect subsidiaries, subject to certain exceptions (including Vantage Financial Management Co.) and will be secured by a first priority lien on substantially all of the assets of the Company and such subsidiaries, in each case subject to certain exceptions. In connection with the issuance of the 9.50% First Lien Notes, we are permitted to maintain up to $ 25.0 million in letters of credit outstanding to support our operations. The 9.50% First Lien Notes are subject to mandatory redemptions upon the occurrence of certain events, including (i) an annual excess cash flow sweep of 50 % of excess cash flow and (ii) upon the receipt of net proceeds from specified asset sales, in each case as further described in the 9.50% First Lien Indenture. The 9.50% First Lien Notes are subject to redemption at the option of the Company, including upon certain change of control events occurring on or after February 15, 2025, and in certain cases upon the occurrence of certain events, as further described in the 9.50% First Lien Indenture. The 9.50% First Lien Indenture contains customary covenants that will limit the Company’s ability and, in certain instances, the ability of the Company’s subsidiaries, to borrow money, create liens on assets, make distributions and pay dividends on or redeem or repurchase stock, make certain types of investments, enter into agreements that restrict dividends or other payments from subsidiaries, enter into transactions with affiliates, issue guarantees of debt, and sell assets or merge with other companies. These limitations are subject to a number of important exceptions and qualifications which are described in greater detail in the 9.50% First Lien Indenture. Events of default under the 9.50% First Lien Indenture include, among other events, the following with respect to the 9.50% First Lien Notes: default for 30 days in the payment when due of interest on the 9.50% First Lien Notes; default in payment when due of the principal of, or premium, if any, on the 9.50% First Lien Notes; failure to comply with certain covenants in the 9.50% First Lien Indenture for 30 days (or 60 days in respect of the reporting covenant contained therein) after the receipt of notice from the trustee or holders of 25.0 % in aggregate principal amount of the 9.50% First Lien Notes; acceleration or payment default of debt of the Company or a restricted subsidiary in excess of $ 30.0 million (subject to a cure right within 60 days); certain judgments in excess of $ 50.0 million subject to certain exceptions; and certain events of bankruptcy or insolvency. In the case of an event of default arising from certain events of bankruptcy or insolvency, all 9.50% First Lien Notes then outstanding will become due and payable immediately without further action or notice. If any other event of default occurs with respect to the 9.50% First Lien Notes, the trustee or holders of 25.0% in aggregate principal amount of the 9.50% First Lien Notes may declare all the 9.50% First Lien Notes to be due and payable immediately. Letters of credit to support our bank guarantee and similar needs are provided to us on demand by JPMorgan Chase Bank N.A. As of June 30, 2023 , we maintained letters of credit outstanding in the aggregate amount of $ 7.4 million. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | 6. Shareholders’ Equity Stock Issuance VDI has 50,000,000 authorized Ordinary Shares. As of June 30, 2023 , 13,229,280 Ordinary Shares were issued and outstanding. Share-based Compensation On August 9, 2016, the Company adopted the 2016 Amended MIP to align the interests of participants with those of the Company’s shareholders by providing incentive compensation opportunities tied to the performance of the Company’s equity securities. Pursuant to the 2016 Amended MIP, the Compensation Committee may grant to employees, directors and consultants stock options, restricted stock, restricted stock units or other awards. During the six months ended June 30, 2023 , 14,286 TBGs were granted to certain directors of the Company. No awards were granted to employees or directors during the six months ended June 30, 2022. During the six months ended June 30, 2023 , 919 of previously granted TBGs vested and 131,844 previously vested TBGs were issued to current or former employees or directors of the Company, of which 17,590 Ordinary Shares were repurchased to settle withholding taxes. During the six months ended June 30, 2022 , 1,564 previously-granted TBGs vested and no ne were issued. Both the TBGs and PBGs are classified as equity awards. For the six months ended June 30, 2023, share-based compensation expense related to the TBGs was immaterial. As of June 30, 2023, we concluded that it was not probable that the TEV performance condition would be met and therefore, no share-based compensation expense was recognized for PBGs. Pursuant to the terms of the award agreements, all the PBGs granted were forfeited and cancelled for no consideration as they had not met the TEV performance condition as of the seventh anniversary of the Effective Date. Pursuant to the 2016 Amended MIP and the terms of the applicable unit awards, participants holding restricted stock units are contractually entitled to receive all dividends or other distributions that are paid to VDI’s stockholders, provided that any such dividends will be subject to the same vesting requirements of the underlying units. Dividend payments accrue to outstanding awards (both vested and unvested) in the form of “Dividend Equivalents” equal to the dividend per share underlying the applicable award under the 2016 Amended MIP. As a result of a special cash distribution paid to shareholders of record on December 17, 2019 , $ 3.3 million has been recorded in “Other current liabilities” and $ 0.3 million has been recorded in “Other long-term liabilities” in our Consolidated Balance Sheets at June 30, 2023 to be paid upon settlement of the TBGs. During the six months ended June 30, 2023 , $ 5.3 million was paid to current or former employees or directors as a result of the settlement of the TBGs (as discussed immediately above). |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes VDI is a Cayman Islands company operating in multiple countries through its subsidiaries. The Cayman Islands do not impose corporate income taxes. Consequently, we have calculated income taxes based on the laws and tax rates in effect in the countries in which operations are conducted, or in which we and our subsidiaries are considered resident for income tax purposes. Our income taxes are generally dependent upon the results of our operations and when we generate significant revenues in jurisdictions where the income tax liability is based on gross revenues or asset values, there is no correlation to the net operating results and the income tax expense. Furthermore, in some jurisdictions we do not pay taxes, pay taxes at lower rates or receive benefits for certain income and expense items, including interest expense, loss on extinguishment of debt, gains or losses on disposal or transfer of assets, reorganization expenses and write-off of development costs. On January 22, 2020, VDI filed the Tax Election with the IRS to be treated as a partnership, rather than a corporation, for U.S. federal income tax purposes, with an effective date retroactive to December 9, 2019. As a result, U.S. Holders are required to take into account their allocable share of items of income, gain, loss deduction and credit of VDI for each taxable year of VDI ending with or within the U.S. Holder’s taxable year, regardless of whether any distribution has been or will be received from VDI. Each item generally will have the same character and source (either U.S. or foreign) as though the U.S. Holder had realized the item directly. Deferred income tax assets and liabilities are recorded for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. We provide for deferred taxes on temporary differences between the financial statements and tax bases of assets and liabilities using the enacted tax rates which are expected to apply to taxable income when the temporary differences are expected to reverse. Deferred tax assets are also provided for certain tax losses and tax credit carryforwards. A valuation allowance is established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. We do not establish deferred tax liabilities for certain of our foreign earnings that we intend to indefinitely reinvest to finance foreign activities. In certain jurisdictions we are taxed under preferential tax regimes, which may require our compliance with specified requirements to sustain the tax benefits. We believe we are in compliance with the specified requirements and will continue to make all reasonable efforts to comply; however, our ability to meet the requirements of the preferential tax regimes may be affected by changes in laws or administrative practices, our business operations and other factors affecting the Company and industry, many of which are beyond our control. Our periodic tax returns are subject to examination by taxing authorities in the jurisdictions in which we operate in accordance with the normal statute of limitations in the applicable jurisdiction. These examinations may result in assessments of additional taxes that are resolved with the authorities or through the courts. Resolution of these matters involves uncertainties and there are no assurances as to the outcome. Our tax years from 2013 onward remain open to examination in many of our jurisdictions and we are currently involved in several tax examinations in jurisdictions where we are operating or have previously operated. As information becomes available during the course of these examinations, we may increase or decrease our estimates of tax assessments and accruals. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies We are subject to litigation, claims and disputes in the ordinary course of business, some of which may not be covered by insurance. There is an inherent risk in any litigation or dispute and no assurance can be given as to the outcome of any claims. Brazil Improbity Action On April 27, 2018, the Company was added as an additional defendant in a legal proceeding (the “Improbity Action”), initiated by the Brazilian Federal Prosecutor against certain individuals, including an executive of Petrobras and two political lobbyists, in connection with the contracting of the Titanium Explorer drillship to Petrobras under the Government Agreement for the Provision of Drilling Services for the Titanium Explorer, dated February 4, 2009, by and between Petrobras Venezuela Investments & Services, BV and Vantage Deepwater Company (and subsequently novated to Petrobras America, Inc. and Vantage Deepwater Drilling, Inc.), with the Brazilian government and Petrobras as plaintiffs. Vantage is alleged to have been involved in and benefited from the purported bribery scheme at Petrobras through Hamylton Padilha, the Brazilian agent our former parent company, VDC, used in the contracting of the Titanium Explorer drillship to Petrobras, and Mr. Hsin-Chi Su, a former member of VDC’s board of directors and a significant shareholder of VDC. We first became aware of the legal proceeding on July 19, 2018 as it was previously under seal. On March 22, 2019, we were formally served in the United States and on April 12, 2019, we subsequently filed our preliminary statement of defense with the 11 th Federal court of the Judicial Branch of Curitiba, State of Parana, Brazil (the “Brazilian Federal Court”). On August 20, 2020, the Brazilian Federal Court dismissed our preliminary statement of defense. On October 5, 2020, we subsequently filed a motion to clarify with the Brazilian Federal Court requesting the reconsideration of certain aspects of the decision dismissing our preliminary statement of defense. Our motion to clarify was denied on December 14, 2020, and on February 10, 2021 we filed an interlocutory appeal with the 4 th Circuit of the Federal Court of Appeals in Porto Alegre, State of Rio Grande do Sul, Brazil (the “Brazilian Appellate Court”), the appellate court hearing appeals in the “Car Wash” cases, seeking to reverse the Brazilian Federal Court’s denial of our preliminary defense. On April 15, 2021, the Brazilian authorities served us indirectly through the U.S. Department of Justice agreeing to formally send us documents related to the Improbity Action. On May 13, 2021, the Brazilian Appellate Court’s reporting judge for our matter granted our request for preliminary relief and ordered an immediate stay of the Improbity Action (as it applies to the Company). A proceeding with regard to the interlocutory appeal commenced on August 30, 2022 (the “August 2022 Proceeding”) and on December 6, 2022, the Brazilian Appellate Court ruled in our favor, revoking the asset freeze order, which had already been stayed pending a decision from the court, and immediately dismissed the Improbity Action as to the Company (the “Improbity Decision”). The Improbity Decision is still subject to clarification and appeal by the Brazilian government and Petrobras, and on January 30, 2023 and February 1, 2023, Petrobras and the Brazilian federal government filed respective motions to clarify the Improbity Decision. On March 31, 2023, the Company filed its response to the motions to clarify the Improbity Decision. The Company will be notified as to the timing of the hearing of the motions to clarify the Improbity Decision. The Company understands that the Improbity Action is a civil action and is part of the Brazilian Federal Prosecutor’s larger “Car Wash” investigation into money laundering and corruption allegations in Brazil. Separately, Federal Law no. 14,230/2021 (the “New Administrative Improbity Law”) was enacted on October 26, 2021, which substantially amended the existing Brazilian improbity legal framework. While the Company believes that the developments arising from the enactment of the New Administrative Improbity Law render the case against it moot, the Company cannot predict the ultimate outcome of the August 2022 Proceeding and the Company will be obligated to file a statement of defense in the matter if the Improbity Decision is later reversed. The damages claimed in the proceeding are in the amount of BRL 102.8 million (approximately $ 21.8 million, c hanges in the USD amounts result from foreign exchange rate fluctuations), together with a civil fine equal to three times that amount. The Company understands that the Brazilian Federal Court previously issued an order authorizing the seizure and freezing of the assets of the Company and the other three defendants in the legal proceeding, as a precautionary measure, in the amount of approximately $ 87.3 million. The Company and the other three defendants are jointly and severally liable for this amount. The seizure order has not had an effect on the Company’s assets or operations, as the Company does not own any assets in Brazil and does not currently intend to relocate any assets to Brazil. On February 13, 2019, we learned that the Brazilian Federal Prosecutor had previously requested mutual legal assistance from the DOJ pursuant to the United Nations Convention against Corruption of 2003 to obtain a freezing order against the Company’s U.S. assets in the amount of approximately $87.3 million. On April 12, 2019, the Company filed an interlocutory appeal with the Brazilian Appellate Court to stay the seizure and freezing order of the Brazilian Federal Court. On May 20, 2019, the Company announced that the Brazilian Appellate Court's reporting judge ruled in favor of the Company’s appeal to stay the seizure and freezing order of the Brazilian Federal Court. As noted above, the Brazilian Appellate Court ruled in favor of the Company in the Improbity Decision, which, among other things, revoked the asset freeze order. The Improbity Decision is still subject to clarification and appeal by the Brazilian government and Petrobras, and on January 30, 2023 and February 1, 2023, Petrobras and the Brazilian federal government filed respective motions to clarify the Improbity Decision. On March 31, 2023, the Company filed its responses to the motions to clarify the Improbity Decision. The Company will be notified by the Brazilian Appellate Court as to the timing of the hearing of the Brazilian Appellate Court to adjudicate the motions to clarify the Improbity Decision. The Company previously communicated the Brazilian Appellate Court’s ruling to the DOJ and has asked the Brazilian Federal Court to do the same. On July 18, 2019, the Company announced that the Brazilian Government made a filing with the Brazilian Federal Court reporting that the DOJ has advised the Brazilian Ministry of Justice that it would not be possible for the DOJ to comply with the mutual assistance request in respect of the asset freeze order. The Company also announced that it learned from the Brazilian Ministry of Justice that the DOJ’s response to the request for mutual assistance stated that no legal grounds existed for implementing the requested asset freeze, and that the DOJ was returning the request without taking action and considers the matter concluded. The Company has defended, and intends to continue to vigorously defend, against the allegations made in the Improbity Action and oppose and defend against any attempts to reverse the Improbity Decision and/or seize the Company's assets. However, we can neither predict the ultimate outcome of this matter nor that there will not be further developments in the “Car Wash” investigation or in any other ongoing investigation or related proceeding that could adversely affect us. We are not able to determine the likelihood of loss, if any, arising from this matter as of the date of this Quarterly Report. Cyber Matters In 2022, we experienced additional e-mail related cybersecurity intrusions (the “2022 Cyber Matters”). We became aware of the 2022 Cyber Matters in the fourth quarter of 2022 that resulted in (i) two unauthorized transfers of cash from a Company-controlled bank account to an outside bank account, (ii) one attempted transfer that was stopped and reversed by a financial institution and (iii) one attempted transfer that was stopped by the Company’s internal controls. We have since taken, and continue to take, measures designed to detect, remediate and prevent similar cybersecurity intrusions and threats from recurring. Because the 2022 Cyber Matters are still under investigation, we can neither predict the ultimate outcome of this matter nor whether there will be further developments in the 2022 Cyber Matters investigation that could adversely affect us. Our investigation to date has not revealed any information that suggests the 2022 Cyber Matters will result in a material loss to the Company. However, we are not able to determine the likelihood of loss, if any, arising from the 2022 Cyber Matters as of the date of this Quarterly Report. Furthermore, we cannot provide assurance that we will not in the future experience any other actual or attempted breaches of our cybersecurity, or that our security efforts and remedial measures will prevent future security threats from materializing, if at all. |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
Jun. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Financial Information | 9. Supplemental Financial Information Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) Sales tax receivable $ 7,096 $ 5,407 Down payments to vendors 7,555 6,269 Prepaid fuel 2,216 3,200 Income tax receivable 10,186 1,373 Current deferred contract costs 7,141 7,324 Current deposits 3,548 139 Other 2,424 1,909 $ 40,166 $ 25,621 Property and Equipment, Net Property and equipment, net, consisted of the following as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) Drilling equipment $ 625,986 $ 624,739 Assets under construction 4,829 4,075 Office and technology equipment 18,405 18,405 Leasehold improvements 690 690 649,910 647,909 Accumulated depreciation ( 330,911 ) ( 309,453 ) Property and equipment, net $ 318,999 $ 338,456 Other Assets Other assets consisted of the following as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) Noncurrent restricted cash $ 2,266 $ 2,781 Deferred certification costs 3,259 3,308 Deferred income taxes 1,169 1,897 Noncurrent tax receivable 1,681 4,766 Other noncurrent assets 4,284 5,582 $ 12,659 $ 18,334 Other Current Liabilities Other current liabilities consisted of the following as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) Interest $ 6,332 $ 2,126 Compensation 6,381 8,786 2016 MIP - Dividend equivalent (1) 3,272 5,278 Income taxes payable 6,630 2,662 Current deferred revenue 35,506 35,085 Current portion of operating lease liabilities 679 1,520 Current customer prefunding 6,285 10,049 Other 685 673 $ 65,770 $ 66,179 (1) “Dividend equivalents” on vested TBGs are payable upon settlement of the applicable award. Other Long-term Liabilities Other Long-term liabilities consisted of the following as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) Deferred income taxes $ 734 $ 730 2016 MIP - Dividend equivalent (1) 285 3,520 Noncurrent operating lease liabilities 164 222 Noncurrent customer prefunding 4,093 3,950 Indirect tax contingencies 4,323 4,339 Other non-current liabilities 79 120 $ 9,678 $ 12,881 (1) “Dividend equivalents” on vested TBGs are payable upon settlement of the applicable award. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statement of Cash Flows as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) Cash and cash equivalents $ 79,650 $ 74,026 Restricted cash 455 16,450 Restricted cash included within Other Assets 2,266 2,781 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 82,371 $ 93,257 Restricted cash represents cash held by banks as collateralizing letters of credit. Other Transactions ADES In conjunction with the establishment of ADVantage, the Company entered into a series of agreements with ADES, including: (i) a Secondment Agreement; (ii) a Manpower Agreement; and (iii) a Supply Services Agreement. Pursuant to these agreements, the Company, largely through its seconded employees, has agreed to provide various services to ADES and ADES has agreed in turn to provide various services to ADVantage. On December 6, 2021, we entered into the EDC Purchase Agreement to sell to ADES Arabia all of the issued and outstanding equity of EDC, which owns the Emerald Driller , Sapphire Driller and Aquamarine Driller . The transactions contemplated by the EDC Purchase Agreement closed on the EDC Closing Date. Simultaneously with the EDC Sale, certain subsidiaries of the Company and ADES entered into the EDC Support Services Agreements, pursuant to which a subsidiary of the Company agreed to provide, in exchange for customary fees and reimbursements, support services to EDC with respect to the Emerald Driller , Sapphire Driller and Aquamarine Driller for a three-year term. Fees earned as a result of these agreements are included in “Management fees” and “Reimbursable and other” in our Consolidated Statement of Operations within the Managed Services segment as reported in “ Note 10. Business Segment and Significant Customer Information .” On September 22, 2022, three wholly owned subsidiaries of VHI entered into several related agreements with Advanced Energy Services, S.A.E., a subsidiary of ADES (“ADES SAE” and together with ADES Arabia, the “ADES Group”), including a: (i) secondment agreement; (ii) services agreement; and (iii) bareboat charter agreement, in each case to support a drilling campaign that will utilize the Topaz Driller jackup (collectively, the “ADES Ancillary Agreements”). These contracts generally provide for: (a) reimbursement of loaned employee personnel costs plus a service fee; (b) a fixed fee based on days the rig is drilling; (c) a variable fee based on a percentage of gross margin generated on a monthly basis; and (d) reimbursement for purchases of supplies, equipment and personnel services, and other services provided at the request of ADES SAE. Fees earned as a result of these agreements are included in “Reimbursable and other” in our Consolidated Statement of Operations within the Drilling Services segment as reported in “ Note 10. Business Segment and Significant Customer Information .” For the three and six months ended June 30, 2023 , we recognized revenue of $ 6.7 million and $ 12.3 million, respectively, from the ADES Group in connection with the ADES Ancillary Agreements. The Company and ADES also entered into an agreement on December 6, 2021 (the “Collaboration Agreement”) to pursue a global strategic alliance in order to leverage both the EDC Support Services Agreements and ADVantage, the parties’ existing joint venture in Egypt. Pursuant to the Collaboration Agreement, the parties agreed to collaborate on exploring future commercial and operational opportunities. Aquadrill Merger; Framework, Management and Marketing Agreements VHI previously entered into the Framework, Management and Marketing Agreements, pursuant to which certain subsidiaries of VHI agreed to provide operating, management and marketing services to the Aquadrill Entities. Fees earned in connection with these agreements are included in “Management fees” and “Reimbursable and other” in our Consolidated Statement of Operations within the Managed Services segment as reported below in “ Note 10. Business Segment and Significant Customer Information .” For the three and six months ended June 30, 2023, we recognized revenue of $ 21.8 million a nd $ 43.6 million, respectively, and, for the three and six months ended June 30, 2022 , we recognized revenue of $ 22.2 million and $ 30.4 million, respectively. On December 23, 2022, Seadrill Ltd. announced that it had agreed to consummate the Aquadrill Merger and on April 3, 2023, the Aquadrill Merger closed. On April 10, 2023, we received the Termination Notice from Aquadrill and, given that the Notice Termination Period has lapsed, we are therefore no longer (i) managing or marketing the Aquarius nor (ii) marketing the Capella and Polaris . However, as the management agreements are still in effect with respect to the Capella and Polaris , we continue to manage and operate those rigs for Seadrill Ltd. (and for the oil and gas clients under their respective drilling contracts). See “ Note 1. Organization and Recent Events ” of these Notes to Unaudited Financial Statements for further information with respect to the termination of the Aquarius Agreements and the Capella and Polaris Marketing Agreements. |
Business Segment and Significan
Business Segment and Significant Customer Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segment and Significant Customer Information | 10. Business Segment and Significant Customer Information Our operations are dependent on the global oil and gas industry, and our rigs are relocated based on demand for our services and customer requirements. Our customers consist primarily of large international oil and gas companies, national or government-controlled oil and gas companies, and other international exploration and production companies. As the result of an increase in activity related to operating, management and marketing services for rigs owned by third parties, the Company has two reportable segments: (1) “Drilling Services,” which includes activities related to owned jackup rigs and drillships; and (2) “Managed Services,” which consists of activities related to rigs owned by third parties that we manage or support. The chief operating decision maker evaluates the performance of our reportable segments using adjusted operating income (loss), which is a segment performance measure, because this financial measure reflects our ongoing profitability and performance. Adjusted operating income (loss) is defined as segment income (loss) from operations plus depreciation. General and administrative expenses, other (expense) income, and income taxes are not allocated to the operating segments for purposes of measuring segment income (loss) from operations and are included in “Unallocated” in the table below. There are no intersegment revenues. Our segment results for the periods indicated were as follows: Three Months Ended June 30, 2023 Drilling Services Managed Services Unallocated Consolidated (unaudited, in thousands) Revenue Contract drilling services $ 46,378 $ 21,295 $ — $ 67,673 Management fees — 5,569 — 5,569 Reimbursables and other 7,834 26,764 — 34,598 Total revenue 54,212 53,628 — 107,840 Operating costs and expenses Operating costs 33,163 41,220 — 74,383 General and administrative — — 5,161 5,161 Depreciation 10,601 — 444 11,045 Gain on EDC Sale — — — — Total operating costs and expenses 43,764 41,220 5,605 90,589 (Loss) income from operations 10,448 12,408 ( 5,605 ) 17,251 Other (expense) income Interest income — — 141 141 Interest expense and financing charges — — ( 5,346 ) ( 5,346 ) Other, net — — ( 457 ) ( 457 ) Total other expense — — ( 5,662 ) ( 5,662 ) Income before income taxes $ 10,448 $ 12,408 $ ( 11,267 ) $ 11,589 Reconciliation of income from operations to segment adjusted operating income: Drilling Services Managed Services Income from operations $ 10,448 $ 12,408 Depreciation 10,601 — Segment adjusted operating income $ 21,049 $ 12,408 Three Months Ended June 30, 2022 (unaudited, in thousands) Drilling Services Managed Services Unallocated Consolidated Revenue Contract drilling services $ 42,744 $ — $ — $ 42,744 Management fees — 2,840 — 2,840 Reimbursables and other 5,119 22,535 — 27,654 Total revenue 47,863 25,375 — 73,238 Operating costs and expenses Operating costs 36,164 23,241 — 59,405 General and administrative — — 6,910 6,910 Depreciation 10,695 — 392 11,087 Gain on EDC Sale — — ( 60,781 ) ( 60,781 ) Total operating costs and expenses 46,859 23,241 ( 53,479 ) 16,621 Income from operations 1,004 2,134 53,479 56,617 Other (expense) income Interest income — — 7 7 Interest expense and financing charges — — ( 8,503 ) ( 8,503 ) Other, net — — ( 1,011 ) ( 1,011 ) Total other expense — — ( 9,507 ) ( 9,507 ) Income before income taxes $ 1,004 $ 2,134 $ 43,972 $ 47,110 Reconciliation of income from operations to segment adjusted operating income: Drilling Services Managed Services Income from operations $ 1,004 $ 2,134 Depreciation 10,695 — Segment adjusted operating income $ 11,699 $ 2,134 Six Months Ended June 30, 2023 Drilling Services Managed Services Unallocated Consolidated (unaudited, in thousands) Revenue Contract drilling services $ 73,366 $ 42,224 $ — $ 115,590 Management fees — 7,689 — 7,689 Reimbursables and other 14,256 47,377 — 61,633 Total revenue 87,622 97,290 — 184,912 Operating costs and expenses Operating costs 60,885 80,053 — 140,938 General and administrative — — 9,992 9,992 Depreciation 21,240 — 854 22,094 Loss on EDC Sale — — 3 3 Total operating costs and expenses 82,125 80,053 10,849 173,027 (Loss) income from operations 5,497 17,237 ( 10,849 ) 11,885 Other (expense) income Interest income — — 190 190 Interest expense and financing charges — — ( 10,904 ) ( 10,904 ) Other, net — — ( 135 ) ( 135 ) Total other expense — — ( 10,849 ) ( 10,849 ) (Loss) income before income taxes $ 5,497 $ 17,237 $ ( 21,698 ) $ 1,036 Reconciliation of income from operations to segment adjusted operating income: Drilling Services Managed Services Income from operations $ 5,497 $ 17,237 Depreciation 21,240 — Segment adjusted operating income $ 26,737 $ 17,237 Six Months Ended June 30, 2022 Drilling Services Managed Services Unallocated Consolidated (unaudited, in thousands) Revenue Contract drilling services $ 87,657 $ — $ — $ 87,657 Management fees — 3,943 — 3,943 Reimbursables and other 10,302 29,667 — 39,969 Total revenue 97,959 33,610 — 131,569 Operating costs and expenses Operating costs 72,602 30,736 — 103,338 General and administrative — — 13,492 13,492 Depreciation 21,551 — 831 22,382 Gain on EDC Sale — — ( 60,781 ) ( 60,781 ) Total operating costs and expenses 94,153 30,736 ( 46,458 ) 78,431 Income from operations 3,806 2,874 46,458 53,138 Other (expense) income Interest income — — 11 11 Interest expense and financing charges — — ( 17,007 ) ( 17,007 ) Other, net — — ( 1,786 ) ( 1,786 ) Total other expense — — ( 18,782 ) ( 18,782 ) Income before income taxes $ 3,806 $ 2,874 $ 27,676 $ 34,356 Reconciliation of income from operations to segment adjusted operating income: Drilling Services Managed Services Income from operations $ 3,806 $ 2,874 Depreciation 21,551 — Segment adjusted operating income $ 25,357 $ 2,874 For the three and six months ended June 30, 2023 and 2022 , a substantial amount of our revenue was derived from countries outside of the United States. Our revenue by country and segment was as follows for the periods indicated (revenue of less than 10% is included in “Other countries”): Three months ended June 30, Six months ended June 30, Country Segment 2023 2022 2023 2022 (unaudited, in thousands) India Drilling Services and Managed Services $ 34,683 $ 13,230 $ 68,822 $ 26,518 UAE Drilling Services and Managed Services 20,267 19,778 42,911 27,966 Indonesia Drilling Services and Managed Services 12,832 5,827 22,378 8,805 Namibia Drilling Services 29,385 — 38,378 — Egypt Drilling Services — 9,738 — 26,859 Qatar Drilling Services — 6,934 — 14,319 Other countries (1) Drilling Services and Managed Services 10,673 17,731 12,423 27,102 Total revenues $ 107,840 $ 73,238 $ 184,912 $ 131,569 (1) “Other countries” represent countries in which we operate that individually had operating revenues representing less than 10% of total revenues earned. Revenue with customers that contributed 10% or more of revenue for the periods indicated were as follows: Three months ended June 30, Six months ended June 30, (unaudited) Segment 2023 2022 2023 2022 Customer 1 Drilling Services and Managed Services 32 % 18 % 37 % 20 % Customer 2 Managed Services 20 % 30 % 24 % 23 % Customer 3 Drilling Services 27 % 0 % 21 % 0 % Customer 4 Drilling Services 0 % 13 % 0 % 20 % Customer 5 Drilling Services 0 % 0 % 0 % 10 % Information related to the Company’s “Total Assets” as reported on the Consolidated Balance Sheets is not available by reportable segment; however, a substantial portion of our assets are mobile drilling units included in the Drilling Services segment. Asset locations at the end of the period are not necessarily indicative of the geographic distribution of the revenues generated by such assets during the periods. Our property and equipment, net by country, was as follows as of the dates indicated (property and equipment of less than 10% are included in “Other countries”): June 30, 2023 December 31, 2022 (unaudited, in thousands) Namibia $ 151,060 $ — India 74,614 81,309 Indonesia 56,165 58,663 International Waters — 158,785 Other countries (1) 37,160 39,699 Total property and equipment $ 318,999 $ 338,456 (1) “Other countries” represent countries in which we individually had property and equipment, net, representing less than 10% of total property and equipment, net. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation: The accompanying interim consolidated financial information as of June 30, 2023, and for the three and six months ended June 30, 2023 and 2022, has been prepared without audit, pursuant to the rules and regulations promulgated by the SEC, and includes our accounts and those of our majority owned subsidiaries and VIEs (as discussed below). All significant intercompany transactions and accounts have been eliminated. They reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the financial position and results of operations for the interim periods, on a basis consistent with the annual audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC, although we believe that the disclosures made are adequate to provide for fair statement. Our Consolidated Balance Sheet at December 31, 2022 is derived from our audited consolidated financial statements for the year ended December 31, 2022. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on March 31, 2023. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods. Certain previously reported amounts have been reclassified to conform to the current period presentation. In addition to the consolidation of our majority owned subsidiaries, we also consolidate VIEs when we are determined to be the primary beneficiary of a VIE. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our determination of the primary beneficiary of a VIE considers all relationships between us and the VIE. ADVantage is a joint venture company formed to operate deepwater drilling rigs in Egypt. We determined that ADVantage met the criteria of a VIE for accounting purposes because its equity at risk was insufficient to permit it to carry on its activities without additional subordinated financial support from us. We also determined that we are the primary beneficiary for accounting purposes since we are entitled to use ADVantage for deepwater drilling contract opportunities rejected by ADES, and have the (a) power to direct the operating activities associated with the deepwater drilling rigs, which are the activities that most significantly impact the entity’s economic performance, and (b) obligation to absorb losses or the right to receive a majority of the benefits that could be potentially significant to the VIE. As a result, we consolidate ADVantage in our consolidated financial statements, we eliminate intercompany transactions and we present the interests that are not owned by us as “Noncontrolling interests” in our Consolidated Balance Sheets. The carrying amount associated with ADVantage was as follows: June 30, 2023 December 31, 2022 (unaudited, in thousands) Current assets $ 4,380 $ 11,383 Non-current assets 736 1,590 Current liabilities 983 4,749 Non-current liabilities 2,068 4,637 Net carrying amount $ 2,065 $ 3,587 As ADVantage is a majority owned subsidiary of the Company, it serves as a guarantor under the 9.50% First Lien Indenture. The 9.50% First Lien Notes are secured by a first priority lien on all of the assets of ADVantage, subject to certain exceptions. Creditors’ recourse against ADVantage for liabilities of ADVantage is limited to the assets of ADVantage. See “ Note 9. Supplemental Financial Information ” of these “Notes to Unaudited Consolidated Financial Statements” for additional information regarding related party transactions associated with this joint venture. |
Use of Estimates | Use of Estimates: The preparation of financial statements in accordance with U.S. GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to property and equipment, income taxes, insurance, employee benefits and contingent liabilities. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Includes deposits with financial institutions and compliant financial instruments with maturities of three months or less when purchased. |
Materials and Supplies | Materials and Supplies: Consists of materials, spare parts, consumables and related supplies for our drilling rigs. We record these materials and supplies at their average cost. |
Property and Equipment | Property and Equipment: Consists of our drilling rigs, furniture and fixtures, computer equipment and capitalized costs for computer software. Drilling rigs are depreciated on a component basis over estimated useful lives ranging from five to 35 years on a straight-line basis as of the date placed in service. Other assets are depreciated upon placement in service over estimated useful lives ranging from three to seven years on a straight-line basis. When assets are sold, retired or otherwise disposed of, the cost and related accumulated depreciation are removed from our Consolidated Balance Sheets and the resulting gain or loss is included in “Operating costs” or “General and administrative” expenses on the Consolidated Statement of Operations, depending on the nature of the asset. For the three and six months ended June 30, 2022, we recognized a net loss of approximately $ 0.3 million and net gain of approximately $ 1.6 million, respectively, r elated to the sale or retirement of assets. The gain/loss related to the sale or retirement of assets for the three and six months ended June 30, 2023 was immaterial. We evaluate the realization of property and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss on our property and equipment exists when estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Any impairment loss recognized would be computed as the excess of the asset’s carrying value over the estimated fair value. Estimates of future cash flows require us to make long-term forecasts of our future revenues and operating costs with regard to the assets subject to review. Our business, including the utilization rates and dayrates we receive for our drilling rigs, depends on the level of our customers’ expenditures for oil and gas exploration, development and production expenditures. Oil and gas prices and customers’ expectations of potential changes in these prices, the general outlook for worldwide economic growth, political and social stability in the major oil and gas producing basins of the world, availability of credit and changes in governmental laws and regulations, among many other factors, significantly affect our customers’ levels of expenditures. Sustained declines in or persistent depressed levels of oil and gas prices, worldwide rig counts and utilization, reduced access to credit markets, reduced or depressed sale prices of comparably equipped jackups and drillships and any other significant adverse economic news could require us to evaluate the realization of our drilling rigs. As of June 30, 2023, no triggering event has occurred to indicate that the carrying value of our drilling rigs may not be recoverable. Interest costs and the amortization of debt financing costs related to the financings of our drilling rigs are capitalized as part of the cost while they are under construction and prior to the commencement of each vessel’s first contract. We did no t capitalize any interest for the reported periods. |
Debt Financing Costs | Debt Financing Costs: Costs incurred with financing debt are deferred and amortized over the term of the related financing facility on a straight-line basis, which approximates the effective interest method. Debt issuance costs are presented in the Consolidated Balance Sheets as a direct deduction from the carrying amount of that debt liability. |
Rig and Equipment Certifications | Rig and Equipment Certifications: We are required to obtain regulatory certifications to operate our drilling rigs and certain specified equipment, and must maintain such certifications through periodic inspections and surveys. These certifications are typically valid for approximately 2.5 to 5 years . The costs associated with these certifications, including drydock costs, are deferred and amortized over the corresponding certification periods. |
Revenue Recognition | Revenue Recognition: See “ Note 3. Revenue from Contracts with Customers ” of these “Notes to Unaudited Consolidated Financial Statements” for further information. The activities that primarily drive the revenue earned in our drilling contracts with customers include (i) providing our drilling rig, work crews, related equipment and services necessary to operate the rig, (ii) delivering the drilling rig by mobilizing to, and demobilizing from, the drill site, and (iii) performing pre-operating activities, including rig preparation activities and/or equipment modifications required for the contract. The integrated drilling services that we perform under each drilling contract represent a single performance obligation satisfied over time and comprised of a series of distinct time increments, or service periods. We have elected to exclude from the transaction price measurement all taxes assessed by a governmental authority. Dayrate Drilling Revenue. Our drilling contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The dayrate billed to the customer is determined based on varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly increment it relates to within the contract term and therefore, recognized as we perform the daily drilling services. For rigs owned by a third party that we manage or support, the contracts generally provide for a fixed fee based on various factors, including the status of the rig or a specific duration. In addition, we may earn a marketing fee based on a percentage of the effective dayrate of a drilling contract secured on behalf of the third party and a variable management fee of the gross margin associated with managing an operating rig. We are considered the principal or agent with respect to certain contractual arrangements and therefore, we record the associated revenue at the gross or net amounts billed to the customers, respectively. Amortizable Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for (i) the mobilization of equipment and personnel prior to the commencement of drilling services, (ii) the demobilization of equipment and personnel upon contract completion or (iii) postponement fees in consideration for the postponement of a contract until a later date. These activities are not considered to be distinct within the context of the contract and therefore, the associated revenue is allocated to the overall single performance obligation. Mobilization fees received prior to the commencement of drilling operations are recorded as a contract liability and amortized on a straight‑line basis over the initial contract period. Demobilization fees expected to be received upon contract completion are estimated at contract inception and recognized on a straight-line basis over the initial contract term, with an offset to an accretive contract asset. In many contracts, demobilization fees are contingent upon the occurrence or non-occurrence of a future event and the estimate for such revenue may therefore be constrained. In such cases, this may result in cumulative-effect adjustments to demobilization revenues upon changes in our estimates of future events during the contract term. Postponement fees received that are contingent upon the occurrence or non-occurrence of a future event are recognized on a straight-line basis over the contract term. Fees received for the mobilization or demobilization of equipment and personnel are included in “Contract drilling services” in our Consolidated Statement of Operations. Capital Upgrade/Contract Preparation Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for requested capital upgrades to our drilling rigs or for other contract preparation work. These activities are not considered to be distinct within the context of the contract and therefore, fees received are recorded as a contract liability and amortized to contract drilling revenues on a straight-line basis over the initial contract term. Charter Lease Revenue. In relation to certain bareboat charter agreements where we lease our owned rigs to unaffiliated third parties, we receive a fixed fee based on the number of days the rig is drilling. Furthermore, under certain other bareboat charter agreements, we receive a variable fee based on a percentage of gross margin generated on a monthly basis. Revenues Related to Reimbursable Expenses . We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request in accordance with a drilling contract or other agreement. We may be considered a principal or an agent in such transactions and therefore, we recognize reimbursable revenues and the corresponding costs either on a gross or net basis, as applicable, as we provide the requested goods and services. Disaggregation of Revenue The following tables present our revenue disaggregated by revenue source for the periods indicated: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Jackups Deepwater Managed Consolidated Jackups Deepwater Managed Consolidated (unaudited, in thousands) Dayrate revenue $ 4,975 $ 35,177 $ 25,526 $ 65,678 $ 15,963 $ 24,304 $ 2,840 $ 43,107 Amortized revenue 123 6,103 1,338 7,564 1,439 1,038 — 2,477 Charter lease revenue 3,152 — — 3,152 — — — — Reimbursable revenue 3,237 1,445 26,764 31,446 1,944 3,175 22,535 27,654 Total revenue $ 11,487 $ 42,725 $ 53,628 $ 107,840 $ 19,346 $ 28,517 $ 25,375 $ 73,238 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Jackups Deepwater Managed Consolidated Jackups Deepwater Managed Consolidated (unaudited, in thousands) Dayrate revenue $ 10,098 $ 54,752 $ 47,251 $ 112,101 $ 31,294 $ 50,300 $ 3,943 $ 85,537 Amortized revenue 236 8,280 2,662 11,178 1,659 4,404 — 6,063 Charter lease revenue 5,302 — — 5,302 — — — — Reimbursable revenue 6,455 2,499 47,377 56,331 4,151 6,151 29,667 39,969 Total revenue $ 22,091 $ 65,531 $ 97,290 $ 184,912 $ 37,104 $ 60,855 $ 33,610 $ 131,569 Dayrate revenue and amortized revenue for “Jackups” and “Deepwater” are included within “Contract drilling services” in our Consolidated Statement of Operations. Dayrate revenue for “Managed” is included within “Contract drilling services” and “Management fees” within our Consolidated Statement of Operations. All other revenue is included within “Reimbursables and other” in our Consolidated Statement of Operations. Accounts Receivable, Contract Liabilities and Contract Costs Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on customer invoices typically range from 30 to 45 days . We recognize contract liabilities, recorded in other “Other current liabilities” and “Other long-term liabilities” within our Consolidated Balance Sheets, for prepayments received from customers and for deferred revenue received for mobilization, contract preparation and capital upgrades. Certain direct and incremental costs incurred for contract preparation, initial mobilization and modifications of contracted rigs represent contract fulfillment costs as they relate directly to a contract, enhance resources that will be used to satisfy our performance obligations in the future and are expected to be recovered. These costs are deferred as a current or noncurrent asset depending on the length of the initial contract term and are amortized on a straight-line basis to operating costs as services are rendered over the initial term of the related drilling contract. Costs incurred for capital upgrades are capitalized and depreciated over the useful life of the asset. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. Costs incurred to mobilize a rig without a contract are expensed as incurred. The following table provides information about contract cost assets and contract revenue liabilities from contracts with customers: June 30, 2023 December 31, 2022 (unaudited, in thousands) Classification in the Consolidated Balance Sheets Current contract cost assets Prepaid expenses and other current assets $ 7,141 $ 7,324 Current contract revenue liabilities Other current liabilities 35,506 35,085 Significant changes in contract cost assets and contract revenue liabilities during the six months ended June 30, 2023 are as follows: Contract Cost Assets Contract Revenues (unaudited, in thousands) Balance as of December 31, 2022 $ 7,324 $ 35,085 Increase due to contractual changes 9,412 64,458 Decrease due to recognition of revenue ( 9,595 ) ( 64,037 ) Balance as of June 30, 2023 (1) $ 7,141 $ 35,506 (1) We expect to recognize contract revenues of approximately $ 35.5 million during the remaining six months of 2023 related to unsatisfied performance obligations existing as of June 30, 2023, which inclu des $ 26.1 million r elated to customer prefunding of reimbursables. We have elected to utilize an optional exemption that permits us to exclude disclosure of the estimated transaction price related to the variable portion of unsatisfied performance obligations at the end of the reporting period, as our transaction price is based on a single performance obligation consisting of a series of distinct hourly increments, the variability of which will be resolved at the time the future services are rendered. |
Income Taxes | Income Taxes: Income taxes are provided for based upon the tax laws and rates in effect in the countries in which our operations are conducted and income is earned. Deferred income tax assets and liabilities are computed for differences between the financial statement basis and tax basis of assets and liabilities that will result in future taxable or tax-deductible amounts and are based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. We do not establish deferred tax liabilities for certain of our foreign earnings that we intend to indefinitely reinvest to finance foreign activities. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. We recognize interest and penalties related to income taxes as a component of income tax expense. |
Concentrations of Credit Risk | Concentrations of Credit Risk: Financial instruments that potentially subject us to a significant concentration of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. We maintain deposits in federally insured financial institutions in excess of federally insured limits. We monitor the credit ratings and our concentration of risk with these financial institutions on a continuing basis to safeguard our cash deposits. We have a limited number of key customers, who are primarily large international oil and gas operators, national oil companies and other international oil and gas companies. Our contracts provide for monthly billings as services are performed and we monitor compliance with contract payment terms on an ongoing basis. Payment terms on customer invoices typically range from 30 to 45 days . Outstanding receivables beyond payment terms are promptly investigated and discussed with the specific customer. Four customers accounted for approximately 30 %, 22 %, 15 % and 15 % o f our consolidated trade receivables, net as of June 30, 2023 , and three customers accounted for approximately 34 %, 26 % and 12 % of our consolidated trade receivables, net as of June 30, 2022. Credit Losses – Accounts Receivable: The allowance for credit losses is based on the Company’s assessment of the collectability of customer accounts. Current estimates of expected credit losses consider factors such as the historical experience and credit quality of our customers. The Company considers historical loss information as the most reasonable basis on which to determine expected credit losses unless current or forecasted future conditions for customers (or customer groups) indicate that risk characteristics have changed. We also considered the impact of oil price and market share volatility, as well as other applicable macroeconomic considerations, on our allowance for credit losses. The following is a summary of the allowance for credit losses: June 30, 2023 December 31, 2022 (unaudited, in thousands) Beginning balance $ 4,962 $ 4,962 Additions charged to expenses 942 — Write-offs ( 2,054 ) — Ending balance $ 3,850 $ 4,962 The allowance for credit loss includes an amount that represents a customer’s decisions not to pay us for days impacted by what we believe were force majeure and other similar events for which we would still be entitled to receive payment under the applicable contracts. We disagree with the customer's decision and are currently evaluating our remedies, if any, under the applicable contracts. The write-offs in the period represent items where the Company has used reasonable collection efforts and are deemed as uncollectible receivables. |
Earnings (Loss) per Share | Earnings (loss) per Share: We compute basic and diluted EPS in accordance with the two-class method. We include restricted stock units granted to employees and directors that contain non-forfeitable rights to dividends as such grants are considered participating securities. Basic earnings (loss) per share are based on the weighted average number of Ordinary Shares outstanding during the applicable period. Diluted EPS are computed based on the weighted average number of Ordinary Shares and ordinary share equivalents outstanding in the applicable period, as if all potentially dilutive securities were converted into Ordinary Shares (using the treasury stock method). The following is a reconciliation of the number of shares used for the basic and diluted EPS computations: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (unaudited, in thousands) Weighted average Ordinary Shares outstanding for basic EPS 13,229 13,115 13,204 13,115 Restricted share equity awards 91 217 — 215 Adjusted weighted average Ordinary Shares outstanding for diluted EPS 13,320 13,332 13,204 13,330 The following sets forth the number of shares excluded from diluted EPS computations due to their antidilutive effect: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (unaudited, in thousands) Restricted share equity awards — — 103 — Future potentially dilutive Ordinary Shares excluded from diluted EPS — — 103 — |
Functional Currency | Functional Currency: We consider USD to be the functional currency for all of our operations since the majority of our revenues and expenditures are denominated in USD, which limits our exposure to currency exchange rate fluctuations. We recognize currency exchange rate gains and losses in “Other, net” in our Consolidated Statement of Operations. For the three and six months ended June 30, 2023 , we recognized a net loss of approximately $ 0.5 million and $ 0.1 million, respectively, related to currency exchange rates. For the three and six months ended June 30, 2022 , we recognized a net loss of approximately $ 1.0 million and $ 1.8 million, respectively, related to currency exchange rates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The financial instruments of the Company consist primarily of cash and cash equivalents, accounts receivable and accounts payable. These items are considered Level 1 due to their short-term nature and their market interest rates and are, therefore, considered a reasonable estimate of fair value. The Company classifies short-term investments within Level 1 in the fair value hierarchy because quoted prices for identical assets in active markets are used to determine fair value. As of June 30, 2023, the fair value of the 9.50% First Lien Notes was approximately $ 196.6 million bas ed on quoted market prices in a less active market, a Level 2 measurement. See “ Note 5. Debt ” of these “Notes to Unaudited Consolidated Financial Statements” for additional information on the 9.50% First Lien Notes. |
Share-based Compensation | Share-based Compensation: TBGs granted under the 2016 Amended MIP vest annually, ratably over four years ; however, accelerated vesting is provided for in the event of a QLE. Otherwise, the settlement of any vested TBGs occurs upon the seventh anniversary of the effective date set forth in each individual award letter. PBGs granted under the 2016 Amended MIP contain vesting eligibility provisions tied to the earlier of a QLE or seven years from the Effective Date. Upon the occurrence of a vesting eligibility event, the number of PBGs that vest will be dependent on the achievement of pre-determined TEV targets specified in the grants. Both the TBGs and PBGs are classified as equity awards. Under the provisions of ASC 718 Compensation – Stock Compensation share-based compensation expense is recognized over the requisite service period from the grant date to the fourth-year vest date for TBGs. For PBGs, expense will be recognized when it is probable that the TEV targets will be met. Once it is probable the performance condition will be met, compensation expense based on the fair value of the PBGs at the conversion date of the Convertible Notes will be recognized for the service period completed to the seventh anniversary of the Effective Date for PBGs. |
Noncontrolling Interest | Noncontrolling Interest: Noncontrolling interests represent the equity investments of the minority owner in ADVantage, a joint venture with ADES that we consolidate in our financial statements. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards: No new accounting standards were adopted during the three-month period ended June 30, 2023 . |
Recently Issued Accounting Standards | Recently Issued Accounting Standards: There have been no new accounting pronouncements not yet effective that have significance with respect to our consolidated financial statements. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Carrying Amounts of Assets and Liabilities of VIE | The carrying amount associated with ADVantage was as follows: June 30, 2023 December 31, 2022 (unaudited, in thousands) Current assets $ 4,380 $ 11,383 Non-current assets 736 1,590 Current liabilities 983 4,749 Non-current liabilities 2,068 4,637 Net carrying amount $ 2,065 $ 3,587 |
Summary of Allowance for Credit Losses | The following is a summary of the allowance for credit losses: June 30, 2023 December 31, 2022 (unaudited, in thousands) Beginning balance $ 4,962 $ 4,962 Additions charged to expenses 942 — Write-offs ( 2,054 ) — Ending balance $ 3,850 $ 4,962 |
Schedule of Reconciliation of Number of Shares Used for Basic and Diluted EPS Computations | The following is a reconciliation of the number of shares used for the basic and diluted EPS computations: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (unaudited, in thousands) Weighted average Ordinary Shares outstanding for basic EPS 13,229 13,115 13,204 13,115 Restricted share equity awards 91 217 — 215 Adjusted weighted average Ordinary Shares outstanding for diluted EPS 13,320 13,332 13,204 13,330 |
Schedule of Number of Shares Excluded from Diluted EPS Computations | The following sets forth the number of shares excluded from diluted EPS computations due to their antidilutive effect: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (unaudited, in thousands) Restricted share equity awards — — 103 — Future potentially dilutive Ordinary Shares excluded from diluted EPS — — 103 — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated by Revenue | The following tables present our revenue disaggregated by revenue source for the periods indicated: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 Jackups Deepwater Managed Consolidated Jackups Deepwater Managed Consolidated (unaudited, in thousands) Dayrate revenue $ 4,975 $ 35,177 $ 25,526 $ 65,678 $ 15,963 $ 24,304 $ 2,840 $ 43,107 Amortized revenue 123 6,103 1,338 7,564 1,439 1,038 — 2,477 Charter lease revenue 3,152 — — 3,152 — — — — Reimbursable revenue 3,237 1,445 26,764 31,446 1,944 3,175 22,535 27,654 Total revenue $ 11,487 $ 42,725 $ 53,628 $ 107,840 $ 19,346 $ 28,517 $ 25,375 $ 73,238 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Jackups Deepwater Managed Consolidated Jackups Deepwater Managed Consolidated (unaudited, in thousands) Dayrate revenue $ 10,098 $ 54,752 $ 47,251 $ 112,101 $ 31,294 $ 50,300 $ 3,943 $ 85,537 Amortized revenue 236 8,280 2,662 11,178 1,659 4,404 — 6,063 Charter lease revenue 5,302 — — 5,302 — — — — Reimbursable revenue 6,455 2,499 47,377 56,331 4,151 6,151 29,667 39,969 Total revenue $ 22,091 $ 65,531 $ 97,290 $ 184,912 $ 37,104 $ 60,855 $ 33,610 $ 131,569 |
Schedule of Contract Cost Assets and Contract Revenue Liabilities from Contracts with Customers | The following table provides information about contract cost assets and contract revenue liabilities from contracts with customers: June 30, 2023 December 31, 2022 (unaudited, in thousands) Classification in the Consolidated Balance Sheets Current contract cost assets Prepaid expenses and other current assets $ 7,141 $ 7,324 Current contract revenue liabilities Other current liabilities 35,506 35,085 |
Schedule of Significant Changes in Contract Cost Assets and Contract Revenue Liabilities | Significant changes in contract cost assets and contract revenue liabilities during the six months ended June 30, 2023 are as follows: Contract Cost Assets Contract Revenues (unaudited, in thousands) Balance as of December 31, 2022 $ 7,324 $ 35,085 Increase due to contractual changes 9,412 64,458 Decrease due to recognition of revenue ( 9,595 ) ( 64,037 ) Balance as of June 30, 2023 (1) $ 7,141 $ 35,506 (1) We expect to recognize contract revenues of approximately $ 35.5 million during the remaining six months of 2023 related to unsatisfied performance obligations existing as of June 30, 2023, which inclu des $ 26.1 million r elated to customer prefunding of reimbursables. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense for the periods indicated were as follows: Three Months Ended June 30, Six Months Ended June 30, (unaudited, in thousands) Classification in the Consolidated Statement of Operations 2023 2022 2023 2022 Operating lease cost (1) Operating costs $ 197 $ 313 $ 414 $ 568 Operating lease cost (1) General and administrative 284 193 568 477 Sublease income General and administrative ( 208 ) ( 224 ) ( 423 ) ( 407 ) Total operating lease cost $ 273 $ 282 $ 559 $ 638 (1) Short-term lease costs were approximately $ 9.6 million and $ 19.3 million during each of the three and six months ended June 30, 2023, respectively, which includes bareboat charter expense for a third party owned rig operated by the Company. For the three and six months ended June 30, 2022 , short-term lease costs were approximately $ 0.2 million and $ 0.3 million, respectively. Operating cash flows used for operating leases approximates lease expense. |
Schedule of Operating Leases Included in Consolidated Balance Sheet | (unaudited, in thousands) Classification in the Consolidated Balance Sheets June 30, 2023 December 31, 2022 Assets: Operating lease assets Operating lease ROU assets $ 812 $ 1,648 Total leased assets $ 812 $ 1,648 Liabilities: Current operating Other current liabilities $ 679 $ 1,520 Noncurrent operating Other long-term liabilities 164 222 Total lease liabilities $ 843 $ 1,742 |
Schedule of Maturities of Operating Lease Liabilities | As of June 30, 2023, maturities of lease liabilities were as follows: (unaudited, in thousands) Operating Leases Remaining six months of 2023 $ 637 2024 139 2025 104 Total future lease payments $ 880 Less imputed interest ( 37 ) Present value of lease obligations $ 843 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Our debt was composed of the following as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) 9.25% First Lien Notes, net of financing costs of $ 0 and $ 773 , respectively $ — $ 179,227 9.50% First Lien Notes, net of financing costs of $ 11,080 and $ 0 , respectively 188,920 — 188,920 179,227 Less current maturities of long-term debt — — Long-term debt, net $ 188,920 $ 179,227 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) Sales tax receivable $ 7,096 $ 5,407 Down payments to vendors 7,555 6,269 Prepaid fuel 2,216 3,200 Income tax receivable 10,186 1,373 Current deferred contract costs 7,141 7,324 Current deposits 3,548 139 Other 2,424 1,909 $ 40,166 $ 25,621 |
Property and Equipment, Net | Property and equipment, net, consisted of the following as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) Drilling equipment $ 625,986 $ 624,739 Assets under construction 4,829 4,075 Office and technology equipment 18,405 18,405 Leasehold improvements 690 690 649,910 647,909 Accumulated depreciation ( 330,911 ) ( 309,453 ) Property and equipment, net $ 318,999 $ 338,456 |
Other Assets | Other assets consisted of the following as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) Noncurrent restricted cash $ 2,266 $ 2,781 Deferred certification costs 3,259 3,308 Deferred income taxes 1,169 1,897 Noncurrent tax receivable 1,681 4,766 Other noncurrent assets 4,284 5,582 $ 12,659 $ 18,334 |
Other Current Liabilities | Other current liabilities consisted of the following as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) Interest $ 6,332 $ 2,126 Compensation 6,381 8,786 2016 MIP - Dividend equivalent (1) 3,272 5,278 Income taxes payable 6,630 2,662 Current deferred revenue 35,506 35,085 Current portion of operating lease liabilities 679 1,520 Current customer prefunding 6,285 10,049 Other 685 673 $ 65,770 $ 66,179 (1) “Dividend equivalents” on vested TBGs are payable upon settlement of the applicable award. |
Other Long-term Liabilities | Other Long-term liabilities consisted of the following as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) Deferred income taxes $ 734 $ 730 2016 MIP - Dividend equivalent (1) 285 3,520 Noncurrent operating lease liabilities 164 222 Noncurrent customer prefunding 4,093 3,950 Indirect tax contingencies 4,323 4,339 Other non-current liabilities 79 120 $ 9,678 $ 12,881 (1) “Dividend equivalents” on vested TBGs are payable upon settlement of the applicable award. |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statement of Cash Flows as of the dates indicated: June 30, 2023 December 31, 2022 (unaudited, in thousands) Cash and cash equivalents $ 79,650 $ 74,026 Restricted cash 455 16,450 Restricted cash included within Other Assets 2,266 2,781 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 82,371 $ 93,257 |
Business Segment and Signific_2
Business Segment and Significant Customer Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Our segment results for the periods indicated were as follows: Three Months Ended June 30, 2023 Drilling Services Managed Services Unallocated Consolidated (unaudited, in thousands) Revenue Contract drilling services $ 46,378 $ 21,295 $ — $ 67,673 Management fees — 5,569 — 5,569 Reimbursables and other 7,834 26,764 — 34,598 Total revenue 54,212 53,628 — 107,840 Operating costs and expenses Operating costs 33,163 41,220 — 74,383 General and administrative — — 5,161 5,161 Depreciation 10,601 — 444 11,045 Gain on EDC Sale — — — — Total operating costs and expenses 43,764 41,220 5,605 90,589 (Loss) income from operations 10,448 12,408 ( 5,605 ) 17,251 Other (expense) income Interest income — — 141 141 Interest expense and financing charges — — ( 5,346 ) ( 5,346 ) Other, net — — ( 457 ) ( 457 ) Total other expense — — ( 5,662 ) ( 5,662 ) Income before income taxes $ 10,448 $ 12,408 $ ( 11,267 ) $ 11,589 Reconciliation of income from operations to segment adjusted operating income: Drilling Services Managed Services Income from operations $ 10,448 $ 12,408 Depreciation 10,601 — Segment adjusted operating income $ 21,049 $ 12,408 Three Months Ended June 30, 2022 (unaudited, in thousands) Drilling Services Managed Services Unallocated Consolidated Revenue Contract drilling services $ 42,744 $ — $ — $ 42,744 Management fees — 2,840 — 2,840 Reimbursables and other 5,119 22,535 — 27,654 Total revenue 47,863 25,375 — 73,238 Operating costs and expenses Operating costs 36,164 23,241 — 59,405 General and administrative — — 6,910 6,910 Depreciation 10,695 — 392 11,087 Gain on EDC Sale — — ( 60,781 ) ( 60,781 ) Total operating costs and expenses 46,859 23,241 ( 53,479 ) 16,621 Income from operations 1,004 2,134 53,479 56,617 Other (expense) income Interest income — — 7 7 Interest expense and financing charges — — ( 8,503 ) ( 8,503 ) Other, net — — ( 1,011 ) ( 1,011 ) Total other expense — — ( 9,507 ) ( 9,507 ) Income before income taxes $ 1,004 $ 2,134 $ 43,972 $ 47,110 Reconciliation of income from operations to segment adjusted operating income: Drilling Services Managed Services Income from operations $ 1,004 $ 2,134 Depreciation 10,695 — Segment adjusted operating income $ 11,699 $ 2,134 Six Months Ended June 30, 2023 Drilling Services Managed Services Unallocated Consolidated (unaudited, in thousands) Revenue Contract drilling services $ 73,366 $ 42,224 $ — $ 115,590 Management fees — 7,689 — 7,689 Reimbursables and other 14,256 47,377 — 61,633 Total revenue 87,622 97,290 — 184,912 Operating costs and expenses Operating costs 60,885 80,053 — 140,938 General and administrative — — 9,992 9,992 Depreciation 21,240 — 854 22,094 Loss on EDC Sale — — 3 3 Total operating costs and expenses 82,125 80,053 10,849 173,027 (Loss) income from operations 5,497 17,237 ( 10,849 ) 11,885 Other (expense) income Interest income — — 190 190 Interest expense and financing charges — — ( 10,904 ) ( 10,904 ) Other, net — — ( 135 ) ( 135 ) Total other expense — — ( 10,849 ) ( 10,849 ) (Loss) income before income taxes $ 5,497 $ 17,237 $ ( 21,698 ) $ 1,036 Reconciliation of income from operations to segment adjusted operating income: Drilling Services Managed Services Income from operations $ 5,497 $ 17,237 Depreciation 21,240 — Segment adjusted operating income $ 26,737 $ 17,237 Six Months Ended June 30, 2022 Drilling Services Managed Services Unallocated Consolidated (unaudited, in thousands) Revenue Contract drilling services $ 87,657 $ — $ — $ 87,657 Management fees — 3,943 — 3,943 Reimbursables and other 10,302 29,667 — 39,969 Total revenue 97,959 33,610 — 131,569 Operating costs and expenses Operating costs 72,602 30,736 — 103,338 General and administrative — — 13,492 13,492 Depreciation 21,551 — 831 22,382 Gain on EDC Sale — — ( 60,781 ) ( 60,781 ) Total operating costs and expenses 94,153 30,736 ( 46,458 ) 78,431 Income from operations 3,806 2,874 46,458 53,138 Other (expense) income Interest income — — 11 11 Interest expense and financing charges — — ( 17,007 ) ( 17,007 ) Other, net — — ( 1,786 ) ( 1,786 ) Total other expense — — ( 18,782 ) ( 18,782 ) Income before income taxes $ 3,806 $ 2,874 $ 27,676 $ 34,356 Reconciliation of income from operations to segment adjusted operating income: Drilling Services Managed Services Income from operations $ 3,806 $ 2,874 Depreciation 21,551 — Segment adjusted operating income $ 25,357 $ 2,874 For the three and six months ended June 30, 2023 and 2022 , a substantial amount of our revenue was derived from countries outside of the United States. |
Summary of Revenue by Country | Our revenue by country and segment was as follows for the periods indicated (revenue of less than 10% is included in “Other countries”): Three months ended June 30, Six months ended June 30, Country Segment 2023 2022 2023 2022 (unaudited, in thousands) India Drilling Services and Managed Services $ 34,683 $ 13,230 $ 68,822 $ 26,518 UAE Drilling Services and Managed Services 20,267 19,778 42,911 27,966 Indonesia Drilling Services and Managed Services 12,832 5,827 22,378 8,805 Namibia Drilling Services 29,385 — 38,378 — Egypt Drilling Services — 9,738 — 26,859 Qatar Drilling Services — 6,934 — 14,319 Other countries (1) Drilling Services and Managed Services 10,673 17,731 12,423 27,102 Total revenues $ 107,840 $ 73,238 $ 184,912 $ 131,569 (1) “Other countries” represent countries in which we operate that individually had operating revenues representing less than 10% of total revenues earned. |
Summary of Revenue by Customers | Revenue with customers that contributed 10% or more of revenue for the periods indicated were as follows: Three months ended June 30, Six months ended June 30, (unaudited) Segment 2023 2022 2023 2022 Customer 1 Drilling Services and Managed Services 32 % 18 % 37 % 20 % Customer 2 Managed Services 20 % 30 % 24 % 23 % Customer 3 Drilling Services 27 % 0 % 21 % 0 % Customer 4 Drilling Services 0 % 13 % 0 % 20 % Customer 5 Drilling Services 0 % 0 % 0 % 10 % |
Schedule of Property and Equipment, Net by Country | Our property and equipment, net by country, was as follows as of the dates indicated (property and equipment of less than 10% are included in “Other countries”): June 30, 2023 December 31, 2022 (unaudited, in thousands) Namibia $ 151,060 $ — India 74,614 81,309 Indonesia 56,165 58,663 International Waters — 158,785 Other countries (1) 37,160 39,699 Total property and equipment $ 318,999 $ 338,456 (1) “Other countries” represent countries in which we individually had property and equipment, net, representing less than 10% of total property and equipment, net. |
Organization and Recent Events
Organization and Recent Events - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2023 | Feb. 14, 2023 | Nov. 30, 2018 | |
Organization And Recent Events [Line Items] | |||
Percentage of eligible marketing fee receivable | 1.50% | ||
Percentage of eligible variable fee to be earned | 13% | ||
Maximum | |||
Organization And Recent Events [Line Items] | |||
Notice termination period of agreement | 90 days | ||
Cold Stacked Rig | |||
Organization And Recent Events [Line Items] | |||
Management Fee | $ 2,000 | ||
Warm Stacked Rig | |||
Organization And Recent Events [Line Items] | |||
Management Fee | 4,000 | ||
Reactivating Rig | |||
Organization And Recent Events [Line Items] | |||
Management Fee | 6,000 | ||
Operating Rig | |||
Organization And Recent Events [Line Items] | |||
Management Fee | $ 10,000 | ||
9.25% First Lien Notes | |||
Organization And Recent Events [Line Items] | |||
Issuance of debt | $ 350,000,000 | ||
9.50% First Lien Notes | |||
Organization And Recent Events [Line Items] | |||
Issuance of debt | $ 200,000,000 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Schedule of Carrying Amounts of Assets and Liabilities of VIE (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 248,139 | $ 220,123 |
Current liabilities | 121,340 | 123,954 |
ADVantage | ||
Variable Interest Entity [Line Items] | ||
Current assets | 4,380 | 11,383 |
Non-current assets | 736 | 1,590 |
Current liabilities | 983 | 4,749 |
Non-current liabilities | 2,068 | 4,637 |
Net carrying amount | $ 2,065 | $ 3,587 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Customer | Jun. 30, 2022 USD ($) Customer | Dec. 31, 2022 USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Net gain (loss) on sale or retirement of assets | $ (300,000) | $ 0 | $ 1,630,000 | ||
Capitalized interest | $ 0 | $ 0 | |||
Number of customers | Customer | 4 | 3 | |||
Allowance for credit loss | $ 3,850,000 | $ 3,850,000 | $ 4,962,000 | ||
Foreign currency transaction gain (loss) | $ (500,000) | $ (1,000,000) | $ (100,000) | $ (1,800,000) | |
TBGs | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Vesting period | 4 years | ||||
Terms of vesting and settlement | TBGs granted under the 2016 Amended MIP vest annually, ratably over four years; however, accelerated vesting is provided for in the event of a QLE. Otherwise, the settlement of any vested TBGs occurs upon the seventh anniversary of the effective date set forth in each individual award letter. | ||||
PBGs | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Vesting period | 7 years | ||||
Terms of vesting and settlement | PBGs granted under the 2016 Amended MIP contain vesting eligibility provisions tied to the earlier of a QLE or seven years from the Effective Date. Upon the occurrence of a vesting eligibility event, the number of PBGs that vest will be dependent on the achievement of pre-determined TEV targets specified in the grants. | ||||
Trade receivables | Customer Concentration Risk | Customer One | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Risk percentage | 30% | 34% | |||
Trade receivables | Customer Concentration Risk | Customer Two | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Risk percentage | 22% | 26% | |||
Trade receivables | Customer Concentration Risk | Customer Three | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Risk percentage | 15% | 12% | |||
Trade receivables | Customer Concentration Risk | Customer Four | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Risk percentage | 15% | ||||
Minimum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Term of customer invoice payment | 30 days | ||||
Rig and Equipment Certifications Inspections And Surveys Period | 2 years 6 months | ||||
Maximum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Term of customer invoice payment | 45 days | ||||
Rig and Equipment Certifications Inspections And Surveys Period | 5 years | ||||
Drilling Equipment | Minimum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful lives | 5 years | 5 years | |||
Drilling Equipment | Maximum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful lives | 35 years | 35 years | |||
Office and Technology Equipment | Minimum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful lives | 3 years | 3 years | |||
Office and Technology Equipment | Maximum | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful lives | 7 years | 7 years | |||
9.50% First Lien Notes | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Fair value of notes outstanding | $ 196,600,000 | $ 196,600,000 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Summary of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Beginning balance | $ 4,962 | $ 4,962 |
Additions charged to expenses | 942 | 0 |
Write-offs | (2,054) | 0 |
Ending balance | $ 3,850 | $ 4,962 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Schedule of Reconciliation of Number of Shares Used For Basic and Diluted EPS Computation (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Weighted average Ordinary Shares outstanding for basic EPS | 13,229 | 13,115 | 13,204 | 13,115 |
Adjusted weighted average Ordinary Shares outstanding for diluted EPS | 13,320 | 13,332 | 13,204 | 13,330 |
Restricted Shares Equity Award | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Restricted share equity awards | 91 | 217 | 0 | 215 |
Basis of Presentation and Sig_8
Basis of Presentation and Significant Accounting Policies - Schedule of Number of Shares Excluded from Diluted EPS Computation (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Future potentially dilutive Ordinary Shares excluded from diluted EPS | 0 | 0 | 103 | 0 |
Restricted Shares Equity Award | ||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||
Future potentially dilutive Ordinary Shares excluded from diluted EPS | 0 | 0 | 103 | 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2023 | |
Minimum | |
Disaggregation Of Revenue [Line Items] | |
Term of customer invoice payment | 30 days |
Maximum | |
Disaggregation Of Revenue [Line Items] | |
Term of customer invoice payment | 45 days |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Disaggregated by Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 107,840 | $ 73,238 | $ 184,912 | $ 131,569 |
Jackups | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 11,487 | 19,346 | 22,091 | 37,104 |
Deepwater | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 42,725 | 28,517 | 65,531 | 60,855 |
Managed | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 53,628 | 25,375 | 97,290 | 33,610 |
Dayrate Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 65,678 | 43,107 | 112,101 | 85,537 |
Dayrate Revenue | Jackups | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 4,975 | 15,963 | 10,098 | 31,294 |
Dayrate Revenue | Deepwater | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 35,177 | 24,304 | 54,752 | 50,300 |
Dayrate Revenue | Managed | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 25,526 | 2,840 | 47,251 | 3,943 |
Amortized Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 7,564 | 2,477 | 11,178 | 6,063 |
Amortized Revenue | Jackups | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 123 | 1,439 | 236 | 1,659 |
Amortized Revenue | Deepwater | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 6,103 | 1,038 | 8,280 | 4,404 |
Amortized Revenue | Managed | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 1,338 | 2,662 | ||
Charter Lease Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 3,152 | 5,302 | ||
Charter Lease Revenue | Jackups | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 3,152 | 5,302 | ||
Charter Lease Revenue | Deepwater | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | ||||
Reimbursable Revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 31,446 | 27,654 | 56,331 | 39,969 |
Reimbursable Revenue | Jackups | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 3,237 | 1,944 | 6,455 | 4,151 |
Reimbursable Revenue | Deepwater | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 1,445 | 3,175 | 2,499 | 6,151 |
Reimbursable Revenue | Managed | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 26,764 | $ 22,535 | $ 47,377 | $ 29,667 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Contract Cost Assets and Contract Revenue Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Disaggregation of Revenue [Line Items] | ||
Current contract cost assets | $ 7,141 | $ 7,324 |
Current contract revenue liabilities | 35,506 | 35,085 |
Prepaid Expenses And Other Current Assets | ||
Disaggregation of Revenue [Line Items] | ||
Current contract cost assets | 7,141 | 7,324 |
Other Current Liabilities | ||
Disaggregation of Revenue [Line Items] | ||
Current contract revenue liabilities | $ 35,506 | $ 35,085 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Schedule of Significant Changes in Contract Cost Assets and Contract Revenue Liabilities (Detail) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) | ||
Revenue from Contract with Customer [Abstract] | ||
Beginning balance, contract costs assets | $ 7,324 | |
Increase due to contractual changes, contract costs assets | 9,412 | |
Decrease due to recognition of revenue, contract cost assets | (9,595) | |
Ending balance, contract cost assets | 7,141 | [1] |
Beginning balance, contract revenues | 35,085 | |
Increase due to contractual changes, contract revenues | 64,458 | |
Decrease due to recognition of revenue, contract revenues | (64,037) | |
Ending balance, contract revenues | $ 35,506 | [1] |
[1] We expect to recognize contract revenues of approximately $ 35.5 million during the remaining six months of 2023 related to unsatisfied performance obligations existing as of June 30, 2023, which inclu des $ 26.1 million r elated to customer prefunding of reimbursables. |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Schedule of Significant Changes in Contract Cost Assets and Contract Revenue Liabilities (Parenthetical) (Detail) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-01 $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Disaggregation Of Revenue [Line Items] | |
Contract revenues, remaining performance obligation | $ 35.5 |
Contract revenues, remaining performance obligation, expected timing of satisfaction, period | 6 months |
Customer prefunding reimbursible | $ 26.1 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Lessee Lease Description [Line Items] | |||||
Total operating lease cost | $ 273 | $ 282 | $ 559 | $ 638 | |
Operating Costs | |||||
Lessee Lease Description [Line Items] | |||||
Total operating lease cost | [1] | 197 | 313 | 414 | 568 |
General and Administrative | |||||
Lessee Lease Description [Line Items] | |||||
Total operating lease cost | [1] | 284 | 193 | 568 | 477 |
Sublease income | $ (208) | $ (224) | $ (423) | $ (407) | |
[1] Short-term lease costs were approximately $ 9.6 million and $ 19.3 million during each of the three and six months ended June 30, 2023, respectively, which includes bareboat charter expense for a third party owned rig operated by the Company. For the three and six months ended June 30, 2022 , short-term lease costs were approximately $ 0.2 million and $ 0.3 million, respectively. Operating cash flows used for operating leases approximates lease expense. |
Leases - Components of Lease _2
Leases - Components of Lease Expense (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Short term lease costs | $ 9.6 | $ 0.2 | $ 19.3 | $ 0.3 |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases Included in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Operating lease assets | $ 812 | $ 1,648 |
Total leased assets | 812 | 1,648 |
Liabilities: | ||
Current operating | $ 679 | $ 1,520 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Noncurrent operating | $ 164 | $ 222 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Liabilities, Other than Long-Term Debt, Noncurrent | Liabilities, Other than Long-Term Debt, Noncurrent |
Total lease liabilities | $ 843 | $ 1,742 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Remaining six months of 2023 | $ 637 | |
2024 | 139 | |
2025 | 104 | |
Total future lease payments | 880 | |
Less imputed interest | (37) | |
Present value of lease obligations | $ 843 | $ 1,742 |
Leases - Additional Information
Leases - Additional Information (Detail) | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted average discount rate for operating leases | 9.25% | 9.25% |
Weighted average remaining lease term for operating leases | 11 months 26 days | 1 year 2 months 8 days |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 188,920 | $ 179,227 |
Less current maturities of long-term debt | 0 | 0 |
Long-term debt, net | 188,920 | 179,227 |
9.25% First Lien Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 179,227 |
9.50% First Lien Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 188,920 | $ 0 |
Debt - Long-Term Debt (Parenthe
Debt - Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
9.25% First Lien Notes | ||
Debt Instrument [Line Items] | ||
Debt financing cost | $ 0 | $ 773 |
9.50% First Lien Notes | ||
Debt Instrument [Line Items] | ||
Debt financing cost | $ 11,080 | $ 0 |
Debt - First Lien Notes - Addit
Debt - First Lien Notes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Feb. 03, 2023 | Nov. 22, 2022 | Nov. 30, 2018 | Mar. 31, 2023 | Jun. 30, 2023 | Mar. 06, 2023 | Feb. 14, 2023 | Dec. 31, 2022 | Dec. 22, 2022 | |
Debt Instrument [Line Items] | |||||||||
Letters of credit | $ 7,400 | ||||||||
Debt outstanding | $ 188,920 | $ 179,227 | |||||||
9.25% First Lien Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Issuance of debt | $ 350,000 | ||||||||
Debt instrument, interest rate | 9.25% | ||||||||
Debt outstanding | $ 0 | 179,227 | |||||||
Debt instrument, maturity date | Nov. 15, 2023 | ||||||||
Debt purchase price as percentage of principal amount | 100% | 100% | |||||||
Debt Instrument Principal and interest | $ 171,600 | ||||||||
Debt instrument date of redemption | Mar. 06, 2023 | ||||||||
Use of proceeds | $ 185,100 | ||||||||
9.25% First Lien Notes | Full Conditional Redemption | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt outstanding | $ 180,000 | ||||||||
9.25% First Lien Notes | First Payment | Partial Redemption | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt outstanding | $ 170,000 | ||||||||
Debt Instrument Principal and interest | $ 185,100 | ||||||||
9.25% First Lien Notes | First Payment | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of debt | $ 50,000 | ||||||||
9.50% First Lien Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Issuance of debt | $ 200,000 | ||||||||
Debt instrument, issue price percentage | 97% | ||||||||
Debt instrument, interest rate | 9.50% | ||||||||
Debt outstanding | $ 188,920 | $ 0 | |||||||
Debt instrument, maturity date | Feb. 15, 2028 | ||||||||
Line of credit facility, maximum amount outstanding | $ 25,000 | ||||||||
Percentage of annual excess cash flow sweep for mandatory redemption | 50% | ||||||||
Debt instrument price percentage of aggregate principal amount | 25% | ||||||||
Debt Instruments Interest Payable Period One | --02-15 | ||||||||
Debt Instruments Interest Payable Period Two | --08-15 | ||||||||
9.50% First Lien Notes | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument excess of certain exceptions | $ 50,000 | ||||||||
9.50% First Lien Notes | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument restricted subsidiary access | $ 30,000 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | |
Ordinary shares, shares outstanding | 13,229,280 | 13,115,026 | |
Number of shares granted | 14,286 | 0 | |
Special Cash Distribution | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Record date | Dec. 17, 2019 | ||
Time-based Restricted Stock Unit | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Ordinary shares, shares repurchased | 17,590 | ||
Number of previously granted shares vested in period | 919 | 1,564 | |
Number of previously vested shares issued in period | 131,844 | 0 | |
Time-based Restricted Stock Unit | Special Cash Distribution | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividends cash | $ 5.3 | ||
Time-based Restricted Stock Unit | Special Cash Distribution | Other Current Liabilities | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividends cash | 3.3 | ||
Time-based Restricted Stock Unit | Special Cash Distribution | Other Long-term Liabilities | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividends cash | $ 0.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2023 | |
Minimum | |
Income Tax Contingency [Line Items] | |
Open tax year | 2013 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Brazil Improbity Action - Brazil R$ in Millions, $ in Millions | 6 Months Ended | ||
Apr. 27, 2018 BRL (R$) Defendant | Apr. 27, 2018 USD ($) Defendant | Jun. 30, 2023 | |
Loss Contingencies [Line Items] | |||
Allegations - description | On April 27, 2018, the Company was added as an additional defendant in a legal proceeding (the “Improbity Action”), initiated by the Brazilian Federal Prosecutor against certain individuals, including an executive of Petrobras and two political lobbyists, in connection with the contracting of the Titanium Explorer drillship to Petrobras under the Government Agreement for the Provision of Drilling Services for the Titanium Explorer, dated February 4, 2009, by and between Petrobras Venezuela Investments & Services, BV and Vantage Deepwater Company (and subsequently novated to Petrobras America, Inc. and Vantage Deepwater Drilling, Inc.), with the Brazilian government and Petrobras as plaintiffs. Vantage is alleged to have been involved in and benefited from the purported bribery scheme at Petrobras through Hamylton Padilha, the Brazilian agent our former parent company, VDC, used in the contracting of the Titanium Explorer drillship to Petrobras, and Mr. Hsin-Chi Su, a former member of VDC’s board of directors and a significant shareholder of VDC. We first became aware of the legal proceeding on July 19, 2018 as it was previously under seal. | ||
Loss contingency, damages claimed | R$ 102.8 | $ 21.8 | |
Court authorization to seizure and freezing assets of defendants | $ | $ 87.3 | ||
Loss contingency, number of defendants | Defendant | 3 | 3 | |
Loss contingency, actions taken by court | On February 13, 2019, we learned that the Brazilian Federal Prosecutor had previously requested mutual legal assistance from the DOJ pursuant to the United Nations Convention against Corruption of 2003 to obtain a freezing order against the Company’s U.S. assets in the amount of approximately $87.3 million. |
Supplemental Financial Inform_3
Supplemental Financial Information - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Sales tax receivable | $ 7,096 | $ 5,407 |
Down payments to vendors | 7,555 | 6,269 |
Prepaid fuel | 2,216 | 3,200 |
Income tax receivable | 10,186 | 1,373 |
Current deferred contract costs | 7,141 | 7,324 |
Current deposits | 3,548 | 139 |
Other | 2,424 | 1,909 |
Prepaid expenses and other current assets | $ 40,166 | $ 25,621 |
Supplemental Financial Inform_4
Supplemental Financial Information - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 649,910 | $ 647,909 |
Accumulated depreciation | (330,911) | (309,453) |
Property and equipment, net | 318,999 | 338,456 |
Drilling Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 625,986 | 624,739 |
Assets under Construction | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 4,829 | 4,075 |
Office and Technology Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 18,405 | 18,405 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 690 | $ 690 |
Supplemental Financial Inform_5
Supplemental Financial Information - Other Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Noncurrent restricted cash | $ 2,266 | $ 2,781 |
Deferred certification costs | 3,259 | 3,308 |
Deferred income taxes | 1,169 | 1,897 |
Noncurrent tax receivable | 1,681 | 4,766 |
Other noncurrent assets | 4,284 | 5,582 |
Total other assets | $ 12,659 | $ 18,334 |
Supplemental Financial Inform_6
Supplemental Financial Information - Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |||
Interest | $ 6,332 | $ 2,126 | |
Compensation | 6,381 | 8,786 | |
2016 MIP - Dividend equivalent | [1] | 3,272 | 5,278 |
Income taxes payable | 6,630 | 2,662 | |
Current deferred revenue | 35,506 | 35,085 | |
Current portion of operating lease liabilities | 679 | 1,520 | |
Current customer prefunding | 6,285 | 10,049 | |
Other | 685 | 673 | |
Other current liabilities | $ 65,770 | $ 66,179 | |
[1] “Dividend equivalents” on vested TBGs are payable upon settlement of the applicable award. |
Supplemental Financial Inform_7
Supplemental Financial Information - Other Long-term Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Liabilities, Noncurrent [Abstract] | |||
Deferred income taxes | $ 734 | $ 730 | |
2016 MIP - Dividend equivalents | [1] | 285 | 3,520 |
Noncurrent operating lease liabilities | 164 | 222 | |
Noncurrent customer prefunding | 4,093 | 3,950 | |
Indirect tax contingencies | 4,323 | 4,339 | |
Other non-current liabilities | 79 | 120 | |
Other long-term liabilities | $ 9,678 | $ 12,881 | |
[1] “Dividend equivalents” on vested TBGs are payable upon settlement of the applicable award. |
Supplemental Financial Inform_8
Supplemental Financial Information - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 79,650 | $ 74,026 |
Restricted cash | 455 | 16,450 |
Restricted cash included within Other Assets | $ 2,266 | $ 2,781 |
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | $ 82,371 | $ 93,257 |
Supplemental Financial Inform_9
Supplemental Financial Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Supplemental Financial Information [Line Items] | ||||
Revenues | $ 107,840 | $ 73,238 | $ 184,912 | $ 131,569 |
Aquadrill | ||||
Supplemental Financial Information [Line Items] | ||||
Revenues | 21,800 | $ 22,200 | 43,600 | $ 30,400 |
ADES Group | ||||
Supplemental Financial Information [Line Items] | ||||
Revenues | $ 6,700 | $ 12,300 |
Business Segment and Signific_3
Business Segment and Significant Customer Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2023 Segment | |
Entity Wide Revenue Major Customer [Line Items] | |
Number of reportable segments | 2 |
Business Segment and Signific_4
Business Segment and Significant Customer Information - Summary of Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue | ||||
Total revenue | $ 107,840 | $ 73,238 | $ 184,912 | $ 131,569 |
Operating costs and expenses | ||||
Operating costs | 74,383 | 59,405 | 140,938 | 103,338 |
General and administrative | 5,161 | 6,910 | 9,992 | 13,492 |
Depreciation | 11,045 | 11,087 | 22,094 | 22,382 |
(Gain) loss on EDC Sale | (60,781) | 3 | (60,781) | |
Total operating costs and expenses | 90,589 | 16,621 | 173,027 | 78,431 |
Income (Loss) from operations | 17,251 | 56,617 | 11,885 | 53,138 |
Other (expense) income | ||||
Interest income | 141 | 7 | 190 | 11 |
Interest expense and other financing charges | (5,346) | (8,503) | (10,904) | (17,007) |
Other, net | (457) | (1,011) | (135) | (1,786) |
Total other expense | (5,662) | (9,507) | (10,849) | (18,782) |
Income before income taxes | 11,589 | 47,110 | 1,036 | 34,356 |
Reconciliation of income from operations to segment adjusted operating income: | ||||
Income from operations | 17,251 | 56,617 | 11,885 | 53,138 |
Depreciation | 11,045 | 11,087 | 22,094 | 22,382 |
Contract Drilling Services | ||||
Revenue | ||||
Total revenue | 67,673 | 42,744 | 115,590 | 87,657 |
Management Fees | ||||
Revenue | ||||
Total revenue | 5,569 | 2,840 | 7,689 | 3,943 |
Reimbursables and Other | ||||
Revenue | ||||
Total revenue | 34,598 | 27,654 | 61,633 | 39,969 |
Operating Segments | Drilling Services | ||||
Revenue | ||||
Total revenue | 54,212 | 47,863 | 87,622 | 97,959 |
Operating costs and expenses | ||||
Operating costs | 33,163 | 36,164 | 60,885 | 72,602 |
Depreciation | 10,601 | 10,695 | 21,240 | 21,551 |
Total operating costs and expenses | 43,764 | 46,859 | 82,125 | 94,153 |
Income (Loss) from operations | 10,448 | 1,004 | 5,497 | 3,806 |
Other (expense) income | ||||
Income before income taxes | 10,448 | 1,004 | 5,497 | 3,806 |
Reconciliation of income from operations to segment adjusted operating income: | ||||
Income from operations | 10,448 | 1,004 | 5,497 | 3,806 |
Depreciation | 10,601 | 10,695 | 21,240 | 21,551 |
Segment adjusted opearting income | 21,049 | 11,699 | 26,737 | 25,357 |
Operating Segments | Drilling Services | Contract Drilling Services | ||||
Revenue | ||||
Total revenue | 46,378 | 42,744 | 73,366 | 87,657 |
Operating Segments | Drilling Services | Reimbursables and Other | ||||
Revenue | ||||
Total revenue | 7,834 | 5,119 | 14,256 | 10,302 |
Operating Segments | Managed Services | ||||
Revenue | ||||
Total revenue | 53,628 | 25,375 | 97,290 | 33,610 |
Operating costs and expenses | ||||
Operating costs | 41,220 | 23,241 | 80,053 | 30,736 |
Total operating costs and expenses | 41,220 | 23,241 | 80,053 | 30,736 |
Income (Loss) from operations | 12,408 | 2,134 | 17,237 | 2,874 |
Other (expense) income | ||||
Income before income taxes | 12,408 | 2,134 | 17,237 | 2,874 |
Reconciliation of income from operations to segment adjusted operating income: | ||||
Income from operations | 12,408 | 2,134 | 17,237 | 2,874 |
Segment adjusted opearting income | 12,408 | 2,134 | 17,237 | 2,874 |
Operating Segments | Managed Services | Contract Drilling Services | ||||
Revenue | ||||
Total revenue | 21,295 | 42,224 | ||
Operating Segments | Managed Services | Management Fees | ||||
Revenue | ||||
Total revenue | 5,569 | 2,840 | 7,689 | 3,943 |
Operating Segments | Managed Services | Reimbursables and Other | ||||
Revenue | ||||
Total revenue | 26,764 | 22,535 | 47,377 | 29,667 |
Operating Segments | Unallocated | ||||
Operating costs and expenses | ||||
General and administrative | 5,161 | 6,910 | 9,992 | 13,492 |
Depreciation | 444 | 392 | 854 | 831 |
(Gain) loss on EDC Sale | (60,781) | 3 | (60,781) | |
Total operating costs and expenses | 5,605 | (53,479) | 10,849 | (46,458) |
Income (Loss) from operations | (5,605) | 53,479 | (10,849) | 46,458 |
Other (expense) income | ||||
Interest income | 141 | 7 | 190 | 11 |
Interest expense and other financing charges | (5,346) | (8,503) | (10,904) | (17,007) |
Other, net | (457) | (1,011) | (135) | (1,786) |
Total other expense | (5,662) | (9,507) | (10,849) | (18,782) |
Income before income taxes | (11,267) | 43,972 | (21,698) | 27,676 |
Reconciliation of income from operations to segment adjusted operating income: | ||||
Income from operations | (5,605) | 53,479 | (10,849) | 46,458 |
Depreciation | $ 444 | $ 392 | $ 854 | $ 831 |
Business Segment and Signific_5
Business Segment and Significant Customer Information - Summary of Revenue by Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | $ 107,840 | $ 73,238 | $ 184,912 | $ 131,569 | |
India | Drilling Services and Managed Services | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | 34,683 | 13,230 | 68,822 | 26,518 | |
UAE | Drilling Services and Managed Services | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | 20,267 | 19,778 | 42,911 | 27,966 | |
Indonesia | Drilling Services and Managed Services | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | 12,832 | 5,827 | 22,378 | 8,805 | |
Namibia | Drilling Services | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | 29,385 | 38,378 | |||
Egypt | Drilling Services | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | 9,738 | 26,859 | |||
Qatar | Drilling Services | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | 6,934 | 14,319 | |||
Other countries | Drilling Services and Managed Services | |||||
Entity Wide Revenue Major Customer [Line Items] | |||||
Revenues | [1] | $ 10,673 | $ 17,731 | $ 12,423 | $ 27,102 |
[1] “Other countries” represent countries in which we operate that individually had operating revenues representing less than 10% of total revenues earned. |
Business Segment and Signific_6
Business Segment and Significant Customer Information - Summary of Revenue by Customers (Detail) - Customer Concentration Risk - Sales | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Customer One | Drilling Services and Managed Services | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 32% | 18% | 37% | 20% |
Customer Two | Managed Services | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 20% | 30% | 24% | 23% |
Customer Three | Drilling Services | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 27% | 0% | 21% | 0% |
Customer Four | Drilling Services | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 0% | 13% | 0% | 20% |
Customer Five | Drilling Services | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue (excluding reimbursable revenue) | 0% | 0% | 0% | 10% |
Business Segment and Signific_7
Business Segment and Significant Customer Information - Schedule of Property and Equipment, Net by Country (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | $ 318,999 | $ 338,456 | |
Namibia | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 151,060 | ||
India | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 74,614 | 81,309 | |
Indonesia | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 56,165 | 58,663 | |
International Waters | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 158,785 | ||
Other countries | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | [1] | $ 37,160 | $ 39,699 |
[1] “Other countries” represent countries in which we individually had property and equipment, net, representing less than 10% of total property and equipment, net. |