Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35345 | |
Entity Registrant Name | PACIFIC DRILLING S.A. | |
Entity Incorporation, State or Country Code | N4 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Address Line One | 8-10, Avenue de la Gare | |
Entity Address, Postal Zip Code | L-1610 | |
Entity Address, Country | LU | |
City Area Code | +352 | |
Local Phone Number | 27 85 81 35 | |
Title of 12(b) Security | Common shares, par value $0.01 per share | |
Trading Symbol | PACD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding | 75,203,391 | |
Entity Address, City or Town | Luxembourg | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001517342 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | ||||
Contract drilling | $ 46,415 | $ 54,315 | $ 174,758 | $ 196,646 |
Revenue, Product and Service [Extensible List] | us-gaap:OilAndGasServiceMember | us-gaap:OilAndGasServiceMember | us-gaap:OilAndGasServiceMember | us-gaap:OilAndGasServiceMember |
Costs and expenses | ||||
Operating expenses | $ 48,429 | $ 60,324 | $ 196,758 | $ 164,874 |
General and administrative expenses | 8,486 | 8,855 | 26,376 | 30,111 |
Depreciation and amortization expense | 26,889 | 47,734 | 80,631 | 165,963 |
Pre-petition charges | 7,278 | 9,888 | ||
Loss from unconsolidated subsidiaries | 488 | 2,512 | ||
Total costs and expenses | 91,082 | 117,401 | 313,653 | 363,460 |
Operating loss | (44,667) | (63,086) | (138,895) | (166,814) |
Other income (expense) | ||||
Interest expense | (26,619) | (24,459) | (78,353) | (72,904) |
Write-off of debt premium, net | 4,448 | 4,448 | ||
Reorganization items | (24) | (362) | (1,905) | |
Interest income | 194 | 1,510 | 1,522 | 5,147 |
Other expense | (236) | (409) | (449) | (720) |
Loss before income taxes | (66,880) | (86,468) | (212,089) | (237,196) |
Income tax expense | 3,363 | 4,315 | 6,515 | 11,152 |
Net loss | $ (70,243) | $ (90,783) | $ (218,604) | $ (248,348) |
Loss per common share, basic (in dollars per share) | $ (0.93) | $ (1.21) | $ (2.91) | $ (3.31) |
Weighted-average shares outstanding, basic | 75,203 | 75,005 | 75,195 | 75,012 |
Loss per common share, diluted (in dollars per share) | $ (0.93) | $ (1.21) | $ (2.91) | $ (3.31) |
Weighted-average shares outstanding, diluted | 75,203 | 75,005 | 75,195 | 75,012 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (70,243) | $ (90,783) | $ (218,604) | $ (248,348) |
Total comprehensive loss | $ (70,243) | $ (90,783) | $ (218,604) | $ (248,348) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and cash equivalents | $ 218,681 | $ 278,620 |
Restricted cash | 6,106 | 6,089 |
Accounts receivable, net | 24,159 | 29,252 |
Materials and supplies | 45,217 | 43,933 |
Deferred costs, current | 4,094 | 16,961 |
Prepaid expenses and other current assets | 19,842 | 15,732 |
Total current assets | 318,099 | 390,587 |
Property and equipment, net | 1,766,188 | 1,842,549 |
Other assets | 26,034 | 23,423 |
Total assets | 2,110,321 | 2,256,559 |
Liabilities and shareholders' equity: | ||
Accounts payable | 16,512 | 24,223 |
Accrued expenses | 26,631 | 27,924 |
Long-term debt, current | 1,126,391 | |
Accrued interest | 50,990 | 15,703 |
Deferred revenue, current | 1,616 | 7,567 |
Total current liabilities | 1,222,140 | 75,417 |
Long-term debt | 1,073,734 | |
Other long-term liabilities | 33,432 | 38,577 |
Total liabilities | 1,255,572 | 1,187,728 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common shares, $0.01 par value per share, 82,500 shares authorized and issued and 75,203 and 75,007 shares outstanding as of September 30, 2020 and December 31, 2019, respectively | 752 | 751 |
Additional paid-in capital | 1,657,202 | 1,652,681 |
Treasury shares, at cost | (652) | (652) |
Accumulated deficit | (802,553) | (583,949) |
Total shareholders' equity | 854,749 | 1,068,831 |
Total liabilities and shareholders' equity | $ 2,110,321 | $ 2,256,559 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 82,500 | 82,500 |
Common shares, shares issued | 82,500 | 82,500 |
Common shares, shares outstanding | 75,203 | 75,007 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Shares | Additional Paid-In Capital | Treasury Shares | Accumulated Deficit | Total |
Beginning Balance (in shares) at Dec. 31, 2018 | 75,031 | 7,469 | |||
Beginning Balance at Dec. 31, 2018 | $ 750 | $ 1,645,692 | $ (27,484) | $ 1,618,958 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares repurchased | $ (124) | (124) | |||
Shares repurchased (in shares) | (8) | 8 | |||
Share-based compensation | 865 | 865 | |||
Net loss | (83,979) | (83,979) | |||
Ending Balance (in shares) at Mar. 31, 2019 | 75,023 | 7,477 | |||
Ending Balance at Mar. 31, 2019 | $ 750 | 1,646,557 | $ (124) | (111,463) | 1,535,720 |
Beginning Balance (in shares) at Dec. 31, 2018 | 75,031 | 7,469 | |||
Beginning Balance at Dec. 31, 2018 | $ 750 | 1,645,692 | (27,484) | 1,618,958 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (248,348) | ||||
Ending Balance (in shares) at Sep. 30, 2019 | 75,007 | 7,493 | |||
Ending Balance at Sep. 30, 2019 | $ 751 | 1,650,685 | $ (652) | (275,832) | 1,374,952 |
Beginning Balance (in shares) at Mar. 31, 2019 | 75,023 | 7,477 | |||
Beginning Balance at Mar. 31, 2019 | $ 750 | 1,646,557 | $ (124) | (111,463) | 1,535,720 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares repurchased | $ (528) | (528) | |||
Shares repurchased (in shares) | (36) | 36 | |||
Share-based compensation | 2,199 | 2,199 | |||
Net loss | (73,586) | (73,586) | |||
Ending Balance (in shares) at Jun. 30, 2019 | 74,987 | 7,513 | |||
Ending Balance at Jun. 30, 2019 | $ 750 | 1,648,756 | $ (652) | (185,049) | 1,463,805 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under share-based compensation plan (in shares) | 20 | (20) | |||
Shares issued under share-based compensation plan | $ 1 | (83) | (82) | ||
Share-based compensation | 2,012 | 2,012 | |||
Net loss | (90,783) | (90,783) | |||
Ending Balance (in shares) at Sep. 30, 2019 | 75,007 | 7,493 | |||
Ending Balance at Sep. 30, 2019 | $ 751 | 1,650,685 | $ (652) | (275,832) | $ 1,374,952 |
Beginning Balance (in shares) at Dec. 31, 2019 | 75,007 | 7,493 | 82,500 | ||
Beginning Balance at Dec. 31, 2019 | $ 751 | 1,652,681 | $ (652) | (583,949) | $ 1,068,831 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under share-based compensation plan (in shares) | 192 | (192) | |||
Shares issued under share-based compensation plan | $ 1 | (280) | (279) | ||
Share-based compensation | 1,847 | 1,847 | |||
Net loss | (60,963) | (60,963) | |||
Ending Balance (in shares) at Mar. 31, 2020 | 75,199 | 7,301 | |||
Ending Balance at Mar. 31, 2020 | $ 752 | 1,654,248 | $ (652) | (644,912) | $ 1,009,436 |
Beginning Balance (in shares) at Dec. 31, 2019 | 75,007 | 7,493 | 82,500 | ||
Beginning Balance at Dec. 31, 2019 | $ 751 | 1,652,681 | $ (652) | (583,949) | $ 1,068,831 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | $ (218,604) | ||||
Ending Balance (in shares) at Sep. 30, 2020 | 75,203 | 7,297 | 82,500 | ||
Ending Balance at Sep. 30, 2020 | $ 752 | 1,657,202 | $ (652) | (802,553) | $ 854,749 |
Beginning Balance (in shares) at Mar. 31, 2020 | 75,199 | 7,301 | |||
Beginning Balance at Mar. 31, 2020 | $ 752 | 1,654,248 | $ (652) | (644,912) | 1,009,436 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under share-based compensation plan (in shares) | 4 | (4) | |||
Share-based compensation | 1,806 | 1,806 | |||
Net loss | (87,398) | (87,398) | |||
Ending Balance (in shares) at Jun. 30, 2020 | 75,203 | 7,297 | |||
Ending Balance at Jun. 30, 2020 | $ 752 | 1,656,054 | $ (652) | (732,310) | 923,844 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Modification of unvested share-based compensation awards resulting in liability classification | (239) | (239) | |||
Share-based compensation | 1,387 | 1,387 | |||
Net loss | (70,243) | $ (70,243) | |||
Ending Balance (in shares) at Sep. 30, 2020 | 75,203 | 7,297 | 82,500 | ||
Ending Balance at Sep. 30, 2020 | $ 752 | $ 1,657,202 | $ (652) | $ (802,553) | $ 854,749 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flow from operating activities: | ||
Net loss | $ (218,604) | $ (248,348) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 80,631 | 165,963 |
Amortization of deferred revenue | (11,433) | (1,513) |
Amortization of deferred costs | 20,824 | 879 |
Amortization of deferred financing costs | 430 | |
Amortization of debt premium, net | (519) | (330) |
Interest paid-in-kind | 9,237 | 25,638 |
Write-off of debt premium, net | (4,448) | |
Deferred income taxes | 1,065 | 7,157 |
Share-based compensation expense | 5,041 | 5,076 |
Loss from unconsolidated subsidiaries | 2,512 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,093 | 38,798 |
Materials and supplies | (1,284) | (3,557) |
Deferred costs | (13,968) | (6,329) |
Prepaid expenses and other assets | (2,000) | (4,155) |
Accounts payable and accrued expenses | 25,971 | 16,729 |
Deferred revenue | 5,482 | 7,444 |
Net cash provided by (used in) operating activities | (98,482) | 5,964 |
Cash flow from investing activities: | ||
Capital expenditures | (9,342) | (31,108) |
Net cash used in investing activities | (9,342) | (31,108) |
Cash flow from financing activities: | ||
Payments for shares issued under share-based compensation plan | (280) | (82) |
Proceeds from long-term debt | 50,000 | |
Payments for financing costs | (1,818) | (1,215) |
Purchases of treasury shares | (652) | |
Net cash provided by (used in) financing activities | 47,902 | (1,949) |
Net decrease in cash and cash equivalents | (59,922) | (27,093) |
Cash, cash equivalents and restricted cash, beginning of period | 284,709 | 389,075 |
Cash, cash equivalents and restricted cash, end of period | $ 224,787 | $ 361,982 |
Nature of Business
Nature of Business | 9 Months Ended |
Sep. 30, 2020 | |
Nature of Business | |
Nature of Business | Note 1 — Nature of Business Pacific Drilling S.A. and its subsidiaries (“Pacific Drilling,” the “Company,” “we,” “us” or “our”) is an international offshore drilling contractor committed to exceeding client expectations by delivering the safest, most efficient and reliable deepwater drilling services in the industry. |
Bankruptcy Proceedings and Liqu
Bankruptcy Proceedings and Liquidity | 9 Months Ended |
Sep. 30, 2020 | |
Emergence from Bankruptcy Proceedings | |
Bankruptcy Proceedings and Liquidity | Note 2 — Bankruptcy Proceedings and Liquidity Bankruptcy Proceeding in the Grand Court of the Cayman Islands Financial Services Division (the “Cayman Proceedings”). On November 1, 2020, the Bankruptcy Court approved the joint administration of the In re Pacific Drilling S.A et al. , Case No. 20-35212 (DRJ). No trustee has been appointed and we will continue to operate as a “debtor in possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. To assure ordinary course operations, we have sought and obtained approval from the Bankruptcy Court for a variety of “first day” motions, including authority to maintain bank accounts and other customary relief. The relief requested in these motions will allow us to continue to operate our business in the normal course. The Bankruptcy Petitions and the Cayman Proceedings were filed in order to effect a pre-arranged, consensual joint Chapter 11 plan of reorganization (the “Plan of Reorganization”) in accordance with the terms of a restructuring support agreement entered into by and among the Debtors and certain holders (the “Consenting Creditors”) of the Company’s Notes (as defined below) on October 30, 2020 (the “RSA”). As a result of the Bankruptcy Petitions, the realization of assets and the satisfaction of liabilities are subject to uncertainty. The filing of the Bankruptcy Petitions constituted an event of default with respect to all of our existing debt obligations. While operating as debtors-in-possession under Chapter 11, we may sell or otherwise dispose of or liquidate assets or settle liabilities, subject to the approval of the Bankruptcy Court or as otherwise permitted in the ordinary course of business (and subject to applicable orders of the Bankruptcy Court), for amounts other than those reflected in the accompanying condensed consolidated financial statements. Further, any restructuring plan may impact the amounts and classifications of assets and liabilities reported in our condensed consolidated financial statements. Emergence from 2017 Bankruptcy Proceedings — On November 2, 2018, the United States Bankruptcy Court for the Southern District of New York (the “2017 Bankruptcy Court”) confirmed the Company’s Modified Fourth Amended Joint Plan of Reorganization, dated October 31, 2018 (the “2018 Plan”), and on November 19, 2018, the 2018 Plan became effective and we emerged from our 2017 Chapter 11 bankruptcy proceedings (the “2017 Bankruptcy Proceedings”) after successfully completing our reorganization pursuant to the 2018 Plan. We had filed the 2018 Plan with the 2017 Bankruptcy Court in connection with our voluntary petitions for relief under the Bankruptcy Code, initially filed on November 12, 2017 (the “2017 Petition Date”), which were jointly administered under the caption In re Pacific Drilling S.A., et al. , Case No. 17-13193 (MEW). The Company’s two subsidiaries involved in the arbitration with Samsung Heavy Industries Co. Ltd. (“SHI”) related to the Pacific Zonda Pursuant to the 2018 Plan, we raised approximately $1.5 billion in new capital, before expenses, consisting of approximately $1.0 billion raised through the issuance of $750.0 million aggregate principal amount of our 8.375% First Lien Notes due 2023 (the “First Lien Notes”) and approximately $273.6 million aggregate principal amount of our 11.0%/12.0% Second Lien PIK Notes due 2024 (the “Second Lien PIK Notes” and, together with the First Lien Notes, the “Notes”), and $500.0 million raised through the issuance of new common shares pursuant to a private placement and a separate equity rights offering. We used a portion of the net proceeds to repay all of our pre-petition indebtedness that was not equitized pursuant to the 2018 Plan to repay the post-petition debtor-in-possession financing, and to pay certain fees and expenses. Upon our emergence from the 2017 Bankruptcy Proceedings on November 19, 2018, we deconsolidated the Zonda Debtors. The Zonda Debtors remain in the 2017 Bankruptcy Proceedings. During the year ended December 31, 2019, we accounted for our investment in the Zonda Debtors using the equity method of accounting. As of December 31, 2019, we discontinued applying the equity method on the Zonda Debtors. See Note 13. Liquidity Our liquidity fluctuates depending on a number of factors, including, among others, our contract backlog, our revenue efficiency and the timing of accounts receivable collection, as well as payments for operating costs and other obligations. Primary sources of funds for our short-term liquidity needs are expected to be our existing cash and cash equivalents. As of October 31, 2020, We have significant indebtedness. Our level of indebtedness has adversely impacted and is continuing to adversely impact our financial condition. Our financial condition, the defaults under our debt agreements, and the risks and uncertainties surrounding our Chapter 11 proceedings raise substantial doubt about our ability to continue as a going concern. However, the condensed consolidated financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities and commitments in the normal course of business. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of our Chapter 11 proceedings. If we cannot continue as a going concern, adjustments to the carrying values and classification of our assets and liabilities and the reported amounts of income and expenses could be required and could be material. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Significant Accounting Policies | |
Significant Accounting Policies | Note 3 — Significant Accounting Policies Basis of Presentation Principles of Consolidation purposes. We eliminate all intercompany transactions and balances in consolidation. We are party to a Nigerian joint venture, Pacific International Drilling West Africa Limited (“PIDWAL”), with Derotech Offshore Services Limited (“Derotech”), a privately-held Nigerian registered limited liability company. Derotech owns 51% of PIDWAL and we own 49% of PIDWAL. Each of, Pacific Bora Ltd. (“PBL”) and Pacific Scirocco Ltd. (“PSL”), which own the Pacific Bora Pacific Scirocco Recently Adopted Accounting Standards Measurement of Credit Losses on Financial Instruments Financial Instruments – Credit Losses (Topic 326) Recently Issued Accounting Standards Simplifications to Income Tax Accounting — |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property and Equipment | |
Property and Equipment | Note 4 — Property and Equipment Property and equipment consists of the following: September 30, December 31, 2020 2019 (in thousands) Drillships and related equipment $ 1,966,409 $ 1,962,211 Other property and equipment 330 259 Property and equipment, cost 1,966,739 1,962,470 Accumulated depreciation (200,551) (119,921) Property and equipment, net $ 1,766,188 $ 1,842,549 During the first quarter of 2020, the COVID-19 pandemic weakened demand for oil, and we saw significant cuts in the current year’s capital expenditure budgets for many exploration and production companies coupled with a severe oversupply of oil. The impact of these market conditions on our business has been direct and significantly negative. As a result, we determined an impairment indicator existed and we tested for impairment in the first quarter of 2020. We performed a recoverability test and determined that the estimated undiscounted cash flows of our drillships significantly exceeded their carrying amounts. As a result, no impairment loss was recorded. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt | |
Debt | Note 5 — Debt As of September 30, 2020, debt, net of debt premium (discount), consisted of the following: September 30, December 31, 2020 2019 (in thousands) Due within one year: Revolving Credit Facility $ 50,000 $ — First Lien Notes 750,000 — Second Lien PIK Notes 326,391 — Total current debt 1,126,391 — Long-term debt: First Lien Notes — 747,910 Second Lien PIK Notes — 325,824 Total long-term debt — 1,073,734 Total debt $ 1,126,391 $ 1,073,734 First Lien Notes On September 26, 2018, Pacific Drilling First Lien Escrow Issuer Limited (the “First Lien Escrow Issuer”), a private company limited by shares incorporated in the British Virgin Islands and wholly owned subsidiary of the Company, entered into an indenture (the “First Lien Notes Indenture”) with Wilmington Trust, National Association, as trustee (the “Trustee”) and collateral agent, relating to the issuance by the First Lien Escrow Issuer of the First Lien Notes. In November 2018, the First Lien Escrow Issuer merged into the Company and the Company assumed all obligations of the First Lien Escrow Issuer under the First Lien Notes Indenture. While discussions with the Consenting Creditors regarding the terms of a potential consensual comprehensive restructuring of its indebtedness were continuing prior to the filing of the Bankruptcy Petitions, the Company did not make the $31.4 million interest payment due and payable on October 1, 2020 with respect to the First Lien Notes, and used the 30-day The First Lien Notes accrue interest at a rate of 8.375% per annum, payable semi-annually in arrears on April 1 and October 1 of each year beginning on April 1, 2019. The First Lien Notes will mature on October 1, 2023, unless earlier redeemed or repurchased. The First Lien Notes are jointly and severally and fully and unconditionally guaranteed on a senior secured basis by all of the Company’s subsidiaries other than the Zonda Debtors, certain immaterial subsidiaries and PIDWAL. On October 15, 2020, the High Court denied the application of the Zonda Debtors to appeal the arbitration award against them. Accordingly, the Company expects that the Zonda Debtors will be liquidated in accordance with the terms of the Zonda Plan and the Zonda Debtors will not provide collateral for or guarantee the First Lien Notes or the Second Lien PIK Notes. See Note 13 for further discussion. The First Lien Notes are secured by first-priority liens on substantially all assets of the Company and the guarantors (other than certain excluded property), including (i) vessels, (ii) books and records, (iii) certain deposit accounts and the amounts contained therein, (iv) assignments of proceeds of hull and machinery and loss of hire insurance, (v) assignments of earnings from drilling contracts, and (vi) equity interests owned by the Company and the guarantors, in each case, subject to certain exceptions. The First Lien Notes Indenture contains covenants limiting the ability of the Company, and any subsidiary to, among other things, (i) incur or guarantee additional indebtedness and issue preferred stock, (ii) pay dividends on or redeem or repurchase capital stock, make certain investments, make certain payments on or with respect to subordinated and junior debt (including making cash interest or principal payments on the Second Lien PIK Notes (as defined below)), (iii) create or incur certain liens, (iv) impose restrictions on the ability of restricted subsidiaries to pay dividends, (v) merge or consolidate with other entities, (vi) enter into certain transactions with affiliates, (vii) impair the security interests in the collateral for the First Lien Notes, and (viii) engage in certain lines of business. These covenants are subject to a number of important exceptions and qualifications and certain of them will be suspended with respect to the First Lien Notes in the event that the First Lien Notes obtain an investment grade rating. The Company may be required to offer to purchase the First Lien Notes at 101.0% of the principal amount thereof, plus accrued and unpaid interest, upon the occurrence of a Change of Control (as defined in the First Lien Notes Indenture), and at 100.0% of the principal amount, plus accrued and unpaid interest, under certain other circumstances. At any time on or after October 1, 2020, the Company may redeem the First Lien Notes, in whole or in part, at the following redemption prices (expressed as a percentage of the principal amount), plus accrued and unpaid interest, during the twelve-month period beginning on October 1 of the years indicated: 2020 – 104.188%; 2021 – 102.094%; 2022 and thereafter – 100.0%. The First Lien Notes Indenture contains customary events of default, including, among other things, (i) failure to make required payments; (ii) failure to comply with certain agreements or covenants; (iii) failure to pay certain other indebtedness; (iv) certain events of bankruptcy and insolvency; and (v) failure to pay certain judgments. An event of default under the First Lien Notes Indenture will allow either the Trustee or the holders of at least 25.0% in aggregate principal amount of the then-outstanding First Lien Notes to accelerate, or in certain cases will automatically cause the acceleration of, the amounts due under the First Lien Notes. Intercreditor Agreement The relationship between holders of First Lien Notes (and any future first lien debt), on the one hand, and Second Lien PIK Notes (and any future junior lien debt), on the other hand, is governed by an intercreditor agreement. Pursuant to the intercreditor agreement, the liens securing first lien debt are effectively senior in priority to the liens securing junior lien debt. Second Lien PIK Notes On September 26, 2018, Pacific Drilling Second Lien Escrow Issuer Limited (the “Second Lien Escrow Issuer”), a private company limited by shares incorporated in the British Virgin Islands and a wholly owned subsidiary of the Company, entered into an indenture (the “Second Lien PIK Notes Indenture”) with the Trustee, as trustee and junior lien collateral agent, relating to the issuance by the Second Lien Escrow Issuer of approximately $273.6 million aggregate principal amount of Second Lien PIK Notes. Approximately $23.6 million aggregate principal amount was issued as a commitment fee to an ad hoc group of holders of our pre-petition notes in exchange for their agreement to backstop the issuance of the Second Lien PIK Notes. In November 2018, the Second Lien Escrow Issuer merged into the Company and the Company assumed all obligations of the Second Lien Escrow Issuer under the Second Lien PIK Notes Indenture. While discussions with the Consenting Creditors regarding the terms of a potential consensual comprehensive restructuring of its indebtedness were continuing prior to the filing of the Bankruptcy Petitions, the Company did not make the $19.6 million interest payment due and payable on October 1, 2020 with respect to the Second Lien PIK Notes, and used the 30-day Company obtained any necessary waiver or consent.As a result of the filing of the Bankruptcy Petitions, the full principal amount of the Second Lien PIK Notes was automatically accelerated and is currently due and payable. For each interest period, interest is payable, at the option of the Company, (i) entirely in cash (“Cash Interest”), (ii) entirely through the issuance of additional Second Lien PIK Notes having the same terms and conditions as the Second Lien PIK Notes issued in the initial Second Lien PIK Notes offering in a principal amount equal to the amount of interest then due and payable or by increasing the then outstanding aggregate principal amount of Second Lien PIK Notes (“PIK Interest”) or (iii) 50% as Cash Interest and 50% as PIK Interest. If the Company elects to pay interest for an interest period entirely in the form of Cash Interest, interest will accrue at a rate of 11.0% per annum for such interest period. If the Company elects to pay interest for an interest period entirely in the form of PIK Interest, interest will accrue at a rate of 12.0% per annum for such interest period. If the Company elects to pay 50% in Cash Interest and 50% in PIK Interest for an interest period, (i) interest in respect of the Cash Interest portion will accrue at 11.0% and (ii) interest in respect of the PIK Interest portion will accrue at 12.0% for such interest period. Interest on the Second Lien PIK Notes is payable semi-annually in arrears on April 1 and October 1 of each year beginning on April 1, 2019. The Second Lien PIK Notes will mature on April 1, 2024, unless earlier redeemed or repurchased. As of September 30, 2020, the Company has made the following payments in the form of PIK Interest: Payment Date PIK Interest (in thousands) April 1, 2019 $ 16,873 October 1, 2019 17,429 April 1, 2020 18,475 The Second Lien PIK Notes are jointly and severally and fully and unconditionally guaranteed on a senior secured basis by all of the Company’s subsidiaries that guarantee the Company’s First Lien Notes and are secured by second-priority liens on all of the assets of the Company and the guarantors that also serve as collateral for the Company’s First Lien Notes. The Second Lien PIK Notes Indenture contains covenants limiting the ability of the Company, and any subsidiary to, among other things, (i) incur or guarantee additional indebtedness and issue preferred stock, (ii) pay dividends on or redeem or repurchase capital stock, make certain investments, make certain payments on or with respect to subordinated and junior debt, (iii) create or incur certain liens, (iv) impose restrictions on the ability of restricted subsidiaries to pay dividends, (v) merge or consolidate with other entities, (vi) enter into certain transactions with affiliates, (vii) impair the security interests in the collateral for the Second Lien PIK Notes, and (viii) engage in certain lines of business. These covenants are subject to a number of important exceptions and qualifications and certain of them will be suspended with respect to the Second Lien PIK Notes in the event that the Second Lien PIK Notes obtain an investment grade rating. The Company may be required to offer to purchase the Second Lien PIK Notes at 101.0% of the principal amount thereof, plus accrued and unpaid interest, upon the occurrence of a Change of Control (as defined in the Second Lien PIK Notes Indenture) (a “Change of Control Offer”), and at 100.0% of the principal amount, plus accrued and unpaid interest, under certain other circumstances. The Company may redeem the Second Lien PIK Notes, in whole or in part, at the following redemption prices (expressed as a percentage of principal amount), plus any accrued and unpaid interest, during the six-month period beginning on the dates indicated below: Date Price October 1, 2020 109.0% April 1, 2021 106.0% October 1, 2021 103.0% April 1, 2022 and thereafter 100.0% At any time after a Change of Control occurs, the Company may redeem all, but not less than all, of the Second Lien PIK Notes at the following redemption prices (expressed as a percentage of principal amount), plus any accrued and unpaid interest, during the six-month period beginning on the dates indicated below: Date Price October 1, 2020 109.0% April 1, 2021 106.0% October 1, 2021 103.0% April 1, 2022 and thereafter 100.0% If the Company exercises this Change of Control redemption right, it may elect not to make the Change of Control Offer described above. The Second Lien PIK Notes Indenture contains customary events of default, including, among other things, (i) failure to make required payments; (ii) failure to comply with certain agreements or covenants; (iii) failure to pay certain other indebtedness; (iv) certain events of bankruptcy and insolvency; and (v) failure to pay certain judgments. An event of default under the Second Lien PIK Notes Indenture will allow either the Trustee or the holders of at least 25.0% in aggregate principal amount of the then-outstanding Second Lien PIK Notes to accelerate, or in certain cases, will automatically cause the acceleration of, the amounts due under the Second Lien PIK Notes. Revolving Credit Facility On February 7, 2020, the Company, as borrower, Angelo, Gordon Energy Servicer, LLC (“Angelo Gordon”), as administrative agent and the lenders party thereto, entered into a revolving credit agreement that provided a $50.0 million first lien superpriority revolving credit facility (the “Revolving Credit Facility”). As of September 30, 2020, the full available amount of $50.0 million was drawn on the facility. All borrowings under the Revolving Credit Facility were incurred at the Company level. The Revolving Credit Facility was scheduled to mature on April 1, 2023. Borrowings under the Revolving Credit Facility bore interest at a LIBO rate determined by reference to the then effective three-month LIBO rate, with a 1.5% floor, adjusted for statutory reserve requirements, plus an applicable percentage of 7.5 %, payable quarterly. The Company paid a quarterly commitment fee at a 1.5% annual rate for unused commitments. On October 30, 2020, prior to the filing of the Bankruptcy Petitions, the Company repaid in full the $50.0 million Revolving Credit Facility plus accrued interest and prepayment premium, and the Revolving Credit Facility was terminated. Upon such repayment in accordance with the payoff letter, dated October 29, 2020 by and between the Company and Angelo Gordon, the Revolving Credit Facility and all commitments thereunder were terminated, all liens and security interests granted to secure the obligations under the Revolving Credit Facility were automatically terminated, and the Company and its agents and designees were authorized to file such termination statements and releases in order to permit the termination of such liens and security interests. Debt Premium (Discount) and Deferred Financing Costs As a result of the filing of the Bankruptcy Petitions, we wrote off $6.1 million of unamortized net debt premium associated with our First Lien Notes and Second Lien PIK Notes and $1.6 million of deferred financing costs associated with the Revolving Credit Facility as of September 30, 2020. The net effect of such write-offs is presented as “Write-off of debt premium, net” in the condensed consolidated statements of operations. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share | |
Earnings per Share | Note 6 — Earnings per Share The following reflects the income and the share data used in the basic and diluted earnings per share (“EPS”) computations: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands, except per share information) Numerator: Net loss, basic and diluted $ (70,243) $ (90,783) $ (218,604) $ (248,348) Denominator: Weighted-average shares outstanding, basic 75,203 75,005 75,195 75,012 Weighted-average shares outstanding, diluted 75,203 75,005 75,195 75,012 Loss per share: Basic $ (0.93) $ (1.21) $ (2.91) $ (3.31) Diluted $ (0.93) $ (1.21) $ (2.91) $ (3.31) The following table presents the share effects of share-based compensation awards that were excluded from our computations of diluted EPS, as their effect would have been anti-dilutive for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) (in thousands) Share-based compensation awards 169 1,622 169 1,622 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes | |
Income Taxes | Note 7 — Income Taxes We recognize tax benefits from an uncertain tax position only if it is more likely than not that the position will be sustained upon examination by taxing authorities based on the technical merits of the position. The amount recognized is the largest benefit that we believe has greater than a 50% likelihood of being realized upon settlement. As of September 30, 2020 and December 31, 2019, we had $43.5 million and $43.5 million, respectively, of unrecognized tax benefits which were included in other long-term liabilities on our condensed consolidated balance sheets and would favorably impact our consolidated effective tax rate if realized. To the extent we have income tax receivable balances available to utilize against amounts payable for unrecognized tax benefits, we have presented such receivable balances as a reduction to other long-term liabilities on our condensed consolidated balance sheets. As of September 30, 2020 and December 31, 2019 we have no accrued interest and penalties related to uncertain tax positions on our balance sheets as such payments would not be required by law. |
Revenue from Contracts with Cli
Revenue from Contracts with Clients | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contracts with Clients | |
Revenue from Contracts with Clients | Note 8 — Revenue from Contracts with Clients Our contracts generally provide for termination at the election of the client with an “early termination payment” to be paid to us if a contract is terminated prior to the expiration of the fixed term. Such compensation is recognized as revenue when our performance obligation is satisfied, the termination fee can be reasonably measured and collection is probable. For the three and nine months ended September 30, 2020, our revenue included $14.1 million of termination fees as a result of client cancellations. Contract Assets and Liabilities The following table provides information about trade receivables, contract assets and contract liabilities: September 30, December 31, 2020 2019 (in thousands) Trade receivables, net $ 23,588 $ 28,926 Current contract liabilities (deferred revenue) 1,616 7,567 Significant changes in contract assets and contract liabilities for the nine months ended September 30, 2020 are as follows: Contract Assets Contract Liabilities (in thousands) Balance at December 31, 2019 $ — $ 7,567 Decrease due to amortization of deferred revenue — (11,433) Increase due to billings related to mobilization revenue and capital upgrades — 5,582 Increase due to demobilization revenue recognized 5,100 — Decrease due to billing of demobilization fee (5,000) — Transfers between balances (100) (100) Balance at September 30, 2020 $ — $ 1,616 Future Amortization of Contract Liabilities The following table reflects revenue expected to be recognized in the future related to unsatisfied performance obligations as of September 30, 2020: Remaining three months For the years ending December 31, 2020 2021 2022 2023 and thereafter Total (in thousands) Amortization of contract liabilities $ 633 $ 1,095 $ — $ — $ 1,728 The expected timing for recognition of such revenue is based on the estimated start date and duration of each respective contract as of September 30, 2020. The actual timing of recognition of such amounts may vary due to factors outside of our control. We have applied the optional exemption in Topic 606 and have not disclosed the variable consideration related to our estimated future dayrate revenue. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Leases | Note 9 — Leases Our leasing activities primarily consist of operating leases with our integrated services subcontractors, corporate offices, regional shorebase offices and office equipment. The components and other information related to leases are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Lease Expense Operating lease cost $ 5,382 $ 732 $ 22,932 $ 2,100 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 366 360 1,099 1,079 Right-of-use assets obtained in exchange for lease obligations: Operating leases — — — 6,935 September 30, 2020 December 31, 2019 Weighted Average Remaining Lease Term (in years) Operating leases 4.0 4.8 Weighted Average Discount Rate Operating leases 8.1% 8.1% Future minimum lease payments for our leases as of September 30, 2020 and a reconciliation to lease liabilities recorded on our condensed consolidated balance sheet are as follows: Operating Leases Years Ending December 31, (in thousands) 2020 (excluding nine months ended September 30, 2020) $ 373 2021 1,499 2022 1,525 2023 1,552 2024 1,179 Total future minimum lease payments 6,128 Less imputed interest (882) Total $ 5,246 Reported as of September 30, 2020 Accrued expenses $ 1,118 Other long-term liabilities 4,128 Total lease liabilities $ 5,246 |
Credit Losses
Credit Losses | 9 Months Ended |
Sep. 30, 2020 | |
Credit Losses | |
Credit Losses | Note 10 — Credit Losses Effective January 1, 2020, we recognize an allowance for credit losses that results in the underlying accounts receivable reflecting the net amount expected to be collected. The allowance is measured and recorded upon the initial recognition of the accounts receivable based on its amortized cost that we do not expect to collect over the contractual life. We use short-term creditworthiness data of our clients from credit rating agencies to measure expected credit losses on accounts receivable on a collective basis when similar risk characteristics exist. If we determine that the accounts receivable from a client does not share risk characteristics with others, we evaluate the asset for expected credit losses on an individual basis and do not include it in a collective evaluation. To estimate the allowance for credit losses, we apply the aging method based on our historical credit loss experience adjusted for any applicable current conditions and reasonable and supportable forecasts of future economic conditions. We considered the impact of the COVID-19 pandemic and lower oil prices on our current estimate of credit losses as of September 30, 2020. As of both January 1, 2020 and September 30, 2020, the allowance for credit losses related to our accounts receivable and contract assets was nil, and there were no corresponding activities for the three and nine months ended September 30, 2020. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Note 11 — Share-Based Compensation During the third quarter of 2020, the Company modified its cash incentive programs and cancelled all outstanding equity compensation awards granted to key executive officers and employees with the concurrent grant of new cash retention and incentive bonuses. The retention bonuses are subject to service-based vesting through the earlier of: (i) August 3, 2021 and (ii) the effective date of the Company’s Plan of Reorganization (the “Vesting Date”). The incentive bonuses are subject to both (i) performance-based vesting upon the Company’s achievement of certain performance metrics during the third and fourth quarters of the Company’s 2020 fiscal year and (ii) service-based vesting through either the payment date of the bonus (for non-executive employees) or the Vesting Date (for executive officers). We accounted for the transaction as a modification of unvested share-based compensation awards, which resulted in the transfer of $0.2 million from equity to liability for the three months ended September 30, 2020. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures | |
Fair Value Measurements | Note 12 — Fair Value Measurements We estimated fair value by using appropriate valuation methodologies and information available to management as of September 30, 2020 and December 31, 2019. Considerable judgment is required in developing these estimates, and accordingly, estimated values may differ from actual results. The estimated fair value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses approximated their carrying value due to their short-term nature. It is not practicable to estimate the fair value of the Revolving Credit Facility. The following table presents the carrying value and estimated fair value of our cash and cash equivalents and debt: September 30, 2020 December 31, 2019 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value (in thousands) Cash and cash equivalents $ 218,681 $ 218,681 $ 278,620 $ 278,620 First Lien Notes 750,000 135,000 747,910 682,500 Second Lien PIK Notes 326,391 1,632 325,824 183,949 Our cash equivalents are primarily invested in money market instruments with original maturities of three months or less. We estimate the fair values of our debt using quoted market prices to the extent available and significant other observable inputs, which represent Level 2 fair value measurements. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure | |
Commitments and Contingencies | Note 13 — Commitments and Contingencies Commitments Bank Guarantee Contingencies On the Petition Date, Pacific Drilling S.A. and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. As a result of the Chapter 11 proceedings, attempts to prosecute, collect, secure or enforce remedies with respect to pre-petition claims against us are subject to the automatic stay provisions of Section 362(a) of the Bankruptcy Code, including litigation relating to us and our subsidiaries that are Debtors in the Chapter 11 proceedings. In January 2013, the Zonda Debtors entered into, and/or guaranteed a construction contract with SHI for the construction of the Pacific Zonda Pacific Zonda Pacific Zonda An evidentiary hearing was held in London before the Tribunal from February 5 through March 2, 2018. Written closing submissions and short replies to such submissions were filed with the Tribunal in May 2018. Oral closing submissions were heard by the Tribunal in early August 2018. As part of our “first day” relief in the 2017 Chapter 11 proceedings, the 2017 Bankruptcy Court granted us a modification of the automatic stay provisions of the Bankruptcy Code to allow us to proceed with this arbitration. In the 2017 Chapter 11 proceedings, SHI asserted claims against the Zonda Debtors, secured by the Pacific Zonda On January 15, 2020, the Tribunal awarded SHI approximately $320 million with respect to its claims against the Zonda Debtors. The award does not include approximately $100 million in interest and costs sought by SHI, on which the Tribunal reserved making a decision to a later date. On February 11, 2020, the Zonda Debtors filed an application with the High Court in London seeking permission to appeal the Tribunal’s award. On October 15, 2020, the High Court in London denied the application by the Zonda Debtors. The Company expects that the Zonda Debtors will be liquidated in accordance with the terms of the Zonda Plan. As a result of the Tribunal’s decision, we have eliminated our investment and net receivable balances related to the Zonda Debtors as of December 31, 2019. As of December 31, 2019, we had no cost basis in our investment in the Zonda Debtors and discontinued the equity method of accounting. On December 20, 2018, after the Company and its subsidiaries other than the Zonda Debtors had completed the 2018 Plan and emerged from bankruptcy, SHI filed with the 2017 Bankruptcy Court an untimely secured contingency claim against Pacific Drilling S.A., our parent company, in the amount of approximately $387.4 million. We filed an objection to the claim on the basis that the claim should be disallowed due to its being filed long after the May 1, 2018 claims bar date established by order of the 2017 Bankruptcy Court. On March 26, 2020, the 2017 Bankruptcy Court sustained our objection and expunged SHI’s claim, and on May 8, 2020, the 2017 Bankruptcy Court issued an order closing the Company’s 2017 bankruptcy case. The Company does not believe there would be a sound legal basis upon which any claims could be asserted by the Zonda Debtors against the Debtors. Nevertheless, under the terms of the Plan of Reorganization, any such claims or causes of action asserted, or that may be asserted, by the Zonda Debtors are General Unsecured Claims that will receive no distribution under the Plan of Reorganization, and will be released, extinguished, and discharged by the Plan of Reorganization. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | Note 14 — Supplemental Cash Flow Information During the nine months ended September 30, 2020 and 2019, we paid $33.9 million and $32.3 million of interest in cash, respectively. During the nine months ended September 30, 2020 and 2019, we paid $4.0 million and $6.3 million of income taxes, respectively. During the nine months ended September 30, 2020 and 2019, we paid $0.8 million and $4.5 million in reorganization items, respectively. Within our condensed consolidated statements of cash flows, capital expenditures represent expenditures for which cash payments were made during the period. These amounts exclude accrued capital expenditures, which are capital expenditures that were accrued but unpaid. During the nine months ended September 30, 2020 and 2019, changes in accrued capital expenditures were $(5.1) million and $(4.5) million, respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events | |
Subsequent Events | Note 15 — Subsequent Events While discussions with the Consenting Creditors regarding the terms of a potential consensual comprehensive restructuring of its indebtedness were continuing prior to the filing of the Bankruptcy Petitions, the Company did not make the $31.4 million interest payment due and payable on October 1, 2020 with respect to the First Lien Notes and the $19.6 million PIK interest payment due and payable on October 1, 2020 with respect to the Second Lien PIK Notes. See Note 5. On October 15, 2020, the High Court in London denied the application by the Zonda Debtors to appeal the Tribunal’s award. See Note 13. On October 30, 2020, prior to filing the Bankrutpcy Petitions the Company repaid in full the $50.0 million first lien superpriority Revolving Credit Facility plus accrued interest and prepayment premium. See Note 5. On the Petition Date, Pacific Drilling S.A. and certain of its subsidiaries filed the Bankruptcy Petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. See Note 2. On November 2, 2020, the Company was notified by the New York Stock Exchange (the “NYSE”) that, as a result of the Bankruptcy Petitions, and in accordance with Section 802.01D of the NYSE Listed Company Manual, the NYSE has commenced proceedings to delist the Company’s common shares from the NYSE. The NYSE also indefinitely suspended trading of the Company’s common shares effective November 2, 2020. The NYSE will apply to the SEC to delist the common shares upon completion of all applicable procedures. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation |
Principles of Consolidation | Principles of Consolidation purposes. We eliminate all intercompany transactions and balances in consolidation. We are party to a Nigerian joint venture, Pacific International Drilling West Africa Limited (“PIDWAL”), with Derotech Offshore Services Limited (“Derotech”), a privately-held Nigerian registered limited liability company. Derotech owns 51% of PIDWAL and we own 49% of PIDWAL. Each of, Pacific Bora Ltd. (“PBL”) and Pacific Scirocco Ltd. (“PSL”), which own the Pacific Bora Pacific Scirocco |
Recently Adopted / Issued Accounting Standards | Recently Adopted Accounting Standards Measurement of Credit Losses on Financial Instruments Financial Instruments – Credit Losses (Topic 326) Recently Issued Accounting Standards Simplifications to Income Tax Accounting — |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property and Equipment | |
Summary of property and equipment | September 30, December 31, 2020 2019 (in thousands) Drillships and related equipment $ 1,966,409 $ 1,962,211 Other property and equipment 330 259 Property and equipment, cost 1,966,739 1,962,470 Accumulated depreciation (200,551) (119,921) Property and equipment, net $ 1,766,188 $ 1,842,549 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Debt | September 30, December 31, 2020 2019 (in thousands) Due within one year: Revolving Credit Facility $ 50,000 $ — First Lien Notes 750,000 — Second Lien PIK Notes 326,391 — Total current debt 1,126,391 — Long-term debt: First Lien Notes — 747,910 Second Lien PIK Notes — 325,824 Total long-term debt — 1,073,734 Total debt $ 1,126,391 $ 1,073,734 |
Schedule of payments in the form of PIK Interest | Payment Date PIK Interest (in thousands) April 1, 2019 $ 16,873 October 1, 2019 17,429 April 1, 2020 18,475 |
Schedule of redemption prices expressed as a percentage of principal amount | The Company may redeem the Second Lien PIK Notes, in whole or in part, at the following redemption prices (expressed as a percentage of principal amount), plus any accrued and unpaid interest, during the six-month period beginning on the dates indicated below: Date Price October 1, 2020 109.0% April 1, 2021 106.0% October 1, 2021 103.0% April 1, 2022 and thereafter 100.0% |
Occurrence Of Change Of Control | |
Schedule of redemption prices expressed as a percentage of principal amount | At any time after a Change of Control occurs, the Company may redeem all, but not less than all, of the Second Lien PIK Notes at the following redemption prices (expressed as a percentage of principal amount), plus any accrued and unpaid interest, during the six-month period beginning on the dates indicated below: Date Price October 1, 2020 109.0% April 1, 2021 106.0% October 1, 2021 103.0% April 1, 2022 and thereafter 100.0% |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share | |
Income and Share Data Used In Basic and Diluted EPS Computations | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands, except per share information) Numerator: Net loss, basic and diluted $ (70,243) $ (90,783) $ (218,604) $ (248,348) Denominator: Weighted-average shares outstanding, basic 75,203 75,005 75,195 75,012 Weighted-average shares outstanding, diluted 75,203 75,005 75,195 75,012 Loss per share: Basic $ (0.93) $ (1.21) $ (2.91) $ (3.31) Diluted $ (0.93) $ (1.21) $ (2.91) $ (3.31) |
Share Effects of Share-Based Compensation Awards Excluded from Computations of Diluted EPS | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) (in thousands) Share-based compensation awards 169 1,622 169 1,622 |
Revenue from Contracts with C_2
Revenue from Contracts with Clients (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contracts with Clients | |
Schedule of trade receivables, contract assets and contract liabilities | September 30, December 31, 2020 2019 (in thousands) Trade receivables, net $ 23,588 $ 28,926 Current contract liabilities (deferred revenue) 1,616 7,567 |
Schedule of significant changes in contract assets and contract liabilities | Contract Assets Contract Liabilities (in thousands) Balance at December 31, 2019 $ — $ 7,567 Decrease due to amortization of deferred revenue — (11,433) Increase due to billings related to mobilization revenue and capital upgrades — 5,582 Increase due to demobilization revenue recognized 5,100 — Decrease due to billing of demobilization fee (5,000) — Transfers between balances (100) (100) Balance at September 30, 2020 $ — $ 1,616 |
Summary of revenue expected to be recognized in the future related to unsatisfied performance obligations | Remaining three months For the years ending December 31, 2020 2021 2022 2023 and thereafter Total (in thousands) Amortization of contract liabilities $ 633 $ 1,095 $ — $ — $ 1,728 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Schedule of components and other information related to leases | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in thousands) Lease Expense Operating lease cost $ 5,382 $ 732 $ 22,932 $ 2,100 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 366 360 1,099 1,079 Right-of-use assets obtained in exchange for lease obligations: Operating leases — — — 6,935 September 30, 2020 December 31, 2019 Weighted Average Remaining Lease Term (in years) Operating leases 4.0 4.8 Weighted Average Discount Rate Operating leases 8.1% 8.1% |
Schedule of future minimum lease payments | Operating Leases Years Ending December 31, (in thousands) 2020 (excluding nine months ended September 30, 2020) $ 373 2021 1,499 2022 1,525 2023 1,552 2024 1,179 Total future minimum lease payments 6,128 Less imputed interest (882) Total $ 5,246 Reported as of September 30, 2020 Accrued expenses $ 1,118 Other long-term liabilities 4,128 Total lease liabilities $ 5,246 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures | |
Carrying Value and Estimated Fair Value of Other Long-term Debt Instruments | September 30, 2020 December 31, 2019 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value (in thousands) Cash and cash equivalents $ 218,681 $ 218,681 $ 278,620 $ 278,620 First Lien Notes 750,000 135,000 747,910 682,500 Second Lien PIK Notes 326,391 1,632 325,824 183,949 |
Bankruptcy Proceedings and Li_2
Bankruptcy Proceedings and Liquidity - (Details) $ in Thousands | Nov. 19, 2018USD ($) | Sep. 30, 2020USD ($)subsidiary | Oct. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 26, 2018USD ($) |
Bankruptcy Proceeding and Liquidity [Line Items] | |||||
Number of subsidiaries involved in arbitration with SHI | subsidiary | 2 | ||||
Proceeds for Reorganization | $ 1,500,000 | ||||
Proceeds raised from issuance of debt | 1,000,000 | ||||
Proceeds from issuance of common stock | $ 500,000 | ||||
Cash and cash equivalents | $ 218,681 | $ 116,400 | $ 278,620 | ||
Restricted Cash | $ 5,800 | ||||
First Lien Notes | |||||
Bankruptcy Proceeding and Liquidity [Line Items] | |||||
Aggregate principal amount | $ 750,000 | ||||
Debt instrument, interest rate | 8.375% | ||||
Second Lien PIK Notes | |||||
Bankruptcy Proceeding and Liquidity [Line Items] | |||||
Aggregate principal amount | $ 273,600 | ||||
Second Lien PIK Notes | Cash Interest | |||||
Bankruptcy Proceeding and Liquidity [Line Items] | |||||
Debt instrument, interest rate | 11.00% | ||||
Second Lien PIK Notes | Interest Payment in Kind | |||||
Bankruptcy Proceeding and Liquidity [Line Items] | |||||
Debt instrument, interest rate | 12.00% |
Significant Accounting Polici_3
Significant Accounting Policies - Principal of Consolidation (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Pacific International Drilling West Africa Limited | |
Variable Interest Entity [Line Items] | |
Percentage of ownership in joint venture | 49.00% |
Derotech Offshore Services Limited | Pacific International Drilling West Africa Limited | |
Variable Interest Entity [Line Items] | |
Percentage of ownership in joint venture | 51.00% |
Pacific International Drilling West Africa Limited | PDNL | |
Variable Interest Entity [Line Items] | |
Percentage of ownership in joint venture | 99.90% |
PDL | PDNL | |
Variable Interest Entity [Line Items] | |
Percentage of ownership in joint venture | 0.10% |
PDL | Pacific Bora Ltd and Pacific Scirocco Ltd | |
Variable Interest Entity [Line Items] | |
Percentage of ownership in joint venture | 49.90% |
PDNL | Pacific Bora Ltd and Pacific Scirocco Ltd | |
Variable Interest Entity [Line Items] | |
Percentage of ownership in joint venture | 50.10% |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | $ 1,966,739 | $ 1,962,470 | |
Accumulated depreciation | (200,551) | (119,921) | |
Property and equipment, net | 1,766,188 | 1,842,549 | |
Impairment loss | $ 0 | ||
Drillships and Related Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | 1,966,409 | 1,962,211 | |
Other property and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, cost | $ 330 | $ 259 |
Debt - Summary of Debt (Details
Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total current debt | $ 1,126,391 | |
Long-term debt | $ 1,073,734 | |
Total debt | 1,126,391 | 1,073,734 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Total current debt | 50,000 | |
First Lien Notes | ||
Debt Instrument [Line Items] | ||
Total current debt | 750,000 | |
Long-term debt | 747,910 | |
Second Lien PIK Notes | ||
Debt Instrument [Line Items] | ||
Total current debt | $ 326,391 | |
Long-term debt | $ 325,824 |
Debt - Lien Notes (Details)
Debt - Lien Notes (Details) - USD ($) $ in Thousands | Oct. 01, 2020 | Apr. 01, 2020 | Oct. 01, 2019 | Apr. 01, 2019 | Sep. 26, 2018 | Sep. 30, 2020 | Sep. 30, 2019 |
Debt Instrument [Line Items] | |||||||
Interest paid-in-kind | $ 9,237 | $ 25,638 | |||||
First Lien Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 750,000 | ||||||
Debt instrument, interest rate | 8.375% | ||||||
First Lien Notes | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Original principal amount (as a percent) | 25.00% | ||||||
First Lien Notes | Redemption Scenario Change Of Control | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 101.00% | ||||||
First Lien Notes | Redemption Scenario Certain Other Circumstances | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 100.00% | ||||||
First Lien Notes | Redemption Period One | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 104.188% | ||||||
First Lien Notes | Redemption Period Two | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 102.094% | ||||||
First Lien Notes | Redemption Period Three | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 100.00% | ||||||
First Lien Notes | Redemption Period Four | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 100.00% | ||||||
Second Lien PIK Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 273,600 | ||||||
Cash interest (as a percent) | 50.00% | ||||||
PIK Interest (as a percent) | 50.00% | ||||||
Commitment fee | $ 23,600 | ||||||
Second Lien PIK Notes | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Original principal amount (as a percent) | 25.00% | ||||||
Second Lien PIK Notes | Redemption Scenario Change Of Control | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 101.00% | ||||||
Second Lien PIK Notes | Redemption Scenario Certain Other Circumstances | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 100.00% | ||||||
Second Lien PIK Notes | Cash Interest | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate | 11.00% | ||||||
Second Lien PIK Notes | Interest Payment in Kind | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate | 12.00% | ||||||
Payment of PIK Interest | $ 18,475 | $ 17,429 | $ 16,873 | ||||
Second Lien PIK Notes | Redemption Period One | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 109.00% | ||||||
Second Lien PIK Notes | Redemption Period One | Redemption Scenario Change Of Control | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 109.00% | ||||||
Second Lien PIK Notes | Redemption Period Two | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 106.00% | ||||||
Second Lien PIK Notes | Redemption Period Two | Redemption Scenario Change Of Control | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 106.00% | ||||||
Second Lien PIK Notes | Redemption Period Three | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 103.00% | ||||||
Second Lien PIK Notes | Redemption Period Three | Redemption Scenario Change Of Control | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 103.00% | ||||||
Second Lien PIK Notes | Redemption Period Four | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 100.00% | ||||||
Second Lien PIK Notes | Redemption Period Four | Redemption Scenario Change Of Control | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price (as a percent) | 100.00% | ||||||
Subsequent Events | First Lien Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest payment due and payable | $ 31,400 | ||||||
Grace period to make interest payment | 30 days | ||||||
Subsequent Events | Second Lien PIK Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest payment due and payable | $ 19,600 | ||||||
Grace period to make interest payment | 30 days |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - USD ($) $ in Millions | Oct. 30, 2020 | Feb. 07, 2020 | Sep. 30, 2020 |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 50 | ||
Amount drawn | $ 50 | ||
Commitment fee (as a percent) | 1.50% | ||
Prepayment premium (as a percent) | 2.00% | ||
Write-off of deferred financing costs | $ 1.6 | ||
Revolving Credit Facility | Three-month LIBOR | |||
Debt Instrument [Line Items] | |||
LIBO rate floor | 1.50% | ||
Interest rate (as a percent) | 7.50% | ||
First Lien Notes and Second Lien PIK Notes | |||
Debt Instrument [Line Items] | |||
written off of unamortized net debt premium | $ 6.1 | ||
Subsequent Events | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Repayments of debt | $ 50 |
Earnings per Share - Income and
Earnings per Share - Income and Share Data Used In Basic and Diluted Earnings Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||||||
Net loss, basic and diluted | $ (70,243) | $ (87,398) | $ (60,963) | $ (90,783) | $ (73,586) | $ (83,979) | $ (218,604) | $ (248,348) |
Denominator: | ||||||||
Weighted-average shares outstanding, basic | 75,203 | 75,005 | 75,195 | 75,012 | ||||
Weighted-average shares outstanding, diluted | 75,203 | 75,005 | 75,195 | 75,012 | ||||
Loss per share: | ||||||||
Basic (in dollars per share) | $ (0.93) | $ (1.21) | $ (2.91) | $ (3.31) | ||||
Diluted (in dollars per share) | $ (0.93) | $ (1.21) | $ (2.91) | $ (3.31) |
Earnings per Share - Share Effe
Earnings per Share - Share Effects of Share-based Compensation Awards Excluded from Computations of Diluted EPS (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-Based Compensation Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Share-based compensation awards (in shares) | 169 | 1,622 | 169 | 1,622 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Income Taxes | ||
Unrecognized Tax Benefits | $ 43,500 | $ 43,500 |
Penalties and interest accrued | $ 0 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Clients (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Contract with Customer, Asset and Liability [Abstract] | |||
Trade receivables, net | $ 23,588 | $ 23,588 | $ 28,926 |
Current contract liabilities (deferred revenue) | 1,616 | 1,616 | $ 7,567 |
Termination fees included in revenue | $ 14,100 | $ 14,100 |
Revenue from Contracts with C_4
Revenue from Contracts with Clients - Contract assets and liabilities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Contract Assets | |
Increase due to demobilization revenue recognized | $ 5,100 |
Decrease due to billing of demobilization fee | (5,000) |
Transfers between balances | (100) |
Contract Liabilities | |
Balance at the beginning of period | 7,567 |
Decrease due to amortization of deferred revenue | (11,433) |
Increase due to billings related to mobilization revenue and capital upgrades | 5,582 |
Transfers between balances | (100) |
Balance at the end of period | $ 1,616 |
Revenue from Contracts with C_5
Revenue from Contracts with Clients - Future Amortization of Contract Liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Amortization of contract liabilities | $ 1,728 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
Amortization of contract liabilities | $ 633 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Amortization of contract liabilities | $ 1,095 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Leases | |||||
Operating lease cost | $ 5,382 | $ 732 | $ 22,932 | $ 2,100 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash flows from operating leases | $ 366 | $ 360 | $ 1,099 | 1,079 | |
Right-of-use assets obtained in exchange for lease obligations - operating leases | $ 6,935 | ||||
Weighted Average Remaining Lease Term (in years) | |||||
Operating leases | 4 years | 4 years | 4 years 9 months 18 days | ||
Weighted Average Discount Rate | |||||
Operating leases | 8.10% | 8.10% | 8.10% |
Leases - Maturity (Details)
Leases - Maturity (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Leases | |
2020 (excluding nine months ended September 30, 2020) | $ 373 |
2021 | 1,499 |
2022 | 1,525 |
2023 | 1,552 |
2024 | 1,179 |
Total future minimum lease payments | 6,128 |
Less imputed interest | (882) |
Total | $ 5,246 |
Leases - Balance Sheet Reportin
Leases - Balance Sheet Reporting (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Leases | |
Operating lease liability current | $ 1,118 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Liabilities, Current |
Operating lease liability noncurrent | $ 4,128 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities, Noncurrent |
Total lease liabilities | $ 5,246 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Jan. 01, 2020 | |
Credit Losses | |||
Allowance for doubtful receivables | |||
Change in credit loss allowance | $ 0 | $ 0 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Modification of unvested share-based compensation awards resulting in liability classification | $ 239 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Carrying Value | ||
Fair Value Disclosure | ||
Cash equivalents carrying value | $ 218,681 | $ 278,620 |
Carrying Value | First Lien Notes | ||
Fair Value Disclosure | ||
Long-term debt | 750,000 | 747,910 |
Carrying Value | Second Lien PIK Notes | ||
Fair Value Disclosure | ||
Long-term debt | 326,391 | 325,824 |
Estimated Fair Value | ||
Fair Value Disclosure | ||
Cash and cash equivalents | 218,681 | 278,620 |
Estimated Fair Value | First Lien Notes | ||
Fair Value Disclosure | ||
Long-term debt | 135,000 | 682,500 |
Estimated Fair Value | Second Lien PIK Notes | ||
Fair Value Disclosure | ||
Long-term debt | $ 1,632 | $ 183,949 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jan. 15, 2020USD ($) | Dec. 20, 2018USD ($) | Oct. 29, 2015USD ($) | Sep. 30, 2020USD ($) | Jan. 30, 2019USD ($) | Nov. 25, 2015item | Jan. 25, 2013USD ($) |
Construction Contract with SHI | Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of arbitrators | item | 3 | ||||||
Zonda debtors | |||||||
Loss Contingencies [Line Items] | |||||||
Cash | $ 4.6 | ||||||
SHI | Settled litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Claim awarded to SHI | $ 320 | ||||||
SHI | Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Interest award to be decided | $ 100 | ||||||
Drillships and Related Equipment | SHI | |||||||
Loss Contingencies [Line Items] | |||||||
Aggregate purchase price of vessels under construction | $ 517.5 | ||||||
Asserted claims | $ 387.4 | ||||||
Property and equipment | $ 75 | ||||||
Capital Addition Purchase Commitments | Drillships and Related Equipment | SHI | |||||||
Loss Contingencies [Line Items] | |||||||
Carrying value at date of rescission | 315.7 | ||||||
Payments of advances on contract to purchase drillship | $ 181.1 | ||||||
Surety Bond | |||||||
Loss Contingencies [Line Items] | |||||||
Guarantor Obligation maximum exposure | $ 5.4 |
Supplemental Cash Flow inform_2
Supplemental Cash Flow information - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Supplemental Cash Flow Information | ||
Interest paid net of capitalized | $ 33.9 | $ 32.3 |
Income taxes paid | 4 | 6.3 |
Payment of cash for reorganization | 0.8 | 4.5 |
Increase (decrease) in capital expenditure | $ (5.1) | $ (4.5) |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Events - USD ($) $ in Millions | Oct. 30, 2020 | Oct. 01, 2020 |
First Lien Notes | ||
Subsequent Event [Line Items] | ||
Interest payable | $ 31.4 | |
Second Lien PIK Notes | ||
Subsequent Event [Line Items] | ||
Interest payable | $ 19.6 | |
Revolving Credit Facility | ||
Subsequent Event [Line Items] | ||
Repayments of debt | $ 50 |