-
Revenue efficiency(a) of 99.6% for the fourth quarter
yielded revenue of $65.0 million, and a record revenue efficiency of
98.3% for full year 2017 yielded revenue of $319.7 million
-
Further optimized cost structure reducing daily operating expenses for
rigs operating under drilling contracts down to approximately $118,000
for full year 2017, as compared to $136,000 for full year 2016
-
During fourth-quarter 2017, Pacific Santa Ana commenced its
contract in Mauritania for Petronas and Erin Energy Corporation
exercised an option to extend the Pacific Bora contract for
work in Nigeria
LUXEMBOURG--(BUSINESS WIRE)--
Pacific Drilling S.A. (OTC: PACDQ) today announced a net loss for
fourth-quarter 2017 of $129.7 million, or $6.08 per diluted share,
compared to a net loss for third-quarter 2017 of $157.5 million, or
$7.38 per diluted share. Net loss for full-year 2017 was $525.2 million,
or $24.64 per diluted share.
On November 12, 2017 (the “Petition Date”), we and certain of our
subsidiaries filed voluntary petitions (the “Bankruptcy Petitions”) for
relief under Chapter 11 of Title 11 of the United States Code (the
“Bankruptcy Code”) in the United States Bankruptcy Court for the
Southern District of New York (the “Bankruptcy Court”).
CEO Paul Reese said, “We are very proud to have delivered a record
revenue efficiency of 98.3% for the full-year 2017. Throughout the year,
we also continued to optimize our cost structure. Our full-year 2017
average daily expenses for operating rigs were 34% below our full-year
2014 average, when oil hit its peak.”
Mr. Reese continued, “These strong operating results continue to prove
the robustness of our platform, organization, and dedicated team. Our
performance continues to be recognized by clients. Even though we are
operating under the protection of Chapter 11, we have been invited to
participate in all major tenders, and during the fourth quarter we
commenced a contract with a significant new client, while an existing
client exercised an option to extend. Also, more recently we obtained a
letter of intent for drilling services for the Pacific Bora in
Nigeria subject to local government approval. While market conditions
continue to be challenging, it is encouraging to observe an increase in
tendering activity.”
Mr. Reese concluded, “We continue to have active dialogue with our
stakeholders and their respective advisors about the future capital
structure of the company. As we have stated previously, these
discussions are complex and involve many parties, and we remain focused
on achieving a capital structure that is sustainable for our company in
the long-term.”
Fourth-Quarter Operational and Financial
Commentary
Contract drilling revenue for fourth-quarter 2017 was $65.0 million,
which included $5.1 million of deferred revenue amortization, compared
to contract drilling revenue of $82.1 million for third-quarter 2017,
which included $5.5 million of deferred revenue amortization. The
decrease in revenues is primarily the result of lower activity on the Pacific
Bora and Pacific Scirocco, partially offset from revenues
earned by the Pacific Santa Ana starting its contract with
Petronas in December 2017.
Operating expenses for fourth-quarter 2017 were $59.7 million as
compared to $58.9 million for third-quarter 2017. The increase in
operating expense is primarily the result of costs from the Pacific
Santa Ana starting work under its contract with Petronas.
General and administrative expenses for fourth-quarter 2017 were $22.4
million as compared to $22.1 million for third-quarter 2017. Net of the
legal costs associated with the arbitration proceeding and patent
litigation, and legal and advisory expenses related to our on-going debt
restructuring efforts incurred prior to the Petition Date, our corporate
overhead(b) for fourth-quarter 2017 was $11.0 million,
compared to $15.3 million for third-quarter 2017. The decrease in
corporate overhead expenses was primarily related to severance related
costs incurred in third-quarter 2017.
Adjusted EBITDA(c) for fourth-quarter 2017 was $(16.5)
million, compared to Adjusted EBITDA of $1.9 million in third-quarter
2017. The decrease in Adjusted EBITDA was primarily the result of
decreased revenues during fourth-quarter 2017.
Interest expense for fourth-quarter 2017 was $27.4 million, as compared
to $51.1 million for third-quarter 2017, primarily due to interest
expense not being accrued subsequent to the Petition Date for the 2017
Senior Secured Notes, the 2020 Senior Secured Notes and the Senior
Secured Term Loan B.
During fourth-quarter 2017, we classified all income, expenses, gains or
losses that were incurred or realized subsequent to the Petition Date
and as a result of the Chapter 11 proceedings as reorganization items,
which primarily consisted of professional fees.
Income tax expense for fourth-quarter 2017 was $8.8 million, as compared
to $1.8 million for third-quarter 2017, primarily as a result of the
non-cash write-off of deferred tax assets.
For fourth-quarter 2017, cash flow from operations was $(37.0) million.
Cash balances, including $8.5 million in restricted cash, totaled $317.4
million as of December 31, 2017, and liabilities subject to compromise
totaled approximately $3.1 billion.
Update on Financial Restructuring under the
Protection of Chapter 11
We are currently operating our business as debtors-in-possession in
accordance with the applicable provisions of the Bankruptcy Code and
orders of the Bankruptcy Court. After we filed our Bankruptcy Petitions,
we 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 granted in these motions allows
us to continue to operate our business in the normal course.
Under the Bankruptcy Code, we had the exclusive right to file a plan of
reorganization under Chapter 11 through March 12, 2018. On March 22,
2018, the Bankruptcy Court approved our request for an order under which
we, our secured creditor groups and our majority shareholder will take
part in mediation before the Honorable James R. Peck, retired Bankruptcy
Court Judge for the Southern District of New York. The scope of the
mediation will be to facilitate discussions among us and our
stakeholders for the purpose of agreeing to the terms of a binding term
sheet or restructuring support agreement describing a Chapter 11 plan of
reorganization. In addition, the Bankruptcy Court extended the exclusive
period during which we can file a plan of reorganization to the earlier
of (i) two weeks following the termination of the mediation and (ii) 60
days, or May 21, 2018, without prejudice to seek further extensions of
the exclusive period.
Additional information about our 2017 financial results and the Chapter
11 proceedings can be found (i) in the Form 20-F containing our annual
report for the period ended December 31, 2017 as filed with the SEC,
(ii) on the Company’s website at www.pacificdrilling.com/investor-relations/sec-filings,
and www.pacificdrilling.com/restructuring
or (iii) via the Company’s restructuring information line at: +1
866-396-3566 (Toll Free) or +1 646-795-6175 (International Number).
The Company intends to continue to file quarterly and annual reports
with the SEC, which will also be available on the Company’s website. The
Company will not be holding an earnings conference call this quarter.
|
Footnotes
|
|
|
|
|
|
(a)
|
|
Revenue efficiency is defined as actual contractual dayrate revenue
(excluding mobilization fees, upgrade reimbursements and other
revenue sources) divided by the maximum amount of contractual
dayrate revenue that could have been earned during such period.
|
|
|
|
|
|
(b)
|
|
Corporate overhead expenses is a non-GAAP financial measure. For a
definition of corporate overhead expenses and a reconciliation to
general and administrative expenses, please refer to the schedule
included in this release.
|
|
|
|
|
|
(c)
|
|
EBITDA and Adjusted EBITDA are non-GAAP financial measures. For a
definition of EBITDA and Adjusted EBITDA and a reconciliation to net
income, please refer to the schedule included in this release.
Management uses this operational metric to track company results and
believes that this measure provides additional information that
highlights the impact of our operating efficiency as well as the
operating and support costs incurred in achieving the revenue
performance.
|
|
|
|
|
About Pacific Drilling
With its best-in-class drillships and highly experienced team, Pacific
Drilling is committed to becoming the industry’s preferred
high-specification, floating-rig drilling contractor. Pacific Drilling’s
fleet of seven drillships represents one of the youngest and most
technologically advanced fleets in the world. For more information about
Pacific Drilling, including our current Fleet Status, please visit our
website at www.pacificdrilling.com.
Forward-Looking Statements
Certain statements and information contained in this press release,
constitute “forward-looking statements” within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995, and are generally identifiable by the use of words such as “anticipate,”
“believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “our
ability to,” “plan,” “potential,” “projected,” “should,” “will,”
“would,” or other similar words, which are generally not historical in
nature.
Our forward-looking statements express our current expectations or
forecasts of possible future results or events, including future
financial and operational performance; revenue efficiency levels; market
outlook; forecasts of trends, future client contract opportunities,
contract dayrates; our business strategies and plans and objectives of
management; estimated duration of client contracts; backlog; expected
capital expenditures; projected costs and savings; the potential impact
of our Chapter 11 proceedings on our future operations and ability to
finance our business; and our ability to emerge from our Chapter 11
proceedings and continue as a going concern.
Although we believe that the assumptions and expectations reflected in
our forward-looking statements are reasonable and made in good faith,
these statements are not guarantees, and actual future results may
differ materially due to a variety of factors. These statements are
subject to a number of risks and uncertainties, many of which are beyond
our control.
Important factors that could cause actual results to differ materially
from our expectations include: the global oil and gas market and its
impact on demand for our services; the offshore drilling market,
including reduced capital expenditures by our clients; changes in
worldwide oil and gas supply and demand; rig availability and supply and
demand for high-specification drillships and other drilling rigs
competing with our fleet; costs related to stacking of rigs; our ability
to enter into and negotiate favorable terms for new drilling contracts
or extensions; our substantial level of indebtedness; possible
cancellation, renegotiation, termination or suspension of drilling
contracts as a result of mechanical difficulties, performance, market
changes or other reasons; our ability to continue as a going concern in
the long term, including our ability to confirm a plan of reorganization
that restructures our debt obligations to address our liquidity issues
and allows emergence from our Chapter 11 proceedings; our ability to
obtain Bankruptcy Court approval with respect to motions or other
requests made to the Bankruptcy Court in our Chapter 11 proceedings,
including maintaining strategic control as debtor-in-possession; our
ability to negotiate, develop, confirm and consummate a plan of
reorganization; the effects of our Chapter 11 proceedings on our
operations and agreements, including our relationships with employees,
regulatory authorities, customers, suppliers, banks and other financing
sources, insurance companies and other third parties; the effects of our
Chapter 11 proceedings on our Company and on the interests of various
constituents, including holders of our common shares and debt
instruments; Bankruptcy Court rulings in our Chapter 11 proceedings as
well as the outcome of all other pending litigation and arbitration
matters and the outcome of our Chapter 11 proceedings in general; the
length of time that we will operate under Chapter 11 protection and the
continued availability of operating capital during the pendency of the
proceedings; risks associated with third-party motions in our Chapter 11
proceedings, which may interfere with our ability to confirm and
consummate a plan of reorganization and restructuring generally;
increased advisory costs to execute a plan of reorganization; our
ability to access adequate debtor-in-possession financing or use cash
collateral; the potential adverse effects of our Chapter 11 proceedings
on our liquidity, results of operations, or business prospects;
increased administrative and legal costs related to our Chapter 11
proceedings and other litigation and the inherent risks involved in a
bankruptcy process; the cost, availability and access to capital and
financial markets, including the ability to secure new financing after
emerging from our Chapter 11 proceedings; and the other risk factors
described in our 2017 Annual Report on Form 20-F and our Current Reports
on Form 6-K. These documents are available through our website at www.pacificdrilling.com
or through the SEC’s website at www.sec.gov.
Readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date hereof. We undertake no
obligation to publicly update or revise any forward-looking statements
after the date they are made, whether as a result of new information,
future events or otherwise.
|
|
|
PACIFIC DRILLING S.A. (DEBTOR IN POSSESSION) AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share information) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Years Ended December 31,
|
|
|
|
|
December 31, 2017
|
|
|
September 30, 2017
|
|
|
December 31, 2016
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
|
|
|
$
|
65,024
|
|
|
|
$
|
82,110
|
|
|
|
$
|
177,957
|
|
|
|
$
|
319,716
|
|
|
|
$
|
769,472
|
|
|
|
$
|
1,085,063
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
(59,728
|
)
|
|
|
|
(58,925
|
)
|
|
|
|
(66,547
|
)
|
|
|
|
(244,089
|
)
|
|
|
|
(290,038
|
)
|
|
|
|
(431,261
|
)
|
|
General and administrative expenses
|
|
|
|
(22,448
|
)
|
|
|
|
(22,076
|
)
|
|
|
|
(18,908
|
)
|
|
|
|
(87,134
|
)
|
|
|
|
(63,379
|
)
|
|
|
|
(55,511
|
)
|
|
Depreciation expense
|
|
|
|
(69,894
|
)
|
|
|
|
(69,561
|
)
|
|
|
|
(69,881
|
)
|
|
|
|
(278,949
|
)
|
|
|
|
(275,901
|
)
|
|
|
|
(243,457
|
)
|
|
|
|
|
|
(152,070
|
)
|
|
|
|
(150,562
|
)
|
|
|
|
(155,336
|
)
|
|
|
|
(610,172
|
)
|
|
|
|
(629,318
|
)
|
|
|
|
(730,229
|
)
|
|
Loss from construction contract rescission
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(40,155
|
)
|
|
Operating income (loss)
|
|
|
|
(87,046
|
)
|
|
|
|
(68,452
|
)
|
|
|
|
22,621
|
|
|
|
|
(290,456
|
)
|
|
|
|
140,154
|
|
|
|
|
314,679
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(27,438
|
)
|
|
|
|
(51,146
|
)
|
|
|
|
(51,547
|
)
|
|
|
|
(178,983
|
)
|
|
|
|
(189,044
|
)
|
|
|
|
(156,361
|
)
|
|
Write-off of deferred financing costs
|
|
|
|
—
|
|
|
|
|
(30,846
|
)
|
|
|
|
—
|
|
|
|
|
(30,846
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Gain on debt extinguishment
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
36,233
|
|
|
|
|
—
|
|
|
Reorganization items
|
|
|
|
(6,474
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(6,474
|
)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Other income (expense)
|
|
|
|
(4
|
)
|
|
|
|
(5,307
|
)
|
|
|
|
419
|
|
|
|
|
(5,544
|
)
|
|
|
|
(2,393
|
)
|
|
|
|
(3,217
|
)
|
|
Income (loss) before income taxes
|
|
|
|
(120,962
|
)
|
|
|
|
(155,751
|
)
|
|
|
|
(28,507
|
)
|
|
|
|
(512,303
|
)
|
|
|
|
(15,050
|
)
|
|
|
|
155,101
|
|
|
Income tax expense
|
|
|
|
(8,770
|
)
|
|
|
|
(1,770
|
)
|
|
|
|
(14,529
|
)
|
|
|
|
(12,863
|
)
|
|
|
|
(22,107
|
)
|
|
|
|
(28,871
|
)
|
|
Net income (loss)
|
|
|
$
|
(129,732
|
)
|
|
|
$
|
(157,521
|
)
|
|
|
$
|
(43,036
|
)
|
|
|
$
|
(525,166
|
)
|
|
|
$
|
(37,157
|
)
|
|
|
$
|
126,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share, basic
|
|
|
$
|
(6.08
|
)
|
|
|
$
|
(7.38
|
)
|
|
|
$
|
(2.03
|
)
|
|
|
$
|
(24.64
|
)
|
|
|
$
|
(1.76
|
)
|
|
|
$
|
5.97
|
|
|
Weighted average number of common shares, basic
|
|
|
|
21,338
|
|
|
|
|
21,332
|
|
|
|
|
21,184
|
|
|
|
|
21,315
|
|
|
|
|
21,167
|
|
|
|
|
21,145
|
|
|
Earnings (loss) per common share, diluted
|
|
|
$
|
(6.08
|
)
|
|
|
$
|
(7.38
|
)
|
|
|
$
|
(2.03
|
)
|
|
|
$
|
(24.64
|
)
|
|
|
$
|
(1.76
|
)
|
|
|
$
|
5.97
|
|
|
Weighted average number of common shares, diluted
|
|
|
|
21,338
|
|
|
|
|
21,332
|
|
|
|
|
21,184
|
|
|
|
|
21,315
|
|
|
|
|
21,167
|
|
|
|
|
21,156
|
|
|
|
|
PACIFIC DRILLING S.A. (DEBTOR IN POSSESSION) AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
308,948
|
|
|
$
|
349,807
|
|
|
$
|
585,980
|
|
Restricted cash
|
|
|
|
8,500
|
|
|
|
8,500
|
|
|
|
40,188
|
|
Accounts receivable, net
|
|
|
|
40,909
|
|
|
|
36,361
|
|
|
|
94,622
|
|
Materials and supplies
|
|
|
|
87,332
|
|
|
|
89,331
|
|
|
|
95,679
|
|
Deferred costs, current
|
|
|
|
14,892
|
|
|
|
11,168
|
|
|
|
10,454
|
|
Prepaid expenses and other current assets
|
|
|
|
14,774
|
|
|
|
10,160
|
|
|
|
13,892
|
|
Total current assets
|
|
|
|
475,355
|
|
|
|
505,327
|
|
|
|
840,815
|
|
Property and equipment, net
|
|
|
|
4,652,001
|
|
|
|
4,717,607
|
|
|
|
4,909,873
|
|
Long-term receivable
|
|
|
|
202,575
|
|
|
|
202,575
|
|
|
|
202,575
|
|
Other assets
|
|
|
|
33,030
|
|
|
|
42,587
|
|
|
|
44,944
|
|
Total assets
|
|
|
$
|
5,362,961
|
|
|
$
|
5,468,096
|
|
|
$
|
5,998,207
|
|
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
11,959
|
|
|
$
|
13,377
|
|
|
$
|
17,870
|
|
Accrued expenses
|
|
|
|
36,174
|
|
|
|
25,332
|
|
|
|
45,881
|
|
Long-term debt, current
|
|
|
|
—
|
|
|
|
3,043,967
|
|
|
|
496,790
|
|
Accrued interest
|
|
|
|
6,088
|
|
|
|
32,990
|
|
|
|
14,164
|
|
Deferred revenue, current
|
|
|
|
23,966
|
|
|
|
21,061
|
|
|
|
45,755
|
|
Total current liabilities
|
|
|
|
78,187
|
|
|
|
3,136,727
|
|
|
|
620,460
|
|
Long-term debt, net of current maturities
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,648,659
|
|
Deferred revenue
|
|
|
|
12,973
|
|
|
|
17,967
|
|
|
|
32,233
|
|
Other long-term liabilities
|
|
|
|
32,323
|
|
|
|
33,321
|
|
|
|
30,655
|
|
Total liabilities not subject to compromise
|
|
|
|
123,483
|
|
|
|
3,188,015
|
|
|
|
3,332,007
|
|
Liabilities subject to compromise
|
|
|
|
3,087,677
|
|
|
|
—
|
|
|
|
—
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
|
|
|
|
213
|
|
|
|
213
|
|
|
|
212
|
|
Additional paid-in capital
|
|
|
|
2,366,464
|
|
|
|
2,365,683
|
|
|
|
2,360,398
|
|
Accumulated other comprehensive loss
|
|
|
|
(14,493)
|
|
|
|
(15,164)
|
|
|
|
(19,193)
|
|
Retained earnings (accumulated deficit)
|
|
|
|
(200,383)
|
|
|
|
(70,651)
|
|
|
|
324,783
|
|
Total shareholders’ equity
|
|
|
|
2,151,801
|
|
|
|
2,280,081
|
|
|
|
2,666,200
|
|
Total liabilities and shareholders’ equity
|
|
|
$
|
5,362,961
|
|
|
$
|
5,468,096
|
|
|
$
|
5,998,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACIFIC DRILLING S. A. (DEBTOR IN POSSESSION) AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows
(in thousands) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Years Ended December 31,
|
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(129,732
|
)
|
|
$
|
(157,521
|
)
|
|
$
|
(43,036
|
)
|
|
|
$
|
(525,166
|
)
|
|
$
|
(37,157
|
)
|
|
$
|
126,230
|
|
|
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
|
69,894
|
|
|
|
69,561
|
|
|
|
69,881
|
|
|
|
|
278,949
|
|
|
|
275,901
|
|
|
|
243,457
|
|
|
Amortization of deferred revenue
|
|
|
|
(5,145
|
)
|
|
|
(5,487
|
)
|
|
|
(29,413
|
)
|
|
|
|
(46,829
|
)
|
|
|
(67,053
|
)
|
|
|
(86,276
|
)
|
|
Amortization of deferred costs
|
|
|
|
3,080
|
|
|
|
2,747
|
|
|
|
4,057
|
|
|
|
|
11,689
|
|
|
|
13,945
|
|
|
|
25,951
|
|
|
Amortization of deferred financing costs
|
|
|
|
—
|
|
|
|
8,488
|
|
|
|
7,858
|
|
|
|
|
24,889
|
|
|
|
18,786
|
|
|
|
11,278
|
|
|
Amortization of debt discount
|
|
|
|
—
|
|
|
|
321
|
|
|
|
208
|
|
|
|
|
940
|
|
|
|
1,279
|
|
|
|
1,015
|
|
|
Write-off of deferred financing costs
|
|
|
|
—
|
|
|
|
30,846
|
|
|
|
—
|
|
|
|
|
30,846
|
|
|
|
—
|
|
|
|
5,965
|
|
|
Loss from construction contract rescission
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
38,084
|
|
|
Deferred income taxes
|
|
|
|
7,497
|
|
|
|
(37
|
)
|
|
|
12,693
|
|
|
|
|
7,409
|
|
|
|
15,494
|
|
|
|
9,840
|
|
|
Share-based compensation expense
|
|
|
|
781
|
|
|
|
2,032
|
|
|
|
1,766
|
|
|
|
|
6,819
|
|
|
|
7,094
|
|
|
|
12,534
|
|
|
Gain on debt extinguishment
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
(36,233
|
)
|
|
|
—
|
|
|
Other-than-temporary impairment of available-for-sale securities
|
|
|
|
682
|
|
|
|
6,147
|
|
|
|
—
|
|
|
|
|
6,829
|
|
|
|
—
|
|
|
|
—
|
|
|
Reorganization items
|
|
|
|
5,315
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
5,315
|
|
|
|
—
|
|
|
|
—
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(4,548
|
)
|
|
|
(223
|
)
|
|
|
19,685
|
|
|
|
|
53,713
|
|
|
|
73,428
|
|
|
|
62,977
|
|
|
Materials and supplies
|
|
|
|
1,999
|
|
|
|
2,478
|
|
|
|
1,588
|
|
|
|
|
6,187
|
|
|
|
2,564
|
|
|
|
(2,583
|
)
|
|
Prepaid expenses and other assets
|
|
|
|
(10,327
|
)
|
|
|
(104
|
)
|
|
|
(16,720
|
)
|
|
|
|
(20,457
|
)
|
|
|
(29,276
|
)
|
|
|
(10,840
|
)
|
|
Accounts payable and accrued expenses
|
|
|
|
20,472
|
|
|
|
12,008
|
|
|
|
(23,013
|
)
|
|
|
|
38,214
|
|
|
|
(24,843
|
)
|
|
|
(18,712
|
)
|
|
Deferred revenue
|
|
|
|
3,056
|
|
|
|
(4,348
|
)
|
|
|
35,175
|
|
|
|
|
5,780
|
|
|
|
35,175
|
|
|
|
3,226
|
|
|
Net cash provided by (used in) operating activities
|
|
|
|
(36,976
|
)
|
|
|
(33,092
|
)
|
|
|
40,729
|
|
|
|
|
(114,873
|
)
|
|
|
249,104
|
|
|
|
422,146
|
|
|
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(3,883
|
)
|
|
|
(19,338
|
)
|
|
|
(9,819
|
)
|
|
|
|
(36,645
|
)
|
|
|
(52,625
|
)
|
|
|
(181,458
|
)
|
|
Purchase of available-for-sale securities
|
|
|
|
—
|
|
|
|
(2,000
|
)
|
|
|
—
|
|
|
|
|
(6,000
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Net cash used in investing activities
|
|
|
|
(3,883
|
)
|
|
|
(21,338
|
)
|
|
|
(9,819
|
)
|
|
|
|
(42,645
|
)
|
|
|
(52,625
|
)
|
|
|
(181,458
|
)
|
|
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for shares issued under share-based compensation plan
|
|
|
|
—
|
|
|
|
(8
|
)
|
|
|
—
|
|
|
|
|
(199
|
)
|
|
|
(89
|
)
|
|
|
(536
|
)
|
|
Proceeds from long-term debt
|
|
|
|
—
|
|
|
|
—
|
|
|
|
215,000
|
|
|
|
|
—
|
|
|
|
450,000
|
|
|
|
315,000
|
|
|
Payments on long-term debt
|
|
|
|
—
|
|
|
|
(1,875
|
)
|
|
|
(41,652
|
)
|
|
|
|
(146,473
|
)
|
|
|
(110,832
|
)
|
|
|
(581,083
|
)
|
|
Payments for financing costs
|
|
|
|
—
|
|
|
|
(939
|
)
|
|
|
(23,408
|
)
|
|
|
|
(4,530
|
)
|
|
|
(25,423
|
)
|
|
|
(4,070
|
)
|
|
Purchases of treasury shares
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(21,760
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
|
—
|
|
|
|
(2,822
|
)
|
|
|
149,940
|
|
|
|
|
(151,202
|
)
|
|
|
313,656
|
|
|
|
(292,449
|
)
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
(40,859
|
)
|
|
|
(57,252
|
)
|
|
|
180,850
|
|
|
|
|
(308,720
|
)
|
|
|
510,135
|
|
|
|
(51,761
|
)
|
|
Cash, cash equivalents and restricted cash, beginning of period
|
|
|
|
358,307
|
|
|
|
415,559
|
|
|
|
445,318
|
|
|
|
|
626,168
|
|
|
|
116,033
|
|
|
|
167,794
|
|
|
Cash, cash equivalents and restricted cash, end of period
|
|
|
$
|
317,448
|
|
|
$
|
358,307
|
|
|
$
|
626,168
|
|
|
|
$
|
317,448
|
|
|
$
|
626,168
|
|
|
$
|
116,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA Reconciliation
EBITDA is defined as earnings before interest, taxes, depreciation and
amortization. Adjusted EBITDA is defined as earnings before interest,
taxes, depreciation and amortization, other-than-temporary impairment of
available-for-sale securities, write-off of deferred financing costs,
loss from construction contract rescission, gain on debt extinguishment,
and reorganization items. EBITDA and Adjusted EBITDA do not represent
and should not be considered an alternative to net income, operating
income, cash flow from operations or any other measure of financial
performance presented in accordance with generally accepted accounting
principles in the United States of America (“GAAP”) and our calculation
of EBITDA and Adjusted EBITDA may not be comparable to that reported by
other companies. EBITDA and Adjusted EBITDA are included herein because
they are used by management to measure the Company’s operations.
Management believes that EBITDA and Adjusted EBITDA present useful
information to investors regarding the Company’s operating performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACIFIC DRILLING S.A. (DEBTOR IN POSSESSION) AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary Data—Reconciliation of Net Income (Loss) to Non-GAAP
EBITDA and Adjusted EBITDA
(in thousands) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Years Ended December 31,
|
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(129,732
|
)
|
|
$
|
(157,521
|
)
|
|
$
|
(43,036
|
)
|
|
$
|
(525,166
|
)
|
|
$
|
(37,157
|
)
|
|
$
|
126,230
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
27,438
|
|
|
|
51,146
|
|
|
|
51,547
|
|
|
|
178,983
|
|
|
|
189,044
|
|
|
|
156,361
|
|
Depreciation expense
|
|
|
|
69,894
|
|
|
|
69,561
|
|
|
|
69,881
|
|
|
|
278,949
|
|
|
|
275,901
|
|
|
|
243,457
|
|
Income tax expense
|
|
|
|
8,770
|
|
|
|
1,770
|
|
|
|
14,529
|
|
|
|
12,863
|
|
|
|
22,107
|
|
|
|
28,871
|
|
EBITDA
|
|
|
$
|
(23,630
|
)
|
|
$
|
(35,044
|
)
|
|
$
|
92,921
|
|
|
$
|
(54,371
|
)
|
|
$
|
449,895
|
|
|
$
|
554,919
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other-than-temporary impairment of available-for-sale securities
|
|
|
|
682
|
|
|
|
6,147
|
|
|
|
—
|
|
|
|
6,829
|
|
|
|
—
|
|
|
|
—
|
|
Write-off of deferred financing costs
|
|
|
|
—
|
|
|
|
30,846
|
|
|
|
—
|
|
|
|
30,846
|
|
|
|
—
|
|
|
|
—
|
|
Loss from construction contract rescission
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
40,155
|
|
Gain on debt extinguishment
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(36,233
|
)
|
|
|
—
|
|
Reorganization items
|
|
|
|
6,474
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6,474
|
|
|
|
—
|
|
|
|
—
|
|
Adjusted EBITDA
|
|
|
$
|
(16,474
|
)
|
|
$
|
1,949
|
|
|
$
|
92,921
|
|
|
$
|
(10,222
|
)
|
|
$
|
413,662
|
|
|
$
|
595,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Overhead Expenses Reconciliation
Corporate overhead expenses is a non-GAAP financial measure defined as
general and administrative expenses less certain legal expenses related
to the arbitration proceeding and patent litigation, as well as legal
and financial advisory expenses related to debt restructuring efforts
incurred prior to the Petition Date. We included corporate overhead
herein because it is used by management to measure the Company's ongoing
corporate overhead. Management believes that ongoing corporate overhead
expenses present useful information to investors regarding the financial
impact of Company's cost savings measures and optimization of overhead
support structure during the periods presented below. Non-GAAP financial
measures should be considered as a supplement to, and not as a
substitute for, or superior to, financial measures prepared in
accordance with GAAP.
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|
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|
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|
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|
|
|
|
|
|
|
|
PACIFIC DRILLING S.A. (DEBTOR IN POSSESSION) AND SUBSIDIARIES
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary Data— Reconciliation of General and Administrative
Expenses to Non-GAAP Corporate Overhead Expenses
(in thousands) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Three Months Ended
|
|
|
Years Ended December 31,
|
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
2015
|
|
General and administrative expenses
|
|
|
$
|
22,448
|
|
|
$
|
22,076
|
|
|
$
|
18,908
|
|
|
|
$
|
87,134
|
|
|
$
|
63,379
|
|
|
$
|
55,511
|
|
|
Subtract:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal and advisory expenses
|
|
|
|
(11,439
|
)
|
|
|
(6,826
|
)
|
|
|
(7,103
|
)
|
|
|
|
(30,733
|
)
|
|
|
(16,909
|
)
|
|
|
(2,377
|
)
|
|
Corporate overhead expenses
|
|
|
$
|
11,009
|
|
|
$
|
15,250
|
|
|
$
|
11,805
|
|
|
|
$
|
56,401
|
|
|
$
|
46,470
|
|
|
$
|
53,134
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180402005854/en/
Source: Pacific Drilling SA