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(Mark One)
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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2019
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from
to
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England and Wales
(State or other jurisdiction of
incorporation or organization)
6 Chesterfield Gardens
London, England
(Address of principal executive offices)
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98-0635229
(I.R.S. Employer
Identification No.)
W1J 5BQ
(Zip Code)
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Large accelerated filer
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x
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Accelerated filer
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o
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Non-Accelerated filer
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o
(Do not check if a smaller reporting company)
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Smaller reporting company
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o
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Emerging-growth company
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o
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Title of each class
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Trading Symbol
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Name of each exchange on which registered
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Class A Ordinary Shares, U.S. $0.40 par value
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ESV
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New York Stock Exchange
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•
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our ability to successfully integrate the business, operations and employees of Rowan Companies plc ("Rowan") and Ensco plc and to realize synergies and cost savings in connection with the Rowan Transaction (as defined herein);
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•
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changes in future levels of drilling activity and capital expenditures by our customers, whether as a result of global capital markets and liquidity, prices of oil and natural gas or otherwise;
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•
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changes in worldwide rig supply and demand, competition or technology, including as a result of delivery of newbuild drilling rigs;
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•
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downtime and other risks associated with offshore rig operations, including rig or equipment failure, damage and other unplanned repairs, the limited availability of transport vessels, hazards, self-imposed drilling limitations and other delays due to severe storms and hurricanes and the limited availability or high cost of insurance coverage for certain offshore perils, such as hurricanes in the Gulf of Mexico or associated removal of wreckage or debris;
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•
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governmental action, terrorism, piracy, military action and political and economic uncertainties, including uncertainty or instability resulting from civil unrest, political demonstrations, mass strikes, or an escalation or additional outbreak of armed hostilities or other crises in oil or natural gas producing areas of the Middle East, North Africa, West Africa or other geographic areas, which may result in expropriation, nationalization, confiscation, deprivation or destruction of our assets, suspension and/or termination of contracts based on force majeure events or adverse environmental safety events;
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•
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risks inherent to shipyard rig construction, repair, modification or upgrades, unexpected delays in equipment delivery, engineering, design or commissioning issues following delivery, or changes in the commencement, completion or service dates;
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•
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possible cancellation, suspension, renegotiation or termination (with or without cause) of drilling contracts as a result of general and industry-specific economic conditions, mechanical difficulties, performance or other reasons;
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•
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our ability to enter into, and the terms of, future drilling contracts, including contracts for our newbuild units and acquired rigs, for rigs currently idled and for rigs whose contracts are expiring;
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•
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any failure to execute definitive contracts following announcements of letters of intent, letters of award or other expected work commitments;
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•
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the outcome of litigation, legal proceedings, investigations or other claims or contract disputes, including any inability to collect receivables or resolve significant contractual or day rate disputes, any renegotiation, nullification, cancellation or breach of contracts with customers or other parties and any failure to execute definitive contracts following announcements of letters of intent;
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•
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governmental regulatory, legislative and permitting requirements affecting drilling operations, including limitations on drilling locations (such as the Gulf of Mexico during hurricane season);
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•
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new and future regulatory, legislative or permitting requirements, future lease sales, changes in laws, rules and regulations that have or may impose increased financial responsibility, additional oil spill abatement contingency plan capability requirements and other governmental actions that may result in claims of force majeure or otherwise adversely affect our existing drilling contracts, operations or financial results;
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•
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our ability to attract and retain skilled personnel on commercially reasonable terms, whether due to labor regulations, unionization or otherwise;
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•
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environmental or other liabilities, risks, damages or losses, whether related to storms or hurricanes (including wreckage or debris removal), collisions, groundings, blowouts, fires, explosions, other accidents, terrorism or otherwise, for which insurance coverage and contractual indemnities may be insufficient, unenforceable or otherwise unavailable;
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•
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our ability to obtain financing, service our indebtedness and pursue other business opportunities may be limited by our debt levels, debt agreement restrictions and the credit ratings assigned to our debt by independent credit rating agencies;
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•
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the adequacy of sources of liquidity for us and our customers;
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•
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tax matters, including our effective tax rates, tax positions, results of audits, changes in tax laws, treaties and regulations, tax assessments and liabilities for taxes;
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•
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our ability to realize the expected benefits of our joint venture with Saudi Aramco, including our ability to fund any required capital contributions;
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•
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delays in contract commencement dates or the cancellation of drilling programs by operators;
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•
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economic volatility and political, legal and tax uncertainties following the June 23, 2016, vote in the U.K. to exit from the European Union ("Brexit");
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•
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the occurrence of cybersecurity incidents, attacks or other breaches to our information technology systems, including our rig operating systems;
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•
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adverse changes in foreign currency exchange rates, including their effect on the fair value measurement of our derivative instruments; and
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•
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potential long-lived asset impairments.
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Three Months Ended March 31,
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||||||
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2019
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2018
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||||
OPERATING REVENUES
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$
|
405.9
|
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$
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417.0
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OPERATING EXPENSES
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||||
Contract drilling (exclusive of depreciation)
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332.6
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325.2
|
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Depreciation
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125.0
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115.2
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General and administrative
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29.6
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27.9
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487.2
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468.3
|
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OPERATING LOSS
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(81.3
|
)
|
|
(51.3
|
)
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||
OTHER INCOME (EXPENSE)
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|
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|
||||
Interest income
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3.5
|
|
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3.0
|
|
||
Interest expense, net
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(81.0
|
)
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|
(65.6
|
)
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||
Other, net
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2.3
|
|
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(8.1
|
)
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||
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(75.2
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)
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(70.7
|
)
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||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
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(156.5
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)
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(122.0
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)
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||
PROVISION FOR INCOME TAXES
|
|
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||||
Current income tax expense
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25.6
|
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7.1
|
|
||
Deferred income tax expense
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5.9
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|
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11.3
|
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||
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31.5
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18.4
|
|
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LOSS FROM CONTINUING OPERATIONS
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(188.0
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)
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(140.4
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)
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||
LOSS FROM DISCONTINUED OPERATIONS, NET
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—
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(.1
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)
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NET LOSS
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(188.0
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)
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(140.5
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)
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NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
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(2.4
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)
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|
.4
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NET LOSS ATTRIBUTABLE TO ENSCOROWAN
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$
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(190.4
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)
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$
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(140.1
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)
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LOSS PER SHARE - BASIC AND DILUTED
|
|
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|
||||
Continuing operations
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$
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(1.75
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)
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$
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(1.29
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)
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Discontinued operations
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—
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|
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—
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||
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$
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(1.75
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)
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$
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(1.29
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)
|
|
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|
||||
WEIGHTED-AVERAGE SHARES OUTSTANDING
|
|
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|
||||
Basic and Diluted
|
108.7
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|
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108.4
|
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Three Months Ended March 31,
|
||||||
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2019
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2018
|
||||
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|
||||
NET LOSS
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$
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(188.0
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)
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$
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(140.5
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)
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OTHER COMPREHENSIVE INCOME (LOSS), NET
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|
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|
||||
Net change in fair value of derivatives
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—
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1.9
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|
||
Reclassification of net (gains) losses on derivative instruments from other comprehensive income into net income
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1.6
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(2.2
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)
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||
Other
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(.1
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)
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(.1
|
)
|
||
NET OTHER COMPREHENSIVE INCOME (LOSS)
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1.5
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(.4
|
)
|
||
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|
||||
COMPREHENSIVE LOSS
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(186.5
|
)
|
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(140.9
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)
|
||
COMPREHENSIVE (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
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(2.4
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)
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|
.4
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COMPREHENSIVE LOSS ATTRIBUTABLE TO ENSCOROWAN
|
$
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(188.9
|
)
|
|
$
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(140.5
|
)
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
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(Unaudited)
|
|
|
||||
ASSETS
|
|
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CURRENT ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
298.4
|
|
|
$
|
275.1
|
|
Short-term investments
|
245.0
|
|
|
329.0
|
|
||
Accounts receivable, net
|
313.7
|
|
|
344.7
|
|
||
Other
|
354.8
|
|
|
360.9
|
|
||
Total current assets
|
1,211.9
|
|
|
1,309.7
|
|
||
PROPERTY AND EQUIPMENT, AT COST
|
15,368.6
|
|
|
15,517.0
|
|
||
Less accumulated depreciation
|
2,859.7
|
|
|
2,900.8
|
|
||
Property and equipment, net
|
12,508.9
|
|
|
12,616.2
|
|
||
OTHER ASSETS
|
142.2
|
|
|
97.8
|
|
||
|
$
|
13,863.0
|
|
|
$
|
14,023.7
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
||||
CURRENT LIABILITIES
|
|
|
|
||||
Accounts payable - trade
|
$
|
214.2
|
|
|
$
|
210.5
|
|
Accrued liabilities and other
|
302.7
|
|
|
318.0
|
|
||
Total current liabilities
|
516.9
|
|
|
528.5
|
|
||
LONG-TERM DEBT
|
5,018.5
|
|
|
5,010.4
|
|
||
OTHER LIABILITIES
|
427.3
|
|
|
396.0
|
|
||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
||
ENSCOROWAN SHAREHOLDERS' EQUITY
|
|
|
|
|
|
||
Class A ordinary shares, U.S. $.40 par value, 115.2 million shares issued as of March 31, 2019 and December 31, 2018
|
46.1
|
|
|
46.1
|
|
||
Class B ordinary shares, £1 par value, 50,000 shares authorized and issued as of March 31, 2019 and December 31, 2018
|
.1
|
|
|
.1
|
|
||
Additional paid-in capital
|
7,230.2
|
|
|
7,225.0
|
|
||
Retained earnings
|
679.3
|
|
|
874.2
|
|
||
Accumulated other comprehensive income
|
19.7
|
|
|
18.2
|
|
||
Treasury shares, at cost, 5.9 million shares as of March 31, 2019 and December 31, 2018
|
(74.9
|
)
|
|
(72.2
|
)
|
||
Total EnscoRowan shareholders' equity
|
7,900.5
|
|
|
8,091.4
|
|
||
NONCONTROLLING INTERESTS
|
(0.2
|
)
|
|
(2.6
|
)
|
||
Total equity
|
7,900.3
|
|
|
8,088.8
|
|
||
|
$
|
13,863.0
|
|
|
$
|
14,023.7
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
|
|
||
Net loss
|
$
|
(188.0
|
)
|
|
$
|
(140.5
|
)
|
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
|
|
|
|
||||
Depreciation expense
|
125.0
|
|
|
115.2
|
|
||
Amortization, net
|
(14.5
|
)
|
|
(16.8
|
)
|
||
Share-based compensation expense
|
7.8
|
|
|
8.4
|
|
||
Deferred income tax expense
|
5.9
|
|
|
11.3
|
|
||
Loss on debt extinguishment
|
—
|
|
|
18.8
|
|
||
Gain on bargain purchase
|
—
|
|
|
(16.6
|
)
|
||
Other
|
1.4
|
|
|
(2.1
|
)
|
||
Changes in operating assets and liabilities
|
38.0
|
|
|
61.8
|
|
||
Net cash (used in) provided by operating activities
|
(24.4
|
)
|
|
39.5
|
|
||
INVESTING ACTIVITIES
|
|
|
|
||||
Maturities of short-term investments
|
204.0
|
|
|
390.0
|
|
||
Purchases of short-term investments
|
(120.0
|
)
|
|
(349.0
|
)
|
||
Additions to property and equipment
|
(29.0
|
)
|
|
(269.3
|
)
|
||
Other
|
.3
|
|
|
.1
|
|
||
Net cash provided by (used in) investing activities
|
55.3
|
|
|
(228.2
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
||||
Cash dividends paid
|
(4.5
|
)
|
|
(4.5
|
)
|
||
Proceeds from issuance of senior notes
|
—
|
|
|
1,000.0
|
|
||
Reduction of long-term borrowings
|
—
|
|
|
(771.0
|
)
|
||
Debt financing costs
|
—
|
|
|
(16.8
|
)
|
||
Other
|
(2.8
|
)
|
|
(1.2
|
)
|
||
Net cash (used in) provided by financing activities
|
(7.3
|
)
|
|
206.5
|
|
||
Net cash provided by discontinued operations
|
—
|
|
|
2.5
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(.3
|
)
|
|
(.3
|
)
|
||
INCREASE IN CASH AND CASH EQUIVALENTS
|
23.3
|
|
|
20.0
|
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
275.1
|
|
|
445.4
|
|
||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
298.4
|
|
|
$
|
465.4
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Current contract assets
|
$
|
3.1
|
|
|
$
|
4.0
|
|
Current contract liabilities (deferred revenue)
|
$
|
55.9
|
|
|
$
|
56.9
|
|
Noncurrent contract liabilities (deferred revenue)
|
$
|
17.8
|
|
|
$
|
20.5
|
|
|
Contract Assets
|
|
Contract Liabilities
|
||||
Balance as of December 31, 2018
|
$
|
4.0
|
|
|
$
|
77.4
|
|
Revenue recognized in advance of right to bill customer
|
.1
|
|
|
—
|
|
||
Increase due to cash received
|
—
|
|
|
22.3
|
|
||
Decrease due to amortization of deferred revenue that was included in the beginning contract liability balance
|
—
|
|
|
(24.6
|
)
|
||
Decrease due to amortization of deferred revenue that was added during the period
|
—
|
|
|
(1.4
|
)
|
||
Decrease due to transfer to receivables during the period
|
(1.0
|
)
|
|
—
|
|
||
Balance as of March 31, 2019
|
$
|
3.1
|
|
|
$
|
73.7
|
|
|
Remaining 2019
|
|
2020
|
|
2021
|
|
2022 and Thereafter
|
|
Total
|
||||||||||
Amortization of contract liabilities
|
$
|
52.4
|
|
|
$
|
11.8
|
|
|
$
|
7.7
|
|
|
$
|
1.8
|
|
|
$
|
73.7
|
|
Amortization of deferred costs
|
$
|
25.4
|
|
|
$
|
10.4
|
|
|
$
|
2.7
|
|
|
$
|
1.5
|
|
|
$
|
40.0
|
|
|
Estimated Fair Value
|
||
Assets:
|
|
||
Cash and cash equivalents
|
$
|
928.9
|
|
Accounts receivable
(1)
|
199.1
|
|
|
Other current assets
|
200.0
|
|
|
Long-term notes receivable from ARO
|
454.5
|
|
|
Investment in ARO
|
152.3
|
|
|
Property and equipment
|
2,755.3
|
|
|
Other assets
|
184.4
|
|
|
Liabilities:
|
|
|
|
Accounts payable and accrued liabilities
|
252.1
|
|
|
Current portion of long-term debt
|
181.2
|
|
|
Long-term debt
|
1,910.9
|
|
|
Other liabilities
|
372.0
|
|
|
Net assets acquired
|
2,158.3
|
|
|
Less: Transaction consideration
|
(1,404.6
|
)
|
|
Bargain purchase gain
|
$
|
753.7
|
|
(1)
|
Gross contractual amounts receivable totaled
$201.1 million
as of the Transaction Date.
|
(1)
|
Pro forma net income and earnings per share were adjusted to exclude an aggregate
$9.4 million
of transaction-related and integration costs incurred during the
three-month
period ended
March 31, 2019
.
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Total
|
||||||||
As of March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|||||
Supplemental executive retirement plan assets
|
$
|
29.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29.3
|
|
Total financial assets
|
$
|
29.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29.3
|
|
Derivatives, net
|
$
|
—
|
|
|
$
|
(6.9
|
)
|
|
$
|
—
|
|
|
$
|
(6.9
|
)
|
Total financial liabilities
|
$
|
—
|
|
|
$
|
(6.9
|
)
|
|
$
|
—
|
|
|
$
|
(6.9
|
)
|
|
|
|
|
|
|
|
|
||||||||
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||
Supplemental executive retirement plan assets
|
$
|
27.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27.2
|
|
Total financial assets
|
$
|
27.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27.2
|
|
Derivatives, net
|
$
|
—
|
|
|
$
|
(10.7
|
)
|
|
$
|
—
|
|
|
$
|
(10.7
|
)
|
Total financial liabilities
|
$
|
—
|
|
|
$
|
(10.7
|
)
|
|
$
|
—
|
|
|
$
|
(10.7
|
)
|
|
March 31,
2019 |
|
December 31,
2018 |
||||||||||||
|
Carrying Value
|
|
Estimated Fair Value
|
|
Carrying Value
|
|
Estimated Fair Value
|
||||||||
6.875% senior notes due 2020
|
$
|
126.9
|
|
|
$
|
122.8
|
|
|
$
|
127.5
|
|
|
$
|
121.6
|
|
4.70% senior notes due 2021
|
112.9
|
|
|
108.5
|
|
|
112.7
|
|
|
101.8
|
|
||||
3.00% exchangeable senior notes due 2024
(1)
|
674.7
|
|
|
655.5
|
|
|
666.8
|
|
|
575.5
|
|
||||
4.50% senior notes due 2024
|
620.0
|
|
|
476.0
|
|
|
619.8
|
|
|
405.2
|
|
||||
8.00% senior notes due 2024
|
336.7
|
|
|
305.1
|
|
|
337.0
|
|
|
273.7
|
|
||||
5.20% senior notes due 2025
|
664.6
|
|
|
517.7
|
|
|
664.4
|
|
|
443.9
|
|
||||
7.75% senior notes due 2026
|
985.6
|
|
|
849.8
|
|
|
985.0
|
|
|
725.5
|
|
||||
7.20% debentures due 2027
|
149.4
|
|
|
121.1
|
|
|
149.3
|
|
|
109.1
|
|
||||
7.875% senior notes due 2040
|
374.6
|
|
|
238.2
|
|
|
375.0
|
|
|
223.2
|
|
||||
5.75% senior notes due 2044
|
973.1
|
|
|
648.2
|
|
|
972.9
|
|
|
566.3
|
|
||||
Total
|
$
|
5,018.5
|
|
|
$
|
4,042.9
|
|
|
$
|
5,010.4
|
|
|
$
|
3,545.8
|
|
(1)
|
Our exchangeable senior notes due 2024 (the "2024 Convertible Notes") were issued with a conversion feature. The 2024 Convertible Notes were separated into their liability and equity components on our condensed consolidated balance sheet. The equity component was initially recorded to additional paid-in capital and as a debt discount that will be amortized to interest expense over the life of the instrument. Excluding the unamortized discount, the carrying value of the 2024 Convertible Notes was
$836.9 million
as of
March 31, 2019
.
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||
|
March 31,
2019 |
|
December 31,
2018 |
|
March 31,
2019 |
|
December 31,
2018 |
||||||||
Derivatives Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|||||
Foreign currency forward contracts - current
(1)
|
$
|
.2
|
|
|
$
|
.2
|
|
|
$
|
5.1
|
|
|
$
|
8.3
|
|
Foreign currency forward contracts - non-current
(2)
|
.1
|
|
|
—
|
|
|
.2
|
|
|
.4
|
|
||||
|
.3
|
|
|
.2
|
|
|
5.3
|
|
|
8.7
|
|
||||
Derivatives Not Designated as Hedging Instruments
|
|
|
|
|
|
|
|
|
|
|
|||||
Foreign currency forward contracts - current
(1)
|
.2
|
|
|
.4
|
|
|
2.1
|
|
|
2.6
|
|
||||
Total
|
$
|
.5
|
|
|
$
|
.6
|
|
|
$
|
7.4
|
|
|
$
|
11.3
|
|
(1)
|
Derivative assets and liabilities that have maturity dates equal to or less than twelve months from the respective balance sheet date were included in other current assets and accrued liabilities and other, respectively, on our condensed consolidated balance sheets.
|
(2)
|
Derivative assets and liabilities that have maturity dates greater than twelve months from the respective balance sheet date were included in other assets and other liabilities, respectively, on our condensed consolidated balance sheets.
|
|
Gain Recognized in Other Comprehensive Income ("OCI") (Effective Portion)
|
|
(Gain) Loss Reclassified from Accumulated Other Comprehensive Income ("AOCI") into Income (Effective Portion)
(1)
|
|
Loss Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)
(2)
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Interest rate lock contracts
(3)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
.1
|
|
|
$
|
.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign currency forward contracts
(4)
|
—
|
|
|
1.9
|
|
|
1.5
|
|
|
(2.3
|
)
|
|
—
|
|
|
(.2
|
)
|
||||||
Total
|
$
|
—
|
|
|
$
|
1.9
|
|
|
$
|
1.6
|
|
|
$
|
(2.2
|
)
|
|
$
|
—
|
|
|
$
|
(.2
|
)
|
(1)
|
Changes in the fair value of cash flow hedges are recorded in AOCI. Amounts recorded in AOCI associated with cash flow hedges are subsequently reclassified into contract drilling, depreciation or interest expense as earnings are affected by the underlying hedged forecasted transaction.
|
(2)
|
Gains and losses recognized in income for ineffectiveness and amounts excluded from effectiveness testing were included in other, net, in our condensed consolidated statements of operations. As a result of our adoption of Update 2017-12, which we adopted effective January 1, 2019, ineffectiveness is no longer separately measured and recognized. See additional information in "Note 1 - Unaudited Condensed Consolidated Financial Statements".
|
(3)
|
Losses on interest rate lock derivatives reclassified from AOCI into income (effective portion) were included in interest expense, net, in our condensed consolidated statements of operations.
|
(4)
|
During the first quarter of
2019
,
$1.7 million
of
losses
were reclassified from AOCI into contract drilling expense and
$0.2 million
of
gains
were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations. During the prior year quarter,
$2.1 million
of
gains
were reclassified from AOCI into contract drilling expense and
$0.2 million
of
gains
were reclassified from AOCI into depreciation expense in our condensed consolidated statement of operations.
|
|
2019
|
|
2018
|
||||
Loss from continuing operations attributable to EnscoRowan
|
$
|
(190.4
|
)
|
|
$
|
(140.0
|
)
|
Income from continuing operations allocated to non-vested share awards
|
(.1
|
)
|
|
(.1
|
)
|
||
Loss from continuing operations attributable to EnscoRowan shares
|
$
|
(190.5
|
)
|
|
$
|
(140.1
|
)
|
|
Shares
|
|
Par Value
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
AOCI
|
|
Treasury
Shares
|
|
Non-controlling
Interest
|
|||||||||||||
BALANCE, December 31, 2018
|
115.2
|
|
|
$
|
46.2
|
|
|
$
|
7,225.0
|
|
|
$
|
874.2
|
|
|
$
|
18.2
|
|
|
$
|
(72.2
|
)
|
|
$
|
(2.6
|
)
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(190.4
|
)
|
|
—
|
|
|
—
|
|
|
2.4
|
|
||||||
Dividends paid ($0.04 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Shares issued under share-based compensation plans, net
|
—
|
|
|
—
|
|
|
(.1
|
)
|
|
—
|
|
|
—
|
|
|
.1
|
|
|
—
|
|
||||||
Repurchase of shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.8
|
)
|
|
—
|
|
||||||
Share-based compensation cost
|
—
|
|
|
—
|
|
|
5.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
||||||
BALANCE, March 31, 2019
|
115.2
|
|
|
$
|
46.2
|
|
|
$
|
7,230.2
|
|
|
$
|
679.3
|
|
|
$
|
19.7
|
|
|
$
|
(74.9
|
)
|
|
$
|
(0.2
|
)
|
|
Shares
|
|
Par Value
|
|
Additional
Paid-in Capital |
|
Retained
Earnings |
|
AOCI
|
|
Treasury
Shares |
|
Non-controlling
Interest |
|||||||||||||
BALANCE, December 31, 2017
|
111.8
|
|
|
$
|
44.8
|
|
|
$
|
7,195.0
|
|
|
$
|
1,532.7
|
|
|
$
|
28.6
|
|
|
$
|
(69.0
|
)
|
|
$
|
(2.1
|
)
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(140.1
|
)
|
|
—
|
|
|
—
|
|
|
(.4
|
)
|
||||||
Dividends paid ($0.04 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Cumulative-effect due to ASU 2018-02
|
—
|
|
|
—
|
|
|
—
|
|
|
(.8
|
)
|
|
.8
|
|
|
—
|
|
|
—
|
|
||||||
Shares issued under share-based compensation plans, net
|
—
|
|
|
—
|
|
|
(.1
|
)
|
|
—
|
|
|
—
|
|
|
.1
|
|
|
—
|
|
||||||
Repurchase of shares
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
||||||
Share-based compensation cost
|
—
|
|
|
—
|
|
|
7.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(.4
|
)
|
|
—
|
|
|
—
|
|
||||||
BALANCE, March 31, 2018
|
111.8
|
|
|
$
|
44.8
|
|
|
$
|
7,202.4
|
|
|
$
|
1,387.4
|
|
|
$
|
29.0
|
|
|
$
|
(70.0
|
)
|
|
$
|
(2.5
|
)
|
|
Three Months Ended March 31, 2019
|
||
Long-term operating lease cost
|
$
|
6.2
|
|
Short-term operating lease cost
|
3.1
|
|
|
Sublease income
|
(.4
|
)
|
|
Total operating lease cost
|
$
|
8.9
|
|
|
March 31, 2019
|
||
Operating lease right-of-use assets
|
$
|
47.9
|
|
|
|
||
Current lease liability
|
$
|
17.9
|
|
Long-term lease liability
|
41.1
|
|
|
Total operating lease liabilities
|
$
|
59.0
|
|
|
|
||
Weighted-average remaining lease term (in years)
|
5.2
|
|
|
|
|
||
Weighted-average discount rate
(1)
|
8.71
|
%
|
(1)
|
Represents our estimated incremental borrowing cost on a secured basis for similar terms as the underlying lease.
|
Year Ending December 31,
|
Total
|
||
2019 (excluding the three months ended March 31, 2019)
|
$
|
18.2
|
|
2020
|
15.0
|
|
|
2021
|
9.3
|
|
|
2022
|
8.5
|
|
|
2023
|
8.8
|
|
|
Thereafter
|
15.3
|
|
|
Total lease payments
|
$
|
75.1
|
|
Less imputed interest
|
(16.1
|
)
|
|
Total
|
$
|
59.0
|
|
|
Floaters
|
|
Jackups
|
|
Other
|
|
Operating Segments Total
|
|
Reconciling Items
|
|
Consolidated Total
|
||||||||||||
Revenues
|
$
|
232.7
|
|
|
$
|
157.0
|
|
|
$
|
16.2
|
|
|
$
|
405.9
|
|
|
$
|
—
|
|
|
$
|
405.9
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contract drilling (exclusive of depreciation)
|
181.8
|
|
|
135.4
|
|
|
15.4
|
|
|
332.6
|
|
|
—
|
|
|
332.6
|
|
||||||
Depreciation
|
84.8
|
|
|
36.9
|
|
|
—
|
|
|
121.7
|
|
|
3.3
|
|
|
125.0
|
|
||||||
General and administrative
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.6
|
|
|
29.6
|
|
||||||
Operating income (loss)
|
$
|
(33.9
|
)
|
|
$
|
(15.3
|
)
|
|
$
|
.8
|
|
|
$
|
(48.4
|
)
|
|
$
|
(32.9
|
)
|
|
$
|
(81.3
|
)
|
Property and equipment, net
|
$
|
9,383.6
|
|
|
$
|
3,091.7
|
|
|
$
|
—
|
|
|
$
|
12,475.3
|
|
|
$
|
33.6
|
|
|
$
|
12,508.9
|
|
|
Floaters
|
|
Jackups
|
|
Other
|
|
Operating Segments Total
|
|
Reconciling Items
|
|
Consolidated Total
|
||||||||||||
Revenues
|
$
|
259.0
|
|
|
$
|
143.4
|
|
|
$
|
14.6
|
|
|
$
|
417.0
|
|
|
$
|
—
|
|
|
$
|
417.0
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contract drilling (exclusive of depreciation)
|
185.1
|
|
|
126.9
|
|
|
13.2
|
|
|
325.2
|
|
|
—
|
|
|
325.2
|
|
||||||
Depreciation
|
75.3
|
|
|
36.5
|
|
|
—
|
|
|
111.8
|
|
|
3.4
|
|
|
115.2
|
|
||||||
General and administrative
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27.9
|
|
|
27.9
|
|
||||||
Operating income (loss)
|
$
|
(1.4
|
)
|
|
$
|
(20.0
|
)
|
|
$
|
1.4
|
|
|
$
|
(20.0
|
)
|
|
$
|
(31.3
|
)
|
|
$
|
(51.3
|
)
|
Property and equipment, net
|
$
|
9,636.9
|
|
|
$
|
3,154.3
|
|
|
$
|
—
|
|
|
$
|
12,791.2
|
|
|
$
|
43.6
|
|
|
$
|
12,834.8
|
|
|
Floaters
|
|
Jackups
|
|
Total
(1)
|
North & South America
|
8
|
|
4
|
|
12
|
Europe & Mediterranean
|
6
|
|
11
|
|
17
|
Middle East & Africa
|
4
|
|
11
|
|
15
|
Asia & Pacific Rim
|
4
|
|
7
|
|
11
|
Asia & Pacific Rim (under construction)
(2)
|
2
|
|
1
|
|
3
|
Held-for-Sale
(3)
|
—
|
|
1
|
|
1
|
Total
|
24
|
|
35
|
|
59
|
(1)
|
We provide management services on
two
rigs owned by third-parties in the U.S. Gulf of Mexico which are not included in the table above.
|
(2)
|
In April 2019, we accepted delivery of ENSCO 123 which will be presented within jackups beginning in the second quarter.
|
(3)
|
One jackup classified as held-for-sale as of
March 31, 2019
was sold in April 2019.
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Trade
|
$
|
274.8
|
|
|
$
|
301.7
|
|
Other
|
42.2
|
|
|
46.4
|
|
||
|
317.0
|
|
|
348.1
|
|
||
Allowance for doubtful accounts
|
(3.3
|
)
|
|
(3.4
|
)
|
||
|
$
|
313.7
|
|
|
$
|
344.7
|
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Materials and supplies
|
$
|
263.8
|
|
|
$
|
268.1
|
|
Prepaid taxes
|
35.0
|
|
|
35.0
|
|
||
Deferred costs
|
28.2
|
|
|
23.5
|
|
||
Prepaid expenses
|
9.7
|
|
|
15.2
|
|
||
Other
|
18.1
|
|
|
19.1
|
|
||
|
$
|
354.8
|
|
|
$
|
360.9
|
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Right-of-use assets
|
$
|
47.9
|
|
|
$
|
—
|
|
Supplemental executive retirement plan assets
|
29.3
|
|
|
27.2
|
|
||
Deferred tax assets
|
27.8
|
|
|
29.4
|
|
||
Deferred costs
|
19.1
|
|
|
21.5
|
|
||
Other
|
18.1
|
|
|
19.7
|
|
||
|
$
|
142.2
|
|
|
$
|
97.8
|
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Accrued interest
|
$
|
78.0
|
|
|
$
|
100.6
|
|
Personnel costs
|
61.9
|
|
|
82.5
|
|
||
Deferred revenue
|
55.9
|
|
|
56.9
|
|
||
Income and other taxes payable
|
50.3
|
|
|
36.9
|
|
||
Lease liabilities
|
17.9
|
|
|
—
|
|
||
Accrued rig holding costs
|
15.9
|
|
|
14.3
|
|
||
Derivative liabilities
|
7.2
|
|
|
10.9
|
|
||
Other
|
15.6
|
|
|
15.9
|
|
||
|
$
|
302.7
|
|
|
$
|
318.0
|
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Unrecognized tax benefits (inclusive of interest and penalties)
|
$
|
173.1
|
|
|
$
|
177.0
|
|
Deferred tax liabilities
|
75.5
|
|
|
70.7
|
|
||
Intangible liabilities
|
52.7
|
|
|
53.5
|
|
||
Lease liabilities
|
41.1
|
|
|
—
|
|
||
Supplemental executive retirement plan liabilities
|
30.3
|
|
|
28.1
|
|
||
Personnel costs
|
27.8
|
|
|
25.1
|
|
||
Deferred revenue
|
17.8
|
|
|
20.5
|
|
||
Deferred rent
|
—
|
|
|
11.7
|
|
||
Other
|
9.0
|
|
|
9.4
|
|
||
|
$
|
427.3
|
|
|
$
|
396.0
|
|
|
March 31,
2019 |
|
December 31,
2018 |
||||
Derivative instruments
|
$
|
14.2
|
|
|
$
|
12.6
|
|
Currency translation adjustment
|
7.3
|
|
|
7.3
|
|
||
Other
|
(1.8
|
)
|
|
(1.7
|
)
|
||
|
$
|
19.7
|
|
|
$
|
18.2
|
|
|
March 31,
2019 |
|
March 31,
2018 |
||
Total
(1)
|
18
|
%
|
|
14
|
%
|
Saudi Aramco
(2)
|
13
|
%
|
|
10
|
%
|
BP
(3)
|
5
|
%
|
|
12
|
%
|
Petrobras
(4)
|
5
|
%
|
|
12
|
%
|
Other
|
59
|
%
|
|
52
|
%
|
|
100
|
%
|
|
100
|
%
|
(1)
|
During the quarters ended
March 31, 2019
and
2018
, all revenues were attributable to our floaters segment.
|
(2)
|
During the quarters ended
March 31, 2019
and
2018
, all revenues were attributable to our jackups segment.
|
(3)
|
During the quarter ended
March 31, 2019
,
27%
of the revenues were attributable to our jackups segment while
73%
of the revenues were attributable to our managed rigs. During the quarter ended
March 31, 2018
,
61%
of the revenues provided by BP were attributable to our floaters segment,
10%
of the revenues were attributable to our jackups segment and the remainder was attributable to our managed rigs.
|
(4)
|
During the quarters ended
March 31, 2019
and
2018
, all revenues were attributable to our floaters segment.
|
|
March 31,
2019 |
|
March 31,
2018 |
||||
Angola
(1)
|
$
|
70.6
|
|
|
$
|
61.1
|
|
Australia
(2)
|
67.3
|
|
|
52.2
|
|
||
U.S. Gulf of Mexico
(3)
|
54.7
|
|
|
53.6
|
|
||
Saudi Arabia
(4)
|
53.4
|
|
|
43.2
|
|
||
United Kingdom
(4)
|
43.4
|
|
|
46.6
|
|
||
Brazil
(5)
|
22.0
|
|
|
50.3
|
|
||
Other
|
94.5
|
|
|
110.0
|
|
||
|
$
|
405.9
|
|
|
$
|
417.0
|
|
(1)
|
During the quarters ended
March 31, 2019
and
2018
,
86%
and
98%
of the revenues earned, respectively, were attributable to our floaters segment. The remaining revenues were attributable to our jackups segment.
|
(2)
|
During the quarters ended
March 31, 2019
and
2018
,
94%
and
100%
of the revenues earned, respectively, were attributable to our floaters segment. The remaining revenues were attributable our jackups segment.
|
(3)
|
During the quarters ended
March 31, 2019
and
2018
,
25%
and
38%
of the revenues earned, respectively, were attributable to our floaters segment,
45%
and
34%
of revenues earned, respectively, were attributable to our jackups segment and the remainder was attributable to our managed rigs.
|
ENSCO ROWAN PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Three Months Ended March 31, 2019
(in millions)
(Unaudited)
|
|||||||||||||||||||||||
|
Ensco Rowan plc
|
|
ENSCO International Incorporated
|
|
Pride International LLC
|
|
Other Non-Guarantor Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
OPERATING REVENUES
|
$
|
11.4
|
|
|
$
|
39.5
|
|
|
$
|
—
|
|
|
$
|
430.4
|
|
|
$
|
(75.4
|
)
|
|
$
|
405.9
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contract drilling (exclusive of depreciation)
|
11.7
|
|
|
35.7
|
|
|
—
|
|
|
360.6
|
|
|
(75.4
|
)
|
|
332.6
|
|
||||||
Depreciation
|
—
|
|
|
3.7
|
|
|
—
|
|
|
121.3
|
|
|
—
|
|
|
125.0
|
|
||||||
General and administrative
|
14.9
|
|
|
.1
|
|
|
—
|
|
|
14.6
|
|
|
—
|
|
|
29.6
|
|
||||||
OPERATING LOSS
|
(15.2
|
)
|
|
—
|
|
|
—
|
|
|
(66.1
|
)
|
|
—
|
|
|
(81.3
|
)
|
||||||
OTHER EXPENSE, NET
|
(16.1
|
)
|
|
(15.4
|
)
|
|
(20.5
|
)
|
|
(27.3
|
)
|
|
4.1
|
|
|
(75.2
|
)
|
||||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
(31.3
|
)
|
|
(15.4
|
)
|
|
(20.5
|
)
|
|
(93.4
|
)
|
|
4.1
|
|
|
(156.5
|
)
|
||||||
INCOME TAX PROVISION
|
—
|
|
|
16.6
|
|
|
—
|
|
|
14.9
|
|
|
—
|
|
|
31.5
|
|
||||||
EQUITY IN EARNINGS (LOSSES) OF AFFILIATES, NET OF TAX
|
(159.1
|
)
|
|
32.1
|
|
|
26.1
|
|
|
—
|
|
|
100.9
|
|
|
—
|
|
||||||
NET INCOME (LOSS)
|
(190.4
|
)
|
|
.1
|
|
|
5.6
|
|
|
(108.3
|
)
|
|
105.0
|
|
|
(188.0
|
)
|
||||||
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.4
|
)
|
|
—
|
|
|
(2.4
|
)
|
||||||
NET INCOME (LOSS) ATTRIBUTABLE TO ENSCOROWAN
|
$
|
(190.4
|
)
|
|
$
|
.1
|
|
|
$
|
5.6
|
|
|
$
|
(110.7
|
)
|
|
$
|
105.0
|
|
|
$
|
(190.4
|
)
|
ENSCO ROWAN PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
Three Months Ended March 31, 2018
(in millions)
(Unaudited)
|
|||||||||||||||||||||||
|
Ensco Rowan plc
|
|
ENSCO International Incorporated
|
|
Pride International LLC
|
|
Other Non-Guarantor Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
OPERATING REVENUES
|
$
|
12.3
|
|
|
$
|
40.3
|
|
|
$
|
—
|
|
|
$
|
443.5
|
|
|
$
|
(79.1
|
)
|
|
$
|
417.0
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Contract drilling (exclusive of depreciation)
|
13.4
|
|
|
36.6
|
|
|
—
|
|
|
354.3
|
|
|
(79.1
|
)
|
|
325.2
|
|
||||||
Depreciation
|
—
|
|
|
3.5
|
|
|
—
|
|
|
111.7
|
|
|
—
|
|
|
115.2
|
|
||||||
General and administrative
|
10.2
|
|
|
.2
|
|
|
—
|
|
|
17.5
|
|
|
—
|
|
|
27.9
|
|
||||||
OPERATING LOSS
|
(11.3
|
)
|
|
—
|
|
|
—
|
|
|
(40.0
|
)
|
|
—
|
|
|
(51.3
|
)
|
||||||
OTHER INCOME (EXPENSE), NET
|
5.6
|
|
|
(28.0
|
)
|
|
(30.3
|
)
|
|
(33.4
|
)
|
|
15.4
|
|
|
(70.7
|
)
|
||||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
(5.7
|
)
|
|
(28.0
|
)
|
|
(30.3
|
)
|
|
(73.4
|
)
|
|
15.4
|
|
|
(122.0
|
)
|
||||||
INCOME TAX PROVISION
|
—
|
|
|
4.3
|
|
|
—
|
|
|
14.1
|
|
|
—
|
|
|
18.4
|
|
||||||
DISCONTINUED OPERATIONS, NET
|
—
|
|
|
—
|
|
|
—
|
|
|
(.1
|
)
|
|
—
|
|
|
(.1
|
)
|
||||||
EQUITY IN EARNINGS (LOSSES) OF AFFILIATES, NET OF TAX
|
(134.4
|
)
|
|
20.8
|
|
|
23.4
|
|
|
—
|
|
|
90.2
|
|
|
—
|
|
||||||
NET LOSS
|
(140.1
|
)
|
|
(11.5
|
)
|
|
(6.9
|
)
|
|
(87.6
|
)
|
|
105.6
|
|
|
(140.5
|
)
|
||||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
—
|
|
|
—
|
|
|
—
|
|
|
.4
|
|
|
—
|
|
|
.4
|
|
||||||
NET LOSS ATTRIBUTABLE TO ENSCOROWAN
|
$
|
(140.1
|
)
|
|
$
|
(11.5
|
)
|
|
$
|
(6.9
|
)
|
|
$
|
(87.2
|
)
|
|
$
|
105.6
|
|
|
$
|
(140.1
|
)
|
|
Ensco Rowan plc
|
|
ENSCO International Incorporated
|
|
Pride International LLC
|
|
Other Non-Guarantor Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
NET INCOME (LOSS)
|
$
|
(190.4
|
)
|
|
$
|
.1
|
|
|
$
|
5.6
|
|
|
$
|
(108.3
|
)
|
|
$
|
105.0
|
|
|
$
|
(188.0
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), NET
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reclassification of net losses on derivative instruments from other comprehensive income into net income
|
—
|
|
|
1.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(.1
|
)
|
|
—
|
|
|
(.1
|
)
|
||||||
NET OTHER COMPREHENSIVE INCOME (LOSS)
|
—
|
|
|
1.6
|
|
|
—
|
|
|
(.1
|
)
|
|
—
|
|
|
1.5
|
|
||||||
COMPREHENSIVE INCOME (LOSS)
|
(190.4
|
)
|
|
1.7
|
|
|
5.6
|
|
|
(108.4
|
)
|
|
105.0
|
|
|
(186.5
|
)
|
||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.4
|
)
|
|
—
|
|
|
(2.4
|
)
|
||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ENSCOROWAN
|
$
|
(190.4
|
)
|
|
$
|
1.7
|
|
|
$
|
5.6
|
|
|
$
|
(110.8
|
)
|
|
$
|
105.0
|
|
|
$
|
(188.9
|
)
|
|
Ensco Rowan plc
|
|
ENSCO International Incorporated
|
|
Pride International LLC
|
|
Other Non-Guarantor Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
NET LOSS
|
$
|
(140.1
|
)
|
|
$
|
(11.5
|
)
|
|
$
|
(6.9
|
)
|
|
$
|
(87.6
|
)
|
|
$
|
105.6
|
|
|
$
|
(140.5
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), NET
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net change in fair value of derivatives
|
—
|
|
|
1.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
||||||
Reclassification of net gains on derivative instruments from other comprehensive income into net loss
|
—
|
|
|
(2.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.2
|
)
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(.1
|
)
|
|
—
|
|
|
(.1
|
)
|
||||||
NET OTHER COMPREHENSIVE INCOME (LOSS)
|
—
|
|
|
(.3
|
)
|
|
—
|
|
|
(.1
|
)
|
|
—
|
|
|
(.4
|
)
|
||||||
COMPREHENSIVE LOSS
|
(140.1
|
)
|
|
(11.8
|
)
|
|
(6.9
|
)
|
|
(87.7
|
)
|
|
105.6
|
|
|
(140.9
|
)
|
||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
|
—
|
|
|
—
|
|
|
—
|
|
|
.4
|
|
|
—
|
|
|
.4
|
|
||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO ENSCOROWAN
|
$
|
(140.1
|
)
|
|
$
|
(11.8
|
)
|
|
$
|
(6.9
|
)
|
|
$
|
(87.3
|
)
|
|
$
|
105.6
|
|
|
$
|
(140.5
|
)
|
ENSCO ROWAN PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
March 31, 2019
(in millions)
(Unaudited)
|
|||||||||||||||||||||||
|
Ensco Rowan plc
|
|
ENSCO International Incorporated
|
|
Pride International LLC
|
|
Other Non-Guarantor Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
245.9
|
|
|
$
|
—
|
|
|
$
|
2.3
|
|
|
$
|
50.2
|
|
|
$
|
—
|
|
|
$
|
298.4
|
|
Short-term investments
|
245.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
245.0
|
|
||||||
Accounts receivable, net
|
4.1
|
|
|
25.4
|
|
|
—
|
|
|
284.2
|
|
|
—
|
|
|
313.7
|
|
||||||
Accounts receivable from affiliates
|
1,822.9
|
|
|
78.2
|
|
|
.7
|
|
|
54.2
|
|
|
(1,956.0
|
)
|
|
—
|
|
||||||
Other
|
.4
|
|
|
3.5
|
|
|
—
|
|
|
350.9
|
|
|
—
|
|
|
354.8
|
|
||||||
Total current assets
|
2,318.3
|
|
|
107.1
|
|
|
3.0
|
|
|
739.5
|
|
|
(1,956.0
|
)
|
|
1,211.9
|
|
||||||
PROPERTY AND EQUIPMENT, AT COST
|
1.8
|
|
|
101.4
|
|
|
—
|
|
|
15,265.4
|
|
|
—
|
|
|
15,368.6
|
|
||||||
Less accumulated depreciation
|
1.8
|
|
|
71.1
|
|
|
—
|
|
|
2,786.8
|
|
|
—
|
|
|
2,859.7
|
|
||||||
Property and equipment, net
|
—
|
|
|
30.3
|
|
|
—
|
|
|
12,478.6
|
|
|
—
|
|
|
12,508.9
|
|
||||||
DUE FROM AFFILIATES
|
2,412.6
|
|
|
—
|
|
|
61.1
|
|
|
2,485.7
|
|
|
(4,959.4
|
)
|
|
—
|
|
||||||
INVESTMENTS IN AFFILIATES
|
8,372.7
|
|
|
3,745.8
|
|
|
1,226.0
|
|
|
—
|
|
|
(13,344.5
|
)
|
|
—
|
|
||||||
OTHER ASSETS
|
8.8
|
|
|
—
|
|
|
—
|
|
|
133.4
|
|
|
—
|
|
|
142.2
|
|
||||||
|
$
|
13,112.4
|
|
|
$
|
3,883.2
|
|
|
$
|
1,290.1
|
|
|
$
|
15,837.2
|
|
|
$
|
(20,259.9
|
)
|
|
$
|
13,863.0
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|||||||||||||||
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable and accrued liabilities
|
$
|
64.8
|
|
|
$
|
34.0
|
|
|
$
|
4.6
|
|
|
$
|
413.5
|
|
|
$
|
—
|
|
|
$
|
516.9
|
|
Accounts payable to affiliates
|
29.2
|
|
|
55.4
|
|
|
8.6
|
|
|
1,862.8
|
|
|
(1,956.0
|
)
|
|
—
|
|
||||||
Total current liabilities
|
94.0
|
|
|
89.4
|
|
|
13.2
|
|
|
2,276.3
|
|
|
(1,956.0
|
)
|
|
516.9
|
|
||||||
DUE TO AFFILIATES
|
1,439.3
|
|
|
994.5
|
|
|
1,362.2
|
|
|
1,163.4
|
|
|
(4,959.4
|
)
|
|
—
|
|
||||||
LONG-TERM DEBT
|
3,678.4
|
|
|
149.4
|
|
|
501.5
|
|
|
689.2
|
|
|
—
|
|
|
5,018.5
|
|
||||||
OTHER LIABILITIES
|
0.4
|
|
|
67.2
|
|
|
—
|
|
|
359.7
|
|
|
—
|
|
|
427.3
|
|
||||||
ENSCOROWAN SHAREHOLDERS' EQUITY (DEFICIT)
|
7,900.3
|
|
|
2,582.7
|
|
|
(586.8
|
)
|
|
11,348.8
|
|
|
(13,344.5
|
)
|
|
7,900.5
|
|
||||||
NONCONTROLLING INTERESTS
|
—
|
|
|
—
|
|
|
—
|
|
|
(.2
|
)
|
|
—
|
|
|
(.2
|
)
|
||||||
Total equity
|
7,900.3
|
|
|
2,582.7
|
|
|
(586.8
|
)
|
|
11,348.6
|
|
|
(13,344.5
|
)
|
|
7,900.3
|
|
||||||
|
$
|
13,112.4
|
|
|
$
|
3,883.2
|
|
|
$
|
1,290.1
|
|
|
$
|
15,837.2
|
|
|
$
|
(20,259.9
|
)
|
|
$
|
13,863.0
|
|
ENSCO ROWAN PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
December 31, 2018
(in millions)
|
|||||||||||||||||||||||
|
Ensco Rowan plc
|
|
ENSCO International Incorporated
|
|
Pride International LLC
|
|
Other Non-Guarantor Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
199.8
|
|
|
$
|
—
|
|
|
$
|
2.7
|
|
|
$
|
72.6
|
|
|
$
|
—
|
|
|
$
|
275.1
|
|
Short-term investments
|
329.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
329.0
|
|
||||||
Accounts receivable, net
|
7.3
|
|
|
25.4
|
|
|
—
|
|
|
312.0
|
|
|
—
|
|
|
344.7
|
|
||||||
Accounts receivable from affiliates
|
1,861.2
|
|
|
171.4
|
|
|
—
|
|
|
131.7
|
|
|
(2,164.3
|
)
|
|
—
|
|
||||||
Other
|
.6
|
|
|
6.0
|
|
|
—
|
|
|
354.3
|
|
|
—
|
|
|
360.9
|
|
||||||
Total current assets
|
2,397.9
|
|
|
202.8
|
|
|
2.7
|
|
|
870.6
|
|
|
(2,164.3
|
)
|
|
1,309.7
|
|
||||||
PROPERTY AND EQUIPMENT, AT COST
|
1.8
|
|
|
125.2
|
|
|
—
|
|
|
15,390.0
|
|
|
—
|
|
|
15,517.0
|
|
||||||
Less accumulated depreciation
|
1.8
|
|
|
91.3
|
|
|
—
|
|
|
2,807.7
|
|
|
—
|
|
|
2,900.8
|
|
||||||
Property and equipment, net
|
—
|
|
|
33.9
|
|
|
—
|
|
|
12,582.3
|
|
|
—
|
|
|
12,616.2
|
|
||||||
DUE FROM AFFILIATES
|
2,413.8
|
|
|
234.5
|
|
|
125.0
|
|
|
2,715.1
|
|
|
(5,488.4
|
)
|
|
—
|
|
||||||
INVESTMENTS IN AFFILIATES
|
8,522.6
|
|
|
3,713.7
|
|
|
1,199.9
|
|
|
—
|
|
|
(13,436.2
|
)
|
|
—
|
|
||||||
OTHER ASSETS
|
8.1
|
|
|
—
|
|
|
—
|
|
|
89.7
|
|
|
—
|
|
|
97.8
|
|
||||||
|
$
|
13,342.4
|
|
|
$
|
4,184.9
|
|
|
$
|
1,327.6
|
|
|
$
|
16,257.7
|
|
|
$
|
(21,088.9
|
)
|
|
$
|
14,023.7
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|||||||||||||||
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable and accrued liabilities
|
$
|
85.3
|
|
|
$
|
32.0
|
|
|
$
|
12.7
|
|
|
$
|
398.5
|
|
|
$
|
—
|
|
|
$
|
528.5
|
|
Accounts payable to affiliates
|
59.7
|
|
|
139.5
|
|
|
38.2
|
|
|
1,926.9
|
|
|
(2,164.3
|
)
|
|
—
|
|
||||||
Total current liabilities
|
145.0
|
|
|
171.5
|
|
|
50.9
|
|
|
2,325.4
|
|
|
(2,164.3
|
)
|
|
528.5
|
|
||||||
DUE TO AFFILIATES
|
1,432.0
|
|
|
1,226.9
|
|
|
1,366.5
|
|
|
1,463.0
|
|
|
(5,488.4
|
)
|
|
—
|
|
||||||
LONG-TERM DEBT
|
3,676.5
|
|
|
149.3
|
|
|
502.6
|
|
|
682.0
|
|
|
—
|
|
|
5,010.4
|
|
||||||
OTHER LIABILITIES
|
.1
|
|
|
64.3
|
|
|
—
|
|
|
331.6
|
|
|
—
|
|
|
396.0
|
|
||||||
ENSCOROWAN SHAREHOLDERS' EQUITY (DEFICIT)
|
8,088.8
|
|
|
2,572.9
|
|
|
(592.4
|
)
|
|
11,458.3
|
|
|
(13,436.2
|
)
|
|
8,091.4
|
|
||||||
NONCONTROLLING INTERESTS
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.6
|
)
|
|
—
|
|
|
(2.6
|
)
|
||||||
Total equity
|
8,088.8
|
|
|
2,572.9
|
|
|
(592.4
|
)
|
|
11,455.7
|
|
|
(13,436.2
|
)
|
|
8,088.8
|
|
||||||
|
$
|
13,342.4
|
|
|
$
|
4,184.9
|
|
|
$
|
1,327.6
|
|
|
$
|
16,257.7
|
|
|
$
|
(21,088.9
|
)
|
|
$
|
14,023.7
|
|
ENSCO ROWAN PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2019
(in millions)
(Unaudited)
|
|||||||||||||||||||||||
|
Ensco Rowan plc
|
|
ENSCO International Incorporated
|
|
Pride International LLC
|
|
Other Non-guarantor Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net cash provided by (used in) operating activities
|
$
|
(45.9
|
)
|
|
$
|
(43.0
|
)
|
|
$
|
(55.2
|
)
|
|
$
|
119.7
|
|
|
$
|
—
|
|
|
$
|
(24.4
|
)
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Maturities of short-term investments
|
204.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
204.0
|
|
||||||
Purchases of short-term investments
|
(120.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(120.0
|
)
|
||||||
Additions to property and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
(29.0
|
)
|
|
—
|
|
|
(29.0
|
)
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
.3
|
|
|
—
|
|
|
.3
|
|
||||||
Net cash provided by (used in) in investing activities
|
84.0
|
|
|
—
|
|
|
—
|
|
|
(28.7
|
)
|
|
—
|
|
|
55.3
|
|
||||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash dividends paid
|
(4.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.5
|
)
|
||||||
Advances from (to) affiliates
|
15.3
|
|
|
43.0
|
|
|
54.8
|
|
|
(113.1
|
)
|
|
—
|
|
|
—
|
|
||||||
Other
|
(2.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.8
|
)
|
||||||
Net cash provided by (used in) financing activities
|
8.0
|
|
|
43.0
|
|
|
54.8
|
|
|
(113.1
|
)
|
|
—
|
|
|
(7.3
|
)
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(.3
|
)
|
|
—
|
|
|
(.3
|
)
|
||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
46.1
|
|
|
—
|
|
|
(.4
|
)
|
|
(22.4
|
)
|
|
—
|
|
|
23.3
|
|
||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
199.8
|
|
|
—
|
|
|
2.7
|
|
|
72.6
|
|
|
—
|
|
|
275.1
|
|
||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
245.9
|
|
|
$
|
—
|
|
|
$
|
2.3
|
|
|
$
|
50.2
|
|
|
$
|
—
|
|
|
$
|
298.4
|
|
ENSCO ROWAN PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2018
(in millions)
(Unaudited)
|
|||||||||||||||||||||||
|
Ensco Rowan plc
|
|
ENSCO International Incorporated
|
|
Pride International LLC
|
|
Other Non-guarantor Subsidiaries
|
|
Consolidating Adjustments
|
|
Total
|
||||||||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net cash provided by (used in) operating activities of continuing operations
|
$
|
18.0
|
|
|
$
|
(36.9
|
)
|
|
$
|
(45.0
|
)
|
|
$
|
103.4
|
|
|
$
|
—
|
|
|
$
|
39.5
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Purchases of short-term investments
|
(349.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(349.0
|
)
|
||||||
Maturities of short-term investments
|
390.0
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
390.0
|
|
||||||
Additions to property and equipment
|
—
|
|
|
—
|
|
|
—
|
|
|
(269.3
|
)
|
|
—
|
|
|
(269.3
|
)
|
||||||
Purchase of affiliate debt
|
(552.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
552.5
|
|
|
—
|
|
||||||
Sale of affiliate debt
|
479.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(479.0
|
)
|
|
—
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
.1
|
|
|
—
|
|
|
.1
|
|
||||||
Net cash provided by (used in) investing activities of continuing operations
|
(32.5
|
)
|
|
—
|
|
|
—
|
|
|
(269.2
|
)
|
|
73.5
|
|
|
(228.2
|
)
|
||||||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Proceeds from issuance of senior notes
|
1,000.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,000.0
|
|
||||||
Reduction of long-term borrowings
|
(159.7
|
)
|
|
—
|
|
|
(537.8
|
)
|
|
—
|
|
|
(73.5
|
)
|
|
(771.0
|
)
|
||||||
Debt financing costs
|
(16.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16.8
|
)
|
||||||
Cash dividends paid
|
(4.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.5
|
)
|
||||||
Advances from (to) affiliates
|
(666.7
|
)
|
|
36.9
|
|
|
571.7
|
|
|
58.1
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
(1.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
||||||
Net cash provided by financing activities
|
151.1
|
|
|
36.9
|
|
|
33.9
|
|
|
58.1
|
|
|
(73.5
|
)
|
|
206.5
|
|
||||||
Net cash provided by discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
|
2.5
|
|
||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
—
|
|
|
(.3
|
)
|
|
—
|
|
|
(.3
|
)
|
||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
136.6
|
|
|
—
|
|
|
(11.1
|
)
|
|
(105.5
|
)
|
|
—
|
|
|
20.0
|
|
||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
185.2
|
|
|
—
|
|
|
25.6
|
|
|
234.6
|
|
|
—
|
|
|
445.4
|
|
||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
321.8
|
|
|
$
|
—
|
|
|
$
|
14.5
|
|
|
$
|
129.1
|
|
|
$
|
—
|
|
|
$
|
465.4
|
|
|
2019
|
|
2018
|
||||
Revenues
|
$
|
405.9
|
|
|
$
|
417.0
|
|
Operating expenses
|
|
|
|
|
|
||
Contract drilling (exclusive of depreciation)
|
332.6
|
|
|
325.2
|
|
||
Depreciation
|
125.0
|
|
|
115.2
|
|
||
General and administrative
|
29.6
|
|
|
27.9
|
|
||
Operating loss
|
(81.3
|
)
|
|
(51.3
|
)
|
||
Other expense, net
|
(75.2
|
)
|
|
(70.7
|
)
|
||
Provision for income taxes
|
31.5
|
|
|
18.4
|
|
||
Loss from continuing operations
|
(188.0
|
)
|
|
(140.4
|
)
|
||
Loss from discontinued operations, net
|
—
|
|
|
(.1
|
)
|
||
Net loss
|
(188.0
|
)
|
|
(140.5
|
)
|
||
Net (income) loss attributable to noncontrolling interests
|
(2.4
|
)
|
|
.4
|
|
||
Net loss attributable to EnscoRowan
|
$
|
(190.4
|
)
|
|
$
|
(140.1
|
)
|
|
2019
|
|
2018
|
Floaters
(1)
|
22
|
|
23
|
Jackups
(2)
|
33
|
|
35
|
Under construction
(3)
|
3
|
|
3
|
Held-for-sale
(1)(2)(4)
|
1
|
|
4
|
Total
|
59
|
|
65
|
(1)
|
During the second quarter of 2018, we classified ENSCO 6001 as held-for-sale.
|
(2)
|
During the second quarter of 2018, we classified ENSCO 80 as held-for sale. During the first quarter of 2019, we classified ENSCO 97 as held-for sale.
|
(3)
|
In April 2019, we accepted delivery of ENSCO 123 which will be presented within jackups beginning in the second quarter.
|
(4)
|
During the second quarter of 2018, we sold ENSCO 7500, ENSCO 81 and ENSCO 82. During the third quarter of 2018, we sold ENSCO 5005, ENSCO 6001 and ENSCO 80.
|
|
2019
|
|
2018
|
Rig Utilization
(1)
|
|
|
|
Floaters
|
43%
|
|
44%
|
Jackups
|
68%
|
|
61%
|
Total
|
58%
|
|
54%
|
Average Day Rates
(2)
|
|
|
|
Floaters
|
$240,440
|
|
$262,661
|
Jackups
|
72,146
|
|
73,529
|
Total
|
$120,935
|
|
$132,486
|
(1)
|
Rig utilization is derived by dividing the number of days under contract by the number of days in the period. Days under contract equals the total number of days that rigs have earned and recognized day rate revenue, including days associated with early contract terminations, compensated downtime and mobilizations. When revenue is earned but is deferred and amortized over a future period, for example when a rig earns revenue while mobilizing to commence a new contract or while being upgraded in a shipyard, the related days are excluded from days under contract.
|
(2)
|
Average day rates are derived by dividing contract drilling revenues, adjusted to exclude certain types of non-recurring reimbursable revenues, lump-sum revenues and revenues attributable to amortization of drilling contract intangibles, by the aggregate number of contract days, adjusted to exclude contract days associated with certain mobilizations, demobilizations, shipyard contracts and standby contracts.
|
|
Floaters
|
|
Jackups
|
|
Other
|
|
Operating Segments Total
|
|
Reconciling Items
|
|
Consolidated Total
|
||||||||||||
Revenues
|
$
|
232.7
|
|
|
$
|
157.0
|
|
|
$
|
16.2
|
|
|
$
|
405.9
|
|
|
$
|
—
|
|
|
$
|
405.9
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contract drilling (exclusive of depreciation)
|
181.8
|
|
|
135.4
|
|
|
15.4
|
|
|
332.6
|
|
|
—
|
|
|
332.6
|
|
||||||
Depreciation
|
84.8
|
|
|
36.9
|
|
|
—
|
|
|
121.7
|
|
|
3.3
|
|
|
125.0
|
|
||||||
General and administrative
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.6
|
|
|
29.6
|
|
||||||
Operating income (loss)
|
$
|
(33.9
|
)
|
|
$
|
(15.3
|
)
|
|
$
|
.8
|
|
|
$
|
(48.4
|
)
|
|
$
|
(32.9
|
)
|
|
$
|
(81.3
|
)
|
|
Floaters
|
|
Jackups
|
|
Other
|
|
Operating Segments Total
|
|
Reconciling Items
|
|
Consolidated Total
|
||||||||||||
Revenues
|
$
|
259.0
|
|
|
$
|
143.4
|
|
|
$
|
14.6
|
|
|
$
|
417.0
|
|
|
$
|
—
|
|
|
$
|
417.0
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Contract drilling (exclusive of depreciation)
|
185.1
|
|
|
126.9
|
|
|
13.2
|
|
|
325.2
|
|
|
—
|
|
|
325.2
|
|
||||||
Depreciation
|
75.3
|
|
|
36.5
|
|
|
—
|
|
|
111.8
|
|
|
3.4
|
|
|
115.2
|
|
||||||
General and administrative
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27.9
|
|
|
27.9
|
|
||||||
Operating income (loss)
|
$
|
(1.4
|
)
|
|
$
|
(20.0
|
)
|
|
$
|
1.4
|
|
|
$
|
(20.0
|
)
|
|
$
|
(31.3
|
)
|
|
$
|
(51.3
|
)
|
|
2019
|
|
2018
|
||||
Interest income
|
$
|
3.5
|
|
|
$
|
3.0
|
|
Interest expense, net:
|
|
|
|
|
|||
Interest expense
|
(87.2
|
)
|
|
(84.0
|
)
|
||
Capitalized interest
|
6.2
|
|
|
18.4
|
|
||
|
(81.0
|
)
|
|
(65.6
|
)
|
||
Other, net
|
2.3
|
|
|
(8.1
|
)
|
||
|
$
|
(75.2
|
)
|
|
$
|
(70.7
|
)
|
|
2019
|
|
2018
|
||||
Net cash (used in) provided by operating activities of continuing operations
|
$
|
(24.4
|
)
|
|
$
|
39.5
|
|
Capital expenditures
|
|
|
|
|
|
||
New rig construction
|
$
|
16.2
|
|
|
$
|
234.9
|
|
Rig enhancements
|
3.0
|
|
|
18.3
|
|
||
Minor upgrades and improvements
|
9.8
|
|
|
16.1
|
|
||
|
$
|
29.0
|
|
|
$
|
269.3
|
|
|
|
Cumulative Paid
(1)
|
|
Remaining 2019
|
|
2020
|
|
Thereafter
|
|
Total
(2)
|
||||||||||
ENSCO 123
|
|
$
|
278.0
|
|
|
$
|
7.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
285.6
|
|
ENSCO DS-13
(3)
|
|
—
|
|
|
83.9
|
|
|
—
|
|
|
—
|
|
|
83.9
|
|
|||||
ENSCO DS-14
(3)
|
|
15.0
|
|
|
—
|
|
|
165.0
|
|
|
—
|
|
|
180.0
|
|
|||||
|
|
$
|
293.0
|
|
|
$
|
91.5
|
|
|
$
|
165.0
|
|
|
$
|
—
|
|
|
$
|
549.5
|
|
(1)
|
Cumulative paid represents the aggregate amount of contractual payments made from commencement of the construction agreement through
March 31, 2019
. Contractual payments made by Atwood prior to the Atwood acquisition for ENSCO DS-13 and ENSCO DS-14 are excluded.
|
(2)
|
Total commitments are based on fixed-price shipyard construction contracts, exclusive of costs associated with commissioning, systems integration testing, project management, holding costs and interest.
|
(3)
|
The remaining milestone payments for ENSCO DS-13 and ENSCO DS-14 bear interest at a rate of 4.5% per annum, which accrues during the holding period until delivery. Delivery is scheduled for September 2019 and June 2020 for ENSCO DS-13 and ENSCO DS-14, respectively. Upon delivery, the remaining milestone payments and accrued interest thereon may be financed through a promissory note with the shipyard for each rig. The promissory notes will bear interest at a rate of 5% per annum with a maturity date of December 31, 2022 and will be secured by a mortgage on each respective rig. The remaining milestone payments for ENSCO DS-13 and ENSCO DS-14 are included in the table above in the period in which we expect to take delivery of the rig. However, we may elect to execute the promissory notes and defer payment until December 2022.
|
|
|
Pro Forma
(1)
|
|
March 31,
2019 |
|
December 31,
2018 |
||||||
|
|
March 31, 2019
|
|
|
||||||||
Total debt
(2)
|
|
$
|
7,681.3
|
|
|
$
|
5,161.0
|
|
|
$
|
5,161.0
|
|
Total capital
(3)
|
|
$
|
17,725.7
|
|
|
$
|
13,061.5
|
|
|
$
|
13,252.4
|
|
Total debt to total capital
|
|
43.3
|
%
|
|
39.5
|
%
|
|
38.9
|
%
|
(1)
|
Pro forma amounts reflect the impact of the Rowan Transaction as if it occurred on March 31, 2019. Total debt was adjusted to include Rowan's
$2.5 billion
principal amount of outstanding debt. In additional to the inclusion of Rowan's
$2.5 billion
principal amount of debt outstanding, total capital was adjusted to reflect the
$1.4 billion
of consideration transferred and the estimated
$753.7 million
bargain purchase gain. See "Note 3 - Rowan Transaction" for additional information on the Rowan Transaction.
|
(2)
|
Total debt consists of the principal amount outstanding.
|
(3)
|
Total capital consists of total debt and EnscoRowan shareholders' equity.
|
|
|
Pro Forma
|
|
March 31,
2019 |
|
December 31,
2018 |
||||||
|
|
March 31, 2019
|
|
|||||||||
Cash and cash equivalents
|
|
$
|
338.5
|
|
|
$
|
298.4
|
|
|
$
|
275.1
|
|
Short-term investments
|
|
$
|
1,141.7
|
|
|
$
|
245.0
|
|
|
$
|
329.0
|
|
Working capital
|
|
$
|
1,575.2
|
|
|
$
|
695.0
|
|
|
$
|
781.2
|
|
Current ratio
|
|
2.6
|
|
|
2.3
|
|
|
2.5
|
|
(1)
|
Equity securities were repurchased from employees and non-employee directors by an affiliated employee benefit trust in connection with the settlement of income tax withholding obligations arising from the vesting of share awards. Such securities remain available for re-issuance in connection with employee share awards.
|
(2)
|
During 2018, our shareholders approved a new share repurchase program. Subject to certain provisions under English law, including the requirement of Ensco Rowan plc to have sufficient distributable reserves, we may purchase up to a maximum of
$500 million
in the aggregate under the program, but in no case more than
16.3 million
shares. The program terminates in May 2023.
|
Exhibit Number
|
|
Exhibit
|
*2.1
|
|
|
3.1
|
|
|
3.2
|
|
|
+10.1
|
|
|
+10.2
|
|
|
+10.3
|
|
|
+10.4
|
|
|
10.5
|
|
|
*15.1
|
|
|
*31.1
|
|
|
*31.2
|
|
|
**32.1
|
|
|
**32.2
|
|
|
*101.INS
|
|
XBRL Instance Document
|
*101.SCH
|
|
XBRL Taxonomy Extension Schema
|
*101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
*101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
*101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
*101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
|
|
Ensco Rowan plc
|
|
|
|
|
Date:
|
May 2, 2019
|
|
/s/ JONATHAN H. BAKSHT
|
|
|
|
Jonathan H. Baksht
Senior Vice President and
Chief Financial Officer
(principal financial officer)
|
|
|
|
|
|
|
|
/s/ TOMMY E. DARBY
|
|
|
|
Tommy E. Darby
Controller
(principal accounting officer)
|
Title:
|
President and Chief Executive Officer
|
1.
|
I have reviewed this report on Form 10-Q for the fiscal quarter ending
March 31, 2019
of Ensco Rowan plc;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
Dated:
|
May 2, 2019
|
|
|
|
|
|
|
/s/ Thomas P. Burke
|
|
|
|
Thomas P. Burke
Chief Executive Officer and President
|
1.
|
I have reviewed this report on Form 10-Q for the fiscal quarter ending
March 31, 2019
of Ensco Rowan plc;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
Dated:
|
May 2, 2019
|
|
|
|
|
|
|
/s/ Jonathan H. Baksht
|
|
|
|
Jonathan H. Baksht
Senior Vice President and Chief Financial Officer |
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act"); and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Thomas P. Burke
|
|
|
Thomas P. Burke
Chief Executive Officer and President
|
|
|
Dated:
|
May 2, 2019
|
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act"); and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Jonathan H. Baksht
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Jonathan H. Baksht
Senior Vice President and Chief Financial Officer |
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Dated:
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May 2, 2019
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