Transocean Ltd 8-K, filed Nov 2, 2026

Transocean Ltd. (RIG)

8-K 2026-11-02 For: 2026-11-02

Added on November 02, 2026

About this 8-K

Transocean Ltd filed this 8-K on November 2, 2026.

Transocean Ltd. reported third quarter 2026 revenues of $937 million, net income of $26 million and adjusted EBITDA of $313 million. Backlog was approximately $8.0 billion; the Valaris closing was expected December 1, with $200 million in identified annual synergies. AI summary

Items reported

Item 2.02: Financial results
Item 7.01: Regulation FD disclosure
Item 9.01: Financial statements and exhibits

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Switzerland	001-38373	98-0599916
(State or other jurisdiction of incorporation or organization)	(Commission file number)	(I.R.S. Employer Identification No.)

Turmstrasse 30 Steinhausen, Switzerland		CH-6312
(Address of principal executive offices)		(Zip Code)

+41 (41) 749-0500
(Registrant’s telephone number, including area code)


Title of each class	Trading symbol	Name of each exchange on which registered
Shares, $0.10 par value	RIG	New York Stock Exchange


Number	Description
99.1	Press Release Reporting Third Quarter 2026 Financial Results
99.2	Fleet Status Report dated November 2, 2026
101	Interactive data files pursuant to Rule 405 of Regulation S-T formatted in Inline Extensible Business Reporting Language
104	Cover Page Interactive Data File (formatted as inline XBRL)


	TRANSOCEAN LTD.


Date: November 2, 2026	By	/s/ Debra Kupferman
		Debra Kupferman
		Authorized Person


	Three months ended									Three months ended
	September 30,			June 30,				sequential		September 30,				year-over-year
	2026			2026				change		2025				change
(In millions, except per share amounts and percentages)
Contract drilling revenues	$	937		$	966			$	(29)	$	1,028			$	(91)
Revenue efficiency		96.8	%		97.0	%					97.5	%
Operating and maintenance expense	$	589		$	608			$	19	$	584			$	(5)
Net income (loss)	$	26		$	170			$	(144)	$	(1,923)			$	1,949
Basic earnings (loss) per share	$	0.02		$	0.15			$	(0.13)	$	(2.00)			$	2.02
Diluted earnings (loss) per share	$	0.02		$	0.04			$	(0.02)	$	(2.00)			$	2.02

Adjusted EBITDA	$	313		$	312			$	1	$	397			$	(84)
Adjusted EBITDA margin		33.4	%		32.2	%					38.7	%
Adjusted net income	$	1		$	158			$	(157)	$	62			$	(61)
Adjusted diluted earnings (loss) per share	$	—		$	0.03			$	(0.03)	$	0.06			$	(0.06)

Net cash provided by operating activities	$	174		$	236			$	(62)	$	246			$	(72)
Free cash flow	$	131		$	212			$	(81)	$	235			$	(104)
Total debt, principal amount, end of period	$	4,975		$	5,107			$	(132)	$	6,297			$	(1,322)


		4Q26E		FY26E		Preliminary FY27
(In millions, except percentages)
Contract drilling revenues	$	915 –965	$	3,900– 3,950	$	3,850 – 4,000
Revenue efficiency, fleet wide⁽¹⁾		96.50%		96.50%		96.50%

Selected costs and expenses
Operating and maintenance expense	$	550 – 600	$	2,350 – 2,400	$	2,375 – 2,500
General and administrative	$	45 – 50	$	185 – 190	$	180 – 190
Interest expense	$	107	$	500	$	415
Interest income	$	5 – 10	$	30	$	20 – 30

Capital expenditures	$	50	$	145	$	130 – 140
Cash taxes	$	25 – 30	$	50 – 55	$	60 – 65
Total liquidity (end of year)^(a)		—	$	1,300		1,500 – 1,700

^(a)Reflects scheduled debt amortization payments.


		Three months ended						Nine months ended
		September 30,						September 30,
		2026			2025			2026			2025

Contract drilling revenues		$	937		$	1,028		$	2,984		$	2,922

Costs and expenses
Operating and maintenance			589			584			1,803			1,801
Depreciation and amortization			146			161			437			512
General and administrative			62			46			167			145
			797			791			2,407			2,458

Loss on impairment of assets			—			(1,913)			—			(3,049)
Gain (loss) on disposal of assets, net			3			(1)			5			8
Operating income (loss)			143			(1,677)			582			(2,577)

Other income (expense), net
Interest income			1			12			23			30
Interest expense			(134)			(154)			(390)			(382)
Loss on retirement of debt			—			—			(11)			—
Other, net			(85)			(78)			(78)			(101)
			(218)			(220)			(456)			(453)

Income (loss) before income taxes			(75)			(1,897)			126			(3,030)
Income tax expense (benefit)			(101)			26			(141)			(90)
Net income (loss)		$	26		$	(1,923)		$	267		$	(2,940)

Earnings (loss) per share
Basic		$	0.02		$	(2.00)		$	0.24		$	(3.23)
Diluted		$	0.02		$	(2.00)		$	0.24		$	(3.23)

Weighted-average shares outstanding
Basic			1,120			961			1,116			911
Diluted			1,127			961			1,126			911


	September 30,		December 31,
	2026		2025
Assets
Cash and cash equivalents	$	499	$	620
Accounts receivable, net of allowance of $2 at September 30, 2026 and December 31, 2025		645		540
Materials and supplies, net of allowance of $149 and $140 at September 30, 2026 and December 31, 2025, respectively		371		378
Assets held for sale		—		24
Restricted cash and cash equivalents		285		377
Other current assets		189		142
Total current assets		1,989		2,081

Property and equipment		17,515		17,451
Less accumulated depreciation		(5,277)		(4,874)
Property and equipment, net		12,238		12,577

Deferred tax assets, net		62		61
Other assets		779		923
Total assets	$	15,068	$	15,642

Liabilities and equity
Accounts payable	$	269	$	242
Accrued income taxes		6		22
Debt due within one year		460		445
Other current liabilities		568		627
Total current liabilities		1,303		1,336

Long-term debt		4,558		5,212
Deferred tax liabilities, net		254		404
Other long-term liabilities		499		582
Total long-term liabilities		5,311		6,198

Commitments and contingencies

Shares, $0.10 par value,
1,445 authorized, 141 conditionally authorized, 1,304 issued and 1,117 outstanding at September 30, 2026 and
1,204 authorized, 141 conditionally authorized, 1,204 issued and 1,102 outstanding at December 31, 2025		112		110
Additional paid-in capital		15,623		15,604
Accumulated deficit		(7,193)		(7,460)
Accumulated other comprehensive loss		(88)		(146)
Total equity		8,454		8,108
Total liabilities and equity	$	15,068	$	15,642


TRANSOCEAN LTD. AND SUBSIDIARIES
FLEET OPERATING STATISTICS


		Three months ended
		September 30,		June 30,		September 30,
Contract Drilling Revenues (in millions)		2026		2026		2025
Ultra-deepwater floaters		$	590	$	623	$	696
Harsh environment floaters			347		343		332
Total contract drilling revenues		$	937	$	966	$	1,028


Transocean Ltd. and subsidiaries
Non-GAAP Financial Measures and Reconciliations
Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share
(in millions, except per share data)


					YTD		QTD		YTD		QTD		YTD
Year ending December 31, 2026					09/30/26		09/30/26		06/30/26		06/30/26		03/31/26

Net income					$	267	$	26	$	241	$	170	$	71
Acquisition and restructuring costs						29		10		19		12		7
(Gain) loss on disposal of assets, net						(6)		(4)		(2)		3		(5)
Loss on retirement of debt						9		—		9		—		9
Benefit plan termination settlement cost						62		62		—		—		—
Discrete tax items						(230)		(93)		(137)		(27)		(110)
Adjusted Net Income (Loss)					$	131	$	1	$	130	$	158	$	(28)


Diluted earnings per share					$	0.24	$	0.02	$	0.21	$	0.04	$	0.06
Acquisition and restructuring costs						0.02		0.01		0.02		0.01		—
(Gain) loss on disposal of assets, net						—		—		—		—		—
Loss on retirement of debt						0.01		—		0.01		—		0.01
Benefit plan termination settlement cost						0.05		0.05		—		—		—
Discrete tax items						(0.20)		(0.08)		(0.12)		(0.02)		(0.10)
Adjusted Diluted Earnings (Loss) Per Share					$	0.12	$	—	$	0.12	$	0.03	$	(0.03)


	YTD		QTD		YTD		QTD		YTD		QTD		YTD
Year ended December 31, 2025	12/31/25		12/31/25		09/30/25		09/30/25		06/30/25		06/30/25		03/31/25

Net income (loss) attributable to controlling interest	$	(2,915)	$	25	$	(2,940)	$	(1,923)	$	(1,017)	$	(938)	$	(79)
Restructuring costs		3		—		3		3		—		—		—
Loss on impairment of assets, net of tax		3,036		—		3,036		1,908		1,128		1,128		—
Gain on disposal of assets, net		(4)		(4)		—		—		—		—		—
Loss on conversion of debt to equity		99		—		99		75		24		24		—
Gain on retirement of debt		(3)		(3)		—		—		—		—		—
Discrete tax items		(179)		3		(182)		(1)		(181)		(195)		14
Adjusted Net Income (Loss)	$	37	$	21	$	16	$	62	$	(46)	$	19	$	(65)


Diluted earnings (loss) per share	$	(3.04)	$	0.02	$	(3.23)	$	(2.00)	$	(1.15)	$	(1.06)	$	(0.11)
Restructuring costs		—		—		—		—		—		—		—
Loss on impairment of assets, net of tax		3.16		—		3.34		1.98		1.27		1.27		—
Gain on disposal of assets, net		—		—		—		—		—		—		—
Loss on conversion of debt to equity		0.10		—		0.11		0.08		0.03		0.03		—
Gain on retirement of debt		—		—		—		—		—		—		—
Discrete tax items		(0.18)		—		(0.20)		—		(0.20)		(0.22)		0.01
Dilutive effect, 4.625% exchangeable bonds due December 2029		—		—		(0.03)		—		(0.05)		(0.02)		—
Adjusted Diluted Earnings (Loss) Per Share	$	0.04	$	0.02	$	(0.01)	$	0.06	$	(0.10)	$	—	$	(0.10)


Transocean Ltd. and subsidiaries
Non-GAAP Financial Measures and Reconciliations
Earnings Before Interest, Taxes, Depreciation and Amortization and Related Margins
(in millions, except percentages)


							YTD			QTD			YTD			QTD			YTD
Year ending December 31, 2026							09/30/26			09/30/26			06/30/26			06/30/26			03/31/26

Contract drilling revenues							$	2,984		$	937		$	2,047		$	966		$	1,081

Net income							$	267		$	26		$	241		$	170		$	71
Interest expense, net of interest income								367			133			234			(32)			266
Income tax expense (benefit)								(141)			(101)			(40)			14			(54)
Depreciation and amortization								437			146			291			148			143
EBITDA								930			204			726			300			426

Acquisition and restructuring costs								29			10			19			12			7
Gain on disposal of assets, net								(6)			(2)			(4)			—			(4)
Loss on retirement of debt								11			—			11			—			11
Benefit plan termination settlement cost								101			101			—			—			—
Adjusted EBITDA							$	1,065		$	313		$	752		$	312		$	440


Profit margin								8.9	%		2.7	%		11.8	%		17.7	%		6.5	%
EBITDA margin								31.1	%		21.7	%		35.4	%		31.0	%		39.4	%
Adjusted EBITDA margin								35.7	%		33.4	%		36.7	%		32.2	%		40.7	%


	YTD			QTD			YTD			QTD			YTD			QTD			YTD
Year ended December 31, 2025	12/31/25			12/31/25			09/30/25			09/30/25			06/30/25			06/30/25			03/31/25

Contract drilling revenues	$	3,965		$	1,043		$	2,922		$	1,028		$	1,894		$	988		$	906

Net income (loss)	$	(2,915)		$	25		$	(2,940)		$	(1,923)		$	(1,017)		$	(938)		$	(79)
Interest expense, net of interest income		515			163			352			142			210			102			108
Income tax expense (benefit)		(33)			57			(90)			26			(116)			(155)			39
Depreciation and amortization		659			147			512			161			351			175			176
EBITDA		(1,774)			392			(2,166)			(1,594)			(572)			(816)			244

Restructuring costs		3			—			3			3			—			—			—
Loss on impairment of assets		3,049			—			3,049			1,913			1,136			1,136			—
Gain on disposal of assets, net		(4)			(4)			—			—			—			—			—
Gain on retirement of debt		(3)			(3)			—			—			—			—			—
Loss on conversion of debt to equity		99			—			99			75			24			24			—
Adjusted EBITDA	$	1,370		$	385		$	985		$	397		$	588		$	344		$	244


Profit (loss) margin		(73.5)	%		2.4	%		(100.6)	%		(187.0)	%		(53.7)	%		(94.9)	%		(8.7)	%
EBITDA margin		(44.8)	%		37.5	%		(74.1)	%		(154.9)	%		(30.2)	%		(82.5)	%		26.9	%
Adjusted EBITDA margin		34.6	%		36.8	%		33.8	%		38.7	%		31.1	%		34.9	%		26.9	%


Transocean Ltd. and subsidiaries
Non-GAAP Financial Measures and Reconciliations
Free Cash Flow and Levered Free Cash Flow
(in millions)


					YTD		QTD		YTD		QTD		YTD
Year ending December 31, 2026					09/30/26		09/30/26		06/30/26		06/30/26		03/31/26

Net cash provided by operating activities					$	574	$	174	$	400	$	236	$	164
Capital expenditures						(95)		(43)		(52)		(24)		(28)
Free Cash Flow						479		131		348		212		136

Debt repayments						(718)		(132)		(586)		(30)		(556)
Debt repayments, paid from debt proceeds						—		—		—		—		—
Levered Free Cash Flow					$	(239)	$	(1)	$	(238)	$	182	$	(420)



	YTD		QTD		YTD		QTD		YTD		QTD		YTD
Year ended December 31, 2025	12/31/25		12/31/25		09/30/25		09/30/25		06/30/25		06/30/25		03/31/25

Net cash provided by operating activities	$	749	$	349	$	400	$	246	$	154	$	128	$	26
Capital expenditures		(123)		(28)		(95)		(11)		(84)		(24)		(60)
Free Cash Flow		626		321		305		235		70		104		(34)

Debt repayments		(1,556)		(1,106)		(450)		(210)		(240)		(30)		(210)
Debt repayments, paid from debt proceeds		492		492		—		—		—		—		—
Levered Free Cash Flow	$	(438)	$	(293)	$	(145)	$	25	$	(170)	$	74	$	(244)


Transocean Ltd. and subsidiaries
Non-GAAP Financial Measures and Reconciliations
Net Debt and Net Debt to EBITDA Ratio
(in millions, except ratios)


2026					09/30/26			06/30/26			03/31/26

Debt, total principal amount				$	4,975		$	5,107		$	5,137
Cash and cash equivalents					(499)			(509)			(330)
Restricted cash and cash equivalents					(285)			(286)			(285)
Net Debt				$	4,191		$	4,312		$	4,522

Adjusted EBITDA, trailing four quarters				$	1,450		$	1,534		$	1,566

Net Debt to EBITDA Ratio					2.9	x		2.8	x		2.9	x




2025		12/31/25			09/30/25			06/30/25			03/31/25

Debt, total principal amount	$	5,686		$	6,297		$	6,654		$	6,734
Cash and cash equivalents		(620)			(833)			(377)			(263)
Restricted cash and cash equivalents		(377)			(417)			(395)			(428)
Net Debt	$	4,689		$	5,047		$	5,882		$	6,043

Adjusted EBITDA, trailing four quarters	$	1,370		$	1,308		$	1,253		$	1,193

Net Debt to EBITDA Ratio		3.4	x		3.9	x		4.7	x		5.1	x



Transocean Ltd. and subsidiaries
Supplemental Effective Tax Rate Analysis
(in millions, except tax rates)


	Three months ended									Nine months ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2026			2026			2025			2026			2025

Income (loss) before income taxes	$	(75)		$	184		$	(1,897)		$	126		$	(3,030)
Acquisition and restructuring costs		10			12			3			29			3
Loss on impairment of assets		—			—			1,913			—			3,049
Gain on disposal of assets, net		(2)			—			—			(6)			—
Loss on conversion of debt to equity		—			—			75			—			99
Loss on retirement of debt		—			—			—			11			—
Benefit plan termination settlement cost		101			—			—			101			—
Adjusted income before income taxes	$	34		$	196		$	94		$	261		$	121


Income tax expense (benefit)	$	(101)		$	14		$	26		$	(141)		$	(90)
Acquisition and restructuring costs		—			—			—			—			—
Loss on impairment of assets		—			—			5			—			13
Gain on disposal of assets, net		2			(3)			—			—			—
Loss on conversion of debt to equity		—			—			—			—			—
Loss on retirement of debt		—			—			—			2			—
Benefit plan termination settlement cost		39			—			—			39			—
Changes in estimates ⁽¹⁾		93			27			1			230			182
Adjusted income tax expense	$	33		$	38		$	32		$	130		$	105

Effective Tax Rate ⁽²⁾		133.5	%		7.8	%		(1.4)	%		(112.3)	%		3.0	%

Effective Tax Rate, excluding discrete items ⁽³⁾		97.5	%		19.4	%		34.8	%		49.9	%		86.6	%


⁽¹⁾ Our estimates change as we file tax returns, settle disputes with tax authorities, or become aware of changes in laws, operational changes and rig movements that have an effect on our (a) deferred taxes, (b) valuation allowances on deferred taxes and (c) other tax liabilities.

⁽²⁾Our effective tax rate is calculated as income tax expense or benefit divided by income or loss before income taxes.

⁽³⁾ Our effective tax rate, excluding discrete items, is calculated as income tax expense or benefit, excluding various discrete items (such as changes in estimates and tax on items excluded from income or loss before income taxes), divided by income or loss before income taxes, excluding gains and losses on sales and similar items pursuant to the accounting standards for income taxes related to estimating the annual effective tax rate.


Updated: November 2, 2026
Significant Updates Noted in Bold
		Primary							Dayrate on
		Hookload	Yr.				Estimated	Estimated	Current
	Footnote	Capacity	Entered				Start	End	Contract
Rig Type/Name	References	(Short Tons)	Service	Location	Customer	Status	Date	Date	(Dollars)	Additional Comments
Ultra-Deepwater Drillships (20)
Deepwater Titan	1	1,700	2023	US Gulf	Chevron	Firm	11-Apr-23	10-Apr-28	463,000
Deepwater Atlas		1,700	2022	US Gulf	Beacon	Firm	Sep-26	Nov-26	580,000
				US Gulf	Beacon	Firm	Nov-26	Jan-27	650,000
				US Gulf	Beacon	Contingent	Jan-27	Apr-27	650,000
				US Gulf	Beacon	Firm	Apr-27	Jun-27	505,000
				US Gulf	Beacon	Contingent	Jun-27	Sep-27	505,000
				US Gulf	bp	Firm	Jun-28	Jun-30	635,000
Deepwater Aquila	1, 2, 3	1,400	2024	Brazil	Petrobras	Firm	Apr-26	Dec-26	438,000
	1, 2, 3			Brazil	Petrobras	Firm	Jan-27	Jun-28	442,000
Deepwater Poseidon	1	1,400	2018	US Gulf	Shell	Firm	Sep-18	Feb-28	501,000
Deepwater Pontus	1	1,400	2017	US Gulf	Shell	Firm	Oct-17	Oct-27	499,000
Deepwater Conqueror		1,400	2016	US Gulf	Not Disclosed	Firm	Oct-25	Dec-26	530,000
				Equatorial Guinea	Not Disclosed	Firm	Jan-27	Jul-27	465,000
				US Gulf	Not Disclosed	Firm	Aug-27	Nov-28	499,000
Deepwater Proteus		1,400	2016	US Gulf	Not Disclosed	Firm	Oct-26	Feb-27	Not Disclosed
				US Gulf	Not Disclosed	Firm	Feb-27	Jan-29	465,000
Deepwater Thalassa	1	1,400	2016	Mexico	Woodside	Firm	Mar-26	Feb-29	495,000
Deepwater Asgard				Eastern Med	Not Disclosed	Firm	Dec-26	Dec-27	405,000	20 days - Contract Preparation
Deepwater Invictus		1,400	2014	US Gulf	bp	Firm	Apr-25	Apr-28	494,000
Deepwater Skyros				Australia	Not Disclosed	Firm	Mar-27	Feb-28	Not Disclosed	60 days - Contract Preparation
				Australia	Not Disclosed	Priced Options	Feb-28	Jul-30	Not Disclosed
Deepwater Corcovado	1, 2, 3	1,000	2011	Brazil	Petrobras	Firm	Apr-26	Dec-26	381,000
	1, 2, 3			Brazil	Petrobras	Firm	Jan-27	Nov-30	392,000
Deepwater Mykonos	1, 2	1,000	2011	Brazil	bp	Firm	Aug-26	Jun-27	420,000
Deepwater Orion	1, 2, 3	1,000	2011	Brazil	Petrobras	Firm	Apr-26	Dec-26	377,000
	1, 2, 3			Brazil	Petrobras	Firm	Jan-27	Mar-30	392,000
Dhirubhai Deepwater KG2		1,000	2010	India	ONGC	Firm	Feb-27	Feb-29	389,000
				India	ONGC	Priced Options	Feb-29	Feb-31	Not Disclosed
Petrobras 10000	1, 2	1,000	2009	Brazil	Petrobras	Firm	Oct-26	May-27	428,000
				-	-	Out of Service	May-27	May-27	-	20 days - Planned Maintenance
	1, 2			Brazil	Petrobras	Firm	Jun-27	Oct-27	428,000
	1, 2			Brazil	Petrobras	Firm	Oct-27	Oct-28	440,000
	1, 2			Brazil	Petrobras	Firm	Oct-28	Aug-29	454,000
Dhirubhai Deepwater KG1		1,000	2009	India	Reliance Industries	Firm	Aug-26	Mar-28	410,000
				India	Reliance Industries	Priced Options	Mar-28	Aug-29	Not Disclosed
Ocean Rig Apollo		1,250	2015			Stacked				Stacked May-16
Ocean Rig Athena		1,250	2014			Stacked				Stacked Mar-17
Ocean Rig Mylos		1,250	2013			Stacked				Stacked Sep-16

				Q4 2026	Q1 2027	Q2 2027	Q3 2027
		Estimated Average Contract Dayrates (4)		$454,000	$447,000	$445,000	$443,000


	Revisions Noted in Bold
Footnotes

1	Dayrate could change in the future due to cost escalations or de-escalations.
2	Dayrate includes a non-USD currency component.
3	The contract has a bonus incentive opportunity that is not reflected in the contract dayrate.
4	The average contractual dayrate relative to our contract backlog is defined as the average maximum contractual operating dayrate to be earned per operating day and certain performance-based provisions expected to be achieved in the measurement period.


Disclaimers & Definitions

The information contained in this Fleet Status Report (the “Information”) is as of the date of the report only and is subject to change without notice to the recipient. Transocean Ltd. assumes no duty to update any portion of the Information.

DISCLAIMER. NEITHER TRANSOCEAN LTD. NOR ITS AFFILIATES MAKE ANY EXPRESS OR IMPLIED WARRANTIES (INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE) REGARDING THE INFORMATION CONTAINED IN THIS REPORT, WHICH INFORMATION IS PROVIDED “AS IS.” Neither Transocean Ltd. nor its affiliates will be liable to any recipient or anyone else for any inaccuracy, error or omission, regardless of cause, in the information set forth in this report or for any damages (whether direct or indirect, consequential, punitive or exemplary) resulting therefrom.

No Unauthorized Publication or Use. All information provided by Transocean in this report is given for the exclusive use of the recipient and may not be published, redistributed or retransmitted without the prior written consent of Transocean.

Customer Contract Duration, Timing and Dayrates and Risks Associated with Operations. The duration and timing (including both starting and ending dates) of the customer contracts are estimates only, and customer contracts are subject to cancellation, suspension and delays for a variety of reasons, including some beyond the control of Transocean. Also, the dayrates set forth in the report are estimates based upon the full contractual operating dayrate. However, the actual average dayrate earned over the course of any given contract will be lower and could be substantially lower. The actual average dayrate will depend upon a number of factors (rig downtime, suspension of operations, etc.) including some beyond the control of Transocean. Our customer contracts and operations are generally subject to a number of risks and uncertainties, and we urge you to review the description and explanation of such risks and uncertainties in our filings with the Securities and Exchange Commission (SEC), which are available free of charge on the SEC’s website at www.sec.gov. The dayrates do not include revenue for mobilizations, demobilizations, upgrades, shipyards or recharges.

Contract backlog. The maximum contractual operating dayrate multiplied by the number of days remaining in the firm contract period, including certain performance-based provisions for which achievement is probable, excluding provisions for mobilization, demobilization, contract preparation, other incentive provisions or reimbursement revenues, which are not expected to be material to our contract drilling revenues. The contract backlog represents the maximum contract drilling revenues that can be earned considering the reported operating dayrate in effect during the firm contract period.

Out of Service. The time associated with committed shipyards, upgrades, surveys, repairs, regulatory inspections, contract preparation or other committed activity on the rig and is not expected to earn an operating dayrate, Contract preparation refers to periods during which the rig is undergoing modifications or upgrades as a result of contract requirements.
•	The references included in this Fleet Status Report may not be firm and could change significantly based on a variety of factors. Any significant changes to our estimates of out of service time will be reflected in subsequent Fleet Status Reports, as applicable.
•	In some instances such as certain mobilizations, upgrades and shipyards, we are paid compensation by our customers that is generally recognized over the life of the primary contract term of the drilling contract.

Forward-Looking Statement. The statements made in the Fleet Status Report that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements made in the Fleet Status Report include, but are not limited to, statements involving the estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations and planned shipyard projects and other out of service time. Such statements are subject to numerous risks, uncertainties and assumptions, including but not limited to, uncertainties relating to the level of activity in offshore oil and gas exploration and development, exploration success by producers, oil and gas prices, competition and market conditions in the contract drilling industry, shipyard delays, actions and approvals of third parties, possible cancellation or suspension of drilling contracts as a result of mechanical difficulties or performance, Transocean’s ability to enter into and the terms of future contracts, the availability of qualified personnel, labor relations and the outcome

of negotiations with unions representing workers, operating hazards, factors affecting the duration of contracts including well-in-progress provisions, the actual amount of downtime, factors resulting in reduced applicable dayrates, hurricanes and other weather conditions, terrorism, political and other uncertainties inherent in non-U.S. operations (including the risk of war, civil disturbance, seizure or damage of equipment and exchange and currency fluctuations), the impact of governmental laws and regulations, the adequacy of sources of liquidity, the effect of litigation and contingencies and other factors described above and discussed in Transocean’s most recently filed Form 10-K, in Transocean’s Forms 10-Q for subsequent periods and in Transocean’s other filings with the SEC, which are available free of charge on the SEC’s website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements, except as required by law.

Fleet Classifications. Transocean uses classifications for its drillships and semisubmersibles as follows: “Ultra-Deepwater” are the latest generation of drillships and semisubmersible rigs and are capable of drilling in water depths equal to or greater than 7,500 feet; “Harsh Environment” are premium rigs equipped for year-round operations in harsh environments.

Stacking. An "Idle" rig is primarily between contracts, readily available for operations, and operating costs are typically at or near normal levels. A "Stacked" rig, on the other hand, is primarily manned by a reduced crew or unmanned and typically has reduced operating costs and is (i) preparing for an extended period of inactivity, (ii) expected to continue to be inactive for an extended period, or (iii) completing a period of extended inactivity. However, stacked rigs will continue to incur operating costs at or above normal operating costs for approximately 30 days following initiation of stacking.