Diamond Offshore Drilling, Inc. (NYSE:DO) Q4 2014 Earnings Conference Call - Final Transcript
Feb 09, 2015 • 08:30 am ET
Ladies and gentlemen, thank you for standing by, and welcome to Diamond Offshore's Fourth Quarter 2014 Earnings Conference Call. [Operator Instructions]
Thank you. It is now my pleasure to turn the call over to Darren Daugherty, Director of Investor Relations. Please go ahead, sir.
Thank you, Maria. Good morning, everyone, and thank you for joining us. With me on the call today are Marc Edwards, President and Chief Executive Officer; Gary Krenek, Senior Vice President and Chief Financial Officer; and Ron Woll, Senior Vice President and Chief Commercial Officer. Following our prepared remarks this morning, we will have a question-and-answer session.
Before we begin our remarks, I remind you that information reported on this call speaks only as of today and therefore you are advised that time-sensitive information may no longer be accurate at the time of any replay of this call.
In addition, certain statements made during this call may constitute statements that are forward-looking in nature. Such statements are based on our current expectations and include known and unknown risks, uncertainties and other factors, many of which we are unable to predict or control, that may cause our actual results or performance to differ materially from any future results or performance expressed or implied by the statements. These risks and uncertainties include the risk factors disclosed by the company from time to time in our filings with the SEC, including our annual report on Form 10-K and in our quarterly reports on Form 10-Q.
Forward-looking statements reflect circumstances at the time they are made, and the company expressly disclaims any obligation to update or revise any forward-looking statements. Furthermore, as we start this call, please refer to the disclosure regarding forward-looking statements incorporated in our press release issued earlier today, and please note that the contents of our call today are covered by that disclosure.
And now I'll turn the call over to Marc.
Thank you, Darren. Good morning, everyone and welcome to our fourth quarter conference call. I'd like to start off by adding some context around our announcement today that our Board of Directors has declared a regular quarterly dividend of $0.125, but for the first time in 29 quarters, not declared a special quarterly dividend. As in prior quarters, the board arrived to this decision after careful consideration of our company's financial position, future earnings outlook, capital spending plans and future market conditions.
Since our earnings call in October market fundamentals in the oil and gas space have continued to deteriorate, leading many of our clients to announce significant cuts to their 2015 capital spending plans. We believe that our market will contract by over 20% year-on-year leaving little, if any opportunity for new industry fixtures to be announced. This is driven by the continued decline in the pricing of commodity benchmarks such as Brent and WTI, which we all know are down by more than 50%, since last summer.
The impact to the 2015 operating cash flows of our clients should not be underestimated especially