Pacific Drilling S.A. (NYSE:PACD) Q3 2019 Earnings Conference Call - Final Transcript

Good day and welcome to the Pacific Drilling Third Quarter 2019 Earnings Conference Call. [Operator Instructions]

At this time I would like to turn the conference over to Lisa Buchanan Senior Vice President and General Counsel. Please go ahead ma'am.

Thank you Dan and welcome everyone to Pacific Drilling's third quarter 2019 earnings call. Before I turn the call over to Bernie I'd like to remind everyone that any statements we make during this call about our plans expectations estimates or predictions about the future; including those concerning our future financial and operating performance our earnings expectations our beliefs and estimates regarding our relative valuation in the market our market outlook including our views of future contract dayrates and our business strategies and plans for future operations are all forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

These statements are not guarantees of future performance and our actual results could differ materially from any forward-looking statements made during this call due to a variety of factors including those described in the Risk Factors sections of our 2018 Form 20-F and other filings with the U.S. Securities and Exchange Commission which you can find on our website. You should also note that we use certain non-GAAP financial measures during this call. You will find the required supplemental disclosure for these measures including the most directly comparable GAAP measure and associated reconciliation in our earnings release which is available on our website.

I'll now turn the call over to Bernie Wolford Chief Executive Officer of Pacific Drilling.

Thanks Lisa and good morning everyone. Welcome to our third quarter 2019 earnings call. I sincerely appreciate your participation. Joining me today in addition to Lisa are Jim Harris our Chief Financial Officer; and Michael Acuff Senior Vice President of Commercial. We are pleased to announce a number of new commitments. First firming up our second option with echo nor for work in the Gulf of Mexico with the Pacific. Tamsin. The Kempson is now committed through October 2020. We have also been awarded work for the bar within Oman for work commencing in February 2020, including a MOBA and demo provision. In addition, Chevron has exercise their first option for the shrub and the Gulf of Mexico, committing this arrived through February 2020. Michael will provide additional details on these commitments in his commentary. Each of these are important steps and building our backlog, demonstrate the quality of execution of our execution on key strategic objectives and continue to confirm the steady pace of market improvement. I want to highlight that on the strength of these commitments Q1 2020 marks the first time in 3 and one and half years where we will have 4 rigs contracted a major milestone on our road to positive free cash flow.

Before speaking further on the market let me provide a brief operational update. The Pacific Khamsin is undergoing client acceptance testing in the Gulf of