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

Nov 06, 2019 • 11:00 am ET

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

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Q & A
Operator
Operator

[Operator Instructions] Our first question comes from Fredrik Stene Clarksons Platou Securities. Please go ahead.

Analyst
Fredrik Stene

Hey guys, Congratulations with the new work. I'm really interested in hearing how the dynamics between you and your customers have kind of changed over the last year. And I guess kind of dayrates to some extent speak for themselves. But I'm also wondering if there is kind of different -- or are you in a position where you're getting properly rewarded for the risk you take? Are you allowed kind of more downtime in the contracts? Like I guess I'm asking is there other aspects to the contract and work and tenders you're working at now versus let's say 12 months ago that kind of shows additional strength and improvement in the market?

Executive
Michael Acuff

This is Michael. I'll try to answer that for you. You know I think clearly the dayrates show the transition we're seeing with the market tightening up. And I think we've seen that in our discussions with the customers and kind of their perception of where things are headed. As you mentioned we are starting to see things such as paid mobilizations downtime banks; things like that start to be considered and reinserted back into the contract. The liabilities I don't think changed significantly. But really on the commercial side that's where we're starting to see some movement back towards the contractor side.

Analyst
Fredrik Stene

Thank you. That's very helpful.

Operator
Operator

[Operator Instructions] Our last question in the queue comes from Patrick Fitzgerald with Baird. Please go ahead.

Analyst
Patrick Fitzgerald

Hi guys. Um, So I'm sorry if I missed this because I know you talked about it twice. Did you give a rate on the Bora contract and does the rate take into account the mobilization or is that paid separately?

Executive
Michael Acuff

Yes no. Let me recap. The base dayrate is $190000 per day does not include the $5 million mobilization payment as well as the $5 million demobilization payment. Those are separate.

Analyst
Patrick Fitzgerald

Okay thanks. And you guys kind of talked about this last quarter but I just wanted to get an answer. Does it cost $30000 a day to run MPD and integrated services contract? Is that what you said?

Executive
Bernie G. Wolford

No Patrick. Let me clarify that one for you. Our anticipated cost to actually run the MPD portion is on the order of $10000 to $12000 per day to actually run that. For the balance of the integrated services package if you're referring to Equinor I'll hand off to Michael on that one. But the actual cost of running the MPD package which is primarily additional technical crew on board it's roughly $10000 to $12000 per day. Michael with regard to the casing services we provide and cuttings and others?

Executive
Michael Acuff

Yes. No you know those have varying costs depending on the service. You can see that we've indicated in the past anywhere from $52000 to $67000 per day with MPD and integrated services. On our typical view of where the market is on MPD is anywhere from