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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Executive
Michael Acuff

Palmas. She has now left the quayside and is preparing to start Phase 2 of the Petronas permanent abandonment program in the Chinguetti Field. This one-year program is expected to start in December and there are 2 additional option wells with Total following this Petronas program.

The Pacific Bora which is hot-stacked off Ivory Coast is currently preparing for her mobilization to Oman for a 1 firm well plus 1 well option contract with ENI at $190000 per day. The contract includes a $5 million paid mobilization of the rig which is expected to take 30 days with the well planned for an additional 30 days in Oman. After that the plan for the rig has not been determined by the customer. But as part of the contract we have a $5 million paid demobilization that allows us to return the rig to either West Africa or another strategic location. With respect to the smart-stacked rigs we continue to look for the right opportunities to employ the Meltem the Scirocco and the Mistral. The Meltem which is our highest spec unit and one of the latest-generation drillships in the world will give us a great opportunity to leverage the expected demand and higher pricing predicted in the second half of 2020 for a unit of its superior capability. As we look forward our analysis shows only 8 units of seventh-generation specification like the Pacific Meltem will have availability in 2020.

Considering the significant number of visible opportunities in process that we mentioned earlier coupled with the proven ability to reactivate our smart-stacked rigs we believe that she will be a very attractive alternative for customers who need the highest technical capabilities that only come with a top-20 rated drillship like the Meltem. For the Scirocco we see several longer-term opportunities for which she would be a great fit and we'll strategically bid her accordingly where it makes sense economically. In summary we are excited by the developments we're seeing the market and expect steady improvement through 2020. With 3 high-spec smart-stacked rigs available we are well-positioned to take advantage of these improving market conditions.

And with that I will now turn the call back over to Bernie.

Executive
Bernie G. Wolford

Thanks Michael. In summary the market is improving. We are executing well operationally. We are building backlog and we are very well-positioned to compete for current opportunities with the Pacific Meltem and Scirocco. To a person we are committed to delivering the value that Pacific Drilling uniquely represents.

I thank you for your attention today and will now hand the call back to the operator and open the call for any Q&A.