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
Executive
Michael Acuff

$30000 to $50000 per day from a dayrate standpoint. And then depending on what integrated services are involved you would make up the balance. Obviously I don't want to break down exactly what they are but to really kind of let you try to back into things we see the market for MPD in the $30000 to $50000 day range and we would find it surprising if people can provide that service with the risk associated much less than that because then it becomes uneconomic.

Analyst
Patrick Fitzgerald

Great. That's super helpful. Yes can you provide any help -- thanks for providing what -- over $80 million of first quarter 2020 revenue? Would your opex be about the same as it has been or as it's expected to be in the fourth quarter? Or would that be a little bit higher? How should we think about that?

Executive
James W. Harris

So you can look at these daily opex numbers that we gave you. And based on having 4 rigs working come up with a good estimate. We will be providing guidance on the first quarter as we finish -- further guidance. We just wanted to give a highlight on where we were going on revenue. But I think with what we've given you on daily opex you can get what you need.

Analyst
Patrick Fitzgerald

Okay and what portion did you say of your claim is guaranteed by Kexim Bank?

Executive
Bernie G. Wolford

So the portion guaranteed by Kexim Bank are the payments we made against the delivery of the vessel as well as interest associated with that. Those payments total $181 million. And if you add interest it is well in excess of the $205 million receivable we have on our balance sheet.

Analyst
Patrick Fitzgerald

Okay and that's guaranteed by Kexim if you get a favorable arbitration ruling or just regardless once it's done?

Executive
Bernie G. Wolford

No it's subject to the arbitration ruling.

Analyst
Patrick Fitzgerald

Okay and then any color on why you'd think it will be done by the end of the year or they will rule by the end of the year?

Executive
Bernie G. Wolford

No. We are not in the business of forecasting. But we would simply be very surprised if it wasn't. Patrick I'm going to have to ask you to limit it to one more follow-up question as we have several other callers on the line.

Analyst
Patrick Fitzgerald

Oh sorry about that. Yes I was just -- why are pursuing the revolver given your view on kind of the arbitration and also the fact that you think you're going to have 5 rigs working in 2012?

Executive
James W. Harris

So Patrick I guess first it's just good hygiene for a company to have a revolver in place and it was always expected with the way our bond indentures have been put in for the revolver to be there. While we wouldn't intend to draw on the revolver certainly with the liquidity that we have it just makes sense for a company the size of Pacific to have that for daily operating cost.

Analyst
Patrick Fitzgerald

Gotcha. Thank you.

Executive
Michael Acuff

Thank you.

Operator
Operator

[Operator Instructions] We'll