0001737706-26-000016
SEC filingRevenue and operating income improved on higher utilization, but net loss persisted due to elevated depreciation and tax expense.
Net cash provided by operating activities was -$22 million in the first quarter of 2026, compared to -$27 million in the same period last year. The improvement was driven by higher operating income, partially offset by working capital changes. The company continues to manage its cash flow carefully, with capital expenditures for rig upgrades and reactivation projects and timing of payments for operating costs and other obligations being key factors.
The company's contract backlog provides visibility into future revenue. As of March 31, 2026, the backlog was supported by strong demand for offshore drilling services, driven by growing oil and gas demand and the lagging energy transition, which is prompting operators to pivot back towards deepwater exploration. The company's drilling units being on contract, economic utilization achieved, and average contract dayrates are key drivers of future performance.