England and Wales | 001-36465 | 98-1146017 | ||
(State or other jurisdiction of incorporation or organization) | (Commission file number) | (I.R.S. employer identification number) |
3151 Briarpark Drive, Suite 700 Houston, Texas | 77042 | |
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits |
Exhibit 99.1 | Paragon Offshore plc Press Release dated August 12, 2015. |
Paragon Offshore plc, a public limited company incorporated under the laws of England and Wales | |||||
Date: | August 12, 2015 | ||||
By: | /s/ Steven A. Manz | ||||
Name: | Steven A. Manz | ||||
Title: | Senior Vice President and Chief Financial Officer |
Exhibit No. | Description |
99.1 | Paragon Offshore plc Press Release dated August 12, 2015, announcing its consolidated and combined financial results for the three and six months ended June 30, 2015. |
Paragon Offshore plc 3151 Briarpark Drive Suite 700 Houston, Texas 77042 | |
For Investors | Lee M. Ahlstrom | |
& Media: | Senior Vice President – Investor Relations, Strategy and Planning | |
+1.832.783.4040 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Operating revenues | ||||||||||||||||
Contract drilling services | $ | 363,089 | $ | 462,334 | $ | 762,908 | $ | 954,297 | ||||||||
Labor contract drilling services | 7,206 | 8,146 | 14,371 | 16,357 | ||||||||||||
Reimbursables and other | 22,949 | 8,477 | 46,613 | 22,893 | ||||||||||||
393,244 | 478,957 | 823,892 | 993,547 | |||||||||||||
Operating costs and expenses | ||||||||||||||||
Contract drilling services | 196,969 | 222,317 | 422,074 | 448,780 | ||||||||||||
Labor contract drilling services | 5,681 | 6,223 | 11,294 | 12,436 | ||||||||||||
Reimbursables | 18,678 | 5,224 | 38,656 | 15,850 | ||||||||||||
Depreciation and amortization | 94,673 | 112,536 | 184,748 | 223,120 | ||||||||||||
General and administrative | 13,737 | 12,683 | 29,101 | 25,928 | ||||||||||||
Loss on impairment | 1,701 | — | 1,701 | — | ||||||||||||
(Gain) loss on disposal of assets, net | 4,078 | — | (12,717 | ) | — | |||||||||||
(Gain) on repurchase of long-term debt | — | — | (4,345 | ) | — | |||||||||||
335,517 | 358,983 | 670,512 | 726,114 | |||||||||||||
Operating income | 57,727 | 119,974 | 153,380 | 267,433 | ||||||||||||
Other income (expense) | ||||||||||||||||
Interest expense, net of amount capitalized | (29,042 | ) | (2,972 | ) | (59,237 | ) | (6,272 | ) | ||||||||
Interest income and other, net | 169 | 338 | 2,434 | 525 | ||||||||||||
Income before income taxes | 28,854 | 117,340 | 96,577 | 261,686 | ||||||||||||
Income tax benefit (provision) | 18,477 | (22,292 | ) | 11,912 | (42,075 | ) | ||||||||||
Net income | $ | 47,331 | $ | 95,048 | $ | 108,489 | $ | 219,611 | ||||||||
Net income attributable to non-controlling interest | — | — | (31 | ) | — | |||||||||||
Net income attributable to Paragon Offshore | $ | 47,331 | $ | 95,048 | $ | 108,458 | $ | 219,611 | ||||||||
Earnings per share | ||||||||||||||||
Basic and diluted | $ | 0.51 | $ | 1.12 | $ | 1.19 | $ | 2.59 |
June 30, | December 31, | |||||||
2015 | 2014 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 112,359 | $ | 56,772 | ||||
Restricted cash | — | 12,502 | ||||||
Accounts receivable, net of allowance for doubtful accounts | 356,132 | 539,376 | ||||||
Prepaid and other current assets | 99,531 | 104,644 | ||||||
Total current assets | 568,022 | 713,294 | ||||||
Property and equipment, net | 2,318,460 | 2,410,360 | ||||||
Other assets | 138,365 | 129,735 | ||||||
Total assets | $ | 3,024,847 | $ | 3,253,389 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt | $ | 6,500 | $ | 272,166 | ||||
Accounts payable | 131,370 | 160,874 | ||||||
Accrued payroll and related costs | 50,868 | 81,416 | ||||||
Other current liabilities | 160,545 | 207,838 | ||||||
Total current liabilities | 349,283 | 722,294 | ||||||
Long-term debt | 1,984,421 | 1,888,439 | ||||||
Deferred income taxes | 39,034 | 58,497 | ||||||
Other liabilities | 53,945 | 89,910 | ||||||
Total liabilities | 2,426,683 | 2,759,140 | ||||||
Total shareholders’ equity | 598,164 | 491,608 | ||||||
Non-controlling interest | — | 2,641 | ||||||
Total equity | 598,164 | 494,249 | ||||||
Total liabilities and equity | $ | 3,024,847 | $ | 3,253,389 |
Six Months Ended | ||||||||
June 30, | ||||||||
2015 | 2014 | |||||||
Cash flows from operating activities | ||||||||
Net income | $ | 108,489 | $ | 219,611 | ||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Depreciation and amortization | 184,748 | 223,120 | ||||||
Loss on impairment | 1,701 | — | ||||||
Gain on disposal of assets, net | (12,717 | ) | — | |||||
Gain on repurchase of long-term debt | (4,345 | ) | — | |||||
Other changes in operating activities | 29,144 | (37,043 | ) | |||||
Net cash provided by operating activities | 307,020 | 405,688 | ||||||
Cash flows from investing activities | ||||||||
Capital expenditures | (113,071 | ) | (110,687 | ) | ||||
Proceeds from sale of assets | 29,316 | 6,570 | ||||||
Acquisition of Prospector Offshore Drilling S.A. non-controlling interest | (2,185 | ) | — | |||||
Change in restricted cash | 12,502 | — | ||||||
Change in accrued capital expenditures | (12,533 | ) | 13,594 | |||||
Net cash used in investing activities | (85,971 | ) | (90,523 | ) | ||||
Cash flows from financing activities | ||||||||
Net change in borrowings on Predecessor bank credit facilities | — | 707,472 | ||||||
Net change in borrowings outstanding on Revolving Credit Facility | 211,000 | — | ||||||
Repayment of Term Loan Facility | (3,250 | ) | — | |||||
Repayment of Prospector Senior Credit Facility | (265,666 | ) | — | |||||
Repayment of Prospector Bonds | (101,000 | ) | — | |||||
Purchase of Senior Notes | (6,546 | ) | — | |||||
Debt issuance costs | — | (386 | ) | |||||
Net transfers to parent | — | (1,026,144 | ) | |||||
Net cash used in financing activities | (165,462 | ) | (319,058 | ) | ||||
Net change in cash and cash equivalents | 55,587 | (3,893 | ) | |||||
Cash and cash equivalents, beginning of period | 56,772 | 36,581 | ||||||
Cash and cash equivalents, end of period | $ | 112,359 | $ | 32,688 |
As Reported | Rigs Retained or Sold by Noble | As Adjusted | ||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
June 30, | March 31, | June 30, | March 31, | June 30, | March 31, | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | 2015 | 2015 | 2014 | 2015 | ||||||||||||||||||||||||
Rig fleet operating statistics (1)(2) | ||||||||||||||||||||||||||||||||
Jackups: | ||||||||||||||||||||||||||||||||
Average Rig Utilization | 64 | % | 76 | % | 71 | % | n/a | 50 | % | n/a | 64 | % | 78 | % | 71 | % | ||||||||||||||||
Marketed Utilization (3) | 64 | % | 78 | % | 71 | % | n/a | 50 | % | n/a | 64 | % | 80 | % | 71 | % | ||||||||||||||||
Operating Days | 1,989 | 2,492 | 2,174 | n/a | 91 | n/a | 1,989 | 2,401 | 2,174 | |||||||||||||||||||||||
Average Dayrate | $ | 123,556 | $ | 113,125 | $ | 126,646 | n/a | $ | 98,625 | n/a | $ | 123,556 | $ | 113,675 | $ | 126,646 | ||||||||||||||||
Floaters: | ||||||||||||||||||||||||||||||||
Average Rig Utilization | 83 | % | 78 | % | 83 | % | n/a | 100 | % | n/a | 83 | % | 75 | % | 83 | % | ||||||||||||||||
Marketed Utilization (3) | 100 | % | 100 | % | 100 | % | n/a | 100 | % | n/a | 100 | % | 100 | % | 100 | % | ||||||||||||||||
Operating Days | 455 | 637 | 450 | n/a | 91 | n/a | 455 | 546 | 450 | |||||||||||||||||||||||
Average Dayrate | $ | 257,764 | $ | 283,221 | $ | 276,560 | n/a | $ | 355,174 | n/a | $ | 257,764 | $ | 271,229 | $ | 276,560 | ||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||
Average Rig Utilization | 67 | % | 76 | % | 73 | % | n/a | 67 | % | n/a | 67 | % | 75 | % | 73 | % | ||||||||||||||||
Marketed Utilization (3) | 69 | % | 82 | % | 74 | % | n/a | 67 | % | n/a | 69 | % | 83 | % | 74 | % | ||||||||||||||||
Operating Days | 2,444 | 3,129 | 2,624 | n/a | 182 | n/a | 2,444 | 2,947 | 2,624 | |||||||||||||||||||||||
Average Dayrate | $ | 148,537 | $ | 147,752 | $ | 152,353 | n/a | $ | 226,899 | n/a | $ | 148,537 | $ | 142,864 | $ | 152,353 |
(1) | We define average rig utilization for a specific period as the total number of days our rigs are operating under contract, divided by the product of the total number of our rigs, including cold-stacked rigs, and the number of calendar days in such period. Information reflects our policy of reporting on the basis of the number of available rigs in our fleet. |
(2) | Amounts exclude the Paragon FPSO1. |
(3) | Marketed utilization excludes the impact of Paragon cold-stacked rigs for the current quarter. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Allocation of net income | ||||||||||||||||
Basic and diluted | ||||||||||||||||
Net income attributable to Paragon Offshore | $ | 47,331 | $ | 95,048 | $ | 108,458 | $ | 219,611 | ||||||||
Earnings allocated to unvested share-based payment awards (1) | (3,532 | ) | — | (6,611 | ) | — | ||||||||||
Net income to ordinary shareholders - basic and diluted | $ | 43,799 | $ | 95,048 | $ | 101,847 | $ | 219,611 | ||||||||
Weighted average number of shares outstanding - basic and diluted | 85,836 | 84,753 | 85,549 | 84,753 | ||||||||||||
Weighted average unvested share-based payment awards (1) | 6,922 | — | 5,553 | — | ||||||||||||
Earnings per share | ||||||||||||||||
Basic and diluted | $ | 0.51 | $ | 1.12 | $ | 1.19 | $ | 2.59 |
(1) | Our basis of presentation related to weighted average unvested shares outstanding for all periods prior to the Spin-Off does not include our unvested restricted stock units that were granted to our employees in conjunction with Paragon’s 2014 Employee Omnibus Incentive Plan. As a result, we have no earnings allocated to unvested share-based payment awards in our earnings per share calculation for periods prior to the Spin-Off. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net income attributable to Paragon Offshore | $ | 47,331 | $ | 95,048 | $ | 108,458 | $ | 219,611 | ||||||||
Adjustments: | ||||||||||||||||
(Gain) on repurchase of long-term debt | — | — | (4,345 | ) | — | |||||||||||
(Gain) loss on disposal of assets, net | 4,078 | — | (12,717 | ) | — | |||||||||||
Loss on impairment | 1,701 | — | 1,701 | |||||||||||||
Adjusted net income | $ | 53,110 | $ | 95,048 | $ | 93,097 | $ | 219,611 | ||||||||
Allocation of adjusted net income | ||||||||||||||||
Basic and diluted | ||||||||||||||||
Adjusted net income | $ | 53,110 | $ | 95,048 | $ | 93,097 | $ | 219,611 | ||||||||
Earnings allocated to unvested share-based payment awards (1) | (3,963 | ) | — | (5,675 | ) | — | ||||||||||
Adjusted net income to ordinary shareholders - basic and diluted | $ | 49,147 | $ | 95,048 | $ | 87,422 | $ | 219,611 | ||||||||
Weighted average number of shares outstanding - basic and diluted | 85,836 | 84,753 | 85,549 | 84,753 | ||||||||||||
Weighted average unvested share-based payment awards (1) | 6,922 | — | 5,553 | — | ||||||||||||
Adjusted earnings per share | ||||||||||||||||
Basic and diluted | $ | 0.57 | $ | 1.12 | $ | 1.02 | $ | 2.59 |
(1) | Our basis of presentation related to weighted average unvested shares outstanding for all periods prior to the Spin-Off does not include our unvested restricted stock units that were granted to our employees in conjunction with Paragon’s 2014 Employee Omnibus Incentive Plan. As a result, we have no earnings allocated to unvested share-based payment awards in our earnings per share calculation for periods prior to the Spin-Off. |
As Reported | Rigs Retained or Sold by Noble | As Adjusted | ||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||
June 30, | March 31, | June 30, | March 31, | June 30, | March 31, | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | 2015 | 2015 | 2014 | 2015 | ||||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||||||
Contract drilling services | $ | 363,089 | $ | 462,334 | $ | 399,819 | n/a | $ | 41,302 | n/a | $ | 363,089 | $ | 421,032 | $ | 399,819 | ||||||||||||||||
Labor contract drilling services | 7,206 | 8,146 | 7,165 | n/a | 1,079 | n/a | 7,206 | 7,067 | 7,165 | |||||||||||||||||||||||
Reimbursables and other | 22,949 | 8,477 | 23,664 | n/a | — | n/a | 22,949 | 8,477 | 23,664 | |||||||||||||||||||||||
393,244 | 478,957 | 430,648 | n/a | 42,381 | n/a | 393,244 | 436,576 | 430,648 | ||||||||||||||||||||||||
Operating costs and expenses | ||||||||||||||||||||||||||||||||
Contract drilling services | 196,969 | 222,317 | 225,105 | n/a | 16,966 | n/a | 196,969 | 205,351 | 225,105 | |||||||||||||||||||||||
Labor contract drilling services | 5,681 | 6,223 | 5,613 | n/a | — | n/a | 5,681 | 6,223 | 5,613 | |||||||||||||||||||||||
Reimbursables | 18,678 | 5,224 | 19,978 | n/a | 496 | n/a | 18,678 | 4,728 | 19,978 | |||||||||||||||||||||||
Depreciation and amortization | 94,673 | 112,536 | 90,075 | n/a | 11,256 | n/a | 94,673 | 101,280 | 90,075 | |||||||||||||||||||||||
General and administrative | 13,737 | 12,683 | 15,364 | n/a | 1,144 | n/a | 13,737 | 11,539 | 15,364 | |||||||||||||||||||||||
Loss on impairment | 1,701 | — | — | n/a | — | n/a | 1,701 | — | — | |||||||||||||||||||||||
(Gain) loss on disposal of assets, net | 4,078 | — | (16,795 | ) | n/a | — | n/a | 4,078 | — | (16,795 | ) | |||||||||||||||||||||
(Gain) on repurchase of long-term debt | — | — | (4,345 | ) | n/a | — | n/a | — | — | (4,345 | ) | |||||||||||||||||||||
335,517 | 358,983 | 334,995 | n/a | 29,862 | n/a | 335,517 | 329,121 | 334,995 | ||||||||||||||||||||||||
Operating income | 57,727 | 119,974 | 95,653 | n/a | 12,519 | n/a | 57,727 | 107,455 | 95,653 | |||||||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||||||||
Interest expense, net of amount capitalized | (29,042 | ) | (2,972 | ) | (30,195 | ) | n/a | — | n/a | (29,042 | ) | (2,972 | ) | (30,195 | ) | |||||||||||||||||
Interest income and other, net | 169 | 338 | 2,265 | n/a | — | n/a | 169 | 338 | 2,265 | |||||||||||||||||||||||
Income before income taxes | 28,854 | 117,340 | 67,723 | n/a | 12,519 | n/a | 28,854 | 104,821 | 67,723 | |||||||||||||||||||||||
Income tax benefit (provision) | 18,477 | (22,292 | ) | (6,565 | ) | n/a | (1,336 | ) | n/a | 18,477 | (20,956 | ) | (6,565 | ) | ||||||||||||||||||
Net income | $ | 47,331 | $ | 95,048 | $ | 61,158 | n/a | $ | 11,183 | n/a | $ | 47,331 | $ | 83,865 | $ | 61,158 | ||||||||||||||||
Net income attributable to non-controlling interests | — | — | (31 | ) | n/a | — | n/a | — | — | (31 | ) | |||||||||||||||||||||
Net income attributable to Paragon Offshore | $ | 47,331 | $ | 95,048 | $ | 61,127 | n/a | $ | 11,183 | n/a | $ | 47,331 | $ | 83,865 | $ | 61,127 | ||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Depreciation and amortization | 94,673 | 101,280 | 90,075 | |||||||||||||||||||||||||||||
Loss on impairment | 1,701 | — | — | |||||||||||||||||||||||||||||
(Gain) loss on disposal of assets, net | 4,078 | — | (16,795 | ) | ||||||||||||||||||||||||||||
(Gain) on repurchase of long-term debt | — | — | (4,345 | ) | ||||||||||||||||||||||||||||
Interest expense, net of amount capitalized | 29,042 | 2,972 | 30,195 | |||||||||||||||||||||||||||||
Income tax (benefit) provision | (18,477 | ) | 20,956 | 6,565 | ||||||||||||||||||||||||||||
EBITDA | $ | 158,348 | $ | 209,073 | $ | 166,822 |
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