8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (date of earliest event reported): March 11, 2020

PACIFIC DRILLING S.A.

(Exact name of registrant as specified in its charter)

Grand Duchy of Luxembourg	001-35345	Not Applicable
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)
8-10, Avenue de la Gare L-1610 Luxembourg		Not Applicable
(Address of principal executive offices)		(Zip Code)
Registrant’s telephone number, including area code: +352 27 85 81 35

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ 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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common shares, par value $0.01 per share	PACD	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02Results of Operations and Financial Condition.

On March 11, 2020, we issued a press release announcing our financial results for the fourth quarter and full year ended December 31, 2019. A copy of that release is furnished herewith as Exhibit 99.1.

Item 7.01Regulation FD Disclosure.

A conference call to discuss the Company’s results has been scheduled for 10:00 a.m. Central Daylight Time on Thursday, March 12, 2020.  The information for accessing the conference call is included in the press release.

On March 11, 2020, we posted to our website our updated Fleet Status Report dated March 11, 2020. A copy of that report is furnished herewith as Exhibit 99.2.

The information contained in Items 2.02 and 7.01 and Exhibits 99.1 and 99.2 to this report shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, unless the Company specifically incorporates the information by reference in a document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934.

By filing this report on Form 8-K and furnishing this information, the Company makes no admission as to the materiality of any information contained in this report. The Company undertakes no duty or obligation to publicly update or revise the information contained in this report, although the Company may do so from time to time as management believes is warranted.

Certain expectations and projections regarding the Company’s future performance referenced in the press release are forward-looking statements. These expectations and projections are based on currently available competitive, financial, and economic data and are subject to future events and uncertainties. In addition to the above cautionary statements, all forward-looking statements contained herein should be read in conjunction with the Company’s SEC filings, including the risk factors described therein, and other public announcements.

Item 9.01Financial Statements and Exhibits.

(d)Exhibits: 

Exhibit No.	Description
99.1	Press Release dated March 11, 2020, titled “Pacific Drilling Announces Fourth-Quarter and Full-Year 2019 Results.”
99.2	Fleet Status Report dated March 11, 2020.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Pacific Drilling S.A.
	(Registrant)
Dated: March 11, 2020	By	/s/ Lisa Manget Buchanan
		Lisa Manget Buchanan
		SVP, General Counsel & Secretary

EX-99.1

Exhibit 99.1

Pacific Drilling Announces Fourth-Quarter and Full-Year 2019 Results

§ Pacific Sharav awarded a new two well contract from Murphy in Mexico

§ Revenue efficiency of 99.3% for the fourth quarter and 97.4% for the full year 2019

LUXEMBOURG, March 11, 2020—Pacific Drilling S.A. (NYSE: PACD) (“Pacific Drilling” or the “Company”) today reported fourth quarter and full-year results for 2019.  

Pacific Drilling CEO Bernie Wolford commented, “In the fourth quarter, Pacific Khamsin returned to operations as we started a new contract with Equinor in the U.S. Gulf of Mexico. We also began mobilizing Pacific Bora to Oman where it is drilling that country’s first-ever deepwater well during its contract with Eni. We have continued this positive momentum in early 2020 as we capitalize on strengthening demand for our premium deepwater rigs. Our reputation for operational excellence and customer service resulted in a new relationship with Murphy Oil Corporation for Pacific Sharav in Mexico.”  

Mr. Wolford continued, “While we were surprised and disappointed with the Tribunal’s decision in the arbitration related to the construction of Pacific Zonda, this outcome has not impacted our operations. As we previously disclosed, our two subsidiaries involved in the dispute have filed an application with the High Court in London for permission to appeal the arbitration decision. While we hope for a positive resolution of the appeal process, a positive outcome from this arbitration was never relied upon in our corporate financial planning. As always, we remain focused on our core business and delivering operational excellence for our customers.”

Mr. Wolford concluded, “As we look ahead, we see significant uncertainty in the global markets from the demand reduction related to COVID-19 and recent changes to oil supply and pricing strategies. Through late 2019 and early 2020, we experienced substantial tightening of ultra-deepwater rig supply in the U.S. Gulf of Mexico and more limited supply of active rigs in other regions. At the same time, there are more active tenders in the market today than we have seen at any one time since 2014. We continue to work toward delivering positive cash flow from our operations as the market for our rigs improves and dayrates become more favorable. To this end, we were pleased to recently secure a $50 million revolving credit facility which allows us the financial flexibility to take advantage of new market opportunities.”

Fourth-Quarter 2019 Operational and Financial Commentary

Fourth-quarter 2019 contract drilling revenue was $33.1 million compared to $54.3 million in third-quarter 2019.  The decrease in revenue resulted primarily from the Pacific Sharav completing its legacy Chevron five-year contract in late August 2019 and rolling over to continue working for Chevron at a lower dayrate reflective of the current market. The decrease in revenue was partially offset by revenues earned from the commencement of contract operations for the Pacific Santa Ana and the Pacific Khamsin in December 2019.

Operating expenses for the fourth quarter of 2019 were $63.3 million compared to $60.3 million in the third quarter of 2019.

General and administrative expenses for the fourth quarter of 2019 were $8.2 million, as compared to $8.9 million for the third quarter of 2019.

Net loss for fourth-quarter 2019 was $308.1 million compared to $90.8 million in third-quarter 2019. Included in the net loss for fourth-quarter 2019 is a $217.6 million loss from unconsolidated subsidiaries predominately related to the elimination of the receivable from the balance sheet due to the Pacific Zonda arbitration decision in favor of Samsung Heavy Industries Co. Ltd (“SHI”).

Adjusted EBITDA(a) for fourth-quarter 2019 was $(36.8) million, compared to $(13.8) million in third-quarter 2019.

Capital expenditures for the fourth quarter of 2019 were $4.0 million compared to $9.7 million in the third quarter of 2019. The decrease in capital expenditures was primarily due to lower payments for the purchase of a managed pressure drilling system.

Footnotes

(a) EBITDA and Adjusted EBITDA are non-GAAP financial measures. For a definition of EBITDA and Adjusted EBITDA and a reconciliation to net loss, please refer to the schedule included in this release. Management uses this operational metric to track company results and believes that this measure provides additional information that highlights the impact of our operating efficiency as well as the operating and support costs incurred in achieving the revenue performance.

2020 Guidance

A schedule of Pacific Drilling’s 2020 guidance as of March 11, 2020 is available in the “Results” subsection of the “Investor Relations” section of our website, www.pacificdrilling.com.

Conference Call

Pacific Drilling will conduct a conference call at 10 a.m. US Central Time on Thursday, March 12, 2020 to discuss fourth-quarter and full-year 2019 results.

To access the conference call, listeners should contact the Conference Call Operator at +1 866-253-3270 within North America or +1 646-843-4609 outside of North America approximately 10 minutes prior to the scheduled start time and provide access code 2196217#. Participants are invited to use the following link to register for the call in advance: http://bit.ly/RegisterQ42019Call  A replay of the call will be available on the company’s website or by dialing +1 866-595-5357 and providing access code 2196217#.

About Pacific Drilling

With its best-in-class drillships and highly experienced team, Pacific Drilling is committed to exceeding our customers’ expectations by delivering the safest, most efficient and reliable deepwater drilling services in the industry. Pacific Drilling’s fleet of seven drillships represents one of the youngest and most technologically advanced fleets in the world. Pacific Drilling has principal offices in Luxembourg and Houston. For more information about Pacific Drilling, including our current Fleet Status, please visit our website at www.pacificdrilling.com.

Forward-Looking Statements

Certain statements and information contained in this press release constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are generally identifiable by their use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “our ability to,” “may,”  “plan,” “potential,” “predict,” “project,” “projected,” “should,” “will,” “would”, or other similar words which are not generally historical in nature. The forward-looking statements speak only as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

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Our forward-looking statements express our current expectations or forecasts of possible future results or events, including future financial and operational performance and cash balances; revenue efficiency levels; market outlook; forecasts of trends; future client contract opportunities; future contract dayrates; our business strategies and plans or objectives of management; estimated duration of client contracts; backlog; expected capital expenditures; projected costs and savings; expectations regarding our two subsidiaries’ application to appeal the arbitration award against them related to the drillship known as the Pacific Zonda in favor of SHI, the outcome of such subsidiaries’ ongoing bankruptcy proceedings and the potential impact of the Tribunal’s decision on our future operations, financial position, results of operations and liquidity.

Although we believe that the assumptions and expectations reflected in our forward-looking statements are reasonable and made in good faith, these statements are not guarantees, and actual future results may differ materially due to a variety of factors. These statements are subject to a number of risks and uncertainties and are based on a number of judgments and assumptions as of the date such statements are made about future events, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated, projected or implied by us in such statements due to a variety of factors, including if one or more of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect.

Important factors that could cause actual results to differ materially from our expectations include: evolving risks from the coronavirus outbreak and resulting significant disruption in international economies, and international financial and oil markets, including a substantial decline in the price of oil during 2020; the global oil and gas market and its impact on demand for our services; the offshore drilling market, including changes in capital expenditures by our clients; changes in worldwide oil and gas supply and demand; rig availability and supply and demand for high-specification drillships and other drilling rigs competing with our fleet; our ability to enter into and negotiate favorable terms for new drilling contracts or extensions; our ability to successfully negotiate and consummate definitive contracts and satisfy other customary conditions with respect to letters of intent and letters of award that we receive for our drillships; actual contract commencement dates; possible cancellation, renegotiation, termination or suspension of drilling contracts as a result of mechanical difficulties, performance, market changes or other reasons; costs related to stacking of rigs and costs to reactivate a stacked rig; downtime and other risks associated with offshore rig operations, including unscheduled repairs or maintenance, relocations, severe weather or hurricanes or accidents; our small fleet and reliance on a limited number of clients; the risks of litigation in foreign jurisdictions and delays caused by third parties in connection with such litigation; the outcome of our two subsidiaries’ bankruptcy proceedings and any actions that SHI or others may take in the bankruptcy or other proceedings against the Company and its subsidiaries; the risk that our common shares could be delisted from trading on the New York Stock Exchange; and the other risk factors described in our 2018 Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 12, 2019 and our Reports on Form 6-K.  These documents are available through our website at www.pacificdrilling.com or through the SEC’s website at www.sec.gov.

Investor Contact:	James Harris
	Pacific Drilling S.A.
	+713 334 6662
	Investor@pacificdrilling.com
Media Contact:	Amy L. Roddy
	Pacific Drilling S.A.
	+713 334 6662
	Media@pacificdrilling.com

3

PACIFIC DRILLING S.A. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(in thousands, except per share information) (unaudited)

	Successor						Predecessor		Successor				Predecessor
	Three		Three		Period from		Period from				Period from		Period from
	Months		Months		November 20,		October 1,				November 20,		January 1,		Year
	Ended		Ended		through		through		Year Ended		through		through		Ended
	December 31,		September 30,		December 31,		November 19,		December 31,		December 31,		November 19,		December 31,
	2019		2019		2018		2018		2019		2018		2018		2017
Revenues
Contract drilling	$	33,131	$	54,315	$	28,489	$	31,073	$	229,777	$	28,489	$	236,379	$	319,716
Costs and expenses
Operating expenses		63,269		60,324		19,744		25,050		228,143		19,744		189,606		244,089
General and administrative expenses		8,182		8,855		4,245		9,572		38,293		4,245		50,604		87,134
Depreciation and amortization expense		27,165		47,734		27,277		38,187		193,128		27,277		248,302		278,949
Loss from unconsolidated subsidiaries		217,640		488		806		—		220,152		806		—		—
		316,256		117,401		52,072		72,809		679,716		52,072		488,512		610,172
Operating loss		(283,125)		(63,086)		(23,583)		(41,736)		(449,939)		(23,583)		(252,133)		(290,456)
Other income (expense)
Interest expense		(24,794)		(24,459)		(10,904)		(29,046)		(97,698)		(10,904)		(106,632)		(178,983)
Write-off of deferred financing costs		—		—		—		—		—		—		—		(30,846)
Reorganization items		(70)		(24)		(1,300)		(1,743,556)		(1,975)		(1,300)		(1,799,664)		(6,474)
Interest income		1,145		1,510		1,008		428		6,292		1,008		3,148		2,717
Other income (expense)		(9)		(409)		526		350		(729)		526		(1,904)		(8,261)
Loss before income taxes		(306,853)		(86,468)		(34,253)		(1,813,560)		(544,049)		(34,253)		(2,157,185)		(512,303)
Income tax expense (benefit)		1,264		4,315		(6,769)		(3,261)		12,416		(6,769)		(2,308)		12,863
Net loss	$	(308,117)	$	(90,783)	$	(27,484)	$	(1,810,299)	$	(556,465)	$	(27,484)	$	(2,154,877)	$	(525,166)
Loss per common share, basic	$	(4.11)	$	(1.21)	$	(0.37)	$	(84.72)	$	(7.42)	$	(0.37)	$	(100.89)	$	(24.64)
Weighted-average shares outstanding, basic		75,007		75,005		75,010		21,368		75,011		75,010		21,359		21,315
Loss per common share, diluted	$	(4.11)	$	(1.21)	$	(0.37)	$	(84.72)	$	(7.42)	$	(0.37)	$	(100.89)	$	(24.64)
Weighted-average shares outstanding, diluted		75,007		75,005		75,010		21,368		75,011		75,010		21,359		21,315

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PACIFIC DRILLING S.A. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands) (unaudited)

	December 31,		September 30,		December 31,
	2019		2019		2018
Assets:
Cash and cash equivalents	$	278,620	$	355,906	$	367,577
Restricted cash		6,089		6,076		21,498
Accounts receivable, net		29,252		29,751		40,549
Other receivable		—		—		28,000
Materials and supplies		43,933		43,986		40,429
Deferred costs, current		16,961		1,397		482
Prepaid expenses and other current assets		15,732		10,288		8,667
Total current assets		390,587		447,404		507,202
Property and equipment, net		1,842,549		1,860,724		1,915,172
Receivable from unconsolidated subsidiaries		—		204,790		204,790
Intangible asset		—		—		85,053
Investment in unconsolidated subsidiaries		—		11,400		11,876
Other assets		23,423		22,252		24,120
Total assets	$	2,256,559	$	2,546,570	$	2,748,213
Liabilities and shareholders’ equity:
Accounts payable	$	24,223	$	12,009	$	14,941
Accrued expenses		27,924		20,292		25,744
Accrued interest		15,703		31,406		16,576
Deferred revenue, current		7,567		5,931		—
Total current liabilities		75,417		69,638		57,261
Long-term debt		1,073,734		1,064,643		1,039,335
Payable to unconsolidated subsidiaries		—		4,194		4,400
Other long-term liabilities		38,577		33,143		28,259
Total liabilities		1,187,728		1,171,618		1,129,255
Shareholders’ equity:
Common shares		751		751		750
Additional paid-in capital		1,652,681		1,650,685		1,645,692
Treasury shares, at cost		(652)		(652)		—
Accumulated deficit		(583,949)		(275,832)		(27,484)
Total shareholders’ equity		1,068,831		1,374,952		1,618,958
Total liabilities and shareholders’ equity	$	2,256,559	$	2,546,570	$	2,748,213

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PACIFIC DRILLING S. A. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands) (unaudited)

	Successor				Predecessor
			Period from		Period from
			November 20,		January 1,
	Year Ended		through		through		Year Ended
	December 31,		December 31,		November 19,		December 31,
	2019		2018		2018		2017
Cash flow from operating activities:
Net loss	$	(556,465)	$	(27,484)	$	(2,154,877)	$	(525,166)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense		193,128		27,277		248,302		278,949
Amortization of deferred revenue		(1,931)		—		(20,212)		(46,829)
Amortization of deferred costs		1,692		128		13,882		11,689
Amortization of deferred financing costs		—		—		1,639		24,889
Amortization of debt (premium) discount, net		(476)		(38)		—		940
Interest paid-in-kind		34,875		3,732		4,933		—
Write-off of deferred financing costs		—		—		—		30,846
Deferred income taxes		8,783		(6,507)		4,103		7,409
Share-based compensation expense		7,071		599		2,543		6,819
Other-than-temporary impairment of available-for-sale securities		—		—		—		6,829
Loss from unconsolidated subsidiaries		220,152		806		—		—
Reorganization items		—		—		1,746,764		5,315
Changes in operating assets and liabilities:
Accounts receivable		39,297		(11,670)		12,028		53,713
Materials and supplies		(3,504)		(122)		3,532		6,187
Deferred costs		(25,553)		(1,030)		(5,220)		(12,200)
Prepaid expenses and other assets		(7,393)		(10,953)		(27,742)		(8,257)
Accounts payable and accrued expenses		13,643		(16,490)		(10,096)		38,214
Deferred revenue		9,498		—		(481)		5,780
Net cash used in operating activities		(67,183)		(41,752)		(180,902)		(114,873)
Cash flow from investing activities:
Capital expenditures		(35,110)		(2,697)		(18,624)		(36,645)
Deconsolidation of Zonda Debtors		—		—		(4,910)		—
Purchase of available-for-sale securities		—		—		—		(6,000)
Net cash used in investing activities		(35,110)		(2,697)		(23,534)		(42,645)
Cash flow from financing activities:
Payments for shares issued under share-based compensation plan		(81)		(126)		(4)		(199)
Proceeds from debtor-in-possession financing		—		—		50,000		—
Payments for debtor-in-possession financing		—		—		(50,000)		—
Proceeds from long-term debt		—		—		1,000,000		—
Payments on long-term debt		—		—		(1,136,478)		(146,473)
Proceeds from equity offerings		—		—		500,000		—
Payments for financing costs		(1,340)		(13,525)		(29,355)		(4,530)
Purchases of treasury shares		(652)		—		—		—
Net cash provided by (used in) financing activities		(2,073)		(13,651)		334,163		(151,202)
Net increase (decrease) in cash and cash equivalents		(104,366)		(58,100)		129,727		(308,720)
Cash, cash equivalents and restricted cash, beginning of period		389,075		447,175		317,448		626,168
Cash, cash equivalents and restricted cash, end of period	$	284,709	$	389,075	$	447,175	$	317,448

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EBITDA and Adjusted EBITDA Reconciliation

EBITDA is defined as earnings before interest expense, taxes, depreciation and amortization. Beginning with the fourth quarter of 2019, management has redefined EBITDA for the current and comparative periods to exclude amortization of deferred revenue and deferred costs, which are included in contract drilling revenues and operating expenses respectively in the statements of operations. Management believes such measure of EBITDA is consistent with the conventional definition of EBITDA, allows for greater transparency of the Company’s core operating performance, and is in line with historical treatment by certain other major offshore drilling contractors and supply vessel owners. Adjusted EBITDA is defined as EBITDA before other-than-temporary impairment of available-for-sale securities, write-off of deferred financing costs, loss from unconsolidated subsidiaries and reorganization items. EBITDA and Adjusted EBITDA do not represent and should not be considered an alternative to net income, operating income, cash flow from operations or any other measure of financial performance presented in accordance with U.S. generally accepted accounting principles (“GAAP”) and our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies. EBITDA and Adjusted EBITDA are included herein because they are used by management to measure the Company’s operations. Management believes that EBITDA and Adjusted EBITDA present useful information to investors regarding the Company’s operating performance.

PACIFIC DRILLING S.A. AND SUBSIDIARIES

Supplementary Data—Reconciliation of Net Loss to Non-GAAP EBITDA and Adjusted EBITDA

(in thousands) (unaudited)

	Successor						Predecessor		Successor				Predecessor
	Three		Three		Period from		Period from				Period from		Period from
	Months		Months		November 20,		October 1,		Year		November 20,		January 1,		Year
	Ended		Ended		through		through		Ended		through		through		Ended
	December 31,		September 30,		December 31,		November 19,		December 31,		December 31,		November 19,		December 31,
	2019		2019		2018		2018		2019		2018		2018		2017
Net loss	$	(308,117)	$	(90,783)	$	(27,484)	$	(1,810,299)	$	(556,465)	$	(27,484)	$	(2,154,877)	$	(525,166)
Add:
Interest expense		24,794		24,459		10,904		29,046		97,698		10,904		106,632		178,983
Depreciation and amortization expense		27,165		47,734		27,277		38,187		193,128		27,277		248,302		278,949
Other amortization, net(a)		395		(74)		128		(1,245)		(239)		128		(6,330)		(35,140)
Income tax expense (benefit)		1,264		4,315		(6,769)		(3,261)		12,416		(6,769)		(2,308)		12,863
EBITDA	$	(254,499)	$	(14,349)	$	4,056	$	(1,747,572)	$	(253,462)	$	4,056	$	(1,808,581)	$	(89,511)
Add (subtract):
Other-than-temporary impairment of available-for-sale securities		—		—		—		—		—		—		—		6,829
Write-off of deferred financing costs		—		—		—		—		—		—		—		30,846
Loss from unconsolidated subsidiaries		217,640		488		806		—		220,152		806		—		—
Reorganization items		70		24		1,300		1,743,556		1,975		1,300		1,799,664		6,474
Adjusted EBITDA	$	(36,789)	$	(13,837)	$	6,162	$	(4,016)	$	(31,335)	$	6,162	$	(8,917)	$	(45,362)

(a) Other amortization, net includes amortization of deferred costs less amortization of deferred revenue.

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EX-99.2

Exhibit 99.2

	FLEET STATUS REPORT
	NYSE: PACD
	As of March 11, 2020
	Updates noted in bold and blue

			Contract (1)
					Contractual
			Start/	Estimated	Dayrate
Rig Name	Client	Location	Estimated Start	Expiration	(US$000's)	Comments
Pacific Bora	ENI	Oman	February 2020	March 2020	190	Contract for one firm well with an estimated duration of approximately 30 days and includes a $5 million mobilization fee and a $5 million demobilization fee. The contract provides for one option well.
Pacific Mistral	—	Las Palmas	—	—	—	Smart Stacked.
Pacific Scirocco	—	Las Palmas	—	—	—	Smart Stacked.
Pacific Santa Ana	Petronas	Mauritania	December 2019	November 2020	296	Dayrate includes an integrated services package provided as part of the plug and abandonment project.
	Total	Senegal/Mauritania	—	—	Not disclosed	Two one-well options (each well estimated at approximately 60 days of work) whose commencement would follow contract with Petronas.
Pacific Khamsin	Equinor	USGoM	December 2019	March 2020	227 (2)	First contracted well of three firm wells.
	Total	USGoM	March 2020	July 2020	252 (3)	Assigned to Total for Equinor’s second firm well.
	Equinor	USGoM	August 2020	October 2020	282 (4)	Third firm well.
						One priced option well remaining.
Pacific Sharav	Chevron	USGoM	December 2019	March 2020	185	Second contracted well of three firm wells.
	Chevron	USGoM	March 2020	May 2020	225	Third firm well.
	Murphy	Mexico	November 2020	February 2021	230	Contract for two firm wells and one option well.
Pacific Meltem	—	Mobilizing	—	—	—	Rig is mobilizing to U.S. Gulf of Mexico.

 (1) Contract start and expiration dates do not include option periods.

 (2)  Base dayrate of $175,000 plus  up to $52,000 for managed pressure drilling device and controls (“MPD”) (subject to client election for MPD services) and integrated services package provided as part of the contract.

 (3)  Base dayrate of $185,000 plus  up to $67,000 for MPD (subject to client election for MPD services) and integrated services package provided as part of the contract.

(4) Base dayrate of $215,000 plus up to $67,000 for MPD (subject to client election for MPD services) and integrated services package provided as part of the contract; if the well is spud after August 15th, 2020, the base dayrate would be $235,000.

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	FLEET STATUS REPORT NYSE: PACD
	As of March 11, 2020

Forward Looking Statements: Certain statements and information contained in this Fleet Status Report constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are generally identifiable by their use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “our ability to,” “may,”  “plan,” “potential,” “predict,” “project,” “projected,” “should,” “will,” “would”, or other similar words which are not generally historical in nature. The forward-looking statements speak only as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

Our forward-looking statements express our current expectations or forecasts of possible future results or events, including future financial and operational performance and cash balances; revenue efficiency levels; market outlook; forecasts of trends; future client contract opportunities; future contract dayrates; our business strategies and plans or objectives of management; estimated duration of client contracts; backlog; expected capital expenditures; projected costs and savings; expectations regarding our two subsidiaries’ application to appeal the arbitration award against them related to the drillship known as the Pacific Zonda in favor of Samsung Heavy Industries Co. Ltd. (“SHI”), the outcome of such subsidiaries’ ongoing bankruptcy proceedings and the potential impact of the Tribunal’s decision on our future operations, financial position, results of operations and liquidity.

Although we believe that the assumptions and expectations reflected in our forward-looking statements are reasonable and made in good faith, these statements are not guarantees, and actual future results may differ materially due to a variety of factors. These statements are subject to a number of risks and uncertainties and are based on a number of judgments and assumptions as of the date such statements are made about future events, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated, projected or implied by us in such statements due to a variety of factors, including if one or more of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect.

Important factors that could cause actual results to differ materially from our expectations include: evolving risks from the coronavirus outbreak and resulting significant disruption in international economies, and international financial and oil markets, including a substantial decline in the price of oil during 2020; the global oil and gas market and its impact on demand for our services; the offshore drilling market, including changes in capital expenditures by our clients; changes in worldwide oil and gas supply and demand; rig availability and supply and demand for high-specification drillships and other drilling rigs competing with our fleet; our ability to enter into and negotiate favorable terms for new drilling contracts or extensions; our ability to successfully negotiate and consummate definitive contracts and satisfy other customary conditions with respect to letters of intent and letters of award that we receive for our drillships; actual contract commencement dates; possible cancellation, renegotiation, termination or suspension of drilling contracts as a result of mechanical difficulties, performance, market changes or other reasons; costs related to stacking of rigs and costs to reactivate a stacked rig; downtime and other risks associated with offshore rig operations, including unscheduled repairs or maintenance, relocations, severe weather or hurricanes or accidents; our small fleet and reliance on a limited number of clients; the risks of litigation in foreign jurisdictions and delays caused by third parties in connection with such litigation; the outcome of our two subsidiaries’ bankruptcy proceedings and any actions that SHI or others may take in the bankruptcy or other proceedings against the Company and its subsidiaries; the risk that our common shares could be delisted from trading on the New York Stock Exchange; and the other risk factors described in our 2018 Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 12, 2019 and our Reports on Form 6-K.  These documents are available through our website at www.pacificdrilling.com or through the SEC’s website at www.sec.gov.

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