Three months ended         Three months ended         June 30,    March 31,   sequential   June 30,    year-over-year   2024   2024   change   2023   change (In millions, except per share amounts, percentages and backlog)                             Contract drilling revenues $ 861     $ 763     $ 98     $ 729     $ 132   Adjusted contract drilling revenues $ 861     $ 767     $ 94     $ 748     $ 113   Revenue efficiency (1) 96.9 %   92.9 %   4.0 %   97.2 %   (0.3 )% Operating and maintenance expense $ 534     $ 523     $ 11     $ 484     $ 50   Net income (loss) attributable to controlling interest $ (123 )   $ 98     $ (221 )   $ (165 )   $ 42   Diluted earnings (loss) per share $ (0.15 )   $ 0.11     $ (0.26 )   $ (0.22 )   $ 0.07                                 Adjusted EBITDA $ 284     $ 199     $ 85     $ 237     $ 47   Adjusted EBITDA margin 33.0 %   26.0 %   7.0 %   31.7 %   1.3 % Adjusted net loss $ (123 )   $ (22 )   $ (101 )   $ (110 )   $ (13 ) Adjusted diluted loss per share $ (0.15 )   $ (0.03 )   $ (0.12 )   $ (0.15 )   $ —                                                               Backlog as of the July 2024 Fleet Status Report $ 8.64 billion                                                     STEINHAUSEN, Switzerland, July 31, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE:RIG) today reported a net loss attributable to controlling interest of $123 million, $0.15 per diluted share, for the three months ended June 30, 2024. Second quarter results included certain favorable and unfavorable items, that were offsetting (see attached schedule). Contract drilling revenues for the three months ended June 30, 2024, increased sequentially by $98 million to $861 million, primarily due to increased rig utilization and higher revenue efficiency across the fleet. This was partially offset by lower reimbursable revenue and lower revenues resulting from the sale of Paul B. Loyd, Jr. Operating and maintenance expense was $534 million, compared with $523 million in the prior quarter. The sequential increase was primarily due to rigs returning to work after undergoing contract preparation in the first quarter and increased costs associated with the early retirement of certain personnel. This was partially offset by lower reimbursed expenses and lower operating costs resulting from the sale of Paul B. Loyd, Jr. General and administrative expense was $59 million, up from $52 million in the first quarter. The increase was primarily due to costs associated with the early retirement of certain personnel and professional fees. After consideration of the favorable adjustment of $69 million and $10 million in the second and first quarter, respectively, for the fair value of the bifurcated exchange feature related to the 4.625% exchangeable bonds, interest expense net of capitalized amounts was $143 million, compared to $127 million in the prior quarter. Interest income was $14 million, compared to $15 million in the previous quarter. The Effective Tax Rate(2) was 474.5%, up from 206.0% in the prior quarter. The increase was primarily due to increased income before tax. The Effective Tax Rate excluding discrete items was 416.3% compared to 76.9% in the previous quarter. Cash provided by operating activities was $133 million during the second quarter of 2024, representing an increase of $219 million compared to $86 million cash used in operating activities in the prior quarter. The sequential increase was primarily due to timing of interest payments, decreased payments for payroll-related costs and increased cash collected from customers. Second quarter 2024 capital expenditures of $84 million were primarily associated with the newbuild ultra-deepwater drillship Deepwater Aquila. This compares with $83 million in the prior quarter. "The entire Transocean team executed well in the second quarter, delivering strong uptime performance for our customers, which drove revenue efficiency to 97% and produced 33% Adjusted EBITDA margins," said Chief Executive Officer, Jeremy Thigpen. "In addition, the team recently secured a number of meaningful contracts, which are illustrative of current industry dynamics and reinforce our view that we are in an increasingly tightening market. Of these contracts, we are especially excited to continue 20K operations with Beacon in the U.S. Gulf of Mexico." Thigpen concluded, "As we continue to secure work for our fleet, our focus remains on optimizing our portfolio of assets to maximize EBITDA and generate free cash flows, which we can use to de-lever the balance sheet." Non-GAAP Financial Measures We present our operating results in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP"). We believe certain financial measures, such as Adjusted Contract Drilling Revenues, EBITDA, Adjusted EBITDA and Adjusted Net Income, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under U.S. GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with U.S. GAAP. All non-GAAP measure reconciliations to the most comparative U.S. GAAP measures are displayed in quantitative schedules on the company's website at: www.deepwater.com. About Transocean Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services, and operates the highest specification floating offshore drilling fleet in the world. Transocean owns or has partial ownership interests in and operates a fleet of 36 mobile offshore drilling units, consisting of 28 ultra-deepwater floaters and eight harsh environment floaters. For more information about Transocean, please visit: www.deepwater.com. Conference Call Information Transocean will conduct a teleconference starting at 11 a.m. EDT, 5 p.m. CEST, on Thursday, August 1, 2024, to discuss the results. To participate, dial +1 785-424-1222 and refer to conference code 119567 approximately 15 minutes prior to the scheduled start time. The teleconference will be simulcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the teleconference will be available at: www.deepwater.com, by selecting Investors, Financial Reports. A replay of the conference call will be available after 2 p.m. EDT, 8 p.m. CEST, on Thursday, August 1, 2024. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-1119, passcode 119567. The replay will also be available on the company's website. Forward-Looking Statements The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as "possible," "intend," "will," "if," "expect," or other similar expressions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, timing of the company's newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the success of our business following prior acquisitions, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including those and other risks discussed in the company's most recent Annual Report on Form 10-K for the year ended December 31, 2023, and in the company's other filings with the SEC, which are available free of charge on the SEC's website at: www.sec.gov. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company's website at: www.deepwater.com. This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act ("FinSA") or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean. Notes  (1) Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations. See the accompanying schedule entitled "Revenue Efficiency." (2) Effective Tax Rate is defined as income tax expense or benefit divided by income or loss before income taxes. See the accompanying schedule entitled "Supplemental Effective Tax Rate Analysis." Analyst Contact: Alison Johnson +1 713-232-7214 Media Contact: Pam Easton +1 713-232-7647                         TRANSOCEAN LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per share data)(Unaudited)                           Three months ended   Six months ended   June 30,    June 30,    2024     2023     2024     2023                         Contract drilling revenues $ 861     $ 729     $ 1,624     $ 1,378                           Costs and expenses                       Operating and maintenance   534       484       1,057       893   Depreciation and amortization   184       186       369       368   General and administrative   59       48       111       93       777       718       1,537       1,354                           Loss on impairment of assets   (143 )     (53 )     (143 )     (53 ) Loss on disposal of assets, net   —       —       (6 )     (170 ) Operating loss   (59 )     (42 )     (62 )     (199 )                         Other income (expense), net                       Interest income   14       11       29       30   Interest expense, net of amounts capitalized   (74 )     (168 )     (191 )     (417 ) Gain (loss) on retirement of debt   140       —       140       (32 ) Other, net   12       18       24       23       92       (139 )     2       (396 ) Income (loss) before income tax expense (benefit)   33       (181 )     (60 )     (595 ) Income tax expense (benefit)   156       (16 )     (35 )     35                           Net loss   (123 )     (165 )     (25 )     (630 ) Net income attributable to noncontrolling interest   —       —       —       —   Net loss attributable to controlling interest $ (123 )   $ (165 )   $ (25 )   $ (630 )                         Loss per share, basic and diluted $ (0.15 )   $ (0.22 )   $ (0.03 )   $ (0.85 ) Weighted-average shares, basic and diluted   824       761       821       745                                   TRANSOCEAN LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In millions, except share data)(Unaudited)               June 30,    December 31,   2024     2023 Assets           Cash and cash equivalents $ 475     $ 762   Accounts receivable, net of allowance of $2 at June 30, 2024 and December 31, 2023   607       512   Materials and supplies, net of allowance of $197 and $198 at June 30, 2024 and December 31, 2023, respectively   440       426   Restricted cash and cash equivalents   400       233   Other current assets   213       193   Total current assets   2,135       2,126               Property and equipment   24,066       23,875   Less accumulated depreciation   (6,983 )     (6,934 ) Property and equipment, net   17,083       16,941   Contract intangible assets   —       4   Deferred tax assets, net   30       44   Other assets   1,077       1,139   Total assets $ 20,325     $ 20,254               Liabilities and equity           Accounts payable $ 296     $ 323   Accrued income taxes   22       23   Debt due within one year   526       370   Other current liabilities   729       681   Total current liabilities   1,573       1,397               Long-term debt   6,775       7,043   Deferred tax liabilities, net   470       540   Other long-term liabilities   798       858   Total long-term liabilities   8,043       8,441               Commitments and contingencies                       Shares, $0.10 par value, 1,057,879,029 authorized, 141,262,093 conditionally authorized, 940,828,901 issued and 875,456,314 outstanding at June 30, 2024, and CHF 0.10 par value, 1,021,294,549 authorized, 142,362,093 conditionally authorized, 843,715,858 issued and 809,030,846 outstanding at December 31, 2023   87       81   Additional paid-in capital   14,859       14,544   Accumulated deficit   (4,058 )     (4,033 ) Accumulated other comprehensive loss   (180 )     (177 ) Total controlling interest shareholders' equity   10,708       10,415   Noncontrolling interest   1       1   Total equity   10,709       10,416   Total liabilities and equity $ 20,325     $ 20,254                   TRANSOCEAN LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)