Diamond Offshore Drilling Inc DO
Q3 2011 Earnings Call Transcript

Transcript Call Date 10/20/2011

Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Diamond Offshore Drilling Third Quarter 2011 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

Thank you. I would now like to turn the conference over to Mr. Darren Daugherty, Director of Investor Relations. Sir, you may begin your conference.

Darren Daugherty - Director, IR: Thank you Paula. Good morning everyone. Thank you for joining us. With me on the call today are Larry Dickerson, President and Chief Executive Officer; John Vecchio, Executive Vice President; Gary Krenek, Senior Vice President and Chief Financial Officer; Mo Plaisance, Vice President, Marketing; and Michael Acuff, Vice President, Marketing.

Before we begin our remarks, I should remind you that statements made during this conference call may constitute forward-looking statements that are inherently subject to a variety of risks and uncertainties. Actual results achieved by the Company may differ materially from projections made in any forward looking statements. Forward-looking statements may include, but are not limited to discussions about future revenues and earnings, capital expenditures, industry conditions and competition, dates the drilling rigs will enter service, as well as management's plans and objectives for the future.

A discussion of the risk factors that could impact these areas and the Company's overall business and financial performance can be found in the Company's 10-K and 10-Q filings with the SEC. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements. Forward-looking statements reflect circumstances at the time they're made, and the Company expressly disclaims any obligation to update or revise any forward-looking statements.

After we have discussed our results, we will have a question-and-answer session. We ask that you please limit it to one question and one follow-up, so that we can open the floor to as many people as possible.

Now, I'll turn the meeting over to Larry.

Lawrence R. Dickerson - President and CEO: Thank you, Darren, and welcome also to our third quarter conference call. I'd like to talk just a little bit about the contracts that we've signed in the quarter. They have been disclosed all along as we report our contract backlog every two weeks, but it's an appropriate time to look back upon and I think we summarize them in the press release that we added 14 new contracts with 18 rig years or $1.3 billion of revenue backlog.

I think those really – if we look at them by market, I think Mexico was significant for us. We signed four contracts in this period, running our period to just a few days into October. The Summit, which had already been down there achieved a 2.7 year extension and a nice rate. Then we bought two rigs out of Brazil, the Yorktown and the Scepter. Yorktown will be going down there as a semi for two and a half years rate in the 180s and then the Scepter, a newly constructed jackup, which had been working in Brazil. We had some permit issues down there and so we arranged to be released, it will come up here and work this into the market hopefully while they get everything straightened out down in Brazil.

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