Diamond Offshore Announces First Quarter 2014 Results

            Diamond Offshore Announces First Quarter 2014 Results

PR Newswire

HOUSTON, April 24, 2014

HOUSTON, April 24, 2014 /PRNewswire/ --Diamond Offshore Drilling, Inc. (NYSE:
DO) today reported net income for the first quarter of 2014 of $146 million,
or $1.05 per share, compared with net income of $176 million, or $1.27 per
share, in the same period a year earlier. Results for the quarter benefited
from a $17 million, or $0.12 per share, credit to tax expense related to a
settlement of certain disputes with Egyptian tax authorities. Revenues in the
first quarter of 2014 were $709 million, compared with revenues of $730
million in the prior-year quarter.

Diamond Offshore Drilling, Inc. Logo.

"I am pleased to begin my tenure at Diamond Offshore with very solid first
quarter results," said Marc Edwards, President and Chief Executive Officer.
"Diamond Offshore has added new capacity and upgraded its fleet while
maintaining the highest credit rating and strongest balance sheet amongst its
peers. This places us in a strong position to navigate through any downturn,
and take advantage of strategic opportunities that may materialize. We remain
focused on delivering superior financial performance and providing
sector-leading shareholder returns."

At March 31, 2014, Diamond Offshore had 137,170,137 shares of common stock
outstanding. During the three months ended March 31, 2014, the Company
purchased 1,865,311 shares of its common stock at an aggregate cost of $86.4
million. From April 1, 2014 to April 23, 2014 the Company repurchased an
additional 30,250 shares of its common stock at an aggregate cost of $1.4
million.

CONFERENCE CALL

A conference call to discuss Diamond Offshore's earnings results has been
scheduled for 9:00 a.m. CDT today. A live webcast of the call will be
available online on the Company's website, www.diamondoffshore.com. Those
interested in participating in the question and answer session should dial
800-247-9979 or 973-321-1100, for international callers. The conference ID
number is 25367618. An online replay will also be available on
www.diamondoffshore.com following the call.

ABOUT DIAMOND OFFSHORE

Diamond Offshore is a leader in offshore drilling, providing contract drilling
services to the energy industry around the globe with a total fleet of 45
offshore drilling rigs, including five rigs under construction. Diamond
Offshore's fleet consists of 33 semisubmersibles, two of which are under
construction, five dynamically positioned drillships, three of which are under
construction, and seven jack-ups. Additional information about the Company and
access to the Company's SEC filings are available at www.diamondoffshore.com.
Diamond Offshore is owned 51% by Loews Corporation (NYSE: L).

FORWARD-LOOKING STATEMENTS

Statements contained in this press release that are not historical facts are
"forward-looking statements" within the meaning of the federal securities
laws. Such statements include, but are not limited to, statements concerning
strategic opportunities and future performance, shareholder returns, financial
performance and market conditions. Forward-looking statements are inherently
uncertain and subject to a variety of assumptions, risks and uncertainties
that could cause actual results to differ materially from those anticipated or
expected by management of the Company. A discussion of the important risk
factors and other considerations that could materially impact these matters as
well as the Company's overall business and financial performance can be found
in the Company's reports filed with the Securities and Exchange Commission and
readers of this press release are urged to review those reports carefully when
considering these forward-looking statements. Copies of these reports are
available through the Company's website at www.diamondoffshore.com. These
factors include, among others, general economic and business conditions,
contract cancellations, customer bankruptcy, operating risks, casualty losses,
industry fleet capacity, changes in foreign and domestic oil and gas
exploration and production activity, competition, changes in foreign,
political, social and economic conditions, regulatory initiatives and
compliance with governmental regulations, customer preferences and various
other matters, many of which are beyond the Company's control. Given these
risk factors, investors and analysts should not place undue reliance on
forward-looking statements. Each forward-looking statement speaks only as of
the date of this press release. The Company expressly disclaims any
obligation or undertaking to release publicly any updates or revisions to any
forward-looking statement to reflect any change in the Company's expectations
with regard thereto or any change in events, conditions or circumstances on
which any forward-looking statement is based.

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
                                                         Three Months Ended
                                                         March 31,
                                                         2014       2013
Revenues:
 Contract drilling                             $ 685,308  $ 699,973
 Revenues related to reimbursable expenses       24,116     29,768
 Total revenues                        709,424    729,741
Operating expenses:
 Contract drilling, excluding depreciation       369,790    375,094
 Reimbursable expenses                           23,666     29,289
 Depreciation                                    107,011    96,821
 General and administrative                      22,827     16,815
 Gain on disposition of assets                   (147)      (2,004)
 Total operating expenses              523,147    516,015
Operating income                                           186,277    213,726
Other income (expense):
 Interest income                                 408        617
 Interest expense                                (18,155)   (8,069)
 Foreign currency transaction gain (loss)        (1,178)    159
 Other, net                            327        (254)
Income before income tax expense                           167,679    206,179
Income tax expense                                         (21,869)   (30,190)
Net income                                               $ 145,810  $ 175,989
Income per share                                         $ 1.05     $ 1.27
Weighted average shares outstanding:
 Shares of common stock                          138,469    139,032
 Dilutive potential shares of common stock       4          49
 Total weighted average shares         138,473    139,081
outstanding



DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
                                            Three Months Ended
                                            Mar 31,     Dec 31,    Mar 31,
                                            2014        2013       2013
REVENUES
Floaters:
 Ultra-Deepwater                        $ 205,794   $ 236,842  $ 191,357
 Deepwater                               146,559     121,222    164,420
 Mid-Water                               285,979     306,485    305,221
 Total Floaters                        638,332     664,549    660,998
 Jack-ups                                  46,976      43,423     38,975
Total Contract Drilling Revenue           $ 685,308   $ 707,972  $ 699,973
Revenues Related to Reimbursable Expenses $ 24,116    $ 18,525   $ 29,768
CONTRACT DRILLING EXPENSE
Floaters:
 Ultra-Deepwater                        $ 123,530   $ 135,153  $ 135,776
 Deepwater                               71,949      76,649     56,436
 Mid-Water                               134,046     156,075    143,647
 Total Floaters                        329,525     367,877    335,859
 Jack-ups                                  28,029      29,349     29,667
 Other                                     12,236      11,681     9,568
Total Contract Drilling Expense           $ 369,790   $ 408,907  $ 375,094
Reimbursable Expenses                     $ 23,666    $ 17,969   $ 29,289
OPERATING INCOME
Floaters:
 Ultra-Deepwater                        $ 82,264    $ 101,689  $ 55,581
 Deepwater                               74,610      44,573     107,984
 Mid-Water                               151,933     150,410    161,574
 Total Floaters                        308,807     296,672    325,139
 Jack-ups                                  18,947      14,074     9,308
 Other                                     (12,236)    (11,681)   (9,568)
 Reimbursable expenses, net                450         556        479
 Depreciation                              (107,011)   (96,985)   (96,821)
 General and administrative expense        (22,827)    (16,298)   (16,815)
 Bad debt recovery                         --          50         --
 Gain on disposition of assets             147         1,281      2,004
 Total Operating Income          $ 186,277   $ 187,669  $ 213,726



DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(In thousands)
                                                      March 31,   December 31,
                                                      2014        2013
ASSETS
Current assets:
  Cash and cash equivalents                         $ 420,140   $ 347,011
  Marketable securities                               1,175,135   1,750,053
  Accounts receivable, net of allowance for bad       416,177     469,355
  debts
  Prepaid expenses and other current assets          146,510     143,997
  Assets held for sale                                7,694       7,694
     Total current assets                            2,165,656   2,718,110
Drilling and other property and equipment, net of
 accumulated depreciation                         5,954,496   5,467,227
Other assets                                          207,835     206,097
     Total assets                                  $ 8,327,987 $ 8,391,434
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt                   $ 249,973   $ 249,954
Other current liabilities                             504,487     495,628
Long-term debt                                        2,244,262   2,244,189
Deferred tax liability                                531,988     525,541
Other liabilities                                     219,186     238,864
Stockholders' equity                                  4,578,091   4,637,258
     Total liabilities and stockholders' equity     $ 8,327,987 $ 8,391,434



DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
(Dayrate in thousands)
                   First Quarter       Fourth Quarter (a)  First Quarter
                   2014                2013                2013
                   Dayrate Utilization Dayrate Utilization Dayrate Utilization
Ultra-Deepwater    $387    66%         $350    91%         $360    73%
Floaters
Deepwater Floaters $418    64%         $402    65%         $389    94%
Mid-Water Floaters $276    64%         $277    66%         $262    64%
Jack-Ups           $93     79%         $87     76%         $85     71%

(a) Dayrate and utilization calculations include revenue earning days for
which revenue was not recognized pursuant to GAAP. By rig category, these are
82 days in Q4 for ultra-deepwater floaters and 42 days in Q4 for mid-water
floaters.

Contact:
Darren Daugherty
Director, Investor Relations
(281) 492-5370

Logo- http://photos.prnewswire.com/prnh/20130725/NY53104LOGO-b

SOURCE Diamond Offshore Drilling, Inc.

Website: http://www.diamondoffshore.com
 
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