Q1 results beat expectations, with operational efficiency reaching 98% and average daily revenue hitting a ten-year high.

Contract revenue $1.08B, adjusted EBITDA $440M (margin >40%), and early repayment of $358M in debt.

Added $1.6B to backlog, secured a three-year contract with Vår Energi in Norway, three extensions with Petrobras in Brazil, and five wells for Deepwater Asgard in the Eastern Mediterranean. The acquisition of Valaris received a second request from the DOJ, but the transaction is still expected to close in 2026.

Full-year revenue guidance lowered to $3.9B, with capital expenditures increased by $20M. Debt is expected to decline to $4.9B by year-end, with leverage of approximately 3.3x.

Management is bullish on deepwater utilization approaching 100%, with energy security driving long-term demand; however, some project delays and inflationary cost pressures are beginning to emerge.