Transocean (RIG) investor relations material

Key financial metrics and outlook

• Backlog stands at $6.7 billion as of August 2026, with potential to reach $7.7 billion pending contract approvals.

• Average dayrate is $461,000, with contract coverage at 94% for 2026 and 81% for 2027.

• Expected leverage is below 2.0x by the end of 2028.

• High-quality pro forma backlog of $12.3 billion post-Valaris acquisition, supporting stable long-term cash flow.

• Leverage ratio expected to fall below 1.5x within 24 months after the Valaris deal.

Market environment and industry trends

• Global demand for oil and gas is rising, with deepwater projects offering strong economics.

• Rig utilization and floater contract awards are forecasted to increase through 2027.

• Offshore E&P spending is expected to grow, driven by the need to offset natural declines in existing resources.

• Major oil companies and NOCs are increasing their share of floater rig contracts.

• Deepwater assets remain competitive in the global supply mix.

Strategic initiatives and value creation

• Acquisition of Valaris accelerates value creation, broadens global reach, and deepens the customer base.

• Over $200 million in cost synergies identified from the Valaris deal.

• Focus on optimizing differentiated assets and maintaining a strong capital structure.

• Emphasis on generating industry-leading free cash flow and maximizing cash flow to equity.

• Continued cost discipline and operational efficiency to deliver superior margins.