Last week, Transocean announced two contracts. Its ultra-deepwater semi-submersible GSF Development Driller I secured an 11-well contract with Chevron (CVX) in Australia. The contract will begin in the first half of 2019 and last 955 days. IT will add $158 million to Transocean’s backlog. It also has four one-well options.
Transocean’s mid-water semisubmersible Transocean 712 secured a 13-well contract with ConocoPhillips (COP) in the United Kingdom’s North Sea. The contract will begin in March 2019 and last 580 days. It will add ~$75 million to the company’s backlog. The contract also includes a one-well option.
Tranoscean’s backlog at the end of the first quarter was $12.5 billion. Transocean has one of the highest backlogs among its peers. Its backlog-to-TTM (trailing-12-month) revenue ratio is 322%. Transocean’s contracts stretch beyond 2025.
At the end of the first quarter, Noble Corporation’s (NE) backlog-to-TTM revenue was 287%. Ensco (ESV) has one of the lowest backlog-to-TTM revenue ratios of 168%. Diamond Offshore Drilling (DO) has a backlog-to-TTM revenue ratio of 186%.