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Here are 1-3 brief analogies for Borr Drilling (BORR):

• They're like a **Maersk**, but for offshore oil drilling rigs, owning and operating a fleet of specialized equipment and crews to drill wells for oil and gas companies worldwide.
• Think of them as an **Atlas Air**, but for offshore drilling rigs, managing a fleet of specialized equipment and crews to provide drilling services to energy clients.
• They're like a specialized **Halliburton**, focusing exclusively on owning and operating offshore jack-up drilling rigs for oil and gas exploration and production companies.

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• Offshore Drilling Operations: Conducting new oil and gas well drilling for exploration and production.
• Well Workover Operations: Performing maintenance and intervention operations on existing oil and gas wells.

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Borr Drilling (BORR) primarily sells its services to other companies, specifically oil and gas exploration and production companies.

While Borr Drilling's official public filings do not explicitly name individual major customers that represent a significant percentage of its revenue, recent contract announcements indicate that its customers include:

• PTTEP (PTT Exploration and Production Public Company Limited) (PTT.BK) - A state-owned national oil company based in Thailand.
• Vaalco Energy, Inc. (EGY) - An independent oil and gas company, publicly traded on the NYSE.
• Panoro Energy ASA (PEN.OL) - An independent oil and gas company, publicly traded on the Oslo Stock Exchange.

These companies exemplify the types of customers Borr Drilling serves, which broadly fall into categories such as integrated oil companies, state-owned national oil companies, and independent oil and gas companies.

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Bruno Morand, Chief Executive Officer

Bruno Morand assumed the role of Chief Executive Officer in September 2025, having previously served as Borr Drilling's Chief Commercial Officer since 2023. He brings over 20 years of experience in the offshore drilling industry, with a background in management positions across various international rig contractors where he focused on operational management, project management, marketing, and customer relationship management. Morand initially joined Borr Drilling in 2017.

Magnus Vaaler, Chief Financial Officer

Magnus Vaaler was appointed Chief Financial Officer of Borr Drilling in December 2020. Prior to this, he held the position of VP Investor Relations and Treasury within the company, which he joined in 2018. Vaaler has extensive financial and offshore industry experience, including seven years as Treasurer and Vice President of Finance at Frontline Ltd. and three years as Vice President of Finance at Offshore Merchant Partners.

Patrick Schorn, Executive Chairman

Patrick Schorn transitioned to the role of Executive Chairman in September 2025. Before this, he served as Borr Drilling's Chief Executive Officer from September 2020. Schorn has been a Director of the company since January 2018. His career prior to Borr Drilling includes being the Executive Vice President of Wells for Schlumberger, where he held various global management positions such as President of Operations, President Production Group, President of Well Services, President of Completions, and GeoMarket Manager Russia. He began his career with Schlumberger in 1991 as a stimulation engineer.

Harvey Snowling, Chief Operating Officer

Harvey Snowling became Chief Operating Officer of Borr Drilling in March 2021. He previously served as the Senior Vice President Operations for Borr Drilling from July 2017 to March 2021. Snowling has extensive experience in the drilling industry, having held various roles at Seadrill Careers prior to joining Borr Drilling, including Vice President of Operations for Africa, Middle East, and Asia (2013-2017), Director of Operations for Africa and Middle East (2011-2013), and Area Manager for Africa (2010-2011).

Jason Crowe, Senior Vice President of Commercial

Jason Crowe was appointed Senior Vice President of Commercial at Borr Drilling in September 2025. In this role, he succeeded Bruno Morand. He previously held various management positions within Borr Drilling.

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The key risks to Borr Drilling Limited's business operations are primarily its high leverage, exposure to geopolitical instability and the inherent volatility of the oil and gas market, and the operational hazards associated with offshore drilling.

1. High Leverage and Financial Instability: Borr Drilling faces significant financial risk due to its substantial debt. As of June 30, 2025, the company had $2,112.3 million in total principal debt outstanding. This heavy reliance on debt financing is cited as a key financial challenge, with interest payments often not well covered by earnings, potentially pressuring future cash flows. The company's debt-to-equity ratio of 1.76 indicates considerable debt reliance, and an Altman Z-Score of 0.65 places it in the distress zone, signaling a potential bankruptcy risk within two years. Financial expenses significantly weigh on net profit, even when gross profit margins from operations are strong.

2. Geopolitical Instability and Oil & Gas Market Volatility: Borr Drilling's revenue is heavily dependent on the demand for offshore drilling services, which is influenced by fluctuating oil and gas prices, global economic conditions, and exploration activity. The company is exposed to geopolitical risks, including political instability, trade restrictions, and changes in government policies. Recent examples include temporarily scaled-back operations and rig shutdowns in the Arabian Gulf due to regional hostilities, and sanctions-induced contract terminations and payment issues in Mexico, which have impacted operational stability and profitability.

3. Inherent Operational Hazards of Offshore Drilling: Operating in the offshore drilling sector presents numerous inherent safety and environmental risks. These include the dangers of fires and explosions due to volatile materials and high-pressure conditions, the risk of blowouts, and the challenges posed by harsh weather conditions like hurricanes and rough seas. Such incidents can lead to equipment damage, operational delays, worker injuries or fatalities, environmental damage, and significant financial and reputational consequences. Additionally, the company operates in a highly regulated industry, requiring strict compliance with environmental, safety, and operational standards, with failures potentially resulting in fines or reputational harm.

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Borr Drilling Limited operates in the offshore drilling industry, primarily utilizing jack-up rigs for operations in shallow-water areas. The addressable market for their main products and services, focused on jack-up rigs for shallow-water drilling, can be understood within the global jack-up rigs market and the broader global offshore drilling market.

Global Jack-up Rigs Market

The global jack-up rigs market size was estimated at approximately USD 3.03 billion in 2024 and is projected to grow to about USD 4.71 billion by 2033, exhibiting a compound annual growth rate (CAGR) of 5% during the forecast period (2026–2033). Other estimates indicate the market was valued at USD 3.65 billion in 2025, with an anticipated increase to USD 4.9 billion by 2030 at a CAGR of 6.2%. Additionally, the global jack-up rigs market size was valued at USD 4.0 billion in 2022 and is projected to reach USD 6.8 billion by 2031, with a CAGR of 6.1% during the forecast period (2023-2031). Jack-up rigs are widely used for drilling in shallow waters and accounted for a significant share of the global offshore drilling market in 2024.

Global Offshore Drilling Market (including shallow-water segment)

The broader global offshore drilling market, which encompasses shallow water drilling where Borr Drilling operates, presents a larger addressable market. This market was valued at approximately USD 34.5 billion in 2024 and is expected to reach USD 61.6 billion by 2033, growing at a CAGR of 6.34% during 2025-2033. Other analyses estimate the global offshore drilling market size at USD 43.78 billion in 2025, projected to reach USD 87.50 billion by 2034 with a CAGR of 7.87%. The shallow-water segment of the offshore drilling market is a significant contributor and is observed to be among the fastest-growing segments. In 2025, shallow-water projects captured 51.11% of the total offshore drilling market share.

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For Borr Drilling (BORR), several key drivers are expected to contribute to future revenue growth over the next 2-3 years:

1. Increased Day Rates: Borr Drilling has consistently secured new contracts at higher, or "accretive," day rates. The company anticipated an increase in Adjusted EBITDA throughout 2024 as rigs transitioned to new contracts with improved terms and higher day rates. Notably, in Q2 2024, the company secured a long-term contract for the Arabia I rig in Brazil at a higher day rate and longer duration, and achieved its first-ever contract exceeding $200,000 per day. This trend continued into Q4 2024, with operating revenues growing primarily due to rigs like "Natt" and "Prospector 1" securing higher day rates. Increased day rates were also cited as a driver for revenue growth in Q2 2025.

2. High Fleet Utilization and Activation of Rigs: The company consistently reports high technical and economic utilization rates for its operational fleet. Having completed its newbuild program in 2024, Borr Drilling now operates a fleet of 24 premium rigs. By Q2 2024, all 22 delivered rigs were contracted and committed, with newbuilds like 'The Vale' having assigned work scopes upon delivery. In Q1 2025, a significant ramp-up in activity was observed, with three suspended rigs in Mexico resuming operations and other rigs commencing new contracts. By Q2 2025, 22 out of 24 rigs were active, contributing to increased revenue through more operating days.

3. Strong Backlog and New Contract Commitments: Borr Drilling has been successful in building its revenue backlog through new contract awards. In 2023, the company added $728 million to its revenue backlog at an implied average day rate of approximately $161,000 per day, with the total backlog reaching $1.75 billion by year-end. In 2024, Borr Drilling secured $795 million in backlog at an average rate of $177,000 per day. The company reported $318 million in revenue backlog year-to-date in Q1 2024. Furthermore, year-to-date through Q3 2025, the company secured new contract commitments representing approximately $625 million of potential contract revenue. Borr Drilling is actively working to increase its fleet coverage, targeting 80-85% in 2025 and 35% in 2026.

4. Recovering Jack-Up Market Fundamentals: The company and analysts anticipate a gradual recovery in the jack-up market. Borr Drilling believes the market bottom is behind it, with demand increasing. This includes multi-year tenders for an estimated 13 rigs in the Middle East. Analyst reports corroborate this, highlighting increased demand for long-term contracts in the Middle East and a strong tendering pipeline for jack-up rigs. Increased activity and advancements in private investment projects in Mexico are also expected to positively impact future rig demand and contract extensions.

5. Strategic Rig Acquisitions: In December 2025, Borr Drilling completed the acquisition of five premium jack-up rigs. This opportunistic acquisition, made at an attractive price during an improving demand cycle, is expected to be immediately accretive to Adjusted EBITDA and enhance the company's scale and operational flexibility, contributing to long-term value.

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Share Repurchases

• In November 2024, Borr Drilling announced an authorized commitment to repurchase $20 million worth of shares within year-end 2024, as part of a previously established $100 million share repurchase authorization.
• The company successfully completed the first $10 million tranche of the $20 million repurchase program by November 20, 2024.
• A second $10 million tranche of share repurchases, also part of the $20 million authorization, commenced in December 2024 and was slated for completion by December 31, 2024, with the aim of reducing the share capital.

Share Issuance

• In December 2025, Borr Drilling concluded a public offering of 21 million new common shares at a price of $4.00 per share, generating gross proceeds of $84 million. These funds were intended to partially finance the acquisition of five premium jack-up rigs and for general corporate purposes.
• In July 2025, the company announced plans for a public offering to raise $100 million through the issuance of approximately 50 million shares. The initial settlement for 30 million shares at $2.05 per share yielded $61.5 million, with a second settlement for the remaining shares anticipated around August 2025.

Inbound Investments

• During the December 2025 equity offering, key directors Tor Olav Trøim and Thiago Mordehachvili each indicated their intent to subscribe for $10 million worth of shares through their affiliated companies.

Outbound Investments

• Borr Drilling entered into an agreement in 2025 for the acquisition of five premium jack-up rigs from Noble Corporation for a total purchase price of $360 million. This acquisition was subsequently finalized in January 2026.

Capital Expenditures

• Capital expenditures for 2025 were projected to be less than $50 million, representing a substantial decrease following the conclusion of the newbuild program.
• The company's newbuild program reached completion in November 2024 with the delivery of its final rig, the Var.
• In the fourth quarter of 2025, capital expenditures included a $36 million deposit made for the five-rig acquisition and an additional $15.9 million for jack-up additions, primarily allocated to long-term maintenance, drilling equipment, and special periodic surveys.