Here are 1-3 brief analogies to describe Transocean (RIG):

• Maersk for offshore oil drilling. (Maersk operates a massive global fleet of ships to transport goods; Transocean operates a massive global fleet of rigs to extract oil.)
• Ryder for ultra-deepwater oil rigs. (Ryder leases and manages fleets of specialized trucks; Transocean leases and manages fleets of specialized offshore drilling rigs.)
• United Rentals for highly specialized, ultra-deepwater oil drilling equipment. (United Rentals provides a wide range of industrial equipment for rent; Transocean essentially provides highly specialized, large-scale drilling equipment with operators for rent/contract.)

• Ultra-deepwater and Deepwater Drilling Services: Transocean provides highly specialized mobile offshore drilling units and crews to explore and develop oil and gas wells in water depths ranging from 1,000 to over 12,000 feet.
• Harsh Environment Drilling Services: The company offers robust, purpose-built drilling rigs and experienced personnel capable of operating safely and efficiently in extreme weather conditions and challenging offshore environments, such as the North Sea.

Transocean (RIG) Major Customers

• Exxon Mobil Corporation (Symbol: XOM)
• Shell plc (Symbol: SHEL)
• Chevron Corporation (Symbol: CVX)
• BP p.l.c. (Symbol: BP)
• TotalEnergies SE (Symbol: TTE)
• Petróleo Brasileiro S.A. (Petrobras) (Symbol: PBR)
• Equinor ASA (Symbol: EQNR)

• NOV Inc. (NOV)
• Schlumberger (SLB)
• ABB Ltd (ABB)
• Kongsberg Gruppen (KOG.OL)

Keelan Adamson, President and Chief Executive Officer

Keelan Adamson became President and Chief Executive Officer of Transocean in April 2025. He joined Transocean in 1995 and has held various rig management positions in the United Kingdom, Asia, and Africa. Adamson's career with Transocean also includes leadership roles in sales and marketing, and serving as the Managing Director for the company's business in North America, Canada, and Trinidad. Prior to his current role, he served as President and Chief Operating Officer (February 2022 - April 2025), Executive Vice President and Chief Operating Officer (2018-2022), Senior Vice President, Operations (2017-2018), Senior Vice President, Operations Integrity and HSE (2015-2017), and Vice President, Human Resources (2012-2015). He earned a bachelor's degree in Aeronautical Engineering from The Queens University of Belfast and completed the Advanced Management Program at Harvard Business School.

R. Thaddeus Vayda, Executive Vice President and Chief Financial Officer

R. Thaddeus Vayda has served as Executive Vice President and Chief Financial Officer of Transocean since 2024. Before this, he was the Senior Vice President of Corporate Finance and Treasurer at Transocean. Mr. Vayda also held the position of Vice President of Investor Relations and Communications from March 2012 to June 2014.

Jeremy D. Thigpen, Chairman of the Board

Jeremy D. Thigpen became Chairman of the Board of Transocean in 2025. He previously served as President and Chief Executive Officer of Transocean from April 2015 until Keelan Adamson's appointment in April 2025. Prior to joining Transocean, Mr. Thigpen spent 18 years at National Oilwell Varco Inc., where he held several significant leadership roles. These included Senior Vice President and Chief Financial Officer (2012-2015), President of the Downhole and Pumping Solutions business (2007-2012), and President of the Downhole Tools group (2003-2007). He also served in various management and business development capacities, including Director of Business Development and Special Assistant to the Chairman. Mr. Thigpen earned a Bachelor of Arts degree in Economics and Managerial Studies from Rice University and completed the Program for Management Development at Harvard Business School.

Brady Long, Executive Vice President and Chief Legal Officer

Brady Long is the Executive Vice President and Chief Legal Officer of Transocean. He joined Transocean in 2015. Before his tenure at Transocean, Mr. Long was the Vice President, General Counsel & Secretary at Ensco plc for four years, a role he assumed following the merger of Pride International with Ensco. He also served as Pride International's Vice President, General Counsel & Secretary for two years, having initially joined Pride in 2005 as Assistant General Counsel. Additionally, he served as Pride's Chief Compliance Officer from 2006 to 2009. Before entering the offshore drilling industry, Mr. Long practiced corporate and securities law at Bracewell LLP. He earned a Bachelor of Arts degree from Brigham Young University, a Juris Doctorate from The University of Texas School of Law, and an Executive LLM in Tax from New York University.

Jason Pack, Senior Vice President, Chief Accounting Officer

Jason Pack has served as Senior Vice President and Chief Accounting Officer of Transocean since 2024. Prior to this, he was the Senior Vice President and Chief Audit Executive for Transocean from 2018 to 2024. Mr. Pack also served as Vice President of Internal Audit at National Oilwell Varco, where he held various other roles including Vice President of Finance Drilling and Intervention, Vice President of Finance Africa, and Global Controller Downhole. He was also Senior Controller at NQL Drilling Tools Inc.

The key risks to Transocean (RIG) include:

1. High Debt Load and Financial Obligations: Transocean carries a substantial long-term debt, projected to be around $5.9 billion by the end of 2025, which results in significant interest expenses that consume a large portion of operating cash flow. This high leverage limits the company's financial flexibility, making it vulnerable to economic downturns and impacting its ability to invest in growth or weather market slumps.
2. Cyclicality of the Offshore Drilling Industry and Oil Price Volatility: The offshore drilling sector is highly dependent on fluctuating crude oil prices and the capital expenditure trends of oil and gas companies. Subdued capital expenditure, lack of clear direction from operators, and wavering oil prices can lead to reduced demand for Transocean's drilling services, lower rig utilization rates, and downward pressure on day rates, directly affecting revenue and profitability.
3. Operational Risks and Contractual Challenges: Transocean faces risks related to contract negotiations, including operators being hesitant to commit to long-term agreements or potentially seeking to repudiate or renegotiate existing contracts, which could significantly impact revenue stability. Additionally, the company faces high operating and maintenance costs for its advanced rigs, leading to margin pressure. Rig downtime due to equipment breakdowns, severe weather, labor issues, or other unforeseen problems can also reduce day rates or suspend operations, affecting profitability.

The global energy transition away from fossil fuels and towards renewable energy sources poses a clear emerging threat. Transocean's primary clients, major international oil and gas companies, are increasingly committing to decarbonization strategies, setting net-zero targets, divesting from hydrocarbon assets, and redirecting capital expenditures towards renewable energy projects. This fundamental shift in the energy landscape is impacting the long-term demand for offshore drilling services, potentially leading to reduced exploration activity, fewer new deepwater drilling contracts, and accelerated decline in demand for existing assets over the coming decades.

Transocean (RIG) is expected to experience future revenue growth over the next 2-3 years driven by several key factors in the offshore drilling market:

1. Increased Rig Utilization: Improved utilization of Transocean's offshore drilling rigs is a significant driver of revenue growth. The company reported increased contract drilling revenues due to improved rig utilization and revenue efficiency. Furthermore, Transocean's active fleet is highly contracted, with over 97% booked for 2025, demonstrating strong demand.
2. Higher Day Rates: The offshore drilling market is experiencing upward pressure on day rates, particularly for high-specification ultra-deepwater and harsh environment rigs. As the market is expected to tighten by late 2026 or early 2027, global active ultra-deepwater fleet utilization is projected to approach 90%, which should further result in upward pressure on day rates.
3. New Contract Wins and Strong Backlog: Transocean continues to secure new contracts and maintain a substantial backlog, providing clear visibility for future revenue. The company's backlog stood at $7.2 billion as of July 2025 and increased to $9.3 billion in October 2024. Rig contracting activity is increasing, with new contracts anticipated in regions such as the U.S. Gulf, Brazil, and Africa.
4. Growth in Deepwater and Ultra-Deepwater Drilling Activity: The market is projected to see increased capital expenditure and activity in deepwater and ultra-deepwater drilling. Wood Mackenzie's analysis shows deepwater and ultra-deepwater development CapEx rising from $64 billion in 2025 to $79 billion in 2027, a 23% increase. Transocean's fleet, composed of 26 ultra-deepwater floaters and eight harsh environment floaters, is well-positioned to benefit from this trend. The overall offshore drilling market is also expected to grow, with projections reaching approximately $80.64 billion by 2033 from $36.60 billion in 2023.

Share Repurchases

• Transocean has a long-standing Share Repurchase Program approved in 2009 for up to CHF 3.5 billion, which was renewed in 2013.
• As of Q3 2024, management indicated that share repurchases would be considered once the company reaches a net debt-to-EBITDA ratio of 3.5 turns.

Share Issuance

• In September 2025, Transocean announced a public offering to sell 100,000,000 shares, with an option for underwriters to purchase up to an additional 15,000,000 shares.
• This offering was later upsized to 125 million shares at $3.05 each, generating approximately $381.25 million, primarily intended for debt repayment.
• The company raised approximately $195 million through share issuances in July and August 2025 and secured an additional $421 million from another equity issuance in September 2025.

Inbound Investments

• Perestroika, a ten percent owner of Transocean, acquired 4,000,000 registered shares for $12.2 million on September 26, 2025.

Capital Expenditures

• Capital expenditures for Q2 2024 amounted to $84 million.
• Expected capital expenditures for the full year 2024 were $250 million, with approximately $115 million allocated to the Deepwater Aquila. An earlier estimate for 2024 CapEx was $195 million.
• For the full year 2026, capital expenditures are projected to be between $125 million and $135 million, focusing on maintaining and upgrading the specialized fleet.