Transocean is like United Rentals (URI) for giant offshore oil drilling rigs, complete with specialized crews.

Alternatively, they're like Fluor (FLR) or KBR (KBR), but exclusively providing services to drill oil and gas wells deep under the ocean using their own advanced fleet.

• Offshore Contract Drilling Services: Transocean provides specialized services for drilling oil and gas wells in offshore locations worldwide.
• Ultra-Deepwater Drilling Services: Utilizing its fleet of ultra-deepwater floaters, the company offers drilling solutions for extreme depths.
• Harsh Environment Drilling Services: Transocean provides drilling services designed for challenging and severe offshore conditions using its harsh environment floater rigs.

Transocean (RIG) primarily sells its offshore contract drilling services to other companies in the energy sector.

Based on their 2023 revenues, Transocean's major customers include:

• TotalEnergies (NYSE: TTE)
• Shell (NYSE: SHEL)
• Chevron (NYSE: CVX)

• National Oilwell Varco (NYSE: NOV)
• Schlumberger (NYSE: SLB)
• Seatrium Limited (SGX: 5E2)

Keelan Adamson, President and Chief Executive Officer

Keelan Adamson joined Transocean in 1995 and has held various executive positions including President and Chief Operating Officer (March 2022 - April 2025), Executive Vice President and Chief Operations Officer (August 2018 - February 2022), and Senior Vice President, Operations (October 2017 - July 2018). His responsibilities have encompassed Engineering and Technical Services, Major Capital Projects, Human Resources, and serving as the Managing Director for the company's business in North America, Canada, and Trinidad. Mr. Adamson earned a Bachelor's degree in Aeronautical Engineering from Queen's University Belfast and completed the Advanced Management Program at Harvard Business School. He has over 30 years of experience at Transocean.

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

R. Thaddeus Vayda assumed the role of Executive Vice President and Chief Financial Officer for Transocean, effective May 1, 2024, succeeding Mark Mey.

Jeremy D. Thigpen, Chair of the Board of Directors

Jeremy D. Thigpen became the Chair of the Board of Directors following the 2025 Annual General Meeting, transitioning from his role as Chief Executive Officer, which he held since 2015. Prior to joining Transocean, Mr. Thigpen spent 18 years at National Oilwell Varco (NOV), where he served as Senior Vice President and Chief Financial Officer from 2012 to 2015. His tenure at NOV also included leadership roles as President of the Downhole and Pumping Solutions business (2007-2012) and President of the Downhole Tools group (2003-2007). He also held various management and business development capacities at NOV, including Director of Business Development and Special Assistant to the Chairman. He is currently a Director at Sunnova International Inc. and a Trustee at Rice University.

Roddie Mackenzie, Executive Vice President and Chief Commercial Officer

Roddie Mackenzie has served as Executive Vice President and Chief Commercial Officer at Transocean since February 2022. He began his career in the energy sector as a rig-based engineer in 1997 with Sedco Forex, which later merged with Transocean in 1999. Since joining Transocean, he has held various senior leadership positions, including Senior Vice President of Marketing, Innovation and Industry Relations, and Managing Director of Business Development, with responsibilities across global regions. Before joining Transocean, he was a Marketing & Sales Manager at ODS International. Mr. Mackenzie currently serves as Chairman of the International Association of Drilling Contractors.

Paul Johnson, Executive Vice President, Operations

Paul Johnson was appointed Executive Vice President, Operations for Transocean in March 2026. He commenced his career with Transocean in 1990 as a roustabout in the North Sea. Over his extensive career with the company, he progressed through various offshore roles before moving into shore-based management as a Rig Manager. He has held senior management positions in Corporate Planning, Human Resources, and Global Operations, including serving as Operations Director in both the United States and Brazil.

The key risks to Transocean's (RIG) business are primarily financial, operational, and regulatory, reflecting the inherent challenges of the offshore drilling industry and broader energy market dynamics.

1. Financial Risks from High Debt and Volatile Oil & Gas Prices
   Transocean faces significant financial risks due to its substantial debt load and below-investment-grade credit ratings, which can constrain its access to capital and increase borrowing costs. The company's profitability and demand for its drilling services are highly susceptible to fluctuations in global oil and natural gas prices, operating within a cyclical and competitive offshore drilling industry. Prolonged periods of low commodity prices can lead to decreased demand and lower day rates for its rigs, directly impacting financial performance.
2. Operational Risks Associated with Offshore Drilling
   The nature of offshore drilling inherently involves significant operational hazards, including the potential for accidents, blowouts, explosions, fires, and equipment failures. Furthermore, operations are subject to extreme weather conditions such as hurricanes and storms, which can cause equipment damage, operational delays, and pose safety risks to personnel. Maintaining and reactivating its fleet of specialized drilling units also requires substantial ongoing capital and operating expenditures.
3. Regulatory and Energy Transition Risks
   Transocean operates under an increasingly complex and stringent regulatory environment, particularly concerning environmental and safety standards. Evolving regulations can lead to higher compliance costs and operational restrictions. A longer-term risk stems from the global energy transition, which involves a growing emphasis on renewable energy sources and efforts to discourage investments in fossil fuel companies. This shift could negatively impact the future demand for offshore drilling services and potentially affect the company's stock price and access to capital markets.

Addressable Markets for Transocean (RIG)

The addressable market for Transocean's main products and services, which include offshore contract drilling services for oil and gas wells, can be primarily assessed through the global offshore drilling market and, more specifically, the deepwater and ultra-deepwater drilling market, where Transocean specializes.

Global Offshore Drilling Market

The global offshore drilling market was valued at approximately USD 43.78 billion in 2025. This market is projected to grow significantly, reaching an estimated USD 87.50 billion by 2034, exhibiting a Compound Annual Growth Rate (CAGR) of 7.87% during the forecast period.

Global Deepwater and Ultra-Deepwater Drilling Market

Given Transocean's focus on ultra-deepwater and harsh environment floaters, the global deepwater and ultra-deepwater drilling market represents a key specialized addressable market. This market was valued at approximately USD 15.9 billion in 2024 and is projected to reach USD 19.8 billion by 2030, growing at a CAGR of 3.8%.

• Strong and Expanding Contract Backlog: Transocean benefits from a substantial contract backlog, which provides significant revenue visibility for the coming years. As of February 2026, the total backlog was approximately $6.1 billion, with recent fixtures adding an incremental backlog of about $610 million. The company expects $3.8-$3.95 billion in 2026 contract drilling revenues, with roughly 89% already secured under firm contracts.
• Increasing Demand and Utilization for High-Specification Rigs: The demand for Transocean's specialized ultra-deepwater and harsh-environment rigs is strengthening. Global ultra-deepwater fleet utilization is anticipated to exceed 90% by 2027, with the market expected to tighten by late 2026 and early 2027. This growing demand is driven by the need of energy companies to replace reserves and a strategic shift towards reliable hydrocarbon sources, positioning Transocean to capitalize on global ultra-deepwater tenders.
• Rising Dayrates for Drilling Rigs: Dayrates, the daily rental rates for drilling rigs, have been on an upward trajectory. The tightening market and increased demand for high-specification rigs are expected to continue driving day rates higher. For example, Transocean has secured contracts with average daily revenues around $461,000, and some high-specification rigs command day rates exceeding $500,000.
• Strategic Acquisition of Valaris: The recently announced definitive agreement to combine with Valaris is a transformative event. This merger is expected to create an expanded fleet of best-in-class, high-specification rigs and an industry-leading combined backlog of approximately $10 billion to $11 billion. This significantly increases Transocean's market reach and is anticipated to generate substantial cost synergies.
• Improved Rig Utilization and Operational Efficiency: Transocean is focused on maximizing the operational time of its fleet. The company delivered strong operational performance, achieving a fleet-wide revenue efficiency of 96.5% for the full year 2025 and 98% uptime in Q4 2025. Continued efforts in operational efficiency and cost reductions, including a planned $150 million decrease in costs in 2026, contribute to higher revenue conversion from its existing contracts.

Share Issuance

• Transocean experienced a significant increase in shares outstanding from 902 million in June 2025 to 1.1 billion in February 2026, indicating recent equity issuance or conversions.
• The company raised approximately $616 million in net proceeds from two common stock issuances in the second half of 2025, primarily used to address 2025 exchangeable bonds.
• In February 2026, Transocean entered into an agreement to acquire Valaris through an all-share exchange, with a ratio of 15.235 Transocean shares per Valaris share.

Outbound Investments

• In 2024, Transocean acquired the remaining 67.0% ownership interest in Orion Holdings (Cayman) Limited, which owned the harsh environment floater Transocean Norge, for an aggregate fair value of $431 million, paid via 55.5 million Transocean shares and $130 million in senior notes.
• In February 2023, Transocean acquired a noncontrolling interest in Global Sea Mineral Resources (GSR) through a $10 million cash contribution and an $85 million non-cash contribution of the ultra-deepwater floater Ocean Rig Olympia and related assets.
• In 2025, Transocean evolved its 2023 joint venture with Eneti by forming a more ambitious partnership to construct new, purpose-built offshore wind turbine installation vessels.

Capital Expenditures

• Capital expenditures were $11 million in Q3 2025 and $28 million in Q4 2025.
• Transocean’s capital expenditures peaked in 2022 at $717 million, but have since significantly declined, with the latest twelve months (LTM) as of May 1, 2025, showing $81 million.
• The company allocates resources towards technological investments, including an $85 million R&D investment for 2025, focused on developing proprietary systems like the Digital Rig platform and the Eco-Rig Initiative to reduce non-productive time, lower emissions, and modernize its fleet.