8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 24, 2014

Diamond Offshore Drilling, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware

1-13926

76-0321760

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

15415 Katy Freeway

Houston, Texas 77094

(Address of Principal Executive Offices and Zip Code)

Registrant’s telephone number, including area code: (281) 492-5300

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate line below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition

On July 24, 2014, Diamond Offshore Drilling, Inc. (the “Company”) issued a press release announcing its financial results for the fiscal quarter and six-month period ended June 30, 2014. A copy of such press release is furnished herewith as Exhibit 99.1.

The information furnished in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference.

Statements in the press release furnished as Exhibit 99.1 to this report that are not historical facts contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, statements concerning drilling rig deliveries and timing, and future performance, financial condition and market conditions. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Company’s overall business and financial performance can be found in the Company’s reports filed with the Securities and Exchange Commission and readers of this report are urged to review those reports carefully when considering these forward-looking statements. These factors include, among others, general economic and business conditions, contract cancellations, customer bankruptcy, operating risks, casualty losses, the risk that a letter of intent may not result in a binding contract, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental regulations, customer preferences and various other matters, many of which are beyond the Company’s control. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of such press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

Item 9.01. Financial Statements and Exhibits

(d)

Exhibits. The following exhibit is furnished pursuant to Item 2.02 of Form 8-K:


Exhibit number		Description

99.1		Press Release dated July 24, 2014

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


DIAMOND OFFSHORE DRILLING, INC.

By:		/s/ Gary T. Krenek
		Gary T. Krenek
		Senior Vice President and Chief Financial Officer

Dated: July 24, 2014

EX-99.1

Exhibit 99.1


		Contact: Darren Daugherty Director, Investor Relations (281) 492-5370

Diamond Offshore Announces Second Quarter 2014 Results

HOUSTON, July 24, 2014 — Diamond Offshore Drilling, Inc. (NYSE: DO) today reported net income of $90 million, or $0.65 per share, for the second quarter of 2014, compared with net income of $185 million, or $1.33 per share, in the same period a year earlier. Revenues in the second quarter of 2014 were $692 million, compared with revenues of $758 million in the prior-year quarter.

Net income for the quarter included $0.08 per share received from Niko Resources Ltd. related to a previously announced settlement agreement. Results also included a gain of $0.05 per share from the sale of the jack-up rig Ocean Spartan during the second quarter. Offsetting these items was a negative impact of $0.14 per share related to customer cancellation of the Ocean Vanguard contract.

“During the quarter, the first of our four newbuild drillships, the Ocean BlackHawk, commenced operations in the Gulf of Mexico,” said Marc Edwards, President and Chief Executive Officer. “During 2014, Diamond Offshore will have added five very capable assets to its fleet, three new drillships and two semi-submersibles, with a fourth drillship to be delivered in early 2015.”

“We retain a strong credit rating and a healthy balance sheet,” added Mr. Edwards. “Diamond Offshore remains well positioned to navigate through the current market cycle.”

CONFERENCE CALL

A conference call to discuss Diamond Offshore’s earnings results has been scheduled for 8:00 a.m. CDT today. A live webcast of the call will be available online on the Company’s website, www.diamondoffshore.com. Those interested in participating in the question and answer session should dial 800-247-9979 or 973-321-1100, for international callers. The conference ID number is 63586906. An online replay will also be available on www.diamondoffshore.com following the call.

ABOUT DIAMOND OFFSHORE

Diamond Offshore is a leader in offshore drilling, providing contract drilling services to the energy industry around the globe with a total fleet of 44 offshore drilling rigs, including five rigs under construction. Diamond Offshore’s fleet consists of 33 semisubmersibles, two of which are under construction, five dynamically positioned drillships, three of which are under construction, and six jack-ups. Additional information about the Company and access to the Company’s SEC filings are available at www.diamondoffshore.com. Diamond Offshore is owned 51% by Loews Corporation (NYSE: L).

FORWARD-LOOKING STATEMENTS

Statements contained in this press release that are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. Such statements include, but are not limited to, statements concerning drilling rig deliveries and timing, and future performance, financial condition and market conditions. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Company’s overall business and financial performance can be found in the Company’s reports filed with the Securities and Exchange Commission and readers of this press release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company’s website at www.diamondoffshore.com. These factors include, among others, general economic and business conditions, contract cancellations, customer bankruptcy, operating risks, casualty losses, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental regulations, customer preferences and various other matters, many of which are beyond the Company’s control. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

# # # #

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Revenues:
Contract drilling	$	649,554		$	744,898		$	1,334,862		$	1,444,871
Revenues related to reimbursable expenses		42,690			13,120			66,806			42,888

Total revenues		692,244			758,018			1,401,668			1,487,759

Operating expenses:
Contract drilling, excluding depreciation		395,376			369,036			765,166			744,130
Reimbursable expenses		42,290			12,805			65,956			42,094
Depreciation		108,906			97,143			215,917			193,964
General and administrative		20,478			16,435			43,305			33,250
Gain on disposition of assets		(8,572	)		(260	)		(8,719	)		(2,264	)

Total operating expenses		558,478			495,159			1,081,625			1,011,174

Operating income		133,766			262,859			320,043			476,585
Other income (expense):
Interest income		150			271			558			888
Interest expense		(18,523	)		(7,951	)		(36,678	)		(16,020	)
Foreign currency transaction gain (loss)		(2,971	)		448			(4,149	)		607
Other, net		181			674			508			420

Income before income tax expense		112,603			256,301			280,282			462,480
Income tax expense		(22,890	)		(70,967	)		(44,759	)		(101,157	)

Net Income	$	89,713		$	185,334		$	235,523		$	361,323

Income per share, Basic and Diluted	$	0.65		$	1.33		$	1.71		$	2.60

Weighted average shares outstanding:
Shares of common stock		137,145			139,035			137,803			139,034
Dilutive potential shares of common stock		4			37			5			43

Total weighted average shares outstanding		137,149			139,072			137,808			139,077

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS

(Unaudited)

(In thousands)


	Three Months Ended
	Jun 30,			Mar 31,			Jun 30,
	2014			2014			2013
REVENUES
Floaters:
Ultra-Deepwater	$	182,656		$	205,794		$	231,101
Deepwater		120,539			146,559			184,105
Mid-water		300,902			285,979			288,860

Total Floaters		604,097			638,332			704,066
Jack-ups		45,457			46,976			40,832

Total Contract Drilling Revenue	$	649,554		$	685,308		$	744,898

Revenues Related to Reimbursable Expenses	$	42,690		$	24,116		$	13,120

CONTRACT DRILLING EXPENSE
Floaters:
Ultra-Deepwater	$	122,327		$	123,530		$	128,147
Deepwater		81,641			71,949			60,126
Mid-water		148,931			134,046			139,252

Total Floaters		352,899			329,525			327,525
Jack-ups		29,851			28,029			27,377
Other		12,626			12,236			14,134

Total Contract Drilling Expense	$	395,376		$	369,790		$	369,036

Reimbursable Expenses	$	42,290		$	23,666		$	12,805

OPERATING INCOME
Floaters:
Ultra-Deepwater	$	60,329		$	82,264		$	102,954
Deepwater		38,898			74,610			123,979
Mid-water		151,971			151,933			149,608

Total Floaters		251,198			308,807			376,541
Jack-ups		15,606			18,947			13,455
Other		(12,626	)		(12,236	)		(14,134	)
Reimbursable expenses, net		400			450			315
Depreciation		(108,906	)		(107,011	)		(97,143	)
General and administrative expense		(20,478	)		(22,827	)		(16,435	)
Gain on disposition of assets		8,572			147			260

Total Operating Income	$	133,766		$	186,277		$	262,859

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)


	June 30,		December 31,
	2014		2013
ASSETS
Current assets:
Cash and cash equivalents	$	980,817	$	347,011
Marketable securities		350,156		1,750,053
Accounts receivable, net of allowance for bad debts		545,024		469,355
Prepaid expenses and other current assets		200,867		143,997
Asset held for sale		—		7,694

		2,076,864		2,718,110
Drilling and other property and equipment, net of accumulated depreciation		6,055,990		5,467,227
Other assets		229,468		206,097

Total assets	$	8,362,322	$	8,391,434

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	249,992	$	249,954
Other current liabilities		550,224		495,628
Long-term debt		2,244,336		2,244,189
Deferred tax liability		533,788		525,541
Other liabilities		237,034		238,864
Stockholders’ equity		4,546,948		4,637,258

Total liabilities and stockholders’ equity	$	8,362,322	$	8,391,434

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

AVERAGE DAYRATES AND UTILIZATION

(Dayrate in thousands)


	Second Quarter (A)					First Quarter					Second Quarter
	2014					2014					2013
	Dayrate		Utilization			Dayrate		Utilization			Dayrate		Utilization
Ultra-Deepwater Floaters	$	403		51	%	$	387		66	%	$	342		92	%
Deepwater Floaters	$	418		51	%	$	418		64	%	$	409		99	%
Mid-Water Floaters	$	266		68	%	$	276		64	%	$	271		65	%
Jack-Ups	$	97		74	%	$	93		79	%	$	88		74	%

A)	Dayrate and utilization calculations for Mid-Water Floaters exclude 22 revenue earning days for which we did not recognize revenue pursuant to GAAP.