Seadrill Completes Aquadrill Acquisition

Seadrill acquires Aquadrill
Seadrill highlights increased fleet capacity as the market is rebounding (Seadrill)

Published Apr 4, 2023 2:41 PM by The Maritime Executive

Seadrill completed the acquisition of Aquadrill helping the offshore drilling contractor to diversify and expand its operations as the market continues to rebound. Completed a little more than a year after the company emerged from a reorganizational bankruptcy, the combined operation reports it will have a combined backlog of $2.6 billion. The company says it will have a diversified portfolio of contract coverage, with additional active fleet capacity to deploy in a rising market environment across critical basins in the Golden Triangle.

Announced in December 2022, the acquisition was completed as an all-stock transaction that valued Aquadrill at approximately $958 million. Aquadrill became a wholly owned subsidiary of Seadrill with its former unitholders and equity award holders receiving a total of 29,866,505 common shares in Seadrill. Seadrill investors hold approximately 62 percent of the combined company with the former Aquadrill unitholders owning approximately 38 of the combined companies.

“We are delighted to have completed the acquisition of Aquadrill, welcoming its fleet back into the Seadrill family,” said Simon Johnson, Seadrill’s President and Chief Executive Officer. “The management team is focused on efficiently and rapidly integrating the two companies in order to realize the synergies arising from the transaction. Today is a crucial milestone for our company and we firmly believe that we are well-placed for this industry upcycle. We remain optimistic in the continuing development of the rig market and our ability to deliver further value to our shareholders.”

Seadrill’s management said that the combined company will be in a strong position to serve a broader range of customers. It will have one of the youngest and most technologically advanced fleets in the industry, owning 12 floaters (including seven 7th generation drillships), three harsh environment rigs, four benign jack-ups, and three tender-assisted rigs. Additionally, seven rigs will be managed under strategic partnerships.

The company they said should benefit from an enhanced cash flow profile and a strengthened balance sheet, with significant credit and liquidity improvement, and with access to a potentially lower cost of capital. They expect to realize at least $70 million annually on a run-rate basis in synergies.

Seadrill will continue to be domiciled in Hamilton, Bermuda, and will continue to trade on the New York Stock Exchange and the main list of the Oslo Stock Exchange. As previously announced, Julie Robertson and Simon Johnson will continue in their respective roles as Chair of the Board of Directors, and President and Chief Executive Officer.