I'm Kevin Smith, Vice President of Corporate Finance and Investor Relations. And I'm joined today by Simon Johnson, President and Chief Executive Officer Samira Lee, Executive Vice President and Chief Commercial Officer and Grant Creed, Executive Vice President and Chief Financial Officer. Our call will include forward looking statements that involve risks and uncertainty. Actual results may differ materially. No one should assume these forward looking statements remain valid later in the quarter or year and we assume no obligation to update them. Our filings with the U. S. Securities and Exchange Commission, provide a more detailed discussion of our forward looking statements and the risk factors affecting our business. During the call, we will also reference non GAAP measures. Our earnings release furnished to the SEC and available on our website includes reconciliations with the nearest corresponding GAAP measures. Our use of the term EBITDA on today's call corresponds with the term adjusted EBITDA as defined in our earnings release. I'll now turn the call over to Simon. Hello, and thank you for joining us on our call.

Today, I'll touch on our quarterly performance before moving to market overview. Sameer will then discuss our commercial outlook, Grant will review our quarterly financial results. I'd like to begin today's call by recognizing two rigs in our fleet, that recently received special endorsements from our customers for outstanding service delivery. The Sonangol Kwangala was awarded twenty twenty four rig of the year by Total Energies, and the West Elara was the recipient of a 2024 supplier recognition award from ConocoPhillips. This acknowledgment is a testament to our crews and their commitment to providing safe and efficient operations for our clients. In the first quarter, Seadrill delivered EBITDA of $73,000,000 Economic utilization for the quarter of 84% was principally impacted by three of our rigs in Brazil. As previously disclosed, the West Hallis incurred downtime in the quarter, responding to regulatory matters. In the West Auriga and the West Polaris, both incurred teething issues as they commenced long term contracts. Whilst it is not uncommon to experience lower uptime following major projects, returning utilization to the Seadrill standard is a priority moving forward. We've already seen a material improvement in the month of April. Turning to the market, current global macro uncertainty and OPEC's decision to accelerate supply increases way heavily on the underlying commodity price at present.

Clients are showing caution investing in such a volatile environment. And this is disrupting the demand side of our business. We don't know how long this climate will persist, but it's having understandable impact on near term customer confidence. Although uncertainty has increased, we are encouraged by our active dialogue with clients for opportunities commencing in the second half of twenty twenty five twenty twenty six and anticipate multiple contract awards in the coming months. We are confident in the future demand for deepwater drilling. Fundamentals remain in place, and we continue to believe that investment is required to offset depletion. Deepwater will play a substantial role in reserve for punishment. Historically, US shale plays have been an important source of production growth. Tier one acreage has largely been drilled, productivity gains, efficiency improvements are slowing down, and average well economics are increasingly seen less attractive relative to deepwater prospects. In contrast, deepwater investments continue to be compelling due to expansive reserves and superior production rates. Offshore sanctioning activity in both 2026 and 02/1927 is forecast by Rystad Energy to be double that of 02/2025. With roughly 75% of these projects economic above $50 per barrel and more than 80% economic above $60 per barrel.

We believe we are well positioned in the current environment. We operate a floater focused fleet and geographies that are oil price resilient. Our strong balance sheet and capital structure should provide protection against the market volatility that we are currently experiencing. Especially if it proves to be more prolonged than currently anticipated. We closed the first quarter with cash of $430,000,000 and we have durable contract cover with backlog of $2,800,000,000 that extends meaningfully through 2028 and into 2029. We navigate the current landscape, will remain disciplined in managing our fleet. The industry has brought back supply prematurely in the absence of sustainable demand. It is our continued belief that prioritizing margins and cash flow over utilization will yield more long term value creation for our shareholders. Finally, I want to provide an update regarding the delayed penalty notices Seadrill received from Petrobras related to the Seshay matter. Petrobras and Seadrill have agreed to participate in voluntary mediation and Petrobras has committed to not exercise any set off rights pending the outcome of the mediation. At this stage, we cannot estimate when the mediation will commence or be completed. However, dialogue between the parties is ongoing, and has been constructive to date.

With that, I'll turn the call over to Samir.

Thanks, Simon. I will now discuss our commercial outlook for the ultra deepwater market. Starting with The U. Gulf, which is often viewed as a barometer for leading edge day rates. We currently see up to five rigs on a roll off contract before year end. Which will increase competition and exert downward pressure on rates in 2025. Despite the near term competitive environment, this dislocation between supply and demand is temporary. And we anticipate the region will return to balance in 2026 and could well become undersupplied in the out years. Leading to stronger utilization and rate. Seadrill currently operates two high specification drillships and one niche semisubmersible in The U. S. Gulf. The West Neptune, recently equipped with MPD, has a firm contract with LOG through May 2026. Extending our partnership into its twelfth consecutive year. The Westfella continues to demonstrate exceptional operational performance for its client. The rig recently drilled a high impact well 35% below budget and one month ahead of schedule. This exceptional level of performance differentiates Westfella compared to other rigs rolling off this year and allows us to compete preferentially for opportunities. The Savant, Louisiana, our sixth generation semisubmersible, is due to finish its current contract next month.

Unlike the drillship market, the contracting cycle for this rig is short in both its lead times and duration. Recently, we've seen an uptick in interest from a variety of customers that leaves us optimistic that Savon, Louisiana can continue to surprise the upside. In addition to drilling programs, we are pursuing well intervention plug and abandonment opportunities for the rig. Which generate positive cash flow albeit at lower rates. Moving to Africa. Region where the deferral of work is felt most acutely, we continue to see a reduction in floater demand of two to four rigs in 2025. Before rebounding strongly to incremental growth in 2027 and beyond. Nigeria, Namibia, Mozambique and Angola remain sources of optimism in the medium and longer term. We're engaged in active dialogue with our customers for all three rigs that we currently operate through our joint venture in Angola and are competitively positioned for near term opportunities. If successfully contracted, the Seadrill owned West Gemini will undergo a routine SPS before commencing its next contract. Turning to Brazil. As anticipated, Petrobras has issued a multiyear tender for one or more rigs for work on the Buzios field. Commencing in late twenty twenty six.

It could come to market with another tender for an additional field later this year. In addition to Petrobras, we are seeing demand from other operators including some large IOCs which illustrates the longevity of demand in Brazil, and provides further support of our view that 30 plus floaters will be required in the region in the coming years. We currently have six drillships operating in Brazil, and only one of these rigs rolls off contract within the next twelve months. The West Carina, a high specification, seventh generation asset, that is dual activity and MPD equipped and dual BOP capable. The rig is well placed to participate in the recently announced Beth Rusk tender but is also capable of operating in deepwater basins across the globe. Including The U. S. Gulf Outside of the Golden Triangle, the West Capella, a dual activity NPD equipped drillship is currently stacked in Malaysia. We are in discussions with multiple clients for opportunities in the region, commencing in the second half of twenty twenty five and longer term work with a 2026 start date. The rig has a solid track record in the region, and is regarded as one of the best performing assets in Southeast Asia.

In addition to our floating fleet, also operate one harsh environment jacket. The West Alara in Norway. Despite the recent recognition of the West Sahara, that Simon mentioned earlier on the call, ConocoPhillips recently indicated that the need for multiple jackups in Norway beyond 2026 is uncertain. We continue to have an open dialogue with our client about the West Elaro. In closing, our focus remains on securing the right opportunities for rigs with uncommitted capacity. Our fleet is well positioned to compete for work across key markets, and we are approaching new opportunities with commercial discipline to ensure contracts reflect the technical capabilities of our assets. While near term softness exists, the underlying demand outlook is constructed. Ultimately, reserves must be replaced and we believe operators will come to market to drill the plethora of projects that have been deferred for multiple years. And with that, I'll turn it to Grant.

Thanks, Samir.

I'll now walk through our first quarter financial results. Total operating revenues for the first quarter were $335,000,000 an increase of $46,000,000 from the prior quarter. The increase in contract drilling revenues accounted for almost all the sequential improvement. Contract drilling revenues were up 44,000,000 sequentially to $248,000,000 due to additional operating days. Most notably, the West Auriga and West Polaris commenced contracts with Petrobras in December 2024 and February 2025, respectively. The increase in operating days was partially offset by a in economic utilization, as Simon referenced in his earlier remarks. Turning to expenses. First quarter total operating expenses were $317,000,000 down from $323,000,000 in the prior quarter. Vessel and rig operating expenses increased $15,000,000 to 179,000,000 due to additional operating days across the fleet. Depreciation and amortization increased $10,000,000 which primarily a function of capital spend associated with recent projects for the West Auriga and West Polaris ahead of their contract commencement.

Merger and integration related expenses were no down $17,000,000 sequentially following the handover of the final two Ecuador rigs late last year. Management contract expenses decreased 6,000,000 to 45,000,000 largely attributable to the timing of R and M projects spend and SG and A expenses were lower at $23,000,000 for the quarter. Adjusted EBITDA was $73,000,000 up from $28,000,000 in the prior quarter. Now turning to the balance sheet and cash flow statements, We continue to maintain a robust balance sheet and sound capital structure. At the end of the first quarter, gross principal debt was $625,000,000 and we held $430,000,000 in cash. Including 26,000,000 of restricted cash. A long runway to debt maturity in 02/1930 and strong cash on hand positions Seadrill well to endure periods of market volatility.

Net cash used in operations during the first quarter was CAD27 million and payments for capital additions and investing activities were $45,000,000 As expected, the first quarter included the settlement of invoices related to contract preparation and mobilization for the West Polaris and West Auriga the periodic survey for the West Neptune, working capital requirements for the additional operating days related to these three vessels, and the biannual payment of interest on the secured bond. We are maintaining our full year guidance shared on our fourth quarter earnings call that is total operating revenues of 1,300,000,000.0 to $1,360,000,000 which excludes reimbursable revenues of 35,000,000 adjusted EBITDA in the range of €320,000,000 to $380,000,000 and full year capital expenditures in the range of $250,000,000 to 300,000,000 We have undertaken an initial review of the impact that tariffs may have on our business. While the assessment is ongoing, at this early stage, we believe any impact of tariffs is contemplated by our current guidance ranges. I'll now hand back to Simon for his closing remarks.

In closing, the near term outlook for offshore drilling is cloudy, we are encouraged by our active conversations customers for opportunities beginning in the second half of twenty and twenty five and 02/1926. And remain convinced of the medium to long term prospectivity of our business. Our strategic focus on high specification floaters and advantaged deepwater basins strong balance sheet and durable backlog, offers both resilience and opportunity. With a modern capable fleet and a disciplined approach to deployment, we are poised to benefit as market fundamentals improve and operators refocus on reserve replacement. We believe that Seadrill is undervalued The board and management have worked diligently over the past few years to create a leading platform for long term value creation. We work continuously to analyze and improve our cost base and operational footprint. Simultaneously, we have refined the fleet optimized the balance sheet, materially reduce the share count, and secured a number of long term contracts at rates well in excess of recent awards. With that, we'll open the line for questions. Operator?

Thank you.

Our first question comes from the line of David Smith with Pickering Energy Partners. Line is open.

Good morning, David.

So as as you know, one of your competitors recently committed 44 rigs to contracts with a total base value of about 2,000,000,000 and performance incentives that could add another $540,000,000 or or 27% upside. Wanted to ask, you've seen a shift in client interest toward tying more of the contract economics to performance based metrics [indiscernible] is is there any reason we shouldn't expect that operators have already started trying to anchor negotiations around lower base rates implied by those contracts. Sure.

Hey, Dave. I'd say performance based contracts have been around for a while. We've got some currently as well. I'd say the quantum was probably different this time with one of our peer did, but they are not a new concept. Right?

And for us, if we have the right client and the the right rig, are happy to enter, you know, a larger performance based contract. So, you know, if I if I take the Vella for example, she drilled her last well, you know, 35% below budget and a month ahead of schedule. It would've been a great contract to to have a performance piece to it. So overall, we're not seeing a massive shift towards it. It is something that's been around for a while.

I think thing our peer did is just made it bigger. But, again, for the right client, the right opportunity, we're definitely open to it.

Appreciate that. And just a housekeeping question. What what are the costs to stack the Capella And and how should we think about the average daily cost while it's stacked? And you have an estimate of of the reactivation cost if you were to secure work? Independent of of, you know, any requested upgrade. [indiscernible] taken immediate steps to proactively reduce the costs while we pursue outstanding contracting opportunities for the rig. We have wound the cost back to a a certain extent, but we haven't taken those irrevocable steps to cold stack the rig at the moment. We're still in the fight with work opportunities for the rig in the region. And we really haven't reached the long term steady state gold stacking rate that we will reach if we're unsuccessful in our contracting efforts. So we're in the ramp down mode at the moment. So I think probably come back to you next quarter with an indication of what we're able to achieve, but at the moment, it's pretty dynamic. Thanks, Dave.

Our next question comes from the line of Fredrik Steen with Clarkson Securities. Your line is open.

Hey, Simon and team. Thank you for for all the color as always.

I wanted to continue a bit on the Capella and the you know, stacking efforts that you're now carrying out You know, what when you're weighing stacking versus keeping a rig [indiscernible] you elaborate a bit on, you know, the decision process there? I think, you know, before you've been relatively quick to to make those, call it, harder decisions. And also now that you've actually elected to to stack a rig at least for now, how does that impact [indiscernible] other rigs that you currently have stacked? Should we expect that some of them might be heading for proper retirement [indiscernible] Thank you.

Yes. Frederic, I think as you point out, we've been decisive about taking important decisions when we need to. We're in active dialogue with customers for opportunities on the Capella, the Gemini the Savanna, Louisiana. And we hope to provide some updates on various opportunities we're chasing relatively soon. We've said many times that we're going to be disciplined about removing supply from the market. We don't have clear line of sight on the job, and or profitable work isn't available in the marketplace, not going to sit there idly burning cash long periods of time. So whilst we don't have a firm sort of policy, there's obviously an element of a math problem to this. But you shouldn't expect us, for example, to sip there with a rig warm stacked for six months. If we have to bridge between programs, if we don't see the support in the market for for long term opportunities for a rig with one or more customers, then we're going to move to cold stack very quickly. What I will say, a lot of people talking about the competitiveness of sixth generation rigs in the market, of which we I've mentioned three that are of particular near term concern for us.

We believe our rigs are very competitive. [indiscernible] The rigs have a great history of efficient operation. And when people talk about specification differences and the like, our sixth generation rigs on the whole compare favorably with our seventh generation rigs. And I really think there's a bit more to the competitive of assets around cost structure, around geographic location, and around operating capability and performance track record. So we're pleased with our assets' ability to compete. It's really only long term cold stacked rigs that we would contemplate to remove from supply in the near future.

That's very good color. And just one final quick one for me. You maintained guidance How much of midpoint guidance is currently covered? On 25?

Frederic, we're not get into the, you know, the midpoint and and trying to stay where we're at in that guidance range. I think the fleet status gives you a good indication of which rigs would dictate where we land within that range. The Louisiana and Vela clearly have some open capacity towards the end of the year and those will be the ones that drive primarily drive where we land in that range.

Alright. Thank you so much. Have a good day. Thanks, Fredrik. Thank too. Thank you.

Our next question comes from the line of Greg Lewis with BTIG. Your line is open.

Yes. Hey, thank you and good morning everybody and thanks for taking my questions. Simon, thanks and team thanks and Sameer thanks for all the comments around the sixth, seventh gen rigs. But I am curious if you could maybe provide some color around the Vela I guess one of the questions that it seems like that's coming out during the season kind of that bifurcation between sixth and seventh gen floaters. Clearly, the seventh gen drillships have an advantage. As you look at the opportunity set of the Velo, is a seventh gen rig versus other seventh gen rigs, that are out there with availability. How does that landscape look?

Yes. So the Vela is placed quite well in the Gulf Of Mexico Not our comments, but our clients' comments saying she's the best performing rig in the Gulf. So it definitely helps us market that asset. We are in active dialogue with a few clients for that rig kind of in the fourth quarter and into Q1 twenty twenty six.

As I sit here today, we feel pretty confident in our abilities to fill that rig schedule, right? I mean, really does come down to performance and she's got MPD, she's dual activity, dual BOP. So everything you'd want for a rig in the Gulf Of Mexico with that performance track record, it really does give us some confidence in our ability to secure more work.

Okay. Great. And then the other question I had was, clearly, there's there's opportunities in '26, and it seems like everybody's pointing to '26 in West Africa. For startups, right? The contracts will happen well in advance of that. Are there if we were to look at Asia, Is Asia Is APAC kind Of similar I. E. There a lot of negotiations but most of that work is not till back end '26, '27 or are there is there the potential for are there any contracts out there [indiscernible] in Southeast Asia or Asia Pacific, depending how you think about it, for work that is prior to the back half of 2026? Or are we going to have to just kind of slow play this you know, in in Asia?

Greg, you've known me for a long time. The answer I love, yes and no. So that most of the programs are second half of twenty six or middle of 2026, if you will. There are absolutely some programs with a shorter duration for this year and early parts of next year. So, yeah, I'd say it's a good mix. You've got some that shorter term stuff in the near term, but the longer term kind of more duration more tenor is probably more heavily weighted to the second half of twenty twenty six.

I think Greg if I can also add got a lot of long dated contracts in our contract portfolio. And it occurs to us that now is not the time to go long and low. So it's important to balance that near term desire to secure contract coverage with maintaining operating leverage A lot of people talk about recovery in 2026 and 2027, what are they actually doing to position their fleets to benefit from that? We think that there's going to be a much more helpful dynamic appearing in the marketplace late twenty twenty six. And we intend to keep our fleet well positioned to benefit from that Great.

Sounds good. Thank you very much.

Thanks, Greg.

Our next question comes from the line of Hamed Khorsand with BWS Financial. Line is open.

Hey. Good morning.

I'm just trying to assess, like, the likelihood that you would actually get a contracts for the the second half of twenty five and you know, just the confidence there.

It's a dynamic market, right? So volatility is not helping us. Things change kind of hour by hour overnight yet. A settlement in tariffs at least for ninety days with China. Or a pause, if you will. So it's hard to handicap that answer right now. I'd say we feel confident on some of our assets and our abilities to contract. But it is a volatile and dynamic market. And that's something we deal with every day.

Hamed, it's Simon. I think the key thing to look at is when we cold stack rigs. I mean, that's when we ceasing to pursue opportunities or the opportunities themselves have dried up. I think the fact that we haven't moved the cold stacked to Capella the Louisiana or the Gemini gives you an indication that we see things in the marketplace where we stand to benefit We're very disciplined about reducing cost the maximum extent and as quickly as possible. So I think the fact we're continuing to market those rigs should give you a sense that we're we're quietly confident on our contracting outlook for those units.

Do you feel like the need that you need to compete on price right now?

Well, Not really. I mean, I think performance still matters a lot. Right? I mean, you can't be terribly outside of where recent pricing is, but we've shown historically our ability to get leading edge day rates. So I think for us, it's we're going to continue to sell our performance and our differentiation clients are willing to pay for that.

Lot depends on the competitive dynamics of the specific region relative to others. I mean there may be places where we're forced to accept lower prices than we would otherwise like. And there might be other places where we're able to keep prices at the leading edge as Sameer says.

Thank you.

And that concludes today's remarks and comments. Thank you very much for joining us. This concludes today's conference call. May now disconnect.