Three months ended Three months ended September 30, June 30, sequential September 30, year-over-year 2024 2024 change 2023 change(In millions, except per share amounts, percentages and backlog) Contract drilling revenues$948 $861 $87 $713 $235 Adjusted contract drilling revenues$948 $861 $87 $721 $227 Revenue efficiency (1) 94.5 % 96.9 % 95.4 % Operating and maintenance expense$563 $534 $29 $524 $39 Net loss attributable to controlling interest$(494) $(123) $(371) $(220) $(274)Diluted loss per share$(0.58) $(0.15) $(0.43) $(0.28) $(0.30) Adjusted EBITDA$342 $284 $58 $162 $180 Adjusted EBITDA margin 36.0 % 33.0 % 22.5 % Adjusted net income (loss)$64 $(123) $187 $(280) $344 Adjusted diluted earnings (loss) per share$— $(0.15) $0.15 $(0.36) $0.36 Backlog as of the October 2024 Fleet Status Report$9.3 billion
STEINHAUSEN, Switzerland, Oct. 30, 2024 (GLOBE NEWSWIRE) — Transocean Ltd. (NYSE: RIG) today reported a net loss attributable to controlling interest of $494 million, $0.58 per diluted share, for the three months ended September 30, 2024.
Third quarter results included net unfavorable items of $558 million or $0.58 per diluted share as follows:
$617 million, $0.64 per diluted share, loss on impairment of assets, net of tax.
Partially offset by:
$21 million , $0.02 per diluted share, gain on retirement of debt; and$38 million, $0.04 per diluted share, discrete tax items, net.
After consideration of these net unfavorable items, third quarter 2024 adjusted net income was $64 million.
Contract drilling revenues for the three months ended September 30, 2024, increased sequentially by $87 million to $948 million, primarily due to increased rig utilization, increased dayrates for two rigs, higher reimbursement revenues and a full quarter of revenues from the newbuild ultra-deepwater drillship Deepwater Aquila, partially offset by lower revenue efficiency across the fleet.
Operating and maintenance expense was $563 million, compared with $534 million in the prior quarter. The sequential increase was the result of increased fleet activity, including a full quarter of operations from Deepwater Aquila, partially offset by reduced operating costs related to Transocean Norge following the acquisition of Orion Holdings (Cayman) Limited in June 2024.
General and administrative expense was $47 million, down from $59 million in the second quarter. The decrease was primarily due to reduced costs associated with the early retirement of certain personnel and lower professional fees.
Interest expense net of capitalized amounts was $154 million, compared to $143 million in the prior quarter, excluding the favorable adjustment of $74 million and $69 million in the third and second quarter, respectively, for the fair value of the bifurcated exchange feature related to the 4.625% exchangeable bonds. Interest income was $11 million, compared to $14 million in the prior quarter.
The Effective Tax Rate(2) was 6.0%, down from 474.5% in the prior quarter. The decrease was primarily due to rig impairments, rig sales and other ordinary movement in income before tax. The Effective Tax Rate excluding discrete items was 22.5% compared to 416.3% in the previous quarter.
Cash provided by operating activities was $194 million during the third quarter of 2024, representing an increase of $61 million compared to the prior quarter. The sequential increase was primarily due to increased operating activities, improved cash collected from customers and timing of payments to suppliers, partially offset by higher interest payments.
Third quarter 2024 capital expenditures of $58 million were primarily associated with Deepwater Aquila. This compares with $84 million in the prior quarter.
“As illustrated by the nearly $1.3 billion in backlog booked in the third quarter, including the recent award for Deepwater Conqueror, the demand for our fleet of high specification ultra-deepwater and harsh environment rigs remains strong,” said Chief Executive Officer, Jeremy Thigpen. “With these most recent awards, more than 97% of Transocean’s active fleet is contracted in 2025, once again demonstrating that our customers clearly recognize Transocean’s unique capabilities – our rigs, crews and superior operational performance – add value to their programs.”
Thigpen concluded, “With approximately $9.3 billion in backlog, and clear visibility to future demand, we will remain focused on delivering safe, reliable and efficient operations for our customers and continue to maximize cash generation to improve our balance sheet, as we did in the third quarter with $136 million of free cash flow.”
Non-GAAP Financial Measures
We present our operating results in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). We believe certain financial measures, such as Adjusted Contract Drilling Revenues, EBITDA, Adjusted EBITDA and Adjusted Net Income, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under U.S. GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with U.S. GAAP.
All non-GAAP measure reconciliations to the most comparative U.S. GAAP measures are displayed in quantitative schedules on the company’s website at: www.deepwater.com.
About Transocean
Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services, and operates the highest specification floating offshore drilling fleet in the world.
Transocean owns or has partial ownership interests in and operates a fleet of 34 mobile offshore drilling units, consisting of 26 ultra-deepwater floaters and eight harsh environment floaters.
For more information about Transocean, please visit: www.deepwater.com.
Conference Call Information
Transocean will conduct a teleconference starting at 9 a.m. EDT, 2 p.m. CET, on Thursday, October 31, 2024, to discuss the results. To participate, dial +1 785-424-1226 and refer to conference code 827284 approximately 15 minutes prior to the scheduled start time.
The teleconference will be simulcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the teleconference will be available at: www.deepwater.com, by selecting Investors, Financial Reports.
A replay of the conference call will be available after 12 p.m. EDT, 5 p.m. CET, on Thursday, October 31, 2024. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-9184, passcode 827284. The replay will also be available on the company’s website.
Forward-Looking Statements
The statements described herein that are not historical facts are 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. These statements could contain words such as “possible,” “intend,” “will,” “if,” “expect,” or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, timing of the company’s newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the success of our business following prior acquisitions, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including those and other risks discussed in the company’s most recent Annual Report on Form 10-K for the year ended December 31, 2023, and in the company’s other filings with the SEC, which are available free of charge on the SEC’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company’s website at: www.deepwater.com.
This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.
Notes
(1)Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations. See the accompanying schedule entitled “Revenue Efficiency.”
(2)Effective Tax Rate is defined as income tax expense or benefit divided by income or loss before income taxes. See the accompanying schedule entitled “Supplemental Effective Tax Rate Analysis.”
Analyst Contact:
Alison Johnson
+1 713-232-7214
Media Contact:
Pam Easton
+1 713-232-7647
TRANSOCEAN LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per share data)(Unaudited)
Three months ended Nine months ended September 30, September 30, 2024 2023 2024 2023 Contract drilling revenues$948 $713 $2,572 $2,091 Costs and expenses Operating and maintenance 563 524 1,620 1,417 Depreciation and amortization 190 192 559 560 General and administrative 47 44 158 137 800 760 2,337 2,114 Loss on impairment of assets (629) (5) (772) (58)Loss on disposal of assets, net (4) (3) (10) (173)Operating loss (485) (55) (547) (254) Other income (expense), net Interest income 11 12 40 42 Interest expense, net of amounts capitalized (80) (232) (271) (649)Gain (loss) on retirement of debt 21 — 161 (32)Other, net 8 12 32 35 (40) (208) (38) (604)Loss before income tax benefit (525) (263) (585) (858)Income tax benefit (31) (43) (66) (8) Net loss (494) (220) (519) (850)Net income attributable to noncontrolling interest — — — — Net loss attributable to controlling interest$(494) $(220) $(519) $(850) Loss per share Basic$(0.56) $(0.28) $(0.62) $(1.13)Diluted$(0.58) $(0.28) $(0.65) $(1.13) Weighted-average shares outstanding Basic 879 774 840 755 Diluted 954 774 915 755
TRANSOCEAN LTD. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In millions, except share data)(Unaudited)
September 30, December 31, 2024 2023 Assets Cash and cash equivalents$435 $762 Accounts receivable, net of allowance of $2 at September 30, 2024 and December 31, 2023 594 512 Materials and supplies, net of allowance of $176 and $198 at September 30, 2024 and December 31, 2023, respectively 425 426 Assets held for sale 345 49 Restricted cash and cash equivalents 365 233 Other current assets 179 144 Total current assets 2,343 2,126 Property and equipment 22,412 23,875 Less accumulated depreciation (6,424) (6,934)Property and equipment, net 15,988 16,941 Contract intangible assets — 4 Deferred tax assets, net 165 44 Other assets 1,014 1,139 Total assets$19,510 $20,254 Liabilities and equity Accounts payable$255 $323 Accrued income taxes 13 23 Debt due within one year 457 370 Other current liabilities 706 681 Total current liabilities 1,431 1,397 Long-term debt 6,503 7,043 Deferred tax liabilities, net 570 540 Other long-term liabilities 778 858 Total long-term liabilities 7,851 8,441 Commitments and contingencies Shares, $0.10 par value, 1,057,879,029 authorized, 141,262,093 conditionally authorized, 940,828,901 issued and 875,803,595 outstanding at September 30, 2024, and CHF 0.10 par value, 1,021,294,549 authorized, 142,362,093 conditionally authorized, 843,715,858 issued and 809,030,846 outstanding at December 31, 2023 87 81 Additional paid-in capital 14,871 14,544 Accumulated deficit (4,552) (4,033)Accumulated other comprehensive loss (179) (177)Total controlling interest shareholders’ equity 10,227 10,415 Noncontrolling interest 1 1 Total equity 10,228 10,416 Total liabilities and equity$19,510 $20,254
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Nine months ended September 30, 2024 2023 Cash flows from operating activities Net loss$(519) $(850)Adjustments to reconcile to net cash provided by operating activities: Amortization of contract intangible asset 4 45 Depreciation and amortization 559 560 Share-based compensation expense 38 30 Loss on impairment of assets 772 58 Loss on impairment of investment in unconsolidated affiliate 5 — Loss on disposal of assets, net 10 173 Fair value adjustment to bifurcated compound exchange feature (153) 272 Amortization of debt-related balances, net 39 38 (Gain) loss on retirement of debt (161) 32 Deferred income tax expense (benefit) (91) 1 Other, net (6) 21 Changes in deferred revenues, net 98 40 Changes in deferred costs, net (26) (125)Changes in other operating assets and liabilities, net (328) (229)Net cash provided by operating activities 241 66 Cash flows from investing activities Capital expenditures (225) (207)Investment in loans to unconsolidated affiliates (3) (3)Investment in equity of unconsolidated affiliate — (10)Proceeds from disposal of assets, net of costs to sell 99 10 Cash acquired in acquisition of unconsolidated affiliates 5 7 Net cash used in investing activities (124) (203) Cash flows from financing activities Repayments of debt (2,073) (1,707)Proceeds from issuance of debt, net of issue costs 1,767 1,664 Other, net (6) (3)Net cash used in financing activities (312) (46) Net decrease in unrestricted and restricted cash and cash equivalents (195) (183)Unrestricted and restricted cash and cash equivalents, beginning of period 995 991 Unrestricted and restricted cash and cash equivalents, end of period$800 $808
TRANSOCEAN LTD. AND SUBSIDIARIESFLEET OPERATING STATISTICS Three months ended September 30, June 30, September 30, Contract Drilling Revenues (in millions)2024 2024 2023Ultra-deepwater floaters$668 $606 $516Harsh environment floaters 280 255 197Total contract drilling revenues$948 $861 $713
Three months ended September 30, June 30, September 30, Average Daily Revenue (1)2024 2024 2023Ultra-deepwater floaters$426,700 $433,900 $406,500Harsh environment floaters 464,900 449,600 357,400Total fleet average daily revenue$436,800 $438,300 $391,300
Three months ended September 30, June 30, September 30, Utilization (2)2024 2024 2023Ultra-deepwater floaters60.7% 53.5% 45.0%Harsh environment floaters75.0% 73.0% 63.0%Total fleet average rig utilization63.9% 57.8% 49.4%
Three months ended September 30, June 30, September 30, Revenue Efficiency (3)2024 2024 2023Ultra-deepwater floaters92.5% 96.5% 94.3%Harsh environment floaters100.1% 98.1% 98.1%Total fleet average revenue efficiency94.5% 96.9% 95.4% (1) Average daily revenue is defined as operating revenues, excluding revenues for contract terminations, reimbursements and contract intangible amortization, earned per operating day. An operating day is defined as a day for which a rig is contracted to earn a dayrate during the firm contract period after operations commence. (2) Rig utilization is defined as the total number of operating days divided by the total number of rig calendar days in the measurement period, expressed as a percentage. (3) Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations.
TRANSOCEAN LTD. AND SUBSIDIARIESNON-GAAP FINANCIAL MEASURES AND RECONCILIATIONSADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE(in millions, except per share data) YTD QTD YTD QTD YTD 09/30/24 09/30/24 06/30/24 06/30/24 03/31/24Adjusted Net Income (Loss) Net income (loss) attributable to controlling interest, as reported$(519) $(494) $(25) $(123) $98 Loss on impairment of assets, net of tax 755 617 138 138 — Loss on impairment of investment in unconsolidated affiliates 5 — 5 4 1 Gain on retirement of debt (161) (21) (140) (140) — Discrete tax items (161) (38) (123) (2) (121)Net income (loss), as adjusted$(81) $64 $(145) $(123) $(22) Adjusted Diluted Earnings (Loss) Per Share: Diluted earnings (loss) per share, as reported$(0.65) $(0.58) $(0.03) $(0.15) $0.11 Loss on impairment of assets, net of tax 0.82 0.64 0.17 0.17 — Loss on impairment of investment in unconsolidated affiliates 0.01 — — — — Gain on retirement of debt (0.18) (0.02) (0.17) (0.17) — Discrete tax items (0.18) (0.04) (0.15) — (0.14)Diluted earnings (loss) per share, as adjusted$(0.18) $— $(0.18) $(0.15) $(0.03)
YTD QTD YTD QTD YTD QTD YTD 12/31/23 12/31/23 09/30/23 09/30/23 06/30/23 06/30/23 03/31/23Adjusted Net Loss Net loss attributable to controlling interest, as reported$(954) $(104) $(850) $(220) $(630) $(165) $(465)Loss on impairment of assets 57 (1) 58 5 53 53 — Loss on disposal of assets, net 169 — 169 — 169 — 169 Loss on impairment of investment in unconsolidated affiliate 5 5 — — — — — Loss on conversion of debt to equity 27 24 3 — 3 3 — (Gain) loss on retirement of debt 31 (1) 32 — 32 — 32 Discrete tax items (74) 3 (77) (65) (12) (1) (11)Net loss, as adjusted$(739) $(74) $(665) $(280) $(385) $(110) $(275) Adjusted Diluted Loss Per Share: Diluted loss per share, as reported$(1.24) $(0.13) $(1.13) $(0.28) $(0.85) $(0.22) $(0.64)Loss on impairment of assets 0.07 — 0.08 0.01 0.07 0.07 — Loss on disposal of assets, net 0.22 — 0.23 — 0.23 — 0.23 Loss on impairment of investment in unconsolidated affiliate 0.01 0.01 — — — — — Loss on conversion of debt to equity 0.04 0.03 — — — — — (Gain) loss on retirement of debt 0.04 — 0.04 — 0.04 — 0.04 Discrete tax items (0.10) — (0.10) (0.09) (0.01) — (0.01)Diluted loss per share, as adjusted$(0.96) $(0.09) $(0.88) $(0.36) $(0.52) $(0.15) $(0.38)
TRANSOCEAN LTD. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS ADJUSTED CONTRACT DRILLING REVENUES EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION AND RELATED MARGINS (in millions, except percentages) YTD QTD YTD QTD YTD 09/30/24 09/30/24 06/30/24 06/30/24 03/31/24 Contract drilling revenues$2,572 $948 $1,624 $861 $763 Contract intangible asset amortization 4 — 4 — 4 Adjusted Contract Drilling Revenues$2,576 $948 $1,628 $861 $767 Net income (loss)$(519) $(494) $(25) $(123) $98 Interest expense, net of interest income 231 69 162 60 102 Income tax expense (benefit) (66) (31) (35) 156 (191) Depreciation and amortization 559 190 369 184 185 Contract intangible asset amortization 4 — 4 — 4 EBITDA 209 (266) 475 277 198 Loss on impairment of assets 772 629 143 143 — Loss on impairment of investment in unconsolidated affiliates 5 — 5 4 1 Gain on retirement of debt (161) (21) (140) (140) — Adjusted EBITDA$825 $342 $483 $284 $199 Profit (loss) margin (20.2)% (52.0)% (1.5)% (14.3)% 12.9 %EBITDA margin 8.1 % (28.1)% 29.2 % 32.2 % 25.8 %Adjusted EBITDA margin 32.0 % 36.0 % 29.7 % 33.0 % 26.0 %
YTD QTD YTD QTD YTD QTD YTD 12/31/23 12/31/23 09/30/23 09/30/23 06/30/23 06/30/23 03/31/23 Contract drilling revenues$2,832 $741 $2,091 $713 $1,378 $729 $649 Contract intangible asset amortization 52 7 45 8 37 19 18 Adjusted Contract Drilling Revenues$2,884 $748 $2,136 $721 $1,415 $748 $667 Net loss$(954) $(104) $(850) $(220) $(630) $(165) $(465) Interest expense, net of interest income 594 (13) 607 220 387 157 230 Income tax expense (benefit) 13 21 (8) (43) 35 (16) 51 Depreciation and amortization 744 184 560 192 368 186 182 Contract intangible asset amortization 52 7 45 8 37 19 18 EBITDA 449 95 354 157 197 181 16 Loss on impairment of assets 57 (1) 58 5 53 53 — Loss on disposal of assets, net 169 — 169 — 169 — 169 Loss on impairment of investment in unconsolidated affiliate 5 5 — — — — — Loss on conversion of debt to equity 27 24 3 — 3 3 — (Gain) loss on retirement of debt 31 (1) 32 — 32 — 32 Adjusted EBITDA$738 $122 $616 $162 $454 $237 $217 Loss margin (33.7)% (14.0)% (40.7)% (30.9)% (45.7)% (22.6)% (71.6)%EBITDA margin 15.6 % 12.7 % 16.6 % 21.8 % 13.9 % 24.2 % 2.4 %Adjusted EBITDA margin 25.6 % 16.3 % 28.9 % 22.5 % 32.1 % 31.7 % 32.5 %
TRANSOCEAN LTD. AND SUBSIDIARIES SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS (in millions, except tax rates) Three months ended Nine months ended September 30, June 30, September 30, September 30, September 30, 2024 2024 2023 2024 2023 Income (loss) before income taxes$(525) $33 $(263) $(585) $(858) Loss on impairment of assets 629 143 5 772 58 Loss on disposal of assets, net — — — — 169 Loss on impairment of investment in unconsolidated affiliates — 4 — 5 — Loss on conversion of debt to equity — — — — 3 (Gain) loss on retirement of debt (21) (140) — (161) 32 Adjusted income (loss) before income taxes$83 $40 $(258) $31 $(596) Income tax expense (benefit)$(31) $156 $(43) $(66) $(8) Loss on impairment of assets 12 5 — 17 — Loss on disposal of assets, net — — — — — Loss on impairment of investment in unconsolidated affiliates — — — — — Loss on conversion of debt to equity — — — — — (Gain) loss on retirement of debt — — — — — Changes in estimates (1) 38 2 65 161 77 Adjusted income tax expense (benefit) (2)$19 $163 $22 $112 $69 Effective Tax Rate (3) 6.0 % 474.5 % 16.3 % 11.3 % 0.9 % Effective Tax Rate, excluding discrete items (4) 22.5 % 416.3 % (8.7)% 364.0 % (11.7)% (1) Our estimates change as we file tax returns, settle disputes with tax authorities, or become aware of changes in laws and other events that have an effect on our (a) deferred taxes, (b) valuation allowances on deferred taxes and (c) other tax liabilities. (2) The three months ended September 30, 2024 included $283 million of additional tax benefit, reflecting the cumulative effect of a decrease in the annual effective tax rate from the previous quarter estimate. (3) Our effective tax rate is calculated as income tax expense or benefit divided by income or loss before income taxes. (4) Our effective tax rate, excluding discrete items, is calculated as income tax expense or benefit, excluding various discrete items (such as changes in estimates and tax on items excluded from income before income taxes), divided by income or loss before income taxes, excluding gains and losses on sales and similar items pursuant to the accounting standards for income taxes related to estimating the annual effective tax rate.
Transocean Ltd. and subsidiariesNon-GAAP Financial Measures and ReconciliationsFree Cash Flow and Levered Free Cash Flow(in millions) YTD QTD YTD QTD YTD 09/30/24 09/30/24 06/30/24 06/30/24 03/31/24 Cash provided by (used in) operating activities $241 $194 $47 $133 $(86)Capital expenditures (225) (58) (167) (84) (83)Free Cash Flow 16 136 (120) 49 (169)Debt repayments (2,073) (258) (1,815) (1,664) (151)Debt repayments, paid from debt proceeds 1,748 99 1,649 1,649 – Levered Free Cash Flow $(309) $(23) $(286) $34 $(320) YTD QTD YTD QTD YTD QTD YTD 12/31/23 12/31/23 09/30/23 09/30/23 06/30/23 06/30/23 03/31/23 Cash provided by (used in) operating activities$164 $98 $66 $(44) $110 $157 $(47)Capital expenditures (427) (220) (207) (50) (157) (76) (81)Free Cash Flow (263) (122) (141) (94) (47) 81 (128)Debt repayments (1,717) (10) (1,707) (139) (1,568) (4) (1,564)Debt repayments, paid from debt proceeds 1,156 – 1,156 – 1,156 – 1,156 Levered Free Cash Flow$(824) $(132) $(692) $(233) $(459) $77 $(536) YTD QTD YTD QTD YTD QTD YTD 12/31/22 12/31/22 09/30/22 09/30/22 06/30/22 06/30/22 03/31/22 Cash provided by (used in) operating activities$448 $178 $270 $230 $40 $41 $(1)Capital expenditures (717) (409) (308) (87) (221) (115) (106)Free Cash Flow (269) (231) (38) 143 (181) (74) (107)Debt repayments (554) (101) (453) (196) (257) (92) (165)Debt repayments, paid from debt proceeds – – – – – – – Levered Free Cash Flow$(823) $(332) $(491) $(53) $(438) $(166) $(272)