Diamond Offshore Drilling

Diamond Offshore Drilling, Inc.
NYSE: DO (1995-2024)
IndustryOilfield services
Founded1978; 47 years ago (1978)
FounderDon McMahon
HeadquartersKaty, Texas, U.S.
ServicesOffshore drilling
Revenue{{}} $980 million (2019)
{{}} $357 million (2019)
Total assets{{}} $5.83 billion (2019)
Total equity{{}} $3.23 billion (2019)
Number of employees
2,500 (2019)
ParentNoble Corporation (since 2024)
Websitediamondoffshore.com
Footnotes / references
[1]

Diamond Offshore Drilling, Inc. is an offshore drilling contractor. The company is headquartered in Katy, Texas, United States, and has major offices in Australia, Brazil, Mexico, Scotland, Singapore, and Norway.[1]

It operates 15 drilling rigs including 11 semi-submersible platforms and 4 drillships.[1] In September 2024, Noble Corporation completed its acquisition of the Texas firm.[2]

History

In the early 1960s, Brewster-Bartle, an onshore drilling company, filed bankruptcy. In 1964, Don McMahon acquired Brewster-Bartle from its bank creditors and formed Diamond M Drilling Company, named after Diamond M Acres, his ranch near Simonton, Texas, which then expanded into offshore drilling.

In 1970, Diamond M became a public company via an initial public offering. Twelve years after being acquired by Kaneb Services for $102 million,[3] the firm was sold for $48.5 million to Loews Corporation in 1989.[4]

In 1992, Diamond M Corporation acquired ODECO from Murphy Oil for $358 million.[4] Shortly thereafter, Diamond M Corp. briefly changed its name to Diamond M-ODECO Drilling Inc. before becoming Diamond Offshore Drilling, Inc. in 1993.[5]

In October 1995, the company once again became a public company via an initial public offering, listing on the New York Stock Exchange.[6] In April 1996, the company acquired Arethusa for $516 million in stock; Arethusa had previously acquired Zapata Corporation (now HRG Group).[7]

In May 2012, the company ordered a $655 million drillship from Hyundai Heavy Industries.[8] In September 2016, seven months after discontinuing the quarterly cash dividend payment,[1] the firm was removed from the S&P 500 Index.[9]

In 2019, the company's revenues were primarily from Hess Corporation (28.9%), Occidental Petroleum (20.6%), Petrobras (19.5%), and BP (3.1%).[1] Operations in the United States accounted for 52.5% of the company's revenues in 2019.[1]

In April 2020, the company filed for bankruptcy in part due to the oil price collapse following the reduction in oil demand during the COVID-19 pandemic.[10][11] The company was criticized for taking CARES Act bailout money - intended for small businesses - and, in bankruptcy court, turning it into executive bonuses.[12][13]

In June 2024, offshore drilling contracting company Noble Corporation announced it would acquire Diamond Offshore for $1.6 billion in a cash-and-stock deal.[14] The transaction was completed in September.

Controversies

Worker asbestos exposure

In 1989, Diamond's predecessor bought 6 drilling rigs from the predecessor of Kaneb Management. Some of Kaneb's employees continued to work for Diamond after the transaction and then sued Diamond for personal injuries they allegedly suffered from asbestos exposure while they worked for Kaneb.[15] In a 2013 filing with the SEC, Diamond acknowledged that its equipment had been used for the "manufacture and use of asbestos-containing drilling mud" but sought to be indemnified from liability.[16]

References

  1. ^ a b c d e f "Diamond Offshore Drilling, Inc. 2019 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ "Noble Completes Acquisition of Diamond Offshore Drilling Ahead of Schedule". The Maritime Executive. Retrieved 2024-11-02.
  3. ^ "Corporation Affairs". The New York Times. November 30, 1977.
  4. ^ a b "Loews Corp Hits A Gusher". The Washington Post. November 21, 1996.
  5. ^ "USA: Diamond Offshore 1Q 2011 Net Profit Down by USD 40.3 Million". Offshore Energy Today. April 21, 2011.
  6. ^ "Diamond Offshore Drilling: Chapter 11 Disclosure Statement: Corporate History". SEC. Retrieved 5 April 2022.
  7. ^ SALPUKAS, AGIS (December 9, 1995). "Diamond Offshore Is Planning Takeover of Oil-Rig Competitor". The New York Times.
  8. ^ Dittrick, Paula (December 9, 1995). "Diamond Offshore orders drillship, sells jack ups". Oil & Gas Journal.
  9. ^ Smith, Mike D. (September 30, 2016). "Diamond Offshore loses spot on S&P 500". Houston Chronicle.
  10. ^ "Diamond Offshore Files for Chapter 11 Bankruptcy". The Wall Street Journal. April 26, 2020.
  11. ^ "Diamond Offshore files for bankruptcy, citing 'price war,' coronavirus". CNBC. 2020-04-27. Retrieved 2020-04-27.
  12. ^ Dlouhy, Jennifer A. (2020-05-15). "'Stealth Bailout' Shovels Millions of Dollars to Oil Companies". www.msn.com. Archived from the original on 2020-05-18. Retrieved 2020-05-18.
  13. ^ Dreams, Common (17 May 2020). "Big Oil taking $1.9 billion in CARES Act tax breaks aimed at helping small businesses in 'Stealth bailout': report". www.rawstory.com. Retrieved 2020-05-18.
  14. ^ Kumar, Arunima (June 10, 2024). "Noble Corp offers $1.6 bln for rival Diamond Offshore to strengthen fleet". Reuters.
  15. ^ "Diamond Offshore Pulled Back Into Asbestos Liability Fight". Law360. June 11, 2013.
  16. ^ Gibb, Gordon (October 1, 2013). "Offshore Drilling Giant Says "Not Guilty" in Drilling Mud Lawsuit". Lawyers and Settlements.

Official website

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