Earnings release
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PRESS RELEASE << Transocean Ltd. Reports Third Quarter 2026 Results STEINHAUSEN, Switzerland, Nov. 02, 2026 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today reported financial results for the third quarter of 2026. The Company will host a conference call and webcast at 9 a.m. EST, 3 p.m. CET, on Tuesday, November 3, 2026, with participation details included in this release. Supplemental schedules have been posted to the Investors section of the Company’s website at . THIRD QUARTER 2026 KEY POINTS Contract drilling revenues were $937 million with strong revenue efficiency of 96.8%. Net income was $26 million or $0.02 per diluted share. Adjusted EBITDA was $313 million, implying a 33.4% margin. Net cash provided by operating activities was $174 million; net of capital expenditures of $43 million, free cash flow was $131 million. Ended the period with total liquidity of $1.3 billion, including the existing $510 million undrawn revolving credit facility. Added $2.0 billion in contract backlog at a weighted average dayrate of about $423,000. “Since our last report, we delivered solid operating results and significantly strengthened forward contract visibility,” said Keelan Adamson, Transocean’s CEO. “Strong cash flow enabled us to retire the remaining $200 million of debt associated with the Deepwater Aquila notes, ahead of schedule. New deepwater and harsh-environment awards increased our backlog to approximately $8.0 billion and improved 2027 contract coverage to approximately 95%. “Our priorities remain safe and reliable customer service, maximizing conversion of backlog into cash flow, and reducing debt. With all regulatory approvals now in hand and the Valaris closing expected on December 1, we are focused on integration planning and capturing $200 million in identified annual synergies.” 3Q26 FINANCIAL SUMMARY (1) (2)
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Three months ended Three months ended September 30, June 30, sequential September 30, year-over- year 2026 2026 change 2025 change (In millions, except per share amounts and percentages) Contract drilling revenues $ 937 $ 966 $ (29) $ 1,028 $ (91) Revenue efficiency 96.8% 97.0% 97.5% Operating and maintenance expense $ 589 $ 608 $ 19 $ 584 $ (5) Net income (loss) $ 26 $ 170 $ (144) $ (1,923) $ 1,949 Basic earnings (loss) per share $ 0.02 $ 0.15 $ (0.13) $ (2.00) $ 2.02 Diluted earnings (loss) per share $ 0.02 $ 0.04 $ (0.02) $ (2.00) $ 2.02 Adjusted EBITDA $ 313 $ 312 $ 1 $ 397 $ (84) Adjusted EBITDA margin 33.4% 32.2% 38.7% Adjusted net income $ 1 $ 158 $ (157) $ 62 $ (61) Adjusted diluted earnings (loss) per share $ — $ 0.03 $ (0.03) $ 0.06 $ (0.06) Net cash provided by operating activities $ 174 $ 236 $ (62) $ 246 $ (72) Free cash flow $ 131 $ 212 $ (81) $ 235 $ (104) Total debt, principal amount, end of period $ 4,975 $ 5,107 $ (132) $ 6,297 $ (1,322) Contract drilling revenues were lower sequentially, primarily due to an expected decrease in rig utilization. Interest expense, excluding the $22 million effect of the bifurcated exchange feature of the 4.625% Exchangeable Bonds due 2029, was $112 million compared to the $114 million in the prior quarter. Cash taxes paid, net of tax refunds of $9 million, were $7 million. FLEET STATUS REPORT AND CONTRACT BACKLOG The Company today issued its Fleet Status Report. Since its August 2026 report, the Company added nine new fixtures with an aggregate incremental backlog of approximately $2.0 billion and a weighted average dayrate of about $423,000.
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As of November 2, 2026, the Company’s contract backlog is approximately $8.0 billion. The Fleet Status Report can be accessed on the Company’s website: . OUTLOOK The following table includes guidance on key items for the fourth quarter and full year of 2026 and preliminary guidance for the full year of 2027: 4Q26E FY26E Preliminary FY27 (In millions, except percentages) Contract drilling revenues $ 915 –965 $3,900– 3,950 $ 3,850 – 4,000 Revenue efficiency, fleet wide 96.50% 96.50% 96.50% Selected costs and expenses Operating and maintenance expense $ 550 – 600 $ 2,350 – 2,400 $ 2,375 – 2,500 General and administrative $ 45 – 50 $ 185 – 190 $ 180 – 190 Interest expense $ 107 $ 500 $ 415 Interest income $ 5 – 10 $ 30 $ 20 – 30 Capital expenditures $ 50 $ 145 $ 130 – 140 Cash taxes $ 25 – 30 $ 50 – 55 $ 60 – 65 Total liquidity (end of year) — $ 1,300 1,500 – 1,700 CONFERENCE CALL INFORMATION Transocean will host a conference call at 9 a.m. EST, 3 p.m. CET, on Tuesday, November 3, 2026. To participate, dial +1 785-424-1631 approximately 15 minutes prior to the scheduled start time and refer to conference code 521052. The call will be webcast in a listen-only mode at: , by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the call will be available on the Company’s website at: , by selecting Investors, Financial Reports. (1) (a) Reflects scheduled debt amortization payments.(a)
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A replay of the call will be available after 12 p.m. EST, 6 p.m. CET, on Tuesday, November 3, 2026. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-0662, passcode 521052. The replay will also be available on the Company’s website. NON-GAAP FINANCIAL MEASURES We present our financial statements in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). We believe certain financial measures, such as Adjusted Net Income, EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt, 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 financial statements 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: . 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 27 mobile offshore drilling units, consisting of 20 ultra-deepwater drillships and seven harsh environment semisubmersibles. For more information about Transocean, please visit: . FORWARD-LOOKING STATEMENTS The statements described herein or in the Fleet Status Report 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 “believe,” “primarily,”
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“should,” “outlook,” “future,” “schedule,” “progress,” “possible,” “will,” “expect,” “estimate,” “may,” “approximate,” “could,” “plan,” or other similar expressions. Forward-looking statements in the Fleet Status Report include, but are not limited to, statements involving 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, and the cost and timing of mobilizations and reactivations. 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, the level of activity in offshore oil and gas exploration and development, exploration success by producers, 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 effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including our expectations regarding the timing, completion and anticipated benefits of the proposed business combination with Valaris Limited, an exempted company limited by shares incorporated under the laws of Bermuda, and those and other risks discussed in the Company's most recent Annual Report on Form 10-K for the year ended December 31, 2025, and in the Company's other filings with the SEC, which are available free of charge on the SEC's website at: . 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 of which speaks only as of the date of the particular statement. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or beliefs with regard to the statement or any change in events, conditions or circumstances on which any forward-looking statement is based, except as required by law. 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
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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)Contract backlog is defined as the maximum contractual operating dayrate multiplied by the number of days remaining in the firm contract period, including certain performance-based provisions for which achievement is probable, and excluding provisions for mobilization, demobilization, contract preparation, other incentive provisions or reimbursement revenues, which are not expected to be material to our contract drilling revenues. The contract backlog represents the maximum contract drilling revenues that can be earned considering the reported operating dayrate in effect during the firm contract period. ANALYST CONTACT: Sarah Davidson +1 713-232-7217 MEDIA CONTACT: Kristina Mays +1 713-232-7734 TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (Unaudited) Three months ended Nine months ended September 30, September 30, 2026 2025 2026 2025 Contract drilling revenues $ 937 $ 1,028 $ 2,984 $ 2,922 Costs and expenses
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Operating and maintenance 589 584 1,803 1,801 Depreciation and amortization 146 161 437 512 General and administrative 62 46 167 145 797 791 2,407 2,458 Loss on impairment of assets — (1,913) — (3,049) Gain (loss) on disposal of assets, net 3 (1) 5 8 Operating income (loss) 143 (1,677) 582 (2,577) Other income (expense), net Interest income 1 12 23 30 Interest expense (134) (154) (390) (382) Loss on retirement of debt — — (11) — Other, net (85) (78) (78) (101) (218) (220) (456) (453) Income (loss) before income taxes (75) (1,897) 126 (3,030) Income tax expense (benefit) (101) 26 (141) (90) Net income (loss) $ 26 $ (1,923) $ 267 $ (2,940) Earnings (loss) per share Basic $ 0.02 $ (2.00) $ 0.24 $ (3.23) Diluted $ 0.02 $ (2.00) $ 0.24 $ (3.23) Weighted-average shares outstanding Basic 1,120 961 1,116 911 Diluted 1,127 961 1,126 911 TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except par value) (Unaudited) September 30, December 31, 2026 2025 Assets Cash and cash equivalents $ 499 $ 620 Accounts receivable, net of allowance of $2 at September 30, 2026 and December 31, 2025 645 540
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Materials and supplies, net of allowance of $149 and $140 at September 30, 2026 and December 31, 2025, respectively 371 378 Assets held for sale — 24 Restricted cash and cash equivalents 285 377 Other current assets 189 142 Total current assets 1,989 2,081 Property and equipment 17,515 17,451 Less accumulated depreciation (5,277) (4,874) Property and equipment, net 12,238 12,577 Deferred tax assets, net 62 61 Other assets 779 923 Total assets $ 15,068 $ 15,642 Liabilities and equity Accounts payable $ 269 $ 242 Accrued income taxes 6 22 Debt due within one year 460 445 Other current liabilities 568 627 Total current liabilities 1,303 1,336 Long-term debt 4,558 5,212 Deferred tax liabilities, net 254 404 Other long-term liabilities 499 582 Total long-term liabilities 5,311 6,198 Commitments and contingencies Shares, $0.10 par value, 1,445 authorized, 141 conditionally authorized, 1,304 issued and 1,117 outstanding at September 30, 2026 and 1,204 authorized, 141 conditionally authorized, 1,204 issued and 1,102 outstanding at December 31, 2025 112 110 Additional paid-in capital 15,623 15,604 Accumulated deficit (7,193) (7,460) Accumulated other comprehensive loss (88) (146) Total equity 8,454 8,108 Total liabilities and equity $ 15,068 $ 15,642
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TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) Nine months ended September 30, 2026 2025 Cash flows from operating activities Net income (loss) $ 267 $ (2,940) Adjustments to reconcile to net cash provided by operating activities: Depreciation and amortization 437 512 Share-based compensation expense 27 26 Loss on impairment of assets — 3,049 Gain on disposal of assets, net (5) (8) Amortization of debt-related balances, net 29 36 (Gain) loss on adjustment to bifurcated compound exchange feature 41 (51) Loss on retirement of debt 11 — Loss on conversion of debt to equity — 99 Gain on disposal of investment in equity of unconsolidated affiliate (19) — Deferred income tax benefit (190) (146) Other, net 104 13 Changes in contract liabilities, net (88) (136) Changes in deferred costs, net 49 53 Changes in other operating assets and liabilities, net (89) (107) Net cash provided by operating activities 574 400 Cash flows from investing activities Capital expenditures (95) (95) Deposits to short-term investments (50) — Investment in equity of unconsolidated affiliates (2) — Proceeds from disposal of assets, net of costs to sell 31 44 Proceeds from disposal of investment in equity of unconsolidated affiliates 39 4 Proceeds from disposal of investment in debt of unconsolidated affiliate 13 —
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Net cash used in investing activities (64) (47) Cash flows from financing activities Repayments of debt (718) (450) Proceeds from issuance of shares, net of issue costs — 421 Other, net (5) (15) Net cash used in financing activities (723) (44) Net increase (decrease) in unrestricted and restricted cash and cash equivalents (213) 309 Unrestricted and restricted cash and cash equivalents, beginning of period 997 941 Unrestricted and restricted cash and cash equivalents, end of period $ 784 $ 1,250 TRANSOCEAN LTD. AND SUBSIDIARIES FLEET OPERATING STATISTICS Three months ended September 30, June 30, September 30, Contract Drilling Revenues (in millions) 2026 2026 2025 Ultra-deepwater floaters $ 590 $ 623 $ 696 Harsh environment floaters 347 343 332 Total contract drilling revenues $ 937 $ 966 $ 1,028 Three months ended September 30, June 30, September 30, Average Daily Revenue 2026 2026 2025 Ultra-deepwater floaters $ 442,100 $ 455,500 $ 460,200 Harsh environment floaters 504,300 510,000 467,100 Total fleet average daily revenue $ 462,600 $ 472,500 $ 462,300 Three months ended September 30, June 30, September 30, Revenue Efficiency 2026 2026 2025 Ultra-deepwater floaters 96.4% 95.7% 96.2% (1) (2)
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Harsh environment floaters 97.7% 99.5% 100.8% Total fleet average revenue efficiency 96.8% 97.0% 97.5% Three months ended September 30, June 30, September 30, Utilization 2026 2026 2025 Ultra-deepwater floaters 67.6% 72.6% 71.0% Harsh environment floaters 95.1% 94.2% 90.6% Total fleet average rig utilization 74.7% 78.2% 76.0% 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. 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. 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. Transocean Ltd. and subsidiaries Non-GAAP Financial Measures and Reconciliations Adjusted Net Income (Loss) and Adjusted Diluted Earnings (Loss) Per Share (in millions, except per share data) YTD QTD YTD QTD YTD Year ending December 31, 2026 09/30/26 09/30/26 06/30/26 06/30/26 03/31/26 Net income $ 267 $ 26 $ 241 $ 170 $ 71 Acquisition and restructuring costs 29 10 19 12 7 (3) (1) (2) (3)
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(Gain) loss on disposal of assets, net (6) (4) (2) 3 (5) Loss on retirement of debt 9 — 9 — 9 Benefit plan termination settlement cost 62 62 — — — Discrete tax items (230) (93) (137) (27) (110) Adjusted Net Income (Loss) $ 131 $ 1 $ 130 $ 158 $ (28) Diluted earnings per share $ 0.24 $ 0.02 $ 0.21 $ 0.04 $ 0.06 Acquisition and restructuring costs 0.02 0.01 0.02 0.01 — (Gain) loss on disposal of assets, net — — — — — Loss on retirement of debt 0.01 — 0.01 — 0.01 Benefit plan termination settlement cost 0.05 0.05 — — — Discrete tax items (0.20) (0.08) (0.12) (0.02) (0.10) Adjusted Diluted Earnings (Loss) Per Share $ 0.12 $ — $ 0.12 $ 0.03 $ (0.03) YTD QTD YTD QTD YTD QTD YTD Year ended December 31, 2025 12/31/25 12/31/25 09/30/25 09/30/25 06/30/25 06/30/25 03/31/25 Net income (loss) attributable to controlling interest $(2,915) $ 25 $(2,940) $(1,923) $(1,017) $ (938) $ (79) Restructuring costs 3 — 3 3 — — — Loss on impairment of assets, net of tax 3,036 — 3,036 1,908 1,128 1,128 —
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Gain on disposal of assets, net (4) (4) — — — — — Loss on conversion of debt to equity 99 — 99 75 24 24 — Gain on retirement of debt (3) (3) — — — — — Discrete tax items (179) 3 (182) (1) (181) (195) 14 Adjusted Net Income (Loss) $ 37 $ 21 $ 16 $ 62 $ (46) $ 19 $ (65) Diluted earnings (loss) per share $ (3.04) $ 0.02 $ (3.23) $ (2.00) $ (1.15) $ (1.06) $ (0.11) Restructuring costs — — — — — — — Loss on impairment of assets, net of tax 3.16 — 3.34 1.98 1.27 1.27 — Gain on disposal of assets, net — — — — — — — Loss on conversion of debt to equity 0.10 — 0.11 0.08 0.03 0.03 — Gain on retirement of debt — — — — — — — Discrete tax items (0.18) — (0.20) — (0.20) (0.22) 0.01 Dilutive effect, 4.625% exchangeable bonds due December 2029 — — (0.03) — (0.05) (0.02) — Adjusted Diluted Earnings (Loss) Per Share $ 0.04 $ 0.02 $ (0.01) $ 0.06 $ (0.10) $ — $ (0.10) Transocean Ltd. and subsidiaries Non-GAAP Financial Measures and Reconciliations Earnings Before Interest, Taxes, Depreciation and Amortization and Related Margins (in millions, except percentages)
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YTD QTD YTD QTD YTD Year ending December 31, 2026 09/30/26 09/30/26 06/30/26 06/30/26 03/31/26 Contract drilling revenues $ 2,984 $ 937 $ 2,047 $ 966 $1,081 Net income $ 267 $ 26 $ 241 $ 170 $ 71 Interest expense, net of interest income 367 133 234 (32) 266 Income tax expense (benefit) (141) (101) (40) 14 (54) Depreciation and amortization 437 146 291 148 143 EBITDA 930 204 726 300 426 Acquisition and restructuring costs 29 10 19 12 7 Gain on disposal of assets, net (6) (2) (4) — (4) Loss on retirement of debt 11 — 11 — 11 Benefit plan termination settlement cost 101 101 — — — Adjusted EBITDA $ 1,065 $ 313 $ 752 $ 312 $ 440 Profit margin 8.9% 2.7% 11.8% 17.7% 6.5% EBITDA margin 31.1% 21.7% 35.4% 31.0% 39.4% Adjusted EBITDA margin 35.7% 33.4% 36.7% 32.2% 40.7% YTD QTD YTD QTD YTD QTD YTD
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Year ended December 31, 2025 12/31/25 12/31/25 09/30/25 09/30/25 06/30/25 06/30/25 03/31/25 Contract drilling revenues $ 3,965 $1,043 $ 2,922 $ 1,028 $ 1,894 $ 988 $ 906 Net income (loss) $(2,915) $ 25 $(2,940) $(1,923) $(1,017) $ (938) $ (79) Interest expense, net of interest income 515 163 352 142 210 102 108 Income tax expense (benefit) (33) 57 (90) 26 (116) (155) 39 Depreciation and amortization 659 147 512 161 351 175 176 EBITDA (1,774) 392 (2,166) (1,594) (572) (816) 244 Restructuring costs 3 — 3 3 — — — Loss on impairment of assets 3,049 — 3,049 1,913 1,136 1,136 — Gain on disposal of assets, net (4) (4) — — — — — Gain on retirement of debt (3) (3) — — — — — Loss on conversion of debt to equity 99 — 99 75 24 24 — Adjusted EBITDA $ 1,370 $ 385 $ 985 $ 397 $ 588 $ 344 $ 244 Profit (loss) margin (73.5)% 2.4% (100.6)% (187.0)% (53.7)% (94.9)% (8.7)% EBITDA margin (44.8)% 37.5% (74.1)% (154.9)% (30.2)% (82.5)% 26.9% Adjusted EBITDA margin 34.6% 36.8% 33.8% 38.7% 31.1% 34.9% 26.9%
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Transocean Ltd. and subsidiaries Non-GAAP Financial Measures and Reconciliations Free Cash Flow and Levered Free Cash Flow (in millions) YTD QTD YTD QTD YTD Year ending December 31, 2026 09/30/26 09/30/26 06/30/26 06/30/26 03/31/26 Net cash provided by operating activities $ 574 $ 174 $ 400 $ 236 $ 164 Capital expenditures (95) (43) (52) (24) (28) Free Cash Flow 479 131 348 212 136 Debt repayments (718) (132) (586) (30) (556) Debt repayments, paid from debt proceeds — — — — — Levered Free Cash Flow $ (239) $ (1) $ (238) $ 182 $ (420) YTD QTD YTD QTD YTD QTD YTD Year ended December 31, 2025 12/31/25 12/31/25 09/30/25 09/30/25 06/30/25 06/30/25 03/31/25 Net cash provided by operating activities $ 749 $ 349 $ 400 $ 246 $ 154 $ 128 $ 26 Capital expenditures (123) (28) (95) (11) (84) (24) (60) Free Cash Flow 626 321 305 235 70 104 (34) Debt repayments (1,556) (1,106) (450) (210) (240) (30) (210) Debt repayments, paid from debt proceeds 492 492 — — — — — Levered Free Cash Flow $ (438) $ (293) $ (145) $ 25 $ (170) $ 74 $ (244) Transocean Ltd. and subsidiaries Non-GAAP Financial Measures and Reconciliations Net Debt and Net Debt to EBITDA Ratio
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(in millions, except ratios) 2026 09/30/26 06/30/26 03/31/26 Debt, total principal amount $ 4,975 $ 5,107 $ 5,137 Cash and cash equivalents (499) (509) (330) Restricted cash and cash equivalents (285) (286) (285) Net Debt $ 4,191 $ 4,312 $ 4,522 Adjusted EBITDA, trailing four quarters $ 1,450 $ 1,534 $ 1,566 Net Debt to EBITDA Ratio 2.9x 2.8x 2.9x 2025 12/31/25 09/30/25 06/30/25 03/31/25 Debt, total principal amount $ 5,686 $ 6,297 $ 6,654 $ 6,734 Cash and cash equivalents (620) (833) (377) (263) Restricted cash and cash equivalents (377) (417) (395) (428) Net Debt $ 4,689 $ 5,047 $ 5,882 $ 6,043 Adjusted EBITDA, trailing four quarters $ 1,370 $ 1,308 $ 1,253 $ 1,193 Net Debt to EBITDA Ratio 3.4x 3.9x 4.7x 5.1x 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, 2026 2026 2025 2026 2025 Income (loss) before income taxes $ (75) $ 184 $ (1,897) $ 126 $ (3,030) Acquisition and restructuring costs 10 12 3 29 3 Loss on impairment of assets — — 1,913 — 3,049
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Gain on disposal of assets, net (2) — — (6) — Loss on conversion of debt to equity — — 75 — 99 Loss on retirement of debt — — — 11 — Benefit plan termination settlement cost 101 — — 101 — Adjusted income before income taxes $ 34 $ 196 $ 94 $ 261 $ 121 Income tax expense (benefit) $ (101) $ 14 $ 26 $ (141) $ (90) Acquisition and restructuring costs — — — — — Loss on impairment of assets — — 5 — 13 Gain on disposal of assets, net 2 (3) — — — Loss on conversion of debt to equity — — — — — Loss on retirement of debt — — — 2 — Benefit plan termination settlement cost 39 — — 39 — Changes in estimates 93 27 1 230 182 Adjusted income tax expense $ 33 $ 38 $ 32 $ 130 $ 105 Effective Tax Rate 133.5% 7.8% (1.4)% (112.3)% 3.0% Effective Tax Rate, excluding discrete items 97.5% 19.4% 34.8% 49.9% 86.6% Our estimates change as we file tax returns, settle disputes with tax authorities, or become aware of changes in laws, operational changes and rig movements that have an effect on our (a) deferred taxes, (b) valuation allowances on deferred taxes and (c) other tax liabilities. (1) (2) (3) (1)
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Our effective tax rate is calculated as income tax expense or benefit divided by income or loss before income taxes. 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 or loss 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. (2) (3)