Keelan Adamson: Yes, it’s Keelan again. The inspiration essentially is repositioned into the Las Palmas area. She’s not stacked. She’s idle. We’re obviously putting her into plenty of opportunities, particularly in the Africa and Asia regions. The DD3 is idle in Aruba and waiting for its next opportunity. But I’ll let Roddie maybe add some color to the other opportunities.
Roddie Mackenzie: Yes. So we do have several things there, but we’re looking to make sure that we get the right opportunity to put the rigs to work long-term rather than moving them to short term to work. So, at the moment, we’re quite comfortable keeping them where they are until they get the right opportunity.
Eddie Kim: Got it. Got it. Thank you. And if I could just squeeze one last one. Just on the diluted share count this quarter. It looked like a fairly material increase to about 955 million shares. Could you just comment on what drove that increase this quarter?
Jeremy Thigpen: Yes, Andy, we can take that offline and you could speak to Alison, she can walk you through it. It’s a pretty lengthy response.
Eddie Kim: Okay. Understood. Great. Thank you all for the color. I’ll turn it back.
Operator: And we’ll take our next question from Doug Becker with Capital One. Your line is open.
Doug Becker: Thank you. Jeremy, you mentioned the Atlas getting the 15,000 work at 505,000 a day. When do you expect that rig to transition to the higher day rate? And how do you view the prospects for 20,000 work potentially next year?
Jeremy Thigpen: Hey, Doug. Good to hear from me. I’m going to hand that to Roddie because he is neck deep in this conversation right now.
Roddie Mackenzie: Yes. So we’ve got a lot of interest in that rig. And yes, so this was a prospect that we had, had with the current operator for some time. So it looks like a really good rate, but I have to say it was set a while ago when we go into negotiations on and so the transition for her to go to the 20,000 is probably going to take place in the next contract. So basically, we finish out the one that we’re currently on in the Shenandoah development. And then we go into this additional kind of 240 to 360-day program. And I think after that, we’re transitioning into the much more attractive work, so that’s good. And that’s basically the second rig in the Gulf that’s got above a high — sorry, a 500 rate so with the out guard and the Atlas now contracted above 500, we actually hear that many of our competitors are at the same level or even higher, and we expect within the next few months that there will be four to five additional awards in the Gulf of Mexico above 500,000 a day.
Doug Becker: It’s definitely encouraging. Maybe just could you expand on the BOP issues with the Titan and really kind of thinking about in the context of is there a similar risk with the Atlas?
Jeremy Thigpen: Yes. So the BOP, obviously, as I said in the call, the Titans BOP is the first POP is deployed and the rig is operating fully since mid-March. The issue we found was to a particular component on the second BOP. Clearly, that wasn’t an issue on the first BOP and so we’ve taken those components off the stack, we brought them back to town to work with our OEM provider to disassemble and inspect, and we should learn more in the next couple of weeks as to what that particular issue is. I have no — based on what we’ve seen in the operation of the other stack. We have no concerns as to whether that’s anything that would spread the other stacks. It’s simply a component reliability issue that we’ll address and return to the rig.
Doug Becker: Sounds good. And Mark, congratulations.
Mark Mey: Thanks, Doug.
Operator: And we’ll take our next question from Fredrik Stene with Clarkson Securities. Your line is open.
Fredrik Stene: Hey team. Thanks for taking my question. You talked a bit about the market here. I was also on the back of those discussions already. Wanting to hear what you’re thinking about 70s versus 6G and how the different types of rigs are being approached in the market. You talked about repositioning the inspiration. You talked about some extra work potentially for the indictors et cetera, but also how you’re managing your own fleet within those two subsegments, keeping the Atlas and the Titan kind of away from that discussion for now. Are there any large discrepancy or bifurcation in terms of how rates are bid? Or is it all about having one rig at the right place at the right time that will still yield good rates also for 60 rigs in the future.
Mark Mey: Yes. So I think you see — so several of our 6 gen rigs have got very attractive rates just in the right markets. So if a market requires a certain specification and the 6 gen rigs qualify for that, then they do achieve very well. At the moment, there’s a lot of activity around the high specification rigs. So specifically the Gulf of Mexico and some places in West Africa, that’s where you’ve seen the rates really accelerate because the availability of these high-specification units is becoming more and more scarce. And the net effect of that is essentially we’re securing very solid rates on the high specification 7th gen units, but that also trickles down to the 6th gens when they end up being the only ones that left. So I think you’re going to see a pretty positive outlook for those rigs in the future. But at the moment, we’re really seeing a lot of activity from the operators around securing the highest specification assets they can get their hands on.
Jeremy Thigpen: I think if you look back over the last couple of years, our approach to the market and our strategy around day rates have proven effective. We looked at our 1,400 tonne rigs, the highest looked rigs in the market other than the Atlas and the Titan and started setting day rates with those rigs. And it’s lifted all the 1,250 tonne rigs for now. Our competitors are also pushing for $500,000 a day and then some — and then you’ll definitely see a step change once we move to the 20K — the new 20K contracts on the Atlas and the Titan.
Fredrik Stene: That’s very helpful. Also, you mentioned quite a lot of long-term opportunities that you foresee will materialize now over the next couple of months or quarters. There’s been, I think, different approaches with different owners as to how we should price long-term work. Some will be accept a lower rate just because they would like the visibility of a longer term contract, while others — and maybe you’re solving the best example of that has been very firm on rate expectations also for long-term work. Do you expect a wide spread in the awards that we’re going to see going forward? And I guess my question relates to should the market expect to be disappointed by some of these there points? Or should we see them all pulling in the same direction or being 450-plus in almost all our words?
