Eddie Kim: Got it. Got it. Thanks for that color. Just shifting over the floater market here, Anton, in your prepared remarks, you said you expected two to three-year contracts to be awarded at or close to leading-edge rates, which is great to hear. But I assume that that comment is more in reference to hot rigs currently working. How much of a discount do you expect we could see for sideline rigs winning some of that longer-term work?
Anton Dibowitz: I don’t think we can expect to see a discount for sideline rigs. I can’t talk for what other people do, but personally, how we view the market, the 11, the 13 and the 14 are the highest-specification assets available on the market, two VOPs. We’ve seen the market for seventh-generation rigs. We see strong demand for them over the next few years. So I don’t think. Yes, leading-edge rates, and we were talking about kind of term, two- to three-year contracts are in that mid- to high-400s range with potential, and we’ve seen that. It’s great to continue to gradually move higher, as we’ve said, with average day rates, moving from the mid-400s to the 480s in the first four months of the year, and we think they’ll continue to move higher as the supply-demand balance increases, because there’s more incremental demand coming out, and we’re looking forward to finding the right opportunities for the 11, 13 and 14.
Eddie Kim: Got it. Great. Thank you, Anton. I’ll turn it back.
Operator: Thank you. The next question is from David Smith [ph] with Heikkinen Energy Advisors. Please go ahead.
Unidentified Analyst: Hey, thank you. I had some technical difficulties, so hopefully I’m not asking the same question someone else did, but a question for Chris. Just circling back to the guidance, I wanted to make sure I understood correctly that 2024 EBITDA guidance is maintained at that 500 to 600 range, but would need incremental work for the DS-10 and the DPS-5 to get to the midpoint. So I wanted to make sure I heard that correctly, but also wanted to ask about your comfort level for the low end of guidance, if minimal incremental work for those rigs materializes.
Anton Dibowitz: Yeah, David, it’s exactly right. We’re maintaining our guidance range, $500 million to $600 million dollars. To get to the midpoint of that range, we need to get some incremental work on the 10 and the 5. We do assume those rigs, but we need some incremental work to get to the midpoint of that range. So that’s what we’re focused on. Matt and his team and the whole organization is laser focused on securing that work, and we’re active discussions with customers for it.
Unidentified Analyst: Okay. If Mexico work doesn’t materialize in the second half for the DPS-5, would you look at that rig as a candidate for US Gulf, well intervention and P&A work? Not a lot of rigs in the region are good candidates for midwater work, so that might be an opportunity.
Anton Dibowitz: I’ll let Matt talk about the capability of the rig, because it is a great asset, and then maybe I’ll come back on your question.
Matt Lyne: Thanks for the excellent leading question. And I think for the DPS-5, it’s both moored and DP capable. So it broadens the market opportunities for that rig, both in US and Mexican Gulf. The program it’s working on right now with E&I, it’s doing one well in moored capability and the other one in DP. So it provides quite a flexible opportunity. There are a number of opportunities on the well intervention side, so that market is proving to be quite interesting in the US Gulf. There are also continued opportunities with P&A and traditional drilling. And I think you will look at our track record, similar situation to last year, we’ve been able to fill those opportunities that keep the rig fully active through the year.
The next key is what’s next. So there’s longer term opportunities in the Gulf of Mexico region. There were some longer term opportunities that shifted from 2024 to 2025. That we had were focused on, that are likely to return, that are attractive, but we’re also marketing the rig internationally. So there’s a number of longer term opportunities exist across the Atlantic that are quite attractive that provide us the revenue visibility for that rig on a long term and low cost basis.
Anton Dibowitz: So I mean 2024 is 97% underwritten from a revenue perspective. Clearly we have work to do on the DS-10 and also the DPS-5. But I will remind we were in exactly the same position with the DPS-5 last year at this time. And Matt and the team did a great job of screening together work near constant work in the second half of the year and delivering on those rigs. So we’re just going to have to have some pieces fall in place and see what we can do. We are modeling some idle time on those rigs, but we clearly have some work to do as Chris said to deliver the midpoint of our guidance.
Unidentified Analyst: Appreciate the color. Thank you. I’ll circle back.
Anton Dibowitz: Thanks.
Operator: Thank you. The next question comes from Fredrik Stene with Clarksons Platou Securities. Please go ahead.
Fredrik Stene: Anton and team hope all is well. I have two questions for you today and I just want to follow-up a bit on what David asked about the guidance. Anton you said that 97% of the revenue was underwritten. Is that on the low end of the revenue guidance of 2.97% of $3.2 billion? Just wanted to get the details correctly.
Anton Dibowitz: At the midpoint.
Fredrik Stene: At the midpoint. Okay, super helpful. Are you — when you think about the DPS-5, DS-10 in relation to the comments around or in your prepared remarks about the rates potentially being a bit more volatile for short-term work? How are you balancing that when you’re feeding these two rigs forward? Should we expect to see rates that would be deemed materially below leading-edge rates? Or should we see something that’s at least for the DS-10 still in the 400s?
Anton Dibowitz: I go back to my comments and this is more a general market comment, but I think it applies broadly and including to us. Term programs when we talk about term programs two to three years in the mid to high 400s into the 500s for the right opportunity. I think where you see that range is more — look we look at getting the highest day rate we can to get the best economics on every job that we go after. But I think what you can see is if you’re talking about gap fill bridging, we’re focused on getting the right and fixing rigs long-term where we can. And then you work backwards from that and talk about the gap fill that you may be looking for. And I think that’s where you may see more of a variety and it may make economic sense for you to take a bridge program and look at what economics you can achieve on that. That’s how we think about it.
Operator: Mr. Stene your line is open.
Fredrik Stene: Can you hear me? Okay. Perfect. Sorry, Anton I dropped out actually when you started your answer. So I’ll look at the transcript.
Anton Dibowitz: We can follow-up with you off-line.
