Fredrik Stene: Yeah. Okay. Good. Just I have one more in terms of contracting strategy and how to think about rates going forward. And I totally understand that you might not want to reveal your strategy. But in general, we have some sideline capacity. You’re mentioning the DS-11, 13, 14. There are some other rigs that have been taken out from yard. So clearly there is new and high spec quality wanting to get in market here. In terms of high-spec assets versus lower spec assets, you could either argue that there will be a discrepancy in rates just because of the specs or that they will tend toward each other as the market tightens and customers won’t have any choice in terms of choosing the best rigs. How are you thinking about that? And I’m talking particularly for 2024 and 2025 more than in the long-term?
Anton Dibowitz: Look, I can’t talk for others but I can tell you what our philosophy is and I did allude to it on an earlier question. 12 of our 13 ships or seventh generation and that’s a great position to be in, including the 11 to 13 and 14 these are the highest spec rigs that are on the sidelines and we can deploy for the right opportunity. We see strong pipeline of customer demand especially in 2025 and 2026 and we will maximize the economics that we can work those rigs on as we see the opportunities.
Fredrik Stene: Perfect. And finally, any new thinking around any of your other stacked assets, EPS III, EPS VI, jack-ups? Or are they going to be assets for now?
Anton Dibowitz: Look, as it is now, there is a preference in the market right now from our customers for high-specification assets. From a capital allocation perspective, it’s made more sense for us to deploy capital towards our high-spec drillship fleet. That’s what we’ve been focused on over the last couple of years. Our focus is on the 11, 13 and 14. But as the supply-demand balance continues to tighten over the next few years, what we may see there are only 10 as we see it from effective reactivation candidates sitting on the sidelines and the high-specification assets. As that market continues to tighten over the next few years, we could likely see more opportunities for semis to come back to the market. But right now is on the drillships.
Fredrik Stene: Perfect. Thank you very much for taking my questions. Have good day.
Anton Dibowitz: Absolutely. Thanks, Fredrik.
Operator: Thank you. The next question is from Kurt Hallead with Benchmark. Please go ahead.
Kurt Hallead: Hey, good morning, everyone.
Anton Dibowitz: Good morning, Kurt.
Kurt Hallead: So Anton, I wanted to follow up. You referenced the prospect of an increase in the cadence contract awards as we go into the second half of this year. Just wondering, if you can maybe give some additional context around that in terms of maybe a how do you quantify is 20% — 10%, 15%, 20% increase just some context around how you’re looking at it?
Anton Dibowitz: I don’t know if we can quantify in percentage terms. I mean, you mean some talk about seasonality and pace of contracting. What I can say is that, the pace of contracting and the number of tenders that are out there are really solid for 2024. You may see fewer awards in a certain quarter, and given that we expect there to be a good number of awards points to when we look at the tenders that are out there, an increase of pace because people are looking for rigs in the second half of the year. And part of that is driven by these are a good number of long-term programs. Some of them are in multiple jurisdictions, which means the operator of the program needs to get partner approvals in a number of countries and longer driving programs with more complexity, take a longer time to process.
Progress can move forward and backwards by quarter depending on how they make progress. But clearly, based on the number of tenders that we see that are active — that are out there that we expect to be completed with the pace of tendering award activity to increase over the remainder of the year.
Kurt Hallead: Okay. Appreciate that color. Follow-up I have then is on the DS-11, 13 and 14 and a couple of parts to the question, right? First one is in the context of those three, can you just remind us which one might be the one more likely to go first? And then, second dynamic is given elements related to shipyard capacity labor supply chain dynamics. What’s the fees a number of rigs in a given year? You got three. So how many of those could you seasonably activate in a given year?
Anton Dibowitz: I mean, 11, 13 and 14 are all fantastic assets. They’re all — they’re almost interchangeable. The customer decides what assets they want. One customer may prefer a rig like the 11 that has a track record and it’s worked before and some customers prefer a new shiny car right off the lot, right, the 13% and the 14%. So for us, they’re somewhat fungible, but we will focus on getting all three of them to work. As far as capacity, we’ve done four floater reactivations in parallel before and done it very successfully. One of the true strengths of this organization is our ability to execute complex and reactivation projects, leading the industry, as you’ve seen on the DS-8, and I fully expect the team will deliver the DS-7 in the same way. So we feel very comfortable with our ability to effectively reactivate those rigs, when we find the right opportunities, whether it’s serially or in parallel.
Kurt Hallead: Okay. Great. Appreciate that. Thanks.
Operator: Thank you. The next question is from Doug Becker with Capital One. Please go ahead.
Q – Doug Becker: Thank you. Just following along the same tenor of questions, how would you frame the likelihood of hearing about a contract for one or more of those rigs this year and potential for a JV with an operator for one of these rigs.
Anton Dibowitz: I’m not going to get into speculation of percentages. I mean, what I would say is, we will look at traditional or nontraditional ventures, if it is accretive and makes economic sense for our shareholders. We have critical mass of rigs working. We’ve got three attractive assets in a growing and increasing demand market that we can deploy on the right contract, with the right customer, at the right time. And we’re going to be very focused on finding, given what we see with the demand profile over the next couple of years, finding the right job for those assets. If that comes — we’re in active discussions on all three of those assets, right now, if it makes economic sense and we’ve been very clear on having meaningful returns on reactivation costs, and it makes sense for us and our shareholders absolutely, will execute on.
But we’re also willing to be patient and wait for the right opportunity to put those assets back to work, because they are the best assets available on the sideline.
