Matt Lyne: I’ll just reiterate that. This is a board and the management group that is laser-focused on generating significant cash into an upcycle and our philosophy is very, very simple. We will return it all to shareholders, unless there is clearly a more value-creative use for that cash. We’ve demonstrated that this year with what we’ve done, and we will continue to deliver on that going forward.
Kurt Hallead: All right. I appreciate that. Thank you.
Operator: [Operator Instructions] Our next question is from David Smith of Pickering Energy Partners. Please go ahead.
David Smith : Hey, good morning, and thank you.
A – Anton Dibowitz: Good morning Dave.
David Smith : Sorry if I missed it. Did you provide any color on the unplanned Q3 downtime for several floaters, if there was a common thread, or any lessons learned to help secure revenue efficiency in the future?
A – Anton Dibowitz: Yeah, Dave. Well look, I can give you some color. Obviously, the quarter and our downtime was below our expectations, and we’re focused every day on first, delivering safely, and second, delivering efficiently for our customers. These were largely three events on three floaters, subsea-related. And it’s a fact of this business that if you have an issue with a BOP, by the time you pull it up to surface, fix it and send it down, it’s a two-week event. So this quarter is not where we would want to be on our subsea downtime particularly, and revenue efficiency, but what I would point to is our track record. Year-to-date, 97% revenue efficiency across the fleet, and we will focus and make sure that we rectify those issues and continue to deliver in the manner that people have become accustomed to us.
David Smith : I appreciate that. And then switching over, when I look at the global fleet of jackups that are less than 25 years old, very few idle today. Very few are stacked, cold stacked, and I think you own most of them. Just given some of the leading edge rates we’ve seen pushing above 150,000 a day, certainly it seems like that kind of rate plus duration could provide attractive economics on the reactivation. So, I just wanted to ask if you also see it that way, and if there are any discussions on your radar that could see one or more of the jackups green-lit for reactivation in the next year.
Anton Dibowitz: I’ll let Matt start with the market, and then I’ll come back on the philosophy afterwards.
A – Matt Lyne: So, I think what we’re starting to see, and I think in some of my prior remarks I mentioned the Middle East dominating jackup consumption in the past years, and now we’re starting to see the resurgence of Asia. And one of the things that makes it really interesting is the duration, the term of the opportunities that they are suggesting, and also pushing out their contract lead times, because obviously there is some time required in order to reactivate and move the rates to the correct market. So we’re seeing signs of those opportunities materialize, and I would say on a general basis we are bidding our stacked rigs more often these days to fit certain opportunities where we can provide guaranteed availability.
They will obviously take a secondary position to increasing the utilization of our active fleet, but as you saw in the prepared remarks, with limited availability in ‘24 and that utilization continues to improve, that’s going to put pressure on evaluating and pushing forward with our stacked jackup fleets.
Anton Dibowitz: Let me just emphasize a couple of points that Matt made. The first is about lead time. So, generally the reactivation of a jackup, and it’s a shorter cycle market between tender and actual contracting, so you need the lead time in order to reactivate a jackup. The second thing is simply a capital allocation question for us. Up until now it has been much more value accretive for us to enter into flow-to-reactivations based on where the day rates are and the payback times. That being said, you’re absolutely right now that jackup rates are increasing, and the durations of those contracts, which gives you a better ability to recover that reactivation cost, which you put in the order depending on the rig of $20 million to maybe $30 million, depending on specifications.
