UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): April 7, 2008
TRANSOCEAN INC.
(Exact name of registrant as specified in its charter)
| Cayman Islands | 333-75899 | 66-0582307 | ||
| (State or other jurisdiction of incorporation or organization) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
| 4 Greenway Plaza Houston, Texas 77046 |
77046 | |
| (Address of principal executive offices) | (Zip code) | |
| 70 Harbor Drive Grand Cayman, Cayman Islands |
KY1-1003 | |
| (Address of principal executive offices) | (Zip code) | |
Registrant’s telephone number, including area code: (713) 232-7500
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 7.01 | Regulation FD Disclosure. |
On April 7, 2008, Robert L. Long, Chief Executive Officer of Transocean Inc. (the “Company”), will present the information furnished in Exhibit 99.1 to this report to participants of the Howard Weil Energy Conference in New Orleans, Louisiana. Exhibit 99.1 is incorporated in this Item 7.01 by reference.
The information furnished pursuant to Item 7.01 of this report, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, nor will it be incorporated by reference into any registration statement filed by Transocean Inc. under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. The furnishing of the information in this report is not intended to, and does not, constitute a determination or admission by Transocean Inc. that the information in this report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of Transocean Inc.
| ITEM 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits. The following exhibit is furnished pursuant to Item 7.01: |
| Exhibit Number |
Description | |
| 99.1 | Howard Weil Conference Information. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| TRANSOCEAN INC. | ||||||
| Date: April 7, 2008 | By: | /s/ Eric B. Brown | ||||
| Eric B. Brown Senior Vice President, General Counsel and Assistant Corporate Secretary | ||||||
INDEX TO EXHIBITS
| Exhibit |
Description | |
| 99.1 | Howard Weil Conference Information. | |
 April 7, 2008 New Orleans, LA Howard Weil 2008 Energy Conference Exhibit 99.1 |
 Forward Looking Statement The statements described in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements which could be made include, but are not limited to, statements involving prospects for the company, expected revenues, capital expenditures, costs and results of operations, synergies, market outlook, revenue backlog for the company and other drillers, contract opportunities and commitments, operational performance, rig demand, rig capacity, dayrates, rig reactivations, rig upgrades, newbuild and acquisition opportunities, uses of excess cash, fleet marketing efforts, rig mobilizations and planned shipyard programs. Such statements are subject to numerous risks, uncertainties and assumptions, including but not limited to, uncertainties relating to the level of activity in offshore oil and gas exploration and development, exploration success by producers, oil and gas prices, rig demand and capacity, drilling industry market conditions, possible delays or cancellation of drilling contracts, work stoppages, operational or other downtime, the company's ability to enter into and the terms of future contracts, the availability of qualified personnel, labor relations, future financial results, operating hazards, political and other uncertainties inherent in non-U.S. operations (including exchange and currency fluctuations), war, terrorism, natural disaster and cancellation or unavailability of insurance coverage, the impact of governmental laws and regulations, the adequacy of sources of liquidity, the effect of litigation and contingencies and other factors discussed in the company's most recent Form 10-K for the year ended December 31, 2007 and in the company's other filings with the SEC, which are available free of charge on the SEC's website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. 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 forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company’s web site at www.deepwater.com. 2 |
 3 Positioned for superior performance World’s largest offshore drilling company Diversified revenue sources Substantial contract revenue backlog Positioned to benefit from strong drilling markets Outstanding shareholder value creation Key Investment Highlights |
 A Successful Business Model 4 Growth through Acquisitions, Newbuilds, Mergers (No speculative newbuilds) Differentiated by: - Fleet composition - Technology and technical capability - Organization - People - Multinational - ADTI / CMI Capture Long- Term Contracts to Create Base-line Cash Flow |
 Effective Execution Creates Success 5 High quality, consistent and safe drilling services Continuous improvement Lateral learning Adapting technology Engineering in safety Proactive solutions for customers World class project management expertise Focus on people |
 Largest Worldwide Rig Fleet (1) 39 11 10 8 25 3 21 6 65 44 44 13 28 7 8 4 4 12 0 20 40 60 80 100 120 140 RIG NE ESV DO PDE SDRL High-Spec Floaters Midwater Floaters Jackups Newbuilds 137 62 49 46 45 22 6 2 3 1 2 1 |
 BUs Comparable in Size to Competitors (2) 7 25 54 50 58 45 44 42 10 0 20 40 60 80 AMU EAU APU NE ESV DO PDE SDRL Rig Count |
 Strong Presence in all Major Markets (3) Newbuilds/Upgrades Asset Newbuild Floaters JV Floaters Sedco 706 Upgrade 6 2 1 South America Asset Floaters Jackups 7 2 Total 9 U.S. GoM & Canada Asset Floaters Jackups 15 - Total 15 Middle East/ Mediterranean Asset Floaters Jackups 1 20 Total 21 West Africa Asset Floaters Jackups 16 13 Total 29 North Sea/Norway Asset Floaters Jackups 14 7 Total 21 India Asset Floaters Jackups 6 7 Total 13 Asia/Australia/ Sakhalin Asset Floaters Jackups 4 16 Total 20 Total Fleet Asset Total Floaters Jackups Newbuilds/Upgrades 63 65 9 Total 137 8 |
 Market continues to be supply constrained 80 newbuilds on order (4) 69 percent contracted (4) Only a few midwater (for Norway) (4) Demand outlook remains very strong Development driving growth in established deepwater plays Continued exploration success in developing basins (Angola, Brazil,
India) Emerging demand in Mexico, SE Asia & Libya Shortage of rigs for exploration drilling Full utilization is expected through at least 2010 Growth beyond 2011 predicated upon exploration success Interest in forward start contracts A few 10 year contracts being discussed Record high dayrates continue to be signed Floater Demand Outstrips Supply 9 |
 Most Floater Deliveries are Contracted (5) 10 0 2 4 6 8 10 12 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 0 14 28 42 56 70 84 Contracted Floaters Uncontracted Floaters Running Total |
 Demand continues to grow Substantial hydrocarbon resources remain in many shallow water areas Exploitation drilling, increased recovery rates, gas Supply has responded to strong prices, dayrates unlikely to climb further Supply growth is a source of concern 28 newbuilds/upgrades delivered since January 2006, largely on-time (4) 75 newbuilds remaining to be delivered (4) Recent rig orders from non-traditional competitors Term contracts available Jackup Market Stable Near-Term 11 |
 Jackup Deliveries (5) 12 0 2 4 6 8 10 12 14 16 18 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 0 9 18 27 36 45 54 63 72 81 Contracted Jackups Uncontracted Jackups Jackup Running Total |
 A Targeted Jackup Strategy 13 Position fleet in growth regions Middle East Norway Capture significant market share Serve a variety of customers NOCs Majors Independants Improve fleet quality through acquisitions and divestitures |
 Diversified Revenue Sources 32% 28% 29% 8% 3% Deepwater Midwater Jackups ADTI Other 50% 17% 33% Majors National Oil Independents By Asset Class (6) By Customer Proforma Revenue YTD September 30, 2007 $8,047 million 14 |
 Historical Operating Margin Improvement (7) 15 (US$ billions) 0 1 2 3 4 5 6 7 2003 2004 2005 2006 2007 5% 15% 25% 35% 45% 55% Revenue Operating Income Operating Margin |
 8.7 3.8 2.7 6.1 2.5 8.5 0.0 2.0 4.0 6.0 8.0 10.0 2008 2009 2010 2011 2012 2013-16 Strong Backlog Creates Visibility Total Contract Revenue Backlog - $32.3 billion (8) (US$ billions) 16 |
 Midwater Fleet (25 Rigs) Percent of Fleet Under Contract Commitments (3) 90% 10% 63% 37% 5% 95% High-Specification Floaters Fleet (47 Rigs (10) ) 2008 (Remaining) 2009 86% 14% 2010 65% 35% 33% 67% Jackups Fleet (65 Rigs) 85% 15% 46% 54% 20% 80% (9) 17 Committed Uncommitted |
 Key Investment Highlights 18 Positioned for superior performance World’s largest offshore drilling company Diversified revenue sources Substantial contract revenue backlog Positioned to benefit from strong drilling markets Outstanding shareholder value creation |
 Appendix 19 (1) Sources: Latest company-issued fleet status reports. “High-Spec” and “Midwater” Floaters classifications are as described in RIG’s March 10, 2008 Fleet Status Report. Excludes tenders, land rigs, managed rigs and rigs held for sale, where applicable. Newbuilds are inclusive of floaters and jackups to be delivered subsequent to January 1, 2008. (2) Sources: Latest company-issued fleet status reports. Excludes tenders, land rigs, managed rigs, rigs held for sale and newbuilds, where applicable. (3) As of March 10, 2008. Excludes two swamp barges, two non-drilling units, two managed floaters and five rigs that are held for sale. (4) Per various public documents as of February 29, 2008. (5) Newbuild & Upgrade Delivery Schedule per various public documents as of February 29, 2008. (6) “Deepwater” includes floater assets with a water depth capability > 4,500 feet; “Midwater” includes floater assets with a water depth capability < 4,500 feet; “Other” includes Integrated Services, Oil & Gas (CMI) & the company’s other rigs. (7) Sources: 2003 through 2007 RIG Form 10-K’s. (8) Calculated as of March 1, 2008 based upon data included in the Company’s March 10, 2008 Fleet Status Report. Represents only operating dayrate from firm contracts. (9) Commitment time includes operating, mobilization/ demobilization, and scheduled shipyard time as well as priced options; excludes letters of intent. (10) Includes seven newbuild drillships and 1 newbuild semisubmersible from the date on which construction is expected to be complete. |