Contract AchievementsThe contract extension on the Deepwater Asgard in the US GoM at a dayrate of around $504K, with an all-in rate closer to $534K, indicates a strong revenue potential for the company.
Financial OutlookWith the company trading at a multiple below consensus estimates for future EBITDA, and with pricing above assumptions, there is an opportunity for the company to aggressively deleverage over the coming years.
Market DynamicsThe Asgard one-year contract is the first $500k+ term contract in the current cycle, suggesting an upward trend in pricing for high-end drillship contracts.