Diamond Offshore extends contract with BP'S U.S. Gulf

Diamond Offshore Drilling, Inc. has just announced a two-year contract extension with a subsidiary of BP in the U.S. Gulf of Mexico for the Ocean Blackhornet, starting in February 2025. This extension adds approximately $350 million to the company's backlog. Bernie Wolford, Jr., the president and CEO, emphasized the significance of this contract in deepening their relationship with a key client and contributing to the company's 2025 and 2026 backlog and future cash flows.

The announcement comes on the heels of another recent award for the Ocean Blacklion, further bolstering the company's outlook. This news indicates a positive trend for Diamond Offshore, as it secures more contracts and increases its backlog, demonstrating its continued success in the offshore drilling industry.

Today the company's shares have moved 1.2% to a price of $11.99. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.