Seadrill Limited has completed its acquisition of Aquadrill LLC. As a result of the transaction, Aquadrill became a wholly owned subsidiary of Seadrill. In connection with the completion of the transaction, Seadrill issued an aggregate 29,866,505 common shares to former Aquadrill unit holders and equity award holders, resulting in issued share capital of $798,665.03 divided into a total of 79,866,503 Seadrill common shares, each with a par value of $0.01, validly issued, and fully paid and non-assessable.

The combination creates an industry-leading offshore drilling company, with a modern and high specification fleet. The Company will have a streamlined cost structure and will be well-positioned for further growth given its stronger credit and liquidity profile, providing attractive cash flows.

“We are delighted to have completed the acquisition of Aquadrill, welcoming its fleet back into the Seadrill family. The management team is focused on efficiently and rapidly integrating the two companies in order to realize the synergies arising from the transaction. Today is a crucial milestone for our Company and we firmly believe that we are well-placed for this industry up cycle. We remain optimistic in the continuing development of the rig market and our ability to deliver further value to our shareholders,” Simon Johnson, Seadrill’s President and Chief Executive Officer, said.

Strategic Rationale

The combination of Seadrill and Aquadrill presents a compelling strategic rationale for all stakeholders:

• Creation of a leading offshore driller with best-in-class fleet: The Company will be in a strong position to serve a broader range of customers, with one of the youngest and most technologically advanced fleets in the industry, and a combined backlog of $2.6 billion. The Company will own 12 floaters (including seven 7th generation drillships), three harsh environment rigs, four benign jack-ups, and three tender-assisted rigs. Additionally, seven rigs will be managed under strategic partnerships.
• Increased exposure and upside to the improving market: The Company will have a diversified portfolio of contract coverage, with additional active fleet capacity to deploy in a rising market environment across critical basins in the Golden Triangle.
• Significant synergy potential: The Company will be uniquely positioned to rapidly integrate and realize identified and achievable synergies of at least $70 million annually on a run-rate basis. All synergies are expected to be fully realized within two years of closing the transaction.
• Strong cash flow generation and further strengthened balance sheet: The Company should benefit from an enhanced cash flow profile and a strengthened balance sheet, with significant credit and liquidity improvement, and with access to a potentially lower cost of capital.

Governance and Leadership

Seadrill will continue to be domiciled in Hamilton, Bermuda. As previously announced, Julie Robertson and Simon Johnson will continue in their respective roles as Chair of the Board of Directors, and President and Chief Executive Officer. In connection with the completion of the transaction, Harry Quarls and Jonathan Swinney were appointed to fill the two new positions on Seadrill’s Board of Directors that were approved at Seadrill’s annual general meeting of shareholders on March 21, 2023. For more information relating to these new directors.