Transocean Ltd.: On the road with RIG, and the latest S/D stats on the deepwater rig market

Research evidence excerpt

Transocean Ltd.: On the road with RIG, and the latest S/D stats on the deepwater rig market

Equity Research

U.S. Energy Services & Technology

30 June 2026

Transocean Ltd.

On the road with RIG, and the

latest S/D stats on the deepwater

RIG OVERWEIGHTrig market

U.S. Energy Services & POSITIVE

We hosted mtgs with RIG's CEO/CFO last wk. The offshore Technology Price Target USD 8.00

thesis remains intact (despite the recent decline in oil) with Price (29-Jun-26) USD 5.04

deepwater rig utilization >90% by early next year; RIG focused Potential Upside/Downside +58.7% Source: Bloomberg, Barclays Research

on deleveraging, closing the VAL deal (we estimate 4Q).

Meanwhile, rig fundamentals remain strong in our view. U.S. Energy Services & Technology

Eddie Kim

+1 212 526 9920

We hosted meetings with RIG CEO Keelan Adamson and CFO Thad Vayda last week and came eddie.kim@barclays.com

away more positive on RIG shares as the offshore thesis remains on track despite the recent BCI, US

decline in oil prices (which, in our view, is the primary driver of the 28% share price decline (vs.

J. David Anderson, CFAOIH -16%) since oil prices peaked on April 29th). Industrywide deepwater utilization is still

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expected to exceed 90% by early next year, setting the stage of dayrate/pricing increases in jdavid.anderson@barclays.com

2027. Meanwhile, RIG is intently focused on deleveraging the balance sheet (still on track for BCI, US

1.5x net leverage within two years post closing of the VAL deal, with the potential to reduce even

Andre Schlatterfurther to 1.0x) and closing the Valaris acquisition, which we now expect to take place in 4Q (still

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in line with RIG's initial target of closing in 2H26). From a deepwater rig fundamentals andre.schlatter@barclays.com