New York, Feb 11, 2026, 07:05 EST — Premarket
Transocean Ltd shares hovered near $5.44 in U.S. premarket trading Wednesday, following the offshore driller’s announcement of $184 million in new contract backlog related to operations in Norway. (GlobeNewswire)
The update arrives as investors continue processing Transocean’s move to acquire Valaris, a bolder play that might shake up the offshore drilling hierarchy. Backlog — revenue already contracted but not yet booked — remains one of the scarce metrics traders rely on in an industry where rigs often sit idle when demand dips.
On Monday, Transocean and Valaris announced they would merge in an all-stock deal valued at around $5.8 billion, forming a combined fleet of 73 rigs and a pro forma enterprise value near $17 billion, according to the companies. Transocean CEO Keelan Adamson described the timing as “well-timed,” while Valaris CEO Anton Dibowitz called the merger a move to establish a “new industry leader.” (GlobeNewswire)
On Wednesday, Transocean announced contract fixtures for two harsh-environment semisubmersibles—floating rigs designed for tough seas—in Norway. The Transocean Encourage secured a seven-well extension, expected to boost firm backlog by roughly $152 million. Meanwhile, the Transocean Enabler picked up two one-well options worth around $32 million, keeping it busy through December 2027. (SEC)
During the investor call unveiling the deal, Adamson told analysts that “our debt level negatively impacts our equity value,” pushing the merger as a way to boost cash flow for paying down debt. He repeated a goal of hitting a leverage ratio around 1.5 times — that’s debt compared to earnings — within two years of closing, leaning on a pro forma backlog topping $10 billion.
Transocean’s stock has been volatile following the merger announcement. Shares jumped 5.9% on Monday but then dropped 4.7% Tuesday, closing at $5.44, according to StockAnalysis.
The deal comes amid a fresh wave of consolidation in oilfield services, driven by producers cutting back on new well investments and pushing suppliers for cheaper contracts. Transocean said acquiring Valaris could ease its hefty debt, which was $4.85 billion as of September 30. The company also projected $450 million in cost savings through 2026. (Reuters)
The all-stock merger faces some clear hurdles. Either party can back out if the deal isn’t completed by Feb. 9, 2027. Plus, a separate filing revealed termination fees: $195 million from Transocean or $173 million from Valaris, depending on the circumstances.
Analysts jumped on their models again. BTIG stuck with a “Buy” rating and bumped Transocean’s price target to $10 from $6 on Monday, a report from GuruFocus shows. (GuruFocus)
Next on the docket: earnings. Transocean plans to release its fourth-quarter results along with a fleet status update after the NYSE closes on Feb. 19, followed by a conference call on Feb. 20. Valaris will publish its figures before the market opens on Feb. 19 and hold a call that same morning. (Deepwater)
Traders will also be on the lookout for deal documents, early signs of shareholder voting, and any new contract wins. All of this as management pushes investors on synergies and a quicker route to reducing debt.
