Pacific Drilling Announces Preliminary Second Quarter Results

LUXEMBOURG–(BUSINESS WIRE)–Pacific Drilling S.A. (NYSE: PACD) (together with its subsidiaries, the
“Company”) announces the following preliminary results for the second
quarter 2017, in connection with the consent solicitation announced
today. These results have not been reviewed by its independent auditors.
Contract drilling revenue for the second quarter 2017 is expected to be
in the range of $66.0 million to $68.0 million, compared to first
quarter 2017 contract drilling revenue of $105.5 million. The decrease
in revenues resulted primarily from the Pacific Santa Ana being
offhire throughout the second quarter 2017, compared to the first
quarter 2017, in which it earned revenue until completing its contract
on January 31, 2017.

The Company expects a net loss for the second quarter 2017 in the range
of $130.0 million to $140.0 million, compared to a net loss for the
first quarter 2017 of $99.8 million and net income of $8.2 million for
the second quarter 2016.

The Company’s cash balance, including $8.5 million in restricted cash,
totaled $416.6 million as of June 30, 2017, and its aggregate
outstanding principal amount of indebtedness was $3.0 billion (after
accounting for the impact of group consolidation).

The Company expects to release its second quarter 2017 results in the
first half of August and will not be holding an earnings conference call
this quarter.

The foregoing financial results are estimates as of the date hereof of
the Company’s current expectations and are subject to change. Readers
are cautioned not to place undue reliance on these preliminary results
as they are estimates as of the date hereof only.

About Pacific Drilling

With its best-in-class drillships and highly experienced team, Pacific
Drilling is committed to becoming the industry’s preferred
high-specification, floating rig drilling contractor. Pacific Drilling’s
fleet of seven drillships represents one of the youngest and most
technologically advanced fleets in the world. For more information about
Pacific Drilling, including its current Fleet Status, please visit www.pacificdrilling.com.

Forward-Looking Statements

Certain statements and information contained in this press release
constitute “forward-looking statements” within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995, and are generally identifiable by the use of words such as
“believe,” “estimate,” “expect,” “forecast,” “ability to,” “plan,”
“potential,” “projected,” “target,” “would,” or other similar words,
which are generally not historical in nature.

Forward-looking statements express current expectations or forecasts of
possible future results or events, including future financial and
operational performance; revenue efficiency levels; market outlook;
forecasts of trends; future client contract opportunities; contract
dayrates; business strategies and plans and objectives of management;
estimated duration of client contracts; backlog; ability to repay
indebtedness; expectations regarding potential future covenant defaults
on long-term indebtedness; expected capital expenditures and projected
costs and savings; and the expected results for the second quarter 2017.

Although the Company believes that the assumptions and expectations
reflected in their forward-looking statements are reasonable and made in
good faith, these statements are not guarantees and actual future
results may differ materially due to a variety of factors. These
statements are subject to a number of risks and uncertainties, many of
which are beyond the Company’s control.

Important factors that could cause actual results to differ materially
from expectations include: the global oil and gas market and its impact
on demand for services; the offshore drilling market, including reduced
capital expenditures by clients; changes in worldwide oil and gas supply
and demand; rig availability and supply and demand for
high-specification drillships and other drilling rigs competing with the
Company’s fleet; costs related to stacking of rigs; the Company’s
ability to enter into and negotiate favorable terms for new drilling
contracts or extensions; possible cancellation, renegotiation,
termination or suspension of drilling contracts as a result of market
changes or other reasons; the Company’s substantial level of
indebtedness; the Company’s ability to obtain waivers or amendments to
its maximum leverage ratio covenant at the end of the third quarter of
2017 if necessary, or with respect to other potential future debt
covenant defaults; the Company’s ability to continue as a going concern
and any potential bankruptcy proceeding; the Company’s ability to repay
debt and adequacy of and access to sources of liquidity; and the other
risk factors described in the Company’s filings with the SEC, including
the Company’s Annual Report on Form 20-F and Current Reports on Form
6-K. These documents are available through our website at www.pacificdrilling.com
or through the SEC’s Electronic Data and Analysis Retrieval System at www.sec.gov.

The Company does not undertake any obligation to publicly update or
revise any forward-looking statements after the date they are made,
whether as a result of new information, future events or otherwise.

Contacts

Pacific Drilling
John Boots, +352 26 84 57 81
[email protected]