Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Arun Jayaram - Credit Suisse.
Arun Jayaram - Credit Suisse
Thinking about the U.S. land business, we've seen some differentiation in regards to rigs with higher spec rigs staying a little bit more active in getting premium day rates. I wanted to get your thoughts on the international jackup market and what do you think the differentiating factor will be internationally? Will it be the shiniest iron operating history or ultimately day rate?
David Williams
Okay, AJ, let me see if I can break that down.
It depends on the market. You will see some higher spec rigs probably get higher day rates in places where they're working at their highest and best use. National oil companies tend to define the spec and as long as you meet the spec you bid. And so like, for instance, Pemex, if they define the spec as a 300-foot cantilever with a 40-foot reach and 10 foot either side of the center line, that's just about any rig in the world. So a 30-year-old rig can compete favorably as long as it's equipped just as well as a new-build rig.
So there is differentiation between higher spec and lower spec rigs as long as those rigs are working as close as they can to the highest and best use. And that depends on the application.
Arun Jayaram - Credit Suisse
And my follow up, David, two recent hires at the executive management team. Can you elaborate a little bit on that? Kurt and his team have had the highest margins in the group in the last couple of quarters. I just wanted to see if you could elaborate on the management additions?
David Williams
Well, we've got two good athletes that are out there and if we see good talent in the market we decide to go for it. The marketing group we've got has done a great job. It's one set of circumstances to work through the cycle we've been; it's another set of circumstances to work through a cycle that's down. We're going to separate our management team and move part of it to Switzerland. We have talked about mergers and acquisitions and opportunities and we had the opportunity to grab some guys and we did it. We think those guys are a good add to what I think is already the best team out there.
- To read the full transcript on Seeking Alpha, click here »
