United states securities and exchange commission

 

The decrease in net cash provided by operating activities resulted primarily from reduced revenue from our fleet, partially offset by cost saving measures and a $35.2 million fee received from Chevron for the contract amendment of the Pacific Santa Ana for the year ended December 31, 2016.

The following table provides a comparison of our net cash used in investing activities for the years ended December 31, 2016 and 2015:

		Years Ended December 31,
		2016			2015			Change
		(in thousands)
Cash flow from investing activities:
Capital expenditures		$	(52,625)		$	(181,458)		$	128,833
Net cash used in investing activities		$	(52,625)		$	(181,458)		$	128,833

 

The decrease in capital expenditures resulted primarily from no newbuild drillship construction activities in 2016 and fleet wide cost control measures implemented. Capital expenditures for the year ended December 31, 2016 primarily consisted of the purchases of fleet spare equipment committed to in prior years to support our operations.

The following table provides a comparison of our net cash provided by (used in) financing activities for the years ended December 31, 2016 and 2015:

		Years Ended December 31,
		2016			2015			Change
		(in thousands)
Cash flow from financing activities:
Net payments from shares issued under share-based compensation plan		$	(89)		$	(536)		$	447
Proceeds from long-term debt			450,000			315,000			135,000
Payments on long-term debt			(110,832)			(581,083)			470,251
Payments for financing costs			(25,423)			(4,070)			(21,353)
Purchases of treasury shares			—			(21,760)			21,760
Net cash provided by (used in) financing activities		$	313,656		$	(292,449)		$	606,105

 

36
 

 
The increase in cash from financing activities for the year ended December 31, 2016, as compared to the same period in 2015, resulted from higher drawdowns, lower scheduled debt payments and no share repurchases, partially offset by financing costs to amend the indenture governing the 2017 Senior Secured Notes in October 2016 and repurchases of our 2017 Senior Secured Notes. During the year ended December 31, 2016, we drew an aggregate of $450.0 million under the 2013 Revolving Credit Facility. During the year ended December 31, 2015, we drew $50.0 million under the 2013 Revolving Credit Facility, and completed the final drawdowns in the amount of $85.0 million under the SSCF.

Year ended December 31, 2015 compared to Year ended December 31, 2014

The following table provides a comparison of our net cash provided by operating activities for the years ended December 31, 2015 and 2014:

		Years Ended December 31,
		2015			2014			Change
		(in thousands)
Cash flow from operating activities:
Net income		$	126,230		$	188,257		$	(62,027)
Depreciation expense			243,457			199,337			44,120
Amortization of deferred revenue			(86,276)			(109,208)			22,932
Amortization of deferred costs			25,951			51,173			(25,222)
Amortization of deferred financing costs			11,278			10,416			862
Amortization of debt discount			1,015			817			198
Write-off of unamortized deferred financing costs			5,965			—			5,965
Loss from construction contract rescission			38,084			—			38,084
Deferred income taxes			9,840			18,661			(8,821)
Share-based compensation expense			12,534			10,484			2,050
Changes in operating assets and liabilities, net			34,068			26,473			7,595
Net cash provided by operating activities		$	422,146		$	396,410		$	25,736

 

The increase in net cash provided by operating activities was primarily due to collections of fleet revenue at higher contractual dayrates and contributions from the implementation of cost savings measures for the year ended December 31, 2015.

The following table provides a comparison of our net cash used in investing activities for the years ended December 31, 2015 and 2014:

		Years Ended December 31,
		2015			2014			Change
		(in thousands)
Cash flow from investing activities:
Capital expenditures		$	(181,458)		$	(1,136,205)		$	954,747
Net cash used in investing activities		$	(181,458)		$	(1,136,205)		$	954,747

 

The decrease in capital expenditures resulted primarily from decreased newbuild drillship construction activities. The payments in 2014 included the final payments for the Pacific Sharav and the Pacific Meltem , and milestone payments for the Pacific Zonda to SHI.

37
 

 
The following table provides a comparison of our net cash provided by (used in) financing activities for the years ended December 31, 2015 and 2014:

		Years Ended December 31,
		2015			2014			Change
		(in thousands)
Cash flow from financing activities:
Net proceeds (payments) from shares issued under share-based compensation plan		$	(536)		$	95		$	(631)
Proceeds from long-term debt			315,000			760,000			(445,000)
Payments on long-term debt			(581,083)			(41,833)			(539,250)
Payments for financing costs			(4,070)			(7,569)			3,499
Purchases of treasury shares			(21,760)			(7,227)			(14,533)
Net cash provided by (used in) financing activities		$	(292,449)		$	703,466		$	(995,915)