Paragon Offshore Announces Plan To Initiate Quarterly Dividend

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Sep 19, 2014, 09:00 ET

HOUSTON, Sept. 19, 2014 /PRNewswire/ -- The board of directors of Paragon Offshore plc ("Paragon") (NYSE: PGN) today announced plans to initiate a quarterly cash dividend of $0.125 per fully diluted share, or $0.50 per fully diluted share on an annualized basis. Paragon anticipates that the first quarterly dividend would be declared in November 2014 and paid shortly thereafter.

Paragon Offshore plc Logo (PRNewsFoto/Paragon Offshore plc) (PRNewsFoto/Paragon Offshore plc)

President and Chief Executive Officer, Randall D. Stilley, commented, "Following a robust review of our near-term capital allocation opportunities, I am pleased to report that the board has determined to commence this quarterly dividend program which demonstrates our confidence in the current strength of the business, as well as our future prospects. The size of our program is sustainable based on our views of Paragon's financial strength and leaves room for future growth. Furthermore, we are exploring additional opportunities, such as debt reduction, share repurchases, and potential accretive acquisitions, to enhance long-term shareholder value."

Paragon noted that any proposal or declaration of cash dividends by its board of directors, and the amount thereof, depends on many factors, including our financial condition, earnings, future business prospects, opportunities, share price, capital requirements and any other factors Paragon's board of directors may deem relevant. Declaration of the first quarterly dividend is also subject to the completion of Paragon's audited UK statutory balance sheet, which we anticipate will be completed by November 2014.

About Paragon Offshore

Paragon is a global provider of standard specification offshore drilling rigs. Paragon's drilling fleet consists solely of standard specification rigs and includes 34 jackups and eight floaters (five drillships and three semisubmersibles). Paragon's primary business is contracting its rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a dayrate basis around the world. Paragon's principal executive offices are located in Houston, Texas. Paragon is a public limited company registered in England and Wales with company number 08814042 and registered office at 20-22 Bedford Row, London, WC1R 4JS, England. Additional information is available at www.paragonoffshore.com.

Forward-Looking Disclosure Statement

This release contains forward-looking statements. Statements regarding the timing and amount of any dividend payment, business prospects and opportunities, debt reductions, share repurchases or acquisitions as well as any other statements that are not historical facts in this release, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to risks associated with the general nature of the oil and gas industry, risks associated with the operation of Paragon as a separate, publicly traded company, actions by regulatory authorities, customers and other third parties, and other factors detailed in the "Risk Factors" section of Paragon's registration statement on Form 10 as filed with the Securities and Exchange Commission (the "SEC") on July 14, 2014, in Paragon's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2014, and in Paragon's other filings with the SEC, which are available free of charge on the SEC's website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.

For additional information, contact:

For Investors & Media:	Lee M. Ahlstrom
	Senior Vice President – Investor Relations, Strategy and Planning
	+1.832.783.4040