8-K
Valaris Ltd (VAL)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported): November 1, 2023
Valaris Limited
(Exact name of registrant as specified in its charter)
| Bermuda | 001-08097 | 98-1589854 |
|---|---|---|
| (State or other jurisdiction of<br><br>incorporation) | (Commission<br><br>File Number) | (I.R.S. Employer<br><br>Identification No.) |
Claredon House, 2 Church Street
Hamilton, Bermuda, HM 11
Registrant’s telephone number, including area code: 44 (0) 20 7659 4660
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | | --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Ticker Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Shares, $0.01 par value share | VAL | New York Stock Exchange |
| Warrants to purchase Common Shares | VAL WS | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging Growth Company | ☐ |
|---|---|
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
| --- | --- |
TABLE OF CONTENTS
| INFORMATION TO BE INCLUDED IN THE REPORT | 2 |
|---|---|
| Item 7.01 Regulation FD Disclosure | 2 |
| Item 9.01 Financial Statements and Exhibits | 3 |
| SIGNATURE | 4 |
INFORMATION TO BE INCLUDED IN THE REPORT
Item 7.01 Regulation FD Disclosure
The Fleet Status Report of the Company as of November 1, 2023 is furnished as Exhibit 99.1 to this report.
The information furnished in this Item 7.01 and the information attached to this Form 8-K as Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | Fleet Status Report of Valaris Limited as ofNovember1, 2023 |
| 101 | Interactive data files pursuant to Rule 405 of Regulation S-T formatted in inline Extensible Business Reporting Language |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Valaris Limited | ||
|---|---|---|
| November 1, 2023 | /s/ CHRISTOPHER T. WEBER | |
| Christopher T. Weber<br><br>Senior Vice President and Chief Financial Officer |
4
Document
| Valaris Limited<br>Fleet Status Report<br>November 1, 2023 | | --- || New Contracts and Extensions, Rig Sales and Other Updates Since Last Fleet Status Report | | --- | | Contract Backlog<br><br>•Valaris has been awarded the following new contracts and contract extensions, with associated contract backlog of approximately $480 million, subsequent to issuing its most recent fleet status report on August 1, 2023. Contract backlog excludes lump sum payments such as mobilization fees and capital reimbursements.<br><br>•Contract backlog increased to approximately $3.2 billion from approximately $3.0 billion as of August 1, 2023.<br><br>Floaters<br><br>•250-day contract extension with TotalEnergies offshore Brazil for drillship VALARIS DS-15. The extension period is expected to commence in the fourth quarter 2024 in direct continuation of the rig's current program. The total contract value for the firm period, excluding the provision of MPD and additional services, is $100 million. An additional rate will be charged for MPD and any other additional services when provided. The contract includes two 160-day priced options and one 120-day priced option, with increased operating day rates for each option period. The total contract value for the option periods if exercised, excluding the provision of MPD and additional services, is approximately $210 million. An additional rate will be charged for MPD and any other additional services when provided.<br><br>•Six-month priced option exercised by Petrobras offshore Brazil for drillship VALARIS DS-4. The six-month option will commence in January 2024 in direct continuation of the existing firm program. The priced option period has an estimated total contract value of approximately $41 million.<br><br>•Six-month priced contract extension with ExxonMobil offshore Angola for drillship VALARIS DS-9. The six-month extension will commence in July 2024 in direct continuation of the existing firm program.<br><br>•Two-well contract with Eni Mexico S. de R.L. de C.V. offshore Mexico for semisubmersible VALARIS DPS-5. The contract is expected to commence in March 2024 and has a minimum duration of 110 days. The operating day rate is $345,000, plus a $3 million mobilization fee.<br><br>•One-well contract with BP offshore Brazil for drillship VALARIS DS-15. The contract is expected to commence in late first quarter or early second quarter 2024 in direct continuation of the rig's current program, with TotalEnergies, and has an estimated duration of 80 days. The estimated contract value is approximately $33 million and excludes payments we will receive for mobilization and any additional services.<br><br>•A previously disclosed exercised priced option with TotalEnergies offshore Brazil for drillship VALARIS DS-15 is now expected to be undertaken in direct continuation of the aforementioned BP contract. The option period is expected to commence in late second quarter or early third quarter 2024 and has an estimated duration of 100 days. The operating day rate for the option period is approximately $254,000. The contract backlog for this previously disclosed contract is not included in the $480 million of additional backlog mentioned above.<br><br>Jackups<br><br>•55-well plug and abandonment (P&A) contract with Eni in the East Irish Sea (UK) for standard duty legacy jackup VALARIS 72. The contract is expected to commence in December 2023 and has an estimated duration of nearly four years (1,346 days). The operating day rate is subject to a market-indexed annual adjustment. VALARIS Norway will substitute for VALARIS 72 until VALARIS 72 completes its current contract with Eni in the UK North Sea, which is expected to finish in December 2024.<br><br>•Six-well contract extension with BP Trinidad for heavy duty modern jackup VALARIS 118. The extension period is expected to commence in March 2024, in direct continuation of the existing firm program, and has an estimated duration of one year. The extension period has an estimated total contract value of approximately $51 million.<br><br>•Six-well contract with TAQA on the Porthos Carbon Capture and Storage (CCS) program in the Dutch North Sea for heavy duty harsh environment jackup VALARIS 123. The contract is expected to commence in fourth quarter 2024 and has a minimum duration of 170 days. The contract includes options for up to 10 wells with an estimated total duration of 300 days. The operating day rate is $142,500, increasing to $152,500 effective January 1, 2025 and $162,500 effective January 1, 2026.<br><br>•Heavy duty ultra-harsh environment jackup VALARIS 249 has been contracted by Perenco T&T Limited to drill one open-water appraisal well in the TSP block, offshore the southeast coast of Trinidad. The contract is expected to commence in second half 2024, in direct continuation of the rig's current program with another operator.<br><br>•Five-well priced option exercised by BP Indonesia for heavy duty modern jackup VALARIS 106. The option period is expected to commence in January 2024, in direct continuation of the existing firm program and has an estimated duration of 365 days. The operating day rate is $85,000 effective from January 6, 2024, increasing to $95,000 from January 6, 2025. As previously disclosed, the rig is expected to be out of service for approximately 90 days for planned maintenance across second quarter and third quarter 2024. |
New Disclosure: bolded text signifies items that have not previously been disclosed
Page 1 of 16
| Valaris Limited<br>Fleet Status Report<br>November 1, 2023 | | --- || Contract Backlog(1) (2)<br><br>($ millions) | 2023 | | 2024 | | 2025+ | | Total | | Contracted Days(1) (2) | 2023 | | 2024 | | 2025+ | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Drillships | $ | 113.2 | $ | 894.9 | $ | 718.4 | $ | 1,726.5 | Drillships | 434 | | 2,760 | | 1,848 | | | Semisubmersibles | 38.9 | | 194.5 | | 26.1 | | 259.5 | | Semisubmersibles | 171 | | 798 | | 116 | | | Floaters | $ | 152.1 | $ | 1,089.4 | $ | 744.5 | $ | 1,986.0 | Floaters | 605 | | 3,558 | | 1,964 | | | HD - Ultra-Harsh & Harsh | $ | 43.9 | $ | 223.2 | $ | 60.8 | $ | 327.9 | HD - Ultra-Harsh & Harsh | 396 | | 1,920 | | 445 | | | HD & SD - Modern | 36.9 | | 212.9 | | 157.0 | | 406.8 | | HD & SD - Modern | 406 | | 2,057 | | 1,285 | | | SD - Legacy | 8.9 | | 58.2 | | 119.8 | | 186.9 | | SD - Legacy | 120 | | 732 | | 1,359 | | | Jackups | $ | 89.7 | $ | 494.3 | $ | 337.6 | $ | 921.6 | Jackups | 922 | | 4,709 | | 3,089 | | | Other(3) | $ | 26.5 | $ | 108.7 | $ | 115.3 | $ | 250.5 | Other(3) | 600 | | 3,580 | | 3,361 | | | Total | $ | 268.3 | $ | 1,692.4 | $ | 1,197.4 | $ | 3,158.1 | Total | 2,127 | | 11,847 | | 8,414 | | | ARO Drilling(4) | | | | | | | | | Average Day Rates(1) (2) | 2023 | | 2024 | | 2025+ | | | Owned Rigs | $ | 50.2 | $ | 357.1 | $ | 1,139.7 | $ | 1,547.0 | Drillships | $ | 261,000 | $ | 324,000 | $ | 389,000 | | Leased Rigs | 46.0 | | 345.4 | | 352.3 | | 743.7 | | Semisubmersibles | 228,000 | | 244,000 | | 225,000 | | | Total | $ | 96.2 | $ | 702.5 | $ | 1,492.0 | $ | 2,290.7 | Floaters | $ | 251,000 | $ | 306,000 | $ | 379,000 | | | | | | | | | | | HD - Ultra-Harsh & Harsh | $ | 111,000 | $ | 116,000 | $ | 137,000 | | | | | | | | | | | HD & SD - Modern | 91,000 | | 104,000 | | 122,000 | | | | | | | | | | | | SD - Legacy | 74,000 | | 80,000 | | 88,000 | | | | | | | | | | | | Jackups | $ | 97,000 | $ | 105,000 | $ | 109,000 | | (1) Contract backlog, contracted days and average day rates as of November 1, 2023.<br><br>(2) Contract backlog and average day rates exclude certain types of non-recurring revenues such as lump sum mobilization payments. Contract backlog and contracted days include backlog and days when a rig is under suspension. Average day rates are adjusted to exclude suspension backlog and days.<br><br>(3) Other represents contract backlog and contracted days related to bareboat charter agreements and management services contracts.<br><br>(4) ARO Drilling contract backlog as of November 1, 2023.<br><br>HD = Heavy Duty; SD = Standard Duty | | | | | | | | | | | | | | | |
Page 2 of 16
| Valaris Limited<br>Fleet Status Report<br>November 1, 2023 | |||||||
|---|---|---|---|---|---|---|---|
| Asset Category / Rig | Design | Year Delivered | Customer | Location | Contract Start Date | Contract End Date(1) | Day Rate(2) |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Drillships | |||||||
| VALARIS DS-18 | GustoMSC P10000 | 2015 | Chevron | U.S. GOM | Aug 22 | Aug 25 | |
| VALARIS DS-17 | GustoMSC P10000 | 2014 | Equinor | Brazil | Sep 23 | Mar 25 | 447,000 |
| VALARIS DS-16 | GustoMSC P10000 | 2014 | Occidental | U.S. GOM | Jun 22 | Jun 24 | |
| VALARIS DS-15 | GustoMSC P10000 | 2014 | TotalEnergies<br><br>BP<br><br>TotalEnergies<br><br>TotalEnergies | Brazil<br><br>Brazil<br><br>Brazil<br><br>Brazil | Jun 21<br><br>Apr 24<br><br>Jul 24<br><br>Nov 24 | Mar 24<br><br>Jun 24<br><br>Oct 24<br><br>Jul 25 | 410,000254,000400,000 |
| VALARIS DS-12 | DSME 12000 | 2014 | TotalEnergies<br>BP | West Africa<br>Egypt | Jul 23<br>Dec 23 | Nov 23<br><br>Nov 24 | |
| VALARIS DS-10 | Samsung GF12000 | 2017 | SNEPCo | Nigeria | Apr 23 | Mar 24 | 231,000 |
| VALARIS DS-9 | Samsung GF12000 | 2015 | ExxonMobil | Angola | Jul 22 | Jan 25 | |
| VALARIS DS-8 | Samsung GF12000 | 2015 | Petrobras | Brazil | Feb 24 | Jan 27 | 428,000 |
| VALARIS DS-7 | Samsung 96K | 2013 | Undisclosed | West Africa | Jun 24 | Sep 26 | |
| VALARIS DS-4 | Samsung 96K | 2010 | Petrobras | Brazil | Jul 22 | Jul 24 | |
| Stacked | |||||||
| VALARIS DS-11 | DSME 12000 | 2013 | Spain | ||||
| Purchase Options(3) | |||||||
| VALARIS DS-14 | DSME 12000 | South Korea | |||||
| VALARIS DS-13 | DSME 12000 | South Korea |
All values are in US Dollars. Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 3 of 16
| Valaris Limited<br>Fleet Status Report<br>November 1, 2023 | | --- || Asset Category / Rig | Design | Year Delivered | Customer | Location | Contract Start Date | Contract End Date(1) | Day Rate(2) | Comments | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Semisubmersibles | | | | | | | | | | VALARIS DPS-5 | ENSCO 8500 Series, <br>DP + Moored | 2012 | Eni<br><br>Occidental<br><br>Apache<br><br>Eni | Mexico<br><br>U.S. GOM<br><br>U.S. GOM<br><br>Mexico | Jan 23<br><br>Aug 23<br><br>Nov 23<br><br>Mar 24 | Jul 23<br><br>Nov 23<br><br>Jan 24<br><br>Jul 24 | $314,000<br><br><br><br><br><br>$345,000 | Plus mobilization fee of approx. $1.2 million<br><br><br><br><br><br>Plus $3 million mobilization fee | | VALARIS DPS-1 | F&G ExD Millennium, DP | 2012 | Woodside | Australia | Apr 22<br><br>Nov 23 | Oct 23<br>Apr 25 | | | | VALARIS MS-1 | F&G ExD Millennium, Moored | 2011 | Santos<br><br><br>Undisclosed | Australia<br><br><br>Australia | Jul 22<br><br><br><br><br><br>Jan 24 | Dec 23<br><br><br><br><br><br>Nov 24 | | Contract suspended. During the contract suspension period, the duration of which is currently unknown, we do not expect a material impact on revenues and earnings. Three priced options each with an estimated duration of 30 days | | Stacked | | | | | | | | | | VALARIS DPS-6 | ENSCO 8500 Series, DP | 2012 | | U.S. GOM | | | | | | VALARIS DPS-3 | ENSCO 8500 Series, <br>DP + Moored | 2010 | | U.S. GOM | | | | |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 4 of 16
| Valaris Limited<br>Fleet Status Report<br>November 1, 2023 | | --- || Asset Category / Rig | Design | Year Delivered | Customer | Location | Contract Start Date | Contract End Date(1) | Day Rate(2) | Comments | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Jackups | | | | | | | | | | Heavy Duty Ultra-Harsh Environment(4) | | | | | | | | | | VALARIS Norway | KFELS N Class | 2011 | NEO Energy<br><br>North Sea Natural Resources<br><br>Eni | UK<br><br>UK<br><br><br><br>UK | Aug 23<br><br>Oct 23<br><br><br><br>Dec 23 | Oct 23<br><br>Dec 23<br><br><br><br>Dec 24 | $105,000<br><br>$105,000<br><br><br><br>$85,000 | VALARIS Norway substitutes for VALARIS 72 until the rig completes its current contract | | VALARIS Stavanger | KFELS N Class | 2011 | | UK | | | | Warm stacked | | VALARIS 250 | LT Super Gorilla XL | 2003 | Saudi Aramco | Saudi Arabia | Jun 18 | Dec 24 | | Leased to ARO Drilling(5). Expect approx. 10 days out of service for planned maintenance in 2Q24 | | VALARIS 249 | LT Super Gorilla | 2002 | Undisclosed<br><br><br><br>Perenco | Trinidad<br><br><br><br>Trinidad | Jul 23<br><br><br><br>Aug 24 | Jul 24<br><br><br><br>Sep 24 | $125,000 | Plus mobilization fee of $8.5 million and a daily rate of $64,000 while the rig was in transit from New Zealand to Trinidad | | VALARIS 248 | LT Super Gorilla | 2000 | Neptune | UK | Aug 20 | Sep 24 | | Expect approx. 45 days out of service for planned maintenance in 4Q24 | | VALARIS 247 | LT Super Gorilla | 1998 | Perenco<br>Undisclosed | UK<br>Australia | Mar 23<br><br>May 24 | Dec 23<br>Aug 24 | $180,000 | Plus mobilization and demobilization fees that cover moving and operating costs while the rig is in transit. Expect approx. 60 days out of service for contract preparations across 1Q24 and 2Q24 | | Stacked | | | | | | | | | | VALARIS Viking | KFELS N Class | 2010 | | UK | | | | |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 5 of 16
| Valaris Limited<br>Fleet Status Report<br>November 1, 2023 | | --- || Asset Category / Rig | Design | Year Delivered | Customer | Location | Contract Start Date | Contract End Date(1) | Day Rate(2) | Comments | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Jackups | | | | | | | | | | Heavy Duty Harsh Environment(4) | | | | | | | | | | VALARIS 123 | KFELS Super A | 2019 | ONE-Dyas<br><br>TAQA<br><br>TAQA | Netherlands<br><br>Netherlands<br><br>Netherlands | Mar 23<br><br>Nov 24<br><br>Jan 25 | Nov 23<br>Dec 24<br>Mar 25 | $143,000<br><br>$153,000 | Expect approx. 60 days out of service for planned maintenance in 1Q24<br><br><br><br>Plus options for up to 10 wells with an estimated total duration of 300 days. Operating day rate increases to approx. $163,000 in 2026 | | VALARIS 122 | KFELS Super A | 2014 | Shell | UK | Sep 23 | Feb 25 | | Total contract value of over $60 million based on estimated duration of 500 days. Expect approx. 20 days out of service for planned maintenance in 3Q24 | | VALARIS 121 | KFELS Super A | 2013 | Petrofac<br>Shell | UK<br>UK | Jul 23<br><br>Nov 23 | Nov 23<br>Jun 24 | | Total contract value of over $25 million. Four priced options | | VALARIS 120 | KFELS Super A | 2013 | Harbour Energy | UK | Jul 17<br>Jul 23 | Jul 23<br>Sep 25 | $130,000 | Expect approx. 30 days out of service for planned maintenance across 4Q23 and 1Q24 | | Stacked | | | | | | | | | | VALARIS 102 | KFELS MOD V-A | 2002 | | U.S. GOM | | | | |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 6 of 16
| Valaris Limited<br>Fleet Status Report<br>November 1, 2023 | | --- || Asset Category / Rig | Design | Year Delivered | Customer | Location | Contract Start Date | Contract End Date(1) | Day Rate(2) | Comments | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Jackups | | | | | | | | | | Heavy Duty - Modern(4) | | | | | | | | | | VALARIS 118 | LT 240-C | 2011 | BP<br><br>BP | Trinidad<br><br>Trinidad | Jul 23<br><br>Mar 24 | Mar 24<br><br>Mar 25 | | Total contract value of approx. $24 million<br><br>Total contract value of approx. $51 million | | VALARIS 117 | LT 240-C | 2009 | Eni | Mexico | Dec 21 | Dec 24 | | | | VALARIS 116 | LT 240-C | 2008 | Saudi Aramco | Saudi Arabia | Dec 18 | Dec 24 | | Leased to ARO Drilling(5). Expect approx. 10 days out of service for planned maintenance in 3Q24 | | VALARIS 115 | BM Pacific Class 400 | 2013 | Shell | Brunei | Apr 23 | Apr 27 | | Total contract value of approx. $159 million | | VALARIS 110 | KFELS MOD V-B | 2015 | North Oil Company | Qatar | Oct 21 | Oct 24 | | Two 1-year priced options | | VALARIS 108 | KFELS MOD V-B | 2007 | Saudi Aramco | Saudi Arabia | Jan 24 | Dec 26 | | Leased to ARO Drilling(5) | | VALARIS 107 | KFELS MOD V-B | 2006 | GB Energy<br>Beach Energy<br>Undisclosed<br>Undisclosed<br>ExxonMobil | Australia<br>New Zealand<br>Australia<br>Australia<br>Australia | May 23<br><br>Oct 23<br><br>Jan 24<br><br>Mar 24<br><br>Oct 24 | Jul 23<br><br>Jan 24<br><br>Feb 24<br><br>Sep 24<br><br>Oct 25 | $118,000<br><br>$120,000<br>$150,000<br>$153,000 | Total contract value of approx. $26 million, including mobilization and demobilization fee<br><br><br>Two 180-day priced options | | VALARIS 106 | KFELS MOD V-B | 2005 | BP<br><br>BP<br><br>BP | Indonesia<br><br>Indonesia<br><br>Indonesia | Jan 18<br><br>Jan 24<br><br>Jan 25 | Jan 24<br><br>Jan 25<br><br>Mar 25 | $85,000<br>$95,000 | Two priced options each with an estimated duration of 90 days. Expect approx. 90 days out of service for planned maintenance across 2Q24 and 3Q24 | | Stacked | | | | | | | | | | VALARIS 111 | KFELS MOD V-B | 2003 | | Croatia | | | | | | VALARIS 109 | KFELS MOD V-Super B | 2008 | | Namibia | | | | | | VALARIS 104 | KFELS MOD V-B | 2002 | | UAE | | | | |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 7 of 16
| Valaris Limited<br>Fleet Status Report<br>November 1, 2023 | |||||||
|---|---|---|---|---|---|---|---|
| Asset Category / Rig | Design | Year Delivered | Customer | Location | Contract Start Date | Contract End Date(1) | Day Rate(2) |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Jackups | |||||||
| Standard Duty - Modern | |||||||
| VALARIS 148 | LT Super 116-E | 2013 | Saudi Aramco | Saudi Arabia | Nov 19 | Feb 26 | |
| VALARIS 147 | LT Super 116-E | 2013 | Saudi Aramco | Saudi Arabia | Sep 19 | Dec 25 | |
| VALARIS 146 | LT Super 116-E | 2011 | Saudi Aramco | Saudi Arabia | Sep 18 | Dec 24 | |
| VALARIS 144 | LT Super 116-E | 2010 | Cantium<br>Talos | U.S. GOM<br>U.S. GOM | Apr 23<br><br>Nov 23 | Nov 23<br><br>Jan 24 | 85,00087,000 |
| VALARIS 143 | LT Super 116-E | 2010 | Saudi Aramco | Saudi Arabia | Oct 18 | Dec 24 | |
| VALARIS 141 | LT Super 116-E | 2016 | Saudi Aramco | Saudi Arabia | Aug 22 | Aug 25 | |
| VALARIS 140 | LT Super 116-E | 2016 | Saudi Aramco | Saudi Arabia | Mar 22 | Mar 25 | |
| VALARIS 76 | LT Super 116-C | 2000 | Saudi Aramco | Saudi Arabia | Jan 15<br><br>May 24 | Nov 23<br>May 29 | |
| Stacked | |||||||
| VALARIS 145 | LT Super 116-E | 2010 | U.S. GOM | ||||
| VALARIS 75 | LT Super 116-C | 1999 | U.S. GOM |
All values are in US Dollars.
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 8 of 16
| Valaris Limited<br>Fleet Status Report<br>November 1, 2023 | |||||||
|---|---|---|---|---|---|---|---|
| Asset Category / Rig | Design | Year Delivered | Customer | Location | Contract Start Date | Contract End Date(1) | Day Rate(2) |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Jackups | |||||||
| Standard Duty - Legacy | |||||||
| VALARIS 92 | LT 116-C | 1982 | Harbour Energy | UK | Feb 17<br>Mar 24 | Feb 24<br>Feb 26 | 95,000 |
| VALARIS 72 | Hitachi K1025N | 1981 | Eni<br><br>Eni | UK<br><br>UK | Jan 20<br><br>Jan 25 | Dec 24<br><br>Aug 27 | |
| Other | |||||||
| Drilling Management | |||||||
| Thunder Horse | Deepwater Semisubmersible | BP | U.S. GOM | Jan 17 | Jan 24 | ||
| Mad Dog | Deepwater Spar Drilling Rig | BP | U.S. GOM | Jan 17 | Jan 24 |
All values are in US Dollars.
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 9 of 16
| Valaris Limited<br>Fleet Status Report<br>November 1, 2023 | | --- || Asset Category / Rig | Design | Customer | Location | Contract Start Date | Contract End Date(1) | Day Rate(2) | Comments | | --- | --- | --- | --- | --- | --- | --- | --- | | ARO Drilling | | | | | | | | | Jackup Rigs Owned by ARO Drilling | | | | | | | | | ARO 2001 | LT 116-C | Saudi Aramco | Saudi Arabia | Oct 17 | Jan 26 | | | | ARO 2003 | BM 200-H | Saudi Aramco | Saudi Arabia | Feb 18 | Feb 26 | | Expect approx. 45 days out of service for planned maintenance in 1Q24 | | ARO 3001 | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct 17 | Jan 26 | | | | ARO 3002 | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct 17 | Jan 26 | | Expect approx. 75 days out of service for planned maintenance across 1Q24 and 2Q24 | | ARO 3003 | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct 18 | Dec 26 | | Expect approx. 15 days out of service for planned maintenance in 2Q24 | | ARO 3004 | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct 18 | Dec 26 | | | | ARO 4001 | KFELS Super B | Saudi Aramco | Saudi Arabia | Oct 17 | Jan 26 | | | | Kingdom 1 | LT 116-C | Saudi Aramco | Saudi Arabia | Nov 23 | Nov 31 | | | | Kingdom 2 | LT 116-C | Saudi Aramco | Saudi Arabia | Mar 24 | Mar 32 | | Under construction. Delivery expected in 1Q24 |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
(1) Contract duration does not include any unexercised optional extensions. Contract end dates can vary based on how long it takes to complete the wells subject to the contract.
(2) Day rates are reported to the nearest thousand and reflect the operating day rates charged to customers, excluding certain types of non-recurring revenues such as lump sum mobilization payments. Day rates are provided unless such disclosures are restricted by confidentiality provisions.
(3) Valaris has the right, but not the obligation, to take delivery of either or both rigs on or before December 31, 2023. Not included in Valaris' fleet count.
(4) Heavy duty jackups are well-suited for operations in tropical revolving storm areas.
(5) Rigs leased to ARO Drilling via bareboat charter agreements to fulfill contracts between ARO Drilling and Saudi Aramco.
Page 10 of 16
| Valaris Limited<br>Fleet Status Report<br>November 1, 2023 | |||||||
|---|---|---|---|---|---|---|---|
| Out of Service Days (1) | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Rig | Asset Category | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | FY 2024 |
| VALARIS 250 | Jackup - Heavy Duty Ultra-Harsh Environment (Leased to ARO Drilling) | 10 | 10 | ||||
| VALARIS 248 | Jackup - Heavy Duty Ultra-Harsh Environment | 45 | 45 | ||||
| VALARIS 247 | Jackup - Heavy Duty Ultra-Harsh Environment | 30 | 30 | 60 | |||
| VALARIS 123 | Jackup - Heavy Duty Harsh Environment | 60 | 60 | ||||
| VALARIS 122 | Jackup - Heavy Duty Harsh Environment | 20 | 20 | ||||
| VALARIS 120 | Jackup - Heavy Duty Harsh Environment | 10 | 20 | 20 | |||
| VALARIS 116 | Jackup - Heavy Duty Modern (Leased to ARO Drilling) | 10 | 10 | ||||
| VALARIS 106 | Jackup - Heavy Duty Modern | 30 | 60 | 90 | |||
| VALARIS 147 | Jackup - Standard Duty Modern (Leased to ARO Drilling) | 30 | 30 | ||||
| VALARIS 146 | Jackup - Standard Duty Modern (Leased to ARO Drilling) | 25 | 25 | ||||
| VALARIS 76 | Jackup - Standard Duty Modern (Leased to ARO Drilling) | 40 | 90 | 40 | 130 |
(1) Table shows out of service days for planned maintenance, e.g. special periodic surveys and contract preparation, excluding rigs undergoing reactivation projects. Excludes ARO owned rigs.
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| Valaris Limited<br>Fleet Status Report<br>November 1, 2023 |
|---|
Additional Information Regarding this Fleet Status Report
Day Rate and Terms. The day rates reflected in this Fleet Status Report are stated in U.S. dollars and include the operating day rates charged to customers, which may include estimated contractual adjustments for changes in operating costs and/or reimbursable cost adjustments for ongoing expenses such as crew, catering, insurance and taxes. The day rates, however, do not include certain types of non-recurring revenues such as lump sum mobilization payments, revenues earned during mobilizations, revenues associated with contract preparation and other non-recurring reimbursable items such as mobilizations and capital enhancements, and the impact of the fair market value adjustments to previously acquired drilling contracts that are recognized during the contract term. Routine and non-routine downtime may reduce the actual revenues recognized during the contract term. Additionally, we sometimes negotiate special rates and/or day rate adjustments with customers that may reduce revenues recognized.
Total Contract Value. Total contract value is the estimated total compensation expected to be received for a contract, including the operating day rate over the estimated firm term of the contract and any non-recurring lump sum payments for items such as mobilization, reactivation and capital upgrades.
Forward-Looking Statements. Statements contained in this Fleet Status Report that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "likely," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements regarding expected financial performance; expected utilization, day rates, revenues, operating expenses, cash flows, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the offshore drilling market, including supply and demand, customer drilling programs, stacking of rigs, effects of new rigs on the market and effect of the volatility of commodity prices; expected work commitments, awards, contracts and letters of intent; scheduled delivery dates for rigs; performance of our joint ventures, including our joint venture with Saudi Aramco; timing of the delivery of the Saudi Aramco Rowan Offshore Drilling Company ("ARO") newbuild rigs and the timing of additional newbuild orders; the availability, delivery, mobilization, contract commencement, availability, relocation or other movement of rigs and the timing thereof; rig reactivations; suitability of rigs for future contracts; divestitures of assets; general economic, market, business and industry conditions, including inflation and recessions, trends and outlook; general political conditions, including political tensions, conflicts and war (such as the ongoing conflict in Ukraine); cybersecurity attacks and threats; impacts and effects of public health crises, pandemics and epidemics, such as the COVID-19 pandemic; future operations; any exercise of our options for delivery of the VALARIS DS-13 and DS-14; increasing regulatory complexity; targets, progress, plans and goals related to environmental, social and governance (“ESG”) matters; the outcome of tax disputes; assessments and settlements; and expense management. The forward-looking statements contained in this Fleet Status Report are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including cancellation, suspension, renegotiation or termination of drilling contracts and programs; our ability to obtain financing, service our debt, fund capital expenditures and pursue other business opportunities; adequacy of sources of liquidity for us and our customers; future share repurchases; actions by regulatory authorities, or other third parties; actions by our security holders; internal control risk; commodity price fluctuations and volatility, customer demand, loss of a significant customer or customer contract, downtime and other risks associated with offshore rig operations; adverse weather, including hurricanes; changes in worldwide rig supply, including as a result of reactivations and newbuilds; and demand, competition and technology; supply chain and logistics challenges; consumer preferences for alternative fuels and forecasts or expectations regarding the global energy transition; increased scrutiny of our ESG targets, including our Scope 1 emissions intensity reduction target, initiatives and reporting and our ability to achieve such targets or initiatives; changes in customer strategy; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties, including recessions, volatility affecting the banking system and financial markets, inflation and adverse changes in the level of international trade activity; terrorism, piracy and military action; risks inherent to shipyard rig reactivation, upgrade, repair, maintenance or enhancement; our ability to enter into, and the terms of, future drilling contracts; suitability of rigs for future contracts; the cancellation of letters of intent or letters of award or any failure to execute definitive contracts following announcements of letters of intent, letters of award or other expected work commitments; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; environmental or other liabilities, risks or losses; compliance with our debt agreements and debt restrictions that may limit our liquidity and flexibility; cybersecurity risks and threats; and changes in foreign currency exchange rates. In addition to the numerous factors described above, you should also carefully read and consider "Item 1A. Risk Factors" in Part I and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our most recent annual report on Form 10-K, which is available on the Securities and Exchange Commission's website at www.sec.gov or on the Investor Relations section of our website at www.valaris.com. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to update or revise any forward-looking statements, except as required by law.
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