Valaris Ltd 8-K, filed Aug 2, 2023
Valaris Ltd (VAL)
8-K
2023-08-02
For: 2023-08-01
View Original
Added on
April 09, 2026
About this 8-K
Valaris Ltd filed this 8-K on August 2, 2023, reporting on events of August 1, 2023.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
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): August 1, 2023
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
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 | ||||||||||||
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
Item 7.01 Regulation FD Disclosure
The Fleet Status Report of the Company as of August 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.
2
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 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) | |||||||
3
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 | ||||||||
| August 2, 2023 | /s/ CHRISTOPHER T. WEBER | |||||||
Christopher T. Weber Senior Vice President and Chief Financial Officer | ||||||||
4
 | Valaris Limited Fleet Status Report August 1, 2023 | |||||||||||||
| New Contracts and Extensions, Rig Sales and Other Updates Since Last Fleet Status Report | ||
Floaters •12-well contract offshore West Africa for drillship VALARIS DS-7, which will be reactivated for this contract. The contract is expected to commence in second quarter 2024 and has an estimated duration of 850 days. The total contract value is estimated to be $364 million. The contract requires minimal customer-specific upgrades to the rig and does not include the provision of any additional services. •Two-well contract with Anadarko Petroleum Corporation (a wholly owned subsidiary of Occidental) in the U.S. Gulf of Mexico for semisubmersible Valaris DPS-5. The contract is expected to commence in August 2023 and has a minimum duration of 60 days. •Nine-well contract for a plug and abandonment campaign with Apache in the U.S. Gulf of Mexico for semisubmersible VALARIS DPS-5. The contract is expected to commence in October 2023 and has a minimum duration of 110 days. Jackups •180-day (minimum duration) contract with an undisclosed operator offshore Australia for heavy duty modern jackup VALARIS 107. The contract is expected to commence in first quarter 2024. The operating day rate is $150,000. •One-year contract with Esso Australia Pty. Ltd for heavy duty modern jackup VALARIS 107. The contract is expected to commence in October 2024. •Two-well contract with a major Australian operator for heavy duty ultra-harsh environment jackup VALARIS 247. The contract is expected to commence in early to mid-2024 and has an estimated duration of 100 days. The operating day rate is $180,000 and Valaris will receive a mobilization and demobilization fee that covers operating costs while the rig is in transit. | ||
New Disclosure: bolded text signifies items that have not previously been disclosed
Page 1 of 15
| Valaris Limited Fleet Status Report August 1, 2023 | |||||||||||||
Contract Backlog(1) (2) ($ millions) | 2023 | 2024 | 2025+ | Total | Contracted Days(1) (2) | 2023 | 2024 | 2025+ | |||||||||||||||||||||
| Drillships | $ | 300.4 | $ | 741.7 | $ | 642.8 | $ | 1,684.9 | Drillships | 1,142 | 2,189 | 1,655 | |||||||||||||||||
| Semisubmersibles | 115.0 | 144.1 | 13.3 | 272.4 | Semisubmersibles | 459 | 627 | 59 | |||||||||||||||||||||
| Floaters | $ | 415.4 | $ | 885.8 | $ | 656.1 | $ | 1,957.3 | Floaters | 1,601 | 2,816 | 1,714 | |||||||||||||||||
| HD - Ultra-Harsh & Harsh | $ | 110.1 | $ | 163.0 | $ | 34.3 | $ | 307.4 | HD - Ultra-Harsh & Harsh | 985 | 1,314 | 264 | |||||||||||||||||
| HD & SD - Modern | 101.0 | 129.4 | 136.4 | 366.8 | HD & SD - Modern | 1,107 | 1,304 | 1,115 | |||||||||||||||||||||
| SD - Legacy | 21.3 | 56.9 | 40.2 | 118.4 | SD - Legacy | 283 | 716 | 423 | |||||||||||||||||||||
| Jackups | $ | 232.4 | $ | 349.3 | $ | 210.9 | $ | 792.6 | Jackups | 2,375 | 3,334 | 1,802 | |||||||||||||||||
Other(3) | $ | 72.5 | $ | 112.0 | $ | 106.9 | $ | 291.4 | Other(3) | 1,673 | 3,669 | 3,128 | |||||||||||||||||
| Total | $ | 720.3 | $ | 1,347.1 | $ | 973.9 | $ | 3,041.3 | Total | 5,649 | 9,819 | 6,644 | |||||||||||||||||
ARO Drilling(4) | Average Day Rates(1) (2) | 2023 | 2024 | 2025+ | |||||||||||||||||||||||||
| Owned Rigs | $ | 103.4 | $ | 246.6 | $ | 336.3 | $ | 686.3 | Drillships | $ | 263,000 | $ | 339,000 | $ | 388,000 | ||||||||||||||
| Leased Rigs | 130.0 | 352.2 | 332.8 | 815.0 | Semisubmersibles | 250,000 | 230,000 | 225,000 | |||||||||||||||||||||
| Total | $ | 233.4 | $ | 598.8 | $ | 669.1 | $ | 1,501.3 | Floaters | $ | 259,000 | $ | 315,000 | $ | 383,000 | ||||||||||||||
| HD - Ultra-Harsh & Harsh | $ | 112,000 | $ | 124,000 | $ | 130,000 | |||||||||||||||||||||||
| HD & SD - Modern | 91,000 | 99,000 | 122,000 | ||||||||||||||||||||||||||
| SD - Legacy | 75,000 | 79,000 | 95,000 | ||||||||||||||||||||||||||
| Jackups | $ | 98,000 | $ | 105,000 | $ | 117,000 | |||||||||||||||||||||||
(1) Contract backlog, contracted days and average day rates as of August 1, 2023. (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. (3) Other represents contract backlog and contracted days related to bareboat charter agreements and management services contracts. (4) ARO Drilling contract backlog as of August 1, 2023. HD = Heavy Duty; SD = Standard Duty | |||||||||||||||||||||||||||||
Page 2 of 15
| Valaris Limited Fleet Status Report August 1, 2023 | |||||||||||||
| Asset Category / Rig | Design | Year Delivered | Customer | Location | Contract Start Date | Contract End Date(1) | Day Rate(2) | Comments | ||||||||||||||||||||||||||||||||||||||||||
| Drillships | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-18 | GustoMSC P10000 | 2015 | Chevron | U.S. GOM | Aug 22 | Jul 25 | Contract includes MPD services. Additional rate charged when MPD services provided. | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-17 | GustoMSC P10000 | 2014 | Equinor | Brazil | Aug 23 | Feb 25 | $447,000 | Contract includes MPD and additional services. Total contract value of $327 million, including an upfront payment of approx. $86 million for mobilization, capital upgrades and a contribution towards reactivation costs. Two priced options each with an estimated duration of 60 days | ||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-16 | GustoMSC P10000 | 2014 | Occidental | U.S. GOM | May 22 | May 24 | Contract includes MPD services. Additional rate charged when MPD services provided. 1-year priced option | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-15 | GustoMSC P10000 | 2014 | TotalEnergies | Brazil | Jun 21 Feb 24 | Feb 24 May 24 | $254,000 | Contract includes MPD services. Additional rate charged when MPD services provided. | ||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-12 | DSME 12000 | 2014 | Undisclosed TotalEnergies BP | Angola West Africa Egypt | Mar 23 Jul 23 Dec 23 | Jun 23 Oct 23 Nov 24 | Total contract value of $26 million Total contract value of $136 million | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-10 | Samsung GF12000 | 2017 | SNEPCo | Nigeria | Apr 23 | Mar 24 | $231,000 | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-9 | Samsung GF12000 | 2015 | ExxonMobil | Angola | Jul 22 | Jul 24 | Contract includes MPD services. Four 6-month priced options | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-8 | Samsung GF12000 | 2015 | Petrobras | Brazil | Feb 24 | Jan 27 | $428,000 | Plus mobilization fee of approx. $30 million. Contract includes additional services. Rig being reactivated in Spain and is expected to mobilize to Brazil in mid 4Q23 | ||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-7 | Samsung 96K | 2013 | Undisclosed | West Africa | Jun 24 | Sep 26 | Total contract value estimated to be $364 million. Estimated duration of 850 days. Rig being reactivated in Spain | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-4 | Samsung 96K | 2010 | Petrobras | Brazil | Jul 22 | Dec 23 | Contract includes MPD and additional services. 6-month priced option | |||||||||||||||||||||||||||||||||||||||||||
| Stacked | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-11 | DSME 12000 | 2013 | Spain | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase Options(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS DS-14 | DSME 12000 | South Korea | Option to take delivery by year-end 2023. Purchase price of approx. $218 million assuming a Dec 31, 2023 delivery | |||||||||||||||||||||||||||||||||||||||||||||||
VALARIS DS-13 | DSME 12000 | South Korea | Option to take delivery by year-end 2023. Purchase price of approx. $119 million assuming a Dec 31, 2023 delivery | |||||||||||||||||||||||||||||||||||||||||||||||
Page 3 of 15
| Valaris Limited Fleet Status Report August 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, DP + Moored | 2012 | Eni Occidental Apache | Mexico U.S. GOM U.S. GOM | Jan 23 Aug 23 Oct 23 | Jul 23 Oct 23 Jan 24 | $314,000 | Plus mobilization fee of approx. $1.2 million | ||||||||||||||||||||||||||||||||||||||||||
VALARIS DPS-1 | F&G ExD Millennium, DP | 2012 | Woodside | Australia | Apr 22 Sep 23 | Aug 23 Feb 25 | ||||||||||||||||||||||||||||||||||||||||||||
VALARIS MS-1 | F&G ExD Millennium, Moored | 2011 | Santos Undisclosed | Australia Australia | Jul 22 Oct 23 | Oct 23 Aug 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, DP + Moored | 2010 | U.S. GOM | |||||||||||||||||||||||||||||||||||||||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 4 of 15
| Valaris Limited Fleet Status Report August 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 | Centrica Storage NEO Energy North Sea Natural Resources | UK UK UK | Feb 23 Aug 23 Sep 23 | Jun 23 Sep 23 Oct 23 | $105,000 $105,000 | ||||||||||||||||||||||||||||||||||||||||||||||
| 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. 60 days out of service for planned maintenance across 1Q24 and 2Q24 | ||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 249 | LT Super Gorilla | 2002 | Undisclosed | Trinidad | Jul 23 | Jul 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 | Jun 24 | Expect approx. 45 days out of service for planned maintenance in 3Q24 | ||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 247 | LT Super Gorilla | 1998 | Perenco Undisclosed | UK Australia | Mar 23 Mar 24 | Nov 23 Jun 24 | $180,000 | Plus mobilization and demobilization fees that cover moving and operating costs while the rig is in transit | |||||||||||||||||||||||||||||||||||||||||||||
| 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 15
| Valaris Limited Fleet Status Report August 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 | Netherlands | Mar 23 | Oct 23 | Expect approx. 30 days out of service for planned maintenance in 2Q24 | |||||||||||||||||||||||||||||||||||||||||||
VALARIS 122 | KFELS Super A | 2014 | Shell | UK | Nov 22 Sep 23 | Aug 23 Jan 25 | Total contract value of over $60 million based on estimated duration of 500 days | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 121 | KFELS Super A | 2013 | Petrofac Shell | UK UK | Jul 23 Oct 23 | Sep 23 Apr 24 | Total contract value of over $25 million. Four priced options | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 120 | KFELS Super A | 2013 | Harbour Energy | UK | Jul 17 Jul 23 | Jul 23 Sep 25 | $130,000 | Expect approx. 60 days out of service for planned maintenance in 2Q24 | ||||||||||||||||||||||||||||||||||||||||||
| 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 15
| Valaris Limited Fleet Status Report August 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 | Trinidad | Oct 22 Jul 23 | Jun 23 Jan 24 | Total contract value of approx. $24 million. Expect approx. 15 days out of service for planned maintenance in 4Q24 | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 117 | LT 240-C | 2009 | Eni | Mexico | Dec 21 | Nov 24 | ||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 116 | LT 240-C | 2008 | Saudi Aramco | Saudi Arabia | Dec 18 | Dec 24 | Leased to ARO Drilling(5). Expect approx. 40 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 | Aug 23 | Aug 26 | Leased to ARO Drilling(5) | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 107 | KFELS MOD V-B | 2006 | Eni GB Energy Beach Energy Undisclosed Undisclosed ExxonMobil | Australia Australia New Zealand Australia Australia Australia | Mar 23 May 23 Aug 23 Jan 24 Mar 24 Oct 24 | May 23 Jul 23 Dec 23 Feb 24 Sep 24 Oct 25 | $127,000 $118,000 $120,000 $150,000 $153,000 | Total contract value of approx. $26 million, including mobilization and demobilization fee Two 180-day priced options | ||||||||||||||||||||||||||||||||||||||||||
| VALARIS 106 | KFELS MOD V-B | 2005 | BP | Indonesia | Jan 18 | Jan 24 | Seven 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 15
| Valaris Limited Fleet Status Report August 1, 2023 | |||||||||||||
| Asset Category / Rig | Design | Year Delivered | Customer | Location | Contract Start Date | Contract End Date(1) | Day Rate(2) | Comments | ||||||||||||||||||||||||||||||||||||||||||
| Jackups | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Standard Duty - Modern | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 148 | LT Super 116-E | 2013 | Saudi Aramco | Saudi Arabia | Nov 19 | Feb 26 | Leased to ARO Drilling(5). Expect approx. 40 days out of service for planned maintenance in 2Q24 | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 147 | LT Super 116-E | 2013 | Saudi Aramco | Saudi Arabia | Sep 19 | Dec 25 | Leased to ARO Drilling(5). Expect approx. 50 days out of service for planned maintenance in 1Q24 | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 146 | LT Super 116-E | 2011 | Saudi Aramco | Saudi Arabia | Sep 18 | Dec 24 | Leased to ARO Drilling(5). Expect approx. 40 days out of service for planned maintenance in 2Q24 | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 144 | LT Super 116-E | 2010 | Cantium Talos | U.S. GOM U.S. GOM | Apr 23 Oct 23 | Oct 23 Jan 24 | $85,000 $87,000 | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 143 | LT Super 116-E | 2010 | Saudi Aramco | Saudi Arabia | Oct 18 | Dec 24 | Leased to ARO Drilling(5). Expect approx. 15 days out of service for planned maintenance in 3Q24 | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 141 | LT Super 116-E | 2016 | Saudi Aramco | Saudi Arabia | Aug 22 | Aug 25 | Leased to ARO Drilling(5) | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 140 | LT Super 116-E | 2016 | Saudi Aramco | Saudi Arabia | Mar 22 | Mar 25 | Leased to ARO Drilling(5) | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 76 | LT Super 116-C | 2000 | Saudi Aramco | Saudi Arabia | Jan 15 Feb 24 | Oct 23 Feb 29 | Expect approx. 100 days out of service for contract preparations across 4Q23 and 1Q24. Leased to ARO Drilling(5) | |||||||||||||||||||||||||||||||||||||||||||
| Stacked | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 145 | LT Super 116-E | 2010 | U.S. GOM | |||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 75 | LT Super 116-C | 1999 | U.S. GOM | |||||||||||||||||||||||||||||||||||||||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 8 of 15
| Valaris Limited Fleet Status Report August 1, 2023 | |||||||||||||
| Asset Category / Rig | Design | Year Delivered | Customer | Location | Contract Start Date | Contract End Date(1) | Day Rate(2) | Comments | ||||||||||||||||||||||||||||||||||||||||||
| Jackups | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Standard Duty - Legacy | ||||||||||||||||||||||||||||||||||||||||||||||||||
| VALARIS 92 | LT 116-C | 1982 | Harbour Energy | UK | Feb 17 Mar 24 | Feb 24 Feb 26 | $95,000 | |||||||||||||||||||||||||||||||||||||||||||
| VALARIS 72 | Hitachi K1025N | 1981 | Eni | UK | Jan 20 | Dec 24 | Expect approx. 55 days out of service for planned maintenance in 3Q23 | |||||||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||||||||
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 9 of 15
| Valaris Limited Fleet Status Report August 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 | |||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||
| ARO 3003 | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct 18 | Dec 26 | |||||||||||||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||||||||||||
| ARO 2005 | LT 116-C | Saudi Arabia | Under construction. Delivery expected in 2023 | |||||||||||||||||||||||||||||||||||||||||
| ARO 2006 | LT 116-C | Saudi Arabia | Under construction. Delivery expected in 2023 | |||||||||||||||||||||||||||||||||||||||||
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.
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| Valaris Limited Fleet Status Report August 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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