Forward-Looking Statements Statements contained in this investor presentation 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…
Post restructuring Valaris is an attractive investment opportunity Best in class fleet, strongest balance sheet and industry-leading operational backbone Compelling value proposition Focus on green solutions to reduce carbon…
Valaris has the largest fleet of modern offshore drilling rigs in the industry 11 Drillships1 5 Semisubmersibles Average age 6 years Average age 9 years 13 Ultra-Harsh & Harsh 24 HD & SD Modern Jackups2 7 SD Legacy Jackups2…
Valaris has the largest fleet of high-specification assets Fleet Quality of Major International Offshore Drillers Floaters Avg. Age1 Transocean 39 11 Valaris 2 31 16 13 60 3 Seadrill Ltd 23 10 3 2 Seadrill Ltd 18 14 10 1 43…
Valaris has an industry-leading operational backbone, underpinned by strong values and a purpose driven culture SAFETY RELIABILITY EFFICIENCY Controlling Process Safety Maximizing Rig Uptime Maximizing Productivity of Risk…
Valaris operations have unmatched scale and geographic diversity Presence in virtually all major offshore regions 3 2 Leading provider of shallow-water 10 jackup services in the Middle East 2 and North Sea, among…
Large and diversified customer base including major IOCs, NOCs and independents Number of Customers Served Since Valaris Merger Selection of Customers Served Since Valaris Merger 59 36 35 25 25 22 20 15 Valaris Transocean…
Valaris has the strongest balance sheet in the offshore drilling sector Net Debt1 (M) Valaris is the only major offshore driller (105) 224 248 1,059 1,887 6,166 with a net cash position 7,620 550M senior secured notes due 2028…
Valaris has an industry-leading cost structure Operating, Support and G&A Costs per Weighted Active Rig (M)1 18 16.7 16.5 16.6 16.0 15.6 15.3 15 13.6 13.4 11.8 11.6 12 9 6 3 0 Valaris Transocean Noble Diamond Seadrill…
Post restructuring Valaris is an attractive investment opportunity Best in class fleet, strongest balance sheet and industry-leading operational backbone Compelling value proposition Focus on green solutions to reduce carbon…
Valaris has a compelling value proposition built on four key elements 1 Active Fleet 3 Stacked Fleet Active fleet of 32 rigs is generating positive cash flow Stacked fleet of 19 high-quality modern assets with a total build cost of 7B,…
Fleet divided between cash generating active and leased rigs, and stacked assets with future option value Rig Numbers by Asset Category Active, Leased, Stacked and ARO Drilling Rigs 32 1 Drillships 4 Semisubmersibles HD…
1 Active fleet expected to generate 180-200M adjusted operating margin in 2021 % of Rigs With Contract Benign Floaters1 Active Fleet 2021E 100% 90% Revenue 1.0B 85% VAL 80% 78% 70% Utilization 75% 62% 60% 50% Operating Margin…
2 Leased and managed rigs expected to generate 70-80M operating margin in 2021 Leased Rigs Overview Summary Financial Information Valaris leases nine rigs to ARO Drilling through bareboat charter 2021E arrangements Operating Margin…
3 Stacked fleet has significant asset value even at current depressed price levels Stacked Fleet Overview Asset Value and Quality Stacked fleet of 19 high-quality modern Build Illustrative Asset Value of Stacked Fleet assets, with a…
3 Stacked fleet has meaningful option value in a market recovery scenario Number of Illustrative Annual Operating Margin from Stacked Fleet 20141 Stacked Rigs 7 Drillship Day Rates 200K 250K 300K 500K 2 Benign Semisubmersible Day…
4 ARO Drilling joint venture is a cash generative business with significant growth prospects ARO Drilling Overview ARO Drilling (ARO) is a 50/50 joint venture with Saudi Aramco, the largest customer for jackups in the world ARO…
2021 guidance with adjustments for stacking and one-time items Adjusted EBITDARPS measures the results Income Statement Guidance 2021E of the business adjusted for one-time reactivation and preservation costs, as well Adjusted EBITDA1…
Valaris equity trades at a significant discount to its major peers Implied Steel Value per Rig (M)1 205 119 100 64 43 26 25 Transocean Maersk Borr Noble Diamond Shelf Valaris 2 Implied Steel Value per Ultra-Deepwater…
Post restructuring Valaris is an attractive investment opportunity Best in class fleet, strongest balance sheet and industry-leading operational backbone Compelling value proposition Focus on green solutions to reduce carbon…
Offshore production is less carbon intensive than other forms of oil and gas extraction Average Scope 1 & 2 Emissions Intensity by Source KgCO2e/boe 70 Offshore oil and gas production has among 60 the lowest carbon emissions per…
Valaris operates in the heavily regulated marine environment with a historic focus on sustainability 23
Carbon footprint reduction strategy focused on three main areas Power Plant Optimization Emissions Reduction Hybridization & Shore Power Optimize fuel efficiency of Deploy nitrous oxide (NOX) Electrification to reduce use of existing…
Valaris has implemented several green solutions to date with more planned Power Plant & Dynamic Hybridization & Emissions Reduction Positioning Optimization Shore Power Solutions Engine optimization by operating at Selective Catalytic…
Valaris Intelligence Platform (VIP) allows real-time tracking and analytics of GHG emissions and fuel efficiency Emissions monitoring technology and Power BI dashboards being deployed across the fleet Currently on 12 rigs Goal to be…
Post restructuring Valaris is an attractive investment opportunity Best in class fleet, strongest balance sheet and industry-leading operational backbone Compelling value proposition Focus on green solutions to reduce carbon…
Utilization recovery presents opportunity for improvement in financial performance Global Fleet Supply and Utilization1 Valaris Pro Forma EBITDA and Global Fleet Utilization1 900 100% 4.0 3.9 90 3.7 3.5 800 90% 3.0 3.0 2.9 80…
Benign floater supply has declined by more than 40% from its peak in 2014 Benign Floater Supply and Demand1 Benign floater supply and demand increased significantly from 2009 to 2014 300 100% due to a sustained period of high oil…
Current modern supply expected to form majority of working fleet for many years ahead 38 Benign Floater Supply Net Change by Year1 Additions Retirements 26 28 11 17 18 18 18 15 12 15 13 10 10 11 8 4 5 6 6 7 2 2 0 0 2 1 0 0 0…
Jackup supply has declined by only 6% from its peak in early 2015 Jackup Supply and Demand Jackup supply and demand increased significantly from 2009 to 2014 due to a 600 100% sustained period of high oil prices 500 90% The oil price…
Jackup supply is expected to decline in the future with retirements from lower spec rigs Jackup Supply Net Change by Year Additions 103 Retirements 92 65 45 32 24 13 26 22 25 18 24 8 15 15 20 3 4 10 6 6 8 5 2 3 2 3 8 14 4 2…
Appendix 33
Valaris owns 50% of joint venture with Saudi Aramco, the worlds largest jackup customer 50% 50% Ownership Ownership Valaris operates five jackups offshore Saudi Arabia outside of ARO Drilling joint venture 440M 440M Shareholder…
Valaris retired 49 offshore drilling rigs since the beginning of 2014 with 16 rigs retired in 2020 Benign Floaters1,2 Avg. Age3 Jackups2 Avg. Age3 Transocean 14 21 35 27 Borr 37 35 Includes 3 drillships 5 18 and 6 semisubs…
Global Fleet Summary as of May 2021 All Floaters Benign Floaters1 Jackups Delivered Rigs Under Contract 110 88 327 Future Contract 15 14 29 Idle / Stacked 37 27 76 2 Active Fleet 162 129 432 Inactive 41 34 80 Total Fleet 203 163…
Contract Backlog as of April 30, 2021 Contract Backlog (M)1 Contract Days1 Average Day Rates (K)1 Asset Type 2021 2022 2023 Total 2021 2022 2023 2021 2022 2023 Drillships 112.6 44.2 - 156.8 584 259 - 193 171 - Semisubmersibles 67.5…
Non-GAAP Reconciliations (1 of 3) Financial Year 2009 Financial Year 2010 Pro Forma Pro Forma Millions Atwood Ensco Rowan Valaris Millions Atwood Ensco Rowan Valaris Net income (loss) 251 785 368 1,403 Net income (loss) 257 586 280…
Non-GAAP Reconciliations (2 of 3) Financial Year 2013 Financial Year 2014 Pro Forma Pro Forma Millions Atwood Ensco Rowan Valaris Millions Atwood Ensco Rowan Valaris Net income (loss) 350 1,428 253 2,031 Net income (loss) 341 (3,889)…
Non-GAAP Reconciliations (3 of 3) Financial Year 2017 Financial Year 2018 Pro Forma Pro Forma Millions Atwood Ensco Rowan Valaris Millions Atwood Ensco Rowan Valaris Net income (loss) (24) (304) 73 (255) Net income (loss) - (637)…
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