EX-99.1 2 fsrex99_1april2024.htm EX-99.1 Document

    
slide11.jpg



    
image8.jpg
Valaris Limited
Fleet Status Report
April 30, 2024
New Contracts, Extensions and Other Updates Since Last Fleet Status Report
Contract Backlog
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 February 15, 2024. Contract backlog excludes lump sum payments such as mobilization fees and capital reimbursements.
Contract backlog increased to approximately $4.0 billion from approximately $3.9 billion as of February 15, 2024.
Floater Contract Awards
Six-month priced option exercised by ExxonMobil for drillship VALARIS DS-9. The six-month option will commence in January 2025 in direct continuation of the existing firm program.
60-day priced option exercised by Equinor offshore Brazil for drillship VALARIS DS-17. The 60-day option is expected to commence in May 2025 in direct continuation of the existing firm contract. The operating day rate for the priced option period is approximately $497,000 including MPD and additional services.
Jackup Contract Awards
13-well contract offshore Angola for jackup VALARIS 144. The contract is expected to commence in the second quarter 2025 and has an estimated duration of between 730 days and 770 days. The total contract value is estimated to be between $149 million and $156 million, including a mobilization fee from the U.S. Gulf of Mexico.
One-well priced option exercised by TotalEnergies in the UK North Sea for heavy duty harsh environment jackup VALARIS Stavanger. The well has an estimated duration of 30 days and will be added to the existing firm program, increasing the total contract value by approximately $4 million.
Other Contract Awards
Three-year contract extensions with BP in the U.S. Gulf of Mexico for managed rigs Mad Dog and Thunder Horse. The contract extensions were effective on January 27, 2024. The three-year extension periods have a combined estimated total contract value of approximately $259 million.
Other Fleet Status Updates
The contract between ARO and Saudi Aramco for jackup VALARIS 143 will be suspended with an expected effective date in May 2024. ARO has provided notice to Saudi Aramco to terminate the contract effective seven days after the contract suspension date. Upon termination of the contract, the bareboat charter agreement between Valaris and ARO will also be terminated, and the rig will return to Valaris.
Valaris has received a contract suspension notice for VALARIS 92 that is estimated to take effect from February 26, 2025, at the end of the Operator's planned work scope. The contract was previously scheduled to end in February 2026. The contract suspension results in a reduction to contract backlog of approximately $35 million.
 








Page 1 of 15


    
image8.jpg
Valaris Limited
Fleet Status Report
April 30, 2024
Contract Backlog(1) (2)
($ millions)
202420252026+Total
Contracted Days(1) (2)
202420252026+
Drillships$720.9 $870.9 $632.1 $2,223.9 Drillships2,098 2,260 1,493 
Semisubmersibles127.3 53.4 — 180.7 Semisubmersibles548 240 — 
Floaters$848.2 $924.3 $632.1 $2,404.6 Floaters2,646 2,500 1,493 
HD - Harsh Environment $257.8 $196.5 $152.7 $607.0 HD - Harsh Environment2,084 1,351 920 
HD & SD - Modern147.0 154.5 147.6 449.1 HD & SD - Modern1,384 1,095 967 
SD - Legacy39.5 35.2 54.1 128.8 SD - Legacy494 412 637 
Jackups$444.3 $386.2 $354.4 $1,184.9 Jackups3,962 2,858 2,524 
Other(3)
$125.0 $142.1 $160.6 $427.7 
Other(3)
2,644 2,457 2,549 
Total$1,417.5 $1,452.6 $1,147.1 $4,017.2 Total9,252 7,815 6,566 
ARO Drilling(4)
Average Day Rates(1) (2)
202420252026+
Owned Rigs$240.4 $362.0 $796.5 $1,398.9 Drillships$344,000 $385,000 $423,000 
Leased Rigs216.1 174.9 192.3 583.3 Semisubmersibles232,000 223,000 — 
Total$456.5 $536.9 $988.8 $1,982.2 Floaters$321,000 $370,000 $423,000 
HD - Harsh Environment$124,000 $145,000 $166,000 
HD & SD - Modern106,000 141,000 153,000 
SD - Legacy80,000 85,000 85,000 
Jackups$112,000 $135,000 $140,000 
(1) Contract backlog, contracted days and average day rates as of April 30, 2024.
(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 April 30, 2024.
HD = Heavy Duty; SD = Standard Duty
Page 2 of 15


image8.jpg
Valaris Limited
Fleet Status Report
April 30, 2024
Asset Category / RigDesignYear DeliveredCustomerLocationContract Start Date
Contract End Date(1)
Day Rate(2)
Comments
Drillships     
VALARIS DS-18GustoMSC P100002015ChevronU.S. GOMAug 22Aug 25Contract includes MPD services. Additional rate charged when MPD services provided
VALARIS DS-17GustoMSC P100002014Equinor
Equinor
Brazil / Argentina
Brazil
Sep 23
May 25
Apr 25
Jun 25
$447,000
$497,000
Contract includes MPD and additional services
VALARIS DS-16

GustoMSC P100002014Occidental
Occidental
U.S. GOM
U.S. GOM
Jun 22
Jun 24
Jun 24
Jun 26
Contract includes MPD services. Additional rate charged when MPD services provided. Plus one-year priced option
VALARIS DS-15GustoMSC P100002014TotalEnergies
BP
TotalEnergies
TotalEnergies
Brazil
Brazil
Brazil
Brazil
Jun 21
May 24
Jul 24
Nov 24

Apr 24
Jul 24
Nov 24
Jul 25

$410,000
$254,000
$400,000
Contract includes MPD services. Additional rate charged when MPD services provided


Additional rate charged when MPD and additional services provided. Two 160-day priced options and one 120-day priced option, with increased operating day rates for each option period. Total contract value for option periods if exercised, excluding the provision of MPD and additional services, is approximately $210 million
VALARIS DS-12
DSME 120002013BPEgyptJan 24Nov 24

Total contract value of $136 million
VALARIS DS-10
Samsung GF120002017SNEPCoNigeriaApr 23May 24$231,000
VALARIS DS-9Samsung GF120002015ExxonMobilAngolaJul 22Jul 25
Contract includes MPD services. Two 6-month priced options
VALARIS DS-8Samsung GF120002015PetrobrasBrazilDec 23Dec 26$428,000Plus mobilization fee of approx. $30 million. Contract includes additional services
VALARIS DS-7Samsung 96K2013UndisclosedWest AfricaJun 24Sep 26Total contract value estimated to be $364 million. Estimated duration of 850 days. Rig being reactivated in Spain
VALARIS DS-4Samsung 96K2010Petrobras

Petrobras
Brazil

Brazil
Jul 22

Dec 24
Sep 24

Nov 27


$450,000
Contract includes MPD and additional services. Expect approx. 90 days out of service for contract preparations across 3Q24 and 4Q24
Plus mobilization fee of approx. $41 million. Contract includes MPD and additional services
Stacked
VALARIS DS-14

DSME 120002023Spain
Rig has arrived in Las Palmas, Spain, where it will be stacked until contracted
VALARIS DS-13

DSME 120002023Spain
Rig has arrived in Las Palmas, Spain, where it will be stacked until contracted
VALARIS DS-11DSME 120002013Spain
Changes: bolded rig names and underlined text signify changes in rig status from previous fleet status report
Page 3 of 15


image8.jpg
Valaris Limited
Fleet Status Report
April 30, 2024
Asset Category / RigDesignYear DeliveredCustomerLocationContract Start Date
Contract End Date(1)
Day Rate(2)
Comments
Semisubmersibles
VALARIS DPS-5


ENSCO 8500 Series,
DP + Moored
2012Apache
Eni
U.S. GOM
Mexico
Dec 23
Mar 24
Jan 24
Jun 24

$345,000

Plus $3 million mobilization fee
VALARIS DPS-1


F&G ExD Millennium, DP2012Woodside
Woodside


Australia
Australia


Apr 22
Jan 24
Jan 24
Jun 25
VALARIS MS-1


F&G ExD Millennium, Moored2011Santos
Santos

Australia
Australia



Jul 22
Jan 24

Jan 24
Mar 25


Operations recommenced in Jan 24 following a suspension period. Three priced options each with an estimated duration of 45 days


Stacked
VALARIS DPS-6
ENSCO 8500 Series, DP2012U.S. GOM
VALARIS DPS-3
ENSCO 8500 Series,
DP + Moored
2010U.S. GOM
Changes: bolded rig names and underlined text signify changes in rig status from previous fleet status report


Page 4 of 15


image8.jpg
Valaris Limited
Fleet Status Report
April 30, 2024
Asset Category / RigDesignYear DeliveredCustomerLocationContract Start Date
Contract End Date(1)
Day Rate(2)
Comments
Heavy Duty - Harsh Environment Jackups
VALARIS NorwayKFELS N Class2011EniUKJan 24
Jan 25




VALARIS Norway substitutes for VALARIS 72 until the rig completes its current contract. Expect approx. 30 days out of service for planned maintenance in 1Q25
VALARIS StavangerKFELS N Class2011TotalEnergiesUKMay 24May 25
Total contract value of approx. $52 million including minor rig modifications. Two priced options with an estimated duration of 270 days each
VALARIS 250LT Super Gorilla XL2003Saudi AramcoSaudi ArabiaJun 18Dec 24
Leased to ARO Drilling(4). Expect approx. 10 days out of service for planned maintenance in 3Q24
VALARIS 249LT Super Gorilla2001Undisclosed
Undisclosed
Perenco
Undisclosed
Trinidad
Trinidad
Trinidad
Trinidad
Jul 23
Aug 24
Oct 24
Dec 24
Jul 24
Oct 24
Dec 24
Oct 25
$125,000
$138,000

$163,000
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 248LT Super Gorilla2000NeptuneUKAug 20Jan 25
Expect approx. 50 days out of service for planned maintenance in 1Q25.
VALARIS 247LT Super Gorilla1998Perenco
Undisclosed

Eni
UK
Australia

Australia
Mar 23
Jun 24

Sep 24
Jan 24
Sep 24

Nov 24

$180,000

$180,000
Expect approx. 60 days out of service for mobilization and contract preparations in 2Q24
Plus mobilization and demobilization fees that cover moving and operating costs while the rig is in transit
VALARIS 123KFELS Super A2019Ithaca Energy

Shell
TAQA
TAQA
UK

UK
Netherlands
Netherlands
Apr 24

Jun 24
Nov 24
Jan 25

Jun 24

Nov 24
Dec 24
Jun 25




$143,000
$153,000
Minimum total contract value of $6.3 million. Expect approx. 15 days out of service for contract preparations in 2Q24
Estimated total contract value of approx. $21 million
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 A2013ShellUKSep 23May 25Total contract value of over $60 million based on initial estimated duration of 500 days. Expect approx. 20 days out of service for planned maintenance in 3Q24
VALARIS 121KFELS Super A2013Shell
Shell
UK
UK
Nov 23
Aug 24
Aug 24
Oct 25
Total contract value of over $25 million.
Total contract value of approx. $55 million. Plus two priced options
VALARIS 120KFELS Super A2013Harbour Energy
Harbour Energy
UKJul 23
Jul 25
Jul 25
Jul 28
$130,000
$166,000
Expect approx. 15 days out of service for planned maintenance in 3Q24
Stacked
VALARIS VikingKFELS N Class2010UK
VALARIS 102KFELS MOD V-A2002U.S. GOM
Changes: bolded rig names and underlined text signify changes in rig status from previous fleet status report
Page 5 of 15


image8.jpg
Valaris Limited
Fleet Status Report
April 30, 2024
Asset Category / RigDesignYear DeliveredCustomerLocationContract Start Date
Contract End Date(1)
Day Rate(2)
Comments
Heavy Duty - Modern Jackups(3)
VALARIS 118LT 240-C2012BP
BP
Trinidad
Trinidad
Jul 23
Apr 24
Apr 24
Apr 25
Total contract value of approx. $24 million
Total contract value of approx. $51 million
VALARIS 117LT 240-C2009EniMexicoDec 21Jan 25Expect approx. 30 days out of service for planned maintenance in 1Q25
VALARIS 116LT 240-C2008Saudi AramcoSaudi ArabiaDec 18Dec 24
Leased to ARO Drilling(4). Expect approx. 10 days out of service for planned maintenance in 3Q24
VALARIS 115BM Pacific Class 4002013ShellBruneiApr 23Apr 27Total contract value of approx. $159 million
VALARIS 110KFELS MOD V-B2015North Oil CompanyQatarOct 21Oct 24Two 1-year priced options
VALARIS 108KFELS MOD V-B2007Saudi AramcoSaudi ArabiaMar 24Mar 27
Leased to ARO Drilling(4)
VALARIS 107KFELS MOD V-B2006Beach Energy
Undisclosed
ExxonMobil
New Zealand
Australia
Australia
Oct 23
Mar 24
Oct 24
Jan 24
Sep 24
Oct 25

$150,000
$153,000
Total contract value of approx. $26 million, including mobilization and demobilization fee

Two 180-day priced options
VALARIS 106KFELS MOD V-B2005BP
BP
Indonesia
Indonesia
Jan 24
Jan 25
Oct 24
Mar 25
$85,000
$95,000
Two priced options each with an estimated duration of 90 days. Expect approx. 90 days out of service for planned maintenance in 4Q24
Stacked
VALARIS 111KFELS MOD V-B2003Croatia
VALARIS 109KFELS MOD V-Super B2008Namibia
VALARIS 104KFELS MOD V-B2002UAE
Changes: bolded rig names and underlined text signify changes in rig status from previous fleet status report
Page 6 of 15


image8.jpg
Valaris Limited
Fleet Status Report
April 30, 2024
Asset Category / RigDesignYear DeliveredCustomerLocationContract Start Date
Contract End Date(1)
Day Rate(2)
Comments
Standard Duty - Modern Jackups(3)
VALARIS 148LT Super 116-E2013Saudi AramcoSaudi ArabiaNov 19Feb 26
Leased to ARO Drilling(4)
VALARIS 147LT Super 116-E2013Saudi AramcoSaudi ArabiaSep 19Dec 25
Leased to ARO Drilling(4). Expect approx. 30 days out of service for planned maintenance in 3Q24
VALARIS 146LT Super 116-E2011Saudi AramcoSaudi ArabiaSep 18Dec 24
Leased to ARO Drilling(4). Expect approx. 25 days out of service for planned maintenance across 2Q24 and 3Q24
VALARIS 144LT Super 116-E2010
Talos

Undisclosed
U.S. GOM

Angola
Dec 23

Apr 25
Apr 24

May 27
$87,000Expect approx. 140 days out of service for contract preparations and mobilization across 4Q24 and 1Q25
Total contract value estimated to be between $149 million and $156 million, including a mobilization fee from the U.S. Gulf of Mexico
VALARIS 143LT Super 116-E2010Saudi AramcoSaudi ArabiaOct 18May 24Contract suspended with an expected effective date in May 2024. The contract was previously scheduled to end in Dec 2024
VALARIS 141LT Super 116-E2016Saudi AramcoSaudi ArabiaAug 22Aug 25
Leased to ARO Drilling(4)
VALARIS 140LT Super 116-E2016Saudi AramcoSaudi ArabiaMar 22Mar 25
Leased to ARO Drilling(4). Expect approx. 10 days out of service for planned maintenance in 3Q24
VALARIS 76LT Super 116-C2000Saudi AramcoSaudi ArabiaJul 24Jun 29Expect approx. 90 days out of service for contract preparations in 2Q24
Stacked
VALARIS 145LT Super 116-E2010U.S. GOM
VALARIS 75LT Super 116-C1999U.S. GOM
Changes: bolded rig names and underlined text signify changes in rig status from previous fleet status report
Page 7 of 15


image8.jpg
Valaris Limited
Fleet Status Report
April 30, 2024
Asset Category / RigDesignYear DeliveredCustomerLocationContract Start Date
Contract End Date(1)
Day Rate(2)
Comments
Standard Duty - Legacy Jackups
VALARIS 92LT 116-C1982Harbour Energy
Harbour Energy
UK
UK
Feb 17
Mar 24
Feb 24
Feb 25
$95,000

Contract suspended with an estimated effective date of Feb 26, 2025. The contract was previously scheduled to end in Feb 2026
VALARIS 72Hitachi K1025N1981Eni
Eni
UK
UK
Jan 20
Feb 25

Jan 25
Sep 27
Other - Managed Rigs
Thunder HorseDeepwater SemisubmersibleBPU.S. GOMJan 17
Jan 24
Jan 24
Jan 27

Total contract value of approx. $153 million
Mad DogDeepwater Spar Drilling RigBPU.S. GOM
Jan 17
Jan 24
Jan 24
Jan 27

Total contract value of approx. $106 million
Changes: bolded rig names and underlined text signify changes in rig status from previous fleet status report
Page 8 of 15


image8.jpg
Valaris Limited
Fleet Status Report
April 30, 2024
Asset Category / RigDesignCustomerLocationContract Start Date
Contract End Date(1)
Day Rate(2)
Comments
ARO Drilling
Jackup Rigs Owned by ARO Drilling 
Gilbert RoweLT 116-CSaudi AramcoSaudi ArabiaOct 17Jan 26
SAR 201BM 200-HSaudi AramcoSaudi ArabiaFeb 18Feb 26
Expect approx. 45 days out of service for planned maintenance across 3Q24 and 4Q24
Bob KellerLT Tarzan 225-CSaudi AramcoSaudi ArabiaOct 17Jan 26
J.P. BussellLT Tarzan 225-CSaudi AramcoSaudi ArabiaOct 17Jan 26Expect approx. 60 days out of service for planned maintenance in 2Q24
Scooter YeargainLT Tarzan 225-CSaudi AramcoSaudi ArabiaOct 18Dec 26Expect approx. 15 days out of service for planned maintenance in 2Q24
Hank BoswellLT Tarzan 225-CSaudi AramcoSaudi ArabiaOct 18Dec 26
SAR 202KFELS Super BSaudi AramcoSaudi ArabiaOct 17Jan 26
Kingdom 1LT 116-CSaudi AramcoSaudi ArabiaNov 23Nov 31
Kingdom 2LT 116-CSaudi AramcoSaudi ArabiaMay 24May 32Under construction. Delivery expected in 2Q24
Changes: bolded rig names and underlined text signify changes in rig status from previous fleet status 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) Heavy duty jackups are well-suited for operations in tropical revolving storm areas.
(4) Rigs leased to ARO Drilling via bareboat charter agreements to fulfill contracts between ARO Drilling and Saudi Aramco.

Page 9 of 15


image8.jpg
Valaris Limited
Fleet Status Report
April 30, 2024

Out of Service Days (1)
RigAsset CategoryQ2 2024Q3 2024Q4 2024Q1 2025
VALARIS DS-4Floater - Drillship1080
VALARIS NorwayJackup - Heavy Duty Harsh Environment30
VALARIS 250Jackup - Heavy Duty Harsh Environment (Leased to ARO Drilling)10
VALARIS 248Jackup - Heavy Duty Harsh Environment50
VALARIS 247Jackup - Heavy Duty Harsh Environment6030
VALARIS 123Jackup - Heavy Duty Harsh Environment15
VALARIS 122Jackup - Heavy Duty Harsh Environment20
VALARIS 120Jackup - Heavy Duty Harsh Environment15
VALARIS 117Jackup - Heavy Duty Modern30
VALARIS 116Jackup - Heavy Duty Modern (Leased to ARO Drilling)10
VALARIS 106Jackup - Heavy Duty Modern90
VALARIS 147Jackup - Standard Duty Modern (Leased to ARO Drilling)30
VALARIS 146Jackup - Standard Duty Modern (Leased to ARO Drilling)1510
VALARIS 144Jackup - Standard Duty Modern5090
VALARIS 140Jackup - Standard Duty Modern (Leased to ARO Drilling)10
VALARIS 76Jackup - Standard Duty Modern (Leased to ARO Drilling)90

(1) Table shows expected out of service days for planned maintenance, e.g. special periodic surveys and contract preparation, excluding rigs undergoing reactivation projects. Excludes ARO owned rigs.

Page 10 of 15


slide1.jpg
Page 11 of 15


slide2.jpg
Page 12 of 15


slide3.jpg
Page 13 of 15


slide12.jpg
Page 14 of 15


image8.jpg
Valaris Limited
Fleet Status Report
April 30, 2024
 
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 and the attainment of requisite permits for such 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; cybersecurity attacks and threats; impacts and effects of public health crises, pandemics and epidemics; future operations; ability to renew expiring contracts or obtain new contracts, including for VALARIS DS-13 and DS-14; increasing regulatory complexity; targets, progress, plans and goals related to sustainability 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 sustainability targets, 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.
Page 15 of 15


fsrbackpage_043024xlegala.jpg