Valaris Limited Fleet Status Report February 18, 2025

Contract Backlog(1) (2) ($ millions)			2025			2026			2027+			Total						Contracted Days(1) (2)			2025			2026			2027+
Drillships			$	866.8		$	687.7		$	390.1		$	1,944.6					Drillships			2,281			1,567			740
Semisubmersibles			79.4			—			—			79.4						Semisubmersibles			359			—			—
Floaters			$	946.2		$	687.7		$	390.1		$	2,024.0					Floaters			2,640			1,567			740
HD - Harsh Environment			$	315.4		$	169.3		$	129.9		$	614.6					HD - Harsh Environment			2,213			1,102			784
HD & SD - Modern			245.3			171.0			111.1			527.4						HD & SD - Modern			1,897			1,133			718
SD - Legacy			56.5			68.3			46.2			171.0						SD - Legacy			624			730			508
Jackups			$	617.2		$	408.6		$	287.2		$	1,313.0					Jackups			4,734			2,965			2,010
Other(3)			$	92.7		$	114.1		$	64.7		$	271.5					Other(3)			1,222			1,460			1,540
Total			$	1,656.1		$	1,210.4		$	742.0		$	3,608.5					Total			8,596			5,992			4,290
ARO Drilling(4)																		Average Day Rates(1) (2)			2025			2026			2027+
Owned Rigs			$	313.4		$	204.6		$	606.9		$	1,124.9					Drillships			$	380,000		$	439,000		$	527,000
Leased Rigs			56.0			78.6			163.4			298.0						Semisubmersibles			221,000			—			—
Total			$	369.4		$	283.2		$	770.3		$	1,422.9					Floaters			$	358,000		$	439,000		$	527,000
																		HD - Harsh Environment			$	143,000		$	154,000		$	166,000
																		HD & SD - Modern			129,000			151,000			155,000
																		SD - Legacy			91,000			94,000			91,000
																		Jackups			$	130,000		$	138,000		$	143,000
(1) Contract backlog, contracted days and average day rates as of February 18, 2025. (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 may 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 February 18, 2025. HD = Heavy Duty; SD = Standard Duty

Valaris Limited Fleet Status Report February 18, 2025

Asset Category / Rig

Design

Year Delivered

Customer

Location

Contract Start Date

Contract End Date(1)

Day Rate(2)

Comments

Standard Duty - Legacy Jackups

VALARIS 92

LT 116-C

1982

Harbour Energy Shell

UK UK

Mar 24 Jun 25

Jun 25 Jun 27

$95,000

TCV of approx. $75 million based on duration of two years

VALARIS 72

Hitachi 300C

1981

Eni Eni

UK UK

Jan 20 Apr 25

Apr 25 Nov 27

Other - Managed Rigs

Thunder Horse

Deepwater Semisubmersible

BP

U.S. Gulf

Jan 24

Jan 27

TCV of approx. $153 million

Mad Dog

Deepwater Spar Drilling Rig

BP

U.S. Gulf

Jan 24

Jan 27

TCV of approx. $106 million

Sold

VALARIS 75

LT Super 116-C

1999

U.S. Gulf

Sold for $24 million

(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.

(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.

 

 

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," "outlook," "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 and expected benefits 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 ARO 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; uncertainty around the use and impacts of artificial intelligence applications; 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 VALARIS 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, tariffs 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; the use of artificial intelligence by us, third-party service providers or our competitors; 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, including in any return of capital plans; 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.