EX-99.1 2 ex99_1january2023.htm EX-99.1

    

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Valaris Limited Fleet Status Report January 12, 2023

New Contracts and Extensions, Rig Sales and Other Updates Since Last Fleet Status Report
Floaters •Four-well contract with BP offshore Egypt for drillship VALARIS DS-12. The contract is expected to commence late in third quarter or early in fourth quarter 2023 and has an estimated duration of 320 days. The estimated total contract value, inclusive of a mobilization fee, is $136 million. •Option exercised by TotalEnergies EP Brasil offshore Brazil for drillship VALARIS DS-15. Following the exercise of this option, the rig is expected to be under contract through December 2023. There is one priced option remaining with an estimated duration of 100 days.        Jackups •Two one-year options exercised by Harbour Energy in the UK North Sea for heavy duty harsh environment jackup VALARIS 120. The first option period is expected to commence in July 2023 in direct continuation of the existing contract. •One-well contract with Petrofac in the UK North Sea for heavy duty harsh environment jackup VALARIS 121. The contract is expected to commence early in third quarter 2023 and has an estimated duration of 70-100 days. •210-day contract with Shell in the UK North Sea for heavy duty harsh environment jackup VALARIS 121. The contract is expected to commence early in fourth quarter 2023. The expected total contract value is over $25 million. The contract has four priced options. •90-day contract with Kistos in the Dutch North Sea for heavy duty harsh environment jackup VALARIS 123. The contract commenced in November 2022. VALARIS 123 will use its selective reduction (SCR) system during the contract with Kistos to significantly reduce NOx emissions from the rig. •195-day contract with ONE-Dyas in the Dutch North Sea for heavy duty harsh environment jackup VALARIS 123. The contract is expected to commence in first quarter 2023 in direct continuation of the rig's current contract. VALARIS 123 will utilize its selective catalytic reduction (SCR) system during the contract with ONE-Dyas to significantly reduce NOx emissions from the rig. •180-day contract with Perenco in the UK North Sea for heavy duty ultra-harsh environment jackup VALARIS 247. The contract is expected to commence in first quarter 2023. The contract has one 60-day priced option. •90-day option exercised by Cantium in the U.S. Gulf of Mexico for standard duty modern jackup VALARIS 144. The option period is expected to commence in March 2023 in direct continuation of the existing contract. The operating day rate for the option period is $85,000. •One-well option exercised by Talos in the U.S. Gulf of Mexico for standard duty modern jackup VALARIS 144. The option is in direct continuation of the existing program and has an estimated duration of 30 days. The operating day rate is $86,900. •One-well contract with North Sea Natural Resources in the UK North Sea for heavy duty ultra-harsh environment jackup VALARIS Norway. The operating day rate is $105,000. ARO Drilling •Three-year contract extension offshore Saudi Arabia for standard duty modern jackup VALARIS 147. The extension period commenced in December 2022 in direct continuation of the existing contract. In accordance with the terms of our shareholder agreement, Valaris will bareboat charter VALARIS 147 to ARO. •Three-year contract extension offshore Saudi Arabia for standard duty modern jackup VALARIS 148. The extension period is expected to commence in February 2023 in direct continuation of the existing contract. In accordance with the terms of our shareholder agreement, Valaris will bareboat charter VALARIS 148 to ARO.

New Disclosure: bolded text signifies items that have not been previously disclosed

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Valaris Limited Fleet Status Report January 12, 2023

Contract Backlog(1) (2) ($ millions)			2023			2024			2025+			Total						Contracted Days(1) (2)			2023			2024			2025+
Drillships			$	554.9		$	426.3		$	61.1		$	1,042.3					Drillships			2,227			1,323			219
Semisubmersibles			228.2			110.7			—			338.9						Semisubmersibles			942			487			—
Floaters			$	783.1		$	537.0		$	61.1		$	1,381.2					Floaters			3,169			1,810			219
HD - Ultra-Harsh & Harsh			$	195.3		$	91.5		$	24.6		$	311.4					HD - Ultra-Harsh & Harsh			1,874			718			189
HD & SD - Modern			206.0			58.7			92.7			357.4						HD & SD - Modern			2,354			684			823
SD - Legacy			55.4			11.3			—			66.7						SD - Legacy			749			174			—
Jackups			$	456.7		$	161.5		$	117.3		$	735.5					Jackups			4,977			1,576			1,012
Other(3)			$	152.1		$	87.6		$	31.3		$	271.0					Other(3)			3,530			2,968			1,050
Total			$	1,391.9		$	786.1		$	209.7		$	2,387.7					Total			11,676			6,354			2,281
ARO Drilling(4)																		Average Day Rates(1) (2)			2023			2024			2025+
Owned Rigs			$	238.5		$	246.6		$	336.3		$	821.4					Drillships			$	249,000		$	322,000		$	279,000
Leased Rigs			269.2			280.0			101.7			650.9						Semisubmersibles			242,000			227,000			—
Total			$	507.7		$	526.6		$	438.0		$	1,472.3					Floaters			$	247,000		$	297,000		$	279,000
																		HD - Ultra-Harsh & Harsh			$	104,000		$	127,000		$	130,000
																		HD & SD - Modern			88,000			86,000			113,000
																		SD - Legacy			74,000			65,000			—
																		Jackups			$	92,000		$	102,000		$	116,000
(1) Contract backlog, contracted days and average day rates as of January 12, 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 January 12, 2023. HD = Heavy Duty; SD = Standard Duty

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Valaris Limited Fleet Status Report January 12, 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

VALARIS DS-17

GustoMSC P10000

2014

Equinor

Brazil

Jun 23

Dec 24

Contract includes MPD and additional services. Rig being reactivated in Spain. 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. 1-year priced option

VALARIS DS-15

GustoMSC P10000

2014

TotalEnergies

Brazil

Jun 21

Dec 23

Contract includes MPD services. Priced option with an estimated duration of 100 days

VALARIS DS-12

DSME 12000

2014

BP Undisclosed BP

Mauritania/Senegal Angola Egypt

Apr 22 Mar 23 Oct 23

Feb 23 May 23 Aug 24

Total contract value of $26.2 million Total contract value of $136 million

VALARIS DS-10

Samsung GF12000

2017

SNEPCo

Nigeria

Apr 22

Apr 23

Priced option with an estimated duration of 330 days

VALARIS DS-9

Samsung GF12000

2015

ExxonMobil

Angola

Jul 22

Jul 24

Contract includes MPD services. Four 6-month priced options

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

VALARIS DS-8

Samsung GF12000

2015

Spain

VALARIS DS-7

Samsung 96K

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

Changes: bolded rig names and underlined text signify changes in rig status from previous report

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Valaris Limited Fleet Status Report January 12, 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

Murphy Murphy Eni

U.S. GOM Mexico Mexico

Sep 22 Oct 22 Jan 23

Oct 22 Dec 22 Aug 23

$313,500

Plus mobilization fee of approx. $1.2 million

VALARIS DPS-1

F&G ExD Millennium, DP

2012

Woodside Woodside

Australia Australia

Apr 22 Mar 23

Mar 23 Sep 24

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 50 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

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Valaris Limited Fleet Status Report January 12, 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

BP Centrica Storage North Sea Natural Resources

UK UK UK

May 22 Jan 23 Aug 23

Nov 22 Apr 23 Sep 23

$105,000

VALARIS Stavanger

KFELS N Class

2011

Equinor

Norway UK

Oct 19

Nov 22

VALARIS Viking

KFELS N Class

2010

Repsol

Norway

Jun 22

Jan 23

VALARIS 250

LT Super Gorilla XL

2003

Saudi Aramco

Saudi Arabia

Jun 18

Dec 24

Leased to ARO Drilling(5)

VALARIS 249

LT Super Gorilla

2002

OMV

New Zealand

Feb 22

Apr 23

VALARIS 248

LT Super Gorilla

2000

Neptune

UK

Aug 20

Dec 23

VALARIS 247

LT Super Gorilla

1998

DNO Perenco

UK UK

May 21 Mar 23

Jan 23 Sep 23

One priced option with an estimated duration of 60 days

Changes: bolded rig names and underlined text signify changes in rig status from previous report

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Valaris Limited Fleet Status Report January 12, 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

Kistos ONE-Dyas

Netherlands Netherlands

Nov 22 Feb 23

Feb 23 Aug 23

VALARIS 122

KFELS Super A

2014

Shell Shell Shell

UK UK UK

Jan 20 Nov 22 Apr 23

Nov 22 Apr 23 Aug 24

Total contract value of over $60 million

VALARIS 121

KFELS Super A

2013

Harbour Energy Petrofac Shell

UK UK UK

Jul 21 Jul 23 Oct 23

Jan 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 Jul 25

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

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Valaris Limited Fleet Status Report January 12, 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 BP

Trinidad Trinidad

Oct 22 Jul 23

Jun 23 Jan 24

Total contract value of approx. $24 million

VALARIS 117

LT 240-C

2009

Eni

Mexico

Dec 21

Dec 23

VALARIS 116

LT 240-C

2008

Saudi Aramco

Saudi Arabia

Dec 18

Dec 24

Leased to ARO Drilling(5)

VALARIS 115

BM Pacific Class 400

2013

Mubadala Petroleum Shell

Thailand Singapore Brunei

Feb 22 Apr 23

Nov 22 Apr 27

SPS and contract preparations 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

Nov 18

Mar 23

VALARIS 107

KFELS MOD V-B

2006

Undisclosed Eni GB Energy Undisclosed

Australia Australia Australia Australia

Aug 22 Nov 22 Feb 23 Apr 23

Nov 22 Feb 23 Apr 23 Jul 23

$112,000 $115,000 $118,000 $120,000

One priced option with an estimated duration of 30 days

VALARIS 106

KFELS MOD V-B

2005

BP

Indonesia

Jan 18

Jan 24

Eight priced options each with an estimated duration of 90 days

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

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Valaris Limited Fleet Status Report January 12, 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)

VALARIS 147

LT Super 116-E

2013

Saudi Aramco

Saudi Arabia

Sep 19

Dec 25

Leased to ARO Drilling(5)

VALARIS 146

LT Super 116-E

2011

Saudi Aramco

Saudi Arabia

Sep 18

Dec 24

Leased to ARO Drilling(5)

VALARIS 144

LT Super 116-E

2010

Undisclosed Cantium Talos

U.S. GOM U.S. GOM U.S. GOM

Aug 22 Dec 22 Jul 23

Nov 22 Jun 23 Sep 23

$80,000 $86,900

Total contract value of approx. $5 million 90-day priced option

VALARIS 143

LT Super 116-E

2010

Saudi Aramco

Saudi Arabia

Oct 18

Dec 24

Leased to ARO Drilling(5)

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

Oct 23

Stacked

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

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Valaris Limited Fleet Status Report January 12, 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

Dec 23

VALARIS 72

Hitachi K1025N

1981

Eni

UK

Jan 20

Jun 24

VALARIS 54

F&G L-780 Mod II-C

1982

Saudi Aramco

Saudi Arabia

Sep 14

Mar 23

Held for Sale

VALARIS 145

LT Super 116-E

2010

U.S. GOM

Changes: bolded rig names and underlined text signify changes in rig status from previous report

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Valaris Limited Fleet Status Report January 12, 2023

Asset Category / Rig

Design

Customer

Location

Contract Start Date

Contract End Date(1)

Day Rate(2)

Comments

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

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 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 January 12, 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 are 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. 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 future rig day rates, including adjustments with customers; future levels of offshore drilling activity; expected utilization, day rates, revenues, operating expenses, rig commitments and availability, cash flow, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the effect, impact, potential duration and other implications of COVID-19; the offshore drilling market, including supply and demand, customer drilling programs, stacking and reactivation of rigs, effects of new and reactivated rigs on the market and effects of volatility in commodity prices; expected work commitments, awards and contracts; letters of intent; scheduled delivery dates for rigs; performance of our joint venture with Saudi Aramco; the timing of delivery, mobilization, contract commencement, availability, relocation or other movement of rigs; expected divestitures of assets; general market, business and industry conditions, trends and outlook; general political conditions, including political tensions, conflicts and war (such as the ongoing conflict in Ukraine); future operations; increasing regulatory complexity; and expense management. The forward-looking statements contained in this press release are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, which may, among other things, impact our ability to staff rigs and rotate crews; cancellation, suspension, renegotiation or termination of drilling contracts and programs, including drilling contracts which grant the customer termination rights if final investment decision (FID) is not received with respect to projects for which the drilling rig is contracted; potential additional asset impairments; failure to satisfy our debt obligations; 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; the effects of our emergence from bankruptcy on the Company's business, relationships, comparability of our financial results and ability to access financing sources; actions by regulatory authorities, or other third parties; actions by our security holders; commodity price fluctuations and volatility, customer demand, new rig supply, downtime and other risks associated with offshore rig operations; severe weather or hurricanes; changes in worldwide rig supply and demand, competition and technology; consumer preferences for alternative fuels; increased scrutiny of our Environmental, Social and Governance ("ESG") practices and reporting responsibilities; changes in customer strategy; governmental action, civil unrest and political and economic uncertainties; the COVID-19 outbreak and the related public health measures implemented by governments worldwide, 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; debt restrictions that may limit our liquidity and flexibility; and cybersecurity risks and threats. 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 SEC’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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