Financial Data and Key Metrics Changes - For Q4 2019, adjusted EBITDA was $22 million, down from $35 million in Q3 2019, with revenue decreasing to $512 million from $551 million [53] - Full year 2019 operational utilization was 98%, with Q4 utilization at 97% for floaters and 99% for jackups [8][9] - The total recordable incident rate for safety performance was 0.28, 30% better than the industry average [9] Business Line Data and Key Metrics Changes - In the floater segment, revenue declined to $216 million from $270 million in the prior quarter due to fewer operating days for certain rigs [54] - Jackup segment revenue increased to $231 million from $218 million, driven by new contracts for several rigs [55] - ARO Drilling's operating income was $17 million, down from $22 million in Q3, with increased revenues but also higher contract drilling expenses [64] Market Data and Key Metrics Changes - Global jackup utilization improved to 75% from 68% a year ago, with the number of contracted jackups increasing to 395 [42] - Utilization for higher specification drillships was 82%, compared to 61% for the remaining drillships [36] - Total utilization for old floaters increased to 67% from 62% a year ago, driven by longer contract lengths [34] Company Strategy and Development Direction - The company focuses on four main priorities: integration and synergy capture, delivering value from ARO Drilling, managing the balance sheet, and fleet management [13] - The integration plan aims to achieve $165 million in synergies, with 80% of onshore activities completed and a run rate synergy capture of approximately $135 million by the end of 2019 [14] - The company plans to achieve additional cost savings exceeding $100 million annually by mid-2021, totaling at least $265 million in annual savings compared to pre-merger levels [17] Management's Comments on Operating Environment and Future Outlook - Management noted that customer demand has remained steady despite commodity price volatility, with market conditions gradually improving [33] - The company expects total revenues for Q1 2020 to be approximately $470 million, a decline from Q4 2019, due to the retirement of older rigs and out-of-service time for others [67] - Full year 2020 revenue outlook is between $2 billion and $2.1 billion, with expectations of improved utilization and day rates throughout the year [71] Other Important Information - The company ended 2019 with no amounts drawn on its revolving credit facility, with available liquidity increasing by $108 million in Q4 [63] - The company expects to incur approximately $80 million in additional one-time transaction and integration costs, leading to a total of at least $265 million in annualized savings beginning in mid-2021 [77] - Capital expenditures for 2020 are expected to be approximately $160 million, primarily for maintenance and minor upgrades [78] Q&A Session Summary Question: Timing of contract awards for floater opportunities - Management indicated that contracts are actively being tendered and some are expected to be awarded soon, with a flurry of contracts anticipated in the coming weeks [85] Question: Interest in specialized work and financing - Management expressed interest in specialized work and noted that various financing options are being considered, emphasizing the need for rapid paybacks [91][92] Question: Managing cash and revolver use - Management discussed the importance of managing cash flow and indicated that while there was a draw on the revolver, they are focused on monitoring working capital and cash collections [99]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-8097 Valaris plc (Exact name of registrant as specified in its charter) England and Wales 98-0635229 (State or other jurisdiction of in ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $35 million for Q3 2019, which is approximately $26 million better than the outlook provided in the previous quarter [8][54]. - Revenue for Q3 2019 was $551 million, down from $584 million in the prior quarter [56]. - Contract drilling expense was $488 million, consistent with the prior quarter and $17 million lower than previous guidance [58]. Business Line Data and Key Metrics Changes - In the floater segment, revenue declined to $270 million from $296 million due to fewer operating days for certain rigs [56]. - The jackup segment saw revenue decrease to $218 million from $229 million, primarily due to a four percentage point decline in utilization [57]. - ARO Drilling's operating income was $22 million, down from $27 million in the previous quarter [65]. Market Data and Key Metrics Changes - Global floater fleet utilization increased to 67% from 58% a year ago, driven by increased contracting activity [32]. - Jackup utilization improved to approximately 73% compared to 66% a year ago, with a significant increase in contracted rigs [41]. - The utilization of modern ultra-harsh and harsh environment rigs in the North Sea stands at 98% [43]. Company Strategy and Development Direction - The company is focused on four main priorities: integration and synergy capture, delivering value from ARO Drilling, proactive balance sheet management, and disciplined fleet management [9][49]. - The company aims to deliver significant incremental merger synergies beyond the previously announced target of $165 million [13]. - The strategy includes a disciplined portfolio approach to contracting and managing the fleet, with a focus on cash-generating contracts [20][27]. Management's Comments on Operating Environment and Future Outlook - Management noted concerns over a potential global economic slowdown impacting hydrocarbon demand, which could affect customer activity [30][81]. - The company expects total revenues for Q4 2019 to be approximately $505 million, with fleet utilization declining to about 60% [72]. - Management anticipates that EBITDA will improve year-over-year in 2020, driven by new contracts and cost management efforts [100]. Other Important Information - The company has available liquidity of $1.6 billion, including $130 million in cash and $1.5 billion in undrawn capacity on its revolving credit facility [77]. - An arbitration award for $180 million is pending from a legal matter with Samsung Heavy Industries, with uncertain timing for collection [86][87]. - The company has reached an agreement to delay the delivery of newbuild drillships, which will help manage cash flow [88][89]. Q&A Session Summary Question: Optimism about the floater market - Management noted an increase in customer inquiries and contract lengths, indicating a more favorable market for floaters [110][115]. Question: Liquidity and secured debt markets - Management confirmed liquidity of $1.6 billion is available, but emphasized that relying on the revolver is not a long-term strategy [119][122]. Question: Availability of high-end drillships - Management expressed confidence that options on high-end drillships would likely be exercised, with opportunities in the Mediterranean [128]. Question: Reactivating jackup rigs - Management stated that reactivation of sidelined jackups would depend on favorable economics, focusing on keeping core rigs working [131].

PART I - FINANCIAL INFORMATION [Financial Statements](index=6&type=section&id=Item%201%2E%20Financial%20Statements) The company's Q3 2019 net loss widened due to higher expenses and impairment charges, though year-to-date results show net income driven by a large acquisition gain [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Increased revenues from the Rowan acquisition were offset by higher operating expenses, though a significant bargain purchase gain boosted nine-month income Three Months Ended September 30 (in millions) | Financial Metric | 2019 | 2018 | | :--- | :--- | :--- | | **Operating Revenues** | $551.3 | $430.9 | | Total operating expenses | $783.8 | $472.8 | | **Operating Loss** | $(236.2) | $(41.9) | | **Net Loss** | $(197.5) | $(142.9) | | **Net Loss Attributable to Valaris** | $(197.1) | $(145.0) | | **Loss Per Share (Basic & Diluted)** | $(1.00) | $(1.34) | Nine Months Ended September 30 (in millions) | Financial Metric | 2019 | 2018 | | :--- | :--- | :--- | | **Operating Revenues** | $1,541.1 | $1,306.4 | | Total operating expenses | $2,012.9 | $1,432.2 | | **Operating Loss** | $(474.9) | $(125.8) | | **Net Income (Loss)** | $21.8 | $(433.5) | | **Net Income (Loss) Attributable to Valaris** | $18.0 | $(436.1) | | **Earnings (Loss) Per Share (Basic & Diluted)** | $0.10 | $(4.02) | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities grew significantly due to the Rowan acquisition, strengthening the company's equity position Balance Sheet Highlights (in millions) | Account | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | **Total Current Assets** | $1,184.0 | $1,309.7 | | **Property and equipment, net** | $15,250.7 | $12,616.2 | | **Total Assets** | **$17,230.6** | **$14,023.7** | | **Total Current Liabilities** | $859.6 | $528.5 | | **Long-Term Debt** | $6,042.3 | $5,010.4 | | **Total Liabilities** | $7,690.1 | $5,934.9 | | **Total Valaris shareholders' equity** | $9,531.4 | $8,091.4 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash outflow increased, while investing activities provided cash from the Rowan acquisition and financing activities used cash for debt reduction Nine Months Ended September 30 (in millions) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash used in operating activities | $(427.5) | $(82.2) | | Net cash provided by (used in) investing activities | $1,091.6 | $(362.7) | | Net cash provided by (used in) financing activities | $(809.1) | $193.7 | | **Decrease in Cash and Cash Equivalents** | **$(145.6)** | **$(249.4)** | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the Rowan acquisition's accounting treatment, joint venture formation, asset impairments, and significant debt extinguishment activities - On April 11, 2019, the company completed its combination with Rowan Companies, changed its name, and **effected a four-to-one reverse stock split**[29](index=29&type=chunk) - The Rowan Transaction was accounted for under the acquisition method, resulting in an **estimated bargain purchase gain of $659.8 million**, primarily due to the decline in the company's share price between the announcement and closing dates[61](index=61&type=chunk)[63](index=63&type=chunk)[65](index=65&type=chunk) - The company accounts for its 50/50 joint venture with Saudi Aramco, ARO, using the equity method and recognized a **loss of $3.7 million for Q3 2019**[58](index=58&type=chunk)[93](index=93&type=chunk)[96](index=96&type=chunk) - In Q3 2019, the company recognized a **pre-tax, non-cash impairment charge of $88.2 million** after deciding to retire the VALARIS 5006 rig and reclassifying it to held-for-sale[128](index=128&type=chunk) - In July 2019, the company repurchased **$951.8 million in aggregate principal of its senior notes** through tender offers, resulting in a **pre-tax gain from debt extinguishment of $194.1 million**[137](index=137&type=chunk)[138](index=138&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=63&type=section&id=Item%202%2E%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes the strategic impact of the Rowan acquisition, a gradual market recovery, and the company's liquidity and capital management [Executive Summary](index=63&type=section&id=Executive%20Summary) The company highlights its post-merger strategic position, joint venture with Saudi Aramco, and strong liquidity despite a challenging market - The company completed its combination with Rowan on April 11, 2019, acquiring a fleet including **four ultra-deepwater drillships and 19 jackup rigs**, and assuming debt[211](index=211&type=chunk)[214](index=214&type=chunk)[216](index=216&type=chunk) - The company's 50/50 joint venture with Saudi Aramco, ARO, owns seven jackup rigs and leases nine more from Valaris, with plans to purchase up to **20 newbuilds over 10 years**[213](index=213&type=chunk) - As of September 30, 2019, the company had **$129.5 million in cash** and **$1.5 billion of undrawn capacity** under its credit facility[225](index=225&type=chunk) - **Contract backlog stood at $2.3 billion** as of September 30, 2019, an increase from $2.2 billion at year-end 2018, mainly due to the Rowan Transaction[229](index=229&type=chunk) [Business Environment](index=66&type=section&id=Business%20Environment) The offshore drilling market shows a gradual recovery, with improvements in the jackup segment outpacing the still-challenged floater market - The floater market recovery is gradual, with **contracts remaining short-term and pricing depressed**, despite increased tendering activity[220](index=220&type=chunk)[232](index=232&type=chunk) - The jackup market has improved, with **increased contracting activity leading to slight improvements in day rates**[238](index=238&type=chunk) - The company is actively managing its fleet by divesting non-core assets, **scrapping two jackups** (ENSCO 97, Gorilla IV) and **classifying three more rigs for sale** (VALARIS 5006, JU-68, JU-42) in 2019[247](index=247&type=chunk) [Results of Operations](index=68&type=section&id=Results%20of%20Operations) Quarterly and nine-month revenues increased due to the Rowan acquisition, with significant gains from debt extinguishment and the bargain purchase - **Q3 2019 revenues increased by $120.4 million (28%) YoY**, mainly from $138.9 million in revenue from acquired Rowan rigs[250](index=250&type=chunk) - Other income for Q3 2019 included a **$194.1 million pre-tax gain on debt extinguishment** from tender offers, partially offset by a $53.0 million reduction in the bargain purchase gain from measurement period adjustments[257](index=257&type=chunk)[295](index=295&type=chunk) - For the nine months ended Sep 30, 2019, other income included a **$659.8 million gain on bargain purchase** from the Rowan Transaction[258](index=258&type=chunk)[296](index=296&type=chunk) Segment Operating Loss (in millions) | Segment | Q3 2019 | Q3 2018 | | :--- | :--- | :--- | | Floaters | $(166.8) | $(11.6) | | Jackups | $(54.7) | $(2.4) | [Liquidity and Capital Resources](index=77&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity through its credit facility and proactive debt management, despite ongoing capital expenditures and tax assessments - The company **repurchased $951.8 million in aggregate principal of notes** in July 2019 through cash tender offers[319](index=319&type=chunk) - The credit facility requires maintaining a **total debt to total capitalization ratio below 60%**; the ratio was 41.2% as of September 30, 2019[317](index=317&type=chunk)[324](index=324&type=chunk) - The company has two ultra-deepwater drillships under construction (VALARIS DS-13 and DS-14) with **remaining payments of $248.9 million**, scheduled for delivery in 2021 and 2022[311](index=311&type=chunk)[312](index=312&type=chunk) Liquidity Position (in millions) | Component | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Cash and cash equivalents | $129.5 | $275.1 | | Short-term investments | $— | $329.0 | | Available credit facility | $1,481.6 | $2,000.0 | | **Total liquidity** | **$1,611.1** | **$2,604.1** | [Quantitative and Qualitative Disclosures About Market Risk](index=83&type=section&id=Item%203%2E%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is foreign currency exposure, which it manages through derivative hedging instruments - The company uses **foreign currency forward contracts** to hedge against fluctuations in earnings and cash flows from non-U.S. dollar transactions[337](index=337&type=chunk) - As of September 30, 2019, the company held **cash flow hedges for forecasted transactions totaling $212.6 million** and **fair value hedges for recognized assets/liabilities totaling $27.1 million**[338](index=338&type=chunk)[339](index=339&type=chunk) [Controls and Procedures](index=84&type=section&id=Item%204%2E%20Controls%20and%20Procedures) Management affirmed the effectiveness of disclosure controls while noting the ongoing integration of Rowan's internal controls - The principal executive and financial officers concluded that **disclosure controls and procedures were effective** as of September 30, 2019[349](index=349&type=chunk) - The company is integrating Rowan's operations and internal controls, and **Rowan will be excluded from the scope of the 2019 assessment** of internal control over financial reporting[351](index=351&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=86&type=section&id=Item%201%2E%20Legal%20Proceedings) The company is managing a shareholder lawsuit, an arbitration award appeal, and ongoing inquiries related to legacy FCPA matters - A **shareholder class action lawsuit was filed on August 20, 2019**, alleging false or misleading statements regarding the performance of the ultra-deepwater segment between April and July 2019[353](index=353&type=chunk) - In its dispute with Samsung Heavy Industries (SHI) over the ENSCO DS-5 contract, an arbitration tribunal **awarded Valaris $180.0 million in damages** in May 2019. The award is currently subject to appeal applications from both parties[357](index=357&type=chunk) - The company is subject to inquiries from foreign governments related to a **2010 Foreign Corrupt Practices Act (FCPA) investigation** involving legacy Pride International[358](index=358&type=chunk)[359](index=359&type=chunk) [Risk Factors](index=88&type=section&id=Item%201A%2E%20Risk%20Factors) No material changes to previously disclosed risk factors were reported during the period - **No material changes** from the risks previously disclosed in the 2018 Form 10-K and prior 2019 Form 10-Q reports were reported[365](index=365&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=89&type=section&id=Item%202%2E%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased a small number of shares from employees for tax purposes but made no repurchases under its public buyback program - In Q3 2019, **28,852 equity securities were repurchased** from employees and directors to cover tax withholding on vested share awards[367](index=367&type=chunk)[369](index=369&type=chunk) - **No shares have been repurchased** under the publicly announced $500 million share repurchase program, which terminates in May 2023[370](index=370&type=chunk) [Exhibits](index=90&type=section&id=Item%206%2E%20Exhibits) This section lists all exhibits filed with the report, including agreements and required officer certifications

Valaris plc (NYSE:VAL) Q2 2019 Earnings Conference Call August 1, 2019 10:00 AM ET Company Participants Nick Georgas - Senior Director, IR and Communications Tom Burke - President and CEO Jon Baksht - EVP and CFO Conference Call Participants Ian MacPherson - Simmons Cole Sullivan - Wells Fargo Taylor Zurcher - Tudor, Pickering & Holt. Kurt Hallead - RBC Capital Markets Greg Lewis - BTIG Chase Mulvehill - Bank of America Merrill Lynch Vebs Vaishnav - Howard Weil Operator Good day, everyone, and welcome to Va ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to__________ Commission File Number 1-8097 Valaris plc (Exact name of registrant as specified in its charter) England and Wales 98-0635229 (State or ...

Financial Data and Key Metrics Changes - First quarter 2019 adjusted EBITDA was $36 million, beating prior guidance by approximately $20 million [36] - Total revenue for the first quarter was $406 million, up from $399 million in the previous quarter [36] - Adjusted EBITDA for the first quarter 2019 decreased from $45 million in the fourth quarter 2018 [41] Business Line Data and Key Metrics Changes - In the Floater segment, revenue increased to $233 million from $228 million, primarily due to contract startups for ENSCO DS-10, ENSCO 8503, and ENSCO 8505 [36] - Operational utilization for the Floater segment was 98%, up from 97% in the prior quarter [36] - In the Jackup segment, revenue slightly increased to $157 million from $156 million, with utilization rising to 87% [37] Market Data and Key Metrics Changes - Brent crude oil prices increased by approximately 40% since the beginning of 2019, stabilizing around $60 per barrel [23] - The number of new contract awards increased by 40% year-over-year during the first quarter [24] - Utilization for modern harsh environment jackups is about 90%, indicating potential pricing increases in some regions [31] Company Strategy and Development Direction - The merger created an industry-leading offshore driller with a diverse rig fleet and a strong customer base [9][10] - The company aims to deliver $165 million in annual targeted synergies from the merger [22] - Focus on developing new technologies and innovative solutions to enhance operational efficiencies [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the offshore drilling market recovery, with expectations for increased capital expenditures from exploration and production companies [24] - The company is focused on managing its existing fleet and evaluating opportunities for selective reactivations based on contract demand [15][16] - ARO Drilling is expected to order two newbuild jackups, contributing to visible earnings growth [18] Other Important Information - The company has a pro forma liquidity of $3.8 billion, including $1.5 billion in cash and short-term investments [58] - ARO Drilling has no external debt and a substantial contracted revenue backlog, enhancing future financing opportunities [48] Q&A Session Summary Question: Thoughts on term versus short-term spot market - Management is focusing on a portfolio approach to maximize contract attractiveness while keeping working assets operational [65] Question: Cadence of orders for ARO Drilling - ARO Drilling plans to place orders for new rigs approximately every 12 months [66] Question: Day rate improvements for Deepwater - Management noted that day rates are expected to improve, particularly for high-specification assets [70][73] Question: Contracting strategy and reactivation plans - The company is focused on working assets and may selectively reactivate one or two modern jackups based on contract opportunities [78] Question: Regional mix and cost considerations - The company has a strong geographic footprint, allowing for efficient asset movement and cost management in various regions [87]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-08097 Ensco Rowan plc (Exact name of registrant as specified in its charter) England and Wales (State or other jurisdiction of i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-8097 Ensco plc (Exact name of registrant as specified in its charter) England and Wales (State or other jurisdiction of incorporation o ...