Valaris Limited (NYSE:VAL) Q4 2023 Results Conference Call February 22, 2024 10:00 AM ET Company Participants Darin Gibbins - Vice President, Investor Relations & Treasurer Anton Dibowitz - President and CEO Matt Lyne - Senior Vice President, COO Chris Weber - Chief Financial Officer Conference Call Participants David Smith - Pickering Energy Advisors Eddie Kim - Barclays Fredrik Stene - Clarksons Platou Securities Greg Lewis - BTIG Kurt Hallead - Benchmark Operator Good day, and welcome to the Valaris Four ...

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, 2023 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 Limited (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organizati ...

Financial Performance - Net income for Q4 2023 increased to $829 million from $17 million in Q3 2023, including a tax benefit of $790 million[6] - Adjusted EBITDA rose to $58 million from $40 million in Q3 2023, driven by more operating days and lower reactivation expenses[6] - Revenues for Q4 2023 increased to $484 million from $455 million in Q3 2023, with operating days contributing to the growth[7] - Net income for Q4 2023 was $828.5 million, compared to a net income of $17.0 million in Q3 2023, reflecting a significant increase[24] - Net income for the year ended December 31, 2023, increased to $866.8 million, up from $181.8 million in 2022, representing a growth of 376%[28] - Net cash provided by operating activities for the year was $267.5 million, compared to $127.0 million in 2022, reflecting a 110% increase[28] - Operating income for the same period was $19.9 million, significantly higher than $8.1 million in the prior quarter[72] - EBITDA for Q4 2023 was reported at $39.4 million, up from $23.9 million in Q3 2023[72] Revenue and Contract Backlog - Revenue efficiency was reported at 93% for the quarter and 96% for the year[6] - The company secured new contracts and extensions, resulting in a contract backlog exceeding $1.4 billion during Q4 2023[4] - Total contract backlog increased to over $3.9 billion as of February 15, 2024, representing a nearly 60% increase year-over-year[6] - The contract backlog reached $3,921.4 million as of February 15, 2024, up from $3,158.1 million on November 1, 2023, indicating a 24.1% increase[45] - Total contract backlog as of February 15, 2024, was $2,138.1 million, a decrease from $2,290.7 million in the previous quarter[74] Cash Flow and Expenditures - Capital expenditures surged to $463 million from $106 million in Q3 2023, primarily due to newbuild drillships delivery[11] - Cash and cash equivalents decreased to $620.5 million as of December 31, 2023, from $1,041.1 million as of September 30, 2023[26] - Net cash used in investing activities for the year was $(665.8) million, compared to $(16.7) million in 2022, indicating a substantial increase in cash outflow[28] - The company reported a net cash provided by financing activities of $285.5 million for the year, compared to $(6.4) million in 2022, showing a significant turnaround[28] Shareholder Returns - Share repurchases totaled $50 million in Q4 2023 and $200 million for the year, with an increase in the share repurchase program authorized to $600 million[6] - Payments for share repurchases in the three months ended December 31, 2023, totaled $51.2 million, compared to $83.0 million in the previous quarter, a decrease of 38%[30] Operational Efficiency - The company anticipates continued growth in offshore drilling activity and is focused on enhancing operational efficiency and sustainability initiatives[21] - The total revenue for the company was $93.2 million in Q4 2023, compared to $72.4 million in Q3 2023, reflecting a 28.5% increase[36] - General and administrative expenses were $24.3 million in Q4 2023, slightly up from $24.2 million in Q3 2023[39] - Reactivation costs amounted to $38.5 million in Q4 2023, down from $50.9 million in Q3 2023, showing a decrease of 24.7%[41] Fleet Performance - Total fleet utilization improved to 60% in Q4 2023, compared to 57% in Q3 2023, marking a 5.3% increase[51] - Active fleet utilization reached 79% in Q4 2023, up from 75% in Q3 2023, indicating a 5.3% improvement[53] - Average daily revenue for drillships increased to $307,000 in Q4 2023, up from $288,000 in Q3 2023, representing a 6.6% increase[48] - Average daily revenue for owned rigs increased to $100,000 in Q4 2023, up from $91,000 in Q3 2023[75] - The average daily revenue for jackups was $111,000 in Q4 2023, a slight decrease from $116,000 in Q3 2023[48] Segment Performance - ARO Drilling's revenues increased to $134 million from $122 million in Q3 2023, attributed to the newbuild jackup Kingdom 1 commencing its maiden contract[16] - Adjusted EBITDA for Valaris in Q4 2023 was $57.5 million, up from $40.0 million in Q3 2023, reflecting a growth of 43.75%[86] - JACKUPS segment net income rose to $46.1 million in Q4 2023 from $34.4 million in Q3 2023[88] - Adjusted EBITDA for the FLOATERS segment was $37.2 million in Q4 2023, an increase from $28.2 million in Q3 2023[88] - Adjusted EBITDA for HD & SD Modern Jackups rose to $30.1 million in Q4 2023, compared to $13.0 million in Q4 2022, marking an increase of 131.5% year-over-year[94]

Valaris Limited (NYSE:VAL) Q3 2023 Earnings Conference Call November 7, 2023 10:00 AM ET Company Participants Darin Gibbins - Vice President, Investor Relations & Treasurer Anton Dibowitz - President & Chief Executive Officer Matt Lyne - Senior Vice President, CCO Chris Weber - Senior Vice President & Chief Financial Officer Conference Call Participants Eddie Kim - Barclays Kurt Hallead - Benchmark David Smith - Pickering Energy Partners Operator Good day, and welcome to the Valaris Third Quarter 2023 Resul ...

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 September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: +44 (0) 20 7659 4660 Securities registered pursuant to Section 12(b) of the Act: ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2023 was $15 million, down from $28 million in the prior quarter, while adjusted EBITDA adding back one-time reactivation costs was $59 million, up from $55 million in the prior quarter [25] - Revenues decreased to $390 million from $408 million, primarily due to fewer operating days for the jackup fleet and lower mobilization and demobilization revenues [25][26] - Contract drilling expense decreased to $348 million from $356 million, primarily due to lower costs for idle rigs and lower repair and maintenance costs [27] Business Line Data and Key Metrics Changes - Jackup revenues decreased due to fewer operating days and lower mobilization revenues, particularly for Valaris 249, which completed its contract [26] - Floater revenues increased due to more operating days and a higher average day rate, primarily related to Valaris DS-12 [26] - Reactivation expense increased to $44 million from $26 million, driven by the commencement of a reactivation project for Valaris DS-8 [27] Market Data and Key Metrics Changes - Spot Brent crude prices moved above $80 per barrel, with five-year forward prices remaining above $65 per barrel, supporting offshore project investments [6][7] - Active utilization for sixth and seventh generation drillships has exceeded 90% for over 12 months, indicating strong demand [7] - The number of contracted jackups recently surpassed 400 for the first time since mid-2015, with active utilization above 90% [11] Company Strategy and Development Direction - The company intends to exercise purchase options for newbuild drillships VALARIS DS-13 and DS-14, viewing them as compelling investment opportunities [18][22] - The fleet strategy focuses on maintaining a critical mass of rigs in priority basins to benefit from economies of scale [16] - The company aims to return all future free cash flow to shareholders unless better investment opportunities arise [21][44] Management's Comments on Operating Environment and Future Outlook - The outlook for the offshore drilling market remains positive, with increasing demand and constrained supply tightening the market [22] - Management noted that the ultra-deepwater market is experiencing a strong upcycle, with increased contract durations and day rates [11][22] - The harsh environment jackup market in the North Sea is expected to remain challenging through 2024 [12][15] Other Important Information - The company announced an increase in its share repurchase authorization to $300 million, with a target of repurchasing $200 million by year-end 2023 [20][44] - ARO Drilling, a joint venture with Saudi Aramco, is expected to deliver newbuild rigs by the end of 2023, marking a significant growth milestone [19] Q&A Session All Questions and Answers Question: Regarding the purchase options on DS-13 and DS-14 - Management confirmed the intention to exercise the purchase options, emphasizing the need for attractive contracts before reactivating these rigs [46][47] Question: Thoughts on M&A opportunities - Management stated that while they are open to M&A opportunities, they are currently focused on organic growth and maximizing the potential of their existing high-spec fleet [48][49] Question: Characterization of leading-edge rates for jackups - Management noted that leading-edge rates for jackups are geographically diverse, with strong rates observed in regions outside the North Sea [52][53] Question: Future of leased rigs to ARO - Management expressed confidence in the long-term sustainability of the Saudi market and the potential for attractive opportunities for leased rigs [54] Question: Insights on pricing strategy for drillships - Management indicated that the pricing strategy will balance long-term contracts with opportunistic contracts at leading-edge rates, reflecting the tightening supply-demand balance [57][60]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) 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 Limited (Exact name of registrant as specified in its charter) Bermuda 98-1589854 (State or other jurisdiction of incorporation or organization) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...

Valaris Limited (NYSE:VAL) Q1 2023 Earnings Conference Call May 2, 2023 10:00 AM ET Company Participants Darin Gibbins - Vice President of Investor Relations & Treasurer Anton Dibowitz - President & Chief Executive Officer Chris Weber - Senior Vice President & Chief Financial Officer Conference Call Participants Kurt Hallead - Benchmark Eddie Kim - Barclays David Smith - Pickering Energy Partners Darin Gibbins Welcome, everyone, to the Valaris First Quarter 2023 Conference Call. With me today: are President ...

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 March 31, 2023 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 Limited (Exact name of registrant as specified in its charter) (State or other jurisdiction of i ...

Valaris Limited (NYSE:VAL) Q4 2022 Earnings Conference Call February 21, 2023 10:00 AM ET Company Participants Darin Gibbins - Vice President of Investor Relations & Treasurer Anton Dibowitz - President & Chief Executive Officer Chris Weber - Senior Vice President & Chief Financial Officer Matt Lyne - SVP and Chief Commercial Officer Conference Call Participants Greg Lewis - BTIG David Smith - Pickering Energy Advisors Fredrik Stene - Clarksons Platou Securities Eddie Kim - Barclays Kurt Hallead - Benchmark ...