Summary of Transocean and Valaris Conference Call Industry and Companies Involved - **Industry**: Offshore drilling - **Companies**: Transocean (NYSE: RIG) and Valaris (NYSE: VAL) Core Points and Arguments 1. **Transaction Announcement**: Transocean and Valaris announced a merger, which is expected to create significant value for shareholders and customers, enhancing their strategic priorities [2][4] 2. **Deal Rationale**: The combination is seen as timely, coinciding with the beginning of a multi-year upcycle in offshore drilling, allowing for a stronger competitive position [4][5] 3. **Fleet Complementarity**: Valaris' quality rig portfolio is expected to complement Transocean's fleet, providing customers with a broader range of high-specification drillships and semi-submersibles [4][5] 4. **Cost Synergies**: The merger is projected to generate over $200 million in annual cost synergies, which will enhance profitability and support ongoing cost reduction efforts [6][13] 5. **Financial Metrics**: The combined company will have a pro forma backlog exceeding $10 billion, with expectations of a leverage ratio dropping to about 1.5 times within 24 months post-transaction [9][14] 6. **Market Outlook**: Global oil demand is anticipated to rise, with a forecasted 150% increase in deep-water project sanctioning by the end of 2027, positioning the combined fleet to meet this demand [9][10] 7. **Operational Performance**: Transocean reported an uptime performance of nearly 98% and zero operational integrity events in the previous year, emphasizing their commitment to safety and reliability [7] 8. **Strategic Priorities**: The merger aligns with Transocean's strategic priorities, focusing on optimizing asset value, generating cash flow, and improving capital structure [6][14] Additional Important Content 1. **Cultural Alignment**: Both companies share a culture focused on safety and customer service, which is expected to enhance operational efficiency post-merger [11][12] 2. **Regulatory Confidence**: The management expressed confidence in navigating the regulatory environment, indicating no anticipated challenges in completing the transaction [20][21] 3. **Future Cash Flow**: The transaction is expected to be accretive to free cash flow and earnings per share, with a focus on deleveraging and potential shareholder returns once financial targets are met [13][26] 4. **Asset Management**: There is ongoing evaluation of the fleet composition to ensure alignment with market demand, with no immediate plans to divest non-core assets [37][54] This summary encapsulates the key points discussed during the conference call regarding the merger between Transocean and Valaris, highlighting the strategic, financial, and operational implications of the transaction.

Summary of Transocean and Valaris Conference Call Industry and Companies Involved - **Industry**: Offshore drilling - **Companies**: Transocean (NYSE:RIG) and Valaris Core Points and Arguments 1. **Transaction Announcement**: The call was held to discuss the merger between Transocean and Valaris, highlighting the strategic rationale behind the combination [2][4]. 2. **Deal Rationale**: The merger is expected to create significant value for shareholders and customers, enhancing the companies' strategic priorities and operational capabilities [4][5]. 3. **Market Timing**: The companies believe they are at the beginning of a multi-year upcycle in offshore drilling, which makes this acquisition timely [5]. 4. **Fleet Enhancement**: The combined fleet will include high-specification drill ships, semi-submersibles, and a modern jackup fleet, expanding capabilities in harsh environments and new geographies [5][10]. 5. **Cost Synergies**: The transaction is expected to generate over $200 million in annual cost synergies, which will contribute to a leaner and more profitable enterprise [6][13]. 6. **Debt Reduction**: The merger aims to improve the financial foundation of both companies, with a pro forma backlog exceeding $10 billion, allowing for significant cash flow and a targeted leverage ratio of about 1.5 times within 24 months [8][9]. 7. **Operational Performance**: Transocean reported an uptime performance of nearly 98% and zero operational integrity events in the previous year, emphasizing their commitment to safety and reliability [7]. 8. **Future Cash Flow**: The companies expect a 150% increase in deepwater project sanctioning by the end of 2027, positioning the combined fleet to meet rising demand [9]. 9. **Cultural Alignment**: Both companies share a culture focused on safety and customer service, which is expected to enhance operational efficiency post-merger [11][12]. 10. **Regulatory Confidence**: A comprehensive review indicated no significant regulatory issues anticipated with the transaction, particularly in overlapping regions like Brazil [21][22]. Additional Important Content 1. **Strategic Asset Management**: The companies have already rationalized their fleets, divesting over 65 rigs to align with current market demands [39]. 2. **Long-term Plans for Jackup Fleet**: The management intends to continue operating the jackup fleet, which is expected to generate strong cash flow amid increasing upstream CapEx [62]. 3. **Shareholder Returns**: While deleveraging is a priority, the companies will evaluate options for returning cash to shareholders once the leverage ratio is at acceptable levels [27][41]. 4. **Operational Efficiencies**: Most cost savings from the merger will come from operational efficiencies and eliminating redundancies, with minimal associated costs for realizing these savings [32]. This summary encapsulates the key points discussed during the conference call regarding the merger between Transocean and Valaris, focusing on strategic benefits, financial implications, and operational synergies.

Stronger Together TRANSOCEAN TO ACQUIRE VALARIS February 9, 2026 Stronger Together Best fleet, best team, best customer service SHAREHOLDERS CUSTOMERS 2 • Provides enhanced exposure to anticipated offshore drilling upcycle • Superior execution through disciplined management and best operating practices • $200M+ in identified cost synergies to increase free cash flow • All-equity transaction accelerates deleveraging and is accretive on key financial metrics • Meets growing demand with the world's highest-spe ...

Stronger Together TRANSOCEAN TO ACQUIRE VALARIS February 9, 2026 Stronger Together Best fleet, best team, best customer service SHAREHOLDERS CUSTOMERS Generating Increased Value and Returns 2 • Provides enhanced exposure to anticipated offshore drilling upcycle • Superior execution through disciplined management and best operating practices • $200M+ in identified cost synergies to increase free cash flow • All-equity transaction accelerates deleveraging and is accretive on key financial metrics • Meets grow ...