Financial Data and Key Metrics Changes - The company secured $2 billion worth of contracts this year, with a total contract backlog reaching $4.7 billion, the highest in a decade [6][7] - Operational performance led to an increase in the midpoint of guidance by $55 million to $585 million for the year [7] Business Line Data and Key Metrics Changes - The fleet consists of 48 rigs, including 13 high-specification drillships, 2 semisubmersibles, and 33 jackups, with 12 of the 13 drillships being seventh-generation assets [4] - Day rates for seventh-generation drillships have been about 25% higher than the general market, with utilization rates approximately 10 percentage points higher [5] Market Data and Key Metrics Changes - The company sees a strong case for offshore drilling, particularly in deepwater, as customers increasingly turn to deepwater to meet resource needs [7] - The jackup market has maintained utilization rates above 90%, despite challenges in the Saudi market [34] Company Strategy and Development Direction - The company focuses on operational excellence, successful contracting, and astute commercial strategy to deliver long-term value for shareholders [8] - The strategy includes securing long-term contracts and managing the fleet effectively to avoid oversupply in the market [26] Management's Comments on Operating Environment and Future Outlook - Management noted a positive outlook for deepwater utilization, expecting to exit 2026 with utilization levels above 90% [16][17] - The company anticipates an increase in exploration activity and greenfield development offshore in the coming years, driven by economic viability at current oil prices [40][41] Other Important Information - The company has a strong balance sheet and is considering shareholder returns, with flexibility enhanced by the sale of Valaris 247 for over $100 million [39] - Reactivation costs for cold-stacked rigs are estimated to remain in the range of $120 million to $125 million [28] Q&A Session Summary Question: What is the overall tone from customer conversations regarding deepwater outlook? - Management reflected on the transition from uncertainty to a more positive outlook, with a good pace of contracting expected as operators prepare for future programs [10][12] Question: What are the expectations for contract announcements and pricing in the second half of next year? - Management indicated that pricing is expected to follow supply-demand dynamics, with positive pricing momentum anticipated as the market tightens [14][18] Question: Can you discuss opportunities for the DF-12 rig? - Management is focused on securing long-term contracts for the DF-12, with a strong pipeline of opportunities in Africa and other regions [19][20] Question: What is the outlook for the jackup market? - Management expressed confidence in the jackup market, highlighting strong contract coverage and growth in average day rates and operating days [33][34] Question: What is the company's stance on M&A? - Management supports consolidation in the industry but emphasized that the company already has the necessary scale and fleet quality, making M&A a secondary consideration [35][36] Question: When can shareholders expect returns? - Management stated that capital returns will be considered once sustained cash generation is achieved, with positive markers indicating flexibility for returns [38][39]