Valaris Market Overview and Strategic Positioning
Modern Heavy Duty & Standard Duty Jackups
•
•
Key Rig Specifications
Pipe handling: offline capabilities increase the
speed at which a well can be drilled
Accommodation capacity: larger
accommodations give customers more flexibility
in moving third-party personnel to rig, lowering
transportation costs
Footprint/jacking capacity: common jackup
footprint leads to shorter time getting on
location, and full preload jacking capabilities
improve setup time at each location
95
All Other
25
Valaris
174
of 583
jackups
worldwide
2
100%
80%
60%
H
Total Utilization
M
L
40%
Avg. Spot
Day Rates
($K)
159
2013 2014
162
2015 2016 2017
108
88
56
2018
69
2019
VALARIS
Utilization
21
Borr
Valaris Asset Value³ ($B)
12
Seadrill
$4.8
12
$2.8
COSL
9
Aban
NAV
Replacement
Value
Illustrative Rig-Level EBITDA Scenarios4 ($M)
Day Rate
L $75K
M $100K
H $150K
L 70%
(23)
137
456
M 85%
80
274
662
H 95%
148
365
798
Source: IHS Markit RigPoint as of July 2019; Wells Fargo Securities
1Benign environment jackups < 20 years of age with 1.5 million lbs. hookload derrick capacity, a minimum of three mud pumps and capable of
operating in a minimum water depth of 340 ft.; 2Includes 20 rigs that are under construction; ³Based on Wells Fargo Securities estimates;
4Assumes average operating expense of $55K/day, unadjusted for changes in utilization
14View entire presentation