Valaris Market Overview and Strategic Positioning
Heavy Duty Ultra-Harsh & Harsh Environment Jackups
•
Key Rig Specifications
Leg spacing: larger leg spacing enables jackups
to drill in deeper water depths and enhances
stability required to operate in harsh
environments
Cantilever reach: longer cantilever reach allows
multiple wells to be drilled from one location,
reducing the number of rig moves
Variable deck load (VDL): higher VDL allows
more equipment and consumables to be stored
on the rig, reducing resupplying costs and
logistics limitations
Total Utilization
75
13
Valaris
Valaris Asset Value4 ($B)
333
All Other
of 583
jackups
worldwide
11
Maersk
$4.0
10
$1.8
Noble
3
5
NAV
Replacement
Value
COS Borr
Illustrative Rig-Level EBITDA Scenarios 5 ($M)
100%
H
80%
60%
M
Utilization
Day Rate
$100K
M $150K
H $200K
L 70%
166
332
M 85%
71
273
475
H 95%
119
344
569
40%
Avg. Spot
Day Rates
($K)
2013
2014
2015
217
200
167
2016 2017
94
134
2018
114
2019
VALARIS
Source: IHS Markit RigPoint as of July 2019; Wells Fargo Securities
1Includes jackups with the following rig designs: GustoMSC CJ70, Le Tourneau Super Gorilla Class and KFELS N Class; 2Other jackup designs
classified as harsh environment and North Sea capable < 20 years of age; ³Includes 22 rigs that are under construction; 4Based on Wells Fargo
Securities estimates; 5Assumes average operating expense of $70K/day, unadjusted for changes in utilization
13View entire presentation