Valaris Market Overview and Strategic Positioning
Value Proposition
$ Million
Illustrative Rig-Level
Annual EBITDA
Asset Values²
Scenarios¹
Fleet
M
H
Net
Replace-
ment
Highest Specification Drillships3 (11)
$422
$1,305
$3,358
$5,304
Heavy Duty Ultra-Harsh & HE Jackups³ (13)
273
569
1,803
4,002
Modern Heavy & Standard Duty Jackups³ (25)
274
798
2,817
4,768
ARO Drilling Jackups4 (7)
51
94
496
575
Other Drillships5 (5)
153
376
1,452
2,570
Semisubmersibles6 (12)
263
559
985
4,902
Other Jackups7 (16)
159
292
318
2,304
Total
$1,595
$3,993
$11,229
$24,425
Source: FactSet as of July 31, 2019; Wells Fargo Securities; Valaris analysis
1Utilization assumptions: M: 85%, H: 95%; 2Based on Wells Fargo Securities estimates as of April 2019; 3Illustrative annual EBITDA based on
assumptions from M and H scenarios in slides 12-14; 4Represents 50% ownership interest from ARO Drilling's 7 owned rigs; Assumes day rates
of M: $100K/day, H: $125K/day and average operating expense of $45K/day, unadjusted for changes in utilization; 5Assumes day rates of M:
VALARIS $275K/day, H: $375K/day and average operating expense of $150K/day, unadjusted for changes in utilization; 6Assumes day rates of M:
$200K/day, H: $250K/day and average operating expense of $110K/day, unadjusted for changes in utilization for 12 semisubmersibles;
7 Assumes day rates of M: $85K/day, H: $100K/day and average operating expense of $45K/day, unadjusted for changes in utilization
16View entire presentation