Valaris Earnings Report
Value-driven approach to capital allocation
Disciplined
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Rigs only reactivated for opportunities that provide meaningful returns on reactivation costs over the
initial contract period
Two high-specification stacked drillships remaining (VALARIS DS-7 & DS-11)
Attractive purchase options on newbuild drillships (VALARIS DS-13 & DS-14)
Returns Focused
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Attractive investments in our fleet in the near-term should maximize future earnings and free cash flow
Focused on generating meaningful and sustained free cash flow and return of capital to shareholders
$300 million share repurchase authorization - intend to repurchase $150 million by year-end 2023
Conservative
Capital Structure
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VALARIS
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Refinancing transaction, executed in April 2023, enhances capital allocation flexibility
$375 million first lien RCF
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$700 million second lien notes - intend to maintain a conservative leverage level
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