Valaris Market Overview and Strategic Positioning
Highest-Specification Drillships
•
Key Rig Specifications
Blowout preventers (BOPS): by having two
BOPS, one unit can be deployed while required
maintenance is performed on the other unit,
adding redundancy for this critical piece of
equipment and reducing flat time between wells
Dual derricks: enables the rig to conduct
simultaneous activities, which help to reduce
project time and costs for customers
Derrick capacity: dual 2.5 million lbs. hookload
derricks give rigs the capability to drill and
complete deeper, more complex wells
Total Utilization
12
All Other
2
47
4
of 127
drillships
worldwide
Seadrill
Noble
4
Diamond
100%
H
80%
60%
M
40%
Avg. Spot
Day Rates
(SK)
468
2013 2014 2015 2016 2017
606
240
185
288
2018 2019
130
Utilization
11
Valaris
Valaris Asset Value³ ($B)
12
Transocean
$5.3
$3.4
NAV
Replacement
Value
Illustrative Rig-Level EBITDA Scenarios4 ($M)
Day Rate
L $200K
M $300K
H $500K
L 70%
(40)
241
803
M 85%
80
422
1,104
H 95%
161
542
1,305
VALARIS
Source: IHS Markit RigPoint as of July 2019; Wells Fargo Securities
1Drillships delivered in 2013 or later, equipped with dual BOP and 2.5mm lbs. hookload derricks; 2 Includes 7 rigs that are under construction;
3Based on Wells Fargo Securities estimates; 4Assumes average operating expense of $150K/day, unadjusted for changes in utilization
12View entire presentation