Valaris Market Overview and Strategic Positioning slide image

Valaris Market Overview and Strategic Positioning

High-Quality Fleet Provides Significant Asset Coverage to Raise Capital to Cover Interim Funding Gaps $ billions $25.9 $24.4 ⚫ Largest fleet in the offshore drilling sector; majority of rigs are modern, high- specification assets Rig fleet provides meaningful asset coverage versus total debt even at currently depressed levels $9.3 $9.8 $0.3 $0.6 $5.3 $11.2 • $4.8 $2.8 $3.7 $6.7 $0.5 $4.0 $2.8 $1.8 $6.7 $7.4 $5.3 $3.4 Total Debt¹ Construction Cost 2 2 3 3 Replacement Cost Net Asset Value ■Heavy Duty Ultra-Harsh & Harsh Environment Jackups Highest-Specification Drillships ■Modern Heavy Duty & Standard Duty Jackups ■ Other ■ARO Drilling - 50% of ARO Owned Assets VALARIS Source: IHS Markit RigPoint, Wells Fargo Securities, Valaris analysis 1 Total debt of $6.7B represents principal balance as of June 30, 2019 pro forma for tender offers completed in July 2019 2 Construction cost per IHS Markit RigPoint 3 Replacement cost and net asset value per Wells Fargo Securities quarterly report dated April 16, 2019 21 24
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