Guarantee Of Registered Securities (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Consolidating Statements Of Operations

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended June 30, 2019 (In millions) (Unaudited)

	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
OPERATING REVENUES	$	19.9		$	36.1		$	—		$	607.9		$	(80.0	)	$	583.9
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)	18.3			31.8			—			530.2			(80.0		)	500.3
Loss on impairment	—			—			—			2.5			—			2.5
Depreciation	—			4.0			—			153.9			—			157.9
General and administrative	46.4			.1			—			34.7			—			81.2
Total operating expenses	64.7			35.9			—			721.3			(80.0		)	741.9
EQUITY IN EARNINGS OF ARO	—			—			—			.6			—			.6
OPERATING INCOME (LOSS)	(44.8		)	.2			—			(112.8		)	—			(157.4		)
OTHER INCOME (EXPENSE), NET	694.9			(15.6		)	(20.3		)	(66.0		)	4.3			597.3
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	650.1			(15.4		)	(20.3		)	(178.8		)	4.3			439.9
INCOME TAX PROVISION	—			12.4			—			20.2			—			32.6
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX	(244.6		)	43.2			27.0			—			174.4			—
NET INCOME (LOSS)	405.5			15.4			6.7			(199.0		)	178.7			407.3
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			(1.8		)	—			(1.8		)
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	405.5		$	15.4		$	6.7		$	(200.8	)	$	178.7		$	405.5

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended June 30, 2018 (In millions) (Unaudited)

	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
OPERATING REVENUES	$	12.3		$	39.8		$	—		$	484.3		$	(77.9	)	$	458.5
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)	13.0			36.2			—			373.0			(77.9		)	344.3
Depreciation	—			3.5			—			117.2			—			120.7
General and administrative	10.3			.1			—			15.7			—			26.1
OPERATING LOSS	(11.0		)	—			—			(21.6		)	—			(32.6		)
OTHER EXPENSE, NET	(5.1		)	(40.5		)	(19.7		)	(23.5		)	4.0			(84.8		)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(16.1		)	(40.5		)	(19.7		)	(45.1		)	4.0			(117.4		)
INCOME TAX PROVISION	—			18.6			—			6.1			—			24.7
DISCONTINUED OPERATIONS, NET	—			—			—			(8.0		)	—			(8.0		)
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX	(134.9		)	28.7			22.6			—			83.6			—
NET INCOME (LOSS)	(151.0		)	(30.4		)	2.9			(59.2		)	87.6			(150.1		)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			(.9		)	—			(.9		)
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	(151.0	)	$	(30.4	)	$	2.9		$	(60.1	)	$	87.6		$	(151.0	)

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2019 (In millions) (Unaudited)

	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
OPERATING REVENUES	$	31.3		$	75.6		$	—		$	1,038.3		$	(155.4	)	$	989.8
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)	30.0			67.5			—			890.8			(155.4		)	832.9
Loss on impairment	—			—			—			2.5			—			2.5
Depreciation	—			7.7			—			275.2			—			282.9
General and administrative	61.3			.2			—			49.3			—			110.8
Total operating expenses	91.3			75.4			—			1,217.8			(155.4		)	1,229.1
EQUITY IN EARNINGS OF ARO	—			—			—			.6			—			.6
OPERATING INCOME (LOSS)	(60.0		)	0.2			—			(178.9		)	—			(238.7		)
OTHER INCOME (EXPENSE), NET	678.8			(31.0		)	(40.8		)	(93.3		)	8.4			522.1
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	618.8			(30.8		)	(40.8		)	(272.2		)	8.4			283.4
INCOME TAX PROVISION	—			29.0			—			35.1			—			64.1
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX	(403.7		)	75.3			53.1			—			275.3			—
NET INCOME (LOSS)	215.1			15.5			12.3			(307.3		)	283.7			219.3
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			(4.2		)	—			(4.2		)
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	215.1		$	15.5		$	12.3		$	(311.5	)	$	283.7		$	215.1

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Six Months Ended June 30, 2018 (In millions) (Unaudited)

	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
OPERATING REVENUES	$	24.6		$	80.1		$	—		$	927.8		$	(157.0	)	$	875.5
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)	26.4			72.8			—			727.3			(157.0		)	669.5
Depreciation	—			7.0			—			228.9			—			235.9
General and administrative	20.5			.3			—			33.2			—			54.0
OPERATING LOSS	(22.3		)	—			—			(61.6		)	—			(83.9		)
OTHER INCOME (EXPENSE), NET	0.5			(68.5		)	(50.0		)	(56.9		)	19.4			(155.5		)
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(21.8		)	(68.5		)	(50.0		)	(118.5		)	19.4			(239.4		)
INCOME TAX PROVISION	—			22.9			—			20.2			—			43.1
DISCONTINUED OPERATIONS, NET	—			—			—			(8.1		)	—			(8.1		)
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX	(269.3		)	49.5			46.0			—			173.8			—
NET LOSS	(291.1		)	(41.9		)	(4.0		)	(146.8		)	193.2			(290.6		)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			(.5		)	—			(.5		)
NET LOSS ATTRIBUTABLE TO VALARIS	$	(291.1	)	$	(41.9	)	$	(4.0	)	$	(147.3	)	$	193.2		$	(291.1	)

Condensed Consolidating Statements Of Comprehensive Income

VALARIS PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended June 30, 2019

(In millions)

(Unaudited)



	Valaris plc		ENSCO International Incorporated			Pride International LLC		Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments		Total
NET INCOME (LOSS)	$	405.5	$	15.4		$	6.7	$	(199.0	)	$	178.7	$	407.3
OTHER COMPREHENSIVE INCOME, NET
Net change in derivative fair value	—		(1.6		)	—		—			—		(1.6		)
Reclassification of net losses on derivative instruments from other comprehensive income into net income	—		1.8			—		—			—		1.8
NET OTHER COMPREHENSIVE INCOME	—		.2			—		—			—		.2
COMPREHENSIVE INCOME (LOSS)	405.5		15.6			6.7		(199.0		)	178.7		407.5
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—		—			—		(1.8		)	—		(1.8		)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	405.5	$	15.6		$	6.7	$	(200.8	)	$	178.7	$	405.7

VALARIS PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended June 30, 2018

(In millions)

(Unaudited)



	Valaris plc			ENSCO International Incorporated			Pride International LLC		Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments		Total
NET INCOME (LOSS)	$	(151.0	)	$	(30.4	)	$	2.9	$	(59.2	)	$	87.6	$	(150.1	)
OTHER COMPREHENSIVE LOSS, NET
Net change in derivative fair value	—			(7.6		)	—		—			—		(7.6		)
Reclassification of net gains on derivative instruments from other comprehensive income into net loss	—			(.7		)	—		—			—		(.7		)
Other	—			—			—		(.2		)	—		(.2		)
NET OTHER COMPREHENSIVE LOSS	—			(8.3		)	—		(.2		)	—		(8.5		)
COMPREHENSIVE INCOME (LOSS)	(151.0		)	(38.7		)	2.9		(59.4		)	87.6		(158.6		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—		(.9		)	—		(.9		)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	(151.0	)	$	(38.7	)	$	2.9	$	(60.3	)	$	87.6	$	(159.5	)

VALARIS PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Six Months Ended June 30, 2019

(In millions)

(Unaudited)



	Valaris plc		ENSCO International Incorporated			Pride International LLC		Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments		Total
NET INCOME (LOSS)	$	215.1	$	15.5		$	12.3	$	(307.3	)	$	283.7	$	219.3
OTHER COMPREHENSIVE INCOME (LOSS), NET
Net change in derivative fair value	—		(1.6		)	—		—			—		(1.6		)
Reclassification of net gains on derivative instruments from other comprehensive loss to net loss	—		3.4			—		—			—		3.4
Other	—		—			—		(.1		)	—		(.1		)
NET OTHER COMPREHENSIVE INCOME (LOSS)	—		1.8			—		(.1		)	—		1.7
COMPREHENSIVE INCOME (LOSS)	215.1		17.3			12.3		(307.4		)	283.7		221.0
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—		—			—		(4.2		)	—		(4.2		)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	215.1	$	17.3		$	12.3	$	(311.6	)	$	283.7	$	216.8

VALARIS PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS

Six Months Ended June 30, 2018

(In millions)

(Unaudited)



	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments		Total
NET LOSS	$	(291.1	)	$	(41.9	)	$	(4.0	)	$	(146.8	)	$	193.2	$	(290.6	)
OTHER COMPREHENSIVE LOSS, NET
Net change in derivative fair value	—			(5.7		)	—			—			—		(5.7		)
Reclassification of net gains on derivative instruments from other comprehensive income into net loss	—			(2.9		)	—			—			—		(2.9		)
Other	—			—			—			(.3		)	—		(.3		)
NET OTHER COMPREHENSIVE LOSS	—			(8.6		)	—			(.3		)	—		(8.9		)
COMPREHENSIVE LOSS	(291.1		)	(50.5		)	(4.0		)	(147.1		)	193.2		(299.5		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			(.5		)	—		(.5		)
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS	$	(291.1	)	$	(50.5	)	$	(4.0	)	$	(147.6	)	$	193.2	$	(300.0	)

Condensed Consolidating Balance Sheets

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS June 30, 2019 (In millions) (Unaudited)

	Valaris plc			ENSCO International Incorporated		Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris		Consolidating Adjustments			Total
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	481.7		$	—	$	2.7		$	474.7	$	—		$	959.1
Short-term investments	135.0			—		—			—		—			135.0
Accounts receivable, net	4.4			23.4		—			600.9		—			628.7
Accounts receivable from affiliates	2,008.3			110.0		1.4			76.5		(2,196.2		)	—
Other	—			11.5		—			488.2		—			499.7
Total current assets	2,629.4			144.9		4.1			1,640.3		(2,196.2		)	2,222.5
PROPERTY AND EQUIPMENT, AT COST	1.8			104.7		—			18,366.3		—			18,472.8
Less accumulated depreciation	1.8			75.1		—			2,940.2		—			3,017.1
Property and equipment, net	—			29.6		—			15,426.1		—			15,455.7
LONG-TERM NOTES RECEIVABLE FROM ARO	—			—		—			453.1		—			453.1
INVESTMENT IN ARO	—			—		—			139.4		—			139.4
DUE FROM AFFILIATES	2,416.3			—		61.1			2,865.3		(5,342.7		)	—
INVESTMENTS IN AFFILIATES	10,259.5			3,789.0		1,253.0			—		(15,301.5		)	—
OTHER ASSETS	10.3			—		—			159.1		—			169.4
	$	15,315.5		$	3,963.5	$	1,318.2		$	20,683.3	$	(22,840.4	)	$	18,440.1
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	105.6		$	14.9	$	12.7		$	640.3	$	—		$	773.5
Accounts payable to affiliates	34.5			71.6		27.6			2,062.5		(2,196.2		)	—
Current maturities of long-term debt	$	691.9		$	37.7	$	—		$	395.7	$	—		$	1,125.3
Total current liabilities	832.0			124.2		40.3			3,098.5		(2,196.2		)	1,898.8
DUE TO AFFILIATES	1,781.6			1,036.3		1,357.7			1,167.1		(5,342.7		)	—
LONG-TERM DEBT	2,988.2			111.6		500.3			2,420.0		—			6,020.1
OTHER LIABILITIES	(8.4		)	79.0		—			728.4		—			799.0
VALARIS SHAREHOLDERS' EQUITY (DEFICIT)	9,722.1			2,612.4		(580.1		)	13,267.7		(15,301.5		)	9,720.6
NONCONTROLLING INTERESTS	—			—		—			1.6		—			1.6
Total equity (deficit)	9,722.1			2,612.4		(580.1		)	13,269.3		(15,301.5		)	9,722.2
	$	15,315.5		$	3,963.5	$	1,318.2		$	20,683.3	$	(22,840.4	)	$	18,440.1

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2018 (In millions)

	Valaris plc		ENSCO International Incorporated		Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	199.8	$	—	$	2.7		$	72.6		$	—		$	275.1
Short-term investments	329.0		—		—			—			—			$	329.0
Accounts receivable, net	7.3		25.4		—			312.0			—			344.7
Accounts receivable from affiliates	1,861.2		171.4		—			131.7			(2,164.3		)	—
Other	.6		6.0		—			354.3			—			360.9
Total current assets	2,397.9		202.8		2.7			870.6			(2,164.3		)	1,309.7
PROPERTY AND EQUIPMENT, AT COST	1.8		125.2		—			15,390.0			—			15,517.0
Less accumulated depreciation	1.8		91.3		—			2,807.7			—			2,900.8
Property and equipment, net	—		33.9		—			12,582.3			—			12,616.2
DUE FROM AFFILIATES	2,413.8		234.5		125.0			2,715.1			(5,488.4		)	—
INVESTMENTS IN AFFILIATES	8,522.6		3,713.7		1,199.9			—			(13,436.2		)	—
OTHER ASSETS	8.1		—		—			89.7			—			97.8
	$	13,342.4	$	4,184.9	$	1,327.6		$	16,257.7		$	(21,088.9	)	$	14,023.7
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	85.3	$	32.0	$	12.7		$	398.5		$	—		$	528.5
Accounts payable to affiliates	59.7		139.5		38.2			1,926.9			(2,164.3		)	—
Total current liabilities	145.0		171.5		50.9			2,325.4			(2,164.3		)	528.5
DUE TO AFFILIATES	1,432.0		1,226.9		1,366.5			1,463.0			(5,488.4		)	—
LONG-TERM DEBT	3,676.5		149.3		502.6			682.0			—			5,010.4
OTHER LIABILITIES	0.1		64.3		—			331.6			—			396.0
VALARIS SHAREHOLDERS' EQUITY (DEFICIT)	8,088.8		2,572.9		(592.4		)	11,458.3			(13,436.2		)	8,091.4
NONCONTROLLING INTERESTS	—		—		—			(2.6		)	—			(2.6		)
Total equity (deficit)	8,088.8		2,572.9		(592.4		)	11,455.7			(13,436.2		)	8,088.8
	$	13,342.4	$	4,184.9	$	1,327.6		$	16,257.7		$	(21,088.9	)	$	14,023.7

Condensed Consolidating Statements Of Cash Flows



VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2019 (In millions) (Unaudited)
	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-guarantor Subsidiaries of Valaris			Consolidating Adjustments		Total
OPERATING ACTIVITIES
Net cash used in operating activities of continuing operations	$	(79.9	)	$	(117.5	)	$	(68.6	)	$	(27.4	)	$	—	$	(293.4	)
INVESTING ACTIVITIES
Rowan cash acquired	—			—			—			931.9			—		931.9
Maturities of short-term investments	339.0			—			—			—			—		339.0
Purchases of short-term investments	(145.0		)	—			—						—		(145.0		)
Additions to property and equipment	—			—			—			(134.8		)	—		(134.8		)
Other	2.5			—			—			2.0			—		4.5
Net cash provided by investing activities of continuing operations	196.5			—			—			799.1			—		995.6
FINANCING ACTIVITIES
Repurchase of common shares	(4.2		)	—			—			—			—		(4.2		)
Cash dividends paid	(4.5		)	—			—			—			—		(4.5		)
Debt solicitation fees	—			—			—			(8.7		)	—		(8.7		)
Other	(0.5		)	—			—						—		(0.5		)
Advances from (to) affiliates	174.5			117.5			68.6			(360.6		)	—		—
Net cash provided by (used in) financing activities	165.3			117.5			68.6			(369.3		)	—		(17.9		)
Net cash provided by discontinued operations	—			—			—			—			—		—
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(.3		)			(.3		)
NET INCREASE IN CASH AND CASH EQUIVALENTS	281.9			—			—			402.1			—		684.0
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	199.8			—			2.7			72.6			—		275.1
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	481.7		$	—		$	2.7		$	474.7		$	—	$	959.1



VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2018 (In millions) (Unaudited)
	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
OPERATING ACTIVITIES
Net cash provided by (used in) operating activities of continuing operations	$	28.3		$	(87.8	)	$	(56.6	)	$	98.1		$	—		$	(18.0	)
INVESTING ACTIVITIES
Maturities of short-term investments	599.0			—			—			—			—			599.0
Purchases of short-term investments	(414.0		)	—			—			—			—			(414.0		)
Additions to property and equipment	—			—			—			(331.9		)	—			(331.9		)
Sale of affiliate debt	479.0			—			—			—			(479.0		)	—
Purchase of affiliate debt	(552.5		)	—			—			—			552.5			—
Other	—			—			—			2.9			—			2.9
Net cash provided by (used in) investing activities of continuing operations	111.5			—			—			(329.0		)	73.5			(144.0		)
FINANCING ACTIVITIES
Proceeds from issuance of senior notes	1,000.0			—			—			—			—			1,000.0
Reduction of long-term borrowings	(159.9		)	—			(537.8		)	—			(73.5		)	(771.2		)
Cash dividends paid	(9.0		)	—			—			—			—			(9.0		)
Debt issuance costs	(17.0		)	—			—			—			—			(17.0		)
Repurchase of common shares	(2.0		)	—			—			—			—			(2.0		)
Advances from affiliates	(831.5		)	87.8			584.9			158.8			—			—
Other	—			—			—			(0.5		)	—			(0.5		)
Net cash provided by (used in) financing activities	(19.4		)	87.8			47.1			158.3			(73.5		)	200.3
Net cash provided by discontinued operations	—			—			—			2.5			—			2.5
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(.7		)	—			(.7		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	120.4			—			(9.5		)	(70.8		)	—			40.1
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	185.2			—			25.6			234.6			—			445.4
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	305.6		$	—		$	16.1		$	163.8		$	—		$	485.5