Guarantee Of Registered Securities (Tables)

3 Months Ended

Mar. 31, 2020

Condensed Consolidating Statements Of Operations

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended March 31, 2020 (In millions) (Unaudited)

	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
OPERATING REVENUES	$	17.3		$	47.0		$	—		$	493.3		$	(101.0	)	$	456.6
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)	20.6			43.1			—			513.3			(101.0		)	476.0
Loss on impairment	—			—			—			2,808.2			—			2,808.2
Depreciation	—			4.6			—			159.9			—			164.5
General and administrative	20.2			11.5			—			21.7			—			53.4
Total operating expenses	40.8			59.2			—			3,503.1			(101.0		)	3,502.1
EQUITY IN EARNINGS OF ARO	—			—			—			(6.3		)	—			(6.3		)
OPERATING LOSS	(23.5		)	(12.2		)	—			(3,016.1		)	—			(3,051.8		)
OTHER INCOME (EXPENSE), NET	345.1			.2			(19.5		)	(438.1		)	4.4			(107.9		)
INCOME (LOSS) BEFORE INCOME TAXES	321.6			(12.0		)	(19.5		)	(3,454.2		)	4.4			(3,159.7		)
INCOME TAX BENEFIT	—			(11.6		)	—			(140.4		)	—			(152.0		)
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX	(3,327.9		)	(84.6		)	5.6			—			3,406.9			—
NET LOSS	(3,006.3		)	(85.0		)	(13.9		)	(3,313.8		)	3,411.3			(3,007.7		)
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			1.4			—			1.4
NET LOSS ATTRIBUTABLE TO VALARIS	$	(3,006.3	)	$	(85.0	)	$	(13.9	)	$	(3,312.4	)	$	3,411.3		$	(3,006.3	)

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended March 31, 2019 (In millions) (Unaudited)

	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments			Total
OPERATING REVENUES	$	11.4		$	39.5		$	—		$	430.4		$	(75.4	)	$	405.9
OPERATING EXPENSES
Contract drilling (exclusive of depreciation)	11.7			35.7			—			360.6			(75.4		)	332.6
Depreciation	—			3.7			—			121.3			—			125.0
General and administrative	14.9			.1			—			14.6			—			29.6
OPERATING LOSS	(15.2		)	—			—			(66.1		)	—			(81.3		)
OTHER EXPENSE, NET	(16.1		)	(15.4		)	(20.5		)	(27.3		)	4.1			(75.2		)
LOSS BEFORE INCOME TAXES	(31.3		)	(15.4		)	(20.5		)	(93.4		)	4.1			(156.5		)
INCOME TAX PROVISION	—			16.6			—			14.9			—			31.5
EQUITY EARNINGS (LOSSES) IN AFFILIATES, NET OF TAX	(159.1		)	32.1			26.1			—			100.9			—
NET INCOME (LOSS)	(190.4		)	.1			5.6			(108.3		)	105.0			(188.0		)
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			(2.4		)	—			(2.4		)
NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	(190.4	)	$	.1		$	5.6		$	(110.7	)	$	105.0		$	(190.4	)

Condensed Consolidating Statements Of Comprehensive Income

VALARIS PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE LOSS

Three Months Ended March 31, 2020

(In millions)

(Unaudited)



	Valaris plc			ENSCO International Incorporated			Pride International LLC			Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments		Total
NET LOSS	$	(3,006.3	)	$	(85.0	)	$	(13.9	)	$	(3,313.8	)	$	3,411.3	$	(3,007.7	)
OTHER COMPREHENSIVE LOSS, NET
Net change in derivative fair value	—			(12.9		)	—			—			—		(12.9		)
Reclassification of net gains on derivative instruments from other comprehensive loss to net loss	—			(.1		)	—			—			—		(.1		)
Other	—			—			—			(.4		)	—		(.4		)
NET OTHER COMPREHENSIVE LOSS	—			(13.0		)	—			(.4		)	—		(13.4		)
COMPREHENSIVE LOSS	(3,006.3		)	(98.0		)	(13.9		)	(3,314.2		)	3,411.3		(3,021.1		)
COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—			—			1.4			—		1.4
COMPREHENSIVE LOSS ATTRIBUTABLE TO VALARIS	$	(3,006.3	)	$	(98.0	)	$	(13.9	)	$	(3,312.8	)	$	3,411.3	$	(3,019.7	)

VALARIS PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended March 31, 2019

(In millions)

(Unaudited)



	Valaris plc			ENSCO International Incorporated		Pride International LLC		Other Non-Guarantor Subsidiaries of Valaris			Consolidating Adjustments		Total
NET INCOME (LOSS)	$	(190.4	)	$	.1	$	5.6	$	(108.3	)	$	105.0	$	(188.0	)
OTHER COMPREHENSIVE INCOME (LOSS), NET
Reclassification of net losses on derivative instruments from other comprehensive income into net loss	—			1.6		—		—			—		1.6
Other	—			—		—		(.1		)	—		(.1		)
NET OTHER COMPREHENSIVE INCOME (LOSS)	—			1.6		—		(.1		)	—		1.5
COMPREHENSIVE INCOME (LOSS)	(190.4		)	1.7		5.6		(108.4		)	105.0		(186.5		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	—			—		—		(2.4		)	—		(2.4		)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	(190.4	)	$	1.7	$	5.6	$	(110.8	)	$	105.0	$	(188.9	)

Condensed Consolidating Balance Sheets

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS March 31, 2020 (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	$	137.8	$	—	$	—		$	47.1		$	—		$	184.9
Accounts receivable, net	.2		25.5		—			467.5			—			493.2
Accounts receivable from affiliates	4,148.4		213.6		.7			1,123.4			(5,486.1		)	—
Other	1.5		4.1		—			421.9			—			427.5
Total current assets	4,287.9		243.2		.7			2,059.9			(5,486.1		)	1,105.6
PROPERTY AND EQUIPMENT, AT COST	1.9		109.5		—			14,350.5			—			14,461.9
Less accumulated depreciation	1.9		89.3		—			2,213.5			—			2,304.7
Property and equipment, net	—		20.2		—			12,137.0			—			12,157.2
SHAREHOLDER NOTE FROM ARO	—		—		—			452.9			—			452.9
INVESTMENT IN ARO	—		—		—			122.4			—			122.4
DUE FROM AFFILIATES	1,599.5		217.3		39.0			4,660.1			(6,515.9		)	—
INVESTMENTS IN AFFILIATES	10,115.2		704.2		1,230.5			—			(12,049.9		)	—
OTHER ASSETS	1.2		3.0		—			182.8			—			187.0
	$	16,003.8	$	1,187.9	$	1,270.2		$	19,615.1		$	(24,051.9	)	$	14,025.1
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	95.9	$	25.2	$	4.2		$	535.4		$	—		$	660.7
Accounts payable to affiliates	1,041.1		190.4		785.3			3,469.3			(5,486.1		)	$	—
Current maturities of long-term debt	$	100.5	$	—	$	124.0		$	—		$	—		$	224.5
Total current liabilities	1,237.5		215.6		913.5			4,004.7			(5,486.1		)	885.2
DUE TO AFFILIATES	3,526.0		488.2		645.9			1,855.8			(6,515.9		)	—
LONG-TERM DEBT	4,944.7		111.7		372.9			719.3			—			6,148.6
OTHER LIABILITIES	—		326.2		—			369.5			—			695.7
VALARIS SHAREHOLDERS' EQUITY (DEFICIT)	6,295.6		46.2		(662.1		)	12,668.5			(12,049.9		)	6,298.3
NONCONTROLLING INTERESTS	—		—		—			(2.7		)	—			(2.7		)
Total equity (deficit)	6,295.6		46.2		(662.1		)	12,665.8			(12,049.9		)	6,295.6
	$	16,003.8	$	1,187.9	$	1,270.2		$	19,615.1		$	(24,051.9	)	$	14,025.1

VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2019 (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	$	21.5		$	—	$	—		$	75.7		$	—		$	97.2
Accounts receivable, net	0.2			19.7		—			500.8			—			520.7
Accounts receivable from affiliates	4,031.4			386.0		—			897.2			(5,314.6		)	—
Other	.6			11.6		—			434.3			—			446.5
Total current assets	4,053.7			417.3		—			1,908.0			(5,314.6		)	1,064.4
PROPERTY AND EQUIPMENT, AT COST	1.9			108.8		—			18,283.1			—			18,393.8
Less accumulated depreciation	1.9			84.7		—			3,210.3			—			3,296.9
Property and equipment, net	—			24.1		—			15,072.8			—			15,096.9
SHAREHOLDER NOTE FROM ARO	—			—		—			452.9			—			452.9
INVESTMENT IN ARO	—			—		—			128.7			—			128.7
DUE FROM AFFILIATES	73.8			—		38.9			1,775.7			(1,888.4		)	—
INVESTMENTS IN AFFILIATES	9,778.5			788.8		1,224.9			—			(11,792.2		)	—
OTHER ASSETS	7.9			3.8		—			182.6			(6.0		)	188.3
	$	13,913.9		$	1,234.0	$	1,263.8		$	19,520.7		$	(19,001.2	)	$	16,931.2
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	99.2		$	29.3	$	12.2		$	565.2		$	—		$	705.9
Accounts payable to affiliates	818.8			147.8		815.1			3,532.9			(5,314.6		)	—
Current maturities of long - term debt	—			—		124.8			—			—			124.8
Total current liabilities	918.0			177.1		952.1			4,098.1			(5,314.6		)	830.7
DUE TO AFFILIATES	710.3			478.8		586.6			112.7			(1,888.4		)	—
LONG-TERM DEBT	2,990.6			111.7		373.3			2,447.9			—			5,923.5
OTHER LIABILITIES	(14.6		)	90.6		—			797.4			(6.0		)	867.4
VALARIS SHAREHOLDERS' EQUITY (DEFICIT)	9,309.6			375.8		(648.2		)	12,065.9			(11,792.2		)	9,310.9
NONCONTROLLING INTERESTS	—			—		—			(1.3		)	—			(1.3		)
Total equity (deficit)	9,309.6			375.8		(648.2		)	12,064.6			(11,792.2		)	9,309.6
	$	13,913.9		$	1,234.0	$	1,263.8		$	19,520.7		$	(19,001.2	)	$	16,931.2

Condensed Consolidating Statements Of Cash Flows



VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2020 (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	$	(88.3	)	$	226.2		$	(28.7	)	$	(313.6	)	$	—	$	(204.4	)
INVESTING ACTIVITIES
Additions to property and equipment	—			—			—			(36.3		)	—		(36.3		)
Proceeds from disposition of assets	—			—			—			10.4			—		10.4
Net cash used in investing activities	—			—			—			(25.9		)	—		(25.9		)
FINANCING ACTIVITIES
Borrowings on credit facility	343.9			—			—			—			—		343.9
Advances from (to) affiliates	(113.7		)	(226.2		)	28.7			311.2			—		—
Repayments of credit facility borrowings	(15.0		)	—			—			—			—		(15.0		)
Reduction of long -term borrowings	(9.7		)	—			—			—			—		(9.7		)
Other	(.9		)	—			—						—		(.9		)
Net cash provided by (used in) financing activities	204.6			(226.2		)	28.7			311.2			—		318.3
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(.3		)			(.3		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	116.3			—			—			(28.6		)	—		87.7
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	21.5			—			—			75.7			—		97.2
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	137.8		$	—		$	—		$	47.1		$	—	$	184.9



VALARIS PLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended March 31, 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 provided by (used in) operating activities	$	(45.9	)	$	(43.0	)	$	(55.2	)	$	119.7		$	—	$	(24.4	)
INVESTING ACTIVITIES
Maturities of short-term investments	204.0			—			—			—			—		204.0
Purchases of short-term investments	(120.0		)	—			—			—			—		(120.0		)
Additions to property and equipment	—			—			—			(29.0		)	—		(29.0		)
Other	—			—			—			.3			—		.3
Net cash provided by (used in) investing activities	84.0			—			—			(28.7		)	—		55.3
FINANCING ACTIVITIES
Cash dividends paid	(4.5		)	—			—			—			—		(4.5		)
Advances from (to) affiliates	15.3			43.0			54.8			(113.1		)	—		—
Other	(2.8		)	—			—			—			—		(2.8		)
Net cash provided by (used in) financing activities	8.0			43.0			54.8			(113.1		)	—		(7.3		)
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(.3		)	—		(.3		)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	46.1			—			(.4		)	(22.4		)	—		23.3
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	199.8			—			2.7			72.6			—		275.1
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	245.9		$	—		$	2.3		$	50.2		$	—	$	298.4