EX-99.1 2 ex99_1january2023.htm EX-99.1

| Valaris Limited Fleet Status Report January 12, 2023 |

New Contracts and Extensions, Rig Sales and Other Updates Since Last Fleet Status Report
Floaters •Four-well contract with BP offshore Egypt for drillship VALARIS DS-12. The contract is expected to commence late in third quarter or early in fourth quarter 2023 and has an estimated duration of 320 days. The estimated total contract value, inclusive of a mobilization fee, is $136 million. •Option exercised by TotalEnergies EP Brasil offshore Brazil for drillship VALARIS DS-15. Following the exercise of this option, the rig is expected to be under contract through December 2023. There is one priced option remaining with an estimated duration of 100 days. Jackups •Two one-year options exercised by Harbour Energy in the UK North Sea for heavy duty harsh environment jackup VALARIS 120. The first option period is expected to commence in July 2023 in direct continuation of the existing contract. •One-well contract with Petrofac in the UK North Sea for heavy duty harsh environment jackup VALARIS 121. The contract is expected to commence early in third quarter 2023 and has an estimated duration of 70-100 days. •210-day contract with Shell in the UK North Sea for heavy duty harsh environment jackup VALARIS 121. The contract is expected to commence early in fourth quarter 2023. The expected total contract value is over $25 million. The contract has four priced options. •90-day contract with Kistos in the Dutch North Sea for heavy duty harsh environment jackup VALARIS 123. The contract commenced in November 2022. VALARIS 123 will use its selective reduction (SCR) system during the contract with Kistos to significantly reduce NO x emissions from the rig. •195-day contract with ONE-Dyas in the Dutch North Sea for heavy duty harsh environment jackup VALARIS 123. The contract is expected to commence in first quarter 2023 in direct continuation of the rig's current contract. VALARIS 123 will utilize its selective catalytic reduction (SCR) system during the contract with ONE-Dyas to significantly reduce NO x emissions from the rig. •180-day contract with Perenco in the UK North Sea for heavy duty ultra-harsh environment jackup VALARIS 247. The contract is expected to commence in first quarter 2023. The contract has one 60-day priced option. •90-day option exercised by Cantium in the U.S. Gulf of Mexico for standard duty modern jackup VALARIS 144. The option period is expected to commence in March 2023 in direct continuation of the existing contract. The operating day rate for the option period is $85,000. •One-well option exercised by Talos in the U.S. Gulf of Mexico for standard duty modern jackup VALARIS 144. The option is in direct continuation of the existing program and has an estimated duration of 30 days. The operating day rate is $86,900. •One-well contract with North Sea Natural Resources in the UK North Sea for heavy duty ultra-harsh environment jackup VALARIS Norway. The operating day rate is $105,000. ARO Drilling •Three-year contract extension offshore Saudi Arabia for standard duty modern jackup VALARIS 147. The extension period commenced in December 2022 in direct continuation of the existing contract. In accordance with the terms of our shareholder agreement, Valaris will bareboat charter VALARIS 147 to ARO. •Three-year contract extension offshore Saudi Arabia for standard duty modern jackup VALARIS 148. The extension period is expected to commence in February 2023 in direct continuation of the existing contract. In accordance with the terms of our shareholder agreement, Valaris will bareboat charter VALARIS 148 to ARO.

New Disclosure: bolded text signifies items that have not been previously disclosed
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| Valaris Limited Fleet Status Report January 12, 2023 |

Contract Backlog(1) (2) ($ millions) | 2023 | 2024 | 2025+ | Total |  | Contracted Days(1) (2) | 2023 | 2024 | 2025+
Drillships | $ | 554.9 |  | $ | 426.3 |  | $ | 61.1 |  | $ | 1,042.3 |  |  | Drillships | 2,227 |  | 1,323 |  | 219 |
Semisubmersibles | 228.2 |  | 110.7 |  | — |  | 338.9 |  |  | Semisubmersibles | 942 |  | 487 |  | — |
Floaters | $ | 783.1 |  | $ | 537.0 |  | $ | 61.1 |  | $ | 1,381.2 |  |  | Floaters | 3,169 |  | 1,810 |  | 219 |
HD - Ultra-Harsh & Harsh | $ | 195.3 |  | $ | 91.5 |  | $ | 24.6 |  | $ | 311.4 |  |  | HD - Ultra-Harsh & Harsh | 1,874 |  | 718 |  | 189 |
HD & SD - Modern | 206.0 |  | 58.7 |  | 92.7 |  | 357.4 |  |  | HD & SD - Modern | 2,354 |  | 684 |  | 823 |
SD - Legacy | 55.4 |  | 11.3 |  | — |  | 66.7 |  |  | SD - Legacy | 749 |  | 174 |  | — |
Jackups | $ | 456.7 |  | $ | 161.5 |  | $ | 117.3 |  | $ | 735.5 |  |  | Jackups | 4,977 |  | 1,576 |  | 1,012 |
Other(3) | $ | 152.1 |  | $ | 87.6 |  | $ | 31.3 |  | $ | 271.0 |  |  | Other(3) | 3,530 |  | 2,968 |  | 1,050 |
Total | $ | 1,391.9 |  | $ | 786.1 |  | $ | 209.7 |  | $ | 2,387.7 |  |  | Total | 11,676 |  | 6,354 |  | 2,281 |
ARO Drilling(4) |  |  |  |  |  | Average Day Rates(1) (2) | 2023 | 2024 | 2025+
Owned Rigs | $ | 238.5 |  | $ | 246.6 |  | $ | 336.3 |  | $ | 821.4 |  |  | Drillships | $ | 249,000 |  | $ | 322,000 |  | $ | 279,000 |
Leased Rigs | 269.2 |  | 280.0 |  | 101.7 |  | 650.9 |  |  | Semisubmersibles | 242,000 |  | 227,000 |  | — |
Total | $ | 507.7 |  | $ | 526.6 |  | $ | 438.0 |  | $ | 1,472.3 |  |  | Floaters | $ | 247,000 |  | $ | 297,000 |  | $ | 279,000 |
|  |  |  |  |  | HD - Ultra-Harsh & Harsh | $ | 104,000 |  | $ | 127,000 |  | $ | 130,000 |
|  |  |  |  |  | HD & SD - Modern | 88,000 |  | 86,000 |  | 113,000 |
|  |  |  |  |  | SD - Legacy | 74,000 |  | 65,000 |  | — |
|  |  |  |  |  | Jackups | $ | 92,000 |  | $ | 102,000 |  | $ | 116,000 |
(1) Contract backlog, contracted days and average day rates as of January 12, 2023. (2) Contract backlog and average day rates exclude certain types of non-recurring revenues such as lump sum mobilization payments. Contract backlog and contracted days include backlog and days when a rig is under suspension. Average day rates are adjusted to exclude suspension backlog and days. (3) Other represents contract backlog and contracted days related to bareboat charter agreements and management services contracts. (4) ARO Drilling contract backlog as of January 12, 2023. HD = Heavy Duty; SD = Standard Duty

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| Valaris Limited Fleet Status Report January 12, 2023 |

Asset Category / Rig |  | Design |  | Year Delivered |  | Customer |  | Location |  | Contract Start Date |  | Contract End Date(1) |  | Day Rate(2) |  | Comments
Drillships |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
VALARIS DS-18 |  | GustoMSC P10000 |  | 2015 |  | Chevron |  | U.S. GOM |  | Aug 22 |  | Jul 25 |  |  |  | Contract includes MPD services
VALARIS DS-17 |  | GustoMSC P10000 |  | 2014 |  | Equinor |  | Brazil |  | Jun 23 |  | Dec 24 |  |  |  | Contract includes MPD and additional services. Rig being reactivated in Spain. Total contract value of $327 million, including an upfront payment of approx. $86 million for mobilization, capital upgrades and a contribution towards reactivation costs. Two priced options each with an estimated duration of 60 days
VALARIS DS-16 |  | GustoMSC P10000 |  | 2014 |  | Occidental |  | U.S. GOM |  | May 22 |  | May 24 |  |  |  | Contract includes MPD services. 1-year priced option
VALARIS DS-15 |  | GustoMSC P10000 |  | 2014 |  | TotalEnergies |  | Brazil |  | Jun 21 |  | Dec 23 |  |  |  | Contract includes MPD services. Priced option with an estimated duration of 100 days
VALARIS DS-12 |  | DSME 12000 |  | 2014 |  | BP Undisclosed BP |  | Mauritania/Senegal Angola Egypt |  | Apr 22 Mar 23 Oct 23 |  | Feb 23 May 23 Aug 24 |  |  |  | Total contract value of $26.2 million Total contract value of $136 million
VALARIS DS-10 |  | Samsung GF12000 |  | 2017 |  | SNEPCo |  | Nigeria |  | Apr 22 |  | Apr 23 |  |  |  | Priced option with an estimated duration of 330 days
VALARIS DS-9 |  | Samsung GF12000 |  | 2015 |  | ExxonMobil |  | Angola |  | Jul 22 |  | Jul 24 |  |  |  | Contract includes MPD services. Four 6-month priced options
VALARIS DS-4 |  | Samsung 96K |  | 2010 |  | Petrobras |  | Brazil |  | Jul 22 |  | Dec 23 |  |  |  | Contract includes MPD and additional services. 6-month priced option
Stacked |  |  |  |  |  |  |  |  |  |  |  |  |  |
VALARIS DS-11 |  | DSME 12000 |  | 2013 |  |  |  | Spain |  |  |  |  |  |  |  |
VALARIS DS-8 |  | Samsung GF12000 |  | 2015 |  |  |  | Spain |  |  |  |  |  |  |  |
VALARIS DS-7 |  | Samsung 96K |  | 2013 |  |  |  | Spain |  |  |  |  |  |  |  |
Purchase Options(3) |  |  |  |  |  |  |  |  |  |  |  |  |  |
VALARIS DS-14 |  | DSME 12000 |  |  |  |  |  | South Korea |  |  |  |  |  |  |  | Option to take delivery by year-end 2023. Purchase price of approx. $218 million assuming a Dec 31, 2023 delivery
VALARIS DS-13 |  | DSME 12000 |  |  |  |  |  | South Korea |  |  |  |  |  |  |  | Option to take delivery by year-end 2023. Purchase price of approx. $119 million assuming a Dec 31, 2023 delivery

Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| Valaris Limited Fleet Status Report January 12, 2023 |

Asset Category / Rig |  | Design |  | Year Delivered |  | Customer |  | Location |  | Contract Start Date |  | Contract End Date(1) |  | Day Rate(2) |  | Comments
Semisubmersibles |  |  |  |  |  |  |  |  |  |  |  |  |  |
VALARIS DPS-5 |  | ENSCO 8500 Series, DP + Moored |  | 2012 |  | Murphy Murphy Eni |  | U.S. GOM Mexico Mexico |  | Sep 22 Oct 22 Jan 23 |  | Oct 22 Dec 22 Aug 23 |  | $313,500 |  | Plus mobilization fee of approx. $1.2 million
VALARIS DPS-1 |  | F&G ExD Millennium, DP |  | 2012 |  | Woodside Woodside |  | Australia Australia |  | Apr 22 Mar 23 |  | Mar 23 Sep 24 |  |  |  |
VALARIS MS-1 |  | F&G ExD Millennium, Moored |  | 2011 |  | Santos Undisclosed |  | Australia Australia |  | Jul 22 Oct 23 |  | Oct 23 Aug 24 |  |  |  | Contract suspended. During the contract suspension period, the duration of which is currently unknown, we do not expect a material impact on revenues and earnings. Three priced options each with an estimated duration of 50 days
Stacked |  |  |  |
VALARIS DPS-6 |  | ENSCO 8500 Series, DP |  | 2012 |  |  |  | U.S. GOM |  |  |  |  |  |  |  |
VALARIS DPS-3 |  | ENSCO 8500 Series, DP + Moored |  | 2010 |  |  |  | U.S. GOM |  |  |  |  |  |  |  |

Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| Valaris Limited Fleet Status Report January 12, 2023 |

Asset Category / Rig |  | Design |  | Year Delivered |  | Customer |  | Location |  | Contract Start Date |  | Contract End Date(1) |  | Day Rate(2) |  | Comments |
Jackups |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Heavy Duty Ultra-Harsh Environment(4) |  |  |  |  |
VALARIS Norway |  | KFELS N Class |  | 2011 |  | BP Centrica Storage North Sea Natural Resources |  | UK UK UK |  | May 22 Jan 23 Aug 23 |  | Nov 22 Apr 23 Sep 23 |  | $105,000 |  |  |
VALARIS Stavanger |  | KFELS N Class |  | 2011 |  | Equinor |  | Norway UK |  | Oct 19 |  | Nov 22 |  |  |  |  |
VALARIS Viking |  | KFELS N Class |  | 2010 |  | Repsol |  | Norway |  | Jun 22 |  | Jan 23 |  |  |  |  |
VALARIS 250 |  | LT Super Gorilla XL |  | 2003 |  | Saudi Aramco |  | Saudi Arabia |  | Jun 18 |  | Dec 24 |  |  |  | Leased to ARO Drilling(5) |
VALARIS 249 |  | LT Super Gorilla |  | 2002 |  | OMV |  | New Zealand |  | Feb 22 |  | Apr 23 |  |  |  |  |
VALARIS 248 |  | LT Super Gorilla |  | 2000 |  | Neptune |  | UK |  | Aug 20 |  | Dec 23 |  |  |  |  |
VALARIS 247 |  | LT Super Gorilla |  | 1998 |  | DNO Perenco |  | UK UK |  | May 21 Mar 23 |  | Jan 23 Sep 23 |  |  |  | One priced option with an estimated duration of 60 days |

Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| Valaris Limited Fleet Status Report January 12, 2023 |

Asset Category / Rig |  | Design |  | Year Delivered |  | Customer |  | Location |  | Contract Start Date |  | Contract End Date(1) |  | Day Rate(2) |  | Comments
Jackups |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Heavy Duty Harsh Environment(4) |  |  |  |
VALARIS 123 |  | KFELS Super A |  | 2019 |  | Kistos ONE-Dyas |  | Netherlands Netherlands |  | Nov 22 Feb 23 |  | Feb 23 Aug 23 |  |  |  |
VALARIS 122 |  | KFELS Super A |  | 2014 |  | Shell Shell Shell |  | UK UK UK |  | Jan 20 Nov 22 Apr 23 |  | Nov 22 Apr 23 Aug 24 |  |  |  | Total contract value of over $60 million
VALARIS 121 |  | KFELS Super A |  | 2013 |  | Harbour Energy Petrofac Shell |  | UK UK UK |  | Jul 21 Jul 23 Oct 23 |  | Jan 23 Sep 23 Apr 24 |  |  |  | Total contract value of over $25 million. Four priced options
VALARIS 120 |  | KFELS Super A |  | 2013 |  | Harbour Energy |  | UK |  | Jul 17 Jul 23 |  | Jul 23 Jul 25 |  |  |  |
Stacked |  |  |  |
VALARIS 102 |  | KFELS MOD V-A |  | 2002 |  |  |  | U.S. GOM |  |  |  |  |  |  |  |

Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| Valaris Limited Fleet Status Report January 12, 2023 |

Asset Category / Rig |  | Design |  | Year Delivered |  | Customer |  | Location |  | Contract Start Date |  | Contract End Date(1) |  | Day Rate(2) |  | Comments
Jackups |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Heavy Duty - Modern(4) |  |  |  |
VALARIS 118 |  | LT 240-C |  | 2011 |  | BP BP |  | Trinidad Trinidad |  | Oct 22 Jul 23 |  | Jun 23 Jan 24 |  |  |  | Total contract value of approx. $24 million
VALARIS 117 |  | LT 240-C |  | 2009 |  | Eni |  | Mexico |  | Dec 21 |  | Dec 23 |  |  |  |
VALARIS 116 |  | LT 240-C |  | 2008 |  | Saudi Aramco |  | Saudi Arabia |  | Dec 18 |  | Dec 24 |  |  |  | Leased to ARO Drilling(5)
VALARIS 115 |  | BM Pacific Class 400 |  | 2013 |  | Mubadala Petroleum Shell |  | Thailand Singapore Brunei |  | Feb 22 Apr 23 |  | Nov 22 Apr 27 |  |  |  | SPS and contract preparations Total contract value of approx. $159 million
VALARIS 110 |  | KFELS MOD V-B |  | 2015 |  | North Oil Company |  | Qatar |  | Oct 21 |  | Oct 24 |  |  |  | Two 1-year priced options
VALARIS 108 |  | KFELS MOD V-B |  | 2007 |  | Saudi Aramco |  | Saudi Arabia |  | Nov 18 |  | Mar 23 |  |  |  |
VALARIS 107 |  | KFELS MOD V-B |  | 2006 |  | Undisclosed Eni GB Energy Undisclosed |  | Australia Australia Australia Australia |  | Aug 22 Nov 22 Feb 23 Apr 23 |  | Nov 22 Feb 23 Apr 23 Jul 23 |  | $112,000 $115,000 $118,000 $120,000 |  | One priced option with an estimated duration of 30 days
VALARIS 106 |  | KFELS MOD V-B |  | 2005 |  | BP |  | Indonesia |  | Jan 18 |  | Jan 24 |  |  |  | Eight priced options each with an estimated duration of 90 days
Stacked |  |  |  |
VALARIS 111 |  | KFELS MOD V-B |  | 2003 |  |  |  | Croatia |  |  |  |  |  |  |  |
VALARIS 109 |  | KFELS MOD V-Super B |  | 2008 |  |  |  | Namibia |  |  |  |  |  |  |  |
VALARIS 104 |  | KFELS MOD V-B |  | 2002 |  |  |  | UAE |  |  |  |  |  |  |  |

Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| Valaris Limited Fleet Status Report January 12, 2023 |

Asset Category / Rig |  | Design |  | Year Delivered |  | Customer |  | Location |  | Contract Start Date |  | Contract End Date(1) |  | Day Rate(2) |  | Comments
Jackups |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Standard Duty - Modern |  |  |  |
VALARIS 148 |  | LT Super 116-E |  | 2013 |  | Saudi Aramco |  | Saudi Arabia |  | Nov 19 |  | Feb 26 |  |  |  | Leased to ARO Drilling(5)
VALARIS 147 |  | LT Super 116-E |  | 2013 |  | Saudi Aramco |  | Saudi Arabia |  | Sep 19 |  | Dec 25 |  |  |  | Leased to ARO Drilling(5)
VALARIS 146 |  | LT Super 116-E |  | 2011 |  | Saudi Aramco |  | Saudi Arabia |  | Sep 18 |  | Dec 24 |  |  |  | Leased to ARO Drilling(5)
VALARIS 144 |  | LT Super 116-E |  | 2010 |  | Undisclosed Cantium Talos |  | U.S. GOM U.S. GOM U.S. GOM |  | Aug 22 Dec 22 Jul 23 |  | Nov 22 Jun 23 Sep 23 |  | $80,000 $86,900 |  | Total contract value of approx. $5 million 90-day priced option
VALARIS 143 |  | LT Super 116-E |  | 2010 |  | Saudi Aramco |  | Saudi Arabia |  | Oct 18 |  | Dec 24 |  |  |  | Leased to ARO Drilling(5)
VALARIS 141 |  | LT Super 116-E |  | 2016 |  | Saudi Aramco |  | Saudi Arabia |  | Aug 22 |  | Aug 25 |  |  |  | Leased to ARO Drilling(5)
VALARIS 140 |  | LT Super 116-E |  | 2016 |  | Saudi Aramco |  | Saudi Arabia |  | Mar 22 |  | Mar 25 |  |  |  | Leased to ARO Drilling(5)
VALARIS 76 |  | LT Super 116-C |  | 2000 |  | Saudi Aramco |  | Saudi Arabia |  | Jan 15 |  | Oct 23 |  |  |  |
Stacked |  |  |  |
VALARIS 75 |  | LT Super 116-C |  | 1999 |  |  |  | U.S. GOM |  |  |  |  |  |  |  |

Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| Valaris Limited Fleet Status Report January 12, 2023 |

Asset Category / Rig |  | Design |  | Year Delivered |  | Customer |  | Location |  | Contract Start Date |  | Contract End Date(1) |  | Day Rate(2) |  | Comments
Jackups |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Standard Duty - Legacy |  |  |  |
VALARIS 92 |  | LT 116-C |  | 1982 |  | Harbour Energy |  | UK |  | Feb 17 |  | Dec 23 |  |  |  |
VALARIS 72 |  | Hitachi K1025N |  | 1981 |  | Eni |  | UK |  | Jan 20 |  | Jun 24 |  |  |  |
VALARIS 54 |  | F&G L-780 Mod II-C |  | 1982 |  | Saudi Aramco |  | Saudi Arabia |  | Sep 14 |  | Mar 23 |  |  |  |
Held for Sale |  |  |  |
VALARIS 145 |  | LT Super 116-E |  | 2010 |  |  |  | U.S. GOM |  |  |  |  |  |  |  |

Changes: bolded rig names and underlined text signify changes in rig status from previous report
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| Valaris Limited Fleet Status Report January 12, 2023 |

Asset Category / Rig |  | Design |  | Customer |  | Location |  | Contract Start Date |  | Contract End Date(1) |  | Day Rate(2) |  | Comments
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |
Drilling Management |  |  |  |
Thunder Horse |  | Deepwater Semisubmersible |  | BP |  | U.S. GOM |  | Jan 17 |  | Jan 24 |  |  |  |
Mad Dog |  | Deepwater Spar Drilling Rig |  | BP |  | U.S. GOM |  | Jan 17 |  | Jan 24 |  |  |  |
ARO Drilling |  |  |  |  |  |  |  |  |  |  |  |  |  |
Jackup Rigs Owned by ARO Drilling |  |  |  |
ARO 2001 |  | LT 116-C |  | Saudi Aramco |  | Saudi Arabia |  | Oct 17 |  | Jan 26 |  |  |  |
ARO 2003 |  | BM 200-H |  | Saudi Aramco |  | Saudi Arabia |  | Feb 18 |  | Feb 26 |  |  |  |
ARO 3001 |  | LT Tarzan 225-C |  | Saudi Aramco |  | Saudi Arabia |  | Oct 17 |  | Jan 26 |  |  |  |
ARO 3002 |  | LT Tarzan 225-C |  | Saudi Aramco |  | Saudi Arabia |  | Oct 17 |  | Jan 26 |  |  |  |
ARO 3003 |  | LT Tarzan 225-C |  | Saudi Aramco |  | Saudi Arabia |  | Oct 18 |  | Dec 26 |  |  |  |
ARO 3004 |  | LT Tarzan 225-C |  | Saudi Aramco |  | Saudi Arabia |  | Oct 18 |  | Dec 26 |  |  |  |
ARO 4001 |  | KFELS Super B |  | Saudi Aramco |  | Saudi Arabia |  | Oct 17 |  | Jan 26 |  |  |  |
ARO 2005 |  | LT 116-C |  |  |  | Saudi Arabia |  |  |  |  |  |  |  | Under construction. Delivery expected in 2023
ARO 2006 |  | LT 116-C |  |  |  | Saudi Arabia |  |  |  |  |  |  |  | Under construction. Delivery expected in 2023

Changes: bolded rig names and underlined text signify changes in rig status from previous report
(1) Contract duration does not include any unexercised optional extensions. Contract end dates can vary based on how long it takes to complete the wells subject to the contract.
(2) Day rates are provided unless such disclosures are restricted by confidentiality provisions.
(3) Valaris has the right, but not the obligation, to take delivery of either or both rigs on or before December 31, 2023. Not included in Valaris' fleet count.
(4) Heavy duty jackups are well-suited for operations in tropical revolving storm areas.
(5) Rigs leased to ARO Drilling via bareboat charter agreements to fulfill contracts between ARO Drilling and Saudi Aramco.
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| Valaris Limited Fleet Status Report January 12, 2023 |

Additional Information Regarding this Fleet Status Report
Day Rate and Terms. The day rates reflected in this Fleet Status Report are stated in U.S. dollars and are the operating day rates charged to customers, which may include estimated contractual adjustments for changes in operating costs and/or reimbursable cost adjustments for ongoing expenses such as crew, catering, insurance and taxes. The day rates, however, do not include certain types of non-recurring revenues such as lump sum mobilization payments, revenues earned during mobilizations, revenues associated with contract preparation and other non-recurring reimbursable items such as mobilizations and capital enhancements, and the impact of the fair market value adjustments to previously acquired drilling contracts. Routine and non-routine downtime may reduce the actual revenues recognized during the contract term. Additionally, we sometimes negotiate special rates and/or day rate adjustments with customers that may reduce revenues recognized.
Total Contract Value. Total contract value is the estimated total compensation expected to be received for a contract, including the operating day rate over the estimated firm term of the contract and any non-recurring lump sum payments for items such as mobilization, reactivation and capital upgrades.
Forward-Looking Statements. Statements contained in this Fleet Status Report that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "likely," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements regarding future rig day rates, including adjustments with customers; future levels of offshore drilling activity; expected utilization, day rates, revenues, operating expenses, rig commitments and availability, cash flow, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the effect, impact, potential duration and other implications of COVID-19; the offshore drilling market, including supply and demand, customer drilling programs, stacking and reactivation of rigs, effects of new and reactivated rigs on the market and effects of volatility in commodity prices; expected work commitments, awards and contracts; letters of intent; scheduled delivery dates for rigs; performance of our joint venture with Saudi Aramco; the timing of delivery, mobilization, contract commencement, availability, relocation or other movement of rigs; expected divestitures of assets; general market, business and industry conditions, trends and outlook; general political conditions, including political tensions, conflicts and war (such as the ongoing conflict in Ukraine); future operations; increasing regulatory complexity; and expense management. The forward-looking statements contained in this press release are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, which may, among other things, impact our ability to staff rigs and rotate crews; cancellation, suspension, renegotiation or termination of drilling contracts and programs, including drilling contracts which grant the customer termination rights if final investment decision (FID) is not received with respect to projects for which the drilling rig is contracted; potential additional asset impairments; failure to satisfy our debt obligations; our ability to obtain financing, service our debt, fund capital expenditures and pursue other business opportunities; adequacy of sources of liquidity for us and our customers; the effects of our emergence from bankruptcy on the Company's business, relationships, comparability of our financial results and ability to access financing sources; actions by regulatory authorities, or other third parties; actions by our security holders; commodity price fluctuations and volatility, customer demand, new rig supply, downtime and other risks associated with offshore rig operations; severe weather or hurricanes; changes in worldwide rig supply and demand, competition and technology; consumer preferences for alternative fuels; increased scrutiny of our Environmental, Social and Governance ("ESG") practices and reporting responsibilities; changes in customer strategy; governmental action, civil unrest and political and economic uncertainties; the COVID-19 outbreak and the related public health measures implemented by governments worldwide, terrorism, piracy and military action; risks inherent to shipyard rig reactivation, upgrade, repair, maintenance or enhancement; our ability to enter into, and the terms of, future drilling contracts; suitability of rigs for future contracts; the cancellation of letters of intent or letters of award or any failure to execute definitive contracts following announcements of letters of intent, letters of award or other expected work commitments; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; environmental or other liabilities, risks or losses; debt restrictions that may limit our liquidity and flexibility; and cybersecurity risks and threats. In addition to the numerous factors described above, you should also carefully read and consider "Item 1A. Risk Factors" in Part I and "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our most recent annual report on Form 10-K, which is available on the SEC’s website at www.sec.gov or on the Investor Relations section of our website at www.valaris.com. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to update or revise any forward-looking statements, except as required by law.
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