Document


New Contracts and Extensions, Rig Sales and Other Updates Since Last Fleet Status Report
Floaters •330-day priced option exercised by Shell Nigeria Exploration and Production Company (SNEPCo) offshore Nigeria for drillship VALARIS DS-10. Following the exercise of this option, the rig is under contract through March 2024. The operating day rate for the option period is $231,000. Jackups •One-year contract with an undisclosed operator offshore Trinidad for heavy duty ultra-harsh environment jackup VALARIS 249. The contract is expected to commence late in second quarter or early in third quarter 2023. The operating day rate is $125,000. We will receive a mobilization fee of $8.5 million, plus a daily rate of $64,000 while the rig is in transit from New Zealand to Trinidad. •One-well option exercised by Eni offshore Australia for heavy duty modern jackup VALARIS 107. The option period commenced in February 2023 in direct continuation of the existing contract. The operating day rate for the option period is $126,500. ARO Drilling •Five-year contract offshore Saudi Arabia for standard duty modern jackup VALARIS 76. The contract is expected to commence in first quarter 2024. Valaris will bareboat charter VALARIS 76 to ARO. •Three-year contract offshore Saudi Arabia for heavy duty modern jackup VALARIS 108. The contract is expected to commence in third quarter 2023. Valaris will bareboat charter VALARIS 108 to ARO.


Contract Backlog(1) (2) ($ millions)	2023		2024		2025+		Total		Contracted Days(1) (2)	2023		2024		2025+
Drillships	$	554.5	$	446.7	$	61.1	$	1,062.3	Drillships	2,210		1,412		219
Semisubmersibles	199.1		115.5		—		314.6		Semisubmersibles	825		508		—
Floaters	$	753.6	$	562.2	$	61.1	$	1,376.9	Floaters	3,035		1,920		219

HD - Ultra-Harsh & Harsh	$	196.7	$	125.2	$	26.4	$	348.3	HD - Ultra-Harsh & Harsh	1,871		986		203
HD & SD - Modern	189.7		58.7		92.7		341.1		HD & SD - Modern	2,126		684		823
SD - Legacy	41.6		11.3		—		52.9		SD - Legacy	560		174		—
Jackups	$	428.0	$	195.2	$	119.1	$	742.3	Jackups	4,557		1,844		1,026

Other(3)	$	141.9	$	112.8	$	89.3	$	344.0	Other(3)	3,344		3,700		2,661

Total	$	1,323.5	$	870.2	$	269.5	$	2,463.2	Total	10,936		7,464		3,906

ARO Drilling(4)									Average Day Rates(1) (2)	2023		2024		2025+
Owned Rigs	$	211.4	$	246.6	$	336.3	$	794.3	Drillships	$	251,000	$	316,000	$	279,000
Leased Rigs	259.1		352.2		326.2		937.5		Semisubmersibles	241,000		227,000		—
Total	$	470.5	$	598.8	$	662.5	$	1,731.8	Floaters	$	248,000	$	293,000	$	279,000

									HD - Ultra-Harsh & Harsh	$	105,000	$	127,000	$	130,000
									HD & SD - Modern	89,000		86,000		113,000
									SD - Legacy	74,000		65,000		—
									Jackups	$	94,000	$	106,000	$	116,000

(1) Contract backlog, contracted days and average day rates as of February 21, 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 February 21, 2023. HD = Heavy Duty; SD = Standard Duty

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

Mar 24

$231,000

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

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

Feb 23

Aug 23

Jan 23

May 23

Sep 23

$105,000

VALARIS Stavanger

KFELS N Class

2011

Equinor

Norway
UK

Oct 19

Nov 22

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

Undisclosed

New Zealand

Trinidad

Feb 22

Jun 23

Mar 23
Jun 24

$125,000

Plus mobilization fee of $8.5 million and a daily rate of $64,000 while the rig is in transit from New Zealand to Trinidad

VALARIS 248

LT Super Gorilla

2000

Neptune

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

Stacked

VALARIS Viking

KFELS N Class

2010

Repsol

Norway

Jun 22

Jan 23

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

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

Jul 23

Mar 23

Jul 26

Leased to ARO Drilling(5)

VALARIS 107

KFELS MOD V-B

2006

Undisclosed

Eni

GB Energy

Undisclosed

Australia

Aug 22

Nov 22

Mar 23

Apr 23

Jun 23

Nov 22

Mar 23

Apr 23

Jun 23

Sep 23

$112,000

$115,000

$126,500

$118,000

$120,000

VALARIS 106

KFELS MOD V-B

2005

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

Valaris Limited
Fleet Status Report
February 21, 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
Cantium
Talos

U.S. GOM
U.S. GOM
U.S. GOM
U.S. GOM

Aug 22
Dec 22
Apr 23
Jul 23

Nov 22
Mar 23
Jun 23
Sep 23

$80,000
$85,000
$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

Feb 24

Oct 23

Feb 29

Leased to ARO Drilling(5)

Stacked

VALARIS 145

LT Super 116-E

2010

U.S. GOM

VALARIS 75

LT Super 116-C

1999

U.S. GOM

Asset Category / Rig

Design

Customer

Location

Contract Start Date

Contract End Date(1)

Day Rate(2)

Comments

Other

Drilling Management

Thunder Horse

Deepwater Semisubmersible

U.S. GOM

Jan 17

Jan 24

Mad Dog

Deepwater Spar Drilling Rig

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

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.

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 expected financial performance; expected utilization, day rates, revenues, operating expenses, cash flows, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the offshore drilling market, including supply and demand, customer drilling programs, stacking of rigs, effects of new rigs on the market and effect of the volatility of commodity prices; expected work commitments, awards, contracts and letters of intent; performance of our joint ventures, including our joint venture with Saudi Aramco; the availability, delivery, mobilization, contract commencement, availability, relocation or other movement of rigs and the timing thereof; rig reactivations; suitability of rigs for future contracts; divestitures of assets; general economic, market, business and industry conditions, including inflation and recessions, trends and outlook; general political conditions, including political tensions, conflicts and war (such as the ongoing conflict in Ukraine); cybersecurity attacks and threats; the effect, impact, potential duration and other implications of COVID-19; future operations; increasing regulatory complexity; the outcome of tax disputes; assessments and settlements; and expense management. The forward-looking statements contained in this Fleet Status Report are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including cancellation, suspension, renegotiation or termination of drilling contracts and programs; 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; actions by regulatory authorities, or other third parties; actions by our security holders; internal control risk; commodity price fluctuations and volatility, customer demand, loss of a significant customer or customer contract, downtime and other risks associated with offshore rig operations; adverse weather, including hurricanes; changes in worldwide rig supply, including as a result of reactivations and newbuilds, and demand, competition and technology; supply chain and logistics challenges; consumer preferences for alternative fuels; increased scrutiny of our Environmental, Social and Governance practices, initiatives and reporting responsibilities; changes in customer strategy, including increased focus on renewable energy projects; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties; terrorism, piracy and military action; risks inherent to shipyard rig reactivation, construction, upgrade, repair, maintenance or enhancement; our ability to enter into, and the terms of, future drilling contracts; 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 changes in foreign currency exchange rates. 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.