Valaris Limited · NYSE:VAL
Valaris — Investor Presentation (March 2020)
18 slides from Valaris's investor presentation, March 2020
Slide 1: Investor Presentation
Investor Presentation March 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this investor presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include words
Slide 3: Outline
Outline 1. Market Dynamics 2. Valaris Fleet 3. ARO Drilling 4. Debt Maturities 5. Operational Overview 3
Slide 4: Market Dynamics
Market Dynamics illus
Slide 5: Global Rig Fleet
Global Rig Fleet Floaters Jackups • Contracted rig count for the Delivered Rigs global fleet is expected to Under Contract 133 354 Future Contract 22 40 decline given increased Idle / Stacked 38 59 market uncertainty, putting Marketed Fleet 193 453 pressure on utilization for Non-Marketed 40 72 offs
Slide 6: Valaris Fleet
Valaris Fleet “Ui : — 7~. . eg aq VALARIS—
Slide 7: Fleet Overview
Fleet Overview Diverse Fleet of High-Specification Assets Capable of Meeting Broad Spectrum of Customers’ Well Program Requirements Drillships Semisubmersibles Jackups 16 Total 10 Total 50 Total – Average age of 6 years – 9 modern assets with sixth – 7 heavy duty ultra-harsh & 7 heavy – 11 assets eq
Slide 8: Geographic Footprint
Geographic Footprint • Presence in virtually all major offshore regions • Critical mass of highest-specification drillships well positioned to serve major deepwater basins of West Africa, South America and Gulf of Mexico • Versatile semisubmersible fleet capable of meeting a wide range of customer r
Slide 9: ARO Drilling
ARO Drilling 9
Slide 10: ARO Drilling Overview
ARO Drilling Overview 50% 50% Ownership Ownership Valaris operates seven jackups offshore Saudi Arabia outside of ARO ~$450M ~$450M Drilling joint venture Shareholder Shareholder Notes Receivable Notes Receivable Leased Rigs (9) Owned Rigs (7) Newbuild Rigs (20) • Three-year contracts; day rates set
Slide 11: ARO Drilling Financial Considerations
ARO Drilling Financial Considerations 50% 50% Ownership Ownership ~$450M ~$450M Shareholder Shareholder Notes Receivable Notes Receivable Shareholder Notes Cash & Distributions Future Growth • ~$900M with 10-year maturities • ARO Drilling had more than • 20-rig newbuild program over ten $400M of cur
Slide 12: Debt Maturities
Debt Maturities 12
Slide 13: Debt Maturities
Debt Maturities $ millions $1,764 $1,401 $850 $1,000 $850 $695 $621 $914 $400 $300 $123 $114 $112 2020 2021 2022 2023 2024 2025 2026 2027 2040 2042 2044 Senior Notes Convertible Senior Notes Note: All amounts as of December 31, 2019. Represents principal debt balances outstanding. Borrowing capacity
Slide 14: Operational Overview
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Slide 15: Operational Excellence
Operational Excellence Consistent Operational Results Industry-Leading Customer Satisfaction Fleet-Wide Operational Effectiveness1 99% 99% 98% 98% 2016 2017 2018 2019 • Achieved high levels of operational • Won 10 of 17 categories in latest survey2 effectiveness for the past several years ‒ Total Sa
Slide 16: Innovation and Technology
Innovation and Technology Strategy Drilling Process Efficiency • Continuous Tripping Technology™ is a patented • Focused efforts on system that fully automates the pipe tripping process technology, systems and without stopping to make or break connections, processes to differentiate our enabling 3x
Slide 17: Merger Synergies and Cost Reduction Initiatives
Merger Synergies and Cost Reduction Initiatives Synergies & Cost Savings Progress to Date • Expect to achieve $265+ million of • More than 80% of integration-related annual run rate synergies and cost activities completed savings as compared to pre-merger – Staffing reductions levels – Houston and A
Slide 18: Boldly First
Boldly First