Valaris Limited · NYSE:VAL
Valaris — Investor Presentation (February 2024)
10 slides from Valaris's investor presentation, February 2024
Slide 1: ARO Drilling Investor Presentation February 2024
A February 202. Tare NF il ARO Dr k
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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking
Slide 3: ARO Drilling is a 50/50 joint venture between Valaris and Saudi Aramco
ARO Drilling is a 50/50 joint venture between Valaris and Saudi Aramco Overview: Financing: • ARO Drilling (“ARO”) is a 50/50 joint venture between • Saudi Aramco and Valaris do not anticipate contributing Valaris and Saudi Aramco that owns and operates jackup additional capital into ARO for the new
Slide 4: Value Drivers: Owned Rigs, Leased Rigs, Newbuild Rigs
Value Drivers 1 Owned Rigs 2 Leased Rigs 3 Newbuild Rigs 4
Slide 5: Owned Rigs: Overview of Contributions and Cash Flows
1 Owned Rigs: Overview of Contributions and Cash Flows • $25M cash • $25M cash • ARO 2001 (Gilbert Rowe) • ARO 2003 (SAR 201) • ARO 3001 (Bob Keller) • ARO 4001 (SAR 202) • ARO 3002 (J.P. Bussell) 50% of 50% of • Spare inventory/ assets • ARO 3003 (Scooter Yeargain) excess excess • Matching cash • A
Slide 6: Owned Rigs: Income and Cash Flow Impacts
1 Owned Rigs: Income and Cash Flow Impacts • Revenue • Opex • Interest Income (from shareholder loan) • Interest Expense (from shareholder loans) • Equity Income • Capex • Valaris receives interest income on its shareholder loan • Owned rig results are recorded directly on ARO’s income balance outst
Slide 7: Leased Rigs: Overview and Financial Impact
2 Leased Rigs: Overview and Financial Impact Undisclosed % of • Revenue (Bareboat Charter Rate) EBITDA • Revenue • Special Surveys (Opex) • Opex & Overhead Allocation • EBITDA • Special Surveys (Capex) • Maintenance Capex • Valaris leases 10 rigs to ARO1 • Day rates for the leased rigs will be “cons
Slide 8: Newbuild Rigs: Overview and Financial Impact
3 Newbuild Rigs: Overview and Financial Impact Overview: Financial Impact: • ARO intends to build 20 jackups over the next decade • Day rates for the initial eight-year contracts will be determined using a pricing mechanism that targets a six-year payback for • The first two jackups were built at th
Slide 9: Summary: Valaris and ARO Financials
Summary: Valaris and ARO Financials • Leased Rigs – Bareboat Charter Fee • Owned Rigs REVENUE • Leased Rigs • Newbuild Rigs • Leased Rigs – Special Survey • Owned Rigs • Leased Rigs OPEX • Newbuild Rigs • G&A Expense OTHER INCOME / • Interest Income on Shareholder Loan • Interest Expense on Sharehol
Slide 10: Valaris
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