Here are a couple of analogies for Valaris (VAL):

• Valaris is like "United Rentals for super-heavy, offshore oil drilling equipment."
• Valaris is like "Maersk for offshore oil drilling rigs."

Valaris (VAL) major services include:

• Offshore Contract Drilling: Valaris provides specialized drilling services to oil and gas companies using its fleet of offshore rigs, including drillships, semisubmersible rigs, and jackup rigs, to explore and extract hydrocarbons.

Valaris Limited (VAL) provides offshore contract drilling services primarily to other companies in the oil and gas industry. Based on the provided information, its major customers fall into the following categories:

• International oil and gas companies
• Government-owned oil and gas companies
• Independent oil and gas companies

Anton Dibowitz, President and Chief Executive Officer

Anton Dibowitz assumed the role of President and Chief Executive Officer of Valaris in December 2021, after serving as interim President and Chief Executive Officer since September 2021. With over two decades of experience in the drilling industry, Mr. Dibowitz previously served as Chief Executive Officer of Seadrill Ltd. from July 2017 to October 2020. He also held roles as Executive Vice President of Seadrill Management and Chief Commercial Officer at Seadrill. Earlier in his career, he held various positions in tax, process reengineering, and marketing at Transocean Ltd. and Ernst & Young LLP.

Chris Weber, Senior Vice President and Chief Financial Officer

Chris Weber became Senior Vice President and Chief Financial Officer of Valaris in August 2022. He previously served as Chief Financial Officer for LUFKIN Industries, Abaco Drilling Technologies, Halliburton, and Parker Drilling Company. Mr. Weber also held senior finance roles at Valaris's predecessor companies, Ensco and Pride International.

Gilles Luca, Senior Vice President and Chief Operating Officer

Gilles Luca was appointed Senior Vice President and Chief Operating Officer in December 2019. Prior to this, he was Senior Vice President, Operations Support. He joined Ensco, a predecessor company, in 1997, and has held various leadership positions including Senior Vice President - Western Hemisphere, Vice President - Business Development and Strategic Planning, Vice President - Brazil Business Unit, and General Manager - Europe and Africa.

Matt Lyne, Senior Vice President and Chief Commercial Officer

Matt Lyne commenced his role as Senior Vice President and Chief Commercial Officer of Valaris in September 2022. Before joining Valaris, he was the Executive Vice President, Chief Commercial and Strategy Officer at Seadrill Limited, where he spent over 12 years in various senior marketing and commercial roles. He also held senior operational and functional roles with Transocean Ltd.

Davor Vukadin, Senior Vice President and General Counsel

Davor Vukadin was appointed Senior Vice President, General Counsel and Secretary in May 2022. He previously served as Associate General Counsel and Secretary for Valaris, having joined the company as Senior Counsel in 2014. Prior to Valaris, he practiced corporate and securities law at Norton Rose Fulbright for thirteen years.

Key Risks to Valaris (VAL)

1. Volatility of Oil and Natural Gas Market

   Valaris's financial performance is highly susceptible to the inherent volatility of oil and natural gas prices. Fluctuations in these commodity prices directly influence the capital expenditure and drilling activity levels of its oil and gas customers, which in turn impacts demand for offshore drilling services, day rates, and rig utilization. A sustained downturn in commodity prices can lead to reduced contracting activity and lower revenues for Valaris.

2. High Operational Costs and Capital Expenditure Requirements

   Operating a large fleet of offshore drilling rigs entails significant operational costs, including maintenance, reactivation of cold-stacked rigs, and shipyard projects. The company faces risks related to rig downtime or idle time, which can negatively affect revenue and margins. Additionally, the need for ongoing capital expenditures to maintain, upgrade, and reactivate its fleet, coupled with competitive bidding for contracts and inflationary pressures, can strain the company's financial resources.

3. Risks Associated with the Pending Business Combination with Transocean

   Valaris has entered into a Business Combination Agreement with Transocean Ltd., which introduces a distinct set of risks. These include potential delays or the failure to complete the transaction, which could adversely affect Valaris's market price and result in substantial termination fees. Furthermore, even if completed, there are risks associated with integrating the two companies, which could impact future contract visibility, fleet utilization, and overall operational stability.

The accelerating global energy transition towards renewable energy sources and away from fossil fuels, which is reducing long-term demand for offshore oil and gas exploration and production services.

Global Addressable Markets for Valaris's Main Products/Services

• Global Offshore Contract Drilling Services: The global offshore drilling market is projected to be worth approximately USD 47.73 billion in 2026.
• Global Drillships Market: The market size for drillships globally is estimated at USD 6.02 billion in 2026.
• Global Semisubmersible Rigs Market: The global semi-submersible drilling rig market was estimated at USD 13.36 billion in 2025.
• Global Jackup Rigs Market: The global jack-up rigs market size is projected to grow from USD 3.19 billion in 2025 to USD 4.71 billion by 2033.

Regional Addressable Markets for Offshore Contract Drilling Services

• North America (including the Gulf of Mexico): The North American offshore drilling market is projected to reach USD 3.1 billion in 2026.
• North Sea (Europe): The European offshore drilling market is projected to reach USD 9.87 billion in 2026.
• Middle East & West Africa: The offshore drilling market in the Middle East & Africa region is projected to reach USD 10.88 billion in 2026. For West Africa specifically, the offshore developments segment of the oil and gas upstream market is projected to be USD 10.62 billion in 2026.
• Australia: The Australia offshore drilling market is expected to reach a market size of more than USD 0.25 billion by 2029. The broader Australia Offshore Oilfield Services Market, which includes drilling services, is valued at USD 5 billion.
• Southeast Asia (part of Asia Pacific): The Asia Pacific offshore drilling market, which includes Southeast Asia, is expected to reach USD 19.67 billion in 2026. Within the Asia-Pacific jack-up rig market, which had a market size of USD 7.8 billion, Southeast Asia accounts for 52% of the regional activity.

Valaris Limited (VAL) is expected to experience revenue growth over the next two to three years driven by several key factors in the offshore drilling market:

1. Increased Day Rates and Improved Utilization: Valaris anticipates repricing rigs from older contracts to significantly higher market rates, leading to increased average daily revenues. Drillship day rates, for example, climbed 42% from Q3 2023 to Q2 2025, and jackup day rates rose 31% over the same period, with expectations for continued upward trends. The company also expects improved utilization across its floater and jackup fleets as market conditions strengthen and rigs commence new contracts.
2. Robust Contract Backlog and New Contract Awards: Valaris has consistently grown its contract backlog, securing substantial new contracts and extensions. As of Q1 2025, the company's contract backlog stood at over $4.2 billion, increasing to $4.7 billion by July 2025. This strong backlog provides high revenue visibility, with nearly 99% of its expected 2025 revenue already contracted.
3. Reactivation of Cold-Stacked Rigs and Fleet Optimization: Valaris is strategically reactivating cold-stacked rigs, such as the VALARIS DS-17 and DS-8, only when lucrative, long-term contracts are secured. This approach, coupled with the rationalization of older and less competitive assets, focuses the fleet on high-value segments to maximize returns and operational efficiency.
4. Growth of the ARO Drilling Joint Venture: ARO Drilling, Valaris's joint venture with Aramco, is a significant growth driver, with plans to rapidly expand its fleet. ARO's utilization improved to 86% in 2025, and its revenues increased by 11% due to new contracts and higher day rates. The strategic plan involves adding 20 rigs to ARO's fleet over the next decade, potentially increasing its size to over 30 rigs.
5. Strong Demand in High-Growth Offshore Markets: Valaris is targeting high-growth deepwater regions like South America (particularly Brazil), the U.S. Gulf of Mexico, and West Africa. These areas are projected to drive approximately 70% of benign environment floater demand through 2029. The company forecasts significant growth in offshore drilling activity, with benign environment floater demand expected to increase by approximately 13% in 2026-2028 compared to previous years.

Share Repurchases

• Valaris completed a share buyback program announced in September 2022, repurchasing 7,240,660 shares for a total of $428.39 million by December 31, 2025.
• During the fourth quarter of 2025, the company repurchased $25 million in shares, contributing to a total of $100 million in repurchases for the full year 2025.
• In 2024, Valaris repurchased $125.0 million of shares, which represented 2.2 million shares or approximately 3% of the total outstanding share count.

Capital Expenditures

• Valaris anticipates capital expenditures for fiscal year 2026 to range between $425 million and $475 million.
• For the full year 2025, projected capital expenditures were estimated to be between $350 million and $390 million, with $225 million allocated for maintenance, upgrades, and surveys.
• Capital expenditures in 2024 were approximately $455.1 million, and in 2023, they were approximately $696.1 million. The primary focus of these expenditures generally includes shipyard projects, maintenance, and fleet upgrades.