Here are 1-3 brief analogies for Valaris (VAL):

• Like a highly specialized United Rentals, focused exclusively on leasing massive offshore oil drilling rigs and their crews.
• Think Delta Airlines, but their 'fleet' consists of specialized offshore drilling rigs that extract oil and gas from the ocean floor.
• Imagine Maersk, but instead of shipping containers, their enormous vessels are mobile platforms that drill for oil and gas offshore.

• Drillship Services: Valaris provides and operates ultra-deepwater drillships, along with associated crew and equipment, for customers to explore, develop, and produce offshore oil and natural gas wells.
• Semi-submersible Services: Valaris offers and operates deepwater semi-submersible rigs, including personnel and drilling equipment, for clients to drill oil and gas wells in deep offshore environments.
• Jackup Rig Services: Valaris supplies and operates jackup rigs, complete with crews and necessary equipment, for offshore oil and gas drilling operations in shallow to mid-water environments.

Valaris (VAL) sells primarily to other companies.

Its major customers for the year ended December 31, 2023, which individually accounted for 10% or more of its total revenues, were:

• Saudi Arabian Oil Co. (Saudi Aramco) - Symbol: 2222.SR
• BP p.l.c. - Symbol: BP

Valaris's customer base generally consists of large, multinational oil and gas companies and national oil companies.

Anton Dibowitz, President and Chief Executive Officer

Anton Dibowitz became President and Chief Executive Officer of Valaris in December 2021, after serving as interim President and CEO since September 2021. Prior to Valaris, he was an advisor for Seadrill Ltd. from November 2020 to March 2021, and served as its Chief Executive Officer from July 2017 to October 2020. He also held roles as Executive Vice President of Seadrill Management and Chief Commercial Officer at Seadrill. Before joining Seadrill, Mr. Dibowitz held various positions in tax, process reengineering, and marketing at Transocean Ltd. and Ernst & Young LLP. He is a Certified Public Accountant.

Chris Weber, Senior Vice President and Chief Financial Officer

Chris Weber became the Senior Vice President and Chief Financial Officer of Valaris in August 2022. Previously, he served as Chief Financial Officer of LUFKIN Industries, Abaco Drilling Technologies, Halliburton, and Parker Drilling Company. LUFKIN Industries was acquired by Aspen Private Equity in 2018. He 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 became Senior Vice President and Chief Operating Officer of Valaris in December 2019. His prior roles at Ensco (a Valaris predecessor) include Senior Vice President - Operations Support, Senior Vice President - Western Hemisphere, Vice President - Business Development and Strategic Planning, Vice President - Brazil Business Unit, and General Manager - Europe and Africa. He also worked for Foramer Drilling and Schlumberger.

Matt Lyne, Senior Vice President and Chief Commercial Officer

Matt Lyne was appointed Senior Vice President and Chief Commercial Officer of Valaris in September 2022. He previously served as Executive Vice President, Chief Commercial and Strategy Officer of Seadrill Limited, where he spent over 12 years in various senior marketing and commercial roles. Before Seadrill, he held several senior operational and functional roles with Transocean Ltd. Mr. Lyne has more than 20 years of offshore drilling experience.

Davor Vukadin, Senior Vice President and General Counsel

Davor Vukadin was appointed Senior Vice President, General Counsel and Secretary in May 2022. Before this, he served as Associate General Counsel and Secretary, and Associate General Counsel and Assistant Secretary for Valaris. He joined Valaris as Senior Counsel in 2014. Prior to joining Valaris, Mr. Vukadin practiced corporate and securities law for thirteen years with the law firm of Norton Rose Fulbright.

The key risks to Valaris's business operations include:

1. Market Volatility and Economic Conditions: Valaris operates in an industry highly susceptible to economic downturns and fluctuations in financial markets, which can lead to slowdowns in contracting activity, deferral of customer demand, and downward pressure on day rates, directly impacting revenue streams. Near-term financial projections indicate a drop in expected total revenues and Adjusted EBITDA, primarily due to fewer operating days as existing contracts conclude without immediate follow-on work. The company's liquidity is significantly tied to the cyclical nature of the offshore drilling market and its ability to secure long-term contracts. Furthermore, the offshore drilling sector anticipates a potential decrease in rig demand and utilization in the near future.
2. Regulatory and Environmental Risks: Valaris is exposed to risks stemming from governmental regulatory changes, environmental liabilities, and the broader global energy transition. Adhering to new environmental regulations and adapting to the evolving energy landscape may necessitate substantial investments and operational adjustments, potentially affecting the company's profitability. Regulations that limit or restrict exploration and development drilling for oil and natural gas can directly impact Valaris's operations. Public opposition due to environmental concerns also poses a challenge to new offshore lease sales.
3. Operational and Contractual Risks: The nature of offshore drilling involves inherent operational risks such as delays in contract commencement, or the cancellation, suspension, renegotiation, or termination of drilling contracts and programs. These issues can arise from various factors, including general economic conditions, mechanical failures, performance problems, delays in the delivery of critical drilling equipment, or a customer's inability to secure final investment decisions for projects. Additionally, severe weather events like storms and hurricanes, as well as limited availability of resources, can lead to drilling limitations and operational delays.

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

1. Increasing Demand for Offshore Drilling, Particularly in Deepwater: Valaris projects significant growth in global offshore drilling demand, especially within the deepwater segment, through 2026-2028. This surge is fueled by increased exploration and production activities as offshore production continues to be vital for meeting global energy needs. Valaris is strategically positioned in high-demand deepwater regions such as the U.S. Gulf of Mexico, Brazil, and West Africa, often referred to as the "Golden Triangle."
2. Securing New Long-Term Contracts and Growing Backlog: The company has demonstrated a strong ability to secure new, attractive, and often long-term contracts and contract extensions for its high-specification fleet. As of July 24, 2025, Valaris reported a contract backlog of approximately $4.7 billion, marking its highest in a decade, which provides significant revenue visibility for future years. Recent contract additions, including multi-year deals for drillships in the U.S. Gulf of Mexico and offshore West Africa, contribute substantially to this growing backlog.
3. Rising Day Rates and High Utilization of High-Specification Rigs: Increased demand for high-specification drilling assets, coupled with a structural undersupply of offshore rigs, is leading to rising average daily revenue rates. Valaris has observed increasing average daily revenue rates for both its drillship and jackup fleets since the third quarter of 2023. The company expects drillship utilization rates to exceed 90% by the end of 2026, indicating strong operational demand for its modern fleet.
4. Expansion of ARO Drilling Joint Venture: Valaris's 50/50 joint venture with Saudi Aramco, ARO Drilling, is a significant future revenue driver. ARO Drilling has plans to substantially expand its rig fleet, aiming to add 20 rigs over the next decade and potentially growing to over 30 rigs by 2035. This expansion is expected to contribute considerable EBITDA growth to Valaris.
5. Strategic Fleet Management and Reactivations: Valaris is actively managing its fleet to optimize value, which includes reactivating cold-stacked rigs to capitalize on the improving market conditions and rising demand for offshore drilling services. This strategic approach, alongside the disciplined divestiture of older assets, ensures that Valaris maintains a high-quality, competitive fleet capable of securing lucrative contracts.