Valaris : Investor Presentation

Investor Presentation

M A Y Y 2 0 2 4

FOCUSED

VALUE DRIVEN

RESPONSIBLE

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 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 and the attainment of requisite permits for such 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; scheduled delivery dates for rigs; performance of our joint ventures, including our joint venture with Saudi Aramco; timing of the delivery of the Saudi Aramco Rowan Offshore Drilling Company ("ARO") newbuild rigs and the timing of additional ARO newbuild orders; 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; cybersecurity attacks and threats; impacts and effects of public health crises, pandemics and epidemics; ability to renew expiring contracts or obtain new contracts, including for VALARIS DS-13 and DS-14; future operations; increasing regulatory complexity; targets, progress, plans and goals related to sustainability matters; the outcome of tax disputes; assessments and settlements; and expense management. The forward-looking statements contained in this investor presentation 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; future share repurchases; 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 and forecasts or expectations regarding the global energy transition; increased scrutiny of our sustainability targets, initiatives and reporting and our ability to achieve such targets or initiatives; changes in customer strategy; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties, including recessions, volatility affecting the banking system and financial markets, inflation and adverse changes in the level of international trade activity; terrorism, piracy and military action; risks inherent to shipyard rig reactivation, upgrade, repair, maintenance or enhancement; our ability to enter into, and the terms of, future drilling contracts; suitability of rigs for future contracts; the cancellation of letters of intent or letters of award or any failure to execute definitive contracts following announcements of letters of intent, letters of award or other expected work commitments; 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; compliance with our debt agreements and debt restrictions that may limit our liquidity and flexibility; cybersecurity risks and threats; 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 Securities and Exchange Commission'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.

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Valaris is well positioned to deliver meaningful value to shareholders

Leading

Offshore

Driller

Largest and highest specification fleet in the industry

Presence and scale in key offshore basins, with deep customer relationships

Strong balance sheet provides capital allocation flexibility

Strong

Industry

Fundamentals

Commodity supply and demand is highly constructive for our industry

v

Offshore capex and demand for offshore drilling are expected to continue to increase

Constrained rig supply dynamics are supportive of a sustained industry upcycle

Valaris Earnings

• Cash Flow Growth

Significant growth in earnings and cash flow expected over the next few years

Attractive investments in our fleet in near- term expected to generate meaningful returns

Intend to return all future free cash flow to shareholders, unless there is a better or more value accretive use for it

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Leading

Offshore

Driller

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Largest fleet of modern offshore drilling rigs in the industry

13 DRILLSHIPS

Average age 8 years

5 SEMISUBMERSIBLES

Average age 12 years

12 HD HARSH JACKUPS1

Average age 15 years

21 HD & SD MODERN JACKUPS1

Average age 14 years

2 SD LEGACY JACKUPS1

Average age 42 years

1 HD = Heavy Duty; SD = Standard Duty. Heavy duty jackups are well-suited for operations in tropical revolving storm areas

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Largest fleet of high-specification assets

Fleet Quality of Major International Offshore Drillers				Q1		Q2			Q3		Q4
Valaris2			30			16		6	1	53
Transocean		12	13	6	6	37
Shelf	7	6	11	12		36

Floaters

Transocean

Noble

Valaris

Seadrill3

		Q1			Q2		Q3		Q4
							Avg. Age1
			37		11
19						11
18						9
14						12

Diamond

12

27

Noble	16		13	2 1 32
Borr	20		4	24
Seadrill3	9	8	2 19

Jackups

Shelf

Valaris2

v

Avg. Age1

3630

3516

Diamond	4	5	3	12

Borr		24	7
Noble	13		12
Seadrill3
5		12

Source: S&P Global Petrodata as of April 2024; Rystad Energy. Rigs ranked into quartiles using Rystad Rig Score (Q1 = top quartile). Floaters and jackups ranked separately.	6
1 Average age includes delivered rigs only; 2 Includes ten jackup rigs leased to ARO Drilling (current and future lease contracts); 3 Includes rigs owned by Seadrill Ltd

Strong customer relationships with major IOCs, NOCs and independents

Majors1

Floaters	Jackups	Locations
✓	✓	Brazil, Mediterranean,
		Southeast Asia, Trinidad
✓		U.S. GOM
✓	✓	Australia, Mexico,
		North Sea
✓	✓	Australia, West Africa
✓	✓	North Sea, Southeast
		Asia, West Africa
✓	✓	Brazil, North Sea

National Oil Companies and Other Select Customers1

Floaters	Jackups	Locations
	✓	Middle East
✓		Brazil
	✓	North Sea
✓		U.S. GOM
✓		Brazil
✓		Australia

1 All customers listed are within the top 15 customers within contract backlog as of April 30, 2024. Locations represent where rigs are currently contracted for each customer.	7

Focused on key basins expected to drive a large share of future demand

9	North Sea
	& Norway

7%

• share of expected benign environment floater demand over next five years1
• share of expected jackup demand over next five years1

Active Drillships

Active Semisubmersibles

Active Jackups

	U.S. GOM
2	& Mexico
1		23%
2	11%	1%	2

Trinidad

Brazil

29%

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	1	8% Mediterranean
		48%	Middle East
West Africa
4%	18%			Southeast Asia
		11	2	10%	5%
3
			2	4%
			2	1%	Australia & NZ

1 Demand by country/region represents rig years as a % of total rig years for floaters and jackups, excluding China, Russia and Iran, per Rystad RigCube as of April 2024.	8
Note: Rigs that are currently stacked with a future contract are shown in the location of the future contract. Includes nine jackup rigs owned by Valaris that are leased to ARO Drilling in Saudi Arabia (current and

future lease contracts). Excludes nine jackup rigs owned by ARO Drilling (current and future contracts) and two rigs that Valaris manages on behalf of a customer.

ARO Drilling joint venture provides strong presence in the largest jackup market in the world

ARO is an unconsolidated 50/50 JV with Saudi Aramco that owns and operates jackups in Saudi Arabia, providing a strategic partnership with the largest customer for jackups in the world

Income

Statement

Highlights

2023

$497M

Revenue

$109M

EBITDA

50% Equity Ownership

• ARO currently has 18 rigs contracted with Saudi Aramco, with contract backlog of ~$2.0 billion as of April 30, 20241
• 20-rignewbuild program backed by long- term contracts with Saudi Aramco
• Newbuilds expected to be financed by third- party financing and ARO operating cash flow (financing secured for first two rigs - Kingdom 1 & 2)

$403M Shareholder Notes

• Valaris has shareholder notes receivable from ARO with a principal balance of $403M as of March 31, 2024

Leased Rigs

• 9 rigs owned by Valaris leased to ARO under bareboat charter agreements2
• Provide high levels of utilization and stable cash flows

Balance

Sheet

Highlights

Q1 2024

$70M

Cash

$822M

Shareholder

Notes

$177M

Third-Party Debt3

1	Includes VALARIS 76 and Kingdom 2, which are expected to commence contracts with Saudi Aramco in 2024. Excludes VALARIS 143, which is expected to have its contract terminated in May 2024.	9
2	Includes VALARIS 76, which is expected to commence a lease contract with ARO in 2024. Excludes VALARIS 143, which is expected to have its contract terminated in May 2024.
3	Includes financing for Kingdom 1. Financing for Kingdom 2 secured but not yet drawn

Reduce emissions from our own operations and partner with customers

Reduce Emissions from our own Operations

Four focus areas identified to achieve this target:

1. Energy Efficient Practices
2. Energy-SavingUpgrades and Procedures
3. Biofuel Blends
4. Jackup Rig Electrification

Target to reduce emissions intensity by

10% to 20%

by 2030 compared to a 2019 baseline

Partner with Customers on their Energy Transition Efforts

Carbon capture and storage (CCS)

• VALARIS 247 contracted to perform CCS project offshore Australia
• VALARIS Norway worked on the Northern Endurance Partnership CCS project in the UK North Sea
• VALARIS 123 worked on the Porthos CO2 project in preparation for CO2 transport and storage offshore the Netherlands
• VALARIS 72 and 92 have performed plug and abandonment work on multiple reservoirs in the UK North Sea potentially suitable for CCS

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