Valaris Ltd.
Valaris Ltd.
07/28/2022 | Press release | Distributed by Public on 07/28/2022 14:35
Valaris LimitedFleet Status ReportJuly 28, 2022 - Form 8-K
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Valaris Limited Fleet Status Report July 28, 2022 |
| New Contracts and Extensions, Rig Sales and Other Updates Since Last Fleet Status Report | |
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Floaters
•540-day contract with Equinor offshore Brazil for drillship VALARIS DS-17. The rig will be reactivated for this contract, which is expected to commence in mid-2023. The total contract value is approximately $327 million, including an upfront payment totaling approximately $86 million for mobilization costs, capital upgrades and a contribution towards reactivation costs. The remaining contract value relates to the operating day rate and additional services, including managed pressure drilling (MPD), remote operating vehicle (ROV), casing running, slop treatment and cuttings handling.
•Contract extension with TotalEnergies EP Brasil offshore Brazil for drillship VALARIS DS-15. The option is in direct continuation of the current firm program.
•Six-month option exercised by Shell Nigeria Exploration and Production Company (SNEPCo) offshore Nigeria for drillship VALARIS DS-10. The option will be in direct continuation of the existing firm program.
•Two-well contract extension with Woodside offshore Australia for semisubmersible VALARIS DPS-1. The two-well extension has an estimated duration of 38 days and will be in direct continuation of the existing firm program for Woodside's Enfield plug and abandonment campaign (18 wells in total).
•One-well contract extension with Woodside offshore Australia for semisubmersible VALARIS DPS-1. The one-well extension has an estimated duration of 60 days and will be executed within Woodside's Scarborough development campaign sequence.
Jackups
•Four-year contract with Brunei Shell Petroleum offshore Brunei for heavy duty modern jackup VALARIS 115. The contract is expected to commence in April 2023 and has a total contract value of approximately $159 million.
•Three-year bareboat charter agreement with ARO Drilling for standard duty modern jackup VALARIS 141. The agreement is expected to commence in August 2022.
•Four-well contract extension with BP offshore Indonesia for heavy duty modern jackup VALARIS 106. The four-well contract extension has an estimated duration of 360 days and will be in direct continuation of the existing firm program.
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Jackups (continued)
•One-well contract extension with Shell in the UK North Sea for heavy duty harsh environment jackup VALARIS 122. The one-well contract extension has an estimated duration of 150 days and will be in direct continuation of the existing firm program.
•Four-well contract with an undisclosed operator in the U.S. Gulf of Mexico for standard duty modern jackup VALARIS 144. The contracted work is expected to take place during the third quarter 2022 with an estimated duration of 60 days and an estimated contract value of approximately $5 million.
•One-well contract with Talos in the U.S. Gulf of Mexico for standard duty modern jackup VALARIS 144. The contract is expected to commence in the fourth quarter 2022 with a minimum duration of 30 days. The operating rate is $85,000 per day.
•90-day contract with Cantium in the U.S. Gulf of Mexico for standard duty modern jackup VALARIS 144. The contract is expected to commence in the fourth quarter 2022. The operating rate is $80,000 per day.
•One-well option exercised by an undisclosed operator offshore Australia for heavy duty modern jackup VALARIS 107. The one-well option has an estimated duration of 31 days and will be in direct continuation of the existing firm program. The operating rate is $112,000 per day.
•One-well contract with GB Energy offshore Australia for heavy duty modern jackup VALARIS 107. The contract is expected to commence either late in the fourth quarter 2022 or early in the first quarter 2023 with an estimated duration of 20 days. The operating rate is $118,000 per day.
Contract Termination
•The previously disclosed contract awarded to VALARIS DS-11 was terminated with effect at the end of June. Our total contract backlog as of May 2, 2022, included approximately $428 million related to this contract.
Rig Sales
•VALARIS 36 was sold to another drilling contractor with restricted use provisions for $9 million.
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New Disclosure: bolded text signifies items that have not been previously disclosed
Page 1 of 12
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Valaris Limited Fleet Status Report July 28, 2022 |
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Contract Backlog(1) (2)
($ millions)
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2022 | 2023 | 2024+ | Total |
Contracted Days(1) (2)
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2022 | 2023 | 2024+ | |||||||
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Drillships(3)
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$ | 228.1 | $ | 472.7 | $ | 389.5 | $ | 1,090.3 |
Drillships(3)
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1,076 | 1,935 | 1,288 | |||
| Semisubmersibles | 90.2 | 159.2 | 110.2 | 359.6 | Semisubmersibles | 447 | 730 | 485 | |||||||
| Floaters | $ | 318.3 | $ | 631.9 | $ | 499.7 | $ | 1,449.9 | Floaters | 1,523 | 2,665 | 1,773 | |||
| HD - Ultra-Harsh & Harsh | $ | 129.4 | $ | 62.6 | $ | - | $ | 192.0 | HD - Ultra-Harsh & Harsh | 1,161 | 628 | - | |||
| HD & SD - Modern | 94.3 | 134.2 | 149.1 | 377.6 | HD & SD - Modern | 1,156 | 1,616 | 1,488 | |||||||
| SD - Legacy | 20.8 | 44.6 | 6.9 | 72.3 | SD - Legacy | 300 | 626 | 106 | |||||||
| Jackups | $ | 244.5 | $ | 241.4 | $ | 156.0 | $ | 641.9 | Jackups | 2,617 | 2,870 | 1,594 | |||
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Other(4)
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$ | 58.3 | $ | 132.7 | $ | 66.5 | $ | 257.5 |
Other(4)
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1,387 | 2,920 | 2,517 | |||
| Total | $ | 621.1 | $ | 1,006.0 | $ | 722.2 | $ | 2,349.3 | Total | 5,527 | 8,455 | 5,884 | |||
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ARO Drilling(5)
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Average Day Rates(1) (2)
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2022 | 2023 | 2024+ | |||||||||||
| Owned Rigs | $ | 105.4 | $ | 246.6 | $ | 582.9 | $ | 934.9 |
Drillships(3)
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$ | 212,000 | $ | 244,000 | $ | 302,000 |
| Leased Rigs | 97.3 | 202.9 | 224.1 | 524.3 | Semisubmersibles | 202,000 | 218,000 | 227,000 | |||||||
| Total | $ | 202.7 | $ | 449.5 | $ | 807.0 | $ | 1,459.2 | Floaters | $ | 209,000 | $ | 237,000 | $ | 282,000 |
| Valaris 50% Share of ARO Owned Rigs | $ | 52.7 | $ | 123.3 | $ | 291.5 | $ | 467.5 | HD - Ultra-Harsh & Harsh | $ | 111,000 | $ | 100,000 | $ | - |
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Adjusted Total(6)
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$ | 673.8 | $ | 1,129.3 | $ | 1,013.7 | $ | 2,816.8 | HD & SD - Modern | 82,000 | 83,000 | 100,000 | |||
| SD - Legacy | 69,000 | 71,000 | 65,000 | ||||||||||||
| Jackups | $ | 93,000 | $ | 84,000 | $ | 98,000 | |||||||||
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(1) Contract backlog, contracted days and average day rates as of July 28, 2022.
(2) Contract backlog and average day rates exclude certain types of non-recurring revenues such as lump sum mobilization payments. Contract backlog and contracted days include backlog and days when a rig is under suspension. Average day rates are adjusted to exclude suspension backlog and days.
(3) The previously disclosed contract awarded to VALARIS DS-11 was terminated with effect at the end of June. Our total contract backlog as of May 2, 2022, included approximately $428 million related to this contract.
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(4) Other represents contract backlog and contracted days related to bareboat charter agreements and management services contracts. (5) ARO Drilling contract backlog as of July 28, 2022. (6) Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO owned rigs. HD = Heavy Duty; SD = Standard Duty |
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Page 2 of 12
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Valaris Limited Fleet Status Report July 28, 2022 |
| Asset Category / Rig | Design | Year Delivered |
Customer/ Status |
Location | Contract Start Date |
Contract End Date(1)
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Day Rate | Comments |
| Drillships | ||||||||
| VALARIS DS-18 | GustoMSC P10000 | 2015 |
Chevron Chevron |
U.S. GOM U.S. GOM |
Aug 20
Aug 22
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Jul 22 Jul 25 |
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| VALARIS DS-17 | GustoMSC P10000 | 2014 | Equinor | Brazil | Jun 23 | Dec 24 | Confidential | Rig being reactivated in Spain. Total contract value of $327 million, including an upfront payment of approx. $86 million for mobilization, capital upgrades and a contribution towards reactivation costs. Two options each with an estimated duration of 60 days |
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VALARIS DS-16 |
GustoMSC P10000 | 2014 | Occidental | U.S. GOM | May 22 | May 24 | One 1-year option | |
| VALARIS DS-15 | GustoMSC P10000 | 2014 |
TotalEnergies TotalEnergies |
Brazil Brazil |
Jun 21
Dec 22
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Dec 22
Mar 23
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Confidential
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Three options each with an estimated duration of 100 days |
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VALARIS DS-12 |
DSME 12000 | 2014 |
BP BP Undisclosed |
Angola Mauritania/Senegal Angola |
Sep 21 Apr 22 Jan 23 |
Confidential |
Total contract value of $26.2 million |
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VALARIS DS-10 |
Samsung GF12000 | 2017 |
Shell SNEPCo |
Namibia Nigeria |
Nov 21 Apr 22 |
Apr 22
Apr 23
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Confidential
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One 240-day option |
| VALARIS DS-9 | Samsung GF12000 | 2015 | ExxonMobil | Angola | Jul 22 | Jul 24 | Four 6-month options | |
| VALARIS DS-4 | Samsung 96K | 2010 | Petrobras | Brazil | Jul 22 | Dec 23 | One 6-month option | |
| Stacked | ||||||||
| VALARIS DS-11 | DSME 12000 | 2013 | Stacked | Spain | Previously disclosed contract terminated with effect at the end of June | |||
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VALARIS DS-8 |
Samsung GF12000 | 2015 | Stacked | Spain | ||||
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VALARIS DS-7 |
Samsung 96K | 2013 | Stacked | Spain | ||||
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Purchase Options(2)
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VALARIS DS-14 |
DSME 12000 | Under Construction | South Korea | Option to take delivery by year-end 2023. Purchase price of approx. $218 million assuming a Dec 31, 2023 delivery | ||||
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VALARIS DS-13
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DSME 12000 | Under Construction | South Korea | Option to take delivery by year-end 2023. Purchase price of approx. $119 million assuming a Dec 31, 2023 delivery |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 3 of 12
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Valaris Limited Fleet Status Report July 28, 2022 |
| Asset Category / Rig | Design | Year Delivered |
Customer/ Status |
Location | Contract Start Date |
Contract End Date(1)
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Day Rate | Comments |
| Semisubmersibles | ||||||||
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VALARIS DPS-5
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ENSCO 8500 Series, DP + Moored |
2012 |
Kosmos Apache Murphy Murphy |
U.S. GOM U.S. GOM U.S. GOM Mexico |
Mar 22
Aug 22
Sep 22
Oct 22
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Aug 22 Sep 22 Oct 22 Dec 22 |
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VALARIS DPS-1
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F&G ExD Millennium, DP | 2012 |
Woodside Woodside |
Apr 22
Mar 23
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Mar 23 Sep 24 |
Confidential Confidential |
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VALARIS MS-1
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F&G ExD Millennium, Moored | 2011 |
Western Gas Santos Undisclosed |
Jun 22
Oct 23
Aug 24
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Three options each with an estimated duration of 90 days In May 2022, the customer reached FID. The contract remains subject to final customer approval |
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| Stacked | ||||||||
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VALARIS DPS-6 |
ENSCO 8500 Series, DP | 2012 | Stacked | U.S. GOM | ||||
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VALARIS DPS-3 |
ENSCO 8500 Series, DP + Moored |
2010 | Stacked | U.S. GOM |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 4 of 12
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Valaris Limited Fleet Status Report July 28, 2022 |
| Asset Category / Rig | Design | Year Delivered |
Customer/ Status |
Location | Contract Start Date |
Contract End Date(1)
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Day Rate | Comments |
| Jackups | ||||||||
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Heavy Duty Ultra-Harsh Environment(3)
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| VALARIS Norway | KFELS N Class | 2011 |
Harbour Energy BP Centrica Storage |
UK UK UK |
Dec 21 May 22 Sep 22 |
Apr 22 Sep 22 Jan 23 |
Accommodation work |
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| VALARIS Stavanger | KFELS N Class | 2011 | Equinor | Norway | Oct 19 | Oct 22 | ||
| VALARIS Viking | KFELS N Class | 2010 |
Sval Energi Repsol |
Norway Norway |
Mar 22 Jun 22 |
May 22
Dec 22
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One option with an estimated duration of 60 days |
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| VALARIS 250 | LT Super Gorilla XL | 2003 | Saudi Aramco | Saudi Arabia | Jun 18 | Dec 24 |
Leased to ARO Drilling(4). Planned maintenance for approx. 15 days in 3Q22
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| VALARIS 249 | LT Super Gorilla | 2002 | OMV | New Zealand | Feb 22 | Mar 23 | Four options each with an estimated duration of 40 days | |
| VALARIS 248 | LT Super Gorilla | 2000 | Neptune | UK | Aug 20 | Sep 23 | ||
| VALARIS 247 | LT Super Gorilla | 1998 | DNO | UK | May 21 | Nov 22 | One option with an estimated duration of 60 days |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 5 of 12
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Valaris Limited Fleet Status Report July 28, 2022 |
| Asset Category / Rig | Design | Year Delivered |
Customer/ Status |
Location | Contract Start Date |
Contract End Date(1)
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Day Rate | Comments |
| Jackups | ||||||||
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Heavy Duty Harsh Environment(3)
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| VALARIS 123 | KFELS Super A | 2019 |
TAQA Capricorn |
Netherlands UK |
Jan 22
Jun 22
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Jun 22 Sep 22 |
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VALARIS 122
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KFELS Super A | 2014 |
Shell Shell |
UK UK |
Jan 20
Nov 22
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Nov 22 Apr 23 |
Confidential
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Four options each with an estimated duration of 100 days |
| VALARIS 121 | KFELS Super A | 2013 | Harbour Energy | UK | Jul 21 | Sep 22 | ||
| VALARIS 120 | KFELS Super A | 2013 | Harbour Energy | UK | Jul 17 | Jul 23 | ||
| Stacked | ||||||||
| VALARIS 102 | KFELS MOD V-A | 2002 | Stacked | U.S. GOM |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 6 of 12
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Valaris Limited Fleet Status Report July 28, 2022 |
| Asset Category / Rig | Design | Year Delivered |
Customer/ Status |
Location | Contract Start Date |
Contract End Date(1)
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Day Rate | Comments |
| Jackups | ||||||||
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Heavy Duty - Modern(3)
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| VALARIS 118 | LT 240-C | 2011 |
Fieldwood BP |
Mexico Trinidad |
Mar 20 Oct 22 |
Jun 22
Jun 23
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Three options each with an estimated duration of 60 days |
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| VALARIS 117 | LT 240-C | 2009 | Eni | Mexico | Dec 21 | Dec 23 | ||
| VALARIS 116 | LT 240-C | 2008 | Saudi Aramco | Saudi Arabia | Dec 18 | Dec 24 |
Leased to ARO Drilling(4)
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| VALARIS 115 | BM Pacific Class 400 | 2013 |
Mubadala Petroleum
Shell
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Thailand
Brunei
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Feb 22
Apr 23
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Oct 22 Apr 27 |
Confidential
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Total contract value of approx. $159 million
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| VALARIS 110 | KFELS MOD V-B | 2015 | North Oil Company | Qatar | Oct 21 | Oct 24 | Two 1-year options | |
| VALARIS 108 | KFELS MOD V-B | 2007 | Saudi Aramco | Saudi Arabia | Nov 18 | Nov 22 | ||
| VALARIS 107 | KFELS MOD V-B | 2006 |
Vermilion Oil & Gas
Undisclosed
Eni
GB Energy
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Australia
Australia
Australia
Australia
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May 22
Aug 22
Oct 22
Dec 22
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Aug 22 Oct 22 Dec 22 Jan 23 |
$112,000
$115,000
$118,000
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One option with an estimated duration of 20 days |
| VALARIS 106 | KFELS MOD V-B | 2005 |
BP BP |
Indonesia Indonesia |
Jan 18
Jan 23
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Jan 23
Jan 24
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Confidential
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Eight options each with an estimated duration of 90 days |
| Stacked | ||||||||
| VALARIS 111 | KFELS MOD V-B | 2003 | Stacked | Croatia | ||||
| VALARIS 109 | KFELS MOD V-Super B | 2008 | Stacked | Namibia | ||||
| VALARIS 104 | KFELS MOD V-B | 2002 | Stacked | UAE |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 7 of 12
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Valaris Limited Fleet Status Report July 28, 2022 |
| Asset Category / Rig | Design | Year Delivered |
Customer/ Status |
Location | Contract Start Date |
Contract End Date(1)
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Day Rate | Comments |
| Jackups | ||||||||
| Standard Duty - Modern | ||||||||
| VALARIS 148 | LT Super 116-E | 2013 | Saudi Aramco | Saudi Arabia | Nov 19 | Nov 22 |
Leased to ARO Drilling(4)
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| VALARIS 147 | LT Super 116-E | 2013 | Saudi Aramco | Saudi Arabia | Sep 19 | Aug 22 |
Leased to ARO Drilling(4)
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| VALARIS 146 | LT Super 116-E | 2011 | Saudi Aramco | Saudi Arabia | Sep 18 | Dec 24 |
Leased to ARO Drilling(4)
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| VALARIS 144 | LT Super 116-E | 2010 |
Undisclosed
Undisclosed
Undisclosed
Talos
Cantium
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U.S. GOM U.S. GOM U.S. GOM U.S. GOM U.S. GOM |
Feb 22
May 22
Aug 22
Oct 22
Dec 22
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Apr 22
Aug 22
Oct 22
Nov 22
Feb 23
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Confidential
$85,000
$80,000
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Total contract value of approx. $5 million
Two options each with an estimated duration of 90 days
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| VALARIS 143 | LT Super 116-E | 2010 | Saudi Aramco | Saudi Arabia | Oct 18 | Dec 24 |
Leased to ARO Drilling(4)
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| VALARIS 141 | LT Super 116-E | 2016 |
Saudi Aramco Saudi Aramco |
Saudi Arabia Saudi Arabia |
Aug 18
Aug 22
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May 22 Aug 25 |
Confidential
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Leased to ARO Drilling(4)
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| VALARIS 140 | LT Super 116-E | 2016 |
Saudi Aramco |
Saudi Arabia | Mar 22 | Mar 25 |
Leased to ARO Drilling(4)
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| VALARIS 76 | LT Super 116-C | 2000 |
Saudi Aramco |
Saudi Arabia |
Jan 15 |
Dec 22 |
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| Stacked | ||||||||
| VALARIS 145 | LT Super 116-E | 2010 |
Stacked |
U.S. GOM | ||||
| VALARIS 75 | LT Super 116-C | 1999 | Stacked | U.S. GOM |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 8 of 12
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Valaris Limited Fleet Status Report July 28, 2022 |
| Asset Category / Rig | Design | Year Delivered |
Customer/ Status |
Location | Contract Start Date |
Contract End Date(1)
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Day Rate | Comments |
| Jackups | ||||||||
| Standard Duty - Legacy | ||||||||
| VALARIS 92 | LT 116-C | 1982 | Harbour Energy | UK | Feb 17 | Aug 23 |
Planned maintenance for approx. 45 days in 3Q22
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| VALARIS 72 | Hitachi K1025N | 1981 |
Eni |
UK |
Jan 20 |
Apr 24 |
Planned maintenance for approx. 40 days in 4Q22
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| VALARIS 54 | F&G L-780 Mod II-C | 1982 | Saudi Aramco | Saudi Arabia | Sep 14 | Sep 22 | ||
| Sold / Held for Sale | ||||||||
| VALARIS 36 | LT 116-C | 1981 | Sold | Sold to another drilling contractor with restricted use provisions for $9 million |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
Page 9 of 12
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Valaris Limited Fleet Status Report July 28, 2022 |
| Asset Category / Rig | Design |
Customer/ Status |
Location | Contract Start Date |
Contract End Date(1)
|
Day Rate | Comments |
| Other | |||||||
| Drilling Management | |||||||
| Thunder Horse | Deepwater Semisubmersible | BP | U.S. GOM | Jan 17 | Jan 24 | ||
| Mad Dog | Deepwater Spar Drilling Rig | BP | U.S. GOM | Jan 17 | Jan 24 | ||
| ARO Drilling | |||||||
| Jackup Rigs Owned by ARO Drilling | |||||||
| ARO 2001 | LT 116-C | Saudi Aramco | Saudi Arabia | Oct 17 | Jan 26 | ||
| ARO 2003 | BM 200-H | Saudi Aramco | Saudi Arabia | Feb 18 | Feb 26 | ||
| ARO 3001 | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct 17 | Jan 26 |
Planned maintenance for approx. 50 days in 3Q22
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| ARO 3002 | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct 17 | Jan 26 |
Planned maintenance for approx. 30 days in 4Q22 and approx. 25 days in 1Q23
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| ARO 3003 | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct 18 | Dec 26 | ||
| ARO 3004 | LT Tarzan 225-C | Saudi Aramco | Saudi Arabia | Oct 18 | Dec 26 | ||
| ARO 4001 | KFELS Super B | Saudi Aramco | Saudi Arabia | Oct 17 | Jan 26 |
Planned maintenance for approx. 45 days in 1Q23
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| ARO 2005 | LT 116-C | Under Construction | Saudi Arabia | Delivery expected in 1H23 | |||
| ARO 2006 | LT 116-C | Under Construction | Saudi Arabia | Delivery expected in 1H23 |
Changes: bolded rig names and underlined text signify changes in rig status from previous report
(1) Contract duration does not include any unexercised optional extensions. Contract end dates can vary based on how long it takes to complete the wells subject to the contract.
(2) Valaris has the right, but not the obligation, to take delivery of either or both rigs on or before December 31, 2023. Not included in Valaris' fleet count.
(3) Heavy duty jackups are well-suited for operations in tropical revolving storm areas.
(4) Rigs leased to ARO Drilling via bareboat charter agreements to fulfill contracts between ARO Drilling and Saudi Aramco.
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Page 11 of 12
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Valaris Limited Fleet Status Report July 28, 2022 |
Additional Information Regarding this Fleet Status Report
Day Rate and Terms. The day rates reflected in this Fleet Status Report are stated in U.S. dollars and are the operating day rates charged to customers, which may include estimated contractual adjustments for changes in operating costs and/or reimbursable cost adjustments for ongoing expenses such as crew, catering, insurance and taxes. The day rates, however, do not include certain types of non-recurring revenues such as lump sum mobilization payments, revenues earned during mobilizations, revenues associated with contract preparation and other non-recurring reimbursable items such as mobilizations and capital enhancements, and the impact of the fair market value adjustments to previously acquired drilling contracts. Routine and non-routine downtime may reduce the actual revenues recognized during the contract term. Additionally, we sometimes negotiate special rates and/or day rate adjustments with customers that may reduce revenues recognized.
Total Contract Value. Total contract value is the estimated total compensation expected to be received for a contract, including the operating day rate over the estimated firm term of the contract and any non-recurring lump sum payments for items such as mobilization, reactivation and capital upgrades.
Forward-Looking Statements. Statements contained in this Fleet Status Report 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 future rig day rates, including adjustments with customers; future levels of offshore drilling activity; expected utilization, day rates, revenues, operating expenses, rig commitments and availability, cash flow, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the effect, impact, potential duration and other implications of the ongoing COVID-19 pandemic; impact of our emergence from bankruptcy; the offshore drilling market, including supply and demand, customer drilling programs, stacking and reactivation of rigs, effects of new and reactivated rigs on the market and effects of volatility in commodity prices; expected work commitments, awards and contracts; letters of intent; scheduled delivery dates for rigs; performance of our joint venture with Saudi Aramco; the timing of delivery, mobilization, contract commencement, availability, relocation or other movement of rigs; expected divestitures of assets; general market, business and industry conditions, trends and outlook; general political conditions, including political tensions, conflicts and war (such as the ongoing conflict in Ukraine); future operations; increasing regulatory complexity; and expense management. The forward-looking statements contained in this press release are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including the COVID-19 outbreak and global pandemic and the related public health measures implemented by governments worldwide, which may, among other things, impact our ability to staff rigs and rotate crews; cancellation, suspension, renegotiation or termination of drilling contracts and programs, including drilling contracts which grant the customer termination rights if final investment decision (FID) is not received with respect to projects for which the drilling rig is contracted; potential additional asset impairments; failure to satisfy our debt obligations; 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; the effects of our emergence from bankruptcy on the Company's business, relationships, comparability of our financial results and ability to access financing sources; actions by regulatory authorities, or other third parties; actions by our security holders; commodity price fluctuations and volatility, customer demand, new rig supply, downtime and other risks associated with offshore rig operations; severe weather or hurricanes; changes in worldwide rig supply and demand, competition and technology; consumer preferences for alternative fuels; increased scrutiny of our Environmental, Social and Governance ("ESG") practices and reporting responsibilities; changes in customer strategy; governmental action, civil unrest and political and economic uncertainties; 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; debt restrictions that may limit our liquidity and flexibility; and cybersecurity risks and threats. 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 SEC'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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