Business Wire | Nov 2, 2021 12:50AM EDT

Valaris Reports Third Quarter 2021 Results

Nov. 02, 2021

HAMILTON, Bermuda--(BUSINESS WIRE)--Nov. 02, 2021--Valaris Limited (NYSE: VAL) ("Valaris" or the "Company") today reported third quarter 2021 results.

Interim President and Chief Executive Officer Anton Dibowitz said, "Valaris' best in class team continues to deliver at a high level for our customers, as demonstrated by achieving 99% revenue efficiency during the third quarter and year to date. This performance, combined with a high quality fleet and deep customer relationships, has enabled us to continue translating our operational leverage into meaningful backlog additions. We have added approximately $330 million of backlog in the past three months and more than $2.1 billion year to date, including recent contract wins for VALARIS DS-4 offshore Brazil as well as DS-9 and DS-10 offshore West Africa, enhancing our presence in these important deepwater markets. Over the past several months, we have secured term backlog on four preservation stacked drillships, highlighting our customers' confidence in our operational capabilities."

Dibowitz added, "As a part of the value chain that delivers affordable energy, we recognize the importance of delivering that energy responsibly. In our business, emissions from our drilling rigs currently represent the largest contributor of atmospheric CO2 and are therefore the target of our near-term sustainability effort. While we are early on that journey, we have made great strides. For example, jackup VALARIS 123 is being upgraded with a selective catalytic reduction system that, when in operation, is designed to eliminate almost all NOX and SOX emissions from the rig, and drillship VALARIS DS-12 recently became the first vessel in the world to receive the ABS Enhanced Electrical System Notation EHS-E. This system is designed to optimize powerplant performance, enabling operations on fewer generators and thereby reducing emissions."

Dibowitz concluded, "The market environment for offshore drilling has improved meaningfully in 2021, helped by a strong rebound in demand for hydrocarbons and constructive commodity prices. We have taken advantage of improving market conditions by winning an outsized share of contracts and rig years awarded, providing a platform for increased earnings in 2022 and beyond. Valaris is well-positioned to benefit from the opportunities we see in the market today, and we will continue to take a disciplined approach to capital allocation, with a focus on maximizing earnings and driving free cash flow as the market continues to recover."

Fresh Start Accounting

Valaris emerged from Chapter 11 bankruptcy protection on April 30, 2021 (the "Effective Date"). Upon emergence, Valaris applied fresh start accounting which resulted in Valaris becoming a new reporting entity for accounting and financial reporting. Accordingly, our financial statements and notes after the Effective Date are not comparable to our financial statements and notes prior to that date. As required by GAAP, results for the second quarter must be presented separately for the predecessor period from April 1, 2021, through April 30, 2021 (the "Predecessor" period) and the successor period from May 1, 2021, through June 30, 2021 (the "Successor" period). However, the Company has combined certain results of the Predecessor and Successor periods ("Combined" results) as non-GAAP measures to compare the third quarter and combined second quarter since we believe it provides the most meaningful basis to analyze our results. The Predecessor and Successor results for the second quarter are more fully discussed in our quarterly report on Form 10-Q for the period ended June 30, 2021 filed with the SEC on August 3, 2021.

Third Quarter Highlights

Revenues increased to $327 million in the third quarter 2021 from $293 million in the Combined second quarter. Excluding reimbursable items, revenues increased to $293 million in the third quarter from $261 in the Combined second quarter primarily due to higher utilization for the floater fleet as VALARIS DS-12 started a new contract early in the third quarter, and VALARIS DS-15 and MS-1 had a full quarter of revenues after commencing contracts in the latter part of the second quarter.

Contract drilling expense increased to $274 million in the third quarter 2021 from $254 million in the Combined second quarter 2021. Excluding reimbursable items, contract drilling expense increased to $255 million in the third quarter from $236 million in the Combined second quarter primarily due to more operating days for the floater fleet. This was partially offset by rig reactivation costs, which declined to $19 million in the third quarter from $24 million in the Combined second quarter.

Depreciation expense declined to $24 million in the third quarter 2021 from $54 million in the Combined second quarter due to a full quarter impact of fresh start accounting adjustments, which significantly reduced the carrying value of property and equipment on the balance sheet. General and administrative expense increased to $27 million in the third quarter 2021 from $19 million in the Combined second quarter primarily due to severance costs related to the departure of three senior executives during the third quarter.

Tax expense was $53 million in the third quarter 2021 compared to a tax benefit of less than $1 million in the Combined second quarter 2021. The third quarter tax provision included $39 million of discrete tax expense primarily related to changes in liabilities for unrecognized tax benefits associated with tax positions taken in prior years. The Combined second quarter tax provision included $12 million of discrete tax benefit primarily related to fresh start accounting adjustments. Adjusted for discrete items, tax expense of $14 million in the third quarter compared to tax expense of $12 million in the Combined second quarter.

Adjusted EBITDA of $30 million in the third quarter 2021 compared to $17 million in the Combined second quarter. Adjusted EBITDAR of $50 million in the third quarter 2021 compared to $41 million in the Combined second quarter.

Segment Highlights

Floaters

Floater revenues increased to $104 million in the third quarter 2021 from $68 million in the Combined second quarter. Excluding reimbursable items, revenues increased to $94 million in the third quarter from $62 million in the Combined second quarter primarily due to higher utilization as VALARIS DS-12 started a new contract early in the third quarter, and VALARIS DS-15 and MS-1 had a full quarter of revenues after commencing contracts in the latter part of the second quarter.

Contract drilling expense increased to $91 million in the third quarter 2021 from $67 million in the Combined second quarter 2021. Excluding reimbursable items, contract drilling expense increased to $83 million in the third quarter from $63 million in the Combined second quarter primarily due to more operating days in the third quarter.

Jackups

Jackup revenues of $186 million in the third quarter 2021 were marginally lower than revenues of $188 million in the Combined second quarter. Excluding reimbursable items, revenues of $168 million in the third quarter were marginally higher than revenues of $167 million in the Combined second quarter.

Contract drilling expense declined to $141 million in the third quarter 2021 from $144 million in the Combined second quarter. Excluding reimbursable items, contract drilling expense of $134 million in the third quarter was consistent with the Combined second quarter.

ARO Drilling

Revenues declined to $118 million in the third quarter 2021 from $125 million in the Combined second quarter 2021 primarily due to out of service days for a special periodic survey for one of ARO's owned rigs and VALARIS 22 completing its lease contract with ARO during the third quarter. Contract drilling expense of $94 million in the third quarter was marginally higher than $93 million in the Combined second quarter. EBITDA was $18 million in the third quarter compared to $28 million in the Combined second quarter.

Other

Revenues of $36 million in the third quarter 2021 were marginally lower than $37 million in the Combined second quarter and contract drilling expense of $14 million in the third quarter was in line with the Combined second quarter. EBITDA was $22 million in the third quarter compared to $23 million in the Combined second quarter.

Third Quarter

Floaters Jackups ARO Other Reconciling Items Consolidated Total

(in millions of $, Q3 Combined Q3 Combined Q3 Combined Q3 Combined Q3 Combined Q3 Combinedexcept %) 2021 Q2 2021 Chg 2021 Q2 2021 Chg 2021 Q2 2021 Chg 2021 Q2 2021 Chg 2021 Q2 2021 2021 Chg Q2 2021



Revenues 104.3 68.1 53 % 186.3 188.3 (1 ) 117.7 124.8 (6 ) 36.1 36.7 (2 ) (117.7 ) (124.8 ) 326.7 293.1 11 % % % %

Operating expenses

Contract drilling 90.9 66.9 36 % 140.9 144.3 (2 ) 94.4 92.7 2 % 14.1 13.9 1 % (66.0 ) (63.5 ) 274.3 254.3 8 % %

Depreciation 11.4 23.8 (52 ) 12.1 25.1 (52 ) 16.8 14.6 15 % 0.9 4.3 (79 ) (16.8 ) (13.7 ) 24.4 54.1 (55 ) % % % %

General and admin. - - - % - - - % 5.4 4.3 26 % - - - % 21.8 14.8 27.2 19.1 42 %

Equity in earnings of - - - % - - - % - - - % - - - % 2.6 6.0 2.6 6.0 (57 )ARO %

Operating income 2.0 (22.6 ) 109 % 33.3 18.9 76 % 1.1 13.2 (92 ) 21.1 18.5 14 % (54.1 ) (56.4 ) 3.4 (28.4 ) 112 %(loss) %

As previously announced, Valaris will hold its third quarter 2021 earnings conference call at 9:00 a.m. CDT (10:00 a.m. EDT and 2:00 p.m. London) on Tuesday, November 2, 2021. An updated investor presentation will be available on the Valaris website after the call.

About Valaris Limited

Valaris Limited (NYSE: VAL) is the industry leader in offshore drilling services across all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles, and modern shallow-water jackups, Valaris has experience operating in nearly every major offshore basin. Valaris maintains an unwavering commitment to safety, operational excellence, and customer satisfaction, with a focus on technology and innovation. Valaris Limited is a Bermuda exempted company. To learn more, visit the Valaris website at www.valaris.com.

Forward-Looking Statements

Statements contained in this press release 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," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements involving expected financial performance; expected utilization, rig commitments and availability, day rates, revenues, operating expenses including expenses related to reorganization items, cash flow, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the offshore drilling market, including supply and demand, customer drilling programs, stacking of rigs, effects of new rigs on the market and effects of declines in commodity prices; synergies and expected additional cost savings; effective tax rates; expected work commitments, letters of intent; scheduled delivery dates for rigs; performance of our joint venture with Saudi Aramco; the timing of delivery, mobilization, contract commencement, relocation or other movement of rigs; our intent to sell or scrap rigs; and general market, business and industry conditions, trends and outlook. 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 effects of the chapter 11 cases on the Company's business, relationships, comparability of our financial results and ability to access financing sources, the COVID-19 outbreak and global pandemic, 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; our failure to satisfy our debt obligations; our ability to obtain financing, service our debt, fund negative cash flow and capital expenditures and pursue other business opportunities; adequacy of sources of liquidity for us and our customers; actions by regulatory authorities, rating agencies or other third parties; actions by our security holders; availability and terms of any financing; commodity price fluctuations, 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; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties; terrorism, piracy and military action; risks inherent to shipyard rig construction, repair, maintenance or enhancement; our ability to enter into, and the terms of, future drilling 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 particular, the unprecedented nature of the current economic downturn, pandemic, and industry decline may make it particularly difficult to identify risks or predict the degree to which identified risks will impact the Company's business and financial condition. 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, as updated in our subsequent quarterly reports on Form 10-Q, which are 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.

VALARIS LIMITED AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per share amounts; unaudited)

Successor Predecessor Combined (Non-GAAP)

Three Two Months Months One Month Three Months Ended Ended Ended Ended September June 30, April 30, June 30, 30, 2021 2021 2021 2021

OPERATING REVENUES $ 326.7 $ 202.8 $ 90.3 $ 293.1



OPERATING EXPENSES

Contract drilling(exclusive of 274.3 168.7 85.6 254.3 depreciation)

Depreciation 24.4 16.6 37.5 54.1

General and 27.2 12.7 6.4 19.1 administrative

Total operating expenses 325.9 198.0 129.5 327.5

EQUITY IN EARNINGS OF ARO 2.6 4.8 1.2 6.0

OPERATING INCOME (LOSS) 3.4 9.6 (38.0 ) (28.4 )



OTHER INCOME (EXPENSE)

Interest income 9.7 7.8 1.0 8.8

Interest expense, net(Unrecognized contractualinterest expense for debtsubject to compromise was (11.3 ) (8.0 ) (1.1 ) (9.1 )$32.6 million for the onemonth ended April 30,2021)

Reorganization items, net (6.5 ) (4.1 ) (3,532.4 ) (3,536.5 )

Other, net 5.2 5.7 (1.2 ) 4.5

(2.9 ) 1.4 (3,533.7 ) (3,532.3 )



INCOME (LOSS) BEFORE 0.5 11.0 (3,571.7 ) (3,560.7 )INCOME TAXES



PROVISION (BENEFIT) FOR 53.3 15.1 (15.5 ) (0.4 )INCOME TAXES

NET LOSS (52.8 ) (4.1 ) (3,556.2 ) (3,560.3 )



NET INCOME ATTRIBUTABLETO NONCONTROLLING (1.7 ) (2.1 ) (0.8 ) (2.9 )INTERESTS



NET LOSS ATTRIBUTABLE TO $ (54.5 ) $ (6.2 ) $ (3,557.0 ) $ (3,563.2 )VALARIS



LOSS PER SHARE - BASIC $ (0.73 ) $ (0.08 ) $ (17.81 ) n/m AND DILUTED

WEIGHTED-AVERAGE SHARESOUTSTANDING - BASIC AND 75.0 75.0 199.7 n/m DILUTED

VALARIS LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share amounts; unaudited)

Three Months Ended

Successor

Combined (Non-GAAP) (1)

Predecessor

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

OPERATING REVENUES

$

326.7

$

293.1

$

307.1

$

296.5

$

285.3

OPERATING EXPENSES

Contract drilling (exclusive of depreciation)

274.3

254.3

252.2

304.7

307.2

Loss on impairment

-

-

756.5

-

-

Depreciation

24.4

54.1

122.1

122.4

122.4

General and administrative

27.2

19.1

24.3

26.5

72.1

Total operating expenses

325.9

327.5

1,155.1

453.6

501.7

Other operating income

-

-

-

-

118.1

EQUITY IN EARNINGS (LOSSES) OF ARO

2.6

6.0

1.9

(0.2

)

3.9

OPERATING INCOME (LOSS)

3.4

(28.4

)

(846.1

)

(157.3

)

(94.4

)

OTHER EXPENSE

Interest income

9.7

8.8

2.6

4.5

4.7

Interest expense, net (Unrecognized contractual interest expense for debt subject to compromise was $32.6 million, $100.3 million, $94.8 million, $45.9 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively)

(11.3

)

(9.1

)

(1.3

)

(1.4

)

(59.8

)

Reorganization items, net

(6.5

)

(3,536.5

)

(52.2

)

(30.1

)

(497.5

)

Other, net

5.2

4.5

21.1

1.7

(3.1

)

(2.9

)

(3,532.3

)

(29.8

)

(25.3

)

(555.7

)

INCOME (LOSS) BEFORE INCOME TAXES

0.5

(3,560.7

)

(875.9

)

(182.6

)

(650.1

)

PROVISION (BENEFIT) FOR INCOME TAXES

53.3

(0.4

)

31.7

(113.5

)

21.9

NET LOSS

(52.8

)

(3,560.3

)

(907.6

)

(69.1

)

(672.0

)

NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS

(1.7

)

(2.9

)

(2.4

)

(1.8

)

1.1

NET LOSS ATTRIBUTABLE TO VALARIS

$

(54.5

)

$

(3,563.2

)

$

(910.0

)

$

(70.9

)

$

(670.9

)

LOSS PER SHARE - BASIC AND DILUTED

$

(0.73

)

n/m

$

(4.56

)

$

(0.36

)

$

(3.36

)

WEIGHTED-AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED

75.0

n/m

199.6

199.5

199.4

VALARIS LIMITED AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In millions, except per share amounts; unaudited)



Three Months Ended

Combined Successor (Non-GAAP) ^ Predecessor (1)

September June 30, March 31, December September 30, 2021 2021 31, 30, 2021 2020 2020



OPERATING $ 326.7 $ 293.1 $ 307.1 $ 296.5 $ 285.3 REVENUES



OPERATING EXPENSES

Contractdrilling 274.3 254.3 252.2 304.7 307.2 (exclusive ofdepreciation)

Loss on - - 756.5 - - impairment

Depreciation 24.4 54.1 122.1 122.4 122.4

General and 27.2 19.1 24.3 26.5 72.1 administrative

Total operating 325.9 327.5 1,155.1 453.6 501.7 expenses

Other operating - - - - 118.1 income

EQUITY INEARNINGS 2.6 6.0 1.9 (0.2 ) 3.9 (LOSSES) OF ARO

OPERATING INCOME 3.4 (28.4 ) (846.1 ) (157.3 ) (94.4 )(LOSS)



OTHER EXPENSE

Interest income 9.7 8.8 2.6 4.5 4.7

Interestexpense, net(Unrecognizedcontractualinterest expensefor debt subjectto compromisewas $32.6million, $100.3million, $94.8 (11.3 ) (9.1 ) (1.3 ) (1.4 ) (59.8 )million, $45.9million for thethree monthsended June 30,2021, March 31,2021, December31, 2020 andSeptember 30,2020,respectively)

Reorganization (6.5 ) (3,536.5 ) (52.2 ) (30.1 ) (497.5 )items, net

Other, net 5.2 4.5 21.1 1.7 (3.1 )

(2.9 ) (3,532.3 ) (29.8 ) (25.3 ) (555.7 )



INCOME (LOSS)BEFORE INCOME 0.5 (3,560.7 ) (875.9 ) (182.6 ) (650.1 )TAXES



PROVISION(BENEFIT) FOR 53.3 (0.4 ) 31.7 (113.5 ) 21.9 INCOME TAXES



NET LOSS (52.8 ) (3,560.3 ) (907.6 ) (69.1 ) (672.0 )



NET (INCOME)LOSSATTRIBUTABLE TO (1.7 ) (2.9 ) (2.4 ) (1.8 ) 1.1 NONCONTROLLINGINTERESTS



NET LOSSATTRIBUTABLE TO $ (54.5 ) $ (3,563.2 ) $ (910.0 ) $ (70.9 ) $ (670.9 )VALARIS



LOSS PER SHARE -BASIC AND $ (0.73 ) n/m $ (4.56 ) $ (0.36 ) $ (3.36 )DILUTED

WEIGHTED-AVERAGESHARESOUTSTANDING - 75.0 n/m 199.6 199.5 199.4 BASIC ANDDILUTED

(1)

Represents the combined results of operations for the two-months ended June 30, 2021 and the one-month ended April 30, 2021.

^ Represents the combined results of operations for the two-months ended June(1) 30, 2021 and the one-month ended April 30, 2021.

VALARIS LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions; unaudited, except for December 31, 2020)

Successor

Predecessor

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

620.8

608.8

$

291.7

$

325.8

$

180.4

Restricted cash

33.9

53.1

17.1

11.4

1.2

Accounts receivable, net

455.8

436.1

449.8

449.2

429.7

Other current assets

117.0

119.7

366.4

386.5

453.5

Total current assets

$

1,227.5

$

1,217.7

$

1,125.0

$

1,172.9

$

1,064.8

PROPERTY AND EQUIPMENT, NET

892.3

897.8

10,083.9

10,960.5

11,082.4

LONG-TERM NOTES RECEIVABLE FROM ARO

241.3

234.3

442.7

442.7

442.7

INVESTMENT IN ARO

87.9

85.4

122.8

120.9

121.1

OTHER ASSETS

153.5

166.5

172.5

176.2

200.2

$

2,602.5

$

2,601.7

$

11,946.9

$

12,873.2

$

12,911.2

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable - trade

$

203.0

183.9

$

176.8

$

176.4

$

180.7

Accrued liabilities and other

223.8

212.7

290.6

250.4

207.3

Total current liabilities

$

426.8

$

396.6

$

467.4

$

426.8

$

388.0

LONG-TERM DEBT

545.1

544.8

-

-

-

OTHER LIABILITIES

591.3

569.8

704.6

762.4

696.9

TOTAL LIABILITIES NOT SUBJECT TO COMPROMISE

1,563.2

1,511.2

1,172.0

1,189.2

1,084.9

LIABILITIES SUBJECT TO COMPROMISE

-

-

7,313.7

7,313.7

7,313.7

TOTAL EQUITY

1,039.3

1,090.5

3,461.2

4,370.3

4,512.6

$

2,602.5

$

2,601.7

$

11,946.9

$

12,873.2

$

12,911.2

VALARIS LIMITED AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In millions; unaudited, except for December 31, 2020)

Successor Predecessor

September June 30, March 31, December 31, September 30, 2021 2021 2020 30, 2021 2020

ASSETS



CURRENT ASSETS

Cash and cash $ 620.8 608.8 $ 291.7 $ 325.8 $ 180.4 equivalents

Restricted 33.9 53.1 17.1 11.4 1.2 cash

Accountsreceivable, 455.8 436.1 449.8 449.2 429.7 net

Other current 117.0 119.7 366.4 386.5 453.5 assets

Total current $ 1,227.5 $ 1,217.7 $ 1,125.0 $ 1,172.9 $ 1,064.8 assets



PROPERTY ANDEQUIPMENT, 892.3 897.8 10,083.9 10,960.5 11,082.4 NET



LONG-TERMNOTES 241.3 234.3 442.7 442.7 442.7 RECEIVABLEFROM ARO



INVESTMENT IN 87.9 85.4 122.8 120.9 121.1 ARO



OTHER ASSETS 153.5 166.5 172.5 176.2 200.2



$ 2,602.5 $ 2,601.7 $ 11,946.9 $ 12,873.2 $ 12,911.2





LIABILITIESAND SHAREHOLDERS'EQUITY



CURRENT LIABILITIES

Accountspayable - $ 203.0 183.9 $ 176.8 $ 176.4 $ 180.7 trade

Accruedliabilities 223.8 212.7 290.6 250.4 207.3 and other

Total current $ 426.8 $ 396.6 $ 467.4 $ 426.8 $ 388.0 liabilities



LONG-TERM 545.1 544.8 - - - DEBT



OTHER 591.3 569.8 704.6 762.4 696.9 LIABILITIES



TOTALLIABILITIES 1,563.2 1,511.2 1,172.0 1,189.2 1,084.9 NOT SUBJECTTO COMPROMISE



LIABILITIESSUBJECT TO - - 7,313.7 7,313.7 7,313.7 COMPROMISE



TOTAL EQUITY 1,039.3 1,090.5 3,461.2 4,370.3 4,512.6



$ 2,602.5 $ 2,601.7 $ 11,946.9 $ 12,873.2 $ 12,911.2

VALARIS LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions, unaudited)

Successor

Predecessor

Combined

(Non-GAAP)

Predecessor

Five Months Ended September 30, 2021

Four Months Ended April 30, 2021

Nine Months Ended September 30, 2021

Nine Months Ended September 30, 2020

OPERATING ACTIVITIES

Net loss

$

(56.9

)

$

(4,463.8

)

$

(4,520.7

)

$

(4,788.5

)

Adjustments to reconcile net loss to net cash used in operating activities:

Reorganization items, net

-

3,487.3

3,487.3

447.9

Loss on impairment

-

756.5

756.5

3,646.2

Depreciation expense

41.0

159.6

200.6

418.4

Deferred income tax expense (benefit)

1.2

(18.2

)

(17.0

)

(103.6

)

Accretion of discount on shareholder note

(12.9

)

-

(12.9

)

-

Equity in losses (earnings) of ARO

(7.4

)

(3.1

)

(10.5

)

7.6

Share-based compensation expense

1.6

4.8

6.4

17.8

Amortization, net

2.8

(4.8

)

(2.0

)

14.4

Debt discounts and other

0.3

-

0.3

36.8

Debtor in possession financing fees and payments on Backstop Agreement

-

-

-

43.8

Adjustment to gain on bargain purchase

-

-

-

6.3

Gain on debt extinguishment

-

-

-

(3.1

)

Other

(6.3

)

(4.1

)

(10.4

)

2.4

Changes in operating assets and liabilities

19.3

68.5

87.8

(131.8

)

Contributions to pension plans and other post-retirement benefits

(1.7

)

(22.5

)

(24.2

)

(11.0

)

Net cash used in operating activities

(19.0

)

(39.8

)

(58.8

)

(396.4

)

INVESTING ACTIVITIES

Additions to property and equipment

(23.7

)

(8.7

)

(32.4

)

(82.9

)

Net proceeds from disposition of assets

1.5

30.1

31.6

44.2

Net cash provided by (used in) investing activities

(22.2

)

21.4

(0.8

)

(38.7

)

FINANCING ACTIVITIES

Issuance of first lien notes

-

520.0

520.0

-

Payments to Predecessor creditors

-

(129.9

)

(129.9

)

-

Borrowings on credit facility

-

-

-

596.0

Debtor in possession financing fees and payments on Backstop Agreement

-

-

-

(43.8

)

Repayments of credit facility borrowings

-

-

-

(15.0

)

Reduction of long-term borrowings

-

-

-

(9.7

)

Purchase of noncontrolling interests

-

-

-

(7.2

)

Other

-

(1.4

)

(1.4

)

(1.9

)

Net cash provided by financing activities

-

388.7

388.7

518.4

Effect of exchange rate changes on cash and cash equivalents

(0.1

)

(0.1

)

(0.2

)

(0.1

)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

(41.3

)

370.2

328.9

83.2

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD

696.0

325.8

325.8

97.2

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD

$

654.7

$

696.0

$

654.7

$

180.4

VALARIS LIMITED AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions, unaudited)

Combined Successor Predecessor Predecessor (Non-GAAP)

Five Nine Months Nine Months Months Four Months Ended Ended Ended Ended September September September April 30, 30, 30, 30, 2021 2021 2020 2021

OPERATING ACTIVITIES

Net loss $ (56.9 ) $ (4,463.8 ) $ (4,520.7 ) $ (4,788.5 )

Adjustments toreconcile net loss to net cash used inoperating activities:

Reorganization items, - 3,487.3 3,487.3 447.9 net

Loss on impairment - 756.5 756.5 3,646.2

Depreciation expense 41.0 159.6 200.6 418.4

Deferred income tax 1.2 (18.2 ) (17.0 ) (103.6 )expense (benefit)

Accretion of discount (12.9 ) - (12.9 ) - on shareholder note

Equity in losses (7.4 ) (3.1 ) (10.5 ) 7.6 (earnings) of ARO

Share-based 1.6 4.8 6.4 17.8 compensation expense

Amortization, net 2.8 (4.8 ) (2.0 ) 14.4

Debt discounts and 0.3 - 0.3 36.8 other

Debtor in possessionfinancing fees and - - - 43.8 payments on BackstopAgreement

Adjustment to gain on - - - 6.3 bargain purchase

Gain on debt - - - (3.1 )extinguishment

Other (6.3 ) (4.1 ) (10.4 ) 2.4

Changes in operating 19.3 68.5 87.8 (131.8 )assets and liabilities

Contributions topension plans and (1.7 ) (22.5 ) (24.2 ) (11.0 )other post-retirementbenefits

Net cash used in (19.0 ) (39.8 ) (58.8 ) (396.4 )operating activities



INVESTING ACTIVITIES

Additions to property (23.7 ) (8.7 ) (32.4 ) (82.9 )and equipment

Net proceeds from 1.5 30.1 31.6 44.2 disposition of assets

Net cash provided by(used in) investing (22.2 ) 21.4 (0.8 ) (38.7 )activities



FINANCING ACTIVITIES

Issuance of first lien - 520.0 520.0 - notes

Payments to - (129.9 ) (129.9 ) - Predecessor creditors

Borrowings on credit - - - 596.0 facility

Debtor in possessionfinancing fees and - - - (43.8 )payments on BackstopAgreement

Repayments of credit - - - (15.0 )facility borrowings

Reduction of long-term - - - (9.7 )borrowings

Purchase ofnoncontrolling - - - (7.2 )interests

Other - (1.4 ) (1.4 ) (1.9 )

Net cash provided by - 388.7 388.7 518.4 financing activities



Effect of exchangerate changes on cash (0.1 ) (0.1 ) (0.2 ) (0.1 )and cash equivalents



INCREASE (DECREASE) INCASH AND CASH (41.3 ) 370.2 328.9 83.2 EQUIVALENTS ANDRESTRICTED CASH

CASH AND CASHEQUIVALENTS AND 696.0 325.8 325.8 97.2 RESTRICTED CASH,BEGINNING OF PERIOD

CASH AND CASHEQUIVALENTS AND $ 654.7 $ 696.0 $ 654.7 $ 180.4RESTRICTED CASH, ENDOF PERIOD

VALARIS LIMITED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions, unaudited)

Three Months Ended

Successor

Combined (Non-GAAP) (1)

Predecessor

September 30, 2021

June 30,

2021

March 31, 2021

December 31, 2020

September 30, 2020

OPERATING ACTIVITIES

Net loss

$

(52.8

)

$

(3,560.3

)

$

(907.6

)

$

(69.1

)

$

(672.0

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation expense

24.4

54.1

122.1

122.4

122.4

Accretion of discount on shareholder note

(6.9

)

(6.0

)

-

-

-

Amortization, net

3.1

(.5

)

(4.6

)

(8.2

)

2.2

Equity in losses (earnings) of ARO

(2.6

)

(6.0

)

(1.9

)

.2

(3.9

)

Share-based compensation expense

1.6

1.0

3.8

3.6

4.3

Deferred income tax expense (benefit)

.1

(18.0

)

.9

(2.1

)

5.5

Debt discounts and other

(.1

)

.4

-

-

8.0

Debtor in Possession financing fees and payments on Backstop Agreement

-

-

-

(3.8

)

43.8

Loss on impairment

-

-

756.5

-

-

Reorganization items, net

-

3,487.3

-

(11.5

)

447.9

Other

(3.8

)

(7.0

)

0.4

4.5

2.0

Changes in operating assets and liabilities

45.0

21.9

20.9

109.8

24.9

Contributions to pension plans and other post-retirement benefits

(1.1

)

(0.9

)

(22.2

)

(1.1

)

(0.4

)

Net cash provided by (used in) operating activities

6.9

(34.0

)

(31.7

)

144.7

(15.3

)

INVESTING ACTIVITIES

Additions to property and equipment

(15.6

)

(10.8

)

(6.0

)

(10.9

)

(15.8

)

Net proceeds from disposition of assets

1.3

26.6

3.7

7.6

30.4

Net cash provided by (used in) investing activities

(14.3

)

15.8

(2.3

)

(3.3

)

14.6

FINANCING ACTIVITIES

Issuance of first lien notes

-

520.0

-

-

-

Payments to Predecessor creditors

-

(129.9

)

-

-

-

Borrowings on credit facility

-

-

-

-

30.0

Debtor in Possession financing fees and payments on Backstop Agreement

-

-

-

3.8

(43.8

)

Purchase of noncontrolling interests

-

-

-

-

(7.2

)

Other

-

(1.4

)

-

-

-

Net cash provided by (used in) financing activities

-

388.7

-

3.8

(21.0

)

Effect of exchange rate changes on cash and cash equivalents

0.2

(0.3

)

(0.1

)

0.2

0.1

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH

(7.2

)

370.2

(34.1

)

145.4

(21.6

)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD

661.9

291.7

325.8

180.4

202.0

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD

$

654.7

$

661.9

$

291.7

$

325.8

$

180.4

VALARIS LIMITED AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions, unaudited)

Three Months Ended

Combined Successor (Non-GAAP) ^ Predecessor (1)

September June 30, March 31, December September 30, 2021 2021 31, 2020 30, 2020 2021

OPERATING ACTIVITIES

Net loss $ (52.8 ) $ (3,560.3 ) $ (907.6 ) $ (69.1 ) $ (672.0 )

Adjustments toreconcile netloss to net cash used inoperatingactivities:

Depreciation 24.4 54.1 122.1 122.4 122.4 expense

Accretion ofdiscount on (6.9 ) (6.0 ) - - - shareholdernote

Amortization, 3.1 (.5 ) (4.6 ) (8.2 ) 2.2 net

Equity inlosses (2.6 ) (6.0 ) (1.9 ) .2 (3.9 )(earnings) ofARO

Share-basedcompensation 1.6 1.0 3.8 3.6 4.3 expense

Deferred incometax expense .1 (18.0 ) .9 (2.1 ) 5.5 (benefit)

Debt discounts (.1 ) .4 - - 8.0 and other

Debtor inPossessionfinancing fees - - - (3.8 ) 43.8 and payments onBackstopAgreement

Loss on - - 756.5 - - impairment

Reorganization - 3,487.3 - (11.5 ) 447.9 items, net

Other (3.8 ) (7.0 ) 0.4 4.5 2.0

Changes inoperating 45.0 21.9 20.9 109.8 24.9 assets andliabilities

Contributionsto pensionplans and other (1.1 ) (0.9 ) (22.2 ) (1.1 ) (0.4 )post-retirementbenefits

Net cashprovided by(used in) 6.9 (34.0 ) (31.7 ) 144.7 (15.3 )operatingactivities



INVESTING ACTIVITIES

Additions toproperty and (15.6 ) (10.8 ) (6.0 ) (10.9 ) (15.8 )equipment

Net proceedsfrom 1.3 26.6 3.7 7.6 30.4 disposition ofassets

Net cashprovided by(used in) (14.3 ) 15.8 (2.3 ) (3.3 ) 14.6 investingactivities



FINANCING ACTIVITIES

Issuance offirst lien - 520.0 - - - notes

Payments toPredecessor - (129.9 ) - - - creditors

Borrowings on - - - - 30.0 credit facility

Debtor inPossessionfinancing fees - - - 3.8 (43.8 )and payments onBackstopAgreement

Purchase ofnoncontrolling - - - - (7.2 )interests

Other - (1.4 ) - - -

Net cashprovided by(used in) - 388.7 - 3.8 (21.0 )financingactivities



Effect ofexchange ratechanges on cash 0.2 (0.3 ) (0.1 ) 0.2 0.1 and cashequivalents



INCREASE(DECREASE) INCASH AND CASH (7.2 ) 370.2 (34.1 ) 145.4 (21.6 )EQUIVALENTS ANDRESTRICTED CASH

CASH AND CASHEQUIVALENTS ANDRESTRICTED 661.9 291.7 325.8 180.4 202.0 CASH, BEGINNINGOF PERIOD

CASH AND CASHEQUIVALENTS ANDRESTRICTED $ 654.7 $ 661.9 $ 291.7 $ 325.8 $ 180.4 CASH, END OFPERIOD

(1)

Represents the combined results of operations for the two-months ended June 30, 2021 and the one-month ended April 30, 2021.

^ Represents the combined results of operations for the two-months ended June(1) 30, 2021 and the one-month ended April 30, 2021.

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (In millions, unaudited)

Three Months Ended

Successor

Combined (Non-GAAP)

Predecessor

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

REVENUES

Floaters

Drillships

$

67.5

$

42.6

$

81.0

$

93.8

$

35.4

Semisubmersibles

36.8

25.5

16.3

11.7

21.7

$

104.3

$

68.1

$

97.3

$

105.5

$

57.1

Jackups (1)

HD Ultra-Harsh & Harsh Environment

$

102.8

$

104.9

$

95.5

$

96.2

$

91.2

HD & SD Modern

59.6

57.7

50.5

61.1

67.8

SD Legacy

23.9

25.7

26.6

22.1

27.8

$

186.3

$

188.3

$

172.6

$

179.4

$

186.8

Total

$

290.6

$

256.4

$

269.9

$

284.9

$

243.9

Other

Leased and Managed Rigs

$

36.1

$

36.7

$

37.2

$

11.6

$

41.4

Valaris Total

$

326.7

$

293.1

$

307.1

$

296.5

$

285.3

ARO

ARO Total

$

117.7

$

124.8

$

122.7

$

117.5

$

145.6

Valaris 50% Share (unconsolidated)

58.9

62.4

61.4

58.8

72.8

Adjusted Total (2)

$

385.6

$

355.5

$

368.5

$

355.3

$

358.1

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS(In millions, unaudited)

Three Months Ended

Successor Combined Predecessor (Non-GAAP)

September June 30, March 31, December September 30, 2021 2021 31, 30, 2021 2020 2020

REVENUES

Floaters

Drillships $ 67.5 $ 42.6 $ 81.0 $ 93.8 $ 35.4

Semisubmersibles 36.8 25.5 16.3 11.7 21.7

$ 104.3 $ 68.1 $ 97.3 $ 105.5 $ 57.1

Jackups^ (1)

HD Ultra-Harsh & Harsh $ 102.8 $ 104.9 $ 95.5 $ 96.2 $ 91.2 Environment

HD & SD Modern 59.6 57.7 50.5 61.1 67.8

SD Legacy 23.9 25.7 26.6 22.1 27.8

$ 186.3 $ 188.3 $ 172.6 $ 179.4 $ 186.8



Total $ 290.6 $ 256.4 $ 269.9 $ 284.9 $ 243.9



Other

Leased and Managed Rigs $ 36.1 $ 36.7 $ 37.2 $ 11.6 $ 41.4



Valaris Total $ 326.7 $ 293.1 $ 307.1 $ 296.5 $ 285.3



ARO

ARO Total $ 117.7 $ 124.8 $ 122.7 $ 117.5 $ 145.6

Valaris 50% Share 58.9 62.4 61.4 58.8 72.8 (unconsolidated)



Adjusted Total^ (2) $ 385.6 $ 355.5 $ 368.5 $ 355.3 $ 358.1

(1)

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

(2)

Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO (unconsolidated).

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



^ Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO(2) (unconsolidated).

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (In millions, unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

ADJUSTED EBITDAR (1)

Active Fleet (1)

$

93.0

$

82.1

$

88.8

$

59.1

$

163.9

Leased and Managed Rigs (1)

22.2

22.9

22.7

24.0

25.3

$

115.2

$

105.0

$

111.5

$

83.1

$

189.2

Stacked Fleet (1) (2)

(12.5

)

(17.1

)

(17.7

)

(31.5

)

(55.9

)

$

102.7

$

87.9

$

93.8

$

51.6

$

133.3

Support costs

General and administrative expense

$

27.2

$

19.1

$

24.3

$

26.3

$

72.0

Onshore support costs

27.1

29.1

32.2

35.6

37.9

$

54.3

$

48.2

$

56.5

$

61.9

$

109.9

Add (subtract):

Merger transaction and integration cost included in contract drilling expense

0.9

0.9

1.9

2.1

50.7

ARO

ARO Total

$

17.9

$

27.8

$

33.4

$

46.1

$

40.8

Valaris 50% Share (unconsolidated)

9.0

13.9

16.7

23.1

20.4

Adjusted Total (3)

$

58.3

$

54.5

$

55.9

$

14.9

$

94.5

Reactivation costs (4)

$

19.4

$

24.0

$

11.1

$

1.6

$

0.9

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS(In millions, unaudited)

Three Months Ended

September June 30, March 31, December September 30, 2021 2021 31, 30, 2021 2020 2020

ADJUSTED EBITDAR ^(1)

Active Fleet ^(1) $ 93.0 $ 82.1 $ 88.8 $ 59.1 $ 163.9

Leased and Managed 22.2 22.9 22.7 24.0 25.3 Rigs^ (1)

$ 115.2 $ 105.0 $ 111.5 $ 83.1 $ 189.2



Stacked Fleet ^(1) (2) (12.5 ) (17.1 ) (17.7 ) (31.5 ) (55.9 )

$ 102.7 $ 87.9 $ 93.8 $ 51.6 $ 133.3



Support costs

General and $ 27.2 $ 19.1 $ 24.3 $ 26.3 $ 72.0 administrative expense

Onshore support costs 27.1 29.1 32.2 35.6 37.9

$ 54.3 $ 48.2 $ 56.5 $ 61.9 $ 109.9

Add (subtract):

Merger transaction andintegration cost 0.9 0.9 1.9 2.1 50.7 included in contractdrilling expense



ARO

ARO Total $ 17.9 $ 27.8 $ 33.4 $ 46.1 $ 40.8

Valaris 50% Share 9.0 13.9 16.7 23.1 20.4 (unconsolidated)



Adjusted Total^ (3) $ 58.3 $ 54.5 $ 55.9 $ 14.9 $ 94.5



Reactivation costs ^ $ 19.4 $ 24.0 $ 11.1 $ 1.6 $ 0.9 (4)



(1)

Adjusted EBITDAR is earnings before interest, tax, depreciation, amortization and reactivation costs. Adjusted EBITDAR for active fleet, leased and managed rigs and stacked fleet also excludes onshore support costs and general and administrative expense.

(2)

Stacked fleet represents the combined total of all preservation and stacking costs.

(3)

Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO (unconsolidated).

(4)

Reactivation costs, all of which are attributed to the active fleet, are excluded from adjusted EBITDAR.

Adjusted EBITDAR is earnings before interest, tax, depreciation,^ amortization and reactivation costs. Adjusted EBITDAR for active fleet,(1) leased and managed rigs and stacked fleet also excludes onshore support costs and general and administrative expense.



^ Stacked fleet represents the combined total of all preservation and(2) stacking costs.



^ Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO(3) (unconsolidated).



^ Reactivation costs, all of which are attributed to the active fleet, are(4) excluded from adjusted EBITDAR.

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (In millions, unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

ADJUSTED EBITDAR (1)

Floaters

Drillships (1)

$

8.9

$

(2.5

)

$

16.1

$

5.1

$

68.3

Semisubmersibles (1)

8.3

6.5

(1.0

)

(11.5

)

(9.3

)

$

17.2

$

4.0

$

15.1

$

(6.4

)

$

59.0

Jackups

HD Ultra-Harsh & Harsh (1)

$

38.7

$

42.3

$

31.0

$

16.6

$

22.5

HD & SD - Modern (1)

15.6

6.7

12.0

10.1

16.3

SD - Legacy (1)

9.0

12.0

13.0

7.3

10.2

$

63.3

$

61.0

$

56.0

$

34.0

$

49.0

Total

$

80.5

$

65.0

$

71.1

$

27.6

$

108.0

Other

Leased and Managed Rigs (1)

$

22.2

$

22.9

$

22.7

$

24.0

$

25.3

Total

$

102.7

$

87.9

$

93.8

$

51.6

$

133.3

Support costs

General and administrative expense

$

27.2

$

19.1

$

24.3

$

26.3

$

72.0

Onshore support costs

27.1

29.1

32.2

35.6

37.9

$

54.3

$

48.2

$

56.5

$

61.9

$

109.9

Add (subtract):

Merger transaction and integration cost included in contract drilling expense

0.9

0.9

1.9

2.1

50.7

Valaris Total

$

49.3

$

40.6

$

39.2

$

(8.2

)

$

74.1

ARO

ARO Total

$

17.9

$

27.8

$

33.4

$

46.1

$

40.8

Valaris 50% Share (unconsolidated)

9.0

13.9

16.7

23.1

20.4

Adjusted Total (2)

$

58.3

$

54.5

$

55.9

$

14.9

$

94.5

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS(In millions, unaudited)

Three Months Ended

September June 30, March December September 30, 2021 31, 31, 30, 2021 2021 2020 2020

ADJUSTED EBITDAR ^(1)

Floaters

Drillships ^(1) $ 8.9 $ (2.5 ) $ 16.1 $ 5.1 $ 68.3

Semisubmersibles ^(1) 8.3 6.5 (1.0 ) (11.5 ) (9.3 )

$ 17.2 $ 4.0 $ 15.1 $ (6.4 ) $ 59.0



Jackups

HD Ultra-Harsh & Harsh ^ $ 38.7 $ 42.3 $ 31.0 $ 16.6 $ 22.5 (1)

HD & SD - Modern ^(1) 15.6 6.7 12.0 10.1 16.3

SD - Legacy ^(1) 9.0 12.0 13.0 7.3 10.2

$ 63.3 $ 61.0 $ 56.0 $ 34.0 $ 49.0



Total $ 80.5 $ 65.0 $ 71.1 $ 27.6 $ 108.0



Other

Leased and Managed Rigs $ 22.2 $ 22.9 $ 22.7 $ 24.0 $ 25.3 ^(1)



Total $ 102.7 $ 87.9 $ 93.8 $ 51.6 $ 133.3



Support costs

General and $ 27.2 $ 19.1 $ 24.3 $ 26.3 $ 72.0 administrative expense

Onshore support costs 27.1 29.1 32.2 35.6 37.9

$ 54.3 $ 48.2 $ 56.5 $ 61.9 $ 109.9

Add (subtract):

Merger transaction andintegration cost 0.9 0.9 1.9 2.1 50.7 included in contractdrilling expense



Valaris Total $ 49.3 $ 40.6 $ 39.2 $ (8.2 ) $ 74.1



ARO

ARO Total $ 17.9 $ 27.8 $ 33.4 $ 46.1 $ 40.8

Valaris 50% Share 9.0 13.9 16.7 23.1 20.4 (unconsolidated)



Adjusted Total^ (2) $ 58.3 $ 54.5 $ 55.9 $ 14.9 $ 94.5

(1)

Adjusted EBITDAR is earnings before interest, tax, depreciation, amortization and reactivation costs. Adjusted EBITDAR for asset category also excludes onshore support costs and general and administrative expense.

(2)

Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO (unconsolidated).

^ Adjusted EBITDAR is earnings before interest, tax, depreciation,(1) amortization and reactivation costs. Adjusted EBITDAR for asset category also excludes onshore support costs and general and administrative expense.



^ Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO(2) (unconsolidated).

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (In millions, unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

ADJUSTED EBITDA (1)

Floaters

Drillships (1)

$

8.6

$

(2.5

)

$

16.1

$

5.1

$

68.3

Semisubmersibles (1)

7.2

6.4

(6.7

)

(12.7

)

(10.2

)

$

15.8

$

3.9

$

9.4

$

(7.6

)

$

58.1

Jackups

HD Ultra-Harsh & Harsh (1)

$

25.1

$

22.2

$

29.3

$

16.5

$

22.5

HD & SD - Modern (1)

11.2

2.9

8.3

9.8

16.3

SD - Legacy (1)

9.0

12.0

13.0

7.3

10.2

$

45.3

$

37.1

$

50.6

$

33.6

$

49.0

Total

$

61.1

$

41.0

$

60.0

$

26.0

$

107.1

Other

Leased and Managed Rigs (1)

$

22.1

$

22.9

$

22.7

$

24.0

$

25.3

Total

$

83.2

$

63.9

$

82.7

$

50.0

$

132.4

Support costs

General and administrative expense

$

27.2

$

19.1

$

24.3

$

26.3

$

72.0

Onshore support costs

27.1

29.1

32.2

35.6

37.9

$

54.3

$

48.2

$

56.5

$

61.9

$

109.9

Add (subtract):

Merger transaction and integration cost included in contract drilling expense

0.9

0.9

1.9

2.1

50.7

Valaris Total

$

29.8

$

16.6

$

28.1

$

(9.8

)

$

73.2

ARO

ARO Total

$

17.9

$

27.8

$

33.4

$

46.1

$

40.8

Valaris 50% Share (unconsolidated)

9.0

13.9

16.7

23.1

20.4

Adjusted Total (2)

$

38.8

$

30.5

$

44.8

$

13.3

$

93.6

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS(In millions, unaudited)

Three Months Ended

September June 30, March December September 30, 2021 31, 31, 30, 2021 2021 2020 2020

ADJUSTED EBITDA^ (1)

Floaters

Drillships ^(1) $ 8.6 $ (2.5 ) $ 16.1 $ 5.1 $ 68.3

Semisubmersibles ^(1) 7.2 6.4 (6.7 ) (12.7 ) (10.2 )

$ 15.8 $ 3.9 $ 9.4 $ (7.6 ) $ 58.1



Jackups

HD Ultra-Harsh & Harsh ^ $ 25.1 $ 22.2 $ 29.3 $ 16.5 $ 22.5 (1)

HD & SD - Modern ^(1) 11.2 2.9 8.3 9.8 16.3

SD - Legacy ^(1) 9.0 12.0 13.0 7.3 10.2

$ 45.3 $ 37.1 $ 50.6 $ 33.6 $ 49.0



Total $ 61.1 $ 41.0 $ 60.0 $ 26.0 $ 107.1



Other

Leased and Managed Rigs $ 22.1 $ 22.9 $ 22.7 $ 24.0 $ 25.3 ^(1)



Total $ 83.2 $ 63.9 $ 82.7 $ 50.0 $ 132.4



Support costs

General and $ 27.2 $ 19.1 $ 24.3 $ 26.3 $ 72.0 administrative expense

Onshore support costs 27.1 29.1 32.2 35.6 37.9

$ 54.3 $ 48.2 $ 56.5 $ 61.9 $ 109.9

Add (subtract):

Merger transaction andintegration cost 0.9 0.9 1.9 2.1 50.7 included in contractdrilling expense



Valaris Total $ 29.8 $ 16.6 $ 28.1 $ (9.8 ) $ 73.2



ARO

ARO Total $ 17.9 $ 27.8 $ 33.4 $ 46.1 $ 40.8

Valaris 50% Share 9.0 13.9 16.7 23.1 20.4 (unconsolidated)



Adjusted Total^ (2) $ 38.8 $ 30.5 $ 44.8 $ 13.3 $ 93.6

(1)

Adjusted EBITDA is earnings before interest, tax, depreciation and amortization. Adjusted EBITDA for asset category also excludes onshore support costs and general and administrative expense.

(2)

Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO (unconsolidated).

^ Adjusted EBITDA is earnings before interest, tax, depreciation and(1) amortization. Adjusted EBITDA for asset category also excludes onshore support costs and general and administrative expense.



^ Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO(2) (unconsolidated).

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (In millions, unaudited)

As of

October 27, 2021

August 2, 2021

March 31, 2021

December 31, 2020

September 30, 2020

CONTRACT BACKLOG (1)

Floaters

Drillships

$

1,338.6

$

1,102.2

$

117.6

$

90.0

$

129.2

Semisubmersibles

277.9

294.0

171.4

73.7

82.3

$

1,616.5

$

1,396.2

$

289.0

$

163.7

$

211.5

Jackups

HD Ultra-Harsh & Harsh

307.6

364.4

403.8

358.7

400.3

HD & SD - Modern

274.5

299.9

180.6

211.8

253.4

SD - Legacy

85.5

102.9

134.4

167.1

176.3

$

667.6

$

767.2

$

718.8

$

737.6

$

830.0

Total

$

2,284.1

$

2,163.4

$

1,007.8

$

901.3

$

1,041.5

Other (2)

Leased and Managed Rigs

$

33.9

$

60.3

$

90.8

$

140.1

$

178.7

Valaris Total

$

2,318.0

$

2,223.7

$

1,098.6

$

1,041.4

$

1,220.2

ARO

Owned Rigs

$

757.4

$

818.7

$

869.5

$

84.2

$

146.7

Leased Rigs

88.7

134.5

192.2

263.3

347.1

ARO Total

$

846.1

$

953.2

$

1,061.7

$

347.5

$

493.8

Valaris 50% Share of ARO Owned Rigs

378.7

409.4

434.8

42.1

73.4

Adjusted Total (3)

$

2,696.7

$

2,633.1

$

1,533.4

$

1,083.5

$

1,293.6

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS(In millions, unaudited)

As of

October 27, August 2, March 31, December September 2021 2021 2021 31, 30, 2020 2020

CONTRACT BACKLOG ^ (1)

Floaters

Drillships $ 1,338.6 $ 1,102.2 $ 117.6 $ 90.0 $ 129.2

Semisubmersibles 277.9 294.0 171.4 73.7 82.3

$ 1,616.5 $ 1,396.2 $ 289.0 $ 163.7 $ 211.5

Jackups

HD Ultra-Harsh & 307.6 364.4 403.8 358.7 400.3 Harsh

HD & SD - Modern 274.5 299.9 180.6 211.8 253.4

SD - Legacy 85.5 102.9 134.4 167.1 176.3

$ 667.6 $ 767.2 $ 718.8 $ 737.6 $ 830.0



Total $ 2,284.1 $ 2,163.4 $ 1,007.8 $ 901.3 $ 1,041.5



Other^ (2)

Leased and $ 33.9 $ 60.3 $ 90.8 $ 140.1 $ 178.7 Managed Rigs



Valaris Total $ 2,318.0 $ 2,223.7 $ 1,098.6 $ 1,041.4 $ 1,220.2



ARO

Owned Rigs $ 757.4 $ 818.7 $ 869.5 $ 84.2 $ 146.7

Leased Rigs 88.7 134.5 192.2 263.3 347.1

ARO Total $ 846.1 $ 953.2 $ 1,061.7 $ 347.5 $ 493.8



Valaris 50%Share of ARO 378.7 409.4 434.8 42.1 73.4 Owned Rigs



Adjusted Total^ $ 2,696.7 $ 2,633.1 $ 1,533.4 $ 1,083.5 $ 1,293.6 (3)

(1)

Our contract drilling backlog reflects commitments, represented by signed drilling contracts, and is calculated by multiplying the contracted day rate by the contract period. Contract drilling backlog includes drilling contracts subject to final investment decision (FID) and drilling contracts which grant the customer termination rights if FID is not received with respect to projects for which the drilling rig is contracted. The contracted day rate excludes certain types of lump sum fees for rig mobilization, demobilization, contract preparation, as well as customer reimbursables and bonus opportunities.

(2)

Leased rigs and managed rigs included in Other reporting segment.

(3)

Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO owned rigs.

Our contract drilling backlog reflects commitments, represented by signed drilling contracts, and is calculated by multiplying the contracted day rate by the contract period. Contract drilling backlog includes drilling^ contracts subject to final investment decision (FID) and drilling contracts(1) which grant the customer termination rights if FID is not received with respect to projects for which the drilling rig is contracted. The contracted day rate excludes certain types of lump sum fees for rig mobilization, demobilization, contract preparation, as well as customer reimbursables and bonus opportunities.



^ Leased rigs and managed rigs included in Other reporting segment.(2)



^ Adjusted total is Valaris consolidated total plus Valaris 50% share of ARO(3) owned rigs.

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (Unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

AVERAGE DAY RATES (1)

Floaters

Drillships

$

189,000

$

212,000

$

208,000

$

214,000

$

155,000

Semisubmersibles

191,000

178,000

164,000

160,000

262,000

$

190,000

$

197,000

$

198,000

$

206,000

$

190,000

Jackups

HD Ultra-Harsh & Harsh

$

124,000

$

141,000

$

140,000

$

120,000

$

138,000

HD & SD Modern

77,000

73,000

70,000

74,000

73,000

SD Legacy

74,000

72,000

70,000

55,000

65,000

$

96,000

$

99,000

$

95,000

$

86,000

$

93,000

Total

$

115,000

$

114,000

$

116,000

$

110,000

$

104,000

Other

Leased and Managed Rigs

$

31,000

$

31,000

$

32,000

$

6,000

$

36,000

Valaris Total

$

90,000

$

87,000

$

89,000

$

76,000

$

80,000

ARO

Owned Rigs

$

99,000

$

99,000

$

98,000

$

116,000

$

116,000

Leased Rigs (2)

92,000

93,000

89,000

99,000

91,000

ARO Total

$

95,000

$

96,000

$

93,000

$

109,000

$

102,000

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS(Unaudited)

Three Months Ended

September June 30, March 31, December September 30, 2021 2021 31, 30, 2021 2020 2020

AVERAGE DAY RATES ^(1)

Floaters

Drillships $ 189,000 $ 212,000 $ 208,000 $ 214,000 $ 155,000

Semisubmersibles 191,000 178,000 164,000 160,000 262,000

$ 190,000 $ 197,000 $ 198,000 $ 206,000 $ 190,000

Jackups

HD Ultra-Harsh & $ 124,000 $ 141,000 $ 140,000 $ 120,000 $ 138,000 Harsh

HD & SD Modern 77,000 73,000 70,000 74,000 73,000

SD Legacy 74,000 72,000 70,000 55,000 65,000

$ 96,000 $ 99,000 $ 95,000 $ 86,000 $ 93,000



Total $ 115,000 $ 114,000 $ 116,000 $ 110,000 $ 104,000



Other

Leased and Managed $ 31,000 $ 31,000 $ 32,000 $ 6,000 $ 36,000 Rigs



Valaris Total $ 90,000 $ 87,000 $ 89,000 $ 76,000 $ 80,000



ARO

Owned Rigs $ 99,000 $ 99,000 $ 98,000 $ 116,000 $ 116,000

Leased Rigs ^(2) 92,000 93,000 89,000 99,000 91,000

ARO Total $ 95,000 $ 96,000 $ 93,000 $ 109,000 $ 102,000

(1)

Average day rates are derived by dividing contract drilling revenues, adjusted to exclude certain types of non-recurring reimbursable revenues, lump-sum revenues, revenues earned during suspension periods and revenues attributable to amortization of drilling contract intangibles, by the aggregate number of contract days, adjusted to exclude contract days associated with certain suspension periods, mobilizations, demobilizations and shipyard contracts.

(2)

All ARO leased rigs are leased from Valaris and also included in Valaris leased and managed rigs average day rates.

Average day rates are derived by dividing contract drilling revenues, adjusted to exclude certain types of non-recurring reimbursable revenues,^ lump-sum revenues, revenues earned during suspension periods and revenues(1) attributable to amortization of drilling contract intangibles, by the aggregate number of contract days, adjusted to exclude contract days associated with certain suspension periods, mobilizations, demobilizations and shipyard contracts.



^ All ARO leased rigs are leased from Valaris and also included in Valaris(2) leased and managed rigs average day rates.

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (Unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

UTILIZATION - TOTAL FLEET (1)

Floaters

Drillships

24

%

18

%

33

%

34

%

11

%

Semisubmersibles

39

%

30

%

20

%

11

%

11

%

28

%

22

%

29

%

26

%

11

%

Jackups

HD Ultra-Harsh & Harsh

72

%

58

%

50

%

44

%

48

%

HD & SD Modern

43

%

43

%

40

%

37

%

41

%

SD Legacy

74

%

93

%

100

%

100

%

99

%

57

%

54

%

50

%

46

%

50

%

Total

47

%

44

%

44

%

40

%

36

%

Other

Leased and Managed Rigs

100

%

100

%

100

%

100

%

94

%

Valaris Total

56

%

54

%

54

%

50

%

45

%

Pro Forma Jackups (2)

62

%

63

%

60

%

56

%

59

%

ARO

Owned Rigs

85

%

96

%

97

%

93

%

96

%

Leased Rigs (3)

86

%

83

%

85

%

53

%

98

%

ARO Total

86

%

89

%

90

%

70

%

97

%

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS(Unaudited)

Three Months Ended

September June March December September 30, 30, 31, 31, 30, 2021 2021 2021 2020 2020

UTILIZATION - TOTAL FLEET ^(1)

Floaters

Drillships 24 % 18 % 33 % 34 % 11 %

Semisubmersibles 39 % 30 % 20 % 11 % 11 %

28 % 22 % 29 % 26 % 11 %

Jackups

HD Ultra-Harsh & Harsh 72 % 58 % 50 % 44 % 48 %

HD & SD Modern 43 % 43 % 40 % 37 % 41 %

SD Legacy 74 % 93 % 100 % 100 % 99 %

57 % 54 % 50 % 46 % 50 %



Total 47 % 44 % 44 % 40 % 36 %



Other

Leased and Managed Rigs 100 % 100 % 100 % 100 % 94 %



Valaris Total 56 % 54 % 54 % 50 % 45 %



Pro Forma Jackups ^(2) 62 % 63 % 60 % 56 % 59 %



ARO

Owned Rigs 85 % 96 % 97 % 93 % 96 %

Leased Rigs^ (3) 86 % 83 % 85 % 53 % 98 %

ARO Total 86 % 89 % 90 % 70 % 97 %

(1)

Rig utilization is derived by dividing the number of operating days by the number of available days in the period for the total fleet.

(2)

Includes all Valaris jackups including those leased to ARO Drilling.

(3)

All ARO leased rigs are leased from Valaris and also included in Valaris leased and managed rigs utilization.

^ Rig utilization is derived by dividing the number of operating days by the(1) number of available days in the period for the total fleet.



^ Includes all Valaris jackups including those leased to ARO Drilling.(2)



^ All ARO leased rigs are leased from Valaris and also included in Valaris(3) leased and managed rigs utilization.

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (Unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

UTILIZATION - ACTIVE FLEET (1)

Floaters

Drillships

79

%

51

%

91

%

96

%

31

%

Semisubmersibles

64

%

50

%

33

%

20

%

19

%

73

%

51

%

66

%

63

%

26

%

Jackups

HD Ultra-Harsh & Harsh

84

%

82

%

92

%

67

%

78

%

HD & SD Modern

75

%

74

%

84

%

68

%

82

%

SD Legacy

87

%

93

%

100

%

100

%

75

%

80

%

80

%

90

%

73

%

79

%

Total

79

%

74

%

84

%

71

%

64

%

Other

Leased and Managed Rigs

100

%

100

%

100

%

100

%

94

%

Valaris Total

84

%

81

%

89

%

78

%

72

%

Pro Forma Jackups (2)

82

%

86

%

93

%

80

%

85

%

ARO

Owned Rigs

85

%

96

%

97

%

93

%

96

%

Leased Rigs (3)

86

%

83

%

85

%

53

%

98

%

ARO Total

86

%

89

%

90

%

70

%

97

%

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS(Unaudited)

Three Months Ended

September June March December September 30, 30, 31, 31, 30, 2021 2021 2021 2020 2020

UTILIZATION - ACTIVE FLEET^ (1)

Floaters

Drillships 79 % 51 % 91 % 96 % 31 %

Semisubmersibles 64 % 50 % 33 % 20 % 19 %

73 % 51 % 66 % 63 % 26 %

Jackups

HD Ultra-Harsh & Harsh 84 % 82 % 92 % 67 % 78 %

HD & SD Modern 75 % 74 % 84 % 68 % 82 %

SD Legacy 87 % 93 % 100 % 100 % 75 %

80 % 80 % 90 % 73 % 79 %



Total 79 % 74 % 84 % 71 % 64 %



Other

Leased and Managed Rigs 100 % 100 % 100 % 100 % 94 %



Valaris Total 84 % 81 % 89 % 78 % 72 %



Pro Forma Jackups ^(2) 82 % 86 % 93 % 80 % 85 %



ARO

Owned Rigs 85 % 96 % 97 % 93 % 96 %

Leased Rigs ^(3) 86 % 83 % 85 % 53 % 98 %

ARO Total 86 % 89 % 90 % 70 % 97 %

(1)

Rig utilization is derived by dividing the number of operating days by the number of available days in the period for the active fleet.

(2)

Includes all Valaris jackups including those leased to ARO Drilling.

(3)

All ARO leased rigs are leased from Valaris and also included in Valaris leased and managed rigs utilization.

^ Rig utilization is derived by dividing the number of operating days by the(1) number of available days in the period for the active fleet.



^ Includes all Valaris jackups including those leased to ARO Drilling.(2)



^ All ARO leased rigs are leased from Valaris and also included in Valaris(3) leased and managed rigs utilization.

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (Unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

REVENUE EFFICIENCY (1)

Floaters

Drillships

97.6

%

100.0

%

95.7

%

97.1

%

98.3

%

Semisubmersibles

96.7

%

100.0

%

100.0

%

100.0

%

100.0

%

97.3

%

100.0

%

98.2

%

98.8

%

98.9

%

Jackups

HD Ultra-Harsh & Harsh

99.5

%

100.0

%

95.1

%

95.7

%

92.1

%

HD & SD Modern

100.0

%

99.8

%

99.7

%

99.8

%

94.3

%

SD Legacy

99.0

%

96.9

%

100.0

%

100.0

%

100.0

%

99.6

%

99.0

%

99.3

%

99.1

%

95.2

%

Valaris Total

98.8

%

99.3

%

98.9

%

99.0

%

96.0

%

ARO

Owned Rigs

98.1

%

94.0

%

99.7

%

99.8

%

98.0

%

Leased Rigs

96.9

%

92.6

%

96.0

%

94.5

%

95.3

%

ARO Total

97.4

%

93.3

%

97.9

%

97.8

%

96.6

%

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS(Unaudited)

Three Months Ended

September June March December September 30, 30, 31, 31, 30, 2021 2021 2021 2020 2020

REVENUE EFFICIENCY ^(1)

Floaters

Drillships 97.6 % 100.0 % 95.7 % 97.1 % 98.3 %

Semisubmersibles 96.7 % 100.0 % 100.0 % 100.0 % 100.0 %

97.3 % 100.0 % 98.2 % 98.8 % 98.9 %

Jackups

HD Ultra-Harsh & 99.5 % 100.0 % 95.1 % 95.7 % 92.1 %Harsh

HD & SD Modern 100.0 % 99.8 % 99.7 % 99.8 % 94.3 %

SD Legacy 99.0 % 96.9 % 100.0 % 100.0 % 100.0 %

99.6 % 99.0 % 99.3 % 99.1 % 95.2 %



Valaris Total 98.8 % 99.3 % 98.9 % 99.0 % 96.0 %



ARO

Owned Rigs 98.1 % 94.0 % 99.7 % 99.8 % 98.0 %

Leased Rigs 96.9 % 92.6 % 96.0 % 94.5 % 95.3 %

ARO Total 97.4 % 93.3 % 97.9 % 97.8 % 96.6 %

(1)

Revenue efficiency is day rate revenue earned as a percentage of maximum potential day rate revenue.

^ Revenue efficiency is day rate revenue earned as a percentage of maximum(1) potential day rate revenue.

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (Unaudited)

As of

NUMBER OF RIGS

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

Active Fleet (1)

Floaters

Drillships

4

4

4

4

5

Semisubmersibles

3

3

3

3

4

7

7

7

7

9

Jackups

HD Ultra-Harsh & Harsh

10

10

9

9

9

HD & SD Modern

11

11

11

11

11

SD Legacy

3

4

4

4

6

24

25

24

24

26

Total Active Fleet

31

32

31

31

35

Stacked Fleet

Floaters

Drillships (2)

7

7

7

7

6

Semisubmersibles

2

2

2

2

2

9

9

9

9

8

Jackups

HD Ultra-Harsh & Harsh

1

2

4

4

4

HD & SD Modern

7

8

8

8

8

SD Legacy

1

-

-

-

-

9

10

12

12

12

Total Stacked Fleet

18

19

21

21

20

Leased Rigs (3)

Jackups

HD Ultra-Harsh & Harsh

1

1

1

1

1

HD & SD Modern

5

5

5

5

5

SD Legacy

2

3

3

3

3

Total Leased Rigs

8

9

9

9

9

Valaris Total

57

60

61

61

64

Managed Rigs (3)

2

2

2

2

2

ARO (4)

Owned Rigs

7

7

7

7

7

Leased Rigs

8

9

9

9

9

ARO Total

15

16

16

16

16

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS(Unaudited)

As of

September June March December SeptemberNUMBER OF RIGS 30, 30, 31, 31, 30, 2021 2021 2021 2020 2020

Active Fleet^ (1)

Floaters

Drillships 4 4 4 4 5

Semisubmersibles 3 3 3 3 4

7 7 7 7 9

Jackups

HD Ultra-Harsh & 10 10 9 9 9 Harsh

HD & SD Modern 11 11 11 11 11

SD Legacy 3 4 4 4 6

24 25 24 24 26



Total Active Fleet 31 32 31 31 35



Stacked Fleet

Floaters

Drillships ^(2) 7 7 7 7 6

Semisubmersibles 2 2 2 2 2

9 9 9 9 8

Jackups

HD Ultra-Harsh & 1 2 4 4 4 Harsh

HD & SD Modern 7 8 8 8 8

SD Legacy 1 - - - -

9 10 12 12 12



Total Stacked Fleet 18 19 21 21 20



Leased Rigs ^(3)

Jackups

HD Ultra-Harsh & 1 1 1 1 1 Harsh

HD & SD Modern 5 5 5 5 5

SD Legacy 2 3 3 3 3

Total Leased Rigs 8 9 9 9 9



Valaris Total 57 60 61 61 64



Managed Rigs ^(3) 2 2 2 2 2



ARO ^(4)

Owned Rigs 7 7 7 7 7

Leased Rigs 8 9 9 9 9

ARO Total 15 16 16 16 16

(1)

Active rigs are defined as rigs that are not preservation stacked.

(2)

Excludes VALARIS DS-13 and VALARIS DS-14, which Valaris has the option to purchase through year-end 2023. Prior periods have been revised to conform with the current treatment.

(3)

Leased rigs and managed rigs included in Other reporting segment.

(4)

Valaris has a 50% ownership interest in ARO. Rig count for ARO owned rigs excludes two newbuild rigs scheduled to be delivered in 2022. All ARO leased rigs are leased from Valaris and also included in Valaris leased rig count

^ Active rigs are defined as rigs that are not preservation stacked.(1)



^ Excludes VALARIS DS-13 and VALARIS DS-14, which Valaris has the option to(2) purchase through year-end 2023. Prior periods have been revised to conform with the current treatment.



^ Leased rigs and managed rigs included in Other reporting segment.(3)



Valaris has a 50% ownership interest in ARO. Rig count for ARO owned rigs^ excludes two newbuild rigs scheduled to be delivered in 2022. All ARO(4) leased rigs are leased from Valaris and also included in Valaris leased rig count

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (Unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

AVAILABLE DAYS - TOTAL FLEET (1)

Floaters

Drillships

1,196

1,001

990

1,043

1,274

Semisubmersibles

460

455

450

521

628

1,656

1,456

1,440

1,564

1,902

Jackups

HD Ultra-Harsh & Harsh

1,074

1,153

1,170

1,328

1,196

HD & SD Modern

1,748

1,729

1,710

1,810

1,828

SD Legacy

398

364

360

368

368

3,220

3,246

3,240

3,506

3,392

Total

4,876

4,702

4,680

5,070

5,294

Other

Leased and Managed Rigs

982

1,001

990

1,012

1,012

Valaris Total

5,858

5,703

5,670

6,082

6,306

ARO

Owned Rigs

644

637

630

644

644

Leased Rigs (2)

798

819

810

828

828

ARO Total

1,442

1,456

1,440

1,472

1,472

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS(Unaudited)

Three Months Ended

September June March December September 30, 30, 31, 31, 30, 2021 2021 2021 2020 2020

AVAILABLE DAYS - TOTAL FLEET ^(1)

Floaters

Drillships 1,196 1,001 990 1,043 1,274

Semisubmersibles 460 455 450 521 628

1,656 1,456 1,440 1,564 1,902

Jackups

HD Ultra-Harsh & Harsh 1,074 1,153 1,170 1,328 1,196

HD & SD Modern 1,748 1,729 1,710 1,810 1,828

SD Legacy 398 364 360 368 368

3,220 3,246 3,240 3,506 3,392



Total 4,876 4,702 4,680 5,070 5,294



Other

Leased and Managed Rigs 982 1,001 990 1,012 1,012



Valaris Total 5,858 5,703 5,670 6,082 6,306



ARO

Owned Rigs 644 637 630 644 644

Leased Rigs ^(2) 798 819 810 828 828

ARO Total 1,442 1,456 1,440 1,472 1,472

(1)

Represents the maximum number of days available in the period for the total fleet, calculated by multiplying the number of rigs in each asset category by the number of days in the period, irrespective of asset status.

(2)

All ARO leased rigs are leased from Valaris and also included in Valaris leased and managed rigs available days.

^ Represents the maximum number of days available in the period for the total(1) fleet, calculated by multiplying the number of rigs in each asset category by the number of days in the period, irrespective of asset status.



^ All ARO leased rigs are leased from Valaris and also included in Valaris(2) leased and managed rigs available days.

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (Unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

AVAILABLE DAYS - ACTIVE FLEET (1)

Floaters

Drillships

368

364

360

368

460

Semisubmersibles

276

273

270

276

368

644

637

630

644

828

Jackups

HD Ultra-Harsh & Harsh

920

819

630

867

736

HD & SD Modern

1,012

1,001

810

982

920

SD Legacy

337

364

360

368

490

2,269

2,184

1,800

2,217

2,146

Total

2,913

2,821

2,430

2,861

2,974

Other

Leased and Managed Rigs

982

1,001

990

1,012

1,012

Valaris Total

3,895

3,822

3,420

3,873

3,986

ARO

Owned Rigs

644

637

630

644

644

Leased Rigs (2)

798

819

810

828

828

ARO Total

1,442

1,456

1,440

1,472

1,472

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS(Unaudited)

Three Months Ended

September June March December September 30, 30, 31, 31, 30, 2021 2021 2021 2020 2020

AVAILABLE DAYS - ACTIVE FLEET ^(1)

Floaters

Drillships 368 364 360 368 460

Semisubmersibles 276 273 270 276 368

644 637 630 644 828

Jackups

HD Ultra-Harsh & Harsh 920 819 630 867 736

HD & SD Modern 1,012 1,001 810 982 920

SD Legacy 337 364 360 368 490

2,269 2,184 1,800 2,217 2,146



Total 2,913 2,821 2,430 2,861 2,974



Other

Leased and Managed Rigs 982 1,001 990 1,012 1,012



Valaris Total 3,895 3,822 3,420 3,873 3,986



ARO

Owned Rigs 644 637 630 644 644

Leased Rigs ^(2) 798 819 810 828 828

ARO Total 1,442 1,456 1,440 1,472 1,472

(1)

Represents the maximum number of days available in the period for the active fleet, calculated by multiplying the number of rigs in each asset category by the number of days in the period, for active rigs only. Active rigs are defined as rigs that are not preservation stacked.

(2)

All ARO leased rigs are leased from Valaris and also included in Valaris leased and managed rigs available days.

Represents the maximum number of days available in the period for the^ active fleet, calculated by multiplying the number of rigs in each asset(1) category by the number of days in the period, for active rigs only. Active rigs are defined as rigs that are not preservation stacked.



^ All ARO leased rigs are leased from Valaris and also included in Valaris(2) leased and managed rigs available days.

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (Unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

OPERATING DAYS (1)

Floaters

Drillships

290

185

329

352

142

Semisubmersibles

177

137

90

56

71

467

322

419

408

213

Jackups

HD Ultra-Harsh & Harsh

770

674

582

579

572

HD & SD Modern

759

742

683

669

750

SD Legacy

294

339

360

367

366

1,823

1,755

1,625

1,615

1,688

Total

2,290

2,077

2,044

2,023

1,901

Other

Leased and Managed Rigs

982

1,001

990

1,012

951

Valaris Total

3,272

3,078

3,034

3,035

2,852

ARO

Owned Rigs

549

609

609

599

619

Leased Rigs (2)

687

684

687

437

814

ARO Total

1,236

1,293

1,296

1,036

1,433

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS(Unaudited)

Three Months Ended

September June March December September 30, 30, 31, 31, 30, 2021 2021 2021 2020 2020

OPERATING DAYS ^(1)

Floaters

Drillships 290 185 329 352 142

Semisubmersibles 177 137 90 56 71

467 322 419 408 213

Jackups

HD Ultra-Harsh & 770 674 582 579 572 Harsh

HD & SD Modern 759 742 683 669 750

SD Legacy 294 339 360 367 366

1,823 1,755 1,625 1,615 1,688



Total 2,290 2,077 2,044 2,023 1,901



Other

Leased and Managed 982 1,001 990 1,012 951 Rigs



Valaris Total 3,272 3,078 3,034 3,035 2,852



ARO

Owned Rigs 549 609 609 599 619

Leased Rigs^ (2) 687 684 687 437 814

ARO Total 1,236 1,293 1,296 1,036 1,433

(1)

Represents the total number of days under contract in the period. Days under contract equals the total number of days that rigs have earned and recognized day rate revenue, including days associated with early contract terminations, compensated downtime and mobilizations. When revenue is deferred and amortized over a future period, for example when we receive fees while mobilizing to commence a new contract or while being upgraded in a shipyard, the related days are excluded from days under contract.

(2)

All ARO leased rigs are leased from Valaris and also included in Valaris leased and managed rigs operating days.

Represents the total number of days under contract in the period. Days under contract equals the total number of days that rigs have earned and^ recognized day rate revenue, including days associated with early contract(1) terminations, compensated downtime and mobilizations. When revenue is deferred and amortized over a future period, for example when we receive fees while mobilizing to commence a new contract or while being upgraded in a shipyard, the related days are excluded from days under contract.



^ All ARO leased rigs are leased from Valaris and also included in Valaris(2) leased and managed rigs operating days.

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS ($s in millions, unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

DRILLSHIPS

Adjusted revenues (1)

$

54.6

$

38.4

$

66.4

$

71.1

$

28.9

Adjusted operating expense (2)

46.8

41.6

52.8

62.0

77.6

Rig operating margin

7.8

(3.2

)

13.6

9.1

(48.7

)

Rig operating margin %

14

%

(8

)%

20

%

13

%

(169

)%

Other operating expenses

Depreciation

10.5

21.4

43.0

42.8

42.4

Loss on impairment

-

-

-

-

-

$

10.5

$

21.4

$

43.0

$

42.8

$

42.4

Other operating income (expense) (3)

(7.7

)

(8.8

)

(3.2

)

(6.9

)

106.7

Operating income (loss)

$

(10.4

)

$

(33.4

)

$

(32.6

)

$

(40.6

)

$

15.6

Adjusted EBITDA (4)

$

8.6

$

(2.5

)

$

16.1

$

5.1

$

68.3

Reactivation costs (5)

0.3

-

-

-

-

Adjusted EBITDAR

$

8.9

$

(2.5

)

$

16.1

$

5.1

$

68.3

Preservation and stacking costs (5)

$

8.3

$

8.9

$

11.3

$

16.3

$

33.9

Number of Rigs (at quarter end)

Total Fleet

11

11

11

11

11

Active Fleet

4

4

4

4

5

Operating Days

290

185

329

352

142

Utilization - Active Fleet

79

%

51

%

91

%

96

%

31

%

Average Day Rate

$

189,000

$

212,000

$

208,000

$

214,000

$

155,000

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS($s in millions, unaudited)

Three Months Ended

September June 30, March 31, December September 30, 2021 2021 31, 30, 2021 2020 2020

DRILLSHIPS



Adjustedrevenues ^ $ 54.6 $ 38.4 $ 66.4 $ 71.1 $ 28.9 (1)

Adjustedoperating 46.8 41.6 52.8 62.0 77.6 expense ^(2)



Rigoperating 7.8 (3.2 ) 13.6 9.1 (48.7 )margin

Rig ) )operating 14 % (8 % 20 % 13 % (169 %margin %



Otheroperating expenses

Depreciation 10.5 21.4 43.0 42.8 42.4

Loss on - - - - - impairment

$ 10.5 $ 21.4 $ 43.0 $ 42.8 $ 42.4



Otheroperatingincome (7.7 ) (8.8 ) (3.2 ) (6.9 ) 106.7 (expense)^(3)



Operatingincome $ (10.4 ) $ (33.4 ) $ (32.6 ) $ (40.6 ) $ 15.6 (loss)



Adjusted $ 8.6 $ (2.5 ) $ 16.1 $ 5.1 $ 68.3 EBITDA ^(4)

Reactivation 0.3 - - - - costs ^(5)

Adjusted $ 8.9 $ (2.5 ) $ 16.1 $ 5.1 $ 68.3 EBITDAR



Preservationand stacking $ 8.3 $ 8.9 $ 11.3 $ 16.3 $ 33.9 costs ^(5)



Number ofRigs (at quarter end)

Total Fleet 11 11 11 11 11

Active Fleet 4 4 4 4 5



Operating 290 185 329 352 142 Days

Utilization- Active 79 % 51 % 91 % 96 % 31 %Fleet

Average Day $ 189,000 $ 212,000 $ 208,000 $ 214,000 $ 155,000 Rate

(1)

Revenues exclusive of amortization and reimbursable items.

(2)

Operating expense exclusive of depreciation, amortization, reimbursable items, bad debt expense and onshore support costs.

(3)

Other operating income (expense) includes reimbursable revenue and expense, amortized revenue and expense, bad debt expense, gain or loss on sale of assets and other miscellaneous items. Other operating income in the quarter ended September 30, 2020 primarily relates to loss of hire insurance for VALARIS DS-8 following termination of a contract.

(4)

Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.

(5)

Included in rig operating expense.

^ Revenues exclusive of amortization and reimbursable items.(1)



^ Operating expense exclusive of depreciation, amortization, reimbursable(2) items, bad debt expense and onshore support costs.



Other operating income (expense) includes reimbursable revenue and expense,^ amortized revenue and expense, bad debt expense, gain or loss on sale of(3) assets and other miscellaneous items. Other operating income in the quarter ended September 30, 2020 primarily relates to loss of hire insurance for VALARIS DS-8 following termination of a contract.



^ Adjusted EBITDA for asset category excludes onshore support costs and(4) general and administrative expense.



^ Included in rig operating expense.(5)

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS ($s in millions, unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

SEMISUBMERSIBLES

Adjusted revenues (1)

$

32.7

$

23.7

$

14.1

$

9.4

$

18.9

Adjusted operating expense (2)

25.9

17.4

20.9

21.8

30.1

Rig operating margin

6.8

6.3

(6.8

)

(12.4

)

(11.2

)

Rig operating margin %

21

%

27

%

(48

)%

(132

)%

(59

)%

Other operating expenses

Depreciation

0.8

2.2

12.9

12.7

13.2

Loss on impairment

-

-

756.5

-

-

$

0.8

$

2.2

$

769.4

$

12.7

$

13.2

Other operating income (expense) (3)

(5.4

)

(5.9

)

(5.1

)

(4.9

)

(0.1

)

Operating income (loss)

$

0.6

$

(1.8

)

$

(781.3

)

$

(30.0

)

$

(24.5

)

Adjusted EBITDA (4)

$

7.2

$

6.4

$

(6.7

)

$

(12.7

)

$

(10.2

)

Reactivation costs (5)

1.1

0.1

5.7

1.2

0.9

Adjusted EBITDAR

$

8.3

$

6.5

$

(1.0

)

$

(11.5

)

$

(9.3

)

Preservation and stacking costs (5)

$

1.4

$

1.4

$

1.6

$

3.6

$

7.9

Number of Rigs (at quarter end)

Total Fleet

5

5

5

5

6

Active Fleet

3

3

3

3

4

Operating Days

177

137

90

56

71

Utilization - Active Fleet

64

%

50

%

33

%

20

%

19

%

Average Day Rate

$

191,000

$

178,000

$

164,000

$

160,000

$

262,000

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS($s in millions, unaudited)

Three Months Ended

September June 30, March 31, December September 30, 2021 2021 31, 30, 2021 2020 2020

SEMISUBMERSIBLES



Adjusted $ 32.7 $ 23.7 $ 14.1 $ 9.4 $ 18.9 revenues ^(1)

Adjustedoperating 25.9 17.4 20.9 21.8 30.1 expense ^(2)



Rig operating 6.8 6.3 (6.8 ) (12.4 ) (11.2 )margin

Rig operating 21 % 27 % (48 ) (132 ) (59 )margin % % % %



Other operating expenses

Depreciation 0.8 2.2 12.9 12.7 13.2

Loss on - - 756.5 - - impairment

$ 0.8 $ 2.2 $ 769.4 $ 12.7 $ 13.2



Other operatingincome (expense) (5.4 ) (5.9 ) (5.1 ) (4.9 ) (0.1 )^ (3)



Operating income $ 0.6 $ (1.8 ) $ (781.3 ) $ (30.0 ) $ (24.5 )(loss)



Adjusted EBITDA $ 7.2 $ 6.4 $ (6.7 ) $ (12.7 ) $ (10.2 )^(4)

Reactivation 1.1 0.1 5.7 1.2 0.9 costs ^(5)

Adjusted EBITDAR $ 8.3 $ 6.5 $ (1.0 ) $ (11.5 ) $ (9.3 )



Preservation andstacking costs ^ $ 1.4 $ 1.4 $ 1.6 $ 3.6 $ 7.9 (5)



Number of Rigs (at quarter end)

Total Fleet 5 5 5 5 6

Active Fleet 3 3 3 3 4



Operating Days 177 137 90 56 71

Utilization - 64 % 50 % 33 % 20 % 19 %Active Fleet

Average Day Rate $ 191,000 $ 178,000 $ 164,000 $ 160,000 $ 262,000

(1)

Revenues exclusive of amortization and reimbursable items.

(2)

Operating expense exclusive of depreciation, amortization, reimbursable items, bad debt expense and onshore support costs.

(3)

Other operating income (expense) includes reimbursable revenue and expense, amortized revenue and expense, bad debt expense, gain or loss on sale of assets and other miscellaneous items.

(4)

Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.

(5)

Included in rig operating expense.

^ Revenues exclusive of amortization and reimbursable items.(1)



^ Operating expense exclusive of depreciation, amortization, reimbursable(2) items, bad debt expense and onshore support costs.



^ Other operating income (expense) includes reimbursable revenue and expense,(3) amortized revenue and expense, bad debt expense, gain or loss on sale of assets and other miscellaneous items.



^ Adjusted EBITDA for asset category excludes onshore support costs and(4) general and administrative expense.



^ Included in rig operating expense.(5)

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS ($s in millions, unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

HD ULTRA-HARSH &HARSH JACKUPS

Adjusted revenues (1)

$

90.8

$

90.3

$

82.4

$

76.4

$

80.4

Adjusted operating expense (2)

68.8

71.3

55.2

62.2

60.0

Rig operating margin

22.0

19.0

27.2

14.2

20.4

Rig operating margin %

24

%

21

%

33

%

19

%

25

%

Other operating expenses

Depreciation

8.0

13.7

26.9

27.4

26.7

Loss on impairment

-

-

-

-

-

$

8.0

$

13.7

$

26.9

$

27.4

$

26.7

Other operating income (expense) (3)

(1.7

)

3.4

(1.7

)

(5.7

)

(7.6

)

Operating income (loss)

$

12.3

$

8.7

$

(1.4

)

$

(18.9

)

$

(13.9

)

Adjusted EBITDA (4)

$

25.1

$

22.2

$

29.3

$

16.5

$

22.5

Reactivation costs (5)

13.6

20.1

1.7

0.1

-

Adjusted EBITDAR

$

38.7

$

42.3

$

31.0

$

16.6

$

22.5

Preservation and stacking costs (5)

$

0.1

$

1.3

$

2.8

$

4.2

$

6.0

Number of Rigs (at quarter end)

Total Fleet

11

12

13

13

13

Active Fleet

10

10

9

9

9

Operating Days

770

674

582

579

572

Utilization - Active Fleet

84

%

82

%

92

%

67

%

78

%

Average Day Rate

$

124,000

$

141,000

$

140,000

$

120,000

$

138,000

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS($s in millions, unaudited)

Three Months Ended

September June 30, March 31, December September 30, 2021 2021 31, 30, 2021 2020 2020

HDULTRA-HARSH& HARSHJACKUPS



Adjustedrevenues ^ $ 90.8 $ 90.3 $ 82.4 $ 76.4 $ 80.4 (1)

Adjustedoperating 68.8 71.3 55.2 62.2 60.0 expense ^(2)



Rigoperating 22.0 19.0 27.2 14.2 20.4 margin

Rigoperating 24 % 21 % 33 % 19 % 25 %margin %



Otheroperating expenses

Depreciation 8.0 13.7 26.9 27.4 26.7

Loss on - - - - - impairment

$ 8.0 $ 13.7 $ 26.9 $ 27.4 $ 26.7



Otheroperatingincome (1.7 ) 3.4 (1.7 ) (5.7 ) (7.6 )(expense)^(3)



Operatingincome $ 12.3 $ 8.7 $ (1.4 ) $ (18.9 ) $ (13.9 )(loss)



Adjusted $ 25.1 $ 22.2 $ 29.3 $ 16.5 $ 22.5 EBITDA^ (4)

Reactivation 13.6 20.1 1.7 0.1 - costs ^(5)

Adjusted $ 38.7 $ 42.3 $ 31.0 $ 16.6 $ 22.5 EBITDAR



Preservationand stacking $ 0.1 $ 1.3 $ 2.8 $ 4.2 $ 6.0 costs ^(5)



Number ofRigs (at quarter end)

Total Fleet 11 12 13 13 13

Active Fleet 10 10 9 9 9



Operating 770 674 582 579 572 Days

Utilization- Active 84 % 82 % 92 % 67 % 78 %Fleet

Average Day $ 124,000 $ 141,000 $ 140,000 $ 120,000 $ 138,000 Rate

(1)

Revenues exclusive of amortization and reimbursable items.

(2)

Operating expense exclusive of depreciation, amortization, reimbursable items, bad debt expense and onshore support costs.

(3)

Other operating income (expense) includes reimbursable revenue and expense, amortized revenue and expense, bad debt expense, gain or loss on sale of assets and other miscellaneous items.

(4)

Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.

(5)

Included in rig operating expense.

^ Revenues exclusive of amortization and reimbursable items.(1)



^ Operating expense exclusive of depreciation, amortization, reimbursable(2) items, bad debt expense and onshore support costs.



^ Other operating income (expense) includes reimbursable revenue and expense,(3) amortized revenue and expense, bad debt expense, gain or loss on sale of assets and other miscellaneous items.



^ Adjusted EBITDA for asset category excludes onshore support costs and(4) general and administrative expense.



^ Included in rig operating expense.(5)

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS ($s in millions, unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

HD & SD MODERN JACKUPS

Adjusted revenues (1)

$

53.3

$

49.8

$

44.7

$

51.6

$

60.4

Adjusted operating expense (2)

44.9

49.2

38.8

45.1

46.4

Rig operating margin

8.4

0.6

5.9

6.5

14.0

Rig operating margin %

16

%

1

%

13

%

13

%

23

%

Other operating expenses

Depreciation

3.0

9.6

22.4

22.5

22.4

Loss on impairment

-

-

-

-

-

$

3.0

$

9.6

$

22.4

$

22.5

$

22.4

Other operating income (expense) (3)

(3.3)

(2.6)

(4.9)

(6.0)

(7.0)

Operating income (loss)

$

2.1

$

(11.6)

$

(21.4)

$

(22.0)

$

(15.4)

Adjusted EBITDA (4)

$

11.2

$

2.9

$

8.3

$

9.8

$

16.3

Reactivation costs (5)

4.4

3.8

3.7

0.3

-

Adjusted EBITDAR

$

15.6

$

6.7

$

12.0

$

10.1

$

16.3

Preservation and stacking costs (5)

$

0.5

$

5.5

$

2.0

$

7.4

$

8.1

Number of Rigs (at quarter end)

Total Fleet

18

19

19

19

19

Active Fleet

11

11

11

11

11

Operating Days

759

742

683

669

750

Utilization - Active Fleet

75

%

74

%

84

%

68

%

82

%

Average Day Rate

$

77,000

$

73,000

$

70,000

$

74,000

$

73,000

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS($s in millions, unaudited)

Three Months Ended

September June 30, March 31, December September 30, 2021 2021 31, 30, 2021 2020 2020

HD & SD MODERN JACKUPS



Adjusted $ 53.3 $ 49.8 $ 44.7 $ 51.6 $ 60.4 revenues ^(1)

Adjustedoperating 44.9 49.2 38.8 45.1 46.4 expense ^(2)



Rig operating 8.4 0.6 5.9 6.5 14.0 margin

Rig operating 16 % 1 % 13 % 13 % 23 %margin %



Other operating expenses

Depreciation 3.0 9.6 22.4 22.5 22.4

Loss on - - - - - impairment

$ 3.0 $ 9.6 $ 22.4 $ 22.5 $ 22.4



Other operatingincome (expense) (3.3) (2.6) (4.9) (6.0) (7.0) ^ (3)



Operating income $ 2.1 $ (11.6) $ (21.4) $ (22.0) $ (15.4) (loss)



Adjusted EBITDA^ $ 11.2 $ 2.9 $ 8.3 $ 9.8 $ 16.3 (4)

Reactivation 4.4 3.8 3.7 0.3 - costs ^(5)

Adjusted EBITDAR $ 15.6 $ 6.7 $ 12.0 $ 10.1 $ 16.3



Preservation andstacking costs ^ $ 0.5 $ 5.5 $ 2.0 $ 7.4 $ 8.1 (5)



Number of Rigs (at quarter end)

Total Fleet 18 19 19 19 19

Active Fleet 11 11 11 11 11



Operating Days 759 742 683 669 750

Utilization - 75 % 74 % 84 % 68 % 82 %Active Fleet

Average Day Rate $ 77,000 $ 73,000 $ 70,000 $ 74,000 $ 73,000

(1)

Revenues exclusive of amortization and reimbursable items.

(2)

Operating expense exclusive of depreciation, amortization, reimbursable items, bad debt expense and onshore support costs.

(3)

Other operating income (expense) includes reimbursable revenue and expense, amortized revenue and expense, bad debt expense, gain or loss on sale of assets and other miscellaneous items.

(4)

Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.

(5)

Included in rig operating expense.

^ Revenues exclusive of amortization and reimbursable items.(1)



^ Operating expense exclusive of depreciation, amortization, reimbursable(2) items, bad debt expense and onshore support costs.



^ Other operating income (expense) includes reimbursable revenue and expense,(3) amortized revenue and expense, bad debt expense, gain or loss on sale of assets and other miscellaneous items.



^ Adjusted EBITDA for asset category excludes onshore support costs and(4) general and administrative expense.



^ Included in rig operating expense.(5)

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS ($s in millions, unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

SD LEGACY JACKUPS

Adjusted revenues (1)

$

22.6

$

23.5

$

24.6

$

19.4

$

25.5

Adjusted operating expense (2)

14.2

11.8

12.1

12.3

15.9

Rig operating margin

8.4

11.7

12.5

7.1

9.6

Rig operating margin %

37

%

50

%

51

%

37

%

38

%

Other operating expenses

Depreciation

0.9

1.6

2.8

2.7

3.5

Loss on impairment

-

-

-

-

-

$

0.9

$

1.6

$

2.8

$

2.7

$

3.5

Other operating income (expense) (3)

(1.3

)

(2.1

)

(1.8

)

(1.2

)

(2.9

)

Operating income (loss)

$

6.2

$

8.0

$

7.9

$

3.2

$

3.2

Adjusted EBITDA (4)

$

9.0

$

12.0

$

13.0

$

7.3

$

10.2

Reactivation costs (5)

-

-

-

-

-

Adjusted EBITDAR

$

9.0

$

12.0

$

13.0

$

7.3

$

10.2

Preservation and stacking costs (5)

$

2.3

$

-

$

-

$

-

$

-

Number of Rigs (at quarter end)

Total Fleet

4

4

4

4

6

Active Fleet

3

4

4

4

6

Operating Days

294

339

360

367

366

Utilization - Active Fleet

87

%

93

%

100

%

100

%

75

%

Average Day Rate

$

74,000

$

72,000

$

70,000

$

55,000

$

65,000

VALARIS LIMITED AND SUBSIDIARIESOPERATING STATISTICS($s in millions, unaudited)

Three Months Ended

September June 30, March 31, December September 30, 2021 2021 31, 30, 2021 2020 2020

SD LEGACY JACKUPS



Adjusted $ 22.6 $ 23.5 $ 24.6 $ 19.4 $ 25.5 revenues ^(1)

Adjustedoperating 14.2 11.8 12.1 12.3 15.9 expense ^(2)



Rig operating 8.4 11.7 12.5 7.1 9.6 margin

Rig operating 37 % 50 % 51 % 37 % 38 %margin %



Other operating expenses

Depreciation 0.9 1.6 2.8 2.7 3.5

Loss on - - - - - impairment

$ 0.9 $ 1.6 $ 2.8 $ 2.7 $ 3.5



Other operatingincome (expense) (1.3 ) (2.1 ) (1.8 ) (1.2 ) (2.9 )^ (3)



Operating income $ 6.2 $ 8.0 $ 7.9 $ 3.2 $ 3.2 (loss)



Adjusted EBITDA^ $ 9.0 $ 12.0 $ 13.0 $ 7.3 $ 10.2 (4)

Reactivation - - - - - costs ^(5)

Adjusted EBITDAR $ 9.0 $ 12.0 $ 13.0 $ 7.3 $ 10.2



Preservation andstacking costs ^ $ 2.3 $ - $ - $ - $ - (5)



Number of Rigs (at quarter end)

Total Fleet 4 4 4 4 6

Active Fleet 3 4 4 4 6



Operating Days 294 339 360 367 366

Utilization - 87 % 93 % 100 % 100 % 75 %Active Fleet

Average Day Rate $ 74,000 $ 72,000 $ 70,000 $ 55,000 $ 65,000

(1)

Revenues exclusive of amortization and reimbursable items.

(2)

Operating expense exclusive of depreciation, amortization, reimbursable items, bad debt expense and onshore support costs.

(3)

Other operating income (expense) includes reimbursable revenue and expense, amortized revenue and expense, bad debt expense, gain or loss on sale of assets and other miscellaneous items.

(4)

Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.

(5)

Included in rig operating expense.

^ Revenues exclusive of amortization and reimbursable items.(1)



^ Operating expense exclusive of depreciation, amortization, reimbursable(2) items, bad debt expense and onshore support costs.



^ Other operating income (expense) includes reimbursable revenue and expense,(3) amortized revenue and expense, bad debt expense, gain or loss on sale of assets and other miscellaneous items.



^ Adjusted EBITDA for asset category excludes onshore support costs and(4) general and administrative expense.



^ Included in rig operating expense.(5)

ARO DRILLING CONDENSED BALANCE SHEET INFORMATION (In millions, unaudited)

As of

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

Cash

$

309.0

$

318.2

$

275.4

$

237.7

$

270.5

Other current assets

98.0

81.7

89.2

120.9

121.4

Non-current assets

776.1

782.8

789.0

804.0

898.2

Total assets

$

1,183.1

$

1,182.7

$

1,153.6

$

1,162.6

$

1,290.1

Current liabilities

$

77.1

$

74.9

$

52.3

$

70.8

$

230.8

Non-current liabilities

951.0

950.3

952.1

950.8

940.8

Total liabilities

$

1,028.1

$

1,025.2

$

1,004.4

$

1,021.6

$

1,171.6

Shareholders' equity

$

155.0

$

157.5

$

149.2

$

141.0

$

118.5

Total liabilities and shareholders' equity

$

1,183.1

$

1,182.7

$

1,153.6

$

1,162.6

$

1,290.1

ARO DRILLINGCONDENSED BALANCE SHEET INFORMATION(In millions, unaudited)

As of

September June 30, March 31, December September 30, 2021 2021 31, 30, 2021 2020 2020

Cash $ 309.0 $ 318.2 $ 275.4 $ 237.7 $ 270.5

Other current 98.0 81.7 89.2 120.9 121.4 assets

Non-current 776.1 782.8 789.0 804.0 898.2 assets

Total assets $ 1,183.1 $ 1,182.7 $ 1,153.6 $ 1,162.6 $ 1,290.1



Current $ 77.1 $ 74.9 $ 52.3 $ 70.8 $ 230.8 liabilities

Non-current 951.0 950.3 952.1 950.8 940.8 liabilities

Total $ 1,028.1 $ 1,025.2 $ 1,004.4 $ 1,021.6 $ 1,171.6 liabilities



Shareholders' $ 155.0 $ 157.5 $ 149.2 $ 141.0 $ 118.5 equity



Totalliabilitiesand $ 1,183.1 $ 1,182.7 $ 1,153.6 $ 1,162.6 $ 1,290.1 shareholders'equity



ARO DRILLING CONDENSED INCOME STATEMENT INFORMATION (In millions, unaudited)

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

Revenues

$

117.7

$

124.8

$

122.7

$

117.5

$

145.6

Operating expenses

Contract drilling (exclusive of depreciation)

94.4

92.7

86.3

68.4

99.0

Depreciation

16.8

14.6

16.1

13.7

14.8

General and administrative

5.4

4.3

3.0

3.0

5.8

Operating income

$

1.1

$

13.2

$

17.3

$

32.4

$

26.0

Other expense, net

3.4

3.1

4.5

6.7

6.7

Provision (benefit) for income taxes

0.2

1.9

4.5

19.6

(6.1

)

Net income (loss)

$

(2.5

)

$

8.2

$

8.3

$

6.1

$

25.4

EBITDA

$

17.9

$

27.8

$

33.4

$

46.1

$

40.8

Non-GAAP Financial Measures (Unaudited)

To supplement Valaris' condensed consolidated financial statements presented on a GAAP basis, this press release provides investors with adjusted EBITDA and adjusted EBITDAR, which are non-GAAP measures.

Valaris defines "Adjusted EBITDA" as net loss from continuing operations before income tax expense, interest expense, reorganization items, net, other (income) expense, depreciation expense, amortization, net, loss on impairment, equity in earnings of ARO, (gain) loss on asset disposals, merger transaction and integration costs and lease modification adjustment. Adjusted EBITDA is a non-GAAP measure that our management uses to facilitate period-to-period comparisons of our core operating performance and to evaluate our long-term financial performance against that of our peers. We believe that this measure is useful to investors and analysts in allowing for greater transparency of our core operating performance and makes it easier to compare our results with those of other companies within our industry. Adjusted EBITDA should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities, or (c) as a measure of liquidity. Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies.

Valaris defines "Adjusted EBITDAR" as Adjusted EBITDA before reactivation costs. Adjusted EBITDAR is a non-GAAP measure that our management uses to assess the performance of our fleet excluding one-time rig reactivation costs. We believe that this measure is useful to investors and analysts in allowing for greater transparency of our core operating performance. Adjusted EBITDAR should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities, or (c) as a measure of liquidity. Adjusted EBITDAR may not be comparable to other similarly titled measures reported by other companies.

Valaris defines ARO "EBITDA" as net income before income tax expense, other expense, net and depreciation expense. EBITDA is a non-GAAP measure that our management uses to facilitate period-to-period comparisons of ARO's core operating performance and to evaluate ARO's long-term financial performance against that of ARO's peers. We believe that this measure is useful to investors and analysts in allowing for greater transparency of ARO's core operating performance and makes it easier to compare ARO's results with those of other companies within ARO's industry. EBITDA should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities, or (c) as a measure of liquidity. EBITDA may not be comparable to other similarly titled measures reported by other companies.

Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

ARO DRILLINGCONDENSED INCOME STATEMENT INFORMATION(In millions, unaudited)

Three Months Ended

September June 30, March 31, December September 30, 2021 2021 31, 30, 2021 2020 2020

Revenues $ 117.7 $ 124.8 $ 122.7 $ 117.5 $ 145.6

Operating expenses

Contract drilling(exclusive of 94.4 92.7 86.3 68.4 99.0 depreciation)

Depreciation 16.8 14.6 16.1 13.7 14.8

General and 5.4 4.3 3.0 3.0 5.8 administrative

Operating income $ 1.1 $ 13.2 $ 17.3 $ 32.4 $ 26.0

Other expense, net 3.4 3.1 4.5 6.7 6.7

Provision (benefit) 0.2 1.9 4.5 19.6 (6.1 )for income taxes

Net income (loss) $ (2.5 ) $ 8.2 $ 8.3 $ 6.1 $ 25.4



EBITDA $ 17.9 $ 27.8 $ 33.4 $ 46.1 $ 40.8

Non-GAAP Financial Measures (Unaudited)

To supplement Valaris' condensed consolidated financial statements presented on a GAAP basis, this press release provides investors with adjusted EBITDA and adjusted EBITDAR, which are non-GAAP measures.

Valaris defines "Adjusted EBITDA" as net loss from continuing operations before income tax expense, interest expense, reorganization items, net, other (income) expense, depreciation expense, amortization, net, loss on impairment, equity in earnings of ARO, (gain) loss on asset disposals, merger transaction and integration costs and lease modification adjustment. Adjusted EBITDA is a non-GAAP measure that our management uses to facilitate period-to-period comparisons of our core operating performance and to evaluate our long-term financial performance against that of our peers. We believe that this measure is useful to investors and analysts in allowing for greater transparency of our core operating performance and makes it easier to compare our results with those of other companies within our industry. Adjusted EBITDA should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities, or (c) as a measure of liquidity. Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies.

Valaris defines "Adjusted EBITDAR" as Adjusted EBITDA before reactivation costs. Adjusted EBITDAR is a non-GAAP measure that our management uses to assess the performance of our fleet excluding one-time rig reactivation costs. We believe that this measure is useful to investors and analysts in allowing for greater transparency of our core operating performance. Adjusted EBITDAR should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities, or (c) as a measure of liquidity. Adjusted EBITDAR may not be comparable to other similarly titled measures reported by other companies.

Valaris defines ARO "EBITDA" as net income before income tax expense, other expense, net and depreciation expense. EBITDA is a non-GAAP measure that our management uses to facilitate period-to-period comparisons of ARO's core operating performance and to evaluate ARO's long-term financial performance against that of ARO's peers. We believe that this measure is useful to investors and analysts in allowing for greater transparency of ARO's core operating performance and makes it easier to compare ARO's results with those of other companies within ARO's industry. EBITDA should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities, or (c) as a measure of liquidity. EBITDA may not be comparable to other similarly titled measures reported by other companies.

Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures prepared in accordance with GAAP.

Reconciliation of Net Loss to Adjusted EBITDA

A reconciliation of net loss as reported to Adjusted EBITDA is included in thetables below (in millions):

Successor Predecessor Combined (Non-GAAP)

Three Two Months Months One Month Three Months Ended Ended Ended Ended September June 30, April 30, June 30, 30, 2021 2021 2021 2021



VALARIS

Net loss $ (52.8 ) $ (4.1 ) $ (3,556.2 ) $ (3,560.3 )

Add (subtract):

Income tax expense (benefit) 53.3 15.1 (15.5 ) (0.4 )

Interest expense 11.3 8.0 1.1 9.1

Reorganization items 6.5 4.1 3,532.4 3,536.5

Other income (14.9 ) (13.5 ) 0.2 (13.3 )

Operating income (loss) 3.4 9.6 (38.0 ) (28.4 )

Add (subtract):

Depreciation expense 24.4 16.6 37.5 54.1

Amortization, net ^(1) 3.1 (0.3 ) (0.2 ) (0.5 )

Merger transaction and 1.8 1.0 0.9 1.9 integration costs

Equity in (earnings) losses of (2.6 ) (4.8 ) (1.2 ) (6.0 )ARO

(Gain) loss on asset disposals (0.3 ) 0.1 (4.6 ) (4.5 )

Adjusted EBITDA $ 29.8 $ 22.2 $ (5.6 ) $ 16.6

(1)

Amortization, net, includes amortization during the indicated period for deferred mobilization revenues and costs, deferred capital upgrade revenues, deferred certification costs, intangible amortization and other amortization.

Amortization, net, includes amortization during the indicated period for^ deferred mobilization revenues and costs, deferred capital upgrade(1) revenues, deferred certification costs, intangible amortization and other amortization.

Three Months Ended

September 30, 2021

June 30, 2021

March 31, 2021

December 31, 2020

September 30, 2020

ARO

Net Income

$

(2.5

)

$

8.2

$

8.3

$

6.1

$

25.4

Add (subtract):

Income tax expense (benefit)

0.2

1.9

4.5

19.6

(6.1

)

Other expense, net

3.4

3.1

4.5

6.7

6.7

Operating income

$

1.1

$

13.2

$

17.3

$

32.4

$

26.0

Add (subtract):

Depreciation expense

16.8

14.6

16.1

13.7

14.8

EBITDA

$

17.9

$

27.8

$

33.4

$

46.1

$

40.8

Three Months Ended

September June 30, March December September 30, 2021 31, 31, 30, 2021 2021 2020 2020



ARO

Net Income $ (2.5 ) $ 8.2 $ 8.3 $ 6.1 $ 25.4

Add (subtract):

Income tax expense 0.2 1.9 4.5 19.6 (6.1 )(benefit)

Other expense, net 3.4 3.1 4.5 6.7 6.7

Operating income $ 1.1 $ 13.2 $ 17.3 $ 32.4 $ 26.0



Add (subtract):

Depreciation expense 16.8 14.6 16.1 13.7 14.8

EBITDA $ 17.9 $ 27.8 $ 33.4 $ 46.1 $ 40.8



Reconciliation of Successor and Predecessor Periods to Combined Non-GAAP Period

A reconciliation of the two months ended June 30, 2021 (Successor period) and one month ended April 30, 2021 (Predecessor period) to the three months ended June 30, 2021 (Combined second quarter):

Second Quarter

Floaters

Jackups

ARO

Other

Reconciling Items

Consolidated Total

Successor

Predecessor

Combined (Non-GAAP)

Successor

Predecessor

Combined (Non-GAAP)

Successor

Predecessor

Combined (Non-GAAP)

Successor

Predecessor

Combined (Non-GAAP)

Successor

Predecessor

Combined (Non-GAAP)

Successor

Predecessor

Combined (Non-GAAP)

(in millions of $, except %)

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

Revenues

49.7

18.4

68.1

128.5

59.8

188.3

84.0

40.8

124.8

24.6

12.1

36.7

(84.0

)

(40.8

)

(124.8

)

202.8

90.3

293.1

Operating expenses

Contract drilling

45.2

21.7

66.9

95.5

48.8

144.3

62.9

29.8

92.7

9.2

4.7

13.9

(44.1

)

(19.4

)

(63.5

)

168.7

85.6

254.3

Depreciation

7.9

15.9

23.8

7.8

17.3

25.1

9.7

4.9

14.6

0.8

3.5

4.3

(9.6

)

(4.1

)

(13.7

)

16.6

37.5

54.1

General and admin.

-

-

-

-

-

-

3.1

1.2

4.3

-

-

-

9.6

5.2

14.8

12.7

6.4

19.1

Equity in earnings of ARO

-

-

-

-

-

-

-

-

-

-

-

-

4.8

1.2

6.0

4.8

1.2

6.0

Operating income (loss)

(3.4

)

(19.2

)

(22.6

)

25.2

(6.3

)

18.9

8.3

4.9

13.2

14.6

3.9

18.5

(35.1

)

(21.3

)

(56.4

)

9.6

(38.0

)

(28.4

)

Reconciliation of Successor and Predecessor Periods to Combined Non-GAAP Period

A reconciliation of the two months ended June 30, 2021 (Successor period) andone month ended April 30, 2021 (Predecessor period) to the three months endedJune 30, 2021 (Combined second quarter):

Second Quarter

Floaters Jackups ARO Other Reconciling Items Consolidated Total

Successor Predecessor Combined Successor Predecessor Combined Successor Predecessor Combined Successor Predecessor Combined Successor Predecessor Combined Successor Predecessor Combined (Non-GAAP) (Non-GAAP) (Non-GAAP) (Non-GAAP) (Non-GAAP) (Non-GAAP)

Two Two Two Two Two One Three Two One Three(in millions Months One Month Three Months One Month Three Months One Month Three Months One Month Three Months Month Months Months Month Monthsof $, except Ended Ended April Months Ended Ended April Months Ended Ended April Months Ended Ended April Months Ended Ended Ended Ended Ended Ended%) June 30, 30, 2021 Ended June June 30, 30, 2021 Ended June June 30, 30, 2021 Ended June June 30, 30, 2021 Ended June June April June 30, June April June 2021 30, 2021 2021 30, 2021 2021 30, 2021 2021 30, 2021 30, 30, 2021 30, 30, 30, 2021 2021 2021 2021 2021



Revenues 49.7 18.4 68.1 128.5 59.8 188.3 84.0 40.8 124.8 24.6 12.1 36.7 (84.0 ) (40.8 ) (124.8 ) 202.8 90.3 293.1

Operating expenses

Contract 45.2 21.7 66.9 95.5 48.8 144.3 62.9 29.8 92.7 9.2 4.7 13.9 (44.1 ) (19.4 ) (63.5 ) 168.7 85.6 254.3 drilling

Depreciation 7.9 15.9 23.8 7.8 17.3 25.1 9.7 4.9 14.6 0.8 3.5 4.3 (9.6 ) (4.1 ) (13.7 ) 16.6 37.5 54.1

General and - - - - - - 3.1 1.2 4.3 - - - 9.6 5.2 14.8 12.7 6.4 19.1 admin.

Equity inearnings of - - - - - - - - - - - - 4.8 1.2 6.0 4.8 1.2 6.0 ARO

Operatingincome (3.4 ) (19.2 ) (22.6 ) 25.2 (6.3 ) 18.9 8.3 4.9 13.2 14.6 3.9 18.5 (35.1 ) (21.3 ) (56.4 ) 9.6 (38.0 ) (28.4 )(loss)

Reconciliation of Operating Income (Loss) to Adjusted EBITDAR

(In millions)

Successor

Predecessor

Combined (Non-GAAP)

Predecessor

Three Months Ended September 30, 2021

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

Three Months Ended March 31, 2021

Three Months Ended December 31, 2020

Three Months Ended September 30, 2020

ACTIVE FLEET

Operating income (loss)

$

28.6

$

20.3

$

(21.2

)

$

(0.9

)

$

(432.7

)

$

(33.5

)

$

55.9

Add (subtract):

Reactivation costs

19.4

17.3

6.7

24.0

11.1

1.6

0.9

Depreciation and amortization, net

20.7

11.9

19.0

30.9

62.0

56.0

67.5

Loss on impairment

-

-

-

-

419.2

-

-

(Gain) loss on sale of assets

(1.4

)

(0.1

)

0.5

0.4

(1.4

)

(3.2

)

(0.6

)

Support and other costs

25.7

17.9

9.8

27.7

30.6

38.2

40.2

Adjusted EBITDAR (1)

$

93.0

$

67.3

$

14.8

$

82.1

$

88.8

$

59.1

$

163.9

LEASED AND MANAGED RIGS

Operating income (loss)

$

18.7

$

13.0

$

2.6

$

15.6

$

7.7

$

(19.9

)

$

10.7

Add (subtract):

Depreciation and amortization, net

1.2

0.9

3.9

4.8

12.3

12.3

12.2

(Gain) loss on sale of assets

(0.2

)

-

-

-

(0.1

)

-

-

Support and other costs

2.5

1.7

0.8

2.5

2.8

31.6

2.4

Adjusted EBITDAR (1)

$

22.2

$

15.6

$

7.3

$

22.9

$

22.7

$

24.0

$

25.3

STACKED FLEET

Operating income (loss)

$

(17.4

)

$

(15.6

)

$

(13.6

)

$

(29.2

)

$

(396.1

)

$

(74.8

)

$

(90.9

)

Add (subtract):

Depreciation and amortization, net

5.1

3.3

13.7

17.0

41.1

43.3

42.7

Loss on impairment

-

-

-

-

337.3

-

-

(Gain) loss on sale of assets

(0.2

)

0.3

(5.2

)

(4.9

)

-

-

(7.7

)

Support and other costs

-

-

-

-

-

-

-

Adjusted EBITDAR (1)

$

(12.5

)

$

(12.0

)

$

(5.1

)

$

(17.1

)

$

(17.7

)

$

(31.5

)

$

(55.9

)

VALARIS TOTAL

Operating income (loss)

$

29.9

$

17.7

$

(32.2

)

$

(14.5

)

$

(821.1

)

$

(128.2

)

$

(24.3

)

Add (subtract):

Reactivation costs

19.4

17.3

6.7

24.0

11.1

1.6

0.9

Depreciation and amortization, net

27.0

16.1

36.6

52.7

115.4

111.6

122.4

Loss on impairment

-

-

-

-

756.5

-

-

(Gain) loss on sale of assets

(1.8

)

0.2

(4.7

)

(4.5

)

(1.5

)

(3.2

)

(8.3

)

Support and other costs

28.2

19.6

10.6

30.2

33.4

69.8

42.6

Adjusted EBITDAR (1)

$

102.7

$

70.9

$

17.0

$

87.9

$

93.8

$

51.6

$

133.3

Reconciliation of Operating Income (Loss) to Adjusted EBITDAR

(In millions) Successor Predecessor Combined Predecessor (Non-GAAP)

Three Two Three Three Three Three Months Months One Month Months Months Months Months Ended Ended Ended Ended Ended Ended Ended September June 30, April 30, June 30, March 31, December September 30, 2021 2021 2021 2021 31, 30, 2021 2020 2020

ACTIVE FLEET

Operating $ 28.6 $ 20.3 $ (21.2 ) $ (0.9 ) $ (432.7 ) $ (33.5 ) $ 55.9 income (loss)

Add (subtract):

Reactivation 19.4 17.3 6.7 24.0 11.1 1.6 0.9 costs

Depreciationand 20.7 11.9 19.0 30.9 62.0 56.0 67.5 amortization,net

Loss on - - - - 419.2 - - impairment

(Gain) losson sale of (1.4 ) (0.1 ) 0.5 0.4 (1.4 ) (3.2 ) (0.6 )assets

Support and 25.7 17.9 9.8 27.7 30.6 38.2 40.2 other costs

Adjusted $ 93.0 $ 67.3 $ 14.8 $ 82.1 $ 88.8 $ 59.1 $ 163.9 EBITDAR ^(1)



LEASED AND MANAGED RIGS

Operating $ 18.7 $ 13.0 $ 2.6 $ 15.6 $ 7.7 $ (19.9 ) $ 10.7 income (loss)

Add (subtract):

Depreciationand 1.2 0.9 3.9 4.8 12.3 12.3 12.2 amortization,net

(Gain) losson sale of (0.2 ) - - - (0.1 ) - - assets

Support and 2.5 1.7 0.8 2.5 2.8 31.6 2.4 other costs

Adjusted $ 22.2 $ 15.6 $ 7.3 $ 22.9 $ 22.7 $ 24.0 $ 25.3 EBITDAR ^(1)



STACKED FLEET

Operating $ (17.4 ) $ (15.6 ) $ (13.6 ) $ (29.2 ) $ (396.1 ) $ (74.8 ) $ (90.9 )income (loss)

Add (subtract):

Depreciationand 5.1 3.3 13.7 17.0 41.1 43.3 42.7 amortization,net

Loss on - - - - 337.3 - - impairment

(Gain) losson sale of (0.2 ) 0.3 (5.2 ) (4.9 ) - - (7.7 )assets

Support and - - - - - - - other costs

Adjusted $ (12.5 ) $ (12.0 ) $ (5.1 ) $ (17.1 ) $ (17.7 ) $ (31.5 ) $ (55.9 )EBITDAR ^(1)



VALARIS TOTAL

Operating $ 29.9 $ 17.7 $ (32.2 ) $ (14.5 ) $ (821.1 ) $ (128.2 ) $ (24.3 )income (loss)

Add (subtract):

Reactivation 19.4 17.3 6.7 24.0 11.1 1.6 0.9 costs

Depreciationand 27.0 16.1 36.6 52.7 115.4 111.6 122.4 amortization,net

Loss on - - - - 756.5 - - impairment

(Gain) losson sale of (1.8 ) 0.2 (4.7 ) (4.5 ) (1.5 ) (3.2 ) (8.3 )assets

Support and 28.2 19.6 10.6 30.2 33.4 69.8 42.6 other costs

Adjusted $ 102.7 $ 70.9 $ 17.0 $ 87.9 $ 93.8 $ 51.6 $ 133.3 EBITDAR ^(1)

(1)

Adjusted EBITDAR for active fleet, leased and managed rigs and stacked fleet excludes onshore support costs and general and administrative expense.

^ Adjusted EBITDAR for active fleet, leased and managed rigs and stacked(1) fleet excludes onshore support costs and general and administrative expense.

Reconciliation of Operating Revenues to Adjusted Revenues, Operating Expenses to Adjusted Operating Expenses and Operating Income (Loss) to Adjusted EBITDA

(In millions)

Successor

Predecessor

Combined (Non-GAAP)

Predecessor

Three Months Ended September 30, 2021

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

Three Months Ended March 31, 2021

Three Months Ended December 31, 2020

Three Months Ended September 30, 2020

DRILLSHIPS

Operating revenues

$

67.5

$

28.9

$

13.7

$

42.6

$

81.0

$

93.8

$

35.4

Add (subtract):

Reimbursable revenues

(7.1

)

(2.4

)

(1.3

)

(3.7

)

(7.4

)

(11.5

)

(5.5

)

Amortized revenues

(5.8

)

-

(0.5

)

(0.5

)

(7.2

)

(11.2

)

(1.0

)

Adjusted revenues

$

54.6

$

26.5

$

11.9

$

38.4

$

66.4

$

71.1

$

28.9

Operating expenses

$

77.9

$

39.8

$

36.2

$

76.0

$

113.6

$

134.4

$

137.9

Add (subtract):

Depreciation and amortization

(17.0

)

(7.2

)

(15.3

)

(22.5

)

(46.6

)

(45.5

)

(43.3

)

Gain (loss) on sale of assets

0.5

0.1

(0.2

)

(0.1

)

0.5

-

(0.4

)

Reimbursable expenses

(6.5

)

(2.2

)

(1.0

)

(3.2

)

(5.0

)

(9.5

)

(4.9

)

Support and other costs

(8.1

)

(5.5

)

(3.1

)

(8.6

)

(9.7

)

(17.4

)

(11.7

)

Adjusted operating expenses

$

46.8

$

25.0

$

16.6

$

41.6

$

52.8

$

62.0

$

77.6

Operating income (loss)

$

(10.4

)

$

(10.9

)

$

(22.5

)

$

(33.4

)

$

(32.6

)

$

(40.6

)

$

15.6

Add (subtract):

Depreciation and amortization, net

11.2

7.2

14.8

22.0

39.4

34.3

42.3

(Gain) loss on sale of assets

(0.5

)

(0.1

)

0.2

0.1

(0.5

)

-

0.4

Support and other costs

8.3

5.7

3.1

8.8

9.8

11.4

10.0

Adjusted EBITDA (1)

$

8.6

$

1.9

$

(4.4

)

$

(2.5

)

$

16.1

$

5.1

$

68.3

Reconciliation of Operating Revenues to Adjusted Revenues, Operating Expensesto Adjusted Operating Expenses and Operating Income (Loss) to Adjusted EBITDA

(In millions) Successor Predecessor Combined Predecessor (Non-GAAP)

Three Two Three Three Three Three Months Months One Month Months Months Months Months Ended Ended Ended Ended Ended Ended Ended September June 30, April 30, June 30, March 31, December September 30, 2021 2021 2021 2021 31, 30, 2021 2020 2020

DRILLSHIPS

Operating $ 67.5 $ 28.9 $ 13.7 $ 42.6 $ 81.0 $ 93.8 $ 35.4 revenues

Add (subtract):

Reimbursable (7.1 ) (2.4 ) (1.3 ) (3.7 ) (7.4 ) (11.5 ) (5.5 )revenues

Amortized (5.8 ) - (0.5 ) (0.5 ) (7.2 ) (11.2 ) (1.0 )revenues

Adjusted $ 54.6 $ 26.5 $ 11.9 $ 38.4 $ 66.4 $ 71.1 $ 28.9 revenues



Operating $ 77.9 $ 39.8 $ 36.2 $ 76.0 $ 113.6 $ 134.4 $ 137.9 expenses

Add (subtract):

Depreciationand (17.0 ) (7.2 ) (15.3 ) (22.5 ) (46.6 ) (45.5 ) (43.3 )amortization

Gain (loss)on sale of 0.5 0.1 (0.2 ) (0.1 ) 0.5 - (0.4 )assets

Reimbursable (6.5 ) (2.2 ) (1.0 ) (3.2 ) (5.0 ) (9.5 ) (4.9 )expenses

Support and (8.1 ) (5.5 ) (3.1 ) (8.6 ) (9.7 ) (17.4 ) (11.7 )other costs

Adjustedoperating $ 46.8 $ 25.0 $ 16.6 $ 41.6 $ 52.8 $ 62.0 $ 77.6 expenses



Operating $ (10.4 ) $ (10.9 ) $ (22.5 ) $ (33.4 ) $ (32.6 ) $ (40.6 ) $ 15.6 income (loss)

Add (subtract):

Depreciationand 11.2 7.2 14.8 22.0 39.4 34.3 42.3 amortization,net

(Gain) losson sale of (0.5 ) (0.1 ) 0.2 0.1 (0.5 ) - 0.4 assets

Support and 8.3 5.7 3.1 8.8 9.8 11.4 10.0 other costs

Adjusted $ 8.6 $ 1.9 $ (4.4 ) $ (2.5 ) $ 16.1 $ 5.1 $ 68.3 EBITDA ^(1)

(1)

Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.

^ Adjusted EBITDA for asset category excludes onshore support costs and(1) general and administrative expense.

Reconciliation of Operating Revenues to Adjusted Revenues, Operating Expenses to Adjusted Operating Expenses and Operating Income (Loss) to Adjusted EBITDA

(In millions)

Successor

Predecessor

Combined (Non-GAAP)

Predecessor

Three Months Ended September 30, 2021

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

Three Months Ended March 31, 2021

Three Months Ended December 31, 2020

Three Months Ended September 30, 2020

SEMISUBMERSIBLES

Operating revenues

$

36.8

$

20.9

$

4.7

$

25.6

$

16.3

$

11.8

$

21.7

Add (subtract):

Reimbursable revenues

(3.1

)

(1.8

)

(0.1

)

(1.9

)

(2.2

)

(2.4

)

(3.3

)

Amortized revenues

(1.0

)

-

-

-

-

-

0.5

Adjusted revenues

$

32.7

$

19.1

$

4.6

$

23.7

$

14.1

$

9.4

$

18.9

Operating expenses

$

36.3

$

21.5

$

5.9

$

27.4

$

797.6

$

41.8

$

46.2

Add (subtract):

Depreciation and amortization

(3.4

)

(1.9

)

(1.6

)

(3.5

)

(13.0

)

(12.7

)

(12.8

)

Loss on impairment

-

-

-

-

(756.5

)

-

-

Gain (loss) on sale of assets

0.2

-

(0.1

)

(0.1

)

0.2

0.7

7.5

Reimbursable expenses

(2.8

)

(1.5

)

(0.2

)

(1.7

)

(2.1

)

(2.4

)

(2.7

)

Support and other costs

(4.4

)

(3.0

)

(1.7

)

(4.7

)

(5.3

)

(5.6

)

(8.1

)

Adjusted operating expenses

$

25.9

$

15.1

$

2.3

$

17.4

$

20.9

$

21.8

$

30.1

Operating income (loss)

$

0.6

$

(0.6

)

$

(1.2

)

$

(1.8

)

$

(781.3

)

$

(30.0

)

$

(24.5

)

Add (subtract):

Depreciation and amortization, net

2.4

1.9

1.6

3.5

13.0

12.7

13.3

Loss on impairment

-

-

-

-

756.5

-

-

(Gain) loss on sale of assets

(0.2

)

-

0.1

0.1

(0.2

)

(0.7

)

(7.5

)

Support and other costs

4.4

2.9

1.7

4.6

5.3

5.3

8.5

Adjusted EBITDA (1)

$

7.2

$

4.2

$

2.2

$

6.4

$

(6.7

)

$

(12.7

)

$

(10.2

)

Reconciliation of Operating Revenues to Adjusted Revenues, Operating Expensesto Adjusted Operating Expenses and Operating Income (Loss) to Adjusted EBITDA

(In millions) Successor Predecessor Combined Predecessor (Non-GAAP)

Three Two Three Three Three Three Months Months One Month Months Months Months Months Ended Ended Ended Ended Ended Ended Ended September June 30, April 30, June 30, March 31, December September 30, 2021 2021 2021 2021 31, 30, 2021 2020 2020

SEMISUBMERSIBLES

Operating $ 36.8 $ 20.9 $ 4.7 $ 25.6 $ 16.3 $ 11.8 $ 21.7 revenues

Add (subtract):

Reimbursable (3.1 ) (1.8 ) (0.1 ) (1.9 ) (2.2 ) (2.4 ) (3.3 )revenues

Amortized (1.0 ) - - - - - 0.5 revenues

Adjusted $ 32.7 $ 19.1 $ 4.6 $ 23.7 $ 14.1 $ 9.4 $ 18.9 revenues



Operating $ 36.3 $ 21.5 $ 5.9 $ 27.4 $ 797.6 $ 41.8 $ 46.2 expenses

Add (subtract):

Depreciation and (3.4 ) (1.9 ) (1.6 ) (3.5 ) (13.0 ) (12.7 ) (12.8 )amortization

Loss on - - - - (756.5 ) - - impairment

Gain (loss) on 0.2 - (0.1 ) (0.1 ) 0.2 0.7 7.5 sale of assets

Reimbursable (2.8 ) (1.5 ) (0.2 ) (1.7 ) (2.1 ) (2.4 ) (2.7 )expenses

Support and (4.4 ) (3.0 ) (1.7 ) (4.7 ) (5.3 ) (5.6 ) (8.1 )other costs

Adjustedoperating $ 25.9 $ 15.1 $ 2.3 $ 17.4 $ 20.9 $ 21.8 $ 30.1 expenses



Operating income $ 0.6 $ (0.6 ) $ (1.2 ) $ (1.8 ) $ (781.3 ) $ (30.0 ) $ (24.5 )(loss)

Add (subtract):

Depreciation andamortization, 2.4 1.9 1.6 3.5 13.0 12.7 13.3 net

Loss on - - - - 756.5 - - impairment

(Gain) loss on (0.2 ) - 0.1 0.1 (0.2 ) (0.7 ) (7.5 )sale of assets

Support and 4.4 2.9 1.7 4.6 5.3 5.3 8.5 other costs

Adjusted EBITDA $ 7.2 $ 4.2 $ 2.2 $ 6.4 $ (6.7 ) $ (12.7 ) $ (10.2 )^(1)

(1)

Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.

^ Adjusted EBITDA for asset category excludes onshore support costs and(1) general and administrative expense.

Reconciliation of Operating Revenues to Adjusted Revenues, Operating Expenses to Adjusted Operating Expenses and Operating Income (Loss) to Adjusted EBITDA

(In millions)

Successor

Predecessor

Combined (Non-GAAP)

Predecessor

Three Months Ended September 30, 2021

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

Three Months Ended March 31, 2021

Three Months Ended December 31, 2020

Three Months Ended September 30, 2020

HD ULTRA-HARSH & HARSH JACKUPS

Operating revenues

$

102.8

$

70.9

$

34.0

$

104.9

$

95.5

$

96.2

$

91.2

Add (subtract):

Reimbursable revenues

(11.6

)

(9.1

)

(4.2

)

(13.3

)

(9.7

)

(17.3

)

(8.1

)

Amortized revenues

(0.4

)

(0.2

)

(1.1

)

(1.3

)

(3.4

)

(2.5

)

(2.7

)

Adjusted revenues

$

90.8

$

61.6

$

28.7

$

90.3

$

82.4

$

76.4

$

80.4

Operating expenses

$

90.5

$

59.4

$

36.8

$

96.2

$

96.9

$

115.1

$

105.1

Add (subtract):

Depreciation and amortization

(8.2

)

(5.0

)

(9.0

)

(14.0

)

(28.8

)

(28.3

)

(29.5

)

Gain (loss) on sale of assets

0.4

(0.3

)

5.1

4.8

0.3

0.1

-

Reimbursable expenses

(8.8

)

(6.8

)

(3.2

)

(10.0

)

(7.6

)

(15.1

)

(6.1

)

Support and other costs

(5.1

)

(3.7

)

(2.0

)

(5.7

)

(5.6

)

(9.6

)

(9.5

)

Adjusted operating expenses

$

68.8

$

43.6

$

27.7

$

71.3

$

55.2

$

62.2

$

60.0

Operating income (loss)

$

12.3

$

11.5

$

(2.8

)

$

8.7

$

(1.4

)

$

(18.9

)

$

(13.9

)

Add (subtract):

Depreciation and amortization, net

7.8

4.8

7.9

12.7

25.4

25.8

26.8

(Gain) loss on sale of assets

(0.4

)

0.3

(5.1

)

(4.8

)

(0.3

)

(0.1

)

-

Support and other costs

5.4

3.6

2.0

5.6

5.6

9.7

9.6

Adjusted EBITDA (1)

$

25.1

$

20.2

$

2.0

$

22.2

$

29.3

$

16.5

$

22.5

Reconciliation of Operating Revenues to Adjusted Revenues, Operating Expensesto Adjusted Operating Expenses and Operating Income (Loss) to Adjusted EBITDA

(In millions) Successor Predecessor Combined Predecessor (Non-GAAP)

Three Two Three Three Three Three Months Months One Month Months Months Months Months Ended Ended Ended Ended Ended Ended Ended September June 30, April 30, June 30, March December September 30, 2021 2021 2021 31, 31, 30, 2021 2021 2020 2020

HDULTRA-HARSH & HARSH JACKUPS

Operating $ 102.8 $ 70.9 $ 34.0 $ 104.9 $ 95.5 $ 96.2 $ 91.2 revenues

Add (subtract):

Reimbursable (11.6 ) (9.1 ) (4.2 ) (13.3 ) (9.7 ) (17.3 ) (8.1 )revenues

Amortized (0.4 ) (0.2 ) (1.1 ) (1.3 ) (3.4 ) (2.5 ) (2.7 )revenues

Adjusted $ 90.8 $ 61.6 $ 28.7 $ 90.3 $ 82.4 $ 76.4 $ 80.4 revenues



Operating $ 90.5 $ 59.4 $ 36.8 $ 96.2 $ 96.9 $ 115.1 $ 105.1 expenses

Add (subtract):

Depreciationand (8.2 ) (5.0 ) (9.0 ) (14.0 ) (28.8 ) (28.3 ) (29.5 )amortization

Gain (loss)on sale of 0.4 (0.3 ) 5.1 4.8 0.3 0.1 - assets

Reimbursable (8.8 ) (6.8 ) (3.2 ) (10.0 ) (7.6 ) (15.1 ) (6.1 )expenses

Support and (5.1 ) (3.7 ) (2.0 ) (5.7 ) (5.6 ) (9.6 ) (9.5 )other costs

Adjustedoperating $ 68.8 $ 43.6 $ 27.7 $ 71.3 $ 55.2 $ 62.2 $ 60.0 expenses



Operating $ 12.3 $ 11.5 $ (2.8 ) $ 8.7 $ (1.4 ) $ (18.9 ) $ (13.9 )income (loss)

Add (subtract):

Depreciationand 7.8 4.8 7.9 12.7 25.4 25.8 26.8 amortization,net

(Gain) losson sale of (0.4 ) 0.3 (5.1 ) (4.8 ) (0.3 ) (0.1 ) - assets

Support and 5.4 3.6 2.0 5.6 5.6 9.7 9.6 other costs

Adjusted $ 25.1 $ 20.2 $ 2.0 $ 22.2 $ 29.3 $ 16.5 $ 22.5 EBITDA ^(1)

(1)

Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.

^ Adjusted EBITDA for asset category excludes onshore support costs and(1) general and administrative expense.

Reconciliation of Operating Revenues to Adjusted Revenues, Operating Expenses to Adjusted Operating Expenses and Operating Income (Loss) to Adjusted EBITDA

(In millions)

Successor

Predecessor

Combined (Non-GAAP)

Predecessor

Three Months Ended September 30, 2021

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

Three Months Ended March 31, 2021

Three Months Ended December 31, 2020

Three Months Ended September 30, 2020

HD & SD MODERN JACKUPS

Operating revenues

$

59.6

$

40.7

$

17.0

$

57.7

$

50.5

$

61.2

$

67.8

Add (subtract):

Reimbursable revenues

(5.9

)

(3.5

)

(2.3

)

(5.8

)

(4.2

)

(7.8

)

(5.3

)

Amortized revenues

(0.4

)

(1.6

)

(0.5

)

(2.1

)

(1.6

)

(1.8

)

(2.1

)

Adjusted revenues

$

53.3

$

35.6

$

14.2

$

49.8

$

44.7

$

51.6

$

60.4

Operating expenses

$

57.5

$

41.3

$

28.0

$

69.3

$

71.9

$

83.2

$

83.2

Add (subtract):

Depreciation and amortization

(3.6

)

(2.2

)

(8.1

)

(10.3

)

(24.5

)

(25.7

)

(26.7

)

Gain (loss) on sale of assets

0.4

-

(0.1

)

(0.1

)

0.3

0.5

1.2

Reimbursable expenses

(3.2

)

(2.2

)

(1.2

)

(3.4

)

(1.8

)

(4.8

)

(3.1

)

Support and other costs

(6.2

)

(4.1

)

(2.2

)

(6.3

)

(7.1

)

(8.1

)

(8.2

)

Adjusted operating expenses

$

44.9

$

32.8

$

16.4

$

49.2

$

38.8

$

45.1

$

46.4

Operating income (loss)

$

2.1

$

(0.6

)

$

(11.0

)

$

(11.6

)

$

(21.4

)

$

(22.0

)

$

(15.4

)

Add (subtract):

Depreciation and amortization, net

3.2

0.6

7.6

8.2

22.9

23.9

24.6

(Gain) loss on sale of assets

(0.4

)

-

0.1

0.1

(0.3

)

(0.5

)

(1.2

)

Support and other costs

6.3

4.0

2.2

6.2

7.1

8.4

8.3

Adjusted EBITDA (1)

$

11.2

$

4.0

$

(1.1

)

$

2.9

$

8.3

$

9.8

$

16.3

Reconciliation of Operating Revenues to Adjusted Revenues, Operating Expensesto Adjusted Operating Expenses and Operating Income (Loss) to Adjusted EBITDA

(In millions) Successor Predecessor Combined Predecessor (Non-GAAP)

Three Two Three Three Three Three Months Months One Month Months Months Months Months Ended Ended Ended Ended Ended Ended Ended September June 30, April 30, June 30, March 31, December September 30, 2021 2021 2021 2021 31, 30, 2021 2020 2020

HD & SDMODERN JACKUPS

Operating $ 59.6 $ 40.7 $ 17.0 $ 57.7 $ 50.5 $ 61.2 $ 67.8 revenues

Add (subtract):

Reimbursable (5.9 ) (3.5 ) (2.3 ) (5.8 ) (4.2 ) (7.8 ) (5.3 )revenues

Amortized (0.4 ) (1.6 ) (0.5 ) (2.1 ) (1.6 ) (1.8 ) (2.1 )revenues

Adjusted $ 53.3 $ 35.6 $ 14.2 $ 49.8 $ 44.7 $ 51.6 $ 60.4 revenues



Operating $ 57.5 $ 41.3 $ 28.0 $ 69.3 $ 71.9 $ 83.2 $ 83.2 expenses

Add (subtract):

Depreciationand (3.6 ) (2.2 ) (8.1 ) (10.3 ) (24.5 ) (25.7 ) (26.7 )amortization

Gain (loss)on sale of 0.4 - (0.1 ) (0.1 ) 0.3 0.5 1.2 assets

Reimbursable (3.2 ) (2.2 ) (1.2 ) (3.4 ) (1.8 ) (4.8 ) (3.1 )expenses

Support and (6.2 ) (4.1 ) (2.2 ) (6.3 ) (7.1 ) (8.1 ) (8.2 )other costs

Adjustedoperating $ 44.9 $ 32.8 $ 16.4 $ 49.2 $ 38.8 $ 45.1 $ 46.4 expenses



Operating $ 2.1 $ (0.6 ) $ (11.0 ) $ (11.6 ) $ (21.4 ) $ (22.0 ) $ (15.4 )income (loss)

Add (subtract):

Depreciationand 3.2 0.6 7.6 8.2 22.9 23.9 24.6 amortization,net

(Gain) losson sale of (0.4 ) - 0.1 0.1 (0.3 ) (0.5 ) (1.2 )assets

Support and 6.3 4.0 2.2 6.2 7.1 8.4 8.3 other costs

Adjusted $ 11.2 $ 4.0 $ (1.1 ) $ 2.9 $ 8.3 $ 9.8 $ 16.3 EBITDA ^(1)

(1)

Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.

^ Adjusted EBITDA for asset category excludes onshore support costs and(1) general and administrative expense.

Reconciliation of Operating Revenues to Adjusted Revenues, Operating Expenses to Adjusted Operating Expenses and Operating Income (Loss) to Adjusted EBITDA

(In millions)

Successor

Predecessor

Combined (Non-GAAP)

Predecessor

Three Months Ended September 30, 2021

Two Months Ended June 30, 2021

One Month Ended April 30, 2021

Three Months Ended June 30, 2021

Three Months Ended March 31, 2021

Three Months Ended December 31, 2020

Three Months Ended September 30, 2020

SD LEGACY JACKUPS

Operating revenues

$

23.9

$

16.8

$

8.8

$

25.6

$

26.6

$

22.0

$

27.8

Add (subtract):

Reimbursable revenues

(1.3

)

(1.4

)

(0.5

)

(1.9

)

(1.5

)

(1.9

)

(1.3

)

Amortized revenues

-

-

(0.2

)

(0.2

)

(0.5

)

(0.7

)

(1.0

)

Adjusted revenues

$

22.6

$

15.4

$

8.1

$

23.5

$

24.6

$

19.4

$

25.5

Operating expenses

$

17.8

$

11.5

$

6.1

$

17.6

$

18.7

$

18.8

$

24.6

Add (subtract):

Depreciation and amortization

(0.9

)

(0.7

)

(1.0

)

(1.7

)

(2.9

)

(3.3

)

(4.2

)

Gain (loss) on sale of assets

0.1

-

-

-

0.1

1.9

-

Reimbursable expenses

(0.9

)

(1.2

)

(0.4

)

(1.6

)

(1.0

)

(1.7

)

(0.7

)

Support and other costs

(1.9

)

(1.7

)

(0.8

)

(2.5

)

(2.8

)

(3.4

)

(3.8

)

Adjusted operating expenses

$

14.2

$

7.9

$

3.9

$

11.8

$

12.1

$

12.3

$

15.9

Operating income (loss)

$

6.2

$

5.3

$

2.7

$

8.0

$

7.9

$

3.2

$

3.2

Add (subtract):

Depreciation and amortization, net

0.9

0.7

0.8

1.5

2.4

2.6

3.2

(Gain) loss on sale of assets

(0.1

)

-

-

-

(0.1

)

(1.9

)

-

Support and other costs

2.0

1.7

0.8

2.5

2.8

3.4

3.8

Adjusted EBITDA (1)

$

9.0

$

7.7

$

4.3

$

12.0

$

13.0

$

7.3

$

10.2

Reconciliation of Operating Revenues to Adjusted Revenues, Operating Expensesto Adjusted Operating Expenses and Operating Income (Loss) to Adjusted EBITDA

(In millions) Successor Predecessor Combined Predecessor (Non-GAAP)

Three Two Three Three Three Three Months Months One Month Months Months Months Months Ended Ended Ended Ended Ended Ended Ended September June 30, April 30, June 30, March December September 30, 2021 2021 2021 31, 31, 30, 2021 2021 2020 2020

SD LEGACY JACKUPS

Operating $ 23.9 $ 16.8 $ 8.8 $ 25.6 $ 26.6 $ 22.0 $ 27.8 revenues

Add (subtract):

Reimbursable (1.3 ) (1.4 ) (0.5 ) (1.9 ) (1.5 ) (1.9 ) (1.3 )revenues

Amortized - - (0.2 ) (0.2 ) (0.5 ) (0.7 ) (1.0 )revenues

Adjusted $ 22.6 $ 15.4 $ 8.1 $ 23.5 $ 24.6 $ 19.4 $ 25.5 revenues



Operating $ 17.8 $ 11.5 $ 6.1 $ 17.6 $ 18.7 $ 18.8 $ 24.6 expenses

Add (subtract):

Depreciationand (0.9 ) (0.7 ) (1.0 ) (1.7 ) (2.9 ) (3.3 ) (4.2 )amortization

Gain (loss)on sale of 0.1 - - - 0.1 1.9 - assets

Reimbursable (0.9 ) (1.2 ) (0.4 ) (1.6 ) (1.0 ) (1.7 ) (0.7 )expenses

Support and (1.9 ) (1.7 ) (0.8 ) (2.5 ) (2.8 ) (3.4 ) (3.8 )other costs

Adjustedoperating $ 14.2 $ 7.9 $ 3.9 $ 11.8 $ 12.1 $ 12.3 $ 15.9 expenses



Operating $ 6.2 $ 5.3 $ 2.7 $ 8.0 $ 7.9 $ 3.2 $ 3.2 income (loss)

Add (subtract):

Depreciationand 0.9 0.7 0.8 1.5 2.4 2.6 3.2 amortization,net

(Gain) losson sale of (0.1 ) - - - (0.1 ) (1.9 ) - assets

Support and 2.0 1.7 0.8 2.5 2.8 3.4 3.8 other costs

Adjusted $ 9.0 $ 7.7 $ 4.3 $ 12.0 $ 13.0 $ 7.3 $ 10.2 EBITDA ^(1)

(1)

Adjusted EBITDA for asset category excludes onshore support costs and general and administrative expense.

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