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Investor Presentation J u n e 2 0 2 5 FOCUSED VALUE DRIVEN RESPONSIBLE
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Statements contained in this investor presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "likely,“ “outlook," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements regarding expected financial performance; expected utilization, day rates, revenues, operating expenses, cash flows, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the offshore drilling market, including supply and demand, customer drilling programs and the attainment of requisite permits for such programs, stacking of rigs, effects of new rigs on the market and effect of the volatility of commodity prices; expected work commitments, awards, contracts and letters of intent; scheduled delivery dates for rigs; performance and expected benefits of our joint ventures, including our joint venture with Saudi Aramco; timing of the delivery of the Saudi Aramco Rowan Offshore Drilling Company ("ARO") newbuild rigs and the timing of additional ARO newbuild orders; the availability, delivery, mobilization, contract commencement, availability, relocation or other movement of rigs and the timing thereof; rig reactivations; suitability of rigs for future contracts; divestitures of assets; general economic, market, business and industry conditions, including changing tariff policies, trade disputes, inflation and recessions, trends and outlook; general political conditions, including political tensions, conflicts and war; cybersecurity attacks and threats; uncertainty around the use and impacts of artificial intelligence applications; impacts and effects of public health crises, pandemics and epidemics; future operations; ability to renew expiring contracts or obtain new contracts; increasing regulatory complexity; targets, progress, plans and goals related to sustainability matters; the outcome of tax disputes; assessments and settlements; and expense management. The forward-looking statements contained in this investor presentation are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including cancellation, suspension, renegotiation or termination of drilling contracts and programs; our ability to obtain financing, service our debt, fund capital expenditures and pursue other business opportunities; adequacy of sources of liquidity for us and our customers; future share repurchases; actions by regulatory authorities, or other third parties; actions by our security holders; internal control risk; commodity price fluctuations and volatility, customer demand, loss of a significant customer or customer contract, downtime and other risks associated with offshore rig operations; adverse weather, including hurricanes; changes in worldwide rig supply; and demand, competition and technology; supply chain and logistics challenges; consumer preferences for alternative fuels and forecasts or expectations regarding the global energy transition; increased scrutiny of our sustainability targets, initiatives and reporting and our ability to achieve such targets or initiatives; changes in customer strategy; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties, including recessions, volatility affecting financial markets and the banking system, changing tariff policies, trade disputes, and adverse changes in the level of international trade activity; terrorism, piracy and military action; risks inherent to shipyard upgrade, repair, maintenance, enhancement or rig reactivation; our ability to enter into, and the terms of, future drilling contracts; suitability of rigs for future contracts; the cancellation of letters of intent or letters of award or any failure to execute definitive contracts following announcements of letters of intent, letters of award or other expected work commitments; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; the use of artificial intelligence by us, third-party service providers or our competitors; environmental or other liabilities, risks or losses; compliance with our debt agreements and debt restrictions that may limit our liquidity and flexibility, including in any return of capital plans; cybersecurity risks and threats; and changes in foreign currency exchange rates. In addition to the numerous factors described above, you should also carefully read and consider "Item 1A. Risk Factors" in Part I and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our most recent annual report on Form 10-K, which is available on the Securities and Exchange Commission's website at www.sec.gov or on the Investor Relations section of our website at www.valaris.com. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to update or revise any forward-looking statements, except as required by law. 2 Forward-Looking Statements
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3 Valaris Overview (NYSE: VAL) 49 Rigs Largest offshore driller by fleet size with 15 high-spec floaters and 34 jackups 92% 7th generation assets within Valaris’ drillship fleet (12 of 13) 96%+ Revenue efficiency for four consecutive years >50% Better safety performance than offshore peer group average in 20241 $4.2 Billion Contract backlog as of April 30, 2025 $500-560 Million FY 2025 EBITDA guidance2 Our strategy is to be the first choice of customers, employees and investors by delivering safe and efficient operations with a scaled high-quality fleet in order to maximize value through the cycle 1 Based on 2024 Lost Time Incident Rate (“LTIR”); Valaris LTIR of 0.04 vs. IADC offshore peer group average LTIR of 0.09 2 FY 2025 EBITDA guidance as of Q1 2025 results conference call on May 1, 2025
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4 High-specification floater fleet focused on key strategic basins 17% U.S. Gulf & Mexico 2 Brazil 4 26% Active Drillships Active Semisubmersibles % share of expected benign environment floater demand through 20291 16% West Africa 3 Mediterranean 1 6% 10% 6% Southeast Asia 3% Australia 2 Guyana & Suriname Critical mass in the Golden Triangle, which is expected to account for 70% of benign environment floater demand through 2029 31% 25% 16% 9% 7% 5% 7% Other Floater Backlog by Customer2 1 Demand by country/region represents rig years as a % of total rig years for benign environment floaters per Rystad RigCube as of June 2025 2 Valaris floater backlog by customer as of April 30, 2025 ~$2.2B of backlog & strong relationships with ultra-deepwater customers in key basins
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5 Technical specifications of 7th generation drillships deliver efficiencies for customers’ well programs • The advanced technical specifications of 7th generation drillships offer efficiencies for customers that are amplified over multi-well programs • As a result, customers prefer these assets for their longer-term developments and projects • 12 of 13 of Valaris’ drillships are 7th generation assets with these capabilities Thruster Capacity 6x 5+ Mw high-capacity thrusters enable rig to maintain better station keeping in challenging ocean conditions Blowout Preventers (BOPs) 2x BOPs reduces flat time between wells and provides redundancy in the event of an unplanned pull of BOP stack Dual Derricks w/ High Hookload Capacity Dual derricks facilitate certain simultaneous activities, reducing customers’ project time and costs; 2.5M lb hookload capacity increases a rig’s ability to drill and complete deeper, more complex wells Water Depth Rating Capable of drilling in ≥ 10,000-foot water depth, providing for operations in the most challenging ultra-deepwater environments
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6 Jackup fleet primarily positioned in the North Sea, Middle East & attractive niche markets 8% U.S. Gulf & Mexico 20% Active Jackups % share of expected benign environment jackup demand through 20292 18% 10% Southeast Asia 57% 38% NorwayNorth Sea ex. Norway 9 Saudi Arabia 7 % share of expected harsh environment jackup demand through 20291 Middle East ex Saudi 19% 2 Australia 2 1 1% West Africa 1 1 Trinidad 2 1% 3% Jackup Backlog by Customer3 1 Demand by country/region represents rig years as a % of total rig years for harsh environment jackups per Rystad RigCube as of June 2025 2 Demand by country/region represents rig years as a % of total rig years for benign environment jackups per Rystad RigCube as of June 2025 3 Valaris jackup backlog by customer, including leased rigs, as of April 30, 2025 Strong presence in key shallow-water regions in the North Sea and Middle East as well as attractive niche markets like Australia & Trinidad ~$1.9B of backlog with leading IOCs, NOCs and independent operators 50% of 26% 15% 11%10% 10% 8% 5% 15% Other
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v v 7 Excellent safety and operational track record Winner of Safety Leadership Award in 2023 and 2024 Winner of IADC 2024 Safety Awards for Brazil & North Sea Chapters 98% 97% 96% 97% 90% 95% 100% 2021 2022 2023 2024 Fleetwide Revenue Efficiency Revenue efficiency of at least 96% for each of the past four years during a period of significant growth in operations Total Revenues ($B) 1.2 1.6 1.8 2.4 0.08 0.11 0.09 0.04 0.07 0.09 0.09 0.09 0.00 0.02 0.04 0.06 0.08 0.10 0.12 2021 2022 2023 2024 Lost Time Incident Rate (“LTIR”) Significantly outperformed offshore peer group average on key safety metric in 2024 Valaris Offshore Peer Group Average 1 1 Offshore peer group per IADC
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v v 8 Deepwater production expected to play an increasingly important role in meeting global hydrocarbon demand Source: Rystad Cube Dashboards using base case liquids supply as of June 2025 10 12 18 24 3 19 74 5 78 22 2024 Supply Depletion New Supply 2030 Supply 102 31 109 Offshore Deepwater Offshore Shelf Onshore Global Liquid Fuels Supply by Source (Million Barrels Per Day) 0 10 20 30 40 50 60 70 80 90 100 0 5 10 15 20 25 < $20 17% $20-$25 25% 42% $30-$35 56% $35-$40 63% $40-$45 69% $45-$50 75% $50-$55 81% $55-$60 88% $60-$65 91% $65-$70 $25-$30 $70-$75 96% $75-$80 100% >$80 7% 10% 7% 18% 13% 7% 7% 6% 6% 6% 94% 3% 3% 2% 4% 7% % of P50 Reserves Cumulative % of P50 Reserves Offshore Breakeven Oil Prices for Undeveloped Reserves Source: Rystad UCube as of June 2025 1 P50 reserves: reserves volume with a probability of recovery of between 50% and 90% 1 ~85% of undeveloped reserves estimated to be profitable at $60/bbl 20% 3% 5% % Growth 2024-2030
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9 Subsea installations and deepwater project sanctioning expected to increase significantly over the next few years • Subsea tree installations expected to be more than 40% higher, on average, in 2026-2028 as compared to 2024-2025 ‒ This equipment is required for oil and gas production after development drilling has taken place ‒ Supports near-term growth in drilling activity • Meaningful growth for approvals of both greenfield development projects and exploration projects in 2026-2028 as compared to 2024-2025 ̶ A positive sign for the longevity of the upcycle Source: Rystad Subsea Cube and Rystad UCube as of June 2025 1 Installations at water depths > 125 meters (programs requiring floaters). Excludes predominantly harsh environment locations (Western Europe and Russia) 2 Includes exploration and well capex only. Excludes predominantly harsh environment locations (Western Europe and Russia) Subsea Tree Installations by Region1 99 91 117 110 125 35 46 54 52 4748 50 60 90 7425 38 49 59 80 0 100 200 300 400 2024 2025E 2026E 2027E 2028E 207 225 280 311 326 South America U.S. Gulf & Mexico Africa Rest of World 216 subsea tree installations on average expected in 2024-2025 306 subsea tree installations on average expected in 2026-2028 Deepwater Project Sanctioning by Approval Year ($B)2 6 2 5 10 124 15 20 13 0 6 0 20 40 60 0 20 40 13 1 2024 2025E 3 2026E 2027E 2 2028E 20 6 24 36 27 # of Projects (right axis) Exploration Greenfield Brownfield
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10 Benign environment floater demand anticipated to increase over the next few years Benign Environment Floater Demand by Region (Rig Years) Benign Environment Floater Demand by Wellbore Purpose (Rig Years) 36 41 42 41 43 21 20 19 18 21 17 17 21 23 2527 30 30 34 30 0 50 100 150 2024 2025E 2026E 2027E 101 108 112 117 2028E 120 South America U.S. Gulf & Mexico Africa Rest of World 25 24 20 20 20 61 66 75 76 79 15 18 17 21 20 0 50 100 150 2024 2025E 2026E 2027E 101 108 112 117 2028E 120 Exploration Production P&A and Intervention • Benign environment floater demand in 2026-2028 is expected to be ~10% higher, on average, compared to 2024-2025 ̶ Growth in demand expected to be primarily driven by South America (Guyana & Suriname), Africa (Nigeria, Ghana & Mozambique) and Indonesia ̶ The Golden Triangle markets of South America, the U.S. Gulf and Mexico & West Africa is expected to account for ~70% of demand over the next few years ̶ Exploration activity is expected to account for nearly 20% of demand over the next few years Source: Rystad RigCube as of June 2025 Average rig demand of 105 expected in 2024-2025 Average rig demand of 116 expected in 2026-2028
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Attractive, long-term contracts support earnings and cash flow 11 Valaris Drillships Average Daily Revenue ($000) 253 288 307 328 358 386 405 418 200 250 300 350 400 450 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Valaris Jackups Average Daily Revenue ($000)1 99 108 111 108 120 122 121 128 75 100 125 150 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 ~$500M of Floater Contract Backlog Added YTD 2025 1 3Q24 adjusted for ~$20 million of lump sum revenues associated with mobilization revenues for VALARIS 247 2 Select contracts awarded to Valaris jackups YTD 2025 ~$1.1 Billion of Contract Backlog Added YTD 2025 ~$600M of Jackup Contract Backlog Added YTD 20252 • DS-10: two-year contract offshore West Africa • DS-15: 250-day contract offshore West Africa • DS-9: six-month contract extension offshore Angola • ARO Leased Rigs: five-year bareboat charter agreement extensions for five rigs • VALARIS 248: two-year contract in the North Sea region • VALARIS 117: 545-day contract offshore Trinidad
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12 Significant earnings potential and cash flow from Valaris fleet 1 This slide is not intended to reflect guidance, but rather illustrative scenarios using a range of day rates and levels of utilization. Calculations are based on the total number of rigs in each asset category. 2 Excludes two legacy jackups and four jackups stacked for ≥ 5 years. 3 HD = Heavy Duty; SD = Standard Duty. Heavy duty jackups are well-suited for operations in tropical revolving storm areas. 4 Daily operating costs are based on current handrail operating costs for the fleet excluding additional services. Assumes full operating cost for 50% of idle periods and preservation stack cost for 50% of idle periods. 5 Onshore support costs based on 2024 actual costs. 6 EBITDAR is earnings before interest, tax, depreciation, amortization and reactivation costs. 7 Other cash uses include estimates for cash interest, cash taxes and maintenance and upgrade capital expenditures, but exclude changes in working capital. Total Rigs2 Rigs Under Contract or with Future Contract Illustrative Annual Earnings and Cash Flow from Valaris Fleet1 Illustrative Scenario A B C 13 9 Drillship Day Rates $400K $450K $500K 2 2 Benign Semisubmersible Day Rates $300K $350K $400K 12 10 HD Harsh Environment Jackup Day Rates3 $125K $150K $175K 16 13 HD & SD Modern Jackup Day Rates3 $100K $125K $150K 43 34 Fleet Utilization 70% 75% 80% Operating Margin4 ~$1,020M ~$1,550M ~$2,120M Onshore Costs (G&A and Support)5 ~$260M ~$260M ~$260M EBITDAR6 ~$760M ~$1,290M ~$1,860M Other Cash Uses7 ~$460M ~$540M ~$620M Free Cash Flow ~$300M ~$750M ~$1,240M
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v 13 Value-driven approach to capital allocation Committed to maintaining a conservative balance sheet with low leverage 1.1x net leverage1 | $829 million liquidity2 Maintain a Strong Balance Sheet v Actively manage rig costs and divest rigs when the future economic benefit of an asset does not justify its ongoing costs Sold three semisubmersibles for recycling and one jackup YTD 2025 Prudent Fleet Management Intend to return all future free cash flow to shareholders unless there is a better or more value accretive use for it $325 million returned to shareholders since start of share repurchase program in 2023 Return Free Cash Flow to Shareholders 1 Net leverage calculated using TTM EBITDA and March 31, 2025, balance sheet 2 As of March 31, 2025 (liquidity includes $12 million of restricted cash)
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14 Key Takeaways • We expect offshore production, particularly deepwater, to play an important role in providing secure, reliable and affordable energy to meet the world’s energy needs • Valaris is well-positioned to help meet that need and drive long-term value creation for our shareholders by virtue of our high-specification fleet and excellent safety and operational track record • We are focused on securing attractive long-term contracts for our active fleet to support future earnings and cash flow • We will actively manage rig costs and divest rigs when the future economic benefit of an asset does not justify its ongoing costs • We intend to return all future free cash flow to shareholders unless there is a better or more value accretive use for it
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FOCUSED VALUE DRIVEN RESPONSIBLE