Valaris Limited (NYSE:VAL) ("Valaris" or the "Company") today reported second quarter 2026 results.

President and Chief Executive Officer Anton Dibowitz said, "I want to thank our teams across the organization for their unwavering commitment to safe, reliable and efficient operations. Together we delivered another quarter of strong performance, highlighted by revenue efficiency of 98% and the successful startup of two drillships. These achievements helped drive solid financial results despite the impact of the ongoing conflicts in the Middle East."

Dibowitz added, "We successfully returned VALARIS DS-12 and DS-10 to work on schedule and on budget during the second quarter. With two additional drillships set to commence new contracts before year-end, these rig startups, together with continued strong operational execution across our fleet, are expected to drive further improvement in our financial performance over the remainder of the year."

Dibowitz concluded, "We remain positive on the outlook for offshore drilling. The pipeline of deepwater contract opportunities remains robust, and we expect to see further awards across the industry, supported by favorable market fundamentals and strong customer demand for high-specification assets. We are also excited about the pending business combination with Transocean, which is on track to close in the fourth quarter of 2026. The combination is expected to deliver meaningful value to our shareholders through anticipated synergies and the enhanced capabilities of the combined company."

Financial and Operational Highlights

Total operating revenues of $539 million and net income of $47 million
Adjusted EBITDA of $97 million, which includes approximately $30 million of negative impacts from the Middle East conflicts
Revenue efficiency of 98% during the quarter and year to date
Successful startup of drillships VALARIS DS-12 and DS-10 for new contracts
Added more than $160 million of backlog for the North Sea jackup fleet, further enhancing Valaris' industry-leading contract coverage for jackups across 2026 and 2027
High-graded the fleet through the sale of long-term stacked jackups VALARIS 104 and 109 in June and July 2026, respectively, for total cash proceeds of $74 million

Second Quarter Review

Net income of $47 million compared to net loss of $18 million in the first quarter 2026. Net income included a gain on the sale of assets of $38 million compared to a loss of $2 million in the first quarter. Adjusted EBITDA of $97 million compared to $67 million in the first quarter 2026.

Revenues exclusive of reimbursable items increased to $502 million from $430 million in the first quarter 2026, primarily due to more operating days for the floater fleet as three drillships recently commenced new contracts, with one commencing late in the first quarter and the other two during the second quarter.

Contract drilling expenses exclusive of reimbursable items increased to $380 million from $340 million in the first quarter 2026, primarily due to incremental operating costs associated with the three drillships that recently commenced new contracts, higher repair and maintenance costs largely associated with planned shipyard projects, and a full quarter of higher costs to maintain insurance coverage for war-related risks for jackups that Valaris operates in the Middle East. These items were partially offset by the reversal of a previously recognized bad debt expense following the collection of long-outstanding customer invoices.

General and administrative expenses increased to $27 million from $25 million in the first quarter 2026.

Merger and integration expenses, which are primarily related to professional fees incurred in connection with the pending business combination with Transocean, decreased to $11 million from $14 million in the first quarter 2026.

Other income of $30 million compared to other expense of $10 million in the first quarter 2026, primarily due to a gain on the sale of jackup VALARIS 104.

Tax expense increased to $34 million from $28 million in the first quarter 2026. The second quarter tax provision included a $6 million discrete tax benefit and the first quarter tax provision included a $2 million discrete tax expense, which were primarily related to the resolution of prior period tax matters. Adjusted for these items, tax expense increased to $40 million from $26 million in the first quarter due to higher income before tax and a change in the jurisdictional mix of income.

Capital expenditures increased to $106 million from $101 million in the first quarter 2026.

Cash and cash equivalents decreased to $541 million as of June 30, 2026, from $578 million as of March 31, 2026, primarily due to capital expenditures, partially offset by cash flow from operations and proceeds from asset sales.

Conflicts in the Middle East

The ongoing conflicts in the Middle East negatively impacted Adjusted EBITDA by approximately $30 million compared to $8 million in the first quarter, primarily due to a full quarter of higher costs to maintain insurance coverage for war-related risks for jackups operated by Valaris in the region, as well as incremental costs and lower revenues associated with project delays for VALARIS 250 and 116, which were undergoing planned maintenance and contract preparation projects in shipyards located in the region.

Based on information currently available, we expect these adverse impacts to moderate in the second half of 2026, as VALARIS 250 recommenced its bareboat charter contract in July and VALARIS 116 is expected to recommence its bareboat charter in the third quarter. In addition, insurance costs to maintain war-related coverage are expected to be lower than those incurred in the first half of the year primarily due to the sale of VALARIS 104 and lower premiums from securing longer term coverage.

Second Quarter Segment Review

Floaters

Revenues exclusive of reimbursable items increased to $279 million from $193 million in the first quarter 2026, primarily due to more operating days for VALARIS DS-17, DS-12 and DS-10, as DS-17 commenced a new contract late in the first quarter and DS-12 and DS-10 commenced new contracts during the second quarter.

Contract drilling expenses exclusive of reimbursable items increased to $168 million from $151 million in the first quarter 2026, primarily due to incremental operating costs associated with the three drillships that recently commenced new contracts. This was partially offset by the reversal of a previously recognized bad debt expense following the collection of long-outstanding customer invoices.

Jackups

Revenues exclusive of reimbursable items decreased to $183 million from $196 million in the first quarter 2026, primarily due to fewer operating days for VALARIS 117, which completed its contract early in the second quarter and began planned maintenance and contract preparations in the shipyard, as well as lower average daily revenues driven by lower day rate accommodation services provided by certain North Sea jackups.

Contract drilling expenses exclusive of reimbursable items increased to $144 million from $129 million in the first quarter 2026, primarily due to higher repair and maintenance costs, largely attributable to planned maintenance for VALARIS 117 and leg repairs for VALARIS 106, as well as a full quarter of higher costs to maintain insurance coverage for war-related risks for jackups operated by Valaris in the Middle East.

ARO Drilling

Revenues of $127 million were in line with the first quarter 2026. Contract drilling expenses decreased to $72 million from $75 million in the first quarter, primarily due to adjustments recorded by ARO in connection with the current quarter finalization of its 2025 financial statements. This was partially offset by higher repair and maintenance costs for rigs undergoing shipyard projects and higher personnel costs.

Other

Revenues exclusive of reimbursable items decreased to $40 million from $42 million in the first quarter 2026. Contract drilling expenses exclusive of reimbursable items increased to $27 million from $23 million in the first quarter, primarily due to planned maintenance and contract preparation projects for VALARIS 250 and 116, as well as a full quarter of higher costs to maintain insurance coverage for war-related risks for those rigs.

			Three Months Ended
			(Unaudited)
	Floaters							Jackups						ARO⁽¹⁾						Other						Reconciling Items⁽¹⁾⁽²⁾						Consolidated Total
(in millions of $, except %)	Q2 2026		Q1 2026			Chg		Q2 2026		Q1 2026		Chg		Q2 2026		Q1 2026		Chg		Q2 2026		Q1 2026		Chg		Q2 2026			Q1 2026			Q2 2026		Q1 2026			Chg

Operating revenues:
Revenues (exclusive of reimbursable revenues)	$	279.0	$	192.6		45	%	$	183.4	$	195.8	(6	)%	$	126.9	$	127.4	—	%	$	39.9	$	41.7	(4	)%	$	(126.9	)	$	(127.4	)	$	502.3	$	430.1		17	%
Reimbursable revenues		11.0		5.0		120	%		13.8		14.4	(4	)%		—		—	—	%		12.1		15.9	(24	)%		—			—			36.9		35.3		5	%
Total operating revenues		290.0		197.6		47	%		197.2		210.2	(6	)%		126.9		127.4	—	%		52.0		57.6	(10	)%		(126.9	)		(127.4	)		539.2		465.4		16	%
Operating expenses
Contract drilling expenses (exclusive of depreciation and reimbursable expenses)		167.9		150.6		(11	)%		143.9		128.8	(12	)%		71.6		75.1	5	%		27.4		22.7	(21	)%		(30.4	)		(36.8	)		380.4		340.4		(12	)%
Reimbursable expenses		10.5		4.9		(114	)%		12.7		13.2	4	%		—		—	—	%		11.9		14.9	20	%		—			—			35.1		33.0		(6	)%
Total contract drilling expenses (exclusive of depreciation)		178.4		155.5		(15	)%		156.6		142.0	(10	)%		71.6		75.1	5	%		39.3		37.6	(5	)%		(30.4	)		(36.8	)		415.5		373.4		(11	)%
Depreciation		17.2		15.7		(10	)%		16.2		16.5	2	%		22.0		24.9	12	%		6.1		6.2	2	%		(16.9	)		(20.6	)		44.6		42.7		(4	)%
General and admin.		—		—		—	%		—		—	—	%		10.6		7.1	(49	)%		—		—	—	%		16.6			18.2			27.2		25.3		(8	)%
Merger and integration expenses		—		—		—	%		—		—	—	%		—		—	—	%		—		—	—	%		11.4			13.6			11.4		13.6		16	%
Other operating income		—		(2.8	)	nm			—		—	—	%		—		—	—	%		—		—	—	%		—			—			—		(2.8	)	nm
Total operating expenses		195.6		168.4		(16	)%		172.8		158.5	(9	)%		104.2		107.1	3	%		45.4		43.8	(4	)%		(19.3	)		(25.6	)		498.7		452.2		(10	)%
Equity in earnings of ARO		—		—		—	%		—		—	—	%		—		—	—	%		—		—	—	%		10.6			6.8			10.6		6.8		56	%
Operating income	$	94.4	$	29.2		223	%	$	24.4	$	51.7	(53	)%	$	22.7	$	20.3	12	%	$	6.6	$	13.8	(52	)%	$	(97.0	)	$	(95.0	)	$	51.1	$	20.0		156	%

Net income (loss)	$	94.1	$	28.3		233	%	$	60.7	$	51.6	18	%	$	14.8	$	7.4	100	%	$	7.9	$	14.6	(46	)%	$	(130.5	)	$	(119.9	)	$	47.0	$	(18.0	)	nm

Adjusted EBITDA	$	111.6	$	42.1		165	%	$	40.6	$	68.2	(40	)%	$	44.7	$	45.2	(1	)%	$	12.7	$	20.0	(37	)%	$	(113.1	)	$	(108.8	)	$	96.5	$	66.7		45	%

nm - Not meaningful ⁽¹⁾ The full operating results included above for ARO are not included within our consolidated results and thus are deducted under "Reconciling Items" and replaced with our equity in earnings of ARO. ⁽²⁾ Our onshore support costs included within contract drilling expenses are not allocated to our operating segments for purposes of measuring segment operating income (loss) and as such, these costs are included in "Reconciling Items." Further, general and administrative expense, depreciation expense and merger and integration expenses incurred by our corporate office are not allocated to our operating segments for purposes of measuring segment operating income (loss) and are included in "Reconciling Items."

Conference Call

In connection with the pending business combination with Transocean Ltd., announced on February 9, 2026, Valaris does not intend to hold future earnings conference calls or provide updates to forward-looking guidance.

About Valaris Limited

Valaris Limited (NYSE:VAL) is an 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 limited by shares (Bermuda No. 56245). 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," "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, 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 press release are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including risks associated with the pending transaction with Transocean Ltd., including, among others, the completion of the pending transaction on the anticipated terms and timing, or at all, the risk that disruptions from the transaction will harm our business, including current plans and operations, the diversion of management's time and attention from ordinary course operations to completion of the pending transaction and certain restrictions during the pendency of the transaction that may impact our business; 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, inflation, 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 (including conflicts in the Middle East and potential disruptions to key shipping lanes such as the Strait of Hormuz); 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.

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

	Three Months Ended
	Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025			Jun 30, 2025
OPERATING REVENUES
Revenues (exclusive of reimbursable revenues)	$	502.3		$	430.1		$	502.2		$	555.6		$	572.3
Reimbursable revenues		36.9			35.3			35.2			40.1			42.9
Total operating revenues		539.2			465.4			537.4			595.7			615.2

OPERATING EXPENSES
Contract drilling expenses (exclusive of depreciation and reimbursable expenses)		380.4			340.4			380.3			367.6			355.2
Reimbursable expenses		35.1			33.0			33.1			38.0			40.5
Total contract drilling expenses (exclusive of depreciation)		415.5			373.4			413.4			405.6			395.7
Depreciation		44.6			42.7			40.6			37.1			35.5
General and administrative		27.2			25.3			27.0			26.9			18.8
Merger and integration expenses		11.4			13.6			—			—			—
Other operating (income) loss		—			(2.8	)		19.5			—			—
Total operating expenses		498.7			452.2			500.5			469.6			450.0
EQUITY IN EARNINGS (LOSSES) OF ARO		10.6			6.8			2.5			4.4			(1.1	)
OPERATING INCOME		51.1			20.0			39.4			130.5			164.1

OTHER INCOME (EXPENSE)
Interest income		16.3			17.0			18.7			22.6			15.1
Interest expense, net		(24.0	)		(24.3	)		(24.8	)		(24.9	)		(24.8	)
Other, net		37.2			(2.3	)		3.1			87.7			(8.7	)
Total other income (expense)		29.5			(9.6	)		(3.0	)		85.4			(18.4	)

INCOME BEFORE INCOME TAXES		80.6			10.4			36.4			215.9			145.7

PROVISION (BENEFIT) FOR INCOME TAXES		33.6			28.4			(680.4	)		28.6			31.5

NET INCOME (LOSS)		47.0			(18.0	)		716.8			187.3			114.2

NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS		3.4			1.6			0.7			0.8			0.9

NET INCOME (LOSS) ATTRIBUTABLE TO VALARIS	$	50.4		$	(16.4	)	$	717.5		$	188.1		$	115.1

EARNINGS (LOSS) PER SHARE
Basic	$	0.73		$	(0.24	)	$	10.32		$	2.66		$	1.62
Diluted	$	0.72		$	(0.24	)	$	10.26		$	2.65		$	1.61
WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic		69.3			69.2			69.5			70.7			71.1
Diluted		70.4			69.2			69.9			71.0			71.3

VALARIS LIMITED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)

	As of
	Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Jun 30, 2025
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	541.2	$	578.3	$	599.4	$	662.7	$	503.4
Accounts receivable, net		458.1		447.9		474.8		513.7		554.2
Assets held for sale		2.0		9.2		6.4		—		—
Other current assets		197.4		169.5		144.7		167.2		169.8
Total current assets		1,198.7		1,204.9		1,225.3		1,343.6		1,227.4

PROPERTY AND EQUIPMENT, NET		2,233.8		2,165.0		2,088.8		2,034.4		2,021.6

LONG-TERM NOTES RECEIVABLE FROM ARO		357.2		351.1		345.0		314.7		308.5

INVESTMENT IN ARO		139.2		128.6		121.8		119.3		114.9

DEFERRED TAX ASSETS		1,345.3		1,355.5		1,364.2		673.9		675.5

OTHER ASSETS		174.2		158.6		159.7		152.1		155.4

Total assets	$	5,448.4	$	5,363.7	$	5,304.8	$	4,638.0	$	4,503.3


LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable - trade	$	416.0	$	398.5	$	348.2	$	327.1	$	332.3
Accrued liabilities and other		358.8		379.2		343.4		390.9		346.4
Total current liabilities		774.8		777.7		691.6		718.0		678.7

LONG-TERM DEBT		1,087.6		1,086.8		1,086.0		1,085.2		1,084.3

DEFERRED TAX LIABILITIES		31.5		30.5		29.7		27.0		29.4

OTHER LIABILITIES		336.7		307.0		325.8		357.2		377.6

TOTAL LIABILITIES		2,230.6		2,202.0		2,133.1		2,187.4		2,170.0

TOTAL EQUITY		3,217.8		3,161.7		3,171.7		2,450.6		2,333.3

Total liabilities and shareholders' equity	$	5,448.4	$	5,363.7	$	5,304.8	$	4,638.0	$	4,503.3

VALARIS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)

	Six Months Ended June 30,
		2026			2025
OPERATING ACTIVITIES
Net income	$	29.0		$	75.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense		87.3			68.6
Net gain on sale of property		(36.1	)		(27.9	)
Deferred income tax expense		20.7			173.3
Equity in earnings of ARO		(17.4	)		(1.5	)
Share-based compensation expense		15.6			11.6
Accretion of discount on Notes Receivable from ARO		(12.2	)		(12.3	)
Recovery of bad debt expense		(11.4	)		(0.1	)
Other operating (income) loss		(2.8	)		7.8
Changes in deferred costs		(30.2	)		4.3
Changes in contract assets		(7.5	)		(0.3	)
Changes in contract liabilities		6.9			(33.4	)
Other		1.9			4.5
Changes in operating assets and liabilities		51.7			14.6
Contributions to pension plans and other post-retirement benefits		(7.4	)		(8.3	)
Net cash provided by operating activities		88.1			275.9

INVESTING ACTIVITIES
Additions to property and equipment		(206.4	)		(167.4	)
Proceeds from disposition of assets		60.3			27.6
Net cash used in investing activities		(146.1	)		(139.8	)

FINANCING ACTIVITIES
Other		(1.5	)		(0.4	)
Net cash used in financing activities		(1.5	)		(0.4	)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		(59.5	)		135.7
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD⁽¹⁾		617.5			380.5
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD⁽¹⁾	$	558.0		$	516.2

⁽¹⁾	Restricted cash balances were $16.8 million, $18.1 million, $12.8 million, $12.3 million as of June 30, 2026, December 31, 2025, June 30, 2025, and December 31, 2024, respectively.

VALARIS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)

	Three Months Ended
	Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025			Jun 30, 2025
OPERATING ACTIVITIES
Net income (loss)	$	47.0		$	(18.0	)	$	716.8		$	187.3		$	114.2
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation expense		44.6			42.7			40.6			37.1			35.5
Net (gain) loss on sale of property		(37.7	)		1.6			(1.2	)		(89.5	)		(0.8	)
Deferred income tax expense (benefit)		11.2			9.5			(687.6	)		(0.8	)		3.5
Recovery of bad debt expense		(11.1	)		(0.3	)		(0.3	)		(0.5	)		(0.1	)
Equity in losses (earnings) of ARO		(10.6	)		(6.8	)		(2.5	)		(4.4	)		1.1
Share-based compensation expense		9.2			6.4			6.8			6.8			6.0
Accretion of discount on Notes Receivable from ARO		(6.1	)		(6.1	)		(6.2	)		(6.2	)		(6.2	)
Other operating (income) loss		—			(2.8	)		19.5			—			—
Changes in deferred costs		(7.4	)		(22.8	)		7.0			4.8			4.5
Changes in contract liabilities		6.5			0.4			(1.7	)		(5.9	)		(15.6	)
Changes in contract assets		(0.6	)		(6.9	)		(4.7	)		(5.3	)		0.1
Other		0.8			1.1			2.2			2.2			2.2
Changes in operating assets and liabilities		(28.6	)		80.3			(13.0	)		77.3			(21.1	)
Contributions to pension plans and other post-retirement benefits		(4.1	)		(3.3	)		(3.5	)		(4.8	)		(3.3	)
Net cash provided by operating activities		13.1			75.0			72.2			198.1			120.0

INVESTING ACTIVITIES
Additions to property and equipment		(105.5	)		(100.9	)		(106.3	)		(69.8	)		(67.2	)
Proceeds from disposition of assets		55.1			5.2			1.6			108.7			9.8
Net cash provided by (used in) investing activities		(50.4	)		(95.7	)		(104.7	)		38.9			(57.4	)

FINANCING ACTIVITIES
Payments related to tax withholdings for share-based awards		(0.1	)		(1.4	)		(0.5	)		(2.7	)		(0.1	)
Payments for share repurchases		—			—			(25.0	)		(75.0	)		—
Net cash used in financing activities		(0.1	)		(1.4	)		(25.5	)		(77.7	)		(0.1	)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH		(37.4	)		(22.1	)		(58.0	)		159.3			62.5
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD ⁽¹⁾		595.4			617.5			675.5			516.2			453.7
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD ⁽¹⁾	$	558.0		$	595.4		$	617.5		$	675.5		$	516.2

⁽¹⁾	Restricted cash balances were $16.8 million, $17.1 million, $18.1 million, $12.8 million, $12.8 million, and $12.3 million as of June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025, respectively.

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (In millions) (Unaudited)

	Three Months Ended
	Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Jun 30, 2025
REVENUES
Floaters
Drillships	$	279.0	$	192.6	$	231.1	$	253.8	$	282.7
Semisubmersibles		—		—		24.3		39.2		37.0
	$	279.0	$	192.6	$	255.4	$	293.0	$	319.7
Reimbursable Revenues ⁽¹⁾		11.0		5.0		10.5		9.9		7.2
Total Floaters	$	290.0	$	197.6	$	265.9	$	302.9	$	326.9

Jackups
Harsh Environment	$	89.9	$	96.0	$	98.2	$	110.5	$	115.0
Benign Environment		74.1		80.9		91.5		91.2		81.4
Legacy		19.4		18.9		19.1		15.0		15.6
	$	183.4	$	195.8	$	208.8	$	216.7	$	212.0
Reimbursable Revenues ⁽¹⁾		13.8		14.4		15.3		20.4		26.0
Total Jackups	$	197.2	$	210.2	$	224.1	$	237.1	$	238.0

Other
Leased and Managed Rigs	$	39.9	$	41.7	$	38.0	$	45.9	$	40.6
Reimbursable Revenues ⁽¹⁾		12.1		15.9		9.4		9.8		9.7
Total Other	$	52.0	$	57.6	$	47.4	$	55.7	$	50.3

Total Operating Revenues	$	539.2	$	465.4	$	537.4	$	595.7	$	615.2

Total Reimbursable Revenues ⁽¹⁾	$	36.9	$	35.3	$	35.2	$	40.1	$	42.9

Revenues Exclusive of Reimbursable Revenues	$	502.3	$	430.1	$	502.2	$	555.6	$	572.3

⁽¹⁾	Reimbursable revenues represent reimbursements from our customers for purchases of supplies, equipment and incremental services provided at their request.

VALARIS LIMITED AND SUBSIDIARIES OPERATING STATISTICS (In millions) (Unaudited)

	Three Months Ended
	Jun 30, 2026			Mar 31, 2026			Dec 31, 2025			Sep 30, 2025		Jun 30, 2025
ADJUSTED EBITDA⁽¹⁾
Floaters
Drillships	$	114.3		$	43.8		$	60.4		$	94.7	$	137.3
Semisubmersibles		(2.7	)		(1.7	)		(2.0	)		11.1