Valaris Limited · NYSE:VAL
Valaris — Ensco — Pareto Securities' Annual Oil & Offshore Conference 2013
32 slides from Valaris's conference presentation, Sep 3, 2013
Slide 1: Pareto Securities' Annual Oil & Offshore Conference
Pareto Securities’ 20 Annual Oil & Offshore Conference Dan Rabun, Chairman & CEO 4 September 2013 GoBeyond
Slide 2: Forward-Looking Statements
ENSCcCO | Forward-Looking Statements Statements made today that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include words or phrases such as
Slide 3: Ensco in 2008
ENSCcCO | a Ensco in 2008 2008 Fleet Size / % of Revenues — Floaters 214% — Jackups 43/ 96% Countries re Customers 39 Backlog ($B) $4 Revenues ($B) $2.2 Total Capitalization ($B) $5.0 Annual Dividend (per share) $0.10 Customer Satisfaction Rating #2 — #Categories Ranked #1 S Credit Rating Baa1
Slide 4: Key Milestones
ENSCcCO ~P Key Milestones 2008 2009 2010 2011 ° Ordered three ENSCO 8500 Series® ultra-deepwater semisubmersibles ($1.6 billion commitment) Redomesticated to U.K. — improved operational oversight, tax efficiencies and capital management flexibility Increased dividend from $0.10 to $1.40 per share an
Slide 5: Deepwater average day rates have increased more than 50%
ENSCcCO > | In the two-plus years since the announcement of the acquisition, deepwater average day rates have increased more than 50% $600 $500 - $400 - $300 $200 Deepwater Average Day Rates 52% Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13 Note: Deepwater average day rates for new contrac
Slide 6: Key Milestones
ENSCcCO | et Key Milestones Ordered three ultra-premium harsh environment jackups ($700 million+ commitment) 2011 . 2013 * Increased dividend 33% to $2.00 per share annually » Ranked #1 in Total Customer Satisfaction in EnergyPoint survey for third consecutive year * Ordered ENSCO 110, premium newbu
Slide 7: Ensco 2008 vs 2Q13
ENSCcCO > | aan 2008 2Q13 Fleet Size / % of Revenues — Floaters — Jackups Countries Customers Backlog ($B) Revenues ($B) Total Capitalization ($B) Annual Dividend (per share) Customer Satisfaction Rating — #Categories Ranked #1 Credit Rating *Revenuesrepresentstrailing twelve monthsended June 30, 20
Slide 8: Net Income Margin
ENSCcCO ~~ > Net Income Margin 27% sey 24% 16% 16% | is 1 ESV SDRL NE RDC Source: Company filings as of 23 August, 201.3; sum of tralling eight quarters of net income attributable to parentaivided by sum of tralling elght quarters of revenue.
Slide 9: Fleet Highgrading
ENSCcCO ~~ > Fleet Highgrading * Eight newbuild rigs to be delivered through 2015 * $750 million of budgeted rig enhancements to existing fleet in 2013 and 2014 * 11 rigs sold over last three-and-a-half years — $700 million+ of proceeds reinvested into fleet — $56 million total gain on sales
Slide 10: Organic Growth from Newbuild Program Underway
ENSCcO | Organic Growth from Newbuild Program 8 Unde WY 2) Nered 4 2004 = 2005 2006 2007 2008 = 2009 2010 2011 2012 2013-2014 2015 =Semisubmersibles =Premiumjackups —® Drillships 10
Slide 11: Newbuild Delivery Schedule
ENSCcCO ~~ > Newbuild Delivery Schedule 1013 2013 3013 4013 1014 2014 3014 4014 1015 2015 3015 A Ensco ps7 | Contracted ENSCO 120 a Contracted ENSCO 121 — Contracted | | ENSCO DS-8 a ENSCO DS-9 ee ENSCO 110 EEE on) == =Drillships lm Premium jackups nt
Slide 12: Newest Ultra-Deepwater Fleet
| Newest Ultra-Deepwater Fleet (2 7,500’) Avg. Age of Fleet Years ESV SDRL RIG Source: IHS-ODS Petrodata — August 2013 — Ultra-deepwater includes competitive semisubrnersibles and drillships able to drill n 7,600" and greater water depthsincluding rigsthat are cold stacked. Average age excludesrigs
Slide 13: Floater Revenues
ENSCcCO ~~ > Floater Revenues 2012A % of Floater Revenues Operating Margin* 2012A 2015E 11-20 ears Mid 40% 33% 25% 20+ | Yours High 30% 17% 10% *Operating Margin = (Revenues— Contract Drilling Expense) / Revenues. Assumesno asset sales. 13
Slide 14: Premium Jackup Fleet Overview
ENSCcCO | Premium Jackup Fleet Overview Largest premium jackup fleet $1 billion+ invested in existing jackup fleet since 2005 $1 billion committed to build three ultra-premium ENSCO 120 Series jackups and one premium jackup, ENSCO 110 All marketed jackups are contracted ENSCO 110 KFELS B Class premi
Slide 15: ENSCO 120 Series Ultra-Premium Jackups
ENSCcCO > | aan ENSCO 120 Series Ultra-Premium Jackups * Three under construction * $700 million+ investment * 40,000’ total drilling depth * 400’ water depth * 2.5 million pound quad derrick * State-of-the-art cantilever envelope * Ultra-deep gas/long-reach wells 15
Slide 16: Premium Jackup Fleet
ENSCcCO | Premium Jackup Fleet % Jackups Undergoing Upgrades / Surveys ~55% 2013E 2014E 2015E Pee Mid ~25% * Utilization 80% t t Operating Low Margin 50% 2012 - 2014 - 2013 2015 “Ltlization forjackup rigs including rigsthatare cold stacked. Assumesjackypswithout contracts in 2015 enew at expiring da
Slide 17: Operational Levers Drive Financial Results
ENSCcCO | Operational Levers Drive Financial Results Newbuilds + Revenue Growth Upgrades “ * Margin Higher Expansion Utilization 17
Slide 18: Global Platform
ENSCcCO | ae Global Platform Europe & Mediterranean | Ser 1 ‘ Jackups: a » Ships te Semis Jackups 7 Mexico Ships 3 ‘Semis az Ships 4 Jackups: 4
Slide 19: Benefits of Standardization
ENSCcCO > | aan Benefits of Standardization ENSCO Samsung DP3 Megathyst DP3 Premium KFELS 8500 Series® (7) Drillships (8) Semisubmersibles (4) | Jackup Mod V-A.B + Super (11) | Shipyard Kerearers <P swsmcnewrmowms shipyard GE) De Hoop [keppel aa | Common a 2 & Training a Repair& = = Maintenance \ \
Slide 20: Standardization: Repeat Customers See the Benefits
Standardization EnNsCcO ~~ > Repeat Customers See the Benefits ENSCO | ENSCO | ENSCO | ENSCO | ENSCO | ENSCO | ENSCO 8500 8501 8502 8503 8504 8505, 8506 Anadare'| nexen | nexen |G Cobalt 2 Anadarig! | Apadarie! Tota bisa} neblov| Apache | TULLOW ww) nenebleay ri 4 20
Slide 21: Success of the ENSCO DS Series
ENSCcCO | Success of the ENSCO DS Series BP Has Contracted 3 Drillships ENSCO DS-3: U.S. Gulf of Mexico ENSCO DS-4: Brazil ENSCO DS-6: Angola 21
Slide 22: Current Supply and Demand
ENSCcCO ~~ > Current Supply and Demand Marketed utilization — 97% for floaters — 94% for jackups Significant volume of new discoveries — ~45 new discoveries year-to-date Deepwater well programs taking longer to drill 22
Slide 23: Supply Considerations
ENSCcCO ~~ > Supply Considerations Rigs under construction — ~40 new floaters and ~60 new jackups to be delivered though 2014 Aging global fleet — 54% of jackups and 37% of floaters are older than 30 years Constraints for additional rig orders — shipyard / equipment provider constraints — crewing ri
Slide 24: Demand Outlook
ENSCcCO ~~ > Demand Outlook New discoveries lead to additional appraisal and developmental drilling Stable commodity prices above the economic breakeven for our customers Brazil to develop pre-salt basins Customer demand more diversified — NOCs driven by domestic economy / politics — Supermajors and
Slide 25: Safety, Health & Environment
0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 ENSCcCO | Safety, Health & Environment Total Recordable Incident Rate 2007 2008 2009 2010 2011 2012 YTD 2013 Zero-incident goal STOP work authority Comprehensive training Quality control and audit Dedicated safety management systems 25
Slide 26: Competency Assurance Program
ENSCcCO ~~ > Competency Assurance Program Commitment to Employee Development International Association of Drilling Contractors (IADC) has awarded accreditation to Ensco training programs Focus on safety and efficiency of operations Defined policies and procedures Systems to ensure continuous develop
Slide 27: Industry Leader in Customer Satisfaction
ENSCcCO ~~ > Industry Leader in Customer Satisfaction Rated #1 » Total Satisfaction + Job Quality + Performance & Reliability * Technology * Special Drilling Applications + International + Multinationals North Sea » Non-Vertical Wells + Shelf Wells Total Satisfaction OFFSHORE DRILLERS
Slide 28: Strong Financial Position
ENSCcCO ~~ > Strong Financial Position * $11 billion of contracted revenue backlog « Baa1/BBB+ ratings from Moody’s/S&P « Broad diversification: fleet, markets and customers 62% 41% 38% ‘| ‘| 7 7 7 RIG NE RDC ESV DO SDRL Leverage Ratios Source:18! Group statistics for debt-o-capital ratiosforpeers (
Slide 29: Dividends and Growth
ENSCcCO ~> Dividends and Growth Payout Ratios * ~3.5% dividend yield 121% — above average for S&P 500 dividend payers * Conservative payout ratio 72% provides flexibility oe, — investments and/or future dividend increases 36% — 340%, * $2 billion share buyback authorization o% “SDRL DO RIG ESV RDC S
Slide 30: Estimated Capital Expenditures
ENSCcCO ~~ > Estimated Capital Expenditures Sbillions Sustaining 2014 ig enhancement capital expenditures for currently approved Enhancements projects. Final budget TBD. Newbuild y pe : Fed “ ¢ r T r 1 2013 2014 2015 2016 ™ Newbuild Construction = Rig Enhancements = Sustaining 30 Note: Final rig enh
Slide 31: Summary
ENSCcCO ~~ > Summary » Newest ultra-deepwater fleet * Largest premium jackup fleet * Talented workforce * Global presence * #1in customer satisfaction * Safety and operational excellence * Superior financial results Investin High- Quality Fleet Operational ; Excellence Leaderin Supenet Increase Tale
Slide 32: ENSCO Go Beyond
ENSCO ~~ Go Beyond
Ensco — Pareto Securities' Annual Oil & Offshore Conference 2013 on 6ix