Valaris' New Fleet Status Reports $285M Addition to Backlog

Valaris plc. VAL, formerly EnscoRowan, recently released its fleet status report comprising a number of developments. The company clinched new contracts and extensions of the existing deals for its drilling rigs leading to $285 million addition to its associated backlog. The new backlog estimate as of November-end exceeds $2.6 billion.

Of the many contract wins and expansions, the four are discussed in detail below:

Valaris JU-292 contract extension is attributable to the exercise of a six-well priced option with ConocoPhillips COP in the Norwegian Sea. The expansion is valid for a period of 300 days starting May 2020 through late February 2021. The contract’s dayrate is projected to be $185,000.

Built in 1982, the Valaris JU-87 jack-up rig secured a 21-well pact in the Gulf of Mexico. The receipt of this 295-day deal from Exxon XOM will be effective this month. Per the source, the dayrate is estimated at $50,000.
Drillship Valaris DS-18 snapped up a two-well contract with an undisclosed operator, which has a probable job duration of 180 days. The Gulf of Mexico deal is set to be valid next June onward with dayrate projection of $200,000. This drillship also received a one-well contract from EnVen in the U.S. Gulf of Mexico. The rig with projected dayrate worth $180,000 will work for 45 days starting February 2020 through March 2020.

Valaris plc Price

Valaris plc Price

Valaris plc price | Valaris plc Quote

Valaris DS-15 drillship was awarded a one-well and two-well contracts with Eni and CNOOC, respectively, in the Gulf of Mexico. While the former with an anticipated dayrate of $180,000 is expected to work for a span of 30 days the current month onward, the latter with $190,000 estimated dayrate will work for 160 days starting April 2020. Notably, DS-15 already has a contract from Murphy Oil Corporation MUR. This deal with one-well option will last from January 2020 to March 2020.

The jack-up and drillship news will surely boost this London-based offshore driller’s prospects. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Click to get this free report

Exxon Mobil Corporation (XOM): Free Stock Analysis Report

Murphy Oil Corporation (MUR): Free Stock Analysis Report

ConocoPhillips (COP): Free Stock Analysis Report

Ensco plc (VAL): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics


Latest Markets Videos


Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

Learn More