Valaris Awarded $1.0B in New Contracts, Backlog at $4.7B.

Valaris Limited has secured new contracts and extensions, increasing its contract backlog to approximately $4.7 billion from $4.2 billion. The company has been awarded a 940-day contract extension for drillship VALARIS DS-16 and a new 914-day contract for drillship VALARIS DS-18 with Anadarko Petroleum Corporation, a wholly-owned subsidiary of Occidental. Valaris has also been awarded a 940-day contract extension for drillship VALARIS DS-10 with ExxonMobil.

Valaris Limited, a leading offshore drilling company, has announced the securing of substantial contract extensions and new deals, significantly boosting its contract backlog. The company's contract backlog has increased to approximately $4.7 billion from $4.2 billion, driven by several notable agreements.

Among the key contracts secured by Valaris are:

1. A 940-day contract extension for drillship VALARIS DS-16 with Anadarko Petroleum Corporation, a wholly-owned subsidiary of Occidental Petroleum Corporation.
2. A new 914-day contract for drillship VALARIS DS-18 with Anadarko Petroleum Corporation.
3. A 940-day contract extension for drillship VALARIS DS-10 with ExxonMobil.

These contracts highlight Valaris' strong position in the offshore drilling market, particularly in the deepwater markets across the Gulf of Mexico, North Sea, West Africa, and the Middle East. The company's modern fleet and recent contract wins have been recognized by analysts as key factors driving its growth.

The latest developments come on the heels of Citigroup's recent rating adjustment for Valaris, where the company maintained a Neutral rating but raised its price target from $47 to $50. This move reflects growing confidence in Valaris' ability to navigate the offshore cycle, despite mixed conditions [2].

Valaris' robust performance and increasing contract backlog have been supported by improving fundamentals in the oil services sector. The VanEck Oil Services ETF (OIH), which includes Valaris as a constituent, has surged 19% over the past three months, outpacing the broader energy sector. This rebound in oil services stocks is driven by rising capital expenditures in oil exploration and sustained upward momentum in technical indicators [3].

The company's strong financial performance and strategic positioning make it a notable player in the offshore drilling market. Valaris' ability to secure significant contract extensions and new deals underscores its competitive advantage and potential for future growth.

References:
[1] https://www.marketbeat.com/instant-alerts/q3-eps-estimate-for-occidental-petroleum-lowered-by-analyst-2025-07-23/
[2] https://finance.yahoo.com/news/valaris-gets-target-bump-citi-092145420.html
[3] https://nai500.com/blog/2025/07/oil-services-stocks-rebound-valaris-baker-hughes-lead-recovery/