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 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>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. 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 Zacks.com click here.
Zacks Investment Research