Valaris Limited (VAL)

Valaris Limited (VAL) is one of the world’s largest offshore drilling contractors, providing rigs and services to the global energy industry. Led by CEO Anton Dibowitz, Valaris’ mission is to "Provide responsible solutions that deliver energy to the world." The company holds a dominant industry position with a high-specification fleet of ultra-deepwater drillships and versatile jackups. By late 2025, VAL stock has been a play on the "Deepwater Renaissance," with a contract backlog reaching approximately $4.5 billion as of October 2025. Its vision is to lead the offshore sector in carbon-efficient drilling and automated rig operations.

The business operations of Valaris are concentrated in Brazil, the Gulf of Mexico, and the North Sea. The core growth driver in 2025 has been "The Drillship Trough Recovery," as the company expects its 10 active drillships to be fully under contract by late 2026. In Q3 2025, VAL reported adjusted EBITDA of $163 million and generated $237 million in adjusted free cash flow. The 2026 strategic roadmap focuses on "The Jackup Extension Cycle," aiming to leverage rising day rates in the UK North Sea where it secured a major extension with Shell. By utilizing its "Fleet Quality Moat"—owning the largest fleet of 7th-generation drillships—Valaris maintains significant pricing power with supermajors like BP and Petrobras. This "Asset Scarcity" is a primary driver for the VAL stock price. The company’s $75 million share repurchase program in late 2025 signals a shift toward aggressive capital return for VAL stock holders.