Valaris Ltd.’s jack-up rig, Valaris 144, has arrived in Angola for two major contracts. The first involves a single well operation starting in 2025 valued at $8.5 million, while the second entails a 13-well contract worth up to $156 million. Valaris currently holds a Zacks Rank of #5.
Valaris Ltd., an offshore drilling contractor, has successfully positioned its jack-up rig, Valaris 144, in Angola for its upcoming drilling project. The rig recently completed operations in Corpus Christi, Texas, before embarking on its journey to Angola in late January.
In 2024, Valaris announced it has a contract with an undisclosed operator to drill one offshore well in Angola, projected to commence in Q1 2025, lasting approximately 45 days. This initial contract is valued at nearly $8.5 million.
Additionally, Valaris 144 has obtained a 13-well contract with the same operator in Angola, with an anticipated duration of 730 to 770 days. This contract is set to begin in Q2 2025, with a total estimated value ranging from $149 million to $156 million.
In terms of financial strength, Valaris currently has a Zacks Rank of 5 (Strong Sell). In contrast, Archrock Inc. (Zacks Rank 1), Matador Resources Corporation, and NextDecade Corporation (both Zacks Rank 2) are performing comparatively better in the energy sector. Archrock specializes in midstream natural gas compression services while generating stable, fee-based revenue.
Matador Resources, a notable exploration and production firm, has consistently outperformed production expectations, showcasing operational efficiency amidst favorable oil pricing. Meanwhile, NextDecade is advancing its liquefaction capacity to meet increasing LNG demand as part of global energy transition efforts.
Valaris 144 has reached Angola to begin significant drilling operations with two contracts anticipated to commence in 2025. The various contract values reflect the potential financial impact on Valaris. Current market performance indicators suggest the company’s ranking is modest compared to competitors like Archrock, Matador Resources, and NextDecade, who exhibit stronger operational efficacy in their respective domains.
Original Source: www.zacks.com
