Valaris Jack-Up Rig Arrives in Angola for Multi-Well Contract

Valaris Ltd. has announced that its rig, Valaris 144, has arrived in Angola for new drilling assignments. A contract for one well with an undisclosed operator starts in early 2025, valued at $8.5 million. Additionally, a 13-well contract is planned for 2025 with an estimated value of $149-$156 million. Valaris currently holds a Zacks Rank #5 (Strong Sell), in contrast to better-ranked competitors in the energy sector.

Valaris Ltd., an offshore drilling contractor, has announced that its jack-up rig, Valaris 144, has arrived in Angola for a new drilling assignment. After concluding its project in Corpus Christi, Texas, the rig departed for Angola in late January.

In 2024, Valaris revealed it had entered into a contract with an undisclosed operator in Angola. This contract entails drilling one offshore well beginning in the first quarter of 2025, estimated to last 45 days with a total contract value of approximately $8.5 million.

Furthermore, Valaris 144 has secured an additional 13-well contract with the same operator, expected to span 730 to 770 days, initiating in the second quarter of 2025. The total value of this contract is estimated to be between $149 million and $156 million.

Currently, Valaris (VAL) holds a Zacks Rank 5 (Strong Sell). In contrast, other energy sector stocks such as Archrock Inc. (AROC), Matador Resources Corporation (MTDR), and NextDecade Corporation (NEXT) hold better ranks. Archrock is rated 1 (Strong Buy), while Matador Resources and NextDecade both hold a 2 (Buy) rating.

Archrock specializes in midstream natural gas compression and generates stable, fee-based revenues. Matador Resources, a leading exploration and production firm, has consistently surpassed production expectations, benefiting from improved operational efficiency. NextDecade is emerging in the LNG sector with its Rio Grande LNG project, responding to increasing demand for liquefied natural gas as a cleaner energy source.

For additional insights, readers can access complete Zacks Research reports on Valaris Limited (VAL), Matador Resources (MTDR), and Archrock (AROC).

In summary, Valaris Ltd. is advancing its operations in Angola, having secured a significant multi-well drilling contract. The arrival of Valaris 144 marks the commencement of new projects that promise substantial contract values. While Valaris holds a lower market rank, other companies in the energy sector show more favorable performance, indicative of the sector’s dynamic nature. Overall, Valaris’s ventures in Angola will play a crucial role in its financial trajectory.

Original Source: www.zacks.com