liabilities. heightened morning and and focus to good position Thanks, the balance prepared our ability will manage interest management, My remarks given sheet our in Tom, our everyone. primarily financial discussing today on
runway previously, in more managing to and results company XXXX. with I'll fourth the liquidity the sector As quarter's financial to best our before navigate liabilities a cover into XXXX focus and continue we topic I've in our going quarter outlook a on financial noted provides that this our manner But recovery. detail, third for adequate first
expected approximately results. EBITDA was rigs we third a quarter last by better million expense results were Starting completed quarter the Adjusted call. faster merger than driven realization efficiently reducing with disciplined recently our on of XXXX $XX and better provided primarily management, guidance for million that our $XX than conference for the contracts These including costs synergies.
press XXXX our the since XX we this When in fewer completed quarter, and second comparing as to third sequential quarter quarter of following the our our XX. results to the April done quarter company a closing combined that third year, was merger days prior we merger note as on full legacy that operations earlier release, quarter have Rowan reflected results first
sequential from the $XXX $XXX prior prior million the quarter and Revenue is by declined fewer for projects was VALARIS VALARIS from million for beginning the revenue third primarily increased the the in a quarter. due on days DPS-X having segment, to floater This XXXX, DS-X, $XXX operating which new operating to prior and third compared in the had quarter. drillships revenue partially during DS-X DS-XX after $XXX million quarter million to In contracts the quarter more completing in offset quarter. DS-X days after third basis
decline million XXX contract as $XXX idle VALARIS resulted quarter were revenue startups from utilization. that by as or contracts, partially the during commencing segment between and due for VALARIS experienced offset maiden transit in contracts percentage decline JU-XXX. well $XXX jack-up is its to JU-XXX declined from other jackup periods to which the in primarily a four several In utilization point in rigs million This third
costs. Moving out to
was $XXX $XXX than due in those efficiently contract drilling than prior with the line the contracts primarily repositioned higher lower as that transaction million expense conference the rigs contract $XX our during anticipation contracts quarter rig was quarter, which $XX prior which we drilling Excluding in opportunities, $XX costs was certain third future repair million, new costs and for to of in costs contracting of and or to reducing assets quarter. for million guidance completed period million deferral prior million more the call Within projects. expense mobilizations was in
This contracts to second to which costs lower compared as a for offset in costs along the with contract new quarter, ARO is large by lease with prepare rigs preparation included contract two Drilling commenced which JU-XXX, June.
classified related Third to semisubmersible fleet. as been a quarter retired included results million which XXXX, to for the $XX and held charge sale drilling is has impairment be from asset expected of global VALARIS non-cash
asset competitive to considering invested divest return carefully rig future foresee and moving required the are the an keep for minimize the capital to rig on the we not holding costs to adequate After we opportunities costs. therefore this and quickly do
the third quarter to legacy increased to fleet JU-XXX the Rowan $XXX expense from XXXX $XXX to of third quarter addition second million the for during due quarter. full million the in active VALARIS Depreciation of quarter, in a rigs and depreciation
expense declined synergies. prior Excluding resulting to lower transaction the costs and primarily costs personnel from from million administrative to $XX million in general $XX due merger quarter
During per quarter, in adjusted of the are incurred release. the approximately amounts from the loss which $XX EBITDA excluded transaction we third press million presented costs share and adjusted merger-related
third due the bargain expense million interest in of offset Other $XXX and gain from by in gain $XX million medium driven quarter term of for July income net a million million resulting purchase was debt by near $XXX adjustment. and repurchase $XXX partially the and $XX million
third benefit tax discrete due of compared The benefit benefit was quarter from million I we $X and payments were in from working charge tax impairment to where quarter to of interest quarter. due primarily the the Tax VALARIS to outflows capital mostly quarter million for the Cash would changes third in in third expense $XX primarily the third prior in that XXXX pay discrete $XX due most discrete $X quarter million million the interest. to declined $XX tax for million the is note each year quarter, to the XXXX.
we In are million in part in the the disclosed to addition to we prepayment $XX the matter in DS-XX, receivable in were as of by VALARIS offset upon in agreement delivery process decline litigating related $XX a see the million to DS-XX quarter These to tax a third previously I'll of and quarter. partially payments accounts shipyard and to expand reduction receivable in further which a we fourth made a Australia an delay approximately and million a payment moment. that $XX accounts of interest, a expect
to quarter results million operating joint Now accounting by $XX ARO compared quarter. to closed quarter Valaris days we'll move XX our venture Operating third for reported Drilling's the XX April $XX for was income before income second million ARO operating in second on the Drilling. $XX the million. merger When was
JU-XXX days compared were ARO additional higher of to work two continues certain costs for As XXX quarter, nonrecurring as more from delivery the shipyard minor following costs its Drilling an financial prior to by other the than XX and ramp-up transition higher ARO repair operating and from on Drilling additional Valaris. for VALARIS their offset and revenues maintenance survey costs and and results rigs personnel processes to
Valaris quarter a the prior I net the of recognize driven venture quarter of condensed and entitled of Valaris method income the and the as XX-XX reminder equity a operations. in and the just to the in $X million by Drilling's nonconsolidated which Drilling's for ARO Drilling was to Aramco million Valaris' using statement only venture net nonconsolidated of joint ARO the $X of through interest included our net ARO items accounting XX% between XX% Saudi in is earnings. we and compared third is ARO's As consolidated XX% is income equity earnings accounted of Drilling ARO is of Drilling in interest Valaris' ARO discussed. portion status joint Because
its the fair is accounting. acquisition resulted ARO investment at write-up estimated of through reflected from also of U.S. The our GAAP value in from book balance fair noncash ARO, exceeding value the of the our investment value amortization basis in generated of of through difference on adjustment merger. equity ARO sheet earnings ARO This the time our the by upward impacted
loss is in The amortization quarter, $X resulting of $X million in our equity this difference in a basis through million the ARO. earnings income through recognized statement of net third
amortization our our on it time, equity in filed noncash concept. for this that of cash to trend flow venture XX-Q of is reference interest ARO period Form will our or overall impact the Drilling share expected this this generate. While information the does more continue for morning a not to with access of SEC joint our Please
will low later commencing the XXXX expect Looking VALARIS approximately guidance, Saudi JU-XXX $XXX to of EBITDA forward, be million previously end XXX to anticipated. Aramco we and Drilling our ARO contracts prior towards due than
quarter Now moving fourth to the Valaris outlook. XXXX
contracts be million approximately operating $XXX fleet XXXX, to expect VALARIS harsh North DS-XX approximately We revenue for DPS-X, quarter, be to days due by XX% as in total to higher and will from the new XX% for environment with begin utilization the the revenues fewer offset Sea. third that in declining rigs partially jackup floaters fleet DS-X
million breaks lease fourth outlook floater revenue $XXX $XXX follows, two including Gulf. revenue managed the Drilling, jackup of million to our $XXX $XX in quarter to and revenues, million $XX million U.S. rigs approximately from reimbursable as our $XX revenue approximately million $XX ARO of from and ARO segment; segment; related Drilling Our other million of from million down
Report, Note $XXX that anticipate additional and Status approximately contracted we backlog. transaction day that that outlook this and revenues from quarter revenue recent contract from contracting revenue million our excluded approximately from costs, rate plus contracted $XXX million. disclosed revenue of fourth Fleet will the most expense expected drilling includes amortized are in be Including reimbursables backlog
mobilization operating and rigs quarter, fourth compared quarter during during lower synergies. contracts realization quarter costs to prior complete completed contracts the to the expected due the costs that or mostly third reduced Sequential to quarter decline for is for the
in costs transaction depreciation prior approximately line expect expense We And will with to quarter. expense approximately is be be excluding million the anticipated $XX $XXX G&A million.
fourth is million Schedule costs to provision expected capital commencement quarter upgrade million. million fully in and million. tax includes $XX East Fourth the and contracts and quarter This $XX residual in expected before customer including the rig by of XXX, quarter expenditures new fourth $XX beginning $XX be EBITDA which multi-year are addition minor in enhancements approximately VALARIS approximately total the be upgrades, from drill JU-XXX the are to on in estimate the approximately spend will We advance floor automated Sea. on partially of Middle G contract VALARIS for North and reimbursed their the JU-XXX a of
We also anticipate $XX which the North in million of newbuild CapEx, mobilization during primarily third related maiden VALARIS of to contract Sea its the the startup JU-XXX, and commenced quarter.
our to now Turning position. financial
available cash XX, $XXX basis, repayment was of to and debt payments. $XXX on that the a of billion September million billion matured $X.X primarily sequential declined of million our forma July, million $XXX capacity interest quarter by the balance completed As credit of on cash quarter revolving facility. our due was our which repurchase for during debt and $X.X the liquidity undrawn in million was Pro of $XXX cash
which to raise The today. more is than our anticipate and capital tax credit this effective on million $XX on delivery facility, million In revolving financing an offset million payment the the as mentioned newbuild borrowings we cost at interim third facility of were on of drillships end of position addition, additional $XX borrowings balance these we our We our earlier. which revolving using plus as made funding X.XX% need by was a $XXX I the prepayment to cash delay facility payments our if had two credit quarter. are at meet LIBOR impact of partially outstanding a to
gaps since facility at the end However, using we sustainable third expire credit of long quarter of facility not the scheduled meet run is to in recognize that revolving this our XXXX. the is funding to
have disposal have idle will our tools the sit not us needs we throughout wait to the help we while for as at cycle We industry recovery. done our we several funding address and
strategy runway two focus on liquidity. will key financial bolstering tenets, Our and extending
because energy debt. have largely to capital Our composed of and deal flexibility, Since secured ability And regarding a negatively weaken, capital customer is structure guaranteed since demand us unsecured our last that concern activity. a by great call, broader continued we has of economic structure offshore it sentiment this, impact of layer drilling permits earnings adding the debt. global corresponding increased hydrocarbon impact our towards to market slowdown a debt market would and and on including
meaningfully which in funding could last on Our limit to terms an unsecured on new ability our the have credit raise quarter, market. spreads reasonable current widened in basis the
However, high-quality to us. have has third-party accessible billion market $X given billion secured currently is analysts our value, asset $XX base, the and asset which that gross between believe of we debt estimated
capital gives In ability addition to structure raising new debt, also our monetize the us to assets.
While this drilling buyers offshore rigs are for flexibility, moment. provides further there limited funding the cash at
we That sales increased potential is that said, the improvement. there's dynamic buyers rates interest market for asset and see from if day continue gradual their
And and are Saudi liquidity. ARO with noted with potential of we in as ARO Tom to develop better a ARO's us Drilling Aramco earlier, source in strategy. also ownership interest provides Our financial discussions
shareholder ARO X%, $XXX XXXX Valaris to contracted the no rig from joint compensation external company's given ARO at that financing and and that presents and which debt, maturities opportunity, a plus bear notes of with LIBOR venture. revenue Drilling Furthermore, million Drilling has meaningful XXXX were that fully will backlog. contributed has holds future receive is the this fleet for interest assets
$XXX interest $XX support ARO million portion As today, in were to cash managers of and payment the Drilling's ARO million. the accounts as position of notes. the assets cash receivables liquidity Due quarter Board expect current including at mentioned to of for a we our earlier, fourth of Tom September shareholder XX, sizable the
for would we to damages in increase Heavy Industries. related resulting Samsung from award a million that also due $XXX And an for the matter received amount Valaris. pending seeking Valaris with has arbitration interesting legal are costs
this issue to to on full or were of uncertain in timing judgment I'd part the this the if this in the Samsung high Court we fourth quarter. court and to English is ruling collection our the move although, to at of would favor, expect the its award We rule during to in note time. appeal enforce has filed the matter ruling, leave High
addition, In focused and are liabilities help we requirements, our managing reduce base. actively cost on our funding to
reached As in deliveries Valaris and to I earlier, years we shipyard newbuild delay third the mentioned drillships of an with DS-XX each. the DSME agreement quarter up by to two DS-XX
$XX of part representing XXXX. holding through a and agreement, of this interest related payment the quarter costs accrued made approximately all first As million we
are the XXXX As respectively. XXXX a for now scheduled delivery dates these June rigs result, and September
milestone would were due Most dates. million final payments approximately payments delivery interest rigs $XXX in total to are for revised these importantly, the these the and delivery, be If they upon thereon at aggregate. made
continue bear to option have at finance a note, accrued X% the year-end at interest of maturity payments through with interest will we which the milestone XXXX. year per However, promissory and
of these costs The of conditions. cash of base scrutiny our adjustment and in management market light requires tight cost to
costs and expenditures, and XX to cash taxes run support currently capital on rigs, we basis. our million require direct approximately fleet $XXX costs of manage of to Beyond interest, annualized an cover
$XXX costs that reduce. million cash million for Of are on this difficult obligations to taxes is interest more and and cash amount, debt other are pension roughly our like another $XXX
remaining going annual cash support the $XXX be can costs forward. million However, and managed spend expenditures for capital reduce to
relatively result they older and contracts. on from will less closely by be as capable capital funded. rigs reduce be continue will and that this rigs core Further, costs not stacking do scrutinized. And unless able way continue complete in disposing paybacks, ongoing we spend rigs to these and short project are projects will our non-core to is fleet, holding One or to expenditures we of
the annual giving also third to run Support rate the quarter. to stood approximately end realized synergies million our effect merger After $XXX costs decline. expense at for G&A expected are at of to-date,
is As run merger decline million year. over per the from we realize to this year, expected to rate $XXX synergies next continue to the
and expense rate the decline Similarly, synergies annual operation $XX as support is visible for million currently $XXX to is million per run are to year captured. expected merger
to As a expected expenditures support $XXX XXXX capital and result we million reduced these uses. cash expect million for costs of efforts, $XXX the next year's lowering from are
requirements. reduce we our further will for continue and so evaluate to near-term our We annual lower as base, our ways look additional process to funding cost costs, that we complete budget
on capital other work plan that completing issued reorganization, capital reorganization passu flexibility our announced actions. next by is will Rowan as financial the to senior make previously simplify we Another our pari aspect structure notes to we Companies By the gain the of senior unsecured with and Inc. structure notes. unsecured continue this the internal additional we
we effect strides have to facilitating reorganization significant we While his it. towards made have yet
our managing I rigs also to addition on operating In want liquidity cash for reiterate and our means new winning as generate better liabilities, contracts to a our to flow. focus
our sensible to cash next to and are marketing the the year to company $XXX recent to our approximately has on derisk for revenue teams XXXX contracting helped contracting of Our committed success rigs addition million backlog. outlook with for terms generate contracted
utilization for While result we we during better in will between anticipate some half to expect gaps that add half contracts the particularly for the of floaters, in second revenue XXXX, the first year. rigs more backlog of
time We the minimize will on rigs to highly uncontracted focused periods. remain cost with outflows disciplined these management year for during cash during
expect year, we efforts, as year-over-year success contracting this cycle. our improve of cost backlog, first management result and a contract improvement EBITDA next this will year's the to compared As anticipated
cause coupled improvements of to While improvement a EBITDA to our during from and with other utilization, XXXX. I EBITDA is fleet the in the as to result leading slightly lower contracts the a anticipated new we near into and in term. move utilization move XXXX just expected efforts increase in gaps Fleet gradually of cost rationalization structure back half our further in noticeable to as mentioned,
and contracts to and winning can capital strategic execute we continue to addressing will cash liquidity most that priorities this, doing focus our accretive By our structure, for shareholders. liabilities, effectively flow. we our new efforts our closing, maximize value on managing In and proactively are
over Nick. Now, to back call the I'll turn
