In results, to today, overview afternoon first remarks provide will an everyone. and second prepared my outlook XXXX. morning good quarter full for and the for year our guidance I Anton, quarter of updated Thanks, and
statement, for our cash In supplemental as addition, the data. which and as I balance analysis well financial I highlight would X-quarter review income briefly our quarter structure. press first various and includes sheet position trailing capital also a results will flows release,
published begun compensation. contracts, rates Additionally, other report status day we disclosing of fleet and updated an have and forms yesterday individual
information allows publish with continue it. basis, dayrate We extensions other long on and go-forward all our to as and contracts will so contract a compensation customer for contract the
of to earlier, to we combined reactivation EBITDA than incur costs X annualized active million. to contracts onetime transitional fleet. We As return and while are in more mentioned we results as the contribute X drillships Anton with these currently a financial $XXX that meaningfully period semisubmersible improve anticipate X expected we complete will these a reactivations
to X million rig, floater be that Now reactivations further reactivation per than average that likely reactivation while million range. that we costs we higher along estimate process are will $XX $XX our the of in will future floaters,
the we for costs. are The reactivation future now projects, and to and to lack improving of X DSA benefit a well we are increased DS-X. costs expect asking than given due of which improved will the market drillships, However, our DS-X, portion and since reactivation the positioned more customers available uncontracted reimburse remaining supply, were Valaris these significantly floater market we has to negotiated, offset contracts
earlier, costs number mentioned of these and to pay are we our the pursuing to Anton these back opportunities rigs, opportunities within a contract. first one reactivate attractive at would the we of year of As reactivation least expect
costs remainder generally mobilization for which to our costs cost include estimates As capital a our do statement rig, the with reactivation costs costs reactivate recognized but region-specific in income contract or we are or these Most all compensated. not to be recognized reminder, the for expect expenditures. include as would upgrades of
built capital growth expenditures results done both presented EBITDA as treated should EBITDAR reactivation statement value that analyzing important Valaris believe basis and key have basis. sum-of-the-parts compelling our value of income with to results. we previously, Valaris' we we we on components, it's an like out on backed As and have X EBITDA a is be when our on expenses the proposition portion believe
press have in broken release analysis presented components. out these X We our by
active currently which generating being XX reactivated, is today. our First, includes rigs flow cash rigs, of fleet positive
leased on to U.S. Second, charter and Drilling managed our that behalf a bareboat leased rigs in we and we of manage comprised agreements of ARO under rigs Gulf Mexico. customer the rigs X X of
many the Aramco. already ARO with fleet, ability operational joint we Saudi win assets, demonstrated finally, XX-XX And to for provide which unconsolidated and Third, leverage market. the stacked our work have which the continued Drilling, improving includes to venture high-specification
Adjusted to million Moving million now results. quarter costs $XX million first compared the adjusted $X onetime million EBITDA million negative $XX positive the quarter $XXX reactivation prior in compared were adding in was prior quarter the prior first and $XX the quarter was to for the first the $XXX in to quarter. Revenues in to quarter. million EBITDAR, compared back
revenues awarded from higher fleet the offset $XXX floater average XXX, utilization jackup contract to Thunder reimbursable increased quarter declined quarter rates higher for compared In lower while In extensions day to contracts. was Viking for partially for the and effective in each first with survey the XXXX. of floater was most quarter the Excluding of late Horse, being in X-year the Valaris DPS In for segment, jackup for late to in day from offset the primarily for the XXX This new to due $XXX new the undergoing of Dog segment, $XXX due contracts Gulf to prior January. $XXX of out prior rates Other million several primarily drilling either a Mad first idle which revenues expense Valaris Mexico, fleet. starting in due primarily Valaris the quarter. segment, or commenced contracts, and of higher the and first U.S. for million the the million items, partially Norway, Other X-year were Contract utilization by between XXX. BP in time to X revenues XXX, quarter, service managed the fourth by rigs, 'XX each increased million first segment,
are prepare from expense the the first prior costs. reactivation for floaters as $XXX higher expected contract in $XX million, we million due primarily contracts that items, $XX to increased million quarter rig to in long-term commence for $XXX quarter second in to reimbursable million which Excluding to increased from quarter. drilling the
higher First prior were quarter reactivation costs our than guidance.
reactivation damage estimated work involving the free approximately to remaining incurred across During costs DS-XX, related quarter, which costs causing from additional reactivation budgets. gale-force we variance included not represents to million projects, an in first $X higher due additional the minor winds its The to that the during broke scopes X were identified mornings primarily Valaris rig. incident original than of the
Aside spend in quarter sequential an costs, drilling to and repairs and increase costs during primarily contract DPS-X the higher special due in expense personnel was maintenance survey. from reactivation increase
Other store costs costs. from to $XX included statement, increased the these to from marginally to in provides quarter. Moving million quarter in onshore support within income $X The $XX million $XX $XX our prior to million the X from million. decreased which million in quarter. in costs the drilling quarter. million which also prior to the million income base total in and prior sum General expense million $XX and categories the million quarter support to our administrative from $XX Depreciation increased expense in $XX contract onshore from the $XX prior increased the of first expense $XX decreased slightly in quarter first are million
$X gain variance related and of from XXX the quarter. the $XX reorganization-related in compared to Valaris of million to benefit decreased $X income due to first in prior Tax quarter primarily is sale quarter. as million The compared quarter income assets jackups, in other $XX First in gain the quarter fees the on remaining quarter. the million a prior professional sale million fourth sale first lower to to the XX the related XX on to of sale jackup included and assets other a Valaris of XX,
$XX years. provision unrecognized benefits benefits the first position reduction a taken liabilities expense discrete primarily quarter reduction million compared $X increase associated million a taken prior to tax to for $XX in of is jurisdictional tax tax tax with due in earnings of tax with with quarter unrecognized The in tax still for primarily provision Of with reform. in tax Adjusted The reduction years refund deferred of of to CARES a note, included tax tax first prior the the associated for tax included remains discrete the of in allowances $XX related tax million timing we primarily prior the associated prior Swiss million The in positions the benefits, deferred liabilities items, of this and benefits benefits to discrete expect tax quarter prior related quarter. in of valuation mix in tax our a a to receive though tax tax million expense Act, receipt benefit quarter. and uncertain. the $XX in related
to our now quarter XXXX outlook. Moving second
will million to total range million be the million in expect We compared to in of first $XXX $XXX the as quarter. revenues $XXX
offshore U.S. days, its Gulf are from anticipate the both their in Kosmos the of by of Exxon April. the DS-X late new DPS-X that special and Brazil started in in second the start the contract the Valaris started expected we U.S. in DS-X contracts a the its its with reactivated quarter. will to each contract contract with in Second offshore year. Mexico completing coming March middle floaters Also, and contracts quarter survey. during to Gulf with late start after benefit is Oxy respective Petrobras anticipated Valaris Woodside revenues X-year DPS-X Angola DS-XX and offshore X commencing of with Australia
to and startups, $XXX We million we basis be new of range are second anticipated of quarter impact days in approximately second the are Lower anticipate rigs costs, activity wind are anticipated driven contract onshore first The a back full contracts contract the floater quarter support as to to are work. by expected reactivation XX% operating for quarter operating the costs. in third primarily of to experienced costs to to floater sequential these in on for reactivation as the by million approximately to decline these quarter $XXX expected increase and lower quarter expected that projects be expense by go decrease million and levels, down the the quarter offset costs, X partially is the sequential a fleet. fleet quarter, particularly further reflecting increase result these will reactivation as higher floater $XXX of beyond. our in compared million higher As $XX including drilling which
$XX quarter general million expected to as million in $XX the expense administrative and first second Finally, quarter. $XX is be to million compared to
EBITDA $XX result, a million adjusted quarter, compared is is and the approximately million to compared quarter be expected million $XX the quarter. negative the in first $XX be adjusted to second to for As $XX EBITDA to in million as to million first $XX expected
capital expenditures. Moving now to
and DS-X DS-XX. $XX First quarter enhancements CapEx was include $XX upgrades, The million costs million, Valaris maintenance upgrades upgrades. enhancements of to and which contract $XX of million and reactivation of related to million was CapEx $XX $XX million and and region-specific or related primarily
upgrades, to $XXX include and be million the are region-specific of to remainder majority $XX for the which is CapEx $XXX of million, is upgrades DS-XX. remainder expected contract to is or is approximately approximately expected million and related to The expected to the anticipated of with upgrades. Valaris be which enhancements maintenance million CapEx quarter enhancements and costs $XX reactivation Second for
of be to to which to to year. billion, of Moving first all expense drilling billion $XX of are guidance. Revenues million the million be now billion. $X.X reactivation $X.X expected full half during to billion year to Contract expected is substantially is to $XX inclusive expense be incurred the XXXX approximately $X.XX anticipated $X.XX of
our $XXX with of $XXX support approximately which from support to prior million G&A estimate $XX within million, $XX million $XXX onshore to to total continue unchanged costs million of to million We million $XXX included XXXX, contract in of expense combined costs drilling guidance. provides expense
adjusted of million million Some and $XXX of $XXX of million. EBITDA to adjusted these $XXX to items EBITDAR provides $XXX million
to of value and our of margin, drivers, million to translates $XXX the exclusive of leased expected support for carrying G&A for million, $XX $XX million expected $XXX margin onshore year rigs for the $XXX $XXX managed onetime adjusting of fleet. expect to approximately is million. million and Operating $XX million fleet terms active million XXXX to In for million $XX expense this stacked to reactivation when of to our full or operating million costs we $XX costs and be
capital Our $XXX to to to of but conference million million guidance any incremental announced stack fleet. from $XXX reactivations the for of unchanged guidance the assume include does remains date, expenditures not call. potential continues rest XXXX fourth This reactivations our quarter
remain negative in to would were will floaters. years. times, when particularly on future rigs we and reactivations. future As increase but flows impact reactivate a XXXX, evaluating for on opportunities current Anton in Based noted, EBITDA it additional and XXXX for CapEx, contract we highly earnings disciplined have cash lead would If
to While be customers expected XXXX, of reimbursements upfront million XXXX associated approximately and related CapEx $XX fees, the range $XXX $XXX in in in which we mobilization from million of payments million, anticipate to to capital approximately receiving with million $XXX is is DS-XX.
stacked quarter in floater will complete we've market reactivations return contracts meaningfully improve financial outlook for a As payments reminder, that to day returns. And customer market to current reported meaningful this capitalize in related we are rates not as meaningful second expect included average and high-quality some our a on on as total revenues filings. fleet any backlog, of and value. in of our the results represent mentioned, the for these provide the Based upfront other portion quarterly opportunities additional and that and these contracts, X the EBITDA contract improving the we our our active and this rigs contract or in guidance
outlook to Now the well move full and joint with for quarter Aramco. as quarter ARO second results Saudi first as XX-XX venture Drilling, our year XXXX I'll
$XX a early million, year quarter EBITDA not of $XXX to is XXXX lower delay is XXX of range $XX EBITDA in million prior expected start-up guidance Valaris is due in for to the and to million our with of XXXX the of This the to million second consolidated due primarily rig an million ARo to As quarter, $XX first utilization. in in ARO's XXXX. from the line in than the range financial newbuild increased higher in to expected first to delivery later-than-expected ARO's a be prior $XX million. results relatively quarter full to reminder, Valaris. EBITDA primarily is ARO first be quarter. $XX expected the
financial will sector. provide balance brief has our in the Valaris position. strongest overview drilling offshore a sheet of I Finally, the
$XX completed and million received As cash of not the of our XXX had XXX. the include sale plus million which $XXX cash of Valaris quarter in of million restricted end, and cash, recently does $XXX equivalents we
is half only entire is X.XX% notes note cash, XX% if senior tranche pick secured if the our of we payment. paid paid Our debt to and in cash, if half XX.XX% elect coupon pick XXXX. in $XXX the The million for interest due
of in cash payment will interest the second $XX in The year. and month, paid this installment in pay was this million we cash next November of
sheet, As we've of debt balance industry-leading previously junior and mentioned, greater us contracting and million opportunities modern the on they note provides of $XXX position of or capacity our closing, of the capitalize a million In strategic X% and basket fleet performance best-in-class secured debt operational well total pari-passu $XXX arise. assets. to high-quality as
driving fleet, increased on from will assets capital of returns. active provide be further meaningful flow We our we maximizing we focus disciplined that as opportunities cash for will only earnings stacked reactivate and continue and our growing in to allocation
as rigs by for of that rest the be million, We shareholders those total our accretive $XXX Valaris and the a and above recent and our to our our XXX highly implied is enterprise jackups, demonstrated value-driven sale transaction value jackups. environment benign stacked well will of also by a for XXX of value
responsibly open makes will will assess prepared or We've of divestiture now fleet reached we economic and please end rigs We where retire continually for for our do retirement the so, candidates. to sense questions. Operator, line our And them. it sell remarks. the
