will an In afternoon, review briefly and flows includes quarter for would for quarters for highlight third financial well press as the data. full of morning my also then the quarter as supplemental overview sheet release Thanks, and outlook position. results analysis trailing prepared various provide year and balance our our our results, Anton I remarks X second and income today, cash our statement, updated which I good 'XX guidance and quarter second everyone.
Additionally, disclosing compensation. an recently fleet updated week report of began we status other contract and last rates day published and forms individual
for contractually to on continue allowed. compensation basis all rate other information where publish and extensions will contract We a and day contracts go-forward
to results a earlier, As fifth VALARIS fleet preservation DS-XX, future we is to and to for announce X the floaters significantly our the improve were Anton periods pleased X in our of financial mentioned contract of expected active floaters reactivated July. early stacked return in
not to higher first As be to quarter all our reactivate region-specific million or to for expected contract upgrades on does including reactivations compensated. largely reactivation we rigs costs reactivated would the personnel reactivations be need X inflation, average and which that million to the mentioned average. or costs conference rig. costs are floaters anticipate is in completed. mobilization This call, million expect future the $XX our to We reactivations than $XX spare that range on million to the $XX services costs due for parts for to per date X will goods include of $XX for already includes generally related floater and and VALARIS following date additional estimate DS-XX, both to This the
XX a X the also chain increase versus is reactivate are to months supply previously time costs. issues to global Additionally, extending an contributing which required in floater approximately reactivation to months expected
our supply, spend a improving mobilization to attractive remaining improved VALARIS X DS-X, the to and of the alone reactivation preservation rig given is and active as initial economics contract However, net as DS-X the return which market value and our million, lack well will portion the of on of to DS-XX are meaningfully including the to contract costs. drillships, cover million a to a total contract seek $XXX as by of available fleet. returning reactivation to on expected contract $XX provide prior The the further capital has work stacked to DS-XX opportunities and evidenced return upgrades a meaningful DS-XX continue we uncontracted commencement
As reactivation statement a as the in our recognized reminder, are the remainder costs capital with majority income expenditures. of recognized
growth like have be reactivation basis, done we our analyzing of an our believe EBITDA out the income expenses should results on act with when we capital treated we presented EBITDAR portion As as results. statement have and both EBITDA previously, expenditures
in quarter. And results. in million was the second $XX the to now reactivation adjusted prior was compared million onetime Adjusted quarter back Moving negative EBITDAR, EBITDA in to second $XX the the to $XX million quarter. costs $XX prior compared adding quarter million
quarter. discuss the one-off second of prior $XX was for the EBITDA prior quarter results for $XXX compared $XXX approximately few a guidance in there slightly million million than that our adjusted our higher were will the million, While quarter Revenues that were quarter second large items impacted shortly. second to I
rates both $XXX a utilization and million to items, to the fee million related $XXX due DS-XX of as floater revenues primarily VALARIS average contract the higher reimbursable termination well day fleets. million Excluding for jackup increased and the $XX as from to
Aside This DPS-X projects increased from and for by periodic revenues idle increased a off contract which quarter. fee, its by was and prior contracts time primarily survey. days to charter which offset DS-XX $XXX begin from location to contract time rolling Jackup ARO to VALARIS MS-X commencement agreement to million VALARIS more partially New work DPS-X revenues Contract a later VALARIS and between that the first DS-XX mobilization operating was the $XXX million previous and compared returning expense in its prior this special with VALARIS to floater to April. termination reactivation offshore the XXX Drilling Mauritania to due to was offset partially work in Angola commenced X-year This April during due Zealand Senegal returning DS-XX for following month. Valaris for quarter the in second VALARIS moved airboat expected drilling current of operating is a offshore for contract offshore XXX quarter. following
and decreased items, related by million to the rigs $XXX was partially in as operating rig in for VALARIS returned This fleet, $XX contract expense first certain the $XXX costs associated to in which increased more quarter million costs offset lower reactivation claims drilling work. with termination. primarily second to million contract days reimbursable Excluding DS-XX the from due costs to $XX to increased reactivated quarter the floater million,
approximately to of in million against the our value we us. claims end, certain by increased respect to quarter reflect change accrual these projected with of the As litigation $XX claims
contract of to DS-XX date DS-XX impairment VALARIS also to We capital recognized the termination charge incurred to project. on million related the due incurred upgrade $XX and costs of expenditures the onetime an
million expense and store these line quarter base included increased with of million. in million $XX from million General $X contract $XX our $XX $XX was the total to the modestly X the drilling the administrative and to income in in the costs slightly quarter. $XX which decreased prior prior onshore in from in support of in second Moving income second our which increased $XX support are the from costs quarter. million statement, expense the onshore categories prior costs. prior provides within Other sum million The Depreciation quarter million in increased to quarter from $XX million million to $XXX quarter. expense marginally to
assets $X Second related quarter sale XXX a included in as Tax gain to of $XX XX on compared the primarily tax gain expense a quarter. second VALARIS to in a $XXX the a related $X the of prior quarter on jackups income million of compared second in VALARIS the to of sale million the quarter. in million, jackup on other well the year prior to assets XXX, a million benefit the sale XX as sale quarter rig first in proceeds of sale and received of additional of was
tax The DS-XX the related provision $X income from primarily million expense second contract included to of tax quarter discrete termination.
$XX update, still uncertain. quarter. this was in related Act, expect By the reduction in related years. to the primarily second tax line of the benefit for to receipt for though liabilities the to tax tax timing quarter in prior with positions remains of Adjusted a items, provision CARES million first benefits million The taken tax discrete in first of $XX million of tax discrete $XX included quarter, expense unrecognized refund we of receive a associated way tax with an
Moving our XXXX to quarter outlook. now third
million $XXX will million quarter. as the to the compared to in second $XXX revenues of million total in expect range $XXX We be
rigs, offshore partial which revenues in a DS-X DS-XX Brazil, reactivated DS-X and benefit Third offshore and are quarter and for to commenced July and quarter anticipated Exxon from VALARIS contracts with Petrobras a for Angola their revenue Valaris full DPS-X respectively. quarter of
million costs, third start-ups, expense driven be $XXX million floater the quarter reactivation to meaningfully quarter of second a and third higher in in We result to second for as expected will contract levels, by quarter, fleet onshore The costs active range million including fleet. floater of the to the partially $XX As total anticipate of the anticipated particularly which costs. higher in onetime quarter decrease for these drilling approximately by incurred to is and increase activity compared the operating $XXX utilization that support contract costs beyond. anticipated million $XXX offset reflecting lower is and are primarily the in be
and million to the Reactivation adjusted to expected be million compared the be the $XX to second DS-XX general million is to quarter to $XX expected quarter million in primarily and third costs third expense quarter be to expected million for project. $XX is to beginning quarter. $XX the to is $XX relate million of Finally, million quarter. compared EBITDAR million to prior in million in compared $XX quarter the $XX in EBITDA $XX administrative to second Adjusted $XX the reactivation the third
capital to now expenditures. Moving
upgrades, $XX of Second was which quarter and impaired termination. contract $XX million the enhancements million upgrades DS-XX $XX contract million region-specific million for maintenance CapEx and and CapEx was Enhancements or include to following $X was which Valaris upgrades. $XX related million, reactivation of costs $XX million including of and
be enhancements primarily is Valaris Third reactivation and related is the is million expected to of the and which and enhancements to upgrades expected the CapEx $XX $XX for maintenance DS-X to expected upgrades. The are DS-X million million projects. and CapEx $XX be of remainder million, $XX completion to quarter to
to Moving $XX to anticipated second billion, reactivation be to of the which billion anticipated billion. expense, half Valaris of year billion full million million the reactivation be year, to XXXX million inclusive guidance. are of in expected $X.XX $X.X to to is $X.XX of to DS-XX. expense $X.XX $XXX related Revenues primarily now of approximately drilling the is $XXX Contract
$XX to EBITDAR onshore of second negative year of is million to million is Adjusted in for $XXX EBITDA as the $XXX XXXX. half from to million expense approximately expected $XXX of of half. to to unchanged combined in in of within half $X provides costs in period G&A Administrating the expected half $XX million for which with $XXX put estimate XXXX, to costs expense, for the million these the EBITDAR million $XXX prior full support provides as in million included $XXX million to first support to be of million the $XXX year to be the our The million of which the compared million and total year $XXX guidance. EBITDA drilling $XXX adjusted $XXX adjusted $XXX adjusted to compared million million $XXX million continue million and sum We items to second contract financial half incurred a the performance we transitional rigs beyond, first expected the reactivation million back several improvement work. to second year to of in and $XX to costs following of
million for lower contract reactivation adjusted partially was than contemplated our guidance guidance costs of DS-XX and Valaris termination. EBITDA guidance to costs related due contract offset to certain in $XXX Valaris net XXXX Our DS-XX delayed the claims, $XXX of prior increased our by prior the impact to primarily which million, is not commencements,
onetime expect operating $XX costs exclusive Operating drivers, managed rigs our and margin million active million XXXX terms value of full for of million million expense to for margin, $XXX the to carrying guidance this our be $XXX onshore million of fleet and approximately $XX of million to million. costs we adjusting expected fleet. our leased tax updated million to for for support $XXX translates is reactivation $XX $XXX when million for to $XXX G&A of In expected year to $XXX and
costs $XXX our expected due Valaris rig expenditures Capital expected for $XXX $XXX expenditures $XXX maintenance offset we any are $XX lower of VALARIS termination XXXX million, to Enhancements upgrades approximately DS-XX. and We million. capital million with that XXXX customer total in XXXX the than upgrades expect expected is remaining enhancements upgrades pressure partially well the as half to and of the of by first well will for million will drillships, XXXX million removal and reimbursed to reactivation costs costs kill is second $XX guidance by $XX DS-XX, We upgrades. Valaris prior $XXX which mid-XXXX. remaining million Approximately capitalized million, start will million million remainder be exclusive upgrades be XXXX. for include including a upgrade VALARIS be primarily reactivate and anticipate million DS-XX following million in as $XX managed approximately and DS-X, the reactivated to the choking of CapEx the include half capital fully of to and for as contract of addition $XX DS-XX for These Valaris to of incurred for DS-X is CapEx tensioner to the contract to to be equipment. of as the riser the DS-XX the drilling the CapEx to $XX as line in million that $XXX for
potential assume rest Our date but any for reactivations guidance reactivations continues does stacked include to to not incremental announced the of the fleet.
$XX receiving payments to addition remainder approximately to related year, this in range in over capital of to DS-XX. of received $XXX clear, mobilization million the anticipate While upfront in from be $XX the and million, second half is in million $XXX XXXX CapEx To is July fees. fee be we the the termination million expected reimbursements related to customers to
and filings. revenues these value. these contract not are backlog, the the adjusted EBITDA day related a other contract the payments in represent rates our upfront included of meaningful And reminder, contracts, in reported any or total portion of customer and a for As our average some quarterly
set the will improve costs on in of second financial in reactivate next that any reactivation several there half results may off find timing that work rigs additional DS-XX, whether may rigs costs jack-up roll contract some to we for later of we for Valaris quarters, volatility some this depending still reactivation the this over we for earnings meaningfully and be year, While the environment anticipate of are our year. harsh
as Aramco. full Now, our the I'll year results quarter move well Saudi XX-XX venture for joint as with XXXX second outlook to ARO Drilling, third quarter and
as drilling expected not EBITDA quarter second $XX due an related million with to the maintenance. in higher certain $XX out-of-service decrease rigs to prior increased be to to ARO result ARO's quarter, this in increase and of utilization to in of results is for revenues million, is million expected XXXX days $XX in $XX second contract quarter the ARO the EBITDA $XX due million reminder, lower in Valaris. to the quarter. maintenance XXXX planned year of primarily associated is to consolidated full a ARO's to As third primarily financial a EBITDA the range million. to from million $XX in expense
I Finally, financial brief of our overview position. will a provide
receivable and in for million closing, primarily highly provide million the of As stacked cash, meaningful restricted our $XX sale increase from disciplined only active collected net ramp-up million cash expenditures $XX $XXX our to of quarter primarily accounts of assets, These in July. will representing had related judiciously increase we of in an in VALARIS $XXX to working net The were fee due the XXX. of by to plus activities high-quality that capital million, operating in In cash due $XX continue and end, net fleet leverage to returns. end decrease opportunities and the we and the termination equivalents This primarily a returning partially be capital quarter offset in was DS-XX was quarter. subsequently by was during operational at rigs and XXX of working million to jackups capital $XX a to million quarter. in the proceeds exercising
earnings current award key our for We the first the meaningful a of provides in for on Our on of our additional active provide remain the economics strength winning our fleet; high-quality the for demonstrates and potential the priorities, of contract focused opportunities reactivating backlog high-quality and contract future that second, stacked the returns. for rigs rigs recent fleet. executing market Valaris glimpse Valaris DS-XX,
shareholder opportunistically act We free Operator, them. earnings, approach our sense to when the of as will flow open including drive remarks. we on if additional to through will meaningful end supports and our employ returns allocation, recovers line to free the capital cash flow questions. prepared We've now please cash disciplined will maximize for structure the strong maintain a shareholders focus market reached an balance on generation we create asset cost M&A and transactions value look to executing they priorities, or make and also sheet. having a these By industry-leading
