Group 1: Contract Award and Details - Noble Corporation plc has been awarded a new drilling contract for one well offshore Suriname, expected to begin in Q4 2025 with an estimated duration of 65 days [1] - The contract is valued at approximately $17.7 million, including mobilization and de-mobilization fees [2] Group 2: Rig Specifications and History - The Noble Regina Allen rig, built in 2013, features a Friede & Goldman JU3000N design and can drill to a maximum depth of 35,000 feet, operating in depths of 400 feet underwater [2] - The rig experienced a mechanical failure in its jacking system in 2022, leading to its demobilization and significant downtime, resulting in the cancellation of its multi-well contract [3] Group 3: Recent Developments and Backlog - After repairs in Rotterdam, the rig secured a contract with TotalEnergies in September 2023 for a three-well project at an operating day rate of $150,000, with additional one-well options [4] - As of February 2025, Noble Corporation's project backlog totals $5.8 billion [4]

Core Insights - The article emphasizes the importance of value investing, which focuses on identifying undervalued companies in the market [2] - Zacks Rank and Style Scores system are highlighted as tools to identify strong stocks, particularly those with high grades in the Value category [3] Company Analysis - Noble Corporation PLC (NE) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for investment [4] - NE's current P/E ratio is 8.78, significantly lower than the industry average of 10.48, suggesting it may be undervalued [4] - Over the past 12 months, NE's Forward P/E has fluctuated between 6.20 and 14.60, with a median of 10.03, indicating volatility but also potential for growth [4] - NE's P/CF ratio stands at 5.22, which is attractive compared to the industry's average of 6.92, further supporting the notion of undervaluation [5] - The P/CF for NE has ranged from 5.22 to 10.46 over the past year, with a median of 6.65, reinforcing its strong cash flow outlook [5] - Overall, NE's metrics suggest it is likely undervalued, and its earnings outlook appears strong, making it an impressive value stock at this time [6]

Fleet and Operations - Noble operates a fleet of 40 offshore drilling units, including 27 floaters and 13 jackups, focusing on ultra-deepwater and harsh environment drilling[28]. - The fleet includes 19 drillships capable of drilling in water depths up to 12,000 feet, with a total capacity of 40,000 feet for each unit[30]. - The semisubmersible drilling units can operate in water depths ranging from 300 feet to 12,000 feet, with 8 units in the fleet[31]. - Jackup drilling units are designed for depths from less than 100 feet to 500 feet, with a total of 13 high-specification units[32]. - The company has one of the youngest and highest specification fleets in the industry, with a commitment to safety performance and customer satisfaction[40]. Market Demand and Outlook - Global offshore rig demand has generally remained robust since 2021, with total demand exceeding pre-pandemic highs in 2020, although some moderation has been observed recently[41]. - The market outlook for ultra-deepwater floaters remains positive, with demand increasing from 2020 lows, particularly for high specification floaters[43]. - The majority of the jackup fleet is positioned in the North Sea, where demand has been stable but overall activity levels remain subdued compared to historical levels[46]. - The offshore drilling market is characterized by shorter-term contracts, leading to increased rig contract start-ups and potentially lower effective utilization[47]. - The incoming supply of newbuild offshore drilling rigs has diminished, but some stranded newbuild rigs may enter the market in the coming years[42]. - The company expects global energy demand to increase over the coming decades, with offshore oil and gas continuing to play a significant role in meeting this demand[48]. Financial Performance - As of December 31, 2024, Exxon Mobil Corporation accounted for 22.1% of the company's consolidated operating revenues, down from 24.5% in 2023 and 32.3% in 2022[50]. - The fair value of the company's total debt was $2.0 billion as of December 31, 2024[303]. - A hypothetical 10% increase in average exchange rates of all foreign currencies would increase future estimated operating expenses by approximately $20.6 million[307]. - The value of investments in the pension funds was $202.1 million as of December 31, 2024, with a hypothetical 10% decrease reducing the fund's value by approximately $20.2 million[309]. - The company has no borrowings outstanding under the 2023 Revolving Credit Facility as of December 31, 2024[303]. Safety and Environmental Commitment - The company's rigs achieved safety and environmental objectives 98.6% of available days in 2024, consistent with 2023 performance[58]. - The company is committed to reducing greenhouse gas emissions and regularly assesses the environmental impact of its operations[60]. Workforce and Employee Engagement - The company's workforce consists of approximately 5,000 employees, with 80% located offshore[51]. - The company maintains a focus on employee engagement through semi-annual surveys and structured performance conversations[56].

Noble Corporation plc Fourth Quarter 2024 Earnings Conference Call February 18, 2025 Disclaimer This communication includes "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, as amended. All statements other than statements of historical facts included in this communication are forward looking statements. These statements, opinions, forecasts, scenarios and projections relate to, among other things, the long-term objectives of Noble Corp ...

Financial Data and Key Metrics Changes - In Q4 2024, the company reported contract drilling services revenue of $882 million and adjusted EBITDA of $319 million, with an adjusted EBITDA margin of 34% [35] - For the full year 2024, total revenue was $3.1 billion and adjusted EBITDA was $1.1 billion [36] - The company generated $136 million in cash flow from operations in Q4, with net capital expenditures of $134 million and free cash flow of $2 million [36] - The total backlog as of February 17, 2025, stands at $5.8 billion, with approximately $2.4 billion scheduled for revenue conversion during the remainder of 2025 [37] Business Line Data and Key Metrics Changes - The fourth quarter was the first full quarter with Diamond Offshore, contributing to solid results [11] - The company has secured over $500 million in firm commitments for 2025 and 2026, with recent day rate fixtures for tier-1 drillships holding firm in the mid-to-high $400s per day [11][12] Market Data and Key Metrics Changes - Contracted deepwater demand has decreased from about 105 rigs and 94% marketed utilization to 100 rigs and 89% marketed utilization [13] - Current demand in West Africa is 13 UDW rigs, down from 17 to 20 in 2023, while South America has seen an increase in demand to 42 rigs, a current cycle high [20][22] - The U.S. Gulf remains stable with 23 contracted UDW rigs, while the Mediterranean and Black Sea have nine units contracted [23][24] Company Strategy and Development Direction - The company completed the acquisition of Diamond Offshore, aiming for $100 million in synergies, with over half already realized [10][38] - The strategy includes permanently retiring cold-stacked drillships to reduce annualized stacking costs by upwards of $20 million [15][16] - The focus is on operating a high-spec and highly utilized fleet to deliver value for customers and shareholders [16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term demand for deepwater services despite a mid-cycle lull expected to carry into 2025 [13][46] - The company anticipates a rebound in demand starting in late 2026 or 2027, with a potential net demand improvement of up to 10 or more units by that time [27][46] - Management acknowledges the current softness in the market but believes it is transitory and that the fundamental drivers for the business are durable [45][46] Other Important Information - The company declared a $0.50 dividend for Q1 2025, continuing its return of capital program, which totaled over $575 million for 2024 [11] - The company expects cash taxes to be approximately 12% of adjusted EBITDA and anticipates capital expenditures between $375 million and $425 million for 2025 [41][43] Q&A Session Summary Question: On the tier-1 drillship market - Management indicated good prospects for contracting tier-1 drillships, with more opportunities starting in 2026 than in 2025 [51][53] Question: Decision to retire the Meltem drillship - Management explained that the decision was based on a diminished call for stacked capacity and the rig's lack of operational history [60][64] Question: 2025 guidance and fleet optimization - Management confirmed that approximately 90% of the EBITDA midpoint is secured by current contracts, with ongoing efforts to optimize the fleet [73][76] Question: Demand for jackup assets in Norway - Management expressed optimism about potential demand for jackup assets in Norway, indicating stability in utilization rates [91][93] Question: SG&A expenses in Q4 - Management stated that the low SG&A figure in Q4 is a reasonable estimate for future periods, with ongoing realization of synergies from the Diamond acquisition [125][126]

Financial Performance - Fourth quarter total revenue reached $927 million, up 15.7% from $801 million in the previous quarter and 44.2% from $643 million year-over-year[2] - Net income for Q4 2024 increased to $97 million, compared to $61 million in Q3 2024, while adjusted EBITDA rose to $319 million from $291 million[4] - Operating revenues for Q4 2024 reached $927.3 million, a 44.3% increase from $643.0 million in Q4 2023[19] - Net income for the twelve months ended December 31, 2024, was $448.4 million, compared to $481.9 million in 2023, reflecting a decrease of 6.9%[19] - Adjusted net income for the twelve months ended December 31, 2024, was $348,816 thousand, compared to $266,712 thousand in 2023, marking a 31% increase[39] - Unadjusted diluted EPS for Q4 2024 was $0.59, up from $0.40 in Q3 2024, a 48% increase[40] - Adjusted diluted EPS for the twelve months ended December 31, 2024, was $2.30, compared to $1.84 in 2023, representing a 25% growth[40] Revenue Sources - Contract drilling services revenue for Q4 2024 was $882 million, a sequential increase of 15.4% from $764 million in Q3 2024[4] - New contract awards since November totaled approximately $525 million, contributing to a total backlog of $5.8 billion[4] Guidance and Future Outlook - Full year 2025 guidance includes total revenue of $3,250 to $3,450 million and adjusted EBITDA of $1,050 to $1,150 million[11] Capital Expenditures and Cash Flow - Capital expenditures for 2024 totaled $575.3 million, compared to $409.6 million in 2023, indicating a 40.5% increase[23] - Free cash flow for Q4 2024 was $2,423 thousand, a significant decrease from $164,677 thousand in Q3 2024[41] - Cash flows from operating activities for the twelve months ended December 31, 2024, were $655.5 million, compared to $574.3 million in 2023, an increase of 14.1%[23] Debt and Assets - Long-term debt rose significantly to $1.98 billion in 2024, compared to $586.2 million in 2023, marking an increase of 237.5%[21] - Total assets increased to $7.86 billion in 2024, up from $5.51 billion in 2023, representing a growth of 42.5%[21] Shareholder Returns - Share repurchases totaled $50 million in Q4 2024, bringing the full year total to $300 million, alongside $278 million in dividends paid[6] - A quarterly interim dividend of $0.50 per share was approved for Q1 2025, expected to be paid on March 20, 2025[7] Market Conditions - The marketed fleet utilization was 77% in Q4 2024, down from 82% in Q3 2024, primarily due to idle time on certain rigs[4] - Recent dayrate fixtures for Tier-1 drillships have been in the mid-to-high $400,000s, indicating strong market demand[8] - Average rig utilization for floaters was 68% in Q4 2024, up from 63% in Q4 2023, while jackups increased to 82% from 61%[25] - The average dayrate for floaters in Q4 2024 was $419,909, a decrease from $437,827 in Q4 2023[25] Costs and Expenses - The company incurred merger and integration costs of $109.4 million for the twelve months ended December 31, 2024, compared to $60.3 million in 2023[19] - The company reported a total of $20,261 thousand in merger and integration costs for Q4 2024, down from $69,214 thousand in Q3 2024[39] - Interest expense for Q4 2024 was $39,720 thousand, compared to $24,951 thousand in Q3 2024, a 59% increase[36] - The income tax provision for Q4 2024 was $(27,814) thousand, compared to $(31,608) thousand in Q3 2024, indicating a decrease in tax expense[37] Synergies and Integration - The company realized over half of the targeted $100 million synergies from the Diamond acquisition to date[3]

Core Insights - Noble Corporation reported strong fourth quarter and full year 2024 results, driven by the integration of the Diamond Offshore acquisition and recent contract wins [1][3][4] Financial Performance - Total revenue for Q4 2024 was $927 million, up from $801 million in Q3 2024 and $643 million in Q4 2023 [2] - Contract drilling services revenue reached $882 million in Q4 2024, compared to $764 million in Q3 2024 and $609 million in Q4 2023 [2][4] - Net income for Q4 2024 was $97 million, an increase from $61 million in Q3 2024 and a decrease from $150 million in Q4 2023 [2][4] - Adjusted EBITDA for Q4 2024 was $319 million, up from $291 million in Q3 2024 and $201 million in Q4 2023 [2][4] - Basic earnings per share for Q4 2024 were $0.60, compared to $0.41 in Q3 2024 and $1.06 in Q4 2023 [2] Operational Highlights - Marketed fleet utilization was 77% in Q4 2024, down from 82% in Q3 2024 [4] - The company achieved over half of the $100 million targeted synergies from the Diamond acquisition [3][9] - Noble's backlog as of February 17, 2025, stands at $5.8 billion, with recent contract awards totaling approximately $525 million [11][9] Capital Allocation - The company had total debt of $1,950 million and cash of $247 million as of December 31, 2024 [5][21] - Share repurchases totaled $50 million in Q4 2024, bringing the full year total to $300 million, alongside $278 million in dividends paid [5][6] Future Guidance - For full year 2025, Noble expects total revenue between $3,250 million and $3,450 million, and adjusted EBITDA between $1,050 million and $1,150 million [12][9] - Capital expenditures for 2025 are projected to be between $375 million and $425 million [12]

Company Overview - Noble Corporation PLC is expected to report earnings for the quarter ended December 2024 on February 17, 2025, with a consensus EPS estimate of $0.59, reflecting a year-over-year increase of +51.3% [3] - Revenues are anticipated to reach $859.74 million, which is a 33.7% increase from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] - The Most Accurate Estimate for Noble Corporation is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +5.09%, suggesting a bullish outlook from analysts [10] Historical Performance - In the last reported quarter, Noble Corporation was expected to post earnings of $0.92 per share but only achieved $0.58, resulting in a surprise of -36.96% [12] - Over the past four quarters, the company has only beaten consensus EPS estimates once [13] Industry Context - In the Zacks Oil and Gas - Drilling industry, Nabors Industries is expected to report a loss of $1.86 per share for the same quarter, with a year-over-year change of +51.6% and revenues projected at $730.4 million, down 1% from the previous year [17] - Nabors Industries has a higher Most Accurate Estimate leading to an Earnings ESP of 53.97%, but its Zacks Rank of 4 (Sell) complicates predictions for beating the consensus EPS estimate [18]

Core Viewpoint - The focus is on identifying undervalued stocks through the Zacks Rank system and Style Scores, with a particular emphasis on value investing strategies [1][2][3] Company Analysis: Noble Corporation PLC (NE) - Noble Corporation PLC (NE) currently holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for investment [4] - The stock has a P/E ratio of 10.35, which is lower than the industry average P/E of 11.62, suggesting it may be undervalued [4] - Over the past year, NE's Forward P/E has fluctuated between 6.20 and 14.60, with a median of 9.95, indicating variability in market perception [4] - NE has a P/CF ratio of 6.02, which is attractive compared to the industry's average P/CF of 7.75, further supporting the notion of undervaluation [5] - The P/CF ratio for NE has ranged from 5.42 to 10.46 over the past 12 months, with a median of 7.09, highlighting its cash flow strength [5] - Overall, the combination of NE's valuation metrics and strong earnings outlook positions it as an impressive value stock at present [6]

Here are three stocks with buy rank and strong value characteristics for investors to consider today, February 4th:  Noble Corporation PLC (NE) : This company which is an offshore drilling contractor for the oil and gas industry, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 4.3% over the last 60 days.Noble Corporation PLC has a price-to-earnings ratio (P/E) of 10.53 compared with 23 for the industry. The company possesses a Value ...