About Nabors Industries Nabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With presence in more than 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transit ...

Group 1: Rig Count and Production Data - The total number of active drilling rigs in the United States increased by 1 this week, bringing the total to 546, which is down by 43 from the same time last year [1] - The number of active oil rigs rose by 3 to 412, which is 70 below the same time last year, while gas rigs fell by 2 to 125, which is 22 more than last year [2] - The number of active drilling rigs in the Permian Basin remained at 247, which is 57 rigs lower than a year ago, and the Eagle Ford count decreased by 1 to 40, which is 5 fewer than last year [5] Group 2: Crude Oil Production Trends - U.S. crude oil production slightly increased by 2,000 barrels per day (bpd) to an average of 13.827 million bpd, just 26,000 bpd below the all-time high reached three weeks ago [3] - Despite fewer rigs operating compared to last year, U.S. crude production remains close to recent highs, with weekly output largely stable over the past month [4]

Company Overview - Patterson-UTI Energy, Inc. (NASDAQ:PTEN) provides drilling and completion services for oil and gas companies, including hydraulic fracturing, power and logistics solutions, and supplies for oilfield tools [1] - The company reported an average of 93 drilling rigs operating in the U.S. during November 2025, with an average count of 94 rigs earning revenue under drilling contracts for the two months ending November 30, 2025 [1] Market Sentiment - Jim Cramer expressed a negative outlook on oil and gas stocks, stating that the show has not recommended these stocks for a long time and will not do so this year [1] Investment Comparison - While Patterson-UTI Energy has potential as an investment, certain AI stocks are considered to offer greater upside potential and less downside risk [2]

Core Insights - Valaris Limited (VAL) secured a multi-year $300 million contract from Shell plc (SHEL) for its drillship VALARIS DS-8 for oil and gas resource development off the coast of Brazil [1][7] - The contract adds to Valaris' existing backlog of approximately $2.5 billion, enhancing the company's cash flow predictability and business stability [2][7] - The contract duration is approximately 800 days, with an option to extend for an additional year, scheduled to commence in the first quarter of 2027 [4][7] Company Performance - The new contract reflects Shell's confidence in Valaris' deepwater drilling capabilities and indicates increased interest from international oil companies in offshore projects in Brazil [3][5] - Valaris operates a fleet of 15 high-spec floaters and 33 jackups, positioning the company to generate additional cash flows into 2027 and beyond [5] - Valaris currently holds a Zacks Rank of 3 (Hold), indicating a stable interest from customers and potential attraction for investors [5] Industry Context - The offshore drilling sector, where Valaris operates, is sensitive to commodity price volatility, impacting overall business performance [6] - Competitors in the offshore drilling space include Helmerich & Payne, Inc. (HP) and Transocean Ltd. (RIG), both of which also hold a Zacks Rank of 3 [6]

Core Viewpoint - Borr Drilling Limited has successfully completed a public offering of 21 million common shares at a price of $4.00 per share, generating total gross proceeds of $84 million [1] Group 1: Equity Offering Details - The proceeds from the equity offering will be utilized for the acquisition of five premium jack-up rigs, as well as for general corporate purposes, which may include debt service, capital expenditures, and funding of working capital [2] - The equity offering was conducted under an effective shelf registration statement filed with the SEC on April 11, 2025, and was made solely through a prospectus and related prospectus supplement [4] Group 2: Underwriters and Management - DNB Carnegie, Inc. and Clarksons Securities AS acted as joint global coordinators and bookrunners for the equity offering, with Citigroup Global Markets, Inc., Fearnley Securities AS, and Pareto Securities AS serving as joint bookrunners [3]

Core Viewpoint - Borr Drilling Limited has announced the pricing of an offering of additional 10.375% senior secured notes due 2030, aiming for gross proceeds of approximately $165 million [1][2] Group 1: Offering Details - The additional notes will have the same terms and conditions as the existing senior secured notes due 2030 [1] - Settlement of the additional notes is expected on or about December 19, 2025, subject to customary closing conditions [2] Group 2: Use of Proceeds - Proceeds from the additional notes offering will be used for the acquisition of five premium jack-up rigs and for general corporate purposes, which may include debt service, capital expenditures, and funding of working capital [2]

Core Viewpoint - Borr Drilling Limited plans to raise approximately $85 million through an equity offering of 21 million shares to fund the acquisition of five premium jack-up rigs and for general corporate purposes [1][2]. Group 1: Equity Offering Details - The equity offering is expected to generate gross proceeds of around $85 million through the sale of 21 million shares [1]. - Proceeds will be utilized for acquiring rigs, debt service, capital expenditures, working capital, and potential mergers and acquisitions [2]. - The offering will be conducted under an effective shelf registration statement filed with the SEC [4]. Group 2: Financial Partners and Management - DNB Carnegie, Inc. and Clarksons Securities AS are the joint global coordinators and bookrunners for the equity offering [3]. - Major shareholders, including directors Mr. Tor Olav Trøim and Mr. Thiago Mordehachvili, plan to subscribe for $10 million each through associated companies [5]. Group 3: Listing and Trading Information - The company is initiating the process to list its shares on Euronext Growth Oslo, with trading expected to begin on December 19, 2025 [6]. - Following the Oslo Stock Exchange re-listing, the company will be dual-listed on both the OSE and NYSE, with NYSE as the primary listing [7].

Core Viewpoint - Borr Drilling Limited has agreed to acquire five premium jack-up rigs from Noble Corporation for a total purchase price of $360 million, which is expected to enhance its fleet and operational capabilities [1][5]. Acquisition Details - The acquisition includes three Friede & Goldman JU-3000N design rigs and two Gusto MSC CJ50 design rigs, increasing Borr Drilling's fleet size from 24 to 29 rigs [1][2]. - Two of the acquired rigs will be chartered back to Noble Corporation on a bareboat basis for 12 months, providing earnings and cash flow certainty with expected total earnings of $29 million before debt service [3][5]. Financing Structure - The acquisition will be financed through an additional offering of $150 million of existing Senior Secured Notes, a $150 million seller's credit due in 2032, and an $85 million equity raise [4]. - The two rigs under bareboat charters will be included in the Senior Secured Notes' restricted group, while the remaining three rigs will be financed on a non-recourse basis [4]. Strategic Implications - The CEO of Borr Drilling emphasized that this acquisition represents a strategic and financial opportunity, expected to be immediately accretive to Adjusted EBITDA and reduce debt per rig [5]. - The expanded fleet is anticipated to deepen customer relationships and drive long-term value for shareholders [5]. Market Positioning - The acquisition is positioned to occur at a time when demand for jack-up rigs is showing signs of strengthening, enhancing Borr Drilling's competitive advantage in the market [5]. - The company is also initiating a process to list its shares on Euronext Growth Oslo, aiming for a dual listing on the Oslo Stock Exchange, driven by strong investor interest [6].

Market Overview - The market rebound that began in April continued into the third quarter of 2025, with growth and momentum stocks delivering double-digit returns [1] - Small and micro-cap value stocks achieved their best quarterly returns since Q4 2023 [1] Performance of Deep Value Strategy - The Deep Value strategy appreciated by +26.50% in Q3 2025, outperforming the S&P 1500 Value Index (+6.29%) and the S&P 600 Value Index (+11.71%) [1] - Year-to-date, the strategy's net returns are +9.20%, compared to +9.28% for the S&P 1500 Value Index and +3.17% for the S&P 600 Value Index [1] Focus on Nabors Industries Ltd. - Nabors Industries Ltd. (NYSE:NBR) was highlighted as a significant holding, with a one-month return of 10.40% and a 52-week loss of 14.64% [2] - On December 04, 2025, Nabors Industries' stock closed at $56.91 per share, with a market capitalization of $829.501 million [2] Performance and Strategy of Nabors Industries - Nabors Industries was the largest positive contributor to the Deep Value strategy, with a market share price increase of 46% during the quarter [3] - The company is undergoing a multi-year transformation focused on leveraging leading technology, holding over 450 patents and developing industry-leading drilling automation and robotics [3] - Nabors sold its Quail Tools business segment for $600 million, with proceeds aimed at accelerating debt reduction and enhancing the company's balance sheet and liquidity [3]

Group 1 - ADES Holding Company has completed its acquisition of Shelf Drilling through a cash merger, resulting in a combined fleet of 83 offshore units and 40 onshore rigs operating in 19 countries, up from 13 previously [1][2] - The merged entity has a backlog exceeding SR34 billion ($9.07 billion), providing multi-year revenue visibility and the capacity to pursue premium opportunities [2] - The acquisition price for Shelf Drilling shares was revised to Nkr18.50 ($1.85) per share, reflecting a total equity valuation of approximately $380 million [3][4] Group 2 - ADES plans to enhance the capital structure of the combined group by refinancing Shelf's outstanding US dollar notes and Nordic bonds, aiming for an efficient capital structure [5] - The company expects to achieve annual operational cost synergies of $50–60 million and day-one interest savings exceeding $30 million [6] - ADES CEO Mohamed Farouk stated that the transaction solidifies the company's position as a leading offshore drilling company with enhanced scale and geographic reach [7]