Financial Data and Key Metrics Changes - For Q4 2025, the company reported adjusted EBITDA of $232 million and free cash flow of $35 million, with full-year adjusted EBITDA slightly above the $1.1 billion midpoint of original guidance [4][23] - Total revenue for 2025 was $3.3 billion, with a Q4 contract drilling services revenue of $705 million and an adjusted EBITDA margin of 30% [23][24] - The total backlog as of February 11 stands at $7.5 billion, with approximately $2.3 billion scheduled for revenue conversion during the remainder of 2026 [24] Business Line Data and Key Metrics Changes - The company has seen strong booking levels across its fleet, with significant contracts awarded, including a 3-year contract with Aker BP valued at $473 million for the Noble GreatWhite [5][6] - The Noble Jayes de Souza was awarded a 2-year contract with Exxon in Nigeria valued at $292 million, and the Noble Developer received a 3-well contract with BP in Trinidad [6][8] - The company anticipates capital expenditures of approximately $160 million for the reactivation and certification of the GreatWhite [5] Market Data and Key Metrics Changes - The contracted UDW rig count has increased to 105, up from a low of 97 early last year, with a contracted utilization rate of 95% [10][11] - The average Brent crude price in 2025 was $68 per barrel, down 15% compared to 2024, yet the company achieved a 30% year-over-year backlog growth [19] - The U.S. Gulf market has softened, with the contracted UDW rig count at 21, which is 1-2 rigs below last year's average [15] Company Strategy and Development Direction - The company is focusing on high-end deepwater and CJ70 jackup markets, having completed the sale of five jackups to Borr Drilling for $360 million [20][21] - The strategic investment in the GreatWhite is expected to enhance the long-term earnings profile and NAV of the rig, positioning it well in the Norwegian market [6][21] - The company aims to maintain robust shareholder capital returns while preparing for a meaningful step-up in free cash flow next year [20][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for deepwater rigs, citing a robust pipeline of open demand and a potential tightening market by 2027 [32][80] - The company noted that while there are macro uncertainties, the backlog progress has formed a strong foundation for rising utilization and free cash flow [19][20] - Management highlighted the importance of crude prices for near-term projects but remains optimistic about the long-term outlook for deepwater developments [50][51] Other Important Information - The company has a unique backlog curve, with over 90% of its 24 floaters contracted, and anticipates an annualized run rate of approximately $1.3 billion of EBITDA by the second half of 2027 [31] - The company is committed to the CJ70 market in Norway and the North Sea, with early indications of strong utilization outlook for this fleet [21][68] Q&A Session Summary Question: Thoughts on industry consolidation - Management acknowledged that consolidation is a path for the industry post-COVID and expressed hope that it will make the industry more efficient [36][38] Question: Scale and opportunities for further expansion - Management believes they have sufficient scale and will continue to evaluate opportunities that align with the company's strategy [39][40] Question: Recent strength in the sixth-generation market - Management indicated that the recent contracts for sixth-generation rigs are project-specific and sustainable, not driven by value decisions from customers [44][46] Question: Conditions for upward momentum in rates - Management noted that both crude prices and additional contracts are necessary to achieve a tighter market, with optimism for 2027 [49][51] Question: Day rate improvement expectations - Management sees a possibility for day rates to improve but stops short of making it a base case, indicating a mix of factors will influence this [55][56] Question: Petrobras negotiations and contract awards - Management is hopeful for news in the coming months regarding ongoing negotiations with Petrobras, which are complex due to multiple dynamics [59][60] Question: Norwegian market outlook - Management expressed cautious optimism about the Norwegian market, noting contracts for CJ70s and ongoing conversations with multiple customers [66][68] Question: Future of specific rigs in the fleet - Management is exploring niche opportunities for the Globetrotter and is optimistic about the Deliverer's potential for work in 2027 and beyond [70]