Noble issued their financial results for Q2 and here are the highlights:
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Signed three new contracts for legacy Pacific Drilling rigs
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On track to achieve Pacific Drilling synergy target three months early
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Successful contract startups for three jackups and two floaters
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Listed on New York Stock Exchange (NYSE: NE)
Jackups
Over the course of the second quarter, customers elected to exercise options for the Noble Regina Allen and Noble Mick O’Brien for additional durations of one-well and one-year, respectively. In early April, the Noble Hans Duel began its approximately 13-month contract with IOG in the North Sea. In May, the Noble Sam Hartley moved to warm stacked status in Scotland after the completion of its contract with CNOOC, and the Noble Tom Prosser returned to work in Australia on an estimated 9-month campaign with Santos. In mid-June the Noble Scott Marks returned to operations with Saudi Aramco after its one-year suspension period. The Noble Lloyd Noble is continuing its preparations for its upcoming contract in Norway which we expect to begin in early September. In July, the Noble Tom Prosser signed a contract with Santos for three firm wells with an estimated duration of 160 days which is scheduled to begin in direct continuation of its current contract and is subject to final project sanctioning.
Floaters
In April, the Noble Sam Croft began its contract in Guyana, bringing our presence to four rigs working for ExxonMobil in that region. Also in April, the Pacific Sharav commenced its contract with Murphy in the U.S. Gulf of Mexico, with firm term into the third quarter of 2022. The Pacific Khamsin is preparing to begin operations in August for Petronas in Mexico and will follow on to a recently signed contract with Murphy for an estimated 83 days of work to begin in 4 November 2021 in the U.S. Gulf of Mexico. The rig will then move in direct continuation to the previously announced contract with EnVen. The Noble Clyde Boudreaux began its approximately four-month contract with Premier Oil Indonesia, a Harbour Energy company, in late June. In July, the Pacific Santa Ana signed a contract with APA Corporation in Suriname for one firm well plus two option wells commencing in early February 2022.
Backlog and Liquidity Update
At June 30, 2021, the Company’s estimated revenue backlog totaled approximately $1.5 billion, consisting of approximately $1.2 billion associated with the floating rig fleet and approximately $358 million with the jackup fleet. An estimated $464 million of the revenue backlog was attributable to the remainder of the year 2021. At June 30, 2021, Noble had total liquidity of $636 million consisting of $161 million in cash and $475 million available under the Company’s revolving credit facility. The Company has submitted the election to pay cash interest on its second lien notes at the upcoming interest payment date on August 15, 2021.
Outlook
Commenting on the state of the offshore drilling industry, Mr. Robert Eifler, President and CEO added, “Throughout the first part of 2021 we have seen a building pipeline of floater tender opportunities, and we are pleased to have signed new contracts on some of the high specification drillships we recently acquired with the Pacific Drilling transaction and are targeting a number of new opportunities for additional work for those rigs. We do not believe the recent volatility in commodity prices has changed our customer’s offshore rig demand, especially for the most capable rigs, and we maintain our constructive outlook for ultra-deepwater floaters and stable outlook for jackups. Mr. Eifler continued, “Noble accomplished several important milestones in the first half of 2021. We emerged from our restructuring with a strengthened balance sheet, added high specification drillships through the Pacific Drilling acquisition, and listed our equity on the New York Stock Exchange, all while continuing to provide the highest level of safe and efficient operations to our customers. As we move ahead, we remain committed to capital discipline and maintaining a strong balance sheet, and we look forward to returning to positive free cash flow in early 2022.”
Source: Noble
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