Noble Corporation plc

Noble Corporation lowered its full-year 2026 guidance, now projecting total revenue of $2.8 billion to $2.9 billion and adjusted EBITDA of $850 million to $925 million, down from prior ranges of $2.8 billion to $3 billion and $940 million to $1.02 billion respectively. The revision was driven primarily by a $43 million adverse impact from an operational suspension affecting both of the company's rigs in Brazil, as well as the Intrepid/Innovator swap and Viking options likely moving into 2027. Second-quarter adjusted EBITDA came in at $212 million on contract drilling services revenue of $679 million, with free cash flow negative $59 million. Noble secured two new contracts totaling approximately $200 million in backlog, bringing its total backlog to $6.8 billion, and maintained its quarterly dividend of $0.50 per share. Capital expenditure guidance for the year remains unchanged at $615 million to $665 million.

The Motley Fool compares Noble Corp and Transocean as offshore drilling investments for 2026, favoring Transocean for its cheaper valuation and potential upside from a pending merger with Valaris. Noble generated $3.3 billion in revenue and $217 million in net income in fiscal 2025, with a debt-to-equity ratio of 0.4x and $454 million in free cash flow. Transocean reported nearly $4 billion in revenue but a net loss of almost $2.9 billion, a debt-to-equity ratio of 0.7x, and $626 million in free cash flow. Transocean trades at a forward P/E of 3.1x and a price-to-sales ratio of 0.7x, compared to Noble's 21x forward P/E and 1.9x price-to-sales ratio. Analysts expect Noble's revenue to drop 9% to about $3 billion in fiscal 2026, while Transocean's revenue is seen declining 3% to $3.87 billion with a swing to net income of about $203 million. The article notes that the Iran conflict could benefit both companies long-term, but Transocean's merger, if approved, would create the world's largest offshore driller and enhance pricing power.

Citi lowered its price target on Noble Corporation to $45 from $52 while maintaining a Neutral rating, citing rig downtime in Brazil and updated contracts. The firm noted that the Noble Faye Kozack and Noble Courage floaters experienced 50 to 60 days of downtime due to technical compliance issues in the fiscal second quarter, creating a $40 million revenue headwind. Separately, Noble announced the pricing of an upsized $800 million offering of 6.250% Senior Notes due 2034, increased from an originally planned $500 million, with closing expected around June 11.

Shares of Noble Corporation and Patterson-UTI fell sharply as crude oil prices dropped to their lowest level since the start of the Iran conflict, driven by tankers resuming transit through the Strait of Hormuz and progress toward ending the war. Noble Corporation fell 6.1 percent and Patterson-UTI fell 5.6 percent, while the S&P 500 energy index declined about 2.45 percent. WTI crude fell about 4 percent to near 70 dollars a barrel and Brent fell about 4 percent to near 74 dollars a barrel, the lowest since February 27. The decline followed a U.S.-Iran interim agreement that waives sanctions on Tehran's oil and reopens the strait, stripping away the geopolitical risk premium that had boosted energy stocks.

Shares of Noble Corporation, Valaris, and Core Laboratories fell sharply as Brent crude dropped below $80 per barrel for the first time since March, driven by the Iran peace deal removing a supply-disruption risk premium. Noble Corporation declined 4%, Valaris fell 4%, and Core Laboratories dropped 4.3%. The Strait of Hormuz will remain toll-free beyond the initial 60-day period, confirming the durability of the deal and further pressuring oil prices. Lower oil prices reduce revenue projections for E&P producers, which in turn cut drilling capex and reduce demand for oilfield services. Core Laboratories is down 27.9% year-to-date and trading 37.9% below its 52-week high.