Morningstar Rating

Stock Research and Analysis

by Robert Bellinski, CFA

Bulls Say

The spin-off of Paragon Offshore high-grades Noble's fleet, leaving it with one of the youngest and most capable fleets in the industry.
Noble was ranked first in customer satisfaction with multinational oil and gas customers.
We forecast floater and jackup rig day rates will recover as Brent crude returns to our long-term midcycle estimate of $100/barrel. Read more 

Bears Say

A decline in day rates can have a substantial impact on Noble. Semisubmersible day rates declined 21% from 2002 to 2004 and 70% from 1998 to 1999. Jackup day rates declined 70% from 1997 to 1999.
Petrobras has capped the number of floaters in Brazil at 42 in 2014 with plans to replace the rigs over time with Brazilian-built rigs. Noble earns 21% of its sales in Brazil.
Noble's contracts with Pemex and Petrobras can be terminated on short notice (in Pemex's case) and for excessive downtime. Read more 

Management

We believe Noble has one of the deepest management benches in the industry. The executive team's commentary on industry trends is also among the best in the industry. CEO David Williams has done exceedingly well during his tenure so far, with the attractive   Read more 

Profile

Noble operates a fleet of 35 offshore rigs that drill for oil and natural gas globally, following the spin-off of most of its older rigs into Paragon Offshore. About 60%   Read more 

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