Morningstar Rating

Stock Research and Analysis

by Stephen Ellis

Bulls Say

The planned spin-off of many of Noble's commodity rigs in 2014 could reduce Noble's debt while boosting its multiple as investors prefer to own premium assets.
Noble was ranked first in customer satisfaction with multinational oil and gas customers.
We estimate the net asset value of Noble's fleet to be about $8 billion, or $31 per share. 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. Excluding its Shell work, Noble has about 11% of its backlog 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 77 offshore rigs that drill for oil and natural gas globally, which includes six rigs under construction. About 60% of Noble's customer base are   Read more 

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