Offshore staff
SUGAR LAND, TX — Noble Corp. and Diamond Offshore Drilling have entered a merger agreement under which Noble will acquire Diamond in a stock plus cash transaction.
Noble President and CEO Robert Eifler said, “Our position will be strengthened with the addition of four 7th generation drillships and one of the most high-spec harsh environment semisubmersible rigs in the world. Additionally, Diamond’s five conventional deepwater and midwater rigs have averaged above 85% utilization over the last three years and currently have strong forward contract coverage."
Diamond’s President and CEO Bernie Wolford added, “This combination is an ideal outcome that provides Diamond shareholders both immediate and long-term upside potential…”
On a combined basis, Noble claims its 14 working (15 in total) dual-BOP 7th generation drillships would represent the industry’s leading tier one drillship fleet.
Diamond Offshore’s semisub Ocean GreatWhite would provide the company with a high-spec floater capable of operating in harsh environments.
In combination, the new enlarged company would have a contract backlog of $6.5 billion, including an average for the four 7th generation drillships of about two years at $460,000/d.
Noble expects over time to realize annual pre-tax cost synergies of $100 million, with 75% of this coming within a year of closing the acquisition.
The company would then own and operate a 28 floaters and 13 jackups. Noble is expected to own and operate a fleet of 41 offshore rigs following the acquisition, which is scheduled to close by first-quarter 2025.
"We believe Noble’s acquisition is highly strategic, and the addition of 12 offshore floaters is expected to strengthen the company’s revenue and cash flow visibility through the long-duration offshore upcycle," according to a report by investment consulting firm Evercore ISI.
06.10.2024
