Noble Corporation’s Chief Financial Officer Richard Barker discussed the significant influence of its long-term commitments in Guyana and Norway on the company’s backlog profile during their Q3 earnings call this week. Noble’s total backlog stands at US$4.7 billion, a slight dip from the previous quarter’s US$5 billion. Barker noted that this sequential decrease primarily reflects the fixed contracts with ExxonMobil in Guyana, under the Commercially Enabling Agreement (CEA), and with Aker BP in Norway, which did not add new bookings in the recent quarter. These long-term commitments, he stated, have an “outsized impact on our total backlog profile.”
ExxonMobil’s CEA facilitates use of four of Noble’s drillships—Noble Tom Madden, Noble Sam Croft, Noble Don Taylor, and Noble Bob Douglas—through August 2028.
Noble’s Chief Executive Officer (CEO) Robert Eifler expanded on the advantages of Noble’s backlog, outlining its exposure to market repricing and shorter contract durations relative to competitors. The company finds this advantageous as 62% of its marketed floater fleet’s 2024 available days are subject to market repricing. Approximately one-third of this re-pricing exposure stems from the CEA rigs operating in Guyana, with the remaining two-thirds tied to uncontracted days across Noble’s ultra-deepwater fleet. Eifler described this as “an advantageous exposure” in a market with strong and improving day rates.
Further, Noble sees potential opportunities with Chevron, which is set to acquire Hess, a partner in the Stabroek Block offshore Guyana. Eifler expressed hope that Noble’s strong performance in Guyana, particularly in terms of rig efficiency, could encourage Chevron to consider additional work with Noble once the acquisition concludes.
In its earnings report, Noble highlighted its strategic focus on growth and maximizing shareholder returns, underscored by the recent acquisition of Diamond Offshore assets, which was completed earlier than expected. This acquisition contributed significantly to Noble’s third-quarter contract drilling services revenue, reaching US$764 million—a sequential rise from US$661 million, attributed to the addition of legacy Diamond fleet operations. The utilization of Noble’s marketed fleet also saw an increase from 78% in Q2 to 82% in Q3, reflecting strong demand and high efficiency across its rig operations.
Despite an increase in drilling services costs to US$434 million, driven by Diamond fleet integration, Noble’s adjusted EBITDA rose to US$291 million, from US$271 million in the prior quarter. The company’s net income, however, declined to US$61 million, impacted by acquisition-related expenses. Eifler described the strategy as a key driver in Noble’s ability to deliver consistent cash returns to shareholders, with a sector-leading dividend and buyback program supporting this objective.
