Sun. Jul 14th, 2024

Noble Corp. deal to buy Diamond Offshore increases fleet with four 7th generation drillships

By Vaseline Jun10,2024

Noble Corp. announced Monday that it has acquired Diamond Offshore Drilling Inc. will acquire in a stock-and-cash transaction valued at nearly $1.6 billion.

The agreement between the two Houston-based drilling contractors comes at a time of tight supply of high-spec deepwater platforms and includes approximately $600 million in cash, based on recent stock prices.

Noble will inherit a $2.1 billion backlog from Diamond Offshore, bringing the combined value of future projects to $6.5 billion.

The acquisition adds four seventh-generation drillships to Noble’s fleet, bringing the total to fifteen such high-performance vessels, all but one of which are operational. Noble highlighted that the four 7th generation drillships have approximately two-year contracts at $460,000 per day.

Noble will also have a heavy-duty semi-submersible drilling rig and five other offshore rigs with varying depth ranges that have averaged above 85% utilization over the past three years. In total, Noble will own and operate a fleet of 41 drilling rigs, including 28 floats and 13 jackups.

This is Noble’s first major acquisition since its merger with Maersk Drilling in 2021.

Noble expects annual cost savings of $100 million, 75% of which will be realized within the first year of closing.

As part of the deal, Diamond Offshore shareholders will receive approximately 0.23 shares of Noble and a cash payout of $5.65 per Diamond Offshore share, representing a premium of more than 11% over the pre-announced closing price. At closing, Diamond Offshore shareholders will own approximately 14.5% of Noble.

Noble expects the deal to close in the first quarter of 2025, after which one member from Diamond’s current board will be added to the board.

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