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- **Q3 Financial Strength**: $254M EBITDA, $139M free cash flow, and $340M capital return via dividends.
- **Contract Momentum**: $310M BP extensions for Black Lion/Hornet, $125K/day North Sea jackup, and $450K/day Ghana well win.
- **Cost Efficiency**: $135M BOP-related savings offsetting outflows, 2025 EBITDA guidance $1.1-1.125B.
- **Market Recovery**: 70% 2026 drillship backlog, targeting 90-100% by H2 2026. Deepwater utilization stabilizing at 90%, with 18 UDW rig years per quarter in Q2/Q3.
- **Operational Excellence**: Record Guyana performance (60% wells <35 days), U.S. Gulf MPD benchmarking, and 12,500ft step-out ahead of AFE.

**【CEO Summary Section】**
- **Q3 Financial Highlights**: Adjusted EBITDA of $254 million, free cash flow of $139 million, and $87 million in net disposal proceeds. Dividend of $0.50 per share declared for Q4, bringing total 2025 capital return to $340 million.
- **Contract Wins**: Noble Black Lion and Black Hornet extended by BP for two years ($310M each), Noble Resolute awarded $125,000/day jackup contract in Dutch North Sea, and Noble Venturer secured $450,000/day well in Ghana.
- **Market Outlook**: 70% backlog coverage for 15 high-spec drillships in 2026, targeting 90-100% by H2 2026. Positive signs of stabilization in deepwater utilization (90% marketed) and contracting momentum (18 UDW rig years per quarter in Q2/Q3 vs. 16 in prior years).
- **Operational Excellence**: Record-setting performance in Guyana (60% of 25 wells drilled in under 35 days) and U.S. Gulf (Black Hornet sets MPD benchmark, Black Lion completes 12,500ft step-out ahead of AFE).

**【CFO Financial Commentary】**
- **Q3 Financials**: Contract drilling revenue $798 million, adjusted EBITDA margin 32%. Full-year 2025 EBITDA guidance narrowed to $1.1-1.125 billion (midpoint implies Q4 EBITDA ~$280 million).
- **Backlog**: $7 billion as of October 27, with $2.4 billion scheduled for 2026 and $1.9 billion for 2027. Excludes reimbursables and ancillary services.
- **Cost Management**: $135M BOP-related cash outflows (Q4 2025: $35M; 2026: $100M), offset by $45M annual savings. 2025 CapEx guidance $425-450M (net of reimbursables).
- **Liquidity**: Cash balance $478 million as of Q3, with $27.5M received from Noble Reacher sale.

**【Q&A Key Highlights】**
- **Utilization Targets**: CEO confident in securing 2/3 of Viking, DeSouza, and Black Rhino rigs for 2026, with line of sight on multiple opportunities.
- **BOP Lease Costs**: $135M total outflows (Q4 2025: $35M; 2026: $100M), yielding $45M annual savings. Reinvesting savings into high-spec rig reactivations.
- **2026 Outlook**: Moderately lower EBITDA in H1 2026 vs. H2 2025, with inflection expected late 2026. Day rates seen bottoming, with focus on deepwater exploration demand.
- **Norway Market**: Reactivation of Noble Interceptor signals potential CJ70 utilization uptick, though limited near-term visibility.
- **West Africa vs. South America**: West Africa demand lagging due to long-cycle projects, while South America (Guyana, Suriname) driving near-term activity.


Noble Corp (NE) Q3 2025 Earnings Call Transcript

Contract Drilling Services

Reimbursables and Other

NE

NE fundamentals

You can ask Aime