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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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

NE

NE fundamentals

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