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Peter Maslanka's avatar

Comparing Noble (NE) to high yield is great insight, with NE currently carrying a 6% dividend, along with a board approved stock buyback program. Thanks Tommy.

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Tommy Lee's avatar

Thanks, Peter. Not everyone cares about income but the dividend yield (and repurchases) should provide valuation support. Noble's acquisition of Diamond seems underappreciated b/c of the synergies and Diamond's "Black" drillships are high-end with recent upgrades. I think all of these offshore drillers will have growing rewards programs in the future but some are ahead of others due to various reasons.

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Peter Maslanka's avatar

It seems like the market is giving investors a gift acquiring Noble and the other drillers VAL RIG etc. at current prices with the recent offshore sector sell off. Noble especially seems more attractive with the accrediting diamond merger. Maybe the market is yawning at Noble for the Diamond acquisition from the price of oil recently falling? Since the other driller stocks aren’t doing hot either

Hard to find a security with this yield and upside

Think a Transocean-Seadrill merger could yield a reward program or will transocean be solely deleveraging a bit longer?

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Adam Ritzer's avatar

Any more M&A coming? Cheap assets all over the place and unlevered balance sheets ex-RIG?

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