Oct 27, 2026 earnings call — Contract awards and market outlook
Noble reported total backlog of $6.7 billion and Q3 Adjusted EBITDA of $201 million.
Revenue $0.7B (est $0.7B) · EPS $-0.57 (est $0.23)
Key quotes
"Over the past three months, we have secured new contract awards totaling approximately $560 million."
"Today, 109 out of 110 marketed UDW rigs are contracted currently or in the future, putting contracted utilization at 99%."
"If you exclude this $14 million increase in reimbursables, our capital expenditures guidance would have otherwise remained within the prior range."
Analyst Q&A 8
Recent market changes and India demand
Q (Arun Jayaram · JPMorgan): Analyst asked how the market evolved since last quarter and for regional color. He also asked about exploration trends over the next 12-18 months and whether larger development programs are appearing.
A: Management said fixtures were slow over the summer but contracted rig count is up a handful. They see two to three U.S. Gulf opportunities closer to firm, Caricom and West Africa moving as planned, and growing demand in India where "anywhere from two, but probably something closer to four good drillships are going to be needed in India starting in late 2027 and 2028." They noted recent Peru and Uruguay opportunities are not a needle mover and hope more wildcat exploration appears in 2027 as customers exit budget season with good cash flow.
"Since that time, it appears obvious to us that, I don't know, anywhere from two, but probably something closer to four good drillships are going to be needed in India starting in late 2027 and 2028." — Robert Eifler (CEO)
Utilization and contract mechanics
Q (Fredrik Stene · Clarksons): Analyst asked expected utilization for rigs with open capacity (Stanley Lafosse, Viking, BlackHawk) and about Guyana repricing and the Globetrotter I agreement.
A: Management said rigs compete in different markets. The Viking is likely to stay in Southeast Asia and "could perhaps get up to in the 50% type range on utilization next year." They expect work for BlackHawk and BlackRhino late 2027/2028 and said the Guyana CEA tracks the market, with a new six-month rate starting January 1st, and that Globetrotter I's intervention program is three years with a minimum of 150 days per year and is roughly break-even at that minimum.
"I think it could perhaps get up to in the 50% type range on utilization next year." — Robert Eifler (CEO)
Globetrotter costs and uptime
Q (Scott Gruber · Citi): Analyst asked how to think about Globetrotter costs while working vs not working and how they manage costs across on-off schedules. He also asked about potential uptime beyond the 150 day minimum and how Guyana rates are measured.
A: Management said when not working they can cut costs to about 50% of what a Tier-1 drillship might cost, and while working the intervention cost is around 60% of a working Tier-1 rig. They said a great year could see about 300 days, an average might be just over 200 days per year, and Guyana rates are measured against a global market rate for a Tier-1 drillship and negotiated each round rather than formulaic.
"So, not working, we can get the costs well down, call it to about 50% of what a Tier-1 drillship might cost." — Robert Eifler (CEO)
Gulf supply and contract urgency
Q (Keith Beckmann · Pickering Energy Partners): Analyst asked if smaller Gulf drillers worry about rig supply and whether programs are being moved earlier. He also asked how customers view contract duration given rising dayrates.
A: Management said it is becoming increasingly obvious that supply could be an issue to customers broadly, small and large, but they have not clearly seen customers move programs earlier. They said urgency to contract has risen over the last 90 days, the deepwater market looks tighter going into 2028, but duration decisions remain driven by need rather than panic.
"it is becoming increasingly obvious that supply could be an issue, I think, to our customers broadly, whether they're small or large." — Robert Eifler (CEO)
Why oil prices not raising activity
Q (Eddie Kim · Barclays): Analyst asked why higher oil prices this year have not driven more drilling or multiyear contracts and what is keeping customers from committing. He also asked about the pace of dayrate increases.
A: Management said higher prices give customers more cash flow but have not yet translated into more drilling because discipline has ruled customers through this cycle and near-term prices could fall quickly. They remain hopeful for more exploration in 2027. On dayrates, management said the recent moves are not surprising and that higher marketed utilization and tighter outlook into 2028 are pushing rates up.
"I think it's because, A, discipline has ruled our customers for this entire cycle, up cycle, mid-cycle, wherever we are right now." — Robert Eifler (CEO)
Jackups in Norway and fleet removal
Q (Jeff LeBlanc · TPH): Analyst asked if the four jackups are expected to remain in Norway and whether the Globetrotter II will stay in the marketed drilling fleet after the sale.
A: Management said they are hopeful the four newest CJ70 jackups will stay in Norway. They confirmed the Noble Globetrotter II will be removed from the drilling fleet after the sale.
"This is the GT II? No, it is coming out of the drilling fleet." — Robert Eifler (CEO)
Producer confidence and development urgency
Q (Noel Parks · Tuohy Brothers): Analyst asked if producers show greater confidence in 2027-28 development budgets given supply disruptions and whether there is more urgency on development drilling.
A: Management said they see remarkably little change in customer stance and that customers continue to use very conservative break-even oil price assumptions and remain disciplined. They believe deepwater economics support development but have not seen a meaningful change in customer behavior yet.
"By our observation, they continue to use very conservative break-even oil price assumptions, and they continue to be extremely disciplined." — Robert Eifler (CEO)
CapEx, upgrades, and selectivity for projects
Q (Greg Lewis · BTIG): Analyst asked about CapEx plans, whether the fleet is ready for the upcycle, and if the company needs to be more selective to win multi-rig development tenders.
A: Management said upgrades like making Claus Bachmann Norway compliant have improved marketability and earnings power and that by end of 2027 their Tier-1 drillships will have MPD, two 2.8-million-pound derricks, crown-mounted compensators, and larger thrusters. Richard Barker said normalized net CapEx was guided at the high $300 million-$400 million range and to think about normalized CapEx at the high end given inflation, excluding the Claus Bachmann, with just over half of that project's CapEx to spend in 2027. Management said they have been and will remain selective and continue to target large development programs.
"Maybe just to put normalized CapEx into focus here, what we said at the beginning of the year was that our net CapEx would be in the high $300 million-$400 million range on a normalized basis." — Richard Barker (CFO)