Borr Drilling Acquires Five Jackup Rigs from Noble Corporation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 08 2025
0mins
Should l Buy BORR?
Source: SeekingAlpha
Borr Drilling Ltd's stock rose by 3.26% as it reached a 52-week high amid a challenging market environment where the Nasdaq-100 is down 1.32% and the S&P 500 is down 0.19%.
The increase in Borr's stock price is attributed to its acquisition of five jackup rigs from Noble Corporation for $360 million, which includes $210 million in cash and $150 million in seller notes. This strategic purchase enhances Borr's liquidity and financial flexibility while ensuring a continuous revenue stream through a charter agreement for the rigs until December 2026.
This acquisition positions Borr Drilling favorably in the offshore drilling market, allowing it to optimize asset utilization and strengthen its competitive edge despite broader market weaknesses.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy BORR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on BORR
Wall Street analysts forecast BORR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BORR is 4.10 USD with a low forecast of 3.60 USD and a high forecast of 4.60 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 5.300
Low
3.60
Averages
4.10
High
4.60
Current: 5.300
Low
3.60
Averages
4.10
High
4.60
About BORR
Borr Drilling Limited is an international drilling contractor providing offshore drilling services to the oil and gas industry. The Company's primary business is the ownership, contracting and operation of jack-up rigs for operations in shallow-water areas (in water depths up to approximately 400 feet), including the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production customers. The Company owns approximately 29 rigs. Its rigs include Skald, Groa, Idun, Thor, Norve, Gerd, Natt, Ran, Odin, Gersemi, Grid, Galar, Njord, Prospector 1, Saga, Prospector 5, Mist, Gunnlod, Arabia III, Arabia I, Vali, Arabia II, and others. It operates oil-producing geographies throughout the world, including the Middle East, the North Sea, Latin America, West Africa and South East Asia. The Company contracts its jack-up rigs primarily on a daily rate basis to drill wells for its customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Noble Corporation Sells Five Jackup Rigs for $360 Million
- Transaction Value: Noble Corporation completed the sale of five jackup rigs to Borr Drilling for $360 million, generating approximately $210 million in cash and $150 million in seller notes, which enhances the company's liquidity and financial flexibility.
- Charter Agreement: Noble intends to operate the Noble Mick O'Brien and Noble Resolute rigs under a bareboat charter agreement with Borr until December 2026, ensuring a continuous revenue stream and asset utilization.
- Market Positioning: This transaction signifies a strategic shift for Noble in the global offshore drilling market, focusing on high-specification and ultra-deepwater drilling opportunities, thereby enhancing its competitiveness in the industry.
- Historical Context: Engaged in contract drilling since 1921, Noble's asset sale further optimizes its modern and technically advanced fleet, supporting its future growth strategy.
See More
Noble Corporation Sells Five Jackup Rigs for $360 Million
- Transaction Value: Noble Corporation completed the sale of five jackup rigs to Borr Drilling for $360 million, generating approximately $210 million in cash and $150 million in seller notes, thereby enhancing the company's liquidity and financial flexibility.
- Charter Agreement: Noble intends to operate the Noble Mick O'Brien and Noble Resolute under a bareboat charter agreement with Borr until December 2026, ensuring a continuous revenue stream and optimizing asset utilization.
- Market Positioning: This transaction allows Noble to focus on its modern and technologically advanced drilling fleet, further solidifying its leadership position in the offshore drilling industry while paving the way for future growth opportunities.
- Historical Context: Engaged in contract drilling since 1921, this asset sale represents part of Noble's strategic restructuring aimed at improving operational efficiency and enhancing market competitiveness.
See More
Borr Drilling Secures New Contracts for Odin and Ran Rigs with Extended Durations
- Contract Extension: Borr Drilling's Ran rig has secured a one-well extension with ENI in Mexico for 75 days, keeping the rig under contract until March 2026, thereby strengthening the company's operational foundation in the Americas.
- New Contract Signing: The Odin rig has secured a contract for two wells with an undisclosed operator in the USA, expected to last 60 days per well and commence in mid-2026, enhancing the company's positioning in the U.S. market.
- Option Activation: The new commitment for Odin has activated an option mechanism in its previously announced Gulf of America contract, providing customer Cantium with a six-month optional period starting January 2027, demonstrating the company's operational flexibility for future projects.
- Market Outlook: The signing of these contracts not only enhances Borr Drilling's revenue potential but also provides a stronger strategic advantage in the competitive drilling market, ensuring stable cash flow for the coming years.
See More
Borr Drilling Secures New Contracts for Odin and Ran Rigs with Extended Durations
- Contract Extension: Borr Drilling's Ran rig has secured a one-well extension with ENI in Mexico for 75 days, keeping the rig under contract until March 2026, thereby solidifying the company's operational foundation in the Americas.
- New Contract Signing: The Odin rig has secured a contract for two wells plus an optional well with an undisclosed operator in the U.S., expected to commence mid-2026 with an estimated duration of 60 days per well, enhancing the company's competitive position in the U.S. market.
- Option Activation: The new firm commitment for Odin has activated an option mechanism in its previously announced contract for work in the Gulf of America, providing the customer Cantium with a six-month optional period starting in January 2027, showcasing the company's flexibility in contract management.
- Market Outlook: The signing of these contracts not only enhances Borr Drilling's revenue potential but also lays the groundwork for future market expansion, reflecting the company's ongoing growth strategy in the global drilling services market.
See More
James Grant believes his top stock choice for 2025 could still be undervalued.
Borr Drilling's Performance: Borr Drilling has significantly outperformed the S&P 500 by 87.8 percentage points since August 1, and financial commentator James Grant believes there is still potential for further value despite its recent success.
Fleet Expansion Plans: On December 8, Borr announced plans to acquire five additional jack-up rigs for $360 million, financed through new shares and debt, amid a tightening market for shallow-water drilling vessels.
Market Conditions: The utilization rate for jack-up rigs is above 90%, with no new rigs currently under construction, leading to a potential supply squeeze as nine rigs are expected to retire this year and more in 2026.
Valuation Insights: If day rates increase from $145,000 to $200,000 due to the anticipated supply crunch, Borr may still be undervalued at less than 1x EBITDA, indicating significant upside potential.
See More
Borr Drilling Settles $84 Million Common Share Offering
- Successful Offering: Borr Drilling has completed a public offering of 21 million common shares at $4.00 per share, generating total gross proceeds of $84 million, which provides essential funding for the company's future growth initiatives.
- Clear Use of Proceeds: The proceeds from this offering will be utilized for the acquisition of five premium jack-up rigs and general corporate purposes, including debt service and capital expenditures, indicating the company's proactive strategy for expansion.
- Strong Underwriting Team: DNB Carnegie and Clarksons Securities served as joint global coordinators and bookrunners, with Citigroup and other firms participating, ensuring the smooth execution of the offering and bolstering market confidence.
- Compliance Assurance: The offering was conducted under an effective shelf registration statement filed on April 11, 2025, ensuring compliance and providing investors with transparent access to necessary information.
See More
Noble Corporation Sells Five Jackup Rigs for $360 Million
- Transaction Value: Noble Corporation completed the sale of five jackup rigs to Borr Drilling for $360 million, generating approximately $210 million in cash and $150 million in seller notes, which enhances the company's liquidity and financial flexibility.
- Charter Agreement: Noble intends to operate the Noble Mick O'Brien and Noble Resolute rigs under a bareboat charter agreement with Borr until December 2026, ensuring a continuous revenue stream and asset utilization.
- Market Positioning: This transaction signifies a strategic shift for Noble in the global offshore drilling market, focusing on high-specification and ultra-deepwater drilling opportunities, thereby enhancing its competitiveness in the industry.
- Historical Context: Engaged in contract drilling since 1921, Noble's asset sale further optimizes its modern and technically advanced fleet, supporting its future growth strategy.
See More
Noble Corporation Sells Five Jackup Rigs for $360 Million
- Transaction Value: Noble Corporation completed the sale of five jackup rigs to Borr Drilling for $360 million, generating approximately $210 million in cash and $150 million in seller notes, thereby enhancing the company's liquidity and financial flexibility.
- Charter Agreement: Noble intends to operate the Noble Mick O'Brien and Noble Resolute under a bareboat charter agreement with Borr until December 2026, ensuring a continuous revenue stream and optimizing asset utilization.
- Market Positioning: This transaction allows Noble to focus on its modern and technologically advanced drilling fleet, further solidifying its leadership position in the offshore drilling industry while paving the way for future growth opportunities.
- Historical Context: Engaged in contract drilling since 1921, this asset sale represents part of Noble's strategic restructuring aimed at improving operational efficiency and enhancing market competitiveness.
See More
Borr Drilling Secures New Contracts for Odin and Ran Rigs with Extended Durations
- Contract Extension: Borr Drilling's Ran rig has secured a one-well extension with ENI in Mexico for 75 days, keeping the rig under contract until March 2026, thereby strengthening the company's operational foundation in the Americas.
- New Contract Signing: The Odin rig has secured a contract for two wells with an undisclosed operator in the USA, expected to last 60 days per well and commence in mid-2026, enhancing the company's positioning in the U.S. market.
- Option Activation: The new commitment for Odin has activated an option mechanism in its previously announced Gulf of America contract, providing customer Cantium with a six-month optional period starting January 2027, demonstrating the company's operational flexibility for future projects.
- Market Outlook: The signing of these contracts not only enhances Borr Drilling's revenue potential but also provides a stronger strategic advantage in the competitive drilling market, ensuring stable cash flow for the coming years.
See More
Borr Drilling Secures New Contracts for Odin and Ran Rigs with Extended Durations
- Contract Extension: Borr Drilling's Ran rig has secured a one-well extension with ENI in Mexico for 75 days, keeping the rig under contract until March 2026, thereby solidifying the company's operational foundation in the Americas.
- New Contract Signing: The Odin rig has secured a contract for two wells plus an optional well with an undisclosed operator in the U.S., expected to commence mid-2026 with an estimated duration of 60 days per well, enhancing the company's competitive position in the U.S. market.
- Option Activation: The new firm commitment for Odin has activated an option mechanism in its previously announced contract for work in the Gulf of America, providing the customer Cantium with a six-month optional period starting in January 2027, showcasing the company's flexibility in contract management.
- Market Outlook: The signing of these contracts not only enhances Borr Drilling's revenue potential but also lays the groundwork for future market expansion, reflecting the company's ongoing growth strategy in the global drilling services market.
See More
James Grant believes his top stock choice for 2025 could still be undervalued.
Borr Drilling's Performance: Borr Drilling has significantly outperformed the S&P 500 by 87.8 percentage points since August 1, and financial commentator James Grant believes there is still potential for further value despite its recent success.
Fleet Expansion Plans: On December 8, Borr announced plans to acquire five additional jack-up rigs for $360 million, financed through new shares and debt, amid a tightening market for shallow-water drilling vessels.
Market Conditions: The utilization rate for jack-up rigs is above 90%, with no new rigs currently under construction, leading to a potential supply squeeze as nine rigs are expected to retire this year and more in 2026.
Valuation Insights: If day rates increase from $145,000 to $200,000 due to the anticipated supply crunch, Borr may still be undervalued at less than 1x EBITDA, indicating significant upside potential.
See More
Borr Drilling Settles $84 Million Common Share Offering
- Successful Offering: Borr Drilling has completed a public offering of 21 million common shares at $4.00 per share, generating total gross proceeds of $84 million, which provides essential funding for the company's future growth initiatives.
- Clear Use of Proceeds: The proceeds from this offering will be utilized for the acquisition of five premium jack-up rigs and general corporate purposes, including debt service and capital expenditures, indicating the company's proactive strategy for expansion.
- Strong Underwriting Team: DNB Carnegie and Clarksons Securities served as joint global coordinators and bookrunners, with Citigroup and other firms participating, ensuring the smooth execution of the offering and bolstering market confidence.
- Compliance Assurance: The offering was conducted under an effective shelf registration statement filed on April 11, 2025, ensuring compliance and providing investors with transparent access to necessary information.
See More
