DO Overview

Acquisition Announcement: Noble Corp. Plc. has acquired Diamond Offshore Drilling, Inc., adding approximately $2 billion to its backlog and issuing about 24.2 million class A ordinary shares to former shareholders of Diamond.

Financial Outlook Update: Following the acquisition, Noble advised investors not to rely on its previously issued financial outlook for fiscal year 2024, while also reporting an increase in backlog to $6.7 billion due to new contracts with ExxonMobil.

Noble Corp. Acquisition: Noble Corp. has completed its acquisition of Diamond Offshore Drilling, resulting in the largest fleet of 7th generation dual-BOP drillships and adding approximately $2 billion to its backlog.

Regulatory Approval and Future Outlook: The merger received final regulatory approval from the Australia Competition & Consumer Commission, and analysts believe this strategic move will enhance Noble's revenue and cash flow during the ongoing offshore upcycle.

Regulatory Approval Received: Noble Corporation and Diamond Offshore Drilling have received clearance from the Australia Competition & Consumer Commission, marking the final regulatory approval needed for their pending transaction.

Transaction Closing Date: The companies expect to finalize the transaction on September 4, 2024.

Regulatory Approval Received: Noble Corporation and Diamond Offshore Drilling have received clearance from the Australia Competition & Consumer Commission, marking the final regulatory approval needed for their pending transaction, expected to close on September 4, 2024.

Company Backgrounds: Noble Corporation is a leading offshore drilling contractor with a modern fleet focused on ultra-deepwater drilling, while Diamond Offshore provides innovative contract drilling services globally.

Global Energy Landscape: Despite a growing shift towards renewable energy, oil and natural gas remain dominant global energy sources, with significant demand projected to continue at least through 2030. Research indicates that oil is the most-used resource for transportation, and major offshore drilling companies like Valaris, Noble Corp, and Tidewater are showing strong financial performance and growth potential.

Company Performance Highlights: Valaris reported a 47% revenue increase in Q2 2024, Noble Corp's EPS surged by 89.5%, and Tidewater's revenues rose by 57.8%, all exceeding market expectations. Analysts have given "Strong Buy" ratings for these companies, indicating positive outlooks and substantial upside potential in their stock prices.

Diamond Offshore Drilling Inc Analysis: The company rates highly (85%) using the Shareholder Yield Investor model, indicating strong interest due to its focus on returning cash to shareholders through dividends, buybacks, and debt paydown.

Meb Faber's Investment Strategy: Meb Faber, founder of Cambria Investments, emphasizes shareholder yield in his investment approach, which seeks companies that prioritize creating value for shareholders, supported by his research and publications on various investment topics.