Noble (NYSE:NE) reported third-quarter 2026 adjusted EBITDA of $201 million on revenue of $684 million, as several rigs transitioned between contracts during the period. The offshore driller generated cash flow from operations of $144 million, spent $192 million on capital expenditures and recorded negative free cash flow of $48 million.
President and CEO Robert Eifler said adjusted EBITDA declined 5% sequentially because the BlackRhino, Discoverer, Venturer and Globetrotter I had fewer contracted days than in the second quarter. Those impacts were partly offset by the July resumption of operations for two rigs in Brazil, the August startup of the Gerry de Souza and the Noble Voyager beginning its four-year Shell contract in the U.S. Gulf of Mexico in late September.
The Voyager’s startup was delayed by final commissioning and weather, Eifler said. Noble expects the Valiant and Discoverer to begin long-term development work for Total in Suriname around the end of 2026.
The company again paid a quarterly dividend of $0.50 per share, and its board declared another $0.50-per-share dividend for the fourth quarter.
Contract Awards Lift Backlog to $6.7 Billion
Noble said it secured approximately $560 million in new contract awards during the past three months, bringing total backlog as of Oct. 26 to $6.7 billion. The backlog excludes reimbursable revenue and ancillary-services revenue and includes roughly $2.6 billion scheduled to convert to revenue during 2027.
- The Noble BlackRhino received a four-well TotalEnergies contract in Nigeria expected to begin within weeks, with an estimated 150-day duration and options for up to six additional wells.
- The Noble Faye Kozack was awarded a five-well Tullow contract in Ghana, scheduled to start in mid-2027 and expected to last about 250 days.
- The Noble Globetrotter I received a two-well exploration campaign from Occidental in Peru beginning in the second quarter of 2027, followed by a three-year TotalEnergies capacity-reservation agreement for light well intervention work in Angola.
- The Noble BlackHawk was awarded a one-well Apache contract in Uruguay expected to begin in the fourth quarter of 2027. The estimated 50-day contract has a value of about $25 million, excluding mobilization, demobilization, managed-pressure-drilling and other services.
- In Norway, the Noble Interceptor received a one-well DNO contract beginning in mid-2027, ahead of a planned ConocoPhillips plug-and-abandonment campaign at Ekofisk in the third quarter of 2027. The Noble Intrepid also received a one-well ORLEN contract expected to begin in the third quarter of 2027.
Eifler said the recent Norway awards mean four of Noble’s five CJ70 jackups are now contracted in Norway. He said leading-edge rates for those jackups range from $230,000 to $300,000 per day, depending on work scope and contract duration. Noble expects its four newest CJ70 units to remain in Norway and said it is optimistic about finding work for the uncontracted Noble Innovator in the southern North Sea.
Management Sees Tightening Deepwater Market
Eifler said deepwater contracting activity regained momentum after a quieter period between May and July. Recent high-end drillship contracts have supported day rates in the mid-$400,000s to $500,000 per day, he said.
Of 110 marketed ultra-deepwater rigs, 109 are now contracted either currently or in the future, representing 99% contracted utilization, according to Noble. Current working utilization stood at 88 rigs, below the 2024 peak, but Eifler said pending starts for idle units now modestly exceed contract rollovers expected over the next six months.
Management expects some improvement in U.S. Gulf activity next year, following a decline from a rig count in the low 20s in recent years to the mid-teens currently. Eifler also cited strengthening prospects in India, where Noble believes two to four drillships may be needed beginning in late 2027 and 2028.
While customers have expressed growing interest in exploration and reserve replacement, Eifler said the company has not yet seen exploration become a material driver of its business. He said 2027 could provide more clarity on potential wildcat exploration activity, while development projects continue to underpin much of the current demand.
Guidance Narrowed; 2027 Expected to Build Through the Year
Chief Financial Officer Richard Barker said Noble narrowed its full-year 2026 revenue guidance to $2.85 billion to $2.9 billion, from a prior range of $2.8 billion to $2.9 billion. The revised range reflects higher-than-expected reimbursable revenue.
The company narrowed adjusted EBITDA guidance to $850 million to $900 million, compared with $850 million to $925 million previously, as it expects fourth-quarter EBITDA to be slightly below the third quarter. Barker attributed the lower range primarily to later-than-expected starts for the Voyager and Valiant.
Noble increased 2026 capital-expenditure guidance to $680 million to $705 million from $615 million to $665 million, primarily due to higher customer-reimbursable capital spending. Customer-reimbursable capital expenditures are now expected to total about $65 million for the year, compared with a previous estimate of $25 million.
For 2027, Barker said first-quarter adjusted EBITDA should be broadly similar to the fourth quarter of 2026 before rising meaningfully through the year. Noble has about 20% more fleet capacity under contract in the second half of 2027 than in the first half, he said.
Management also said it expects normalized capital expenditures, excluding the Claus Bachmann upgrade project, to be toward the high end of a previously cited $300 million to $400 million range due to inflationary pressures. Eifler said fleet upgrades, including managed-pressure-drilling capability, larger derricks and other equipment, are intended to enhance the long-term marketability and earning capacity of Noble’s drillships.
About Noble (NYSE:NE)
Noble Corporation plc (NYSE: NE) is an offshore drilling contractor that provides drilling services to the global oil and gas industry. The company operates a fleet of offshore drilling units, including drillships, semisubmersible rigs and jackup rigs, which are used to explore for and develop oil and natural gas reserves beneath the seabed.
Noble’s services include contract drilling, well planning, project management and other related support services. Its drilling units are designed to operate in a range of offshore environments, including deepwater and harsh-environment locations.
