XOM - Noble Corporation: Company Bags Large-Scale Contract Extension With Exxon Mobil - Buy

• Company reported a weaker-than-expected fourth quarter but revealed an estimated $700 million contract extension with Exxon Mobil offshore Guyana.
• Dayrates in the U.S. Gulf of Mexico has increased to new recovery highs on limited high-specification drillship availability. Outlook for the basin remains strong.
• Activity levels in most other regions of the world are still lagging behind as also evidenced by the company's decision to retire its last remaining semi-submersible rig "Noble Clyde Boudreaux".
• Proposed merger with Maersk Drilling expected to close later this year. Discussing prospects for initial dividend payments in FY2023.
• Buy Noble Corporation on solid industry fundamentals, reasonable valuation, ample liquidity and strong cash flow generation potential following the proposed merger with Maersk Drilling.

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