BORR - Noble Corporation: Investors Should Look Beyond Mediocre 2024 Guidance - Buy
2024-04-17 11:08:59 ET
Summary
- Adjusted for reimbursable and one-time items, Noble Corporation reported in-line Q4/2023 results, highlighted by decent free cash flow generation.
- Backlog remains near multi-year highs, with approximately 77% attributable to the company's floater fleet.
- However, Noble provided weaker-than-expected 2024 guidance as a material number of rigs is experiencing or facing near-term idle time.
- With the majority of the company's jackup rigs located in the North Sea, potential fallout from Saudi Aramco rig suspensions is likely to be limited.
- While I have lowered my estimates and price target somewhat, I am reiterating my "Buy" rating on the shares and would consider using pullbacks as an opportunity to initiate or add to existing positions.