NE - Noble Corporation: The Post Acquisition Outlook

2024-07-16 13:30:26 ET

Summary

• Noble Corporation plc stock has remained range-bound after announcing the acquisition of Diamond Offshore, which should drive $100 million in cost synergies.
• The acquisition will expand Noble's client base and floater portfolio, with the deal expected to close by YE24.
• Beneficial owner A.P. Moller Holding A/S bought 300,000 shares, showing confidence in Noble's future.
• A full investment analysis around Noble Corporation and its post-acquisition future is presented in the paragraphs below.

Shares of drilling contractor Noble Corporation plc ( NE ) have remained in a tight trading range since announcing the proposed acquisition of Diamond Offshore ( DO ) in early June 2024. Management expects to generate $100 million of cost synergies from the combination while meaningfully expanding its client base and floater portfolio. With the deal anticipated to close near YE24 and risk arbitrageurs shorting its stock that yields 4.2%, the beneficial owner buying into Noble merited a deeper dive. An analysis follows below....

For further details see: