Back to top

Image: Bigstock

Noble's Drillship Receives Contract Extension From Hess

Read MoreHide Full Article

Per the latest fleet update released by Noble Corporation (NE - Free Report) , the company’s drillship, Noble Paul Romano, has been awarded another contract extension by Hess Corporation (HES - Free Report) .

The rig is currently operating in the Gulf of Mexico. It will continue to receive current dayrate of $115,000. The drillship will be under contract until second-quarter 2018. The purposes of the drillship have not been specified.

Earlier, Paul Romano was contracted to Hess from September 2016 to August 2017 at a dayrate of $128,500 and was extended till 2017-end at a lower rate.

About Noble

Noble provides diversified services for the oil and gas industry. The company offers contract drilling services with a fleet of 28 offshore drilling units, consisting of 14 semisubmersibles and drillships, and 14 jackups. It provides contract drilling services along with provision of labor contract drilling, engineering and consulting and project management services. The company offers its services in the United States, the Middle East, India, Mexico, the North Sea, Brazil and West Africa.

In addition, Noble is a leading offshore drilling firm with a robust portfolio of assets. Though the industry has witnessed a setback in the last few months, the company is likely to be less affected than its peers. This is because it enjoys a strong backlog position of $3.2 billion.

Noble has plans to upgrade its fleet through acquisitions and newbuild projects. Moreover, it continues to benefit from its robust position in the ultra-deepwater market.

The company’s robust portfolio of assets, long-term commitments and strong backlog offer some relief in the current weak pricing scenario.

Price Movement

The company’s shares have returned 34.6% compared with the industry’s rally of 26.8% over the last three months.



Zacks Rank & Key Picks

Noble currently carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector are Braskem SA (BAK - Free Report) and Northern Oil and Gas Inc (NOG - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The largest petrochemical operator in Latin America, Braskem, delivered a positive earnings surprise of 68.54% in the preceding quarter.

Northern Oil and Gas, based in Minnetonka, MN, is an independent energy company. The company delivered an earnings surprise of 100.00% in the preceding quarter.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>