Noble Corp Sells 4 Jackups for $292MM
Noble Corporation (NYSE: NE) has announced that subsidiaries of the company have reached a definitive agreement to sell four jackups to ADES International Holding Ltd for $292 million.
Under the deal, the Noble Roger Lewis, Noble Scott Marks, Noble Joe Knight and Noble Johnny Whitstine will be sold and the current drilling contracts novated to ADES. The deal is expected to close before the end of October and is subject to the satisfaction of closing conditions, including novation of the drilling contracts and regulatory approvals. Noble said it expects to generate approximately $285 million in cash from the transaction net of fees, expenses and the settlement of working capital.
Following the announcement of the deal, Noble Corporation updated its 2021 guidance to show an adjusted revenue of between $870 million and $890 million, an adjusted EBITDA of between $110 million and $120 million and capital expenditures of between $175 million and $195 million. The company’s preliminary 2022 guidance shows an adjusted revenue of between $975 million and $1.05 billion, an adjusted EBITDA of $265 million and $300 million and capital expenditures of between $105 million and $120 million.
“We are very pleased to have reached this mutually beneficial deal with ADES, which is accretive to our shareholders,” Robert Eifler, the president and chief executive officer of Noble Corporation, said in a company statement.
“The sale of these four jackups further bolsters our already strong balance sheet and improves Noble’s financial flexibility. As we look to 2022, our anticipated net cash position coupled with our expected free cash flow generation better positions the company to execute on our financial priorities to repay debt and return cash to shareholders,” Eifler added in the statement.
“Our crews in the Kingdom have executed at the highest level for many years, and Noble and ADES are fully aligned to ensure this level of operational excellence is maintained. I would personally like to thank the Noble employees who will be hired by ADES for their dedicated service and wish them continued success,” the Noble Corporation CEO went on to say.
Established in 2002, ADES Group describes itself as a leading oil and gas drilling and production services provider in the Middle East and Africa, offering offshore and onshore contract drilling, workover and offshore production services.
Noble Corporation is a leading offshore drilling contractor for the oil and gas industry, according to its website, which highlights that the company and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921.
In February this year, Noble Holding Corporation plc announced that it had successfully completed a financial restructuring and that its debtor affiliates had emerged from Chapter 11 with a new parent company organized under the laws of the Cayman Islands named Noble Corporation. In March, Noble Corporation and Pacific Drilling Company LLC announced that they had entered into a definitive merger agreement under which Noble would acquire Pacific Drilling in an all-stock transaction. The deal completed in April.
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