A must-know investor’s guide to off-shore driller Noble Corp. (NE)

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Noble Corp.

Noble Corporation Plc. (NE) is one of the largest off-shore oil drilling companies in the world, owning the second-largest fleet of Mobile Offshore Drilling Units (or MODUs) in the industry. The company operates globally, with extensive operations in the Gulf of Mexico, the North Sea, the Middle East, Brazil, and other major oil-producing regions around the world.

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Revenue and customers

As of fiscal year 2012, Noble generated over $3.547 billion in revenue through oil contract drilling services. Some of the company’s primary customers include Royal Dutch Shell and Brazil’s Petrobras. Together, these companies make up about 13.17% of the market share for the integrated oils industry and comprise about 46% of Noble’s revenue.

Business contract

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Noble, like other companies in this industry, bids for competitive drilling contracts offered by oil field owners and operators. The terms and durations of contracts vary according to customers’ needs, but long-term contracts aren’t uncommon. Once the contracts are active, Noble will transport the necessary rig to the contract site, where it will drill exploration, appraisal, or development wells for the customer. This will continue until the contract is completed or prematurely terminated. Like other contract terms, premature termination penalties may vary.

Fleet portfolio

Noble possesses a diverse fleet, containing both normal- and harsh-environment varieties of drillships, semi-submersibles, and increasingly popular jackup rigs. Each rig is well suited to specific depths and environments, and this diversity allows Noble to serve a wide variety of clients with diverse drilling needs around the world. To learn more about off-shore drilling fleets, see Why Ocean Rig’s developing fleet means substantial cash flow.

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