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Noble Corp: Wait For A Lower Price

Noble Corporation plc (NYSE:NE) owns and operates a fleet of mobile offshore drilling units worldwide, consisting of a fleet of 14 drill ships and semi-submersibles and 14 jack ups. Of the 14 drill ships and semi-submersibles, 7 are either cold or warm stacked, while at least 2 others have contracts expiring in March. 1 jack up has been warm stacked.

NE has been lagging the Oil & Gas subindustry since May 2016, after the company missed on quarterly results, and cut its dividend from $0.15 to $0.02 per share.

It should be noted that Transocean Ltd. (NYSE:RIG) filed a patent infringement complaint against NE which may end up being costly for NE.

Fundamentals

The figure below highlights how NE fundamentals compare to the GICS Energy Equipment & Services industry. Note that the industry includes companies that supply oil and gas equipment and services other than drilling. I must confess that I am struggling to find anything positive in NE's fundamentals.
 

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by Steve Auger