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Noble Corp. Message Board

  • weldonmustgo weldonmustgo Sep 19, 2007 12:55 PM Flag

    Seadrill CEO denies Noble talks

    you have a high p/e stock seadrill looking at low p/e stock noble....hmmmm

    Shares in Norwegian offshore drillers Seadrill (SDRL.OL: Quote, Profile, Research) and Awilco Offshore (AWO.OL: Quote, Profile, Research) jumped more than 5 percent on Wednesday, and traders said rumours of a merger with U.S. driller Noble Corp (NE.N: Quote, Profile, Research) were circulating.

    Seadrill shares were up 5.9 percent at 116.75 crowns, and Awilco Offshore rose 5.1 percent to 60.20 by 1350 GMT, both near intra-day highs.

    "There's talk that Awilco and Seadrill are in talks with Noble about a merger," said one trader.

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    • Actually most of them are.You do the research.

    • If you look rig for rig at the rated depths for each rig to ocenan floor and then well depths capable per rig, you won't have to ask that question. They aren't the same. Those aren't opinion but fact. They are listed on the rig reports; you can do the work.


    • Is RIG considered an"intermediate" driller because of their jackups also,in (your) opinion?Give me a break.

    • NE is all about deepwater.

    • I agree 99.5% with your assessment. The only disagreement I have is with your point that NE's management is on top of the cost management mountain. Lately, the opposite has been the case. Unexpected shipyard delays and cost overruns along with inflated employee costs are to blame for the share price action of late. You are correct in the placement of NE as lees of a deepwater player and more of an intermediate water driller. The drag on share price has also been the number of jack-up rigs as a percentage of total fleet. With moderating jack-up dayrates, the projected earnings are now being reevaluated. I'd love to see Seadrill merge with someone; that would certainly bring up the whole sector's value. By merging their new deepwater with less valuable jack-ups the consolidation would better secure dayrates. I called for this months ago, but the hang-up I feel is NE's management. I believe they are too high on themselves, and want far too much control of whatever new company might get formed. DO can't be considered a merger candidate as Loews won't part with their controlling interest. Therefore, I see DO as a possible buyer but not as a merger partner for now.


    • I have owned both SDRLF and NE for some time. The combination, although denied by all parties makes perfect sense from my perspective and WOULD benefit both shareholders. Here's why: Seadrill has, as the previous poster pointed out many deep water rigs and drill ships in the pipeline. However, they would squeeze by with their current cash flow when paying for them. They also need to hire many new people to work the rigs. In short Seadrill's share price IMO suffers from a perceived execution risk, which I believe is real. On the other hand, NE has very few rigs in it's pipeline. However, NE has a proven safety record and a envious track record as a cost manager. In addition, and most importantly, they have an ever increasing free cash flow EXACTLY when Seadrill would need it for their construction program. In my mind it would be a perfect marriage and would justify the recent run up in both companies. Synergies exist here that did not exist in the RIG GSF deal. The combine fleet would be the newest in the industry, heavily weighted to the deep water, with the means to be paid for, and the crews to work the newbuilds.

    • You can check SDRL's fleet at seadrill.bm

      Don't let SDRL's trailing 25-30 PE fool you. SDRL will be a major deep water player. They have ten rigs scheduled for delivery in 2008, 7 or 8 of those being ultradeep rigs/drillships. All of them booked at obscene rates and a few more on the way in 2009/2010. SDRL would like to have NE's fleet i'm sure, but not for a huge premium.

    • So the little runup isn't people coming to their senses, its the rumour mill? So we're probably headed back down prior to options. Oh well, whatddya do!

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