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Noble Corporation plc Message Board

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  • mlpnewby59 mlpnewby59 Sep 20, 2007 4:41 AM Flag

    Seadrill CEO denies Noble talks

    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.

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