- Given idle capacity, Noble is relying on floater option exercises and cost savings.
- The company could report its 1Q EBITDA slightly short of consensus estimates.
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Noble Corporation NE has been in focus as President Donald Trump's oil production push.
While remaining focused on securing contracts for its idle capacity and rigs rolling off contract later this year, the company relies on floater option exercises and cost savings to hit the mid-point of its 2025 guide, "which remains within striking distance, we think," according to JPMorgan.
The Noble Analyst: Analyst Arun Jayaram reaffirmed a Neutral rating, while reducing the price target from $33 to $31.
The Noble Thesis: Jayaram said in the note that there is a lack of contract visibility for Globetrotter II, the company's sixth-generation drillship idle in the Gulf of Mexico, and for Noble Deliverer, idle in Malaysia.
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These rigs will be prepared for rolling into deployment in the second quarter to reduce operating expenses, he added.
The analyst stated that Noble is likely to report its first-quarter EBITDA at $267 million, representing a sequential decline of 16.5% and coming in slightly short of the consensus of $273 million.
"Our updated full-year revenue forecast of $3,305mm is -1.3% lower than the guided midpoint of $3,350mm and -1.6% lower as compared to our prior estimate," he added.
Price Action: Shares of Noble were flat at $16.49 at the time of publication on Monday.
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