Estimates Lowered On Noble Corporation

Citigroup has published a research report on Noble Corporation NE and is reducing estimates on the company following 3Q results that came in below expectations. In the report, Citigroup writes "We believe full dayrate for NE's deepwater rigs in the GOM is unlikely until mid 2Q11 rather than our previous assumption of 4Q10/1Q11. We have vetted our assumptions with the company, and although there are valid reasons to suppose that specific deepwater rigs could receive permits sooner than this, we expect there will be ongoing delays, as both contractors and operators are driving without a roadmap through the new regulatory process. Separately, recent pre-tendering suggests that NE jackups in offshore Mexico could start in April 2011, although we expect some slippage. As a caveat, upside exists for NE if ensuing decisions by the BOEMRE and Pemex are made more quickly than historical precedent would suggest." Citigroup maintains its Buy rating and $42 price target. Noble Corporation closed yesterday at $34.86.