Noble Corporation (NYSE:NE) is up 19% in a month. The company announced that its subsidiaries had entered a definitive agreement for the sales of 4 jackups for $292 million to ADES International Holding Ltd. according to the terms of the deal, the Noble Scott Marks, Noble Roger Lewis, Noble Johnny Whitstine, and Noble Joe Knight will be sold with present drilling contracts novated to ADES.
Closing is likely to happen before the end of October 2021, and the deal is subject to meeting customary closing conditions that include regulatory approvals and novation of drilling contracts. Noble is expecting to generate around $285 million in proceeds from the deal, excluding expenses, fees, and working capital settlement.
After the deal’s announcement, Noble updated its 2021 outlook to reflect adjusted revenue of $870 million to $890 million, with adjusted EBITDA ranging from $110 million to $120 million. In addition, the company’s interim 2022 guidance indicates that revenue will be between $975 million and $1.05 billion. With the revised guidance outlook NE is worth watching.
Oil and gas investors may also want to look at Allied Energy Corp. (OTCMKTS:AGYP) as it begins pumping oil from wells in Texas. As energy peaks in price and demand, AGYP is an independent that has literally struck oil and has started pumping barrels when domestic buyers need it most.
Market Reaction:
On Wednesday, NE stock fell 0.65% at $26.14 with more than 108k shares, compared to its average volume of 299K shares. The stock has moved within a range of $26.03 – 26.89 after opening the trade at $26.34.
