Sam Pannunzio’s Post

Do more or less M&A, and/or leveraged buyouts, happen closer to market/economic bottoms or tops? "...this should prove our continuously innovating Offshore Deepwater industry is robust, fiscally responsible and ready for another 30 years." Agree that "innovating" is robust. However, I wonder if they are preparing for (negative economic) impart in the short term (18-36 months).

Great move and congratulations to Noble & Diamond! In a world of relatively high rig rates, it is perhaps easy to forget that the drilling industry still has too many players and too much overhead. So, great to see this move from Noble and Diamond. Will be interesting to see if this is a beginning of a final round of - still - much needed consolidation in the offshore drilling industry. Will there now be a move for Stena, Seadrill or Odfjell? From a fleet size point of view, this would make sense but obviously the owners will also have to see this. So, is it now over to Valaris or Transocean for the next move, or does Noble have another play up their sleeve, or will a couple of the smaller players gang up... or was this it, or how will the customers act? We have already seen Totalenergies take the unusual move to partially acquire a rig, seemingly as a hedge against rig rate inflation. But should oil companies really be rig operators? If that a hedge or a gamble? And, finally, the efficiencies likely to be gained from this consolidation will they be shared with the customers e.g. in the form of investments in better technologies/services, development of new business models or will shareholders pocket it all? Interesting times for offshore drilling. PS: See Noble announcement from this morning: https://lnkd.in/dbcdw3dt PPS: I only invest in market index funds, so I do not have any direct ownership in any of abovementioned companies or industry.

🤔.... Activity with Long term Contracts in Africa, Guyana, Suriname and Brazil a potential game changer that I'm sure influenced this move ....... Exciting few years ahead as market share and new territories have Oil and Gas friendly governments willing to grow there GDP and secure energy security #Oil #Gas #Energy #Economy 💡📊

BREAKING NEWS- The waiting is over Noble Corporation & Diamond Offshore are days away from the Mega-Merger like none other. (Expected 4th September 2024) It’s been reported that the regulatory bodies have aligned and both Diamond and Noble have a clear path forward for the Industries highly anticipated merger to start turning to the right. Following the earlier announcement in June 2024 the waiting period had expired in July 2024 under the HSR Anti-trust Improvement Acts we could be a matter of days for an announcement. We have all seen the previously reported news including the numbers and many doubted it, well it looks like it’s about to happen, if it already hasn’t. Great news for all concerned and the Drillers Shack crew wishes only success as everyone’s a winner here, congratulations. 41 High class drilling units in one company, many thought was a thing of the past, this should prove our continuously innovating Offshore Deepwater industry is robust, fiscally responsible and ready for another 30 years. #drilling #management #innovation #oilandgas #mpd #broseidon 😎🔱👊

Lost to history may be the phrase "Get big or get out...." or at least where the term was coined. Not that anyone should remember but this was the policy that Secretary of Agriculture Earl Butz laid out for American farmers in 1973. Butz's policy also included: increasing production, lowering commodity prices, eliminating supply management constraints, encouraging farmers to plant "fencerow to fencerow", and relying on export markets.  Offshore drilling can inspire rapid fleet expansion in the good times - but can have negative consequences when utilization falls. Seems getting "big" may offer a solution. Here is wishing my friends at Noble Corporation every success in their proposed combination with Diamond Offshore - and the opportunity to manage well through the cycles that characterize this industry sector. #energystrong #offshore #oilgas

The management teams of oilfield service companies in the US are as disciplined as the management teams of E&P companies in the US. Although drilling activity has been declining for a year or more, the quarterly revenues generated per active frac crew in North America are down only 10%. Same with land contract drillers - average day rates are down only about 10% in the last year. And profitability is strong. Spears & Associates is seeing a SIGNIFICANT increase in the pace of OFS M&A this year. Discipline by management teams is winning back investors.

📢 𝐓𝐫𝐚𝐧𝐬𝐨𝐜𝐞𝐚𝐧, 𝐕𝐚𝐥𝐚𝐫𝐢𝐬, 𝐍𝐨𝐛𝐥𝐞, 𝐒𝐞𝐚𝐝𝐫𝐢𝐥𝐥, 𝐚𝐧𝐝 𝐃𝐢𝐚𝐦𝐨𝐧𝐝 𝐎𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐫𝐢𝐠𝐬’ 𝐝𝐫𝐢𝐥𝐥𝐢𝐧𝐠 𝐠𝐚𝐦𝐞 𝐥𝐢𝐟𝐭𝐬 𝐭𝐨𝐭𝐚𝐥 𝐛𝐚𝐜𝐤𝐥𝐨𝐠 𝐭𝐨 $𝟐𝟏.𝟖 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 💰 #Offshoredrilling market's top five #floating #rig titans – Transocean ($8.8 billion), Valaris Limited ($4.3 billion), Noble Corporation ($4.2 billion), Seadrill ($2.5 billion), and Diamond Offshore ($2 billion) - have pushed their combined total backlog to a whopping $21.8 billion. 🗺️ If Noble-Diamond Offshore #merger goes ahead as planned it will bring more than $6 billion backlog into play, securing a second spot for Noble among the largest #floatingrig contractors. 🎯 Does this indicate that more #consolidation moves and potentially higher rig day rates are on the cards? 𝐅𝐮𝐥𝐥 𝐬𝐭𝐨𝐫𝐲 👉 https://buff.ly/3Ak98dH #rigs #oilgas #floaters #drillships #jackups #semisubmersiblee #oilandgas #energy #oilandgasnews #offshoreenergy #oilgas #drilling #drillingrigs Photo: Noble Deliverer semi-sub rig; Source: Noble

A new powerhouse on the offshore drilling rigs global market.

𝗡𝗼𝗯𝗹𝗲’𝘀 𝗮𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻 𝗼𝗳 𝗗𝗶𝗮𝗺𝗼𝗻𝗱 𝗢𝗳𝗳𝘀𝗵𝗼𝗿𝗲 𝘀𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝗲𝗻𝘀 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻 𝗶𝗻 𝘂𝗹𝘁𝗿𝗮-𝗱𝗲𝗲𝗽𝘄𝗮𝘁𝗲𝗿 𝗿𝗲𝗴𝗶𝗼𝗻𝘀 Noble Corporation’s acquisition of Diamond Offshore Drilling significantly strengthens its position in the golden triangle, as well as the high-spec markets of the North Sea and Australia. This acquisition raises Noble’s market share in the floater market from 9.2% to 14% and gives it the largest market share (24%) of 7th generation drillships, surpassing Transocean’s 20% share. As a result, combined, Noble will own and operate a fleet of 41 rigs, including 28 floaters and 13 jackups, becoming the fourth largest drilling contractor, following COSL, ADES, and Valaris. #spglobal #upstream #offshore #Acquisition #OffshoreDrilling #northsea

The first quarter 2024 earnings reports showed robust growth and momentum in the offshore drilling market, driven by increasing activity and tight rig supply. Rystad projects strong offshore upstream spending growth over the next few years, with major new project sanctioning activity expected, especially in deepwater areas like Latin America and Africa. The ongoing upcycle appears sustainable for drillers amid constrained rig supply and rising utilization and dayrates. #offshoredrilling #offshore #oilandgas