Noble Corporation to acquire Diamond Offshore Drilling

Noble Corporation, a leading offshore drilling contractor for the oil and gas industry, is acquiring Diamond Offshore Drilling.

Specifically, Noble will purchase Diamond in a stock plus cash transaction, where Diamond shareholders will receive 0.2316 shares of Noble, plus cash consideration of $5.65 per share for each share of Diamond stock. This represents a 11.4 percent premium to closing stock prices on June 7. Upon closing, Diamond shareholders will own approximately 14.5 percent of Noble’s outstanding shares.

“This acquisition enables Noble to continue our journey of delivering superior innovation and value to a broad range of the leading offshore operators across the world. Our position will be strengthened with the addition of four 7th generation drillships and one of the most high-spec harsh environment semisubmersible rigs in the world. Additionally, Diamond’s five conventional deepwater and midwater rigs have averaged above 85% utilization over the last 3 years and currently have strong forward contract coverage,” Noble’s President and CEO Robert Eifler said.

Noble intends to fund the cash portion of the transaction through new debt financing, which Noble has secured through a $600 million committed bridge financing facility.

“This combination is an ideal outcome that provides Diamond shareholders both immediate and long-term upside potential as part of a more fully scaled platform that can deliver customer and shareholder value on a through-cycle basis, more visibly and accessibly, while gaining access to Noble’s robust dividend program. Noble’s operational strength, service posture and proven integration capabilities make this a natural match for Diamond,” Diamond’s President and CEO Bernie Wolford said,

At closing, the Noble Board of Directors will be expanded to include one member from the Diamond Board.

The transaction has been unanimously approved by the boards of each company. The transaction is subject to various closing conditions and regulatory approvals. It is expected to close by the first quarter of 2025.

Once the acquisition goes through, Noble will own and operate a fleet of 41 rigs including 28 floaters and 13 jackups. Additionally, backlog for the combined company would be approximately $6.5 billion, with a wide diversity of customers and regions of operation.

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