Borr Drilling Limited (BORR) Announces Agreement to Acquire Five Premium Jack-Up Rigs

Borr Drilling Limited (NYSE:BORR) is one of the best long-term penny stocks to invest in. Borr Drilling Limited (NYSE:BORR) announced on December 8 that it entered into an agreement for the acquisition of five premium jack-up rigs from Noble Corporation. These rigs include two Gusto MSC CJ50 design rigs and three Friede & Goldman JU-3000N design rigs for a total purchase price of $360 million.

Is Borr Drilling Limited (BORR) the Best Oil and Gas Penny Stock to Invest in Now?

Management reported that the rigs hold complementary geographic footprint and specifications to the company’s existing fleet, allowing Borr Drilling Limited (NYSE:BORR) to maximize the value of the assets by leveraging its platform. The acquisition would also position the company to offer a more versatile and larger fleet to its customers, as its fleet size would increase from 24 to 29 rigs after the completion of the acquisition, bolstering its position as the youngest premium jack-up fleet owner across the globe.

Borr Drilling Limited (NYSE:BORR) reported that two of the rigs would be chartered back to the seller for 12 months on a bareboat basis, positioning the seller to complete the present drilling contracts for the rigs. In addition, the company holds earnings and cashflow certainty in the period since the bareboat contract earnings are net of operating costs. The rigs are anticipated to generate total earnings of $29 million before debt service.

Borr Drilling Limited (NYSE:BORR) provides offshore drilling services to the oil and gas industry. It operates through Dayrate and Integrated Well Services (IWS) segments. The Dayrate segment provides rig charters and ancillary services, while the IWS segment offers integrated well services through Opex and Akal.

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Disclosure: None. This article is originally published at Insider Monkey.