Noble Corporation plc (NE): A Bull Case Theory

We came across a bullish thesis on Noble Corporation plc on Lasse’s Substack. In this article, we will summarize the bulls’ thesis on NE. Noble Corporation plc’s share was trading at $26.91 as of August 5^th. NE’s trailing and forward P/E were 9.06 and 22.42, respectively according to Yahoo Finance.

Noble Corporation (NYSE: NE) is a leading offshore drilling contractor specializing in deepwater and ultra-deepwater projects. Following its 2024 acquisition of Diamond Offshore, Noble significantly strengthened its global position with a modernized fleet of around 30 rigs, including advanced drillships, semi-submersibles, and jackups. This strategic move not only expanded its asset base but also enhanced its ability to serve major offshore oil and gas operators in an improving market.

For the trailing twelve months ending Q1 2025, Noble generated $3.3 billion in revenue and $1.1 billion in adjusted EBITDA, underpinned by strong operational performance and cost discipline. The company maintains a debt-to-equity ratio of 0.42, reflecting a balanced capital structure that provides flexibility for growth while preserving financial stability. The investment case for Noble rests on its high-spec fleet and strategic emphasis on securing long-term contracts, which position it well to capitalize on the resurgence in offshore drilling activity driven by energy demand and favorable oil price trends.

With the integration of Diamond Offshore delivering operational synergies and strengthening customer relationships, Noble is well placed to deliver robust cash flow and earnings growth. Its modern fleet, combined with financial discipline and market leadership, provides a strong platform for shareholder value creation in a tightening rig supply environment. As the offshore drilling cycle accelerates, Noble offers investors an attractive opportunity for exposure to high-spec rig demand with compelling upside potential, supported by solid fundamentals and a prudent approach to capital allocation.

Previously, we covered a bullish thesis on Precision Drilling Corporation (PDS) by Nugget Capital Partners in April 2025, which highlighted its dominant Canadian market share and resilient earnings despite U.S. softness. The stock has appreciated about 29% since then as Canadian operations outperformed. The thesis remains valid given LNG-driven demand. Lasse shares a similar view but emphasizes Noble’s offshore leadership and Diamond Offshore acquisition.

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Disclosure: None.