Noble to Acquire Diamond Offshore Drilling for $1.6 Billion
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Noble Corporation has entered into a definitive merger agreement where Noble will acquire Diamond Offshore Drilling in a stock and cash deal worth about $1.6 billion.
As part of the transaction, Diamond shareholders will receive 0.2316 shares of Noble, plus cash consideration of $5.65 per share for each share of Diamond stock, representing an 11.4 percent premium. 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,” said Noble’s President and Chief Executive Officer, Robert Eifler.
“Additionally, Diamond’s five conventional deepwater and midwater rigs have averaged above 85 percent utilization over the last 3 years and currently have strong forward contract coverage. Supported by Diamond’s $2.1 billion of backlog and $100 million of anticipated cost synergies, we expect the transaction to be immediately accretive to our free cash flow,” added Eifler.
“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,” said Diamond’s President and Chief Executive Officer, Bernie Wolford.
“I would like to thank the entire Diamond team for delivering terrific results for our customers and shareholders. Your daily commitment to our uncompromising standards will be a perfect fit within Noble, and we look forward to continued success for our teams together on this strengthened, world class platform,” added Wolford.
“I am very proud of what Diamond’s employees, executives, and board have accomplished. We have created tremendous value for our shareholders and customers that has culminated in a strategic merger that will continue to add value for all,” said Neal Goldman, Chairman of Diamond.
Giving effect to the acquisition, 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 as of today, with a wide diversity of customers and regions of operation. With this expanded fleet and contracted cash flow visibility, Noble will remain committed to maximizing value for customers, employees, and shareholders by delivering safe and efficient operational results.
Noble is a leading offshore drilling contractor for the oil and gas industry. The company owns and operates one of the most modern, versatile, and technically advanced fleets in the offshore drilling industry. Noble and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921. Noble performs, through its subsidiaries, contract drilling services with a fleet of offshore drilling units focused largely on ultra-deepwater and high specification jackup drilling opportunities in both established and emerging regions worldwide.
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