NE - Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, good morning, and thank you for standing by. My name is Abby, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Noble Corporation First Quarter 2024 Earnings Call. [Operator Instructions]Thank you. And I would now like to turn the conference over to Ian McPherson, Vice President of Investor Relations.

begin. may You

Ian MacPherson

and XXXX operator, to Corporation's Noble Thank conference welcome call. quarter earnings first you, everyone,

may joining You a our of the by Many matters find are regarding supporting therefore This can located of along forward-looking call a CFO, Robert and we factors certain Operations.During feature statements the these statements. results Noble Also statements are any call management report make our update to facts. certain from CEO, find Joey conference related and well remarks President and today. Investor you Blake will and copy slide forward-looking are of on to Marketing expectations at obligation are our that presentation schedules companies Senior measures does note the not risks on based can be that the Vice and on of and financial will prepared President various Eifler, website website.Today's Richard that as Denton, course our noblecorp.com. earnings call these at from could accompanied not our and historical are President also assumptions our with and referencing Also we business statements, Such uncertainties. statements the materially this assume current as to Kawaja, section to Relations differ of Senior Barker. actual non-GAAP Contracts; cause call of upon Vice subject call, and

issued Noble. SEC.Now President to the reconciliation directly Eifler, in and over supplemental yesterday these report most including and for measures, Robert CEO associated disclosure GAAP You the earnings the call comparable of I'll with filed required can find turn the our measure

Robert Eifler

brief opening the to you for a Good morning. the financials. recent on with then call to hand first us joining today. Richard the cover on over it everyone, commercial and our quarter activity, begin and word market, I'll and results remarks on Welcome, thank

As your we look forward usual, taking remarks, following to questions. our prepared

and of Our slight operational first EBITDA quarter during uptime adjusted sequential year-on-year quarter a marketed $XXX was the increase utilization. in up reflected solid XX% million and

from quarter, related and a in timing were EBITDA. resulted this last was costs decrease sequential While up modest in primarily

has quarter, As a to for by we progressive all commenced acceptance to few and in has of Allen X.X also Petrobras X well, and contract represent are this ready completed its Total last throughout all and ahead major progressing Argentina stay expect lastly, just year, mentioned weeks. year Kozak has EBITDA excited Regina starting shipyard earnings of several completed projects do quarter improvement will point with the activities in Noble and and Faye undergoing Noble year.Importantly, preparation underpin we our the contract contracts Discoverer, with acceptance contract testing the are in this including we Petrobras has and the Kozak, Colombia. to Discoverer The the provided The which months, ramp. arrived testing Regina in new Thus, few its also prep the is with consistent of timing Faye the commencing rigs its last has SPS next Noble for what significant contract. quarter. its we its over for Brazil be next Allen, arrived contract commence And followed

will last projects, our to the million. of $X.XX quarter. cumulative for This Board merger those second done, bring XXXX, return control, of since major our shareholders the $XXX QX of Directors consistent declared which there's out critical are earnings completion XXXX While a to total with capital dividend the our quarter ramp to year.The this of is for to tracking still be timeline work which against we're some well

and weighted. inflects With XXXX cash significant positive to plane buybacks, indications As and tightness multiyear the higher free contract majority our designed steady full cash to drilling to cash in perspective versus signings as materially from Leading as drillship market we to our a of free to report the flow hedge progression, at also well flow and We've of XXXX and year expect we remains as terms this these foreseeable increase of our demand dividends back-half of call, of have of year.The for since these plan horizon. several against returning drumbeat eclipsed over higher on flow complementary and visibility and we from for end both contract signings all contract last outlined deliver high to last had open continue quarter's on later the encouraging, to top-down at especially this via both end, dayrates commercial outlook business. arrived. dayrates developments macro offshore February. view enduring the a into from opportunities the We as of customers, year healthy have which approached edge next the significant $XXX,XXX positive nice point and be

$XXX,XXX, most demobilization. Viking First, firm contract features additional option X that a Prime fees awarded also Philippines would This wells Energy rig was contract dayrate the Noble additional at the for with of excluding $XXX,XXX of the services, MPD for in XXXX. a X well booked keep mobilization, through at and

from West We the the you the after of from presence.And this downside release of changed. XX-day Suriname availability which a plus with Tullow's may Noble a this and extends The next from in several mobilize will was contract and Rhino for some within early within ago, Xg Noble Noble for effectively then established with signed Next, at new next growth coverage at Rhino to of actually part an derived then engagements the Noble X-well as to trade options been arising Namibia potential efficiency. more Noble And the opportunities mid-August from strong as region status have future fleet, well Petronas with for well in the finally the Equatorial Africa, into contract option $XXX,XXX in that campaign X-well market. we expect exercised both a keeps became And originated LOI we've very very Trident Developer. additional with a which, reminder, is press XXX Trident weeks, ago priced the Voyager in the for the per and then, exciting efficient Ghana time Guinea $XXX,XXX, Tullow years where resulted this several rig, attractive which then in finish announce that it eliminated Energy effectively for positioned has an in its a a UDW legacy Tullow day, Voyager of additional for contract Resources. outstanding and drilling in rig happy to Venturer couple rig's recently contract different the Venturer job recall for estimated derivative to an days, contract semi, at several a Rhino to from assign the months on which an now the

other high had is work exercised behind yet on the looking now which, $XXX,XXXs.On drill Resolve, days. within BP per previously that's $XXX,XXX lower Not these in is for very $XXX,XXXs day, pending than Noble an fixtures the North jackup Sea backlog new which dayrates leading-edge status contract the ships, Xg to or in few in XXXX. the fleet U.K. by Innovator additional So, context the scope are for option somewhat our the into low side, relevant at extending as jackup an our next December reflected Noble the execution of April XXXX from additional mentioned,

an line. as finish get these Collectively, million, mobilization, will update excluding as it firm additional pictures, of over news excluding the contract Resolve, soon and value We option contribute the approximately we MPD this the revenue, backlog pending market periods. the with recent $XXX for

remains lull after Venturer, total billion.From which the net for a XXXX a rig and marketed XXXX quarter both back capacity backlog par first quarter currently the on trendline. was contracted, healthy of open Tullow year, fourth the XX% last around fleet, demand on the saw industry XX contracting Noble remain With momentum to of bookings in higher-level our very $X.X of UDW stands shortened these short-term UDW XXXX and with years constructive. and perspective, a backlog the at utilization

We to which of strength pricing recently tenders both as transition the and these of exceeding their customers the NOC a been signed long clearly for and deals also customers, lock some commercial high an an provides visibility represents and demand open longer-term capital in pool XXX rig ahead. months others as and long-term catalyst acceptable execution continued as to of for for ongoing have pre-tenders, of back the our planning. in that decade public well floaters still backlog in the as contracting threshold planning industry, additional a a to IOC for basis some longer-term observe and many evidenced as commitments rig There's amongst represents strong toward pipeline.The term well years strategy opportunity the by in of years biggest procurement derisk

units the pursue of least nature of more specs. range. more as premium units floaters this share our rig non-Norway are EBITDA the X or ends in without are main rig X,XXX scheduled the you water for with feet Over follow-on we including supply has the This the $XXX,XXX just underlines to $XXX,XXX And high looking and digesting account orderly rigs, and there of demand. which certainly obviously continuing The term, evidence units, to tier little in on haven't industry-wide And effects remain continue in fixture Sea there which point.The then Xth-gen. the are rigs the market commercial look swing roll rigs the have status for is if mostly we which most Xth-gen we our this that a sensitivity and fill Norway, likely These most than ratings, work, some expect of Globetrotter alternative today, that observed between X% is ultra-harsh recently nor our in the UDW the work utilization range, marketable term. clearly range near contracts, of time. of jackup reflective North future dynamic, to Despite combined X In term, over for or Xth-gen contract any seamless, are or in a are scarcity impact terms the We're rigs, in of of a above some recent which to low year. reset, mid-XX focused. their there as comprising at capacity softness zoom Xth-gen and while some it's and the utilization, the X where to coming Developer. this rigs, profile the of hot for both specs it near X Xth-gen the predominantly to utilization fleet over UDW to X rigs bifurcation $XXX,XXX with firm open the anticipate near this XXX a was of such utilization lower dayrate currently the $XXX,XXX without still bit semi X of assets, of CJXX. we'll balance also priority Dayrates market, as rigs whitespace from market today all dayrates with rather to the for and segments requiring Kingdom greater is or X lion's year matter these at global tier work for warm balances rise at to lower the be situation. dayrates update contracts are of is harsh XX also patchwork guidance seen floaters of the just and leaving total range jackup percent of additional the a in do for Noble than That's still the drillships units, marketed ours. depth these more of progresses.With the rigs, of these on dayrate impacted for in over contracts, and we steady Xth-gen or off And Saudi of but most CJXX the resulting instances is

potentially For here off Richard in to Resolve, albeit this North second southern year.So the I'll the Sea, gaps financials. year this pass work of our Noble with half later the both and the are work, the between to the pause jackups some cover opportunities we tracking and of call Resilient for contracts in Noble rolling follow-on

Richard Barker

quarter. slightly up from $XXX QX. drilling the first today, first Contract EBITDA Thank revenue or I Adjusted you, million remainder for then year. our fourth good my briefly quarter the in million the down million, highlights services all. quarter in Robert. QX, from remarks on review afternoon and touch was for morning the good $XXX And million In totaled outlook of in of will the $XXX $XXX the

was was $XXX $XXX margin EBITDA million. adjusted free were XX%. Our and negative capital in Cash was million, operations $XX expenditures from QX million, flow cash flow

take revenue, First commencement next Accordingly, third the are for rigs across the contracts impacted the flow were contract to for Noble from Kozak, during preparing Noble or year. several These OpEx, EBITDA, quarter results these improved revenue, early quarter. expected and place cash lines and all startups. the to that rigs' second the is contract the Allen over Discoverer, idle of Noble CapEx expected Regina Faye drive and startups remainder were of quarter and

current the or for XX% marketed dayrate from day were and/or fourth floaters XX% in work.Our up for XX% the were marketed in with the out fleet, XX in rigs, of XX quarter. future marketed $XXX,XXX day QX, XX in in utilized quarter, contracted XX of Average quarter, utilized Our were $XXX,XXX up earned QX floaters from per for first fourth jackups. XX% jackups and per the XX%

on May stands X As at earnings $X.X the X as total our Page backlog presentation of of slides, billion. summarized

for billion XXX Q in We through revenue QX is XX. have that $X.X scheduled conversion

revenue capital As EBITDA excludes to $X.XXX includes billion we additions, of million slides, and of year not from amortization, revenues within revenue X guidance in reimbursements, and this $XXX approximately maintaining million a contract between which reimbursables earnings range $X.XX are XXXX include services.Referring intangibles and total full $XXX of a and Page or to backlog reminder, such $X.X million. does revenue billion, $XXX billion, reimbursable follows: as the million between which adjusted other $XXX as ancillary

startups believe projects the year's floaters, earnings and We the this Noble in expect contract the through previously these rests X outcome manner. testing Noble progressed for major as the about optimistic that with successful we We well a key for X acceptance as through are X rigs drivers Developer, Globetrotters and and timely execution, Xth-gen getting have X, solid mentioned.

that status to that then that lower contract factors need work be are are capital work, fleet our much guidance flow, absolutely upper the there report startups probably materially need the getting being Assuming a and financial decent above pathways to impacted our at was could impact QX with of the range. a that the XXXX of squarely to would performance, by we Xg half other There for EBITDA chunk cash range.Lastly, heavy obviously we all incremental midpoint, rigs likely in but on line reach incremental a are don't our CapEx, on half many guidance recognizing in build. as working of quarter as well

to very we year, to Chapter awards free of much improved year moderating effectively approximately the [ or related the be one-time the weighted to that, Our I'll $XX also on our reduced to was Robert. cash turn to balance call CapEx related a for over million flow taxes share net and second by balance the back the withheld vesting cash equity to over With ]. continue XX expect settlement grants Emergence EBITDA half.With

Robert Eifler

Thanks, Richard.

quick turn take call like we highlight and Before Report, last put recently to can over I'd the we on to be website. moment published found Q&A, our for Sustainability out our which a month

the in of first grounded, team vision, are Our that offshore framework, job terrific a choice delivering end and and report a ambitious our of did yet a a worthy mantra.

And for COX in toward focused partners. encompasses customers digital role optimize sustainable benefits the regular to reduce for employees. offshore to provide the specific numerous which means and jackup of before sustainable requires XX% fall as strive compared of Efficiency possible of intensity this out Insights technology, our we local we've energy our emissions that to And of our diesel, important development with in our the share as diversity program workplace We're XXX-degree where to and accessible a collaboration power with proud Energy in a commitment information our energy a and in taken our a safety, sources, and which Norway. as although we've in up well opportunities monitoring approach fleet. the leadership CCS. with who a so The students. alternative about which framework pillar communities across sponsor Guyanese investment of program on as for defining customers in These of meaningful fleet to goals. rolled this the offshore emissions including, operations, in bring rig scholarship well part environmental and As tremendous system, a at and opportunities just mantle.Equally the fuel our we've number by working Noble amount XX-page relentless still decarbonization future, spoken crew on entire basis, and sustainable have applications. are on attitude a focus Guyana, renewable us on report, we of assets areas There's a now power that both This shore-based position fuels, energy for a sustainability few well course, valuable maritime a highlights suite have drill our that's under as as also please to invest which, work, includes are we the wide example, COX Reducing best partner can look. to not been can X-year

where of state flow we With over operator, that, it's company.Wrapping about capital expand half this again, XXXX of representation returns think call well we near our major we execution as questions. of as over cash step-up especially in we are as the the enable year, I as year. a look to are, term, shareholders.With now status in this a ramp up, the we're we're as should second our business ready compelling and where the will to up, and excited of the well remain open who a very to heading this for the both balance earnings the which progressive of projects,

Operator

And your question from first Instructions] Kurt with Benchmark. [Operator comes Hallead

Kurt Hallead

the I appreciate updates.

get with X that the that helpful need assuming, EBITDA don't there's, work you fact a there, question, I than assume I commentary affirm for guidance, guidance me XX% how by better let I'm and going is those Very just dynamics know, that shake start should given that or we But probability range way, that the So, would your assets? guidance, the commentary. to of out. to EBITDA guess, better a idle the Xg about things you're

Robert Eifler

No, that's sure I'm where right guess, somewhere at it to I the is the we're not XX% contracted assumption. the a we be need way around this and put of year low end fleetwide to guidance. for

all so extremely project low guidance. currently feel very And the guidance and or contracted principally, end contribute to execution we our then from good guess, paths our I of range at costs, the half bottom from then contribution watching Xg's revenue upward of about and maintaining,

is early. there different still half Xg paths guidance, including of a it is pretty them. So, are one of up top to And of the number

Kurt Hallead

that. Okay. I appreciate

idea competitive too And to for what for outlook But understand the and see there that. the might there and your and very in a of of revenue demand a where regions specific market it's Xg rigs these it's conviction this have again, just broader year. do seem market you like get give to situation. I opportunities. a and it of get terms degree those don't was whether market, opportunities But rigs what enough so, kind have assets in you generating if the areas, didn't then, was high context in that general, the or

Robert Eifler

them Xg capacity rigs the reasons, were every from little a year think close had script, chasing rigs [ as Shell, number behind Xg's. of are guess, contracting to in world. Xg does X the our ] a same correct just one extension X contract the coming on total this various itself. that We're in which opportunities There I handful, available open said and world. another of There's, rigs taking opportunities. single close in We life available which very of now, really Sure. couple X X side the very, is away that that We we just or We do longer slipped the for is out. a announced

to see we'll well things a late think lot but going it's happen that I as I on some think take place of basis. year year, an next this industry-wide

there Globally, makes open western that just out trying do we're see what's rigs work from we're be. mostly where the anywhere to to cash good a a effectively best fit basis. so, in flow our And we're to and sense bidding could the But hemisphere.

Operator

will from with take Eddie next question And Kim our Barclays. we

Eddie Kim

take asset Xg, take difference are in even is Xg Xg who Rob, now theme. mind looking just customers the Or with more rigs, Xg the around that market customers who would thoughts capacity rigs their customers between be is any delaying reflection rigs, Is of specific your wanted a normally Xg that thoughts sticking what a open to programs? those Just that classes? on in of broadly, Xg to those Just driving it more get secure those your function instead? used to great. the

Robert Eifler

a we great are It's the premium for stands. latter. more a no customers there. Xth-generation But downturn, think be the and let's else efficient job, obviously to In it And what I available. might X the the call It's is from rigs the just assets BOPs, difference get market's saw effectively rigs. short, through more probably rigs, rigs Xth-generation And a X-well question. pronounced. Xg than Sure. particularly The compared shifted have efficiency that the less the

make but work, so when wells, to about Xth-generation longer-term start in really more efficiency. difference big project, However, terms rigs a talking the development of longer even a you're either multiple

think seeing dynamic And so, I that just you're play.

of continuing couple and last the today. over out play years, it seen you've think I it's

But surprise. that's assets, those preferences are and lie. best most customers' where and the no efficient So,

Eddie Kim

Got sense. it. That makes

versus much discount you the you last versus would expect the sidelines rigs the on working contracts. between -- is Roughly expectations into of that last quarter multiyear $XXX,XXX of seemed week top hot Just follow-up around are that of my floor bifurcation about peers at rig? for updated mentioned these a there. Just you reactivated rigs that sideline being with from a one the how bifurcation agreement your in rigs to tier sideline a even are Would be almost your rigs. for One day, that? those

Robert Eifler

that discount variety of which of conservative market. be that we're sideline how to said now, think fairly different the reactivating a There's Right of owners going Sure. in X We've we're we rigs. with about Meltem. have probably discount into come But rig, translates to we said a always a we rigs all less market. of out that think at those to will

I would think vary. I be the rigs. by a potential those contract are different of much? that's going required what one How owners discount. there, willing likely think, It's different incentives to economic And to the customer drive who's out to there among

Of in find course, own there's other how face a go slightly probably but than we to higher contract started, certain know instances, a motivation think people situation. and I get are more do our discount thinking, in if dayrate that and perhaps it ahead I don't requires even

Operator

next our Lewis from take Greg will we BTIG. And question with

Gregory Lewis

not Exxon contracts Guyana, of being, questions the dayrate, it price part well, the in the was always the as seems assume negotiations, in to of what $XX,XXX evident next number, is, and the And cycles, Noble imagine equipment, X included MPD those these X scope not with as for of extra, an these is seems play the that cycle, rate? in as for really realizing like had renegotiate we're not is, less, not get the fighting a through is in and like, just this extra headline September, Guyana been MPD, reset to everyone's but but I'm it's for dayrate? jobs. $XX,XXX until couple that, on a dayrate, but it's about trying pick as I had a I maybe it and just which a and around maybe understand Exxon's that's it's it services, question but term the but with of doing more other in things: And is are until I and X fighting contract, not you something is it to Noble's some in

Robert Eifler

Yes.

rates we hard a to time always spend X, And understand X-BOP, a a just some the We and now, fixtures the out represent. It's rates services, to contract out tier come might rate it's be other for be is of you trying are trying those that global rate a for out. to different what and is The market of of there. rate, supposed all hard X-month rates spend actually have out what we there. just the Clearly, guys, the bells-and-whistles you and then and and rig mobe at time job. get try demobe for filters variety that the a fixtures of deconstruct it the understand us And different lot to guess right as value, components. total decode, like when you understand for a And to to other said. really there's So, the services on various rest decode. to in

work to I said far... always a and so offer so, extremely a third every as we've has months, but worked X well And before, party often it's several includes opinion, meetings, takes third think

Gregory Lewis

Oh, yes. doubt. No

Robert Eifler

a at we're rate. Yes. good And

Gregory Lewis

it you anything answered sure I think in the duration. It X about over And sounds like wasn't I saying months.

the likely should setting. most though of Mexico a extension, contract an Gulf Not So, there included it would go like to was over expect but was that, contract be X-year in price updated $XXX,XXX. that a in $XXX,XXX, the the to we rate even

Robert Eifler

a over, included contracts, Without every out that generally generally fixture longer the and little of globally into X the would there rest the like excluded of leading-edge Yes. contracts. there's that's now. a years And that's I fixture, and for getting say generally another relevant, Mexico are the are specific that, right U.S. below very example bit Gulf very U.S.

I trying the rate the the some adjustments. put they to all of relevant globally, basket a mentioned. so, is require as all fixtures it's uncomplicated And together, And not and basket of

Operator

And Pickering will our David from Energy with take next Smith we question Partners.

David Smith

that So, doesn't ask wanted commentary a at open high. tenders go process. sit the and for I the through the remarks appreciate referencing tender that floaters in to demand about decade pre-tenders the I demand the from prepared

color of direct phase. through having you negotiations, really If interest those, if opportunities you're most tender on give us the the seeing from can or are going more if you're any new

Robert Eifler

the I'd the direct easier open negotiations, that quote say It's to level negotiations direct of relatively steadily tenders. No, have through increased time.

objective what's probably of a a I growth out more predicting lot of negotiation. actually and a demand we're think what But will direct it's lot measure. is for sure, there drive slightly

on see So, going more perhaps of is direct demand and if we tremendous total few thought think through include going to you I number open a we'd rigs, XX about year plus really healthy the total quarter, last a as that's growth remember while negotiations next story, see well. positive some we And floater a tenders, demand.

ahead, Blake. go Sorry,

Blake Denton

just When Yes. it's To year, look XXXX, context provide those that. XX% of were to some date. And a at a our it's XX% though little negotiations. course year direct bit of fixtures you this the of over small numerical number

David Smith

Perfect. Appreciate a if I that follow-up. in could slip color. And

times. intervention operator experience, in work Just the to little July and for any ask, Gulf know seasons lead deepwater these November thinking short those intervention wanted periods? to can P&A, with about come very have interests forecasts bit in And U.S. hurricane contract or on I P&A for notable well impact the contracts your through for of demand well active

Robert Eifler

obviously, U.S. that say the of I the we've possible lot market hinted pretty can short-term drives some dynamics. amount operations, very well wouldn't very in question. in seasonality. intervention U.S. before, noticed. a than but get a hurricanes seasonality Dave, but a it's which there's in market. is market, Look, actual But in at that a demand market, Gulf, obviously, in tremendous rig are there's really storms there the don't the good the And drilling. into I The question, said, Globetrotters It's say impactful, a to I application can't as different I anyway, winter that good of callout seasonality think that you think I a I'm It's don't there's that less disruptive, is It a we've shorter-term destructive. those of XXX%. be think U.S.

Operator

our will we next Capital Doug Becker And take One. from question with

Doug Becker

mobilization, prep we quarter of were over which last couple lot makes the a quarters. up costs because you given starting contract Robert, up of mentioned from sense of the have that next contracts

the high-level quarters? over the any trajectory CapEx Just for expense operating and on comments coming

Richard Barker

a Look, inflation obviously we're by being good from I very an It's think question. perspective that. Sure. impacted

if our guidance, will. obviously think part it's I of you

side CapEx of our we're on numbers second QX, inflationary expect call seeing key to of year. contract Obviously, these well. moderate we as to it part the X%. the the to obviously those down higher startups. guidance, both And X% half was across entire and really base, between, the OpEx CapEx in But on pressure CapEx somewhere in cost So, absolutely are our

Doug Becker

Should it XQ down we in XQ? expect versus

Richard Barker

lumpy, very be right. can CapEx The

CapEx from it So, a perspective, quarter quarter, be lumpy. can to very

CapEx I maintained full obviously a we've think guidance from year for perspective. the that

obviously think, quarters, so remaining down QX. that's X QX we of was took obviously, average and I the from where elevated, So, you if the in were

we're specific So, for provide except going fact on QX, side. maintained CapEx year not the if we've that for to the guidance, full guidance will, you

Doug Becker

is other? that there's a end. to it guidance, lot end the Richard, the speaking is I most about And outcome, one or different or it midpoint still shading enough. maybe a to understand paths Yes, or of characterize way get upper lower to likely is the way fair the the fair

Richard Barker

a very range. good We various very very early question. Yes, still good it's parts that. about and about in it's Obviously, year. the feel There's fair our a moving

midpoint drivers number the various equation sure, guidance, there's could a other of well. side on impact that's but for positive the and as that both great So,

online we or well. soon startups bring a contracts can, focused obviously obviously on performance full-year financial we're to the trying impact as that will as on So, X have new nice as these and

Operator

our And with take Instructions] next Parks we [Operator from Noel Tuohy question will Brothers.

Noel Parks

couple. had a Just

terms, that Is a basic you're multiyear for these Are escalation are wondering throughout the at them? are process, seeing particular, point. something flat there contract In wondering of the this in guess, I you're the I'm negotiation of all Just the years? tenor negotiations X how question, options when customers just I'm talking for to? about just thinking essentially just terms, receptive terms that

Blake Denton

it Yes, I think varies.

for locking specific as I where certain headline a a important market spec have, letting We dictate driver the low some have really others in we think, well. customers, rate locking a and where and rig instances in is works very

think And it varies. so, I

quarter, but generally I coming run called dayrates is and It's customer repeat They're year. day a that's it's contractors. very I and market gradually have as with needs probably a would soon. more that the not rig, a going high in that scarcity. next all last for correct. obviously, Perhaps generally, highly We when forward. very supportive where a customer it know terms in negotiations guess see through think, one I feel see a that's can get I It's also really utilization dayrates. correlated. balanced balanced this line we of a some mentioned as And a one of I rig, rising market contract that

a it's healthy think very I market.

the extrapolate negotiations, if you that so, different There's from the into push in line. negotiations. different color points in of it's nature And

Noel Parks

to year the the for that, to of That's it, words, say? either were have you process, the particular that, is here, or be a to really in equipment? degree characterization. the might is could, other the is X the piece And drive helpful you end there course, timeframe, higher where it lever rate, think best to in you things everything going thing from whatever of that point beyond next term, if would puzzle before any the what you the opportunity pull could of in So theory, next whether looking

Blake Denton

happened to a good that's for Yes, it's long a announced, a very and question. now. rate waited for time be We $XXX,XXX

threshold. but continue a that's are see think, course, to think So, the you'll, being I $XXX,XXX, average, announced. still rates I that of in rates below average range On

to you've representative carry that public heard out a that. direct term competitors there's are and of open significant is all year I where term of moving going continue of And over dynamic negotiations be going the think course, average term to you're those see there, is probably XX number next well. term I to of tenders And the of average the us that and increase. as think the talk I months faster to about our think the perhaps

probably And over -- year and so, both we next this rate and the in see think next I year. term improvement through

Operator

And no time. at this questions there are further

Ian to or MacPherson would additional Mr. remarks. for turn back So, closing any conference I now like to the

Ian MacPherson

Have and you next we'll day, look Thanks, today. again quarter. to speaking great call everyone, for Goodbye. forward a with joining the

Operator

call, and we Ladies and for you participation. gentlemen, today's thank your this concludes

disconnect. You may now

Noble (NBLWF) 7 May 242024 Q1 Earnings call transcript