Aaron Rosenthal

Aaron Rosenthal of JPMorgan Chase & Co. asked about the balance sheet, noting the revolver draw, and questioned if future cash shortfalls would be covered by more borrowings or new debt issuance.

Answer

EVP & CFO Phil Lister confirmed that no new debt issuance is planned for the second half of the year. He stated the company will focus on cash generation and manage within its credit rating, noting that cash flow over the last twelve months has covered the dividend.

Aaron Rosenthal asked for context on the '2x normal' Q4-to-Q1 volume uplift in Europe and how Q2 growth compares. He also inquired about the duration of inventory coverage for Botlek's volumes and which plants would ultimately backfill the production.

Answer

CEO John Romano clarified the Q1 uplift was abnormally large and driven by share recapture post-duties, with Q2 showing continued but less dramatic sequential growth. CFO John Srivisal and Romano stated they can service customers immediately from pre-built inventory, with future volumes to be supplied primarily from their other facilities in Europe, Australia, and Saudi Arabia, which have available capacity to ramp up.

Aaron Rosenthal of JPMorgan Chase & Co. sought to confirm details on the international rig drop, asked about the broader activity landscape in the Middle East, and requested quantification of near-term rig demand in the Haynesville.

Answer

CFO Carey Ford confirmed the international situation involves a single rig suspension in Saudi Arabia, which is part of a broader trend by the customer. Regarding the Haynesville, he stated that while bidding is active, he anticipates activating '1, 2, 3, 4 rigs in the next couple of months,' not the full fleet of 10 idle rigs in the region.

Aaron Rosenthal inquired about the contracting prospects for Noble's Tier 1 drillships and the factors influencing the wide dayrate range for 6th-generation rigs amid current market softness.

Answer

President and CEO Robert Eifler responded that there is an abundance of work being discussed for Tier 1 drillships, primarily with 2026 start dates across the 'golden triangle'. For 6th-gen rigs, he explained that dayrates are determined by specific technical needs, with a wider discount applied when competing against 7th-gen assets. He emphasized that asset quality will be the key differentiator during the current market 'air pocket'.