Jim Cramer on Tesla and Other Stocks

12. Noble Corporation plc (NYSE:NE)

Number of Hedge Fund Holders: 38

During Mad Money’s episode, Cramer mentioned Noble Corporation plc (NYSE:NE) and said:

“We hardly ever talk about the smaller offshore operators like… Noble because they never fully recovered from the fracking revolution.”

Noble Corporation (NYSE:NE) is a prominent offshore drilling contractor serving the global oil and gas industry. The company offers contract drilling services through its fleet of mobile offshore drilling units, which includes various types of drilling rigs, such as floaters and jack-ups. The company has been focused on solidifying its position in the market, becoming the largest offshore driller by market value following its acquisitions of Diamond Offshore Drilling Inc. and Maersk Drilling, according to Bloomberg.

In September, Noble Corporation (NYSE:NE) completed the acquisition of Diamond Offshore Drilling, further strengthening its standing in the industry. The transaction resulted in the creation of the largest fleet of seventh-generation dual-BOP drillships, significantly advancing the company’s capabilities.

The acquisition also contributed approximately $2 billion to the company’s backlog. An updated fleet status report was published, which noted the integration of the Diamond rigs, along with the addition of 4.8 rig years of backlog recently secured under a Commercial Enabling Agreement with ExxonMobil. The agreement pertains to four drillships currently operating offshore Guyana, bringing the company’s total backlog to an impressive $6.7 billion.

On October 23, Barclays analyst Eddie Kim lowered the price target on the stock to $48 from $54 and maintained an Overweight rating. The firm expects that 2025 will pose difficulties for offshore drillers due to a “demand air pocket” in relation to the number of rigs coming off contract. As a result, it has adjusted the day rate and contracting expectations, along with price targets for the group.