Noble To Buy Diamond Offshore Drilling: What To Know
If Noble's bid for Diamond Offshore goes through, it will create one of the world's largest offshore drilling companies.


Early Monday, Noble (NE) said it will acquire Diamond Offshore Drilling (DO) for $1.59 billion in cash and stock. The deal works out to $15.52 per DO share, or an 11.4% premium to Diamond's June 7 close.
Under the terms of the agreement, Diamond shareholders will receive 0.2316 share of Noble and $5.65 in cash for each DO share they own. Following the closing of the transaction, Diamond shareholders will own approximately 14.5% of Noble.
"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," Noble CEO Robert Eifler said in a statement. "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."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Noble said it expects the transaction to be "significantly and immediately" accretive to its free cash flow per share and will lead to $100 million in cost synergies, 75% of which is expected to be realized within the first year of closing. It added that the combined company would have a backlog of approximately $6.5 billion as of today.
The transaction is expected to close by the first quarter of 2025, Noble said.
"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," Diamond CEO Bernie Wolford said in a statement.
Speaking of Noble's dividend, the company also announced that its board of directors approved an interim dividend of 50 cents per share for the third quarter. This is in addition to its quarterly dividend of 40 cents per share.
Noble's bid marks more M&A activity in the energy sector
Noble's bid for Diamond Offshore Drilling marks a busy stretch of merger-and-acquisition (M&A) news in the oil patch that started last fall when Exxon Mobil (XOM) unveiled its $60 billion bid for Pioneer Natural Resources.
More recently, ConocoPhillips (COP) announced its acquisition of Marathon Oil (MRO).
Is Noble stock a buy, sell or hold?
Noble has underperformed on the price charts, with its 7.7% one-year total return (price change plus dividends) well below the S&P 500's 27.2% total return. Still, analysts remain bullish toward the oil stock.
According to S&P Global Market Intelligence, the consensus analyst target price for NE stock is $58.73, representing implied upside of more than 30% to current levels. Additionally, the consensus recommendation is a Strong Buy.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
The Rise of AI: A Kiplinger Special Report
The Kiplinger Letter Our special report looks at the opportunities and challenges of generative AI and how its rapid move into the mainstream is impacting every aspect of our lives.
-
Ask the Editor — Tax Questions on Standard Deductions
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on claiming standard deductions on your tax return.
-
Should You Buy These ETFs Before the Fed Cuts Rates?
The Fed is likely to lower interest rates this fall, and tactical investors may want to look closer at these ETFs before rate cuts resume.
-
How Much Income Will an Indexed Annuity Get You? An Annuities Expert Lays Out the Numbers
Guaranteed lifetime income sounds great, but how much will it be? Several factors determine your future payout on indexed annuities with an income rider.
-
Financial Fact vs Fiction: Why Inflation Is Lower, But Prices Are Not
Do you think bonds protect you from stock losses? Are you confident your assets will go to your intended heirs if all you have is a will? Think again — and read on for other myths that could be leading you astray.
-
I'm a Personal Finance Expert: Here's the Truth About Using AI to Plan Your Retirement
AI can be a useful tool, but it often gets important financial information wrong. It also can't emulate the empathy, judgment and personal connection you can get with a human being.
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market Today
The main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Three Ways to Find Deals in Your Investments This Year
Looking for ways to save because of tariffs? Don't forget to look for deals in your investments. Here are three expert tips for making a little extra this year.
-
How to Invest for a Fall Interest Rate Cut by the Fed
A lot can happen between now and then, but the probability the Fed cuts interest rates before the end of the year is better than 85%.
-
You Don't Have to Be Wealthy to Need a Wealth Manager
Navigating complex financial decisions is hard on your own, no matter how much money you have. A wealth manager can provide comprehensive financial planning, investment management, risk management and more.