Noble (NE) Q4 2025 earnings call transcript

Thank you operator and welcome everyone to Noble Corporation's fourth quarter 2025 earnings conference call. You can find a copy of our earnings report along with the supporting statements and schedules on our website at noblecorp. com. We will reference an earnings presentation that's posted in the investor relations page of our website. Today's fall will feature prepared remarks from our president and CEO, Robert Eisler, as well as our CFO, Richard Barker.

We also have with this Blake Denton, senior vice president of marketing and contracts, Angela Colegia, senior vice president of operations. During the course of this fall, we may make certain four looking statements regarding various matters relating to our business and companies that are not historical facts. Such statements are based upon current expectations and assumptions of management and are therefore subject to certain risks and uncertainties.

Any factors can cause actual results to differ materially from these four looking statements. And Noble does not assume any obligation to update these statements. Also note, we are referencing non-gapped financial measures on the call today. You can find the required supplemental disclosure for these measures, including in those directly comparable gap measure and in the associated reconciliation in our earnings report issued yesterday and filed with the SEC.

Now I'll turn the call over to Robert Eiffler, president and CEO of Noble.

Thanks, Ian. Welcome, everyone, and thank you for joining us. Today, I'll walk through our financial and operational highlights, recent commercial wins, market outlook, including our semi-annual review of Deepwater Rig Demand around the world, and a brief update on our fleet strategy. Richard will then provide a financial overview and I'll wrap up with closing remarks before we go to Q&A. Starting with Q4, we reported adjusted EBITDA of $232 million in free cash flow of $35 million, bringing adjusted EBITDA for the full year 2025, slightly above the $1.1 billion midpoint of our original guidance.

We have maintained our return of capital programs, returning an additional $80 million to shareholders through our 50 cent per share quarterly dividend in Q4. Yesterday, our board declared a 50 cent per share dividend for the current quarter.

Turning to the commercial highlights, we've continued to see strong booking levels across our fleet, with backlog increasing to $7.5 billion.

First, the Noble Great White has been awarded a three-year contract with Dr. BP in Norway, valued at $473 million, including mobilization, but excluding additional fees for integrated services and bonus potential.

This marks the Great White's first campaign in Norway, and represents a significant step in expanding our presence on the Norwegian Continental Shelf, and deepening our important relationship with Dr. BP. We expect capex of approximately $160 million for the Rig's reactivation, Norwegian certification, and contract preparation. This is a highly strategic investment with a compelling return profile, as we anticipate totally but not potential of approximately $240 million over the three-year contract period, essentially targeting a recovery of the capital in the first two years of the program, and positioning the Great White very well for the future as one of the most technically capable units in the Norway floater market.

And of course, the access to the Norway market should result in a structural enhancement to the long-term earnings profile and in A. V. of the Rig. Next, the Noble Jerry's D'Souza was awarded a two-year contract with Exxon in Nigeria. This contract, valued at $292 million, is scheduled to start around the middle of this year and is followed by three one-year options.

We're looking forward to redeploying the D'Souza in Nigeria following the Rig's previous campaign there from 2023 to 2025. In the U. S. Gulf, the Noble Black Brino has recently been awarded one well plus one option well with Beacon. The firm well is an estimated 50-day workover set to start in March, and the option well is for an estimated 100 days of drilling work.

Next, the Noble Developer received a three well contract with BP in Trinidad that's scheduled to commence in early 2027 at a day rate of $375,000. With estimated duration of 240 days, plus three option wells with similar duration.

As a side note, the developer has been made available for this contract as the previously announced long-term contract with Total and Suriname scheduled to start later this year has been reassigned to the Noble Discoverer. Perhaps somewhat counterintuitively, our sixth-generation D-class semis actually began to realize an earlier demand recovery than some of the higher-spec seventh-gen rigs. With both the developer and discoverer now booked out for a combined total of nearly five rig years.

Additionally, the deliverer looks well positioned for a good amount of work that's expected to start next year. Hopefully, we will have some positive news to report on the deliverer before too long. Staying in South America, the Noble Endeavour has been awarded an 11 well contract with an undisclosed operator that's expected to commence late this year with estimated duration of 18 months at a rate of $300,000 per day, plus mobilization in demobilization fees and potential for performance bonus.

And finally, in Southeast Asia, we affirmed up contracts for an additional five to six months of work this year through the expansion of existing work scopes, plus one additional option well. So we now expect the biking to be solid through July with additional opportunities under discussion that would carry terms for the rigs through this year and beyond.

Now onto the market outlook. Despite the ongoing abundance of macro uncertainties and rent prices hovering around five-year lows in recent months between $60 and $70 per barrel, floater contracting activity has been resilient, underscoring our customers' multi-year planning horizon for their highly strategic deepwater assets, including our recent contract awards. The contracted UDW rig count has now bounced back up to 105, up from a recent low of 97 early last year, and is closing in on the 2024 high water mark of 107 contracted UDW rigs.

On this basis, the contracted utilization rate of the marketed fleet is 95%. That said, these figures all reflect the gross number of contracted rigs, including those which are currently idle, but have contracts starting in the future. Alternatively, the number of UDW rigs currently working under contract today is 90, which represents marketed utilization of 82% on a present basis, and of course gives drives to the soft day rates we've seen recently.

These divergent utilization statistics tell us a couple of things. First, the industry fleet has added backlog depth, but hasn't yet fully worked through the prompt fight space overhang. And second, the foundation has been set for steadily improving activity level as we progress through this year and into 2027. Of note, six of the 14 rigs that sit idle today with future contracts in hand are noble rigs. The noble black rhino, Voyager, valiant, great white, Jerry de Sousa, and endeavor.

We believe this is a strong indicator of improving utilization on the come for the industry fleet, and especially the noble fleet, more on this later. Focusing on the near term, there are still about 25 UDW floaters with contracts expiring during the course of this year. For context, this is essentially the same as the fleets roll over profile in 2025 and does not cause concern.

While this turn will still probably continue to result in some idle gaps this year, overall, the flight space across the industry looks to be on the retreat. And if the overall contracting cadence remains on trend, then we would expect to see some convergence between the present and future utilization metrics. Against this firming, but not yet decisively tight backdrop, day rates for Tier 1 drill strips have settled at around $400,000 per day, with lower spec units recently capturing low to high $300,000 per day.

Geographically, the recent deepwater demand trend has been characterized by steady strength in South America, a slight decrease in the U. S. Gulf, and upticks throughout other regions, including West Africa, the Med, and Black Sea, and Asia Pacific. Starting first in South America, where contracted UDW demand stands at 44 total units, including 34 rigs in Brazil.

Although petrograph's budget pressure has emerged as a near-term headwind, resulting in slower contract executions and ongoing blend and extend negotiations with contractors, including ourselves. Thus far, this has been offset by increased demand from other operators, both within Brazil and us elsewhere throughout the region. Later this year, the Noble Discover will wrap up its program in Colombia. It has planned to commence its three-year campaign with Hotel and Suriname.

We remain in constructive dialogue with petrographs regarding contract extensions for either or both of our two Brazil rigs, the Noble Fake Co-ZAC, and Noble Courage. Overall, with petrograph bearing back activity by a few rigs over the short term, while other operators throughout the region are net adding, we would expect South America to remain roughly flat over the next year relative to today's record-high contracted UDW recount of 44.

U. S. Gulf has softened recently, with the Noble Black Rhinos' recent contract award bringing the contracted UDW recount back up to 21, which is one to two rigs below last year's average level.

We had predicted this slide pulled back in the U. S. Gulf, and it appears now that this has more or less fully played out.

Next, on to West Africa, where contracted UDW demand has recently rebounded to 15 rigs with the Noble Jerry de Souza back under contract. This is an uptick from last year's trough demand level of 12, although there is still some variability to demand in this region, with a few rigs contracted into other regions later this year. The pipeline of open demand throughout Africa remains highly promising, including at least five active or pending long-term tenders throughout Angola, Nigeria, Cote of Waukana, and Namibia, plus the potential for multiple additional rig lines in Mozambique over the next couple of years.

So overall, West Africa plus Mozambique region appears poised to grow into a mid to high teens UDW recount as these various programs come online.

The Mediterranean in Black Sea has been a growth pocket, partly due to the continued expansion of Turkish petroleum offshore ambitions. The region is now up to 11 rigs up from an average of seven to nine last year, and this could expand to 12 rigs by the second half of this year, with the commencement of two programs in the med offsetting the conclusion of the Noble Globetrotter One's contract in the Black Sea.

Visibility beyond this year isn't quite clear yet, with a number of rigs rolling up contracts by year end, but the long-term trend has been one of secular UDW demand growth. So from where we stand today, an estimated range of 10 to 12 rigs going forward looks sustainable. Continuing with Eastern Hemisphere strength, the Asia Pacific plus India region is witnessing a significant recovery with contracted UDW activity rebounding over the next year from a trough level of four rigs to eight currently.

Additionally, the pipeline of open demand in the region remains robust with over 30 rig years of active tenders and pretenders outstanding, including a variety of requirements throughout Southeast Asia, India, and Australia. All of this indicates a likely upward bias of at least a couple more UDW units through 2027. Rounding out the global picture, the Harshi environment North Sea and Norway market currently represents 22 units of total flow to demand, seven of which are satisfied by UDW semis, which is up by one to two units compared to a year ago.

We are very excited to kick off preparations for the Noble Great White three-year program with offer BP starting next year, and the redeployment of both the Great White and the Endeavor points to a tightening market for harsh semis. So the pathway back to 105 total contracted UDW rigs that we described on our earnings call last summer has in fact materialized. If anything, faster than we had hoped.

This is a good momentum, but there's still some work to be done to arrest the re-contracting churn. The average grant crude price of $68 per barrel in 2025 was down by 15% compared to 2024, which I believe makes Noble 30% year-over-year backlog growth stand out incredibly well by comparison. However, we believe that a broader industry uptrend will necessarily require at least a modicum of positive upstream cash low momentum.

With both spot and long-term print futures hovering in the high 60s per barrel, our end markets are for the most part highly economic, whereas our customers' budgets remain relatively inert, which creates friction for significant expansion in drilling activity and day rates. The great news for Noble is that our backlog progresses have already formed a strong foundation for rising utilization EVADOT in free cash flow without necessarily a great deal of wind at our backs from a macro perspective.

This sets us up well toward our goal of maintaining our robust shareholder capital returns to a transitional year in 2026 and supports visibility for a meaningful step up in free cash flow next year, even in a flat world.

Before I turn the call over to Richard, I'd like to provide a brief update on our fleet strategy. Last month, we completed the sale of five backups to board drilling for $360 million.

Additionally, the $64 million sale of a sixth jack-up, Noble Resolve, is expected to close in Q3 upon completion of its current contract.

As we continue to sharpen Noble's strategic focus around the high-end deepwater and CJ70 jack-up market, we have in the process unlocked capital available both for fleet reinvestment, in particular the highly strategic reactivation and upgrade of the Great White, as well as for preserving a highly flexible balance sheet and industry leading shareholder capital returns program.

On the jack-up side, we remain fully committed to the CJ70 market in Norway and the North Sea, and we are encouraged to see early indications of the strongest utilization outlook for this fleet in many years. This aligns very nicely with our entry into the NCS Florida market with the Great White next year.

With that, I'll pause here and pass the call to Richard.

Thank you, Robert, and good morning or good afternoon all. In my prepared remarks today, I will briefly review the highlights of our fourth quarter and full year 2025 results and then discuss our outlook for 2026, starting with our quarterly results. Contract drilling services revenue for the fourth quarter, total $705 million, adjusted EBITDA was $232 million, and adjusted EBITDA margin was 30%. Q4 cash flow from operations was $187 million, capital expenditures were $152 million, and free cash flow was $35 million.

Last quarter, we terminated the BOP service agreement on the four black ships, which increased fourth quarter CapEx by 18 million.

For the full year 2025, we generated $3.3 billion in revenue and $1.1 billion in adjusted EBITDA. CapEx netted proceeds from insurance claims of $497 million, included approximately $25 million of rebuildable CapEx, and the aforementioned CapEx for the termination of the BOP service agreement. This all resulted in $454 million in free cash flow for the year. At some rise on page five of the earnings presentation slides, our total backlog as of February 11 stands at $7.5 billion. As a reminder, our backlog excludes reimbursable revenue, as well as revenue from ancillary services.

Our current backlog includes approximately $2.3 billion that is scheduled for revenue conversion during the remainder of 2026, as well as a slightly greater amount that's already booked for 2027. This is the first incident in many years in which our year two backlogs has exceeded promptier backlogs at this point in the calendar, which highlights the embedded utilization and earnings ramp that we anticipate the 2027.

I'll circle back to this point in just a moment. Referring to page nine of the earnings presentation, we are providing full year 2026 guidance for total revenue between $2.8 and $3 billion, which includes approximately $150 million in reimbursable and other revenue, and adjusted EBITDA between $914 million to $1.02 billion. The low end of our adjusted EBITDA range is fully covered by our existing firm backlog plus a measure of relatively high confidence options.

We currently expect Q1 adjusted EBITDA to be roughly flat versus last quarter. We also anticipate a slightly higher weighting of adjusted EBITDA in the second half of the year compared to the first half, although not dramatic.

Total capital expenditures in 2026 are expected to be between $590 and $640 million. This range includes approximately half of the $160 million great white project capex with the remaining half included in the 2027 capex. Approximately $25 million of customer reimbursable capex and approximately $50 million of additional project related capex associated with the $1.3 billion of contract awards we announced in late January.

While our capex for this year is amplified by previously announced upgrade projects, including the Noble Voyager and the Noble Ventra, as well as capital associated with more recent contracts, including the Great White, Endeavour and Jerry DeSouza. These expenditures represent the life of asset upgrades that support a fundamental enhancement to the NAV of athletes and all with very robust project IRRs.

This capital is an important enabler to a structurally higher level of potential EBITDA and free cash flow for athletes. And as discussed earlier, this is all supported by 2027 backlog currently higher than 2026 backlog.

Looking ahead to 2027 and beyond, we would expect capex, net of customer reimbursement to pay for meaningfully towards a range in the high 300 to 400 million, excluding the remaining Great White project capital, which is essentially how we would think about the go forward run rate for the fleet, barring any meaningful additional contract supported project capital.

A few other elements for 2026 to consider are as follows. Firstly, we expect cash taxes to be approximately 11 to 12% of adjusted EBITDA. Secondly, during 2026, we anticipate a maximum potential outlay of up to 85 million associated with the possible buyout of the BOPE EC on the four black shifts. This possible buyout is not included in that capital expenditure guidance.

Next, we expect a favorable working capital reduction of around 100 million this year, partly driven by capex reimbursables. Additionally, when modeling cash balance hits, we recall that the sale of five jackups to board drilling, bought in 210 million in cash proceeds last month, plus the 150 million seller notes. We also expect to close the additional 64 million cash sale of the noble resolve to ocean oil fields in the first quarter.

As it relates to the noble resolve, we received approximately one third of the sale proceeds as a deposit in Q4 2025. Lastly, our guidance reflects inflation rates in the low single digit area on average across various cost components.

With the significant recent advancements with our contract backlog underpinning forward revenue visibility, coupled with the anticipated normalization of net capex to a lower sustaining range after this year. We have increased in tangible visibility, great healthy inflection in both EBITDA and free cash flow next year. By way of illustration, assuming 13 of our 15 tier 1 drill ships working at current market rates, contributions from all three D rigs and the remainder of our fleet is essentially contracted at current status quo.

We can envision an annualized run rate of around 1.3 billion in EBITDA, with corresponding free cash flow of approximately 600 million in the second half of 2027. With that, I'll pass the call back to Robert, the closing remarks.

Thanks Richard. To sum up, I'm incredibly excited about this moment for noble. All of the strategy and effort that our organization has invested over the past five years is truly paying off as evidenced by our backlog build and widespread relationships with the world's most active deep water producers.

On backlog, our outperformance is a direct result of our strategy and has differentiated noble over the past year, fundamentally recasting our contract coverage profile and substantially underwriting the material earnings and free cash flow inflection that Richard just mentioned.

In connection with several of our major contract awards, we are making significant strategic investments to support our first choice offshore strategy. With these investments, our fleet of 15 high spectral ships will all have owned and integrated MPD or CML systems. Two-thirds will be equipped with NOV's leading edge automation technology, including advanced robotics on several rigs. And two will feature 2.8 million pound derricks.

Additionally, the Great White's modifications will place it as a tier one of ultra-horse CJ70 jackups. With all of this, we strongly believe that NOV will have the most advanced automated fleet in deep water and in CS.

As Richard mentioned, the significant increase in our backlog with over 90% of our 24 floaters now contracted combined with the unique characteristic of having greater year two backlog in the books than current year backlog serves to provide a direct line of sight to run rating approximately $1.3 billion of annualized EBITDA by the second half of 2027, even without any improvement in day rates.

And with 10 of our 15 drill ships already secured by long-term programs, this implies only a small handful of highly marketable rigs to be contracted in order to de-risk that trajectory towards the highest free cash flow level this company has seen in over a decade. And I would further add that nothing about our near-term rollovers gives rise to significant concern as the demand pipeline appears quite robust with resource folders continuing to look offshore for future oil and gas developments of scale with advantaged economics.

This is evidenced by a 33% increase versus last year and open tenders and pre-tenders for floaters, which is now back to around 100 years of open demand in the public domain, i. e. not counting direct award opportunities.

Several high-profile and long-anticipated FIDs in places like Namibia, Suriname and Mozambique, for example, stand out as key contributors to this next leg of the offshore cycle. But as we have discussed earlier, there is considerable global breadth to the story. Previously, on our second quarter earnings call last summer, we communicated a milestone objective of $400 to $500 million of run rate free cash flow by the second half of 2026.

Since that time, we have taken strategic investment decisions that have pushed the time horizon of this inflection back to 2027. However, we can now visualize around $600 million of run rate free cash flow by the second half of next year a current market rate, with significant leverage to day rate upside beyond this. And based on the emerging utilization improvement across the global fleet, as well as the encouraging leading indicators on forward demand, we would expect to see an upward bias today rates from here.

As we've seen before, rates can move from the low 400s to the high 400s in the blink of an eye.

So it will be interesting to see where this next part of the cycle takes us. But in the meantime, we will remain laser-focused on the execution and continuing to deliver value for our customers and shareholders.

With that, I'll turn it back over to the operator for questions.

Yeah, I mean, look, consolidation has been the path for this industry post-COVID. Obviously, we participated in that. And then this week, there's been a really significant announcement.

I think with the outlook for our industry, I think consolidation is the obvious path throughout the energy complex, throughout the entire chain. It's obviously been no different for the drillers. And I'd say we certainly have benefited from it through the past years. We're a better company today than when we started this journey. And I'm hopeful that broadly consolidation makes the entire industry better and more capable and more efficient. So that's the path forward for the drillers.

Got it. I have my follow-up, Robert. Obviously, you've been a participant, as you mentioned, in industry consolidation, including the Diamond Offshore Transaction MERSC. You obviously have a very capable offshore rig fleet, you know, compete at the very high end, high-spec to end of the market. Do you feel you have sufficient scale now? If the other deal does get through regulatory approval and thoughts, do you see a window of opportunity, perhaps, to maybe further expand your opportunity set, perhaps, in the floater market?

Obviously, you've been divesting some of your shallow water jackups. Yeah, look, I think the answer strangely enough is the same today as it would have been before Monday's announcement, that we feel we have scaled.

We, as I repeat myself, but we're a better company today than we were before. Because of the scale we've built.

And there are going to be opportunities out there. We will continue to look at everything, and we will continue to be as picky as we ever have been on ensuring that any opportunity we look at sits in kind of the right place for us as a company in terms of the type of asset and the quality of asset.

Great. Thanks a lot. Thank you.

Yeah, it's a good question. And, you know, not necessarily something we would predict it a couple of years ago for sure. What I would say, I think, so our D class semis are most of our six gen rigs.

And those are the most capable, not in Norway semis out there. They have both more capability and DP. And they're set up particularly well for certain types of operations. And so what I would say is for that, that class of three rigs, it is a project specific right place, right time kind of phenomenon. I think it's sustainable. I don't mean to suggest that this is a window in time. But I think the fact that they've kind of contracted prior to the seven genes is a phenomenon being at the right place and the right time for the right project. It's not a value decision by our customers, as you mentioned, which is a good thought, but I do not believe that's what's driving it at all.

Got it. And we've kind of long thought that the six years we would need to see better utilization just to get another round of upward momentum and rates across the collective seventh and market place. It seems like the direction of travel there is positive. And you mentioned a line of sight, especially getting back to hundred sides. What does it take to get some upward momentum and rates?

Do you think you have to kind of eclipse that level? It's good prices. Do you say subdued or just kind of getting back there? Do you think you'd inject enough tightness back into the market? Or do we need to see crude prices improve to kind of see some additional spending capacity by Tesla? Just some thoughts on the condition that could drive some day rate improvement here.

Yeah, it's really a question. I wish I had the answer. I think it's a mixture of both. I think this phenomena where we're seeing higher backlog kind of in year two than year one right now I think is somewhat crude agnostic and I think is perhaps driven more by the realization that volume of barrels is going to have to be produced from deep water.

And those are all obviously long cycle, et cetera. And so I think that is more driven by this return to deep water that we've seen play out over the last couple of years. However, the incremental rigs that probably define the tightness and supply and demand are crude price does matter for near term projects. And that's why we kind of outlined in our script the problem, not the answer. I personally am quite optimistic for 2027 for the reasons I mentioned in the prepared remarks.

But we need another say five rigs, rig contracts that we don't see anywhere out there today to come through to really get to an extremely tight market call it. I'm pretty confident that everything is set up to supply that. I don't think there's any reason that that couldn't happen by 2027. Let me put it that way. But we're a little cautious to say we kind of have to see how 26 plays out here right now. I will say I think there are a lot of contracts that are going to get announced here, not just across the board over the next few months.

And I think that obviously that should all be well received. We're including all of that in our analysis. And we're pretty hopeful that here going into 2027 we've got the various pieces for a tightening market.

Appreciate the color. Thank you.

Yes. I think that I think the possibility is there. I think I would stop a little bit short of making that the base case today.

But maybe it's a maybe it's a 50 50 I don't know. It's so hard. It's so hard to predict. But look, I think all of the pieces are laid out and we need just a little bit more contribution worldwide to really tighten up, tighten up the market going into mid mid next year. I would say a couple things about us specifically.

One, the things Richard laid out in his script are all completely out with day rate improvement. So we feel with our unique backlog curve where we've done a lot of the 2027 work already, we feel that we're extremely well positioned for an inflection here. Without day rate improvement.

And then two, I would say also, I really like the way the fleet is stacked, the fleet contracting is staggered right now. So we've got a nice mix of short term availability, long term contracting, and then of course our CDA, we price this up and down. And so I think I'm pretty pleased right now with with the way the noble fleet sits, looking forward in everything.

Got it. Thanks for that color.

Yeah, it's a good question. So we're tracking closely a lot of everyone else. You know, we're hopeful that the next couple of months bring a fair amount of news. If you if you look at it through Petra. They have an incredibly complicated set of dynamics with with their, you know, they've got more people are rips than anyone else out there. They are managing the tenders you mentioned as well as the blended extends all of the exact same time. And that's that's that's a that's a heavy lift. And so you could easily see how that could get pushed out a little bit past the next couple of months.

You know, I would add color kind of referring back to our remarks that we do think, you know, maybe Petra brass rig numbers probably come down a couple of rigs.

But we think non Petra brass players in Brazil are going to basically make up that supply change in 2027.

And then from there, you know, plans change. And so we're we're, you know, generally positive, optimistic about Brazil being kind of worse flat, which is, you know, a really good place right now. And hopefully up by a couple of rigs over the next couple of years.

Got it. Great. Thanks for that color. I'll turn it back.

Yeah, it's a good question. I don't want to imply more than too much optimism. Look, we've got, we've got contracts for the CJ 70s. A number of those are in the UK sector, which is, which is, is great. I'm not sure that we see a renaissance in shallow water Norway right now, so I don't want to overstate that or have that misunderstood. But we do have contracts for everything. We do have multiple customers that are looking at and considering potential jobs in Norway.

So the markets expanded well past, you know, just just Ecuador and also include Ecuador in multiple customers. But, you know, I think with the rigs kind of in a steady state utilization right now in some ongoing conversations, it just feels like it's more likely to get better than worse for sure. Okay, maybe Norway specific stays more flat than up, but it definitely feels flat flat or up right now. And, you know, we think we have the most capable rigs in the world ready to go.

If we do get an incremental unit or two of demand in Norway. Right, and that's very helpful.

Yeah, so on the globe trotter. We've said before that we're effectively bidding those into intervention or niche drilling applications. So obviously the black sea qualifies for that since those rigs can go go into the bridge pretty quickly and efficiently. You know, I think the intervention market remains out there. And we're, you know, I'd say we're kind of chasing a mixture of intervention and potentially some niche programs for the globe trotter.

Apex is, you know, probably, we'll see what happens with that rig. So there's, I guess, less on the horizon for that rig. We're going to keep people looking hard at that one.

All right. Thanks so much for your answers. Have a good night. Thank you.

Yes, it's a good question. That's we're spending our self and our margin group spending a lot of time on that rig. We have multiple opportunities.

So I would say, you know, for 2026, we're hopeful that there's some spot work out there, but there's probably not a huge amount of upside on the rig. Hopefully some. Well, I think the more exciting programs for that rig really are in 2027. Those exist both in the US and outside of the US. And we've got a couple of different opportunities with some of our closest customers globally.

And we're hopeful that we can land something there. That rig is an excellent rig. It's outfitted very well for big developing campaigns. And obviously can perform with the best of them for shorter term and expiration jobs as well. So we're hopeful to land something here for too.

Awesome. Thanks for the color.

Not a day that I don't wake up concerned about things getting pushed to the right. So it's obviously always a risk in our business. When you've got Brent in the 60s, it's always going to be a risk in the business. Partly why I, you know, not exactly calling for predicting with certainty what happens in 2027. But I will say with all of the backlog that's been announced by Noble and our competitors.

And I think a back, an amount of backlog that will be announced here in the coming months. The number of pieces that need to fall in place for a tight 2027 are substantially lower than what we've seen in quite some time. We threw out the statistic about the kind of open demand that's out there. There's obviously direct negotiations that are in excess of those numbers.

And we look at where we sit today in the year in the rollovers. It's kind of, there's no, there's no story, negative story about 2026 rollovers. It looks like upstream capex is either flat or up. And if you, you know, you try to decode what that means for deep water and commentary around it, it feels like that's a reasonable story for 2026.

And for us, you add all of those together and it gives us a fair amount of optimism for a pretty tight market in 2027.

Awesome. Thank you guys for taking my questions. Thank you.

Yeah. So, so I think you're talking about the team for middle 50 million of contract capital. That we announced in conjunction with the 1.3 billion of backlog here to two weeks or so ago. I think think about that. Capitalist kind of split between the endeavor and the decision.

Perfect. Awesome.

Yeah, look, it's a good question. No, we're committed to the CJ 70s when we announced the merger with MERSC. We chose to put our secondary headquarters as debanger. We have an established extremely capable operation there. And with the addition of those in Great White, some added scale. So we're pretty happy with with where we sit there right now.

Perfect. Really appreciate the color. Thanks for taking my questions. Thank you.

Thank you for joining us today, everyone. We appreciate your interest and we will look forward to speaking with you again next quarter. Have a great day.

Thank you for your participation. This does include today's conference. You may now disconnect.