NorAm Drilling-Dividends raised again-07/08/2026

Research evidence excerpt

NorAm Drilling-Dividends raised again-07/08/2026

NorAm Drilling

NEWSFLASH | 8 JUL 2026

Dividends raised again

NorAm Drilling reported 97% utilization in June with all 11 rigs contracted. Dividends were increased to USD 4.5 (4) cents

per share, corresponding to an 13.3% run-rate yield while backlog increased materially m/m. Despite the recent decline in

oil prices, E&Ps continue to favour longer-term contracts, indicating sustained momentum onshore US. With dayrates still

at the low end since the 2022 IPO, we continue to see repricing potential as market conditions trend in the right direction.

BUY, TP NOK 60

Material backlog additions

• NorAm reported 97% utilization for June, slightly lower than expected due to minor maintenance on a few rigs. 100% of available rig days

in July are contracted

• Backlog beyond July increased to USD 26.9m (from USD 14.6m last month), indicating multiple longer-term contract extensions

• As reflected in the increased backlog, E&Ps continue to prefer longer-term contracts, supporting sustained demand for high-spec land

rigs, despite oil prices moving in the USD 70-80/bbl range

• From our Permian Basin site visit last month, feedback from US majors highlighted limited availability of warm high-spec rigs, which

support dayrate momentum in upcoming contract renewals. See link to Permian takeaways

Dividends lifted once again

• The monthly dividend was increased to USD 4.5 (4) cents per share, corresponding to a 13.3% run-rate yield

Dividends are up 50% YTD and we continue to see further upside potential in the 2H of the year

• Dayrates remain at the low end since listing in 2022, although slightly up from the trough a few months ago.

• At 2022-23 rates, the company could generate ~25% FCF/divi yield with all 11 rigs working