JPM OFS and Equipment Weekly Insights & Analytics: Offshore Driller Fundamentals Update

Research evidence excerpt

JPM OFS and Equipment Weekly Insights & Analytics: Offshore Driller Fundamentals Update

& Equipment Outlook

Contract momentum remains robust across both names, with backlog continuing

to build. Over the quarter, NE secured a six-well firm contract offshore Brunei for U.S. Frac Market Mini-Deep Dive Series

the Noble Viking, commencing in early 2028, along with a three-well contract for 2022 Global Energy Capex Survey

the Noble Claus Bachmann with BP offshore UK at a dayrate of ~$320k/d directly Tenaris Mini Deep Dive

ahead of its Aker BP Norway program. RIG has been especially active in harsh- E&P Budget Watch Part XXX

environment Norway, announcing awards for the Transocean Norge with Harbour

U.S. Pressure Pumping Mini Deep-DiveEnergy and the Transocean Equinox with Santos, followed by a landmark

agreement with Equinor worth over $1bn in backlog across seven rig years for JPM 2021 Energy Tech Tour Takeaways

three "Cat D" semis, the Enabler, Encourage, and Endurance, at a $399k/d base 2021 OFS Fall Playbook

rate. Customers are increasingly locking in longer-term capacity, with much of the 2021 E&P Fall Playbook

requested work skewed toward one to two year firm terms with sizable option Private Company Deep Dive Series: Day

packages, and the business still sized for a $60-80/bbl oil environment.

1: Well Productivity

Private Company Deep Dive Series: DayLooking ahead, the read-through for the sector is one of firming fundamentals

2: Shale Rig Count Trendstempered by rig-specific and regulatory overhangs. Management teams at both

companies remain constructive on the multiyear trajectory, with NE viewing the Private Company Deep Dive Series: Day

ONGC tender as potentially a bigger number than the market expects and framing 3: The “Private E&P”