Borr Drilling: A Rigorous Look Beneath the Waves

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Borr Drilling: A Rigorous Look Beneath the Waves

The esteemed GeoSphere Capital Management, LLC – a collective known for spotting a bargain when it’s covered in barnacles and smelling faintly of brine – has taken a position in Borr Drilling (BORR 0.50%). A modest 1,385,000 shares, to be precise. Which, in the grand scheme of things, isn’t enough to move the ocean, but it’s a respectable dip of the toe. The sum involved – around $5.58 million, based on the quarterly averages – suggests they believe Borr isn’t just floating, but might actually be capable of steering itself.

Now, Borr Drilling, for the uninitiated, is in the business of sticking pointy things into the seabed.1 Specifically, jack-up rigs – those sturdy platforms that raise themselves on legs to avoid getting their keels scraped. They’re the workhorses of shallow-water oil and gas extraction. A decidedly unglamorous profession, but one that, rather surprisingly, is currently enjoying a renaissance. Years of… shall we say, fiscal prudence (read: underinvestment) have left a gap in the market, and Borr is positioning itself to fill it.

This new stake represents 1.8371% of GeoSphere’s reportable assets under management. A small percentage, perhaps, but enough to raise an eyebrow or two in the ship chandler’s shops of the investment world. For context, their top holdings as of late remain:

  • NASDAQ: NESR: $22,160,842 (15.3% of AUM)
  • NYSE: BKV: $15,064,368 (10.4% of AUM)
  • NYSE: CNR: $7,523,350 (5.2% of AUM)
  • NYSE: CCJ: $6,720,855 (4.6% of AUM)
  • NYSE: SEI: $5,951,828 (4.1% of AUM)

As of February 20th, 2026, Borr’s shares were bobbing along at $5.95 – a 95% leap over the past year. A healthy gain, certainly, but the sea is full of mirages. The question is, is this a genuine swell, or just a particularly large bubble?

Company Overview

Metric Value
Revenue (TTM) $1.02 billion
Net Income (TTM) $75.30 million
Dividend Yield 4.03%
Price (as of market close 2/20/26) $5.95

The Business of Pointy Things

Borr Drilling, as previously mentioned, provides offshore drilling services. They own and operate those aforementioned jack-up rigs. They lease these rigs to the oil and gas companies – the folks who actually want the stuff that’s under the seabed. It’s a simple business, really. Rent out a large, expensive machine, and hope it doesn’t fall into the ocean.2 They serve the integrated oil giants, national oil companies, and those smaller, more adventurous independent explorers.

What Does This Mean For Investors?

The offshore jack-up drilling sector is, to put it mildly, cyclical. It goes up, it goes down, and occasionally it gets stuck in the mud. After years of… shall we say, restraint (read: everyone being a bit stingy), offshore activity is finally picking up. Borr’s stock has reflected this, but past performance, as the oracles of finance are so fond of saying, is no guarantee of future results. It’s a bit like predicting the weather – you can make a reasonably accurate guess, but a rogue wave could always ruin your picnic.

Borr generates revenue by renting out its rigs. When more rigs are working, and the rental rates (or “day rates,” as they’re known in the trade) go up, profits increase. It’s a straightforward equation. But the equation gets more complicated when you factor in things like maintenance costs, crew wages, and the ever-present risk of a hurricane.

The key question for investors isn’t just whether the current recovery will continue, but whether it will be sustained. Can Borr maintain those higher day rates? Can they keep their rigs working at full capacity? And can they manage their debt without getting swamped? The stock’s future now depends more on the longevity of offshore capital spending than on the whims of oil prices. It’s a subtle, but important, distinction. The sea, after all, is a fickle mistress.

The long-term success of Borr, like any venture involving large metal structures and vast bodies of water, is never guaranteed. But GeoSphere’s investment suggests they see potential beneath the waves. And in the world of value investing, a little bit of potential can go a long way.

1

The art of sticking pointy things into the seabed is surprisingly complex, involving a delicate balance of physics, engineering, and a healthy dose of optimism.

2

Falling into the ocean is, naturally, to be avoided. It’s bad for morale, bad for the environment, and extremely inconvenient for the insurance adjusters.

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2026-02-21 06:22