In its November 14 SEC filing, Dallas-based Canyon Capital Advisors disclosed a subtle retreat from its position in Noble (NE +2.38%). The reduction-roughly $2 million in net value-may seem small, yet in the world of concentrated portfolios, such movements rarely happen by accident.
What Happened
Canyon trimmed 158,607 Noble shares during the most recent quarter, leaving the fund with about 1.3 million shares valued at $36.9 million as of September 30. Its total reportable U.S. equity holdings amounted to $729.4 million across 14 positions. These figures, sparse yet telling, suggest a deliberate decision rather than an impulsive shuffle.
What Else to Know
Its top five holdings after the filing were:
- NYSE:CBL: $258.9 million (35.5% of AUM)
- NYSE:AMCR: $130.8 million (17.9% of AUM)
- NYSE:SDRL: $127.7 million (17.5% of AUM)
- NYSE:FFWM: $45.4 million (6.2% of AUM)
- NYSE:AMBP: $44.8 million (6.1% of AUM)
Noble’s stock closed Monday at $31.35-a 6% slide over the past year and a stark contrast to the S&P 500’s 13% climb. The market, as ever, has a way of reminding companies that past strength is not a guarantee of present comfort.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $3.4 billion |
| Net Income (TTM) | $226.7 million |
| Dividend Yield | 6.5% |
| Price (as of market close Monday) | $31.35 |
Company Snapshot
Noble is an offshore driller with a fleet designed to withstand the ocean’s indifference. It operates mobile offshore units-both floaters and jackups-to support exploration and production work for a wide range of clients. Most of its revenue is secured through long-term contracts with energy producers, whether multinational, independent, or state-owned. In that sense, the company still stands on firm commercial ground, even if the market’s judgment appears harsher.
Foolish Take
For long-term investors, Noble’s decline from its 2023 highs forces an uncomfortable but necessary question: Has the market revised its expectations, or merely revealed them? Canyon Capital’s recent adjustment offers a clue. The firm is known for conviction-driven allocations, yet it eased its grip on Noble after a quarter marked by improving backlog and steady free cash flow. That choice, though modest, suggests a preference for caution in a sector that rarely rewards complacency.
The sale leaves Canyon holding close to 1.3 million shares. With CBL, Amcor, and Seadrill consuming more than 70% of its reported assets, the context is clear: Noble is important, but not sacred. A slight reduction in such a portfolio is less a condemnation than a recalibration of risk in the deepwater space.
Operationally, Noble posted a third-quarter net loss of $21 million. Yet beneath that headline sits a more stable picture: $139 million in free cash flow and $740 million in new contract awards since August, lifting its backlog to $7 billion. Management reaffirmed full-year revenue and EBITDA guidance and sustained its dividend at $0.50 per share. One could say the company is doing its part, even if the share price refuses to acknowledge it.
The unresolved issue-and it is the one investors must confront-is whether Noble’s growing backlog and disciplined returns can overcome the short-term pessimism. With shares still more than 40% below 2023 levels, the burden of proof lies not with the market, but with the company.
Glossary
13F reportable assets under management (AUM): The value of U.S. equities a fund must report quarterly to the SEC.
Position: The quantity of a specific investment held by a fund or investor.
Sell transaction: A reduction in ownership through the sale of securities.
Dividend yield: Annual dividends divided by share price.
Jackups: Mobile offshore rigs with extendable legs for shallow-water drilling.
Floaters: Deepwater drilling rigs that operate while floating above the seabed.
Integrated oil and gas producers: Firms engaged in extraction, refining, and distribution.
Independent exploration and production companies: Firms focused on discovering and extracting hydrocarbons.
National oil companies: State-owned resource operators.
Offshore contract drilling services: Providing offshore drilling equipment and crews for hire.
Assets under management (AUM): Total market value of investments overseen by a firm.
TTM: The past 12 months of reported financial results.
Even in markets, truth tends to surface-though often later than one would like. 📉
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2025-12-02 05:28