v3.25.2
Revenue and Customers
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue and Customers
Note 7 — Revenue and Customers
Disaggregation of Revenue
The following table provides information about contract drilling services revenue by rig types:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Floaters$684,320 $517,755 1,377,771 1,012,222 
Jackups127,757 142,955 266,734 260,913 
Total$812,077 $660,710 $1,644,505 $1,273,135 
Contract Balances
Accounts receivable are recognized when the right to the consideration becomes unconditional based upon contractual billing schedules. Payment terms on invoiced amounts are typically 30 to 60 days. Customer contract assets and liabilities generally consist of contract costs and deferred revenue resulting from past transactions related to the provision of services under contracts with customers. Current contract asset and liability balances are included in “Prepaid expenses and other current assets” and “Other current liabilities,” respectively, and noncurrent contract assets and liabilities are included in “Other assets” and “Other liabilities,” respectively, on our Condensed Consolidated Balance Sheets.
Certain direct and incremental costs incurred for upfront preparation, initial rig mobilization, and modifications are costs of fulfilling a contract and are recoverable. These recoverable costs are deferred and amortized ratably to contract drilling expense as services are rendered over the initial term of the related drilling contract. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process.
Certain of our contracts also include capital rig enhancements used to satisfy our performance obligations. Payments for these modifications are initially recognized as a contract liability and ratably as contract drilling revenue over the initial term of the related drilling contract. The costs are capitalized in accordance with our existing property and equipment accounting policy and depreciated over the estimated useful life of the improvement.
The following table provides information about contract assets and contract liabilities from contracts with customers:
June 30, 2025December 31, 2024
Current customer contract assets$25,366 $26,049 
Noncurrent customer contract assets7,344 11,042 
Total customer contract assets32,710 37,091 
Current deferred revenue(53,122)(61,506)
Noncurrent deferred revenue(40,511)(40,439)
Total deferred revenue$(93,633)$(101,945)
Significant changes in the remaining performance obligation contract assets and the contract liabilities balances for the six months ended June 30, 2025 and 2024, are as follows:
Contract AssetsContract Liabilities
Net balance at December 31, 2024
$37,091 $(101,945)
Additions to deferred costs25,409 — 
Additions to deferred revenue— (92,321)
Amortization of deferred costs(29,790)— 
Amortization of deferred revenue— 100,633 
Total(4,381)8,312 
Net balance at June 30, 2025
$32,710 $(93,633)
Net balance at December 31, 2023
$4,416 $(43,072)
Additions to deferred costs37,691 — 
Additions to deferred revenue— (52,484)
Amortization of deferred costs(7,029)— 
Amortization of deferred revenue— 23,710 
Total30,662 (28,774)
Net balance at June 30, 2024
$35,078 $(71,846)
Off-market Customer Contract Assets and Liabilities
Off-market customer contract assets and liabilities have been recognized in connection with the merger, pursuant to a Business Combination Agreement, dated November 10, 2021, as amended, by and among Noble, Noble Finco Limited (n/k/a Noble Corporation plc), Noble Newco Sub Limited, the Drilling Company of 1972 A/S, a Danish public limited liability company (“Maersk Drilling”), and the other parties thereto (the “Business Combination with Maersk Drilling”) and the Diamond Transaction, and are included in “Other assets” and “Noncurrent contract liabilities,” respectively.
In connection with the Business Combination with Maersk Drilling, the Company recognized additional fair value adjustments of $23.0 million. As of March 2025, these intangible assets were fully amortized as a reduction of contract drilling services revenue from the closing date of the Business Combination with Maersk Drilling through the remainder of the contracts.
In connection with the Business Combination with Maersk Drilling and the Diamond Transaction, the Company recognized fair value adjustments of $237.7 million and $27.7 million, respectively, related to certain unfavorable customer contracts
acquired. As of June 2025, these liabilities were fully amortized as an increase to contract drilling services revenue from the closing date of the Business Combination with Maersk Drilling and the Diamond Closing Date, respectively, through the remainder of the contracts.
Unfavorable contactsFavorable contracts
Balance at December 31, 2024
$(8,580)$214 
Amortization8,580 (214)
Balance at June 30, 2025
$— $— 
Balance at December 31, 2023
$(50,863)$10,128 
Amortization48,622 (5,772)
Balance at June 30, 2024
$(2,241)$4,356