v3.26.1
Revenue and Customers
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue and Customers
Note 6 — 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,
2026
2025
2026
2025
Floaters
$
550,926 
$
684,320 
1,171,482 
1,377,771 
Jackups
128,518 
127,757 
250,515 
266,734 
Total
$
679,444 
$
812,077 
$
1,421,997 
$
1,644,505 
Contract Balances
Accounts receivables 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 amortized 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, 2026
December 31, 2025
Current customer contract assets
$
9,380 
$
29,525 
Noncurrent customer contract assets
158 
1,112 
Total customer contract assets
9,538 
30,637 
Current deferred revenue
(53,827)
(64,400)
Noncurrent deferred revenue
(38,889)
(32,718)
Total deferred revenue
$
(92,716)
$
(97,118)
Significant changes in the remaining performance obligation contract assets and contract liabilities balances for the six months ended June 30, 2026 and 2025, are as follows:
Contract Assets
Contract Liabilities
Net balance at December 31, 2025
$
30,637 
$
(97,118)
Additions to deferred costs
7,197 
— 
Additions to deferred revenue
— 
(33,951)
Amortization of deferred costs
(28,296)
— 
Amortization of deferred revenue
— 
38,353 
Total
(21,099)
4,402 
Net balance at June 30, 2026
$
9,538 
$
(92,716)
Net balance at December 31, 2024
$
37,091 
$
(101,945)
Additions to deferred costs
25,409 
— 
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)
Off-market Customer Contract Assets and Liabilities
Off-market customer contract assets and liabilities were recognized in connection with the agreement and plan of merger, dated June 9, 2024, with Diamond Offshore Drilling, Inc. (“Diamond”), Dolphin Merger Sub 1, Inc., and Dolphin Merger Sub 2, Inc., under which Noble acquired Diamond in a stock plus cash transaction (the “Diamond Transaction”), and are included in “Other assets” and “Noncurrent contract liabilities,” respectively.
In connection with the Diamond Transaction, the Company recognized a fair value adjustment of $27.7 million 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 September 4, 2024, through the remainder of the contracts.
Unfavorable contracts
Favorable contracts
Balance at December 31, 2024
$
(8,580)
$
214 
Amortization
8,580 
(214)
Balance at June 30, 2025
$
— 
$
—