Noble Corporation (NYSE:NE) Gulf Permitting Delays Weigh on Company

The ongoing games played by the Obama administration in delaying permits to be awarded to drill in the Gulf, is increasingly weighing on companies like Noble Corporation (NYSE:NE), which has a strong exposure to the Gulf of Mexico.

Barclays says, "Permitting delays in the Gulf of Mexico persist. As a result, we are increasing assumed downtime for several Noble floaters. In addition, five of Noble's jackups recently left Mexico and will be stacked. However, Noble remains disciplined in stacking units and has been one of the more aggressive of the established contract drillers in the current rig construction cycle, both of which we believe are positive. One of the company's two recently announced drillship orders has an underlying contract supporting good economics. While 2011 may prove to be a difficult year for Noble, we believe the shares represent a decent value.

"We are reducing our 2011 EPS est. to $2.30 (from $3.55) and 2012 EPS est. to $4.30 (from $4.65), reflecting additional assumed downtime for the company's floaters and the cold-stacking of various older units. There may be additional downside to ests. given uncertainty in the GOM."

Barclays reiterates an "Overweight" rating on Noble Corporation (NE), which closed Monday at $37.63, dropping $0.01, or 0.03 percent. Barclays lowered their price target on Noble from $44 to $42.