Offshore drilling oil stock Noble traces its roots back to 1921. In 2020, the company went through a financial restructuring, leading to a sale to Chevron the same year. After making its return to the public markets with an IPO in 2021, the new entity has earned a spot on the IBD Breakout Stocks Index as it explores a new buy point.
The oil and gas drilling industry ranks a strong No. 2 among the 197 groups IBD tracks. Noble joins Helmerich & Payne, Patterson-Uti Energy and Valeris among the oil and gas drilling leaders.
As an offshore drilling contractor, Noble, through its subsidiaries, operates a fleet of 19 offshore drilling units, consisting of 11 drillships and eight jackups. Noble largely focuses on ultra-deepwater and high-specification jackup drilling opportunities in both established and emerging regions around the world.
Oil Stock Noble Taps Into IPO Pipeline After Leaving Chevron
With a lineage that dates back over 100 years, Noble's historical timeline stretches back to an oil strike on the family farm in the 1920s. That led Lloyd Noble to partner with Art Olson to buy a drilling rig. With the pair parting ways in 1930, Noble diversified into oil production as well as drilling, with the company coming to be known as Noble Energy.
During the 1970s, Noble Energy had its first public offering under the ticker NOBL. After filing for bankruptcy and restructuring, the company was acquired by Chevron in 2020 for $13 billion (including debt). The deal made Chevron the No. 2 U.S. shale producer behind EOG Resources.
Noble returned to the New York Stock Exchange in 2021, just as oil and gas stocks fueled big gains, as evidenced by performance of the Energy Select Sectors SPDR ETF.
See Who Joins Noble On The IBD Breakout Stocks Index
Noble Primes Potential Breakout
With bumps along the way, Noble has continued to rise since going public.
The oil and gas stock is now trying to energize a breakout past a conventional 36.89 buy point. Noble has also flashed an earlier, more aggressive entry from a trendline on the weekly chart.
While the market has flashed a follow-through day to signal a new uptrend, keep in mind that not all such changes in trend lead to sustained climbs. But Noble, CVX stock, and oil & gas stocks in general continue to show strength.
Both Noble and Chevron are above their 10-week moving averages. And as both energy plays near new buy points, the relative strength lines for both stocks has already hit a new high.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
