The Bull Case For NESR Could Change Following $200 Million Jordan Drilling Contract Win

• Kuwait Drilling Company announced that it, alongside National Energy Services Reunited (NESR), secured a four-year, US$200 million contract to deliver integrated drilling and well services for an 80-well campaign in Jordan.
• This award extends NESR's operational footprint in the Middle East and highlights its capability to deliver large-scale, integrated oilfield service solutions in collaboration with regional partners.
• We'll examine how the new multi-year contract win could influence NESR's investment narrative and future earnings visibility.

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National Energy Services Reunited Investment Narrative Recap

Investors who back National Energy Services Reunited typically believe in the long-term growth of energy demand in MENA and NESR's ability to capture multi-year contract wins across emerging markets. The latest US$200 million Jordan contract confirms NESR's strength in regional partnerships but does not fundamentally change that the short-term catalyst remains the outcome of key tenders, especially the Jafurah project, while concentrated customer risk with NOCs is still the main business vulnerability.

Among recent announcements, NESR’s successful inclusion in major indices such as the S&P Global BMI and several Russell benchmarks stands out. This recognition signals growing institutional visibility, which could support liquidity and share price performance, particularly relevant as the company seeks to build momentum from new contract wins.

However, it is important to remember that while contract additions provide opportunity, the concentrated exposure to NOC customers means any contract renegotiation or regional instability could quickly...

Read the full narrative on National Energy Services Reunited (it's free!)

National Energy Services Reunited's outlook points to $1.5 billion in revenue and $168.6 million in earnings by 2028. This is based on a projected 4.0% annual revenue growth rate and an increase in earnings of $95.6 million from the current $73.0 million.

Uncover how National Energy Services Reunited's forecasts yield a $15.00 fair value, a 46% upside to its current price.

Exploring Other Perspectives

Six individual fair value estimates from the Simply Wall St Community for NESR’s stock range from US$3.87 to US$37.47 per share. With recent major contracts but continued reliance on large national oil companies, your view on customer risk may shape how you interpret these varied outlooks.

Explore 6 other fair value estimates on National Energy Services Reunited - why the stock might be worth over 3x more than the current price!

Build Your Own National Energy Services Reunited Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your National Energy Services Reunited research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free National Energy Services Reunited research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate National Energy Services Reunited's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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