Noble 8K Reports First Quarter 2006 Results | SEC 20 Apr 06

Exhibit 99.1

NOBLE REPORTS FIRST QUARTER 2006 RESULTS

SUGAR LAND, Texas, April 20, 2006 — Noble Corporation reported net income for the first quarter of 2006 of $145.2 million, or $1.05 per diluted share, on operating revenues of $461.9 million, compared to net income of $45.5 million, or $0.33 per diluted share, on operating revenues of $310.3 million for the first quarter of 2005.

At March 31, 2006, the Company’s consolidated balance sheet reflected $2.9 billion in shareholders’ equity, $799.1 million in cash and marketable securities, and $1.1 billion in total debt. Net cash provided by operating activities for the three month period ended March 31, 2006 was $148.7 million as compared to $71.5 million in the prior year. Debt as a percentage of total capitalization, which was 28 percent at March 31, 2006, was reduced to 16 percent on April 10, 2006 following prepayment of $600.0 million of current maturities of long-term debt.

James C. Day, Chairman of the Board and Chief Executive Officer said, “As of April 9, 2006 our final unit, theNoble Joe Alfordsubmersible, has now returned to service after being damaged during Hurricane Rita in the Gulf of Mexico. Our proactive mooring enhancement initiative for our ultra deepwater semisubmersibles is progressing with theNoble Jim Thompsonscheduled for the NC-5^TMupgrade in July 2006. This new mooring system is designed to withstand environmental forces experienced in the hurricanes of 2005.”

Net income for the first quarter of 2006 increased 43 percent from the fourth quarter of 2005 as average dayrates on the Company’s U.S. Gulf of Mexico deepwater units continued to increase and utilization in our international divisions reached 100 percent during the first quarter.

Net income for the first quarter in 2006 increased 219 percent as compared to the first quarter of 2005 due principally to higher dayrates, increased international utilization rates across the fleet and

additional operating days. TheNoble David Tinsleyand theNoble Mark Burns were activated in February and August of 2005, respectively, and we also acquired the remaining 50 percent interest in theNoble Harvey Duhaneyin August 2005.

Offshore contract drilling services revenues from deepwater drilling units (capable of drilling in water depths of 4,000 feet or greater) accounted for approximately 37 percent and 31 percent of the Company’s total contract drilling services revenues for the first quarter of 2006 and 2005, respectively. The Company currently operates six deepwater semisubmersibles in the Gulf of Mexico, one deepwater semisubmersible and three deepwater drillships offshore Brazil, and one deepwater semisubmersible in Nigeria. Contract drilling services revenues from international sources accounted for approximately 68 percent and 78 percent of the Company’s total contract drilling services revenues for the first quarter of 2006 and 2005, respectively.

The average dayrate for the Company’s international jackups was $64,887 in the first quarter of 2006 compared to $51,158 in the first quarter of 2005. Utilization on these units improved to 100 percent in the recent quarter as compared to 94 percent in the first quarter of 2005. The average dayrate on the Company’s deepwater units in the U.S. Gulf of Mexico capable of drilling in water depths of 6,000 feet or greater increased 131 percent to $241,562 in the first quarter of 2006 compared to $104,426 in the first quarter of 2005. The U.S. Gulf of Mexico deepwater market has continued to strengthen, and the dayrates under recent contracts for these units have been higher than the average dayrate for the first and fourth quarters of 2005. Utilization on these units was 100 percent during the first quarter of 2006 compared to 75 percent in the same quarter of last year.

Day said, “We continue to experience strong demand for drilling assets worldwide.”

Noble Corporation is a leading provider of diversified services for the oil and gas industry. Contract drilling services are performed with the Company’s fleet of 62 mobile offshore drilling units located in key markets worldwide. This fleet consists of 13 semisubmersibles, three dynamically

positioned drillships, 43 jackups and three submersibles. The fleet count includes two F&G JU-2000E enhanced premium newbuild jackups under construction, with scheduled delivery of the first unit in the third quarter of 2007 and the second unit in first quarter of 2008. As previously announced, these units have been contracted. Approximately 80 percent of the fleet is currently deployed in international markets, principally including the Middle East, Mexico, the North Sea, Brazil, West Africa and India. The Company provides technologically advanced drilling-related products and services designed to create value for our customers. The Company also provides labor contract drilling services, well site and project management services, and engineering services. The Company’s ordinary shares are traded on the New York Stock Exchange under the symbol “NE”.

This news release may contain “forward-looking statements” about the business, financial performance and prospects of the Company. Statements about the Company’s or management’s plans, intentions, expectations, beliefs, estimates, predictions, or similar expressions for the future are forward- looking statements. No assurance can be given that the outcomes of these forward-looking statements will be realized, and actual results could differ materially from those expressed as a result of various factors. A discussion of these factors, including risks and uncertainties, is set forth from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. Additional information on Noble Corporation is available via the worldwide web at http://www.noblecorp.com.

NC-372
4/20/06

For additional information, contact:
Mark A. Jackson, President and Chief Operating Officer
Noble Corporation, 281-276-6100

NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)


	Three Months Ended March 31,
	2006			2005
OPERATING REVENUES
Contract drilling services	$	417,632		$	262,404
Reimbursables		23,072			24,502
Labor contract drilling services		17,231			18,141
Engineering, consulting and other		3,980			5,278

		461,915			310,325


OPERATING COSTS AND EXPENSES
Contract drilling services		167,905			144,022
Reimbursables		20,052			22,906
Labor contract drilling services		14,897			15,189
Engineering, consulting and other		3,430			5,888
Depreciation and amortization		59,361			56,377
Selling, general and administrative		10,285			7,818
Hurricane losses and recoveries, net		(4,404	)		—

		271,526			252,200


OPERATING INCOME		190,389			58,125

OTHER INCOME (EXPENSE)
Interest expense, net of amount capitalized		(12,479	)		(5,935	)
Other, net		2,501			3,335


INCOME BEFORE INCOME TAXES		180,411			55,525
INCOME TAX PROVISION		(35,180	)		(9,995	)


NET INCOME	$	145,231		$	45,530


NET INCOME PER SHARE:
Basic	$	1.06		$	0.34
Diluted	$	1.05		$	0.33

WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		136,721			135,209
Diluted		138,624			136,581

NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)


	March 31,			December 31,
	2006			2005
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	60,943		$	121,845
Investment in marketable securities		738,115			44,457
Accounts receivable		331,965			276,688
Insurance receivables		67,094			51,565
Inventories		4,247			3,940
Prepaid expenses		9,734			10,064
Other current assets		23,229			13,896

Total current assets		1,235,327			522,455


PROPERTY AND EQUIPMENT
Drilling equipment and facilities		4,365,116			4,178,097
Other		68,777			66,698

		4,433,893			4,244,795
Accumulated depreciation		(1,291,871	)		(1,245,776	)

		3,142,022			2,999,019


INVESTMENTS IN MARKETABLE SECURITIES		1,618			673,639
OTHER ASSETS		167,350			151,254

	$	4,546,317		$	4,346,367


LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt	$	609,289		$	8,972
Accounts payable		90,490			93,914
Accrued payroll and related costs		72,516			78,558
Taxes payable		69,779			45,245
Interest payable		3,527			9,640
Other current liabilities		39,665			23,006

Total current liabilities		885,266			259,335

LONG-TERM DEBT		524,597			1,129,325
DEFERRED INCOME TAXES		227,586			227,589
OTHER LIABILITIES		6,185			6,290

		1,643,634			1,622,539


MINORITY INTEREST		(7,747	)		(7,906	)

SHAREHOLDERS’ EQUITY
Ordinary shares-par value $0.10 per share		13,722			13,701
Capital in excess of par value		1,021,690			1,024,470
Retained earnings		1,875,760			1,736,015
Restricted stock (unearned compensation)		—			(17,099	)
Accumulated other comprehensive income		(742	)		(25,353	)

		2,910,430			2,731,734

	$	4,546,317		$	4,346,367

NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)


	Three Months Ended March 31,
	2006			2005
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	145,231		$	45,530
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		59,361			56,377
Deferred income tax provision		—			3,302
Loss on sales of marketable securities		50			48
Equity in income of joint venture		—			(1,072	)
Distributions received from joint venture		—			1,109
Stock-based compensation expense		5,394			1,418
Hurricane losses and recoveries, net		(4,404	)
Other		(2,334	)		(615	)
Other changes in current assets and liabilities:
Accounts receivable		(54,227	)		2,078
Other current assets		(16,730	)		(16,002	)
Accounts payable		(3,424	)		(13,576	)
Other current liabilities		19,769			(7,052	)

Net cash provided by operating activities		148,686			71,545


CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions and related capital upgrades		(114,092	)		(22,309	)
Other capital expenditures		(76,704	)		(28,938	)
Major maintenance expenditures		(24,426	)		(12,151	)
Proceeds from sales of property and equipment		—			678
Investment in marketable securities		—			(17,129	)
Proceeds from sales of marketable securities		6,582			61,229

Net cash used for investing activities		(208,640	)		(18,620	)


CASH FLOWS FROM FINANCING ACTIVITIES
Payments on credit facilities		—			(40,000	)
Payments of other long-term debt		(4,408	)		(2,036	)
Proceeds from issuance of ordinary shares		8,946			40,790
Payment of dividends		(5,486	)		(2,710	)

Net cash used for financing activities		(948	)		(3,956	)


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(60,902	)		48,969

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		121,845			58,790


CASH AND CASH EQUIVALENTS, END OF PERIOD	$	60,943		$	107,759

NOBLE CORPORATION AND SUBSIDIARIES
FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT
(In thousands, except utilization amounts, operating days and average dayrates)
(Unaudited)


	Three Months Ended March 31,
	2006														2005
	International			Domestic											International			Domestic
	Contract			Contract			Engineering								Contract			Contract			Engineering
	Drilling			Drilling			& Consulting		Other			Total			Drilling			Drilling			& Consulting		Other		Total
OPERATING REVENUES
Contract drilling services	$	282,156		$	135,476		$	—	$	—		$	417,632		$	205,162		$	57,242		$	—	$	—	$	262,404
Reimbursables		11,981			6,229			20		4,842			23,072			9,334			3,336			7,026		4,806		24,502
Labor contract drilling services		—			—			—		17,231			17,231			—			—			—		18,141		18,141
Engineering, consulting and other		449			163			3,368		—			3,980			405			233			4,081		559		5,278

	$	294,586		$	141,868		$	3,388	$	22,073		$	461,915		$	214,901		$	60,811		$	11,107	$	23,506	$	310,325


OPERATING COSTS AND EXPENSES
Contract drilling services	$	129,928		$	37,977		$	—	$	—		$	167,905		$	114,418		$	29,604		$	—	$	—	$	144,022
Reimbursables		9,257			6,073			10		4,712			20,052			7,912			3,205			7,038		4,751		22,906
Labor contract drilling services		—			—			—		14,897			14,897			—			—			—		15,189		15,189
Engineering, consulting and other		124			(110	)		3,420		(4	)		3,430			152			172			5,035		529		5,888
Depreciation and amortization		46,096			13,143			83		39			59,361			44,343			11,013			98		923		56,377
Selling, general and administrative		5,574			3,306			167		1,238			10,285			5,069			2,175			234		340		7,818
Hurricane losses and recoveries, net		—			(4,404	)		—		—			(4,404	)		—			—			—		—		—

	$	190,979		$	55,985		$	3,680	$	20,882		$	271,526		$	171,894		$	46,169		$	12,405	$	21,732	$	252,200


OPERATING STATISTICS
Jackups:
Average Rig Utilization		100	%		86	%										94	%		100	%
Operating Days		3,510			155											3,086			180
Average Dayrate	$	64,887		$	101,112										$	51,158		$	55,819

Semisubmersibles - (6,000 feet or greater):
Average Rig Utilization		100	%		100	%										100	%		75	%
Operating Days		180			360											180			270
Average Dayrate	$	89,261		$	241,562										$	145,047		$	104,426

Semisubmersibles - (less than 6,000 feet):
Average Rig Utilization		100	%		100	%										86	%		100	%
Operating Days		90			180											77			180
Average Dayrate	$	113,430		$	124,183										$	62,410		$	53,727

Drillships:
Average Rig Utilization		100	%		N/A											67	%		N/A
Operating Days		270			N/A											180			N/A
Average Dayrate	$	104,189			N/A			��							$	90,963			N/A

Submersibles:
Average Rig Utilization		N/A			67	%										N/A			100	%
Operating Days		N/A			180											N/A			270
Average Dayrate		N/A		$	58,506											N/A		$	34,549

Total:
Average Rig Utilization		100	%		88	%										92	%		91	%
Operating Days		4,050			875											3,523			900
Average Dayrate	$	69,668		$	154,830										$	58,235		$	63,602

Noble 8-KNoble Reports First Quarter 2006 Results