Noble 8-K Noble Corporation Reports Record Third Quarter Earnings of $1.18 Per Share (Post-Split); Up 55 Percent from Third Quarter 2006

NEWS      NOBLE CORPORATION
13135 South Dairy Ashford, Suite 800
Sugar Land, TX 77478
Phone: 281-276-6100 Fax: 281-491-2092

Noble Corporation Reports Record Third Quarter Earnings of $1.18 Per Share (Post-Split);
Up 55 Percent from Third Quarter 2006

     SUGAR LAND, Texas, October 17 — Noble Corporation (NYSE: NE) today reported third quarter 2007 earnings of $318.3 million, or $1.18 per diluted share, versus $207.2 million, or $0.76 a share, for the third quarter of last year. Per-share earnings were up 55 percent from the third quarter of 2006 and up 9 percent from the $1.08 per share reported for the second quarter of 2007. Per-share amounts have been adjusted for the two-for-one stock split of the Company’s ordinary shares effected in August.

     The results for the 2007 third quarter include after-tax charges of $0.04 per share related to the closure of the Company’s technology business unit, costs associated with the ongoing independent investigation of its Nigerian operations and expenses related to the resignation of the Company’s former chief executive officer.

     Contract drilling services revenues for the 2007 third quarter were $718.8 million, up 43 percent from the year-earlier quarter. Cash operating margins exceeded 68 percent, generating $363.3 million in net cash provided by operating activities. The Company invested $363.3 million in capital projects during the quarter, bringing the year-to-date total to $942.4 million. Debt as a percentage of total capitalization declined to 16.4 percent at September 30, 2007, from approximately 18 percent at the end of the second quarter.

     “Improved margins across the Noble fleet, driven by higher dayrates on several recently contracted rigs, provided momentum for a strong third quarter,” said Chairman, President and Chief Executive Officer William A. Sears.

     Earnings for the first nine months of 2007 totaled $3.19 per diluted share compared with $1.93 per diluted share in the same period last year. Contract drilling services revenues were $1.95 billion and earnings were $858.6 million in the first nine months of 2007, up 42 percent and 61 percent, respectively, from the year-earlier period.

Operations Highlights

     All of the Company’s premium jackups are located in major international markets, with substantially all available days committed for 2007 and approximately 72 percent committed for 2008. In Mexico, new contracts for three jackups operating for PEMEX began during the third quarter at significantly higher dayrates: Both theNoble Sam NobleandNoble John Sandifer (300-foot-water-depth units) moved to dayrates of $171,000 from $64,500 and theNoble Tom Jobe(a 250-foot unit) increased its dayrate to $150,000 from $120,000.In the Middle East, the Company’s newly-constructed jackup, theNoble Roger Lewis, arrived in the Lamprell shipyard located at Sharjah, United Arab Emirates, for final commissioning and provisioning and will begin its two-year contract with Shell at a dayrate of $105,000 in mid-November 2007. Also in the Middle East, theNoble George McLeodreceived a minimum four-month contract at $160,000 per day to serve as an accommodation unit and theNoble Chuck Syringwas awarded a two-year contract at $160,000 per day, commencing in mid-November.

     In the deepwater U.S. Gulf of Mexico, a mooring system upgrade is nearing completion on theNoble Paul Romano, which is expected to return to full service in late October. At that time theRomanowill re-commence its contract with Anadarko/BHP at $435,000 per day, running through year-end 2008.

     Noble Corporation is a leading provider of diversified services for the oil and gas industry. The Company performs contract drilling services with its fleet of 62 mobile offshore drilling units located in key markets worldwide, including the U.S. Gulf of Mexico, Middle East, Mexico, the North Sea, Brazil, West Africa and India. The fleet count includes five rigs under construction. Additional information on Noble Corporation is available via the worldwide web at http://www.noblecorp.com.

     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.

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Conference Call

     Noble will hold its third quarter conference call on Thursday, October 18, 2007, at 1:00 p.m., Central Time. The call may be accessed live via telephone at 800-741-7590 (212-231-6042 for international callers), using pass code 21324170. The call also will be available over the Internet through the “Investor Relations” section of the Company’s Web site, using the “Web cast” link. A replay of the conference call will be available on Thursday, October 18, 2007, beginning at 5:00 p.m., Central Time, through Wednesday, October 24, 2007, ending at 5:00 p.m., Central Time. The phone number for the conference call replay is 800-633-8284 (402-977-9140 for international callers), using the access code 21324170. The conference call may include non-GAAP financial measures. Noble will post a reconciliation of any such measures to the most directly comparable GAAP measures in the “Investor Relations” section of the Company’s Web site under the heading “Regulation G Reconciliations.”

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10/17/07

For additional information, contact:

For Investors: Lee M. Ahlstrom, Vice President — Investor Relations and Planning,
Noble Drilling Services Inc., 281-276-6440

For Media: John S. Breed, Director of Corporate Communications,
Noble Drilling Services Inc., 281-276-6729

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
OPERATING REVENUES
Contract drilling services	$	718,756		$	503,837		$	1,953,175		$	1,379,141
Reimbursables		31,478			24,800			91,229			68,512
Labor contract drilling services		40,622			30,263			116,342			84,128
Engineering, consulting and other		420			3,086			2,953			9,634
		791,276			561,986			2,163,699			1,541,415
OPERATING COSTS AND EXPENSES
Contract drilling services		227,276			179,001			636,167			513,092
Reimbursables		27,675			21,534			79,829			59,130
Labor contract drilling services		32,324			24,553			93,181			69,572
Engineering, consulting and other		6,073			3,262			16,970			13,809
Depreciation and amortization		77,992			65,560			210,780			187,466
Selling, general and administrative		24,617			11,875			59,145			32,815
Hurricane losses and recoveries, net		1,600			—			1,600			(4,404	)
		397,557			305,785			1,097,672			871,480
OPERATING INCOME		393,719			256,201			1,066,027			669,935
OTHER INCOME (EXPENSE)
Interest expense, net of amount capitalized		(9,146	)		(882	)		(11,881	)		(15,134	)
Other, net		6,954			2,037			8,624			6,272
INCOME BEFORE INCOME TAXES		391,527			257,356			1,062,770			661,073
INCOME TAX PROVISION		(73,247	)		(50,184	)		(204,139	)		(128,909	)
NET INCOME	$	318,280		$	207,172		$	858,631		$	532,164
NET INCOME PER SHARE:
Basic	$	1.19		$	0.77		$	3.22		$	1.95
Diluted	$	1.18		$	0.76		$	3.19		$	1.93
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		266,684			271,330			266,575			272,784
Diluted		269,476			273,996			269,270			275,826

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

	September 30,			December 31,
	2007			2006
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	150,579		$	61,710
Accounts receivable		519,604			408,241
Insurance receivables		27,037			54,191
Inventories		4,430			4,461
Prepaid expenses		24,850			20,491
Other current assets		25,543			20,886
Total current assets		752,043			569,980
PROPERTY AND EQUIPMENT
Drilling equipment and facilities		6,072,695			5,215,477
Other		86,875			71,870
		6,159,570			5,287,347
Accumulated depreciation		(1,584,461	)		(1,428,954	)
		4,575,109			3,858,393
OTHER ASSETS		181,761			157,541
	$	5,508,913		$	4,585,914
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt	$	10,148		$	9,629
Accounts payable		197,832			196,111
Accrued payroll and related costs		110,557			93,251
Taxes payable		60,020			52,793
Interest payable		8,285			9,683
Other current liabilities		60,990			64,793
Total current liabilities		447,832			426,260
LONG-TERM DEBT		776,823			684,469
DEFERRED INCOME TAXES		232,718			219,521
OTHER LIABILITIES		56,555			34,019
		1,513,928			1,364,269
COMMITMENTS AND CONTINGENCIES
MINORITY INTEREST		(6,097	)		(7,348	)
SHAREHOLDERS’ EQUITY
Ordinary shares-par value $0.10 per share; 400,000 shares authorized; 268,639 shares issued and outstanding in 2007; 134,592 shares (pre-stock split) issued and outstanding in 2006		26,864			13,459
Capital in excess of par value		727,087			789,354
Retained earnings		3,266,159			2,446,056
Accumulated other comprehensive loss		(19,028	)		(19,876	)
		4,001,082			3,228,993
	$	5,508,913		$	4,585,914

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

	Nine Months Ended September 30,
	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	858,631		$	532,164
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		210,380			187,466
Impairment loss on assets		10,189			4,849
Deferred income tax provision		13,197			9,791
Share-based compensation expense		25,951			15,830
Pension contribution		(37,615	)		(4,300	)
Other		24,027			13,640
Other changes in current assets and liabilities:
Accounts receivable		(111,363	)		(113,541	)
Other current assets		18,535			(21,861	)
Accounts payable		(36,914	)		32,614
Other current liabilities		20,367			38,610
Net cash provided by operating activities		995,385			695,262
CASH FLOWS FROM INVESTING ACTIVITIES
New construction		(541,976	)		(474,208	)
Other capital expenditures		(330,707	)		(266,426	)
Major maintenance expenditures		(69,756	)		(44,515	)
Accrued capital expenditures		55,940			—
Proceeds from sales of property and equipment		4,643			—
Proceeds from Smedvig disposition		—			691,261
Proceeds from sales and maturities of marketable securities		—			15,461
Net cash used for investing activities		(881,856	)		(78,427	)
CASH FLOWS FROM FINANCING ACTIVITIES
Short-term debt borrowing		685,000			—
Short-term debt payment		(685,000	)		—
Borrowings on bank credit facilities		220,000			—
Payments on bank credit facilities		(120,000	)		(135,000	)
Payments of other long-term debt		(7,158	)		(606,667	)
Proceeds from issuance of senior notes, net of debt issuance costs		—			295,851
Net proceeds from employee stock transactions, including tax benefit		24,713			10,932
Dividends paid		(21,528	)		(16,423	)
Repurchases of ordinary shares		(120,687	)		(147,275	)
Net cash used for financing activities		(24,660	)		(598,582	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		88,869			18,253
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		61,710			121,845
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	150,579		$	140,098

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

	Three Months Ended September 30,																							Three Months Ended June 30,
	2007												2006											2007
	International			Domestic									International			Domestic								International			Domestic
	Contract			Contract									Contract			Contract								Contract			Contract
	Drilling			Drilling			Other			Total			Drilling			Drilling			Other		Total			Drilling			Drilling			Other			Total
OPERATING REVENUES
Contract drilling services	$	541,347		$	177,409		$	—		$	718,756		$	363,330		$	140,507		$	—	$	503,837		$	490,962		$	166,542		$	—		$	657,504
Reimbursables		21,179			3,055			7,244			31,478			16,215			2,703			5,882		24,800			16,766			3,090			8,752			28,608
Labor contract drilling services		—			—			40,622			40,622			—			—			30,263		30,263			—			—			39,165			39,165
Engineering, consulting and other		259			142			19			420			1,119			162			1,805		3,086			268			108			346			722
	$	562,785		$	180,606		$	47,885		$	791,276		$	380,664		$	143,372		$	37,950	$	561,986		$	507,996		$	169,740		$	48,263		$	725,999
OPERATING COSTS AND EXPENSES
Contract drilling services	$	177,062		$	50,214		$	—		$	227,276		$	145,442		$	33,559		$	—	$	179,001		$	170,691		$	41,359		$	—		$	212,050
Reimbursables		18,382			2,438			6,855			27,675			13,211			2,537			5,786		21,534			13,946			2,760			7,902			24,608
Labor contract drilling services		—			—			32,324			32,324			—			—			24,553		24,553			—			—			32,454			32,454
Engineering, consulting and other		(44	)		51			6,066			6,073			(145	)		37			3,370		3,262			12			3			7,240			7,255
Depreciation and amortization		54,136			21,491			2,365			77,992			52,486			12,052			1,022		65,560			49,824			16,284			2,215			68,323
Selling, general and administrative		19,144			4,968			505			24,617			7,482			3,556			837		11,875			15,591			4,152			559			20,302
Hurricane losses and recoveries, net		—			1,600			—			1,600			—			—			—		—			—			—			—			—
	$	268,680		$	80,762		$	48,115		$	397,557		$	218,476		$	51,741		$	35,568	$	305,785		$	250,064		$	64,558		$	50,370		$	364,992
OPERATING INCOME	$	294,105		$	99,844		$	(230	)	$	393,719		$	162,188		$	91,631		$	2,382	$	256,201		$	257,932		$	105,182		$	(2,107	)	$	361,007
OPERATING STATISTICS
Jackups:
Average Rig Utilization		95	%		N/A						95	%		97	%		N/A					97	%		98	%		N/A						98	%
Operating Days		3,532			N/A						3,532			3,560			N/A					3,560			3,553			N/A						3,553
Average Dayrate	$	126,342			N/A					$	126,342		$	78,860			N/A				$	78,860		$	112,804			N/A					$	112,804
Semisubmersibles — (6,000 feet or greater):
Average Rig Utilization		100	%		98	%					99	%		100	%		100	%				100	%		100	%		100	%					100	%
Operating Days		184			452						636			184			368					552			182			373						555
Average Dayrate	$	165,565		$	330,490					$	282,807		$	166,951		$	290,976				$	249,634		$	166,795		$	343,754					$	285,758
Semisubmersibles — (less than 6,000 feet):
Average Rig Utilization		100	%		100	%					100	%		83	%		90	%				85	%		81	%		100	%					87	%
Operating Days		184			92						276			153			83					236			148			91						239
Average Dayrate	$	181,073		$	173,063					$	178,403		$	163,221		$	155,307				$	160,438		$	166,705		$	173,462					$	169,283
Drillships:
Average Rig Utilization		87	%		N/A						87	%		100	%		N/A					100	%		100	%		N/A						100	%
Operating Days		241			N/A						241			276			N/A					276			273			N/A						273
Average Dayrate	$	130,019			N/A					$	130,019		$	97,242			N/A				$	97,242		$	128,874			N/A					$	128,874
Submersibles:		��
Average Rig Utilization		N/A			68	%					68	%		N/A			100	%				100	%		N/A			100	%					100	%
Operating Days		N/A			188						188			N/A			276					276			N/A			273						273
Average Dayrate		N/A		$	63,812					$	63,812			N/A		$	74,529				$	74,529			N/A		$	82,137					$	82,137
Total:
Average Rig Utilization		95	%		88	%					94	%		97	%		99	%				97	%		97	%		100	%					98	%
Operating Days		4,141			732						4,873			4,173			727					4,900			4,156			737						4,893
Average Dayrate	$	130,731		$	242,376					$	147,501		$	87,067		$	193,270				$	102,824		$	118,138		$	225,872					$	134,364

(1) Effective January 1, 2007, the Company’s 30 percent net profit interest in theNoble Kolskayais reported in labor contract drilling services. For the quarters ended September 30, 2007, 2006 and June 30, 2007,Noble Kolskayalabor contract drilling margin was $4.1 million, $2.0 million and $3.7 million, respectively.

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