Information about Noble-Cayman | Information about Noble-Cayman Guarantees of Registered Securities In May 2014, as part of the separation of Paragon Offshore, NHC assumed all of the obligations of Noble Drilling Corporation (“NDC”) under the Senior Notes due 2019, and NDC was released from all obligations under the Senior Notes due 2019. As such, we removed NDC from the guarantor financial statements and NHC is no longer combined with Noble Drilling Holding, LLC (“NDH”), as they are now issuers and guarantors on separate debt instruments. We have recast prior periods presented to conform to the guarantor structure as it existed at December 31, 2016 . Noble-Cayman, or one or more wholly-owned subsidiaries of Noble-Cayman, are a co-issuer or full and unconditional guarantor or otherwise obligated as of December 31, 2016 as follows: Issuer Notes (Co-Issuer(s)) Guarantor(s) $300 million 2.50% Senior Notes due 2017 NHIL Noble-Cayman $250 million 5.25% Senior Notes due 2018 NHIL Noble-Cayman $202 million 7.50% Senior Notes due 2019 NHC Noble-Cayman NDH Noble Drilling Services 6 LLC (“NDS6”) $168 million 4.90% Senior Notes due 2020 NHIL Noble-Cayman $209 million 4.625% Senior Notes due 2021 NHIL Noble-Cayman $126 million 3.95% Senior Notes due 2022 NHIL Noble-Cayman $1 billion 7.75% Senior Notes due 2024 NHIL Noble-Cayman $450 million 7.20% Senior Notes due 2025 NHIL Noble-Cayman $400 million 6.20% Senior Notes due 2040 NHIL Noble-Cayman $400 million 6.05% Senior Notes due 2041 NHIL Noble-Cayman $500 million 5.25% Senior Notes due 2042 NHIL Noble-Cayman $400 million 8.20% Senior Notes due 2045 NHIL Noble-Cayman The following consolidating financial statements of Noble-Cayman, NHC, NDH, NHIL, NDS6 and all other subsidiaries present investments in both consolidated and unconsolidated affiliates using the equity method of accounting. NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2016 (in thousands) Noble- Cayman NHC NDH NHIL NDS6 Other Non-guarantor Subsidiaries of Noble Consolidating Adjustments Total ASSETS Current assets Cash and cash equivalents $ 2,537 $ — $ 10,855 $ — $ — $ 640,441 $ — $ 653,833 Accounts receivable — — 33,162 — — 285,990 — 319,152 Taxes receivable — 21,428 — — — 34,052 — 55,480 Short-term notes receivable from affiliates — — 243,915 — 1,349,708 52,611 (1,646,234 ) — Accounts receivable from affiliates 361,313 — 137,476 67,560 85,274 3,038,658 (3,690,281 ) — Prepaid expenses and other current assets 270 — 1,611 — — 86,868 88,749 Total current assets 364,120 21,428 427,019 67,560 1,434,982 4,138,620 (5,336,515 ) 1,117,214 Property and equipment, at cost — — 2,376,862 — — 9,988,026 — 12,364,888 Accumulated depreciation — — (428,308 ) — — (1,874,632 ) — (2,302,940 ) Property and equipment, net — — 1,948,554 — — 8,113,394 — 10,061,948 Notes receivable from affiliates 3,304,672 — 112,706 69,564 5,000 1,798,614 (5,290,556 ) — Investments in affiliates 2,848,855 2,007,016 1,411,874 8,369,728 6,129,082 — (20,766,555 ) — Other assets 4,292 — 5,687 — — 168,573 — 178,552 Total assets $ 6,521,939 $ 2,028,444 $ 3,905,840 $ 8,506,852 $ 7,569,064 $ 14,219,201 $ (31,393,626 ) $ 11,357,714 LIABILITIES AND EQUITY Current liabilities Short-term notes payables from affiliates $ — $ 171,925 $ — $ — $ — $ 1,474,309 $ (1,646,234 ) $ — Current maturities of long-term debt — — — 299,882 — — — 299,882 Accounts payable — — 4,228 — — 103,640 — 107,868 Accrued payroll and related costs — — 4,882 — — 43,437 — 48,319 Accounts payable to affiliates 818,737 111,801 1,995,788 123,642 — 640,313 (3,690,281 ) — Taxes payable — — — — — 46,561 — 46,561 Interest payable 48 — — 56,839 4,412 — — 61,299 Other current liabilities 12 — 4,296 — — 63,004 — 67,312 Total current liabilities 818,797 283,726 2,009,194 480,363 4,412 2,371,264 (5,336,515 ) 631,241 Long-term debt — — — 3,838,807 201,422 — — 4,040,229 Notes payable to affiliates — 700,000 467,139 744,181 — 3,379,236 (5,290,556 ) — Deferred income taxes — — 534 — — 1,550 — 2,084 Other liabilities 19,929 — 24,035 — — 248,219 — 292,183 Total liabilities 838,726 983,726 2,500,902 5,063,351 205,834 6,000,269 (10,627,071 ) 4,965,737 Commitments and contingencies Total shareholder equity 5,683,213 1,044,718 1,404,938 3,443,501 7,363,230 7,106,323 (20,362,710 ) 5,683,213 Noncontrolling interests — — — — — 1,112,609 (403,845 ) 708,764 Total equity 5,683,213 1,044,718 1,404,938 3,443,501 7,363,230 8,218,932 (20,766,555 ) 6,391,977 Total liabilities and equity $ 6,521,939 $ 2,028,444 $ 3,905,840 $ 8,506,852 $ 7,569,064 $ 14,219,201 $ (31,393,626 ) $ 11,357,714 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 (in thousands) Noble- Cayman NHC NDH NHIL NDS6 Other Non-guarantor Subsidiaries of Noble Consolidating Adjustments Total ASSETS Current assets Cash and cash equivalents $ 1,627 $ — $ 2,101 $ — $ — $ 508,067 $ — $ 511,795 Accounts receivable — — 9,381 — — 489,550 — 498,931 Taxes receivable — 12,124 27 — — 43,291 — 55,442 Short-term notes receivable from affiliates — — 119,476 — — 171,925 (291,401 ) — Accounts receivable from affiliates 626,305 451,201 128,457 811,785 67,684 3,445,590 (5,531,022 ) — Prepaid expenses and other current assets 246 — 1,696 — — 166,527 — 168,469 Total current assets 628,178 463,325 261,138 811,785 67,684 4,824,950 (5,822,423 ) 1,234,637 Property and equipment, at cost — — 1,877,520 — — 12,177,038 — 14,054,558 Accumulated depreciation — — (344,591 ) — — (2,227,740 ) — (2,572,331 ) Property and equipment, net — — 1,532,929 — — 9,949,298 — 11,482,227 Notes receivable from affiliates 3,304,652 — 236,921 1,587,927 5,000 2,435,154 (7,569,654 ) — Investments in affiliates 5,159,064 2,174,480 3,001,327 9,752,912 7,438,397 — (27,526,180 ) — Other assets 5,954 — 7,496 — — 118,869 — 132,319 Total assets $ 9,097,848 $ 2,637,805 $ 5,039,811 $ 12,152,624 $ 7,511,081 $ 17,328,271 $ (40,918,257 ) $ 12,849,183 LIABILITIES AND EQUITY Current liabilities Short-term notes payables from affiliates $ — $ 171,925 $ — $ — $ — $ 119,476 $ (291,401 ) $ — Current maturities of long-term debt — — — 299,924 — — — 299,924 Accounts payable — — 10,676 — — 210,401 — 221,077 Accrued payroll and related costs — — 6,584 — — 74,780 — 81,364 Accounts payable to affiliates 868,046 60,100 2,440,965 96,543 6,426 2,058,942 (5,531,022 ) — Taxes payable — 917 — — — 87,191 — 88,108 Interest payable — — — 68,549 4,412 — — 72,961 Other current liabilities 40 — 4,108 — — 92,183 — 96,331 Total current liabilities 868,086 232,942 2,462,333 465,016 10,838 2,642,973 (5,822,423 ) 859,765 Long-term debt — — — 3,961,338 201,300 — — 4,162,638 Notes payable to affiliates 1,518,363 — 461,379 2,086,480 124,216 3,379,216 (7,569,654 ) — Deferred income taxes — — 1,529 — — 91,268 — 92,797 Other liabilities 19,929 — 25,312 — — 274,271 — 319,512 Total liabilities 2,406,378 232,942 2,950,553 6,512,834 336,354 6,387,728 (13,392,077 ) 5,434,712 Commitments and contingencies Total shareholder equity 6,691,470 2,404,863 2,089,258 5,639,790 7,174,727 9,781,284 (27,089,922 ) 6,691,470 Noncontrolling interests — — — — — 1,159,259 (436,258 ) 723,001 Total equity 6,691,470 2,404,863 2,089,258 5,639,790 7,174,727 10,940,543 (27,526,180 ) 7,414,471 Total liabilities and equity $ 9,097,848 $ 2,637,805 $ 5,039,811 $ 12,152,624 $ 7,511,081 $ 17,328,271 $ (40,918,257 ) $ 12,849,183 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2016 (in thousands) Noble- Cayman NHC NDH NHIL NDS6 Other Non-guarantor Subsidiaries of Noble Consolidating Adjustments Total Operating revenues Contract drilling services $ — $ — $ 250,049 $ — $ — $ 2,086,848 $ (94,697 ) $ 2,242,200 Reimbursables — — 9,190 — — 50,242 — 59,432 Other — — — — — 1,133 — 1,133 Total operating revenues — — 259,239 — — 2,138,223 (94,697 ) 2,302,765 Operating costs and expenses Contract drilling services 4,532 18,902 70,801 84,309 — 789,814 (94,697 ) 873,661 Reimbursables — — 8,231 — — 37,268 — 45,499 Depreciation and amortization — — 91,802 — — 519,211 — 611,013 General and administrative 1,264 8,716 — 40,082 1 (4,018 ) — 46,045 Loss on impairment — — — — — 1,458,749 — 1,458,749 Total operating costs and expenses 5,796 27,618 170,834 124,391 1 2,801,024 (94,697 ) 3,034,967 Operating income (loss) (5,796 ) (27,618 ) 88,405 (124,391 ) (1 ) (662,801 ) — (732,202 ) Other income (expense) Income (loss) of unconsolidated affiliates (962,662 ) (257,142 ) (980,099 ) (333,446 ) 515,518 — 2,017,831 — Interest expense, net of amounts capitalized (27,891 ) (70,494 ) (11,461 ) (228,423 ) (15,117 ) (122,345 ) 252,816 (222,915 ) Gain on extinguishment of debt, net — — — 17,814 — — — 17,814 Interest income and other, net 96,635 120 12,616 20,412 15,058 108,108 (252,816 ) 133 Income (loss) before income taxes (899,714 ) (355,134 ) (890,539 ) (648,034 ) 515,458 (677,038 ) 2,017,831 (937,170 ) Income tax benefit (provision) — (42,522 ) 163 — — 151,522 — 109,163 Net income (loss) (899,714 ) (397,656 ) (890,376 ) (648,034 ) 515,458 (525,516 ) 2,017,831 (828,007 ) Net income attributable to noncontrolling interests — — — — — (39,294 ) (32,413 ) (71,707 ) Net income (loss) attributable to Noble Corporation (899,714 ) (397,656 ) (890,376 ) (648,034 ) 515,458 (564,810 ) 1,985,418 (899,714 ) Other comprehensive income (loss), net 11,035 — — — — 11,035 (11,035 ) 11,035 Comprehensive income (loss) attributable to Noble Corporation $ (888,679 ) $ (397,656 ) $ (890,376 ) $ (648,034 ) $ 515,458 $ (553,775 ) $ 1,974,383 $ (888,679 ) NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2015 (in thousands) Noble- Cayman NHC NDH NHIL NDS6 Other Non-guarantor Subsidiaries of Noble Consolidating Adjustments Total Operating revenues Contract drilling services $ — $ — $ 354,657 $ — $ — $ 3,325,608 $ (418,655 ) $ 3,261,610 Reimbursables — — 18,529 — — 72,113 — 90,642 Revenue from affiliates — — — — — 200 — 200 Total operating revenues — — 373,186 — — 3,397,921 (418,655 ) 3,352,452 Operating costs and expenses Contract drilling services 3,611 19,160 395,365 84,005 — 1,142,891 (418,655 ) 1,226,377 Reimbursables — — 13,686 — — 56,590 — 70,276 Depreciation and amortization — — 77,187 — — 556,057 — 633,244 General and administrative 1,138 8,683 — 38,167 1 7,446 — 55,435 Loss on impairment — — 13 — — 418,285 — 418,298 Total operating costs and expenses 4,749 27,843 486,251 122,172 1 2,181,269 (418,655 ) 2,403,630 Operating income (loss) (4,749 ) (27,843 ) (113,065 ) (122,172 ) (1 ) 1,216,652 — 948,822 Other income (expense) Income (loss) of unconsolidated affiliates—continuing operations 591,297 73,319 190,335 936,429 647,856 — (2,439,236 ) — Interest expense, net of amounts capitalized (75,925 ) (4,932 ) (12,110 ) (224,894 ) (25,578 ) (68,670 ) 198,255 (213,854 ) Interest income and other, net 24,188 4,852 52,026 71,617 5,165 75,071 (198,255 ) 34,664 Income before income taxes 534,811 45,396 117,186 660,980 627,442 1,223,053 (2,439,236 ) 769,632 Income tax provision — (77,929 ) (4,466 ) — — (80,225 ) — (162,620 ) Net Income 534,811 (32,533 ) 112,720 660,980 627,442 1,142,828 (2,439,236 ) 607,012 Net income attributable to noncontrolling interests — — — — — (105,240 ) 33,039 (72,201 ) Net income attributable to Noble Corporation 534,811 (32,533 ) 112,720 660,980 627,442 1,037,588 (2,406,197 ) 534,811 Other comprehensive income, net 6,243 — — — — 6,243 (6,243 ) 6,243 Comprehensive income attributable to Noble Corporation $ 541,054 $ (32,533 ) $ 112,720 $ 660,980 $ 627,442 $ 1,043,831 $ (2,412,440 ) $ 541,054 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS Year Ended December 31, 2014 (in thousands) Noble- Cayman NHC NDH NHIL NDS6 Other Non-guarantor Subsidiaries of Noble Consolidating Adjustments Total Operating revenues Contract drilling services $ — $ — $ 327,070 $ — $ — $ 3,067,195 $ (246,406 ) $ 3,147,859 Reimbursables — — 6,239 — — 78,405 — 84,644 Other — — — — — 1 — 1 Total operating revenues — — 333,309 — — 3,145,601 (246,406 ) 3,232,504 Operating costs and expenses Contract drilling services 30,885 39,039 120,971 115,909 — 1,447,073 (246,406 ) 1,507,471 Reimbursables — — 4,687 — — 61,691 — 66,378 Depreciation and amortization — — 65,164 — — 559,114 — 624,278 General and administrative 2,437 11,376 — 31,620 1 7,560 — 52,994 Loss on impairment — — — — — 745,428 — 745,428 Total operating costs and expenses 33,322 50,415 190,822 147,529 1 2,820,866 (246,406 ) 2,996,549 Operating income (loss) (33,322 ) (50,415 ) 142,487 (147,529 ) (1 ) 324,735 — 235,955 Other income (expense) Income (loss) of unconsolidated affiliates—continuing operations (2,885,628 ) 157,648 (80,080 ) 604,419 448,785 — 1,754,856 — Income (loss) of unconsolidated affiliates—discontinued operations, net of tax 223,083 50,565 28,580 170,845 6,240 — (479,313 ) — Total income (loss) of unconsolidated affiliates (2,662,545 ) 208,213 (51,500 ) 775,264 455,025 — 1,275,543 — Interest expense, net of amounts capitalized (93,536 ) (3,046 ) (24,974 ) (169,666 ) (33,671 ) (3,148,822 ) 3,318,536 (155,179 ) Interest income and other, net 2,913,631 — 249,005 89,449 3,308 64,267 (3,318,536 ) 1,124 Income from continuing operations before income taxes 124,228 154,752 315,018 547,518 424,661 (2,759,820 ) 1,275,543 81,900 Income tax provision — (68,805 ) (3,574 ) — (1,546 ) (32,005 ) — (105,930 ) Net income (loss) from continuing operations 124,228 85,947 311,444 547,518 423,115 (2,791,825 ) 1,275,543 (24,030 ) Net income (loss) from discontinued operations, net of tax — (18,655 ) 6,634 — — 235,104 — 223,083 Net Income 124,228 67,292 318,078 547,518 423,115 (2,556,721 ) 1,275,543 199,053 Net income attributable to noncontrolling interests — — — — — (98,603 ) 23,778 (74,825 ) Net income attributable to Noble Corporation 124,228 67,292 318,078 547,518 423,115 (2,655,324 ) 1,299,321 124,228 Other comprehensive loss, net (21,732 ) — — — — (21,732 ) 21,732 (21,732 ) Comprehensive income attributable to Noble Corporation $ 102,496 $ 67,292 $ 318,078 $ 547,518 $ 423,115 $ (2,677,056 ) $ 1,321,053 $ 102,496 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2016 (in thousands) Noble- Cayman NHC NDH NHIL NDS6 Other Non-guarantor Subsidiaries of Noble Consolidating Adjustments Total Cash flows from operating activities Net cash from operating activities $ 97,388 $ (150,735 ) $ 149,431 $ (344,112 ) $ (60 ) $ 1,404,359 $ — $ 1,156,271 Cash flows from investing activities Capital expenditures — — (492,985 ) — — (201,754 ) — (694,739 ) Proceeds from disposal of assets — — — — — 24,808 — 24,808 Notes receivable from affiliates — — — — — — — — Net cash from investing activities — — (492,985 ) — — (176,946 ) — (669,931 ) Cash flows from financing activities Repayment of long-term debt — — — (1,049,338 ) — — — (1,049,338 ) Issuance of senior notes — — — 980,100 — — — 980,100 Debt issuance costs on senior notes — — — (12,111 ) — — — (12,111 ) Tender offer premium — — — (24,649 ) — — — (24,649 ) Dividends paid to noncontrolling interests — — — — — (85,944 ) — (85,944 ) Distributions to parent company, net (152,360 ) — — — — — — (152,360 ) Advances (to) from affiliates 55,882 150,735 352,308 450,110 60 (1,009,095 ) — — Notes payable to affiliates — — — — — — — — Net cash from financing activities (96,478 ) 150,735 352,308 344,112 60 (1,095,039 ) — (344,302 ) Net change in cash and cash equivalents 910 — 8,754 — — 132,374 — 142,038 Cash and cash equivalents, beginning of period 1,627 — 2,101 — — 508,067 — 511,795 Cash and cash equivalents, end of period $ 2,537 $ — $ 10,855 $ — $ — $ 640,441 $ — $ 653,833 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2015 (in thousands) Noble- Cayman NHC NDH NHIL NDS6 Other Non-guarantor Subsidiaries of Noble Consolidating Adjustments Total Cash flows from operating activities Net cash from operating activities $ (31,562 ) $ (53,686 ) $ 15,207 $ (267,735 ) $ (20,292 ) $ 2,105,575 $ — $ 1,747,507 Cash flows from investing activities Capital expenditures — — (116,594 ) — — (320,557 ) — (437,151 ) Proceeds from disposal of assets — — — — — 4,614 — 4,614 Notes receivable from affiliates 124,951 — — 608,771 — — (733,722 ) — Net cash from investing activities 124,951 — (116,594 ) 608,771 — (315,943 ) (733,722 ) (432,537 ) Cash flows from financing activities Net change in borrowings outstanding on bank credit facilities (1,123,495 ) — — — — — — (1,123,495 ) Repayment of long-term debt — — — (350,000 ) — — — (350,000 ) Issuance of senior notes — — — 1,092,728 — — — 1,092,728 Debt issuance costs on senior notes and credit facilities (6,450 ) — — (9,620 ) — — — (16,070 ) Dividends paid to noncontrolling interests — — — — — (71,504 ) — (71,504 ) Distributions to parent company, net (400,614 ) — — — — — — (400,614 ) Advances (to) from affiliates 2,047,563 53,686 103,234 (1,074,144 ) 20,292 (1,150,631 ) — — Notes payable to affiliates (608,771 ) — — — — (124,951 ) 733,722 — Net cash from financing activities (91,767 ) 53,686 103,234 (341,036 ) 20,292 (1,347,086 ) 733,722 (868,955 ) Net change in cash and cash equivalents 1,622 — 1,847 — — 442,546 — 446,015 Cash and cash equivalents, beginning of period 5 — 254 — — 65,521 — 65,780 Cash and cash equivalents, end of period $ 1,627 $ — $ 2,101 $ — $ — $ 508,067 $ — $ 511,795 NOBLE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS Year Ended December 31, 2014 (in thousands) Noble- Cayman NHC NDH NHIL NDS6 Other Non-guarantor Subsidiaries of Noble Consolidating Adjustments Total Cash flows from operating activities Net cash from operating activities $ 2,825,524 $ (151,987 ) $ 366,583 $ (232,605 ) $ (31,788 ) $ (903,811 ) $ — $ 1,871,916 Cash flows from investing activities Capital expenditures — — (1,404,560 ) — — (704,574 ) — (2,109,134 ) Notes receivable from affiliates 50 — — 273,744 — — (273,794 ) — Net cash from investing activities 50 — (1,404,560 ) 273,744 — (704,574 ) (273,794 ) (2,109,134 ) Cash flows from financing activities Net change in borrowings outstanding on bank credit facilities (437,647 ) — — — — — — (437,647 ) Repayment of long-term debt — — — (250,000 ) — — — (250,000 ) Long-term borrowings of Paragon Offshore — — — — — 1,710,550 — 1,710,550 Financing costs on long-term borrowings of Paragon Offshore — — — — — (14,676 ) — (14,676 ) Cash balances of Paragon Offshore in Spin-Off — — — — — (104,152 ) — (104,152 ) Dividends paid to noncontrolling interests — — — — — (79,966 ) — (79,966 ) Debt issuance costs on senior notes and credit facilities (398 ) — — — — — — (398 ) Distributions to parent company, net (631,095 ) — — — — — — (631,095 ) Advances (to) from affiliates (1,482,686 ) 151,987 1,037,829 208,857 31,788 52,225 — — Notes payable to affiliates (273,744 ) — — — — (50 ) 273,794 — Net cash from financing activities (2,825,570 ) 151,987 1,037,829 (41,143 ) 31,788 1,563,931 273,794 192,616 Net change in cash and cash equivalents 4 — (148 ) (4 ) — (44,454 ) — (44,602 ) Cash and cash equivalents, beginning of period 1 — 402 4 — 109,975 — 110,382 Cash and cash equivalents, end of period $ 5 $ — $ 254 $ — $ — $ 65,521 $ — $ 65,780 |