Exhibit 99.1
| Noble Corporation Dorfstrasse 19a 6340 Baar Switzerland |  |
PRESS RELEASE
Noble Corporation Reports Third Quarter 2011 Earnings of $0.53 per Diluted Share
Higher Fleet Activity and Daily Revenues Drive Improvement Compared to Second Quarter 2011 Results
Higher Fleet Activity and Daily Revenues Drive Improvement Compared to Second Quarter 2011 Results
ZUG, Switzerland, October 19, 2011 — Noble Corporation (NYSE: NE) today reported third quarter 2011 earnings of $135 million, or $0.53 per diluted share, compared to $54 million, or $0.21 per diluted share, for the second quarter of 2011. Contract drilling services revenues totaled $705 million in the third quarter of 2011, up 20 percent from $590 million in the second quarter of 2011. Contract drilling margin percentage for the third quarter of 2011 improved to approximately 49 percent compared to 43 percent in the prior quarter, reflecting higher fleet utilization and average daily revenues. Third quarter results included a benefit of approximately $0.04 per diluted share relating to certain discrete tax items. Noble invested $559 million in capital projects during the third quarter, resulting in capital expenditures for the nine months ended September 30, 2011 of approximately $2 billion.
At September 30, 2011, approximately 81 percent of the Company’s available rig operating days in the floating rig fleet were committed to contracts for the remainder of 2011, with approximately 87 percent of the days committed for the jackup rig fleet. For 2012, approximately 62 percent and 52 percent of rig operating days were committed for the floating and jackup rig fleets, respectively.
David W. Williams, Chairman, President and Chief Executive Officer, noted, “The third quarter was highlighted by a number of accomplishments that further advance the strategic transformation of our fleet. Options for two additional JU3000N design high specification jackup rigs were exercised, bringing the total number of these units to six currently under construction. Additionally, we ordered a fourth ultra-deepwater drillship from Hyundai Heavy Industries Co. Ltd., increasing the total number of new, dynamically positioned drillships being added to our fleet to eight. Furthermore, this quarter our ongoing projects have achieved several milestones including the delivery of the drillshipNoble Bully I, which is now in transit to the Gulf of Mexico. The drillship,Noble Bully II, has departed the dock to begin sea trials and theNoble Globetrotter I is undergoing the installation of topsides and commissioning.”
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“During the quarter, there were a number of contract awards and extensions throughout our fleet of floating and jackup units. These awards contributed to a revenue backlog at September 30, 2011 of $12.8 billion, which was essentially flat with the measure at June 30, 2011,” Williams said.
Operations Highlights
In Mexico, where fleet utilization improved to 86 percent in the third quarter from 65 percent in the second quarter of 2011, two of the Company’s jackup rigs received contract extensions;the Noble Earl Fredrickson, to late December 2011, at a dayrate of $58,000, level with the previous contract, and theNoble Carl Norbergto late August 2014 at a dayrate of $68,000, up from $58,000 on the previous contract. Noble now has 11 of its 12 jackup rigs and the deepwater semisubmersible rigNoble Max Smithunder contract in Mexico into late 2011 or beyond, with promising jackup contract opportunities in the region continuing into 2012.
In the North Sea, jackup fleet utilization remained at 100 percent in the third quarter, while the Company continued to benefit from steady customer demand, supporting an improving dayrate environment. The jackup rigNoble Lynda Bosslerwas awarded a contract extension to early December 2012 at a dayrate of $125,000, up from a previous dayrate of $105,000. Also, theNoble George Sauvageauwas awarded a one-year contract at $115,000 per day, up from $92,000 per day on the previous contract. This rig, along with four of the Company’s other jackups in the region are now contracted through mid-2012 or beyond.
In the Middle East and India, where fleet utilization was 83 percent in the third quarter of 2011 compared to 75 percent in the second quarter of 2011, five of the Company’s jackup rigs were awarded contracts, including theNoble Jimmy Puckett,from April 2012 to April 2014 at a dayrate of $80,000; theNoble Gus Androes, from early October 2011 to late December 2011 at a dayrate of $58,000, while operating in accommodation mode; theNoble Harvey Duhaney, from early February 2012 to early August 2012 at a dayrate of $66,000; theNoble Dick Favor,from late November 2011 to late February 2012 at a dayrate of $95,000; and the drillshipNoble Duchess, which has been contracted from mid-March 2012 to mid-March 2015 at a dayrate of $180,000. Both theNoble Dick FavorandNoble Duchesswere previously stacked units and have, or will soon, begin reactivation efforts.
In closing, Williams commented, “We are witnessing an intensified effort by a number of customers to secure jackup and floating rigs for drilling operations in 2012 and beyond, supporting higher fleet utilization and improving dayrates, in spite of the unstable global macroeconomic picture. This effort, pertaining to jackup rig needs, remains most evident in Mexico, the North Sea, the Middle East and increasingly in Asia. In the floating rig fleet, especially ultra-deepwater rigs, the increased demand is apparent in numerous regions, but is most pronounced in Brazil, Africa, and the Gulf of Mexico, with all three regions displaying exceptional hydrocarbon potential.”
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“Our fleet is well positioned to benefit from this continued increase in activity, with available jackup rig capacity in Mexico and the North Sea, along with available deepwater capacity expected in the Gulf of Mexico and Brazil, where the semisubmersible rigsNoble Jim DayandNoble Clyde Boudreaux, respectively, are expected to complete contracts in early 2012.”
About Noble Corporation
Noble is a leading offshore drilling contractor for the oil and gas industry. Noble performs, through its subsidiaries, contract drilling services with a fleet of 79 offshore drilling units (including seven ultra-deepwater rigs and six jackup drilling rigs currently under construction), located worldwide, including in the Middle East, India, the U.S. Gulf of Mexico, Mexico, the Mediterranean, the North Sea, Brazil, West Africa and Asian Pacific. Noble’s shares are traded on the New York Stock Exchange under the symbol “NE”. Additional information on Noble Corporation is available via the worldwide web athttp://www.noblecorp.com.
Statements regarding contract backlog, earnings, costs, revenue, rig demand, fleet condition or performance, shareholder value, timing of delivery of newbuilds, contract commitments, dayrates, contract commencements, contract extensions or renewals, letters of intent or award, industry fundamentals, customer relationships, future performance, growth opportunities, market outlook, as well as any other statements that are not historical facts in this release, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to operating hazards and delays, risks associated with operations outside of the U.S., actions by regulatory authorities, customers and other third parties, legislation and regulations affecting drilling operations, compliance with regulatory requirements, factors affecting the level of activity in the oil and gas industry, supply and demand of drilling rigs, factors affecting the duration of contracts, delays in the construction of newbuilds, the actual amount of downtime, factors that reduce applicable dayrates, violations of anti-corruption laws, hurricanes and other weather conditions, the future price of oil and gas and other factors detailed in the Company’s most recent Form 10-K, Form 10-Q’s and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.
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Conference Call
Noble alsohas scheduled a conference call and webcast related to its third quarter 2011 results on Thursday, October 20, 2011, at 8:00 a.m. U.S. Central Daylight Time.Interested parties are invited to listen to the call by dialing 1-866-461-7129, or internationally 1-706-679-3084, using access code: 27255925, or by asking for the Noble Corporation conference call. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company’s Web site.
A replay of the conference call will be available on Thursday, October 20, 2011, beginning at 11:00 a.m. U.S. Central Daylight Time, through Thursday, November 3, 2011, ending at 5:00 p.m. U.S. Central Daylight Time. The phone number for the conference call replay is 1-800-642-1687 or, for calls from outside of the U.S., 1-706-645-9291, using access code: 27255925. The replay will also be available on the Company’s Web site following the end of the live call. 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.”
10/19/2011
For additional information, contact:
| For Investors: | Jeffrey L. Chastain, Vice President — Investor Relations, Noble Drilling Services Inc., 281-276-6383 |
| 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)
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Operating revenues | ||||||||||||||||
| Contract drilling services | $ | 704,892 | $ | 584,919 | $ | 1,837,047 | $ | 2,081,075 | ||||||||
| Reimbursables | 17,438 | 19,177 | 63,851 | 57,163 | ||||||||||||
| Labor contract drilling services | 15,564 | 7,887 | 43,123 | 23,704 | ||||||||||||
| Other | 8 | 635 | 766 | 1,449 | ||||||||||||
| 737,902 | 612,618 | 1,944,787 | 2,163,391 | |||||||||||||
Operating costs and expenses | ||||||||||||||||
| Contract drilling services | 358,547 | 315,844 | 1,001,638 | 845,870 | ||||||||||||
| Reimbursables | 13,971 | 14,351 | 49,797 | 44,459 | ||||||||||||
| Labor contract drilling services | 8,053 | 5,302 | 25,326 | 16,570 | ||||||||||||
| Depreciation and amortization | 166,213 | 143,282 | 487,454 | 385,366 | ||||||||||||
| Selling, general and administrative | 27,536 | 25,482 | 72,883 | 71,261 | ||||||||||||
| Gain on contract extinguishments, net | — | — | (21,202 | ) | — | |||||||||||
| 574,320 | 504,261 | 1,615,896 | 1,363,526 | |||||||||||||
Operating income | 163,582 | 108,357 | 328,891 | 799,865 | ||||||||||||
Other income (expense) | ||||||||||||||||
| Interest expense, net of amount capitalized | (11,530 | ) | (4,144 | ) | (45,400 | ) | (5,119 | ) | ||||||||
| Interest income and other, net | 1,117 | 2,561 | 3,175 | 7,193 | ||||||||||||
Income before income taxes | 153,169 | 106,774 | 286,666 | 801,939 | ||||||||||||
| Income tax provision | (17,614 | ) | (20,287 | ) | (42,481 | ) | (126,801 | ) | ||||||||
Net income | 135,555 | 86,487 | 244,185 | 675,138 | ||||||||||||
| Net income attributable to noncontrolling interests | (238 | ) | (467 | ) | (290 | ) | (467 | ) | ||||||||
Net income attributable to Noble Corporation | $ | 135,317 | $ | 86,020 | $ | 243,895 | $ | 674,671 | ||||||||
Net income per share | ||||||||||||||||
| Basic | $ | 0.53 | $ | 0.34 | $ | 0.96 | $ | 2.63 | ||||||||
| Diluted | $ | 0.53 | $ | 0.34 | $ | 0.96 | $ | 2.62 | ||||||||
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NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| September 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 197,015 | $ | 337,871 | ||||
| Accounts receivable | 601,161 | 387,414 | ||||||
| Prepaid expenses and other current assets | 203,268 | 186,509 | ||||||
| Total current assets | 1,001,444 | 911,794 | ||||||
| Property and equipment | 14,420,267 | 12,643,866 | ||||||
| Accumulated depreciation | (2,999,235 | ) | (2,595,779 | ) | ||||
| Property and equipment, net | 11,421,032 | 10,048,087 | ||||||
| Other assets | 529,057 | 342,506 | ||||||
Total assets | $ | 12,951,533 | $ | 11,302,387 | ||||
LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Current maturities of long-term debt | $ | — | $ | 80,213 | ||||
| Accounts payable | 320,053 | 374,814 | ||||||
| Accrued payroll and related costs | 124,317 | 125,663 | ||||||
| Interest payable | 22,129 | 40,260 | ||||||
| Other current liabilities | 183,351 | 180,497 | ||||||
| Total current liabilities | 649,850 | 801,447 | ||||||
| Long-term debt | 3,811,866 | 2,686,484 | ||||||
| Deferred income taxes | 299,625 | 258,822 | ||||||
| Other liabilities | 218,523 | 268,000 | ||||||
Total liabilities | 4,979,864 | 4,014,753 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Shares | 796,067 | 917,684 | ||||||
| Additional paid-in capital | 49,010 | 39,006 | ||||||
| Retained earnings | 6,549,441 | 6,630,500 | ||||||
| Treasury shares | (10,531 | ) | (373,967 | ) | ||||
| Accumulated other comprehensive loss | (56,212 | ) | (50,220 | ) | ||||
Total shareholders’ equity | 7,327,775 | 7,163,003 | ||||||
| Noncontrolling interests | 643,894 | 124,631 | ||||||
Total equity | 7,971,669 | 7,287,634 | ||||||
Total liabilities and equity | $ | 12,951,533 | $ | 11,302,387 | ||||
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NOBLE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2011 | 2010 | |||||||
Cash flows from operating activities | ||||||||
| Net income | $ | 244,185 | $ | 675,138 | ||||
| Adjustments to reconcile net income to net cash from operating activities: | ||||||||
| Depreciation and amortization | 487,454 | 385,366 | ||||||
| Gain on contract extinguishments, net | (21,202 | ) | — | |||||
| Deferred income taxes | (34,549 | ) | (29,586 | ) | ||||
| Share-based compensation expense | 26,857 | 26,906 | ||||||
| Net change in other assets and liabilities | (228,299 | ) | 227,873 | |||||
| Net cash from operating activities | 474,446 | 1,285,697 | ||||||
Cash flows from investing activities | ||||||||
| New construction | (1,280,577 | ) | (334,928 | ) | ||||
| Other capital expenditures | (464,861 | ) | (435,833 | ) | ||||
| Major maintenance expenditures | (154,330 | ) | (64,244 | ) | ||||
| Capitalized interest | (88,220 | ) | (51,088 | ) | ||||
| Refund from contract extinguishments | 18,642 | — | ||||||
| Change in accrued capital expenditures | (48,782 | ) | 4,213 | |||||
| Acquisition of FDR Holdings, Ltd., net of cash acquired | — | (1,629,644 | ) | |||||
| Net cash from investing activities | (2,018,128 | ) | (2,511,524 | ) | ||||
Cash flows from financing activities | ||||||||
| Increase in bank credit facilities, net | 675,000 | — | ||||||
| Payments of other long-term debt | (693,494 | ) | — | |||||
| Proceeds from issuance of senior notes, net of debt issuance costs | 1,087,833 | 1,238,074 | ||||||
| Contributions from joint venture partners | 481,000 | 35,000 | ||||||
| Settlements of interest rate swaps | (29,032 | ) | (2,041 | ) | ||||
| Par value reduction payments | (114,453 | ) | (193,869 | ) | ||||
| Repurchases of shares | — | (219,330 | ) | |||||
| Financing costs on credit facilities | (2,835 | ) | — | |||||
| Proceeds from employee stock transactions | 9,018 | 9,703 | ||||||
| Repurchases of employee shares surrendered for taxes | (10,211 | ) | (9,961 | ) | ||||
| Net cash from financing activities | 1,402,826 | 857,576 | ||||||
| Net change in cash and cash equivalents | (140,856 | ) | (368,251 | ) | ||||
Cash and cash equivalents, beginning of period | 337,871 | 735,493 | ||||||
Cash and cash equivalents, end of period | $ | 197,015 | $ | 367,242 | ||||
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NOBLE CORPORATION AND SUBSIDIARIES
FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT
(In thousands, except operating statistics)
(Unaudited)
FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT
(In thousands, except operating statistics)
(Unaudited)
| Three Months Ended September 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||||||
| 2011 | 2010 | 2011 | ||||||||||||||||||||||||||||||||||
| Contract | Contract | Contract | ||||||||||||||||||||||||||||||||||
| Drilling | Drilling | Drilling | ||||||||||||||||||||||||||||||||||
| Services | Other | Total | Services | Other | Total | Services | Other | Total | ||||||||||||||||||||||||||||
Operating revenues | ||||||||||||||||||||||||||||||||||||
| Contract drilling services | $ | 704,892 | $ | — | $ | 704,892 | $ | 584,919 | $ | — | $ | 584,919 | $ | 589,550 | $ | — | $ | 589,550 | ||||||||||||||||||
| Reimbursables | 14,646 | 2,792 | 17,438 | 18,488 | 689 | 19,177 | 22,982 | 1,140 | 24,122 | |||||||||||||||||||||||||||
| Labor contract drilling services | — | 15,564 | 15,564 | — | 7,887 | 7,887 | — | 14,012 | 14,012 | |||||||||||||||||||||||||||
| Other | 8 | — | 8 | 635 | — | 635 | 313 | — | 313 | |||||||||||||||||||||||||||
| $ | 719,546 | $ | 18,356 | $ | 737,902 | $ | 604,042 | $ | 8,576 | $ | 612,618 | $ | 612,845 | $ | 15,152 | $ | 627,997 | |||||||||||||||||||
Operating costs and expenses | ||||||||||||||||||||||||||||||||||||
| Contract drilling services | $ | 358,547 | $ | — | $ | 358,547 | $ | 315,844 | $ | — | $ | 315,844 | $ | 336,728 | $ | — | $ | 336,728 | ||||||||||||||||||
| Reimbursables | 11,362 | 2,609 | 13,971 | 13,696 | 655 | 14,351 | 17,606 | 1,117 | 18,723 | |||||||||||||||||||||||||||
| Labor contract drilling services | — | 8,053 | 8,053 | — | 5,302 | 5,302 | — | 8,750 | 8,750 | |||||||||||||||||||||||||||
| Depreciation and amortization | 162,837 | 3,376 | 166,213 | 140,199 | 3,083 | 143,282 | 159,843 | 3,276 | 163,119 | |||||||||||||||||||||||||||
| Selling, general and administrative | 27,212 | 324 | 27,536 | 25,220 | 262 | 25,482 | 21,359 | 273 | 21,632 | |||||||||||||||||||||||||||
| Gain on contract extinguishments, net | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
| $ | 559,958 | $ | 14,362 | $ | 574,320 | $ | 494,959 | $ | 9,302 | $ | 504,261 | $ | 535,536 | $ | 13,416 | $ | 548,952 | |||||||||||||||||||
Operating income | $ | 159,588 | $ | 3,994 | $ | 163,582 | $ | 109,083 | $ | (726 | ) | $ | 108,357 | $ | 77,309 | $ | 1,736 | $ | 79,045 | |||||||||||||||||
Operating statistics | ||||||||||||||||||||||||||||||||||||
Jackups: | ||||||||||||||||||||||||||||||||||||
| Average Rig Utilization | 82 | % | 77 | % | 71 | % | ||||||||||||||||||||||||||||||
| Operating Days | 3,229 | 3,032 | 2,797 | |||||||||||||||||||||||||||||||||
| Average Dayrate | $ | 89,352 | $ | 90,791 | $ | 80,742 | ||||||||||||||||||||||||||||||
Semisubmersibles: | ||||||||||||||||||||||||||||||||||||
| Average Rig Utilization | 84 | % | 90 | % | 85 | % | ||||||||||||||||||||||||||||||
| Operating Days | 1,086 | 1,057 | 1,088 | |||||||||||||||||||||||||||||||||
| Average Dayrate | $ | 315,034 | $ | 172,727 | $ | 269,798 | ||||||||||||||||||||||||||||||
Drillships: | ||||||||||||||||||||||||||||||||||||
| Average Rig Utilization | 60 | % | 100 | % | 58 | % | ||||||||||||||||||||||||||||||
| Operating Days | 329 | 468 | 317 | |||||||||||||||||||||||||||||||||
| Average Dayrate | $ | 225,669 | $ | 229,963 | $ | 220,953 | ||||||||||||||||||||||||||||||
FPSO/Submersibles: | ||||||||||||||||||||||||||||||||||||
| Average Rig Utilization | 0 | % | 26 | % | 0 | % | ||||||||||||||||||||||||||||||
| Operating Days | — | 64 | — | |||||||||||||||||||||||||||||||||
| Average Dayrate | $ | — | $ | 304,000 | $ | — | ||||||||||||||||||||||||||||||
Total: | ||||||||||||||||||||||||||||||||||||
| Average Rig Utilization | 76 | % | 79 | % | 70 | % | ||||||||||||||||||||||||||||||
| Operating Days | 4,644 | 4,621 | 4,202 | |||||||||||||||||||||||||||||||||
| Average Dayrate | $ | 151,782 | $ | 126,581 | $ | 140,296 | ||||||||||||||||||||||||||||||
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NOBLE CORPORATION AND SUBSIDIARIES
CALCULATION OF BASIC AND DILUTED NET INCOME
(In thousands, except per share amounts)
(Unaudited)
CALCULATION OF BASIC AND DILUTED NET INCOME
(In thousands, except per share amounts)
(Unaudited)
The following table sets forth the computation of basic and diluted net income per share:
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Allocation of net income | ||||||||||||||||
Basic | ||||||||||||||||
| Net income attributable to Noble Corporation | $ | 135,317 | $ | 86,020 | $ | 243,895 | $ | 674,671 | ||||||||
| Earnings allocated to unvested share-based payment awards | (1,415 | ) | (828 | ) | (2,487 | ) | (6,416 | ) | ||||||||
Net income to common shareholders — basic | $ | 133,902 | $ | 85,192 | $ | 241,408 | $ | 668,255 | ||||||||
Diluted | ||||||||||||||||
| Net income attributable to Noble Corporation | $ | 135,317 | $ | 86,020 | $ | 243,895 | $ | 674,671 | ||||||||
| Earnings allocated to unvested share-based payment awards | (1,412 | ) | (825 | ) | (2,481 | ) | (6,394 | ) | ||||||||
Net income to common shareholders — diluted | $ | 133,905 | $ | 85,195 | $ | 241,414 | $ | 668,277 | ||||||||
Weighted average number of shares outstanding — basic | 251,580 | 252,513 | 251,327 | 253,944 | ||||||||||||
| Incremental shares issuable from assumed exercise of stock options | 449 | 671 | 640 | 855 | ||||||||||||
Weighted average number of shares outstanding — diluted | 252,029 | 253,184 | 251,967 | 254,799 | ||||||||||||
Weighted average unvested share-based payment awards | 2,658 | 2,453 | 2,589 | 2,438 | ||||||||||||
Earnings per share | ||||||||||||||||
| Basic | $ | 0.53 | $ | 0.34 | $ | 0.96 | $ | 2.63 | ||||||||
| Diluted | $ | 0.53 | $ | 0.34 | $ | 0.96 | $ | 2.62 | ||||||||
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