corporate update december
TRANSCRIPT
Noble Corporation
December 2011
Corporate Update
2
Forward Looking Statement
These presentations contain “forward-looking statements” about Noble’s business, financial performance, contracts and prospects. Statements regarding contract backlog, costs, benefits, opportunities, financial performance, anticipated timing and cost of newbuild rigs, fleet strategy, growth into new market segments, bidding activity, rig demand, contract commencements, dayrates, impact of future regulations, contract duration, fleet condition, capabilities or performance, shareholder value 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 actions by regulatory authorities or other third parties, costs and difficulties related to other integration of acquired businesses, delays, costs and difficulties related to the construction of newbuild rigs, market conditions, financial results and performance, ability to repay debt and timing thereof, actions by customers and other third parties, factors affecting the level of activity in the oil and gas industry, supply and demand of drilling rigs, factors affecting the duration of contracts, 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. The Company disclaims any duty to update the information presented here.
333
Today’s Agenda
Noble Today
Fleet Transformation Strategy
Value Impact from Strategy
Regional Update
Safety First
4
Noble Corp Highlights
Among the world’s largest offshore drilling contractors Globally diverse operations Significant fleet transformation underway Focus on technologically advanced drilling solutions Large contract backlog Compelling value
Enterprise Value (as of 12/2/2011)
Primary ExchangeShares Outstanding (ex. Treasury Shares)
Avg. Daily Trading Vol. (2011)
Debt/Total Capital Ratio (as of 9/30/11)
Debt Rating
$13.0 billionNYSE: NE
252.4 million4.8 million
32%A-/Baa1
55
Noble’s Global Footprint
14 – Semisubmersibles14 – Drillships49 – Jackups
2 – Submersibles79 Total Rigs + FPSO + Platform Operation
Source: Noble
66
World’s Second Largest MODU Fleet
77
28 2719
37
3 8 8
63
49 49
22
13
31 146
19
10
141
79 77
60
50
34 32
16
0
50
100
150Floating Rig Count
(1) Includes four floaters and three jackups held in North Atlantic Drilling Inc.
Source: Noble
Floaters
Jackups
Other
38
916 19 18
5 37 8 6 6 3 2
39
28 12 8
4 5 2
77
37
28 27
19
9 8 8 8 8 63 2
0
20
40
60
80Floating Rig Count
(1) Includes four floaters held in North Atlantic Drilling Inc.
Source: Noble, Competitor Public Filings
DP
Moored
7
Industry’s Largest Floating FleetsNoble Systematically Growing its DP Units
8
Geographically Diversified Revenue BaseAs of September 30, 2011
22%
20%
20%
3%
19%
15%2%
Middle East / India
Gulf Coast
Mexico
Brazil
North Sea
West Africa
Canada
Source: Noble 8
9
$23.5
$13.5 $12.8
$9.0$8.1
$2.4 $1.5
0
5
10
15
20
25
30
Second Largest Industry BacklogAs of September 2011
Transocean Seadrill Noble Ensco Diamond Atwood
* Seadrill backlog includes 75% of the backlog, associated with Seadrill’s equity ownership in North Atlantic Drilling.Note: Rig types include Arctic, Drillship, Jackup, Semisubmersible, Submersible, Tender. Noble backlog includes 75% performance bonus potential on rigs with bonus provisions. Includes paid shipyard time for the three drillship projects in Brazil. Backlog includes Letters of Intent and newbuild rigs with contracts. Our PEMEX contracts contain early termination rights.Source: Company Form 10-Q Filings at September 30, 2011
($ Billions)
Rowan
10
Total BacklogAs of September 30, 2011
* Remaining three months
$12.8 billion total
Source: Noble backlog includes 75% performance bonus potential on rigs with bonus provision
$0.8
$2.6
$2.1$2.0
$1.3
$0.9
$0.6 $0.6$0.6 $0.5$0.5
$0.2 $0.1
($ Millions)
11
North Sea Noble Ronald Hoope jackup received a one-year commitment through
December 2012 – Dayrate $113,000 Noble Piet Van Ede jackup received a 10-month commitment through
December 2012 – Dayrate $113,000 Noble Lynda Bossler jackup awarded four-month extension beginning early
June 2012 – Dayrate $118,000 Noble Julie Robertson jackup awarded one-year commitment through March
2013 – Dayrate $118,000 Noble Ton van Langeveld semisubmersible awarded five-month extension
beginning mid-2012 – Dayrate $247,500 Middle East
All 14 Noble jackup rigs are under contract, with six units contracted into 2014 Alaska
Two-year agreement reached with Shell to contract the Noble Discovererthrough December 2013 – Dayrate $240,000
Deepwater Repricing Opportunities in 2012
Recent Fleet DevelopmentsEvidence of Improving Market
Noble Jim Day Noble Clyde Boudreaux Noble Paul Romano
Noble Max Smith Noble Amos Runner Noble Homer Ferrington
1212
Fleet Strategy
Core Fleet
Add rigs with the latest technology, equipment, and
capabilities
Modify core rigs to their technical
limit
Continually evaluate potentially non-core, uncompetitive assets that could be: Sold Spun-off, or Retired
Maintain core rigs as long as
competitive
1313
Building a Noble Future
2011 2012 2013 2014
Deliveries of three drillships: Noble Bully I & II, Noble Globetrotter I
First JU3000N high specification jackup delivered
Noble Globetrotter II
Two HHI ultra-deepwater drillships delivered
Two JU3000N jackups delivered
Final two HHI ultra-deepwater drillships delivered
Final three JU3000N jackups delivered
Source: Noble
141414
Noble’s Floating FleetNoble Systematically Growing its DP Units
8 8 9 9 912 12 12 12 12
4 44 4 4
811 11
1416
12 12 13 13 13
20
23 23
2628
0
5
10
15
20
25
30
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Floating Rig Count
Noble Clyde Boudreaux
Frontier AcquisitionNoble Danny AdkinsNoble Dave BeardNoble Jim Day
Noble Bully INoble Bully IINoble Globetrotter I
HHI IHHI IINoble Globetrotter II
HHI IIIHHI IV
Source: Noble
DP
Moored
15
Unique Equipment Configuration and Drilling Center of Multi-Purpose Tower
Noble Globetrotter INoble Bully I
Benefits: Compact design vs. conventional derrick Allows for smaller hull size vs. other drillships of similar capacity Highly efficient Reduced obstacles on rig floor Increased safety Minimized equipment downtime
1616
Value Impact of Fleet TransformationEstimated Revenue Distribution by Asset Type
32%24%
33%6%5%
40%
22%
4%
10%
23%
Source: Noble
Ultra-deepwaterDeepwater
Other FloaterHigh Spec Jackup
Standard JackupOther
2011 Projection
2015 Projection
171717
Regional Updates
Alaska
Shell has filed for 2012 drilling permits, progress continues to be made
Noble has opened an Anchorage office to support drillship Noble Discoverer and Shell-owned/Noble-operated Kulluk
New two-year commitment on Noble Discoverer from Shell
US Gulf of Mexico
Heavy client pent-up demand
Permitting process improving
New deepwater discoveries support strong deepwaterpotential
All Noble active rigs have returned to full operating dayrates
Contract negotiations on semi Noble Jim Day progressingSource: Noble 17
181818
Regional Updates
Mexico
Pemex continuing to increase rig requirements
Multiple tenders expected in near-term
10 of 12 Noble jackups on contract and working, strong opportunities for continued work in 2012
Floating rig needs continue to develop
Brazil
Better than expected geology
Decision on additional deepwater capacity expected to be made by Petrobras in the near-term
Mid-water demand remains steady
Drillship Noble Leo Segerius upgrade to finish late-2011
Semi Noble Clyde Boudreaux contracted for approximately 800 days in Australia at $417,500 plus 17% bonus
Source: Noble 18
191919
Regional Updates
Africa
Deepwater rig demand expected to increase considerably beginning in the intermediate-term
Demand driven by increases in Angola, Nigeria and Ghana
Numerous emerging plays – Gulf of Guinea, East Africa, sub-salt in SW Africa
Opportunity for Noble’s deepwater fleet
North Sea
Jackup market remains tight, dayrates increasing
Operators optimistic on long-term prospects
Six of eight Noble jackupscommitted through 2012
Semi contract opportunities remain steady, extension for Noble Ton van Langeveld
Potential for newbuild HDHE jackups going forward
Source: Noble 19
202020
Regional Updates
Middle East
Increasing floating rig needs for Eastern Mediterranean
Black Sea being watched closely
Additional jackup tenders expected from Aramco
Noble’s jackup fleet in Saudi Arabia expands to four
Nine of 14 Noble jackups committed through 2012
JU3000N design an excellent fit for high-specification jackuprequirements
Source: Noble 20
Asia / Pacific
Expansive area with new offshore acreage awarded in Australia, Indonesia, Philippines and Vietnam
Jackups and floater opportunities expected to increase in India
Key area for expansion of Noble fleet
Opening office in Singapore
Deepwater emerging in South China Sea and Eastern Indonesia
2121
Noble’s Industry Leading Safety Efforts
More than just industry leading safety statistics!
The only drilling contractor to: Win the ExxonMobil sponsored Robert W.
Campbell Award for HSE excellence
Win the U.S. Minerals Management Service National SAFE Award for three consecutive years (2006, 2007, 2008)
Produce an annual sustainability report and be named to the Dow Jones Sustainability Index (DJSI)
Be granted approval work for Petrobras (Brazil) in the highly environmentally sensitive area of Aracaju
Be asked to present recommendations for improving offshore safety to the International Regulators Forum
Consistently receive the IADC North Sea Safety Excellence Awards for both jackup and semisubmersible categories
2222
Near-Term Performance Drivers
Three drillship deliveries
Progress on potential divestiture of non-core assets
Improving dayrates for ultra-deepwater rigs
Increasing strength in jackup business
Additional long-term contracts in Mexico
US Gulf of Mexico permitting progress
Noble Corporation
Dorfstrasse 19a6340 BaarSwitzerland
www.noblecorp.com
Investor contact:
Jeffrey L. Chastain Vice President Investor Relations281-276-6383