noble corporation noble: staying the course lee m. ahlstrom vice

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Noble Corporation Noble: Staying the Course Johnson Rice Energy Conference October 5-6, 2009 New Orleans Lee M. Ahlstrom Vice President, Investor Relations and Planning

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Page 1: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

Noble Corporation

Noble: Staying the Course

Johnson Rice Energy ConferenceOctober 5-6, 2009New Orleans

Lee M. AhlstromVice President, Investor Relations and Planning

Page 2: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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This presentation contains “forward-looking statements” about our business, financial performance and prospects. Statements about our plans, intentions, expectations, beliefs, estimates, predictions or similar expressions for the future are forward-looking statements. We cannot assure you that the outcomes of these forward-looking statements will be realized. Various factors could cause actual results to differ materially. We discuss these factors, including risks and uncertainties, from time to time in our SEC filings. The Company disclaims any duty to update the information presented here. The material presented is copyrighted by the Company and cannot be printed, recorded or rebroadcast without our express written consent. We have attached a reconciliation to GAAP of any non-GAAP measures appearing in this presentation. Additional information about Noble Corporation is available on our Web site at www.noblecorp.com.

Forward Looking Statement

Page 3: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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Today’s Discussion

Who is Noble?

Thoughts on the Cycle

Managing Through Uncertainty

Windows of Opportunity

Page 4: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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Noble EPS and Cash Flow

$5.85

3.08

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

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'04 '05 '06' '07 '08 '09YTD

Ca

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Flo

w f

rom

O

pe

rati

on

s($

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ou

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nd

)

$0.00

$1.00

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$5.00

$6.00

$7.00

Ea

rnin

gs p

er

Sh

are

($/

sh

are

)

Cash Flow

EPS

Who is Noble?Aligning Rigs Around Customers and Geology

43 – Jackups13 – Semisubmersibles

4 – Drillships2 – Submersibles

2009 1H Drilling Revenues by RegionTotal 1.7 Billion

U.S. GoM20% Middle East

17%

Mexico24%

North Sea*22%

West Africa*8%

Brazil9%

Note: Beginning in 2Q09, the Noble Homer Ferrington is being managed out of the North Sea divisionSource: Noble Corporation

Page 5: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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0

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25

1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

Economic RecoveryWhat We Believe: Demand Will Increase Over Time

Difficult to believe that the US populous will adjust its lifestyle downward to match the rest of the world

Much easier to believe that the rest of the world will continue to move theirs upward

Energy is not ‘the end,’ it is ‘the means to the end,’ i.e., a better lifestyle

Difficult to see how renewables will be able to contribute meaningfully in the near-term

China and U.S. per Capita Oil ConsumptionBarrels per person per year

Source: Energy Directions Inc., BP Statistical Review, Simmons Int’l;CIA Factobook, Noble

India

Japan

United States

Worldwide AverageUnited States 100 Years Ago

China

Page 6: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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Managing Through UncertaintyDeepwater Remains Strong

Floater Utilization Trends

Source: ODS Petrodata 9.30.2009

40

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Floaters > 4,000'

Floaters < 4,000'

PercentageDeepwater and ultra-deepwater floater utilization continues to be strong

Midwater floater utilization and dayrates have weakened and there are a number of idle rigs in this segment

Strategy matters!

Fleet compositionCustomer base

Page 7: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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Managing Through UncertaintyJackups Are Challenged

Jackup Utilization Trends

Source: ODS Petrodata 9.30.2009

0

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International ILCs

US GoM jackups

Percentage

International jackup utilization holding up significantly better than US Gulf of Mexico

Likewise, international dayrates no where near cash operating costs

Strategy matters!

Commodity exposureCustomer base

Page 8: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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Strategy MattersStrong Deepwater Fleet and High Quality Jackups

179 8

18

28

7 512

4

80

10

20

30

40

50

RIG NE PDE SDRL DO ESV RDC

>= 7,500'>= 4,000' < 7,500'

Deepwater and Ultra-Deepwater Rig Count

Jackup Rig Count

3 314 17 18

3519

10

6 75

12

46

12 4

4

8

8

05

3

0

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RIG NE ESV RDC DO SDRL PDE

> 400'>= 350' < 400'>= 300' < 350'< 300'Non-ILC

Source: ODS Petrodata 8.18.2009

Page 9: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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2008 Key Customers by Revenue

PEMEX

ExxonMobil

Shell

Anadarko (including farmouts)

Petrobras

Strategy MattersThe Importance of the Customer Base

National Oil Companies & Super Majors

76%

Small Independents

6%

Large Independents

18%

Approximate Backlog Composition by Customer Type

Source: Noble Corp.; As of 8.14.2009

Includes revenues fromNOC partners

Noble strategy has been to target National Oil Companies and Super Majors

Have different strategic imperatives versus independentsTend to maintain activity levels through cycle troughs

Commodity price stabilization expected to lead to increased activity levels in 2009 vs. 2010

53% of companies surveyed in Barclay’s Original E&P Spending Survey-Mid-Year Update expected their 2010 capital spending to increaseDnBNor’s recent spending survey suggests 2010 spending levels will be similar to 2008 with National Oil Companies leading the way

Page 10: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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What to Do While Waiting for the Recovery?

Take advantage of downtime to complete needed shipyard inspections, repairs, and upgrades

Focus on driving costs and maintaining margins

Continue to build backlog

Deliver our shipyard projects

Look for opportunities to grow the fleet

Manage the balance sheet wisely

Learn French

It’s a Cyclical Business, and We Know How to Manage It

Page 11: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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20082009 1H

Managing Through Uncertainty Top Operating Margins

NE ESV DO RIG RDC PDE

2008 Full Year and 2009 First Half Contract Drilling Margins

75%

65

55

45

Note: The margins for Rowan Companies represent the combined offshore and onshore businessSource: Noble Corporation; Peer press releases

Page 12: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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$2,660

$420

$840

$95

$1,075$1,125

$1,800

$927

$3,300

$2,700

$1,900

$1,200

0

500

1,000

1,500

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3,000

3,500

2005 2006 2007 2008 2009 H1 &Remaining(Does notinclude Q3

YTD)

2010 2011 2012 2013 2014 2015 2016

JackupBacklog

DeepwaterBacklog

Historical Contract Drilling Services

Managing Through Uncertainty Backlog of $8.9 billion

Historical Revenues and Backlog Potential by Year$ Million

Notes: As of 9.30.2009Includes 75% performance bonus potential on rigs in Brazil including the Noble Dave Beard. Includes 5 year term on Noble Paul Wolff and paid shipyard time for the three drillship projects in Brazil. Assumes constant rates on the five jackups in Mexico where rates are indexed to international markets. Backlog includes Letters of Intent and newbuild rigs with contracts. Newbuild client contracts contain termination provisions for late delivery.

$

EPS $1.08 $2.67 $4.48 $5.85 H1: $3.08

Page 13: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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RDC NE RIG ESV PDE DONE RIG ESV RDC PDE DO

Managing Through Uncertainty Strong Jackup Position vs. Competitors

Percentage of Jackup Rig Days Contracted

2009 Remaining 2010

100%

75

50

25

100%

75

50

25

Source: ODS Petrodata; Data as of 9.30.09

Page 14: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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Growing Shareholder ValueNewbuild Construction Update

Noble Scott MarksLast of three 400’ JU-2000E harsh environment jackups was unloaded in Rotterdam August 18, 2009Commenced two-year contract with Venture Production plc in the North Sea

Noble Dave Beard10,000’ DP2 Semi-submersibleCompleting construction and commissioning in BrazilExpected to commence five-year contract with Petrobras in Brazil on January 1, 2010Delivery schedule successfully renegotiated with Petrobras to mitigate late delivery penalty

Page 15: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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Growing Shareholder ValueNewbuild Construction Update

Noble Danny Adkins12,000’ DP3 Semi-submersibleExpect to depart shipyard in Singapore at the end of SeptemberExpected to commence four-year contract with Shell in the US GoM in February 2010Delivery schedule successfully renegotiated for mutual benefit

Noble Jim Day12,000’ DP3 Semi-submersibleExpect to depart shipyard in Singapore in April 2010Expected to commence four-year contract with Marathon Oil in August 2010

Page 16: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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Globetrotter-Class NewbuildNoble’s Next-Generation Drillship

EconomicsConstruction Cost: $585 MMDelivery: Second half 2011Estimated OPEX: $120k per dayResults at a dayrate of $550k

Estimated IRR: >16 %Estimated 2012 EPS: ~$0.40Estimated 2012 CFPS: ~$0.45

SpecificationsWater depth: 10,000’Length: 620’Breadth: 105’Displacement: 59,500 tonsDrilling depth: 40,000’VDL: 19,800 tonsQuarters: 180DP-3

Page 17: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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Operational ExcellenceDelivering for Our Customers

AMERICA’S Safest Companies

Offshore EnergyAchievement Award –

HSE Category

National Offshore Safety Award for

Excellence (Three consecutive

years)Named to

BusinessWeek’s Top 50 Companies for 2009

Named to Fortune’s Top 100 Fastest-Growing Companies for 2009

Page 18: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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Operational Excellence Keeping Our People Safe

Historical Safety Performance Noble’s Philosophy on Safety

Recordable Incident RatesNoble vs. IADC

Source: Noble Corporation and the IADC. *2009 YTD IADC based on preliminary data

Noble IADC

Why It Matters.0

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*Good safety results in outstanding employee moraleGood safety performance means fewer employee injuries and lowers direct and indirect operating costsContractor safety is a key metric used by operators in bid evaluations

Safety is paradigm of the organization and must not be compromisedA competitive environment internally drives better HSE performance Higher HSE standards improve the entire industry’s resultsHSE performance must be measured and benchmarkedA solid HSE management system is critical to success

Page 19: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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Windows of Opportunity The Strength of Noble’s Optionality

Start with a Clean Balance Sheet...

…Enhanced by Strong Free Cash Flow

Add a Strategic Goal of Growing the Deepwater Element of the Fleet…

…Combined with a Disciplined Investment Philosophy…

OPTIONALITY!

Value-AddingAcquisitions

Returns toShareholders

Build DryPowder

Page 20: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

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9.8

7.0

11.6

7.0

14.5

9.8

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NE RIG DO ESV RDC PDE

Windows of OpportunityFor Investors

2010 First Call Price/Earnings Ratio

Source: First Call; Noble; calculated based on EPS estimates and share closing prices on 8.28.2009.

Despite…Strong backlogGrowing deepwater fleetPreferred customer baseTop operating marginsClean balance sheetDisciplined investment strategyIndustry-leading safety performance

…Noble trades at a discount to the peer group

Now is the time to invest…Right Focus…Right People…Right Assets…Right Now!

Page 21: Noble Corporation Noble: Staying the Course Lee M. Ahlstrom Vice

Noble Corporation

Noble Corporation 4-6 Avenue IndustrielleCH-1227 CarougeGenève, Switzerland

www.noblecorp.com

Investor contact:

Lee M. AhlstromVice President IR & Planning281-276-6440