ZUG, Switzerland, Oct. 21 /PRNewswire-FirstCall/ -- Noble Corporation today reported third quarter 2009 earnings of $426 million, or $1.63 per diluted share, versus earnings of $383 million, or $1.42 per diluted share, for the third quarter of last year. The results for the third quarter 2009 include a net tax benefit of $0.05 per share related to the settlement of tax assessments in various locales and other discrete items.

Contract drilling services revenues for the third quarter 2009 were $875 million, up 4.8 percent from the third quarter 2008. Contract drilling margins for the third quarter 2009 were approximately 71 percent, generating $517 million in net cash provided by operating activities. Noble invested $367 million in capital projects during the quarter.

"At Noble, we are continuing to drive performance," said David W. Williams, Chairman, President and Chief Executive Officer. "Our earnings continue to benefit from the strength of our backlog, the revenue contribution from our newbuilds going into service and, most importantly, the outstanding performance of our crews."

During the third quarter 2009, the Company repurchased 2.0 million shares, bringing year-to-date total repurchases to 3.7 million shares at an average price per share of $30.35 and a total cost of $113 million.

Highlights

In the North Sea, the last of the Company's three newbuild jackups, the Noble Scott Marks, commenced operations in the third quarter under a two-year contract with Venture Production at a dayrate of approximately $213,000. Also in that region, the Company announced a series of new commitments during the quarter: the Noble Al White is undergoing upgrades and regulatory inspection before returning to work under an 18-month contract with Total in mid-December 2009 at a dayrate of $112,000; the Noble George Sauvageau has secured a contract for one year at a dayrate of $118,000; and the Noble Piet van Ede has secured an additional commitment which is expected to last into the fourth quarter of 2010 at dayrates ranging from $109,000 to $152,000. In West Africa, the Noble Lloyd Noble returned to work after securing a series of jobs in Nigeria at dayrates of between $90,000 and $95,000 through February 2010.

Subsequent to the quarter close, the dynamically positioned ultra-deepwater semisubmersible Noble Danny Adkins departed Singapore after conducting a series of successful sea trials. The unit is under wet tow to the U.S. Gulf of Mexico where it is expected to undergo final provisioning before commencing its four-year contract with Shell in the first quarter of 2010. The unit is contracted at a dayrate of $447,000.

"We believe that the current commodity price environment in the midst of the 2010 budget cycle bodes well for activity levels next year," said Williams.

About Noble

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 62 offshore drilling units (including three 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, and West Africa. 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 at http://www.noblecorp.com/.

Statements regarding earnings, costs, revenue, rig demand, fleet performance, contract commitments and backlog, dayrates, contract commencements, newbuilds, industry fundamentals, 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 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 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.

Conference Call

Noble will host a conference call and web cast related to its third quarter 2009 results on Thursday, October 22, 2009, at 8:00 a.m. Central 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: 72481445 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 22, 2009, beginning at 11:00 a.m., Central Time, through Friday, October 30, 2009, ending at 5:00 p.m., Central 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: 72481445. 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." All individuals listening to the conference call or the replay are reminded that all conference call material is copyrighted by the Company and cannot be recorded or rebroadcast without the Company's express written consent.

NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Operating revenues Contract drilling services $874,969 $835,198 $2,615,571 $2,416,312 Reimbursables 22,455 18,087 61,967 71,509 Labor contract drilling services 7,490 8,197 21,843 47,346 Other 721 499 1,277 1,180 --- --- ----- ----- 905,635 861,981 2,700,658 2,536,347 ------- ------- --------- --------- Operating costs and expenses Contract drilling services 250,842 253,729 742,752 746,117 Reimbursables 18,717 16,494 52,081 63,786 Labor contract drilling services 4,642 5,410 13,899 37,294 Depreciation and amortization 103,245 92,671 295,646 263,406 Selling, general and administrative 21,700 16,027 60,901 56,967 (Gain)/loss on asset disposal/ involuntary conversion, net 2,076 10,000 31,053 (25,521) ----- ------ ------ ------- 401,222 394,331 1,196,332 1,142,049 ------- ------- --------- --------- Operating income 504,413 467,650 1,504,326 1,394,298 Other income (expense) Interest expense, net of amount capitalized (379) (601) (1,261) (2,432) Interest income and other, net 2,605 2,304 4,995 7,013 ----- ----- ----- ----- Income before income taxes 506,639 469,353 1,508,060 1,398,879 Income tax provision (80,556) (86,831) (275,833) (256,451) ------- ------- -------- -------- Net income $426,083 $382,522 $1,232,227 $1,142,428 ======== ======== ========== ========== Net income per share Basic $ 1.63 $ 1.43 $ 4.72 $ 4.26 Diluted $ 1.63 $ 1.42 $ 4.70 $ 4.23 NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) September 30, December 31, 2009 2008 ---- ---- ASSETS Current assets Cash and cash equivalents $ 756,093 $ 513,311 Accounts receivable 717,718 644,840 Insurance receivables 32,302 13,516 Prepaid expenses 41,897 21,207 Other current assets 55,505 47,467 ------ ------ Total current assets 1,603,515 1,240,341 --------- --------- Property and equipment Drilling equipment and facilities 8,182,537 7,427,908 Other 114,908 105,340 ------- ------- 8,297,445 7,533,248 Accumulated depreciation (2,091,011) (1,886,231) ---------- ---------- 6,206,434 5,647,017 --------- --------- Other assets 279,426 219,441 ------- ------- Total assets $8,089,375 $7,106,799 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current maturities of long-term debt $- $ 172,698 Accounts payable 232,713 259,107 Accrued payroll and related costs 87,569 75,449 Taxes payable 103,714 107,211 Interest payable 7,267 11,325 Other current liabilities 66,419 53,203 ------ ------ Total current liabilities 497,682 678,993 ------- ------- Long-term debt 750,906 750,789 Deferred income taxes 293,281 265,018 Other liabilities 130,566 121,284 ------- ------- Total liabilities 1,672,435 1,816,084 --------- --------- Commitments and contingencies Shareholders' equity Shares - par value 4.90 Swiss francs per share; 414,399 shares authorized, 138,133 additional shares conditionally authorized, 276,266 shares issued and 261,425 shares outstanding as of September 30, 2009; 1,141,611 - Ordinary shares - par value $.10 per share; 400,000 shares authorized; 261,899 shares issued and outstanding at December 31, 2008 - 26,190 Capital in excess of par value - 402,115 Retained earnings 5,398,530 4,919,667 Treasury shares - 2,000 shares held (69,430) - Accumulated other comprehensive loss (53,771) (57,257) ------- ------- Total shareholders' equity 6,416,940 5,290,715 --------- --------- Total liabilities and shareholders' equity $8,089,375 $7,106,799 ========== ========== NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended September 30, ------------- 2009 2008 ---- ---- Cash flows from operating activities Net income $1,232,227 $1,142,428 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 295,646 263,406 (Gain)/loss on asset disposal/involuntary conversion, net 31,053 (25,521) Deferred income tax provision 29,916 14,102 Share-based compensation expense 28,543 28,274 Pension contributions (13,022) (17,445) Other changes in current assets and liabilities: Accounts receivable (88,773) (49,063) Other current assets (45,607) (26,572) Other assets 2,609 (8,853) Accounts payable 10,099 (2,406) Other current liabilities 39,273 8,397 Other liabilities (6,751) 4,918 ------ ----- Net cash from operating activities 1,515,213 1,331,665 --------- --------- Cash flows from investing activities New construction (457,233) (563,349) Other capital expenditures (342,399) (243,843) Major maintenance expenditures (93,112) (72,918) Accrued capital expenditures (44,493) 92,719 Hurricane insurance receivables - 21,747 Proceeds from disposal of assets - 39,134 --- ------ Net cash from investing activities (937,237) (726,510) -------- -------- Cash flows from financing activities Payments on bank credit facilities - (50,000) Payments of other long-term debt (172,700) (7,682) Net proceeds from employee stock transactions 2,896 10,070 Dividends/par value reduction payments paid (35,093) (233,638) Repurchases of ordinary shares (130,297) (271,310) -------- -------- Net cash from financing activities (335,194) (552,560) -------- -------- Net increase in cash and cash equivalents 242,782 52,595 Cash and cash equivalents, beginning of period 513,311 161,058 ------- ------- Cash and cash equivalents, end of period $ 756,093 $ 213,653 ======== ======== 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, ------------- 2009 ---- Contract Drilling Services Other Total -------- ----- ----- Operating revenues Contract drilling services $874,969 $ - $874,969 Reimbursables 21,511 944 22,455 Labor contract drilling services - 7,490 7,490 Other 509 212 721 --- --- --- $896,989 $8,646 $905,635 ======== ====== ======== Operating costs and expenses Contract drilling services $250,842 $ - $250,842 Reimbursables 17,811 906 18,717 Labor contract drilling services - 4,642 4,642 Depreciation and amortization 100,669 2,576 103,245 Selling, general and administrative 21,629 71 21,700 (Gain)/loss on asset disposal/involuntary conversion, net 2,076 - 2,076 ----- --- ----- $393,027 $8,195 $401,222 ======== ====== ======== Operating income $503,962 $ 451 $504,413 ======== ==== ======== Operating statistics Jackups: Average Rig Utilization 80% Operating Days 3,183 Average Dayrate $143,388 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 98% Operating Days 631 Average Dayrate $434,435 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 100% Operating Days 276 Average Dayrate $261,167 Drillships: Average Rig Utilization 100% Operating Days 276 Average Dayrate $243,186 Submersibles: Average Rig Utilization 42% Operating Days 78 Average Dayrate $ 65,944 Total: Average Rig Utilization 83% Operating Days 4,444 Average Dayrate $196,900 Three Months Ended September 30, ------------- 2008 ---- Contract Drilling Services Other Total -------- ----- ----- Operating revenues Contract drilling services $835,198 $ - $835,198 Reimbursables 17,227 860 18,087 Labor contract drilling services - 8,197 8,197 Other 94 405 499 --- --- --- $852,519 $9,462 $861,981 ======== ====== ======== Operating costs and expenses Contract drilling services $253,729 $ - $253,729 Reimbursables 15,604 890 16,494 Labor contract drilling services - 5,410 5,410 Depreciation and amortization 90,923 1,748 92,671 Selling, general and administrative 15,886 141 16,027 (Gain)/loss on asset disposal/involuntary conversion, net 10,000 - 10,000 ------ --- ------ $386,142 $8,189 $394,331 ======== ====== ======== Operating income $466,377 $1,273 $467,650 ======== ====== ======== Operating statistics Jackups: Average Rig Utilization 91% Operating Days 3,444 Average Dayrate $150,350 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 95% Operating Days 613 Average Dayrate $329,586 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 100% Operating Days 276 Average Dayrate $237,674 Drillships: Average Rig Utilization 67% Operating Days 184 Average Dayrate $214,758 Submersibles: Average Rig Utilization 67% Operating Days 184 Average Dayrate $ 55,117 Total: Average Rig Utilization 90% Operating Days 4,701 Average Dayrate $177,683 Three Months Ended June 30, -------- 2009 ---- Contract Drilling Services Other Total -------- ----- ----- Operating revenues Contract drilling services $868,205 $ - $868,205 Reimbursables 22,295 539 22,834 Labor contract drilling services - 7,419 7,419 Other 414 - 414 --- --- --- $890,914 $7,958 $898,872 ======== ====== ======== Operating costs and expenses Contract drilling services $251,054 $ - $251,054 Reimbursables 18,754 527 19,281 Labor contract drilling services - 4,881 4,881 Depreciation and amortization 96,952 2,465 99,417 Selling, general and administrative 21,411 73 21,484 (Gain)/loss on asset disposal/involuntary conversion, net 16,943 - 16,943 ------ --- ------ $405,114 $7,946 $413,060 ======== ====== ======== Operating income $485,800 $ 12 $485,812 ======== === ======== Operating statistics Jackups: Average Rig Utilization 80% Operating Days 3,076 Average Dayrate $157,381 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 94% Operating Days 596 Average Dayrate $408,510 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 100% Operating Days 273 Average Dayrate $251,945 Drillships: Average Rig Utilization 100% Operating Days 273 Average Dayrate $226,187 Submersibles: Average Rig Utilization 88% Operating Days 161 Average Dayrate $ 63,324 Total: Average Rig Utilization 84% Operating Days 4,379 Average Dayrate $198,270 NOBLE CORPORATION AND SUBSIDIARIES 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, ------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ---- Allocation of net income Basic Net income $426,083 $382,522 $1,232,227 $1,142,428 Earnings allocated to unvested share-based payment awards (4,520) (3,362) (12,176) (9,674) ------ ------ ------- ------ Net income to common shareholders - basic $421,563 $379,160 $1,220,051 $1,132,754 ======== ======== ========== ========== Diluted Net income $426,083 $382,522 $1,232,227 $1,142,428 Earnings allocated to unvested share-based payment awards (4,505) (3,342) (12,141) (9,622) ------ ------ ------- ------ Net income to common shareholders - diluted $421,578 $379,180 $1,220,086 $1,132,806 ======== ======== ========== ========== Weighted average number of shares outstanding - basic 257,913 264,746 258,550 265,883 Incremental shares issuable from assumed exercise of stock options 925 1,656 778 1,862 --- ----- --- ----- Weighted average number of shares outstanding - diluted 258,838 266,402 259,328 267,745 ======= ======= ======= ======= Weighted average unvested share- based payment awards 2,765 2,348 2,581 2,223 ===== ===== ===== ===== Earnings per share Basic $ 1.63 $ 1.43 $ 4.72 $ 4.26 Diluted $ 1.63 $ 1.42 $ 4.70 $ 4.23

Noble Corporation

CONTACT: Investors, Lee M. Ahlstrom, Vice President - Investor Relations
and Planning, +1-281-276-6440, or Media, John S. Breed, Director of Corporate
Communications, +1-281-276-6729, both of Noble Drilling Services Inc.

Web Site: http://www.noblecorp.com/