Noble Corporation Reports First Quarter Earnings of $1.58 per Share

SUGAR LAND, Texas, April 22 /PRNewswire-FirstCall/ -- Noble Corporation today reported first quarter 2009 earnings of $414 million, or $1.58 per diluted share, versus $384 million, or $1.42 per diluted share, for the first quarter of last year. Per share earnings were in line with the fourth quarter 2008 earnings of $1.58 per diluted share. The results for the first quarter 2009 include net after-tax charges of $0.04 per share primarily related to an impairment charge taken for the Noble Fri Rodli, as a result of a decision to evaluate disposition alternatives for this submersible drilling unit.

Contract drilling services revenues for the 2009 first quarter were $872 million, up 9.3 percent from the year-earlier quarter. Contract drilling margins for the first quarter 2009 were approximately 72 percent, generating $548 million in net cash provided by operating activities. Noble invested $251 million in capital projects during the quarter. Debt as a percentage of total capitalization declined to 11.7 percent at March 31, 2009, from approximately 14.9 percent at the end of the fourth quarter of 2008.

"Despite a turbulent global economy and pressure on demand for drilling services, the strength of our $10.6 billion backlog and focus on execution enabled us to deliver another great quarter," said David W. Williams, Chairman, President and Chief Executive Officer. "We remain committed to maintaining our financial flexibility through the disciplined execution of our capital program, continued improvement in our cost structure and the active pursuit of opportunities to create shareholder value."

During the first quarter, Noble repurchased approximately 1.7 million shares at an average cost per share of $25.28. At the end of the first quarter 2009, the Company had approximately 16.6 million shares remaining on its existing repurchase authorization.

Highlights

Noble's newbuild deepwater semisubmersible Noble Dave Beard arrived in Brazil to undergo final outfitting and commissioning before commencement of a five year contract, which is expected to occur in the fourth quarter of 2009. In the U.S. Gulf of Mexico, the Company reached an agreement with Noble Energy to substitute the Noble Clyde Boudreaux for the Noble Paul Romano in fulfillment of a two year commitment at a dayrate of $605,000. This strategic substitution will accelerate earnings for the Company and allow our customer earlier commencement of its planned drilling program. The Noble Clyde Boudreaux will commence operations for Noble Energy following the conclusion of its current commitment in the fourth quarter of 2009. The Noble Paul Romano will be available in the first quarter of 2010.

The Company's newbuild jackup Noble Hans Deul commenced operations during the first quarter 2009 under its contract with Shell. Additionally, the Company's Noble Roy Butler and Noble Carl Norberg completed their moves from West Africa to Mexico, and commenced separate contracts with PEMEX in March.

During the quarter, the Company also completed its previously disclosed change in place of incorporation from the Cayman Islands to Switzerland.

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 five rigs currently under construction) located worldwide, including in the Middle East, India, the U.S. Gulf of Mexico, Mexico, the North Sea, Brazil, and West Africa. Noble's shares are traded on the New York Stock Exchange under the symbol "NE".

Statements regarding contract commitments, dayrates, contract commencements, newbuilds, industry fundamentals, global economic conditions, financial strength, contract backlog, customer base, 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 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 conduct its earnings related conference call on Thursday, April 23, 2009, at 1:00 p.m. Central Daylight Time. Interested parties are invited to listen to the call by dialing [phone], or internationally [phone], using access code: 72479162 or by asking for the Noble Corporation conference call. A replay of the conference call will be available on Thursday, April 23, 2009, beginning at 5:00 p.m., Central Daylight Time, through Friday, May 1, 2009 ending at 5:00 p.m. Central Daylight Time. The phone number for the conference call replay is [phone] or internationally [phone], using access code: 72479162. 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 March 31, --------- 2009 2008 ---- ---- Operating revenues Contract drilling services $872,397 $797,834 Reimbursables 16,678 32,458 Labor contract drilling services 6,934 30,931 Other 142 202 --- --- 896,151 861,425 ------- ------- Operating costs and expenses Contract drilling services 240,856 235,952 Reimbursables 14,083 29,461 Labor contract drilling services 4,376 25,337 Depreciation and amortization 92,984 82,899 Selling, general and administrative 17,717 21,273 Loss on planned disposal of assets 12,034 - ------ --- 382,050 394,922 ------- ------- Operating income 514,101 466,503 Other income (expense) Interest expense, net of amount capitalized (521) (1,110) Interest income and other, net 1,072 3,129 ----- ----- Income before income taxes 514,652 468,522 Income tax provision (100,357) (84,334) -------- ------- Net income $414,295 $384,188 ======== ======== Net income per share Basic $ 1.58 $ 1.43 Diluted $ 1.58 $ 1.42 NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) March 31, December 31, 2009 2008 ---- ---- ASSETS Current assets Cash and cash equivalents $ 513,743 $ 513,311 Accounts receivable 632,901 644,840 Insurance receivables 22,998 13,516 Prepaid expenses 50,976 21,207 Other current assets 42,659 47,467 ------ ------ Total current assets 1,263,277 1,240,341 --------- --------- Property and equipment Drilling equipment and facilities 7,626,641 7,423,440 Other 109,724 105,340 ------- ------- 7,736,365 7,528,780 Accumulated depreciation (1,944,259) (1,886,231) ---------- ---------- 5,792,106 5,642,549 --------- --------- Other assets 247,920 219,441 ------- ------- Total assets $7,303,303 $7,102,331 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Current maturities of long-term debt $ - $ 172,698 Accounts payable 218,167 259,107 Accrued payroll and related costs 63,004 75,449 Taxes payable 142,177 107,211 Interest payable 7,269 11,325 Other current liabilities 53,575 53,203 ------ ------ Total current liabilities 484,192 678,993 ------- ------- Long-term debt 750,827 750,789 Deferred income taxes 273,510 265,018 Other liabilities 142,220 116,816 ------- ------- Total liabilities 1,650,749 1,811,616 --------- --------- Commitments and contingencies Shareholders' equity Shares - par value 5.00 Swiss francs per share; 414,399 shares authorized, 138,133 additional shares conditionally authorized, 276,266 shares issued and 261,250 shares outstanding as of March 31, 2009; Ordinary shares - par value $.10 per share; 400,000 shares authorized; 261,899 shares issued and outstanding at December 31, 2008 1,229,155 26,190 Capital in excess of par value - 402,115 Retained earnings 4,480,737 4,919,667 Accumulated other comprehensive loss (57,338) (57,257) ------- ------- Total shareholders' equity 5,652,554 5,290,715 --------- --------- Total liabilities and shareholders' equity $7,303,303 $7,102,331 ========== ========== NOBLE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three Months Ended March 31, --------- 2009 2008 ---- ---- Cash flows from operating activities Net income $414,295 $384,188 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 92,984 82,899 Impairment loss on assets 12,034 - Deferred income tax provision 4,545 9,840 Share-based compensation expense 8,400 8,716 Pension contributions (1,290) (3,183) Other, net (5,875) 1,380 Other changes in current assets and liabilities: Accounts receivable 11,939 36,134 Other current assets (31,729) (24,949) Accounts payable 23,711 3,278 Other current liabilities 18,820 (5,606) ------ ------ Net cash from operating activities 547,834 492,697 ------- ------- Cash flows from investing activities New construction (135,576) (134,380) Other capital expenditures (89,505) (76,673) Major maintenance expenditures (25,639) (22,935) Accrued capital expenditures (47,259) (32,481) Hurricane insurance receivables - 21,747 Proceeds from disposal of assets - 282 --- --- Net cash from investing activities (297,979) (244,440) -------- -------- Cash flows from financing activities Payments on bank credit facilities - (50,000) Payments of other long-term debt (172,700) (2,516) Net proceeds from employee stock transactions (5,386) 115 Dividends paid (10,470) (10,746) Repurchases of ordinary shares (60,867) (26,571) ------- ------- Net cash from financing activities (249,423) (89,718) -------- ------- Net increase in cash and cash equivalents 432 158,539 Cash and cash equivalents, beginning of period 513,311 161,058 ------- ------- Cash and cash equivalents, end of period $513,743 $319,597 ======== ======== NOBLE CORPORATION AND SUBSIDIARIES FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT (In thousands, except utilization amounts, operating days and average dayrates) (Unaudited) Three Months Ended March 31, ---------------------------- 2009 ---- Contract Drilling Services Other Total -------- ----- ----- Operating revenues Contract drilling services $872,397 $ - $872,397 Reimbursables 16,156 522 16,678 Labor contract drilling services - 6,934 6,934 Other 127 15 142 --- --- --- $888,680 $7,471 $896,151 ======== ====== ======== Operating costs and expenses Contract drilling services $240,856 $ - $240,856 Reimbursables 13,589 494 14,083 Labor contract drilling services - 4,376 4,376 Depreciation and amortization 90,898 2,086 92,984 Selling, general and administrative 17,667 50 17,717 (Gain)/loss on disposal and planned disposal of assets, net 12,034 - 12,034 ------ --- ------ $375,044 $7,006 $382,050 ======== ====== ======== Operating income $513,636 $ 465 $514,101 ======== ==== ======== Operating statistics Jackups: Average Rig Utilization 86% Operating Days 3,242 Average Dayrate $158,359 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 100% Operating Days 630 Average Dayrate $369,988 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 100% Operating Days 270 Average Dayrate $246,118 Drillships: Average Rig Utilization 62% Operating Days 168 Average Dayrate $291,854 Submersibles: Average Rig Utilization 67% Operating Days 180 Average Dayrate $ 58,452 Total: Average Rig Utilization 86% Operating Days 4,490 Average Dayrate $194,308 NOBLE CORPORATION AND SUBSIDIARIES FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT (In thousands, except utilization amounts, operating days and average dayrates) (Unaudited) Three Months Ended March 31, ---------------------------- 2008 ---- Contract Drilling Services Other Total -------- ----- ----- Operating revenues Contract drilling services $797,834 $ - $797,834 Reimbursables 21,166 11,292 32,458 Labor contract drilling services - 30,931 30,931 Other 187 15 202 --- --- --- $819,187 $42,238 $861,425 ======== ======= ======== Operating costs and expenses Contract drilling services $235,952 $ - $235,952 Reimbursables 18,753 10,708 29,461 Labor contract drilling services - 25,337 25,337 Depreciation and amortization 80,785 2,114 82,899 Selling, general and administrative 19,896 1,377 21,273 (Gain)/loss on disposal and planned disposal of assets, net - - - --- --- --- $355,386 $39,536 $394,922 ======== ======= ======== Operating income $463,801 $ 2,702 $466,503 ======== ====== ======== Operating statistics Jackups: Average Rig Utilization 97% Operating Days 3,601 Average Dayrate $145,337 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 100% Operating Days 637 Average Dayrate $291,924 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 100% Operating Days 273 Average Dayrate $201,699 Drillships: Average Rig Utilization 67% Operating Days 182 Average Dayrate $133,665 Submersibles: Average Rig Utilization 66% Operating Days 179 Average Dayrate $ 51,274 Total: Average Rig Utilization 94% Operating Days 4,872 Average Dayrate $163,772 NOBLE CORPORATION AND SUBSIDIARIES FINANCIAL AND OPERATIONAL INFORMATION BY SEGMENT (In thousands, except utilization amounts, operating days and average dayrates) (Unaudited) Three Months Ended December 31, ------------------------------- 2008 ---- Contract Drilling Services Other Total -------- ----- ----- Operating revenues Contract drilling services $882,538 $ - $882,538 Reimbursables 18,060 1,280 19,340 Labor contract drilling services - 7,732 7,732 Other 530 14 544 --- --- --- $901,128 $9,026 $910,154 ======== ====== ======== Operating costs and expenses Contract drilling services $265,765 $ - $265,765 Reimbursables 14,329 1,212 15,541 Labor contract drilling services - 5,279 5,279 Depreciation and amortization 91,104 2,148 93,252 Selling, general and administrative 17,073 103 17,176 (Gain)/loss on disposal and planned disposal of assets, net - (964) (964) --- ---- ---- $388,271 $7,778 $396,049 ======== ====== ======== Operating income $512,857 $1,248 $514,105 ======== ====== ======== Operating statistics Jackups: Average Rig Utilization 88% Operating Days 3,354 Average Dayrate $151,601 Semisubmersibles - (6,000 feet or greater): Average Rig Utilization 100% Operating Days 644 Average Dayrate $364,180 Semisubmersibles - (less than 6,000 feet): Average Rig Utilization 100% Operating Days 276 Average Dayrate $249,603 Drillships: Average Rig Utilization 67% Operating Days 184 Average Dayrate $326,170 Submersibles: Average Rig Utilization 67% Operating Days 184 Average Dayrate $ 56,903 Total: Average Rig Utilization 88% Operating Days 4,642 Average Dayrate $190,137 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 March 31, --------- 2009 2008 ---- ---- Allocation of net income Basic Net income $414,295 $384,188 Earnings allocated to unvested share-based payment awards (3,461) (2,911) ------ ------ Net income to common shareholders - basic $410,834 $381,277 ======== ======== Diluted Net income $414,295 $384,188 Earnings allocated to unvested share-based payment awards (3,454) (2,890) ------ ------ Net income to common shareholders - diluted $410,841 $381,298 ======== ======== Weighted average number of shares outstanding - basic 259,266 266,451 Incremental shares issuable from assumed exercise of stock options 564 1,884 --- ----- Weighted average number of shares outstanding -diluted 259,830 268,335 ======= ======= Earnings per share Basic $ 1.58 $ 1.43 Diluted $ 1.58 $ 1.42

Noble Corporation

CONTACT: investors, Lee M. Ahlstrom, Vice President - Investor Relations
and Planning, [phone], or media, John S. Breed, Director of Corporate
Communications, [phone], both of Noble Drilling Services Inc.

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