Noble Corporation Dorfstrasse 19a 6340 Baar Switzerland |
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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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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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September 30, | December 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
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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 |
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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 |
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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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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 |
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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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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 |
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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 |
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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 |
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Jackups: |
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Average Rig Utilization |
82 | % | 77 | % | 71 | % | ||||||||||||||||||||||||||||||
Operating Days |
3,229 | 3,032 | 2,797 | |||||||||||||||||||||||||||||||||
Average Dayrate |
$ | 89,352 | $ | 90,791 | $ | 80,742 | ||||||||||||||||||||||||||||||
Semisubmersibles: |
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Average Rig Utilization |
84 | % | 90 | % | 85 | % | ||||||||||||||||||||||||||||||
Operating Days |
1,086 | 1,057 | 1,088 | |||||||||||||||||||||||||||||||||
Average Dayrate |
$ | 315,034 | $ | 172,727 | $ | 269,798 | ||||||||||||||||||||||||||||||
Drillships: |
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Average Rig Utilization |
60 | % | 100 | % | 58 | % | ||||||||||||||||||||||||||||||
Operating Days |
329 | 468 | 317 | |||||||||||||||||||||||||||||||||
Average Dayrate |
$ | 225,669 | $ | 229,963 | $ | 220,953 | ||||||||||||||||||||||||||||||
FPSO/Submersibles: |
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Average Rig Utilization |
0 | % | 26 | % | 0 | % | ||||||||||||||||||||||||||||||
Operating Days |
— | 64 | — | |||||||||||||||||||||||||||||||||
Average Dayrate |
$ | — | $ | 304,000 | $ | — | ||||||||||||||||||||||||||||||
Total: |
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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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Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Allocation of net income |
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Basic |
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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 |
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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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