The Second Quarter Marks An Important Inflection In Noble’s Financial Results

NOBLE CORPORATION REPORTS SECOND QUARTER 2022 RESULTS

August 08, 2022

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• Business combination with Maersk Drilling is anticipated to close on October 3, 2022
• Q2 Total Revenue of $275 million, an increase of 31% quarter-over-quarter
• Q2 Net Income of $37 million and Adjusted EBITDA of $84 million
• Q2 Cash Flow from Operations of $88 million and Free Cash Flow of $56 million

SUGAR LAND, Texas, Aug. 8, 2022 /PRNewswire/ — Noble Corporation (NYSE: NE, “Noble”, or the “Company”) today reported second quarter 2022 results.

	Successor
	Three Months Ended
(stated in millions, except per share amounts)	June 30, 2022		June 30, 2021		March 31, 2022
Total Revenue	$                   275		$                   219		$                   210
Contract Drilling Services Revenue	262		200		195
Net Income (Loss)	37		20		(37)
Adjusted EBITDA*	84		10		27
Adjusted Net Income (Loss)*	33		(25)		(8)
Diluted Earnings (Loss) Per Share	0.45		0.30		(0.54)
Adjusted Diluted Earnings (Loss) Per Share*	0.40		(0.37)		(0.12)
* A Non-GAAP supporting schedule is included with the statements and schedules attached to this press release.

Robert W. Eifler, President and Chief Executive Officer of Noble Corporation, stated, “The second quarter marks an important inflection in Noble’s financial results. As signaled previously, we expect to produce meaningful step-ups in earnings as we move through 2022, and we delivered on the first step-up during this quarter. Our second quarter results, which are underpinned by strong operational performance, highlight the ability of the Noble platform to deliver long-term value for our shareholders. As our organization prepares to complete the business combination with Maersk Drilling, we remain focused on providing world-class service to our customers and operating safely every day.”

Second Quarter Results

Contract drilling services revenue for the second quarter of 2022 totaled $262 million compared to $195 million in the first quarter. Marketed fleet utilization was 85 percent in the three months ended June 30, 2022, compared to 75 percent in the previous quarter.  Contract drilling services costs for the second quarter were $178 million, up from $166 million in the first quarter of 2022. 

Adjusted EBITDA for the three months ended June 30, 2022, was $84 million compared to $27 million in the first quarter of 2022. Capital expenditures totaled $31 million in the second quarter. 

Net cash provided by operating activities for the three months ended June 30, 2022, was $88 million and free cash flow was $56 million for the same period.

Operating Highlights and Backlog

Noble’s marketed floater fleet was 100% contracted in the second quarter. The Noble Faye Kozack was awarded a one-well contract with LLOG for work in the U.S. Gulf of Mexico at a rate of $420,000 per day. The contract includes managed pressure drilling services and is expected to commence in late 2022 or early 2023. In Suriname, APA Corp executed its second option for the Noble Gerry de Souza and is expected to novate the rig to TotalEnergies for one well. The Noble Globetrotter I recently concluded with Shell and demobilized to complete routine maintenance following that 10-year contract. Following its brief out-of-service period, the rig is scheduled to mobilize to Mexico during the third quarter to commence work for CNOOC and Petronas. Additionally, during the second quarter, the four drillships under the Commercial Enabling Agreement were awarded 7.4 years of incremental term in connection with the sanctioning of the Yellowtail development in Guyana.

In the second quarter, the Noble Regina Allen commenced operations in Guyana for Repsol and, after completion of its current program, is scheduled to return to Trinidad and Tobago to drill six firm wells with a different operator.  In the U.K. North Sea, the NobleSam Hartleyis preparing to commence its program for TotalEnergies.  Additionally, the NobleHouston Colbertmobilized to the Middle East and is now preparing for its 3.5-year campaign in Qatar. 

Noble’s estimated revenue backlog was approximately $2.1 billion as of June 30, 2022. This excludes the 3.5-year firm term contracts for both the Noble Mick O’Brien and Noble Houston Colbert, which were signed after the quarter end. 

Maersk Drilling Business Combination Update

The Danish public tender exchange offer process in connection with Noble’s business combination with The Drilling Company of 1972 A/S (“Maersk Drilling”) has now commenced. The tender exchange offer period for outstanding Maersk Drilling shares is set for August 10 to September 8, 2022.

As previously announced, the Company has entered into an asset purchase agreement to sell five jack-up rigs for $375 million to a newly formed subsidiary (“Buyer”) of Shelf Drilling, Ltd. to address the potential concerns identified by the UK Competition and Markets Authority (“CMA”) in the Phase I review of the proposed business combination with Maersk Drilling.  The rigs are Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner, Noble Houston Colbert, and Noble Lloyd Noble. Publication of the CMA’s final decision on the divestment’s adequacy in addressing their competition concerns is scheduled for September 1, 2022. If the Buyer and related sale agreement are accepted by the CMA, the closing of the Business Combination is expected to occur on October 3, 2022, with the jackup divestment sale expected to close promptly thereafter.

Noble Corporation complete results: https://www.prnewswire.com/news-releases/noble-corporation-reports-second-quarter-2022-results-301601861.html