Vice President, Investor Relations

Transcription

1 2012 ANALYST DAY

2 JEFFREY L CHASTAIN JEFFREY L. CHASTAIN Vice President, Investor Relations

3 Today s Presenters Noble Corp. Analyst tday 2012 David Williams Chairman, President and Chief Executive Officer Topic: Strategic Transformation James MacLennan Senior Vice President, Chief Financial Officer Topic: Capital Structure and Other Financial Matters Bernie Wolford Senior Vice President, Operations Topic: Operations Reliability Roger Hunt Senior Vice President, Marketing & Contracts Topic: Executing in Changing Markets

4 Transforming Noble Julie Robertson, Executive Vice President and Corporate Secretary Don Jacobsen, Senior Vice President, Industry and Government Affairs Scott Marks, Senior Vice President, Engineering William Turcotte, Senior Vice President, General Counsel Lee Ahlstrom, Senior Vice President, Strategic Development Tommy Travis, Vice President and Divisional i i Manager, Gulf lfcoast Gene House, Vice President and Divisional Manager, Brazil Therald Martin, Vice President and Divisional Manager, Middle East Charlie Yester, Vice President and Divisional Manager, West Africa Tom Madden, Vice President, General Manager Admin. & Human Resources Dennis Lubojacky, Vice President & Controller Mike Hoke, Vice President, Global Supply Chain Andrew Tietz, Vice President, Marketing and Contracts Bodley Thornton, Vice President, Marketing and Contracts Janet Duncan, Vice President, Treasury

5 Forward Looking Statement These presentations contain forward looking statements about Noble s business, financial performance, contracts and prospects. Statements regarding contract backlog, costs, benefits, opportunities, financial performance, anticipated timing and cost of newbuild rigs, fleet strategy, t growth into new market segments, bidding activity, rig demand, contract commencements, dayrates, impact of future regulations, contract duration, fleet condition, capabilities or performance, shareholder value as well as any other statements that are not historical facts in this release, are forwardlooking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to actions by regulatory authorities or other third parties, costs and difficulties related to other integration of acquired businesses, delays, costs and difficulties related to the construction of newbuild rigs, market conditions, financial results and performance, ability to repay debt and timing thereof, 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 s 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. The Company disclaims any duty to update the information presented here.

6 2012 ANALYST DAY

7 DAVID W WILLIAMS DAVID W. WILLIAMS Chairman, President and Chief Executive Officer

8 Strategic Transformation State OfTheOffshore Contract Drilling State Of The Offshore Contract Drilling Business A Good Place to Be

9 Worldwide Supply and Marketed Utilization Deepwater Floaters 4,000 and greater Other Floaters up to 3,999 Total Supply Marketed Utilization % Total Supply Marketed Utilization % % 99% % Total Supply Marketed Utilization % Total Supply % Marketed Utilization % % 0 70% Source: ODS as of May 15, 2012

10 Worldwide Supply and Marketed Utilization Jackups Built After 2000 Jackups Built Before 2000 Total Supply Marketed Utilization % Total Supply Marketed Utilization % % % 94% 89% Supply Total Marketed Utilization % Supply Total Marketed Utilization % % 300 0% Source: ODS as of May 15,

11 Current State of the Offshore Drilling Business Major FundamentalDrivers Sustained level of crude oil price Exploration success Geographic expansion Shift to field development Increasingly complex wells Future Indicators of Activity Supportive

12 Strategic Transformation State Of The Offshore Contract Drilling Business Where Does Noble Go From Here?

13 Steps In Transforming the Fleet ADD: Technologically Advanced Units 8 Newbuilds 6 Newbuilds 3 In Service Since 2007 MAINTAIN CORE FLEET Premium, Modern & Versatile Rigs (Floaters & Jackups) ENHANCE SUBTRACT: Non core assets Sale (one off or pool) Spin IPO Retire

14 Newbuild Shipyard Deliveries Approximately $10 billion in capital committed to date covering capacity additions since Globetrotter Drillship #2 Noble Don Taylor Noble Bob Douglas Noble Sam Croft HHI Drillship #4 Noble Regina Allen Noble Mick O Brien Noble Houston Colbert Noble Sam Turner Noble Tom Prosser F&G JU 3000N Jackup #6 Rigs added since 2007 Source: Noble 3 F&G JU 2000E units

15 Noble s Floating Fleet Strong Growth hin Dynamic Positioning i i Capabilities i Count Floating Rig DP Moored Noble Clyde Boudreaux Noble Bully I (1) Noble Bully II (1) Noble Globetrotter I Frontier Acquisition Noble Danny Adkins Noble Dave Beard Noble Jim Day Noble Don Taylor Noble Bob Douglas Noble Globetrotter II Noble Sam Croft HHI IV (1) Owned through a joint venture with Shell and acquired through the Frontier Drilling acquisition. Source: Noble

16 Where Does Noble Go From Here FurtherFleet Fleet ExpansionPossible Harsh Environment Semi Design Under Review Ultra Deepwater Drillship JU3000N High Spec Jackups Timing of Further Expansion Does the Late 1990s Noble Strategy Make Sense Today? Enhance/Convert Rather Than Build Niche Markets

17 Transforming Noble # of Units* Neddrill Acquisition 5 EVA Projects Mid East jackups Mid East jackups, 2 Semi s & 2 Bingo hulls Newbuilds Frontier Acquisition Chiles Acquisition Semi upgrades 6 JU3000E & 5 Drillships Under Construction GE/Bawden Acquisition Western Acquisition Transworld Acquisition Land/Barge Rigs Sale Mat Rigs Sale Noble Drilling Corporation was spun off from parent company, Noble Affiliates * Plus Frontier, Incl. FPSO Source: Noble Corporation.

18 Geographic Expansion Noble Discoverer Noble Scott Marks Opening of Southeast Asia office in Singapore Noble Clyde Boudreaux

19 Strategic Transformation State Of The Offshore Contract Drilling Business Where Does Noble Go From Here? Possible Fleet Divestitures Alliance

20 The Alliance Goals Commitment to work together to achieve stated goals. Constantly engaging both organizations to reinforce the spirit iitof openness, which leads to better performance and growth. Leader In Personnel And Process Safety Excellence In Rig Design, Construction And Well Delivery Create A Larger Economic Prize Growing Portfolio Of Business Together

21 BERNIE WOLFORD BERNIE WOLFORD Senior Vice President, Operations

22 Operations Presentation Agenda Operations Update Project Update HSE Update Revenue Efficiency Developing our Crews Technology Discussion

23 Noble Bully I & II Drillships Up and Running Noble Bully I On Contract Mar 2012 Noble Bully II On Contract Apr 2012

24 Noble Globetrotter I On Contract Deepwater Commissioning

25 Noble Globetrotter I BOP Deployment

26 Projects Update

27 Going to Alaska

28 Brazil Reliability Upgrades Noble Leo Segerius After Before

29 Newbuild Timeline

30 Noble Globetrotter II 70% Complete

31 Six JU3000N Jackups Noble Regina Allen 53% Complete Noble Mick O Brien 18% Complete Noble Houston Colbert 10% Complete NobleSam Turner Steel Cutting July 2012 Noble Tom Prosser Steel Cutting July 2012 JU3000N #6 Steel Cutting Jan 2013

32 Four Ultra Deepwater Drillships Noble Don Taylor 66% Complete Noble Bob Douglas 38% Complete Noble Sam Croft Steel Cutting Oct 2012 HHI Drillship #4 Steel Cutting Feb 2013

33 HSE Update Demonstrate Genuine Care and Concern Measure and Respond to Exposure Conduct Safety Perception Audits Make Safety Personal Celebrate Successes

34 Safety Milestones Q % of Fleet NPH, NAH NAH NHnD NDW NRE, NMO, NLJ NGA, NLJ NLB NJP, NAW, NCB NLB NTvL, NBJ NPJ NLD, NEN NJH >1 Yr >2 Yrs >3 Yrs >4 Yrs >5 Yrs >6 Yrs >7 Yrs >8 Yrs Lost Time Incidents >9 Yrs >10 Yrs >11 Yrs > 12 Yrs > 13 Yrs Recordable Incidents > 14 Yrs > 15 Yrs >16 Yrs >17 Yrs Notes: Rigs listed achieved the indicated milestone during the first quarter of 2012 Columns represent the percentage of the Noble fleet without a Lost Time (LTI) or Recordable Incident as of 31 March 2012

35 Recordable Injury Rate History

36 Lost Time Injury Rate History

37 Process Safety High reliability organizations, or HROs, share two essential characteristics: They constantly confront the unexpected and operate with remarkable consistency and effectiveness Track all failures, small and large and embed learnings from events based on potential consequence respond to weak signals Resist oversimplification of event causes, diligently pursue the root causes Remain operations driven, drive results through the people that do the work, build improvement though operations activities Make best use of the collective expertise in the company, keep support groups aligned with operational performance as the objective Manage with a continuous preoccupation for the potential of failure, proactively address management systems, crew capability and equipment reliability to avoid failure Managing the Unexpected: Assuring High Performance in an Age of Complexity Weick and Sutcliffe

38 HSE Improvement Actions Maintaining focus on improved deck time from offshore leadership via the Management by Walking Around ( MBWA ) (MBWA) process Consistent Implementation of Dropped Object Prevention program Renewed focus on Hand Injury Prevention Drive accountability for division specific HSE Plan execution and results Align Noble s Supervisors courses with the principles of the Worldwide HSE Plan and the Five Pillars of Visible Leadership Formalized Emergency Management Systems Expanded dfocus on Process Safety

39 Revenue Efficiency Improvement Addressing Downtime through Data Analysis Training and Development Systems and Processes Objectives and Expectations Operations Focused Initiatives By Cause By Location By Rig Type By Equipment Brazil GOM Mexico Middle East North Sea West Africa Semi JU Mid Water Semi DS JU Semi Mid Water Semi Top Drive 8% Other 3% Eng/ gen 0% PRS 2% SS BOP / LMRP 58% Mud System 22% Surface BOP 5% Riser 0% Draw w orks 2%

40 Downtime Distribution All Rig Types 2011 and YTD

41 Deepwater Downtime Deepwater Rigs 2011 and YTD

42 Subsea BOP Downtime

43 BOP Repair from 8,000 ft. of Water Typically 7 To 14 days to retrieve and repair stack

44 Subsea Reliability Strategy Subsea Operations Excellence Group Field Support Teams Subsea Engineer Development Program Fleet Spares Program Subsea Maintenance Standards Driving Accountability Individualized Development Plans linked to Knowledge Assessments Digital Training and Support Systems Subsea Engineering Workshops OEM Engagement

45 Digital Training and Support

46 Control System Training

47 Top Drive Downtime

48 Top Drive Reliability Strategy Consolidate Top Drive Models in use based on Performance Stock Fleet Spares to Support Rotations Base Component Rotation on Historical Service Life Implement more Robust Top Drive Maintenance Standards OEM Engagement

49 Developing Our Crews

50 Leadership & Talent Management Global Talent Review to support crewing of new build rigs Reviewed over 3,500 offshore employees for performance and potential Noble PATH Competency and Leadership Development Framework Mandatory Training i Annual Matrix Appraisal Completion Standards of Competence Completion Operational Time in Position

51 Crew Development Ramp Up in Crew Training In 2011, Noble hired and trained over 1,200 new employees. YTD over 350 New Hire Inductions YTD over 500employees trained in Noble specific development courses: Safety Systems Subsea Mit Maintenance Marine Stability Driller Development Leadership Skills

52 Subsea Engineer Development

53 Subsea Engineer Accelerated Development Program Trainee Qualifications Mechanics ROV Techs Armed Forces Noble Internal Knowledge Assessments At Entry Level Periodic Existing Subsea Crew Typically 3 hrs to take Formal Training Troubleshooting MUX Hydraulic OEM and Noble Advancement Requirements Handbook Tasks Performed Witnessed Competent to Repeat 200 pages On the Job Training EOW Maintenance Downtime Recovery New Build Commissioning Managed Program Subsea Development Manager Coordinated with L&D and Divisions

54 Driller Development Simulators Training crews on drilling simulators located in Houston and Brazil

55 Expanding Simulator Based Training New US Training and Collaboration Center planned for 2013 Two cyber chair simulators DP/Marine simulation Power management Crane simulator Conventional drilling Advanced courses and scenario simulation will include: Process safety, well control and downhole problem modeling Simultaneous operations and emergency management Team communications and safety leadership skills

56 Leadership Development Operations Management Development Program North Sea Operations Subsea/Marine Marketing Engineering Gulf of Mexico Mexico Middle East India Brazil Australia University degreed candidates mentored through offshore operations and rig management experience Currently 25 OMDPs spread throughout fleet; recruiting now for Class of 2015

57 Technology Discussion NOV Low Force Shear Rams In final stages of qualification More efficient i blade geometry Reduced accumulator requirements Capable of shearing a range of tool joints With depth compensated bottles provides for an extremely efficient shearing system

58 From Concept

59 To Reality

60 Question & Answer

61 JAMES MACLENNAN JAMES MACLENNAN Senior Vice President, Chief Financial Officer

62 Capital Structure and Other Financial Matters Background Financial Comparisons Capital Spending Through The Current Newbuild Program Liquidity Considerations Where Are We In The Cycle? Use Of Cash

63 Background Returned To Noble In January 2012 Previously Employed With Company In The 1990 s Responsibilities Included Accounting, Internal Audit, Risk, Investor Relations, & Special Projects Led Acquisition Teams Chiles Offshore Neddrill CFO In Different Industries Since Departure From Noble Corp

64 Background Noble: Then And Now Then: 1990 s Company Characterized As Disciplined, Focused, Conservative Now: Equally Disciplined, Similarly Focused, Every Bit As Conservative Near term Focus New VP Taxation New VP Treasurer Other Financial Organization Changes Immediate Challenges Regional Office Visits Integrated Financial Organization

65 Financial Comparison ($ millions, except per share) Financial Guidance Outstanding Outlook Actual Actual Actual Contract Drilling Revenues $ 2,557 $ 2,695 $ 3,510 Other Revenues Operating Revenues 2,696 2,807 3,641 Contract Drilling Costs 1,384 1,178 1,007 Other Expenses Depreciation SG&A Other Non-Cash Gains and Losses (21) - 31 Operating Expenses 2,206 1,891 1,630 Operating Income ,011 Interest Expense and Other (53) - 5 Income Before Income Taxes ,016 Tax Provision (73) (143) (337) Net Income ,679 Noncontrolling Interests Net Income (Net to Noble) $ 371 $ 773 $ 1,679 Net Income Per Diluted Share $ 1.46 $ 3.02 $ 6.42 Note: Noble estimates

66 Financial Comparison ($ millions, except per share) Outlook Actual Actual Actual Contract Drilling Margin 45.9% 56.3% 71.3% Average Dayrate ($ thousands) $ $ $ Daily Drilling Costs ($ thousands) $ 80.2 $ 66.5 $ 56.6 Utilization 72% 78% 84% Operating Days 17,254 17,700 17,803 Stacked Days 4,542 3,360 1,704 Unpaid Shipyard Days 2, ,543 1,655 Operational Downtime 5.2% 4.0% 3.5% Operational Downtime Days Cash Flow from Operations $ 1,001 $ 1,313 $ 2,118 Capital Expenditures $ 2,640 $ 1,423 $ 1,431 Free Cash Flow $ (1,639) $ (110) $ 687 Note: Noble estimates

67 Projected Capital Expenditures ( ) ($ Millions) $2,500 $2,000 $1,900 $2,300 $2,000 Newbuilds Sustaining Capital Major Projects & Other Capitalized Interest $1,500 $1,000 $700 $500 $ Note: Noble estimates

68 Increase Borrowing Capacity Under Revolving Debt Facility Rationale: Substantial Capital Spending On Fleet Expansion Greater Number Of Rigs In Fleet Financial i Flexibility & Liquidity idi Existing Capacity Low Versus Peer Group Manage Senior Note Maturities

69 Current Debt Maturity Profile ($ Millions) Manage Senior Note Maturities June Two Current Revolvers August Coupon Maturity Life (Years) Amount Outstanding (mm) 5.875% 6/1/ $ % 3/15/ $ % 8/1/ $ % 3/1/ $ % 3/15/ $ % 3/15/ $ % 8/1/ $ % 3/1/ $ % 3/15/ $ % 8/1/ $ % 3/1/ $ % 3/15/ $500 Avg./ Total 5.060% 11.2 $4, August March 400 March March August March March March March March Long Term Debt Revolving Credit Facilities Source: Noble as of May 1, 2012

70 Total Debt and Newbuild Capex Total Debt and Newbuild Capex by Year Debt / Total Capital by Year ($ Billions) $5.5 $5.4 50% $4.9 $4.1 40% Target Range 35% 36% 33% 33% 27% $2.8 20% $0.8 $1.7 $1.5 $1.2 10% $22 million $0.7 $0.7 $ * 13 * 14 * * 13 * 14* Long Term Debt Newbuild Capex Source: Noble * Estimates as of May 15, 2012

71 Question & Answer

72 ROGER HUNT ROGER HUNT Senior Vice President, Marketing & Contracts

73 Agenda Leading indicators Regional review Drilling Contracts in the Post Macondo era

74 Agenda Leading indicators Regional review Drilling Contracts in the Post Macondo era

75 Leading Indicators Offshore Licensing 2012 Planned, Open and Recently Closed Activity Newfoundland Iceland 43,000 sq. km. Greenland 20,000 sq. km. UK 27 th Round Norway 22 nd Round, Arctic Region Nova Scotia China 20,000 sq. km. Alaska Egypt Lebanon Syria Bangladesh Vietnam US GOM 38mm acres Trinidad Surinam Sierra Leone Liberia Nigeria Seychelles Cyprus Philippines Mexico Brazil Angola Tanzania Mozambique Burma New Zealand 40,000 sq. km. Source: PFC Energy Columbia Argentina Uruguay Greece Sri Lanka Indonesia Brunei

76 Leading Indicators Offshore Seismic Demand Norway Black Sea Arctic Arctic E. Med US GOM W. Africa Asia Pac Source: PFC Energy S. America East & South Africa India

77 Leading Indicators Deepwater Open Demand Majors 19% Open Demand by Client 100% 75% 89% Type of Well NOCs 27% 54% Independents d 50% 25% 0% 11% Exploration Development Source: IHS Petrodata. Open demand refers to pre tenders, tenders, probable and possible demand covering exploration, appraisal and development requirements in 2012 and

78 Leading Indicators Ultra Deepwater Construction & Rollover UDW Fleet Contract Status April Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total Newbuild Contracted Newbuild Not Contracted Existing Fleet Rollovers Total Total Available Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Newbuild - Contracted Newbuild - Not Contracted Existing Fleet - Rollovers

79 Ultra Deepwater Fixtures 2011 & 2012 YTD $700,000 $700,000 $650,000 $650,000 $600,000 $600,000 $550,000 $550,000 $500,000 $500,000 $450,000 $450,000 $400,000 $400,000 $350,000 $350,000 $300,000 $300,000 $250, Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12 $250, UDW Fixtures 2011 & 2012 Linear (UDW Fixtures 2011 & 2012)

80 Leading Indicators Jackup Construction Rigs Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

81 Leading Indicators Jackup Fixtures $200k/day $300, Non Norwegian $280,000 $260,000 $240,000 $220,000 $200,000 Jul 10 Oct 10 Jan 11 Apr 11 Aug 11 Nov 11 Feb 12 May 12 Noble Fixtures Competitor Fixtures

82 Agenda Leading indicators Regional review Drilling Contracts in the Post Macondo era

83 Hyundai Drillships Advantages over competing models: Retractable thrusters Derrick setback 3500kips (versus 2400 kips) Better station keeping ability More usable open deck space 70,000 mt displacement (versus 102,000 mt or 96,000 mt)

84 F&G JU3000N Jackup Friede & Goldman JU3000N 2.5MM lb. SHL derrick 7,500bbl. mud system 150 man quarters 6 identical Noble units with deliveries beginning in Q Only 5 others being built with same specs

85 Western Hemisphere Review Alaska / Arctic Will execute a 2-rig campaign in 2012 open season Exploration success will stimulate additional opportunities U.S. Gulf of Mexico World-class hydrocarbon play Expected to surpass pre-macondo rig count levels in near term Customer focus on high grading fleet with biggest and best rigs Niche market exists for moored units Mexico State oil company issues Ultra-deepwater future plans Jackup demand exceeds supply Pemex still pushing to hi-grade fleet, but are settling on older units due to availability Brazil Source: Noble Largest UDW market in world Noble well positioned with exposure to Petrobras and IOC s Margins under pressure due to rising operating costs/increased regulatory pressures Strong governmental drive towards local content Built in Brazil campaign under pressure opportunities for existing rigs to fill gaps: when not if?

86 Eastern Hemisphere Review North Sea Noble very well positioned Largest jackup player and price leader in standard segment Norway market (and even UK) buoyant JU3000N well placed against very high specification opportunities $150,000 Europe uopejackup Fixtures (<350 ) $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 Noble Fixtures Competitor Fixtures Linear (Noble Fixtures) Source: Noble 86 86

87 Eastern Hemisphere Review North Sea Noble very well positioned Largest jackup player and price leader in standard segment Norway market (and even UK) buoyant JU3000N well placed against very high specification opportunities Middle East & India Noble well positioned Saudi has replaced Qatar as biggest NE market Utilization and dayrates improving JU3000N well positioned for future Saudi gas & HPHT req ts Mediterranean Sea Africa Key target market for NE newbuilds Significant barriers to entry and high cost of operation Current tendering hotspot t for HHI drillships devl ts & subsalt Steady utilization for jackups at improving rates going forward Relatively new market for Noble Exploration success driving activity Floater demand strong especially in Egypt, Israel and nearby for 15K units Source: Noble 87 87

88 Southeast Asia Review Vietnam Thailand Newbuilds with offline capabilities and extended reach sought by Operators. Still a role for older JU s. Robust Tender Assist market Malaysia Robust JU market with both exploration and development opportunities Market strong for older JU units, especially those with low bearing loads Shallow-mid water semi market with expanding deepwater opportunities JU opportunities for newbuilds for subsea campaigns duration of programs increasing Market can still be serviced by older JU s Floater market developing, but for most part, short term opportunities Brunei Smaller market in terms of Operators, but seek newbuild JU s to service term opportunities Expanding deepwater opportunities as joint development between Malaysia and Brunei continues Indonesia Increasing demand for JU s, both older models and newbuilds, with mix of development and exploration programs Deepwater opportunities increasing for work offshore Sumatra, PNG and East Kalimantan Source: Noble

89 SE Asia Jackup Fixtures & Deliveries YTD ( 300 IC) $250,000 $200,000 $150,000 Delivered Pre 2004 Delivered Post $100, $50,000 $ Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Under Construction Delveries

90 Australia / New Zealand Review Northwest Shelf Robust market for mid-water moored semi-submersibles, and focusing on newer assets Increasing opportunities for deepwater units as Operators expand into deeper waters further offshore Jackup market currently serviced by single contractor, with two (2) units New Zealand Great Australian Bight / Bass Straits HDHE Semi-submersible market Jackup opportunities in Bass Straits for newbuild jackups Short term opportunities, predominantly for HDHE semisubmersibles Short term opportunities for newbuild jackups, but could rig share with other operators in Bass Strait Source: Noble 90 90

91 Agenda Leading indicators Regional review Drilling Contracts in the Post Macondo era

92 Drilling Contracts: Post Macondo Noble s contract standards set the hurdle high Risk allocation Termination rights Changes in government regulations Cost escalation protection Subsea downtime Indexed dayrates

93 Question & Answer

94 DAVID W WILLIAMS DAVID W. WILLIAMS Chairman, President and Chief Executive Officer

95 Transforming Noble We believe the contract drilling business is supported by a unique combination of events that, together, form a strong fundamental backdrop that offers distinctive long term visibility and a growing glist of opportunities for premium floating and jackup rigs; therefore, we are Transforming Noble.

96 Geologic Potential Remains Strong Is There Another Pre Salt Hydrocarbon Structure? Petrobras Ultra Deepwater Rig Commitments for Deployment in Pre Salt Brazil Build in 7,500 Ft. Water Depth Floaters 75 Map of Africa Highlighting the Pre Salt Countries r of Rigs 60 Numbe Source: Noble, Industry Intelligence

97 Transforming Noble Noble Is Differentiating Itself In This Robust Business Environment: Premium Assets Unique Technology Geographic Expansion Improved Operations, Processes, and Systems Contract Details And Execution Industry Leading Earnings And Cash Flow Growth

98 Value Impact of Fleet Transformation d Revenue Distribution b Estimated 2011 Actuals 2015 Projection 23% 24% 33% 11% 40% 4% 31% 6% 22% 6% Ultra deepwater Deepwater Source: Noble Other Floater High Spec Jackup Standard Jackup 98

99 Attractive Leverage to Rising Dayrates ($ Millions) $2,000 $1,500 Annual Estimated Revenue Contribution From Uncontracted New Deepwater and Jackup Capacity Contracted t ddrillships and Jackup 3 HHI Drillships 5 JU3000N Jackups $1,669 $1,756 $1,894 $1,000 $837 $500 $0 5 Contracted Drillships and 1 Jackup (1) Dayrate assumptions on Drillships (3) uncontracted rigs: Jackups (5) $500,000 $180,000 $550,000 $200,000 $600,000 $250,000 (1) Includes contracts on drillships Noble Bully I and II, Noble Globetrotter I and II, Noble Don Taylor and jackup Noble Regina Allen. Note: Noble estimates, assumes 95% utilization

100 Value Impact of Fleet Transformation Total Revenues ($ Billions) $10 $8 $7.4 $6 $4 $3.6 $2 $ Actual Peak Dayrate Case Cycle Peak Projection Source: Noble Internal Estimates

101 Transforming Noble Transformation Reliability Execution Safety Superior, Premium Fleet Enhanced Operational Performance Improved Financial Results Preferred Employer

102 Question & Answer