Noble Corporation Don Jacobsen Senior Vice President Industry & Government Relations 20 Marine/Offshore Industry Conference 29 March 202
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, 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 0-K, Form 0-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. 2
Today s Agenda Offshore Drilling Supply & Demand Industry Challenges People, People, People Noble Overview 3
Offshore Drilling Outlook
Global Economic Expansion 5
Drives Global Energy Use Source: IHS-Ptrodata 6
Offshore Rig Utilization Source: IHS-Petrodata 7
Deepwater Sector Highlights Customer demand building across most regions US GOM, Brazil, Africa, Far East Capacity largely committed in 202 Drilling success remains high Established and emerging locations Geographic expansion continues into frontier locations Spot dayrates setting new highs, term fixtures expected to see further improvement New uncontracted UDW capacity for delivery in 203 declining 8
Announced Deepwater Discoveries 2009-20, Water Depth 4,500 Ft. and Greater Countries with Discoveries 2 5 77% Golden Triangle 54% Golden Triangle 2008 20 2 20 4 3 7 3 2 5 4 2 Source: IHS Petrodata 27 9 9
Deepwater Open Demand Supporting Future Drilling Prospects Additional offshore acreage awards in 20: Angola Kenya Romania Australia Mauritania Sao Tome & Principe Indonesia Namibia US Gulf of Mexico Israel New Zealand 3 2 2 4 8 3 0 3 3 2 2 7 5 8 3 2 3 3 3 4 2 2 4 4 5 Source: IHS Petrodata. Represents open demand in 202 and 203 and refers to pre-tenders, tenders, probable and possible demand covering exploration, appraisal and development requirements. 2 2 0
Changing Jack-up Market Picture Source: IHS-Petrodata
Jackup Sector Highlights Improving utilization as demand builds in numerous regions Surplus jackups in decline Dayrates for standard jackups continue to experience improvement North Sea contract commitments are addressing 203 needs of clients Middle East, particularly Saudi Arabia seeking additional rigs with longer term duration Southeast Asia region is active Renewed interest in jack-ups for Australia 2
Industry Challenges
Macondo has changed our business!
Typical Subsea BOP Stack 50 ft. LMRP Control Pod ROV Panel BOP 728,000 lbs. 5
NOV and OII Subsea Pods 6
Increasing Technical Complexity Measure of Complexity Previous Generation Rigs Current Generation Rigs Subsea Stack Parts Count Subsea Controls Computer Code Drilling Controls Computer Code Drilling Controls Computer Processors DP System Computer Code DP System Computer Processors 9,350 parts 7,200 parts,500 lines 4,500 lines 50,000 lines >500,000 lines 2 to 4 20 to 30 200,000 lines >3,000,000 lines 40 to 50 80 to 90 7
Increasing Business Complexity
Focus on Process Safety Source: Shell 9
Noble Capping Stack 20
It s all about the people
The People Challenge 22
The People Challenge World-wide fleet growth: 45+ New Builds Requires 80,000 new rig staff over next 6 years! New, complex technologies and operations cyber rigs and ultra-deep HPHT wells New regions opening up: Arctic Increased velocity of international rig moves Increased competition for labor Heightened regulatory and customer scrutiny Labor nationalization requirements (Brasil, Nigeria, Saudi Arabia) We need crews and leadership for the future! 23
Competency Matters Enhanced regulations Customer expectations 24
Critical Operations Training Cyber Drilling Crane Operations Well Control Management of Major Emergencies 25
It s all about the people Excellence Under Pressure
Company Overview
Company Highlights 4 Semisubmersibles 4 Drillships 49 Jackups 2 Submersibles 79 Total Rigs () + FPSO + Platform Operation Among the world s largest offshore drilling contractors Globally diverse operations Significant fleet transformation underway Focus on technologically advanced drilling solutions Large contract backlog with further growth expected Excellent earnings and cash flow growth prospects Source: Noble () Including assets under construction 28
Among Largest Floating Fleets Noble Systematically Growing its DP Units Floating Rig Count 80 77 Moored 60 39 DP 40 37 28 27 20 38 28 2 8 9 4 0 9 6 9 8 4 9 8 8 8 8 4 2 5 3 7 6 8 3 2 3 2 () Includes four floaters held in North Atlantic Drilling Inc. Source: Noble, Competitor Public Filings 29
Geographically Diversified Revenues and Strong Customer Base North Sea Total Revenues $2.7 Billion Middle East / India Top Five Customers. Shell 2. Petrobras 3. Pemex 4. Exxon 5. Maersk 20% 8% 5% 32% 2% 2% 7% Brazil Canada 2% 3% 5% Gulf Coast West Africa Mexico Source: Noble as of December 3, 20 30 30
Newbuild Shipyard Deliveries 202 203 204 Globetrotter Drillship #2 HHI Drillship # HHI Drillship #2 HHI Drillship #3 HHI Drillship #4 JU3000N Jackup # JU3000N Jackup #2 JU3000N Jackup #3 JU3000N Jackup #4 JU3000N Jackup #5 JU3000N Jackup #6 Over $5 billion in capital commitments to-date Three drillships delivered from shipyards in 20 projects remain five drillships and six jackups Source: Noble 3
Summary Comments Solid long term fundamentals but increasing operating cost structure and technical complexity coupled with cyclical short term realities and high new build replacement costs result in challenging economics for the drilling sector. 32
Noble Corporation Thank you! Dorfstrasse 9a 6340 Baar Switzerland www.noblecorp.com