SUGAR LAND, TEXAS, October 31, 2023 /CNW/ - Noble Corporation plc (NYSE: NE, CSE: NOBLE, "Noble", or the "Company") today reported third quarter 2023 results.

Three Months
Ended
(in millions, except September September June 30,
per share amounts) 30, 2023 30, 2022 2023
Total Revenue $            $            $           
        697          306          639 
Contract Drilling 671  289  606 
Services Revenue
Net Income (Loss) 158  34  66 
Adjusted EBITDA* 283  97  188 
Adjusted Net Income 127  41  56 
(Loss)*
Basic Earnings (Loss) 1.14  0.48  0.48 
Per Share
Diluted Earnings 1.09  0.41  0.45 
(Loss) Per Share
Adjusted Diluted 0.87  0.50  0.38 
Earnings (Loss) Per
Share*

* 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 plc, stated "Our third quarter results reflect continued strong operational and financial performance and demonstrate the power of the Noble - Maersk Drilling combination where synergy progress and integration are ahead of schedule. We recently celebrated the one-year anniversary of the combination and I'd like to extend a special thank you to our employees around the world who have been so critical to the success of the integration which has exceeded all expectations. We remain optimistic about expanding free cash flow potential for Noble in the years ahead. To that end, we are pleased to be able to raise our quarterly dividend to $0.40 per share in the fourth quarter."

Third Quarter Results
Contract drilling services revenue for the third quarter of 2023 totaled $671 million compared to $606 million in the second quarter, with the sequential increase driven by both higher average dayrates and utilization. Marketed fleet utilization was 78% in the three months ended September 30, 2023, compared to 76% in the previous quarter. Contract drilling services costs for the third quarter were $354 million, a slight decrease versus $363 million the second quarter due to lower repair and maintenance expense. Net income increased to $158 million in the third quarter, up from $66 million in the second quarter, and Adjusted EBITDA increased to $283 million in the third quarter, up from $188 million in the second quarter. Net cash provided by operating activities in the third quarter was $139 million, capital expenditures were $99 million, and free cash flow (non-GAAP) was $40 million.

Quarterly Dividend Increase
Noble's Board of Directors approved an increase of the quarterly interim dividend to $0.40 per share in the fourth quarter of 2023. This dividend is to be payable on December 14th, 2023, to shareholders of record at close of business on November 15th, 2023. The Company intends to continue to pay dividends on a quarterly basis, and the fourth quarter dividend represents $1.60 on an annualized basis.

Future quarterly dividends and other shareholder returns will be subject to, amongst other things, approval by the Board of Directors, and may be modified as market conditions dictate.

Balance Sheet and Capital Allocation
The Company's balance sheet as of September 30, 2023, reflected total debt principal value of $600 million and cash (and cash equivalents) of $245 million. Share repurchases totaled $10 million during the third quarter, bringing 2023 year-to-date share repurchases to $80 million, following approximately $86 million of cash used for share repurchases during the fourth quarter of 2022 (including the mandatory purchase associated with the Maersk Drilling squeeze-out).

Operating Highlights and Backlog
Noble's marketed fleet of sixteen floaters was 92% contracted through the third quarter, compared with 90% in the prior quarter. Recontracting visibility for the marketed fleet continues to be promising, with leading edge dayrates for working tier 1 drillships in the mid to high $400,000s range, and with moderate utilization inefficiencies caused by gaps between programs and scheduled maintenance related downtime.

Utilization of Noble's thirteen marketed jackups was 61% in the third quarter, compared with 59% utilization during the second quarter. Contracting activity for the jackup fleet has picked up moderately from recent cyclical lows with leading edge fixtures for harsh rigs in the $130,000 to $150,000 range, while persisting soft demand in Norway continues to suppress utilization and dayrate potential for ultra-harsh jackups.

• Noble Valiant was awarded a six-month contract with LLOG in the U.S. Gulf of Mexico, expected to commence in January 2024 in direct continuation of the rig's current contract. The dayrate for this contract is $470,000, excluding additional fees for the use of managed pressure drilling.

• Noble Regina Allen was awarded a three well (estimated 220 days) contract with TotalEnergies in Argentina. This contract, expected to commence in mid-2024, has an operating dayrate of $150,000 excluding additional fees for mobilization and demobilization.

• Noble Globetrotter I and Noble Globetrotter II have both received additional contract terms from existing customers, with combined additional backlog of approximately $56 million and 5 months, extending both rigs into mid Q1 2024.

• Noble Reacher was extended by 15 months with TotalEnergies in the North Sea via previously priced options (approximately flat with the current dayrate), extending the rig's firm contracted period to mid-2025 with one year of priced option remaining.

• Noble Resilient was awarded a 120-day contract with Petrogas in the North Sea at a dayrate of $133,000. This contract is expected to commence in Q3 2024.

Noble's backlog as of October 31, 2023 stands at $4.7 billion.

Outlook
For the full year 2023, Noble is increasing guidance for total revenue to a range of $2.5 to $2.6 billion (previously $2.35 to $2.55 billion) and Adjusted EBITDA to a range of $775 to $825 million (previously $725 to $825 million). Full year 2023 guidance for capital expenditures (net of reimbursable capex) remains unchanged at a range of $325 to $365 million.

Commenting on Noble's outlook, Mr. Eifler stated, "Strong year-to-date operational and financial performance has enabled us to increase full year guidance and the quarterly dividend. Our outlook for a sustained long-term up-cycle remains well supported by macro factors and customer dialogue. While moderately lower financial results are expected over the next two quarters due to contract sequencing and scheduled downtime, we continue to expect a nice step up in 2024 compared to 2023."

Due to the forward-looking nature of Adjusted EBITDA, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measure. Accordingly, the Company is unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measure to the most directly comparable forward-looking GAAP financial measure without unreasonable effort. The unavailable information could have a significant effect on Noble's full year 2023 GAAP financial results.

Conference Call
Noble will host a conference call related to its third quarter 2023 results on Wednesday, November 1st, 2023, at 8:00 a.m. U.S. Central Time. Interested parties may dial +1 929-203-0901 and refer to conference ID 31391 approximately 15 minutes prior to the scheduled start time. Additionally, a live webcast link will be available on the Investor Relations section of the Company's website. A webcast replay will be accessible for a limited time following the scheduled call.

For additional information, visit www.noblecorp.com or email investors@noblecorp.com.

Dividend Details
Dividends payable to Noble shareholders will generally be paid in U.S. dollars (USD). However, holders of shares in the form of share entitlements admitted to trading on NASDAQ Copenhagen will receive an equivalent dividend payment in Danish krone (DKK) as determined by the exchange rate on a specified date. The holders of such share entitlements bear the risk of fluctuations in USD and DKK exchange rates.

Forward-looking Statements
This communication includes "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, as amended. All statements other than statements of historical facts included in this communication are forward looking statements, including those regarding future guidance, including revenue, adjusted EBITDA, the offshore drilling market and demand fundamentals, realization and timing of integration synergies, related costs to achieve, new technology and software platforms, free cash flow expectations, capital expenditure, capital allocation expectations including planned dividend and share repurchases, contract backlog, rig demand, expected future contracts, anticipated contract start dates, dayrates and duration, fleet condition and utilization, 2023 and 2024 financial guidance, business, financial performance and position and our plans, objectives, expectations and intentions related to the Noble-Maersk merger. Forward-looking statements involve risks, uncertainties and assumptions, and actual results may differ materially from any future results expressed or implied by such forward-looking statements. When used in this communication, or in the documents incorporated by reference, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "on track," "plan," "possible," "potential," "predict," "project," "should," "would," "shall," "target," "will" and similar expressions are intended to be among the statements that identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot assure you that such expectations will prove to be correct. These forward-looking statements speak only as of the date of this communication and we undertake no obligation to revise or update any forward-looking statement for any reason, except as required by law. Risks and uncertainties include, but are not limited to, those detailed in Noble's most recent Annual Report on Form 10-K, Quarterly Reports Form 10-Q and other filings with the U.S. Securities and Exchange Commission. We cannot control such risk factors and other uncertainties, and in many cases, we cannot predict the risks and uncertainties that could cause our actual results to differ materially from those indicated by the forward-looking statements. You should consider these risks and uncertainties when you are evaluating us. With respect to our capital allocation policy, distributions to shareholders in the form of either dividends or share buybacks are subject to the Board of Directors' assessment of factors such as business development, growth strategy, current leverage and financing needs. There can be no assurance that a dividend will be declared or continued.
 

NOBLE CORPORATION plc AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

Three Nine Months
Months Ended
Ended September
September 30,
30,
2023 2022 2023 2022
Operating
revenues
    Contract $          $          $      $         
drilling 671,004  289,494  1,852,474   746,992 
services
    26,446  16,378  93,565  44,263 
Reimbursables
and
other
697,450  305,872  1,946,039   791,255 
Operating
costs and
expenses
    Contract 354,199  186,482  1,078,521   530,710 
drilling
services
    16,682  13,284  67,484  37,095 
Reimbursables
    77,146  24,868   218,412   77,109 
Depreciation
and
amortization
    General     33,039      18,089          52,300 
and  95,428 
administrative
    Merger and    12,966     9,338         
integration  47,049   27,916 
costs
    (Gain)      -  354       -     (3,105)
loss on sale
of operating
assets, net
    Hurricane      2,642       1,896      22,120     4,701 
losses and
(recoveries),
net
  496,674    254,311           
1,529,014    726,726 
Operating   200,776                64,529 
income (loss)  51,561  417,025 
Other income
(expense)
    Interest         (7,943)       (23,338)
expense, (13,005) (44,539)
net of amounts
capitalized
    Gain on     5,005      -      5,005          -
bargain
purchase
    Gain      -            (26,397)     (196)
(loss) on (196)
extinguishment
of debt,
net
    Interest    17,206       3,235           4,766 
income and  16,292 
other, net
Income (loss)    209,982               
before 46,657   367,386   45,761 
income taxes
    Income tax                  (11,775)
benefit  (51,659) (13,072) (35,184)
(provision)
Net income $          $          $          $         
(loss) 158,323    33,585  332,202    33,986 
Per share data
Basic:
    Net income $          $          $          $         
(loss)       1.14        0.48        2.42        0.49 
Diluted:
    Net income $          $          $          $         
(loss)       1.09        0.41        2.29        0.42 

NOBLE CORPORATION plc AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

September 30, December 31, 2022
2023
ASSETS
Current assets
    Cash and cash $            $              476,206 
equivalents   244,792 
    Accounts     638,746        468,802 
receivable, net
    Prepaid expenses     147,912         106,782 
and other current
assets
Total current assets           1,051,790 
1,031,450 
Intangible assets    11,341       34,372 
Property and          4,163,205 
equipment, at cost  4,413,310 
    Accumulated        (181,904)
depreciation  (399,005)
Property and            3,981,301 
equipment, net 4,014,305 
Goodwill            -   26,016 
Other assets     211,820      141,385 
        Total assets $          $          5,234,864 
 5,268,916 
LIABILITIES AND EQUITY
Current liabilities
    Current maturities $            $             159,715 
of long-term debt             -
    Accounts payable             290,690 
281,266 
    Accrued payroll       88,953       76,185 
and related costs
    Other current     145,610        140,508 
liabilities
Total current                667,098 
liabilities 515,829 
Long-term debt    585,791      513,055 
Other liabilities     270,984     265,743 
Noncurrent contract     63,312      181,883 
liabilities
        Total              1,627,779 
liabilities 1,435,916 
Commitments and
contingencies
Total shareholders'           3,607,085 
equity  3,833,000 
        Total $        $         5,234,864 
liabilities and equity  5,268,916 

NOBLE CORPORATION plc AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Nine Months Ended September 30,
2023 2022
Cash flows from
operating activities
    Net income (loss) $               332,202  $                 33,986 
    Adjustments to
reconcile net income
(loss) to net cash flow
from operating         
      activities:
        Depreciation        218,412              77,109 
and amortization
        Amortization of      (95,540)       36,525 
intangible assets and
contract liabilities,
net
        Gain on bargain    (5,005)         -
purchase
        (Gain) loss on    26,397             196 
extinguishment of debt,
net
        (Gain) loss on          -        (6,767)
sale of operating
assets, net
    Changes in (189,618)  (31,243)
components of working
capital and other
operating
     activities
Net cash provided by     286,848       109,806 
(used in) operating
activities
Cash flows from
investing activities
    Capital     (268,131)     (109,235)
expenditures
    Proceeds from             -     15,756 
disposal of assets, net
Net cash provided by      (268,131)     (93,479)
(used in) investing
activities
Cash flows from
financing activities
    Issuance of senior    600,000             -
notes
    Borrowings on              -   220,000 
credit facilities
    Repayments of debt     (673,411)     (1,828)
    Debt extinguishment   (25,697)              -
costs
    Debt issuance costs    (24,914)                -
    Share repurchases     (80,000)                   -
    Dividend payments     (42,369)            -
    Other financing         (8,456)      (4,142)
activities
Net cash provided by     (254,847)      214,030 
(used in) financing
activities
Net increase (decrease)     (236,130)      230,357 
in cash, cash
equivalents and
restricted cash
Cash, cash equivalents      485,707        196,722 
and restricted cash,
beginning of period
Cash, cash equivalents $               249,577  $               427,079 
and restricted cash,
end of period

NOBLE CORPORATION plc AND SUBSIDIARIES
OPERATIONAL INFORMATION
(Unaudited)

Average Rig
Utilization
Three Months Three Months Three Months Ended
Ended Ended
September 30, June 30, 2023 September 30, 2022
2023
Floaters 77  % 76  % 78  %
Jackups 64  % 62  % 82  %
    72  % 70  % 80  %
Total

Operating
Days
Three Months Three Months Three Months Ended
Ended Ended
September 30, June 30, 2023 September 30, 2022
2023
Floaters       1,348                    792    
   1,305    
Jackups       824           786             606    
           2,172        2,091         1,398    
Total      

Average
Dayrates
Three Months Three Months Three Months Ended
Ended Ended
September 30, June 30, 2023 September 30, 2022
2023
Floaters $            $            $            285,362     
403,813      363,167     
Jackups                  118,209     
 140,775       128,885     
    $            $            $            212,958     
Total 304,040      275,066     

NOBLE CORPORATION plc AND SUBSIDIARIES
CALCULATION OF BASIC AND DILUTED NET INCOME/(LOSS) PER SHARE
(In thousands, except per share amounts)
(Unaudited)

The following tables presents the computation of basic and diluted income (loss) per share:

Three Nine
Months Months
Ended Ended
September September
30, 30,
2023 2022 2023 2022
Numerator:
Net income (loss) $        $          $        $         
 158,323   33,585   332,202   33,986 
Denominator:
Weighted average             137,478     
shares outstanding - 139,400  70,318  69,260 
basic
   Dilutive effect of    3,204      3,388             3,388 
share-based awards 3,204 
   Dilutive effect of    3,117      8,220    4,339     
warrants  8,718 
Weighted average                 81,366 
shares outstanding - 145,721   81,926  145,021 
diluted
Per share data
Basic:
     Net income (loss) $          $          $          $         
     1.14       0.48       2.42       0.49 
Diluted:
     Net income (loss) $          $          $          $         
     1.09       0.41       2.29       0.42 

NOBLE CORPORATION plc AND SUBSIDIARIES
NON-GAAP MEASURES AND RECONCILIATION

Certain non-GAAP measures and corresponding reconciliations to GAAP financial measures for the Company have been provided for meaningful comparisons between current results and prior operating periods. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles.

The Company defines "Adjusted EBITDA" as net income (loss) adjusted for interest expense, net of amounts capitalized; interest income and other, net; income tax benefit (provision); and depreciation and amortization expense, as well as, if applicable, gain (loss) on extinguishment of debt, net; losses on economic impairments; restructuring and similar charges; costs related to mergers and integrations; and certain other infrequent operational events. We believe that the Adjusted EBITDA measure provides greater transparency of our core operating performance. We prepare Adjusted Net Income (Loss) by eliminating from Net Income (Loss) the impact of a number of non-recurring items we do not consider indicative of our on-going performance. We prepare Adjusted Diluted Earnings (Loss) per Share by eliminating from Diluted Earnings per Share the impact of a number of non-recurring items we do not consider indicative of our on-going performance. Similar to Adjusted EBITDA, we believe these measures help identify underlying trends that could otherwise be masked by the effect of the non-recurring items we exclude in the measure.

In order to fully assess the financial operating results, management believes that the results of operations, adjusted to exclude the following items, which are included in the Company's press release issued on October 31, 2023, are appropriate measures of the continuing and normal operations of the Company:

i. In the second and third quarter of 2023 and the third quarter of 2022, merger and integration costs; hurricane losses and (recoveries), net; intangible contract amortization and discrete tax items.

ii. The third quarter of 2023 includes a gain on bargain purchase and joint taxation scheme compensation.

iii. The second quarter of 2023 and the third quarter of 2022 included a (gain) loss on extinguishment of debt, net.

iv. In addition, the third quarter of 2022 included (gain) loss on sale of operating assets, net and professional services costs related to corporate initiatives.

The Company also discloses free cash flow as a non-GAAP liquidity measure. Free cash flow is calculated as Net cash provided by (used in) operating activities less cash paid for capital expenditures. We believe Free Cash Flow is useful to investors because it measures our ability to generate or use cash. Once business needs and obligations are met, this cash can be used to reinvest in the company for future growth or to return to shareholders through dividend payments or share repurchases.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics used by our management team for financial and operational decision-making. We are presenting these non-GAAP financial measures to assist investors in seeing our financial performance through the eyes of management, and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.

These non-GAAP adjusted measures should be considered in addition to, and not as a substitute for, or superior to, contract drilling revenue, contract drilling cost, contract drilling margin, average daily revenue, operating income, cash flows from operations, or other measures of financial performance prepared in accordance with GAAP. Please see the following non-GAAP Financial Measures and Reconciliations for a complete description of the adjustments.

NOBLE CORPORATION plc AND SUBSIDIARIES
NON-GAAP MEASURES AND RECONCILIATION
(In thousands, except per share amounts)
(Unaudited)

Reconciliation of Adjusted
EBITDA
Three Three Months
Months Ended
Ended
September
30,
2023 2022 June 30, 2023
Net income (loss) $          $            $           
        33,585        65,816 
158,323 
Income tax (benefit) provision             13,072           
 51,659  (671)
Interest expense, net of     13,005               14,662 
amounts capitalized 7,943 
Interest income and other, net                  
 (17,206) (3,235) 2,940 
Depreciation and amortization    77,146     24,868       71,324 
Amortization of intangible           8,170     (31,009)
assets and contract (10,803)
liabilities, net
Gain on bargain purchase   (5,005)            -            
 -
(Gain) loss on extinguishment                  196       
of debt, net   -  26,397 
Professional services -           -         400            -
corporate projects
Merger and integration costs    12,966        9,338       22,452 
(Gain) loss on sale of          -        354          -
operating assets, net
Hurricane losses and    2,642       1,896       15,934 
(recoveries), net
Adjusted EBITDA $          $            $           
        96,587      187,845 
282,727 

Reconciliation of
Income Tax Benefit
(Provision)
Three Months Three Months
Ended Ended
September
30,
2023 2022 June 30, 2023
Income tax benefit $            $          $             
(provision)    (51,659)              671 
(13,072)
Adjustments
    Amortization of           (1,716)          
intangible assets  6,079   3,747 
and
contract           
    liabilities, net
    Joint taxation      (1,981)                        
scheme compensation  - -
    Hurricane losses       -                    
and (recoveries),  (398)   -
net
    Discrete tax    (17,088)       (47,601)
items  (10,628)
Total Adjustments    (12,990)         (43,854)
(12,742)
Adjusted income tax $            $          $             
benefit (provision)    (64,649)       (43,183)
(25,814)

NOBLE CORPORATION plc AND SUBSIDIARIES
NON-GAAP MEASURES AND RECONCILIATION
(In thousands, except per share amounts)
(Unaudited)

Reconciliation
of
Net Income
(Loss)
Three Three Months Ended
Months
Ended
September
30,
2023 2022 June 30, 2023
Net income $        $                $                 
(loss)     33,585  65,816 
  158,323 

Adjustments
   Amortization   (4,724)                                              
6,454  (27,262)
of
intangible
assets
and
contract     
     
   liabilities,

net
  Joint    (19,837            -                 -
taxation
scheme
compensation )
  Gain on                      -               -
bargain  (5,005)
purchase
  Professional                     400               -
services -    
corporate   -
projects
  Merger and        9,338        22,452 
integration 12,966 
costs
  (Gain) loss                354            -
on -
sale of
operating
assets, net
  Hurricane   2,642      1,498       15,934 
losses
and
(recoveries),
net
  (Gain) loss              196      26,397 
on  -
extinguishment
of
debt,
net
  Discrete tax       (10,628)      (47,601)
items (17,088)
Total           7,612       (10,080)
Adjustments (31,046)
Adjusted net $        $                $                 
income     41,197  55,736 
(loss)   127,277 

Reconciliation
of
Diluted EPS
Three Three Months Ended
Months
Ended
September
30,
2023 2022 June 30, 2023
Unadjusted $        $                    $                   
diluted     0.41    0.45 
EPS        
1.09 
Adjustments
   Amortization       0.08      (0.19)
 (0.03)
of
intangible
assets
and
contract     
     
   liabilities,

net
   Joint                 -                 -
taxation (0.14)
scheme
compensation
   Gain on   (0.03)                 -            -
bargain
purchase
   Professional                          -                -
 -

services -
corporate
projects
   Merger and    0.08              0.12              0.15 
integration
costs
   (Gain) loss         -                -           -
on
sale of
operating
assets, net
   Hurricane                 0.02           0.11 
losses  0.02 
and
(recoveries),
net
   (Gain) loss                      -       0.18 
on    
extinguishment -
of
debt, net
   Discrete   (0.12)     (0.13)     (0.32)
tax
items
Total             0.09         (0.07)
Adjustments (0.22)
Adjusted $        $                    $                   
diluted EPS     0.50    0.38 
       
0.87 

Reconciliation
of
Free Cash Flow
Three Three Months Ended
Months
Ended
September
30,
2023 2022 June 30, 2023
Net cash $        $                $               
provided by     73,507  211,160 
(used in)   138,768 
operating
activities

Capital           (29,710)      (106,796)
expenditures  (98,601)
Free cash flow $        $                $               
    43,797  104,364 
   
40,167 

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