Jeffrey L. Chastain Vice President Investor Relations and Corporate Communications. Johnson Rice Energy Conference September 26, 2017

Transcription

1 Jeffrey L. Chastain Vice President Investor Relations and Corporate Communications Johnson Rice Energy Conference September 26, 2017

2 2 Forward Looking Statement This presentation contains forward-looking statements about Noble s business, financial performance and position, contracts and prospects. Statements regarding contract backlog, costs, benefits, opportunities, financial performance, capital structure, debt, financial position, fleet strategy, bidding activity, rig demand, contract commencements, dayrates, impact of future regulations, contract duration, fleet condition, capabilities or performance, industry fundamentals, shareholder value, as well as any other statements that are not historical facts in this release, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to actions by regulatory authorities or other third parties, 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.

3 Noble-at-a-Glance Key factors driving long-term success: Modern fleet Solid revenue base Strong operational execution fleet performance Effective cost management Advanced training capabilities Efficient capex Robust liquidity Manageable debt profile Free cash flow 3

4 Source: Noble effective September Modern Fleet Located in Key Offshore Regions Global Fleet Distribution

5 Source: Noble 5 Balanced Mix of Deep and Shallow Water Assets 8 Drillships 6 Semisubmersibles 14 Jackups Contracted Idle warm Idle cold

6 Revenues by Region Revenues by Rig Type Diversified Revenues and Customer Base YTD June 30, 2017 Total Revenues $641 Million Source: Noble as of June 30,

7 (Remaining) Solid Revenue Base Backlog Change Backlog at June 30, 2017: $3.23 Billion Backlog By Year ($ Billions) YTD 2017 Actual $0.468 $ Split by Rig Type Source: Noble 7

8 Noble Bob Douglas Multi-Year Contract Award Awarded 3-year contract by Exxon Liza project offshore Guyana Rig offers High performing crews Superior rig design and capabilities Demonstrated performance through the cyclical trough Regional exposure Suriname 8

9 Noble Globetrotter II A Unique Design 6,000 Nautical Mile Transit Awarded third well since 2015 for Black Sea, second with Total Efficient drilling solution for the region Attractive revenue structure in place Shell $185,000/day through Dec Third party contract awards additive Shell contract term into Sept $275,000 dayrate floor Video of transit to Black Sea 9

10 Noble Globetrotter II Video 10

11 Solid Revenue Base Provides Industry-Leading Visibility Percentage of Available Operating Days for Floaters Floating Fleet % Committed 34% Committed Sep 2023 Jul 2022 Apr 2022 Q1/Q /31/16 6/30/17 12/31/17 6/30/18 12/31/18 6/30/19 12/31/19 Source: Noble Corporation plc as of September

12 Solid Revenue Base Provides Industry-Leading Visibility Jackup Fleet Jul 2022 Mar 2022 Nov Q19 1Q20 Percentage of Available Operating Days for Jackups % Committed % Committed 12/31/16 6/30/17 12/31/17 6/30/18 12/31/18 6/30/19 12/31/19 Source: Noble Corporation plc as of September

13 Focus Remains on Operational and Strategic Objectives Operational excellence and efficient cost structure Readiness of premium fleet Liquidity preservation Debt management Efficient capital allocation 13

14 ($ Millions) Strong Operational Execution Annual Fleet Total Downtime 2017 Guidance Contract Drilling Service Costs 3.5% Favorable operational trends continue Fleet downtime remains below guidance through 2Q expected contract drilling costs down 30% from 2016 (P) Source: Noble 14

15 Focus Remains on Operational and Strategic Objectives Operational excellence and efficient cost structure Readiness of premium fleet Liquidity preservation Debt management Efficient capital allocation 15

16 Keeping our Premium Fleet Ready for Recovery Noble Sam Croft Noble Tom Madden Warm stacking premium fleet Maintain core crew of approx. 15 Active maintenance program Engines and BOP remain hot Benefits: Daily operations costs reduced by approximately $100,000 Time to reactivate shortened and costs minimized relative to cold stacked unit Advantageous posture preferred by customers, increasing likelihood of early return to active status Probable near-term reactivation of Noble Tom Madden 16

17 Focus Remains on Operational and Strategic Objectives Operational excellence and efficient cost structure Readiness of premium fleet Liquidity preservation Debt management Efficient capital allocation 17

18 Stable Liquidity and Continued Management of Debt Maturities Liquidity Preservation Debt Management ($ Billions) ($ Millions) $1,000 $1,000 $3.2 $3.2 $3.0 $800 Expected to be paid with cash on hand $1.8 $600 $400 Avg. Maturity Size $175MM $450 $400 $400 $500 $400 $68 $512 $726 $603 $200 $0 $250 $202 $209 $168 $ (1) Includes $2.45 billion of undrawn revolver (1) Note: $300 million senior note maturity in 1Q17 repaid with cash on hand. Source: Noble 18

19 Focus Remains on Operational and Strategic Objectives Operational excellence and efficient cost structure Readiness of premium fleet Liquidity preservation Debt management Efficient capital allocation 19

20 Efficient Capital Allocation Annual Capital Expenditures ($ Millions) $108 $148 $85 $150 $67 (P) Source: Noble 20

21 Indications of Industry Improvement Global Floating Fleet Source: IHS Petrodata 21

22 Indications of Industry Improvement Global Jackup Fleet Source: IHS Petrodata 22

23 Indications of Industry Improvement Offshore Project Approvals All Water Depths Source: Industry publications and company disclosures 23

24 Indications of Industry Improvement Expanding Offshore Access Western Hemisphere Activity on the rise Some countries experiencing initial offshore bid rounds Argentina Brazil with 2nd and 3rd Pre-Salt bid rounds 2 nd deepwater bid round in Mexico Initial shallow water bid round in Mexico provides encouraging geologic success 24

25 Indications of Industry Improvement Expanding Offshore Access Eastern Hemisphere Activity in Asia and Africa on the rise UK with 30 th Round 25

26 The Noble Model Long-Term Success Factors Modern fleet Solid revenue base Operating execution Cost management Strategic Differentiation Advanced training Efficient capex Robust liquidity Manageable debt Free cash flow Driving Near-Term Benefits Take a Fresh Look Financial flexibility and optionality Positioned for the future 26

27 Noble Corporation plc Devonshire House 1 Mayfair Place London W1J 8AJ England Investor contact: Jeffrey L. Chastain Vice President Investor Relations & Corporate Communications Enterprise Value (as of 9/21/17) Exchange Listing Shares Outstanding (ex. Treasury Shares) 52-Week Average Daily Trading Volume Debt Rating $5.1 billion NYSE: NE million 11.3 million BB-/B2