Noble Corporation Dynamically Positioned for Success Lee M. Ahlstrom Vice President Investor Relations & Planning Capital One Southcoast Energy Conference December 7-9, 2010 New Orleans, Louisiana
Todays Discussion Who is Noble Renewing the Fleet Outlook for the Rig Market and The New Gulf of Mexico Onward Through the Fog Conclusion 3
Who is Noble Aligning Rigs Around Customers and Geology 43 Jackups 14 Semisubmersibles 10 Drillships 2 Submersibles 1 FPSO 69 Total Rigs + FPSO 4
Nobles Industry Leading Global Drilling Fleet Rig Count Transocean Noble Seadrill ENSCO Diamond Rowan Pride Atwood (not incl. FPSO) Note: Rig types include Arctic, Drillship, Jackup, Semisubmersible, Submersible, Tender;…
Second Largest Backlog in Industry As of September 30, 2010 Millions Estimated by ODS and includes estimates of backlog by ODS where dayrates have not been made public. Transocean Noble* Seadrill Diamond Pride ENSCO Rowan…
Undercapitalized vs. Backlog Backlog per Share as a Multiple of Share Price Multiples Noble* Pride Transocean Diamond Atwood ENSCO Seadrill Rowan * Noble backlog is actual as of September 30, 2010. See notes on following slide…
Noble Contract Drilling Backlog 14.0 Billion Extending to 2023 Millions Notes: As of 9.30.2010 Includes 75% performance bonus potential on rigs in Brazil and those rigs under contract with Shell which contain performance bonus…
Contract Backlog: Diversified Geographically with High Quality Counterparties Approximate Backlog Approximate Backlog Potential by Geography Potential by Customer Type Middle East & Africa Small Large North Sea India 3% Independents…
Renewing the Fleet: Phase 1 Phase 1 of the newbuild program added: 3-400 HDHE jackups 4-10,000+ semisubmerisbles Fully contracted 2007 2008 2009 2010 2011 2012 2013 10
Renewing the Fleet: Phase 2 Phase 2 of the newbuild program adds: 4-10,000 DP Drillships Delivered 2011, 2013 Already fully contracted Bully rigs at 440k/day Bully I Bully II Globetrotters at 410k/day + 15% bonus 2011 2012…
Renewing the Fleet: Summary Since 2007, weve added or will add 11 new rigs: Three HDHE 400 jackups Four 10,000+ semisubmersibles (3 dynamically positioned) Four 10,000 dynamically positioned drillships Backlog on these units as of…
Market Outlook to 2020 Oil prices in a 75 - 85 per barrel band, at least near term. Weakened dollar could potentially drive higher Continue to expect rig demand recovery over next several years with progressive growth to the end…
How to Define the New Normal Post- Macondo Some Possible Post-Macondo World Possibilities Most rigs go back to Cooler Heads Prevail work Moratorium ends Reasonable Higher, but manageable investment required Ultimately Higher…
Mexico: Beginning to Sort Itself Out With no action, Pemex jackup rig count could fall to mid-teens at the end of 2010 However, we recently won three short- term, fast-track tenders keep units jackups working through December 31.…
Onward Through the Fog Maintaining Top Tier Margins Operating Safely Planning for the Future Navigating the Uncertainties Delivering on Expectations 16
Our Margins Remain Top Tier Contract Drilling Margins 75% 2008 2009 65 9 Months 2010 55 45 35 * The margins for Rowan Companies represent the combined offshore and onshore business. Source: Noble Corporation,…
Operational Excellence Is Our Heritage and Our Legacy National Offshore Safety Award for Excellence (Three consecutive years 2007-2009) AMERICAS Safest Named to Companies BusinessWeeks Top 50 Offshore Energy Companies for…
Safety Really Does Matter Recordable Incident Rates Noble vs. IADC Safety is a paradigm of the organization and must not be compromised. Noble IADC Source: Noble Corporation and the IADC. 19
Planning for the Future in millions Potential Uses of Cash Continued Wise Growth & Fleet Renewal Continued Share Buybacks Continue Dividends Build Cash * Operating margin = (NI+DDA)/Revenues; actual operating margin for…
Uncertainties Abound Petrobras Newbuild Program PEMEXs Jackup Plans (becoming clearer) U.S. Gulf Of Mexico Impact on Broader Rig Market 21
Noble: One of the Best Values in the Space Noble continues to be undervalued Noble has and continues to add new units to the fleet 11 new units delivered 2007-2013 8 BN in backlog Balance sheet remains strong Expected 28% debt…
Noble Corporation Noble Corporation Dorfstrasse 19a 6340 Baar Switzerland www.noblecorp.com Investor contact: Lee M. Ahlstrom Vice President IR & Planning 281-276-6440
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