Noble Corporation Dynamically Positioned for Success David W. Williams Chairman, President & Chief Executive Officer Barclays Capital CEO Energy/Power Conference September 15-16, 2010 New York
Todays Discussion Who is Noble A Strategic Investment in Deepwater 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
Strategic Investment in Deepwater Added 6 floating drilling rigs including two Contracts for two ultra-deepwater drillships ultra-deepwater Bully drillships plus 1 FPSO including the Noble Globetrotter currently under…
Investment Creates Second Largest Backlog in Industry millions 35,000 Estimated by ODS and includes estimates of Others backlog by ODS where dayrates have not been 30,000 made public. Jackups 26,925 Floaters 25,000 20,000…
Significant Portion of Fleet is Dynamically Positioned Floating Rigs 80 73 Moored 70 DP 60 With the Frontier acquisition and new Globetrotter construction, 50 50% of Nobles floating fleet will be DP 40 33 30 24 19 18…
Contract Backlog: Diversified Geographically with High Quality Counterparties Approximate Backlog Approximate Backlog Potential by Geography Potential by Customer Type North Sea Middle East Small Large 4% Africa Independents…
Rig Market Outlook to 2020 Recovery of demand in 2010 with progressive growth to the end of the decade Major areas of growth for jackups will be Middle East, Mexico and Asia Pacific Major areas of growth for floaters will be Brazil…
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…
Pre-Macondo: UDW Expected to Account for 50% of Total Production by 2020 Source: PFC Energy 12
Factors Impacting the Post-Macondo World in the U.S. Gulf of Mexico Moratorium Production Delays Environment Post- Pre-Macondo Impact Additional Macondo World Statement Legislation Delays World Cost Increases…
Example: Potential Impact of CLEAR Act on Gulf of Mexico Operators Operators of Deepwater GOM Leases (2009) < 3 billion Shareholder Equity/PFC Energy estimates Note: Assumes 300 mm liability cap per CLEAR Act and 10x multiplier…
Decline Never Sleeps, So There Is A Continuous Need To Drill GOM decline rates are 10-15% for shallow; 20-25% for deepwater (mb/d) GlobalDeepwater DeepwaterOil OilProduction byby Production Project Start Project Year Start Year…
Scenario 2: 12% Decrease in Total Daily Production in 2010 Still Not Worst Case Cumulative 2010 2020 production loss = Over 950 million boe Note: Assumes 300 mm liability cap per CLEAR Act and 10x multiplier to qualify as an operator…
The Impact on NobleSo Far Before Macondo Today Comment Earned dayrate in 3,025 M 685 k Noble Danny Adkins the GoM has resumed work Personnel in Gulf 772 595 177 personnel not Coast Division hired Share Price 41.91 34.40 More…
Onward Through the Fog Adding Backlog Maintaining Top Tier Margins Operating Safely Planning for the Future Navigating the uncertainties Delivering on expectations 19
Our Margins Remain Top Tier Contract Drilling Margins 75% 2008 2009 65 1H 2010 55 45 35 NE DO ESV SDRL RDC RIG PDE Note: The margins for Rowan Companies represent the combined offshore and onshore business…
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 6.0 paradigm of the 5.0 organization and must not be 4.0 compromised. 3.0 2.0 1.0 .0 5 6 7 8 9 0 1 2 3 4 5 6…
Planning for the Future in millions 15,000 6,134 Potential Uses of 13,210 Cash Continued Wise 10,000 Growth & Fleet Renewal 7,076 Continued Share 5,000 Buybacks Continue Dividends 0 Build Cash Backlog Costs (Assuming…
Uncertainties Abound Petrobras Newbuild Program PEMEXs Jackup Plans U.S. Gulf Of Mexico Impact on Broader Rig Market 25
Following Through on Expectations Plans from Barclays 2009 What Weve Done Take advantage of downtime to Legged-up the Noble Roger Lewis complete needed shipyard Moving forward on the drillship upgrades inspections, repairs, and…
Noble: One of the Best Values in the Space Frontier/Shell transactions: Doubled the backlog Increased our floating fleet Reduced uncertainty Balance sheet remains strong Expected 28% debt to total capital at year end Potential…
Noble Corporation Noble Corporation Dorfstrasse 19a 6340 Baar Switzerland www.noblecorp.com Investor contact: Lee M. Ahlstrom Vice President IR & Planning 281-276-6440
Globetrotter Details
Globetrotter-Class Newbuild Nobles Next-Generation Drillship Economics Specifications Construction Cost: 585 MM Water depth: 10,000 Delivery: Second half 2011 Length: 620 Estimated OPEX: 125k per day Breadth: 105 Under 10-year…
Globetrotter-Class Newbuild Construction Relationship Fixed-price, turn-key construction Hull construction at state of the art private yard in Dalian, China Drilling package outfitted in Holland Overseen by Noble, Huisman and STX…
Globetrotter-Class Newbuild Innovative Design Multi Purpose Tower In-hull Riser with Pipe Setback Quarters, Storage Drums Engines Forward Forward Pipe Setback Drums (2) Construction Drilling Side Side Casing Sizes: 5 13…
Globetrotter-Class Newbuild Versus the Competition Enhanced 8500-Class Semi Globetrotter-class Enterprise-class Pride Newbuild Key Features Ensco 8506 Noble Globetrotter Discoverer India Deep Ocean Molokai In Service Date: 2012…
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