JEFFREY L CHASTAIN JEFFREY L. CHASTAIN Vice President, Investor Relations
Todays Presenters N Noble Corp. Analyst Day 2012 bl C A l t D 2012 David Williams James MacLennan Chairman President and Chairman, President and Senior Vice President Senior Vice President, Chief Executive Officer Chief Financial…
Transforming Noble Julie Robertson Executive Vice President and Corporate Secretary Julie Robertson, Executive Vice President and Corporate Secretary Don Jacobsen, Senior Vice President, Industry and Government Affairs Scott Marks,…
2012 ANALYST DAY 2012 ANALYST DAY
DAVID W WILLIAMS DAVID W. WILLIAMS Chairman, President and Chief Executive Officer
Strategic Transformation State Of The Offshore Contract Drilling State Of The Offshore Contract Drilling Business A Good Place to Be
Worldwide Supply and Marketed Utilization Deepwater Floaters 4,000 and greater Other Floaters up to 3,999 Total Supply Total Supply Marketed Utilization % Marketed Utilization % Total Supply Total Supply Marketed Utilization %…
Worldwide Supply and Marketed Utilization Jackups Built After 2000 Jackups Built Before 2000 Total Total Supply Supply Marketed Marketed Utilization % Utilization % Total Total Supply Supply Marketed Utilization % Marketed…
Current State of the Offshore Drilling Business Major Fundamental Drivers Major Fundamental Drivers Sustained level of crude oil price Exploration success Exploration success Geographic expansion Shift to field development…
Strategic Transformation State Of The Offshore Contract f h ff h Drilling Business Where Does Noble Go From Here
Steps In Transforming the Fleet ADD: Technologically Advanced Units 6 Newbuilds 8 Newbuilds 3 In Service Since 2007 3 In Service Since 2007 CORE FLEET Premium, Modern Premium Modern MAINTAIN & Versatile Rigs ENHANCE…
Newbuild Shipyard Deliveries Approximately 10 billion in capital committed todate covering capacity additions since 2007 2013 2014 Globetrotter Noble Noble Noble HHI Drillship 2 Don Taylor Bob Douglas Sam Croft Drillship 4…
Nobles Floating Fleet S Strong Growth in Dynamic Positioning Capabilities G hi D i P i i i C bili i Noble Don Taylor Noble Sam Croft 30 Noble Bob Douglas HHI IV DP Bully I (1) Noble Bully I Noble Noble Globetrotter II bl l b…
Where Does Noble Go From Here Further Fleet Expansion Possible Further Fleet Expansion Possible Harsh Environment Semi Design Under Review UltraDeepwater Drillship JU3000N HighSpec Jackups Timing of Further Expansion Does the…
Transforming Noble 1985 2012 Frontier Acquisition of Units* 5 EVA Mid East 80 jjackups p Newbuilds Projects Mid East jackups, 70 Neddrill 2 Semis & 2 Bingo hulls Acquisition 60 6 JU3000E & 50 5 Drillships Under…
Geographic Expansion Noble Scott Marks Opening of Southeast Asia Noble office in ffi i Discoverer Singapore Noble Clyde Boudreaux
Strategic Transformation State State Of The Offshore Contract Of The Offshore Contract Drilling Business Where Does Noble Go From Here Possible Fleet Divestitures Alliance Alli
The Alliance Commitment to work together to achieve stated goals. Constantly engaging both organizations to reinforce the spirit of i ti t i f th i it f openness, which leads to better performance and growth. Goals Leader In…
Noble Bully I & II Drillships Up and Running Noble Bully I Noble Bully I On Contract Mar 2012 On Contract Mar 2012 Noble Bully II On Contract Apr 2012
Noble Globetrotter I On Contract Deepwater Commissioning
Noble Globetrotter I BOP Deployment
Projects Update
Going to Alaska
Brazil Reliability Upgrades Noble Leo Segerius After Before
Newbuild Timeline
Noble Globetrotter II 70% Complete
Six JU3000N Jackups Noble Regina Allen 53% Complete 53% Complete Noble Mick OBrien 18% Complete Noble Houston Colbert 10% Complete Noble Sam Turner Noble Sam Turner Steel Cutting July 2012 Noble Tom Prosser Steel Cutting…
Four UltraDeepwater Drillships Noble Don Taylor 66% Complete 66% Complete Noble Bob Douglas g 38% Complete Noble Sam Croft N bl S C ft Steel Cutting Oct 2012 HHI Drillship 4 Steel Cutting Feb 2013
HSE Update Demonstrate Genuine Care and Concern Measure and Respond to Exposure Conduct Safety Perception Audits Make Safety Personal Celebrate Successes Celebrate Successes
Safety Milestones Q1 2012 NPH, NDW NGA, NJP, NAW, NAH NLJ NCB NTvL, NBJ NPJ % of % of NAH NRE, NLB NLD, Fleet NMO, NEN NHnD NLJ 100 NLB NJH 80 60 40 20 0 1 2 3 4 5 6 7 8 9 10 11 16 17 Yr Yrs Yrs Yrs Yrs Yrs Yrs Yrs…
Recordable Injury Rate History
Lost Time Injury Rate History
Process Safety High reliability organizations, or HROs, share two essential characteristics: They constantly confront the unexpected and operate with remarkable consistency and effectiveness operate with remarkable consistency and…
HSE Improvement Actions Maintaining focus on improved deck time from offshore leadership via the Management by Walking Around ((MBWA) MBWA ) process process Consistent Implementation of Dropped Object Prevention program…
Revenue Efficiency Improvement Addressing Downtime through Data Analysis Training and Development Systems and Processes Systems and Processes By Cause Objectives and Expectations Operations Focused Initiatives d By Location By…
Downtime Distribution All Rig Types 2011 and YTD
Deepwater Downtime Deepwater Rigs 2011 and YTD
Subsea BOP Downtime
BOP Repair from 8,000 ft. of Water Typically 7 To 14 days to retrieve and repair stack
Subsea Reliability Strategy Subsea Operations Excellence Group Field Support Teams Fi ld S T Subsea Engineer Development Program Fleet Spares Program Subsea Maintenance Standards Driving Accountability Individualized…
Digital Training and Support
Control System Training
Top Drive Downtime
Top Drive Reliability Strategy Consolidate Top Drive Models in use based on Performance Stock Fleet Spares to Support Rotations Base Component Rotation on Historical Service Life Implement more Robust Top Drive Maintenance…
Developing Our Crews
Leadership & Talent Management Global Talent Review to support crewing of new build rigs Reviewed over 3,500 offshore employees for performance and p potential Noble PATH Competency and Leadership Development Framework…
Crew Development Ramp Up in Crew Training In 2011, Noble hired and trained over 1,200 new employees. YTD over 350 New Hire Inductions YTD over 500 employees trained in Noble specific YTD over 500 employees trained in Noble…
Subsea Engineer Development
Subsea Engineer Accelerated Development Program Knowledge g Trainee Qualifications Trainee Qualifications Formal Training Formal Training Assessments Mechanics At Entry Level Troubleshooting ROV Techs Periodic MUX Armed…
Driller Development Simulators Training crews on drilling simulators located in Houston and Brazil
Expanding Simulator Based Training New US Training and Advanced courses and scenario Collaboration Center planned simulation will include: for 2013 for 2013 Process safety, well control and down Two cyberchair simulators hole problem…
Leadership Development Operations Management Development Program Operations Subsea/Marine North Marketing Sea Sea Engineering Gulf of Mexico Mexico Middle EastIndia Brazil Australia University degreed candidates…
Technology Discussion NOV Low Force Shear Rams In final stages of qualification More efficient blade geometry M ffi i bl d Reduced accumulator requirements q Capable of shearing a range of tool joints With depth…
From Concept
To Reality
Question & Answer
JAMES MACLENNAN JAMES MACLENNAN Senior Vice President, Chief Financial Officer
Capital Structure and Other Financial Matters Background Financial Comparisons Capital Spending Through The Current Newbuild Program Liquidity Considerations Where Are We In The Cycle Where Are We In The Cycle Use Of Cash
Background Returned To Noble In January 2012 Previously Employed With Company In The 1990s Responsibilities Included Accounting, Internal Audit, Risk, Investor Relations, & Special P j t Projects Led Acquisition Teams Chiles…
Background Noble: Then And Now Noble: Then And Now Then: 1990s Company Characterized As Disciplined, Focused, Conservative Now: Equally Disciplined, Similarly Focused, Every Bit As Conservative Nearterm Focus Nearterm Focus…
Financial Comparison ( millions, except per share) Financial Guidance Outstanding l d d 2012 2011 2010 2009 Outlook Actual Actual Actual Contract Drilling Revenues 2,557 2,695 3,510 Other Revenues 139 112 131 Operating Revenues…
Financial Comparison ( millions, except per share) 2012 2011 2010 2009 Outlook Actual Actual Actual Contract Drilling Margin 45.9% 56.3% 71.3% Average Dayrate ( thousands) 148.2 152.3 197.1 Daily y Drilling g Costs (…
Projected Capital Expenditures (2012 2015) ( Millions) 2,500 Newbuilds 2,300 , Sustaining Capital Sustaining Capital Major Projects & Other Capitalized Interest 2,000 1,900 2,000 1,500 1,000 700 500 0…
Increase Borrowing Capacity Under Revolving Debt Facility Rationale: Substantial Capital Spending On Fleet E Expansion i Greater Number Of Rigs In Fleet Financial Flexibility & Liquidity Fi i l Fl ibili & Li idi Existing…
Total Debt and Newbuild Capex Total Debt and Newbuild Capex by Year Debt / Total Capital by Year 50% 5.5 5 4 5.4 ( Billions) 4.9 40% Target Range 35% 36% 4.1 33% 33% 27% 2.8 20% 1.7 10% 22 million 1 5 1.5 0.8…
Question & Answer
ROGER HUNT ROGER HUNT Senior Vice President, Marketing & Contracts
Agenda Leading indicators Regional review Drilling Contracts in the PostMacondo era
Agenda Leading indicators Regional review Drilling Contracts in the PostMacondo era
Leading Indicators Offshore Licensing 2012 Planned, Open and Recently Closed Activity Iceland 43,000 sq. km. Newfoundland UK 27th Norway 22nd Round, Arctic Greenland Round Region 20,000 sq. km. Nova Scotia China 20,000…
Leading Indicators Offshore Seismic Demand Norway Black Sea Arctic Arctic E. Med US GOM Asia Pac W. Africa East & South Source: PFC Energy S. America Africa India
Leading Indicators Deepwater Open Demand Open Demand by Client Type of Well 100% Majors j 89% 19% 75% 50% 54% I d Independents d 27% 25% NOCs 11% 0% E l ti Exploration D l Development t 1 3 4 3 4 2 7 1 1 1…
Leading Indicators UltraDeepwater Construction & Rollover UDW Fleet Contract Status April 2012 2012 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Total Newbuild Contracted Newbuild Contracted 6 4 4 0 0 3 0 2 0 0 1…
Agenda Leading indicators Regional review Drilling Contracts in the PostMacondo era
Hyundai Drillships Advantages over competing models: i d l Retractable thrusters Derrick setback 3500 kips Derrick setback 3500 kips (versus 2400 kips) Better station keeping p g ability More usable open d k deck space…
F&G JU3000N Jackup Friede & Goldman JU3000N 2.5MM lb. SHL derrick 7 500 bbl mud system 7,500 bbl. mud system 150 man quarters 6 identical Noble units 6 identical Noble units with deliveries beginning in Q1 2013 Only 5 others…
Western Hemisphere Review U.S. Gulf of Mexico World-class hydrocarbon play Alaska / Arctic Expected to surpass pre-Macondo rig count levels in near term Will execute a 2-rig campaign in 2012 Customer focus on high grading fleet…
Eastern Hemisphere Review North Sea Noble very well positioned Largest jackup player and price leader in standard segment Norway N market k t (and ( d even UK) buoyant b t JU3000N well placed against very high specification…
Eastern Hemisphere Review North Sea Noble very well positioned Largest jackup player and price leader in standard segment Norway N market k t (and ( d even UK) buoyant b t JU3000N well placed against very high specification…
Southeast Asia Review Vietnam Thailand JU opportunities for newbuilds for subsea campaigns duration of Newbuilds with offline capabilities programs increasing and extended reach sought by Market can still be serviced by older…
SE Asia Jackup Fixtures & Deliveries 2005 2012YTD (300 IC) 250,000 200,000 150,000 Delivered Pre 2004 Delivered Post 100,000 , 2004 50,000 Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 40 35 30 25…
Australia / New Zealand Review Northwest Shelf Robust market for mid-water moored semi-submersibles, and focusing on newer assets Increasing opportunities for deepwater units as Operators expand into deeper waters further…
Agenda Leading indicators Regional review Drilling Contracts in the PostMacondo era
Drilling Contracts: PostMacondo Nobles contract standards set the hurdle high Risk allocation Ri k ll ti Termination rights Changes in government regulations Cost escalation protection Subsea downtime Indexed dayrates
Question & Answer
DAVID W WILLIAMS DAVID W. WILLIAMS Chairman, President and Chief Executive Officer
Transforming Noble We believe the contract drilling business is supported by a unique combination of events that together by a unique combination of events that, together, form a strong fundamental backdrop that offers…
Geologic Potential Remains Strong Is There Another PreSalt Hydrocarbon Structure h h l d b Petrobras UltraDeepwater Rig Commitments Map of Africa for Deployment in PreSalt for Deployment in Pre Salt Brazil Brazil Highlighting the…
Transforming Noble Noble Is Differentiating Itself In This Robust Business Environment: Business Environment: Premium Assets Unique Technology Geographic Expansion Geographic Expansion Improved Operations, Processes, and…
Value Impact of Fleet Transformation d b Estimated Revenue Distribution 2011 Actuals 2011 Actuals 2015 Projection 2015 Projection 23% 24% 33% 11% 40% 4% 31% 6% 6% 22% Ultradeepwater Other Floater Standard Jackup…
Attractive Leverage to Rising Dayrates ( Millions) Annual Estimated Revenue Contribution From 2,000 Uncontracted New Deepwater and Jackup Capacity 1,894 C t t d D ill hi and Jackup Contracted Drillships dJ k 1,756 1,669 3…
Value Impact of Fleet Transformation Total Revenues l ( Billions) 10 8 7.4 6 4 3.6 2 0 2009 Actual Peak Dayrate Case Cycle Peak Projection Source: Noble Internal Estimates
Transforming Noble Transformation Superior, Premium Fl t Fleet Reliability y Enhanced Operational Performance Execution Improved Financial Results Safety Preferred Employer
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