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NOBLE CORPORATION PLC ANNOUNCES THIRD QUARTER 2024 RESULTS AND ADDITIONAL SHARE REPURCHASE AUTHORIZATION

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Noble reported Q3 2024 results following the closure of Diamond acquisition on September 4th. Key highlights include: net income of $61 million, diluted EPS of $0.40, and Adjusted EBITDA of $291 million. The company generated $284 million in operating cash flow and $165 million in free cash flow. The Board approved a $0.50 per share dividend for Q4 2024 and authorized an additional $400 million share repurchase program. Q4 2024 guidance projects revenue of $850-890 million and Adjusted EBITDA of $275-305 million. The company's current backlog stands at $6.2 billion.

Noble ha riportato i risultati del terzo trimestre 2024 dopo la chiusura dell'acquisizione di Diamond avvenuta il 4 settembre. Tra i punti salienti ci sono: reddito netto di 61 milioni di dollari, EPS diluito di 0,40 dollari e EBITDA rettificato di 291 milioni di dollari. L'azienda ha generato 284 milioni di dollari in flusso di cassa operativo e 165 milioni di dollari in flusso di cassa libero. Il Consiglio ha approvato un dividendo di 0,50 dollari per azione per il quarto trimestre 2024 e ha autorizzato un ulteriore programma di riacquisto di azioni da 400 milioni di dollari. Le previsioni per il quarto trimestre 2024 prevedono un fatturato compreso tra 850 e 890 milioni di dollari e un EBITDA rettificato di 275-305 milioni di dollari. L'attuale portafoglio dell'azienda ammonta a 6,2 miliardi di dollari.

Noble presentó los resultados del tercer trimestre de 2024 tras el cierre de la adquisición de Diamond el 4 de septiembre. Los puntos destacados incluyen: ingresos netos de 61 millones de dólares, EPS diluido de 0,40 dólares y EBITDA ajustado de 291 millones de dólares. La empresa generó 284 millones de dólares en flujo de caja operativo y 165 millones de dólares en flujo de caja libre. La Junta aprobó un dividendo de 0,50 dólares por acción para el cuarto trimestre de 2024 y autorizó un programa adicional de recompra de acciones por 400 millones de dólares. Las proyecciones para el cuarto trimestre de 2024 prevén ingresos de entre 850 y 890 millones de dólares y un EBITDA ajustado de 275-305 millones de dólares. La cartera actual de la empresa se sitúa en 6,2 mil millones de dólares.

노블은 9월 4일 다이아몬드 인수 완료 후 2024년 3분기 결과를 발표했습니다. 주요 하이라이트로는 순이익 6천만 달러, 희석 주당순이익 0.40달러, 조정 EBITDA 2억 9천1백만 달러가 있습니다. 이 회사는 운영 현금 흐름으로 2억 8천4백만 달러, 자유 현금 흐름으로 1억 6천5백만 달러를 창출했습니다. 이사회는 2024년 4분기 주당 0.50달러 배당금을 승인했으며, 추가로 4억 달러 규모의 자사주 매입 프로그램을 승인했습니다. 2024년 4분기 가이던스는 매출이 8억 5천만에서 8억 9천만 달러, 조정 EBITDA가 2억 7천5백만에서 3억 5백만 달러에 이를 것으로 예상됩니다. 현재 회사의 미결 주문 잔고는 62억 달러입니다.

Noble a annoncé les résultats du troisième trimestre 2024 suite à la clôture de l'acquisition de Diamond le 4 septembre. Les points saillants incluent : revenu net de 61 millions de dollars, EPS dilué de 0,40 dollar, et EBITDA ajusté de 291 millions de dollars. L'entreprise a généré 284 millions de dollars de flux de trésorerie d'exploitation et 165 millions de dollars de flux de trésorerie disponible. Le Conseil a approuvé un dividende de 0,50 dollar par action pour le quatrième trimestre 2024 et a autorisé un programme de rachat d'actions supplémentaire de 400 millions de dollars. Les prévisions pour le quatrième trimestre 2024 projettent un chiffre d'affaires de 850 à 890 millions de dollars et un EBITDA ajusté de 275 à 305 millions de dollars. Le carnet de commandes actuel de l'entreprise s'élève à 6,2 milliards de dollars.

Noble berichtete über die Ergebnisse des dritten Quartals 2024 nach dem Abschluss der Übernahme von Diamond am 4. September. Zu den wichtigsten Highlights gehören: Nettoeinkommen von 61 Millionen Dollar, verwässertes EPS von 0,40 Dollar und bereinigtes EBITDA von 291 Millionen Dollar. Das Unternehmen generierte 284 Millionen Dollar an operativem Cashflow und 165 Millionen Dollar an freiem Cashflow. Der Vorstand genehmigte eine Dividende von 0,50 Dollar pro Aktie für das vierte Quartal 2024 und ermächtigte ein zusätzliches Aktienrückkaufprogramm über 400 Millionen Dollar. Die Prognose für das vierte Quartal 2024 beträgt einen Umsatz von 850–890 Millionen Dollar und ein bereinigtes EBITDA von 275–305 Millionen Dollar. Der aktuelle Auftragsbestand des Unternehmens beträgt 6,2 Milliarden Dollar.

Positive
  • Secured additional 4.8 years of backlog from ExxonMobil Guyana
  • Strong Q3 free cash flow of $165 million
  • Increased shareholder returns with new $400M share buyback authorization
  • Contract drilling services revenue increased to $764M from $661M QoQ
  • Marketed fleet utilization improved to 82% from 78% QoQ
Negative
  • Net income decreased to $61M from $195M QoQ
  • Softer utilization environment expected throughout 2025
  • Contract drilling costs increased to $434M from $336M QoQ
  • contract fixtures for lower specification floaters in 2024
  • Total debt principal of approximately $2.0B

Insights

Noble's Q3 results demonstrate solid financial performance with $801 million in revenue and $291 million in Adjusted EBITDA. The acquisition of Diamond has started contributing positively, with contract drilling revenue up 15.6% quarter-over-quarter to $764 million.

Key positives include strong free cash flow of $165 million, increased shareholder returns with a $400 million additional buyback authorization and a maintained quarterly dividend of $0.50 per share. The $6.2 billion backlog provides revenue visibility, enhanced by ExxonMobil Guyana's 4.8-year extension.

However, near-term challenges exist with softer utilization expected in 2025 for lower-spec floaters. The balance sheet carries $2.0 billion in debt against $392 million in cash, though robust cash generation supports the capital return strategy.

The offshore drilling market shows a diverging trend between high-end and lower-specification assets. Premium drillships maintain strong dayrates of $400,000-$500,000, while lower-tier assets face utilization pressure. The North Sea jackup market remains stable in Norway ($200,000+/day) but faces regulatory uncertainties in the Southern region.

Noble's fleet utilization improvements (marketed fleet at 82%, up from 78%) and strategic positioning in premium assets should help weather market softness. The Q4 guidance of $850-890 million revenue suggests continued operational strength despite market challenges.

  • Closed Diamond acquisition on September 4th
  • Increased capital return program with additional share repurchase authorization of $400 million
  • Repurchased 6.9 million of shares in Q3 2024, $0.50 per share dividend declared for Q4 2024, bringing total FY 2024 cash returns to shareholders to over $525 million, including Q4 dividend
  • Q3 Net Income of $61 million, Diluted Earnings Per Share of $0.40, Adjusted EBITDA of $291 million, net cash provided by operating activities of $284 million, and Free Cash Flow of $165 million
  • Q4 2024 Guidance provided as follows: Total Revenue $850 to $890 million, Adjusted EBITDA $275 to $305 million, Capital Additions (net of reimbursements) $105 to $135 million

SUGAR LAND, Texas, Nov. 5, 2024 /PRNewswire/ -- Noble Corporation plc (NYSE: NE, CSE: NOBLE, "Noble" or the "Company") today reported third quarter 2024 results.



Three Months Ended

(in millions, except per share amounts)


September 30,
2024


September 30,
2023


June 30,
2024

Total Revenue


$                   801


$                   697


$                   693

Contract Drilling Services Revenue


764


671


661

Net Income (Loss)


61


158


195

Adjusted EBITDA*


291


283


271

Adjusted Net Income (Loss)*


89


127


105

Basic Earnings (Loss) Per Share


0.41


1.14


1.37

Diluted Earnings (Loss) Per Share


0.40


1.09


1.34

Adjusted Diluted Earnings (Loss) Per Share*


0.58


0.87


0.72








* A Non-GAAP supporting schedule is included with the statements and schedules in this press release.

Robert W. Eifler, President and Chief Executive Officer of Noble Corporation plc, stated "We are excited to have closed on the Diamond acquisition during the third quarter, enabling us to start capturing the value from the transaction earlier than expected. Our strategy of pursuing rational and accretive growth in the high-end deepwater segment toward an ultimate objective of maximizing cash returns to shareholders is yielding tangible results, as evidenced by robust third quarter free cash flow and a sector leading dividend and buyback program. Despite a more muted near-term demand environment than we had envisioned coming into this year, Noble is uniquely well positioned to deliver customer and shareholder value through various market conditions."

Third Quarter Results
Contract drilling services revenue for the third quarter of 2024 totaled $764 million compared to $661 million in the second quarter of 2024, with the sequential increase driven primarily by an approximate four weeks of contribution from the legacy Diamond fleet. Marketed fleet utilization was 82% in the three months ended September 30, 2024, compared to 78% in the previous quarter. Contract drilling services costs for the third quarter of 2024 were $434 million, up from $336 million for the second quarter of 2024, with the sequential increase driven by the legacy Diamond fleet and partially offset by lower contract preparation and mobilization expenses. Net income decreased to $61 million in the third quarter of 2024, down from $195 million in the second quarter of 2024, and Adjusted EBITDA increased to $291 million in the third quarter of 2024, up from $271 million in the second quarter of 2024. Net cash provided by operating activities in the third quarter of 2024 was $284 million, net capital expenditures were $119 million, and free cash flow (non-GAAP) was $165 million.

Balance Sheet, Capital Allocation, and Increased Shareholder Return Authorization
The Company's balance sheet as of September 30, 2024, reflected total debt principal value of approximately $2.0 billion and cash (and cash equivalents) of $392 million.

The Company repurchased approximately 6.9 million shares in the third quarter for $250 million, bringing total repurchases executed under the original $400 million program to $360 million. On October 22, 2024, Noble's Board of Directors authorized an increased share repurchase authorization of up to an additional $400 million, subject to any applicable shareholder approval limits. This authorization does not have a fixed expiration, and may be modified, suspended or discontinued at any time. The program does not obligate the Company to acquire any particular amount of shares.

On November 5, 2024, Noble's Board of Directors approved an interim quarterly cash dividend on our ordinary shares of $0.50 per share for the fourth quarter of 2024. The $0.50 dividend is expected to be paid on December 19, 2024, to shareholders of record at close of business on December 5, 2024. The Company intends to continue to pay dividends on a quarterly basis, and the fourth quarter dividend represents $2.00 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.

Operating Highlights and Backlog
Noble's marketed fleet of twenty-five floaters was 81% contracted during the third quarter (including nine marketed floaters from the legacy Diamond fleet on a partial quarter basis from September 4, 2024), compared with 78% in the prior quarter. Industry leading edge dayrates for tier-1 drillships remain in the mid $400,000s to low $500,000s per day range. Contract fixtures for lower specification floaters have been limited in 2024, and are expected to reflect a softer utilization environment throughout 2025 due to continuing white space risk that is impacting all floater segments.

Utilization of Noble's thirteen marketed jackups improved to 83% in the third quarter, compared with 77% in the prior quarter. Leading edge harsh environment jackup dayrates remain in the mid $200,000s per day in Norway and $130,000 to $150,000 per day in the rest of the North Sea. The Northern Europe jackup market continues to indicate potential for a slight demand improvement in Norway for 2025, while policy and permitting factors present potential headwinds for the Southern North Sea.

Subsequent to last quarter's earnings press release, ExxonMobil Guyana awarded an additional 4.8 years of backlog under the Commercial Enabling Agreement (CEA), intended to extend the contract duration for each of our four drillships operating under the CEA from Q2 2027 to Q3 2028. Additionally, the Ocean Endeavor has been awarded an additional 130 days with Shell in the UK North Sea.

Noble's current backlog as of November 5, 2024 stands at $6.2 billion.

Outlook
For the fourth quarter of 2024, Noble is providing guidance as follows: Total revenue in the range of $850 to $890 million; Adjusted EBITDA in the range of $275 to $305 million, and capital additions (net of reimbursements) in the range of $105 to $135 million.

Commenting on Noble's outlook, Mr. Eifler stated, "We remain encouraged by the high level of tangible contract opportunities in our commercial pipeline which is expected to drive a backlog inflection sometime next year. In the meantime, Noble is poised to generate robust cash flow amid sub-optimal utilization over the near term. We remain committed to returning essentially all free cash flow to shareholders and are pleased to announce a second $400 million share repurchase authorization."

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 fourth quarter 2024 GAAP financial results.

Conference Call
Noble will host a conference call related to its third quarter 2024 results on Wednesday, November 6th, 2024, at 8:00 a.m. U.S. Central Time. Interested parties may dial +1 800-715-9871 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 call.

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

About Noble Corporation plc
Noble is a leading offshore drilling contractor for the oil and gas industry. The Company owns and operates one of the most modern, versatile, and technically advanced fleets in the offshore drilling industry. Noble and its predecessors have been engaged in the contract drilling of oil and gas wells since 1921. Noble performs, through its subsidiaries, contract drilling services with a fleet of offshore drilling units focused largely on ultra-deepwater and high specification jackup drilling opportunities in both established and emerging regions worldwide. Additional information on Noble is available at www.noblecorp.com.

Dividend Details and Return of Capital Disclaimers
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.

On October 22, 2024, the Board of Directors approved a share repurchase program of up to $400 million commencing immediately after completion of the prior $400 million share repurchase. All shares purchased under the share repurchase programs are cancelled. The share repurchase programs take place within the limitations of the general authority previously granted by shareholders, or any authorization to be granted at a future general meeting of the Company. As of today, the repurchase programs do not have fixed expirations, and may be modified, suspended or discontinued at any time. The programs do not obligate the Company to acquire any particular amount of shares.

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, costs, the benefits or results of acquisitions or dispositions such as the acquisition of Diamond Offshore Drilling, Inc. (the "Diamond Transaction"), free cash flow expectations, capital expenditures, capital additions, capital allocation expectations, including planned dividends and share repurchases, contract backlog, rig demand, expected future contracts, anticipated contract start dates, major project schedules, dayrates and duration, any asset sales, access to capital, fleet condition and utilization, timing and amount of insurance recoveries and 2024 financial guidance. 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 "guidance," "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "on track," "plan," "possible," "potential," "predict," "project," "should," "would," "achieve," "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, including, but not limited to, risks related to the recently completed Diamond Transaction, including the risk that the benefits of the transaction may not be fully realized or may take longer to realize than expected. 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 or buyback program will be declared or continued.

 

NOBLE CORPORATION plc AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)




Three Months Ended September 30,


Nine Months Ended September 30,



2024


2023


2024


2023

Operating revenues









Contract drilling services


$         763,543


$         671,004


$      2,036,678


$      1,852,474

Reimbursables and other


37,006


26,446


93,799


93,565



800,549


697,450


2,130,477


1,946,039

Operating costs and expenses









Contract drilling services


434,192


354,199


1,159,913


1,078,521

Reimbursables


28,185


16,682


69,196


67,484

Depreciation and amortization


109,879


77,146


287,347


218,412

General and administrative


43,596


33,039


109,226


95,428

Merger and integration costs


69,214


12,966


89,163


47,049

(Gain) loss on sale of operating assets, net




(17,357)


Hurricane losses and (recoveries), net



2,642



22,120



685,066


496,674


1,697,488


1,529,014

Operating income (loss)


115,483


200,776


432,989


417,025

Other income (expense)









Interest expense, net of amounts capitalized


(24,951)


(13,005)


(54,491)


(44,539)

Gain on bargain purchase



5,005



5,005

Gain (loss) on extinguishment of debt, net





(26,397)

Interest income and other, net


2,292


17,206


(10,626)


16,292

Income (loss) before income taxes


92,824


209,982


367,872


367,386

Income tax benefit (provision)


(31,608)


(51,659)


(16,167)


(35,184)

Net income (loss)


$           61,216


$         158,323


$         351,705


$         332,202

Per share data









Basic:









Net income (loss)


$              0.41


$              1.14


$              2.43


$              2.42

Diluted:









Net income (loss)


$              0.40


$              1.09


$              2.37


$              2.29

 

NOBLE CORPORATION plc AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)




September 30, 2024


December 31, 2023

ASSETS





Current assets





Cash and cash equivalents


$            391,858


$            360,794

Accounts receivable, net


752,270


548,844

Prepaid expenses and other current assets


266,563


152,110

Total current assets


1,410,691


1,061,748

Intangible assets


1,580


10,128

Property and equipment, at cost


6,795,699


4,591,936

Accumulated depreciation


(746,262)


(467,600)

Property and equipment, net


6,049,437


4,124,336

Other assets


573,436


311,225

Total assets


$          8,035,144


$          5,507,437

LIABILITIES AND EQUITY





Current liabilities





Accounts payable


$            405,907


$            395,165

Accrued payroll and related costs


119,665


97,313

Other current liabilities


374,893


149,202

Total current liabilities


900,465


641,680

Long-term debt


1,981,237


586,203

Other liabilities


445,096


307,451

Noncurrent contract liabilities


23,397


50,863

Total liabilities


3,350,195


1,586,197

Commitments and contingencies





Total shareholders' equity


4,684,949


3,921,240

Total liabilities and equity


$          8,035,144


$          5,507,437

 

NOBLE CORPORATION plc AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)




Nine Months Ended September 30,



2024


2023

Cash flows from operating activities





Net income (loss)


$                351,705


$                332,202

Adjustments to reconcile net income (loss) to net cash flow from operating activities:





Depreciation and amortization


287,347


218,412

Amortization of intangible assets and contract liabilities, net


(46,580)


(95,540)

Gain on bargain purchase



(5,005)

(Gain) loss on extinguishment of debt, net



26,397

(Gain) loss on sale of operating assets, net


(17,357)


Changes in components of working capital and other operating activities


(55,854)


(189,618)

Net cash provided by (used in) operating activities


519,261


286,848

Cash flows from investing activities





Capital expenditures


(434,653)


(268,131)

Proceeds from insurance claims


16,426


Cash paid in stock-based business combination, net


(400,458)


Proceeds from disposal of assets, net


4,885


Net cash provided by (used in) investing activities


(813,800)


(268,131)

Cash flows from financing activities





Issuance of debt


824,000


600,000

Borrowings on credit facilities


35,000


Repayments of credit facilities


(35,000)


Repayments of debt



(673,411)

Debt extinguishment costs



(25,697)

Debt issuance costs


(10,002)


(24,914)

Warrants exercised


628


156

Share repurchases


(250,000)


(80,000)

Dividend payments


(198,150)


(42,369)

Taxes withheld on employee stock transactions


(57,167)


(8,612)

Other


22,578


Net cash provided by (used in) financing activities


331,887


(254,847)

Net increase (decrease) in cash, cash equivalents and restricted cash


37,348


(236,130)

Cash, cash equivalents and restricted cash, beginning of period


367,745


485,707

Cash, cash equivalents and restricted cash, end of period


$                405,093


$                249,577

 

NOBLE CORPORATION plc AND SUBSIDIARIES

OPERATIONAL INFORMATION

(Unaudited)



Average Rig Utilization (1)


Three Months Ended


Three Months Ended


Three Months Ended


September 30, 2024


June 30, 2024


September 30, 2023

Floaters

72 %


70 %


77 %

Jackups

83 %


77 %


64 %

Total

76 %


73 %


72 %














Operating Days


Three Months Ended


Three Months Ended


Three Months Ended


September 30, 2024


June 30, 2024


September 30, 2023

Floaters

1,418


1,138


1,348

Jackups

991


914


824

Total

2,409


2,052


2,172














Average Dayrates


Three Months Ended


Three Months Ended


Three Months Ended


September 30, 2024


June 30, 2024


September 30, 2023

Floaters

$           424,199


$           435,677


$           403,813

Jackups

159,444


155,585


140,775

Total

$           315,295


$           310,962


$           304,040


(1) Average Rig Utilization statistics include all marketed and cold stacked rigs.

 

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 Months Ended

September 30,


Nine Months Ended

September 30,



2024


2023


2024


2023

Numerator:









Net income (loss)


$           61,216


$         158,323


$         351,705


$         332,202

Denominator:









Weighted average shares outstanding - basic


149,727


139,400


144,863


137,478

Dilutive effect of share-based awards


1,877


3,204


1,877


3,204

Dilutive effect of warrants


1,334


3,117


1,502


4,339

Weighted average shares outstanding - diluted


152,938


145,721


148,242


145,021

Per share data









Basic:









Net income (loss)


$              0.41


$              1.14


$              2.43


$              2.42

Diluted:









Net income (loss)


$              0.40


$              1.09


$              2.37


$              2.29

 

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; amortization of intangible assets and contract liabilities, net; 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.

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 may have certain obligations such as non-discretionary debt service that are not deducted from the measure. Such business needs, obligations, and other non-discretionary expenditures that are not deducted from Free Cash Flow would reduce cash available for other uses including return of capital.

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 costs, 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 Months Ended September 30,


Three Months Ended



2024


2023


June 30, 2024

Net income (loss)


$              61,216


$            158,323


$              195,008

Income tax (benefit) provision


31,608


51,659


(5,228)

Interest expense, net of amounts capitalized


24,951


13,005


11,996

Interest income and other, net


(2,292)


(17,206)


8,183

Depreciation and amortization


109,879


77,146


90,770

Amortization of intangible assets and contract liabilities, net


(3,730)


(10,803)


(22,497)

Gain on bargain purchase



(5,005)


Merger and integration costs


69,214


12,966


10,618

(Gain) loss on sale of operating assets, net




(17,357)

Hurricane losses and (recoveries), net



2,642


Adjusted EBITDA


$            290,846


$            282,727


$              271,493

 

Reconciliation of Income Tax Benefit (Provision)







Three Months Ended September 30,


Three Months Ended



2024


2023


June 30, 2024

Income tax benefit (provision)


$             (31,608)


$             (51,659)


$                  5,228

Adjustments







Amortization of intangible assets and contract liabilities, net


90


6,079


101

Joint taxation scheme compensation



(1,981)


Gain (loss) on sale of operating assets, net




2,500

Discrete tax items


(37,688)


(17,088)


(63,067)

Total Adjustments


(37,598)


(12,990)


(60,466)

Adjusted income tax benefit (provision)


$             (69,206)


$             (64,649)


$               (55,238)

 

NOBLE CORPORATION plc AND SUBSIDIARIES

NON-GAAP MEASURES AND RECONCILIATION

(In thousands, except per share amounts)

(Unaudited)

 






Reconciliation of Net Income (Loss)









Three Months Ended September 30,


Three Months Ended



2024


2023


June 30, 2024

Net income (loss)


$              61,216


$            158,323


$              195,008

Adjustments







Amortization of intangible assets and contract liabilities, net


(3,640)


(4,724)


(22,396)

Joint taxation scheme compensation



(19,837)


Gain on bargain purchase



(5,005)


Merger and integration costs


69,214


12,966


10,618

(Gain) loss on sale of operating assets, net




(14,857)

Hurricane losses and (recoveries), net



2,642


Discrete tax items


(37,688)


(17,088)


(63,067)

Total Adjustments


27,886


(31,046)


(89,702)

Adjusted net income (loss)


$              89,102


$            127,277


$              105,306








Reconciliation of Diluted EPS









Three Months Ended September 30,


Three Months Ended



2024


2023


June 30, 2024

Unadjusted diluted EPS


$                  0.40


$                  1.09


$                    1.34

Adjustments







Amortization of intangible assets and contract liabilities, net


(0.02)


(0.03)


(0.15)

Joint taxation scheme compensation



(0.14)


Gain on bargain purchase



(0.03)


Merger and integration costs


0.45


0.08


0.06

(Gain) loss on sale of operating assets, net




(0.10)

Hurricane losses and (recoveries), net



0.02


Discrete tax items


(0.25)


(0.12)


(0.43)

Total Adjustments


0.18


(0.22)


(0.62)

Adjusted diluted EPS


$                  0.58


$                  0.87


$                    0.72








Reconciliation of Free Cash Flow









Three Months Ended September 30,


Three Months Ended



2024


2023


June 30, 2024

Net cash provided by (used in) operating activities


$            283,781


$            138,768


$              106,791

Capital expenditures, net of proceeds from insurance claims


(119,104)


(98,601)


(132,513)

Free cash flow


$            164,677


$              40,167


$               (25,722)

 

NOBLE OFFSHORE DRILLING INC.
UNAUDITED SELECTED FINANCIALS

On the Merger Effective Date, Diamond Offshore Drilling, Inc. merged into Noble Offshore Drilling, Inc. with Noble Offshore Drilling, Inc. being the surviving entity.

The indenture governing the 8.500% Senior Secured Second Lien Notes due October 2030 issued by Diamond Foreign Asset Company and Diamond Finance, LLC ("Diamond Second Lien Notes") contains a covenant that requires Noble Offshore Drilling, Inc., as a successor Guarantor, to furnish to holders of the Diamond Second Lien Notes certain financial information relating to Noble Offshore Drilling, Inc. and its restricted subsidiaries.



September 30, 2024

Balance Sheets



Cash and cash equivalents                                                                                                              


$                 179,801

Total current assets


455,946

Total current liabilities


298,270

Total debt


1,171,316

Total shareholders' equity


864,444

 



Consolidated Diamond
Offshore Drilling, Inc.


Consolidated Noble
Offshore Drilling, Inc.



Period from
July 1, 2024
through
September 3, 2024


Period from
September 4, 2024
through
September 30, 2024

Statements of Operations





Operating revenues


$                   197,013


$                   94,380

Operating costs and expenses


142,917


95,246

Depreciation and amortization


22,210


11,357






Statements of Cash Flows





Net cash provided by (used in) operating activities


$                     56,867


$                    (8,887)

Capital expenditures


(17,434)


(10,562)

Proceeds from disposal of assets, net


8,910


5,575

Dividend payments



 

Cision View original content:https://www.prnewswire.com/news-releases/noble-corporation-plc-announces-third-quarter-2024-results-and-additional-share-repurchase-authorization-302296981.html

SOURCE Noble Corporation plc

FAQ

What was Noble 's (NE) Q3 2024 net income?

Noble reported a net income of $61 million for Q3 2024.

How much is Noble 's (NE) new share repurchase authorization?

Noble's Board authorized an additional share repurchase program of up to $400 million.

What is Noble 's (NE) Q4 2024 dividend amount?

Noble declared a quarterly dividend of $0.50 per share for Q4 2024.

What is Noble 's (NE) current contract backlog as of November 2024?

Noble 's current backlog stands at $6.2 billion as of November 5, 2024.

Noble Corporation plc

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Oil & Gas Drilling
Drilling Oil & Gas Wells
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United States of America
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