EX-99.1 2 h86463ex99-1.txt PRESS RELEASE - ANNOUNCING FINANCIAL RESULTS 1 EXHIBIT 99.1 [NOBLE LETTERHEAD] NOBLE DRILLING REPORTS FIRST QUARTER 2001 RESULTS SUGAR LAND, Texas, April 25, 2001 -- Noble Drilling Corporation's reported net income increased 114 percent for the first quarter of 2001 to $54.5 million, or $0.40 per diluted share, on operating revenues of $222.4 million, compared to net income of $25.5 million, or $0.19 per diluted share, on operating revenues of $184.8 million for the first quarter of 2000. James C. Day, Chairman and Chief Executive Officer, said, "Our excellent financial results speak for themselves. All areas of the Company's operations continued to improve." At March 31, 2001, the Company's consolidated balance sheet reflected $1.650 billion in shareholders' equity, $220.7 million in cash and cash equivalents, and $685.0 million in total debt. Offshore contract drilling services revenues from deepwater drilling units (capable of drilling in 3,000 feet and greater) accounted for approximately 42 percent and 50 percent of the Company's total offshore contract drilling services revenues for the first quarter of 2001 and 2000, respectively. All six of the Company's deepwater semisubmersibles activated since December 1998 are operating under long-term contracts, with five in the Gulf of Mexico and one offshore Brazil. Offshore contract drilling services revenues from international sources accounted for approximately 45 percent and 52 percent of the Company's total offshore contract drilling services revenues for the first quarter of 2001 and 2000, respectively, as dayrates in the Gulf of Mexico have increased significantly since the first quarter of 2000. The average dayrate on the Company's domestic jackup rigs increased to $50,666 in the first quarter of 2001, up from $28,684 in the first quarter of 2000. Market conditions have also improved in certain international locations, particularly in West Africa which has shown a significant increase in utilization levels. Utilization improved to 90 percent in the first quarter of 2001, up from 27 percent in the first 2 quarter of 2000. The average dayrate in West Africa also increased to $43,182 in the first quarter of 2001, up 23 percent from the same quarter of the prior year. Day said, "We are well positioned with the right management, experienced operational personnel and premium drilling assets to respond to the improved market. Not surprisingly, our clients' activity levels continued to accelerate." Noble Drilling Corporation is a leading provider of diversified services for the oil and gas industry. Contract drilling services are performed with the Company's fleet of 49 offshore drilling units located in key markets worldwide. The Company's fleet of floating deepwater units consists of nine semisubmersibles and three dynamically positioned drillships, seven of which are designed to operate in water depths greater than 5,000 feet. The Company's premium fleet of 34 independent leg, cantilever jackup rigs includes 21 units that operate in water depths of 300 feet and greater, four of which operate in water depths of 360 feet and greater, and 11 units that operate in water depths of 250 feet. In addition, the Company's fleet includes three submersible units. Nine of the Company's units are capable of operating in harsh environments. Nearly 60 percent of the fleet is currently deployed in international markets, principally including the North Sea, Brazil, West Africa, the Middle East and India. The Company also provides labor contract drilling services, well site and project management services, and engineering services. The Company's common stock is traded on the New York Stock Exchange under the symbol "NE". This news release may contain "forward-looking statements" about the business, financial performance and prospects of the Company. Statements about the Company's or management's plans, intentions, expectations, beliefs, estimates, predictions, or similar expressions for the future are forward-looking statements. No assurance can be given that the outcomes of these forward-looking statements will be realized, and actual results could differ materially from those expressed as a result of various factors. A 3 discussion of these factors, including risks and uncertainties, is set forth from time to time in the Company's filings with the U.S. Securities and Exchange Commission. Additional information on Noble Drilling Corporation is available via the world wide web at http://www.noblecorp.com. ### 4 NOBLE DRILLING CORPORATION AND SUBSIDIARIES SUMMARY OF RESULTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
Quarter Ended March 31, ------------------------ 2001 2000 ---------- ---------- Operating Revenues $ 222,391 $ 184,819 Operating Costs and Expenses (139,581) (137,948) ---------- ---------- Operating Income 82,810 46,871 Other Income (Expense), Net (9,705) (11,450) ---------- ---------- Income Before Income Taxes 73,105 35,421 Income Tax Provision (18,642) (9,918) ---------- ---------- Net Income $ 54,463 $ 25,503 ========== ========== Earnings Per Share: Basic $ 0.41 $ 0.19 Diluted $ 0.40 $ 0.19 Weighted Average Common Shares Outstanding: Basic 133,669 132,414 Diluted 135,547 134,622
---------- NDC-248 4/25/01 For additional information, contact: John T. Rynd, Vice President - Investor Relations, Noble Drilling Services Inc. Noble Drilling Corporation, 281-276-6100 5 [NOBLE DRILLING LOGO] NOBLE DRILLING CORPORATION QUARTER ENDED MARCH 31, 2001 SUPPLEMENTARY FINANCIAL AND OPERATIONAL DATA 6 NOBLE DRILLING CORPORATION QUARTERLY CONSOLIDATED STATEMENTS OF INCOME QUARTER ENDED MARCH 31, 2001 AND CERTAIN PRECEDING QUARTERS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
Quarter Ended -------------------------------------------------------------------------- 3/31/01 12/31/00 9/30/00 6/30/00 3/31/00 12/31/99 --------- --------- --------- --------- --------- --------- OPERATING REVENUES: Contract drilling services $ 210,427 $ 211,442 $ 190,450 $ 190,416 $ 163,078 $ 147,715 Labor contract drilling services 7,481 6,837 7,052 7,628 7,963 6,986 Turnkey drilling services -- 19,302 19,363 30,343 13,039 18,053 Engineering, consulting and other 4,483 3,598 9,013 2,337 739 733 --------- --------- --------- --------- --------- --------- 222,391 241,179 225,878 230,724 184,819 173,487 --------- --------- --------- --------- --------- --------- OPERATING COSTS AND EXPENSES: (1) Contract drilling services 96,182 97,048 90,424 95,930 83,193 82,261 Labor contract drilling services 6,079 5,752 5,549 6,358 5,726 5,993 Turnkey drilling services - 20,814 18,954 23,778 16,006 15,541 Engineering, consulting and other 2,856 1,796 5,949 1,847 282 240 Depreciation and amortization 27,939 28,308 28,250 27,865 26,364 24,988 Selling, general and administrative 6,525 6,356 5,456 5,594 6,377 9,142 Restructuring charge (2) -- -- -- -- -- 7,479 --------- --------- --------- --------- --------- --------- 139,581 160,074 154,582 161,372 137,948 145,644 --------- --------- --------- --------- --------- --------- OPERATING INCOME 82,810 81,105 71,296 69,352 46,871 27,843 OTHER INCOME (EXPENSE): Interest expense (12,555) (13,405) (13,913) (13,761) (15,371) (14,343) Interest capitalized -- -- -- -- 1,872 3,734 Other, net 2,850 2,377 3,175 4,660 2,049 785 --------- --------- --------- --------- --------- --------- INCOME BEFORE INCOME TAXES 73,105 70,077 60,558 60,251 35,421 18,019 INCOME TAX PROVISION (3) (18,642) (18,220) (15,745) (16,870) (9,918) (1,511) --------- --------- --------- --------- --------- --------- NET INCOME $ 54,463 $ 51,857 $ 44,813 $ 43,381 $ 25,503 $ 16,508 ========= ========= ========= ========= ========= ========= EARNINGS PER SHARE-DILUTED $ 0.40 $ 0.38 $ 0.33 $ 0.32 $ 0.19 $ 0.12 ========= ========= ========= ========= ========= ========= WEIGHTED AVERAGE SHARES OUTSTANDING-DILUTED 135,547 135,655 135,919 135,616 134,622 133,216 ========= ========= ========= ========= ========= =========
---------- Notes to Statements of Income Follow on Next Page Page 2 7 NOBLE DRILLING CORPORATION QUARTERLY CONSOLIDATED STATEMENTS OF INCOME QUARTER ENDED MARCH 31, 2001 AND CERTAIN PRECEDING QUARTERS NOTES: (1) Certain reclassifications have been made to the prior quarter consolidated statements of income to conform to the classifications used in the quarterly period ended March 31, 2001. These reclassifications have no impact on operating income. (2) For the quarter ended December 31, 1999, the amount relates to a non-recurring restructuring charge for early retirement packages and relocation of the Gulf Coast Marine division office in Lafayette to the centralized office in Sugar Land, which was completed during the second quarter of 2000. (3) For the quarter ended December 31, 1999, the amount includes a non-recurring tax benefit of $2.6 million. Page 3 8 NOBLE DRILLING CORPORATION QUARTERLY CONSOLIDATED BALANCE SHEET DATA QUARTER ENDED MARCH 31, 2001 AND CERTAIN PRECEDING QUARTERS (IN THOUSANDS) (UNAUDITED)
AS OF --------------------------------------------------------------------------- 3/31/01 12/31/00 9/30/00 6/30/00 3/31/00 12/31/99 ---------- ---------- ---------- ---------- ---------- ---------- Cash and cash equivalents (1) $ 224,616 $ 177,124 $ 202,583 $ 130,532 $ 61,624 $ 136,837 Total current assets 406,181 379,132 420,863 330,703 269,830 290,625 Property and equipment (net) 2,087,123 2,095,129 2,054,887 2,073,086 2,084,868 2,049,769 Total assets 2,639,399 2,595,531 2,619,605 2,560,538 2,500,098 2,432,324 Total current liabilities 181,219 205,428 229,875 222,463 218,757 233,336 Short-term debt and current maturities of long-term debt 48,590 49,351 60,631 61,226 59,009 59,460 Total debt 685,011 699,642 747,626 761,812 774,976 790,353 Total liabilities 989,755 1,018,812 1,065,652 1,062,816 1,055,280 1,034,282 Shareholders' equity 1,649,644 1,576,719 1,553,953 1,497,722 1,444,818 1,398,042
---------- (1) Including amounts classified as restricted cash of $3.9 million at each of the quarters ended June 30, 2000 through March 31, 2001, $3.8 million at March 31, 2000 and $4.0 million at December 31, 1999. Page 4 9 NOBLE DRILLING CORPORATION CONSOLIDATED FINANCIAL AND OPERATIONAL DATA (IN THOUSANDS EXCEPT UTILIZATION AMOUNTS, OPERATING DAYS, AVERAGE DAYRATE, MARKETABLE RIGS AND TURNKEY WELLS)
UNAUDITED ----------------------------------------------------------------------------------------------------- 1ST QUARTER 2001 1ST QUARTER 2000 YTD DECEMBER 2000 --------------------------------- -------------------------------- -------------------------------- REVENUES Domestic International Triton Domestic International Triton Domestic International Triton -------- -------- ------------- -------- -------- ------------- ------- -------- ------------- ------- OFFSHORE Drilling $116,274 $ 94,153 $ -- $ 78,305 $ 84,773 -- $382,814 $ 372,572 $ -- Labor -- 7,481 -- -- 7,963 -- -- 29,480 -- TURNKEY DRILLING -- -- -- -- -- 13,039 -- -- 82,047 ENGINEERING, CONSULTING AND OTHER 985 1,928 1,570 126 613 -- 2,061 6,601 7,025 DIRECT EXPENSES --------------- OFFSHORE Drilling $ 39,293 $ 56,889 $ -- $ 30,700 $ 52,493 -- $135,575 $ 231,020 $ -- Labor -- 6,079 -- -- 5,726 -- -- 23,385 -- TURNKEY DRILLING -- -- -- -- -- 16,006 -- -- 79,552 ENGINEERING, CONSULTING AND OTHER 660 912 1,284 71 211 -- 1,448 1,978 6,448 STATISTICS ---------- OFFSHORE DRILLING Utilization 99% 79% -- 84% 64% -- 91% 81% -- Operating Days 1,591 1,873 -- 1,240 1,624 -- 5,705 8,133 -- Average Dayrate $ 73,082 $ 50,269 $ -- $ 63,149 $ 52,200 -- $ 67,101 $ 45,810 $ -- Marketable Rigs - period end 20 27 -- 16 27 -- 18 29 -- TURNKEY WELLS COMPLETED -- -- -- -- -- 4 -- -- 20 TURNKEY WELLS IN-PROGRESS -- -- -- -- -- 4 -- -- --
---------- Page 5 10 NOBLE DRILLING CORPORATION AND SUBSIDIARIES MONTHLY FLEET STATUS AS OF APRIL 25, 2001
YEAR BUILT/ WATER RIG RIG DESIGN REBUILT DEPTH LOCATION --- ---------- ------- ----- -------- JACKUP RIGS ----------- DOMESTIC (12) Noble Eddie Paul MLT Class 84-E.R.C. (T) 1976/1995 390'-IC South Timbalier 295 Noble Leonard Jones MLT Class 53-E.R.C. (T) 1972/1998 390'-IC West Delta 105 Noble Bill Jennings MLT Class 84-E.R.C. (T) 1975/1997 390'-IC South Timbalier 264 Noble Johnnie Hoffman BakMar BMC 300 IC (T) (Z) 1976/1993 300'-IC West Cameron 170 Noble Sam Noble Levingston Class 111-C (T) 1982 300'-IC South Marsh Island 149 Noble Gene Rosser Levingston Class 111-C (T) 1977/1996 300'-IC Matagorda Island 654 Noble Lewis Dugger Levingston Class 111-C (T) 1977/1997 300'-IC Vermillion 348 Noble John Sandifer Levingston Class 111-C (T) 1975/1995 300'-IC West Cameron 144 Noble Tom Jobe MLT Class 82-SD-C (T) (Z) 1982 250'-IC Mobile 1005 Noble Earl Frederickson MLT Class 82-SD-C (T) (Z) 1979 250'-IC West Cameron 49 Noble Carl Norberg MLT Class 82-C (T) 1976/1996 250'-IC South Marsh 8 Noble Charles Copeland MLT Class 82-SD-C (T) 1979/2001 250'-IC Offshore Mississippi INTERNATIONAL (22) Noble Dick Favor BakMar BMC 150 IC 1982/1993 150'-IC Brazil Noble Tommy Craighead F&G L-780 MOD II-IC (T) 1982/1990 300'-IC Nigeria Noble Percy Johns F&G L-780 MOD II-IC (T) 1981/1995 300'-IC Nigeria Noble Roy Butler F&G L-780 MOD II-IC (T) 1982 300'-IC Nigeria Noble Ed Noble MLT Class 82-SD-C (T) 1984/1990 250'-IC Nigeria Noble Lloyd Noble MLT Class 82-SD-C (T) 1983/1990 250'-IC Nigeria Noble Don Walker BakMar BMC 150 IC (T) 1982 150'-IC Nigeria Noble Jimmy Puckett F&G L-780 MOD II-IC 1982 300'-IC India Noble Ed Holt Levingston Class 111-C (T) 1981/1994 300'-IC India Noble Kenneth Delaney F&G L-780 MOD II-IC (T) 1983/1998 300'-IC Abu Dhabi Noble George McLeod F&G L-780 MOD II-IC (T) 1981/1995 300'-IC Abu Dhabi Noble Gus Androes Levingston Class 111-C (T) 1982/1996 300'-IC Qatar Noble Chuck Syring MLT Class 82-C (T) 1976/1996 250'-IC Qatar Noble Crosco Panon Levingston Class 111-S (T) 1976/2001 300'-IS Sharjah CONTRACT DAYRATE RIG OPERATOR EXPIRATION ($000) COMMENTS --- -------- ---------- ------ -------- JACKUP RIGS ----------- DOMESTIC (12) Noble Eddie Paul Apache 12/2001 64-66 Rate effective 3/1/2001, rate review every 90 days, next review 5/29/2001. Noble Leonard Jones Apache 12/2001 64-66 Rate effective 2/24/2001, rate review every 90 days, next review 5/24/2001. Noble Bill Jennings Magnum Hunter 7/2001 64-66 Plus 90-day option. Noble Johnnie Hoffman Nexen 7/2001 48-50 Plus option at mutually agreed rates. Noble Sam Noble Forest Oil 7/2001 46-47 Plus 90-day option at mutually agreed rates. Noble Gene Rosser Apache 5/2001 47-49 Released from Pemex 2/15/2001. One well with Apache @ $47-49, start +/- 3/8/2001, plus one-well option. Noble Lewis Dugger Hall-Houston 5/2001 45-47 Spud can inspection (7 days), then two wells for Chevron @ $47-49. Noble John Sandifer Apache 12/2001 45-47 Rate review every 90 days. Next review 6/4/2001. Noble Tom Jobe Spirit 76 7/2001 48-50 Rate review every 90 days. Next review 7/18/2001. Noble Earl Frederickson Halliburton/Chevron 5/2001 47-49 Rate review every 90 days. Next review 5/20/2001. Noble Carl Norberg Chevron 6/2001 44-46 60-day well @ $49-51 commencing +/- 4/27/2001. Noble Charles Copeland Kerr McGee 7/2001 Two-well contract (approximately 6 months). First well @ $49-51, second well not to exceed 10% increase. On dayrate +/- 4/29/2001. INTERNATIONAL (22) Noble Dick Favor Petrobras 2/2002 38-40 On rate 2/4/2001. Noble Tommy Craighead Addax 4/2002 57-59 New rate effective 4/15/2001. Noble Percy Johns ExxonMobil 3/2002 57-59 New rate effective 4/1/2001. Noble Roy Butler Chevron 4/2002 51-53 Contract commenced 4/15/2001, one year contract. Noble Ed Noble ExxonMobil 3/2002 51-53 Contract commenced 3/1/2001. Noble Lloyd Noble Texaco 5/2001 44-46 Next to Chevron Nigeria for one year @ $51-53 in late May. Noble Don Walker Shell 11/2002 34-36 Two-year contract. Noble Jimmy Puckett ONGC 4/2001 17-19 LOI from BP Qatar - 270 day contract @ $57-59 to commence 7/1/2001. Rig will be down for +/- 60 days. Noble Ed Holt ONGC 11/2002 33-35 Noble Kenneth Delaney NDC 4/2002 53-54 One year contract. Start late April. Noble George McLeod NDC 4/2002 53-54 One year contract. Start late April. Noble Gus Androes Maersk 12/2002 24-26 Contract from Maersk for 18-month extension from 5/2001 @ $53-55. Noble Chuck Syring Devon 5/2002 40-42 55-day well. On contract 3/24/2001. Next to Maersk for one year @ $50-52. Noble Crosco Panon Lamprell Shipyard In shipyard for conversion to cantilever. Next to Elf in 5/2001 in the low $40's for eight months.
Page 6 11 NOBLE DRILLING CORPORATION AND SUBSIDIARIES MONTHLY FLEET STATUS AS OF APRIL 25, 2001
YEAR BUILT/ WATER RIG RIG DESIGN REBUILT DEPTH LOCATION --- ---------- ------- ----- -------- Noble Al White CFEM T-2005 C (T) 1982/1997 360'-IC Netherlands Noble Byron Welliver CFEM T-2005 C (T) 1982 300'-IC Denmark Noble Kolskaya Gusto Engineering (T) 1985 330'-IC Denmark Noble George Sauvageau NAM (T) 1981 300'-IC Netherlands Noble Ronald Hoope MSC/CJ46 (T) 1982 225'-IC Netherlands Noble Piet van Ede MSC/CJ46 (T) 1982 205'-IC Netherlands Noble Lynda Bossler MSC/CJ46 (T) (Z) 1982 205'-IC Netherlands Noble Julie Robertson Baker Marine Europe Class (T) 1981 180'-IC United Kingdom DRILLSHIPS (3) -------------- Noble Leo Segerius Gusto Engineering Pelican (T) 1981 5,000'-DP Brazil Noble Roger Eason Neddrill (T) 1977 6,000'-DP Brazil Noble Muravlenko Gusto Engineering Ice Class (T) 1982/1997 4,000'-DP Brazil SEMISUBMERSIBLE RIGS (9) ------------------------ Noble Paul Romano Noble EVA 4000TM (T) 1981/1998 6,000' Miss. Canyon 899 Noble Paul Wolff Noble EVA 4000TM (T) 1981/1998 8,900' Brazil Noble Jim Thompson Noble EVA 4000TM (T) 1984/1999 6,000' Viosca Knoll 915 Noble Amos Runner Noble EVA 4000TM (T) 1982/1999 6,600' Green Canyon 338 Noble Max Smith Noble EVA 4000TM (T) 1980/1999 6,000' Miss. Canyon 773 Noble Ton van Langeveld Offshore SCP III Mark 2 (T) 1979/2000 1,500' Ireland Noble Homer Ferrington F&G 9500 Enhanced Pacesetter (T) 1985/1999 6,000' East Breaks 579 Noble Clyde Boudreaux F&G 9500 Enhanced Pacesetter 1987/1999 6,000' MS - F&G shipyard Noble Dave Beard F&G 9500 Enhanced Pacesetter 1986 6,000' Dalian, China SUBMERSIBLE RIGS (3) -------------------- Noble Fri Rodli Transworld 1979/1998 70'-C Eugene Island 45 Noble Joe Alford Pace 85 1982 85'-C Eugene Island 126 Noble Lester Pettus Pace 85 1982 85'-C South Timbalier 72 (T) Denotes Top Drive. (Z) Denotes Zero Discharge CONTRACT DAYRATE RIG OPERATOR EXPIRATION ($000) COMMENTS --- -------- ---------- ------ -------- Noble Al White Elf Petroland 3/2002 34-36 Next well @ $39-41, then one well @ $51-52, and one well @ $72-74. Each well +/- 70 days. Noble Byron Welliver Maersk 8/2001 43-45 Then $63-65 from 9/1/2001 to 8/31/2002. Noble Kolskaya Maersk 4/2002 73-75 Contract commenced 3/30/2001. Noble George Sauvageau NAM 4/2002 69-71 New dayrate effective 4/11/01. NAM until mid-May, then Statoil for +/- 100 days in mid - $70's. Then back to NAM through 4/2002 @ $69-71. Noble Ronald Hoope Elf Petroland 8/2001 60-62 One well @ $60-62, and one well @ $66-68. Noble Piet van Ede Transcanada 12/2001 54-56 Noble Lynda Bossler Clyde 6/2001 57-59 Six-month extension from July @ $68-70. Noble Julie Robertson Shell U.K. 5/2001 49-51 LOI from Talisman for 90 days @ $56-58, plus 90-day option @ $63-65. DRILLSHIPS (3) -------------- Noble Leo Segerius Petrobras 11/2001 61-63 Noble Roger Eason Petrobras 4/2003 74-76 In drydock 3/22/2001 for five year survey. Expected drydock completion 5/12/2001. Noble Muravlenko Petrobras 3/2003 58-60 Off drydock and on dayrate 2/17/2001. SEMISUBMERSIBLE RIGS (9) ------------------------ Noble Paul Romano Shell 12/2003 134-136 Noble Paul Wolff Petrobras 5/2005 138-140 Noble Jim Thompson BP 7/2002 158-160 Shell farmout to BP. Noble Amos Runner Murphy Oil 8/2004 145-147 Will enter shipyard for repairs (25-30 days) at the completion of this well, +/- mid-May. Noble Max Smith Dominion 1/2005 139-141 Two wells for Dominion, +/- 70 days. Noble Ton van Langeveld Marathon 6/2001 57-59 Two-well contract, next well $61-63. LOI from EDC for one well @ $82-84 following Marathon. Then LOI from Texaco for 65 days @ $77-79, plus 165 days at a mutually agreed rate. Noble Homer Ferrington Mariner Energy 1/2005 64-66 Next to Samedan, +/- 5/2001, in less than 4,000' of water. Noble Clyde Boudreaux Shipyard Engineering complete. Noble Dave Beard Shipyard Completing engineering. SUBMERSIBLE RIGS (3) -------------------- Noble Fri Rodli Westport 5/2001 34-36 One well, plus one-well option. Noble Joe Alford Ocean Energy 5/2001 33-35 Next well @ $37-38. Noble Lester Pettus Forest Oil 6/2001 34-36 Six-month extension. (T) Denotes Top Drive. (Z) Denotes Zero Discharge
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