-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DtcMFYDq9eoUAx9ZnYfDFFkj46czI5pJGw1afvyZGUyGUoefG/xBgcfmc6jG9DpA ub+Dh17TvhvWBjaBYg97fQ== 0000950129-96-003609.txt : 19961231 0000950129-96-003609.hdr.sgml : 19961231 ACCESSION NUMBER: 0000950129-96-003609 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961213 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19961230 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: NOBLE DRILLING CORP CENTRAL INDEX KEY: 0000777201 STANDARD INDUSTRIAL CLASSIFICATION: DRILLING OIL & GAS WELLS [1381] IRS NUMBER: 730374541 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-11669 FILM NUMBER: 96688418 BUSINESS ADDRESS: STREET 1: 10370 RICHMOND AVE STE 400 CITY: HOUSTON STATE: TX ZIP: 77042 BUSINESS PHONE: 7139743131 MAIL ADDRESS: STREET 1: 10370 RICHMOND AVE STREET 2: STE 400 CITY: HOUSTON STATE: TX ZIP: 77042 8-K/A 1 NOBLE DRILLING CORPORATION - DATED 12/13/96 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K/A CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): DECEMBER 13, 1996 NOBLE DRILLING CORPORATION (Exact name of registrant as specified in its charter) Delaware 0-13857 73-0374541 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 10370 Richmond Avenue, Suite 400, Houston, Texas 77042 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (713) 974-3131 2 Item 2. Acquisition or Disposition of Assets. On December 13, 1996, Noble Drilling Corporation (unless otherwise required by the context, together with its consolidated subsidiaries, the "Company") completed its previously announced agreement to sell its land drilling assets. The sale price was $60 million in cash. The Company had previously announced that it had entered into an Asset Purchase Agreement dated November 15, 1996 by and between the Company, Noble Properties, Inc. and Noble Drilling (Canada) Ltd. and Nabors Industries, Inc. ("Nabors"). The assets sold consisted principally of (i) 19 marketed land drilling rigs and 28 mothballed land drilling rigs, (ii) certain inventory related to the maintenance and operation of the rigs, (iii) leasehold interests and real property fee interests related to the maintenance and operation of the rigs and (iv) drilling contracts for the employment of the rigs in existence on the closing date. The assets sold were transferred at the closing to certain subsidiaries of Nabors pursuant to an Agreement dated December 13, 1996 by and among the Company, Noble Properties, Inc., Noble Drilling (Canada) Ltd., Noble Drilling (U.S.) Inc. and Noble Drilling Land Limited, and Nabors Industries, Inc., Nabors Drilling USA, Inc. and Nabors Drilling Limited. Item 7. Financial Statements and Exhibits. (b) Pro Forma Financial Information. The pro forma financial information required by this item of Form 8-K is filed as part of this Report. (c) Exhibits. Exhibit 2.1 - Asset Purchase Agreement dated November 15, 1996 by and between Noble Drilling Corporation, Noble Properties, Inc. and Noble Drilling (Canada) Ltd. and Nabors Industries, Inc. Exhibit 2.2 - Agreement dated December 13, 1996 by and among Noble Drilling Corporation, Noble Properties, Inc., Noble Drilling (Canada) Ltd., Noble Drilling (U.S.) Inc. and Noble Drilling Land Limited, and Nabors Industries, Inc., Nabors Drilling USA, Inc. and Nabors Drilling Limited. 2 3 SIGNATURES Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: December 27, 1996 NOBLE DRILLING CORPORATION By: /s/ Byron L. Welliver -------------------------------- Byron L. Welliver, Senior Vice President-Finance, Treasurer and Controller 3 4 NOBLE DRILLING CORPORATION AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS The following sets forth the unaudited pro forma consolidated balance sheet of the Company as of September 30, 1996 and the unaudited pro forma consolidated statements of operations for the Company for the nine months ended September 30, 1996 and the year ended December 31, 1995, after giving effect to the sale of the Company's land drilling assets on December 13, 1996 for $60 million in cash. The unaudited pro forma consolidated statements of operations assume that the sale occurred as of January 1, 1995, and the unaudited pro forma consolidated balance sheet assumes that the sale occurred on September 30, 1996. The following unaudited pro forma consolidated financial statements should be read in conjunction with the unaudited consolidated financial statements and notes thereto included in the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1996 and the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 1995. The pro forma information may not be indicative of what the financial condition or results of operations of the Company would have been, had the sale been completed on the dates assumed, nor is such information necessarily indicative of the financial condition or results of operations of the Company that may exist in the future. 4 5 NOBLE DRILLING CORPORATION AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET SEPTEMBER 30, 1996 (In thousands)
COMPANY SALE OF HISTORICAL LAND RIGS PRO FORMA ---------- --------- --------- ASSETS CURRENT ASSETS Cash and cash equivalents . . . . . . . . . . . . . . . . . $ 143,841 $ 60,000 A $ 203,841 Investment in marketable equity securities . . . . . . . . 1,749 -- 1,749 Investment in marketable debt securities . . . . . . . . . 27,530 -- 27,530 Accounts receivable . . . . . . . . . . . . . . . . . . . . 108,222 -- 108,222 Inventories . . . . . . . . . . . . . . . . . . . . . . . . 39,632 -- 39,632 Other current assets . . . . . . . . . . . . . . . . . . . 45,904 -- 45,904 ----------- --------- ----------- Total current assets . . . . . . . . . . . . . . . . . 366,878 60,000 426,878 ----------- --------- ----------- PROPERTY AND EQUIPMENT Drilling equipment and facilities . . . . . . . . . . . . . 1,246,842 (145,943) B 1,100,899 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,379 (3,383) B 22,996 ----------- --------- ----------- 1,273,221 (149,326) 1,123,895 Accumulated depreciation . . . . . . . . . . . . . . . . . (349,189) 136,968 B (212,221) ----------- --------- ----------- 924,032 (12,358) 911,674 ----------- --------- ----------- OTHER ASSETS . . . . . . . . . . . . . . . . . . . . . . . . 12,181 -- 12,181 ----------- --------- ----------- $ 1,303,091 $ 47,642 $ 1,350,733 =========== ========= =========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Short-term debt and current installments of long-term debt $ 6,088 -- $ 6,088 Accounts payable . . . . . . . . . . . . . . . . . . . . . 44,370 -- 44,370 Accrued payroll and related costs . . . . . . . . . . . . . 22,025 -- 22,025 Taxes payable . . . . . . . . . . . . . . . . . . . . . . . 15,360 3,936 C 19,296 Interest payable . . . . . . . . . . . . . . . . . . . . . 8,630 -- 8,630 Other current liabilities . . . . . . . . . . . . . . . . . 64,473 2,200 D 66,673 ----------- --------- ----------- Total current liabilities . . . . . . . . . . . . . . 160,946 6,136 167,082 LONG-TERM DEBT . . . . . . . . . . . . . . . . . . . . . . . 250,532 -- 250,532 OTHER LIABILITIES . . . . . . . . . . . . . . . . . . . . . . 859 11,731 C 12,590 MINORITY INTEREST . . . . . . . . . . . . . . . . . . . . . . 904 -- 904 ----------- --------- ----------- 413,241 17,867 431,108 ----------- --------- ----------- SHAREHOLDERS' EQUITY Preferred stock . . . . . . . . . . . . . . . . . . . . . . 4,025 -- 4,025 Common stock . . . . . . . . . . . . . . . . . . . . . . . 12,185 -- 12,185 Capital in excess of par value. . . . . . . . . . . . . . . 907,146 -- 907,146 Unrealized losses on marketable securities . . . . . . . . (60) -- (60) Minimum pension liability . . . . . . . . . . . . . . . . . (3,403) -- (3,403) Cumulative translation adjustment . . . . . . . . . . . . . (2,049) -- (2,049) Retained earnings (Accumulated deficit) . . . . . . . . . . (26,131) 29,775 E 3,644 Treasury stock, at cost . . . . . . . . . . . . . . . . . . (1,863) -- (1,863) ----------- --------- ----------- 889,850 29,775 919,625 ----------- --------- ----------- COMMITMENTS AND CONTINGENCIES. . . . . . . . . . . . . . . . -- -- -- ----------- --------- ----------- $ 1,303,091 $ 47,642 $ 1,350,733 =========== ========== ===========
See accompanying notes to the pro forma financial statements. 5 6 NOBLE DRILLING CORPORATION AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, 1996 (In thousands, except per share amounts)
COMPANY SALE OF HISTORICAL LAND RIGS PRO FORMA ---------- --------- --------- OPERATING REVENUES Contract drilling services . . . . . . . . . . . . . . . . . . $ 238,891 $ (18,317) F $ 220,574 Labor contract drilling services . . . . . . . . . . . . . . . 24,247 -- 24,247 Turnkey drilling services . . . . . . . . . . . . . . . . . . . 98,782 -- 98,782 Engineering and consulting services . . . . . . . . . . . . . . 4,084 -- 4,084 Other revenue . . . . . . . . . . . . . . . . . . . . . . . . . 6,511 (107) F 6,404 ---------- ---------- ---------- 372,515 (18,424) 354,091 ---------- ---------- ---------- OPERATING COSTS AND EXPENSES Contract drilling services . . . . . . . . . . . . . . . . . . 142,634 (13,439) F 129,195 Labor contract drilling services . . . . . . . . . . . . . . . 17,474 -- 17,474 Turnkey drilling services . . . . . . . . . . . . . . . . . . . 70,394 -- 70,394 Engineering and consulting services . . . . . . . . . . . . . . 2,625 -- 2,625 Other expense . . . . . . . . . . . . . . . . . . . . . . . . . 3,910 (178) F 3,732 Depreciation and amortization . . . . . . . . . . . . . . . . . 32,904 (844) F 32,060 Selling, general and administrative . . . . . . . . . . . . . . 38,517 (1,619) F 36,898 Impairments, net of gains on asset sales . . . . . . . . . . . 73 -- 73 Minority interest . . . . . . . . . . . . . . . . . . . . . . . (101) -- (101) ---------- ---------- ---------- 308,430 (16,080) 292,350 ---------- ---------- ---------- OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . 64,085 (2,344) 61,741 OTHER INCOME (EXPENSE) Interest expense . . . . . . . . . . . . . . . . . . . . . . . (12,906) -- (12,906) Interest income . . . . . . . . . . . . . . . . . . . . . . . . 4,030 (165) F 3,865 Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . 2,447 (607) F 1,840 ---------- ---------- ---------- INCOME BEFORE INCOME TAXES . . . . . . . . . . . . . . . . . . . 57,656 (3,116) 54,540 INCOME TAX PROVISION . . . . . . . . . . . . . . . . . . . . . . (5,456) 283 F (5,173) ---------- ---------- ---------- NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,200 (2,833) 49,367 PREFERRED STOCK DIVIDENDS . . . . . . . . . . . . . . . . . . . . (4,529) -- (4,529) ---------- ---------- ---------- NET INCOME APPLICABLE TO COMMON SHARES . . . . . . . . . . . . . $ 47,671 $ (2,833) $ 44,838 ========== ========== ========== NET INCOME APPLICABLE TO COMMON SHARES PER SHARE . . . . . . . . $ 0.45 $ 0.43 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING . . . . . . . . . . . 104,968 104,968
See accompanying notes to the pro forma financial statements. 6 7 NOBLE DRILLING CORPORATION AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995 (In thousands, except per share amounts)
COMPANY SALE OF HISTORICAL LAND RIGS PRO FORMA ---------- --------- ----------- OPERATING REVENUES Contract drilling services . . . . . . . . . . . . . . . . . $ 205,110 $ (28,641) F $ 176,469 Labor contract drilling services . . . . . . . . . . . . . . 35,136 -- 35,136 Turnkey drilling services. . . . . . . . . . . . . . . . . . 71,273 -- 71,273 Engineering and consulting services. . . . . . . . . . . . . 11,264 -- 11,264 Other revenue . . . . . . . . . . . . . . . . . . . . . . . 5,185 (96) F 5,089 ----------- ------------ ------------ 327,968 (28,737) 299,231 ----------- ------------ ------------ OPERATING COSTS AND EXPENSES Contract drilling services . . . . . . . . . . . . . . . . . . 138,340 (20,657) F 117,683 Labor contract drilling services . . . . . . . . . . . . . . . 26,540 -- 26,540 Turnkey drilling services. . . . . . . . . . . . . . . . . . . 64,471 -- 64,471 Engineering and consulting services. . . . . . . . . . . . . . 7,311 -- 7,311 Other expense . . . . . . . . . . . . . . . . . . . . . . . . 3,440 (163) F 3,277 Depreciation and amortization. . . . . . . . . . . . . . . . . 36,492 (922) F 35,570 Selling, general and administrative. . . . . . . . . . . . . . 40,139 (1,771) F 38,368 Minority interest. . . . . . . . . . . . . . . . . . . . . . . (214) -- (214) ----------- ------------ ------------ 316,519 (23,513) 293,006 ----------- ------------ ------------ OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . 11,449 (5,224) 6,225 OTHER INCOME (EXPENSE) Interest expense . . . . . . . . . . . . . . . . . . . . . . . (12,156) -- (12,156) Interest income . . . . . . . . . . . . . . . . . . . . . . . 5,323 (337) F 4,986 Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . 250 (220) F 30 ----------- ------------ ------------ INCOME (LOSS) BEFORE INCOME TAXES . . . . . . . . . . . . . . . 4,866 (5,781) (915) INCOME TAX PROVISION . . . . . . . . . . . . . . . . . . . . . . (3,272) 1,440 F (1,832) ----------- ------------ ------------ NET INCOME (LOSS). . . . . . . . . . . . . . . . . . . . . . . . 1,594 (4,341) (2,747) PREFERRED STOCK DIVIDENDS. . . . . . . . . . . . . . . . . . . . (7,199) -- (7,199) ----------- ------------ ------------ NET LOSS APPLICABLE TO COMMON SHARES . . . . . . . . . . . . . . $ (5,605) $ (4,341) $ (9,946) =========== ============ ============ NET LOSS APPLICABLE TO COMMON SHARES PER SHARE . . . . . . . . . $ (0.08) $ (0.13) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING . . . . . . . . . . . 89,736 89,736
See accompanying notes to the pro forma financial statements. 7 8 NOBLE DRILLING CORPORATION AND SUBSIDIARIES NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS GENERAL The following notes set forth the assumptions used in preparing the unaudited pro forma consolidated financial statements. The pro forma adjustments are based on estimates made by the Company's management using information currently available. The sale of the land drilling assets would have resulted in a gain assuming that the sale occurred as of January 1, 1995. This nonrecurring gain has not been included in the unaudited pro forma consolidated statements of operations for the nine months ended September 30, 1996 or the year ended December 31, 1995. However, the estimated gain, net of the related income taxes, is reflected in the unaudited pro forma consolidated balance sheet assuming the sale occurred on September 30, 1996. PRO FORMA ADJUSTMENTS The adjustments to the accompanying unaudited pro forma consolidated balance sheet are described below: (A) To reflect the receipt of $60 million in cash as consideration for the sale of the land drilling assets. (B) To reflect the retirement of the land drilling asset book values. (C) To reflect the estimated current and deferred tax liabilities relating to the estimated gain on the sale of the land drilling assets. (D) To reflect the accrual of estimated disposal costs associated with the transaction. (E) To reflect the estimated gain, net of tax, relating to the sale of the land drilling assets. The adjustments to the accompanying unaudited pro forma consolidated statements of operations are described below: (F) To reflect the exclusion of the historical results of the land drilling operations. 8 -----END PRIVACY-ENHANCED MESSAGE-----