EXHIBIT 99.1
| PRESS RELEASE |  | |||||||
NOBLE CORPORATION PLC ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 RESULTS
•Full Year 2023 Net Income of $482 million, Adjusted EBITDA of $810 million, cash provided by operating activities of $574 million, and Free Cash Flow of $184 million.
•Fourth Quarter Net Income of $150 million, Adjusted EBITDA of $201 million, cash provided by operating activities of $287 million, and Free Cash Flow of $165 million.
•Maersk Drilling synergy target increased from $125 million to $150 million; integration process nearing a highly successful conclusion.
•Over $500 million in new contract awards since November, with total backlog at $4.6 billion.
•Full Year 2024 Guidance provided as follows: Total Revenue $2,550 to $2,700 million, Adjusted EBITDA $925 to $1,025 million, Capital Additions (net of reimbursements) $400 to $440 million.
SUGAR LAND, TEXAS, February 22, 2024 - Noble Corporation plc (NYSE: NE, CSE: NOBLE, “Noble”, or the “Company”) today reported fourth quarter and full year 2023 results.
| Three Months Ended | ||||||||||||||||||||
| (in millions, except per share amounts) | December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||||
| Total Revenue | $ | 643 | $ | 697 | $ | 623 | ||||||||||||||
| Contract Drilling Services Revenue | 609 | 671 | 586 | |||||||||||||||||
| Net Income (Loss) | 150 | 158 | 135 | |||||||||||||||||
| Adjusted EBITDA* | 201 | 283 | 157 | |||||||||||||||||
| Adjusted Net Income (Loss)* | 56 | 127 | 61 | |||||||||||||||||
| Basic Earnings (Loss) Per Share | 1.06 | 1.14 | 1.02 | |||||||||||||||||
| Diluted Earnings (Loss) Per Share | 1.03 | 1.09 | 0.92 | |||||||||||||||||
| Adjusted Diluted Earnings (Loss) Per Share* | 0.39 | 0.87 | 0.41 | |||||||||||||||||
| * A Non-GAAP supporting schedule is included with the statements and schedules attached to this press release. | ||||||||||||||||||||
Robert W. Eifler, President and Chief Executive Officer of Noble Corporation plc, stated “Our fourth quarter results brought full year 2023 revenue and Adjusted EBITDA toward the upper end of our guidance range and capped a year of strong operational performance and Free Cash Flow generation. The Maersk Drilling integration, which is now substantially complete, has been extremely successful, and I would like to congratulate and thank our employees for this exceptional team performance during 2023 which demonstrated the value and the exciting potential of the new Noble.”
Fourth Quarter Results
Contract drilling services revenue for the fourth quarter of 2023 totaled $609 million compared to $671 million in the third quarter, with the sequential decrease driven by lower utilization. Marketed fleet utilization was 68% in the three months ended December 31, 2023, compared to 78% in the previous quarter. Contract drilling services costs for the fourth quarter were $374 million, a slight increase versus $354 million the third quarter. Net income decreased to $150 million in the fourth quarter, down from $158 million in the third quarter, and Adjusted EBITDA decreased to $201 million in the fourth quarter, down from $283 million in the third quarter. Net cash
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provided by operating activities in the fourth quarter was $287 million, net capital expenditures were $123 million, and free cash flow (non-GAAP) was $165 million.
Balance Sheet and Capital Allocation
The Company's balance sheet as of December 31, 2023, reflected total debt principal value of $600 million and cash (and cash equivalents) of $361 million. Share repurchases totaled $15 million during the fourth quarter, bringing 2023 year-to-date share repurchases to $95 million. Total capital returned to shareholders between share repurchases (including the Maersk Drilling squeeze-out) and dividends from the fourth quarter of 2022 through the fourth quarter of 2023 equaled $283 million.
Today, Noble’s Board of Directors declared a quarterly interim dividend of $0.40 per share for the first quarter of 2024. This dividend is expected to be paid on March 21, 2024, to shareholders of record at close of business on March 08, 2024. 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 sixteen floaters was 75% contracted through the fourth quarter, compared with 92% in the prior quarter due to downtime between contracts. Recent backlog additions have substantially reduced the percentage of uncommitted days across our marketed floater fleet in 2024 to approximately 20%, with most of Noble’s remaining availability for this year attributable to the Noble Globetrotter I, Noble Globetrotter II, and Noble Developer. With similarly limited industry capacity available in 2024, leading edge floater dayrates have held firm in the mid-to-high $400,000s range for tier-1 drillships and low-to-mid $400,000s range for sixth generation units. The bidding pipeline for 2025 contract commencements appears supportive of a continuing upward trend in leading edge rates for high spec rigs.
Utilization of Noble's thirteen marketed jackups was 61% in the fourth quarter, consistent with 61% utilization during the third quarter – jackup utilization is expected to improve progressively through 2024 with contracts scheduled to commence this summer for the Noble Regina Allen and Noble Resolute following shipyard stays, while the near-term visibility for the warm stacked jackups Noble Interceptor and Noble Highlander remains limited at this time.
Subsequent to last quarter’s earnings press release, new contracts for Noble’s fleet with total contract value of approximately $530 million (including mobilization payments) include the following:
•Noble Discoverer was awarded a 400-day contract with Petrobras in Colombia, expected to commence in early June 2024. The contract includes an option to extend the duration by 390 days.
•Noble Voyager was awarded a one well contract (plus one option well) with Petronas in Suriname which commenced in February 2024 with an estimated firm duration of 130 days excluding option.
•Noble Valiant was awarded a six-month contract extension with LLOG in the U.S. Gulf of Mexico, expected to commence in July 2024 in direct continuation of the rig’s current contract. The dayrate for this contract is $470,000, excluding additional fees for the use of managed pressure drilling.
•Noble Gerry de Souza received a 9-month extension with TotalEnergies in Nigeria, continuing the program out to November 2024.
•Noble Intrepid had an option exercised by Harbour Energy for a well intervention program in the U.K. North Sea which commenced in January 2024 at a dayrate of $120,000.
•Noble Innovator received a one well extension (estimated 90-day duration) from BP at a dayrate of $140,000 scheduled to commence in September 2024.
•Noble Resolute received a 60-day extension (from March 2025) with Petrogas in the Dutch North Sea.
Noble's backlog as of February 22, 2024, stands at $4.6 billion.
Outlook
For the full year 2024, today Noble announces a guidance range for Total Revenue of $2,550 to $2,700 million, Adjusted EBITDA in the range of $925 to $1,025 million, and Capital Additions (net of reimbursements) between $400 to $440 million.
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Commenting on Noble’s outlook, Mr. Eifler stated, “We expect to realize improving financial results in 2024 compared to 2023, with mid-year contract start-ups for several floaters and jackups expected to drive stronger financial performance in the second half of the year. Meanwhile, commercial visibility for 2025 and 2026 is highly encouraging based on recent months’ step-change increase in open demand, which is a positive indicator for future backlog development. Against this favorable backdrop, we look forward to growing our return of capital to shareholders as free cash flow improves over the course of the cycle.”
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 full year 2024 GAAP financial results.
Conference Call
Noble will host a conference call related to its fourth quarter 2023 results on Friday, February 23, 2024, at 8:00 a.m. U.S. Central Time. Interested parties may dial +1 929-203-0901 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 scheduled call.
For additional information, visit www.noblecorp.com or email investors@noblecorp.com.
Contact Noble Corporation plc
Ian Macpherson
Vice President - Investor Relations
+1 713-239-6507
imacpherson@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
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.
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 and capital additions, the offshore drilling market and demand fundamentals, realization and timing of integration synergies, related costs to achieve, new technology and software platforms, free cash flow expectations, capital allocation expectations including planned dividend and share repurchases, contract backlog, rig demand, expected future contracts, anticipated contract start dates, dayrates and duration, fleet condition and utilization, business, financial performance and position and our plans, objectives, expectations and intentions related to the Noble-Maersk merger. 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 “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “on track,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would,” “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. We cannot control such risk factors and
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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 will be declared or continued.
4
NOBLE CORPORATION plc AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
| Operating revenues | ||||||||||||||||||||||||||
| Contract drilling services | $ | 609,241 | $ | 585,849 | $ | 2,461,715 | $ | 1,332,841 | ||||||||||||||||||
| Reimbursables and other | 33,738 | 36,743 | 127,303 | 81,006 | ||||||||||||||||||||||
| 642,979 | 622,592 | 2,589,018 | 1,413,847 | |||||||||||||||||||||||
| Operating costs and expenses | ||||||||||||||||||||||||||
| Contract drilling services | 373,760 | 366,386 | 1,452,281 | 897,096 | ||||||||||||||||||||||
| Reimbursables | 24,158 | 27,332 | 91,642 | 64,427 | ||||||||||||||||||||||
| Depreciation and amortization | 82,933 | 69,770 | 301,345 | 146,879 | ||||||||||||||||||||||
| General and administrative | 32,985 | 29,877 | 128,413 | 82,177 | ||||||||||||||||||||||
| Merger and integration costs | 13,286 | 56,752 | 60,335 | 84,668 | ||||||||||||||||||||||
(Gain) loss on sale of operating assets, net | — | (87,125) | — | (90,230) | ||||||||||||||||||||||
| Hurricane losses and (recoveries), net | (41,823) | (4,641) | (19,703) | 60 | ||||||||||||||||||||||
| 485,299 | 458,351 | 2,014,313 | 1,185,077 | |||||||||||||||||||||||
| Operating income (loss) | 157,680 | 164,241 | 574,705 | 228,770 | ||||||||||||||||||||||
| Other income (expense) | ||||||||||||||||||||||||||
| Interest expense, net of amount capitalized | (14,600) | (19,384) | (59,139) | (42,722) | ||||||||||||||||||||||
| Gain (loss) on extinguishment of debt, net | — | (8,716) | (26,397) | (8,912) | ||||||||||||||||||||||
| Interest income and other, net | 1,777 | 9,599 | 18,069 | 14,365 | ||||||||||||||||||||||
| Gain on bargain purchase | — | — | 5,005 | — | ||||||||||||||||||||||
| Income (loss) before income taxes | 144,857 | 145,740 | 512,243 | 191,501 | ||||||||||||||||||||||
| Income tax benefit (provision) | 4,843 | (10,778) | (30,341) | (22,553) | ||||||||||||||||||||||
| Net income (loss) | $ | 149,700 | $ | 134,962 | $ | 481,902 | $ | 168,948 | ||||||||||||||||||
| Per share data | ||||||||||||||||||||||||||
| Basic: | ||||||||||||||||||||||||||
| Net income (loss) | $ | 1.06 | $ | 1.02 | $ | 3.48 | $ | 1.99 | ||||||||||||||||||
| Diluted: | ||||||||||||||||||||||||||
| Net income (loss) | $ | 1.03 | $ | 0.92 | $ | 3.32 | $ | 1.73 | ||||||||||||||||||
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NOBLE CORPORATION plc AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| December 31, 2023 | December 31, 2022 | |||||||||||||
| ASSETS | ||||||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | 360,794 | $ | 476,206 | ||||||||||
| Accounts receivable, net | 548,844 | 468,802 | ||||||||||||
| Prepaid expenses and other current assets | 152,110 | 106,782 | ||||||||||||
| Total current assets | 1,061,748 | 1,051,790 | ||||||||||||
| Intangible assets | 10,128 | 34,372 | ||||||||||||
| Property and equipment, at cost | 4,591,936 | 4,163,205 | ||||||||||||
| Accumulated depreciation | (467,600) | (181,904) | ||||||||||||
| Property and equipment, net | 4,124,336 | 3,981,301 | ||||||||||||
| Goodwill | — | 26,016 | ||||||||||||
| Other assets | 311,225 | 141,385 | ||||||||||||
| Total assets | $ | 5,507,437 | $ | 5,234,864 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Current liabilities | ||||||||||||||
| Current maturities of long-term debt | $ | — | $ | 159,715 | ||||||||||
| Accounts payable | 395,165 | 290,690 | ||||||||||||
| Accrued payroll and related costs | 97,313 | 76,185 | ||||||||||||
| Other current liabilities | 149,202 | 140,508 | ||||||||||||
| Total current liabilities | 641,680 | 667,098 | ||||||||||||
| Long-term debt | 586,203 | 513,055 | ||||||||||||
| Other liabilities | 307,451 | 265,743 | ||||||||||||
| Noncurrent contract liabilities | 50,863 | 181,883 | ||||||||||||
| Total liabilities | 1,586,197 | 1,627,779 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Total shareholders’ equity | 3,921,240 | 3,607,085 | ||||||||||||
| Total liabilities and equity | $ | 5,507,437 | $ | 5,234,864 | ||||||||||
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NOBLE CORPORATION plc AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Twelve Months Ended December 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income (loss) | $ | 481,902 | $ | 168,948 | |||||||
| Adjustments to reconcile net income (loss) to net cash flow from operating activities: | |||||||||||
| Depreciation and amortization | 301,345 | 146,879 | |||||||||
| Amortization of intangible assets and contract liabilities, net | (106,776) | (5,352) | |||||||||
| Gain on bargain purchase | (5,005) | — | |||||||||
| (Gain) loss on extinguishment of debt, net | 26,397 | 8,912 | |||||||||
| (Gain) loss on sale of operating assets, net | — | (90,230) | |||||||||
| Changes in components of working capital and other operating activities | (123,526) | 51,828 | |||||||||
| Net cash provided by (used in) operating activities | 574,337 | 280,985 | |||||||||
| Cash flows from investing activities | |||||||||||
| Capital expenditures | (409,581) | (174,319) | |||||||||
| Proceeds from insurance claims | 18,809 | — | |||||||||
| Cash acquired in stock-based business combinations, net | — | 166,607 | |||||||||
| Proceeds from disposal of assets, net | 24,264 | 381,026 | |||||||||
| Other investing activities | — | 2,458 | |||||||||
| Net cash provided by (used in) investing activities | (366,508) | 375,772 | |||||||||
| Cash flows from financing activities | |||||||||||
| Issuance of debt | 600,000 | 350,000 | |||||||||
| Repayments of debt | (673,411) | (627,323) | |||||||||
| Borrowing on credit facilities | — | 220,000 | |||||||||
| Repayments of credit facilities | — | (220,000) | |||||||||
| Debt issuance costs | (24,914) | (641) | |||||||||
| Debt extinguishment costs | (25,697) | — | |||||||||
| Compulsory purchase payment | — | (69,924) | |||||||||
| Share repurchases | (94,826) | (15,000) | |||||||||
| Dividend payments | (98,804) | — | |||||||||
| Other financing activities | (8,139) | (4,884) | |||||||||
| Net cash provided by (used in) financing activities | (325,791) | (367,772) | |||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (117,962) | 288,985 | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 485,707 | 196,722 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 367,745 | $ | 485,707 | |||||||
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NOBLE CORPORATION plc AND SUBSIDIARIES
OPERATIONAL INFORMATION
(Unaudited)
| Average Rig Utilization | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
| Floaters | 63 | % | 77 | % | 76 | % | |||||||||||
| Jackups | 61 | % | 64 | % | 87 | % | |||||||||||
| Total | 62 | % | 72 | % | 81 | % | |||||||||||
| Operating Days | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
| Floaters | 1,101 | 1,348 | 1,320 | ||||||||||||||
| Jackups | 785 | 824 | 1,201 | ||||||||||||||
| Total | 1,886 | 2,172 | 2,521 | ||||||||||||||
| Average Dayrates | |||||||||||||||||
| Three Months Ended | |||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
| Floaters | $ | 437,827 | $ | 403,813 | $ | 303,734 | |||||||||||
| Jackups | 147,954 | 140,775 | 118,089 | ||||||||||||||
| Total | $ | 317,150 | $ | 304,040 | $ | 215,751 | |||||||||||
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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 December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
| Numerator: | ||||||||||||||||||||||||||
| Net income (loss) | $ | 149,700 | $ | 134,962 | $ | 481,902 | $ | 168,948 | ||||||||||||||||||
| Denominator: | ||||||||||||||||||||||||||
| Weighted average shares outstanding - basic | 141,054 | 131,924 | 138,380 | 85,055 | ||||||||||||||||||||||
| Dilutive effect of share-based awards | 3,158 | 3,334 | 3,158 | 3,334 | ||||||||||||||||||||||
| Dilutive effect of warrants | 1,763 | 9,117 | 3,659 | 8,489 | ||||||||||||||||||||||
| Dilutive effect of compulsory purchase | — | 2,893 | — | 729 | ||||||||||||||||||||||
| Weighted average shares outstanding - diluted | 145,975 | 147,268 | 145,197 | 97,607 | ||||||||||||||||||||||
| Per share data | ||||||||||||||||||||||||||
| Basic: | ||||||||||||||||||||||||||
| Net income (loss) | $ | 1.06 | $ | 1.02 | $ | 3.48 | $ | 1.99 | ||||||||||||||||||
| Diluted: | ||||||||||||||||||||||||||
| Net income (loss) | $ | 1.03 | $ | 0.92 | $ | 3.32 | $ | 1.73 | ||||||||||||||||||
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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; 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. Additionally, we define net capital expenditures for full year 2023 as capital expenditures net of reimbursements and insurance proceeds, and we define Capital Additions as additions to property and equipment.
In order to fully assess the financial operating results, management believes that the results of operations, adjusted to exclude the following items, which are included in the Company’s press release issued on February 22, 2024, are appropriate measures of the continuing and normal operations of the Company:
(i)In the third and fourth quarter of 2023 and the fourth quarter of 2022, merger and integration costs; hurricane losses and (recoveries), net; intangible contract amortization; and discrete tax items.
(ii)The third quarter of 2023 includes a gain on bargain purchase and joint taxation scheme compensation.
(iii)In addition, the fourth quarter of 2022 included (gain) loss on sale of operating assets, net, (gain) loss on extinguishment of debt, net, and professional services costs related to corporate initiatives.
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, net of proceeds from insurance claims. 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 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 cost, 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.
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NOBLE CORPORATION plc AND SUBSIDIARIES
NON-GAAP MEASURES AND RECONCILIATION
(In thousands, except per share amounts)
(Unaudited)
| Reconciliation of Adjusted EBITDA | ||||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| Net income (loss) | $ | 149,700 | $ | 158,323 | $ | 134,962 | $ | 481,902 | $ | 168,948 | ||||||||||||||||||||||
| Income tax (benefit) provision | (4,843) | 51,659 | 10,778 | 30,341 | 22,553 | |||||||||||||||||||||||||||
| Interest expense, net of amounts capitalized | 14,600 | 13,005 | 19,384 | 59,139 | 42,722 | |||||||||||||||||||||||||||
| Interest income and other, net | (1,777) | (17,206) | (9,599) | (18,069) | (14,365) | |||||||||||||||||||||||||||
| Depreciation and amortization | 82,933 | 77,146 | 69,770 | 301,345 | 146,879 | |||||||||||||||||||||||||||
Amortization of intangible assets and contract liabilities, net | (11,236) | (10,803) | (41,877) | (106,776) | (5,352) | |||||||||||||||||||||||||||
| Gain on bargain purchase | — | (5,005) | — | (5,005) | — | |||||||||||||||||||||||||||
| (Gain) loss on extinguishment of debt, net | — | — | 8,716 | 26,397 | 8,912 | |||||||||||||||||||||||||||
| Professional services - corporate projects | — | — | 43 | — | 723 | |||||||||||||||||||||||||||
| Merger and integration costs | 13,286 | 12,966 | 56,752 | 60,335 | 84,668 | |||||||||||||||||||||||||||
(Gain) loss on sale of operating assets, net | — | — | (87,125) | — | (90,230) | |||||||||||||||||||||||||||
| Hurricane losses and (recoveries), net | (41,823) | 2,642 | (4,641) | (19,703) | 60 | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 200,840 | $ | 282,727 | $ | 157,163 | $ | 809,906 | $ | — | $ | 365,518 | ||||||||||||||||||||
| Reconciliation of Income Tax Benefit (Provision) | ||||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| Income tax benefit (provision) | $ | 4,843 | $ | (51,659) | $ | (10,778) | $ | (30,341) | $ | (22,553) | ||||||||||||||||||||||
| Adjustments | ||||||||||||||||||||||||||||||||
Amortization of intangible assets and contract liabilities, net | 6,508 | 6,079 | 9,471 | 19,835 | 1,800 | |||||||||||||||||||||||||||
| Joint taxation scheme compensation | — | (1,981) | — | (1,981) | — | |||||||||||||||||||||||||||
Gain (loss) on sale of operating assets, net | — | — | 2,255 | — | 866 | |||||||||||||||||||||||||||
| Hurricane losses and (recoveries), net | — | — | — | — | (562) | |||||||||||||||||||||||||||
| Discrete tax items | (60,116) | (17,088) | (17,525) | (170,436) | (45,139) | |||||||||||||||||||||||||||
| Total adjustments | (53,608) | (12,990) | (5,799) | (152,582) | (43,035) | |||||||||||||||||||||||||||
| Adjusted income tax benefit (provision) | $ | (48,765) | $ | (64,649) | $ | (16,577) | $ | (182,923) | $ | (65,588) | ||||||||||||||||||||||
11
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 | Twelve Months Ended | |||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| Net income (loss) | $ | 149,700 | $ | 158,323 | $ | 134,962 | $ | 481,902 | $ | 168,948 | ||||||||||||||||||||||
| Adjustments | ||||||||||||||||||||||||||||||||
| Amortization of intangible assets and contract liabilities, net | (4,728) | (4,724) | (32,406) | (86,941) | (3,552) | |||||||||||||||||||||||||||
Joint taxation scheme compensation | — | (19,837) | — | (19,837) | — | |||||||||||||||||||||||||||
| Gain on bargain purchase | — | (5,005) | — | (5,005) | — | |||||||||||||||||||||||||||
| Professional services - corporate projects | — | — | 43 | — | 723 | |||||||||||||||||||||||||||
| Merger and integration costs | 13,286 | 12,966 | 56,752 | 60,335 | 84,668 | |||||||||||||||||||||||||||
(Gain) loss on sale of operating assets, net | — | — | (84,870) | — | (89,364) | |||||||||||||||||||||||||||
| Hurricane losses and (recoveries), net | (41,823) | 2,642 | (4,641) | (19,703) | (502) | |||||||||||||||||||||||||||
| (Gain) loss on extinguishment of debt, net | — | — | 8,716 | 26,397 | 8,912 | |||||||||||||||||||||||||||
| Discrete tax items | (60,116) | (17,088) | (17,525) | (170,436) | (45,139) | |||||||||||||||||||||||||||
| Total adjustments | (93,381) | (31,046) | (73,931) | (215,190) | (44,254) | |||||||||||||||||||||||||||
| Adjusted net income (loss) | $ | 56,319 | $ | 127,277 | $ | 61,031 | $ | 266,712 | $ | 124,694 | ||||||||||||||||||||||
| Reconciliation of Diluted EPS | ||||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| Unadjusted diluted EPS | $ | 1.03 | $ | 1.09 | $ | 0.92 | $ | 3.32 | $ | 1.73 | ||||||||||||||||||||||
| Adjustments | ||||||||||||||||||||||||||||||||
| Amortization of intangible assets and contract liabilities, net | (0.03) | (0.03) | (0.22) | (0.60) | (0.04) | |||||||||||||||||||||||||||
Joint taxation scheme compensation | — | (0.14) | — | (0.14) | — | |||||||||||||||||||||||||||
| Gain on bargain purchase | — | (0.03) | — | (0.03) | — | |||||||||||||||||||||||||||
| Professional services - corporate projects | — | — | — | — | 0.02 | |||||||||||||||||||||||||||
| Merger and integration costs | 0.09 | 0.08 | 0.39 | 0.42 | 0.87 | |||||||||||||||||||||||||||
(Gain) loss on sale of operating assets, net | — | — | (0.59) | — | (0.92) | |||||||||||||||||||||||||||
| Hurricane losses and (recoveries), net | (0.29) | 0.02 | (0.03) | (0.14) | (0.01) | |||||||||||||||||||||||||||
| (Gain) loss on extinguishment of debt, net | — | — | 0.06 | 0.18 | 0.09 | |||||||||||||||||||||||||||
| Discrete tax items | (0.41) | (0.12) | (0.12) | (1.17) | (0.46) | |||||||||||||||||||||||||||
| Total adjustments | (0.64) | (0.22) | (0.51) | (1.48) | (0.45) | |||||||||||||||||||||||||||
| Adjusted diluted EPS | $ | 0.39 | $ | 0.87 | $ | 0.41 | $ | 1.84 | $ | 1.28 | ||||||||||||||||||||||
| Reconciliation of Free Cash Flow | ||||||||||||||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 287,489 | $ | 138,768 | $ | 171,179 | $ | 574,337 | $ | 280,985 | ||||||||||||||||||||||
| Capital expenditures, net of proceeds from insurance claims | (122,641) | (98,601) | (65,084) | (390,772) | (174,319) | |||||||||||||||||||||||||||
| Free cash flow | $ | 164,848 | $ | 40,167 | $ | 106,095 | $ | 183,565 | $ | 106,666 | ||||||||||||||||||||||
12
